2 unchanged sentences
Banner is a bank holding company incorporated in the State of Washington, which wholly owns one subsidiary bank, Banner Bank.
−Removed: The Bank is a Washington-chartered commercial bank that conducts business from its main office in Walla Walla, Washington, and as of March 31, 2025, it had 135 branch offices and 13 loan production offices located in Washington, Oregon, California, Idaho and Utah.
+Added: The Bank is a Washington-chartered commercial bank that conducts business from its main office in Walla Walla, Washington, and as of June 30, 2025, it had 135 branch offices and 13 loan production offices located in Washington, Oregon, California, Idaho and Utah.
Banner is subject to regulation by the Federal Reserve.
The Bank is subject to regulation by the Washington State Department of Financial Institutions – Division of Banks (the DFI) and the Federal Deposit Insurance Corporation (the FDIC).
−Removed: As of March 31, 2025, we had total consolidated assets of $16.17 billion, total loans of $11.44 billion, total deposits of $13.59 billion and total shareholders’ equity of $1.83 billion.
+Added: As of June 30, 2025, we had total consolidated assets of $16.44 billion, total loans of $11.69 billion, total deposits of $13.53 billion and total shareholders’ equity of $1.87 billion.
The Bank is a regional bank that offers a wide variety of commercial banking services and financial products to individuals, businesses and public sector entities in its primary market areas.
4 unchanged sentences
The Company’s longer term strategic initiatives continue to focus on originating high quality assets and client acquisition, which we believe will continue to generate strong revenue while maintaining the Company’s moderate risk profile.
−Removed: First Quarter 2025 Financial Highlights
−Removed: • Net interest margin, on a tax equivalent basis, was 3.92%, compared to 3.82% in the preceding quarter.
−Removed: • Revenue was $160.2 million for the first quarter of 2025, compared to $160.6 million in the preceding quarter.
−Removed: • Net interest income was $141.1 million in the first quarter of 2025, compared to $140.5 million in the preceding quarter.
−Removed: • Mortgage banking operations revenue was $3.1 million for the first quarter of 2025, compared to $3.7 million in the preceding quarter.
−Removed: • Return on average assets was 1.15% for both the current and preceding quarter.
−Removed: • Net loans receivable increased to $11.28 billion at March 31, 2025, compared to $11.20 billion at December 31, 2024.
−Removed: • Non-performing assets were $42.7 million, or 0.26% of total assets, at March 31, 2025, compared to $39.6 million, or 0.24% of total assets at December 31, 2024.
−Removed: • The allowance for credit losses - loans was $157.3 million, or 1.38% of total loans receivable, as of March 31, 2025, compared to $155.5 million, or 1.37% of total loans receivable, at December 31, 2024.
−Removed: • Total deposits increased to $13.59 billion at March 31, 2025, compared to $13.51 billion at December 31, 2024.
−Removed: • Core deposits represented 89% of total deposits at March 31, 2025.
−Removed: • Dividends paid to shareholders were $0.48 per share in the quarter ended March 31, 2025.
−Removed: • Common shareholders’ equity per share increased 3% to $53.16 at March 31, 2025, compared to $51.49 at December 31, 2024.
−Removed: • Tangible common shareholders’ equity per share* increased 4% to $42.27 at March 31, 2025, compared to $40.57 at December 31, 2024.
+Added: Second Quarter 2025 Financial Highlights
+Added: • Net interest margin, on a tax equivalent basis, was 3.92% for both the current and preceding quarters.
+Added: • Revenue was $162.2 million for the second quarter of 2025, compared to $160.2 million in the preceding quarter.
+Added: • Net interest income was $144.4 million in the second quarter of 2025, compared to $141.1 million in the preceding quarter.
+Added: • Mortgage banking operations revenue was $3.2 million for the second quarter of 2025, compared to $3.1 million in the preceding quarter.
+Added: • Return on average assets was 1.13%, compared to 1.15% in the preceding quarter.
+Added: • Net loans receivable increased 2% to $11.53 billion at June 30, 2025, compared to $11.28 billion at March 31, 2025.
+Added: • Non-performing assets were $49.8 million, or 0.30% of total assets, at June 30, 2025, compared to $42.7 million, or 0.26% of total assets at March 31, 2025.
+Added: • The allowance for credit losses - loans was $160.5 million, or 1.37% of total loans receivable, as of June 30, 2025, compared to $157.3 million, or 1.38% of total loans receivable, at March 31, 2025.
+Added: • Total deposits decreased to $13.53 billion at June 30, 2025, compared to $13.59 billion at March 31, 2025.
+Added: • Core deposits represented 89% of total deposits at June 30, 2025.
+Added: • Dividends paid to shareholders were $0.48 per share in the quarter ended June 30, 2025.
+Added: • Common shareholders’ equity per share increased 1% to $53.95 at June 30, 2025, compared to $53.16 at March 31, 2025.
+Added: • Tangible common shareholders’ equity per share* increased 2% to $43.09 at June 30, 2025, compared to $42.27 at March 31, 2025.
*Non-GAAP Financial Measures:
7 unchanged sentences
Management believes that these non-GAAP financial measures provide information to investors that is useful in evaluating the operating performance and trends of financial services companies, including the Company (dollars in thousands except per share data).
−Removed: Quarters Ended
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Quarters Ended Six Months Ended June 30,
+Added: Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 2025 2024
ADJUSTED REVENUE
2 unchanged sentences
Total revenue (GAAP) 162,150 160,191 149,745 322,341 294,295
−Removed: Net (gain) loss on sale of securities — (275) 4,903
+Added: Net loss on sale of securities 3 — 562 3 5,465
Net change in valuation of financial instruments carried at fair value (88) (315) 190 (403) 1,182
+Added: Losses incurred on building and lease exits 919 — — 919 —
Adjusted revenue (non-GAAP) $ 162,984 $ 159,876 $ 150,497 $ 322,860 $ 300,942
−Removed: Quarters Ended
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Quarters Ended Six Months Ended June 30,
+Added: Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 2025 2024
ADJUSTED EARNINGS
Net income (GAAP) $ 45,496 $ 45,135 $ 39,795 $ 90,631 $ 77,354
−Removed: Net (gain) loss on sale of securities — (275) 4,903
+Added: Net loss on sale of securities 3 — 562 3 5,465
Net change in valuation of financial instruments carried at fair value (88) (315) 190 (403) 1,182
−Removed: Related net tax expense (benefit) 76 105 (1,415)
+Added: Building and lease exit costs 1,753 — — 1,753 —
+Added: Related net tax (benefit) expense (401) 76 (180) (325) (1,595)
Total adjusted earnings (non-GAAP) $ 46,763 $ 44,896 $ 40,367 $ 91,659 $ 82,406
7 unchanged sentences
10.20 % 10.12 % 9.83 % 10.16 % 10.03 %
−Removed: Quarters Ended
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Quarters Ended Six Months Ended June 30,
+Added: Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 2025 2024
ADJUSTED EFFICIENCY RATIO
3 unchanged sentences
REO operations (392) 61 (297) (331) (77)
+Added: Building and lease exit costs (834) — — (834) —
Adjusted non-interest expense (non-GAAP) $ 98,251 $ 99,410 $ 95,713 $ 197,661 $ 191,547
2 unchanged sentences
Total revenue (GAAP) 162,150 160,191 149,745 322,341 294,295
−Removed: Net (gain) loss on sale of securities — (275) 4,903
+Added: Net loss on sale of securities 3 — 562 3 5,465
Net change in valuation of financial instruments carried at fair value (88) (315) 190 (403) 1,182
+Added: Losses incurred on building and lease exits 919 — — 919 —
Adjusted revenue (non-GAAP) $ 162,984 $ 159,876 $ 150,497 $ 322,860 $ 300,942
4 unchanged sentences
(2) Adjusted earnings (non-GAAP) divided by average equity.
−Removed: (3) Adjusted non-interest expense (non-GAAP) divided by adjusted revenue.
+Added: (3) Adjusted non-interest expense (non-GAAP) divided by adjusted revenue (non-GAAP).
The ratio of tangible common shareholders’ equity to tangible assets is also a non-GAAP financial measure.
4 unchanged sentences
TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
−Removed: March 31, 2025 December 31, 2024 March 31, 2024
+Added: June 30, 2025 March 31, 2025 December 31, 2024 June 30, 2024
Shareholders’ equity (GAAP) $ 1,865,664 $ 1,833,453 $ 1,774,326 $ 1,690,766
7 unchanged sentences
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
−Removed: March 31, 2025 December 31, 2024 March 31, 2024
+Added: June 30, 2025 March 31, 2025 December 31, 2024 June 30, 2024
Shareholders’ equity (GAAP) $ 1,865,664 $ 1,833,453 $ 1,774,326 $ 1,690,766
14 unchanged sentences
There have been no significant changes in our application of critical accounting estimates since December 31, 2024.
−Removed: Comparison of Financial Condition at March 31, 2025 and December 31, 2024
−Removed: Total assets decreased $29.2 million to $16.17 billion at March 31, 2025, from $16.20 billion at December 31, 2024.
−Removed: The decrease compared to year end was primarily due to a decrease in securities and interest-bearing deposits, partially offset by loan growth.
+Added: Comparison of Financial Condition at June 30, 2025 and December 31, 2024
+Added: Total assets increased $237.1 million to $16.44 billion at June 30, 2025, from $16.20 billion at December 31, 2024.
+Added: The increase compared to year end was primarily due to loan growth, partially offset by a decrease in securities and interest-bearing deposits.
Loans and lending:
1 unchanged sentence
We attempt to maintain a total loans to total deposits ratio at a level designed to enhance our revenues, while adhering to sound underwriting practices and appropriate diversification guidelines in order to maintain a moderate risk profile.
−Removed: Our loan to deposit ratio at March 31, 2025 was 84%.
+Added: Our loan to deposit ratio at June 30, 2025 was 87%.
