Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4] - Net interest income increased by $7.4 million or 7% year-over-year, driven by improving deposit costs and growth in higher yielding commercial loans [14] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [12][13] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes, with existing home sales at their lowest level in over 30 years [6][7] - Hilltop Securities Inc. generated pre-tax income of $26.5 million on net revenues of $144.5 million, with a pre-tax margin of 18% [7][8] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows from large balance customers [5] - Mortgage revenues declined by $3.4 million year-over-year, with origination volumes stable but gain on sale margins improving by 8 basis points [17][18] - The fixed income business showed a 13% increase in net revenues year-over-year, reflecting robust industry volumes [8] Company Strategy and Development Direction - The company aims to increase market share despite elevated competition in Texas, focusing on core loan growth and managing interest expenses [5][22] - Hilltop Securities continues to invest in core areas of expertise, leveraging its national brand built on trust [9] - The leadership transition at PlainsCapital Bank is seen as an opportunity for continued growth while maintaining the bank's legacy and credit culture [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to manage credit risks and maintain a conservative credit culture despite competitive pressures [22][23] - The outlook for 2025 reflects current assessments of the economy and market conditions, with a focus on producing quality outcomes for clients and communities [24] - Management anticipates continued challenges in the mortgage market but expects gradual improvement into 2026 [18] Other Important Information - Hilltop maintains strong capital levels with a common equity tier one capital ratio of 20% and tangible book value per share increased by $0.67 to $31.23 [9] - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [9] Q&A Session Summary Question: NII guidance and near-term outlook - Management explained that the NII guidance was not increased due to expected rate cuts and potential paydowns impacting loan growth [26][28] Question: Stock buyback strategy and M&A outlook - Management confirmed a consistent approach to share repurchases given excess capital and discussed opportunities in the Texas market for potential M&A [30][31] Question: Auto portfolio exposure - Management addressed concerns regarding the auto portfolio, noting a reduction in commitments and ongoing workout efforts for non-accrual clients [32][33] Question: Broker-dealer fee income - Management highlighted strong performance in public finance and other segments, but anticipated a reversion to lower pre-tax margins in the future [42][44] Question: Effects of government shutdown - Management indicated no primary effects on the broker-dealer from the government shutdown, but noted potential processing delays in mortgage and SBA areas [51][52]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4] - Net interest income increased by $7.4 million or 7% year-over-year, totaling $112 million, driven by improved deposit costs and growth in higher yielding commercial loans [14] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [12] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes, with existing home sales at their lowest level in over 30 years [6] - Hilltop Securities Inc. produced pre-tax income of $26.5 million on net revenues of $144.5 million, achieving a pre-tax margin of 18% [7] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows from large balance customers [5] - Average total deposits remained stable at approximately $10.5 billion year-over-year, with a focus on growing interest-bearing products [16] - Mortgage revenues declined by $3.4 million year-over-year, reflecting challenges in the mortgage banking sector due to higher interest rates and home prices [17][18] Company Strategy and Development Direction - The company aims to maintain strong capital levels with a common equity tier one capital ratio of 20% and plans to continue share repurchases to signal confidence in its stock [9][31] - Hilltop Securities is investing in core areas of expertise and leveraging its national brand to enhance client service [9] - The leadership team is focused on optimizing costs and productivity at PrimeLending while growing the client-facing sales team [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bank's ability to manage competition and maintain a conservative credit culture despite elevated market competition [5][22] - The outlook for 2025 reflects ongoing uncertainties in the market regarding interest rates and inflation, with a focus on producing quality outcomes for clients [24] - Management does not anticipate significant systemic risk across the portfolio but remains vigilant in