Financial Data and Key Metrics Changes - The company reported net interest income of $123.5 million, which is $21 million higher than the first quarter of 2024 and slightly higher than the fourth quarter of 2024 [3] - Tangible book value increased by 3% since last quarter and 13% year-over-year, ending at $30.31 per share [2] - The common equity Tier 1 capital ratio stood at 11.4% and the risk-based capital ratio at 12.9% for the quarter [2] - The provision expense was $6.6 million, up $2.1 million from the first quarter of 2024 and $900,000 from the fourth quarter [6] - The allowance for credit losses ended the quarter at just over $165 million, an increase of about $576,000 from the fourth quarter [7] Business Line Data and Key Metrics Changes - Non-interest income decreased by about 7% compared to the first quarter of 2024, primarily due to a one-time benefit recorded in 2024, but normalized rates showed a 7% increase driven by higher service charges on deposit accounts [8] - Non-interest expense was down $789,000 compared to the fourth quarter of 2024 and flat compared to the first quarter of 2024, reflecting expense discipline despite a 5% growth in employee numbers [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio stands at 89%, with an adjusted ratio of 77% when including correspondent Fed funds purchased [1] - The company anticipates over $1.9 billion in asset repricing over the next 12 months [6] Company Strategy and Development Direction - The company is focused on organic loan and deposit growth, priced competitively and profitably, with expectations of loan growth in low double digits [12][36] - There is an ongoing evaluation of new producers and potential hires to support expansion efforts [45] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the durability of Main Street compared to Wall Street, indicating a mixed impact from current market uncertainties [26] - The company does not foresee significant impacts from tariffs and remains optimistic about the balance of the year [28][32] Other Important Information - The company experienced a significant increase in Fed balances, averaging $380 million, which aids liquidity but negatively impacts margin calculations [2][4] - The company is looking for additional avenues to improve income without increasing risk, given the excess liquidity [61] Q&A Session Summary Question: How does the company view deposit trends for the rest of the year? - Management indicated that municipal deposits may decline as the year progresses, with correspondent balances leveling off after tax season [21][22] Question: What is the outlook for loan growth and demand post-pandemic? - Management noted a potential slowdown but remains optimistic about steady, granular growth across various markets [26][38] Question: What is the current loan pricing dynamic? - Loan pricing has remained steady, but management expressed dissatisfaction with current pricing levels, indicating they should be higher [43] Question: What is the expected range for non-interest expenses for the remainder of the year? - Non-interest expenses are expected to be in the range of $46 to $46.5 million, excluding potential new hires [45] Question: Can you provide details on non-performing loans? - Non-performing loans are primarily in the medical sector, including a hospital and a doctor with cash flow issues but good collateral [48][52]

Financial Data and Key Metrics Changes - Total assets increased by approximately $37 million during Q1 2025 [8] - Net income for Q1 2025 was $8.6 million, equating to $0.76 per basic share, down from $0.88 per share in the previous quarter but up from $0.58 per share in Q1 2024 [12] - The net interest margin (NIM) improved to 0.7% in Q1 2025, up from 0.54% in Q4 2024 and 0.16% in Q1 2024 [13] - Return on average assets was 0.13% for the quarter, compared to 0.27% last quarter, while return on average equity was 0.83%, up from 0.68% in Q4 [12] Business Line Data and Key Metrics Changes - The loan book decreased by $23 million in Q1 2025, with a strong loan pipeline anticipated for Q2 [5][22] - Non-interest income decreased by $693,000 compared to the previous quarter, primarily due to elevated non-interest income in Q4 2024 [17] - Non-interest expense increased by $1.3 million in Q1 2025, mainly due to employee compensation and related benefits [19] Market Data and Key Metrics Changes - The Texas economy remains strong and growing, with no significant negative impacts observed from national economic uncertainties [3][4] - Non-performing assets to total assets ratio was 0.15% at March 31, compared to 0.16% at year-end [24] Company Strategy and Development Direction - The company is focused on maintaining a granular and historically stable core deposit base, with an anticipated net growth of 2% to 5% in the deposit book for the year [61] - Plans to utilize cash flows from maturing securities for loan growth or reinvestment in securities [66] - The company aims to continue share repurchases as a good utilization of excess capital [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the loan portfolio and the quality of the customer base, despite uncertainties related to tariffs and the national economy [70][72] - The company is prepared for potential economic slowdowns while also being positioned for future growth [7] Other Important Information - The company increased its dividend to $0.25 per share in Q1 2025, up from $0.24 per share in 2024 [12] - Total equity increased by $6.7 million, primarily due to net income and employee stock option exercises [11] Q&A Session Summary Question: Can you provide insights on the loan pipeline and its composition? - The loan pipeline is similar to the current composition of the loan portfolio, with a strong uptick in opportunities observed post-November election [39] Question: What are clients looking for to feel comfortable in the current environment? - Clients are cautious due to national uncertainties but see strength in local markets [44] Question: What is the outlook for reserves based on current economic conditions? - No expectation to build reserves unless there is a significant systemic concern; qualitative factors remain elevated [46][50] Question: Can you elaborate on the CNI loan portfolio and its recent contraction? - The contraction was primarily due to lower utilization and paydowns in CNI lines [58] Question: What is the strategy for deposit growth moving forward? - The company aims for a 2% to 5% net growth in deposits, focusing on core deposit relationships [61] Question: How does the company plan to utilize cash flows from securities? - Plans to systematically add to the bond portfolio as opportunities arise [66] Question: What is the company's approach to share repurchases? - The company views share repurchases as a good use of excess capital and plans to continue this strategy [80]

