Key Takeaways STNE's client deposits reached R$9 billion in Q3 2025, up 32% year over year, as Pix adoption accelerated.STNE saw Pix transaction volume jump 64% year over year, outpacing cards and driving stronger deposit inflows.STNE shifted 84% of retail deposits to time deposits via cash sweep, targeting 75-125 bps annual net benefit.In the first nine months of 2025, StoneCo Ltd.’s ((STNE) deposit growth was fueled by rising Pix (Brazilian instant payment ecosystem) usage, strategic bundling and its cash ...

Company Overview - Regions Financial has $160 billion in assets and operates over 1,200 branches, with a strong presence in the South, Midwest, and Texas [1] - The company has achieved a 5-year deposit growth that surpasses the industry average, with the lowest total and interest-bearing deposit costs among its peers [1] - Regions is focused on making strategic investments in priority markets to enhance growth opportunities [1] Leadership Team - David Turner has been the CFO of Regions since 2010 and is part of the executive leadership team [2] - Brian Willman leads the Corporate Banking Group, which encompasses commercial banking, large corporate, and capital markets, and has been with Regions since 2009 [2] - Kate Danella heads the Consumer Banking Group, which includes retail banking, mortgage, indirect lending, and partnerships, and joined Regions in 2015 after 13 years at the Capital Group [2]

Core Insights - Endeavor Bancorp reported a net income of $1.73 million, or $0.46 per diluted share, for Q3 2025, showing significant growth compared to $1.07 million, or $0.28 per diluted share, in Q2 2025 and $924,000, or $0.24 per diluted share, in Q3 2024 [1][2][19] Financial Performance - The company achieved a core pre-tax earnings of $2.86 million, a 25.4% increase from $2.28 million in the previous quarter and a 47.9% increase from $1.93 million in Q3 2024 [2][19] - Total interest income was $12.2 million, up $546,000 from the previous quarter, while net interest income rose to $7.7 million, reflecting a 4.0% increase from Q2 2025 and a 29.8% increase from Q3 2024 [3][19] - Non-interest income reached $401,000, marking a 45.6% increase from the previous quarter and an 84.8% increase from $217,000 in Q3 2024 [5][19] Asset Quality and Management - The provision for credit losses was $396,000, down from $746,000 in Q2 2025 and $609,000 in Q3 2024, indicating improved credit risk management [2][19] - Total loans outstanding increased by $6.7 million, or 1.1%, to $632.6 million, and non-performing loans decreased to 0.21% of the total loan portfolio [9][10][19] Balance Sheet Strength - Total assets grew by $13.3 million, or 1.8%, to $760.2 million, and total deposits increased by $10.9 million, or 1.6%, to $678.3 million [8][10][19] - Shareholders' equity rose to $51.0 million, with tangible book value per share increasing to $14.21 [12][19] Capital Ratios - The Tier 1 leverage ratio was 10.15%, while the Tier 1 risk-based capital ratio was 10.32%, both well above regulatory minimums [13][21]

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, a slight decrease from $26.4 million or $0.51 per diluted share in Q2 2025 [7] - Annualized return on assets (ROA) was 0.97% and return on average tangible common equity (ROATCE) was 11.45% [7] - Net interest income increased to $100.6 million from $98.3 million in the previous quarter, with a net interest margin of 4.2% compared to 4.18% in Q2 2025 [7][8] - Year-over-year tangible book value per share increased by 9.3% from $19.28 to $21.08 [11] Business Line Data and Key Metrics Changes - Non-interest income decreased to $5 million in Q3 2025 from $5.8 million in Q2 2025, primarily due to write-downs on foreclosed assets [9] - Non-interest expenses rose to $73.1 million from $70 million in the previous quarter, driven by increased salaries and benefits [10] Market Data and Key Metrics Changes - The company experienced a $50 million increase in payoffs compared to the previous quarter, with 44% of payoffs related to the sale of collateral and 25% due to refinancing elsewhere [19] - Loan originations were up 62% year-to-date compared to the same period last year, with a total of $500 million originated in the last quarter [21] Company Strategy and Development Direction - The company aims to grow by focusing on quality assets, protecting margins, and enhancing full client relationships [6] - The management expressed confidence in their ability to defend and potentially improve their net interest margin by adhering to their core relationship banking model [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains stable despite some charge-offs, with a comfortable reserve level based on their portfolio [4] - The company is positioned to take advantage of market disruptions and is focused on maintaining a strong balance sheet to support growth [12] Other Important Information - The company repurchased shares and paid down $30 million of subordinated debt after the quarter ended [5] - Total risk-based capital was reported at 16.33%, up from 15.98% in the previous quarter [11] Q&A Session Summary Question: What is driving the payoffs and paydowns? - Management indicated that payoffs were $50 million higher than the previous quarter, with a significant portion related to collateral sales and refinancing elsewhere [19] Question: What are the current credit concerns? - Management stated that they conduct stress testing and monitor portfolios closely, emphasizing a careful approach to credit management [24][25] Question: What are the drivers behind deposit growth? - 51% of new deposits were from new customers, reflecting increased brand awareness and market share gains [28] Question: What are the expectations for seasonal deposit strength in Q4? - Management acknowledged historical seasonal strength but noted it is difficult to predict exact amounts [36][38] Question: What makes