Total Revenue

–17.8% (from $141.91M to $116.67M)

Total Revenue dropped sharply primarily due to a significant reduction in noninterest income, which in turn was driven by a 33% decline in CRBT revenue and the near disappearance of the “All Other” segment revenue. This decline reflects challenges in capital markets activities and a loss of revenue contributions from ancillary segments compared to Q1 2024. " "

Net Income

–3.5% (from $26.73M to $25.80M)

Net Income experienced a modest decline despite falling total revenue, as the increase in net interest income helped partially offset the impact of a 37% drop in noninterest income. However, higher provisions for credit losses also weighed on profitability compared to the previous period. " "

Net Interest Income

+9.6% (from $54.70M to $59.99M)

Net Interest Income improved by 9.6%, driven by higher loan and investment yields and volume effects that outpaced the increased cost pressures from deposits. This positive turn contrasts with the weaker performance seen in noninterest income, highlighting effective balance sheet management relative to Q1 2024. " "

Provision for Credit Losses

+42.5% (from $2.97M to $4.23M)

Provision for Credit Losses surged by 42.5%, reflecting elevated net charge-offs and the impact of increased loan growth that brought in a higher volume of criticized assets. The sharp rise indicates more caution around credit quality compared to Q1 2024. " "

Total Noninterest Income

–37% (from $26.86M to $16.89M)

Total Noninterest Income fell by 37%, largely due to a steep drop in capital markets revenue and the adverse effects of greater losses on derivatives and lower earnings from bank-owned life insurance and other fee categories. The decline was compounded by a 33% fall in CRBT revenue and a near-elimination of the “All Other” segment revenue compared to Q1 2024. " " " "

Operating Cash Flow

Shift from +$2.74M to –$3.55M

Operating Cash Flow turned negative, reversing the positive flow from the previous period as a consequence of lower revenue levels, higher credit loss provisions, and reduced earnings overall. This change suggests increased operational pressures and a deterioration in working capital management relative to Q1 2024. " "

CRBT Revenue (Geographic)

–33% (from $47.98M to $31.93M)

CRBT revenue declined by 33%, largely due to a significant drop in capital markets revenue which is a key component of the segment’s inflows. The reduction reflects weaker performance in areas such as swap fees and other capital markets activities compared to Q1 2024. " "

All Other Segment Revenue

Nearly disappeared (from $33.67M to $0.09M)

The "All Other" segment revenue nearly vanished, dropping from $33.67M to only $0.09M, primarily as a result of intercompany eliminations and reduced contributions from miscellaneous operating segments. This sharp reduction indicates that revenue previously attributed to smaller segments or corporate operations was substantially eliminated in Q1 2025 relative to Q1 2024. " "

Net Interest Margin

Q2 2025

no prior guidance

static to an increase of 4 basis points " "

no prior guidance

Loan Growth

Q2 2025

no prior guidance

4% to 6% (annualized) " "

no prior guidance

Noninterest Expenses

Q2 2025

no prior guidance

$50 million to $53 million " "

no prior guidance

Full‐Year Loan Growth

FY 2025

8% to 10% (Q4 2024 guidance)

Suspended due to heightened uncertainty "

lowered

Capital Markets Revenue

FY 2025

expected to remain robust " " " " " " " "

$50 million to $60 million " "

no change

Margin Expansion

Mentioned consistently in Q4 2024 " " , Q3 2024 " " , and Q2 2024 " " with focus on improving NIM through reduced deposit/funding costs, stable core deposit mix, and improved loan yields.

In Q1 2025, margin expansion was achieved by disciplined cost management that largely offset the 4 basis points dilution from expired interest rate caps, delivering an adjusted core NIM expansion of 5 basis points. " "

Stable and positive – The focus remains on margin improvement with continued cost reduction even as adjustments for cap expiry are managed effectively.

NIM Sensitivity

Consistently discussed in Q4 2024 " " , Q3 2024 " " , and Q2 2024 " with comments on liability sensitivity and rate cut–driven margin improvements.

In Q1 2025, the company reiterated that for every 25 basis point rate cut a margin improvement of 2 to 3 basis points is expected, reinforcing the benefit of its liability-sensitive profile. " "

Consistent – The discussion remains aligned with prior periods with a continued bullish tone on the benefits of rate cuts.

Securitization Strategy

Detailed in Q4 2024 " " " , Q3 2024 " " " , and Q2 2024 " " around leveraging LIHTC loans, shifting toward larger deals, and improved execution economics.

In Q1 2025, the strategy remains focused on flexibility and capital management through securitizations of LIHTC loans, with planned execution adjustments based on LIHTC growth and market conditions. " " "

Steady with evolving details – The overall approach stays the same while execution timing remains contingent on LIHTC performance and market factors.

