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 ...

Financial Data and Key Metrics Changes - The company reported net income of $1,700,000 for the quarter, reflecting continued earnings pressure compared to $15,300,000 in the prior quarter [6][21] - The provision for credit losses increased to $26,300,000, with $13,900,000 related to the increase in the office overlay [15][21] - The allowance for credit losses rose to $129,500,000, representing coverage of total loans at 1.63%, an increase of 19 basis points from the prior quarter [15][22] - Net interest income before provision totaled $65,600,000, decreasing from $70,800,000 in the prior quarter [24] - The tangible common equity ratio decreased two basis points to 11% at quarter end, while book value per share increased by $0.39 to $40.99 [22][23] Business Line Data and Key Metrics Changes - Commercial lending grew by $109,100,000 or 4.3% over the previous quarter, indicating positive momentum in this segment [9] - Deposits increased by $146,200,000, largely through time deposits in digital and branch channels [10] - Non-interest income rose to $8,200,000 for the first quarter, compared to $4,100,000 in the prior quarter, driven by a separate account BOLI transaction [27][28] Market Data and Key Metrics Changes - The company noted modest exposure to government contracting and GSA-linked assets, which reduces sensitivity to changes in federal budget spending [10] - The DC economy is diversified, including educational institutions, a growing technology sector, and tourism, supporting long-term stability [11] Company Strategy and Development Direction - The company is focused on preserving capital flexibility, improving portfolio quality, and managing through volatility while maintaining long-term franchise value [13][30] - There is an emphasis on executing a disciplined strategy to enhance franchise value and position the company as a leading community bank in the Greater Washington DC Metro Area [9][11] - The company plans to explore asset disposition strategies for office loans to address evolving valuation risks [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged sustained pressure on office property valuations and the need for adequate reserves [12] - The company remains optimistic about the long-term strength of the Washington DC region despite current uncertainties [11][30] - Management is actively reassessing capital allocation priorities, including shareholder return strategies, in light of credit conditions [13] Other Important Information - The company has a strong liquidity position with available liquidity totaling $4,800,000,000 [24] - The average deposits have grown by $381,600,000 from a year ago, reflecting a stable funding base [23] Q&A Session Summary Question: Can you provide more details on the reserve build related to the office portfolio? - The reserve increase was driven by actual appraisal experiences and updated assumptions regarding probability of default and loss given default [36][37] Question: What is the outlook for the C and I portfolio growth? - All indications point to an increase in the C and I portfolio growth due to new team members and a robust pipeline [79][80] Question: How sensitive is the margin outlook to potential Fed rate cuts? - The forecast does not include changes to Fed rate cuts, and the company is relatively neutral to interest rate movements in the short term [43][46] Question: What is the company's strategy regarding loan sales and resolutions? - The company is considering various strategies, including loan sales and aggressive resolutions, based on a cost-benefit analysis [72][73]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $17.8 million, or $0.65 per diluted share, with a return on average assets of 0.96% and return on average equity of 13.04% [15][16] - Net interest income increased by $1.9 million, or 3.5%, from the prior quarter to $57.7 million, with a net interest margin of 3.31%, up 14 basis points sequentially [16][18] - The efficiency ratio improved to 61.2, the best since Q4 2022 [15] Business Line Data and Key Metrics Changes - The loan portfolio increased by $1.7 million sequentially, marking the first quarterly increase in two years, driven by commercial mortgage and construction lending [13] - Total deposits declined by $48 million from the prior quarter, but average balances increased by $14 million, with a notable rise in average non-time deposits [14] Market Data and Key Metrics Changes - The Hawaii construction industry saw a 20.3% increase in total construction value for the first ten months of 2024 compared to the same period in 2023, forecasted to exceed $14 billion [9] - The statewide unemployment rate in Hawaii remained low at 2.9%, outperforming the national rate of 4.2% [10] Company Strategy and Development Direction - The company aims to grow market share in Hawaii while targeting lending opportunities in Mainland markets, focusing on small businesses [12][13] - Management is optimistic about net loan growth continuing to pick up, particularly in commercial areas [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and maintaining strong results despite external factors [7][11] - The company is prepared to address potential impacts from current administration policies and market volatility [11] Other Important Information - The company plans to consolidate office space, expecting to recognize a one-time pretax write-off of $2 million to $2.5 million, with anticipated annual savings of approximately $1 million [18] - A quarterly cash dividend of $0.27 per share was declared, payable on June 16 [18] Q&A Session Summary Question: Loan growth outlook amidst market volatility - Management remains cautiously optimistic about loan growth, reiterating guidance for low to mid-single digit growth for the full year, primarily in commercial areas [28][30] Question: Impact of trade wars and tariffs on clients - Approximately 10% of the loan book may be impacted, particularly in accommodation, restaurant, and retail sectors, but management believes clients can handle short-term turbulence [32][34] Question: Deposit performance and competitive landscape - The company is pleased with deposit performance, with a favorable mix shift towards core deposits, and expects funding costs to trend down gradually [38][40] Question: Margin expectations for March - The margin for March was reported at 3.37%, with expectations for continued expansion driven by lower funding costs and favorable asset repricing [44][46] Question: Capital priorities and share repurchases - The company maintains a strong capital position, focusing on organic growth, share repurchases, and a quarterly cash dividend with a 40% payout ratio [53][54]

