Net Interest Income

Q1 2025 increased by $51.7 million YoY vs Q1 2024; Q1 2024 had a $11.0 million YoY decline vs Q1 2023 " " " "

Q1 2025’s improvement reflects higher average interest‑earning asset balances and deposit growth compared to Q1 2024, which had suffered from higher deposit balances and rates that reduced yields despite some higher loan and securities yields. " " " " Additionally, the Q1 2025 quarter’s smaller day count led to a $15.9 million QoQ drop, complicating the quarter’s performance when compared with Q4 2024. "

Non‑Interest Income

Q1 2024 increased by $39.4 million QoQ and $187.9 million YoY; Q1 2025 then declined by $2.5 million YoY " " "

In Q1 2024, non‑interest income was buoyed by a $37.3 million increase in net loan servicing revenue and lower losses on investment securities, whereas Q1 2025 saw a reversal with a decline driven by a $24.6 million drop in net loan servicing revenue and a $7.9 million equity investment loss, underscoring shifts in mortgage banking and investment activities. " " "

Net Revenue

Q1 2024 net revenue increased by $46.6 million (6.8%) QoQ and $176.9 million (32.1%) YoY; Q1 2025 net revenue was up $49.2 million (6.8%) YoY but down $60.4 million (7.2%) QoQ " " " " " "

Q1 2024’s growth was driven by the combined effects of higher net interest and non‑interest income. In Q1 2025, although YoY revenue increased driven by improved asset balances, the quarterly decline was mainly due to lower net interest and non‑interest income amid mixed performance in key areas, reflecting a rebalancing from the previous period’s momentum. " " " " " "

Loans

Q1 2024 loans increased by $403 million QoQ and $4.3 billion YoY; Q1 2025 loans grew by $1.1 billion QoQ and $4.1 billion YoY " " " "

The Q1 2024 loans growth was driven by strong performance in Commercial & Industrial (C&I) lending and balanced changes across loan types, while Q1 2025 continued to favor C&I and Commercial Real Estate (CRE) lending, contributing to robust loan additions despite slight differences in the YoY figures compared to the prior year. " " " "

Deposits

Q1 2024 deposits increased by $6.9 billion QoQ (12.5%) and $14.6 billion YoY (30.8%); Q1 2025 deposits rose by $3.0 billion QoQ and $7.1 billion YoY " " " "

Broad-based deposit growth in Q1 2024 was fueled by gains across non‑interest-bearing and interest‑bearing products, establishing a strong base, while Q1 2025 continued this trend with notable increases in non‑interest‑bearing accounts—demonstrating the firm’s ongoing ability to attract deposits even as income mix challenges emerged. " " " "

Provision for Credit Losses

Q1 2024 saw a $5.9 million increase QoQ but a $4.2 million decrease YoY; Q1 2025 provisions increased to $31.2 million (up from $15.2 million YoY) " " " " "

In Q1 2024, credit loss provisions reflected modest adjustments driven by loan growth and stable economic conditions, whereas Q1 2025’s higher provision results—from $15.2 million to $31.2 million YoY—indicate a recalibration of reserves in light of increased loan growth and adjustments related to commercial real estate risks, even though the quarter’s provision was lower than the previous quarter’s peak. " " " " "

Efficiency Ratio

Q1 2025 efficiency ratio increased to 63.5% QoQ from 61.2% but improved YoY from 65.2% "

The QoQ increase in the efficiency ratio for Q1 2025 is linked to higher seasonal compensation costs, while the YoY improvement from 65.2% demonstrates enhanced overall cost management relative to previous periods, highlighting operational adjustments that have gradually improved efficiency despite temporary expense pressures. "

Net Income

Q1 2025 net income increased 12.2% YoY to $199.1 million but declined from $216.9 million QoQ " "

The YoY net income growth in Q1 2025 signifies improved earnings performance, yet the quarterly decline from the prior quarter—partly due to lower net interest and non‑interest income—indicates sensitivity to short‑term revenue fluctuations and cost pressures, even as reduced credit provisions helped mitigate the impact. " "

Tangible Book Value Per Share

Q1 2024 saw an increase of $0.58 per share QoQ (1.2%) and $5.74 YoY (13.8%); Q1 2025 showed a 14.4% YoY increase to $54.10 " " " "

Growth in tangible book value per share reflects the company’s strong equity performance, with Q1 2024 improvements driven by net income and moderated by OCI losses and dividend payouts, while Q1 2025’s further increase to $54.10 per share is attributed to sustained earnings growth and strategic equity moves such as the issuance of preferred stock at its REIT subsidiary, reinforcing the capital base compared to prior periods. " " " "

Loan Growth

FY 2025

$5 billion "

$5 billion "

no change

Deposit Growth

FY 2025

$8 billion "

$8 billion "

no change

CET1 Ratio

FY 2025

remain above 11% "

remain above 11% "

no change

Net Interest Income

FY 2025

6% to 8% growth "

8% to 10% growth "

raised

Noninterest Income

FY 2025

6% to 8% growth "