the current expense level an outlier? - The increase in expenses was attributed to severance payments and elevated medical insurance costs, with expectations for a return to previous levels in Q4 [40][42] Question: How does the company plan to manage net interest margin? - Management plans to focus on lowering deposit costs and is optimistic about defending the current margin level [46][48] Question: What are the expectations for loan growth and M&A activity? - Management expressed confidence in loan growth in the coming quarters and indicated ongoing discussions regarding potential M&A opportunities while being cautious about balance sheet protection [60][61]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $20.1 million or $0.99 per diluted share for Q3 2025, reflecting strong financial results [4] - Return on average assets (ROAA) and return on average equity (ROAE) improved to 132 basis points and 13.31% respectively, both up notably from previous periods [5] - Full year 2025 guidance for ROAA is now expected to exceed 115 basis points, up from 110 basis points, and ROAE is expected to be greater than 12%, up from 11.25% [5] Business Line Data and Key Metrics Changes - Loan growth was 1.2%, driven by commercial lending, while total deposits increased by 3.9% [4] - Total commercial loans reached approximately $3 billion, reflecting a 1.6% increase from the previous quarter and an 8.3% increase year over year [6] - Consumer indirect balances increased by 0.6% from the previous quarter but were down 4.1% year over year [9] Market Data and Key Metrics Changes - The company experienced strong commercial growth in Upstate New York, particularly in the Syracuse region, supported by significant investments in the area [7] - The housing market remains tight in Rochester and Buffalo, with home prices continuing to rise, although new listings and inventory have increased year over year [10] Company Strategy and Development Direction - The company aims for profitable organic growth and anticipates a strong finish to 2025, with incremental performance expected in 2026 [25] - The opening of a satellite office in Sarasota, Florida, is part of the strategy to better serve clients and tap into new markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining momentum heading into 2026, anticipating that pent-up demand for credit will be released with future rate cuts [8] - The company is focused on expense management to maintain positive operating leverage and a favorable efficiency ratio [22] Other Important Information - The company expects total deposits at year-end 2025 to be generally flat compared to the previous year [14] - Noninterest income for the year is expected to exceed the original guidance of up to $42 million [21] Q&A Session Summary Question: Margin outlook with potential rate cuts - Management indicated that while margins may decline modestly in the fourth quarter, they expect a recovery in 2026 as new loan production and cost management continue [27][30] Question: Buyback activity - Management expressed satisfaction with the board's approval of the buyback plan, indicating it as an option to support shares [31] Question: Loan growth expectations - Management is optimistic about achieving mid-single-digit growth rates as they build out their financial plan for 2026 [32][33]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June quarter, but up $0.28 from the same quarter a year ago [5] - Net interest margin for the quarter was 3.57%, up from 3.47% in the linked quarter and from 3.34% in the year-ago quarter [7] - Non-interest income decreased by 9.7% or $707,000 compared to the linked quarter, but was offset by a 3.6% decrease in non-interest expense [6][25] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, with a year-over-year increase of $225 million or 5.7% [8] - The growth in loans was led by non-owner occupied commercial real estate, one to four family residential, commercial and industrial, and multifamily loans [8] - Deposit balances were relatively flat compared to the linked quarter but increased by $240 million or 5.9% over the last twelve months [9] Market Data and Key Metrics Changes - The company experienced strong growth in its East Region, particularly in agricultural activity, with the South Region also showing good growth [8] - The loan pipeline anticipated to fund in the next ninety days remains strong, totaling about $195 million as of September 30 [8] 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 [9] - The management is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and plan for restructuring where necessary [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance in the new fiscal year, citing good momentum on pre-provision net revenue [5] - The company is monitoring economic conditions closely and has increased reserves for watch list agricultural borrowers due to prolonged weakness in the agricultural segment [20] Other Important Information - Tangible book value increased to $43.35 per share, up $5.9 or 13.3% over the last twelve months, attributed to earnings retention and improvements in the bank's unrealized loss in the investment portfolio [10] - The company repurchased just over 8,000 shares at an average price of just under $55, totaling $447,000 [10] 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, indicating a return to more historical delinquency levels [36][37] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability sensitive but anticipates a net benefit of 1% to 3% net interest income per 100 basis points of rate cuts [39] 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 [47] Question: Buyback activity and M&A discussions - Management anticipates being more aggressive in share buybacks given current pricing and has ongoing discussions regarding potential M&A opportunities [53]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net earnings