We offer a wide range of loan products to meet the demands of our clients.
Our lending activities are primarily directed toward the origination of real estate and commercial loans.
−Removed: Total loans receivable (gross loans less deferred fees and discounts and excluding loans held for sale) increased $84.1 million at March 31, 2025, compared to December 31, 2024, reflecting increased commercial construction, multifamily construction and land and land development loans, partially offset by decreased commercial real estate, multifamily, commercial business and one-to-four family construction loans.
−Removed: At March 31, 2025, loans receivable totaled $11.44 billion compared to $11.35 billion at December 31, 2024.
+Added: Total loans receivable (gross loans less deferred fees and discounts and excluding loans held for sale) increased $335.7 million at June 30, 2025, compared to December 31, 2024, reflecting increases across all loan categories except multifamily real estate loans and other consumer loans.
The following table sets forth the composition of the Company’s loans receivable by type of loan as of the dates indicated (dollars in thousands):
Percentage Change
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Year End Prior Year Qtr.
+Added: Jun 30, 2025 Dec 31, 2024 Jun 30, 2024 Year End Prior Year Qtr.
Commercial real estate:
20 unchanged sentences
Total loans receivable $ 11,690,373 $ 11,354,656 $ 11,143,848 3 % 5 %
−Removed: Commercial real estate loans totaled $3.84 billion, or 33% of our loan portfolio, and multifamily real estate loans totaled $877.7 million, or 8% of our loan portfolio, at March 31, 2025.
−Removed: Commercial real estate loans decreased by $28.2 million during the first three months of 2025, while multifamily real estate loans decreased by $16.7 million, primarily due to payoffs and paydowns exceeding new production.
−Removed: Our construction, land and land development loans totaled $1.67 billion, or 15% of our loan portfolio, at March 31, 2025, compared to $1.52 billion at December 31, 2024.
−Removed: Multifamily construction loans increased $105.2 million, or 20%, to $618.9 million at March 31, 2025, compared to December 31, 2024.
−Removed: Multifamily construction represented approximately 6% of our total loan portfolio at March 31, 2025.
+Added: Commercial real estate loans totaled $3.97 billion, or 34% of our loan portfolio, and multifamily real estate loans totaled $860.7 million, or 7% of our loan portfolio, at June 30, 2025.
+Added: Commercial real estate loans increased by $108.8 million during the first six months of 2025, primarily due to new production and transfers to the permanent loan portfolio upon completion of the construction phase, partially offset by payoffs and paydowns, while multifamily real estate loans decreased by $33.7 million, primarily due to payoffs and paydowns exceeding new production.
+Added: Our construction, land and land development loans totaled $1.70 billion, or 15% of our loan portfolio, at June 30, 2025, compared to $1.52 billion at December 31, 2024.
+Added: Multifamily construction loans increased $54.4 million, or 11%, to $568.1 million at June 30, 2025, compared to December 31, 2024.
+Added: Multifamily construction represented 5% of our total loan portfolio at June 30, 2025.
Multifamily construction loans were comprised primarily of affordable housing projects and, to a lesser extent, market rate multifamily projects across our footprint.
−Removed: Commercial construction loans increased $24.1 million, or 20%, to $146.5 million at March 31, 2025, compared to $122.4 million at December 31, 2024, due to advances and new loan production, partially offset by transfers to the permanent loan portfolio upon completion of the construction phase.
−Removed: Land and land development loans increased $26.3 million, or 7%, to $396.0 million at March 31, 2025, compared to December 31, 2024, primarily due to new loan production, partially offset by payoffs and paydowns.
+Added: Commercial construction loans increased $36.9 million, or 30%, to $159.2 million at June 30, 2025, compared to $122.4 million at December 31, 2024, due to advances and new loan production, partially offset by transfers to the permanent loan portfolio upon completion of the construction phase.
+Added: Land and land development loans increased $47.8 million, or 13%, to $417.5 million at June 30, 2025, compared to December 31, 2024, primarily due to new loan production, partially offset by payoffs and paydowns.
Our commercial business lending is directed toward meeting the credit and related deposit needs of various small- to medium-sized business and agribusiness borrowers operating in our primary market areas.
−Removed: Our commercial and agricultural business loans were $2.74 billion at March 31, 2025 and $2.76 billion at December 31, 2024.
−Removed: Commercial and agricultural business loans represented approximately 24% of our loan portfolio at March 31, 2025.
−Removed: Our commercial business lending also includes participation in certain syndicated loans, including shared national credits, which totaled $223.6 million, or 2% of our loan portfolio, at March 31, 2025, compared to $227.4 million, or 2% of our loan portfolio, at December 31, 2024.
+Added: Our commercial and agricultural business loans were $2.82 billion at June 30, 2025 and $2.76 billion at December 31, 2024.
+Added: Commercial and agricultural business loans represented 24% of our loan portfolio at June 30, 2025.
+Added: Our commercial business lending also includes participation in certain syndicated loans, including shared national credits, which totaled $226.8 million, or 2% of our loan portfolio, at June 30, 2025, compared to $227.4 million, or 2% of our loan portfolio, at December 31, 2024.
We are active originators of one- to four-family residential loans in most communities where we have established offices in Washington, Oregon, California, Idaho and Utah.
Most of the one- to four-family residential loans we originate in normal market conditions are sold in secondary markets with net gains on sales and loan servicing fees reflected in our revenues from mortgage banking operations.
−Removed: At March 31, 2025, one- to four-family residential loans retained in our portfolio increased $9.0 million, to $1.60 billion, compared to $1.59 billion at December 31, 2024.
−Removed: The increase in one- to four-family residential loans was primarily the result of a higher percentage of one- to four-family construction loans converting to permanent one- to four-family residential loans and new loan production.
−Removed: One- to four-family residential loans represented 14% of our loan portfolio at March 31, 2025.
+Added: At June 30, 2025, one- to four-family residential loans retained in our portfolio increased $18.9 million, to $1.61 billion, compared to $1.59 billion at December 31, 2024.
+Added: The increase in one- to four-family residential loans was primarily the result of one- to four-family construction loans converting to permanent one- to four-family residential loans upon completion of construction and new loan originations.
+Added: One- to four-family residential loans represented 14% of our loan portfolio at June 30, 2025.
Our consumer loan activity is primarily directed at meeting demand from our existing deposit clients.
−Removed: At March 31, 2025, consumer loans, including home equity revolving lines of credit, decreased $4.2 million to $717.2 million, compared to $721.4 million at December 31, 2024.
+Added: At June 30, 2025, consumer loans, including home equity revolving lines of credit, increased $11.1 million to $732.5 million, compared to $721.4 million at December 31, 2024.
The following table shows the commitment amount for loan origination activity (excluding loans held for sale) for the periods indicated (in thousands):
−Removed: Three Months Ended
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Three Months Ended Six Months Ended
+Added: Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024
Commercial real estate $ 216,189 $ 37,041 $ 102,258 $ 253,230 $ 169,620
6 unchanged sentences
Total commitment amount for loan originations (excluding loans held for sale) $ 966,625 $ 535,834 $ 996,098 $ 1,502,459 $ 1,773,952
−Removed: Loans held for sale decreased to $24.5 million at March 31, 2025, compared to $32.0 million at December 31, 2024.
−Removed: The decrease in loans held for sale compared to the preceding quarter was primarily the result of loan sales exceeding new originations of one- to four- family residential mortgage loans held for sale during the quarter.
−Removed: Originations of loans held for sale increased to $75.2 million for the three months ended March 31, 2025, compared to $48.4 million for the same period last year.
−Removed: The volume of one- to four-family residential mortgage loans sold was $108.1 million during the three months ended March 31, 2025, compared to $65.9 million in the same period a year ago.
+Added: Loans held for sale increased to $37.7 million at June 30, 2025, compared to $32.0 million at December 31, 2024.
+Added: The increase was primarily the result of originations of one- to four- family residential mortgage loans held for sale outpacing loan sales during the period.
+Added: Originations of loans held for sale increased to $171.0 million for the six months ended June 30, 2025, compared to $107.2 million for the same period last year.
+Added: The volume of one- to four-family residential mortgage loans sold was $212.7 million during the six months ended June 30, 2025, compared to $160.7 million in the same period a year ago, which included a pooled loan sale of $19.8 million of one- to four-family residential mortgage loans.
The following table presents loans by geographic concentration at the dates indicated (dollars in thousands):
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Percentage Change
+Added: Jun 30, 2025 Dec 31, 2024 Jun 30, 2024 Percentage Change
Amount Percentage Amount Amount Year End Prior Year Qtr.
7 unchanged sentences
Investment Securities:
−Removed: Total securities decreased $5.3 million to $3.10 billion at March 31, 2025, from $3.11 billion at December 31, 2024, primarily due to securities paydowns and maturities exceeding purchases during the three months ended March 31, 2025.
−Removed: Purchases during the three months ended March 31, 2025, consisted primarily of state and local government obligations.
−Removed: The average effective duration of the Company’s securities portfolio was 6.5 years at March 31, 2025, compared to 6.6 years at December 31, 2024.
−Removed: Fair value adjustments for securities designated as available-for-sale increased $38.3 million for the three months ended March 31, 2025, which was included, net of the associated tax expense of $9.2 million, as a component of other comprehensive income, and occurred as a result of decreases in market interest rates during the three months ended March 31, 2025.
+Added: Total securities decreased $60.2 million to $3.05 billion at June 30, 2025, from $3.11 billion at December 31, 2024, primarily due to securities paydowns and maturities exceeding purchases during the six months ended June 30, 2025.
+Added: Purchases during the six months ended June 30, 2025, consisted primarily of state and local government obligations.
+Added: The average effective duration of the Company’s securities portfolio was 6.6 years at both June 30, 2025 and December 31, 2024.
+Added: Fair value adjustments for securities designated as available-for-sale increased $48.0 million for the six months ended June 30, 2025.
