Financial Data and Key Metrics Changes - The company reported a GAAP loss per share of $0.29 and core earnings per share of $0.23, with a significant non-cash goodwill impairment charge of $17.6 million or $0.51 per share impacting GAAP results [6][32] - GAAP and core net interest margins (NIM) expanded to 2.51% and 2.49% respectively, marking increases of 12 and 24 basis points quarter over quarter [9][32] - Average deposits increased by 7% year over year and about 1% quarter over quarter, with the loan to deposit ratio improving to 87% from 94% a year ago [11][32] Business Line Data and Key Metrics Changes - The company is focused on improving profitability through net interest margin expansion, particularly from real estate loans that are contractually set to reprice higher [8][10] - Approximately $511 million of loans are due to reprice 171 basis points higher in 2025, with expectations of generating $9 million in interest income for 2025 and $13 million for 2026 from these repricings [14][15] Market Data and Key Metrics Changes - The Asian markets account for about one-third of the company's branches, with $1.3 billion in deposits and $738 million in loans, indicating a 3% market share in a $40 billion market, suggesting significant growth potential [25][26] - The spread between the five-year FHLB advance and the three-month SOFR rate turned negative during the quarter, which may impact future net interest margins [26][27] Company Strategy and Development Direction - The company aims to enhance profitability, maintain credit discipline, and preserve strong liquidity and capital, with a focus on contractual loan repricing to drive net interest margin expansion [6][32] - The company plans to expand its branch network in Asian markets, leveraging its multilingual staff and community engagement to capture growth opportunities [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economic outlook has become uncertain, the company remains focused on controllable factors and investing in business initiatives to drive future profitability [29][32] - The company expects stable assets for the year, with loan growth being market-dependent and a continued emphasis on improving the mix of interest-earning assets and liabilities [30][32] Other Important Information - The allowance for credit losses is stable at 59 basis points of loans, with criticized loans to total loans at a low 133 basis points, reflecting a conservative underwriting approach [19][32] - Non-interest income is expected to benefit from the closing of back-to-back swap loans and a BOLI exchange, while non-interest expenses are projected to increase by 5% to 8% in 2025 [31][32] Q&A Session Summary Question: Can you provide insight on the adjustments that offset seasonal expenses? - Management indicated that adjustments were made based on year-end accruals that needed to be trued up as the new year began [38] Question: What is the status of the multifamily uptick in non-performing loans (NPLs)? - Management explained that the multifamily loan issue involves a relationship with three loans at an LTV of about 43%, and they are working to resolve it [40][44] Question: How is the Asian community managing through the tariff situation? - Management stated that there is no direct exposure to trade financing and that the community is expected to remain stable despite potential price increases [60][61] Question: What is the outlook for the SBA pipeline and gain on sale income? - Management noted that they do not provide guidance on gain on sale income but mentioned activity in real estate-based lending with premiums on sale around 7% [67]

