Bankwell Financial Group Reports Operating Results for the Second Quarter, Declares Third Quarter Dividend

Business Wire

28-07-2025

NEW CANAAN, Conn.--(BUSINESS WIRE)--Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the second quarter of 2025, versus $6.9 million, or $0.87 per share, for the first quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable August 22, 2025 to shareholders of record on August 11, 2025.
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"Our strong second quarter reflects an acceleration of positive trends which have been building over the past year. Notably, our net interest margin increased to 3.10% as a result of our improved funding costs. Loan originations accelerated in the quarter, resulting in $24 million net loan growth, which includes another robust quarter of SBA originations. Having already made the appropriate investments in risk, operations, and technology, the SBA business is on a path to achieve further scale and profitability. Year to date, it has contributed $1.5 million in non-interest income. The combined results of our efforts have increased the Company's return on average assets to 1.14% this quarter and we expect continued improvement in profitability as the year progresses.
As we continue to improve the Company's funding with higher quality deposits, we have now welcomed a total of five new deposit-focused private banking teams the year, and we anticipate their contributions will boost deposit growth later this year, with greater impact in 2026.
In light of this positive momentum, we are updating our 2025 guidance, to grow net interest income to $97 – $98 million. We reiterate our guidance of $7 - $8 million in noninterest income. We are increasing our noninterest expense guidance to $58 - $59 million, primarily a result of our investments in people. Despite the modestly higher run rate in operating expenses, we expect to see continued improvement to the Company's efficiency ratio in the quarters ahead."
Key Points for Second Quarter and Bankwell's Outlook
NIM Expansion on Improved Deposit Costs.
Reported net interest margin was 3.10%, up 29 basis points from the first quarter of 2025, with reduced deposit costs on both time and non-maturity deposits contributing meaningfully to the linked-quarter expansion. Second quarter cost of deposits of 3.40% improved 20 basis points to linked quarter, with a June 2025 "exit" rate of 3.28%.
During the first half of 2025, approximately $745 million of time deposits repriced approximately 80 basis points lower. Furthermore, rate cuts on approximately $1.0 billion of non-maturity interest-bearing deposits yielded a 23 basis point reduction in the same time period.
Advancing Key Strategic Priorities.
SBA loan sale gains increased to $1.1 million for the quarter ended June 30, 2025, compared to $0.4 million in the first quarter of 2025. The SBA lending vertical delivered $11.8 million in originations during the quarter ended June 30, 2025, with continued growth expected for the remainder of 2025.
The Company continues to invest in its deposit gathering capabilities, with the addition of five deposit teams in the New York Metro area; two teams added in April were previously disclosed, one team added after June 30, 2025.
For the quarter ended June 30, 2025, the Company realized an efficiency ratio of 56.1%, down from 59.9% for the quarter ended March 31, 2025. Investments in strategic priorities continue to be balanced with revenue generation and improved efficiency.
Improving Credit.
As of June 30, 2025, nonperforming assets as a percentage of total assets improved to 0.78%, compared to 0.83% as of March 31, 2025. Of the 0.78%, 0.17% is guaranteed by the SBA.
ACL-loans as a % of nonperforming loans increased to 122.5%, compared to 111.8% as of March 31, 2025.
Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
Return on average assets (1)(6)
1.14
%
0.86
%
0.37
%
0.24
%
0.14
%
Pre-tax, pre-provision net revenue return on average assets (1)(6)
1.43
%
1.18
%
1.13
%
1.22
%
1.10
%
Return on average shareholders' equity (1)(6)
12.98
%
10.16
%
4.35
%
2.83
%
1.65
%
Net interest margin (1)(6)
3.10
%
2.81
%
2.60
%
2.72
%
2.75
%
Efficiency Ratio (1)(3)
56.1
%
59.9
%
56.4
%
58.8
%
45.6
%
Noninterest expense to average assets (1)(6)
1.83
%
1.76
%
1.56
%
1.62
%
1.55
%
Net loan charge-offs as a percentage of average loans (1)(6)
0.00
%
0.00
%
0.11
%
0.56
%
0.01
%
Dividend payout (1)(4)
17.39
%
22.99
%
54.05
%
82.30
%
142.86
%
Fully diluted tangible book value per common share (1)(2)
$
35.65
$
34.56
$
34.09
$
33.76
$
33.61
Total capital to risk-weighted assets (1)(5)
13.28
%
13.22
%
12.70
%
12.83
%
12.98
%
Total common equity tier 1 capital to risk-weighted assets (1)(5)
12.20
%
12.11
%
11.64
%
11.80
%
11.73
%
Tier I Capital to Average Assets (1)(5)
10.57
%
10.13
%
10.09
%
10.24
%
10.17
%
Tangible common equity to tangible assets (1)(2)
8.68
%
8.57
%
8.20
%
8.40
%
8.42
%
Earnings per common share - diluted
$
1.15
$
0.87
$
0.37
$
0.24
$
0.14
Common shares issued and outstanding
7,888,013
7,859,873
7,858,573
7,866,499
(1) Non-GAAP Financial Measure; refer to the "Non-GAAP Financial Measures" section of this document for additional detail.
(2) Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail.
(3) Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.
(4) The dividend payout ratio is calculated by dividing dividends per share by earnings per share.
(5) Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.
(6) Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (using the "Pre-Tax, Pre-Provision Net Revenue (PPNR) section of this document by average assets. Return on average shareholders' equity is calculated by dividing annualized net income by average shareholders' equity. Net interest margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans.
Expand
Pre-Tax, Pre-Provision Net Revenue (1) ("PPNR")
PPNR for the second quarter ended June 30, 2025 was $11.4 million, an increase of 20.9% from $9.4 million recognized for the first quarter ended March 31, 2025.
Revenues (net interest income plus noninterest income) for the quarter ended June 30, 2025 were $25.9 million, versus $23.6 million from the previous quarter. The increase in revenues for the quarter ended June 30, 2025 was mainly attributable to reduced funding costs. Additional favorability for the quarter ended June 30, 2025 is attributed to growth in gains on sale of SBA loans.
The net interest margin (fully taxable equivalent basis) for the quarters ended June 30, 2025 and March 31, 2025 was 3.10% and 2.81%, respectively. The increase in the net interest margin was mainly due to reduced funding costs.
Total non-interest expense of $14.5 million increased 2.9% compared to the first quarter, which was mainly driven by increase in salaries and employee benefits.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $29.3 million as of June 30, 2025 compared to $29.5 million as of March 31, 2025. The ACL-Loans as a percentage of total loans was 1.10% as of June 30, 2025 compared to 1.11% as of March 31, 2025.
The credit for credit losses - loans was $0.3 million for the quarter ended June 30, 2025. Total nonperforming loans decreased $2.5 million to $23.9 million as of June 30, 2025 when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.78% as of June 30, 2025 compared to the previous quarter's ratio of 0.83%.
As of
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
Asset quality:
Nonaccrual loans
Residential real estate
$
617
$
811
$
791
$
1,316
$
1,339
Commercial real estate
16,387
17,946
44,814
46,360
28,088
Commercial business
6,871
7,626
7,672
9,101
17,396
Construction
—
—
—
8,766
9,382
Consumer
—
—
—
—
—
Total nonaccrual loans
23,875
26,383
53,277
65,543
56,205
Other real estate owned
1,284
—
8,299
—
—
Total nonperforming assets
$
25,159
$
26,383
$
61,576
$
65,543
$
56,205
Nonperforming loans as a % of total loans
0.89
%
1.00
%
1.97
%
2.42
%
2.12
%
Nonperforming assets as a % of total assets
0.78
%
0.83
%
1.88
%
2.07
%
1.79
%
ACL-loans as a % of total loans
1.10
%
1.11
%
1.07
%
1.07
%
1.36
%
ACL-loans as a % of nonperforming loans
122.54
%
111.76
%
54.44
%
44.26
%
64.20
%
Total past due loans to total loans
0.91
%
1.08
%
1.63
%
2.40
%
0.84
%
Expand
Financial Condition & Capital
Assets totaled $3.2 billion at June 30, 2025, a decrease of $31.9 million, or 1.0% compared to December 31, 2024. Gross loans totaled $2.7 billion at June 30, 2025, a decrease of $36.9 million, or 1.4% compared to December 31, 2024. Deposits totaled $2.8 billion at June 30, 2025, a decrease of $28.3 million, or 1.0% compared to December 31, 2024. Brokered deposits have decreased $81.2 million or 11.5%, when compared to December 31, 2024.
