Financial Performance - Non-GAAP operating earnings per share were $1.30, or $1.35 after adjusting for notable items[8] - Non-GAAP operating earnings were $421 million, or $434 million adjusted for notable items, a decrease of 3% year-over-year on a per share basis[16] - The company returned $335 million to shareholders, representing an 80% payout ratio[8] Business Segment Highlights - Asset Management operating earnings increased by 19% year-over-year[8] - Retirement saw net inflows of $1.6 billion, driven by strong RILA and Institutional sales[8] - Wealth Management advisory net inflows reached $2.0 billion, supported by 8% year-over-year growth in advisor productivity[8] - AB active net inflows were $2.7 billion, with Private Markets AUM up 20% year-over-year to $75 billion[8] - Protection Solutions experienced an operating loss of $17 million due to excess Individual Life mortality[8] Capital Management and Transactions - The company purchased approximately $760 million of AB Holding units through a tender offer, increasing ownership to approximately 69% effective April 1[8] - The Individual Life transaction with RGA is on track to close mid-2025, freeing over $2 billion of capital[8] - Post-close of the Individual Life transaction, the company plans to execute $500 million of additional share repurchases, above the 60-70% payout ratio target[14] Balance Sheet and Liquidity - The company had $1.1 billion in cash at Holdings after AB and Series B preferred equity tender offers, with a combined NAIC RBC ratio of approximately 425% as of year-end 2024[8]

Financial Data and Key Metrics Changes - The company reported record first quarter net revenue of $643 million and adjusted EBITDA of $245 million, reflecting strong performance despite various challenges [11][12] - The live and historical racing segment increased revenue by nearly $28 million or 11% compared to the prior year quarter [40] - The company generated $234 million or $3.15 per share of free cash flow in the first quarter [47] Business Line Data and Key Metrics Changes - The live and historical racing segment delivered record first quarter revenue and adjusted EBITDA, primarily due to the opening of new venues [39][40] - The Kentucky HRM properties increased adjusted EBITDA by $3.1 million or 6% compared to the prior year quarter [41] - The Virginia HRM properties saw a decrease in adjusted EBITDA by $2.2 million or 3% compared to the prior year quarter, impacted by weather and competition [41][43] Market Data and Key Metrics Changes - The Northern Virginia HRM venues collectively contributed nearly $10 million of adjusted EBITDA during the first quarter, up nearly $4 million from the prior year quarter [41] - The company experienced meaningful sequential growth in gross gaming revenues each month of the first quarter [26] - The Terre Haute Casino Resort in Indiana delivered nearly $12 million of adjusted EBITDA in the first quarter, performing well compared to regional gaming properties [46] Company Strategy and Development Direction - The company is committed to growing the Kentucky Derby through prudent timing of capital investments, pausing a $900 million multiyear project to reassess economic conditions [16][17] - Smaller projects at Churchill Downs Racetrack, costing approximately $25 to $30 million, are expected to deliver strong shareholder returns [19][20] - The company plans to implement electronic table games in existing HRM locations by the end of 2025, focusing on regulatory and taxation challenges [34][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased economic uncertainty and inflation risks due to tariffs, impacting cost assessments for projects [16][17] - The leadership team expressed confidence in navigating economic cycles and maintaining growth through strategic investments [37][51] - Management remains optimistic about the upcoming Kentucky Derby, expecting results comparable to last year's record performance [35][131] Other Important Information - The company has reduced its 2025 maintenance capital projection by $10 million to $90 to $100 million [48] - A new common stock repurchase program of up to $500 million was approved, with nearly 800,000 shares repurchased in the first quarter [49][50] - The bank covenant net leverage was 4.0 times at the end of the first quarter, expected to remain stable throughout the year [50] Q&A Session Summary Question: About softness in the quarter and its acceleration - Management noted hesitancy in the lower-tiered play due to macroeconomic volatility, but consistent performance in higher-tiered segments [56][58] Question: Impact on international visitation for Derby 151 - No material change in international visitation was observed, with expectations for strong attendance [62][64] Question: Long-term growth for the Derby and capital plans - Management indicated that the NBC contract will enhance growth, with expectations for pricing power in new areas introduced [70][72] Question: Implementation of electronic table games and tax rates - The rollout will be cautious due to regulatory and taxation challenges, with a focus on gradual acceptance [78] Question: Growth opportunities at existing properties amid macro uncertainty - Management emphasized organic growth in Kentucky properties and ongoing projects in Virginia, with a focus on managing costs [91][92] Question: Trends in Virginia for existing assets - Management expressed optimism about Virginia's market potential, despite recent challenges [100][101] Question: Consumer segment trends and performance - Management highlighted the importance of customer data for managing performance, particularly in less mature properties [106][108] Question: Capital allocation and buybacks - Management indicated that capital allocation decisions will be based on where the best returns can be achieved, including potential buybacks [112][114] Question: Changes for the Derby next year - Management plans to evaluate customer feedback and adjust offerings based on data collected post-Derby [120][122] Question: Comparability of Derby performance this year versus last year - Management acknowledged macroeconomic uncertainties but remains confident in strong demand for the event [130][131]

