Executive Summary

Q1 2025 was solid operationally with strong net interest income and NIM, and it benefitted from a temporary post‑election surge in political deposits; EPS was $0.85 and net income was $5.6M, with ROAE 15.39% and ROAA 1.43% .
Results materially exceeded thin Wall Street consensus: Revenue $14.61M* vs $11.75M* (+24%) and EPS $0.85 vs $0.54* (+57%); 2 revenue and 3 EPS estimates contributed to consensus*. Values retrieved from S&P Global.
Management disclosed a large post‑quarter‑end outflow (~$506.5M on Apr 15) from six political organization accounts; deposits were ~$1.1B by Apr 25 and management cautioned that NIM, NII, net income, and ROE will be lower in future periods vs Q1 2025 .
Liquidity and capital remained strong: liquidity ratio 89.14%, TCE/TA 8.77%, Tier 1 risk‑based 40.24%, and NPAs at 0.00% .
Catalyst watch: the disclosed April deposit outflow and anticipated margin compression are likely to drive estimate revisions and stock narrative near‑term .

What Went Well and What Went Wrong

What Went Well

Net interest income rose to $13.8M vs $11.4M in Q4 and $8.8M in Q1’24 as average interest‑earning assets grew and NIM improved to 3.56% (from 3.46% in Q4 and 3.15% in Q1’24) .
Management proactively held surge deposits in cash at the Fed and short‑dated Treasuries, earning interest while preserving optionality and liquidity; NIM benefitted from reinvestment into higher‑yielding securities despite a decline in market rates .
Book value per share increased to $23.09 (vs $21.98 in Q4 and $19.17 in Q1’24), helped by earnings and a reduction in AOCI as rates fell; AOCI improved by $1.7M in Q1’25 .

What Went Wrong

Post‑quarter‑end, ~$506.5M flowed out of six political organization accounts (including three >5% accounts); deposits fell to ~$1.1B by Apr 25, and management expects lower NIM/NII/net income/ROE in future periods vs Q1’25 .
Noninterest income declined to $0.7M from $1.2M in Q4 and $1.6M in Q1’24, driven by lower deposit placement fees (ICS One‑Way Sell) and service charges as political deposit activity normalized post‑election .
Deposit concentration was elevated at quarter‑end (three accounts totaling ~$472M, 30.1% of deposits), increasing sensitivity to event‑driven flows and introducing headline risk .

Financial Results

Headline P&L and Margins (older → newer)

Metric	Q1 2024	Q4 2024	Q1 2025
Net Interest Income ($M)	8.79	11.36	13.85
Noninterest Income ($M)	1.65	1.22	0.70
Net Income ($M)	3.92	3.74	5.61
Diluted EPS ($)	0.86	0.59	0.85
Net Interest Margin (%)	3.15%	3.46%	3.56%
Efficiency Ratio (%)	54.99%	60.95%	52.06%
ROAE (ann.) (%)	18.33%	10.48%	15.39%
ROAA (ann.) (%)	1.39%	1.13%	1.43%

Balance Sheet and Liquidity (older → newer)

Metric	Q1 2024	Q4 2024	Q1 2025
Total Deposits ($M)	1,135.76	1,249.94	1,568.39
ICS One‑Way Sell Deposits ($M)	289.22	63.32	93.19
Interest‑bearing Reserves at Fed ($M)	337.99	406.70	620.27
Loan‑to‑Deposit Ratio (%)	26.94%	25.09%	19.26%
Liquidity Ratio (%)	79.36%	85.13%	89.14%
NPAs / Total Assets (%)	0.00%	0.00%	0.00%
TCE / TA (%)	7.10%	10.30%	8.77%

KPIs and Fiduciary (older → newer)

KPI	Q1 2024	Q4 2024	Q1 2025
AUA ($M)	267.5	330.3	409.4
AUM ($M)	80.7	126.8	137.8
AUC ($M)	186.8	203.5	271.6

Actual vs. Consensus (Q1 2025)

Metric	Actual	Consensus	Surprise
Revenue ($M)	14.61*	11.75*	+24.3%*
EPS ($)	0.85	0.54*	+56.5%*
# of Estimates	—	Rev: 2; EPS: 3	—
Target Price (Cons.) ($)	—	34.00* (N=3*)	—

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin (NIM), Net Interest Income (NII), Net Income, ROE	Future periods (post‑Q1 2025)	None	Expect lower vs Q1 2025 due to reduction in average interest‑earning assets following ~$506.5M deposit outflow on Apr 15	Lower
Tier 1 Leverage Ratio	Near‑term post‑Q1 2025	None	May improve as total assets decline after deposit outflows	Potentially higher
Deposit Concentration	As of Apr 15 & Apr 25, 2025	Higher at Q1‑end (three accounts ~$472M, 30.1% of deposits)	After Apr 15, one depositor at 5.15%; total deposits ~$1.1B by Apr 25	Lower concentration
ICS One‑Way Sell Deposits	Apr 25, 2025 snapshot	$93.2M at Mar 31	$74.1M at Apr 25	Lower

