HOME BANCORP, INC.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
HBCP$60.94+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001436425-25-000018
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001436425-25-000036
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 96 previous paragraphs and 96 current paragraphs.
51 unchanged; 35 reworded; 10 added; 8 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
The Company reported net income for the second quarter of 2025 of $11.3 million, or $1.45 diluted EPS, up $3.2 million, or 39.6%, compared to the second quarter of 2024. Net income for the second quarter of 2024 totaled $8.1 million, or $1.02 diluted EPS. For the six months ended June 30, 2025, the Company reported net income $22.3 million, or $2.82 diluted EPS, up $5.0 million, or 28.7%, from $17.3 million, or $2.16 diluted EPS, reported for the six months ended June 30, 2024.
Current report
•Total interest expense for the second quarter of 2025 was down $787,000, or 4.9%, compared to the second quarter of 2024, primarily due to lower cost of borrowings. For the six months ended June 30, 2025, total interest expense was down $560,000, or 1.8%, from the comparable period in 2024.
Current report
•Noninterest income for the second quarter of 2025 was down $39,000, or 1.0%, compared to the second quarter of 2024, primarily due to a decrease in other income (down $143,000), which was partially offset by an increase in service fees and charges (up $106,000). For the six months ended June 30, 2025, noninterest income was up $421,000, or 5.8%, from the comparable period in 2024 primarily due to an increase in gain on sale of loans (up $278,000) and service fees and charges (up $161,000), which were partially offset by a decrease in other income (down $46,000).
Current report
•Noninterest expense for the second quarter of 2025 was up $599,000, or 2.7%, compared to the second quarter of 2024, primarily due to an increase in other expenses (up $852,000), compensation and benefits (up $534,000), and foreclosed assets (up $330,000), which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $836,000) and professional services (down $185,000). For the six months ended June 30, 2025, noninterest expense was up $1.3 million, or 3.1%, from the comparable period in 2024 primarily due to an increase in compensation and benefits (up $1.0 million), other expenses (up $821,000) and foreclosed assets, net (up $492,000), which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $836,000).
Current report
Total loans at June 30, 2025 were $2.8 billion, up $46.4 million, or 1.7%, from December 31, 2024.
Current report
Net income for the six months ended June 30, 2025 was $22.3 million, up $5.0 million, or 28.7%, compared to the six months ended June 30, 2024. Diluted EPS for the six months ended June 30, 2025 was $2.82, up $0.66 compared to the six months ended June 30, 2024.
Current report
Net interest income totaled $33.4 million for the second quarter of 2025, up $4.0 million, or 13.5%, compared to the second quarter of 2024. For the six months ended June 30, 2025, net interest income totaled $65.1 million, up $6.8 million, or 11.7%, compared to the six months ended June 30, 2024.
Current report
Noninterest income for the second quarter of 2025 totaled $3.7 million, down $39,000, or 1.0%, from $3.8 million earned for the same period in 2024. Noninterest income decreased over the comparable periods primarily due to a decrease in other income (down $143,000, primarily due to the absence of derivative fee income), which was partially offset by an increase in service fees and charges (up $106,000).
Current report
Noninterest expense for the second quarter of 2025 totaled $22.4 million, up $599,000, or 2.7%, from the second quarter of 2024. Noninterest expense increased over the comparable quarters primarily due to an increase in other expenses (up $852,000, primarily due to a write off of an acquired SBA accounts receivable for guarantees), compensation and benefits (up $534,000, primarily due to increases in salaries), and foreclosed assets (up $330,000) which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $836,000, primarily due to lower unfunded commitment levels) and professional services (down $185,000).
Current report
Noninterest expense for the six months ended June 30, 2025 totaled $44.0 million, up $1.3 million, or 3.1%, from the same period in 2024. Noninterest expense increased over the comparable quarters primarily due to an increase in compensation and benefits (up $1.0 million, primarily due to increases in salaries), other expenses (up $821,000, primarily due to a write off of an acquired SBA accounts receivable for guarantees) and foreclosed assets, net (up $492,000), which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $836,000, primarily due to lower unfunded commitment levels).
Removed paragraphs (8)
Previous report
The Company reported net income for the first quarter of 2025 of $11.0 million, or $1.37 diluted EPS, up $1.8 million compared to the first quarter of 2024. Net income for the first quarter of 2024 totaled $9.2 million, or $1.14 diluted EPS.
