Executive Summary

Q2 2025 EPS was $0.99 on net income of $7.7M; EPS declined 2% QoQ (Q1: $1.01) and 12% YoY (Q2’24: $1.13) as higher provision and opex offset solid NII growth . Versus S&P Global consensus, EPS modestly beat by ~2c ($0.99 vs $0.97*) while S&P “revenue” missed ($35.3M* vs $36.6M*) due to definition differences in bank “revenue” .
Balance sheet mix shifted: loans grew 3% QoQ to $2.58B while deposits fell 2% as brokered CDs rolled off; borrowings rose to $234M to fund growth (from $69M in Q1) .
Credit normalization continued: nonperforming loans increased to $19.0M (0.73% of loans), driven by one construction relationship and elevated consumer delinquencies; ACL coverage of NPLs declined to 169% (from 219% in Q1) .
Capital return: 50th consecutive $0.28 dividend plus a $0.22 special dividend; repurchased 132k shares at $38.92; new $5M buyback authorization announced July 9 .
Potential stock catalysts: special dividend + new buyback; steady NIM execution; watch for higher borrowings and rising NPLs impacting forward margin/credit narrative .

Values with asterisk (*) are from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Net interest income rose to $32.1M (+4% QoQ; +6% YoY), reflecting loan growth and favorable asset mix; NIM held at 4.30% (4.32% in Q1; 4.29% in Q2’24) .
- Loan growth was broad-based: total loans +$81M QoQ (+3%); CRE +$43M QoQ; multi-family +$18M; C&I +$20M; residential +$20M .
- Shareholder returns and confidence: “share repurchase activity reflects our continued confidence” (CFO); Board declared the 50th consecutive $0.28 dividend and a $0.22 special dividend (President) .
What Went Wrong
- Credit trends softened: NPLs increased to $19.0M (0.73% of loans) from $14.5M, driven by a single construction loan and higher consumer delinquencies; ACL-to-NPL coverage fell to 169% (from 219%) .
- Noninterest expense increased to $25.5M (+7% YoY) on wage, operations, and professional fees; efficiency ratio worsened YoY to 68.4% (vs 65.8% in Q2’24) despite modest QoQ improvement .
- Funding mix became less favorable: deposits decreased $62M QoQ primarily from brokered CDs (-$59M), while borrowings rose $166M to fund growth, elevating sensitivity to funding costs .

Metric	Q2 2024	Q1 2025	Q2 2025
Net Income ($M)	$9.0	$8.0	$7.7
Diluted EPS ($)	$1.13	$1.01	$0.99
Net Interest Income ($M)	$30.4	$31.0	$32.1
Noninterest Income ($M)	$5.9	$5.1	$5.2
Provision for Credit Losses ($M)	$1.1	$1.6	$2.0
Net Interest Margin (%)	4.29	4.32	4.30
Efficiency Ratio (%)	65.78	69.39	68.40

Segment net income

Segment Net Income ($M)	Q4 2024	Q1 2025	Q2 2025
Commercial & Consumer Banking	$7.42	$7.78	$7.38
Home Lending	-$0.04	$0.24	$0.35

Balance sheet and credit KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Loans Receivable, Net ($B)	$2.46	$2.50	$2.58
Deposits ($B)	$2.38	$2.62	$2.55
Noninterest-Bearing Deposits ($B)	$0.62	$0.68	$0.65
Borrowings ($M)	$181.9	$68.8	$234.3
NPLs ($M)	$11.4	$14.5	$19.0
NPLs / Gross Loans (%)	0.46	0.57	0.73
ACL / NPLs (%)	273.95	219.08	168.89
ROA (%)	1.22	1.07	0.99
ROE (%)	12.72	10.80	10.29
Book Value / Share ($)	$37.15	$39.12	$39.55
Tangible Common Equity Ratio (%)	9.07	9.26	8.91

Estimate comparison (S&P Global)

EPS: Q4’24 $1.08* vs reported $0.963 (miss); Q1’25 $0.93* vs $0.932 (in line); Q2’25 $0.97* vs $0.99 (beat) .
Revenue (S&P definition): Q4’24 $37.1M* vs $34.2M*; Q1’25 $36.1M* vs $34.5M*; Q2’25 $36.6M* vs $35.3M* (all misses on S&P “revenue”) (bank revenue definitions vary) .

