Executive Summary

Q2 2025 delivered steady growth and modest beats: diluted EPS was $0.84 vs S&P Global consensus $0.815* and total revenue (net interest income + noninterest income) was $103.61M vs $101.07M*; net interest margin expanded 15 bps q/q to 3.88% .
Organic balance sheet growth accelerated: loans +$138.2M q/q (8.1% annualized) and deposits +$170.5M q/q (8.3% annualized); cost of total deposits fell 6 bps q/q to 1.37% .
Credit quality mixed: provision increased to $4.7M (from $3.7M), NPLs rose to $64.8M (from $54.9M) driven by agricultural real estate valuation changes; ACL-to-loans at 1.79% and coverage of NPLs at 192% .
Capital return stepped up: post-quarter Board raised quarterly dividend to $0.36 from $0.33 (+9.1%), citing confidence in earnings and balance sheet growth outlook .
Management catalysts: stable NIM outlook with continued earning asset yield and funding cost improvements; planned repayment of ~$57.7M trust/subordinated debt before Sept 30, 2025 to lower funding costs .

What Went Well and What Went Wrong

What Went Well

Net interest income and margin improved: NII (FTE) up $4.0M q/q to $86.8M; NIM (FTE) up 15 bps to 3.88%. “Our net interest margin outlook remains stable with continued earning asset yield and funding cost improvements leading to additional net interest income growth.” — Peter Wiese, CFO .
Strong organic growth: loans +$138.2M q/q and deposits +$170.5M q/q; loan originations/draws rose to ~$457.7M on easing rates and improving macro outlook .
Operating leverage: efficiency ratio improved to 59.00% from 60.42% q/q; ROAA/ROAE ticked up to 1.13%/8.68% .

What Went Wrong

Higher credit costs: provision rose to $4.7M from $3.7M q/q, driven by $2.9M increase in individually evaluated reserves (agricultural real estate valuation changes) and $1.6M general reserves tied to loan growth .
Nonperformers increased: NPLs to $64.8M (from $54.9M) and NPAs to $67.5M (0.68% of assets; from 0.59%), concentrated in farmland collateral .
Personnel expenses up: salaries/benefits +$1.4M q/q to $38.3M, largely tied to higher production volumes; total noninterest expense +$1.5M q/q to $61.1M .

Financial Results

Income Statement vs prior periods and consensus

Metric	Q4 2024	Q1 2025	Q2 2025
Diluted EPS ($)	$0.88	$0.80	$0.84
Total Revenue ($MM) (NII + Noninterest)	$100.37	$98.62	$103.61
Net Interest Income ($MM)	$84.09	$82.54	$86.52
Noninterest Income ($MM)	$16.28	$16.07	$17.09
Provision for Credit Losses ($MM)	$1.70	$3.73	$4.67
Efficiency Ratio (%)	59.56%	60.42%	59.00%
Net Interest Margin (FTE, %)	3.76%	3.73%	3.88%

Consensus vs Actual (Q2 2025)

Metric	Consensus	Actual
Primary EPS	0.815*	0.84
Revenue ($MM)	101.07*	103.61

Values marked with * retrieved from S&P Global.

Balance Sheet and Mix

Metric	Q4 2024	Q1 2025	Q2 2025
Total Assets ($MM)	$9,673.7	$9,819.6	$9,924.0
Loans, Gross ($MM)	$6,768.5	$6,820.8	$6,959.0
Deposits ($MM)	$8,087.6	$8,205.3	$8,375.8
Loan-to-Deposit Ratio (%)	83.69%	83.13%	83.08%
Avg Cost of Total Deposits (%)	1.46%	1.43%	1.37%
Avg NIB Deposits (% of avg total)	31.8%	30.7%	30.6%

Credit KPIs

Metric	Q4 2024	Q1 2025	Q2 2025
ACL / Gross Loans (%)	1.85%	1.88%	1.79%
Nonperforming Loans ($MM)	$44.10	$54.85	$64.78
Nonperforming Assets ($MM)	$46.88	$57.54	$67.47
NPAs / Total Assets (%)	0.48%	0.59%	0.68%
Loans 30+ DPD ($MM)	$32.71	$44.75	$42.97
ACL Coverage of NPLs (%)	284%	234%	192%