Financial Data and Key Metrics Changes - The company reported a pre-tax net income of $4.5 million for the first quarter, with adjustments leading to a post-tax income of $5.9 million, equating to a 66 basis point ROA [19] - Net interest margin improved to 3.15%, up from 2.90% in the previous quarter, driven by reduced deposit costs [20] - Core bank cost of deposits remained attractive at 183 basis points, with new loans yielding over 7% [20] Business Line Data and Key Metrics Changes - The core community bank's loan pipeline has increased to approximately three times the level from a year ago, with a $25 million increase in loans as of April [5] - The mortgage division closed $800 million in loans in 2024, with a significant increase in profitability compared to the previous year [9] - Non-interest income for the quarter was $7.8 million, down from $8.5 million in the previous quarter, primarily due to a negative swing in fee income related to the consumer program [21] Market Data and Key Metrics Changes - The company expects to see a seasonal increase in mortgage warehouse balances, which were up 80% in the quarter [32] - The average balance of earning assets increased by $60 million from the first quarter to the current period [26] Company Strategy and Development Direction - The company is focused on three strategies to drive higher ROAs, including growth in earning assets, expansion of the mortgage division, and consolidation of core processing contracts [4][6] - The digital platform is expected to support growth in excess lending and mortgage warehouse, enhancing profitability without increasing operating expenses [12][13] - The company is working towards deconsolidating Panacea Holdings, which could improve operating results significantly [15][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in mortgage volumes and profitability, particularly as the busy season approaches [31] - The company anticipates a reduction in operating expenses due to the deconsolidation of Panacea and the consolidation of core contracts [29][49] - Management expects to exceed the 1% ROA goal set for the year, driven by growth in earning assets and improved margins [23] Other Important Information - The company has made significant progress in managing its consumer loan portfolio, reducing volatility and risk [17] - The digital platform is expected to earn the bank around a 1.5% after-tax ROI, supporting overall profitability [12] Q&A Session Summary Question: Are there any potential issues that could affect profitability in Q2? - Management indicated that they are currently seeing an increase in earning assets and expect strong performance in mortgage volumes, with no significant pressures on operating expenses [26][28] Question: What is the expected timeline for resolving consumer loans? - Management expects that a significant portion of promotional loans will pay off within the year, with the remaining standard consumer loans amortizing over time [36][39] Question: How do you foresee the margin outlook for Q2 and the rest of the year? - Management anticipates a margin expansion of 5 to 10 basis points in Q2, with a potential increase of 10 to 20 basis points by year-end [43][44] Question: What is the status of Panacea deconsolidation? - Management confirmed that operational changes have been made, and they are evaluating the accounting requirements for deconsolidation, which could be reflected in the upcoming 10-Q filing [61][62]

Core Points - Blue Foundry Bancorp reported a net loss of $2.7 million, or $0.13 per diluted common share, for Q1 2025, consistent with the previous quarter and slightly improved from a net loss of $2.8 million in Q1 2024 [1][34]. Financial Performance - The net interest margin increased by 27 basis points to 2.16%, driven by improved yields on assets and reduced costs of liabilities [2][12]. - Interest income for the quarter was $22.7 million, up by $928 thousand, or 4.3%, compared to the previous quarter [6]. - Interest expense decreased by $343 thousand, or 2.8%, to $12.0 million compared to the linked quarter [6]. Loan and Deposit Growth - Total loans increased by $42.2 million to $1.63 billion, with significant growth in commercial real estate and consumer portfolios [4][22]. - Deposits rose by $43.9 million to $1.39 billion, with increases in NOW and demand accounts and time deposits [7][22]. Asset Quality - The non-performing asset ratio was 0.27%, with non-performing loans totaling $5.7 million, or 0.35% of total loans [28][36]. - The allowance for credit losses on loans was 0.81% of gross loans, with a provision for credit losses of $201 thousand recorded for Q1 2025 [28][36]. Capital Position - Tangible book value per share increased to $14.81, and the company maintained a strong capital position [2][28]. - Shareholders' equity decreased by $5.5 million to $326.7 million, primarily due to share repurchases [28].

