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 [5] - The net interest margin increased to 3.56%, up five basis points from the previous quarter, reflecting disciplined loan and deposit pricing [6][11] - Loans grew by over $650 million and deposits increased by over $1.1 billion during the quarter [5][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, consistent with prior guidance, while deposit growth was approximately 8% on an annualized basis [9][10] - Noninterest 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 [13] - Noninterest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [14] Market Data and Key Metrics Changes - Nonperforming loans (NPLs) as a percentage of total loans decreased slightly from 36 basis points to 35 basis points, indicating stable credit quality [19] - Charge-offs for the quarter were $12.6 million or 11 basis points, down from $15.9 million or 13 basis points in the previous quarter [19] 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 the CET1 ratio ending the quarter at slightly over 10% [24] - The management emphasized a focus on differentiated client service and maintaining a strong competitive position in the market [26][27] Management's Comments on Operating Environment and Future Outlook - Management noted a fair amount of uncertainty in the market, which causes clients to pause before making major investments, but they remain optimistic about loan growth in the second quarter [26][27] - The company is committed to proactive engagement with clients to navigate periods of uncertainty and believes that its strong underwriting standards will mitigate potential impacts from economic challenges [22][23] Other Important Information - The company received 14 Coalition Greenwich Awards for performance with commercial clients and was recognized for best customer service in Illinois for the fourth consecutive year [25] - The management highlighted the importance of client feedback in improving service levels and maintaining competitive advantage [25] Q&A Session Summary Question: How prevalent is uncertainty from borrowers, and is it impacting growth outlook? - Management acknowledged that borrowers are cautious and pausing due to uncertainty but remain encouraged about the local economy and do not expect to change loan growth expectations [32][34] Question: Can you walk through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented an uncertainty overlay due to spikes in credit spreads and equity market factors at the end of the quarter [36][38] Question: How should we think about the source of deposit growth going forward? - The company plans to grow deposits to match loan growth, maintaining a stable mix and focusing on adding new clients [72][74]

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 steadily [36] - The management emphasized a focus on differentiated client service and maintaining a stable net interest margin despite 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 committed to proactive engagement with clients to navigate periods of uncertainty and believes that its strong underwriting standards will limit the impact of macroeconomic challenges [34][40] 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, but they are confident in their market position [58][60] Question: How is new client acquisition in wealth management going? - Management indicated that they are in the process of switching platforms to enhance capabilities, expecting improvement in the wealth management business moving forward [72] Question: Thoughts on M&A and growth through acquisition? - Management expressed confidence in their ability to pursue M&A opportunities and indicated they have the financial resources to do so [76]

Financial Data and Key Metrics Changes - The company reported a loan growth of $308 million or 5.1% and a deposit growth of $465 million or 7.8% in Q1 2025 [7][18] - The net interest margin (NIM) expanded by two basis points to 3.68% from 3.66% in the prior quarter, marking the sixth consecutive quarter of margin expansion [7] - Earnings per share (EPS) was reported at $1.45, a decrease of $0.43 compared to the prior period [21] - Tangible book value per share increased by more than 2.3% to $65.80, marking the ninth consecutive quarter of book value accretion [9] Business Line Data and Key Metrics Changes - Total loan originations and draws were approximately $490 million at a weighted average coupon (WAC) of about 7.84% [16] - The cost of interest-bearing deposits declined by 32 basis points, while the total deposit cost decreased by six basis points [19] - Non-interest income decreased by $763,000 primarily due to the absence of GPG fee income [26] Market Data and Key Metrics Changes - The company experienced a net outflow of $35 million in GPG deposits, primarily related to the return of reserve balances and check clearing [20] - The EB-5 related deposits increased by $100 million this quarter, totaling approximately $400 million [65] Company Strategy and Development Direction - The company is focused on capturing additional market share through traditional channels while exploring strategic opportunities to enhance shareholder value [14] - The ongoing investment in a new technology stack is expected to be fully integrated by the end of 2025, supporting the bank's growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties, citing strong liquidity, capital, and earnings [6] - The company anticipates loan growth of 10% to 12% for the year, with a full-year NIM expected to be between 3.70% and 3.75% [28] Other Important Information - The effective tax rate for the quarter was approximately 30% [28] - The company has not identified any broad-based negative trends affecting its loan portfolio [11] Q&A Session Summary Question: Clarification on total operating expenses for Q2 - The CFO indicated that total operating expenses for Q2 will be closer to $45 million, including adjustments for IT spending [35] Question: Remaining GPT-related expense or income items - The CFO confirmed that there will be no remaining fee-related income or expenses from the GPT business [37] Question: Implications of the gold card program on the EB-5 business - Management believes the gold card program could serve as a complementary product to the EB-5 program without disrupting core business [40][41] Question: Seasonal patterns in deposit growth - Management stated there are no seasonal patterns affecting deposit growth [42][44] Question: Discussion on potential dividends - Management confirmed that discussions regarding the possibility of paying a small dividend have been ongoing [46] Question: Trends in non-owner occupied CRE customer occupancy - Management reported that the non-owner occupied CRE portfolio remains stable and diversified [50] Question: Incremental competitive pressures on loan or deposit sides - Management indicated that there is no significant competition in New York City [55]

