In an exchange filing on Tuesday (February 3), Tonse was previously the managing director in charge of retail business and operations at The lender added that its current MD and CEO, Prashant Kumar, is serving an extended term, which is scheduled to conclude in April this year. Taking into account Kumar’s preferences and the bank’s growth requirements, Yes Bank had approached the RBI for approval to appoint new leadership.Yes Bank Q3 snapshotLive EventsThe lender reported a 55% increase in its December qua ...

Financial Data and Key Metrics Changes - Fourth quarter net income totaled $10.2 million, or $0.59 per share, stable from the third quarter but more than double the earnings from the same quarter a year ago [3][7] - Return on Assets (ROA) and Net Interest Margin (NIM) were stable from the third quarter while increasing sharply from a year ago [3] - For the year, loans grew at a solid 8.6%, with loan originations for the year being 32% higher than in 2024 [4][12] - Non-performing loans decreased by 45% and non-performing assets decreased by 34% since the end of last year [6][13] Business Line Data and Key Metrics Changes - Fourth quarter loan originations were $145 million, with a healthy pipeline expected to support high single-digit growth in 2026 [4] - Net interest income increased by 13% to $112 million for the year, driven by loan growth and a decline in funding costs [9] - Non-interest income categories increased except for other income, with a decline in non-interest expenses due to year-end accruals [10][11] Market Data and Key Metrics Changes - Total deposits increased by 8.6% compared to the fourth quarter a year ago, with strong growth in interest-bearing non-maturity deposits [5] - Average demand deposits remained stable in 2025, comprising 16% of total deposits [5] - The average rate on interest-bearing deposits declined by 55 basis points from the fourth quarter of 2024 [6] Company Strategy and Development Direction - The company aims to return to its historic performance levels, focusing on resolving remaining non-performing assets [3] - There is a commitment to maintaining pricing and structuring discipline in loan originations [4] - The company plans to be more active in buyback programs after addressing sub-debt [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in having turned a corner on credit, expecting continued improvement in performance [3] - The competitive landscape for deposits remains intense, impacting deposit costs [6][16] - Management anticipates that credit costs will be much lower now that credit has stabilized [13] Other Important Information - Tangible book value per share increased by 7.8% during 2025, ending the year at $26.42 [14] - The effective tax rate in 2026 is expected to be between 27% and 28% [11] Q&A Session Summary Question: What is the outlook for deposit beta going forward? - Management indicated that the deposit beta is expected to continue increasing due to a large portion of the funding base maturing over the next year [16] Question: Any updates on sub-debt refreshes in April? - Management is looking at opportunities to rightsize the sub-debt for the balance sheet and capital stack [17] Question: How should we think about the buyback this year? - Management expects to be more active in buyback programs after addressing sub-debt [18] Question: Can you discuss the margin outlook for 2026? - Management believes there is an opportunity for deposit costs to continue to come down, which could lead to margin expansion [25][27] Question: What are the expectations for credit metrics in the next 12 months? - Management is optimistic about resolving non-performing loans and expects continued improvement in credit metrics [29][31] Question: What is the current competition like for commercial real estate loans? - Management noted that competition remains intense, but they are strategically focused on relationship-driven lending [54][56]

Financial Data and Key Metrics Changes - The company reported EPS of $0.91 and net income of $35 million for Q3 2025, with ROE and ROA at 1.42%, up 10 basis points from Q2 [6] - PPNR increased to 1.89%, up 16 basis points, aided by NIM expansion to 3.93%, which rose by five basis points [6][8] - Tangible book value grew by more than 3% this quarter, indicating strong capital levels and flexibility for acquisitions and share buybacks [5][15] Business Line Data and Key Metrics Changes - Total loan balances grew by $47 million or 2.3% annually, primarily driven by commercial real estate (CRE) activities, which saw an increase of $133 million [9] - Consumer loan activity grew by $37 million or approximately 6% annualized, while commercial and industrial (C&I) balances declined by $46 million due to higher payoffs and seasonal reductions [10][11] - Non-interest-bearing deposits represented 28% of total deposits, contributing to net interest income and margin improvements [5][8] Market Data and Key Metrics Changes - The company experienced a slight increase in non-performing assets (NPAs) to 62 basis points of total loans, which remains within an acceptable range [11] - The allowance for credit losses decreased by one basis point, indicating a stable credit risk environment [11] Company Strategy and Development Direction - The company aims for organic growth to exceed $10 billion in the coming quarters, focusing on enhancing its deposit franchise and managing asset sensitivity [5][6] - Strategic initiatives have been implemented to position the company for long-term success, including a focus on improving productivity and leveraging technology [4][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current strong performance and future growth, despite some uncertainty in the market due to budget impasses [18][50] - The company anticipates mid-single-digit loan growth in Q4, supported by strong CRE activity and a focus on improving C&I growth [10][18] Other Important Information - The company has a share repurchase authorization in place for $50 million, indicating a commitment to returning value to shareholders [15] - Management highlighted the importance of maintaining a strong deposit mix and proactive pricing strategies in response to competitive pressures [28][53] Q&A Session Summary Question: Loan growth outlook and impact of paydowns - Management noted that paydowns were higher than expected, impacting overall loan growth, but CRE activity remains strong with expectations for better growth in Q4 [17] Question: Margin stability amid Fed cuts - Management believes they are well-positioned to handle potential rate cuts due to their funding mix and ability to adjust deposit rates [19] Question: M&A activity and geographic preferences - Conversations regarding M&A remain active, with interest in expanding into faster-growing areas beyond current markets [22][66] Question: Competition and deposit betas - Increased competitive pressure was noted following recent rate cuts, particularly on CDs, but management expects to stabilize margins through effective pricing strategies [27][28] Question: Credit quality and specific exposures - Management reassured that credit quality remains stable, with no significant concerns in specific asset classes or geographies [49][65]

