SLM (SLM) Q1 2025 Earnings Call April 25, 2025 01:16 AM ET Company Participants Kate deLacy - Senior Director, Head of Investor RelationsJonathan Witter - CEO & DirectorPete Graham - EVP & CFOJeffrey Adelson - Executive DirectorNathaniel Richam-Odoi - Equity Research AssociateJohn Hecht - Managing DirectorMark Devries - Director Conference Call Participants Terry Ma - Senior Equity Research AnalystMoshe Orenbuch - Managing Director & Senior AnalystMichael Kaye - Equity Research AnalystRichard Shane - Stock ...

Financial Data and Key Metrics Changes - The first quarter earnings were 35% higher than the first quarter of the previous year, with net income reported at $7.8 million compared to $5.8 million in Q1 2024 [6][22]. - Net interest margin increased by 30 basis points compared to the fourth quarter of 2024, with five consecutive quarters of increases in net interest income [24]. - The cost of deposits decreased by 38 basis points this quarter compared to Q4 2024 [24]. Business Line Data and Key Metrics Changes - The loan portfolio was relatively flat at just over $3 billion, with approximately $100 million in payoffs from asset sales and refinance activity [14]. - The refinance activity replaced lower-yielding assets with new quality assets, split evenly between C&I business and commercial real estate transactions [15]. - There was no credit loss expense recorded in the first quarter, indicating strong credit quality [23]. Market Data and Key Metrics Changes - Deposit gathering efforts continue to be emphasized, although deposits decreased slightly due to ordinary cash flow fluctuations rather than loss of relationships [16]. - The Minnesota banks reported cautious customer behavior due to economic uncertainty, but there was success in attracting high-value retail deposits [18][20]. Company Strategy and Development Direction - The company focuses on building comprehensive banking relationships rather than just lending, emphasizing the importance of service and relationship management [44]. - The strategy includes targeting C&I prospects with significant deposit balances and high-value retail deposits [20]. - The company aims to maintain strong credit quality through conservative underwriting practices and a commitment to customer relationships [12]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan pipeline, indicating that opportunities exceed planned payoffs [34]. - Concerns were raised about economic uncertainty, tariffs, and potential supply chain issues affecting customers [11][40]. - The company remains committed to its conservative philosophy and expects its credit portfolio to remain strong despite economic challenges [12]. Other Important Information - A dividend of $0.25 per share was declared, payable on May 21 to shareholders of record as of May 7 [7]. - There were no significant one-time items in noninterest income or expense this quarter, and occupancy expenses reflect new building costs [26]. Q&A Session Summary Question: Is there more room to bring deposit costs down? - Management indicated that deposit costs are likely to remain static until market conditions change [29]. Question: What rates were new loans added at compared to those rolling off? - New loans were added at rates starting with six or seven, compared to previous loans starting with three or four [32]. Question: Will growth accelerate in the second quarter? - Management noted that while there are planned payoffs, they expect opportunities to exceed these payoffs [34]. Question: What is the outlook on expenses for the second quarter? - Management expects the first quarter performance to be indicative of future performance, with no significant items anticipated [36]. Question: What is the impact of tariffs on credit metrics? - Concerns were raised about potential cost increases and supply chain issues due to tariffs, but the customer base is considered seasoned and capable of weathering such challenges [40]. Question: How does the company retain core deposits despite low rates? - The company utilizes relationship-based pricing strategies for its commercial deposit base, allowing for negotiation on rates [50].