Financial Data and Key Metrics Changes - Synovus reported adjusted earnings per share of $1.30, a 4% increase from the previous quarter and a 65% increase year-over-year. Excluding the FDIC special assessment, adjusted earnings per share rose 53% [7][8] - Net interest income was $454 million, up 8% year-over-year and flat sequentially, with a net interest margin of 3.35%, an increase of seven basis points from the previous quarter [16][17] - Adjusted non-interest revenue was $117 million, a decline of 6% sequentially but an increase of 1% year-over-year [22] Business Line Data and Key Metrics Changes - Funded loan production was the highest since Q4 2022, leading to loan growth of $40 million in the quarter, with an annualized growth rate of 8% in high-growth lines of business [9][18] - Core deposits increased by 3% year-over-year, with positive trends in the overall deposit mix despite a decline in time deposits [20] - Adjusted non-interest expense was flat on a linked quarter basis and down 3% year-over-year, driven by controlled employment and project-related costs [24] Market Data and Key Metrics Changes - A commercial client survey indicated a rise in negative sentiment, with 17% of clients expecting business activity to decline over the next 12 months, up from 10% last quarter [9][10] - 41% of clients believe business activity will increase over the next 12 months, unchanged from the previous survey [10] Company Strategy and Development Direction - The company is focused on mitigating risks from an economic slowdown while seizing opportunities where it has a competitive advantage [12] - Synovus plans to maintain a loan growth target of 3% to 5% for 2025, primarily from middle market, corporate and investment banking, and specialty lending [32][34] - The company is committed to investing prudently to optimize long-term growth while managing overall expense growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health and resilience of the balance sheet despite economic uncertainties, emphasizing proactive balance sheet management and diversified business mix [11] - The outlook assumes moderate growth conditions with four Fed funds cuts throughout the year, impacting net interest margin [32][36] Other Important Information - The capital position remained strong with a preliminary common equity tier one ratio of 10.75% and total risk-based capital at 13.65% [28] - The company is engaged in efforts to identify risks associated with recent policy changes, including outreach to clients and monitoring tools [27] Q&A Session Summary Question: Can you talk about the lending environment and what factors might influence loan growth? - Management noted that recent tariff policy announcements have introduced uncertainty, but 41% of clients still expect business activity to increase. Loan production is expected to continue growing based on strong pipelines [43][45][46] Question: Was the strong loan production due to borrowers stockpiling inventories before tariffs? - Management clarified that while some industries saw an uptick, overall line utilization did not indicate significant stockpiling, and production was broad-based across various sectors [63][65] Question: How do you view the margin outlook given recent changes? - Management expressed satisfaction with the margin trajectory, expecting it to remain stable in the near term, but noted potential pressure from Fed policy changes [55][56] Question: Can you provide more detail on the impact of DC policy changes on your customer base? - Management indicated that about 15% of top borrowers felt a meaningful impact from policy changes, but overall exposure is limited. The company is actively engaging with affected clients [93][94][96] Question: What is the outlook for capital markets revenue? - Management noted that capital markets revenue was impacted by a lower volume of large loans and client preferences for floating rates, but expects improvement as loan production increases [108][110]