Financial Data and Key Metrics Changes - Earnings per share for the quarter was $1.39 diluted, up $0.09 from the linked December and up $0.40 from the previous March [5] - Net interest margin for the quarter was 3.39%, compared to 3.15% for the same period last year and up from 3.36% in the previous quarter [5] - Net interest income increased by 3.5% quarter over quarter and 14.4% year over year due to higher average earning asset balances and net interest margin expansion [6][7] - Tangible book value per share increased to $40.37, up $4.86 or almost 14% year over year [8] Business Line Data and Key Metrics Changes - Gross loan balances decreased by $3.5 million compared to December but increased by $252 million year over year, reflecting a growth of almost 7% [6][7] - Deposit balances increased by approximately $51 million in the third quarter and by $275 million or about 7% year over year [7] - Non-interest income decreased by 2.9% compared to the linked quarter, primarily due to lower deposit account fees [20] Market Data and Key Metrics Changes - Adversely classified loans increased to $49 million or 1.2% of total loans, up $9 million during the quarter [9] - Non-performing loans (NPLs) were $22 million, an increase of $14 million compared to the last quarter, totaling 0.55% of gross loans [10] - Total delinquent loans were $24 million, up $11 million from December [11] Company Strategy and Development Direction - The company is focusing on improving credit quality and has redoubled efforts to address recent trends in problem loans [12] - A new qualitative factor in the calculation for allowance for credit losses has been implemented to reserve more for agricultural-related exposure [16] - The company is optimistic about achieving at least mid-single-digit loan growth for the fiscal year, supported by a strong pipeline [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continuing positive trends in earnings and profitability through fiscal year 2025 [25] - The company is monitoring economic conditions closely, particularly in light of potential changes in economic policy that could affect credit losses [24] - Management noted that while there are signs of stress among consumers and small businesses, broader trends in commercial real estate remain stable [50] Other Important Information - The company has initiated performance improvement initiatives to enhance customer service and operational efficiency [26] - There are ongoing discussions regarding potential mergers and acquisitions, although no immediate opportunities are anticipated due to market volatility [26] Q&A Session Summary Question: Inquiry about margin specifics and CD roll-off rates - Management indicated that approximately $215 million in CDs are rolling off at rates averaging around 4.25% over the next three months, with a total of $1.2 billion renewing at an average rate of 4.26% over the next year [30] Question: Assessment of agricultural commodities and tariffs - Management noted limited visibility on the impact of tariffs but indicated that government price supports would kick in if prices remain low [32] Question: Discussion on net interest margin and renewal rates - Management confirmed that the reported net interest margin was around 3.4%, with renewal rates for loans averaging between 7.25% and 7.50% [39] Question: Concerns regarding non-performing loans and collateral - Management acknowledged the increase in NPLs, particularly related to medical lease properties, and indicated that charge-offs are anticipated [41] Question: Capital priorities and potential share buybacks - Management stated that share repurchases would depend on stock price and market conditions, with a target tangible common equity ratio of 8% to 9% [45]

