Total Revenue

-4.9%

Total Revenue declined by 4.9% YoY from $155.960 million in Q1 2024 to $148.145 million in Q1 2025, likely due to pressure from lower noninterest income and fee-related revenue despite a rise in net interest income; this reversal contrasts with the previous period’s stronger revenue mix. " "

Net Interest Income

+7%

Net interest income increased by about 7% YoY from $73.323 million to $78.459 million, driven by a reduction in interest expense (notably a $7.7 million decrease due to a 38 basis point reduction in deposit rates and a shorter Q1) and improved yields from strategic portfolio adjustments, despite declines in income from loans held for investment. " "

Noninterest Income

-10%

Noninterest income fell nearly 10% YoY from $17.255 million to $15.602 million, reflecting weaker fee and commission revenue as well as adverse valuation and loss on sales impacts compared to the prior period’s performance, echoing similar trends observed in FY 2024. " "

Net Income

∼ -1%

Net income remained essentially flat YoY, with $22.411 million in Q1 2025 versus $22.632 million in Q1 2024; the modest change indicates that improvements in net interest income and operating cash flows were offset by the decline in noninterest income and other expense pressures relative to the previous period. " "

Operating Cash Provided by Activities

+19%

Operating cash flows improved by 19% YoY from $29.875 million to $35.563 million, influenced by factors such as an inaugural $1.863 million Employee Retention Credit, increases in depreciation/amortization (up by $1,176 thousand), and favorable shifts in deferred income tax expense, partially offset by adverse changes in working capital items compared to Q1 2024. " "

Liquidity (Cash & Cash Equivalents)

+67%

Liquidity strengthened dramatically by 67% YoY, rising from $291.512 million to $486.202 million, which suggests effective cash management and possibly proactive liquidity measures; however, explicit drivers were not detailed in the documents, making it challenging to pinpoint the precise causes relative to previous quarters. " "

Capital Position (Total Stockholders’ Equity)

+9%

Total stockholders’ equity increased nearly 9% YoY to $1,180.177 million due to positive net income, strong other comprehensive income (including improvements from net unrealized gains on investment securities), and modest impacts from dividends and stock-based compensation, reflecting a healthier capital base compared to the prior period. " "

Energized Loan Pipeline

In Q2 2024, the pipeline was described as strong and diversified with a value of $1.4 billion and a focus on high-quality borrowers. " Q3 2024 did not mention it.

In Q1 2025, executives highlighted that bankers are energized, noting nice growth in March with a pipeline in line with budget expectations despite certain uncertainties. " "

Recurring with enhanced positive sentiment: Continuous emphasis with an added focus on active engagement by bankers.

Effective Cost Optimization

Q3 2024 discussions centered on improving operating efficiencies through technology investments (e.g., robotics process automation) and benchmarking to support profitability goals. " " " Q2 2024 did not mention this topic.

Q1 2025 reiterated the "Optimize Origin" initiative with detailed steps on restructuring, achieving cost reductions (noninterest expense declines and updated expense guidance) and maintaining flexibility in investments. " " "

Recurring with increased emphasis: Continued focus on cost management with more detailed initiatives and clearer expense guidance.

Capital Deployment Confidence

In Q2 2024, robust regulatory capital and TCE ratios (e.g., TCE rising from 9.3% to 9.5%) were mentioned, along with a general sense of capital flexibility. In Q3 2024, confidence was expressed by leadership regarding being well‐capitalized. " "

Q1 2025 reaffirmed confidence with tangible book value growth, strong regulatory capital levels, and plans for share buybacks and a $75 million subordinated debt call. " "

Consistently positive: Steady confidence in capital deployment across periods with similar messaging and additional shareholder-friendly actions.

Fee Income Outlook

In Q2 2024, fee income outlook was discussed in positive terms for both the mortgage (with stronger-than-expected volume) and insurance segments. " Q3 2024 did not address this topic.

Q1 2025 highlighted a reduced fee income outlook driven by mortgage restructuring pressures, while also noting improvements such as increased swap income, but overall a more cautious revenue view. "

Declining sentiment: Shift from previously positive expectations to a more cautious outlook due to revenue-side pressures from restructuring.

