Financial Data and Key Metrics Changes - The company reported record quarterly net income of $195.5 million, up from $189 million in the previous quarter [6] - Net interest income also reached a quarterly record of $547 million, driven by loan growth of $2.3 billion in the second quarter [6][10] - Total assets grew by $3.1 billion to $69 billion, including the impact of a $425 million preferred stock offering [11][16] Business Line Data and Key Metrics Changes - Residential mortgage activity increased slightly but remains muted in the current rate environment [8] - The property and casualty premium finance group saw over $1 billion in growth, while commercial real estate grew by $377 million [20][21] - The mortgage warehouse team grew by $213 million, indicating strong onboarding of new relationships [21] Market Data and Key Metrics Changes - The company experienced a 17% increase in deposits over the prior quarter, totaling $2.2 billion [10] - Loan growth for the first half of the year was $3 billion, representing a 12% annualized increase [11] - Non-performing loans as a percentage of total loans remained stable, with charge-offs for the quarter unchanged at 11 basis points [24] Company Strategy and Development Direction - The company aims for continued mid to high single-digit loan growth for the second half of the year, supported by strong pipelines [6][35] - Management emphasized a disciplined approach to growth, avoiding opportunities with unfavorable pricing or credit structures [7] - The company is cautiously optimistic about the overall business environment, with a focus on maintaining strong credit quality [24] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains very good, with a stable environment for non-performing loans and charge-offs [24] - There is a belief that the impacts of economic uncertainties will be limited due to strong underwriting standards [23] - The company is optimistic about the business environment as it enters the second half of the year, with strong pipelines in core markets [22][24] Other Important Information - The company continues to build tangible book value per share and has grown it every year since going public [16] - The recent preferred stock issuance will impact earnings per share calculations in the third quarter but will not affect operating net income [17][18] Q&A Session Summary Question: Loan growth expectations for Q3 - Management expects loan growth to be in line with historical trends, targeting mid to high single digits [35] Question: Sources of deposit growth - Deposit growth is broad-based, with significant contributions from commercial and consumer households [38] Question: Wealth management outsourcing progress - The conversion to the LPL platform is largely complete, and the company sees growth potential in the wealth management business [40] Question: NII growth sustainability - Management believes mid to high single-digit NII growth is reasonable given stable margins and asset growth [45] Question: Deregulation impact on M&A - The company is hopeful for regulatory adjustments that could facilitate growth and is open to acquisition opportunities [52] Question: Core C&I sentiment and growth - There is cautious optimism among core commercial clients, with sentiment improving compared to previous quarters [56] Question: Non-performing loans in CRE portfolio - The increase in non-performing loans is minor and attributed to a few specific credits, with overall management feeling confident [58] Question: Competitive pricing and loan yield compression - There has been some margin compression, but the company maintains a disciplined pricing strategy [66] Question: Capital targets and CET1 ratios - The company views a 10% CET1 ratio as a floor and expects gradual growth in capital with earnings [111]

Financial Data and Key Metrics Changes - The company reported record quarterly net income of $195.5 million, up from $189 million in the previous quarter, representing a growth of approximately 2.6% [5] - Net interest income also reached a record high of $547 million, driven by loan growth of $2.3 billion in the second quarter, which reflects a 19% annualized increase [5][10] - Total assets grew by $3.1 billion to $69 billion, including the impact of a $425 million preferred stock offering [11] Business Line Data and Key Metrics Changes - Residential mortgage activity increased slightly but remains muted in the current rate environment, with the company managing expenses to protect financial results [7] - The property and casualty premium finance group saw growth of over $1 billion, while commercial real estate grew by $377 million and mortgage warehouse grew by $213 million [19][20] - Non-interest income totaled $124.1 million, up approximately $7.5 million from the prior quarter, with increases in mortgage banking and wealth