Net Interest Income

+23% (from 24,631K to 30,208K)

Improved yields on the loan portfolio combined with efficient deposit cost management drove the increase. The higher spread benefited from higher core loan yields and a favorable repricing environment relative to Q1 2024. " "

Net Income

+23% (from 7,831K to 9,633K)

Stronger operational performance boosted net income as higher interest income and operational efficiencies provided an uplift over Q1 2024, signaling effective management of both revenue-driving activities and expenses. " "

Net Income Available to Common Shareholders

+26% (from 6,818K to 8,620K)

The 26% increase reflects a combination of higher net income, improved interest margins, and more favorable credit conditions, leading to better earnings retention compared to the previous year’s Q1. " "

Total Interest Income

+12% (from 58,669K to 65,708K)

Growth in interest income sources—including loans, investment securities, and cash investments—contributed to this rise. This outcome is a result of increased yields and higher asset balances, building on prior period trends. " "

Noninterest Income

+34% (from 1,550K to 2,079K)

Expansion in fee-based income—with improved letter of credit, swap, and advisory fee revenues—driven by strategic product mix enhancements and better market conditions relative to Q1 2024. " "

Noninterest Expense

+19% (from 15,189K to 18,136K)

The rise was largely due to higher operating costs, including increased salaries and benefits, merger-integration expenses from FMCB, and investments in technology and infrastructure, an escalation that exceeded prior period levels. " "

Total Assets

+9% (from 4,723,109K to 5,136,808K)

Organic growth and strategic acquisitions (reflected in higher cash balances and loan originations) drove asset expansion, building on the balance sheet momentum from the previous year. " "

Loans, net of Allowances

+6% (from 3,726,502K to 3,959,092K)

Robust loan originations and an improved loan portfolio mix led to a moderate increase even as credit loss allowances rose slightly, reflecting cautious credit management relative to Q1 2024. " "

Total Deposits

+9% (from 3,807,225K to 4,162,457K)

Robust core deposit growth and an improved funding mix were key contributors. Deposits grew due to increased client balances and effective competitive deposit offerings, reinforcing liquidity compared to the previous year. " "

Loan-to-Deposit Ratio

Improved from 99.4% to 96.6%

A lower ratio indicates a more favorable asset–liability mix, driven by deposit growth outpacing loan expansion. This improvement bolsters liquidity and reduces funding risk relative to Q1 2024. " "

Cash and Cash Equivalents

+16% (from 143,355K to 166,205K)

Enhanced liquidity management—with improved operating cash inflows and strong financing activities—resulted in higher cash balances, reflecting effective cash flow management compared to Q1 2024. " "

Loan Growth

FY 2025

Mid- to high single-digit loan growth expected for FY 2025 " "

Full-year loan growth expected in the mid- to high single digits "

no change

Net Interest Margin

FY 2025

Modest net interest margin expansion anticipated; 1 to 2 basis points per quarter " " "

Margin expansion expected to continue, with the pace moderating in Q2 2025 " "

no change

Noninterest Expense Growth

FY 2025

Growth, excluding merger-related expenses, expected in the high teens range " "

Full-year noninterest expense growth expected in the high teens "

no change

Net Interest Income

FY 2025

no prior guidance

Focused on growing net interest income, supported by margin expansion and balance sheet growth "

no prior guidance

Provision for Loan Losses

FY 2025

no prior guidance

Provision expected to remain dependent on the pace of loan growth and overall asset quality "

no prior guidance

Capital Levels

FY 2025

no prior guidance

Capital levels expected to remain relatively stable in the near term "

no prior guidance

Share Repurchases

FY 2025

no prior guidance

$14.7 million remained under current share repurchase authorization " "

no prior guidance

Technology Initiatives

FY 2025

no prior guidance

Two significant initiatives planned for 2025: an upgraded retail and small business online banking platform; systems conversion "

no prior guidance

Margin Expansion & Net Interest Income Growth

Q2 2024 discussions noted a stable net interest margin and modest income growth. " Q3 2024 emphasized modest margin expansion on a liability‐sensitive balance sheet. " " Q4 2024 saw an 8 bps NIM expansion driven by declining deposit costs. "

Q1 2025 reported a 19 bps NIM expansion with robust net interest income growth (12% increase) and strong loan growth, although future expansion is expected to moderate with stabilizing deposit costs. " "

Consistent focus on margin improvement with a notable boost in Q1 2025; overall positive trend but with indications of potential moderation as deposit costs stabilize.

Loan Growth Dynamics & Elevated Loan Payoffs

Q2 2024 highlighted moderated loan growth (1.7% growth) due to elevated payoffs. " Q3 2024 noted a strong loan pipeline amid persistent high payoffs. " Q4 2024 reported continued payoffs but a rebound in loan origination activity. " "

Q1 2025 experienced 15.9% annualized loan growth driven by strong demand and reduced payoffs (45% decline in payoffs), signaling improved net loan growth. "

Improvement over time – from high payoff headwinds to robust growth in Q1 2025; focus shifts toward better managing payoffs and capturing strong loan origination opportunities.