Margin Dynamics

Q2 2024 discussions noted a near-guidance level NIM of around 3.22% with expectations for low- to mid-single digit expansion fueled by asset repricing benefits. " Q3 2024 noted short-term compression due to rate cuts but an overall expected recovery. " "

Q1 2025 reported a net interest margin expansion of 11 basis points reaching 3.44%, along with increased guidance for later periods, reflecting disciplined deposit pricing and effective loan pricing. "

Gradually improving: Consistent focus with evolving positive updates and a more optimistic near-term outlook.

Asset Repricing Effects

Q3 2024 provided detailed insights on the timing of asset repricing effects and the lag between rate cuts and yield benefits. " Q2 2024 did not include commentary on this topic.

Q1 2025 did not mention asset repricing effects explicitly.

Lower emphasis in current period: Previously discussed in detail but not a focus in Q1 2025, suggesting it is either resolved or less topical now.

Deposit Management Strategies

Q2 2024 covered stabilization of deposit mix and growth in noninterest-bearing deposits, while Q3 2024 emphasized strong deposit growth, reduction of brokered deposits, and strategic pricing initiatives. " " "

Q1 2025 maintained the stable growth narrative with deposits up 1.4% (or 1.8% excluding brokered deposits) and highlighted shifts toward money market and demand deposits to manage pricing competition. " "

Consistent with adjustments: Recurring focus on deposit growth and cost management with slight tactical shifts in deposit mix.

Credit Quality and Liquidity Position

Q2 2024 noted increases in past due, classified, and nonperforming loans (due in part to specific activities), yet also highlighted proactive management. Q3 2024 reported improvements with declines in these metrics and strong liquidity (e.g., deposit growth, low loan-to-deposit ratios). " "

Q1 2025 reflected a mixed picture: past due and nonperforming loans increased moderately, yet liquidity remained strong with robust deposit growth and a low loan-to-deposit ratio, indicating effective management despite credit challenges. " "

Mixed but managed: Some signs of increased credit concerns are present in Q1 2025, though strong liquidity and proactive adjustments help maintain overall stability.

Market and Rate Uncertainty

Q3 2024's discussion focused on deposit pricing pressures and the impact of unexpected Fed rate cuts creating short-term margin compression. " No significant discussion occurred in Q2 2024.

Q1 2025 expanded the discussion to include broader macroeconomic uncertainties affecting customer behavior and loan growth, yet maintained an optimistic tone given strong fundamentals and regional opportunities. " "

Persistent uncertainty with optimism: Ongoing rate uncertainty is acknowledged, but the narrative remains upbeat due to strong positioning and strategic opportunities.

Operational and Regulatory Risks

Q3 2024 indirectly addressed these through discussions on operational efficiencies (e.g., RPA) and strong regulatory capital levels, while Q2 2024 did not mention them explicitly. " " "

Q1 2025 did not provide detailed commentary on operational or regulatory risks, aside from noting benefits like a lower regulatory assessment base affecting expenses. "

Reduced emphasis: Less focus in Q1 2025 compared to earlier periods, indicating that these risks may be stable or less of a concern at present.

Growth Strategy and Credit Exposure Concerns

Q2 2024 highlighted a strategy anchored on deposit growth, geographic expansion (Texas and the Southeast), and rigorous client selection to manage credit exposure. " Q3 2024 expanded on this with detailed discussion of strategic investments to approach the $10 billion asset threshold and improve credit metrics. " "

In Q1 2025, the focus on Growth Strategy continued with the Optimize Origin initiative, targeted loan/deposit growth, and detailed quantitative updates on rising past due, classified, and nonperforming loans – emphasizing cautious optimism amid evolving credit exposure. " " "

Continued with evolving emphasis: Growth initiatives remain a priority while credit exposure concerns have become more detailed and quantitatively emphasized in Q1 2025.

Questioned Activity Uncertainty

Both Q2 2024 and Q3 2024 discussed issues arising from a former banker’s questioned activity in East Texas, noting its impact on credit metrics and detailing internal reviews and reserve adjustments. " " "

Q1 2025 shifted away from specific internal questioned activity issues and instead addressed more general market uncertainty; there was no explicit mention of the previous questioned activity concerns. " " "

Diminished focus: Whereas earlier periods provided detailed discussion, Q1 2025 no longer emphasizes internal questioned activity, suggesting resolution or lower priority.