+Added: This increase, net of $11.5 million in associated tax expense, was recorded in other comprehensive income and reflected the impact of changes in market interest rates during the six months ended June 30, 2025.
Deposits, client retail repurchase agreements and loan repayments are the major sources of our funds for lending and other investment purposes.
5 unchanged sentences
Percentage Change
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Year End Prior Year Qtr.
+Added: Jun 30, 2025 Dec 31, 2024 Jun 30, 2024 Year End Prior Year Qtr.
Non-interest-bearing $ 4,504,491 $ 4,591,543 $ 4,537,803 (2) % (1) %
6 unchanged sentences
Total deposits $ 13,527,291 $ 13,514,398 $ 13,079,263 — % 3 %
−Removed: Total deposits increased $78.9 million at March 31, 2025, compared to December 31, 2024, with core deposits increasing $74.5 million and certificates of deposit increasing $4.4 million.
+Added: Total deposits increased $12.9 million at June 30, 2025, compared to December 31, 2024, with core deposits increasing $34.8 million and certificates of deposit decreasing $21.9 million.
The increase in core deposits primarily reflects increases in interest-bearing transaction and savings accounts.
−Removed: We had $75.3 million of brokered deposits at March 31, 2025, compared to $50.3 million at December 31, 2024.
−Removed: Core deposits represented 89% of total deposits at both March 31, 2025 and December 31, 2024.
+Added: We had $50.0 million of brokered deposits at June 30, 2025, compared to $50.3 million at December 31, 2024.
+Added: Core deposits represented 89% of total deposits at both June 30, 2025 and December 31, 2024.
Competition for deposits in our market areas remains strong.
The following table sets forth the number and average account balance of the Company’s deposit accounts as of the dates indicated (dollars in thousands):
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Jun 30, 2025 Dec 31, 2024 Jun 30, 2024
Number of deposit accounts 451,185 460,004 460,107
1 unchanged sentence
The following table presents deposits by geographic concentration at the dates indicated (dollars in thousands):
−Removed: Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Percentage Change
+Added: Jun 30, 2025 Dec 31, 2024 Jun 30, 2024 Percentage Change
Amount Percentage Amount Amount Year End Prior Year Qtr.
4 unchanged sentences
Total deposits $ 13,527,291 100 % $ 13,514,398 $ 13,079,263 — % 3 %
−Removed: We had $168.0 million of FHLB advances at March 31, 2025, compared to $290.0 million at December 31, 2024.
−Removed: Other borrowings, consisting of retail repurchase agreements primarily related to client cash management accounts, increased $5.3 million to $130.6 million at March 31, 2025, compared to $125.3 million at December 31, 2024.
−Removed: The overall decrease in borrowings reflects the increased use of deposits to fund loan growth.
−Removed: At March 31, 2025, the Company’s off-balance sheet liquidity included additional borrowing capacity of $3.14 billion at the FHLB and $1.65 billion at the Federal Reserve, as well as federal funds line of credit agreements with other financial institutions of $125.0 million.
−Removed: Junior subordinated debentures totaled $67.7 million at March 31, 2025, compared to $67.5 million at December 31, 2024.
−Removed: Subordinated notes, net of issuance costs were $80.4 million at March 31, 2025, compared to $80.3 million at December 31, 2024.
+Added: We had $565.0 million of FHLB advances at June 30, 2025, compared to $290.0 million at December 31, 2024.
+Added: The increase was primarily used to fund loan growth.
+Added: Other borrowings, consisting of retail repurchase agreements primarily related to client cash management accounts, decreased $8.1 million to $117.1 million at June 30, 2025, compared to $125.3 million at December 31, 2024.
+Added: At June 30, 2025, the Company’s off-balance sheet liquidity included additional borrowing capacity of $2.74 billion at the FHLB, $1.62 billion at the Federal Reserve, and $125.0 million in federal funds lines of credit with other financial institutions.
+Added: Junior subordinated debentures totaled $73.4 million at June 30, 2025, compared to $67.5 million at December 31, 2024.
+Added: The outstanding balance of the Company’s subordinated notes was fully repaid during the second quarter of 2025.
+Added: Subordinated notes, net of issuance costs, were $80.3 million at December 31, 2024.
Shareholders’ Equity:
−Removed: Total shareholders’ equity increased $59.1 million to $1.83 billion, or 11.34% of total assets, at March 31, 2025, compared to $1.77 billion, or 10.95% of total assets, at December 31, 2024.
−Removed: The increase in shareholders’ equity was primarily due to a $28.3 million increase in retained earnings as a result of $45.1 million in net income, partially offset by the accrual of cash dividends during the three months ended March 31, 2025.
−Removed: In addition, accumulated other comprehensive loss decreased by $29.3 million, primarily due to a decrease in the unrealized losses on the security portfolio.
−Removed: There were no shares of common stock repurchased during the three months ended March 31, 2025.
−Removed: Tangible common shareholders’ equity, which excludes goodwill and other intangible assets and is a non-GAAP financial measure, increased $59.6 million to $1.46 billion, or 9.23% of tangible assets, at March 31, 2025, compared to $1.40 billion, or 8.84% of tangible assets at December 31, 2024.
−Removed: A reconciliation of this non-GAAP financial measure to its comparable GAAP financial measure is presented above following “First Quarter 2025 Financial Highlights.”
−Removed: Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024, and March 31, 2024
−Removed: For the quarter ended March 31, 2025, net income was $45.1 million, or $1.30 per diluted share, compared to $46.4 million, or $1.34 per diluted share, for the preceding quarter and $37.6 million, or $1.09 per diluted share for three months ended March 31, 2024.
−Removed: The decrease in net income for the current quarter compared to the preceding quarter was primarily due to a decrease in non-interest income as well as an increase in non-interest expense, partially offset by an increase in net interest income.
−Removed: The increase in net income for the current quarter compared to the prior year quarter was primarily due to increases in net interest income and non-interest income, partially offset by increases in non-interest expense and the provision for credit losses.
−Removed: The increase in net interest income compared to the preceding quarter reflects an overall increase in the yield on interest-earning assets and a decrease in funding costs, partially offset by a decrease in the average balance of interest-earning assets.
−Removed: Net interest margin for the current quarter benefited from decreased funding costs, primarily due to decreases in market interest rates, and increased yields on loans, primarily due to new loans being originated at higher interest rates and adjustable rate loans repricing higher.
−Removed: In 2024, the Federal Open Market Committee (“FOMC”) of the Federal Reserve lowered the target range for the federal funds rate three times, resulting in a target range of 4.25% to 4.50% at March 31, 2025.
−Removed: The increase in net interest income compared to the prior year quarter reflects an increase in both the yield and average balance of interest-earning assets, partially offset by an increase in funding costs.
−Removed: We recorded a $3.1 million provision for credit losses for the quarter ended March 31, 2025, compared to a $3.0 million provision for credit losses in the preceding quarter and a $520,000 provision for credit losses for the three months ended March 31, 2024.
−Removed: The provision for credit losses for the current quarter primarily reflected loan growth in the construction portfolio and to a lesser extent risk rating migration and qualitative adjustments applied to address economic uncertainty.
−Removed: Total non-interest income decreased for the quarter ended March 31, 2025, compared to the preceding quarter and increased compared to the same period a year ago.
−Removed: The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to decreases in mortgage banking operations revenue and miscellaneous income, partially offset by an increase in bank owned life insurance income.
−Removed: The increase in non-interest income during the current quarter compared to the prior year quarter was primarily due to a decrease in the net loss recognized on the sale of securities and an increase in the fair value adjustments on financial instruments carried at fair value during the current quarter.
−Removed: Total non-interest expense increased for the quarter ended March 31, 2025, compared to the preceding quarter and the same period a year ago.
−Removed: The increase in non-interest expense for the current quarter compared to the preceding quarter reflects an increase in salary and employee benefits, primarily resulting from increased medical premiums expense and payroll tax expense, and a decrease in capitalized loan costs, partially offset by a decrease in advertising and marketing expenses.
−Removed: The increase in non-interest expense for the current quarter compared to the same quarter a year ago primarily reflects increases in salary and employee benefits and professional and legal expenses.
+Added: Total shareholders’ equity increased $91.3 million to $1.87 billion, or 11.35% of total assets, at June 30, 2025, compared to $1.77 billion, or 10.95% of total assets, at December 31, 2024.
+Added: The increase was primarily due to a $57.0 million increase in retained earnings resulting from $90.6 million in net income, partially offset by the accrual of $33.6 million in cash dividends during the six months ended June 30, 2025.
+Added: In addition, accumulated other comprehensive loss decreased by $32.9 million, primarily due to a decrease in unrealized losses on the available for sale securities portfolio.
+Added: There were no shares of common stock repurchased during the six months ended June 30, 2025.
+Added: Tangible common shareholders’ equity, which excludes goodwill and other intangible assets and is a non-GAAP financial measure, increased $92.2 million to $1.49 billion, or 9.28% of tangible assets, at June 30, 2025, compared to $1.40 billion, or 8.84% of tangible assets at December 31, 2024.
+Added: A reconciliation of this non-GAAP financial measure to its comparable GAAP financial measure is presented above following “Second Quarter 2025 Financial Highlights.”
+Added: Comparison of Results of Operations for the Three Months Ended June 30, 2025 and March 31, 2025, and the Six Months Ended June 30, 2025 and 2024
+Added: For the quarter ended June 30, 2025, net income was $45.5 million, or $1.31 per diluted share, compared to $45.1 million, or $1.30 per diluted share, for the preceding quarter.
+Added: For the six months ended June 30, 2025, our net income was $90.6 million, or $2.61 per diluted share, compared to $77.4 million, or $2.24 per diluted share for the same period a year earlier.
+Added: The increase in net income for the current quarter compared to the preceding quarter was primarily due to an increase in net interest income, partially offset by a decrease in non-interest income as well as increases in non-interest expense and the provision for credit losses.