assessing potential credit risks [13] Other Important Information - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [9] - A leadership transition is occurring at PlainsCapital Bank, with the promotion of Brent Randall to Chief Credit Officer [10] Q&A Session Summary Question: NII guidance and near-term outlook - Management explained that the NII guidance was not increased due to expected rate cuts and potential asset contraction, emphasizing the balance sheet's asset sensitivity [26][28] Question: Stock buybacks and M&A outlook - Management confirmed a consistent approach to share repurchases given excess capital and discussed opportunities for growth through M&A in the Texas market [30][31] Question: Auto portfolio exposure - Management addressed concerns about the auto portfolio, noting a reduction in commitments and ongoing workout efforts for non-accrual clients [32][33] Question: Broker-dealer fee income - Management highlighted strong performance in public finance and structured finance, while acknowledging that some fee growth may not be sustainable [42][43] Question: Effects of government shutdown - Management indicated no primary effects from the government shutdown on the broker-dealer, but noted potential processing delays in the mortgage space [51][52]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][18] - Non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][21] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans and 200% of non-performing loans [22] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, which would be 8.8% annualized [6] - Loan balances increased by $225 million or 5.7% over the last 12 months, led by non-owner occupied CRE, one-to-four family residential, C&I, and multifamily loans [6][7] - Deposit balances were relatively flat compared to the linked quarter, but up $240 million or 5.9% over the last 12 months [7] Market Data and Key Metrics Changes - Strong growth was experienced in the east region, where much of the agricultural activity is concentrated, with the south region following closely [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth in the upcoming quarters [7][20] - The company is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and utilize government programs to mitigate risk [17] - There is a modest uptick in M&A discussions, with the company well-positioned to act when the right partner is ready [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance in the new fiscal year, despite a larger provision for credit losses due to the evolving economic environment [3][23] - The company expects to remain liability-sensitive and a net beneficiary of rate cuts over the next four years [20] - Management noted that while charge-offs and non-performing loans have remained elevated, they are comparable to national averages for banks under $10 million [25] Other Important Information - The company repurchased just over 8,000 shares at an average price of just under $55 for a total of $447,000 [9] - Tangible book value increased by $5.09 or 13.3% over the last 12 months, attributed to earnings retention and improvement in the bank's unrealized loss in the investment portfolio [8][9] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels running similar to historical ranges [32][33] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability-sensitive and expects to be a net beneficiary of rate cuts, estimating a 1%-3% increase in net interest income per 100 basis points of rate cuts [34][35] Question: Update on loan pipeline and growth expectations - The loan pipeline remains consistent, with expectations for mid-single-digit growth for the fiscal year, though seasonal slowdowns are anticipated [41][43] Question: Appetite for buybacks and M&A activity - Management anticipates being more active in buybacks given current pricing and is exploring M&A opportunities, ideally targeting banks in the billion-dollar asset range [48][49]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][6] - Reported non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][21] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, which would be 8.8% annualized, with significant growth in non-owner occupied commercial real estate, one-to-four family residential, commercial & industrial, and multifamily loans [6][7] - Deposit balances were relatively flat compared to the linked quarter, but up $240 million or 5.9% over the last 12 months [7][8] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans and 200% of non-performing loans [23] Market Data and Key Metrics Changes - The company experienced strong growth in its east region, particularly in agricultural activity, while the south region also showed good growth [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth due to seasonal factors [7][20] - The management highlighted a modest uptick in M&A discussions, indicating a potential for attractive opportunities in the