Financial Data and Key Metrics Changes - The company reported net income of $21,500,000 for the first quarter of 2025, resulting in diluted earnings per share of $0.71, with an annualized return on average assets of 1.03% and an annualized return on average tangible common equity of 14.14% [5][14] - There was a linked quarter decrease in loans of $94,400,000 or 2%, primarily due to payoff activity in the commercial real estate (CRE) portfolio [5][14] - The net interest margin increased by three basis points to 2.86%, and net interest income rose by $145,000 or 0.3% compared to the linked quarter [6][20] Business Line Data and Key Metrics Changes - First quarter commercial loan production totaled approximately $142,000,000, representing a 46% increase over the first quarter of 2024, with only $52,000,000 funded during the quarter [9][10] - The average rate of loans funded during the first quarter was approximately 7.3% [15] - Nonperforming assets remained low at 0.39% of total assets, with classified loans totaling $67,000,000 as of March 31, compared to $48,000,000 on December 31 [12][15] Market Data and Key Metrics Changes - The company noted that the Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate [6] - The securities portfolio decreased by $76,900,000 or 2.7% from the previous quarter, driven primarily by maturities and principal payments [16] Company Strategy and Development Direction - The company anticipates mid-single digit loan growth for the year despite the first quarter's loan reduction, with a loan pipeline exceeding $1,900,000,000, the largest in the last 24 to 36 months [5][10] - The company is expanding its commercial and industrial (C and I) initiatives, which now represent approximately 25% of the total pipeline [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market conditions and the potential for loan growth, despite recent uncertainties related to tariff announcements and negotiations [6] - The company expects to see a positive impact on margins due to anticipated repricing of the CD portfolio and new swaps implemented in the second quarter [33][34] Other Important Information - The company did not purchase any shares of common stock during the first quarter but has repurchased 196,419 shares at an average price of $26.82 per share after the quarter ended [19] - The effective tax rate for the first quarter was 18%, with an estimated annual effective tax rate of 18% for 2025 [22] Q&A Session Summary Question: Can you discuss the loan pipeline and guidance for loan growth? - Management confirmed that the loan pipeline is the largest seen in a while, with expectations of 25% to 30% pull-through historically [28] Question: What is the outlook for the margin given the CD portfolio? - Management anticipates a positive impact on the margin as a portion of the CD portfolio matures and reprices lower [33] Question: Can you provide context on the recent expense reductions? - The decrease in expenses was not due to targeted reductions but rather a result of lower salaries and employee benefits, along with other factors [39] Question: What is the status of the restructured CRE credit? - The restructured loan is located in Austin, Texas, and while it was moved to nonperforming status, the borrower has not missed any payments and leasing activity is positive [41] Question: What is the outlook for swap fee income? - Management expects swap fee income to increase in the upcoming quarters, projecting it to be several times higher than the first quarter [51]