Period End Deposit Composition
June 30,
2025
December 31,
2024
June 30,
2024
Current YTD
% Change
Noninterest bearing demand
$
397,195
$
321,875
$
328,475
23.4
%
20.9
%
NOW
118,019
105,090
122,112
12.3
(3.4
)
Money Market
875,457
899,413
825,599
(2.7
)
6.0
Savings
91,612
90,220
91,870
1.5
(0.3
)
Time
1,276,998
1,370,972
1,294,319
(6.9
)
(1.3
)
Total Deposits
$
2,759,281
$
2,787,570
$
2,662,375
(1.0
)%
3.6
%
Expand
Shareholders' equity totaled $283.3 million as of June 30, 2025, an increase of $12.8 million compared to December 31, 2024, primarily a result of year to date net income of $16.0 million. The increase was partially offset by dividends paid of $3.1 million and share repurchases of $1.3 million.
As of June 30, 2025, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 13.28%, 12.20%, and 10.57%, respectively. The Company repurchased 14,626 shares at a weighted average price of $28.86 per share during the quarter ended June 30, 2025.
We recommend reading this earnings release in conjunction with the Second Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our July 28, 2025 Current Report on Form 8-K.
Conference Call
Bankwell will host a conference call to discuss the Company's financial results and business outlook on July 28, 2025, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations /. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.
About Bankwell Financial Group
Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell offers its customers unmatched accessibility, expertise, and responsiveness through a range of commercial financing products including working capital lines of credit, SBA loans, acquisition loans, and commercial mortgages as well as treasury management and deposit services.
For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at [phone] or at [e-mail].
For more information, visit www.mybankwell.com.
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as 'believe,' 'expect,' 'anticipate,' 'estimate,' and 'intend' or future or conditional verbs such as 'will,' 'would,' 'should,' 'could,' or 'may.' Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, operating revenue, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.
ASSETS
Cash and due from banks
$
313,998
$
292,006
$
293,552
$
275,829
$
234,277
Federal funds sold
8,466
12,922
13,972
15,508
17,103
Cash and cash equivalents
322,464
304,928
307,524
291,337
251,380
Investment securities
Marketable equity securities, at fair value
2,188
2,164
2,118
2,148
2,079
Available for sale investment securities, at fair value
103,930
97,321
107,428
108,866
107,635
Held to maturity investment securities, at amortized cost
36,434
36,478
36,553
34,886
28,286
Total investment securities
142,552
135,963
146,099
145,900
138,000
Loans receivable (net of ACL-Loans of $29,256, $29,485, $29,007, $27,752, and $36,083, at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively)
2,635,742
2,611,495
2,672,959
2,591,551
2,616,691
Accrued interest receivable
14,741
15,409
14,535
14,714
14,675
Federal Home Loan Bank stock, at cost
5,051
3,583
5,655
5,655
5,655