Financial Data and Key Metrics Changes - Synovus reported adjusted earnings per share of $1.30, a 4% increase from the previous quarter and a 65% increase year-over-year. Excluding the FDIC special assessment, adjusted earnings per share rose 53% [7][8] - Net interest income was $454 million, up 8% year-over-year and flat sequentially, with a net interest margin of 3.35%, an increase of seven basis points from the previous quarter [16][17] - Adjusted non-interest revenue was $117 million, a decline of 6% sequentially but an increase of 1% year-over-year [22] Business Line Data and Key Metrics Changes - Funded loan production was the highest since Q4 2022, leading to loan growth of $40 million in the quarter, with an annualized growth rate of 8% in high-growth lines of business [9][18] - Core deposits increased by 3% year-over-year, with positive trends in the overall deposit mix despite a decline in time deposits [20] - Adjusted non-interest expense was flat on a linked quarter basis and down 3% year-over-year, driven by controlled employment and project-related costs [24] Market Data and Key Metrics Changes - A commercial client survey indicated a rise in negative sentiment, with 17% of clients expecting business activity to decline over the next 12 months, up from 10% last quarter [9][10] - 41% of clients believe business activity will increase over the next 12 months, unchanged from the previous survey [10] Company Strategy and Development Direction - The company is focused on mitigating risks from an economic slowdown while seizing opportunities where it has a competitive advantage [12] - Synovus plans to maintain a loan growth target of 3% to 5% for 2025, primarily from middle market, corporate and investment banking, and specialty lending [32][34] - The company is committed to investing prudently to optimize long-term growth while managing overall expense growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health and resilience of the balance sheet despite economic uncertainties, emphasizing proactive balance sheet management and diversified business mix [11] - The outlook assumes moderate growth conditions with four Fed funds cuts throughout the year, impacting net interest margin [32][36] Other Important Information - The capital position remained strong with a preliminary common equity tier one ratio of 10.75% and total risk-based capital at 13.65% [28] - The company is engaged in efforts to identify risks associated with recent policy changes, including outreach to clients and monitoring tools [27] Q&A Session Summary Question: Can you talk about the lending environment and what factors might influence loan growth? - Management noted that recent tariff policy announcements have introduced uncertainty, but 41% of clients still expect business activity to increase. Loan production is expected to continue growing based on strong pipelines [43][45][46] Question: Was the strong loan production due to borrowers stockpiling inventories before tariffs? - Management clarified that while some industries saw an uptick, overall line utilization did not indicate significant stockpiling, and production was broad-based across various sectors [63][65] Question: How do you view the margin outlook given recent changes? - Management expressed satisfaction with the margin trajectory, expecting it to remain stable in the near term, but noted potential pressure from Fed policy changes [55][56] Question: Can you provide more detail on the impact of DC policy changes on your customer base? - Management indicated that about 15% of top borrowers felt a meaningful impact from policy changes, but overall exposure is limited. The company is actively engaging with affected clients [93][94][96] Question: What is the outlook for capital markets revenue? - Management noted that capital markets revenue was impacted by a lower volume of large loans and client preferences for floating rates, but expects improvement as loan production increases [108][110]

Simmons First National Corporation (SFNC) Q1 2025 Earnings Conference Call April 17, 2025 08:30 AM ET Company Participants Operator - Conference Call OperatorEd Billick - Director of Investor RelationsJay Brogdon - PresidentDaniel Hobbs - CFOGeorge Makris - Chairman and CEO Conference Call Participants David Feaster - Analyst, Raymond JamesWoody Lee - Analyst, KBWAhmad Hassan - Analyst, DA DavidsonMatt Olney - Analyst, Stevens Operator Good morning and welcome to the Simmons First National Corporation first ...

Financial Performance - PNC Financial Services Group reported a net income of $1,499 million for Q1 2025, a decrease from $1,627 million in Q4 2024 but an increase from $1,344 million in Q1 2024 [1][4][5] - Net interest income was $3,476 million, down 1% from Q4 2024 but up 6% from Q1 2024, with a net interest margin (NIM) of 2.78%, an increase of 3 basis points from Q4 2024 [1][7][9] - Total revenue for Q1 2025 was $5,452 million, a decrease of $115 million from Q4 2024 but an increase of $307 million from Q1 2024 [6][9] Noninterest Income and Expenses - Noninterest income totaled $1,976 million, down 3% from Q4 2024 due to a slowdown in capital markets activity and seasonality [1][9][10] - Noninterest expenses decreased by 3% to $3,387 million compared to Q4 2024, reflecting lower asset impairments and seasonally lower expenses [1][12][13] Balance Sheet and Credit Quality - Average loans decreased by $2.4 billion, or 1%, to $316.6 billion compared to Q4 2024, while spot loans increased by $2.4 billion, reflecting a 3% growth in commercial and industrial loans [1][9][15] - The allowance for credit losses remained stable at $5.2 billion, with a ratio of 1.64% of total loans [30][32] - Total delinquencies increased to $1.4 billion, up 4% from Q4 2024, primarily due to higher consumer loan delinquencies [30][33] Capital and Shareholder Returns - PNC maintained a strong capital position with a common equity Tier 1 (CET1) capital ratio of 10.6% as of March 31, 2025, up from 10.5% at the end of 2024 [1][25][29] - The company returned approximately $200 million to shareholders through dividends and share repurchases [2][27][29] Business Segment Performance - Retail Banking reported earnings of $1,112 million, an increase of 4% from Q4 2024, driven by lower noninterest expenses [35][36] - Corporate & Institutional Banking earnings decreased to $1,244 million, down 9% from Q4 2024, impacted by lower net interest and noninterest income [39][40] - The Asset Management Group saw earnings increase to $113 million, reflecting growth in discretionary client assets under management [41][42]