management revenue [13] Market Data and Key Metrics Changes - The company experienced a 17% increase in deposit growth, amounting to $2.2 billion on an annualized basis, which helped fund the strong loan growth [9] - The net interest margin for the quarter remained stable at 3.54%, indicating effective management of interest income and expenses [6][12] Company Strategy and Development Direction - The company aims for continued mid to high single-digit loan growth for the second half of the year, supported by strong pipelines and disciplined growth strategies [5][21] - Management emphasized a client-first approach, focusing on delivering sophisticated financial solutions while maintaining expense discipline [26] - The company is cautiously optimistic about the overall business environment, with a focus on maintaining strong credit quality and managing risks effectively [22] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains strong, with non-performing loans stable and charge-offs unchanged from the previous quarter [22][23] - There is a belief that the impacts of economic uncertainties will be limited due to strong underwriting standards and a diversified portfolio [21] - The company is optimistic about the potential for M&A activity, driven by market dynamics and opportunities arising from regulatory changes [51][92] Other Important Information - The company continues to build tangible book value per share and has grown it every year since going public [15] - The recent preferred stock issuance will impact earnings per share calculations in the third quarter, but not operating net income [16][17] Q&A Session Summary Question: Loan growth expectations for Q3 - Management expects loan growth to remain in the mid to high single digits based on the June 30 balance [33][34] Question: Sources of deposit growth - Deposit growth is broad-based, with significant contributions from commercial and consumer households [36] Question: Wealth management outsourcing progress - The conversion to the LPL platform is largely complete, and the focus is now on serving clients and growing the wealth business [37] Question: NII growth sustainability amid deposit competition - Management anticipates mid to high single-digit NII growth, supported by stable margins and asset growth [43][46] Question: Impact of deregulation on the company - Management is hopeful for regulatory adjustments that could facilitate growth and acquisition opportunities [51] Question: Borrower sentiment and loan growth - Borrower sentiment is cautiously optimistic, with improved confidence in the economic environment [111] Question: Non-performing loans in the CRE portfolio - The increase in non-performing loans is attributed to a few specific credits, but overall management remains confident in the portfolio's health [96]

Financial Data and Key Metrics Changes - Profit before tax, excluding treasury, grew by 11.4% year on year to INR 156.90 billion in Q1 FY '26 [4] - Core operating profit increased by 13.6% year on year to INR 175.05 billion [4] - Profit after tax grew by 15.5% year on year to INR 127.68 billion [4] - Total deposits grew by 12.8% year on year and were flat sequentially [4] - Average current and savings account deposits grew by 8.7% year on year and 3.9% sequentially [5] - Net interest income increased by 10.6% year on year to INR 216.35 billion [17] - Noninterest income, excluding treasury, grew by 13.7% year on year to INR 72.64 billion [19] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 12% year on year and 1.5% sequentially [5] - Retail loan portfolio grew by 6.9% year on year and 0.5% sequentially [5] - Business banking portfolio grew by 29.7% year on year and 3.7% sequentially [6] - Corporate portfolio grew by 7.5% year on year but declined by 1.4% sequentially [6] - Mortgage portfolio grew by 10.3% year on year and 1.9% sequentially [9] - Auto loans grew by 2.2% year on year but declined by 0.7% sequentially [9] Market Data and Key Metrics Changes - The net NPA ratio was 0.41% at 06/30/2025 compared to 0.43% at 06/30/2024 [7] - Total provisions during the quarter were INR 18.15 billion, or 10.4% of core operating profit [21] - Capital position remained strong with a CET1 ratio of 16.31% and total capital adequacy ratio of 16.97% [8] Company Strategy and Development Direction - The strategic focus is on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [3] - The company aims to maintain a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable returns [8] - The business banking segment is expected to grow faster than the overall loan book [52] Management Comments on Operating Environment and Future Outlook - Management noted that global events have impacted sentiment but expect positive effects from monetary easing [34] - The company is focused on improving customer acquisition and becoming