Core Viewpoint - Sound Financial Bancorp, Inc. reported a net income of $1.2 million for Q1 2025, a decrease from $1.9 million in Q4 2024, but an increase from $770 thousand in Q1 2024, alongside a cash dividend declaration of $0.19 per share [1][2][40] Financial Performance - Total assets increased by $75.6 million or 7.6% to $1.07 billion at March 31, 2025, compared to $993.6 million at December 31, 2024, but decreased by $17.5 million or 1.6% from $1.09 billion at March 31, 2024 [6] - Loans held-for-portfolio decreased by $13.9 million or 1.5% to $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024, and decreased by $11.7 million or 1.3% from $897.9 million at March 31, 2024 [6][33] - Total deposits increased by $72.5 million or 8.7% to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024, but decreased by $6.5 million or 0.7% from $916.9 million at March 31, 2024 [7] Income and Expenses - Net interest income decreased by $149 thousand or 1.8% to $8.1 million for Q1 2025, compared to $8.2 million for Q4 2024, but increased by $611 thousand or 8.2% from $7.5 million for Q1 2024 [9] - Total noninterest income decreased by $62 thousand or 5.3% to $1.1 million for Q1 2025, compared to Q4 2024, and was virtually unchanged compared to Q1 2024 [11][24] - Total noninterest expense increased by $856 thousand or 12.1% to $7.9 million for Q1 2025, compared to Q4 2024, and increased by $258 thousand or 3.4% compared to Q1 2024 [11][25] Credit Quality - Total nonperforming loans increased by $2.2 million or 28.9% to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024, and increased by $600 thousand or 6.6% from $9.1 million at March 31, 2024 [8] - The allowance for credit losses on loans to total loans outstanding was 0.95% at March 31, 2025, compared to 0.94% at December 31, 2024, and 0.96% at March 31, 2024 [10][35] Capital Management - Stockholders' equity totaled $104.4 million at March 31, 2025, an increase of $765 thousand or 0.7% from $103.7 million at December 31, 2024, and an increase of $3.4 million or 3.4% from $101.0 million at March 31, 2024 [40]

Financial Data and Key Metrics Changes - The company reported net income of $21,500,000 for Q1 2025, resulting in diluted earnings per share of $0.71, with an annualized return on average assets of 1.03% and an annualized return on average tangible common equity of 14.14% [5][14] - There was a linked quarter decrease of $94,400,000 or 2% in loans, primarily due to payoff activity in the commercial real estate (CRE) portfolio [5][14] - The net interest margin increased by three basis points to 2.86%, and net interest income rose by $145,000 [6][19] Business Line Data and Key Metrics Changes - First quarter commercial loan production totaled approximately $142,000,000, representing a 46% increase over Q1 2024, with only $52,000,000 funded during the quarter [8] - The loan pipeline exceeds $1,900,000,000, the largest in the last 24 to 36 months, with a balanced mix of approximately 45% term loans and 55% construction loans [10] - Nonperforming assets remained low at 0.39% of total assets, despite an increase in classified loans to $67,000,000 from $48,000,000 [12][15] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate, contributing to a healthy market environment [6] - The average rate of loans funded during the first quarter was approximately 7.3%, with loans exposed to the oil and gas industry totaling $111,000,000 or 2.4% of total loans [15] Company Strategy and Development Direction - The company anticipates mid-single digit loan growth for 2025, despite the first quarter's loan reduction [5][14] - There is a focus on expanding the commercial and industrial (C and I) initiative, which now represents approximately 25% of the total pipeline [11] - The company is optimistic about loan growth and is making progress in the C and I space, particularly in Houston [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the operating environment, despite uncertainties related to market conditions and tariff negotiations [6] - The company expects to see positive impacts on margins due to anticipated repricing of the CD portfolio and new swaps implemented [31][32] - Management is confident in maintaining mid-single digit loan growth guidance for the year, supported by a dynamic loan pipeline [62] Other Important Information - The securities portfolio decreased by $76,900,000 or 2.7% from the previous quarter, primarily due to maturities and principal payments [16] - The company did not repurchase any shares during the first quarter but has repurchased 196,419 shares at an average price of $26.82 per share after the quarter [18] Q&A Session Summary Question: Loan pipeline and growth guidance - The loan pipeline of $1,900,000,000 is the largest in two years, with expectations of 25% to 30% pull-through historically [26] - The guidance for mid-single digit loan growth remains intact despite some unexpected payoffs [62] Question: Margin outlook - The company anticipates a positive impact on margins as a portion of the CD portfolio matures and reprices lower [31] Question: Expense management - Expenses came in lower than budgeted due to decreases in salaries and employee benefits, with no targeted reductions implemented [38] Question: Credit quality and restructured loans - A large construction loan in Austin, Texas was extended and moved to nonperforming status, but the borrower has not missed payments and leasing activity is positive [40]

