Financial Data and Key Metrics Changes - The company reported net income of $10.2 million or $0.66 per diluted share, a 60% increase from Q1 2024 and a $275,000 increase from the previous quarter [4] - Pre-provision net revenue increased by $4.3 million or 47% compared to Q1 2024, and by $1.4 million or 11.9% from the linked quarter [4] - Net interest income for the quarter was $32.8 million, representing a $1.4 million or 4.5% increase from the linked quarter [5] - The efficiency ratio improved to 64.9% from 68.3% in the linked quarter and 73.8% in the prior year's first quarter [11] Business Line Data and Key Metrics Changes - The loan and lease portfolio grew at an annualized rate of 2.8% during the first quarter, with total loans and leases increasing by $22.8 million [11] - Non-interest income declined by $1.2 million or 12.8% compared to the linked quarter, primarily due to a decrease in gains on the sale of loans and other fees [10] - The company experienced a decline in non-interest expenses by $1.2 million or 4.1% from the linked quarter, attributed to reductions in compensation-related expenses [8][9] Market Data and Key Metrics Changes - Total deposits increased by $27 million or an annualized growth rate of 3.2%, with organic deposit growth of $67.1 million excluding brokered deposits [14] - The loan-to-deposit ratio was 95.8% at quarter-end, indicating a disciplined approach to managing loan growth [15] - The company noted a migration from non-interest bearing accounts to higher rate deposit accounts during the quarter [14] Company Strategy and Development Direction - The company aims to continue focusing on core deposit funding and reducing reliance on brokered funding, which is seen as a valuable characteristic contributing to profitability [16] - Management plans to maintain loan and lease rates higher to manage the loan-to-deposit ratio within a range of 90% to 95% [7] - The company is committed to increasing tangible common equity while balancing dividend payments and stock repurchases [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the economy across Ohio and Southeastern Indiana, with no signs of deterioration in credit quality [19] - The company anticipates low to mid-single digit loan growth for the remainder of 2025, tempered by economic uncertainties [20] - Management highlighted the importance of attracting low-cost deposits to support loan growth and overall profitability [68] Other Important Information - The company announced a quarterly dividend of $0.17 per share, representing an annualized yield of 3.48% [8] - A stock repurchase program was renewed, authorizing the repurchase of up to $13.5 million in outstanding shares [8] Q&A Session Summary Question: Margin inputs and funding opportunities - Management indicated there is still opportunity for margin expansion, expecting 4 to 5 basis points in the second quarter [26][27] Question: Expectations for fee income - Management expects a bounce back in fee income in the second quarter, particularly in mortgage and leasing [39] Question: Loan yield increase - The increase in loan yield was attributed to new loans repricing higher, with no unusual recoveries contributing [50] Question: Impact of economic conditions on borrowers - Management noted a cautious sentiment among borrowers due to economic uncertainties, potentially slowing CapEx spending [55] Question: Credit metrics outlook - Management remains optimistic about credit quality, with delinquencies down and a healthy allowance for credit losses [82]

Financial Data and Key Metrics Changes - Earnings per share (EPS) was $0.87 and net income was $33 million, both exceeding Q4 2024 and Q1 2024, significantly above consensus estimates [7] - Customer deposit growth was over 7% annualized, marking the seventh consecutive quarter of growth [7][10] - Net interest margin (NIM) expanded by four basis points to 3.81%, with funding costs decreasing [8][17] Business Line Data and Key Metrics Changes - Total loan growth was $93 million or 4.89% annualized, consistent with previous guidance [10] - Consumer loan growth was $12 million, driven by residential mortgage and home equity [11] - Commercial loan growth exceeded $81 million, primarily from commercial real estate and construction segments [12] Market Data and Key Metrics Changes - The majority of deposit growth came from consumer activities, with significant contributions from money market accounts [11] - The commercial and industrial (C&I) balances declined by $20 million, reflecting reduced automobile floor plan borrowings [13] Company Strategy and Development Direction - The company is focused on enhancing its deposit franchise, maintaining top quartile profitability, and ensuring high asset quality [6] - There is an emphasis