Financial Data and Key Metrics Changes - The company reported net interest income of $25.1 million, up 6.6% from the previous quarter, and $26.3 million on a fully taxable equivalent basis, reflecting a strong performance [27] - Total operating revenue grew over 2% quarter-over-quarter and more than 22% year-over-year, driven by a 7% increase in net interest income compared to the fourth quarter and 20% compared to the first quarter of 2024 [8][9] - Net income for the quarter was $900,000, with diluted earnings per share of $0.11, significantly impacted by elevated provisions for loan losses [13] Business Line Data and Key Metrics Changes - Small business lending origination yields remained strong, with a weighted average rate on funded originations at 7.78%, up 50 basis points from the prior quarter [11] - The construction and commercial real estate team originated almost $70 million in new commitments, contributing to an 8% annualized loan growth [18] - Noninterest income for the quarter was $10.4 million, down 35% from the fourth quarter, primarily due to lower net servicing revenue [29] Market Data and Key Metrics Changes - Total deposits increased by $111 million or over 2% during the first quarter, driven by growth in FinTech partnership deposits [22] - Non-maturity deposits rose almost $335 million or 15%, reflecting the increase in FinTech partnership deposits [22] - Total FinTech partnership revenue was over $1.1 million in the first quarter, up 30% from the fourth quarter [22] Company Strategy and Development Direction - The company aims to continue improving its loan mix and anticipates a reduction in deposit costs, positioning itself for stronger earnings in the coming quarters [102] - The focus remains on expanding existing FinTech partnerships and exploring new lending opportunities, with a cautious approach to the number of new programs [92] - The company is committed to maintaining a strong asset quality and managing credit risks effectively, particularly in the small business lending and franchise finance portfolios [17][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of net interest income and net interest margin throughout 2025, assuming no further rate actions from the Fed [10] - The company acknowledged economic uncertainties but noted a slowdown in new delinquencies, providing optimism for moderating provisions for credit losses in the second half of the year [38] - Management highlighted the importance of controlling expenses and maintaining strong operational performance despite challenges in the credit environment [9][17] Other Important Information - The allowance for credit losses as a percentage of total loans was 1.11% at the end of the first quarter, reflecting specific reserves taken on certain loan relationships [31] - The tangible common equity ratio was 6.55%, with a common equity Tier one capital ratio of 9.16%, indicating solid capital levels [34] Q&A Session Summary Question: Expected one-time impact on fees in Q2 - Management estimated a total noninterest income for Q2 to be around $5 million to $6 million, with expectations to return to previous levels in the latter half of the year [44] Question: Average loan size in SBA - The average loan size is just over $1 million, indicating that the reinstated fees for smaller loans do not significantly impact the company [47] Question: Impact of a 25 basis point rate cut on NII - A 25 basis point rate cut would result in an annualized impact of approximately $3.6 million on net interest income, with a gradual ramp-up over the year [49] Question: Updated thoughts on SBA loss assumptions - Management noted that while loss rates have been elevated, they expect a decline in charge-offs as economic conditions stabilize [56] Question: Share buybacks and balance sheet growth - The company is preparing to consider share buybacks if the stock price remains below 50% of book value, while also managing balance sheet growth effectively [63] Question: Update on fintech partnerships - The company is experiencing strong growth in existing fintech partnerships and is cautiously optimistic about expanding these relationships [92]

First Internet Bancorp (INBK) Q1 2025 Earnings Call April 24, 2025 02:00 PM ET Company Participants Ben Brodkowitz - SVP - Investor RelationsDavid Becker - Chairman & CEONicole Lorch - President & COOKenneth Lovik - Executive VP & CFOTim Switzer - Vice PresidentBrett Rabatin - Director of Research Conference Call Participants Nathan Race - Managing Director & Senior Research AnalystNone - Analyst Operator And please note that today's call is being recorded. I would now like to turn the conference over to Be ...

Marqeta, Inc. (NASDAQ:MQ) Q4 2024 Earnings Conference Call February 26, 2025 4:30 PM ET Company Participants Stacey Finerman - Vice President of Investor Relations Mike Milotich - Interim Chief Executive Officer & Chief Financial Officer Conference Call Participants Tien-Tsin Huang - JPMorgan Timothy Chiodo - UBS Darrin Peller - Wolfe Research Andrew Bauch - Wells Fargo Sanjay Sakhrani - KBW Chris Kennedy - William Blair Operator Ladies and gentlemen, welcome to Marqeta, Inc.’s Fourth Quarter 2024 Earnings ...

Financial Data and Key Metrics Changes - Total Process Volume (TPV) reached $80 billion in Q4, a 29% increase compared to the same quarter of 2023 [7][22] - Q4 net revenue was $136 million, growing 14% year over year [7][25] - Gross profit for Q4 was $98 million, an 18% increase year over year, resulting in a gross margin of 72% [8][27] - Adjusted EBITDA was $13 million in Q4, translating into a 9% margin, marking new all-time highs for the company [29][30] Business Line Data and Key Metrics Changes - Financial services, lending (including buy now pay later), and expense management all grew at roughly the same rate in Q4, slightly faster than the overall company [24] - Non-block neo banking customers' TPV grew approximately 100% year over year [25] - Growth in expense management accelerated due to strong end-user acquisition as AP automation and modern corporate card platforms gained share [25] Market Data and Key Metrics Changes - The European business saw TPV growth well over 100% in Q4 [12] - The company secured a deal to provide commercial card processing and program management to a fast-growing technology company in Europe [12] - The pipeline for embedded finance customers has increased significantly, with roughly two-thirds of the current pipeline being embedded finance customers [55] Company Strategy and Development Direction - The company aims to establish itself as a preferred partner for embedded finance and fintech innovations through three strategic pillars: deepening platform breadth, expanding solutions, and strengthening leadership in payments innovation [15][44] - The acquisition of TransactPay is expected to enhance program management offerings in Europe and streamline operations [18][36] - The company plans to leverage the American Express network for credit and debit card programs starting later in 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing compelling opportunities in the payment ecosystem while focusing on profitable growth and value creation [6][15] - The company anticipates net revenue growth of 16-18% for 2025, driven by TPV growth in the mid to high 20s [32] - Management highlighted the importance of maintaining a strong focus on compliance while driving profitable growth [21][43] Other Important Information - The company ended Q4 with $1.1 billion in cash and short-term investments [29] - A share buyback authorization of $300 million was approved, bringing the total authorization to $380 million [31] Q&A Session Summary Question: What exactly is being acquired with TransactPay? - TransactPay is a BIN sponsorship provider licensed with an eMoney institution, allowing the company to have more control over offerings in Europe [48][50] Question: How does the pipeline look now, especially after recent wins? - The pipeline is strong, with a significant increase in embedded finance customers, indicating growing momentum in the market [55][56] Question: Does Marketa have everything needed to win larger embedded finance deals? - Yes, the company has a full solution that includes money movement, issuer processing, and program management, which positions it well for larger deals [62][64] Question: Is the guidance for 2025 based on the acquisition of TransactPay? - Yes, the guidance assumes the acquisition will close around Q3 2025 [68] Question: What is the path to GAAP profitability by 2026? - The company expects to drive gross profit growth at a faster rate than expense growth, leading to GAAP profitability on a quarterly basis by 2026 [70][73]