Financial Performance - The company reported revenue of $156 million and net income of $43 million, marking a 48% increase in net income compared to the same quarter last year [5][11] - Earnings per diluted share increased to $0.34 from $0.23 in the first quarter of 2024 [5] - The net interest margin expanded by 45 basis points to 3.87%, attributed to lower cost of funds and increased asset yields [10][11] - Non-interest income decreased by $11.7 million due to prior quarter transactions but showed a 19% increase year-over-year [11][15] Business Line Performance - Average commercial loans increased by $121 million or 6.2% compared to the previous quarter, reflecting a strategic shift towards commercial lending [12] - The consumer loan segment saw modest growth, capitalizing on stronger demand for indirect loans [12] - The commercial real estate (CRE) portfolio declined by 3.5%, while residential mortgage and home equity portfolios decreased by 1.9% and 1.3%, respectively [13] Market Data - Average total deposits increased by $60 million quarter-over-quarter, with consumer non-brokered deposits rising by $68 million [13] - The cost of deposits decreased by nine basis points to 1.59%, maintaining a competitive position relative to peers [14] Company Strategy and Industry Competition - The company is focused on sustainable, responsible, and profitable growth, with a renewed emphasis on enhancing its retail banking franchise [6][7] - A merger with Pennswoods Bancorp is underway, expected to close by late July, which will position the company among the top 100 banks in the U.S. by asset size [8][9] - The company is actively pursuing de novo branch opportunities, particularly in Columbus and Indianapolis [7] Management Commentary on Operating Environment and Future Outlook - The current operating environment is characterized by significant market volatility and economic uncertainty, but the company remains focused on managing controllable factors [9][10] - The company expects to maintain its margin performance and is cautious about loan growth due to unpredictable economic conditions [20][21] Other Important Information - The adjusted efficiency ratio improved to 57.7%, reflecting disciplined expense management [16] - The company has a stable credit risk profile, with non-performing loans and assets at five-quarter lows [18] Q&A Session Summary Question: Margin guidance and economic outlook - Management indicated a core margin of 3.48% and expects to be at the high end of the range, with potential impacts from future Fed rate cuts [27][28] Question: Deposit growth drivers - The company is transitioning from CDs to more liquid products, with new money market rates around 3.75% [30][32] Question: Credit trends and industry exposure - Management noted potential impacts from tariffs on industries like manufacturing and transportation, with aggregate exposure at about 8% of the loan portfolio [42][43] Question: Commercial loan build-out - The company continues to take share in newer verticals and has seen stronger pipelines compared to the previous year [44][51] Question: Impact of Pennswoods acquisition on financial metrics - Management refrained from providing specific guidance on tangible book value dilution or purchase accounting due to market volatility [40][72] Question: Future M&A activity - The company remains open to future acquisitions but is currently focused on internal efficiencies and execution due to market conditions [76][78]

Core Viewpoint - Freedom Financial Holdings reported strong financial results for the first quarter of 2025, with a significant increase in net income and improvements in key financial metrics despite a challenging economic environment [1][2]. Financial Performance - Net income for Q1 2025 was $2,019,348, or $0.28 per diluted share, representing a 73.4% increase compared to the same quarter in 2024 [1][11]. - Net interest income was $7.72 million, up 20.17% from the previous quarter but down 17.91% from Q1 2024 [3][11]. - Total revenue increased by 13.04% compared to the linked quarter and 12.65% year-over-year [6][11]. Cost and Efficiency - Non-interest expenses decreased by $447,995, or 6.93%, compared to the linked quarter, and by 3.30% compared to the same period in 2024 [7][11]. - The Efficiency Ratio improved to 69.22% for Q1 2025, down from 84.07% in the previous quarter and 80.64% in Q1 2024 [8][11]. Asset Quality - Non-accrual loans decreased by 22% to $10.7 million, representing 1.45% of loans held-for-investment [2][9]. - Total non-performing assets were 1.01% of total assets as of March 31, 2025, down from 1.25% at the end of the previous quarter [9][10]. Capital and Liquidity - Total assets were $1.08 billion, a decrease of $8.3 million from December 31, 2024 [12][11]. - Stockholders' equity was $81.11 million, slightly down from $81.44 million at the end of 2024 [13][11]. - The Company maintained strong capital ratios, with a Total Capital Ratio of 14.95% as of March 31, 2025 [15][11]. Shareholder Actions - The Company repurchased 177,692 shares under its share repurchase program, with a total of 214,400 shares repurchased out of the 250,000 authorized [14][11].