Previous report
•Total interest expense for the first quarter of 2025 was up $227,000, or 1.5%, compared to the first quarter of 2024, primarily due to higher cost of deposits.
Previous report
•Noninterest income for the first quarter of 2025 was up $460,000, or 13.0%, compared to the first quarter of 2024, primarily due to increases in gain on sale of loans (up $290,000), other income (up $97,000), and service fees and charges (up $55,000).
Previous report
•Noninterest expense for the first quarter of 2025 was up $711,000, or 3.4%, compared to the first quarter of 2024, primarily due to increases in compensation and benefits (up $482,000), foreclosed assets, net (up $162,000), data processing and communication (up $128,000), and occupancy (up $107,000), which were partially offset by decreases in professional services (down $70,000) and marketing and advertising (down $37,000).
Previous report
Total loans at March 31, 2025 were $2.7 billion, up $29.1 million, or 1.1%, from December 31, 2024.
Previous report
The following table summarizes the Company's primary and secondary sources of liquidity which were available at March 31, 2025.
Previous report
Net interest income totaled $31.7 million for the first quarter of 2025, up $2.8 million, or 9.9%, compared to the first quarter of 2024.
Previous report
Noninterest expense for the first quarter of 2025 totaled $21.6 million, up $711,000, or 3.4%, from the first quarter of 2024. Noninterest expense increased over the comparable quarters primarily due to increases in compensation and benefits (up $482,000, primarily due to increases in salaries), foreclosed assets, net (up $162,000), data processing and communication (up $128,000), and occupancy (up $107,000), which were partially offset by decreases in professional services (down $70,000) and marketing and advertising (down $37,000).
Reworded paragraphs (35)
Previous wording
The purpose of this discussion and analysis is to focus on significant changes in the financial condition of the Company and the Bank from December 31, 2024 through March 31, 2025 and on its results of operations for the three months ended March 31, 2025 and 2024. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in Item 1.
Current wording
The purpose of this discussion and analysis is to focus on significant changes in the financial condition of the Company and the Bank from December 31, 2024 through June 30, 2025 and on its results of operations for the three and six months ended June 30, 2025 and 2024. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in Item 1.
Previous wording
Key components of the Company’s performance during the three months ended March 31, 2025 include:
Current wording
Key components of the Company’s performance during the three and six months ended June 30, 2025 include:
Previous wording
•Assets increased $41.8 million, or 1.2%, from December 31, 2024 to $3.5 billion at March 31, 2025.
Current wording
•Assets increased $47.8 million, or 1.4%, from December 31, 2024 to $3.5 billion at June 30, 2025.
Previous wording
•Total loans were $2.7 billion at March 31, 2025, up $29.1 million, or 1.1%, from December 31, 2024.
Current wording
•Total loans were $2.8 billion at June 30, 2025, up $46.4 million, or 1.7%, from December 31, 2024.
Previous wording
•During the three months ended March 31, 2025, the Company provisioned $394,000 to the allowance for loan losses, primarily due to loan growth. During the three months ended March 31, 2024, the Company provisioned $141,000 to the allowance for loan losses.
Current wording
•During the three and six months ended June 30, 2025, the Company provisioned $489,000 and $883,000, respectively, to the allowance for loan losses, primarily due to loan growth. During the three and six months ended June 30, 2024, the Company provisioned $1.3 million and $1.4 million, respectively, to the allowance for loan losses.
Previous wording
•The ALL totaled $33.3 million, or 1.21% of total loans, at March 31, 2025 compared to $32.9 million, or 1.21% of total loans, at December 31, 2024. The ACL, which is comprised of the allowance for loan losses plus the allowance for unfunded lending commitments, totaled $36.0 million, or 1.31% of total loans, at March 31, 2025 compared to $35.6 million, or 1.31% of total loans, at December 31, 2024.
Current wording
•The ALL totaled $33.4 million, or 1.21% of total loans, at June 30, 2025 compared to $32.9 million, or 1.21% of total loans, at December 31, 2024. The ACL, which is comprised of the allowance for loan losses plus the allowance for unfunded lending commitments, totaled $35.2 million, or 1.27% of total loans, at June 30, 2025 compared to $35.6 million, or 1.31% of total loans, at December 31, 2024.