Premises and equipment, net
23,020
22,978
23,856
24,780
25,599
Bank-owned life insurance
53,488
53,136
52,791
52,443
52,097
Goodwill
2,589
2,589
2,589
2,589
2,589
Deferred income taxes, net
9,684
9,551
9,742
9,300
11,345
Other real estate owned
1,284
—
8,299
—
—
Other assets
25,978
24,261
24,427
22,811
23,623
Total assets
$
3,236,593
$
3,183,893
$
3,268,476
$
3,161,080
$
3,141,654
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest bearing deposits
$
397,195
$
349,525
$
321,875
$
295,552
$
328,475
Interest bearing deposits
2,362,086
2,400,920
2,465,695
2,392,619
2,333,900
Total deposits
2,759,281
2,750,445
2,787,570
2,688,171
2,662,375
Advances from the Federal Home Loan Bank
75,000
40,000
90,000
90,000
90,000
Subordinated debentures
69,574
69,513
69,451
69,389
69,328
Accrued expenses and other liabilities
49,448
48,721
50,935
45,594
52,975
Total liabilities
2,953,303
2,908,679
2,997,956
2,893,154
2,874,678
Shareholders' equity
Common stock, no par value
118,698
118,439
119,108
118,429
118,037
Retained earnings
165,495
157,971
152,656
151,257
150,895
Accumulated other comprehensive (loss)
(903
)
(1,196
)
(1,244
)
(1,760
)
(1,956
)
Total shareholders' equity
283,290
275,214
270,520
267,926
266,976
Total liabilities and shareholders' equity
$
3,236,593
$
3,183,893
$
3,268,476
$
3,161,080
$
3,141,654
Expand
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)
For the Quarter Ended
For the Six-Months Ended
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
June 30,
2025
June 30,
2024
Interest and dividend income
Interest and fees on loans
$
44,128
$
43,475
$
42,851
$
43,596
$
43,060
$
87,603
$
86,385
Interest and dividends on securities
1,478
1,445
1,482
1,390
1,190
2,923
2,320
Interest on cash and cash equivalents
3,043
3,557
3,510
3,205
3,429
6,600
7,255
Total interest and dividend income
48,649
48,477
47,843
48,191
47,679
97,126
95,960
Interest expense
Interest expense on deposits
23,083
24,772
25,640
25,579
24,677
47,855
50,039
Interest expense on borrowings
1,630
1,639
2,004
1,895
1,783
3,269
3,555
Total interest expense
24,713
26,411
27,644
27,474
26,460
51,124
53,594
Net interest income
23,936
22,066
20,199
20,717
21,219
46,002
42,366
(Credit) provision for credit losses
(411
)
463
4,458
6,296
8,183
52
11,866
Net interest income after (credit) provision for credit losses
24,347
21,603
15,741
14,421
13,036
45,950
30,500
Noninterest income
Bank owned life insurance
352
344
348
346
333
696
662
Service charges and fees
674
602
589
575
495
1,276
799
Gains and fees from sales of loans
1,080
442
24
133
45
1,522
366
Other
(94
)
117
3
102
(190
)
23
(229
)
Total noninterest income
2,012
1,505
964
1,156
683
3,517
1,598
Noninterest expense
Salaries and employee benefits
7,521
7,052
5,056
6,223
6,176
14,573
12,467
Occupancy and equipment
2,505
2,575
2,600
2,334
2,238
5,080
4,561
Professional services
1,632
1,529
1,286
1,142
989
3,161
2,054
Data processing
712
885
905
851
755
1,597
1,495
Director fees
333
348
342
292
306
681
1,206
FDIC insurance
684
779
862
853
705
1,463
1,635
Marketing
218
142
175
73
90
360
203
Other
941
831
1,418