No formal numerical ranges were provided; management offered directional commentary only .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in filings; themes below reflect management’s press releases.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Political deposits seasonality & concentration	Pre‑election deposits elevated with expected outflows post‑election; Q4 noted outflows consistent with historical cycles .	Q1 saw a surge tied to post‑election fundraising; three accounts totaled ~~$472M (30.1% of deposits); large outflow (~~$506.5M) on Apr 15 disclosed .	Heightened volatility; concentration risk explicitly highlighted .
NIM drivers & earning asset mix	NIM lifted by Fed reserves and higher securities yields; Q3 NIM 3.73% , Q4 NIM 3.46% .	NIM 3.56%; reinvestment into higher‑yield securities despite lower market rates; elevated Fed cash balances .	Positive in Q1; management warns of subsequent compression post outflows .
Liquidity posture	Liquidity ratio 85.31% (Q3), 85.13% (Q4) indicating strong liquidity buffers .	Liquidity ratio 89.14%; cash, equivalents, and unpledged securities at ~$1.4B .	Strengthening liquidity .
Capital ratios	Tier 1 leverage 7.59% (Q3) rising to 11.48% (Q4) on IPO proceeds .	Tier 1 leverage 9.88%; risk‑based ratios very high (Tier 1 40.24%) .	Robust risk‑based; leverage ratio moves with balance sheet size .
Noninterest income (ICS fees, service charges)	Elevated in Q3 on ICS fees, then down in Q4 as election cycle ended .	Down further in Q1: deposit placement $133K; service charges $240K .	Normalizing lower post‑election .
Asset quality	NPAs 0.00% across periods .	NPAs 0.00% .	Stable/strong .

Management Commentary

“The first quarter of 2025 was the Company’s first full reporting period following its initial public offering. During the quarter, the Company managed increased deposit inflows from political organization accounts by holding the balances in cash and short‑term U.S. Treasury securities… The Company reported higher earnings compared to the prior quarter.” – Peter G. Fitzgerald, Chairman .
“The Company treated these inflows as potentially temporary and maintained the balances in cash reserves held at the Federal Reserve and short‑term U.S. Treasury securities that matured during the quarter.” .
“The Company anticipates that the significant reduction in average interest‑earning assets resulting from the outflows will lead to lower net interest margin, lower net interest income, lower net income, and lower return on equity in future periods compared to the first quarter of 2025.” .

Q&A Highlights

No Q1 2025 earnings call transcript was available in filings; the 8‑K furnished the press release and financial tables, and listed investor relations contacts for follow‑up .

Estimates Context

Q1 2025 results beat consensus: Revenue $14.61M* vs $11.75M* (+24%) and EPS $0.85 vs $0.54* (+57%); coverage thin (Rev N=2*, EPS N=3*). Values retrieved from S&P Global.
FY 2025 consensus: Revenue $53.96M* and EPS $3.02* (limited coverage)*. Values retrieved from S&P Global.
Given management’s disclosure of significant April outflows and expected NIM/NII compression, forward estimates for Q2–Q3’25 likely need to move lower on revenue/NII and EPS to reflect a smaller earning asset base and lower returns .

Key Takeaways for Investors

Q1 was strong on NII/NIM with EPS of $0.85 and efficiency ratio at 52.1%, but benefited from temporary, concentrated political deposits that largely flowed out after quarter‑end .
Material post‑quarter‑end deposit outflow (~$506.5M) is a clear negative for near‑term NIM, NII, EPS, and ROE; management explicitly guided to lower levels versus Q1 .
Liquidity and capital are robust (liquidity ratio 89.1%, Tier 1 risk‑based 40.2%, NPAs 0%); leverage ratio may improve as assets normalize, cushioning near‑term pressure .
Noninterest income is normalizing post‑election (ICS fee income and service charges down), putting more onus on NII for P&L performance in coming quarters .
Consensus beat was significant in Q1 (EPS +57%, Revenue +24%), but forward revisions are likely negative given the April disclosures*. Values retrieved from S&P Global.
Watch deposit mix/concentration and political cycle dynamics as they drive balance sheet size, earning asset yields, and fee income trajectory .
Near‑term trading implication: relief from Q1 beat may be offset by caution on future NIM/NII; medium‑term thesis hinges on redeploying stable deposits, managing concentration, and maintaining high liquidity/capital .