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.72, down from $0.96 in the linked quarter, with a $0.14 per share after-tax differential in the mortgage servicing rights fair value adjustment [30] - Net interest income remained unchanged at $38.5 million, while the net interest margin increased to 3.81% from 3.75% in the linked quarter, primarily due to a decline in the cost of deposits [31][32] - Deposits increased by $171.6 million to $3.79 billion at the end of the first quarter, with the cost of deposits decreasing to 219 basis points from 229 basis points in the linked quarter [33] Business Line Data and Key Metrics Changes - Loans held for investment increased by $20.8 million or 2.7% annualized, with growth in commercial owner-occupied real estate loans and commercial goods and services loans [18] - The indirect auto loan portfolio grew to $243 million, with a decline in thirty-plus days past due loans to 41 basis points from 47 basis points in the fourth quarter [24][26] - Non-interest income decreased to $10.6 million from $13.3 million in the linked quarter, primarily due to a decrease in mortgage banking revenues [27][28] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $818 million, with expectations of elevated early payments on loans in the first half of the year [21][22] - The company reported strong loan growth in the Permian market, marking the strongest growth since entering the market in 2019 [23] - The company anticipates loan growth to trend towards the lower end of the low to mid-single-digit range for the full year 2025 due to economic uncertainties [26] Company Strategy and Development Direction - The company plans to selectively add to its team across major metropolitan and rural markets to position for continued organic growth [12] - A $15 million stock repurchase program was authorized, with $8.3 million spent to repurchase shares in the first quarter, indicating a belief that shares are trading below intrinsic value [14][15] - The focus remains on organic growth, with a cautious approach to M&A activity due to current market uncertainties [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position to perform well through economic downturns, citing strong credit quality and proactive management [10][90] - The company believes it has the liquidity, capital, and team to capitalize on opportunities during economic difficulties [11] - Management acknowledged the uncertainty in the economic environment but remains focused on expanding the lending platform and maintaining strong customer relationships [17][90] Other Important Information - The allowance for credit losses to total loans held for investment ratio was 1.40%, with a recorded provision for credit losses of $420,000 [35] - Non-interest expense increased to $33 million from $29.9 million in the linked quarter, with expectations that this level will be a good run rate for the remainder of the year [38] Q&A Session Summary Question: On deposit cost and potential for further reduction - Management indicated that while the bulk of the work on deposit costs has been done, there is still room for further reductions in some accounts [46][48] Question: Loan yields and margin outlook - Management noted that while loan yields have been sticky, there may be some room for margin expansion, but it will depend on overall liquidity and loan production [50][56] Question: Elevated loan payoffs and future expectations - Management reported that payoffs were approximately $1.01 billion higher in the first quarter compared to the previous quarter, but they remain confident in overcoming these payoffs with healthy production [60][62] Question: Current hiring landscape and mortgage hiring outlook - Management stated they are actively hiring but are selective, focusing on finding the right talent rather than increasing headcount indiscriminately [71][74] Question: Loan portfolio concentration in energy and growth - Management indicated that around 4% of the loan portfolio is concentrated in energy, primarily driven by the energy service business [78] Question: Outlook for fee income excluding mortgage - Management expressed that fee income has been growing year over year, with expectations for continued growth in most areas, although mortgage remains a significant component [80][82]

South Plains Financial (SPFI) Q1 2025 Earnings Call April 24, 2025 05:00 PM ET Company Participants Steven Crockett - CFO & TreasurerCurtis Griffith - Chairman & CEOCory Newsom - Director and PresidentWoody Lay - Vice PresidentBrent Bates - CCOJoseph Yanchunis - Senior Equity Research Associate Operator Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial First Quarter twenty twenty five Earnings Conference Call. During today's presentation, all parties will be in a listen only mo ...

First BanCorp. (NYSE:FBP) Q1 2025 Earnings Conference Call April 24, 2025 12:00 PM ET Company Participants Ramon Rodriguez - Investor Relations Officer Aurelio Aleman - President and CEO Orlando Berges - Executive Vice President and CFO Conference Call Participants Frank Schiraldi - Piper Sandler Brett Rabatin - Hovde Group Steve Moss - Raymond James Kelly Motta - KBW Timur Braziler - Wells Fargo Operator Hello, everyone, and thank you for joining the First BanCorp. First Quarter 2025 Financial Results Conf ...