Previous wording
•Nonperforming assets increased $5.9 million, or 37.6%, from $15.6 million, or 0.45% of total assets, at December 31, 2024 to $21.5 million, or 0.62% of total assets, at March 31, 2025. The increase in nonperforming assets was primarily due to two loan relationships, which were classified as substandard in 2024 and moved to nonaccrual status in the first quarter of 2025.
Current wording
•Nonperforming assets increased $9.8 million, or 62.9%, from $15.6 million, or 0.45% of total assets, at December 31, 2024 to $25.4 million, or 0.73% of total assets, at June 30, 2025. The increase in nonperforming assets was primarily due to three loan relationships classified as substandard in 2024 and moved to nonaccrual status during the 2025 period, and three loan relationships that were downgraded to substandard and moved to nonaccrual status during the 2025 period.
Previous wording
•Total deposits amounted to $2.8 billion at March 31, 2025, an increase of $46.5 million, or 1.7%, from December 31, 2024.
Current wording
•Total deposits amounted to $2.9 billion at June 30, 2025, an increase of $127.5 million, or 4.6%, from December 31, 2024.
Previous wording
•The net interest margin was 3.91% for the three months ended March 31, 2025, up 27 bps from the three months ended March 31, 2024. The increase was primarily due to increase in interest-earning assets.
Current wording
•The net interest margin was 4.04% and 3.98% for the three and six months ended June 30, 2025, respectively, up 38 bps and 33 bps from the three and six months ended June 30, 2024, respectively. The increases were primarily due to higher yields on interest-earning assets and lower funding cost.
Previous wording
•The average rate paid on total interest-bearing deposits was 2.51% for the first quarter of 2025, which was down 1 bps from the first quarter of 2024.
Current wording
•The average rate paid on total interest-bearing deposits was 2.52% for the second quarter of 2025, which was down 17 bps from the second quarter of 2024. For the six months ended June 30, 2025, the average rate paid on total interest-bearing deposits was 2.52%, down 8 bps from the six months ended June 30, 2024.
Previous wording
At March 31, 2025, the ALL totaled $33.3 million, or 1.21% of total loans, up $362,000 from $32.9 million, or 1.21% of total loans, at December 31, 2024. During the three months ended March 31, 2025, the Company provisioned $394,000 of the allowance loan losses primarily due to loan growth. Net loan charge-offs totaled $32,000 for the three months ended March 31, 2025.
Current wording
At June 30, 2025, the ALL totaled $33.4 million, or 1.21% of total loans, up $516,000 from $32.9 million, or 1.21% of total loans, at December 31, 2024. During the six months ended June 30, 2025, the Company provisioned $883,000 of the allowance loan losses primarily due to loan growth. Net loan charge-offs totaled $367,000 for the six months ended June 30, 2025.
Previous wording
At March 31, 2025 and December 31, 2024, loans identified as credit deteriorated loans and individually evaluated for expected losses were $3.1 million and $5.0 million, respectively. The following tables provide a summary of loans individually evaluated for credit losses as of the dates indicated.
Current wording
At June 30, 2025 and December 31, 2024, loans identified as credit deteriorated loans and individually evaluated for expected losses were $3.7 million and $5.0 million, respectively. The following tables provide a summary of loans individually evaluated for credit losses as of the dates indicated.
Previous wording
At March 31, 2025 and December 31, 2024, loans classified as substandard totaled $36.4 million and $35.8 million, respectively. There were no assets classified as doubtful at either date. For additional information, refer to Note 5 to the Consolidated Financial Statements.
Current wording
At June 30, 2025 and December 31, 2024, loans classified as substandard totaled $49.8 million and $35.8 million, respectively. There were no assets classified as doubtful at either date. For additional information, refer to Note 5 to the Consolidated Financial Statements.
Previous wording
Total nonperforming loans increased by $5.4 million, or 40.1%, to $19.0 million at March 31, 2025, compared to $13.6 million at December 31, 2024. The primary reason for the increase was two loan relationships with an aggregate outstanding balance of $5.6 million at March 31, 2025 that became nonperforming during the first quarter of 2025.