the primary banker for retail customers [56] - There is a cautious outlook on unsecured retail growth, with expectations for better performance in personal loans and credit cards [64] Other Important Information - The provisioning coverage ratio on non-performing loans was 75.3% at 06/30/2025 [7] - The combined ratio for ICICI General stood at 102.9% in Q1 FY '26 [25] - The profit after tax of ICICI Life was INR 3.02 billion in Q1 FY '26 compared to INR 2.25 billion in Q1 FY '25 [25] Q&A Session Summary Question: Clarification on margins and growth - Management confirmed that the reported margin for Q4 would have been lower than reported due to the number of days in the quarter [33] - On growth, management indicated that global events have impacted sentiment but expect improvements due to monetary easing [34] Question: Corporate loan mix and business banking performance - The decline in high-rated corporate loans is attributed to demand and pricing factors, with a focus on maintaining a balanced risk-reward profile [49] - Business banking growth is driven by distribution, process, and technology improvements [51] Question: Cost of deposits and unsecured retail growth - The decline in cost of deposits was primarily due to savings account rate cuts and a reduction in wholesale deposits [59] - Management expressed confidence in improving growth in personal loans and credit cards moving forward [64] Question: Asset quality monitoring in business banking - Management stated that the business banking portfolio is closely monitored, with current credit behavior being benign [68]

Financial Data and Key Metrics Changes - Synovus reported GAAP and adjusted earnings per share of $1.48, with adjusted earnings per share increasing 14% from the first quarter and 28% year over year [6][10] - Adjusted pre-provision net revenue rose 5% sequentially and grew 7% from the second quarter of 2024 [6] - Net interest margin expanded modestly, contributing to a 6% year-over-year net interest income growth in the second quarter [11][12] - Capital ratios improved, with the preliminary common equity Tier one ratio at 10.91%, the highest in the company's history [17][18] Business Line Data and Key Metrics Changes - Loan growth was strong and broad-based, with period-end loan balances up $888 million or 2% from the first quarter [12] - Specialty lending rose $353 million sequentially, driven by growth in structured lending and restaurant services lending [12] - Adjusted non-interest revenue was $131 million, increasing 12% sequentially and 3% year over year [13][14] Market Data and Key Metrics Changes - Core deposits declined $788 million or 2% from the first quarter, primarily due to a drop in public funds [13] - Average cost of deposits declined four basis points to 2.22% in the second quarter [13] - The company expects core deposit growth of 1% to 3% in the second half of the year, driven by seasonal benefits and investments in deposit specialties [20] Company Strategy and Development Direction - Synovus is focused on accelerated hiring of relationship managers, adding 12 new commercial bankers in the second quarter [8][19] - The company aims to maintain a disciplined approach to expense management while investing in areas that deliver long-term shareholder value [21] - The strategic initiatives include enhancing client service and expanding capabilities to compete effectively in the market [9][92] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future business growth despite concerns regarding government fiscal and trade policy actions [9] - The outlook for 2025 has been revised to reflect increased revenue growth expectations, with loan growth projected at 4% to 6% [19][20] - Management anticipates stable credit quality and net charge-offs in 2025, with a focus on loan growth rather than share repurchases [22][76] Other Important Information - The company achieved a 60% year-over-year increase in total funded loan production in the second quarter [10] - Non-performing loans improved to 0.59% of total loans, down from 0.67% in the first quarter [16] - The tax rate was approximately 21% in the second quarter, with expectations for a full-year rate between 21% and 22% [23] Q&A Session Summary Question: Can you talk about loan growth and borrower sentiment? - Management noted that loan growth was driven by hard work and a strong team, with production and pipelines up about 10% entering the second quarter [28][30] Question: What are the expectations for deposit growth? - Management indicated that the decline in deposits was strategic, leading to margin expansion, and expects core client growth and seasonal benefits to drive deposit growth in the second half [36][38] Question: How is the competitive landscape affecting pricing? - Management acknowledged ongoing competition for loans and deposits, with modest pricing pressure observed [42][44] Question: What is the outlook for capital allocation and buybacks? - Management emphasized a preference for loan growth over share repurchases, maintaining a strong capital position [75][76] Question: Can you provide insights on credit quality and net charge-offs? - Management reported better-than-expected credit quality, with continued resolution of larger office relationships contributing to improved metrics [104][106] Question: What is the regulatory environment like? - Management expressed optimism about a favorable regulatory environment, which could provide more flexibility for growth and M&A opportunities [109][110]

