Financial Performance - Reported PPNR was $370.1 million[4] - Net income applicable to common shareholders was $251.7 million[4] - Diluted EPS reached $1.52[4] - ROAA stood at 1.29%[4, 5] - ROATCE was 17.96%[4, 5] Balance Sheet Highlights - Loans increased by $0.6 billion, a 1.2% LQ increase[5] - Excluding loans moved to held for sale, loan growth would have been $0.9 billion, or 1.6%[5, 14] - Total deposits grew by $0.7 billion, representing a 1.1% LQ increase[5] - TBVPS grew 3.4% to $35.13 LQ[5] - Total loans as a % of earning assets is 73%[83] Key Ratios - The loan-to-deposit ratio was 80.9%[5, 7] - The efficiency ratio improved to 45.4%, down 0.4% LQ[5] - CET1 was 11.33%[5, 7] - TCE was 7.46%[5, 7] Loan Portfolio - Total loans reached $53.672 billion[7] - Commercial loans totaled $42.652 billion[7] - Consumer loans amounted to $11.020 billion[7] - C&I loans increased by $420 million LQ, or 3.0%, reaching $14.232 billion[11] - CRE decreased by $44 million LQ, or -0.2%, reaching $21.111 billion[11] Deposit Portfolio - Total deposits reached $66.314 billion[7] - Transactional deposits totaled $19.164 billion[7] - Healthcare Financial Services deposits were $10.180 billion[7] - interSYNC deposits were $8.719 billion[16] - Ametros accounts were $1.115 billion[16] Net Interest Income and Margin - Net interest income totaled $621.2 million, up $9.0 million or 1.5% LQ[21, 26] - Net interest margin was 3.44%, down 4 bps LQ[5, 21] Commercial Real Estate Portfolio - The commercial real estate portfolio totaled $18.8 billion[57, 61] - Classified loans were 3.9%[57]

Financial Data and Key Metrics Changes - For the second quarter, diluted earnings per share increased to $0.86 from $0.72 in the linked quarter [20] - Net interest income rose to $42.5 million compared to $38.5 million in the linked quarter [20] - The net interest margin (NIM) improved to 4.07% from 3.81% in the linked quarter, positively impacted by a one-time interest recovery [21] Business Line Data and Key Metrics Changes - Loans held for investment increased by $23.1 million, or 3% annualized, to $3.1 billion in the second quarter [12] - The yield on loans increased to 6.99% from 6.67% in the linked quarter, boosted by a one-time interest recovery [12] - Non-interest income grew to $12.2 million from $10.6 million in the linked quarter, primarily due to increased mortgage banking revenues [18] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $26 million to $1.01 billion, with heightened loan payoffs exceeding new loan production [16] - The indirect auto loan portfolio modestly decreased to $241 million from $243 million in the linked quarter, reflecting changes in consumer spending behavior [17] Company Strategy and Development Direction - The company is pursuing a strategy focused on both organic growth and mergers and acquisitions (M&A) to increase bank assets [7][9] - The organic growth strategy emphasizes expanding lending capabilities and enhancing core deposit growth [8] - The company remains interested in accretive acquisitions but has not yet found suitable opportunities that meet its criteria [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic growth in Texas and the potential for loan growth to reaccelerate [16] - The company is cautiously optimistic about maintaining resilient economic growth across Texas markets in the second half of 2025 [18] - Management highlighted the importance of proactive management of the loan portfolio to address challenges and maintain credit quality [5] Other Important Information - The consolidated common equity Tier one risk-based capital ratio was 13.86% as of June 30, 2025, indicating a strong capital position [10] - The company recorded a provision for credit losses of $2.5 million in the second quarter, largely due to increased specific reserves and net charge-off activity [23] Q&A Session Summary Question: Loan pipeline and growth outlook - Management indicated that loan growth is expected to be flat to low single digits for the third quarter due to higher loan payoffs, but they feel good about the pipeline and originations [27][28] Question: Balance between hiring and M&A - Management confirmed that they intend to continue hiring new lenders even if they find suitable M&A opportunities, emphasizing the importance of relationship banking [30][31] Question: Increase in specific reserves - The increase in specific reserves was attributed to several loans entering non-accrual status and a conservative approach to credit quality management [32][33] Question: Margin outlook and deposit costs - Management discussed the potential for NIM expansion and the impact of deposit pricing on overall margins, indicating a focus on managing costs effectively [38][39] Question: M&A environment and valuation expectations - Management noted that buyer expectations are a significant impediment to M&A activity, but they are actively looking for opportunities that align with their culture and financial criteria [44][45] Question: Mortgage banking performance - Management indicated that mortgage banking performance has been flat but remains profitable, with a focus on maintaining relationships during challenging times [50][51] Question: Non-interest bearing deposits growth - The growth in non-interest bearing deposits was attributed to improved treasury management solutions and a focus on relationship building with existing customers [63][64]