market [26][27] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance in the new fiscal year, citing good momentum on pre-provision net revenue [3] - The company is focused on improving credit quality and has been proactive in working with borrowers to mitigate risks [13][17] Other Important Information - The company repurchased just over 8,000 shares at an average price of just under $55 for a total of $447,000, with plans for more buybacks given current pricing [9][48] - The company has seen a general increase in agricultural production line utilization due to increased input costs, impacting the agricultural loan portfolio [15][16] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels trending back to historical ranges [32][33] Question: Bank's rate sensitivity and margin expansion - Management indicated that the bank remains liability-sensitive but expects to benefit from net interest income growth with potential rate cuts [34][35] Question: Update on loan pipeline and growth expectations - The company has a consistent pipeline and anticipates mid-single-digit growth for the fiscal year, with seasonal slowdowns expected [41][43] Question: Buyback activity and M&A discussions - Management anticipates being more active in buybacks due to current pricing and is exploring M&A opportunities, ideally targeting banks with assets around $1 billion [48][49]

Financial Performance - Net income increased by $1 million to $211 million in Q3 2025 compared to Q2 2025[3] - Net interest income increased by $15 million to $647 million in Q3 2025[4, 18] - Earnings per share (EPS) increased by $006 to $315 in Q3 2025[3] - Tangible book value per share increased by $371 to $7912[6] Balance Sheet - Loans held in portfolio grew by $502 million or 13% to $38687 million[3, 4, 62] - Total deposits decreased by $704 million or 11% to $66513 million[3, 4] - Common Equity Tier 1 decreased 12 bps to 1579%[6] Credit Quality - Non-performing loans (NPLs) increased by $190 million to $502 million, with the NPL ratio at 130% versus 082% in Q2 2025[3, 6] - The ACL-NPL ratio decreased to 157% from 247% in Q2 2025[3, 6] - Net charge-offs (NCO) ratio increased to 060% from 045% in Q2 2025[3, 6] Business Segment Performance - BPPR's loans held in portfolio increased by $357 million to $27131 million[7, 9] - Popular US's loans held in portfolio increased by $145 million to $11525 million[7, 9]

Core Insights - BankUnited, Inc. reported improved profitability for Q3 2025, achieving net income of $71.9 million, or $0.95 per diluted share, with an annualized return on average assets of 0.82% [2][6] - The company achieved a net interest margin of 3.00%, an increase from 2.93% in the previous quarter, driven by a favorable funding mix and a decrease in interest expenses [6][14] - Total loans decreased by $231 million in Q3 2025, with a notable decline in residential loans by $173 million, while the mortgage warehouse lending segment grew by $83 million [6][10] Financial Performance - For the nine months ended September 30, 2025, net income reached $199.1 million, or $2.63 per diluted share, representing a 21% increase in diluted earnings per share compared to the same period in 2024 [2][10] - The company’s total assets were reported at $35.1 billion as of September 30, 2025, with total deposits remaining relatively flat, declining by $28 million quarter-over-quarter [15][17] - The average cost of total deposits decreased to 2.38% from 2.47% in the previous quarter, reflecting a proactive approach to reduce deposit pricing [6][14] Loan Portfolio and Asset Quality - The core commercial and industrial (C&I) and commercial real estate (CRE) portfolio segments saw a net decline of $69 million, with the CRE portfolio growing by $61 million and the C&I portfolio declining by $130 million [4][5] - The allowance for credit losses (ACL) was $219.9 million, representing 0.93% of total loans, consistent with the previous quarter [7][8] - The annualized net charge-off ratio for the nine months ended September 30, 2025, was 0.26%, with total criticized and classified loans declining by $3 million [6][7] Capital Position - The Common Equity Tier 1 (CET1) ratio was reported at 12.5% as of September 30, 2025, indicating a robust capital position [6][8] - Book value per common share increased to $40.30, reflecting an 8% year-over-year increase in tangible book value per share [6][8] Interest Income and Expenses - Net interest income for Q3 2025 was $250.1 million, an increase from $246.1 million in the previous quarter, despite a slight decrease in interest income [10][18] - The yield on interest-earning assets remained stable at 5.38%, while the average rate paid on interest-bearing deposits decreased to 3.40% [14][18]