+Added: The increase in net income for the six months ended June 30, 2025 compared to the same period a year ago was primarily due to increases in net interest income and non-interest income, partially offset by increases in non-interest expense and the provision for credit losses.
+Added: The increase in net interest income compared to the preceding quarter reflects an increase in both the yield and average balance of interest-earning assets, partially offset by an increase in funding costs.
+Added: The increase in net interest income for the six months ended June 30, 2025 compared to the same period a year ago reflects an increase in both the yield and average balance of interest-earning assets.
+Added: We recorded a $4.8 million provision for credit losses for the quarter ended June 30, 2025, compared to a $3.1 million provision for credit losses in the preceding quarter.
+Added: The provision for credit losses recorded in the current quarter primarily reflected loan growth, as well as risk rating migration which increased the overall estimated reserve requirements.
+Added: We recorded a $7.9 million provision for credit losses for the six months ended June 30, 2025, compared to a $2.9 million provision for credit losses for the same period a year ago.
+Added: Total non-interest income decreased for the quarter ended June 30, 2025, compared to the preceding quarter and increased during the six months ended June 30, 2025, compared to the same period a year ago.
+Added: The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to a decrease in miscellaneous income, primarily due to losses incurred on building and lease exits during the current quarter as the Company executed on an initiative to reduce excess facilities.
+Added: The increase in non-interest income during the six months ended June 30, 2025, compared to the same period last year was primarily due to a decrease in the net loss recognized on the sale of securities and an increase in the fair value adjustments on financial instruments carried at fair value during the current quarter.
+Added: Total non-interest expense increased slightly for the quarter ended June 30, 2025, compared to the preceding quarter and increased during the six months ended June 30, 2025, compared to the same period a year ago.
+Added: Non-interest expense for the current quarter reflects increases in salary and employee benefits, information and computer data services, and advertising and marketing expenses, offset by an increase in capitalized loan origination costs.
+Added: The increase in non-interest expense during the six months ended June 30, 2025, compared to the same period last year primarily reflects increases in salary and employee benefits, information and computer data services, and professional and legal expenses.
OPERATING DATA:
−Removed: Quarters Ended
−Removed: (In thousands) March 31, 2025 December 31, 2024 March 31, 2024
+Added: Quarters Ended Six Months Ended
+Added: (In thousands) June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Interest income $ 200,259 $ 193,868 $ 189,138 $ 394,127 $ 373,826
5 unchanged sentences
Mortgage banking operations 3,226 3,103 3,006 6,329 5,341
−Removed: Net gain (loss) on sale of securities — 275 (4,903)
+Added: Net loss on sale of securities (3) — (562) (3) (5,465)
Net change in valuation of financial instruments carried at fair value
12 unchanged sentences
PER COMMON SHARE DATA:
−Removed: Quarters Ended
−Removed: March 31, 2025 December 31, 2024 March 31, 2024
+Added: Quarters Ended Six Months Ended
+Added: June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Basic $ 1.31 $ 1.31 $ 1.15 $ 2.62 $ 2.25
1 unchanged sentence
Net Interest Income.
−Removed: Net interest income increased for the quarter ended March 31, 2025, compared to the preceding quarter and the same period one year earlier.
−Removed: The increase in net interest income compared to both comparable periods reflects an overall increase in net interest margin for the current period.
−Removed: Net interest margin on a tax equivalent basis increased ten basis points to 3.92% for the first quarter of 2025, compared to 3.82% in the preceding quarter and increased 18 basis points compared to 3.74% for the same period in the prior year.
−Removed: Net interest margin for the current quarter, compared to the preceding quarter, benefited from decreased funding costs, primarily due to a decrease in market rates, partially offset by a shift in the average balance of non-interest-bearing deposits to higher costing interest-bearing checking accounts, savings accounts and certificates of deposit, and higher yields on interest earning assets, primarily due to an increase in the average loan yield.
−Removed: Net interest margin for the current quarter, compared to the prior year quarter, benefited from an increase in both the yield and the average balance of interest-earning assets, partially offset by higher funding costs.
+Added: Net interest income increased for the quarter ended June 30, 2025, compared to the preceding quarter.
+Added: The $3.3 million increase was due to a $6.4 million increase in interest income, primarily attributable to a five basis point increase in average loan yields to 6.12% and an increase in average loan balances, partially offset by a $3.1 million increase in interest expense, reflecting a $221.4 million increase in the average balance of FHLB advances, with higher rates than core deposits.
+Added: Net interest margin on a tax equivalent basis was 3.92% for both the second quarter of 2025 and the preceding quarter.
+Added: Net interest margin for the current quarter, compared to the preceding quarter, benefited from higher yields on interest earning assets, primarily due to an increase in the average loan yield.
+Added: Despite higher funding costs, the Company maintained a stable net interest margin of 3.92%, reflecting the benefit of improved asset yields and favorable loan mix.
+Added: Net interest income increased by $20.0 million, or 8%, to $285.5 million for the six months ended June 30, 2025, compared to $265.5 million for the same period one year earlier, primarily due to an increase in the average yields on interest-earning assets and an increase in the balance of average earning assets.
+Added: The increase was primarily the result of a $20.3 million increase in interest income, reflecting both adjustable-rate loans repricing higher and new loans being originated at rates higher than the overall loan portfolio and a $583.7 million increase in the average balance of loans.
+Added: The net interest margin on a tax equivalent basis increased to 3.92% for the six months ended June 30, 2025, compared to 3.72% for the same period in the prior year.
Interest Income.
−Removed: Interest income for the quarter ended March 31, 2025 was $193.9 million, compared to $196.4 million for the preceding quarter and $184.7 million for the same period in the prior year.
−Removed: The decrease in interest income during the current quarter compared to the preceding quarter primarily reflects two fewer interest earning days in the current quarter and a decrease in the average balance of interest-earning assets due to a decrease in the average balance of investment securities.
−Removed: The increase in interest income during the current quarter compared to the prior period a year ago reflects an increase in interest income on loans due to an increase in the overall average loan yield, mostly due to the high interest rate environment.
−Removed: In addition, the increase reflects growth in the average balance of loans, partially offset by a decreases in both the yield and average balance of investment securities.
−Removed: The decreased interest income on loans for the current quarter compared to the preceding quarter was primarily driven by two fewer days in the quarter.
−Removed: The increase in interest income on loans for the current quarter compared to the same period in the prior year was due to an increase in both the average balance and yield on loans.
−Removed: Loan yields increased five basis points to 6.07% for the quarter ended March 31, 2025, from 6.02% in the preceding quarter and increased 20 basis points compared to 5.87% in the first quarter a year ago, due to new loans being originated at higher interest rates and adjustable rate loans repricing higher.
−Removed: The average balance of loans receivable for the quarter ended March 31, 2025 increased compared to both comparable periods, primarily reflecting increases in the average balances of mortgage loans, specifically commercial real estate and construction loans.
−Removed: Interest and dividend income on total investment securities for the current quarter decreased from both the preceding and prior year quarters due to a lower average yield earned on total investment securities during the current quarter and a decrease in the average balance of total investment securities.
−Removed: The average balance of total investment securities decreased to $3.52 billion for the quarter ended March 31, 2025 (excluding the effect of fair value adjustments), compared to $3.61 billion for the preceding quarter and $3.78 billion for same period in the prior year.
−Removed: The average yield on the combined portfolio decreased to 3.02% for the quarter ended March 31, 2025, from 3.07% for the preceding quarter and 3.11% for the same period in the prior year.
+Added: Interest income for the quarter ended June 30, 2025 was $200.3 million, compared to $193.9 million for the preceding quarter.
+Added: The increase was primarily due to higher average loan yields and balances.
+Added: Average loan yields increased five basis points to 6.12%, while the average loan balance increased $223.2 million.
+Added: These increases were partially offset by a decline in interest income from investment securities, due to both lower average balances and yields.
+Added: Loan yields increased five basis points to 6.12% for the quarter ended June 30, 2025, from 6.07% in the preceding quarter, due to new loans being originated at higher interest rates and adjustable rate loans repricing higher.
+Added: The average balance of loans receivable for the quarter ended June 30, 2025 increased compared to the preceding quarter, primarily reflecting increases in the average balances of mortgage loans, specifically commercial real estate and construction loans.
+Added: The average balance of total investment securities decreased to $3.49 billion for the quarter ended June 30, 2025 (excluding the effect of fair value adjustments), compared to $3.52 billion for the preceding quarter.
+Added: The average yield on the combined portfolio decreased to 2.98% for the quarter ended June 30, 2025, from 3.02% for the preceding quarter.
+Added: Interest income for the six months ended June 30, 2025 was $394.1 million, compared to $373.8 million for the same period in the prior year, an increase of $20.3 million.
+Added: This increase reflects both an 18 basis point increase in the average yield on interest-earning assets, to 5.38%, primarily due to adjustable-rate loans repricing higher and new loans being originated at rates higher than the overall loan portfolio, and a $346.2 million increase in the average balance of those assets.
+Added: Loan growth was the primary contributor, with average balances up $583.7 million, from the prior year.
Interest Expense.
−Removed: Interest expense for the quarter ended March 31, 2025 decreased $3.1 million, or 6%, to $52.8 million compared to $55.9 million for the preceding quarter, and increased compared to $51.7 million for the same period in the prior year.
−Removed: The decrease compared to the preceding quarter occurred as a result of a five basis-point decrease in the average cost of all funding liabilities to 1.55% for the quarter ended March 31, 2025.
−Removed: The increase compared to the prior year occurred as a result of an increase in both the average cost and balance of total funding liabilities.
−Removed: Deposit interest expense for the quarter ended March 31, 2025 decreased $3.5 million, or 7%, to $48.7 million compared to $52.2 million for the preceding quarter, and increased compared to $44.6 million for the same period in the prior year.
−Removed: The decrease in deposit costs in the current quarter compared to the prior quarter was primarily due to the lagging effect of interest rate decreases in the prior quarter.