Core Viewpoint - BankUnited, Inc. (BKU) reported first-quarter 2025 earnings of 78 cents per share, exceeding the Zacks Consensus Estimate of 74 cents and up from 64 cents in the prior-year quarter [1] Financial Performance - Net income for the quarter was $58.5 million, reflecting a 21.9% increase from the previous year, surpassing the estimate of $56.6 million [2] - Quarterly net revenues reached $255.4 million, a 5.7% year-over-year increase, but fell short of the Zacks Consensus Estimate of $261.7 million [3] - Net interest income (NII) was $233.1 million, growing by 8.5%, while the net interest margin (NIM) expanded by 24 basis points to 2.81% [3] Income and Expenses - Non-interest income decreased by 17.1% to $22.3 million, primarily due to a 62.3% drop in lease financing income, which was below the projected $24.8 million [4] - Non-interest expenses rose slightly to $160.2 million, driven by increased employee compensation, technology costs, and other expenses, partially offset by lower depreciation costs [4] Loan and Deposit Trends - Total loans amounted to $24 billion, a slight decrease from the prior quarter, while total deposits were $28.1 billion, showing a marginal increase [5] Credit Quality - The provision for credit losses was $15.1 million, down 1.1% from the previous year, which was better than the expected $16.1 million [6] - The ratio of net charge-offs to average loans increased to 0.33%, up 31 basis points year-over-year, and the non-performing assets ratio rose to 0.76%, an increase of 42 basis points [6] Capital and Profitability Ratios - The Common Equity Tier 1 risk-based capital ratio improved to 12.2% from 11.6%, and the total risk-based capital ratio increased to 14.3% from 13.7% year-over-year [7] - Return on average assets was 0.68%, up from 0.54% in the prior year, and return on average stockholders' equity rose to 8.2% from 7.3% [7] Market Outlook - BankUnited's strategies to enhance fee income, attract low-cost deposits, and benefit from higher interest rates are expected to support revenue growth, despite rising expenses and exposure to commercial real estate and residential loans [8]

Financial Data and Key Metrics Changes - The company reported a net income of $4.9 million for Q1 2025, which is a 67% increase year-over-year, translating to $0.30 per share [10] - The net interest margin improved by 36 basis points year-over-year, driven by a 7 basis point decrease in the cost of deposits [4][10] - The total risk-based capital ratio stood at 16.69%, with a tangible common equity (TCE) ratio of 9.82% [9] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $63 million, with commercial loan originations at $49 million, marking a fivefold increase from the same quarter last year [6] - Non-interest income increased by over $100,000 from the prior quarter, primarily due to higher earnings on Bank-Owned Life Insurance (BOLI) [13] - Non-interest expense rose by $2.9 million from the prior quarter, mainly due to seasonal increases in salaries and employee benefits [11] Market Data and Key Metrics Changes - Total deposits reached $3.3 billion, an increase of $82 million from the prior quarter, with non-interest bearing deposits comprising 43% of total deposits [13] - The average cost of deposits declined by 7 basis points in Q1, with continued reductions observed into April [14] Company Strategy and Development Direction - The company aims to continue generating solid financial performance in 2025, focusing on improving net interest margin and revenue [16] - There is an emphasis on adding banking talent to support profitable growth and investing in innovation and technology to enhance service quality [16] - The company is evaluating share repurchase options as part of its capital management strategy [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, they expect a higher level of loan growth driven by new hires rather than a significant increase in market-wide loan demand [16] - The company has not observed any meaningful increase in risk within its loan portfolio despite broader macroeconomic concerns [5] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 80th consecutive dividend payment [15] - Charitable contributions in Q1 were $403,000, significantly higher than previous quarters, as the timing of contributions was pulled forward [12] Q&A Session Summary Question: Expectations around the buyback moving forward - Management is contemplating capital actions and is waiting for discussions with regulators regarding their capital plan [20][22] Question: Details on classified loans - The majority of classified loans were related to two borrowers, a contractor and a multifamily real estate entity, with