of $52.6 million or $0.38 per share, an increase from $50.6 million or $0.37 per share in Q3 2024, marking a $2 million quarter-over-quarter increase primarily due to a $4 million growth in net interest income [5][6][12] - The return on average tangible common equity was 14.11% and return on average assets was 1.35% for Q3 2025 [6] - Pretax pre-provision income was $70 million, up $1.2 million or 2% compared to Q3 2024 [6] Business Line Data and Key Metrics Changes - Net interest income for Q3 2025 was $115.6 million, compared to $111.6 million in Q2 2025 and $113.6 million in Q3 2024 [15][16] - Non-interest income was $13 million in Q3 2025, which was $1.7 million lower than Q2 2025, but increased by $260,000 when excluding legal settlements and losses [8][10] - Total loans at September 30, 2025, were $8.47 billion, reflecting a $112 million or 5% annualized increase from Q2 2025, driven by growth in various loan categories [10][11] Market Data and Key Metrics Changes - Total deposits and customer repurchase agreements totaled $12.6 billion, a $170 million increase from Q2 2025 and $108 million higher than Q3 2024 [8][9] - Non-interest bearing deposits grew by $108 million compared to Q3 2024, while interest-bearing non-maturity deposits and customer repos increased by an additional $100 million [10] Company Strategy and Development Direction - The company continues to focus on banking small to medium-sized businesses and their owners through all economic cycles, maintaining a strong commitment to profitability and dividend payments [75] - The company is actively pursuing M&A opportunities, having recently hired a team of bankers to open a new office in the Temecula Murrieta area, indicating a strategy to expand its market presence [32][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining low single-digit loan growth for the year, with strong pipelines and opportunities despite competitive pressures in pricing [37][41] - The economic forecast indicates lower GDP growth and a slightly lower unemployment rate, with expectations of continued challenges in the commercial real estate market [19] Other Important Information - The company experienced a legal settlement of $6 million, which was offset by an $8.2 million loss on the sale of low-yielding AFS securities [6][20] - The allowance for credit loss was $79 million at September 30, 2025, representing 0.94% of gross loans, reflecting a slight increase from the previous quarter [17] Q&A Session Summary Question: Interest bearing deposit costs and beta cycle - Management noted that the recent rate cuts have not yet fully impacted deposit costs, but they plan to match Fed rate decreases with reductions in money market rates [29][30] Question: Update on M&A dialogue - Management confirmed ongoing discussions regarding M&A opportunities but indicated that no imminent deals are in place [31] Question: Loan growth expectations - Management expressed confidence in maintaining low single-digit growth, with strong pipelines and opportunities, excluding seasonal impacts from dairy loans [36][38] Question: Pricing competition in loans - Management stated they are willing to compete on price for the right relationships, acknowledging aggressive competition from larger banks [40][58] Question: Impact of interest rate swaps - Management indicated that the current interest rate environment may negatively impact net interest income, but they plan to maintain their swap arrangements as a hedge [52] Question: Cash balances and deployment - Management acknowledged the buildup of cash balances and indicated potential deployment into bonds depending on market conditions [68][71] Question: Expense management heading into 2026 - Management confirmed a continued focus on closely managing expenses, with plans to invest in technology while maintaining low single-digit growth expectations [72][74]

Financial Data and Key Metrics Changes - The company reported a net income of $100 million for Q3 2025, a 25% increase from $80 million in Q2 2025, with adjusted earnings per share growing 13% year-over-year [4][11] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [11] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024, and net interest margin was 4.57%, up 32 basis points over the last four quarters [14][15] Business Line Data and Key Metrics Changes - Total loans grew by $181 million, or 5.6% annualized, surpassing $13 billion for the first time since 2010 [5] - The company experienced a slowdown in consumer credit demand, particularly in the auto industry, which saw a 7% decline in total retail sales year-to-date [6][7] - Commercial and construction lending segments showed growth, helping to mitigate the slowdown in consumer lending [7] Market Data and Key Metrics Changes - The company noted a 17% decrease in auto sales compared to Q3 2024, impacting overall loan origination in that sector [6] - The competitive landscape for deposits remains challenging, with higher competition for new flows, particularly from affluent customers [7][8] Company Strategy and Development Direction - The company plans to continue executing a growth strategy focused on organic growth and regional diversification [9][10] - A new $200 million share buyback program was authorized, reflecting the strategy of returning 100% of annual earnings to shareholders [8][22] - The company is exploring potential M&A opportunities in the Florida market, seeking franchises that complement its existing operations [45][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resiliency of the labor market in Puerto Rico and the ongoing expansion of the manufacturing sector, which is expected to support local economies [9] - The company anticipates loan growth guidance for the year to be in the 3%-4% range, influenced by the evolving rate environment and auto sales normalization [10][65] - Management highlighted the importance of