Financial Data and Key Metrics Changes - For Q1 2025, the company reported net earnings of $51.1 million or $0.36 per share, marking the 192nd consecutive quarter of profitability [6] - The return on average tangible common equity was 14.51% and return on average assets was 1.37% for Q1 2025 [6] - Net interest margin expanded by 13 basis points to 3.31% compared to 3.18% in Q4 2024 and 3.10% in Q1 2024 [8] - Total deposits and customer repurchase agreements increased to $12.3 billion, a $56 million increase from Q4 2024 [9] - Non-interest income for Q1 2025 was $16.2 million, up from $13.1 million in Q4 2024 [32] Business Line Data and Key Metrics Changes - Total loans decreased to $8.36 billion, a $173 million decline from Q4 2024, primarily due to a $168 million decrease in dairy and livestock loans [12] - Loan originations in Q1 2025 were approximately 13% higher than in Q1 2024, with notable increases in C&I and commercial real estate loans [15] - Nonperforming and delinquent loans decreased to $26.8 million from $47.6 million at the end of Q4 2024 [16] Market Data and Key Metrics Changes - Noninterest-bearing deposits grew by $147 million or 2% compared to the end of 2024 [9] - The cost of deposits and repos was 87 basis points for Q1 2025, down from 97 basis points in Q4 2024 [10] - The economic forecast indicates real GDP growth slowing to 2% in the second half of 2026, with unemployment expected to remain above 5% until 2028 [22] Company Strategy and Development Direction - The company remains focused on banking small to medium-sized businesses and their owners through all economic cycles [131] - A new share repurchase program was authorized, with 2.05 million shares repurchased at an average price of $18.13 [7] - The company is actively looking for M&A opportunities while continuing to focus on internal growth [85][87] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of tariff policies on the agricultural portfolio is still uncertain, but customers feel relatively okay [43] - There is optimism regarding the commercial real estate market, with strong loan pipelines and increased activity expected [46][48] - Management expressed confidence in the ability to grow loans again by the end of the year, despite some unique challenges in Q1 [51] Other Important Information - The allowance for credit loss was $78.2 million at the end of Q1 2025, with a recapture of $2 million for the quarter [20] - The company’s capital position remains strong, with a tangible common equity ratio of 10% [27] Q&A Session Summary Question: Impact of tariff policies on agricultural portfolio - Management indicated it is too early to tell the overall impact, but customers feel relatively okay so far [43][44] Question: Pace of commercial real estate payoff activity - Elevated prepayment penalties were noted, but strong loan activity is expected moving forward [46] Question: Loan prepayment penalties impact on interest income - The impact was approximately $300,000 quarter over quarter [56] Question: Expectations around deposit cost reduction - Management believes there is still some room for deposit cost reduction, primarily through evaluating customer relationships [60][61] Question: Focus on credit management amid market uncertainty - Management stated that their disciplined approach to underwriting has not changed despite economic uncertainty [68][70] Question: Opportunities for core deposit growth - Most growth came from new relationships, with expectations for continued growth in non-interest-bearing deposits [77][78] Question: Appetite for M&A - Management expressed confidence in pursuing M&A opportunities while balancing share repurchases [85][87] Question: Demand in commercial real estate - Demand is broad-based across asset classes, with a focus on low loan-to-value loans [102] Question: Customer sentiment - Overall sentiment remains positive, with customers prepared for potential volatility [108][109] Question: Underwriting new construction loans - Input costs are a concern, but the company is open to construction lending opportunities [112] Question: Appetite for increasing multifamily portfolio - The appetite remains the same, with a focus on appropriate underwriting [115]

Financial Data and Key Metrics Changes - Total loan balances decreased by $37 million in Q1 due to elevated payoffs and prepayments, with loan yields at 5.45%, down two basis points from the previous quarter [4][5] - Total deposits increased by $160.7 million, with 95% of this growth in non-maturity deposits, primarily in money market accounts [5][6] - Net interest margin increased to 3.44% from 3.36% in the prior quarter, driven by decreases in the cost of deposits and borrowings [8][10] - Noninterest expense increased by $1.8 million, primarily due to higher benefit costs and payroll taxes, with guidance for quarterly noninterest expenses in the range of $41 million to $42 million [9][10] - The tangible common equity (TCE) ratio improved to 9.3%, up from 9% in the prior quarter, indicating strong capital ratios [10] Business Line Data and Key Metrics Changes - Commercial lending closed $183 million in new loan commitments, down from $316 million in the previous quarter, with a commercial loan pipeline of $460 million [18][19] - The average interest rate for new commercial loans was 6.83%, up 20 basis points from the previous quarter [19][20] - The bank experienced total charge-offs of $376,000, with net charge-offs of $299,000, representing 0.03% of total loans on an annualized basis [15] Market Data and Key Metrics Changes - The bank's credit quality remained strong, with non-accrual loans totaling just over $4.4 million, representing 0.09% of total loans [12][13] - Criticized loans declined by $1 million during the quarter, with substandard loans consistent with prior year-end levels [13][14] Company Strategy and Development Direction - The company is focused on maintaining a solid balance sheet and is open to potential mergers and acquisitions, particularly with attractive banks in their footprint [25][27] - The bank aims for annualized loan growth of 5% to 8% in the second quarter, with a strong pipeline and ongoing monitoring of economic uncertainties [57][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core profitability due to strong deposit growth and prudent risk management, despite emerging economic risks [3][20] - The company is closely monitoring developments around tariffs and federal funding, which could impact credit quality [15][53] Other Important Information - The bank did not repurchase any shares in Q1 but may consider it in the future depending on market conditions [10][32] - The Spokane team was acquired from a larger regional bank, reflecting the bank's strategy to expand its talent pool while managing expenses [28][30] Q&A Session Summary Question: Perspective on Heritage's position among independent banks - Management believes the bank is well-positioned with specific goals for 2025 and is ready for potential M&A opportunities [25][27] Question: Details on the Spokane team acquisition - The team was sought out due to a good fit with Heritage's customer base and market presence [28][30] Question: Comments on stock buyback activity - The decision on stock buybacks is made quarterly, with no repurchases in Q1 due to stock price increases [32] Question: Spot cost on total deposits and NIM in March - The NIM in March was 3.45%, with the cost of interest-bearing deposits at 1.92% [37][38] Question: Loan growth opportunities - Management sees balanced growth opportunities in commercial real estate and C&I, with a focus on deposit-rich clients [48][49] Question: Anticipated loan growth and economic uncertainty - The bank expects annualized loan growth of 5% to 8% in Q2, with ongoing monitoring of the economic environment [57][61]