Financial Data and Key Metrics Changes - The third quarter reflected continued momentum in core earnings with net interest margin expanding by 11 basis points to 3.28% [4] - Customer fees, excluding net credit valuation adjustment, grew by $10 million, while adjusted expenses declined by $1 million, leading to an improved efficiency ratio of 59.6% [4] - Average loans and customer deposits increased by annualized rates of 2.1% and 3.1% respectively compared to the prior quarter [4] - Diluted earnings per share was $1.48 compared to $1.63 in the prior period and $1.37 in the year-ago period [5][6] - Adjusted non-interest income was $174 million for the quarter, representing a 6% increase versus the second quarter and an 8% increase versus the year-ago quarter [10] Business Line Data and Key Metrics Changes - Net interest income increased by $52 million, or 8%, relative to the third quarter of 2024, benefiting from fixed asset repricing and favorable shifts in the composition of average interest-earning assets [7][8] - Customer-related non-interest income was $163 million for the quarter, slightly down from $164 million in the prior period but up from $158 million one year ago [10] - Capital market fees, excluding net CVA, increased by 25% compared to the prior year period, driven by higher loan syndications and customer swap fee revenue [10] Market Data and Key Metrics Changes - Average loans increased by 2.1% annualized over the previous quarter and 3.6% over the year-ago period [12] - Average non-interest-bearing deposits grew approximately $192 million, or 0.8% compared to the prior quarter [13] - Total borrowings declined by $1.8 billion during the quarter, with short-term FHLB advances decreasing by $2.3 billion [14] Company Strategy and Development Direction - The company expects to continue producing positive operating leverage as revenue growth outpaces non-interest expense growth [19] - The outlook for customer-related fee income in the third quarter of 2026 is moderately increasing relative to the third quarter of 2025, driven by increased customer activity and new client acquisitions [11] - The company is focused on maintaining a strong capital position and is open to M&A opportunities, particularly smaller deals that enhance market density [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the recent credit issues are isolated incidents and emphasized the strength of their credit history [22][24] - The company anticipates continued loan growth driven by commercial loans, despite some recent paydowns and payoffs [56][59] - Management noted that the current regulatory environment is shifting towards a focus on solid regulation, which they view positively [72][74] Other Important Information - The company recorded a $49 million provision for credit loss, with net charge-offs in the quarter at $56 million, or 37 basis points of loans on an annualized basis [4][16] - The allowance for credit losses as a percentage of loans remains stable at 1.2% [17] - The common equity tier one ratio this quarter was 11.3%, indicating a strong capital position [18] Q&A Session Summary Question: Can you talk about the isolated incident regarding the charge this quarter? - Management reviewed the portfolio and believes it is an isolated incident, with no similar loans found [22][23] Question: How much fixed-rate asset repricing is factored into the NII guide outlook? - The guidance includes expectations for fixed-rate loans and securities, with potential yield increases embedded [27][28] Question: What is the outlook for operating leverage? - Management expects positive operating leverage but did not provide a specific range at this time [34][35] Question: How has loan demand changed over the last 90 days? - Loan spreads have improved slightly, and production has been up in most months this year compared to 2024 [65][66] Question: What is the company's current risk appetite? - The company will continue its historical underwriting practices, and the recent credit issues will not impact loan growth [80][81]

Financial Performance - Total Revenues for the fiscal year 2024.4-2025.3 reached 2,874,821 million yen[5], a slight increase from 2,814,361 million yen in the previous fiscal year[5] - Net Income Attributable to ORIX Corporation Shareholders for the fiscal year 2024.4-2025.3 was 351,630 million yen[5], compared to 346,132 million yen in the previous fiscal year[5] - Return on Equity (ROE) for the quarter 2025.4-6 increased to 10.4%[5] from 9.2% in the same quarter of the previous year[5] - Return on Assets (ROA) for the quarter 2025.4-6 increased to 2.53%[5] from 2.19% in the same quarter of the previous year[5] Segment Performance - Total segment profits reached 544,668 million yen[7], with an adjustment of -64,205 million yen[7] leading to an income before income taxes of 480,463 million yen[7] - Corporate Financial Services and Maintenance Leasing reported segment profits of 90,329 million yen[7] and segment assets of 1,884,565 million yen[7] - Real Estate segment profits were 70,541 million yen[7] with segment assets of 1,158,293 million yen[7], showing a segment asset ROA of 4.26%[7] - PE Investment and Concession segment profits amounted to 98,872 million yen[7] with segment assets of 1,022,944 million yen[7], resulting in a segment asset ROA of 6.96%[7] - Insurance segment profits were 74,399 million yen[7] with segment assets of 3,009,234 million yen[7], and a segment asset ROA of 1.80%[7] Asset and Funding - Total Assets reached 16,866,251 million yen[5], with Total Liabilities at 12,691,036 million yen[5] and Total ORIX Corporation Shareholders' Equity at 4,089,782 million yen[5] - The Shareholders' Equity Ratio stood at 24.2%[6], and the Debt-to-Equity Ratio was 2.1 times[6] - The company maintains strong liquidity, with a liquidity coverage ratio of 2,086%[86]

