Executive Summary

Q2 results were resilient: GAAP diluted EPS $0.86, core diluted EPS $0.94, net income $15.3M, and NIM 4.17%; credit costs remained modest despite a non-accrual migration in a single QSR relationship .
Versus S&P Global consensus, EPS beat (Actual* $0.93 vs Est* $0.89) while revenue missed (Actual* $58.37M vs Est* $60.46M); note S&P “actual” EPS is normalized and differs from GAAP EPS reported by management [GetEstimates*].
Strategic catalysts: NBC Oklahoma closed July 2 (adds ~$0.70B loans and ~$0.80B deposits) with system conversion targeted for late August; management expects margin/earnings accretion and NIE savings in 2H25 .
Balance sheet and capital strengthened: TCE ratio 10.63% (+50 bps q/q), TBV/share $32.17 (+$1.10 q/q); book equity up $18.3M in Q2, aided by AOCI improvement .
Credit quality broadly stable apart from the QSR migration: NPA 0.85% of assets, ACL/loans 1.26%; net charge-offs annualized 0.06% in Q2 and 0.04% YTD .

What Went Well and What Went Wrong

What Went Well

Margin and core earnings momentum: NIM held at 4.17% (up ~10 bps vs core margin in Q1) with core NII growth of $1.8M driven by loan mix/yields and lower interest-bearing liability costs .
NBC integration as earnings lever: portfolio cash redeployment and expected NIE savings in 4Q; management reiterated margin accretion from NBC assets/liabilities, with conversion in late August .
Capital and book value accretion: TBV/share rose to $32.17 and TCE/TA to 10.63%, supported by earnings and improved AOCI; repurchased 7,500 shares at $36.46 while maintaining the $0.15 dividend .

Quote: “As we enter the second half of the year, we continue to be well positioned to drive growth both organically and via strategic M&A.” — Brad Elliott .

What Went Wrong

QSR non-accrual migration: Non-accrual loans rose to $42.6M (+$18.3M q/q), largely one QSR relationship; total classified assets increased to $71.0M (11.4% of regulatory capital) .
Revenue vs consensus miss: S&P Global revenue actual* $58.37M vs est* $60.46M; non-interest income normalized lower vs Q1 due to prior BOLI benefit [GetEstimates*] .
End-of-period loan balances declined $30.9M on higher payoffs/line utilization decreases, though production was strong ($197M) and the pipeline grew 33% to $481M (75% probability) .

Financial Results

Quarterly Financials (document-based actuals)

Metric	Q4 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Millions)	$49.473	$50.292	$49.802
Non-Interest Income ($USD Millions)	$8.816	$10.330	$8.589
Total Non-Interest Expense ($USD Millions)	$37.806	$39.050	$40.001
Net Income ($USD Millions)	$16.986	$15.041	$15.264
Diluted EPS ($USD)	$1.04	$0.85	$0.86
Net Interest Margin %	4.17%	4.27%	4.17%

Actual vs S&P Global Consensus

Metric	Q4 2024	Q1 2025	Q2 2025
EPS Actual ($USD)*	$1.03*	$0.84*	$0.93*
EPS Consensus Mean ($USD)*	$0.92*	$0.83*	$0.89*
Revenue Actual ($USD Millions)*	$58.05*	$58.05*	$58.37*
Revenue Consensus Mean ($USD Millions)*	$56.12*	$56.68*	$60.46*

Values marked with * retrieved from S&P Global.

Segment/Balance Composition — Loans Held-for-Investment by Type

Loan Type ($USD Billions)	Q4 2024	Q1 2025	Q2 2025
Commercial Real Estate	$1.83	$1.86	$1.85
Commercial & Industrial	$0.66	$0.76	$0.75
Residential Real Estate	$0.57	$0.56	$0.57
Agricultural Real Estate	$0.27	$0.26	$0.23
Agricultural	$0.09	$0.09	$0.09
Consumer	$0.09	$0.09	$0.11
Total LHFI	$3.50	$3.63	$3.60

KPIs and Asset Quality

KPI	Q4 2024	Q1 2025	Q2 2025
Non-Performing Assets / Total Assets %	0.65%	0.51%	0.85%
Non-Accrual Loans ($USD Millions)	$27.1	$24.2	$42.6
ACL / Loans %	1.24%	1.26%	1.26%
TCE / Tangible Assets %	9.95%	10.13%	10.63%
Tangible Book Value per Share ($)	$30.07	$31.07	$32.17
Total Deposits ($USD Billions)	$4.37	$4.41	$4.23