on organic growth through hiring additional bankers and improving customer engagement [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties, supported by strong employee engagement and financial performance [6] - The outlook for loan growth remains positive, with expectations for mid-single-digit growth in the short term and high mid-single-digit growth in the latter half of 2025 [13][40] Other Important Information - The allowance for credit losses declined by approximately $2.5 million, ending the quarter at 1.26% of total loans [14] - Non-interest income declined by $700,000 due to seasonally lower customer activity [18] Q&A Session Summary Question: Thoughts on deals in the current environment and timing for crossing $10 billion without a deal - Management indicated ongoing conversations in the market and anticipated crossing $10 billion in the second half of the year, prepared for regulatory requirements [26] Question: Insights on spreads in C&I and CRE - Spreads in the C&I space remained stable, with hesitancy among customers due to economic uncertainty; CRE spreads faced pressure from larger banks becoming more aggressive [27][28] Question: Impact of tariffs on borrower base and credit trends - Management is actively monitoring credit risk related to tariffs and has seen stabilization in criticized and classified loans [36][39] Question: Expectations for loan yields and securities cash flows - New loan yields were around 6.75%, with expectations for continued support to the margin from securities and swaps [42][45] Question: Hiring expectations for the year - The company is focused on recruiting C&I bankers to support pipeline expansion, with a 15% increase in calling officers already achieved [52]

Core Insights - First BanCorp. reported a net income of $77 million ($0.47 per share) for Q1 2025, a slight increase from $76 million ($0.46 per share) in Q4 2024, indicating stable profitability [2][9] - The company experienced a net interest margin (NIM) expansion of 19 basis points to 4.52% in Q1 2025, driven by lower funding costs and improved yields on cash and investments [2][11] - Management maintained a mid-single-digit loan growth guidance for 2025, with expectations for growth to materialize in the second half of the year [3][4] Financial Performance - Net interest income increased by $3 million to $212 million in Q1 2025, benefiting from lower funding costs and improved yields [4][10] - The efficiency ratio improved to 49.6% from 51.6% in Q4 2024, reflecting better operational efficiency [2][12] - Total loans were slightly down, with originations reaching $1.2 billion in Q1 2025 [2][7] Capital Management - The company redeemed approximately $50 million in subordinated debentures, declared $29.6 million in dividends, and repurchased $22 million in common stock during Q1 2025 [2][9] - Tangible book value increased by 7% to $10.64 per share in Q1 2025, indicating a strengthening balance sheet [2][12] Credit Quality - Credit quality metrics remained stable, with early delinquencies decreasing by $21.8 million during Q1 2025 [4][12] - The allowance for credit losses increased by $3.4 million to $247.3 million, reflecting adjustments for projected economic uncertainties [12][30] Digital Transformation - The company advanced its digital transformation efforts by converting to a centralized FIS cloud for its core systems in Q1 2025 [5][8]

Financial Data and Key Metrics Changes - The company reported net income of $1,700,000 for the quarter, reflecting continued earnings pressure compared to $15,300,000 in the prior quarter [5][18] - Pre-tax income declined by $17,300,000 to $2,400,000 in the first quarter, driven by a higher provision for credit losses, a decline in net interest income, and increased non-interest expenses [18] - The allowance for credit losses increased to $129,500,000, representing coverage of total loans at 1.63%, up 19 basis points from the prior quarter [13][19] - Net interest income before provision totaled $65,600,000, decreasing from $70,800,000 in the prior quarter due to lower average interest-bearing cash balances and lower rates on loans [21] - The tangible common equity ratio decreased by two basis points to 11% at quarter end, while book value per share increased by $0.39 to $40.99 [20] Business Line Data and Key Metrics Changes - The commercial lending platform saw loans grow by $109,100,000 or 4.3% over the previous quarter [7] - Deposits grew by $146,200,000, largely through time deposits in digital and branch channels, enhancing the bank's liquidity strength [8] - Non-interest income increased to $8,200,000 for the first quarter, compared to $4,100,000 in the prior quarter, primarily driven by a separate account BOLI transaction [24] Market Data and Key Metrics