Financial Performance - Net income remained stable at $178 million in Q1 2025 compared to Q4 2024[4] - Net Interest Margin (NIM) increased by 5 bps to 3.40%[4] - Fully Taxable Equivalent (FTE) NIM expanded by 11 bps to 3.73%[4] - Earnings Per Share (EPS) increased to $2.56 from $2.51[4] Balance Sheet - Total deposits increased by $935 million, a 1.4% increase[6, 11] - Excluding P R public deposits, customer deposits increased by $776 million[11] - Loans held in portfolio increased by $146 million to $37,254 million[6] Credit Quality - Non-Performing Loans (NPLs) decreased by $37 million to $314 million[7, 11] - The NPL Ratio improved to 0.84% from 0.95% in Q4[7, 11] - Net Charge-Off (NCO) Ratio decreased to 0.53% from 0.74%[7, 11] Capital Actions - Repurchased $122 million of common stock at an average price of $96 24 per share[11] - Paid quarterly common stock dividend increased 13% to $0 70[11]

Financial Performance and Key Metrics - Trustmark reported net income of $53.6 million for the first quarter, translating to fully diluted EPS of $0.88 per share, with a return on average assets of 1.19% and a return on average tangible equity of 13.13% [10] - Loans held for investment increased by $151 million or 1.2% linked quarter, with growth seen in commercial real estate (CRE), other commercial loans, and one to four family mortgage loans [8][9] - The cost of total deposits decreased by 15 basis points to 1.83% during the quarter [9] - Non-interest income totaled approximately $43 million, up 4% linked quarter, driven by growth in mortgage banking and wealth management [11] - Non-interest expense declined by $419,000 linked quarter, continuing a trend of expense management [11] Business Line Performance - The growth in loans was diversified, with notable increases in CRE and other commercial loans [8] - Non-interest income growth was partially offset by seasonal declines in bank card and service charges on deposit accounts [11] - Credit quality remained stable, with net charge-offs totaling $1.4 million, representing 4 basis points of average loans [12] Market Data and Key Metrics - The capital management perspective showed an increase in all capital ratios, with the CET1 ratio expanding to 11.63% [13] - Tangible book value per share increased by 4.1% during the quarter and 26.1% year-over-year, reaching $27.78 [14] Company Strategy and Industry Competition - The company is affirming its full-year 2025 expectations, anticipating low single-digit increases in loans and deposits [15][16] - Trustmark plans to maintain a disciplined approach to capital deployment, focusing on organic loan growth and potential market expansion [17] - The company is monitoring the impact of tariffs and other administrative policies on its customer base, but has not yet seen immediate effects [15] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit quality and the potential for loan growth despite market uncertainties [15][30] - There is an expectation of continued solid pipelines across various business lines, although some clients may exhibit caution due to market volatility [30][31] - The company anticipates net interest margin to remain in the range of 3.75% to 3.85% for the full year [16][37] Other Important Information - The Board declared a quarterly cash dividend of $0.24 per share, payable on June 15 to shareholders of record on June 1 [14] - The company repurchased $15 million of common stock during the quarter, with a remaining repurchase authority of $85 million [13] Q&A Session Summary Question: Loan growth trends and client behavior regarding tariffs - Management noted that while there are expectations of meaningful maturing CRE loans, many clients are opting to extend their loans due to uncertainty in interest rates [22][24] - The company has seen solid pipelines and plans from clients, although some may pause due to market conditions [30][31] Question: Credit quality and reserve build - The increase in the allowance for credit losses was driven by loan growth and qualitative adjustments, with the provision aligning with expectations [44][45] Question: Expense management and future growth outlook - The decline in expenses was attributed to lower salaries and benefits, with a focus on controlling costs moving forward [48][50] - Management anticipates mid-single-digit growth in expenses for the year, with merit increases scheduled for the third quarter [51] Question: Share buybacks and capital deployment - The pace of share repurchases will be dictated by market conditions, with management expressing a desire to maintain a consistent buyback trend [54][58] - The company is focused on strategic growth initiatives in key markets to drive organic growth [55]

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 - 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]

LOUISVILLE, Ky., April 23, 2025 (GLOBE NEWSWIRE) -- Stock Yards Bancorp, Inc. (NASDAQ:SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported record earnings of $33.3 million, or $1.13 per diluted share, for the first quarter ended March 31, 2025. This compares to net income of $25.9 million, or $0.88 per diluted share, for the first quarter of ...