1,097
986
1,772
1,921
Total noninterest expense
14,546
14,141
12,644
12,865
12,245
28,687
25,542
Income before income tax expense
11,813
8,967
4,061
2,712
1,474
20,780
6,556
Income tax expense
2,725
2,079
1,098
786
356
4,804
1,675
Net income
$
9,088
$
6,888
$
2,963
$
1,926
$
1,118
$
15,976
$
4,881
Earnings Per Common Share:
Basic
$
1.16
$
0.88
$
0.37
$
0.24
$
0.14
$
2.04
$
0.62
Diluted
$
1.15
$
0.87
$
0.37
$
0.24
$
0.14
$
2.03
$
0.62
Weighted Average Common Shares Outstanding:
Basic
7,777,469
7,670,224
7,713,970
7,715,040
7,747,675
7,724,143
7,705,598
Diluted
7,819,829
7,740,521
7,727,412
7,720,895
7,723,888
7,795,820
7,721,880
Dividends per common share
$
0.20
$
0.20
$
0.20
$
0.20
$
0.20
$
0.40
$
0.40
Expand
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands, except share data)
As of
Computation of Tangible Common Equity to Tangible Assets
June 30,
2 025
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
Total Equity
$
283,290
$
275,214
$
270,520
$
267,926
$
266,976
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Common Equity
$
280,701
$
272,625
$
267,931
$
265,337
$
264,387
Total Assets
$
3,236,593
$
3,183,893
$
3,268,476
$
3,161,080
$
3,141,654
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Assets
$
3,234,004
$
3,181,304
$
3,265,887
$
3,158,491
$
3,139,065
Tangible Common Equity to Tangible Assets
8.68
%
8.57
%
8.20
%
8.40
%
8.42
%
Expand
As of
Computation of Fully Diluted Tangible Book Value per Common Share
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
June 30,
2024
Total shareholders' equity
$
283,290
$
275,214
$
270,520
$
267,926
$
266,976
Less:
Preferred stock
—
—
—
—
—
Common shareholders' equity
$
283,290
$
275,214
$
270,520
$
267,926
$
266,976
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible common shareholders' equity
$
280,701
$
272,625
$
267,931
$
265,337
$
264,387
Common shares issued and outstanding
7,873,387
7,888,013
7,859,873
7,858,573
7,866,499
Fully Diluted Tangible Book Value per Common Share
$
35.65
$
34.56
$
34.09
$
33.76
$
33.61
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BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS") (unaudited)
(Dollars in thousands, except share data)
For the Quarter Ended
June 30,
For the Six Months Ended
June 30,
2025
2024
2025
2024
(In thousands, except per share data)
Net income
$
9,088
$
1,118
$
15,976
$
4,881
Dividends to participating securities (1)
26
(40
)
53
(79
)
Undistributed earnings allocated to participating securities (1)
(125
)
14
(241
)
(52
)
Net income for earnings per share calculation
8,989
1,092
15,788
4,750
Weighted average shares outstanding, basic
7,777,469
7,747,675
7,724,143
7,705,598
Effect of dilutive equity-based awards (2)
42,359
(24,787
)
71,677
16,282
Weighted average shares outstanding, diluted
7,819,828
7,722,888
7,795,820
7,721,880
Net earnings per common share:
Basic earnings per common share
$
1.16
$
0.14
$
2.04
$
0.62
Diluted earnings per common share
$
1.15
$
0.14
$
2.03
$
0.62
(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.
(2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.