CVB Financial (CVBF) Q1 2025 Earnings Call April 24, 2025 10:30 AM ET Company Participants Allen Nicholson - EVP & CFODavid Brager - President & CEOAndrew Terrell - Managing DirectorDavid Feaster - DirectorTimothy Coffey - MD & Associate Director of Depository ResearchKelly Motta - MD - Equity Research Conference Call Participants Gary Tenner - MD & Senior Research AnalystAdam Butler - Equity Research Analyst Operator Good day, and welcome to the CVB Financial First Quarter twenty twenty five Earnings Confe ...

Hanmi Financial Corporation (HAFC) Q1 2025 Earnings Conference Call April 22, 2025 05:00 PM ET Company Participants Operator - Conference Call ModeratorBen Brodkowitz - Investor RelationsBonnie Lee - President & Chief Executive OfficerAnthony Kim - Chief Banking OfficerRon Santarosa - Chief Financial Officer Conference Call Participants Gary Tanner - Analyst, DA DavidsonUnknown Analyst - AnalystKelly Moda - Analyst, KBWAdam Butler (on behalf of Matthew Clark) - Analyst, Piper SandlerUnknown Analyst - Analys ...

Financial Data and Key Metrics Changes - The company originated $36.4 million in loans held for investment, an increase from $28.9 million in the prior sequential quarter [5] - Non-performing assets increased to $2.5 million from $2.1 million in the previous quarter [8] - The net interest margin increased to 2.91% for the quarter ended December 31, 2024, compared to 2.84% for the sequential quarter [9] - The average cost of deposits declined to 123 basis points, down by 4 basis points from the prior quarter [10] - The allowance for credit losses to gross loans held for investment increased by 5 basis points to 66 basis points [9] Business Line Data and Key Metrics Changes - Loans held for investment increased by approximately $5 million compared to the quarter ended September 30, 2024, with increases in single-family and commercial business loans [6] - Loan principal payments and payoffs were $34.3 million, slightly up from $34 million in the previous quarter [6] - The company has loosened some underwriting requirements to encourage higher loan origination volume [6] Market Data and Key Metrics Changes - Real estate investors have reduced their activity due to higher mortgage and interest rates, although moderate activity in loans held for investment continues [6] - There is increased consumer demand for single-family adjustable-rate mortgage products due to higher fixed-rate mortgage interest rates [6] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing the shift in monetary policy and the reversal of the inverted yield curve [12] - The company is looking for operating efficiencies to lower operating expenses, with a focus on maintaining a run rate of approximately $7.5 million per quarter [12] - The company has repurchased approximately 64,000 shares of common stock in the December 2024 quarter and has a new stock repurchase plan approved [15] Management's Comments on Operating Environment and Future Outlook - Management believes that mortgage interest rates need to decline for significant acceleration in loan portfolio growth, with a current annual growth rate of approximately 1.9% [20] - There is optimism for growth in calendar 2025, supported by a flattening and upwardly sloping yield curve [21] - Management anticipates continued expansion of the net interest margin in future quarters, despite some headwinds from loan repricing [23][24] Other Important Information - The company has identified $23.7 million or 2.2% of its loans held for investment in areas affected by recent fires in Los Angeles [5] - The company has a strong capital position, exceeding well-capitalized capital ratios, allowing for effective execution of its business plan [14] Q&A Session Summary Question: Loan growth commentary and future acceleration - Management indicated that mortgage interest rates need to decline for significant loan portfolio growth, with a current growth rate of approximately 1.9% [20] Question: Margin trends and funding opportunities - Management expects net interest margin to expand in future quarters, with opportunities to reprice maturing wholesale funding downward [24]