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 Merchants Corporation (NASDAQ:FRME) Q1 2025 Results Conference Call April 24, 2025 11:30 AM ET Company Participants Mark Hardwick - Chief Executive Officer Michael Stewart - President Michele Kawiecki - Chief Financial Officer John Martin - Chief Credit Officer Conference Call Participants Daniel Tamayo - Raymond James Terry McEvoy - Stephens Damon DelMonte - KBW Nathan Race - Piper Sandler Brian Martin - Janney Montgomery Scott Operator Thank you for standing by, and welcome to the First Merchants Co ...

Image source: The Motley Fool.Wednesday, Apr 23, 2025CALL PARTICIPANTSDavid A. Brager: President and Chief Executive OfficerAllen Nicholson: Executive Vice President and Chief Financial OfficerNeed a quote from one of our analysts? Email [email protected]Net Earnings: Reported net earnings of $51.1 million, or $0.36 per share, for Q1 2025, representing the 192nd consecutive quarter of profitability Net Interest Margin: Expanded by 13 basis points to 3.31% in Q1 2025, up from 3.18% in Q4 2024Total Loans: $8. ...

Core Insights - S&T Bancorp reported strong Q1 2025 results with earnings per share (EPS) of 87¢, net income of $33 million, and growth in customer deposits and loans, exceeding previous quarters and consensus estimates [2][3][8] - The company experienced a 7.23% annualized growth in customer deposits, marking the seventh consecutive quarter of expansion, primarily driven by consumer activities [4][9] - Loan growth was recorded at 4.89% annualized, with significant contributions from commercial real estate and construction sectors, while C&I loan balances declined by $20 million [5][9] Financial Performance - Net interest margin expanded by 4 basis points to 3.81% in Q1 2025, supported by a decrease in funding costs [2][10] - The allowance for credit losses decreased by approximately $2.5 million, ending the quarter at 1.26% of total loans, indicating improved asset quality [2][9] - The company completed $193.6 million in bond restructurings, projected to increase net interest income by about $5 million in 2025 [5][11] Growth Outlook - Management expressed confidence in mid-single-digit loan growth for the first half of 2025, with potential acceleration to high mid-single digits in the second half as newly hired bankers' pipelines materialize [3][4][9] - The commercial loan pipeline increased by nearly 40% since year-end 2024, indicating strong future growth potential [4][9] - The company anticipates crossing the $10 billion asset threshold organically in the second half of 2025 [5][14] Market Positioning - The company has been recognized for strong financial performance and superior employee engagement by organizations like Forbes and S&P [7][8] - The management team is focused on maintaining top-tier asset quality and profitability while navigating market uncertainties [8][29] - The company is actively recruiting C&I bankers to support pipeline expansion and organic growth [28][29]

Colony Bankcorp, Inc. (NYSE:CBAN) Q1 2025 Earnings Conference Call April 24, 2025 9:00 AM ET Company Participants Brantley Collins – Communications Manager Heath Fountain – Chief Executive Officer Derek Shelnutt – Executive Vice President and Chief Financial Officer Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to the Colony Bank First Quarter 2025 Conference Call. At this time all lines are in listen-only mode. Following the presentation, we will conduct a question-a ...

Colony Bankcorp (CBAN) Q1 2025 Earnings Call April 24, 2025 09:00 AM ET Company Participants Brantley Collins - Communication SpecialistHeath Fountain - CEODerek Shelnutt - Executive VP & CFO Operator Good morning, ladies and gentlemen, and welcome to the Colony Bank first quarter '20 '20 '5 conference call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call require immediate assistance, please dial 0. ...

Central Pacific Financial Corp. (NYSE:CPF) Q1 2025 Results Conference Call April 23, 2025 2:00 PM ET Company Participants Dayna Matsumoto - Group Senior Vice President, Director of Finance and Accounting Arnold Martines - Chairman, President and Chief Executive Officer David Morimoto - Senior Executive Vice President and Chief Financial Officer Ralph Mesick - Senior Executive Vice President and Chief Risk Officer Conference Call Participants David Feaster - Raymond James Andrew Liesch - Piper Sandler Operat ...

Central Pacific Financial (CPF) Q1 2025 Earnings Call April 23, 2025 02:00 PM ET Company Participants Dayna Matsumoto - EVP & CFOArnold Martines - Chairman, President & CEODavid Morimoto - Vice Chairman & COORalph Mesick - Senior EVP & Chief Risk OfficerDavid Feaster - Director - BankingAndrew Liesch - Managing Director Operator Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the Central Pacific Financial Corp. First Quarter twenty twenty five Conference Call. During today's ...