Southside Bancshares (SBSI) Q4 2024 Earnings Call January 29, 2025 12:00 PM ET Company Participants Lindsey Bailes - VP-IRLee Gibson - CEOJulie Shamburger - CFOWoody Lay - Vice PresidentJordan Ghent - Senior Research AssociateTim Mitchell - Equity Research Associate Operator Good day and thank you for standing by. Welcome to the Southside Bancshares 4th Quarter and Year End 2024 Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a questio ...

Financial Data and Key Metrics Changes - The company reported a quarterly net loss of $2.7 million, an improvement from a net loss of $4 million in the prior quarter [3][7] - Net interest income increased by $386,000, leading to a 7 basis point improvement in net interest margin [7][8] - Tangible book value per share remained flat at $14.74 [6] Business Line Data and Key Metrics Changes - Gross loans increased by $32.5 million during the quarter, predominantly in owner-occupied commercial real estate [10] - The yield on loans improved by 4 basis points to 4.57% [8] - The company funded $59 million of loans during the quarter, yielding approximately 7.5% [5] Market Data and Key Metrics Changes - Deposits grew by $25 million, with a 17% increase in non-interest bearing accounts [3][11] - Non-performing assets declined modestly, with non-performing assets to assets and non-performing loans to loans remaining relatively flat at 25 basis points and 33 basis points respectively [12] Company Strategy and Development Direction - The company aims to transform into a more commercially oriented institution, focusing on attracting full banking relationships with small to medium-sized businesses [4] - A strategic plan is in place to develop new relationships and deepen existing ones within the communities served [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improvement in yield on interest-earning assets and cost of interest-bearing liabilities, indicating a potential inflection point in net interest margin [4] - The company expects continued balance sheet and interest income growth while remaining disciplined in underwriting standards [5] Other Important Information - The company has robust liquidity with $408 million in untapped borrowing capacity and $211 million in unencumbered available-for-sale securities and unrestricted cash [6] - The allowance for credit losses was released by $301,000, primarily due to loan growth from commitments made in the previous quarter [9][10] Q&A Session Summary Question: Loan growth expectations and multifamily sector performance - Management indicated that they are focusing on growing the commercial book and are monitoring concentration limits in the multifamily space [15] Question: Pipeline activity and future growth - Management noted an improvement in the pipeline, with $60 million of commercial loans in letters of intent [16] Question: Deposit cost progression and margin expectations - Management reported a decrease in deposit costs to 2.9% and anticipates further improvements as rates trend lower [17][19] Question: Expense guidance for 2025 - Management expects operating expenses to remain in the mid to high $13 million range for 2025 [28] Question: Variable compensation metrics for 2025 - The compensation metrics are aligned with growth in loans, deposits, and net interest margin [30] Question: Construction portfolio yields - The yields on the construction portfolio are expected to be between 50 to 100 basis points above the prime rate [31]