Financial Data and Key Metrics Changes - GAAP net income for the third quarter was $10.1 million, or $1.27 per share, up from $9.1 million, or $1.15 per share in the previous quarter [3] - Pre-provision net revenue return on assets increased to 1.7%, up 27 basis points from the prior quarter [3] - Net interest margin expanded to 3.34%, up 24 basis points over the prior quarter, driven by a 13 basis point rise in loan yields [7][8] Business Line Data and Key Metrics Changes - The SBA division's gains on sale rose to $1.4 million for the quarter, with total SBA originations reaching $22 million [5] - Non-interest income increased to $2.5 million, driven by SBA sales gains, representing a 24% increase compared to the linked quarter [10] - Loan originations totaled $220 million for the quarter, bringing year-to-date fundings to just over $500 million [4][12] Market Data and Key Metrics Changes - Non-performing assets as a percentage of total assets fell to 56 basis points compared to 78 basis points last quarter [5][6] - The efficiency ratio improved to 51.4%, down from 56.1% in the previous quarter [6][10] - Total assets reached $3.2 billion, showing slight growth compared to the linked quarter [11] Company Strategy and Development Direction - The company aims to diversify income streams and improve the deposit base while attracting talented banking professionals [16] - The strategic focus includes increasing the proportion of variable rate loans from just over 20% to 35% to mitigate the impact of future interest rate changes [9] - The company is optimistic about the SBA division's potential for further scaling beyond the current production goal of $50 million [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook on credit trends, with expectations for continued improvement in non-performing asset ratios [4][16] - The company anticipates that the recent rate cuts will have a short-term impact on net interest margin but expects improvements as term deposits mature [9] - The management is cautious about the potential short-term impacts of the government shutdown on the SBA division but remains optimistic about future growth [34] Other Important Information - The company revised its loan growth guidance to flat for the year due to elevated payoffs [15] - Non-interest income guidance for the full year is affirmed at $7 to $8 million, with net interest income guidance set at $97 to $98 million [15] Q&A Session Summary Question: Loan pricing and elevated payoffs - Management noted that year-to-date originations have a weighted average rate of 7.86% and that elevated payoffs are expected to continue into 2026 [20][21] Question: Update on core deposit initiative - Management reported positive developments with newly hired teams contributing to deposit growth, although full production is expected by 2026 [26] Question: Deposit beta with Fed rate cuts - Management indicated that approximately $1 billion of non-maturity interest-bearing deposits are indexed to Fed funds, with effective beta achieved at 50% on $1 billion of deposits [28]

Financial Data and Key Metrics Changes - The company reported net income of $65.6 million and diluted earnings per share of $1.20, representing an 18% increase from the same quarter last year [9] - Pre-provision net revenue was $88.3 million, with a return on average assets of 1.47% and a return on common equity of 14.9% [9] - The book value grew by an annualized 14% from the previous quarter, ending at $32.37 per share [10] - Net interest income for the quarter was $133.4 million, with a normalized net interest margin of 3.19% [10][12] Business Line Data and Key Metrics Changes - Loan growth was below expectations, with loan paybacks increasing by $500 million over the prior two quarters [3] - The loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago [3][4] - Non-performing assets rose to $930 million, an increase of approximately $96 million during the quarter [7] Market Data and Key Metrics Changes - The company experienced a reduction in high-cost municipal deposits, offset by large corporate deposit inflows [4] - All markets are now profitable, a first since the company's inception [5] Company Strategy and Development Direction - The company aims to manage down total deposit costs as the Federal Reserve reduces the Fed Funds rate [4] - Focus on organic loan and deposit growth while maintaining competitive pricing [14] - The company is exploring opportunities in Texas, emphasizing the importance of local relationships [43] Management's Comments on Operating Environment and Future Outlook - Management noted that lending activity softened in Q3 but has been robust moving into Q4 [6] - The company expects continued margin expansion due to anticipated Federal Reserve rate cuts [11][26] - Management expressed confidence in resolving non-performing loans and maintaining credit quality [8][18] Other Important Information - The company recognized a loss of $7.8 million on the sale of bonds and invested in a solar tax credit, benefiting from a reduced tax provision [9][15] - The company has a total NDFI exposure of $71 million, which is less than 1% of the loan portfolio, indicating a cautious approach to risk [16][17] Q&A Session Summary Question: What pushed the borrower to non-performing status? - Management indicated that substantial additional collateral was taken, and a large payment expected did not materialize, leading to the non-accrual status [21] Question: What is the loan-to-value on the loans? - The loan-to-value is believed to be below one-to-one, with adequate security to cover the loans [23] Question: What is the expected margin improvement with upcoming Federal Reserve cuts? - Management expects a 7 to 10 basis points improvement in margin each quarter, with current normalized rates at 3.28% [25][41] Question: Are there new markets of interest for the company? - The company is particularly interested in Texas, emphasizing the need for local relationships to succeed in that market [43] Question: What is the effective tax rate going forward? - The effective tax rate is expected to remain around 18.9% for the year, with efforts to keep it below 20% [39]