Simmons First National Corporation (SFNC) Q1 2025 Earnings Conference Call April 17, 2025 08:30 AM ET Company Participants Operator - Conference Call OperatorEd Billick - Director of Investor RelationsJay Brogdon - PresidentDaniel Hobbs - CFOGeorge Makris - Chairman and CEO Conference Call Participants David Feaster - Analyst, Raymond JamesWoody Lee - Analyst, KBWAhmad Hassan - Analyst, DA DavidsonMatt Olney - Analyst, Stevens Operator Good morning and welcome to the Simmons First National Corporation first ...

Financial Data and Key Metrics Changes - The company met consensus earnings estimates of $0.35 per share in Q4 2024, with a pre-tax pre-provision ROA of 1.77% and ROE of 1.23% [6] - The net interest margin (NIM) was reported at 3.54%, with a core efficiency ratio of 56.1% [6] - Average deposits grew by 8.7% in Q4, with a year-over-year increase of approximately $451.1 million or 5% [8][15] - Non-performing loans (NPLs) decreased from 0.83% to 0.68%, indicating improved credit quality [11] Business Line Data and Key Metrics Changes - Loans grew by $23.5 million in Q4, reflecting an annualized growth rate of 1.04% [17] - Equipment finance was highlighted as a growth area, with a notable increase of $61 million in Q4 alone [7] - Fee income improved by $800,000 quarter-over-quarter, driven by increases in swap income and mortgage gain on sale income [19][20] Market Data and Key Metrics Changes - The company experienced balanced deposit growth across most regions, with a focus on growing core deposits and transaction accounts [8] - The commercial real estate (CRE) sector showed good activity in Q4 after a period of selectivity due to credit and liquidity concerns [9] Company Strategy and Development Direction - The company aims for mid-single digit loan growth in 2025, with a focus on commercial and industrial (C&I) lending and commercial real estate [10][30] - A strategic acquisition of Center Bank in Cincinnati was announced, expected to enhance market presence and growth potential [12][48] - The management emphasized the importance of maintaining top quartile profitability while pursuing growth opportunities [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in 2025, supported by a strong regional accountability and new leadership in key markets [9] - The evolving interest rate environment is expected to favor NIM, with projections for gradual improvement in fee income [10][18] - Management acknowledged challenges from higher credit costs and deposit pricing pressures but remains focused on growth and profitability [6][10] Other Important Information - The company repurchased 477,000 shares in the quarter but paused buybacks following the acquisition announcement [22] - Customer experience metrics improved, with historic highs in Net Promoter Score and branch customer satisfaction [12] Q&A Session Summary Question: Can you discuss the fee income, particularly in mortgage banking and card income? - Management noted that card income has stabilized post-Durbin impact, with mortgage banking performing well despite market conditions [25][26] Question: What are the expectations for loan growth in 2025? - Management anticipates mid-single digit growth, with contributions from both CRE and C&I lending [30][31] Question: How does the company plan to manage NIM expansion? - The company expects NIM expansion to come primarily from loan growth and positive replacement yields, with conservative deposit cost forecasts [42][46] Question: Can you provide insights on the Center Bank acquisition? - The acquisition is seen as a strategic move to enhance market presence in Cincinnati, with expectations for significant growth potential [48][49] Question: How is the credit quality holding up? - Management reported improvements in asset migration trends and a reduction in non-performing loans, indicating a positive trajectory [60][62]

Southside Bancshares (SBSI) Q4 2024 Earnings Call January 29, 2025 12:00 PM ET Company Participants Lindsey Bailes - VP-IRLee Gibson - CEOJulie Shamburger - CFOWoody Lay - Vice PresidentJordan Ghent - Senior Research AssociateTim Mitchell - Equity Research Associate Operator Good day and thank you for standing by. Welcome to the Southside Bancshares 4th Quarter and Year End 2024 Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a questio ...

