Total Revenue

+85% (from $36.3M to $67.109M)

Total Revenue surged by 85% YoY, driven by a robust increase in Net Interest Income and supportive gains in Non‑Interest Income. The dramatic growth emphasizes a strong recovery from a lower Q1 2024 base, where lower loan yields and revenues were evident. " "

Net Interest Income

Not explicitly stated numerically; major contributor is Loans and Leases

Net Interest Income reached $59.53M in Q1 2025, driven chiefly by the loans and leases portfolio at $55.274M. This reflects stronger average loan balances and improved interest yield compared to Q1 2024, underpinning a solid performance on the interest-generating assets relative to previous periods. "

Non‑Interest Income

+12% (from $6.757M to $7.579M)

Non‑Interest Income grew by approximately 12% YoY, bolstered by improved private wealth fee income and higher gains on the sale of SBA loans, despite a relatively modest base in Q1 2024. This indicates that diversification into fee‐based revenue streams helped narrow the gap from previous quarters. " "

Net Income

+26% (from $8,848K to $11,171K)

Net Income increased by 26% YoY, reflecting not only the higher top‐line performance from revenue growth but also enhanced operational efficiency. The improvement in profitability indicates effective cost management and better margin control compared to Q1 2024. " "

Earnings per Common Share

Increased from $1.04 to $1.32

EPS growth from $1.04 to $1.32 is largely a function of higher net income, supported by revenue gains and favorable operating leverage. This increment suggests that despite any dilution factors, profitability per share improved materially relative to Q1 2024. " "

Cash and Cash Equivalents

More than doubled (from $72,040K to $170,617K)

Cash and Cash Equivalents more than doubled YoY, rising from $72,040K in Q1 2024 to $170,617K in Q1 2025. This increase is attributed to strong growth in both cash balances and short-term investments, reflecting improved liquidity management and a more proactive approach to handling interest-bearing deposits from the Federal Reserve Bank compared to the prior period. " "

Total Deposits

+18% (from $2,755,406K to $3,243,043K)

Total Deposits expanded by approximately 18% YoY, propelled by increases in interest-bearing transaction accounts, money market accounts, and wholesale deposits. The targeted, deposit-centric strategy in Q1 2025 helped overcome the lower deposit levels seen in Q1 2024, contributing to robust deposit growth. " "

Total Assets

+12% (from $3,531,358K to $3,944,879K)

Total Assets grew nearly 12% YoY, reflecting an overall expansion driven by growth in loans and leases, available-for-sale securities, and short-term investments. This balanced asset growth indicates that the bank’s strategic focus on scaling its lending and investment activities successfully built on the foundations set in Q1 2024. " "

Net Interest Margin

FY 2025

360 to 365 basis points " "

3.60% to 3.65% " " "

no change

Revenue Growth

FY 2025

10% annual revenue growth " "

10% or greater annual revenue growth "

no change

Asset Quality

FY 2025

No areas of particular concern; isolated weakness in transportation "

Maintaining stable asset quality with a decline in non-performing assets " " "

raised

Annual Growth

FY 2025

no prior guidance

10% annual growth "

no prior guidance

Loan and Deposit Growth

FY 2025

no prior guidance

Loans grew by $275 million (nearly 10%) and deposits by $488 million (18%) "

no prior guidance

Strategic Focus

FY 2025

no prior guidance

Continued emphasis on relationship-based deposit growth and a strong net interest margin with FY 2025 optimism " "

no prior guidance

Stable Net Interest Margin (NIM)

Q3 2024 and Q4 2024 discussions stressed a stable NIM maintained in the range of 3.60% to 3.65% with emphasis on disciplined pricing, match funding strategy, adjusted margins excluding fee variability, and a neutral balance sheet sensitivity. " " " " "

In Q1 2025, executives reiterated the stability of NIM with reported figures of 3.69% and adjusted NIM of 3.46%, supported by pricing discipline and match funding principles despite slight fee variability; the outlook remains anchored within similar target ranges. " " "

Consistent focus: The sentiment remains stable with a continued strong emphasis on maintaining NIM despite minor fee variability, indicating steady management confidence.

Fee Income Diversification and Volatility

Q3 2024 and Q4 2024 calls highlighted diversified fee sources including SBIC, private wealth, swap, SBA, and accounts receivable finance. Discussion centered on variable components, smoothing out volatility over longer periods, and the importance of a diversified fee income mix to support revenue growth. " " " "

In Q1 2025, the bank emphasized further diversification by expanding fee sources (SBA, private wealth management, asset-based lending, swap fees) while explicitly noting changes in fee contributions (e.g. fees in lieu of interest decreased from previous quarters) and targeted growth despite inherent variability. " "

Steady with nuanced evolution: Consistent emphasis on diversification is maintained, while the Q1 2025 call provides more granular detail on fee components and indicates strategic adjustments in response to fee variability.

