Strong Net Interest Margin and Asset Quality
Despite a 96 basis point drop in the SOFR ninety-day average rate, the net interest margin only decreased by two basis points to 3.5%. Asset quality remained strong with past due loans at 16 basis points and non-performing loans at 13 basis points of total loans.
Improved Loan-to-Deposit Ratio
The loan-to-deposit ratio improved to 96% from 102% in 2024 and 110% in 2023, supported by a deposit mix of 25% non-interest-bearing deposits and 20% lower-cost deposits.
Growth in Key Fee Income Categories
Commercial deposit relationships led to an 18% increase in service charges, a 15% growth in payroll service offerings, and a 12% increase in mortgage banking income year-over-year.
Earnings and Book Value Growth
Earnings per share grew by 20% quarter-over-quarter. Tangible book value per share increased by 13% over the last four quarters, with a five-year compounded annual growth rate of 8.4%.
Deposit and Loan Growth
Annualized deposit growth was 9% for 2025, with a compounded annual growth rate of 11.8% over six years. Loans had a compounded annual growth rate of 10% over the same period.