Financial Data and Key Metrics Changes - WSFS Financial Corporation reported core earnings per share of $1.13, core return on assets (ROA) of 1.29%, core pre-provision net revenue (PPNR) of $104.6 million, and core return on tangible common equity of 16.97%, all showing improvements from the prior quarter [5][6][14] - The core net interest margin expanded by 8 basis points to 3.88%, with total funding costs reduced by 15 basis points to 1.77% [6][7] - Year-over-year, net interest margin increased by 4 basis points despite absorbing 100 basis points of interest rate cuts [7] Business Line Data and Key Metrics Changes - Core fee revenue grew by 6% year-over-year, driven by a 19% increase in Wealth and Trust services [7] - Institutional Services and Bryn Mawr Trust Company of Delaware showed strong year-over-year growth, increasing deal flow and market share [8] - Client deposits declined by 1% linked quarter but increased by 4% year-over-year, with non-interest bearing deposits up 6% year-over-year [11][12] Market Data and Key Metrics Changes - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [12] - Total net credit costs increased to $17.6 million, with net charge-offs at $24.6 million, primarily due to a charge-off of a non-performing loan [12][13] Company Strategy and Development Direction - The company announced a 13% increase in the quarterly dividend to $0.17 per share and an additional share repurchase authorization of 10% of outstanding shares [15] - A medium-term target CET1 ratio of 12% was established, with a gradual glide path over two to three years [15][66] - The company aims to manage net interest margin through various tools, including optimizing wholesale funding and hedging programs [58][60] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainties, leading to postponed investments [40][42] - The overall credit quality remains stable, with no significant red flags identified in delinquency metrics [45] - Management expressed confidence in the ability to navigate the current environment and indicated that an update on full-year outlook will be provided in the second quarter [16][68] Other Important Information - The company returned $62.6 million of capital in the first quarter, including $53.8 million in buybacks and $8.8 million in dividends [14] - The capital ratios remain strong, with a CET1 of 14.1% and TCE of 8.63%, significantly above regulatory targets [14] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical not to provide updated guidance until mid-year due to the volatility of the environment [22][23] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was due to a one-off item and that the rest of the portfolio is performing as expected [26][28] Question: How should expenses be viewed going forward? - Management noted that the first quarter expenses were lower than the run rate and provided insights into one-time items affecting the expense line [33] Question: What is the outlook for commercial growth? - Management observed that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [40][42] Question: How are deposit beta expectations evolving? - Management exceeded their deposit beta goal of 40% and plans to continue pushing for higher rates [56][63] Question: What is the medium-term plan for the CET1 target? - Management outlined a two to three-year glide path to reach a CET1 target of 12%, depending on macroeconomic conditions [66][68]

Financial Data and Key Metrics Changes - In Q1 2025, Woori Financial Group's net income was KRW 615.6 billion, which was below market expectations due to conservative provisioning and one-off costs [3][4] - The group's net operating revenue increased by 2.4% year-over-year and 6.6% quarter-over-quarter to KRW 2,609.5 billion [5] - The return on equity (ROE) stood at 9.5% [4] - The credit cost was KRW 435.5 billion, representing an 18.8% year-over-year increase [6] - The preliminary CET1 ratio improved by 30 basis points to 12.42% [8][23] Business Line Data and Key Metrics Changes - Interest income remained stable at KRW 252 billion, while net interest income increased by 2% year-over-year to KRW 357.5 billion [10][14] - Core fee income reached KRW 511.4 billion, driven by growth in wealth management efforts [15] - The bank's loan portfolio totaled KRW 330 trillion, showing a slight 1% decrease from the end of the previous year [12] - Retail loans remained stable at KRW 144 trillion, in line with government policies on household debt management [13] Market Data and Key Metrics Changes - The bank's net interest margin (NIM) was 1.44%, with the group's NIM, including credit card business, at 1.70%, reflecting a 4 basis point increase from the previous quarter [10] - The economic environment remains challenging, with higher delinquency and non-performing loan (NPL) ratios due to uncertainties in the Korean economy [7] Company Strategy and Development Direction - The company aims to achieve a CET1 ratio of 12.5% within the year, focusing on asset rebalancing and risk management [9][23] - Woori Financial Group is actively managing high-risk and distressed assets to stabilize credit costs [7] - The group is diversifying revenue sources and strengthening noninterest businesses to enhance profitability [5][15] - Plans to enter the insurance business are underway, with expectations of annual profit increases of KRW 300 billion to KRW 400 billion post-acquisition [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging internal and external business environment, emphasizing the need for proactive risk management [4][21] - The company is prepared for potential impacts from prolonged high exchange rates and U.S. tariff policies [21][28] - Future growth is expected to be cautious, with a focus on maintaining asset soundness and capital adequacy [14][32] Other Important Information - The Board of Directors approved a Q1 dividend of KRW 200 per share, an 11% increase year-over-year [9][24] - The group is executing a share buyback program totaling KRW 150 billion [24] Q&A Session Summary Question: Concerns about capital policy and RWA allocation - Management acknowledged the need for balanced growth between bank and nonbank sectors and emphasized focusing on high-growth potential companies to improve capital ratios [35][38] Question: Performance of digital investments and targets - The company reported an MAU of 8.5 million for its super app, aiming to increase it to 9 million by year-end [44][45] Question: Impact of life insurance acquisition on capital ratio - Management stated that while the impact of the acquisition is still being assessed, they do not expect a significant negative effect on capital ratios [48][51] Question: Credit cost ratio awareness and improvement plans - Management acknowledged the higher credit cost ratio compared to peers and indicated that active measures are being taken to manage and improve it [56][61] Question: NIM trends and expectations - The company expects NIM to remain stable despite potential rate cuts, with a focus on increasing core assets [78][80] Question: Budget Telecom service expectations - The new service aims to attract younger customers and enhance existing customer activation through bundled offerings [82][84]

First Financial Bancorp. (NASDAQ:FFBC) Q1 2025 Earnings Conference Call April 25, 2025 8:30 AM ET Company Participants Scott Crawley - Corporate Controller Archie Brown - President and CEO Jamie Anderson - CFO Bill Harrod - Chief Credit Officer Conference Call Participants Andrew Leischner - KBW Terry McEvoy - Stephens Inc. Daniel Tamayo - Raymond James Karl Shepard - RBC Capital Markets Kelvin Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conferenc ...