unique performance issues [23][24] Question: Expense expectations for upcoming quarters - The expense base is expected to normalize, with a historical compound annual growth rate of about 4% [25][26] Question: Deposit growth sustainability - The deposit growth was attributed to new accounts and inflows from existing clients, though some seasonal outflows are expected [31] Question: Future loan production trends - Loan production remains strong, driven by new hires, with a healthy pipeline expected to sustain growth [36][39] Question: Concerns regarding the wine industry exposure - The company has minimal exposure to the wine industry, with loans secured and closely monitored [87][88] Question: Client movement from larger banks to smaller institutions - There is a trend of clients moving from larger banks to community-oriented institutions, benefiting the company [90][92] Question: Investment portfolio and cash management - The company is balancing its investment portfolio and cash levels, with no immediate need to stockpile cash [94][96]

Financial Data and Key Metrics Changes - The company reported a net income of $4.9 million for Q1 2025, which is a 67% increase year-over-year, translating to $0.30 per share [11] - The net interest margin improved by 36 basis points year-over-year, driven by a decrease in the cost of deposits [5][11] - Total risk-based capital ratio stood at 16.69% and tangible common equity (TCE) ratio at 9.82% [10] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $63 million, with commercial loan originations at $49 million, marking a fivefold increase from the same quarter last year [8] - Non-interest income increased by over $100,000 from the prior quarter, primarily due to higher earnings on Bank-Owned Life Insurance (BOLI) [14] Market Data and Key Metrics Changes - Total deposits reached $3.3 billion, an increase of $82 million from the previous quarter, with non-interest bearing deposits comprising 43% of total deposits [14][9] - The average cost of deposits declined by seven basis points in Q1 2025, reflecting effective management of deposit rates [15] Company Strategy and Development Direction - The company aims to continue generating solid financial performance in 2025, focusing on net interest margin and revenue growth [18] - Plans to add banking talent and invest in innovation and technology to enhance service quality and operational efficiency [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the loan portfolio despite macroeconomic concerns, noting no significant increase in risk within their portfolio [6][18] - The company anticipates a healthy loan pipeline and expects to see improving loan growth driven by new hires rather than a general increase in market demand [18] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 80th consecutive dividend payment [17] - Charitable contributions in Q1 2025 were $403,000, significantly higher than previous quarters due to a shift in timing for contributions [13] Q&A Session Summary Question: Expectations around the buyback moving forward - Management is contemplating capital actions post-regulatory exam and has authorization for buybacks, but no immediate plans were disclosed [22][24] Question: Details on classified loans - The majority of classified loans were related to two borrowers with unique operational issues, and management does not expect further deterioration [25][26] Question: Expense expectations for upcoming quarters - The expense base is expected to normalize, with a historical compound annual growth rate of about 4% [27][29] Question: Deposit growth sustainability - Management noted that while there were seasonal inflows, the growth is attributed to new client relationships and ongoing efforts in commercial lending [34] Question: Future loan production trends - The company is not seeing a delay in deals despite macro uncertainty, with a healthy loan pipeline driven by new hires [40][42] Question: Credit management approach amidst uncertainty - Management confirmed that their conservative credit management approach remains unchanged despite economic uncertainties [64] Question: Plans for deploying excess liquidity - The company has accelerated securities purchases and is monitoring loan growth and tax-related outflows before further actions [66] Question: Concerns regarding the wine industry exposure - The company has minimal exposure to the wine industry and is closely monitoring clients in that sector, with no major issues reported [86] Question: Trends in client movement from larger banks - Management noted a trend of clients moving from larger institutions to community-oriented banks, although it is difficult to predict cyclicality [90]