Deposit Growth, Repricing & Funding Cost Management

Q2 2024 showed the impact of seasonal dips with lower core deposit levels and increased deposit costs (14 bps increase). " " Q3 2024 and Q4 2024 stressed strong core deposit growth, improved deposit mix, and active repricing strategies. " "

Q1 2025 maintained strong growth with 8.3% annualized core deposit growth, further deposit cost reductions (22 bps decline), and disciplined funding cost management substantiated by a large short‐term rate–linked funding base. " " "

Stable and positive performance overall, with repurposing strategies and seasonal awareness; minor challenges noted in past periods are being effectively managed in Q1 2025.

Asset Quality & Credit Risk

Q2 2024 emphasized superb asset quality (0.01% non-performing assets) and strong multifamily performance. " " Q3 2024 and Q4 2024 continued to report low charge-offs and diligent risk management despite some office loan challenges. " "

Q1 2025 reported overall strong asset quality with no net charge-offs and very low nonperforming levels, aside from one office loan moved to nonaccrual; reserves remain robust. " "

Consistently strong asset quality with disciplined risk management practices; slight uptick in office loan risk is monitored without detracting from the overall robust credit profile.

Commercial Real Estate Exposure & Competitive Pressure

Q2 2024 mentioned active monitoring of CRE/multifamily concentrations and competitive deposit cost pressures. " " Q3 2024 highlighted a well-managed multifamily portfolio along with limited office exposure and noted competitive pressures from tighter spreads. " " Q4 2024 reiterated CRE balance with some office charge-offs. "

Q1 2025 continued to focus on CRE with a balanced mix—strong multifamily exposure and cautious management of a few problematic office loans—while acknowledging intensified competitive pressures, especially in loan pricing. "

Consistent challenge of managing CRE exposures amid increased competition; multifamily strengths persist while office loan issues remain an area of close attention.

Fed Rate Cuts & Monetary Policy Impact

Q2 2024 described positioning for potential rate cuts with stable margins. " Q3 2024 discussed how rate cuts were already benefiting deposit repricing and loan yields. " " Q4 2024 detailed positive margin impacts due to Fed rate cuts (deposit cost declines, stable yields). " "

Q1 2025 confirmed that recent and anticipated rate cuts have helped drive margin expansion and lower deposit costs; a significant portion of the funding base is linked to short-term rates, magnifying the benefits. " " "

Uniformly positive sentiment regarding rate cuts across periods, with increasing emphasis in Q1 2025 on the tangible benefits and readiness for continued monetary easing.

Acquisition Integration & Expense Management

Q2 2024 had limited discussion; Q3 2024 and Q4 2024 focused on the integration of First Minnetonka City Bank, noting smooth regulatory approval and initial cost saving expectations, though expense growth due to integration was acknowledged. " " "

Q1 2025 highlighted active systems conversion efforts and noted a 12% annualized rebound in tangible book value, with expense growth in the high teens (excluding merger costs) as part of disciplined post-acquisition integration. " " "

Transition from planning to active integration with effective expense management; integration is now a clear growth enabler despite near-term expense increases.

Capital Allocation Strategies (Share Repurchases)

Q2 2024 saw active repurchase activity (repurchased $2.9M). " Q3 2024 and Q4 2024 reported no repurchases due to acquisition focus, while maintaining authorization levels ($15.3M). " "

Q1 2025 resumed opportunistic repurchases ($600K), reaffirming the strategy of evaluating share repurchases based on capital needs, growth opportunities, and market valuation. "

Fluctuating activity—repurchase programs are opportunistic and secondary to growth initiatives; they adapt based on recent acquisition activity and overall capital priorities.

Seasonal Impacts on Deposit Levels

Q2 2024 extensively discussed seasonal declines in deposits due to tax season and cyclicality, noting significant dips in core deposit balances. " Q3 2024 and Q4 2024 had limited focus on this due to improved deposit growth and mix. "

Q1 2025 explicitly cautioned that Q2 is typically a seasonally low quarter for deposits, reaffirming the non-linear nature of deposit flows. "

Consistent acknowledgment of seasonal effects; Q1 2025 explicitly forecasts upcoming seasonal dips, indicating ongoing recognition of cyclical deposit patterns.

Diversified Lending Segments (Affordable Housing)

Q2 2024 mentioned efforts to expand the client base via networking events and affordable housing initiatives. " Q4 2024 identified affordable housing as a strategic vertical and emphasized national growth potential. " Q3 2024 did not specifically address this segment.

Q1 2025 showed significant progress in affordable housing, with the portfolio nearing $600 million and a 13% growth, along with expanded geographic reach (24% outside Minnesota) and strong competitive pricing. " " "

Emergence as a critical growth driver—initial modest focus evolved into robust performance and strategic expansion in Q1 2025, highlighting its growing importance to the overall loan portfolio and deposit base.