Total Revenue

+15% " " "

Total Revenue in Q2 2025 increased to $129.27 million from $112.046 million in Q2 2024. This improvement is supported by stronger core revenue streams, in line with previous periods that saw enhanced interest income due to higher loan volumes and improved rates " " , together with diversified noninterest income streams boosting overall revenue. " " "

Interest Income

+15% " " "

Interest Income reached $114.85 million in Q2 2025 versus $99.87 million in Q2 2024, propelled by an increase in loan volume and improved yields. This mirrors earlier trends observed in Q1 2025 where a $17,682,000 rise was driven by higher volumes from loans and securities along with favorable rate changes. " " "

Loans Segment

+15% " " "

Loans Segment grew to $104.03 million in Q2 2025 from $90.604 million in Q2 2024, reflecting renewed growth in commercial and industrial lending. This build‐up is consistent with past periods where organic growth and regional expansion, particularly in C&I loans that contributed $68.1 million in Q1 2024, laid the groundwork for further increases. " " "

Noninterest Income

+18% " " " "

Noninterest Income increased to $14.42 million in Q2 2025 from $12.176 million in Q2 2024, driven mainly by gains on sales of loans, enhanced pass-through income from equity investments, and higher service charges. The factors echo the strong performance in Q1 2025, where a $1.0 million gain on loan sales and additional contributions from service fees and equity investments played critical roles. " " "

Loan Growth

Q3 2025

Low to mid‑single‑digit growth forecast for Q2 and Q3 " "

Expected mid‑single‑digit growth trending toward the higher end of the 4% to 6% range on a run rate per quarter basis " " "

raised

Net Interest Margin

Q3 2025

Expected to improve in the low single‑digit basis points range " "

Anticipated margin improvement in the range of four to six basis points "

no change

Non‑Interest Expense

Q3 2025

Core expenses expected to increase to the low $50 million range per quarter "

For Q3, non‑interest expenses expected to be in the low $50 million range "

no change

Capital Ratios

FY 2025

no prior guidance

TCE expected to be close to 8.50% and total risk‑based capital in the 13.30% to 13.40% range; aspirational TCE in the low nine range "

no prior guidance

Non‑Performing Assets

FY 2025

no prior guidance

Expected NPAs to drop significantly as they resolve certain credits "

no prior guidance

Margin Management

Q3 2024 discussions highlighted a core NIM expansion of 12 basis points driven by flat deposit costs, increased loan yields, and a structured liability approach. " " " "

Q2 2025 discussions focus on maintaining margins amid the drag from excess liquidity and branch sale impacts, with modest margin improvement expected later in the year. " " "

Recurring topic with a shift from aggressive expansion to managing liquidity‐related drags while remaining optimistic about future improvement. " "

Liquidity Pressures

Q3 2024 called attention to deposit composition adjustments and liability restructuring to handle interest rate movements, implicitly managing liquidity through deposit growth. " " "

In Q2 2025, liquidity pressures are explicitly discussed as excess liquidity needed during the core conversion process, which drags margins but is maintained for operational flexibility. " " "

Recurring focus with more detailed emphasis on excess liquidity management in the current period. " "

Loan Growth and Quality Dynamics

Q3 2024 noted steady loan growth (approximately 4.4% annualized) with growth driven by commercial real estate and C&D portfolios, while credit quality issues were confined mainly to one SBA-guaranteed loan that was expected to resolve soon. " " "

Q2 2025 indicates a slower start to loan growth with growth now expected in the low 4% to 4.5% range initially, along with more widespread credit quality concerns – including multiple NPLs increasing from 0.69% to 0.97% and more complex resolution plans. " " " "

Recurring topic with a deterioration in sentiment; increased credit quality concerns and a more cautious outlook on growth are evident. " "

Revenue Diversification and Fee Income Opportunities

Q3 2024 emphasized diversified revenue sources, including contributions from asset management, SBA service providers, and swap fees, despite inherent fee volatility. " " "

Q2 2025 focuses on broadening fee income through expanding SBA loan services, growing derivatives offerings, and new initiatives designed to double fee income impact, addressing previous fee volatility. " "

Recurring topic that is evolving toward expansion and overcoming past volatility, with a more aggressive diversification strategy. " "

Impact of Oakwood Integration

Q3 2024 discussions detailed positive margin benefits from Oakwood integration, including loan discount accretion and improved deposit cost management, while acknowledging initial cost pressures with benefits expected to materialize later. " " " "

Q2 2025 continues to discuss Oakwood’s impact, noting that while margin benefits are expected (four to six basis points improvement), operational cost pressures remain, with cost savings delayed until post-conversion in the later quarter. "

Recurring subject with similar strategic benefits, though current sentiment shows cautious timing amid continued operational cost pressures. "

Competitive Loan Pricing Compressing Yields

Not mentioned in Q3 2024 discussions.

Q2 2025 introduces competitive pressure as banks aggressively price loans in the mid-to-low 7% range, resulting in yield compression and deferred loan fee impacts. " "

New topic emerged in the current period highlighting competitive pressure on yields. " "

Emerging Credit Quality Concerns

Q3 2024 mentioned credit quality issues related mostly to one SBA-guaranteed loan, with a normalized credit environment and expectations for prompt resolution. "

Q2 2025 sees a broader focus on credit quality as NPLs rise (from 0.69% to 0.97%) due to multiple exposures, with detailed reserve levels and a longer resolution timeline for problematic credits. "

Recurring topic with worsened sentiment; more extensive credit quality concerns are now evident, potentially impacting future performance. "

Reduced Emphasis on Robust Deposit and Balance Sheet Management

Q3 2024 discussions underscored robust deposit growth and active balance sheet and liability management to optimize funding. " "

Q2 2025 does not indicate a reduced emphasis – deposit and balance sheet management continue as strategic priorities, with focus on managing liquidity and funding sources amid operational changes. " " " "

Recurring topic with no reduction in emphasis; the focus remains strong in both periods. " "