Financial Data and Key Metrics Changes - The company achieved net income of $23.6 million, representing earnings per share of $0.83 and a return on assets (ROA) of 1.2% [5] - The net interest margin was strong at 4.07%, maintaining above 4% for ten consecutive quarters [14] - Loans increased by 7% and deposits grew by 12% annualized at the end of the quarter [5][11] - The loan to deposit ratio improved to 94.3% from 95.6% at the end of the previous year [12] Business Line Data and Key Metrics Changes - Service fee income represented 22.6% of total revenues, showing slight growth over the last quarter [5] - The C&I portfolio drove loan growth, while the commercial real estate portfolio experienced a decline [10] - Total new loan fundings totaled $399 million, up 48% from the previous quarter and 37% from the same quarter last year [11] Market Data and Key Metrics Changes - The company noted strong growth in savings and money market accounts, with total annualized growth at 20% [12] - The credit quality remained stable, with nonperforming loans as a percentage of total loans increasing to 1.21% [21] Company Strategy and Development Direction - The company is focused on relationship-based banking and aims to deliver positive operating leverage in 2025 and beyond [5][19] - The management believes there is significant growth potential in their markets due to a small market share [10] - The company is considering opportunistic M&A activities, particularly in challenging market conditions [29][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the U.S. economy, particularly in their operational regions [9] - They acknowledged macroeconomic uncertainties but did not see pervasive issues in their loan portfolio [6][20] - The company expects mid-single-digit growth for both loans and deposits for the full year [13] Other Important Information - The provision expense for the first quarter was $3.8 million, resulting in an allowance for credit loss ratio of 1.42% [20] - The company’s tangible book value per share improved to $34.88, with a CET1 ratio of 13.26% [22] Q&A Session Summary Question: Can you elaborate on the lower expense guidance for 2025? - The lower expense guidance is linked to macroeconomic uncertainty and a slowdown in mortgage activity, impacting variable compensation [27][28] Question: How does the current environment affect M&A thoughts? - The company remains opportunistic regarding M&A, feeling confident in their capital levels and not wanting to risk shareholders with volatile assets [29][30] Question: Can you provide insights on loan growth and competition? - Loan growth remains strong, particularly in the C&I space, with competitive pricing and a robust pipeline [38][41] Question: What is the outlook for deposit costs and growth? - The company expects stable deposit costs but acknowledges competitive pressures; growth is driven by both corporate and consumer sides [42][45] Question: Can you clarify the impact of the MSR write-down on mortgage revenue? - The impact was primarily from the MSR net capitalization due to macro rate changes and CPR, with negligible effects from hedging [54] Question: What is the company's interest rate sensitivity? - The company is slightly asset sensitive but generally neutral regarding interest rate changes [68] Question: Can you provide more details on the nonaccrual loan mentioned? - The nonaccrual loan was a $13 million credit with cross-border exposure in the manufacturing sector, contributing to the increase in nonperforming loans [70][71]

Core Viewpoint - Summit State Bank reported a significant improvement in net income for the first quarter of 2025, driven by strong net interest income and a reduction in problem loans compared to the previous year and quarter [1][2]. Financial Performance - Net income for Q1 2025 was $2,494,000, or $0.37 per diluted share, compared to $1,395,000, or $0.21 per diluted share in Q1 2024, and a net loss of $7,142,000, or $1.06 loss per diluted share in Q4 2024 [1][27]. - The net interest margin increased to 3.19% in Q1 2025 from 2.81% in Q1 2024 and 2.88% in Q4 2024 [1][5]. - Non-interest income decreased to $646,000 in Q1 2025 from $948,000 in Q1 2024, primarily due to lower gains on sales of SBA guaranteed loan balances [8][9]. Credit Quality - Non-performing assets decreased to $21,884,000 at March 31, 2025, down from $41,548,000 a year earlier and $32,191,000 at the end of Q4 2024 [15][16]. - The bank reduced non-performing loans by $10,307,000 during Q1 2025 compared to the previous quarter and by $24,101,000 compared to a year ago [2][15]. Balance Sheet Management - Total deposits increased by 2% to $957,065,000 as of March 31, 2025, compared to $939,202,000 a year earlier, while net loans decreased by 4% to $877,354,000 [10][12]. - The Tier 1 leverage ratio improved to 9.45% at March 31, 2025, compared to 9.21% a year earlier, indicating strong capital levels [14][27]. Operational Efficiency - Operating expenses decreased to $6,253,000 in Q1 2025 from $6,400,000 in Q1 2024, attributed to cost-saving measures including a reduction in workforce [9][27]. - The bank maintained strong liquidity of $448,039,000, representing 42.1% of total assets as of March 31, 2025 [1][10].