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Provision for Credit Losses (annualized bps on average loans)	2H 2025	N/A	12 bps outlook	Initiated
Core Margin/NIM	2H 2025	Core margin trending to ~4.08% in Q1 commentary	Maintain ~4.17% with lagged repricing benefits	Maintained/Improved
Non-Interest Expense	Q4 2025	N/A	Step-down predominantly from NBC savings	Lowered
NBC Integration Timeline	Q3 2025	Close early Q3; conversion back-half Q3	Closed July 2; conversion late August	Accelerated
Dividend	Q2 2025	$0.15 in Q1	$0.15 declared in Q2	Maintained
Funding/Securities	2H 2025	N/A	NBC bond portfolio sold pre-close; redeploy cash to loans/securities as needed	Strategic redeployment

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2025)	Trend
M&A/Integration	Announced NBC (Q1) with expected close early Q3; capital raised in Q4 to fund growth	NBC closed July 2; conversion late August; ongoing disciplined M&A pipeline	Strengthening
Margin Dynamics	Core margin expansion in Q4/Q1; Q1 core 4.08% (ex. one-time)	Maintain ~4.17%; accretion from NBC portfolio and lagged repricing	Stable to improving
Credit/QSR	NPA down in Q1; no major issues noted in Q4	Non-accrual migration in single QSR; multi-path resolution expected over several quarters	Deterioration (idiosyncratic)
Loan Growth/Pipeline	Q1: +$130.8M; Q4: -$100.1M end-of-period	Production $197M; pipeline $481M (+33% q/q); expect growth with fewer payoffs	Improving
Deposit Costs/Competition	Q4/Q1: deposit beta declines achieved; costs down	Most cost reductions realized; competition may limit further declines	Stabilizing
Securities/Bond Portfolio	Q4: repositioning; Q1 steady	NBC portfolio sold pre-close; cash to be redeployed opportunistically	Redeploying
Regional/Aerospace Exposure	De-risked; no aircraft lending emphasis (historical)	Wichita exposure immaterial (<$5M suppliers) and jobs demand robust	De-risked

Management Commentary

“We achieved strong earnings, core margin expansion, and successfully closed our merger with NBC Bank on July 2nd.” — Brad Elliott (CEO) .
“Net income of $15.3 million or $0.86 per diluted share… Adjusting for M&A and debt extinguishment, $16.6 million or $0.94 per diluted share.” — Chris Navratil (CFO) .
“Margin… improved 10 bps… driven by remixing of balance sheets… loans comprised 76% of average earning assets… and reduction in cost of interest-bearing liabilities.” — Chris Navratil (CFO) .
“Production totaled $197 million… pipeline is $481 million, up $119 million or 33% from quarter one.” — Rick Sems (Bank CEO) .
“Non-accrual loans closed the quarter at $42.6 million… increase almost entirely driven by [the] QSR relationship… path to exit underperforming locations over next several quarters.” — Kristof Slupkowski (CCO) .

Q&A Highlights

NBC bond portfolio: Sold pre-close, arrives as cash for redeployment to securities/loans, minimal securities retained for pledging; no immediate actions required .
QSR non-accrual path: Exit eight underperforming stores or sell package; expect stabilization over “at least three quarters”; accrual status could resume later next year if cash flows improve .
Margin outlook: Core NIM expected to maintain around 4.17% with continued lagged repricing across loans/deposits; some runway into 2026 .
Deposit betas: Majority of declines realized; future declines limited by competitive behavior; incremental benefit via growing commercial/DDAs .
M&A target size: Focus on $250M–$1.5B institutions within footprint; robust dialogue driven by ownership/management timing versus regulation .

Estimates Context

EPS: Q2 2025 Primary EPS Actual* $0.93 vs Consensus* $0.89 — bold beat; note management GAAP EPS $0.86 and core $0.94; S&P “actual” appears normalized, explaining the gap to GAAP [GetEstimates*] .
Revenue: Q2 2025 Actual* $58.37M vs Consensus* $60.46M — bold miss; management drivers included lower non-interest income vs Q1 due to prior-period BOLI benefit [GetEstimates*] .
Trajectory: Prior quarters show small EPS beats and revenue close to consensus; estimate revisions likely to reflect margin maintenance, NBC accretion, and elevated non-accruals (idiosyncratic credit) [GetEstimates*] .