Current wording
Total nonperforming loans increased by $9.8 million, or 71.7%, to $23.4 million at June 30, 2025, compared to $13.6 million at December 31, 2024. The primary reason for the increase was four loan relationships with an aggregate outstanding balance of $10.5 million at June 30, 2025 that became nonperforming during 2025.
Previous wording
Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. Management maintains, based on current and forecasted information, an ACL that reflects a current estimate of expected credit losses for the estimated life of the loan portfolio at reporting periods subsequent to the adoption date. For all reporting periods, actual losses are uncertain and dependent upon future events and, as such, further additions to the level of ACL may become necessary.
Current wording
A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines. Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. Management maintains, based on current and forecasted information, an ACL that reflects a current estimate of expected credit losses for the estimated life of the loan portfolio at reporting periods subsequent to the adoption date. For all reporting periods, actual losses are uncertain and dependent upon future events and, as such, further additions to the level of ACL may become necessary.
Previous wording
The Company’s investment securities portfolio totaled $401.6 million as of March 31, 2025, a decrease of $2.2 million, or 0.6%, from December 31, 2024. During the first quarters of 2025 and 2024, the Company had no gains or losses related to the sale of available-for-sale investment securities. At March 31, 2025, the Company had a net unrealized loss on its available for sale investment securities portfolio of $34.0 million, compared to a net unrealized loss of $41.0 million at December 31, 2024. The Company’s investment securities portfolio had an effective duration of 3.7 years and 3.9 years at March 31, 2025 and December 31, 2024, respectively.
Current wording
The Company’s investment securities portfolio totaled $394.5 million as of June 30, 2025, a decrease of $9.3 million, or 2.3%, from December 31, 2024. During the second quarters of 2025 and 2024, the Company had no gains or losses related to the sale of available-for-sale investment securities. At June 30, 2025, the Company had a net unrealized loss on its available for sale investment securities portfolio of $30.2 million, compared to a net unrealized loss of $41.0 million at December 31, 2024. The Company’s investment securities portfolio had an effective duration of 3.6 years and 3.9 years at June 30, 2025 and December 31, 2024, respectively.
Previous wording
The following table summarizes activity in the Company’s investment securities portfolio during the three months ended March 31, 2025.
Current wording
The following table summarizes activity in the Company’s investment securities portfolio during the six months ended June 30, 2025.
Previous wording
Deposits totaled $2.8 billion at March 31, 2025, an increase of $46.5 million, or 1.7%, compared to December 31, 2024. The following table summarizes the changes in the Company’s deposits from December 31, 2024 to March 31, 2025.
Current wording
Deposits totaled $2.9 billion at June 30, 2025, an increase of $127.5 million, or 4.6%, compared to December 31, 2024. The following table summarizes the changes in the Company’s deposits from December 31, 2024 to June 30, 2025.
Previous wording
The average rate paid on interest-bearing deposits was 2.51% for the first quarter of 2025, down 1 bps compared to the first quarter of 2024. At March 31, 2025, certificates of deposit maturing within the next 12 months totaled $708.2 million.
Current wording
The average rate paid on interest-bearing deposits was 2.52% for the second quarter of 2025, down 17 bps compared to the second quarter of 2024. At June 30, 2025, certificates of deposit maturing within the next 12 months totaled $781.9 million.
Previous wording
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $844.2 million at March 31, 2025 and $813.6 million at December 31, 2024. Public funds in excess of the FDIC insurance limits are fully collateralized.
Current wording
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $887.9 million at June 30, 2025 and $813.6 million at December 31, 2024. Public funds in excess of the FDIC insurance limits are fully collateralized.
Previous wording
On June 30, 2022, the Company issued$55.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due 2032. The Notes were issued at a price equal to 100% of the aggregate principal amount. The Notes have a stated maturity date of June 30, 2032 and bear interest at a fixed rate of 5.75% per year from and including the issue date to but excluding June 30, 2027. From June 30, 2027, the Notes will bear interest at a floating rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 282 basis points. The Notes may be redeemed by the
Current wording
On June 30, 2022, the Company issued$55.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due 2032. The Notes were issued at a price equal to 100% of the aggregate principal amount. The Notes have a stated maturity date of June 30, 2032 and bear interest at a fixed rate of 5.75% per year from and including the issue date to but excluding June 30, 2027. From June 30, 2027, the Notes will bear interest at a floating rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 282 basis points. The Notes may be redeemed by the Company, in whole or in part, on or after June 30, 2027. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.