Changes - The DC economy is diversified beyond the federal government, including educational institutions, a growing technology sector, and tourism, which supports long-term stability [9] - The company has modest exposure to government contracting and GSA-linked assets, reducing sensitivity to changes in federal budget spending [8] Company Strategy and Development Direction - The company is focused on preserving capital flexibility, improving portfolio quality, and managing through volatility while maintaining long-term franchise value [11][27] - There is an emphasis on executing a disciplined strategy to enhance franchise value and position the company as a leading community bank in the Greater Washington DC Metro Area [7][9] - The company plans to explore asset disposition strategies for office loans to address evolving valuation risks [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges sustained pressure on office property valuations and the need for adequate reserves in light of market uncertainties [10][11] - The company remains optimistic about the long-term strength of the Washington DC region despite current challenges [10] - Management is actively reassessing capital allocation priorities, including shareholder return strategies, to align with forward-looking earnings [11] Other Important Information - The company has a strong capital position, with Tier one leverage increasing by 37 basis points to 11.11% [19] - Average deposits have grown by $381,600,000 from a year ago, reflecting a stable funding base [20] - The company is seeing a robust pipeline in its C and I lending, indicating potential growth in that area [76] Q&A Session Summary Question: Can you provide more details on the reserve build related to the office portfolio? - The reserve increase was driven by updated assumptions regarding probability of default and loss given default, resulting in a $14,300,000 increase to the allowance for credit losses related to the performing office portfolio [34][36] Question: What is the outlook for the C and I portfolio growth? - All indications point to an increase in the C and I portfolio growth, supported by new team members and a robust pipeline [75][78] Question: How sensitive is the margin guidance to potential Fed rate cuts? - The forecast does not include changes to Fed rate cuts, and the company is relatively neutral to interest rate movements due to its loan book structure [42][43]

Financial Data and Key Metrics Changes - The company reported GAAP fully diluted earnings per share of $0.87, which represents a 135% increase compared to the fourth quarter and an 81% increase year-over-year [5] - Pre-provision net revenue for the first quarter was $9,400,000, or $1.22 per share, reflecting an 11% increase from the previous quarter [9] - The net interest margin for the quarter was 281 basis points, a 21 basis point increase from the linked quarter [9] Business Line Data and Key Metrics Changes - SBA originations grew during the first quarter, with gain on sale margins exceeding 10% [6] - Non-interest income increased by 56% compared to the linked quarter, driven largely by $424,000 of SBA gain on sale income [11] - The efficiency ratio for the quarter was 59.9%, an increase over the prior quarter, but expected to improve as net interest margin expands [12] Market Data and Key Metrics Changes - The company experienced elevated payoff activity of $200,000,000, which offset strong origination activity of $130,000,000 funded during the first quarter [6] - Core deposits grew by $43,000,000, including $28,000,000 in non-interest bearing deposits [7] - Brokered deposits declined by $81,000,000 relative to the fourth quarter, with a total reduction of $207,000,000 over the last twelve months [7] Company Strategy and Development Direction - The company is focused on expanding its SBA business and expects continued growth in SBA gain on sale activity throughout 2025 [6][11] - The addition of new deposit teams in the New York Metro Area is aimed at enhancing customer acquisition and deposit growth [14] - The company plans to selectively add professionals to achieve strategic goals, particularly in technology and banking [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about low single-digit loan growth for the full year despite a slower start [6][22] - The company anticipates continued margin expansion as maturing term deposits reprice to lower current rates [9][10] - Management expressed confidence in the company's ability to navigate changes in the SBA landscape while maintaining growth [37] Other Important Information - The company disposed of two nonperforming credits, which significantly reduced nonperforming assets as a percentage of total assets to 83 basis points [5] - The balance