Core Viewpoint - M&T Bank Corporation (MTB) reported better-than-expected quarterly results, with adjusted net operating earnings per share of $4.28, surpassing the Zacks Consensus Estimate of $4.04, and showing an increase from $3.79 per share in the same quarter last year [1][9]. Financial Performance - The net income available to common shareholders was $679 million, reflecting an 8.5% increase from the prior-year quarter [2]. - Quarterly revenues reached $2.40 billion, slightly exceeding the Zacks Consensus Estimate of $2.39 billion, and marking a 4.1% year-over-year increase [3]. - Net interest income (NII) declined marginally year over year to $1.72 billion, below the estimate of $1.76 billion [3]. - Total non-interest income was $683 million, up 17% year over year, driven by increases across almost all components, surpassing the estimate of $632.6 million [4]. - Total non-interest expenses rose to $1.34 billion, a 3% increase year over year, attributed to higher salaries, employee benefits, and other operational costs [4]. Efficiency and Profitability - The efficiency ratio improved to 55.2%, down from 55.3% in the previous year, indicating enhanced profitability [5]. - The return on average tangible assets and average tangible common shareholder equity were 1.44% and 15.54%, respectively, compared to 1.31% and 15.27% in the prior-year quarter [10]. Loan and Deposit Trends - Total loans increased to $136.1 billion as of June 30, 2025, up 1.1% from the prior quarter, while total deposits slightly decreased to $164.5 billion [6]. - The company’s estimates for loans and leases were $133 billion, and for deposits, $160.7 billion [6]. Credit Quality - Net charge-offs decreased by 21.2% to $108 million year over year, better than the estimate of $143 million [7]. - The provision for credit losses was $125 million, down 16.7% from the previous year, aligning closely with the estimate of $125.9 million [7]. - Non-performing assets declined 22.1% year over year to $1.60 billion, although slightly above the estimate of $1.44 billion [7]. Capital Management - M&T Bank's estimated Common Equity Tier 1 ratio was 10.98%, down from 11.45% in the second quarter of 2024 [10]. - The tangible equity per share increased to $112.48 from $102.42 in the same quarter last year [10]. - The company repurchased 6.07 million shares for $175.93 million as part of its capital plan during the second quarter of 2025 [11].

Core Viewpoint - Recent data from CarMax KMX Auto Finance indicates a rise in loan delinquencies and net losses, raising concerns about credit quality in the used auto lender's portfolio [1][4]. Summary by Sections Loan Performance - After two months of stability, loan delinquency and loss rates have worsened, with May showing a sharper increase than typical seasonal trends [2][3]. - The portfolio-level delinquency rate increased by 36 basis points sequentially, exceeding the historical seasonal average of 18 basis points [7]. - Year-over-year, the portfolio-level delinquency rate rose by 16 basis points, contrasting with a trailing three-month trend of a decrease of 2 basis points [8]. Credit Quality Concerns - The cumulative net loss rate increased by 52 basis points year-over-year, consistent with a trailing three-month trend of 48 basis points [8]. - Newer securitizations are not performing better than older vintages, with the delinquency rate for the most recent prime securitization trending higher than older vintages [5][4]. Analyst Insights - Analyst Scott Devitt maintains an Outperform rating on CarMax with a price target of $90, despite the concerns raised by the recent data [1]. - Devitt projects first-quarter revenue of $7.67 billion and earnings per share of $1.23 [10]. - The company is expected to face increased loan loss provisions as it targets lower-tier borrowers to maintain interest margins [6][4]. Market Dynamics - Despite the challenges, the used auto market remains healthy, supported by strong gross profit margins for scaled retailers [9][10]. - CarMax has sustained robust sourcing methods and integrated credit capabilities, which have helped maintain performance amid macroeconomic uncertainties [10].