−Removed: The average cost of interest-bearing deposits decreased to 2.22% for the quarter ended March 31, 2025, compared to 2.33% in the preceding quarter and increased compared to 2.15% for the same period a year earlier.
−Removed: The decrease in the cost of interest-bearing deposits compared to the preceding quarter reflects the interest rate decreases implemented on our interest-bearing deposits in the prior quarter.
−Removed: The increase in the cost of interest-bearing deposits compared to the same period a year earlier was primarily the result of an overall increase in the average rate paid on interest-bearing deposits.
−Removed: The average rate paid on total deposits, which includes non-interest-bearing deposits, was 1.47% for the quarter ended March 31, 2025, compared to 1.53% in the preceding quarter and 1.37% for the same period in the prior year.
−Removed: Average deposit balances decreased to $13.45 billion for the quarter ended March 31, 2025, from $13.56 billion for the preceding quarter and increased from $13.06 billion for the same period a year earlier.
−Removed: Interest expense on total borrowings for the quarter ended March 31, 2025 increased 10%, to $4.0 million compared to $3.7 million for the prior quarter, primarily due to an increase in the average balance of total borrowings, and decreased from $7.1 million for the same period a year earlier, primarily due to decreases in both the rate paid and the average balance of total borrowings.
−Removed: The average balance of total borrowings increased to $379.7 million for the quarter ended March 31, 2025, compared to $320.3 million for the preceding quarter, primarily due to a $67.8 million increase in the average balance of FHLB advances, and decreased compared to $575.3 million for the same period a year earlier, primarily due to a $137.7 million decrease in the average balance of FHLB advances and $45.9 million decrease in the average balance of other borrowings.
−Removed: The average rate paid on total borrowings for the quarter ended March 31, 2025 decreased to 4.32% from 4.57% for the preceding quarter and 4.98% for the same period a year earlier.
+Added: Interest expense for the quarter ended June 30, 2025 increased $3.1 million, or 6%, to $55.9 million compared to $52.8 million for the preceding quarter.
+Added: The increase was largely driven by a $184.1 million increase in average funding liabilities, primarily due to a $221.4 million increase in FHLB advances.
+Added: The average cost of funding liabilities also rose five basis points, to 1.60% for the quarter ended June 30, 2025.
+Added: Interest expense for the six months ended June 30, 2025 was $108.6 million, compared to $108.3 million for the same period in the prior year.
+Added: The increase in interest expense occurred as a result of a $243.5 million, or 2%, increase in average funding liabilities, which was mostly offset by a two basis-point decrease in the average cost of funds to 1.57% for the six months ended June 30, 2025, compared to 1.59% for the same period in the prior year.
+Added: The increase in the average balance of funding liabilities reflects increases in interest-bearing transaction and savings accounts, partially offset by decreases in non-interest-bearing deposits, money market accounts, FHLB advances and other borrowings.
+Added: Deposit interest expense for the quarter ended June 30, 2025 increased 1% to $49.3 million compared to $48.7 million for the preceding quarter.
+Added: The increase in deposit costs in the current quarter compared to the prior quarter was due to an increase in the average balance of interest-bearing deposits.
+Added: The average rate paid on total deposits, which includes non-interest-bearing deposits, was 1.47% for both the quarter ended June 30, 2025 and the preceding quarter.
+Added: The average rate paid on interest-bearing deposits decreased to 2.21% for the quarter ended June 30, 2025, compared to 2.22% in the preceding quarter.
+Added: The decrease in the rate paid on interest-bearing deposits compared to the preceding quarter reflects a decrease in the interest rate on certificates of deposit and shifts in the deposit mix.
+Added: Total average deposit balances, including non-interest-bearing deposits, decreased to $13.42 billion for the quarter ended June 30, 2025, from $13.45 billion for the preceding quarter.
+Added: Deposit interest expense for the six months ended June 30, 2025 increased $4.6 million to $98.1 million, compared to $93.5 million for the same period in the prior year.
+Added: Average deposit balances increased to $13.43 billion for the six months ended June 30, 2025, from $13.08 billion for the same period a year earlier and the average rate paid on deposits increased to 1.47% for the six months ended June 30, 2025 from 1.44% for the same period in the prior year.
+Added: The average rate paid on interest-bearing deposits decreased by three basis points to 2.21% for the six months ended June 30, 2025, compared to 2.24% in the same period a year earlier.
+Added: The decrease in the average rate paid on interest-bearing deposits was primarily the result of a 23 basis-point decrease in the cost of certificates of deposit.
+Added: Interest expense on total borrowings for the quarter ended June 30, 2025 increased 62%, to $6.5 million compared to $4.0 million for the prior quarter, primarily due to an increase in the average balance of total borrowings.
+Added: The average balance of total borrowings increased to $587.7 million for the quarter ended June 30, 2025, compared to $379.7 million for the preceding quarter, primarily due to a $221.4 million increase in the average balance of FHLB advances.
+Added: The average rate paid on total borrowings for the quarter ended June 30, 2025 increased to 4.47% from 4.32% for the preceding quarter, primarily due to the increase in the average balance of FHLB advances.
+Added: Interest expense on total borrowings for the six months ended June 30, 2025 decreased to $10.6 million from $14.9 million for the same period a year earlier due to a decrease in both the average balance of and rate paid on total borrowings.
+Added: Average total borrowings were $484.3 million for the six months ended June 30, 2025, compared to $594.8 million for the same period a year earlier.
+Added: The decrease was primarily due to a $49.7 million decrease in the average balance of FHLB advances and a $49.6 million decrease in the average balance of other borrowings.
+Added: The average rate paid on total borrowings for the six months ended June 30, 2025 decreased to 4.41% from 5.02% for the same period a year earlier.
Analysis of Net Interest Spread .
2 unchanged sentences
ANALYSIS OF NET INTEREST SPREAD Quarters Ended
−Removed: (rates / ratios annualized) Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: (rates / ratios annualized) Jun 30, 2025 Mar 31, 2025
(dollars in thousands) Average Balance Interest and Dividends Yield / Cost (3)
Average Balance Interest and Dividends Yield / Cost (3)
−Removed: Average Balance Interest and Dividends Yield / Cost (3)
Interest-earning assets:
55 unchanged sentences
(3) Tax-exempt income is calculated on a tax equivalent basis.
−Removed: The tax equivalent yield adjustment to interest earned on loans was $2.2 million for both the quarters ended March 31, 2025 and December 31, 2024, and $2.0 million for the quarter ended March 31, 2024.
−Removed: The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.0 million for the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024.
+Added: The tax equivalent yield adjustment to interest earned on loans was $2.3 million and $2.2 million for the quarters ended June 30, 2025 and March 31, 2025, respectively.
+Added: The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.1 million and $1.0 million for the quarters ended June 30, 2025 and March 31, 2025, respectively.
(4) Represents non-GAAP financial measures.
−Removed: See non-GAAP financial measure reconciliations presented above following First Quarter 2025 Highlights.
+Added: See non-GAAP financial measure reconciliations presented above following Second Quarter 2025 Highlights.
+Added: Six Months Ended June 30, 2025 Six Months Ended June 30, 2024
+Added: Average Balance Interest and Dividends Yield / Cost (3)
+Added: Average Balance Interest and Dividends Yield / Cost (3)
+Added: Interest-earning assets:
+Added: Held for sale loans $ 26,217 $ 860 6.61 % $ 10,802 $ 373 6.94 %
+Added: Mortgage loans 9,466,335 281,633 6.00 % 8,949,709 254,514 5.72 %
+Added: Commercial/agricultural loans 1,915,699 61,948 6.52 % 1,852,067 62,608 6.80 %
+Added: Consumer and other loans 121,316 4,179 6.95 % 133,258 4,352 6.57 %
+Added: Total loans (1)
+Added: 11,529,567 348,620 6.10 % 10,945,836 321,847 5.91 %
+Added: Mortgage-backed securities 2,519,851 31,471 2.52 % 2,700,413 33,926 2.53 %
+Added: Other securities 897,870 19,248 4.32 % 971,724 22,682 4.69 %
+Added: Interest-bearing deposits with banks 70,675 1,061 3.03 % 51,643 1,037 4.04 %
+Added: FHLB stock 17,969 371 4.16 % 20,077 574 5.75 %
+Added: Total investment securities 3,506,365 52,151 3.00 % 3,743,857 58,219 3.13 %
+Added: Total interest-earning assets 15,035,932 400,771 5.38 % 14,689,693 380,066 5.20 %
+Added: Non-interest-earning assets 1,000,216 935,068
+Added: Total assets $ 16,036,148 $ 15,624,761
+Added: Interest-bearing checking accounts $ 2,423,292 17,999 1.50 % $ 2,130,228 14,337 1.35 %
+Added: Savings accounts 3,472,556 36,940 2.15 % 3,106,985 32,479 2.10 %
+Added: Money market accounts 1,523,571 15,589 2.06 % 1,666,743 17,512 2.11 %
+Added: Certificates of deposit 1,510,404 27,525 3.67 % 1,502,013 29,135 3.90 %
+Added: Total interest-bearing deposits 8,929,823 98,053 2.21 % 8,405,969 93,463 2.24 %
+Added: Non-interest-bearing deposits 4,503,461 — — % 4,673,330 — — %
+Added: Total deposits 13,433,284 98,053 1.47 % 13,079,299 93,463 1.44 %
+Added: Other interest-bearing liabilities:
+Added: FHLB advances 186,597 4,230 4.57 % 236,269 6,593 5.61 %
+Added: Other borrowings 128,459 1,369 2.15 % 178,105 2,335 2.64 %
+Added: Junior subordinated debentures and subordinated notes 169,233 4,993 5.95 % 180,379 5,930 6.61 %
+Added: Total borrowings 484,289 10,592 4.41 % 594,753 14,858 5.02 %
+Added: Total funding liabilities 13,917,573 108,645 1.57 % 13,674,052 108,321 1.59 %
+Added: Other non-interest-bearing liabilities (2)
+Added: 299,082 299,103
+Added: Total liabilities 14,216,655 13,973,155
+Added: Shareholders’ equity 1,819,493 1,651,606
+Added: Total liabilities and shareholders’ equity $ 16,036,148 $ 15,624,761
+Added: Net interest income/rate spread (tax equivalent) $ 292,126 3.81 % $ 271,745 3.61 %
+Added: Net interest margin (tax equivalent) 3.92 % 3.72 %
+Added: Reconciliation to reported net interest income:
+Added: Adjustments for taxable equivalent basis (6,644) (6,240)
+Added: Net interest income and margin $ 285,482 3.83 % $ 265,505 3.63 %
+Added: Additional Key Financial Ratios:
+Added: Return on average assets 1.14 % 1.00 %
+Added: Adjusted return on average assets (4)
+Added: 1.15 % 1.06 %
+Added: Return on average equity 10.04 % 9.42 %
+Added: Adjusted return on average equity (4)
+Added: 10.16 % 10.03 %
+Added: Average equity/average assets 11.35 % 10.57 %
+Added: Average interest-earning assets/average interest-bearing liabilities 159.72 % 163.21 %
+Added: Average interest-earning assets/average funding liabilities 108.04 % 107.43 %
+Added: Non-interest income/average assets 0.46 % 0.37 %
+Added: Non-interest expense/average assets 2.55 % 2.52 %
+Added: Efficiency ratio 62.85 % 66.52 %
+Added: Adjusted efficiency ratio (4)
+Added: 61.22 % 63.65 %
+Added: (1) Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due.
