Financial Data and Key Metrics Changes - The company reported strong revenue and balance sheet growth trends, with net interest income increasing by $2.2 million during the quarter and net interest margin expanding by 11 basis points to 2.62% [5][12] - Tangible book value per share grew nearly 11% annualized year to date, resuming its consistent growth trend after a decline in 2024 due to an acquisition [8][34] - Noninterest income increased by $773,000 or 37% during the quarter, driven primarily by swap fee income [18][19] Business Line Data and Key Metrics Changes - The loan portfolio grew at an annualized rate of 12.5% in the second quarter, with total loans up 14.5% year to date, exceeding expectations for mid to high single-digit growth [23][24] - Core deposits increased by $16 million or 2% annualized, while total deposits rose by $74 million or 7% annualized [22] - The majority of loan growth was driven by non-owner occupied commercial real estate (CRE), with continued growth in multifamily and construction sectors [27][28] Market Data and Key Metrics Changes - The company noted a competitive landscape with tighter spreads due to increased market participation from other banks following liquidity concerns subsiding [51][60] - The ongoing market disruption from Old National's acquisition of Bremer Bank is expected to create additional growth opportunities [9][60] Company Strategy and Development Direction - The company aims to gain market share and capitalize on opportunities arising from market disruptions in the Twin Cities [39] - Two significant technology initiatives are planned for the third quarter, including an upgraded online banking platform and systems conversion from a recent acquisition [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued net interest margin expansion and loan growth, despite some headwinds from subordinated debt issuance [37][68] - The company remains focused on organic growth while exploring potential M&A opportunities, although no imminent deals are currently in sight [62] Other Important Information - The company repurchased $1.6 million of common stock early in the second quarter and has $13.1 million remaining under its current share repurchase authorization [9][34] - The overall credit profile remains strong, with nonperforming assets at 0.19% of total assets, well below peer levels [32] Q&A Session Summary Question: June average for the margin - The June average margin was $265 million [43] Question: Rate of securities sale relative to the total portfolio - The securities sold were primarily treasuries and mortgage-backed securities in the low 4s, below the blended securities portfolio yield [44][45] Question: Expectations for swap fees - Swap fees are expected to be more consistent going forward, although predicting exact quarterly amounts remains challenging [47][49] Question: Competition in the market - Increased competition has been noted, with local players returning to the market, but the company is optimistic about its strong pipeline [51][60] Question: Expectations for CRE growth - Growth in CRE is expected to align with other business lines, with a focus on affordable housing as a key growth driver [58][60] Question: NIM expansion outlook - Long-term expectations for NIM expansion remain positive, with ongoing loan repricing and opportunities to lower deposit costs [68][70]