Financial Data and Key Metrics Changes - For the second quarter, diluted earnings per share increased to $0.86 from $0.72 in the linked quarter [21] - Net interest income rose to $42.5 million compared to $38.5 million in the linked quarter [21] - The net interest margin (NIM) improved to 4.07% from 3.81% in the linked quarter, positively impacted by a one-time interest recovery [22][24] Business Line Data and Key Metrics Changes - Loans held for investment increased by $23.1 million, or 3% annualized, to $3.1 billion in the second quarter [14] - The yield on loans rose to 6.99% from 6.67% in the linked quarter, boosted by a one-time interest recovery [14] - Non-interest income increased to $12.2 million from $10.6 million in the linked quarter, primarily due to higher mortgage banking revenues [19] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $26 million to $1.01 billion, driven by higher loan payoffs exceeding new loan production [17] - The indirect auto loan portfolio modestly decreased to $241 million from $243 million in the linked quarter, reflecting changes in consumer spending behavior [18] Company Strategy and Development Direction - The company is pursuing a strategy focused on both organic growth and mergers and acquisitions (M&A) to increase bank assets [8][10] - The organic growth strategy emphasizes expanding lending capabilities and enhancing deposit growth [9] - The company remains interested in accretive acquisitions but is cautious and selective, ensuring any deal aligns with its culture and financial goals [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic growth in Texas and the potential for loan growth to reaccelerate [17] - The company is closely monitoring the impact of expected tariffs on the local economy and consumer behavior [19] - Management believes the bank is well-capitalized and positioned to weather potential economic headwinds [12][13] Other Important Information - The allowance for credit losses to total loans held for investment ratio was 1.45%, reflecting a slight increase from the prior quarter [24] - The tangible common equity to tangible assets ratio was 9.98%, indicating a strong capital position [20] Q&A Session Summary Question: Loan pipeline and growth expectations - Management indicated that loan growth is expected to be flat to low single digits in the third quarter due to higher loan payoffs [28][29] Question: Balance between hiring and M&A - Management confirmed that hiring efforts will continue regardless of M&A opportunities, emphasizing the importance of building relationships [31] Question: Increase in specific reserves - The increase in specific reserves was attributed to several loans entering non-accrual status, not just one large credit [33][34] Question: Margin outlook and deposit costs - Management noted that while deposit costs are declining, the outlook for net interest margin remains stable [40][41] Question: M&A environment and valuation expectations - Management highlighted that buyer expectations are a significant impediment to M&A activity, but the regulatory environment has improved [46][47] Question: Mortgage banking performance - Management expects mortgage banking performance to remain flat but is confident in maintaining profitability [50] Question: Non-interest bearing deposits growth - The growth in non-interest bearing deposits was attributed to improved treasury management solutions and relationship management [65][66] Question: Hiring strategy and expense growth - Management acknowledged that hiring will impact expenses in the short term but views it as essential for long-term growth [68]

