Financial Performance - Net income for Q1 2025 was 2.7million,withdilutedearningspershareof0.42, a 27% increase compared to the prior year[7]. - Noninterest income increased by 3.9% year-over-year to 4.1million,drivenbygainsonmortgageloansandcommercialloanswaprevenue[12].−Operatingexpensestotaled12.4 million, including 726,000inmerger−relatedexpenses,resultingina3.50.15 per share, yielding approximately 3.16% and representing 45% of earnings, with expectations to normalize the payout ratio to around 30%[33]. - Tangible book value per share increased by 5.8% year-over-year, but decreased by 0.21fromthepreviousquarterduetomergerimpacts[30].−Thecompanyplanstocontinueincreasingitsdividendpolicyoverthecomingyears[60].−EarningsimprovementandAOCIareexpectedtodrivecapitallevelsstabletohigher[60].LoanandDepositGrowth−Loangrowthforthequarterwas97 million, representing a 9.8% increase from the prior year, marking the fourth consecutive quarter of sequential loan growth[8]. - Total loans ended the quarter at 1.09billion,withanetinterestmarginimprovementto3.456 million in low-cost deposits and a 19millionloanbook,enhancingthecompany′smarketpositioninOttawaCounty,Ohio[13].−Depositsgrewover1056 million from the Marblehead acquisition, with core deposit growth of just under 5% for an annualized growth rate of 15%[15]. - Loan growth is projected at 8% to 10% for the year, including Marblehead's 20millioncontribution[42].−Thecompanyanticipatesacoredepositgrowthof46.1 million, representing 41 basis points of total assets[20]. - Total delinquencies decreased to 54 basis points, with a total provision expense of 387,000forthequarter[31].−Thereserveleveliscurrentlyat141 million, with expectations to provision quarterly to keep pace with anticipated loan growth[55]. Strategic Initiatives - The digital banking strategy includes appointing a Digital Banking Officer to enhance cybersecurity and client care initiatives[17]. - The company is optimistic about capital management, focusing on rebuilding post-merger and considering future M&A opportunities[59]. - CET1 capital level remains above 12%, indicating stability and potential for buybacks[60]. Future Outlook - The company anticipates a stronger summer volume in mortgage originations, with a current pipeline of approximately 50million[9].−Themortgagepipelineiscurrentlyinthelow50s,withexpectationstoachievearound380 million in mortgage volume for 2025[45]. - The gain on sale margins have remained stable in the range of 220millionto225 million[46]. - The next earnings report is scheduled for July, covering the second quarter of 2025[63].