Financial Data and Key Metrics Changes - Net income for Q4 2024 was $130 million, an increase of $34 million or 36% compared to Q4 2023 [6] - Diluted earnings per share rose to $1.37, up 34% from $1.02 in the same period last year [7] - Annualized return on average assets was 1.31% and average tangible common equity was 13.5% for Q4 2024 [8] - Net interest margin increased by 30 basis points to 3.05% compared to 2.75% in Q4 2023 [9] Business Line Data and Key Metrics Changes - Loans outstanding at Dec. 31, 2024, were $2.22 billion, a 4.6% increase from $2.12 billion at Dec. 31, 2023, primarily due to the merger with Lone Star Bank [10] - Deposits increased to $2.84 billion, up 4.4% from $2.72 billion at Dec. 31, 2023 [12] - Non-interest income for Q4 2024 was $39.8 million, compared to $36.6 million in Q4 2023 [20] Market Data and Key Metrics Changes - Non-performing assets totaled $81.54 million, or 37 basis points of loans, down from $89.92 million or 40 basis points at Sept. 30, 2024 [23] - The allowance for credit losses on loans was $3.89 million at Dec. 31, 2024 [15] Company Strategy and Development Direction - The company is interested in mergers and acquisitions, with indications that banks are more open to transactions under the new administration [15] - The Texas and Oklahoma economies are viewed positively, with Texas experiencing significant population growth [16] - The company aims to maintain a strong capital position to support growth opportunities without needing additional capital [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about organic loan growth in 2025, citing positive customer sentiment post-election [11] - The company expects net interest margin to continue expanding as assets reprice [17] - Management noted that the current economic environment is conducive to growth, with a favorable political climate in Texas and Oklahoma [16] Other Important Information - A stock repurchase program was announced, allowing for the acquisition of up to 5% of outstanding common stock over one year [9] - The efficiency ratio for Q4 2024 was 46.1%, an improvement from 55.6% in Q4 2023 [22] Q&A Session Summary Question: Update on NIM trajectory - Management expects NIM to be around 3.25% to 3.35% for 2025, with positive sentiment about the trajectory [33][34] Question: Loan growth sentiment - Management noted positive customer sentiment and anticipates low to mid-single-digit loan growth, with improvements expected in the Texas market [41][42] Question: Securities portfolio yield outlook - Management expects the yield on the securities portfolio to improve as they reinvest in higher-yielding securities [58] Question: Provision for credit losses - Management indicated that the current reserve levels are sufficient unless there are significant changes in the credit outlook [66][67] Question: Deposit growth outlook - Management anticipates a return to a more normalized deposit growth rate of 2% to 2.5% for the year [84]

Financial Data and Key Metrics Changes - The company reported a net operating profit of $2.98 billion or $0.54 per share for Q4 2024, with pre-tax pre-provisioned earnings at $41 million or 1.28% [4] - For the full year 2024, operating earnings were $11.94 billion or $2.17 per share, flat compared to 2023 [5] - The net interest margin (NIM) decreased during the quarter but is expected to increase moving forward [5][23] - The allowance for credit losses (ACL) coverage rose to 125 basis points when excluding the mortgage warehouse [16] Business Line Data and Key Metrics Changes - Funded loans saw a small decrease year-over-year, with expectations for positive loan growth in 2025 projected between low to mid-single digits [6] - Criticized loans declined by nearly 20% year-over-year, with total criticized loans at $36.56 million [12][13] - Operating non-interest income increased by $130,000 to $1.45 million, driven by strong performance in government-guaranteed loans [26] Market Data and Key Metrics Changes - The company experienced a 20% reduction in reliance on wholesale funding over the last year [14] - The loan-to-deposit ratio improved from 104% to 89% over the past two years [19] - The company has seen strong deposit growth, allowing for a reduction in brokered CDs and public funds [22] Company Strategy and Development Direction - The company is focused on disciplined loan growth and remixing its deposit portfolio to improve profitability [28] - Management aims to achieve a return on average assets (ROA) exceeding 1% by 2025, driven by loan growth and deposit repricing [5][33] - The company is engaging with a consulting firm to improve operational efficiency and leverage in various business areas [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit risk profile improving and expects net charge-offs to remain around 20 basis points for 2025 [66] - The company anticipates that 2025 will produce positive operating leverage, driven by improved NIM and stronger fee revenues [29] - Management noted that the pipelines for loan production are strong, particularly in Texas, and expects to maintain robust activity in real estate [38][39] Other Important Information - The Chief Financial Officer, Terry Earley, will retire in June 2025 but will continue to assist in a consulting role [80] - The new CFO will be Will Hofford, who has been with the company for thirteen years [81] Q&A Session Summary Question: What are the expectations for achieving a 1% ROA in 2025? - Management believes that loan growth and deposit repricing will be the main drivers to achieve the 1% ROA target in 2025 [33] Question: What is the outlook for loan growth given the current payoffs? - Management indicated that while payoffs are expected to continue, the production side of the business is strong, and they are confident in achieving necessary loan growth [39][41] Question: Can you provide details on the dynamics of non-interest bearing deposits? - Management noted that seasonal fluctuations and intentional exits from expensive deposit relationships contributed to the decline, but they expect non-interest bearing deposits to stabilize between 21% and 23% [60] Question: What is the outlook for government guaranteed loans in 2025? - Management is optimistic about the government guaranteed loan business, citing strong pipelines and production [62][75] Question: What is the expected net charge-off ratio for 2025? - Management expects the net charge-off ratio to remain around 20 basis points for 2025, with confidence in continued credit improvement [66]