Core Insights - Riverview Bancorp reported a net income of $1.1 million, or $0.05 per diluted share, for the fourth fiscal quarter ended March 31, 2025, a decrease from $1.2 million, or $0.06 per diluted share, in the previous quarter [2][4] - For fiscal 2025, net income increased to $4.9 million, or $0.23 per diluted share, compared to $3.8 million, or $0.18 per diluted share, for fiscal 2024 [3][9] - The company experienced a net interest income of $9.2 million for the quarter, up from $8.6 million in the same quarter last year, with a net interest margin of 2.65% [2][8] Financial Performance - Net interest income for fiscal 2025 was $36.3 million, down from $38.1 million in fiscal 2024, attributed to increased interest expenses [7] - Non-interest income rose to $3.7 million in the fourth quarter, compared to $494,000 in the same quarter last year, largely due to a strategic investment restructure [12] - Non-interest expense decreased to $11.4 million in the fourth quarter from $13.1 million a year ago, reflecting improved operational efficiency [14] Asset Quality - Non-performing assets remained low at $155,000, or 0.01% of total assets, consistent with the previous year [9][22] - The allowance for credit losses was stable at $15.4 million, representing 1.45% of total loans [26] Balance Sheet Highlights - Total loans increased to $1.06 billion at March 31, 2025, compared to $1.02 billion a year earlier [9][16] - Total deposits were $1.23 billion, unchanged from the previous year, with a notable increase in non-interest checking accounts [19] - Shareholders' equity rose to $160.0 million, with tangible book value per share increasing to $6.33 [21] Strategic Initiatives - The company completed a three-year strategic plan focusing on profitable growth and digital leadership, emphasizing employee and client engagement [5] - Riverview's loan production outperformed the previous four quarters, indicating a strong relationship-focused approach [4] Capital and Liquidity - Riverview maintained a total risk-based capital ratio of 16.27% and a Tier 1 leverage ratio of 11.10%, well above regulatory requirements [27] - The company had approximately $471.3 million in available liquidity, including borrowing capacity from the FHLB and the Federal Reserve Bank [28][29]

Core Points - Endeavor Bancorp reported a net income of $1.36 million, or $0.32 per diluted share, for Q1 2025, showing an increase from $1.08 million in Q4 2024 and $407,000 in Q1 2024 [1][9] - The company experienced significant growth in loans and deposits, with net loans increasing by 4.6% quarter-over-quarter and 34.9% year-over-year, while total deposits grew by 4.2% from the previous quarter and 27.2% from the previous year [3][12] - The net interest margin improved to 4.12% in Q1 2025, up 15 basis points from Q4 2024 and 44 basis points from Q1 2024, driven by strong loan growth and improved funding costs [5][21] Financial Performance - Total interest income for Q1 2025 was $11.1 million, an increase of $365,000 from the previous quarter, while total interest expenses decreased by $130,000 [4][21] - Non-interest income rose to $183,000 in Q1 2025, a 14% increase compared to Q4 2024 [6][21] - Non-interest expenses were $4.86 million in Q1 2025, reflecting a year-over-year increase of $725,000 due to strategic investments in staff [7][21] Balance Sheet Highlights - Total assets increased by $26.2 million, or 3.9%, to $704.6 million as of March 31, 2025, compared to $678.3 million at the end of Q4 2024 [10][21] - Total loans outstanding reached $597.8 million, up $26.0 million, or 4.6%, from the previous quarter [11][21] - Total deposits amounted to $626.2 million, an increase of $24.9 million, or 4.1%, from the previous quarter [12][21] Capital and Efficiency Ratios - The annualized return on average equity for Q1 2025 was 11.68%, compared to 9.35% in Q4 2024 and 3.79% in Q1 2024 [9][21] - The efficiency ratio improved to 67.6% in Q1 2025, down from 71.2% in Q4 2024 and 79.9% in Q1 2024, indicating better operational efficiency [7][21] - The Tier 1 leverage ratio was 10.57% as of March 31, 2025, remaining well above regulatory minimums [15][21]