Financial Performance & Guidance - Bank of America maintained its net interest income (NII) guidance despite better-than-expected loan growth and fewer expected rate cuts [1] - Bank of America's net interest income (NII) reached $148 billion in the current quarter [3] - Bank of America projects net interest income (NII) to be between $155 billion and $157 billion by the fourth quarter [3] - Bank of America anticipates a 6-7% increase in net interest income (NII) this year compared to last year, with momentum carrying into 2026 [5] Growth Drivers - Bank of America experienced 7% loan growth and 4% deposit growth over the last 12 months [4] - Bank of America emphasizes disciplined deposit and loan pricing as contributing factors to net interest income (NII) growth [4] Macroeconomic Perspective - An independent Federal Reserve (Fed) is crucial for the stability of the global economy, particularly for a large economy like the United States with over $30 trillion in debt [8][9] - A stable central bank is very important because of the size of the US economy [8]

Financial Performance - Bank results were quite good, particularly regarding the resiliency of consumer credit quality [1] - Goldman Sachs' numbers were very strong, especially in equity trading and M&A activity [4] - Year-over-year loan growth has started to pick up for banks in the second quarter [6] Market Trends & Activities - M&A and ECM activity picked up, particularly at the end of the second quarter [2][3] - Loan growth is starting to pick up, evidenced by weekly H8 data from the Fed [6] - There's a broadening of the possibility when it comes to acquisitions, though with a high bar [12][13] Regulatory Environment - The regulatory approach is becoming less onerous, evidenced by changes to the supplementary leverage ratio and positive stress test results [8][9] - Basel 3 endgame final capital rules are expected to be less onerous than the original proposal [9] - The ability for banks to give back more excess capital is increasing [10] Investment Outlook - Some deregulation benefits are factored into stock valuations, but not entirely due to uncertainty about the Basel 3 endgame [11] - High valuations and excess capital levels could lead to more acquisitions by large investment banks or regional banks [13]

Financial Data and Key Metrics Changes - The company reported an adjusted net income of $118 million or $1.37 per share for the second quarter, compared to $120 million or $1.38 per share in the first quarter [12] - The net interest margin (NIM) expanded by six basis points, reaching 1.37% after adjusting for transaction-related expenses [5][12] - Total loans increased by $364 million or 6% annualized, driven by stronger demand and increased line utilization [5][12] - Total deposits decreased by $148 million, primarily due to a reduction in certificates of deposit (CDs) [6][12] Business Line Data and Key Metrics Changes - Fee income grew by $4 million or 4%, with trust fees being the primary driver of this growth [12][13] - The efficiency ratio improved to 54.91% from 55.22% in the previous quarter, indicating better cost management [13] - The company added 10 net new bankers during the quarter, contributing to its organic growth strategy [8] Market Data and Key Metrics Changes - The company reported a solid allowance for credit losses at 1.45%, indicating a strong position to navigate economic challenges [10] - Criticized commercial loans decreased by 4% to $594 million, while nonaccrual loans decreased by 9% to $95 million [18] Company Strategy and Development Direction - The company remains focused on organic growth, with a guidance of low single-digit loan growth for 2025, inferring mid single-digit growth for the second half of the year [6][12] - The company is optimistic about its growth prospects, particularly in the Dallas market, with plans to open five new financial centers [9] - The acquisition of Sable Trust Company is expected to enhance the company's capabilities and client base [7][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macroeconomic environment but expressed confidence in the company's ample liquidity and strong capital ratios [10] - The management noted that clients have become less sensitive to economic headlines and are returning to making business decisions based on facts [30] - The company expects modest NIM expansion and net interest income (NII) growth of 3-4% for the year [17] Other Important Information - The company repurchased 750,000 shares of common stock during the quarter, reflecting its commitment to returning capital to shareholders [7][19] - The company anticipates two rate cuts of 25 basis points in September and December, which may impact deposit costs and NIM [17][44] Q&A Session Summary Question: What is the target CET1 ratio for buybacks? - Management indicated a comfortable operating range for Tier 1 common capital between 11% and 11.5% and around 8% for TCE [23][24] Question: What is the outlook for loan growth and borrower health? - Management noted that net new loans to new clients are the primary driver for growth, with a positive outlook barring macroeconomic changes [29][30] Question: Can you provide more insight into NIM outlook? - Management expects NIM to continue expanding in the second half of the year, driven by loan growth and reduced deposit costs [41][44] Question: How much of the expense base came from the Sable acquisition? - The increase in expenses related to Sable was approximately $2.5 million for the quarter [50] Question: What is the outlook for criticized loans? - Management reported a decrease in criticized loans and expressed confidence in the portfolio's health moving forward [105][106] Question: What is the company's stance on M&A? - Management reiterated that M&A is not a current focus but remains opportunistic for the future [58][112]