+Added: Amortization of net deferred loan fees/costs is included with interest on loans.
+Added: (2) Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures.
+Added: (3) Tax-exempt income is calculated on a tax equivalent basis.
+Added: The tax equivalent yield adjustment to interest earned on loans was $4.6 million and $4.2 million for the six months ended June 30, 2025 and 2024, respectively.
+Added: The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.1 million for both the six months ended June 30, 2025 and 2024.
+Added: (4) Represents non-GAAP financial measures.
+Added: See non-GAAP financial measure reconciliations presented above following Second Quarter 2025 Highlights.
Provision and Allowance for Credit Losses .
4 unchanged sentences
Quarters Ended
−Removed: CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - LOANS Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Six Months Ended
+Added: CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - LOANS Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024
Balance, beginning of period $ 157,323 $ 155,521 $ 151,140 $ 155,521 $ 149,643
9 unchanged sentences
Commercial real estate — — (347) — (347)
−Removed: Construction and land — (5) —
One- to four-family residential — (13) — (13) —
Commercial business (892) (3,301) (137) (4,193) (1,946)
+Added: Agricultural business, including secured by farmland (362) — — (362) —
Consumer (410) (364) (507) (774) (1,076)
(1,664) (3,678) (991) (5,342) (3,369)
−Removed: Net (charge-offs) recoveries (2,747) (2,283) 73
+Added: Net charge-offs (1,023) (2,747) (245) (3,770) (172)
Balance, end of period $ 160,501 $ 157,323 $ 152,848 $ 160,501 $ 152,848
−Removed: Net (charge-offs) recoveries / Average loans receivable (0.024) % (0.020) % 0.001 %
+Added: Net charge-offs / Average loans receivable (0.009) % (0.024) % (0.002) % (0.033) % (0.002) %
Allowance for credit losses - loans as a percentage of total loans 1.37 % 1.38 % 1.37 % 1.37 % 1.37 %
The provision for credit losses - loans reflects the amount required to maintain the allowance for credit losses - loans at an appropriate level based upon management’s evaluation of the adequacy of collective and individual loss reserves.
−Removed: During the quarter ended March 31, 2025, we recorded a provision for credit losses - loans of $4.5 million, compared to a provision for credit losses - loans of $3.2 million during the preceding quarter.
−Removed: The provision for credit losses for the current quarter primarily reflected loan growth in the construction portfolio and to a lesser extent risk rating migration and qualitative adjustments applied to address economic uncertainty.
−Removed: The provision for credit losses for the preceding quarter primarily reflected risk rating downgrades as well as growth in loan balances.
+Added: During the quarter ended June 30, 2025, we recorded a provision for credit losses - loans of $4.2 million, compared to a provision for credit losses - loans of $4.5 million during the preceding quarter.
+Added: The provision for credit losses recorded in the current quarter primarily reflected loan growth, as well as risk rating migration.
+Added: The provision for credit losses for the preceding quarter primarily reflected loan growth in the construction portfolio and to a lesser extent risk rating migration and qualitative adjustments applied to address economic uncertainty.
Future provisions for credit losses will continue to be influenced by changes in the amount and composition of the loan portfolio, updates to the reasonable and supportable forecast of future economic conditions, revisions to qualitative factor assessments, and any necessary changes to the reversion period applied in estimating expected credit losses.
2 unchanged sentences
Quarters Ended
−Removed: CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS Mar 31, 2025 Dec 31, 2024 Mar 31, 2024
+Added: Six Months Ended
+Added: CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024
Balance, beginning of period $ 12,162 $ 13,562 $ 13,597 $ 13,562 $ 14,484
−Removed: Recapture of provision for credit losses - unfunded loan commitments (1,400) (203) (887)
+Added: Provision (recapture) for credit losses - unfunded loan commitments 588 (1,400) 430 (812) (457)
Balance, end of period $ 12,750 $ 12,162 $ 14,027 $ 12,750 $ 14,027
−Removed: The decrease in the allowance for credit losses - unfunded loan commitments for the current quarter primarily reflects a decrease in unfunded loan commitments in the construction portfolio.
+Added: The increase in the allowance for credit losses - unfunded loan commitments for the current quarter reflects an increase in unfunded loan commitments and risk rating migration primarily in the construction portfolio.
Non-interest Income.
The following table presents the key components of non-interest income for the periods indicated (dollars in thousands):
−Removed: Quarters Ended
−Removed: Mar 31, 2025 Dec 31, 2024 Change Amount Change Percent Mar 31, 2024 Change Amount Change Percent
+Added: Quarters Ended Six Months Ended
+Added: Jun 30, 2025 Mar 31, 2025 Change Amount Change Percent Jun 30, 2025 Jun 30, 2024 Change Amount Change Percent
Deposit fees and other service charges $ 10,835 $ 10,769 $ 66 1 % $ 21,604 $ 21,612 $ (8) — %
3 unchanged sentences
17,666 18,793 (1,127) (6) 36,459 35,437 1,022 3
−Removed: Net gain (loss) on sale of securities — 275 (275) (100) (4,903) 4,903 (100)
+Added: Net loss on sale of securities (3) — (3) nm (3) (5,465) 5,462 (100)
Net change in valuation of financial instruments carried at fair value 88 315 (227) (72) 403 (1,182) 1,585 (134)
Total non-interest income $ 17,751 $ 19,108 $ (1,357) (7) % $ 36,859 $ 28,790 $ 8,069 28 %
−Removed: The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to decreases in mortgage banking operations revenue and miscellaneous income, partially offset by an increase in bank owned life insurance income.
−Removed: The increase in non-interest income during the current quarter compared to the prior year quarter was primarily due to a decrease in the net loss recognized on the sale of securities and an increase in the fair value adjustments on financial instruments carried at fair value during the current quarter
−Removed: Revenue from mortgage banking operations decreased $583,000 for the quarter ended March 31, 2025, compared to the preceding quarter and increased $768,000 compared to the same period a year earlier.
−Removed: The volume of one- to four-family loans sold during the current quarter decreased compared to the preceding quarter and increased compared to the prior year quarter.
−Removed: While the volume of one- to four-family loans sold increased compared to the prior year quarter, overall volumes remained low due to reduced refinancing and purchase activity in the current interest rate environment.
−Removed: The decrease in mortgage banking operations revenue from the preceding quarter reflects a $508,000 gain related to the pooled loan sale of $34.8 million of one- to four-family loans during the fourth quarter of 2024 and a decrease in the market value of our hedge, partially offset by an increase in the pricing of one- to four-family loans sold during the current quarter.
−Removed: Gains on sales of one- to four-family loans totaled $2.1 million for the quarter ended March 31, 2025, compared to $2.6 million in the preceding quarter and $1.3 million for the three months ended March 31, 2024.
−Removed: Home purchase activity accounted for 84% of one- to four-family residential mortgage loan originations in the first quarter of 2025, compared to 79% in the preceding quarter.
−Removed: Bank owned life insurance income increased for the three months ended March 31, 2025, compared to the preceding and prior year quarters due to the receipt of death benefit proceeds during the current quarter.
−Removed: Miscellaneous income decreased for the three months ended March 31, 2025, compared to the prior quarter, primarily due to a gain recognized on the sale of a non-performing loan during the fourth quarter of 2024, and increased compared to same period a year earlier, primarily as a result of an increase in the gain on sale of SBA loans.
−Removed: The net loss on the sale of securities recognized for the three months ended March 31, 2024 reflected strategic sales of securities to minimize the impact of increasing rates on our securities portfolio.
−Removed: The net loss for fair value adjustments for changes in the valuation of financial instruments carried at fair value for the three months ended March 31, 2024 were due to declines in the current market valuation of limited partnership investments.
+Added: nm = not meaningful
+Added: The decrease in non-interest income during the current quarter compared to the preceding quarter was primarily due to a $1.1 million, or 48%, decrease in miscellaneous income, which included $919,000 of losses incurred on building and lease exits during the second quarter.
+Added: The increase in non-interest income for the six months ended June 30, 2025, compared to the same period a year earlier was primarily due to a $5.5 million reduction in net losses on the sale of securities, as no material losses were recognized in the current period, compared to $5.5 million in strategic losses recorded during the first half of 2024 to mitigate rising interest rate risk in the securities portfolio.