Loan Portfolio Detail (Outstanding Principal)

Loan Type ($MM)	Mar 31, 2025	Jun 30, 2025	Jun 30, 2024
CRE – Non-Owner Occupied	$4,634.4	$4,730.7	$4,461.1
Consumer	$1,279.9	$1,288.7	$1,300.7
Commercial & Industrial	$457.2	$467.6	$548.6
Construction	$298.3	$304.9	$283.4
Agriculture Production	$144.6	$161.5	$140.2
Leases	$6.35	$5.63	$8.45
Total Loans, Gross	$6,820.8	$6,959.0	$6,742.5

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q3 2025 payable	$0.33 (Q2 2025)	$0.36 (declared Aug 21, payable Sep 19)	Raised
Net interest margin outlook	2H 2025	Not quantified (Q1 noted slight contraction)	Stable; expect NII growth via yield and cost improvements	Maintained/Stabilized
Borrowings (trust/sub debt)	By 9/30/2025	N/A	Plan to repay ~$57.7M (book ~$60.0M, 6.54% WA rate)	Reduce interest expense
Efficiency focus	Ongoing	Ongoing	Emphasis on operating leverage; efficiency ratio improved	Maintained

No quantitative revenue/OpEx/tax rate ranges were provided; effective tax rate in Q2 was 27.2% (context for modeling) .

Earnings Call Themes & Trends

Note: We searched for a Q2 2025 earnings call transcript but did not find a publicly available transcript in our document set or via targeted search. Key themes below reflect management’s prepared remarks and investor materials.

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Net interest margin	Expanded in Q4 on lower funding costs; contracted slightly in Q1 on Fed cuts tail impact	Expanded to 3.88% with asset yields up and funding costs down	Improving
Loan & deposit growth	Q4: loans +$84.6M; Q1: loans +$52.3M, deposits +$117.8M	Loans +$138.2M, deposits +$170.5M; strong originations	Accelerating
Funding costs / deposit mix	Q4/Q1: avg cost of deposits fell; NIB % down modestly	Cost of deposits down to 1.37%; NIB avg 30.6%	Favorable costs; mix slightly less NIB
Credit quality	Q4: stable ACL; Q1: higher provision due to individually evaluated loans	Provision higher; NPLs/NPAs up on ag real estate valuations; ACL coverage still strong	Mixed (elevated NPLs)
Liquidity/borrowings	Q4: reduced other borrowings; strong unused capacity	Other borrowings down; intent to repay trust/sub debt	Deleveraging
Capital & dividends	Q4/Q1: maintained $0.33 dividend	Dividend raised to $0.36 post-Q2	Shareholder-friendly
Macro/tariffs policy	Q1: noted tariff uncertainties; rate cuts context	Continued tariff uncertainty; modestly improved outlook; no FOMC changes Q2	Cautious, stable

Management Commentary

“Growth was certainly the highlight of the quarter with new and expanded relationships being adding for both loans and deposits. We expect this balance sheet growth to further drive the expansion of net interest income through the remainder of 2025.” — Rick Smith, President & CEO .
“Our net interest margin outlook remains stable with continued earning asset yield and funding cost improvements leading to additional net interest income growth.” — Peter Wiese, EVP & CFO .
On credit provisioning: increases were “largely attributed to changes in observable market valuations associated with agricultural real estate,” coupled with general reserves from net loan growth .

Q&A Highlights

We did not locate a Q2 2025 earnings call transcript; therefore, Q&A details are unavailable based on primary documents/accessed sources. We continue to monitor for transcript publication.

Estimates Context

EPS beat: $0.84 actual vs $0.815 consensus*; 6 estimates contributed to EPS consensus .
Revenue beat: $103.61M actual (NII + noninterest) vs $101.07M consensus*; 5 estimates contributed to revenue consensus .
Post-quarter dividend raise and stable NIM outlook may prompt upward revisions to out-quarter NII/EPS, though higher NPLs/provision trends (agriculture collateral) could temper magnitude .