Bank Earnings & Performance - Wells Fargo's overall report was not bad, despite mortgage pressure and regulatory constraints [1] - JP Morgan's investment banking gained 7%, exceeding expectations of a 14% loss [1] - Goldman Sachs is up 60% from its low [1] - JP Morgan announced a buyback and a dividend increase [1] Market & Economic Signals - The market is doing fine, with financials leading, and technology, especially semis, performing strongly [1] - Banks passed the stress test, indicating financial stability [1] - Net interest income saw a slight squeeze, suggesting competitive measures and banks actively seeking growth [1] - IPOs are scheduled even for August, typically a slow month [1] Future Outlook & Concerns - Expectation for net interest income to stabilize due to stabilizing rates [1] - Focus on loan and deposit growth as key indicators [1] - Jamie Dimon's call was not overly pessimistic, with concerns limited to tariff uncertainty and geopolitical issues [1]

Summary of the Conference Call Company and Industry Overview - The conference call involved Zion, a bank focused on serving small and medium-sized businesses across various states in the U.S. [4][10] - The discussion highlighted the impact of tariffs and economic uncertainty on customer sentiment, particularly among small and medium-sized enterprises (SMEs) [4][5]. Key Points and Arguments Customer Sentiment and Economic Environment - Customer sentiment remains uncertain due to ongoing tariff threats, affecting approximately 65% to 70% of Zion's revenue from SMEs [4][5]. - SMEs are likely to increase inventory and shift supply chains back to the U.S. as a precaution against tariffs, which could positively influence loan growth [6][8]. - Large companies are hesitant to commit to long-term capital investments due to economic volatility and uncertainty [7][8]. Loan Growth and Business Strategy - Zion's loan growth is currently moderate, with a focus on commercial lending, which constitutes about 50% of the loan portfolio [16][17]. - The bank aims to increase its Small Business Administration (SBA) lending, targeting 1,500 loans this year, up from 700, with a goal of reaching 3,000 loans in the next 12 to 18 months [18][19][20]. - The bank's strategy includes deepening relationships with existing customers, as 70% of small businesses do not currently borrow from banks [23][25]. Competition and Market Position - Zion faces competition from both regional and large banks, as well as private credit providers. However, the bank is confident in its ability to compete based on strong customer relationships and service [33][36][40]. - The bank's competitive advantage lies in its relationship management, which is supported by high customer satisfaction scores from Greenwich Research [46][47]. Deposit and Interest Income Management - Zion has experienced five consecutive quarters of net interest margin (NIM) expansion, attributed to a strong deposit franchise and effective management of deposit costs [50][51]. - The bank's cost of deposits is among the lowest in the industry, with a significant portion being non-interest-bearing deposits [51][52]. - The bank anticipates further reductions in deposit costs as time deposits roll over and stabilize [55][56]. Fee Income and Growth Opportunities - Zion's fee income is diversified, with treasury management services contributing about 30% of total fees. The bank expects moderate growth in this area [61][62]. - The capital markets business has shown significant growth, with revenues increasing from $70 million to $107 million, indicating strong potential for future revenue generation [64][66]. Credit Quality and Risk Management - Zion has maintained a low net charge-off ratio of about 10 basis points, significantly better than many peers, due to strong underwriting practices [68][69]. - The bank's commercial real estate (CRE) portfolio has shown resilience, with negligible losses despite rising classified loans [71][73]. Capital Management - Zion is focused on maintaining a strong Common Equity Tier 1 (CET1) ratio, with transparency regarding the impact of accumulated other comprehensive income (AOCI) on capital [75][76]. - The bank is well-positioned to meet regulatory requirements and maintain capital buffers [77][79]. Additional Important Insights - The bank's modernization efforts, including a core transformation project, have allowed bankers to focus more on client relationships rather than internal systems [28][30]. - Zion's proactive marketing strategy aims to enhance its small business initiatives and overall fee income growth [32][66]. This summary encapsulates the key insights and strategic directions discussed during the conference call, providing a comprehensive overview of Zion's current position and future outlook in the banking industry.

