Outstanding Financial Performance
The company exceeded earnings expectations with an adjusted 20% return on average tangible common equity, a 1.3% ROA, and a sub-50% efficiency ratio. Core EPS grew 7.6% annually since 2018.
Strong Deposit and Loan Growth
Core deposits grew 5.8% annualized, and total loans grew 3.1% annualized excluding Bremer. The loan-to-deposit ratio is 87%, and tangible book value per share increased by 4% from 2Q and 10% over the last year.
Successful Integration of Bremer Bank
The systems conversion and branding for the Bremer Bank partnership were completed successfully, and the full quarter impact of Bremer operations contributed to financial results.
Improved Credit Metrics
Criticized and classified loans decreased by 6%, and there was a meaningful decline in thirty-plus day delinquencies.
Share Repurchase and Capital Management
The company repurchased 1,100,000 shares late in the quarter and increased capital by 28 basis points, despite merger-related charges.