Execution Risks

Discussed in Q4 2024 " " , Q3 2024 " " , and Q2 2024 " " in relation to market conditions, pricing challenges, and loan eligibility criteria affecting securitizations.

In Q1 2025, execution risks associated with the securitization strategy are acknowledged, particularly tied to the pace of LIHTC growth and prevailing market uncertainties. " " "

Consistent caution – Risks remain similar to previous periods, with continued awareness of market and execution challenges.

Robust Deposit Growth and Liquidity

Q4 2024 showed 8% core deposit growth and ample liquidity " " , Q3 2024 noted 13% annualized deposit growth and a strong liquidity position " " , while Q2 2024 indicated mixed performance with static core deposits but overall positive liquidity metrics. " "

Q1 2025 reported robust deposit growth of core deposits increasing by $332 million (20% annualized) and substantially improved liquidity levels, reducing reliance on wholesale funding. " "

Improved and bullish – Deposit growth and liquidity are stronger in Q1 2025 compared to earlier quarters, enhancing the balance sheet and funding flexibility.

Loan Growth and Demand Dynamics

Q4 2024 showed healthy gross growth backed by LIHTC and commercial lending " " ; Q3 2024 reported strong year-to-date loan growth with solid LIHTC and commercial segments " " " ; Q2 2024 demonstrated moderate net growth with mixed dynamics from new production versus payoffs. " "

Q1 2025 experienced modest loan growth (2% annualized, or 4% with adjustments) due to elevated payoffs—largely from clients selling real estate/businesses—and cautious demand amid macroeconomic uncertainty. " " " "

Slightly subdued – While the underlying demand remains healthy, near-term growth is dampened by macro uncertainty, leading to a more cautious outlook compared to previous robust periods.

Macroeconomic Uncertainty Impacting Loan Growth

Explicitly addressed in Q4 2024 " with a cautious tone and mild client hesitancy; Q2 2024 mentioned broader economic uncertainty in the context of capital management " " ; Q3 2024 did not emphasize this aspect.

In Q1 2025, heightened macroeconomic uncertainty is a key theme, causing modest loan growth and the suspension of full-year guidance, driven by client hesitation and increased payoffs. " "

Heightened and more cautious – The awareness of macro uncertainty is more pronounced in Q1 2025, directly influencing loan growth expectations.

Tariff-Related Credit Risks

Not mentioned in Q4 2024, Q3 2024, or Q2 2024.

Introduced in Q1 2025, where a detailed credit review identified limited exposure (only two high-risk credits totaling approximately $6 million) related to tariff issues. "

New topic – This is an emerging area of concern, though the overall exposure is limited, warranting monitoring going forward.

Regulatory and Durbin-Related Expense Pressures

Discussed in Q3 2024 with reference to future cost pressures as the company approaches the $10 billion asset threshold and implications from the Durbin Amendment. " No mention in Q4 or Q2 2024.

Not mentioned in Q1 2025 earnings call; the company did not provide updates on these expense pressures in the current period.

Less emphasis – Earlier focus in Q3 2024 has subsided in Q1 2025, suggesting a possible deprioritization in the current discussion.

Interest Rate Cap Expiry Impact

Addressed in Q4 2024 where the expiration of caps was expected to result in a 4 basis point NIM reduction, offset by improved core performance. " " No discussion in Q3 or Q2 2024.

In Q1 2025, the impact is discussed in detail: despite a 4 basis point dilution from cap expiry, benefits from lower deposit/funding costs allowed for a net adjusted increase in core NIM of 5 basis points. " "

Clarified and managed – The current period provides a clear explanation of the cap expiry impact, with effective offsetting measures in place, leading to a neutral to positive sentiment.

Capital Management and Deployment Strategies

Covered across Q2 2024 " " " , Q3 2024 " " , and Q4 2024 " " " focusing on organic growth, deploying excess capital cautiously, and maintaining strong capital ratios with a measured approach to buybacks and M&A.

Q1 2025 emphasizes building capital with strong buyback capacity (though actions are paused due to uncertainty), sustained securitization strategies, and overall disciplined expense management to support long-term capital strength. " " "

Consistent with heightened caution – The focus remains on organic growth and careful capital deployment while adapting to current economic uncertainties.

Operational Efficiency and Cost Management

Q2 2024 showed a 57% efficiency ratio with significant cost control " " ; Q3 2024 detailed core noninterest expense management and efficiency improvements " " ; Q4 2024 highlighted a year-end efficiency ratio of 58.4% with strategic technology investments. "

Q1 2025 reported noninterest expenses below guidance with a $7 million reduction (13% decrease) driven by lower variable compensation, while maintaining investments in technology and cost discipline to prepare for future normalization. " " "

Steady and disciplined – Operational efficiency remains a key focus with consistent cost management strategies in place, aligning with previous periods while adapting to current revenue conditions.