+Added: In addition, the $1.6 million improvement in the fair value of financial instruments during the first six months of 2025, compared to a $1.2 million negative valuation change in the same period of 2024, contributed significantly to the increase.
+Added: These instruments primarily include limited partnership investments, which were positively impacted by current market valuations.
+Added: Revenue from mortgage banking operations increased $1.0 million for the six months ended June 30, 2025, compared to the same period a year earlier.
+Added: The volume of one- to four-family loans sold increased for the six months ended June 30, 2025, compared to the same period a year earlier.
+Added: Gains on sales of one- to four-family loans resulted in income of $4.3 million for the six months ended June 30, 2025, respectively, compared to $3.3 million for the six months ended June 30, 2024.
+Added: The increase for the six months ended June 30, 2025, compared to the same period a year earlier, was primarily due to a higher volume of one- to four-family loans sold.
+Added: Deposit fees and other service charges remained relatively unchanged, totaling $21.6 million for both six-month periods.
Non-interest Expense.
The following table represents key elements of non-interest expense for the periods indicated (dollars in thousands):
−Removed: Quarters Ended
−Removed: Mar 31, 2025 Dec 31, 2024 Change Amount Change Percent.
−Removed: Mar 31, 2024 Change Amount Change Percent
+Added: Quarters Ended Six Months Ended
+Added: Jun 30, 2025 Mar 31, 2025 Change Amount Change Percent.
+Added: Jun 30, 2025 Jun 30, 2024 Change Amount Change Percent
Salary and employee benefits $ 65,486 $ 64,857 $ 629 1 % $ 130,343 $ 126,200 $ 4,143 3 %
7 unchanged sentences
State and municipal business and use taxes 1,416 1,454 (38) (3) 2,870 2,698 172 6
−Removed: Real estate operations, net (61) 113 (174) (154) (220) 159 (72)
+Added: Real estate operations, net 392 (61) 453 nm 331 77 254 330
Amortization of core deposit intangibles 455 456 (1) — 911 1,447 (536) (37)
1 unchanged sentence
Total non-interest expense $ 101,348 $ 101,259 $ 89 — % $ 202,607 $ 195,769 $ 6,838 3 %
−Removed: The increase in non-interest expense for the current quarter compared to the prior quarter reflects an increase in salary and employee benefits and a decrease in capitalized loan costs, partially offset by a decrease in advertising and marketing expenses.
−Removed: The increase in non-interest expense for the three months ended March 31, 2025, compared to the same period a year earlier primarily reflects increases in salary and employee benefits and professional and legal expenses.
−Removed: Salary and employee benefits increased compared to the prior quarter, primarily as a result of increased medical premiums expense, as well as payroll tax expense that typically increases in the first quarter due to the reset of payroll tax wage bases.
−Removed: The increase compared to the same period a year earlier was primarily the result of normal salary and wage increases.
−Removed: Advertising and marketing expense decreased for the quarter ended March 31, 2025, primarily due to decreases in printed media marketing and community development expenses.
−Removed: Professional and legal expense decreased for the three months ended March 31, 2025, compared to the preceding quarter primarily due to a decrease in consultant and audit expenses due to the timing of these engagements.
−Removed: The increase compared to the same period a year ago was primarily due to an increase in legal expenses as the prior period reflected a one-time true-up.
+Added: nm = not meaningful
+Added: Non-interest expense was flat for the current quarter compared to the previous quarter.
+Added: Non-interest expense for the current quarter reflects increases in salary and employee benefits, information and computer data services, and advertising and marketing expenses, offset by an increase in capitalized loan origination costs.
+Added: In addition, the current quarter included $834,000 of building and lease exit costs.
+Added: The increase in non-interest expense for the six months ended June 30, 2025, compared to the same period a year earlier primarily reflects increases in salary and employee benefits, information and computer data services, and professional and legal expenses, partially offset by decreases in advertising and marketing expenses and amortization of core deposit intangibles.
+Added: Salary and employee benefits for the current quarter and the six months ended June 30, 2025 increased compared to the quarter ended March 31, 2025 and the six months ended June 30, 2024, primarily resulting from increased loan production-related commission expense and normal salary and wage increases.
+Added: In addition, capitalized loan origination costs increased $1.6 million, or 48%, compared to the prior quarter, and were relatively flat for the six months ended June 30, 2025 compared to the same period in 2024.
+Added: Information and computer data services for the current quarter and the six months ended June 30, 2025 increased from the comparable periods primarily due to increases in computer software expenses as the Company continued to invest in technology enhancements.
+Added: Professional and legal expense increased for the six months ended June 30, 2025, compared to the same period a year earlier, primarily due to one-time litigation settlement costs that occurred during the six months ended June 30, 2024.
+Added: Advertising and marketing expenses increased in the current quarter compared to the prior quarter due to the timing of campaign spending.
+Added: However, these expenses decreased $600,000, or 26%, for the six-month period due to lower spending compared to the prior year.
Our efficiency ratio was 62.50% for the current quarter, compared to 63.21% in the preceding quarter.
Our adjusted efficiency ratio, a non-GAAP financial measure, was 60.28% for the current quarter, compared to 62.18% in the preceding quarter.
−Removed: The efficiency ratio for the current quarter reflects a decrease in total revenues in addition to the increase in non-interest expenses.
−Removed: See non-GAAP financial measure reconciliations presented above under “First Quarter 2025 Financial Highlights.”
+Added: The improvement in the efficiency ratio and adjusted efficiency ratio for the current quarter reflects an increase in total revenues and adjusted revenues, respectively.
+Added: See non-GAAP financial measure reconciliations presented above under “Second Quarter 2025 Financial Highlights.”
Income Taxes.
−Removed: For the quarter ended March 31, 2025, we recognized $10.7 million in income tax expense for an effective tax rate of 19.1%, which reflects our blended statutory tax rate reduced by the effect of tax-exempt income, certain tax credits, and tax benefits related to restricted stock vesting.
+Added: For the quarter ended June 30, 2025, we recognized $10.5 million in income tax expense for an effective tax rate of 18.8%, which reflects our blended statutory tax rate reduced by the effect of tax-exempt income, certain tax credits, and tax benefits related to restricted stock vesting.
Our statutory income tax rate is 24.0%, representing a statutory federal income tax rate of 21.0% and apportioned effects of the state income tax rates.
−Removed: For the quarter ended December 31, 2024, we recognized $11.7 million in income tax expense for an effective tax rate of 20.1%.
−Removed: For the three months ended March 31, 2024, we recognized $8.8 million in income tax expense for an effective tax rate of 19.0%.
+Added: For the quarter ended March 31, 2025, we recognized $10.7 million in income tax expense for an effective tax rate of 19.1%.
+Added: For the six months ended June 30, 2025, we recognized $21.2 million in income tax expense for an effective tax rate of 18.9%, compared to $18.3 million in income tax expense for an effective tax rate of 19.1% for the same period in the prior year.
Asset Quality
2 unchanged sentences
Non-Performing Assets:
−Removed: Non-performing assets totaled $42.7 million, or 0.26% of total assets, at March 31, 2025, compared to $39.6 million, or 0.24% of total assets, at December 31, 2024.
−Removed: Our allowance for credit losses - loans was $157.3 million, or 404% of non-performing loans, at March 31, 2025, compared to $155.5 million, or 421% of non-performing loans, at December 31, 2024.
+Added: Non-performing assets totaled $49.8 million, or 0.30% of total assets, at June 30, 2025, compared to $39.6 million, or 0.24% of total assets, at December 31, 2024.
+Added: Our allowance for credit losses - loans was $160.5 million, or 373% of non-performing loans, at June 30, 2025, compared to $155.5 million, or 421% of non-performing loans, at December 31, 2024.
+Added: The increase in non-performing assets was primarily due to a $5.5 million increase in nonaccrual one- to four-family residential loans.
+Added: In addition, loans more than 90 days past due and still on accrual increased to $2.5 million at June 30, 2025, primarily due to an increase in one- to four-family residential loans in this category.
The following table sets forth information with respect to our non-performing assets at the dates indicated (dollars in thousands):
−Removed: March 31, 2025 December 31, 2024 March 31, 2024
+Added: June 30, 2025 December 31, 2024 June 30, 2024
Nonaccrual Loans:
9 unchanged sentences
Secured by real estate:
−Removed: Construction and land — — 286
One- to four-family 2,896 369 1,861
−Removed: Commercial business 206 — —
Consumer 80 35 692
+Added: 2,976 404 2,553
Total non-performing loans 42,974 36,956 30,722
5 unchanged sentences
Loans 30-89 days past due and on accrual $ 10,786 $ 26,824 $ 11,850
−Removed: For the three months ended March 31, 2025, interest income was reduced by $870,000 as a result of nonaccrual loan activity, which included the reversal of $263,000 of accrued interest as of the date the loan was placed on nonaccrual.
−Removed: There was no interest income recognized on nonaccrual loans for the three months ended March 31, 2025.
+Added: For the six months ended June 30, 2025, interest income was reduced by $870,000 as a result of nonaccrual loan activity, which included the reversal of $263,000 of accrued interest as of the date the loan was placed on nonaccrual.
+Added: There was no interest income recognized on nonaccrual loans for the six months ended June 30, 2025.
The following table presents the Company’s portfolio of loans by risk grade at the dates indicated (in thousands):
−Removed: March 31, 2025 December 31, 2024 March 31, 2024
+Added: June 30, 2025 December 31, 2024 June 30, 2024
Pass $ 11,432,456 $ 11,118,744 $ 10,971,850
2 unchanged sentences
Total $ 11,690,373 $ 11,354,656 $ 11,143,848
−Removed: As of March 31, 2025, total substandard loans primarily consisted of loans within the commercial business, commercial real estate and agricultural loan segments.
+Added: As of June 30, 2025, total substandard loans primarily consisted of loans within the commercial business, commercial real estate and agricultural loan segments.
Liquidity and Capital Resources
2 unchanged sentences
Our primary investing activity is the origination of loans and, in certain periods, the purchase of securities or loans.