Previous wording
The carrying value of the Notes was $54.5 million and $54.5 million at March 31, 2025 and December 31, 2024, respectively. The subordinated debt was recorded net of issuance costs and amortized using the straight-line method over five years.
Current wording
The carrying value of the Notes was $54.6 million and $54.5 million at June 30, 2025 and December 31, 2024, respectively. The subordinated debt was recorded net of issuance costs and amortized using the straight-line method over five years.
Previous wording
The average balance of total FHLB advances was $180.7 million for the first quarter of 2025, up $109.0 million compared to the first quarter of 2024. We reduced our FHLB advances in 2024 primarily due to our increased utilization of BTFP loans as an alternative source of funds.
Current wording
The average balance of total FHLB advances was $114.0 million for the second quarter of 2025, up $67.5 million compared to the second quarter of 2024. We reduced our FHLB advances in 2024 primarily due to our increased utilization of BTFP loans as an alternative source of funds. BTFP borrowings were paid off in the fourth quarter of 2024 and replaced with short-term FHLB advances.
Previous wording
The Company had $150.0 million short-term FHLB advances as of March 31, 2025, up $12.8 million, or 9.3%, compared to $137.2 million as of December 31, 2024. At March 31, 2025 and December 31, 2024, the Company had $13.3 million and $38.3 million in long-term FHLB advances, respectively, and $1.1 billion and $1.1 billion in additional FHLB advances available, respectively.
Current wording
The Company had $75.0 million short-term FHLB advances as of June 30, 2025, down $62.2 million, or 45.3%, compared to $137.2 million as of December 31, 2024. At June 30, 2025 and December 31, 2024, the Company had $13.2 million and $38.3 million in long-term FHLB advances, respectively, and $1.2 billion and $1.1 billion in additional FHLB advances available, respectively.
Previous wording
Total shareholders’ equity increased $6.7 million, or 1.7%, from $396.1 million at December 31, 2024 to $402.8 million at March 31, 2025. Shareholders' equity increased primarily due to net income of $11.0 million and a decrease in accumulated other comprehensive loss on available for sale investment securities, which were partially offset by cash dividends and share repurchases during the three months ended March 31, 2025.
Current wording
Total shareholders’ equity increased $12.7 million, or 3.2%, from $396.1 million at December 31, 2024 to $408.8 million at June 30, 2025. Shareholders' equity increased primarily due to net income of $22.3 million and a decrease in accumulated other comprehensive loss on available for sale investment securities, which were partially offset by cash dividends paid on the common stock and share repurchases during the six months ended June 30, 2025.
Previous wording
The Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At March 31, 2025, certificates of deposit maturing within the next 12 months totaled $708.2 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us.
Current wording
The Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At June 30, 2025, certificates of deposit maturing within the next 12 months totaled $781.9 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us.
Previous wording
In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale, the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Company’s stock in the FHLB as collateral for such advances. For the three months ended March 31, 2025, the average balance of outstanding FHLB advances was $180.7 million. At March 31, 2025, the Company had $163.3 million in total outstanding FHLB advances.
Current wording
In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale, the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Company’s stock in the FHLB as collateral for such advances. For the six months ended June 30, 2025, the average balance of outstanding FHLB advances was $147.2 million. At June 30, 2025, the Company had $88.2 million in total outstanding FHLB advances.
Previous wording
To meet the financing needs of its customers, the Company issues financial instruments which represent conditional obligations that are not recognized, wholly or in part, in the statements of financial condition. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments expose the Company to varying degrees of credit and interest rate risk in much the same way as funded loans. The same credit policies are used in these commitments as for on-balance sheet instruments. At both March 31, 2025 and December 31, 2024, the Company's allowance for credit losses on unfunded commitments totaled $2.7 million.
Current wording
To meet the financing needs of its customers, the Company issues financial instruments which represent conditional obligations that are not recognized, wholly or in part, in the statements of financial condition. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments expose the Company to varying degrees of credit and interest rate risk in much the same way as funded loans. The same credit policies are used in these commitments as for on-balance sheet instruments. At both June 30, 2025 and December 31, 2024, the Company's allowance for credit losses on unfunded commitments totaled $1.7 million and $2.7 million, respectively.