First Horizon (FHN) 2025 Conference June 11, 2025 11:25 AM ET Speaker0 All right. Up next we have First Horizon. I'll get my usual disclosure out of the way. For important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. The taking of photographs and use of recording devices is not allowed. If you have any questions, please reach out to your Morgan Stanley sales representative. With that, we're delighted to have with us today Brian Jordan, Chai ...

M&T Bank (MTB) Conference Summary Company Overview - M&T Bank is characterized as a community-focused bank with a strong retail banking presence in the Northeastern, New England, and Mid-Atlantic regions of the US [3][4] - The bank has a solid capital position, high liquidity, and improving credit quality [4][5] Key Industry Insights - The current economic environment is marked by uncertainty due to tariffs and various economic paths [3] - Consumer spending patterns remain stable, with delinquencies on the consumer side still low [5][6] - Commercial customers are cautious about investments due to uncertainty regarding tariffs and regulations, although there is a desire to invest [7][8] Financial Performance - M&T Bank has seen record volumes in indirect lending, particularly in auto, RV, and marine sectors, attributed to preemptive spending before potential price increases [6] - The bank's commercial lending has been soft, particularly in floor planning, but there is growth in middle-market lending [15][16] - The bank's net interest margin increased by 8 basis points to 3.66%, with expectations for further improvement due to favorable pricing in their swap book and loan portfolio [18][19] Loan and Deposit Trends - The bank's commercial real estate (CRE) portfolio is shrinking, but this is seen as a positive due to the reduction of criticized loans [12][16] - The bank aims to stabilize and grow its loan originations in the second half of the year [17] - M&T Bank is cautious about deposit growth, focusing on attracting operating deposits while being price-conscious [13][24] Fee Income Growth - M&T Bank anticipates decent fee income growth driven by investments in corporate trust, wealth management, and mortgage services [27][29] - The treasury management business is performing well, with high single-digit to low double-digit growth year-over-year [31] Expense Management - The bank expects modest expense growth of around 2%, with ongoing strategic projects that require significant investment [34][37] - M&T Bank has several key strategic projects underway, including a new financial system and data centers [39][40] Credit Quality Outlook - Nonperforming assets and criticized loans have improved, with expectations for continued improvement despite potential economic downturns [45][46] - The bank is closely monitoring macroeconomic factors that could impact credit quality, including GDP and unemployment rates [55][56] Capital Management - M&T Bank aims to maintain a CET1 ratio of 11% and has been active in share buybacks, purchasing over $600 million in Q1 [60][61] - The bank has reduced its criticized loan book by 27% and nonaccrual loans by 33% over the past year [61] Regulatory Environment - The bank is preparing for potential regulatory changes and is focused on maintaining strong fundamentals [80][81] - M&T Bank is optimistic about the current regulatory environment, which is seen as more conducive to growth [79][80] Conclusion - M&T Bank emphasizes its commitment to community banking and maintaining a strong, consistent performance while managing risks effectively [100][103] - The bank's focus on inclusivity and community engagement is viewed as a competitive advantage [101][102]