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 two basis points from the previous quarter [4][5] - Total deposits increased by $160.7 million, with 95% of this growth in non-maturity deposits, primarily 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][10] - Noninterest expense increased by $1.8 million, primarily due to higher benefit costs and payroll taxes, with guidance for quarterly noninterest expenses in the range of $41 million to $42 million [9][10] - The tangible common equity (TCE) ratio improved to 9.3%, up from 9% in the prior quarter, indicating strong capital ratios [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 [18][19] - The average interest rate for new commercial loans was 6.83%, up 20 basis points from the previous quarter [19][20] - The bank experienced total charge-offs of $376,000, with net charge-offs of $299,000, representing 0.03% of total loans on an annualized basis [15] Market Data and Key Metrics Changes - The bank's credit quality remained strong, with non-accrual loans totaling just over $4.4 million, representing 0.09% of total loans [12][13] - Criticized loans declined by $1 million during the quarter, with substandard loans consistent with prior year-end levels [13][14] Company Strategy and Development Direction - The company is focused on maintaining a solid balance sheet and is open to potential mergers and acquisitions, particularly with attractive banks in their footprint [25][27] - The bank aims for annualized loan growth of 5% to 8% in the second quarter, with a strong pipeline and ongoing monitoring of economic uncertainties [57][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core profitability due to strong deposit growth and prudent risk management, despite emerging economic risks [3][20] - The company is closely monitoring developments around tariffs and federal funding, which could impact credit quality [15][53] Other Important Information - The bank did not repurchase any shares in Q1 but may consider it in the future depending on market conditions [10][32] - The Spokane team was acquired from a larger regional bank, reflecting the bank's strategy to expand its talent pool while managing expenses [28][30] Q&A Session Summary Question: Perspective on Heritage's position among independent banks - Management believes the bank is well-positioned with specific goals for 2025 and is ready for potential M&A opportunities [25][27] Question: Details on the Spokane team acquisition - The team was sought out due to a good fit with Heritage's customer base and market presence [28][30] Question: Comments on stock buyback activity - The decision on stock buybacks is made quarterly, with no repurchases in Q1 due to stock price increases [32] 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][38] Question: Loan growth opportunities - Management sees balanced growth opportunities in commercial real estate and C&I, with a focus on deposit-rich clients [48][49] Question: Anticipated loan growth and economic uncertainty - The bank expects annualized loan growth of 5% to 8% in Q2, with ongoing monitoring of the economic environment [57][61]

Financial Data and Key Metrics Changes - The company reported first quarter net income of $12.4 million, essentially flat compared to the fourth quarter of 2024, resulting in a return on assets (ROA) of 1.17% and a return on equity (ROE) of 12.4% [11] - Net interest income grew by 12.4% year-over-year but declined slightly from the fourth quarter due to a decrease in Fed funds sold and other interest-earning assets [12] - Non-interest expenses increased by 3.2% or $878,000 in the first quarter, and were up 8.5% or $2.2 million from the same quarter last year [12] - The net interest margin improved by nine basis points to 3.8% [9][12] Business Line Data and Key Metrics Changes - The company successfully executed a significant commercial real estate loan securitization, enhancing balance sheet management and generating fee income that will positively impact the net interest margin in the second quarter [6][7] - Loan growth in April was reported at over $50 million, indicating a positive trend following a modest growth in the first quarter [13][20] Market Data and Key Metrics Changes - Deposits declined by $62 million for the quarter, resulting in a loan-to-deposit ratio of 93.9% [12] - The company anticipates some seasonal roll-off in deposits, which typically occurs in the first quarter [20] Company Strategy and Development Direction - The company is focused on disciplined loan growth, robust credit management practices, and improving operational efficiencies to enhance shareholder value [5][6] - The management is evaluating additional securitizations as a tool to manage concentrations and support sustainable profitable growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's credit risk strategies and the overall economic outlook, noting that borrowers remain cautious but optimistic [28][29] - The company aims for $325 million in loan growth for the year, translating to an 8% annual run rate compared to the prior year [20] Other Important Information - The company achieved growth in book value and tangible book value of 4.4% and 4.7% respectively over the prior quarter, and 14.3% and 15.2% compared to the same period last year [9] - The management is considering a share buyback program due to capital accretion and the current stock price being attractive [13][55] Q&A Session Summary Question: Impact of securitization on net interest margin - Management confirmed that the securitization will primarily flow through the margin, providing a five basis point benefit for the next quarter [24] Question: Loan growth confidence amid macro uncertainty - Management indicated that the loan growth in April was primarily due to fundings on revolving lines rather than new deals, and expressed optimism about the pipeline [26][28] Question: Fee income increase drivers - The increase in fee income was attributed to the treasury management division, which has seen significant growth in recent years [34] Question: Expectations for non-interest expenses - Management expects non-interest expenses to remain flat in the second quarter, around $28 million [37] Question: Future loan growth expectations - Management remains confident in achieving the loan growth target of $325 million, despite potential fluctuations due to economic conditions [51]