Deposit Growth and Funding Profile Optimization

Q3 2024 and Q4 2024 discussions reported robust deposit growth (total increases of $310–$313 million, 9%–12% growth, and strong core deposit performance) along with a clear focus on match funding via a mix of core and wholesale deposits; treasury management initiatives and efficient cost strategies were also emphasized. " " " " "

In Q1 2025, the bank reported accelerated deposit growth with increases of $488 million overall and notable core deposit expansion (over 11%), reinforced by disciplined match funding strategies (targeting a core funding mix and maintaining a loan-to-deposit ratio around 98%). " " "

Sustained growth with vigor: The messaging across periods consistently underscores strong deposit growth and funding optimization, with Q1 2025 showing even stronger numbers and reaffirmed strategic execution.

Credit Quality Risks in Equipment and Transportation Lending

Q3 2024 and Q4 2024 discussions focused on credit quality concerns primarily in the transportation side of equipment finance. The narrative included a halt in new transportation lending, building appropriate reserves, and isolated issues (like specific nonperforming loans) while noting that non-transportation segments performed better. " " " " " "

In Q1 2025, there was explicit mention of a pull forward of equipment finance losses driving net charge-offs and highlighted continued weakness in the transportation segment, noting that existing softness has been factored in and that future credit costs may persist in Q2 and beyond. " " "

Increased caution: While the focus remains similar, Q1 2025 shows an enhanced emphasis on immediate credit losses and potential future impacts, signaling a slight deterioration in sentiment regarding transportation risks.

Expansion in Niche Lending Segments

Q3 2024 and Q4 2024 discussions presented growth in niche areas such as SBA lending, floor plan financing, accounts receivable, vendor finance, and asset-based lending. There was optimism about pipeline strength and improved production with new leadership in several segments. " " " " "

Q1 2025 continued to underline growth in various niche lending segments including asset-based lending (with record activity), floor plan financing (with high client satisfaction), and SBA lending (sustaining momentum and expected variability) while stressing specialty finance areas and better yields in countercyclical portfolios. " "

Ongoing expansion with leadership impact: The bank remains committed to expanding niche lending; Q1 2025 reinforces previous trends with a focus on leveraging new leadership and capturing growth opportunities amid a softening economy.

Technology Investments and Efficiency Gains

Q3 2024 and Q4 2024 calls detailed investments in robotic process automation, a major loan origination system development project, and broader technology initiatives aimed at improving the efficiency ratio and achieving positive operating leverage; there was clear enthusiasm for technology-driven operational improvements. " " " "

In Q1 2025, there was no mention of technology investments or efficiency gains, suggesting that these topics were less emphasized or integrated such that they did not warrant separate discussion in this period.

De-emphasized in Q1 2025: While previously a highlighted strategic focus, technology and efficiency topics were not mentioned in the current period, possibly indicating integration into routine operations or shifting attention to other priorities.

Margin Pressure from Yield Repricing and Competitive Deposit Pricing

Q3 2024 and Q4 2024 discussions addressed challenges from competitive deposit pricing and yield repricing. The bank detailed efforts to reprice fixed-rate loans, manage deposit costs amid a competitive environment, and noted strategic alignment between asset and liability yields to maintain margins within the 3.60% to 3.65% range. " " " " "

In Q1 2025, similar challenges were noted with an acknowledgment of a very competitive deposit environment and the need for yield repricing on both loans and CDs; the discussion included specific actions like strategic pricing adjustments and a managed CD portfolio contributing to maintaining the margin target, despite some narrowing spreads. " " " " "

Consistent challenge with proactive management: The bank continues to face margin pressures from yield repricing and competitive deposit pricing but shows consistent strategies to counter these pressures, maintaining overall margin stability.

Tariff and International Trade Uncertainty

Not mentioned in Q3 2024 or Q4 2024; there was no discussion of any tariff or international trade issues in earlier periods " " " " " " " " " " .

In Q1 2025, the topic emerged as an area of client concern where management is monitoring potential impacts from tariffs and trade uncertainty. While there has been active client communication and monitoring of exposures, the bank’s limited international trade exposure has so far mitigated significant direct impacts. " "

New emerging risk: Tariff and international trade uncertainty appears as a new concern in Q1 2025, introducing an external risk factor that may affect clients and, by extension, the bank’s operations if conditions worsen.