−Removed: During the three months ended March 31, 2025 and 2024, our loan originations, including originations of loans held for sale, exceeded our loan repayments by $186.2 million and $120.4 million, respectively.
−Removed: There were $10.8 million of loan purchases during the three months ended March 31, 2025, and $4.7 million loan purchases during the three months ended March 31, 2024.
−Removed: During the three months ended March 31, 2025 and 2024, we received proceeds of $120.7 million and $71.5 million, respectively, from the sale of loans.
−Removed: Securities purchased during the three months ended March 31, 2025 and 2024 totaled $9.8 million and $10.5 million, respectively, and securities repayments, maturities and sales in those periods were $52.9 million and $134.2 million, respectively.
+Added: During the six months ended June 30, 2025 and 2024, our loan originations, including originations of loans held for sale, exceeded our loan repayments by $565.7 million and $501.2 million, respectively.
+Added: There were $10.8 million of loan purchases during the six months ended June 30, 2025, and $4.7 million of loan purchases during the six months ended June 30, 2024.
+Added: During the six months ended June 30, 2025 and 2024, we received proceeds of $235.9 million and $175.0 million, respectively, from the sale of loans.
+Added: Securities purchased during the six months ended June 30, 2025 and 2024 totaled $18.9 million and $19.3 million, respectively, and securities repayments, maturities and sales in those periods were $126.0 million and $202.7 million, respectively.
Our primary financing activity is gathering deposits.
−Removed: Total deposits increased by $78.9 million during the three months ended March 31, 2025, primarily due to an increase in core deposits.
−Removed: Core deposits were $12.09 billion at March 31, 2025, compared to $12.01 billion at December 31, 2024.
+Added: Total deposits increased by $12.9 million during the six months ended June 30, 2025, primarily due to an increase in core deposits.
+Added: Core deposits were $12.05 billion at June 30, 2025, compared to $12.01 billion at December 31, 2024.
Certificates of deposit are generally more vulnerable to competition and more price sensitive than other retail deposits and our pricing of those deposits varies significantly based upon our liquidity management strategies at any point in time.
−Removed: At March 31, 2025, certificates of deposit totaled $1.50 billion, or 11% of our total deposits, including $1.45 billion which were scheduled to mature within one year.
+Added: At June 30, 2025, certificates of deposit totaled $1.48 billion, or 11% of our total deposits, including $1.42 billion which were scheduled to mature within one year.
While no assurance can be given as to future periods, historically, we have been able to retain a significant amount of our certificates of deposit as they mature.
−Removed: We had $168.0 million of FHLB advances at March 31, 2025, compared to $290.0 million at December 31, 2024.
−Removed: Other borrowings increased to $130.6 million at March 31, 2025 from $125.3 million at December 31, 2024.
−Removed: Subordinated notes, net of issuance costs decreased to $80.4 million at March 31, 2025, compared to $80.3 million at December 31, 2024.
+Added: We had $565.0 million of FHLB advances at June 30, 2025, compared to $290.0 million at December 31, 2024.
+Added: The increase in FHLB advances were primarily used to fund loan growth.
+Added: Other borrowings decreased to $117.1 million at June 30, 2025 from $125.3 million at December 31, 2024.
+Added: The balance of our outstanding subordinated notes was paid off during the second quarter of 2025.
+Added: Subordinated notes, net of issuance costs, were $80.3 million at December 31, 2024.
We must maintain an adequate level of liquidity to ensure the availability of sufficient funds to accommodate deposit withdrawals, to support loan growth, to satisfy financial commitments, and to take advantage of investment opportunities.
−Removed: During the three months ended March 31, 2025, we used our sources of funds primarily to fund loan growth.
−Removed: At March 31, 2025, we had outstanding loan commitments totaling $3.89 billion, relating to undisbursed loans in process and unused credit lines.
+Added: During the six months ended June 30, 2025, we used our sources of funds primarily to fund loan growth.
+Added: At June 30, 2025, we had outstanding loan commitments totaling $3.86 billion, relating to undisbursed loans in process and unused credit lines.
While representing potential growth in the loan portfolio and lending activities, this level of commitments is proportionally consistent with our historical experience and does not represent a departure from normal operations.
2 unchanged sentences
We maintain credit facilities with the FHLB, which provide for advances that in the aggregate would equal the lesser of 45% of the Bank’s assets or adjusted qualifying collateral (subject to a sufficient level of ownership of FHLB stock).
−Removed: At March 31, 2025, under these credit facilities based on pledged collateral, the Bank had $3.14 billion of available credit capacity.
−Removed: Advances under these credit facilities totaled $168.0 million at March 31, 2025.
+Added: At June 30, 2025, under these credit facilities based on pledged collateral, the Bank had $2.74 billion of available credit capacity.
+Added: Advances under these credit facilities totaled $565.0 million at June 30, 2025.
In addition, the Bank has been approved for participation in the FRBSF’s Borrower-In-Custody program.
−Removed: Under this program, based on pledged collateral, the Bank had available lines of credit of approximately $1.65 billion as of March 31, 2025, subject to certain collateral requirements, namely the collateral type and risk rating of eligible pledged loans.
−Removed: We had no funds borrowed from the FRBSF at March 31, 2025 or December 31, 2024.
−Removed: At March 31, 2025, the Bank also had uncommitted federal funds line of credit agreements with other financial institutions totaling $125.0 million.
−Removed: No balances were outstanding under these agreements as of March 31, 2025 or December 31, 2024.
+Added: Under this program, based on pledged collateral, the Bank had available lines of credit of approximately $1.62 billion as of June 30, 2025, subject to certain collateral requirements, namely the collateral type and risk rating of eligible pledged loans.
+Added: We had no funds borrowed from the FRBSF at June 30, 2025 or December 31, 2024.
+Added: At June 30, 2025, the Bank also had uncommitted federal funds line of credit agreements with other financial institutions totaling $125.0 million.
+Added: No balances were outstanding under these agreements as of June 30, 2025 or December 31, 2024.
Availability of lines is subject to federal funds balances available for loan and continued borrower eligibility.
2 unchanged sentences
Banner is a separate legal entity from the Bank and, on a stand-alone level, must provide for its own liquidity, and pay its own operating expenses and cash dividends.
−Removed: At March 31, 2025, Banner (on an unconsolidated basis) had liquid assets of $84.2 million.
−Removed: At March 31, 2025, Banner had an intercompany loan agreement with the Bank of $50.0 million.
−Removed: The note receivable from the Bank has a rolling one-year term, automatically renewed each quarter, and is eliminated upon consolidation.
+Added: At June 30, 2025, Banner (on an unconsolidated basis) had liquid assets of $66.9 million.
+Added: During 2024, Banner and the Bank entered into an intercompany loan agreement for $50.0 million.
+Added: This note was paid off during the second quarter of 2025.
Banner’s primary sources of funds consist of capital raised through dividends or capital distributions from the Bank, although there are regulatory restrictions on the ability of the Bank to pay dividends.
1 unchanged sentence
Our current quarterly common stock dividend rate is $0.48 per share, as approved by our Board of Directors, which we believe is a dividend rate per share which enables us to balance our multiple objectives of managing and investing in the Bank, and returning a substantial portion of our cash to our shareholders.
−Removed: Assuming continued dividend payments during 2025 at this rate of $0.48 per share, our average total dividend paid each quarter would be approximately $16.6 million based on the number of outstanding shares at March 31, 2025.
+Added: Assuming continued dividend payments during 2025 at this rate of $0.48 per share, our average total dividend paid each quarter would be approximately $16.6 million based on the number of outstanding shares at June 30, 2025.
As noted below, Banner Corporation and its subsidiary bank continued to maintain capital levels in excess of the requirements to be categorized as “Well-Capitalized” under applicable regulatory standards.
−Removed: During the three months ended March 31, 2025, total shareholders’ equity increased $59.1 million, to $1.83 billion or 11.34% of total assets.
−Removed: At March 31, 2025, tangible common shareholders’ equity, which excludes goodwill and other intangible assets, was $1.46 billion, or 9.23% of tangible assets.
+Added: During the six months ended June 30, 2025, total shareholders’ equity increased $91.3 million, to $1.87 billion or 11.35% of total assets.
+Added: At June 30, 2025, tangible common shareholders’ equity, which excludes goodwill and other intangible assets, was $1.49 billion, or 9.28% of tangible assets.
Tangible common shareholders’ equity represents a non-GAAP financial measure.
−Removed: See, non-GAAP financial measure reconciliations presented above under “First Quarter 2025 Financial Highlights.”
+Added: See, non-GAAP financial measure reconciliations presented above under “Second Quarter 2025 Financial Highlights.”
Capital Requirements
5 unchanged sentences
The FDIC requires the Bank to maintain minimum capital ratios of total capital, tier 1 capital, and common equity tier 1 capital to risk-weighted assets as well as tier 1 leverage capital to average assets.
−Removed: In addition to the minimum capital ratios, the Bank must to maintain a capital conservation buffer consisting of additional common equity tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses.
−Removed: At March 31, 2025, Banner and the Bank each exceeded all regulatory capital requirements to be “well capitalized.”
−Removed: The actual regulatory capital ratios calculated for Banner Corporation and Banner Bank as of March 31, 2025, along with the minimum capital amounts and ratios, were as follows (dollars in thousands):
+Added: In addition to the minimum capital ratios, the Bank must maintain a capital conservation buffer consisting of additional common equity tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses.
+Added: At June 30, 2025, Banner and the Bank each exceeded all regulatory capital requirements to be “well capitalized.”
+Added: The actual regulatory capital ratios calculated for Banner Corporation and Banner Bank as of June 30, 2025, along with the minimum capital amounts and ratios, were as follows (dollars in thousands):
Actual Minimum to be Categorized as “Adequately Capitalized” Minimum to be Categorized as “Well-Capitalized”
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.