CVB Financial (CVBF) Q1 2025 Earnings Call April 24, 2025 10:30 AM ET Company Participants Allen Nicholson - EVP & CFODavid Brager - President & CEOAndrew Terrell - Managing DirectorDavid Feaster - DirectorTimothy Coffey - MD & Associate Director of Depository ResearchKelly Motta - MD - Equity Research Conference Call Participants Gary Tenner - MD & Senior Research AnalystAdam Butler - Equity Research Analyst Operator Good day, and welcome to the CVB Financial First Quarter twenty twenty five Earnings Confe ...

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 ...

Financial Performance - Net income available to common shareholders was $465 million, or $0.51 per diluted share[4] - Adjusted net income available to common shareholders was $487 million, or $0.54 per diluted share[4] - Total revenue was $1.784 billion, and adjusted total revenue was $1.809 billion[4] - Pre-tax pre-provision income was $745 million, and adjusted pre-tax pre-provision income was $774 million[4] - The efficiency ratio was 57.9%, and the adjusted efficiency ratio was 56.8%[4] - Return on average tangible common equity was 17.72%, and the adjusted return was 18.58%[4] Balance Sheet and Lending - Average loans and leases were approximately $96.1 billion in 1Q25[23] - Ending loans and leases decreased by 1% QoQ[26] - Average deposits increased by 1% QoQ to $131 billion, and ending deposits increased by 3%[28, 30] Net Interest Income and Margin - Net interest income (NII) was $1.194 billion, or $1.206 billion on a taxable-equivalent basis[32] - Net interest margin (NIM) was 3.52%[32] - The company expects NII to grow between 1% and 4% in 2025, with NIM increasing to 3.60% by 4Q25[40] Non-Interest Income and Expense - Non-interest income was $590 million, and adjusted non-interest income was $615 million[42] - Adjusted non-interest expense was $1.035 billion[47] - The company expects adjusted non-interest income to grow between 1% and 3% in FY25, and adjusted non-interest expense to be flat to up approximately 2%[45, 49] Asset Quality - Net charge-offs (NCOs) were $123 million, representing 0.52% of average loans[51] - Non-performing loans (NPLs) were $843 million, or 0.88% of total loans[56] - The allowance for credit losses (ACL) was $1.730 billion, representing 1.81% of total loans[54]

Industry Overview - The energy sector is crucial for the economy, but energy stocks have experienced volatility and underperformance compared to the broader market due to factors like slower growth in China and stabilized energy prices [1] - Many energy companies are adopting a disciplined capital management approach, strategically deploying capital while rewarding shareholders through dividends and share repurchase programs [2] Company Analysis: ExxonMobil and Chevron - ExxonMobil and Chevron are two of the largest integrated oil and gas companies in the U.S., operating across the entire oil and gas supply chain, which includes exploration, production, transportation, and refining [3] - Their diversified business model helps stabilize performance in the volatile energy sector, with exploration and production thriving during high oil prices, while transportation and refining mitigate volatility during price declines [4] - Both companies have a strong history of dividend growth, with ExxonMobil increasing dividends for 42 years and Chevron for 38 years [4] - ExxonMobil and Chevron have improved their financial positions by using past windfall profits to pay down debt, with long-term debts peaking at $66 billion and $44 billion, respectively, and they have since paid down 43% and 45% of these debts [6] - The dividend yields for ExxonMobil and Chevron are attractive at 3.5% and 4.1%, respectively, and both stocks are trading around 12 times forward earnings, indicating reasonable pricing and strong potential for shareholder rewards [7] Company Analysis: Enterprise Products Partners - Enterprise Products Partners is a leading provider of midstream services in the U.S., with a vast network of over 50,000 miles of pipelines and significant storage capacity for crude oil, natural gas, and refined products [8] - The company offers a high dividend yield of 6.25%, supported by stable cash flows from long-term contracts, and has recently achieved record volumes across its systems [9] - The current political environment, particularly the Trump administration's focus on deregulation, could benefit pipeline operators like Enterprise Products, potentially expediting project approvals [9][10] - Enterprise Products has approximately $7.6 billion in projects under construction, with $6 billion expected to come online in 2025, positioning the company well for future growth [10] - The stable dividend payout and the increasing demand for energy, particularly for powering data centers, make Enterprise Products a solid investment opportunity [11]