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 2 basis points from the previous quarter [4][5] - Total deposits increased by $160.7 million, primarily in non-maturity deposits, with a significant growth 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][9] - Regulatory capital ratios remain above well-capitalized thresholds, with the TCE ratio rising to 9.3% from 9% in the prior quarter [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 [17][18] - The average interest rate for new commercial loans was 6.83%, up 20 basis points from the previous quarter [19][20] Market Data and Key Metrics Changes - The cost of interest-bearing deposits decreased to 1.92% from 1.98% in the prior quarter, with expectations for further decreases due to repricing of CDs [6][9] - Non-performing loans improved to 0.09% of total loans, down from 0.11% at year-end [12][13] Company Strategy and Development Direction - The company aims to leverage its solid balance sheet and strong capital position to navigate economic uncertainties and pursue growth opportunities [20] - There is a focus on maintaining a balanced loan mix, particularly between commercial and industrial (C&I) loans and real estate [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core profitability due to strong deposit growth and prudent risk management, projecting continued benefits through 2025 [3][20] - The company is closely monitoring emerging economic risks, including tariffs and federal funding changes, which could impact credit quality [15][55] Other Important Information - A pretax loss of $3.9 million was recognized on the sale of $61 million of securities as part of a strategic repositioning of the balance sheet [7] - The company has 990,000 shares available for repurchase under the current plan, with potential future buybacks depending on market conditions [10][33] Q&A Session Summary Question: Perspective on Heritage's position among independent banks in the Northwest - Management believes the bank is well-positioned with specific goals for 2025 and is ready for potential M&A opportunities [25][26] Question: Details on the new team in Spokane - The team was acquired from a larger regional bank, and the decision was based on a thorough assessment of fit and market opportunity [29][30] Question: Comments on stock buyback activity - The decision on buybacks is made quarterly, with no repurchases in Q1 due to stock price increases, but future activity may resume depending on conditions [32][33] 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][41] Question: Opportunities for further growth in loan commitments - Management expects a balanced mix of C&I and real estate loans, with a strong focus on deposit growth [49][50] Question: Anticipated loan growth and appetite for credit - The company projects an annualized growth rate of 5% to 8% for Q2, with a strong pipeline but acknowledges uncertainty in the market [58][62]

Old Second Bancorp (OSBC) Q1 2025 Earnings Call April 24, 2025 10:00 AM ET Company Participants James Eccher - President, CEO & Chairman of the BoardBradley Adams - EVP, COO & CFOChristopher Mcgratty - MD & Head of U.S. Bank ResearchTerry Mcevoy - Managing DirectorDavid Long - Managing DirectorBrian Martin - Director - Banks & Thrifts Conference Call Participants Nathan Race - Managing Director & Senior Research AnalystJeffrey Rulis - MD & Senior Research Analyst Operator Good morning, everyone, and thank y ...

Trustmark Corporation (NASDAQ:TRMK) Q1 2025 Results Conference Call April 23, 2025 9:30 AM ET Company Participants Joey Rein - Director of Corporate Strategy Duane Dewey - President & Chief Executive Officer Tom Owens - Chief Financial Officer Barry Harvey - Chief Credit & Operations Officer Tom Chambers - Chief Accounting Officer Conference Call Participants Will Jones - KBW Tim Mitchell - Raymond James Christopher Marinac - Janney Montgomery Scott Operator Good morning, ladies and gentlemen, and welcome t ...

Popular (BPOP) Q1 2025 Earnings Call April 23, 2025 11:00 AM ET Company Participants Paul Cardillo - Senior VP & Investor Relations OfficerIgnacio Alvarez - CEOJavier D. Ferrer - President & COOJorge Garcia - Executive VP & CFOLidio Soriano - Executive VP & Chief Risk Officer of Corporate Risk Management GroupFrank Schiraldi - Managing DirectorBen Gerlinger - Vice President of Equity ResearchGerard Cassidy - Managing DirectorTimur Braziler - Director - Mid-Cap Bank Equity ResearchJared Shaw - Managing Direc ...

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]