sheet remains well-capitalized and liquid, with total assets of $3,200,000,000 [13] - The company repurchased 29,924 shares at a weighted average price of $30.46 during the quarter [13] Q&A Session Summary Question: Update on new teams and their focus - The new teams are primarily focused on deposits, with both teams having books of business over $100,000,000 [19][20] Question: Loan pipeline and growth outlook - The company still expects low single-digit growth, with a robust pipeline despite some unexpected payoffs in the first quarter [22][23] Question: Core loan yield and margin expectations - The core loan yield for the quarter was approximately $6.40, with expectations for continued margin expansion [27][29] Question: SBA gain on sale and future expectations - Originations were better than expected, with the strongest quarter anticipated in Q4 [35] Question: Professional fees and expense outlook - Some professional fees are one-time investments that may shift into employee expenses, but elevated levels are not expected to continue [41] Question: Updates on remaining nonperforming assets - No material updates on the remaining loans, but management is optimistic about their status [45] Question: Share repurchase strategy - The company aims to balance share repurchases with the need to grow consolidated CET1 capital [52]

Old Second Bancorp (OSBC) Q1 2025 Earnings Call April 24, 2025 10:00 AM ET Company Participants James Eccher - President, CEO & Chairman of the BoardBradley Adams - EVP, COO & CFOChristopher Mcgratty - MD & Head of U.S. Bank ResearchTerry Mcevoy - Managing DirectorDavid Long - Managing DirectorBrian Martin - Director - Banks & Thrifts Conference Call Participants Nathan Race - Managing Director & Senior Research AnalystJeffrey Rulis - MD & Senior Research Analyst Operator Good morning, everyone, and thank y ...

Financial Data and Key Metrics Changes - The company reported net income of $1,700,000 for the quarter, reflecting continued earnings pressure compared to $15,300,000 in the prior quarter [6][21] - The provision for credit losses increased to $26,300,000, with $13,900,000 related to the increase in the office overlay [15][21] - The allowance for credit losses rose to $129,500,000, representing coverage of total loans at 1.63%, an increase of 19 basis points from the prior quarter [15][22] - Net interest income before provision totaled $65,600,000, decreasing from $70,800,000 in the prior quarter [24] - The tangible common equity ratio decreased two basis points to 11% at quarter end, while book value per share increased by $0.39 to $40.99 [22][23] Business Line Data and Key Metrics Changes - Commercial lending grew by $109,100,000 or 4.3% over the previous quarter, indicating positive momentum in this segment [9] - Deposits increased by $146,200,000, largely through time deposits in digital and branch channels [10] - Non-interest income rose to $8,200,000 for the first quarter, compared to $4,100,000 in the prior quarter, driven by a separate account BOLI transaction [27][28] Market Data and Key Metrics Changes - The company noted modest exposure to government contracting and GSA-linked assets, which reduces sensitivity to changes in federal budget spending [10] - The DC economy is diversified, including educational institutions, a growing technology sector, and tourism, supporting long-term stability [11] Company Strategy and Development Direction - The company is focused on preserving capital flexibility, improving portfolio quality, and managing through volatility while maintaining long-term franchise value [13][30] - There is an emphasis on executing a disciplined strategy to enhance franchise value and position the company as a leading community bank in the Greater Washington DC Metro Area [9][11] - The company plans to explore asset disposition strategies for office loans to address evolving valuation risks [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged sustained pressure on office property valuations and the need for adequate reserves [12] - The company remains optimistic about the long-term strength of the Washington DC region despite current uncertainties [11][30] - Management is actively reassessing capital allocation priorities, including shareholder return strategies, in light of credit conditions [13] Other Important Information - The company has a strong liquidity position with available liquidity totaling $4,800,000,000 [24] - The average deposits have grown by $381,600,000 from a year ago, reflecting a stable funding base [23] Q&A Session Summary Question: Can you provide more details on the reserve build related to the office portfolio? - The reserve increase was driven by actual appraisal experiences and updated assumptions regarding probability of