Financial Data and Key Metrics Changes - The company 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][10] - Net interest margin expanded by eight basis points to 3.88%, reflecting a reduction in total funding cost by 15 basis points to 1.77% [5][6] - Total net credit costs increased to $17.6 million, up $8.9 million from the previous quarter, with net charge-offs at $24.6 million [9] 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 [6] - Institutional Services showed strong year-over-year growth, contributing to higher deal flow [6] - Cash Connect fees declined quarter over quarter due to seasonally lower volumes, but profit margins improved through expense and pricing offsets [7] Market Data and Key Metrics Changes - Client deposits declined by 1% linked quarter but increased by 4% year over year, with non-interest bearing deposits up by 6% year over year [8] - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [8] Company Strategy and Development Direction - The company plans to target a CET1 ratio of 12% in the medium term, with a gradual glide path over two to three years [11][56] - The company is committed to returning capital to shareholders, having returned $62.6 million in capital during the first quarter, including $53.8 million in buybacks and a 13% increase in the quarterly dividend [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainty, leading to postponed investments [32][33] - The company remains engaged with clients and is monitoring the overall environment closely, indicating a stable outlook despite current challenges [9][20] Other Important Information - The company has a strong capital position with a CET1 ratio of 14.1% and TCE of 8.63%, significantly above regulatory targets [10] - The company is actively managing its net interest margin through various tools, including deposit beta management and optimization of wholesale funding [45][46] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical to update guidance after the second quarter due to the volatility of the environment, and there is nothing to read into the absence of guidance this quarter [16][17] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was primarily due to a one-off item and that the rest of the portfolio is performing as expected [19][20] Question: How should expenses be viewed going forward? - Management provided insights on seasonal impacts and one-time items affecting expenses, suggesting a run rate between the first and fourth quarters [21][24] Question: What is the outlook for commercial growth? - Management noted that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [32][33] Question: How are deposit beta expectations evolving? - Management exceeded their initial goal for deposit beta, reaching 38% this quarter, and plans to continue pushing higher [44][45] Question: What is the medium-term target for CET1? - Management indicated a two to three-year glide path to a 12% CET1 target, with discretion to adjust based on macroeconomic conditions [56][57] Question: How does the macro environment impact buyback decisions? - Management expressed confidence in their capital position but acknowledged the need to monitor the macro environment for any changes [59][60]

Byline Bancorp (BY) Q1 2025 Earnings Call April 25, 2025 10:00 AM ET Company Participants Brooks Rennie - Head-Investor RelationsAlberto Paracchini - PresidentRoberto Herencia - Chairman and CEOThomas J. Bell - Executive VP, Treasurer & CFOMark Fucinato - Executive VP & Chief Credit OfficerBrendan Nosal - Director - Equity ResearchDamon Delmonte - Managing DirectorTerry Mcevoy - Managing DirectorBrian Martin - Director - Banks & Thrifts Conference Call Participants Nathan Race - Managing Director & Senior R ...

1st Quarter 2025 Highlights: Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 66 percent from the prior year first quarter diluted earnings per share of $0.29 per share.Net income was $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent, from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the p ...