Previous wording
Net income for the first quarter of 2025 was $11.0 million, up $1.8 million compared to the first quarter of 2024. Diluted EPS for the first quarter of 2025 was $1.37, up $0.23 compared to the first quarter of 2024.
Current wording
Net income for the second quarter of 2025 was $11.3 million, up $3.2 million, or 39.6%, compared to the second quarter of 2024. Diluted EPS for the second quarter of 2025 was $1.45, up $0.43 compared to the second quarter of 2024.
Previous wording
During the three months ended March 31, 2025, the Company provisioned $394,000 to the allowance for loan losses primarily due to loan growth. During the three months ended March 31, 2024, the Company provisioned $141,000 to the allowance for loan losses primarily due to loan growth.
Current wording
During the three and six months ended June 30, 2025, the Company provisioned $489,000 and $883,000, respectively, to the allowance for loan losses primarily due to loan growth. During the three and six months ended June 30, 2024, the Company provisioned $1.3 million and $1.4 million, respectively, to the allowance for loan losses primarily due to loan growth.
Previous wording
Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Company’s net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s tax-equivalent net interest spread was 3.10% and 2.81% for the quarters ended March 31, 2025 and 2024, respectively.
Current wording
Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Company’s net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s tax-equivalent net interest spread was 3.21% and 2.77% for the quarters ended June 30, 2025 and 2024, respectively, and 3.16% and 2.79% for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
The Company’s tax-equivalent net interest margin, which is net interest income as a percentage of average interest-earning assets, was 3.91% and 3.64% for the quarters ended March 31, 2025 and 2024, respectively. For the same periods, the average loan yield was 6.43% and 6.18%, respectively.
Current wording
The Company’s tax-equivalent net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.04% and 3.66% for the quarters ended June 30, 2025 and 2024, respectively. For the same periods, the average loan yield was 6.50% and 6.28%, respectively.
Previous wording
Acquired loan discount accretion included in interest income totaled $356,000 and $525,000 for the quarters ended March 31, 2025 and 2024, respectively.
Current wording
Acquired loan discount accretion included in interest income totaled $356,000 and $490,000 for the quarters ended June 30, 2025 and 2024, respectively. The net interest margin for the six months ended June 30, 2025 and 2024 was 3.98% and 3.65%, respectively. For the same periods, the average loan yield was 6.46% and 6.23%, respectively.
Previous wording
Noninterest income for the first quarter of 2025 totaled $4.0 million, up $460,000, or 13.0%, from $3.5 million earned for the same period in 2024. Noninterest income increased over the comparable periods primarily due to increases in gain on the sale of loans (up $290,000 primarily due to gain on sale of SBA loans), other income (up $97,000), and service fees and charges (up $55,000).
Current wording
Noninterest income for the six months ended June 30, 2025 totaled $7.7 million, up $421,000, or 5.8%, from $7.3 million earned for the same period in 2024. Noninterest income increased over the comparable periods primarily due to an increase in gain on sale of loans (up $278,000, primarily due to gain on sale of SBA loans) and service fees and charges (up $161,000), which were partially offset by a decrease in other income (down $46,000, primarily due to the absence of derivative fee income).
Previous wording
Income tax expense for the three months ended March 31, 2025 totaled $2.8 million compared to $2.2 million for the three months ended March 31, 2024. Income tax expense increased over the prior comparable quarter primarily due to increased taxable earnings. The Company's effective tax rates for the first quarters of 2025 and 2024 were 20.5% and 19.6%, respectively.
Current wording
Income tax expense for the three and six months ended June 30, 2025 totaled $2.8 million and $5.7 million, respectively, compared to $2.0 million and $4.2 million for the three and six months ended June 30, 2024, respectively. Income tax expense increased over the prior comparable quarter primarily due to increased taxable earnings. The Company's effective tax rates for the second quarters of 2025 and 2024 were 20.0% and 19.5%, respectively. For the six months ended June 30, 2025 and 2024, the Company's effective tax rates were 20.3% and 19.5%, respectively.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines.
Previous report — wording carried elsewhere
Company, in whole or in part, on or after June 30, 2027. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.