default and loss given default [36][37] Question: What is the outlook for the C and I portfolio growth? - All indications point to an increase in the C and I portfolio growth due to new team members and a robust pipeline [79][80] Question: How sensitive is the margin outlook to potential Fed rate cuts? - The forecast does not include changes to Fed rate cuts, and the company is relatively neutral to interest rate movements in the short term [43][46] Question: What is the company's strategy regarding loan sales and resolutions? - The company is considering various strategies, including loan sales and aggressive resolutions, based on a cost-benefit analysis [72][73]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $17.8 million, or $0.65 per diluted share, with a return on average assets of 0.96% and return on average equity of 13.04% [15][16] - Net interest income increased by $1.9 million, or 3.5%, from the prior quarter to $57.7 million, with a net interest margin of 3.31%, up 14 basis points sequentially [16][18] - The efficiency ratio improved to 61.2, the best since Q4 2022 [15] Business Line Data and Key Metrics Changes - The loan portfolio increased by $1.7 million sequentially, marking the first quarterly increase in two years, driven by commercial mortgage and construction lending [13] - Total deposits declined by $48 million from the prior quarter, but average balances increased by $14 million, with a notable rise in average non-time deposits [14] Market Data and Key Metrics Changes - The Hawaii construction industry saw a 20.3% increase in total construction value for the first ten months of 2024 compared to the same period in 2023, forecasted to exceed $14 billion [9] - The statewide unemployment rate in Hawaii remained low at 2.9%, outperforming the national rate of 4.2% [10] Company Strategy and Development Direction - The company aims to grow market share in Hawaii while targeting lending opportunities in Mainland markets, focusing on small businesses [12][13] - Management is optimistic about net loan growth continuing to pick up, particularly in commercial areas [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and maintaining strong results despite external factors [7][11] - The company is prepared to address potential impacts from current administration policies and market volatility [11] Other Important Information - The company plans to consolidate office space, expecting to recognize a one-time pretax write-off of $2 million to $2.5 million, with anticipated annual savings of approximately $1 million [18] - A quarterly cash dividend of $0.27 per share was declared, payable on June 16 [18] Q&A Session Summary Question: Loan growth outlook amidst market volatility - Management remains cautiously optimistic about loan growth, reiterating guidance for low to mid-single digit growth for the full year, primarily in commercial areas [28][30] Question: Impact of trade wars and tariffs on clients - Approximately 10% of the loan book may be impacted, particularly in accommodation, restaurant, and retail sectors, but management believes clients can handle short-term turbulence [32][34] Question: Deposit performance and competitive landscape - The company is pleased with deposit performance, with a favorable mix shift towards core deposits, and expects funding costs to trend down gradually [38][40] Question: Margin expectations for March - The margin for March was reported at 3.37%, with expectations for continued expansion driven by lower funding costs and favorable asset repricing [44][46] Question: Capital priorities and share repurchases - The company maintains a strong capital position, focusing on organic growth, share repurchases, and a quarterly cash dividend with a 40% payout ratio [53][54]

Trustmark Corporation (NASDAQ:TRMK) Q1 2025 Results Conference Call April 23, 2025 9:30 AM ET Company Participants Joey Rein - Director of Corporate Strategy Duane Dewey - President & Chief Executive Officer Tom Owens - Chief Financial Officer Barry Harvey - Chief Credit & Operations Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Will Jones - KBW Tim Mitchell - Raymond James Christopher Marinac - Janney Montgomery Scott Operator Good morning, ladies and gentlemen, and welcome t ...

Popular (BPOP) Q1 2025 Earnings Call April 23, 2025 11:00 AM ET Company Participants Paul Cardillo - Senior VP & Investor Relations OfficerIgnacio Alvarez - CEOJavier D. Ferrer - President & COOJorge Garcia - Executive VP & CFOLidio Soriano - Executive VP & Chief Risk Officer of Corporate Risk Management GroupFrank Schiraldi - Managing DirectorBen Gerlinger - Vice President of Equity ResearchGerard Cassidy - Managing DirectorTimur Braziler - Director - Mid-Cap Bank Equity ResearchJared Shaw - Managing Direc ...