Financial Data and Key Metrics Changes - In Q1 2025, Banco Macro's net income totaled ARS 45.7 billion, a decrease of 59% or ARS 65.3 billion compared to Q4 2024 [4] - The annualized return on average equity was 3.81% and the return on average assets was 1.2% [5] - Net operating income before general and administrative expenses was ARS 801 billion, down 9% or ARS 82.6 billion from Q4 2024 [5] - Provision for loan losses increased by 60% or ARS 25.3 billion compared to Q4 2024, totaling ARS 66 billion [6] - Net interest income was ARS 579.2 billion, ARS 1 billion higher than Q4 2024, and up 122% or ARS 318 billion year-on-year [6][10] Business Line Data and Key Metrics Changes - Interest income totaled ARS 866.7 billion, down 3% or ARS 22.6 billion from Q4 2024 [7] - Income from interest on loans increased by 9% or ARS 49.6 billion compared to the previous quarter, but decreased by 18% or ARS 132.2 billion year-on-year [7][8] - Fee income was ARS 169.8 billion, a decrease of 1% or ARS 943 million from Q4 2024, but increased by 29% year-on-year [11] - Net income from financial assets and liabilities at fair value through profit or loss was ARS 66.4 billion, down 55% from Q4 2024 [12] Market Data and Key Metrics Changes - Banco Macro's market share over private sector loans reached 9.5% as of March 2025 [16] - Total deposits increased by 5% or ARS 485.4 billion quarter-on-quarter, totaling ARS 9.6 trillion, and increased by 23% year-on-year [16] - Nonperforming loans ratio was 1.44%, with a coverage ratio of 163.34% [17] Company Strategy and Development Direction - The bank aims to utilize its excess capital of ARS 3.2 trillion, with a capital adequacy ratio of 34.3% and a Tier one ratio of 33.6% [18] - The focus is on organic growth, with potential for future M&A opportunities as the number of banks in Argentina may shrink [26][27] Management's Comments on Operating Environment and Future Outlook - Management expects real loan growth of 60% for 2025 and deposits to grow at 45% [24] - Inflation is forecasted at around 30% for 2025, with a declining trend in domestic interest rates anticipated [35] - Operating expenses are expected to grow close to inflation, around 30% [36] Other Important Information - The effective income tax rate was 43% higher than in Q4 2024 [14] - The bank's liquidity remains strong, with a liquid assets to deposits ratio of 68% [18] Q&A Session Summary Question: Update on guidance for loan growth, deposits, and ROE - Management maintains a 60% loan growth forecast for 2025, with deposits expected to grow at 45% and ROE revised to 8% to 10% [24][25] Question: Expectations on macroeconomic factors - GDP growth is forecasted at 5% for 2025, with inflation at 30% and a declining trend in interest rates [35] Question: Loan to deposit ratio and capital ratio - The loan to deposit ratio is expected to increase, with loans representing 48% of total assets in Q1 2025 [37] Question: Bond portfolio positioning - The bank prefers high exposure to inflation-linked securities to hedge equity, aiming to maintain a stable level of available-for-sale bonds [46][48]

Group 1 - The loan growth of Popular, Inc. (BPOP) is expected to slow down this year but will remain positive, supporting the bottom line [1] - The average net interest margin for Popular, Inc. is anticipated to be higher this year compared to the previous year [1]