Values with asterisk (*) are from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
Regular Dividend per Share	Payable Aug 21, 2025	$0.28 (Q1’25 declared)	$0.28 (Q3’25 payable)	Maintained
Special Dividend per Share	Payable Aug 21, 2025	None	$0.22	New (Raised capital return)
Share Repurchase Authorization	Through July 9, 2026	$5.0M authorized Apr 4, 2025	Additional $5.0M authorized Jul 9, 2025	Raised
Financial Outlook (Revenue/Margins/Tax)	FY25	Not provided	Not provided	Maintained (no formal guidance)

Note: We did not locate a Q2 2025 earnings call transcript in our document set; themes below reflect management’s press release commentary.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
NIM and Funding Costs	NIM 4.31% in Q4; cost of funds up with higher rates; focus on duration matching	NIM 4.30%; cost of funds 2.39%; stable spread as asset yields/mix offset funding	Stable
Deposit/Borrowing Mix	Q4 deposits fell, brokered CDs down; FHLB borrowings up to $308M	Deposits -$62M QoQ (brokered -$59M); borrowings +$166M to $234M	Less favorable (mix)
Loan Growth	Q4 loans +$38M; Q1 flat QoQ	Loans +$81M QoQ (+3%); CRE/multi-family/C&I strength	Improving
Credit Quality	Q4 NPLs up to $13.6M; higher consumer/C&I charge-offs	NPLs to $19.0M; construction loan drove increase; higher consumer delinquencies	Worsening
Home Lending Business	Q4 loan sales $138.9M, GM 3.14%	Sales $127.1M; GM 3.06%; seasonal pickup from Q1	Stable to slight down margin
Capital Return/Shareholder Value	Q4 dividend up to $0.28; ongoing buybacks	50th dividend + $0.22 special; 132k shares repurchased; new $5M buyback	Increasing

“We are proud of the balance sheet growth this quarter driven by solid loan demand. Additionally, our share repurchase activity reflects our continued confidence and commitment to delivering long-term value to our shareholders.” — Phillip Whittington, CFO .
“We are pleased to announce that our Board of Directors has approved our 50th consecutive quarterly cash dividend of $0.28 per common share… [and] a special dividend of $0.22 per common share.” — Matthew Mullet, President .
Operating context: NIM 4.30% (+1 bp YoY); average cost of funds 2.39% (+1 bp YoY); NII up on loan growth; provision higher on net charge-offs and growth .

We did not find a Q2 2025 earnings call transcript in our sources; therefore, Q&A themes and any guidance clarifications from the call are not available.

EPS: Reported $0.99 vs S&P consensus $0.97* (beat); Q1’25 in line ($0.93* vs $0.93 reported); Q4’24 below ($1.08* vs $0.96 reported) .
Revenue (S&P definition): Q2’25 $35.3M* vs $36.6M* consensus (miss); bank “revenue” definitions vary versus company’s NII + noninterest income presentation .

Values with asterisk (*) are from S&P Global.

Core spread earnings resilient: NIM held ~4.30% as loan growth/mix offset modestly higher funding costs; watch funding mix with higher borrowings vs brokered deposit roll-off .
Credit is normalizing: NPLs rose to 0.73% of loans and ACL/NPL coverage fell; monitor the identified construction loan and consumer delinquency trends into 2H25 .
Capital return stepped up: regular + special dividend and refreshed $5M buyback provide support; TBV/share rose to $37.46 and BV/share to $39.55 .
Loan growth momentum in CRE, multi-family, and C&I supports NII, but mix relies more on borrowings near-term, a headwind if rates/terming costs persist .
Home lending steady volumes with slightly lower gain-on-sale margins QoQ; seasonal support may fade—watch rates and secondary market demand .
No formal FY guidance; management commentary implies continued focus on risk-adjusted growth and disciplined funding amid macro uncertainty .
Near-term setup: special dividend/buyback are positive trading catalysts; risk skews to funding costs and credit metrics; medium-term thesis hinges on sustaining 4.3% NIM while credit stabilizes .

Values with asterisk (*) are from S&P Global.