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For the Quarter Ended
June 30, 2025
June 30, 2024
Average
B alance
Interest
Yield/
Rate (4)
Average
Balance
Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold
$
296,054
$
3,043
4.12
%
$
273,301
$
3,429
5.05
%
Securities (1)
149,475
1,535
4.11
137,360
1,139
3.32
Loans:
Commercial real estate
1,788,354
27,427
6.07
1,901,189
27,654
5.75
Residential real estate
37,549
597
6.36
49,046
772
6.30
Construction
196,373
3,851
7.76
159,184
2,871
7.14
Commercial business
558,237
11,195
7.93
523,382
11,028
8.34
Consumer
72,137
1,058
5.88
42,335
735
6.98
Total loans
2,652,650
44,128
6.58
2,675,136
43,060
6.37
Federal Home Loan Bank stock
5,000
85
6.85
5,655
118
8.47
Total earning assets
3,103,179
$
48,791
6.22
%
3,091,452
$
47,746
6.11
%
Other assets
88,967
95,453
Total assets
$
3,192,146
$
3,186,905
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
107,818
$
77
0.29
%
$
107,310
$
49
0.18
%
Money market
898,777
8,579
3.83
833,489
8,552
4.13
Savings
91,415
667
2.93
90,987
688
3.04
Time
1,273,372
13,760
4.33
1,291,595
15,388
4.76
Total interest bearing deposits
2,371,382
23,083
3.90
2,323,381
24,677
4.27
Borrowed Money
138,380
1,629
4.72
159,288
1,783
4.50
Total interest bearing liabilities
2,509,762
$
24,712
3.95
%
2,482,669
$
26,460
4.29
%
Noninterest bearing deposits
352,623
368,516
Other liabilities
48,956
63,177
Total liabilities
2,911,341
2,914,362
Shareholders' equity
280,805
272,543
Total liabilities and shareholders' equity
$
3,192,146
$
3,186,905
Net interest income (2)
$
24,079
$
21,286
Interest rate spread
2.27
%
1.82
%
Net interest margin (3)
3.10
%
2.75
%
(1) Average balances and yields for securities are based on amortized cost.
(2) The adjustment for securities and loans taxable equivalency amounted to $143 thousand and $67 thousand for the quarters ended June 30, 2025 and 2024, respectively.
(3) Annualized net interest income as a percentage of earning assets.
(4) Yields are calculated using the contractual day count convention for each respective product type.
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For the Year Ended
June 30, 2025
June 30, 2024
Average
Balance
Interest
Yield/
Rate (4)
Average
Balance
Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold
$
322,498
$
6,600
4.13
%
$
282,981
$
7,255
5.16
%
Securities (1)
150,059
3,011
4.01
136,049
2,199
3.23
Loans:
Commercial real estate
1,818,282
55,710
6.09
1,911,896
56,295
5.82
Residential real estate
39,544
1,230
6.22
49,624
1,490
6.01
Construction
187,674
7,320
7.76
160,080
5,844
7.22
Commercial business
533,310
21,204
7.91
520,188
21,314
8.10
Consumer
76,784
2,139
5.62
41,150
1,442
7.05
Total loans
2,655,594
87,603
6.56
2,682,938
86,385
6.37
Federal Home Loan Bank stock
4,799
196
8.21
5,678
239
8.49
Total earning assets
3,132,950
$
97,410
6.18
%
3,107,646
$
96,078
6.12
%
Other assets
89,353
93,179
Total assets
$
3,222,303
$
3,200,825
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
103,675
$
187
0.36
%
$
99,493
$
88
0.18
%
Money market
896,084
17,099
3.85
858,670
17,698
4.14
Savings
89,800
1,325
2.98
91,979
1,402
3.06
Time
1,325,630
29,244
4.45
1,304,332
30,851
4.76
Total interest bearing deposits
2,415,189
47,855
4.00
2,354,474
50,039
4.27
Borrowed Money
136,161
3,269
4.84
159,257
3,555
4.49
Total interest bearing liabilities
2,551,350
$
51,124
4.04
%
2,513,731
$
53,594
4.29
%
Noninterest bearing deposits
343,261
352,768
Other liabilities
49,752
62,775
Total liabilities
2,944,363
2,929,274
Shareholders' equity
277,940
271,551
Total liabilities and shareholders' equity
$
3,222,303
$
3,200,825
Net interest income (2)
$
46,286
$
42,484
Interest rate spread
2.14
%
1.83
%
Net interest margin (3)
2.95
%
2.73
%
(1) Average balances and yields for securities are based on amortized cost.
(2) The adjustment for securities and loans taxable equivalency amounted to $285 thousand and $118 thousand for the year ended June 30, 2025 and 2024, respectively.
(3) Annualized net interest income as a percentage of earning assets.
(4) Yields are calculated using the contractual day count convention for each respective product type.
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