Prosperity Bancshares (PB) Q4 2024 Earnings Call January 29, 2025 11:30 AM ET Company Participants Charlotte Rasche - Executive VP & General CounselDavid Zalman - Senior Chairman & CEOAsylbek Osmonov - Chief Financial OfficerTim Timanus - ChairmanKevin Hanigan - President & Chief Operating OfficerJon Arfstrom - Managing Director - Associate Director of US ResearchCatherine Mealor - Managing Director - Equity ResearchMatt Olney - Managing DirectorJon Rau - Vice President Conference Call Participants Manan Go ...

Financial Data and Key Metrics Changes - The company reported a net operating profit of $2.98 billion or $0.54 per share for Q4 2024, with pre-tax pre-provisioned earnings at $41 million or 1.28% [4] - For the full year 2024, operating earnings were $11.94 billion or $2.17 per share, flat compared to 2023 [5] - The net interest margin (NIM) decreased during the quarter but is expected to increase moving forward [5][23] - The allowance for credit losses (ACL) coverage rose to 125 basis points when excluding the mortgage warehouse [16] Business Line Data and Key Metrics Changes - Funded loans saw a small decrease year-over-year, with expectations for positive loan growth in 2025 projected between low to mid-single digits [6] - Criticized loans declined by nearly 20% year-over-year, with total criticized loans at $36.56 million [12][13] - Operating non-interest income increased by $130,000 to $1.45 million, driven by strong performance in government-guaranteed loans [26] Market Data and Key Metrics Changes - The company experienced a 20% reduction in reliance on wholesale funding over the last year [14] - The loan-to-deposit ratio improved from 104% to 89% over the past two years [19] - The company has seen strong deposit growth, allowing for a reduction in brokered CDs and public funds [22] Company Strategy and Development Direction - The company is focused on disciplined loan growth and remixing its deposit portfolio to improve profitability [28] - Management aims to achieve a return on average assets (ROA) exceeding 1% by 2025, driven by loan growth and deposit repricing [5][33] - The company is engaging with a consulting firm to improve operational efficiency and leverage in various business areas [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit risk profile improving and expects net charge-offs to remain around 20 basis points for 2025 [66] - The company anticipates that 2025 will produce positive operating leverage, driven by improved NIM and stronger fee revenues [29] - Management noted that the pipelines for loan production are strong, particularly in Texas, and expects to maintain robust activity in real estate [38][39] Other Important Information - The Chief Financial Officer, Terry Earley, will retire in June 2025 but will continue to assist in a consulting role [80] - The new CFO will be Will Hofford, who has been with the company for thirteen years [81] Q&A Session Summary Question: What are the expectations for achieving a 1% ROA in 2025? - Management believes that loan growth and deposit repricing will be the main drivers to achieve the 1% ROA target in 2025 [33] Question: What is the outlook for loan growth given the current payoffs? - Management indicated that while payoffs are expected to continue, the production side of the business is strong, and they are confident in achieving necessary loan growth [39][41] Question: Can you provide details on the dynamics of non-interest bearing deposits? - Management noted that seasonal fluctuations and intentional exits from expensive deposit relationships contributed to the decline, but they expect non-interest bearing deposits to stabilize between 21% and 23% [60] Question: What is the outlook for government guaranteed loans in 2025? - Management is optimistic about the government guaranteed loan business, citing strong pipelines and production [62][75] Question: What is the expected net charge-off ratio for 2025? - Management expects the net charge-off ratio to remain around 20 basis points for 2025, with confidence in continued credit improvement [66]

Huntington Bancshares (HBAN) Q4 2024 Earnings Call January 17, 2025 09:00 AM ET Company Participants Timothy Sedabres - Executive VP & Head of Investor RelationsStephen Steinour - Chairman, President & CEOZachary Wasserman - CFO & Senior EVPEbrahim Poonawala - Managing Director - Head of North American Banks ResearchBrian Foran - Managing DirectorJon Arfstrom - Managing Director - Associate Director of US ResearchNathan Stein - Vice President Equity Research Conference Call Participants Manan Gosalia - Equi ...