Core Points - Landmark Bancorp, Inc. reported diluted earnings per share of $0.81 for Q1 2025, an increase from $0.57 in Q4 2024 and $0.48 in Q1 2024 [1] - Net income for Q1 2025 was $4.7 million, up from $3.3 million in the previous quarter and $2.8 million in the same quarter last year [1] - The return on average assets was 1.21% and return on average equity was 13.71% for Q1 2025 [1][29] - The efficiency ratio improved to 64.1% from 70.8% in the previous quarter [29] Financial Performance - Net interest income for Q1 2025 was $13.1 million, a 5.8% increase from the previous quarter [5] - The net interest margin increased to 3.76% from 3.51% in the prior quarter [5][7] - Total gross loans increased by $22.6 million, or 8.7% annualized, with significant growth in commercial real estate and residential mortgage loans [3][12] - Total deposits rose by $7.1 million in Q1 2025, exceeding typical seasonal declines [3][13] Non-Interest Income and Expenses - Non-interest income totaled $3.4 million for Q1 2025, a slight decrease from the previous quarter [8] - Non-interest expenses decreased by $1.1 million to $10.8 million compared to the prior quarter [10] - The decrease in non-interest expenses was attributed to reductions in various operational costs, including occupancy and professional fees [10] Credit Quality - Credit quality remained stable with minimal net charge-offs of $23,000 in Q1 2025, compared to $219,000 in Q4 2024 [15] - The allowance for credit losses was $12.8 million, or 1.19% of total gross loans [15][29] - Non-performing loans totaled $13.3 million, or 1.24% of gross loans, showing slight improvement from the previous quarter [16][29] Balance Sheet Highlights - As of March 31, 2025, total assets were $1.58 billion, with total stockholders' equity increasing to $142.7 million [14][21] - The loan-to-deposit ratio was 79.5%, up from 78.2% in the prior quarter [13][29] - The ratio of equity to total assets increased to 9.04% from 8.65% in the previous quarter [14][29]

Core Viewpoint - UMB Financial Corp. reported strong operating earnings in Q1 2025, driven by increased net interest income and non-interest income, despite challenges from weak asset quality and rising non-interest expenses [1][10]. Financial Performance - Operating earnings per share for Q1 2025 were $2.58, exceeding the Zacks Consensus Estimate of $2.21 and up from $2.47 in the same quarter last year [1]. - Net income on a GAAP basis was $81.3 million, reflecting a 26.2% decline year over year [2]. - Quarterly revenues reached $571.3 million, a 41% increase year over year, surpassing the Zacks Consensus Estimate by 2.9% [3]. - Net interest income (NII) on a fully taxable equivalent (FTE) basis was $405.1 million, up 64.7% from the prior-year quarter, with a net interest margin (NIM) of 2.96% compared to 2.48% a year ago [3]. Income and Expenses - Non-interest income totaled $166.2 million, a 4.4% increase year over year, primarily due to growth in trust and securities processing, service charges, and brokerage income [4]. - Non-interest expenses rose to $384.8 million, a 51% increase year over year, driven by higher salaries, legal and consulting expenses, and amortization of intangibles [4]. - The efficiency ratio was 65.19%, up from 63.44% in the prior-year quarter, indicating a decrease in profitability [5]. Loans and Deposits - Average loans and leases as of March 31, 2025, were $32.3 billion, a 27.8% sequential increase, while average deposits rose 32.3% year over year to $50.3 billion [6]. Credit Quality - The ratio of net charge-offs to average loans was 0.45%, significantly higher than 0.05% in the prior-year quarter [7]. - Total non-accrual and restructured loans amounted to $100.9 million, up from $17.8 million a year ago [7]. - The provision for credit losses was $86 million in Q1 2025, compared to $10 million in the same quarter last year [7]. Capital Ratios - As of March 31, 2025, the Tier 1 risk-based capital ratio was 10.35%, down from 11.09% a year earlier, while the Tier 1 leverage ratio improved slightly to 8.47% from 8.39% [8]. - The total risk-based capital ratio decreased to 12.54% from 13.03% in the prior-year quarter [8]. Profitability Ratios - Return on average assets was 0.54%, down from 1.06% in the year-ago quarter [9]. - Operating return on average common equity was 12.47%, compared to 15.44% in the prior-year quarter [9].