8% to 10% growth "

raised

Noninterest Expense

FY 2025

0% growth to 5% decline "

1% to 4% growth "

raised

ECR Costs

FY 2025

$485 million to $535 million "

$550 million to $590 million "

raised

Net Charge-Offs

FY 2025

20 basis points "

20 basis points "

no change

Effective Tax Rate

FY 2025

20% "

20% "

no change

Net Interest Margin

FY 2025

no prior guidance

approximate 2024's upper 3.5% level "

no prior guidance

Criticized Assets

FY 2025

no prior guidance

Expected to decline over the next several quarters "

no prior guidance

ECR-Related Deposit Costs

Q3 2025

no prior guidance

$170 million to $180 million "

no prior guidance

Loan Growth

Robust growth detailed in Q1 (e.g., strong HFI and diversified sector contributions " " ), Q4 (diversified loan mix " " " ) and Q3 (7% annualized increase " " ).

Q2 2025 shows robust loan growth with over $1B sequential increases supported by regional and national business lines. " "

Consistent robust performance across periods with sequential gains; the current period reinforces the bank’s strong momentum in diversified loan growth. " "

Net Interest Margin

Discussed in Q1 with gradual expansion and rate cut dependency ( " " " " ); in Q4, margin compression offset by cost reductions ( " " " ); and in Q3, slight compression with adjusted NIM improvement ( " " ).

Q2 2025 saw a 6 bp sequential expansion driven by lower deposit costs and expectations for full‐year levels near 3.5%. " " "

Continued expansion with evolving dependency on rate cuts—improvements are maintained despite market pressures, reflecting stability in NIM management. " " "

Asset Quality

Q1 highlighted proactive credit risk management and modest increases in criticized assets " ; Q4 noted resilient quality with slight percentage declines " ; Q3 emphasized stable mix and increasing ACL. " "

Q2 2025 shows a decline in criticized loans along with managed ACL adjustments. " "

Stable and proactive management – asset quality remains resilient with expectations of gradual improvement in problematic areas. " "

Capital Management & Deposit Growth

Q1 focused on strong deposit growth ($8B target and increased tangible book value " " " ); Q4 stressed diversified funding with solid deposit increases " " " ; Q3 discussed balanced deposit platform growth. " "

Q2 2025 emphasized an $8B deposit growth target, strong capital ratios, and integrated strategies for deposit diversification. " " "

Ongoing focus on capital strength and deposit expansion with steady execution; slight shift to incorporate digital initiatives into deposit strategies.

Digital Asset & Technology Deposits

Q4 2024 mentioned digital assets as comprising about 2% of deposits with potential for more " ; Q1 and Q3 had no mentions (N/A).

Q2 2025 highlighted digital asset banking delivering $400M in deposit growth and reinforced limits (2%-4%) amid regulatory optimism. " " "

Emerging as a key deposit driver – this topic is gaining prominence in Q2 with increased contributions and regulatory support compared to earlier periods.

CFO Transition & Leadership

Q4 2024 noted interim leadership with Dale Gibbons serving as Interim CEO/CFO " ; no mention in Q1 or Q3 (N/A).

Q2 2025 introduced a planned CFO transition from Dale Gibbons to Vishal with clear continuity and leadership stability. " "

Newly emphasized – a structured transition plan now provides assurance of leadership continuity, contrasting with previous limited mentions.

Economic Uncertainty

Q1 2025 acknowledged caution with tariff-related concerns and modest uncertainty " ; Q4 addressed adverse scenarios through provisioning " ; Q3 did not explicitly emphasize it.

No specific mention in Q2 2025.

Reduced emphasis in the current period, suggesting increasing confidence in structural resilience and stable loan growth despite earlier economic concerns.

Operating Expense & Regulatory Preparedness

Q1 referenced moderated expense growth with guidance for minimal increases and LFI preparations " " " ; Q4 noted deposit insurance costs and FTE growth linked to regulatory readiness ( " " " ); Q3 showed a 5% core expense growth run rate and Category IV readiness. "

Q2 2025 reported a modest expense rise due to increased deposit costs and amplified spending for LFI threshold preparations. " "

Continued focus on regulatory preparedness – expenses are managed with an eye toward efficiency improvements even as investments for growth (LFI readiness) increase.

Mortgage Banking Performance

Q1 reported a 25% increase in production volume but lower gain on sale margins " " " ; Q4 evidenced strong revenue gains and strategic hedging ( " " " " ); Q3 addressed volatility and prepayment impacts with moderated gains ( " " " ).

Q2 2025 showed stable mortgage banking revenue, flat year-over-year outlook, and strategic hedging amidst volatility. " "

Stable yet cautious – the division remains flat in revenue with careful hedging to manage volatility, maintaining performance despite market fluctuations.

Reliance on Non-Recurring Earnings

Q3 2024 noted non-recurring items such as MSR valuation changes and ECR pressures that balanced out overall performance. "

Not mentioned in Q2 2025.

Not a current focus – the previous non-recurring earnings items appear to have normalized, indicating a shift toward more sustainable recurring performance. "