The Company reported net income of $127.2 million for the year ended December 31, 2025, and diluted EPS of $7.49. For the same period in 2024 the Company reported net income of $113.9 million and diluted EPS of $6.71.
The year ended December 31, 2025 was highlighted by several significant items:
| ● | Record annual net income of $127.2 million, or $7.49 per diluted share; |
| ● | Record adjusted net income (non-GAAP) of $129.6 million, or $7.64 per diluted share; |
| ● | Strong capital markets revenue of $64.7 million; |
| ● | Robust loan growth of 12% prior to LIHTC construction loan sale and m2 run-off; |
| ● | Strong core deposit growth of 7%; and |
| ● | Tangible book value (non-GAAP) per share expansion of $7.65, or 15%. |
Following is a table that represents the various net income measurements for the years ended December 31, 2025 and 2024.
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| · · Year Ended December 31, |
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| · · · 2025 · · 2024 |
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| | | (dollars in thousands, except per share data) |
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| Net income | | | $127,194 | | | $113,850 |
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| Diluted earnings per common share | | | $7.49 | | | $6.71 |
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| Weighted average common and common equivalent shares outstanding | | | 16,973,671 | | | 16,959,853 |
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The Company reported adjusted net income (non-GAAP) of $129.6 million, with adjusted diluted EPS of $7.64. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. Adjusted net income for the year excludes a number of non-core or non-recurring items, after-tax, as set forth in the “GAAP to Non-GAAP Reconciliation” section.
Following is a table that represents the major income and expense categories for the years ended December 31, 2025 and 2024.
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| · · Year Ended December 31, |
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| · 2025 · · 2024 |
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| | | (dollars are in thousands) |
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| Net interest income | | | $255,221 | | | $231,788 |
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| Provision for credit losses | | | 18,081 | | | 17,098 |
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| Noninterest income | | | 114,323 | | | 115,529 |
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| Noninterest expense | | | 215,561 | | | 207,642 |
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| Federal and state income tax expense | | | 8,708 | | | 8,727 |
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| Net income | | | $127,194 | | | $113,850 |
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The following are some noteworthy developments in the Company’s financial results:
| ● | Net interest income increased $23.4 million, or 10.1%, in 2025 compared to the prior year. The increase in 2025 was primarily due to NIM expansion, strong loan growth and a decrease in FHLB borrowings. |
| ● | Provision expense increased $983 thousand when comparing 2025 to 2024. The increase in 2025 was due to overall loan growth. See the below “Provision for Credit Losses” section of this Annual Report on Form 10-K for additional details. |
| ● | Noninterest income decreased $1.2 million, or 1.0%, when compared to the prior year. The decrease in 2025 was primarily attributable to lower capital markets revenue from swap fees. Capital markets revenue in the first six months of 2025 was affected by macroeconomic uncertainty. Despite this, sustained, long-term demand for affordable housing remains strong. The demand for low-income housing remains healthy and the economics associated with these tax credit projects continue to be favorable. The Company has a strong pipeline for this business that continues to improve as clients adapt to evolving market conditions. The Company expects its capital markets revenue to continue to be a strong source of fee income. |
| ● | Noninterest expense increased $7.9 million, or 3.8%, in 2025 compared to the prior year, primarily due to higher professional and data processing fees and occupancy and equipment expenses related to the Company’s digital transformation. |