Core Viewpoint - Timberland Bancorp, Inc. reported a net income of $6.76 million for the quarter ended March 31, 2025, reflecting a slight decrease from the previous quarter but a significant increase compared to the same quarter last year, driven by improved net interest margins and a solid capital position [1][6][10]. Earnings Highlights - Net income for the first six months of fiscal 2025 increased 13% to $13.62 million, or $1.71 per diluted common share, compared to $12.00 million, or $1.47 per diluted common share for the same period in fiscal 2024 [2][6]. - Quarterly earnings per diluted common share (EPS) decreased 1% to $0.85 from $0.86 in the preceding quarter but increased 21% from $0.70 in the comparable quarter one year ago [5][6]. - The net interest margin (NIM) expanded to 3.79% for the current quarter, up from 3.64% in the previous quarter and 3.48% a year ago [5][10]. Balance Sheet Highlights - Total assets increased 1% to $1.93 billion at March 31, 2025, compared to $1.91 billion at December 31, 2024, and also increased 1% year-over-year [15][30]. - Total deposits rose by $20 million, or 1%, during the quarter to $1.65 billion, with increases in various account types including certificates of deposit and checking accounts [25][27]. - Total shareholders' equity increased 1% to $252.52 million, driven by net income and partially offset by dividends and stock repurchases [29][30]. Operating Results - Operating revenue for the current quarter increased 1% to $19.90 million from $19.67 million in the preceding quarter and increased 9% from $18.25 million a year ago [8]. - Net interest income rose by $243,000, or 1%, to $17.21 million for the current quarter, with a 10% increase year-over-year [9][10]. - Non-interest income decreased slightly by less than 1% to $2.69 million for the current quarter but increased 3% from the comparable quarter one year ago [12]. Loan Portfolio and Asset Quality - The loan portfolio grew by 1% from the prior quarter and 4% year-over-year, with net loans receivable at $1.42 billion [17][31]. - The non-performing assets to total assets ratio improved to 0.13% at March 31, 2025, down from 0.16% at December 31, 2024, and 0.19% a year ago [31][32]. - Provisions for credit losses on loans totaled $237,000 for the quarter, reflecting growth in the loan portfolio [10][31]. Dividend Announcement - The Board of Directors announced a 4% increase in the quarterly cash dividend to $0.26 per share, marking the 50th consecutive quarter of dividend payments [3][5].

Financial Performance - The company reported net income available to common shareholders of $130.9 million, or $0.70 per diluted common share[5] - Adjusted net income available to common shareholders was $131.4 million, or $0.71 per diluted common share[3, 5] - Quarterly adjusted pre-tax pre-provision net revenue (PPNR) reached $189.9 million, a $5.9 million increase from Q4 2024[5] - Net interest margin expanded by 8bps from the previous quarter to 3.46%[3, 5] - The adjusted efficiency ratio improved to 57.6%, a +151bps change compared to Q4 2024[3] Loan and Deposit Portfolio - Period end loans totaled $34.1 billion, reflecting a 3.7% annualized growth in Q1 2025[3] - Net organic loan growth was $309.9 million for 1Q25, or 3.7% on an annualized basis[5] - Total deposits were $40.3 billion as of March 31, 2025, a decline of $0.2 billion from $40.5 billion at the end of Q4 2024[6, 8] - Noninterest bearing deposits accounted for 21% of total deposits at the end of Q1 2025[6] Credit Quality - Net charge-offs for 1Q25 were $23.0 million, or 0.27% of average net loans and leases on an annualized basis[24, 27] - Total nonaccrual loans and leases improved to $236 million, or 0.69% of total loans[28, 29] - Allowance for credit losses was 1.34% of net loans and leases at March 31, 2025[27] Capital and Merger - Total shareholders' equity was $5.7 billion at March 31, 2025[51, 53] - Tangible book value per common share increased to $22.30 per share at March 31, 2025, up $2.82 per share, or 14.5%, compared to March 31, 2024[53] - The company received approvals to complete merger with FCB Financial Corp, expected to close May 1, 2025[5]