Financial Data and Key Metrics Changes - The company recorded net income of $9.4 million or $0.37 per diluted share, with a return on average assets (ROA) of 1% for Q1 2025 [12] - Excluding the OREO write down, EPS would have been $0.40 per share or an ROA of 1.07% [12] - Net interest margin increased to 3.65% from 3.54% in the previous quarter, supported by a decline in interest-bearing deposit costs [14] - Nonperforming assets to total assets declined to 0.42% from 0.46% at the end of Q4 2024 [15] Business Line Data and Key Metrics Changes - Loan growth was strong at $92 million, representing a 12% annualized growth rate, with significant contributions from asset-based lending, private equity, and small business lending [8][25] - The asset-based lending portfolio increased to just over $90 million, while the private equity fund banking portfolio grew to $128 million [10] - Small business lending, including Business Express and SBA loans, reached $91 million [10] Market Data and Key Metrics Changes - Total deposits increased by $64 million or 8% from the previous quarter, with noninterest-bearing deposits growing significantly [21] - The noninterest-bearing demand deposits ratio rose to 17.2%, up from 15.8% a year ago [21] - Time deposits increased by $47 million, supported by brokered funding [22] Company Strategy and Development Direction - The company aims to focus on deposit generation and maintaining profitable relationships in a competitive environment [20] - Plans for branch expansion include opening new branches in New Jersey and relocating a Florida branch [22] - The company is investing in technology, including the rollout of a Salesforce CRM tool to enhance customer relationship management [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan demand, anticipating continued activity in construction and refinancing despite potential economic slowdowns [41][42] - The company is focused on maintaining a strong credit profile and managing risks associated with new lending units [88] - Management believes the current allowance for credit losses is adequate, with a strong coverage ratio relative to peers [51] Other Important Information - The efficiency ratio remained strong at 57.65%, below 60% for 23 consecutive quarters [18] - The company continued its buyback program and maintained a stable cash dividend [19] Q&A Session Summary Question: Loan growth in the quarter and future lending environment - Management noted that much of the loan activity is tied to ongoing projects, with expectations for continued demand in the near term [41][42] Question: Buyback activity and future plans - Management indicated that buyback activity is on the radar, especially while the stock trades at lower levels [47][48] Question: Credit reserves and economic outlook - Management feels comfortable with the current allowance for credit losses, indicating a strong coverage ratio [50][51] Question: OREO write down details - The write down was related to an acquired loan in New York City, with management taking a conservative approach to ensure full coverage [56][57] Question: NIM and funding costs - Management discussed expectations for stable net interest margin, with some headwinds and tailwinds offsetting each other [66] Question: Growth targets for C&I lending - Management provided growth targets for asset-based lending and private equity, indicating potential for significant increases in the coming years [74][75]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [6][36] - Loans grew by over $650 million and deposits increased by over $1.1 billion, with a net interest margin of 3.56%, which is five basis points higher than the previous quarter [7][11] - Charge-offs for the quarter decreased to 11 basis points, and the provision for credit losses was $24 million, consistent with prior quarters [8][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, while deposit growth was approximately 8% on an annualized basis [11] - Non-interest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [17] - Non-interest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [18][19] Market Data and Key Metrics Changes - Non-interest bearing deposits represented 21% of total deposits at the end of the quarter, remaining stable over the last five quarters [12] - The company anticipates strong loan growth in the second quarter, particularly in the premium finance segment, which is expected to grow close to $1 billion [26] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio, with a CET1 ratio of slightly over 10% [36] - The management emphasized the importance of differentiated client service and maintaining a strong local presence to navigate economic uncertainties [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, clients remain generally encouraged about the local economy and their ability to perform normally [45] - The company is focused on proactive communication with clients to address concerns related to economic conditions, tariffs, and funding cuts [34][46] Other Important Information - The company received 14 Coalition Greenwich Awards and was recognized for best customer service in Illinois for the fourth consecutive year [36] - The tangible book value per common share increased to $78.83 compared to $75.39 in the prior quarter [23] Q&A Session Summary Question: How prevalent is uncertainty from borrowers and its impact on growth outlook? - Management acknowledged that borrowers are cautious but remain generally encouraged about the local economy, maintaining their loan growth expectations [45][46] Question: Can you walk us through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented a qualitative overlay due to spikes in credit spreads and equity market factors at the end of the quarter [52][69] Question: Any changes in competitive pricing on new home production? - Management noted that competition remains rational, with slight declines in rates from competitors, but they expect to balance this with strong loan growth [58][60] Question: How is new client acquisition in wealth management going? - The company is transitioning to a new platform that is expected to improve capabilities for financial advisors, which should enhance growth in the wealth management business [72][73] Question: Thoughts on M&A and growth through acquisition? - Management indicated ongoing M&A conversations and expressed confidence in their ability to pursue attractive acquisition opportunities [76] Question: How should we think about the source of deposit growth going forward? - Management expects to continue growing deposits to match loan growth, with a stable mix of commercial and consumer relationships [82][84]