monitoring trade dynamics and potential impacts from federal government actions on the business environment [8][9] Other Important Information - The company reported a 7% reduction in non-performing assets and stable credit quality trends [7][19] - The effective tax rate for 2025 is estimated at 22.2%, reflecting expected improvements from operational changes [85] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management confirmed that while there will be no further reversals at the same level, there will be ongoing benefits from normal operating losses offsetting revenues [26] Question: What is the health of the consumer in Puerto Rico? - Management noted that while auto sales are normalizing, credit demand has been lower, but overall consumer credit trends remain stable [30] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs, but noted that the timing of these reductions may lag behind asset repricing [41] Question: How does credit performance at other banks influence reserving? - Management stated that they maintain a firm risk appetite and focus on their own portfolio performance rather than industry-wide trends [42] Question: What is the outlook for loan growth into Q4? - Management reiterated guidance of 3%-4% loan growth for the year, with a strong pipeline in commercial lending [65] Question: Can you elaborate on competitive pressures in the deposit market? - Management indicated that competitive pressures are primarily from smaller players and that they are focusing on operational accounts and additional services to maintain relationships [38] Question: What is the expected impact of onshoring on Puerto Rico's economy? - Management believes that while short-term impacts may be limited, long-term benefits from onshoring will support the economy [56]

Financial Data and Key Metrics Changes - Net interest income increased by $1.5 million compared to the second quarter and by $5 million year-over-year [4] - Net income rose by $3.5 million, or 43%, compared to Q3 of 2024 [5] - Return on average assets improved by 28 basis points to 1.16% compared to 0.88% in the third quarter of last year [5] - Earnings per share increased to $0.47 in the third quarter, a 46% increase compared to Q3 a year ago [5] - Return on tangible common equity was reported at 12.35% [5] Business Line Data and Key Metrics Changes - Loans increased by $47 million for the second quarter, or 5.6% annualized, and grew by $286 million, or over 9%, year-over-year [8] - C&I loans grew by $194 million, and owner-occupied commercial real estate loans increased by $40 million [8] - Specialized lending groups now constitute 16% of total loans, with no single niche exceeding 5% of total loans [5] - Non-performing assets declined to 36 basis points compared to 40 basis points at June 30 and 47 basis points one year ago [11] Market Data and Key Metrics Changes - Deposit balances increased by over $55 million during the quarter, or an annualized 7% [9] - Average cost of deposits declined by 3 basis points to 2.69% for the quarter [9] - Average non-interest-bearing deposits grew by $21 million during the quarter and by $52 million year-to-date [15] Company Strategy and Development Direction - The company is evolving into a middle-market commercial bank, focusing on relationship-driven strategies rather than growth for its own sake [19] - New branch openings and strategic closures are part of the company's efforts to optimize its branch network [17] - The company aims to maintain a balance between growing deposits and managing costs effectively [15] Management's Comments on Operating Environment and Future Outlook - The economic outlook remains uncertain, but the company is well-positioned for various rate environments [7] - Management is focused on maintaining credit quality despite some softness in the small business segment [6] - The company anticipates a modest increase in expenses due to new branches but aims to keep overall costs flat [35] Other Important Information - Non-interest income totaled $2.4 million in Q3 2025, down from $2.7 million in Q2 [12] - The efficiency ratio improved to 52%, remaining below 60% for the 25th consecutive quarter [13] - The company repurchased almost 120,000 shares at an average price of $14.91 during the quarter [7] Q&A Session Summary Question: Discussion on expenses and efficiency actions - Management highlighted ongoing focus on cost control while balancing investment opportunities, with no major new costs anticipated [32][34] Question: Margin and deposit cost adjustments following Federal Reserve cuts - Management indicated that adjustments to deposit costs will be made in response to Federal Reserve actions, aiming for a neutral impact on margins [38][39] Question: Capital levels and buyback considerations - The company maintains a soft limit on total risk-based capital ratio around 11.5% and is open to capital deployment through buybacks depending on market conditions [43][44]

Net Interest Income & Margin - Net interest income is expected to continue to grow at double digits into the end of this year and next year [2] - Net interest margin guidance is between 3 and 5 basis points [2] Regional Economic Activity & Lending - Central New York is experiencing strong employment growth, even before the Micron investment [4] - Manufacturing is strong from Western New York through Massachusetts up to northeastern Pennsylvania, driving growth [5][6] - The company is seeing increased activity from contractors and subcontractors preparing for site work, beginning in November [5] Credit Quality & Loan Provisions - Credit quality is very good in the company's markets [7] - The company lowered loan provisions due to strong housing and commercial lending markets [6][7] - The company is not seeing signs of stress in credit markets, except for temporary weakness related to Canadian tourism in Vermont and northern New York [8]