The financial institution has reported a series of positive outcomes across multiple key metrics, reflecting robust operational efficiency and strategic growth. The quarterly earnings per share (EPS) increased by 3% compared to the previous quarter and surged by 28% year-over-year. This performance was complemented by a rise in operating net income, which grew by 5% sequentially and 29% annually. Additionally, the return on tangible common equity (ROTC) improved marginally by 2 basis points from the last quarter and significantly by 103 basis points over the past year.

A closer examination reveals that fee-based revenues expanded by 8% quarter-over-quarter, while operating expenses declined by 2% during the same period and by 6% year-over-year. The bank's non-performing loans remained stable at 52 basis points of total loans, indicating effective risk management. Moreover, the capital adequacy ratios, including CET1 and TCE, stood strong at 13.0% and 9.4%, respectively, ensuring solid financial health. Notably, average deposits saw a modest increase of 3% linked quarter, underscoring customer confidence in the institution.

The leadership team provided valuable insights into the factors driving these improvements. According to the CEO, commercial lending, particularly in the commercial and industrial (C&I) sector, has been a significant contributor to loan growth. Despite the addition of senior bankers, the average loan size and relationship have remained consistent, maintaining disciplined credit practices. The bank anticipates that continued deposit growth will help offset any maturing wholesale funding, with contributions from various channels, including digital platforms. Furthermore, the management expressed optimism about managing upcoming office portfolio maturities, citing minimal exposure to criticized credits in the near term.

Looking ahead, the bank remains focused on maintaining its positive trajectory. The COO highlighted the promising growth in digital deposits, which have reached over $60 million, priced competitively with retail and commercial offerings. Expense management is expected to continue its positive momentum into the next year. Regarding mergers and acquisitions, the CEO noted that while regulatory approvals could accelerate under the new administration, the merger with Brookline Bancorp is still anticipated to close by the end of the third quarter of 2025, possibly sooner. Overall, these developments underscore the bank's commitment to sustainable growth and prudent financial management.