Core Points - BayFirst Financial Corp. reported a net loss of $0.3 million, or $0.17 per common share, for Q1 2025, a significant decrease from a net income of $9.8 million in Q4 2024 [1][5][27] - The company experienced net interest margin expansion to 3.77%, up 17 basis points from Q4 2024, and 35 basis points from Q1 2024 [3][6][27] - Total loans held for investment increased by $18.3 million, or 1.7%, during Q1 2025, and by $149.9 million, or 16.0%, year-over-year [3][13][27] - Noninterest income decreased to $8.8 million in Q1 2025 from $22.3 million in Q4 2024, primarily due to lower borrower demand and a significant gain on sale of branch properties in the previous quarter [9][10][27] - The company announced a share repurchase program allowing for the repurchase of up to $2.0 million of outstanding shares [21] - A second quarter cash dividend of $0.08 per common share was declared, continuing the company's history of quarterly dividends since 2016 [22] Financial Performance - Net interest income from continuing operations was $11.0 million in Q1 2025, an increase from $10.7 million in Q4 2024 and $8.7 million in Q1 2024 [6][8][27] - Noninterest expense increased to $15.8 million in Q1 2025 from $15.3 million in Q4 2024, but decreased from $17.8 million in Q1 2024 [10][27] - The provision for credit losses was $4.4 million in Q1 2025, compared to $4.5 million in Q4 2024 and $4.1 million in Q1 2024 [15][27] Asset Quality - The ratio of allowance for credit losses (ACL) to total loans held for investment was 1.61% as of March 31, 2025, slightly up from 1.54% at the end of 2024 [16][27] - Net charge-offs for Q1 2025 were $3.3 million, a decrease from $3.4 million in Q4 2024 and $3.7 million in Q1 2024 [17][27] - Nonperforming assets increased to 2.08% of total assets as of March 31, 2025, compared to 1.50% at the end of 2024 [17][27] Balance Sheet - Total assets increased by $3.7 million, or 0.3%, during Q1 2025, reaching $1.29 billion, driven by loan growth [12][27] - Total deposits decreased by $15.0 million, or 1.3%, during Q1 2025, but increased by $121.0 million, or 12.0%, year-over-year [14][27] - The company had $20.0 million of borrowings from the Federal Home Loan Bank as of March 31, 2025, compared to no borrowings at the end of 2024 [20][27] Strategic Initiatives - The company aims to grow recurring revenue through net interest income, reducing reliance on gains from government guaranteed loans [2][3] - A focus on expanding low-cost deposit accounts to fund the growing loan portfolio is part of the strategic plan [2][3]

Financial Data and Key Metrics Changes - The company reported a net income of $77 million, or $0.47 per share, compared to $76 million, or $0.46 per share, in the previous quarter, reflecting a solid return on average assets of 1.64% [13][14] - Net interest income for the quarter was $212 million, an increase of $3 million from the prior quarter, with a net interest margin expanding by 19 basis points to 4.52% [14][17] - The efficiency ratio improved to 49.6% from 51.6% in the previous quarter, indicating better cost management [20] Business Line Data and Key Metrics Changes - Total loans were slightly down on a linked quarter basis, but originations were healthy at $1.2 billion, consistent with typical first-quarter performance [6][7] - Core deposit flows remained stable, with non-interest-bearing deposits increasing by $70 million [7] - Credit performance was stable, with early delinquency rates decreasing compared to the prior quarter [8][22] Market Data and Key Metrics Changes - Consumer confidence is currently uncertain due to pending fiscal policies and tariffs, impacting overall market sentiment [9] - Year-to-date fiscal government tax collections increased by 3%, and the unemployment rate remained low [9] Company Strategy and Development Direction - The company continues to focus on margin expansion and maintaining a healthy balance sheet while navigating economic uncertainties [5][11] - There is an ongoing investment in digital infrastructure, including a transition to a centralized cloud system [10] - The company aims to deploy excess capital thoughtfully to enhance franchise and shareholder value [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about loan growth in the second half of the year, contingent on the resolution of current market uncertainties [54][57] - The company anticipates a normalization of consumer credit metrics, expecting improvements in charge-off rates year-over-year [58][59] Other Important Information - The company redeemed approximately $50 million in subordinated debentures and declared $30 million in common stock dividends during the quarter [8][25] - The tangible book value per share increased by 7% to $10.64, with a tangible common equity ratio expanding to 9.1% [25] Q&A Session Summary Question: Can you provide details on the yields for the second half of the year? - The expected yields for the second half of the year are projected to be around 1.35% to 1.40% [28] Question: What assumptions are made regarding margin expansion? - The company assumes a pickup of around 150 to 300 basis points, considering potential rate reductions [30] Question: What is the outlook for loan growth? - Loan growth is expected to be more pronounced in the second half of the year, with a good pipeline currently in place [56] Question: How is the company managing deposit flows? - The company is seeing more stability in deposit flows compared to previous years, with growth in core transaction and non-interest-bearing deposits [65] Question: What is the company's exposure to the Florida condo market? - The company has very limited exposure to the condo market in Florida, primarily in the mortgage portfolio [83]