Financial Performance Highlights - Core net income reached $27 million in 2Q25[11] - Net interest income was $72.9 million in 2Q25[17] - The company's core return on average assets (ROAA) was 1.28% in 2Q25[24] - The core efficiency ratio was 49.21% in 2Q25[54] Deposit Portfolio - Total GAAP deposits reached $7.7 billion as of 2Q25[26] - Core deposits totaled $7.6 billion, with $1.2 billion in core political deposits[28] - Political deposits accounted for 15.6% of GAAP deposits[78] Loan Portfolio - Total loans amounted to $4.71 billion in 2Q25[45] - Mission-aligned loans constituted 86% of the total loan portfolio[47] - Pass-rated loans represented 97.9% of the loan portfolio[79] Investment Securities - Total investment securities book value was $3.5 billion[81] - Agency securities comprised 25.6% of the total investment securities portfolio[81] - Valuation loss as a percentage of the AFS portfolio was 2.4%[81] Capital and Equity - The tangible common equity (TCE) ratio was 8.60%[88] - Tangible book value (TBV) per share increased to $24.33[19]

Financial Data and Key Metrics Changes - The company reported net income of $19,800,000 for Q2 2025, an increase from $17,000,000 in the same quarter last year, translating to $1.72 per share compared to $1.45 per share previously [5][12] - Net interest income rose to $51,000,000, an 8.9% increase from $46,800,000 a year ago, with an annualized net interest margin improving to 3.68%, up 25 basis points from the previous year [7][12] - Non-interest income decreased to $8,200,000, down 16.5% from the prior year, primarily due to unusual items affecting both periods [14][15] Business Line Data and Key Metrics Changes - Gross loans totaled $4,600,000,000, a decline of 3.3% from the previous year, with significant payoffs impacting the loan portfolio [7][8] - The largest loan categories remained multifamily and commercial real estate lending, with outstanding construction loans at $367,000,000 [8] - Non-performing assets were $8,100,000, representing 0.14% of total assets, with no provision for credit losses recorded [9][20] Market Data and Key Metrics Changes - Total deposits decreased by $73,900,000 or 1.6% from the previous quarter, but increased by $78,600,000 or 1.7% compared to the end of 2024 [8][19] - The company experienced a reduction in brokered deposits, which contributed to the overall decrease in total deposits [8][19] Company Strategy and Development Direction - The company emphasized maintaining strong credit quality while pursuing relationship-driven loan growth to support long-term stability [11][21] - There is a focus on prudent risk management and disciplined expense management to enhance financial resilience [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for long-term growth but acknowledged a competitive lending environment with limited opportunities [26] - The company plans to continue managing expenses carefully, with some potential increases in technology-related costs anticipated [31][32] Other Important Information - The company redeemed $75,000,000 in subordinated notes to save on future interest costs [21] - A new stock repurchase authorization for an additional 1,000,000 shares was approved, with nearly 176,000 shares repurchased in Q2 2025 [22] Q&A Session Summary Question: Loan growth outlook for the second half of the year - Management is optimistic long-term but noted a competitive environment with limited origination opportunities in the near term [26][27] Question: Expected loan payoffs - Payoffs are unpredictable, and while there was a significant payoff in Q2, future payoffs are difficult to forecast [28][29] Question: Expense control for the second half of the year - Management expects expenses to remain consistent, with some minor increases due to technology investments and potential adjustments in compensation costs [30][31] Question: Rental income expectations - Rental income increased due to a larger OREO balance, and similar levels are expected unless leases expire [39][42] Question: Margin sustainability - Management indicated that while there may be slight improvements in margin, the termination of the interest rate swap in Q4 will present challenges [43][46]