Financial Performance - Net income reached $189 million, a 95% increase compared to $173 million in 1Q24[7] - Core net income increased by 110% to $203 million from $182 million in 1Q24[7] - Diluted EPS increased to $055, up from $051 per share in 1Q24[7] - GAAP book value per share increased by 32% to $1619 from $1570 as of December 31, 2024[14] Loan Production and Portfolio - Loan production reached a record of $6404 million in UPB, a 137% increase from 4Q24 and a 691% increase from 1Q24[7] - The total loan portfolio was $54 billion in UPB, a 273% increase from $43 billion in UPB as of March 31, 2024[7] - The UPB of fair value option (FVO) loans was $31 billion, or 577% of total loans[21] Asset Quality and Resolution - Nonperforming loans (NPL) as a % of HFI loans were 108%, relatively consistent with 107% as of December 31, 2024, and 101% as of March 31, 2024[7] - 1Q25 NPA resolutions realized gains of $19 million, or 1024%, of UPB resolved[7] - NPA resolutions totaled $764 million in UPB, realizing 1024% of UPB resolved, compared to $545 million in UPB and realization of 1023% of UPB resolved for 1Q24[32] Financing and Capital - The company completed one securitization during 1Q25, totaling $3428 million of securities issued with a weighted average rate of 67%[7] - Collapsed VCC 2023-1R which released $526 million of marketable retained securities after paying off the associated debt[7] - Issued 16 million common shares, realizing net proceeds of $288 million through Velocity's ATM offering program at an accretive to book value WAP of $1835[7]

Financial Data and Key Metrics Changes - The company reported GAAP fully diluted earnings per share of $0.87, which represents a 135% increase compared to the fourth quarter and an 81% increase year-over-year [5] - Pre-provision net revenue for the first quarter was $9,400,000, or $1.22 per share, reflecting an 11% increase from the previous quarter [9] - The net interest margin for the quarter was 281 basis points, a 21 basis point increase from the linked quarter [9] Business Line Data and Key Metrics Changes - SBA originations grew during the first quarter, with gain on sale margins exceeding 10% [6] - Non-interest income increased by 56% compared to the linked quarter, driven largely by $424,000 of SBA gain on sale income [11] - The efficiency ratio for the quarter was 59.9%, an increase over the prior quarter, but expected to improve as net interest margin expands [12] Market Data and Key Metrics Changes - The company experienced elevated payoff activity of $200,000,000, which offset strong origination activity of $130,000,000 funded during the first quarter [6] - Core deposits grew by $43,000,000, including $28,000,000 in non-interest bearing deposits [7] - Brokered deposits declined by $81,000,000 relative to the fourth quarter, with a total reduction of $207,000,000 over the last twelve months [7] Company Strategy and Development Direction - The company is focused on expanding its SBA business and expects continued growth in SBA gain on sale activity throughout 2025 [6][11] - The addition of new deposit teams in the New York Metro Area is aimed at enhancing customer acquisition and deposit growth [14] - The company plans to selectively add professionals to achieve strategic goals, particularly in technology and banking [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about low single-digit loan growth for the full year despite a slower start [6][22] - The company anticipates continued margin expansion as maturing term deposits reprice to lower current rates [9][10] - Management expressed confidence in the company's ability to navigate changes in the SBA landscape while maintaining growth [37] Other Important Information - The company disposed of two nonperforming credits, which significantly reduced nonperforming assets as a percentage of total assets to 83 basis points [5] - The balance sheet remains well-capitalized and liquid, with total assets of $3,200,000,000 [13] - The company repurchased 29,924 shares at a weighted average price of $30.46 during the quarter [13] Q&A Session Summary Question: Update on new teams and their focus - The new teams are primarily focused on deposits, with both teams having books of business over $100,000,000 [19][20] Question: Loan pipeline and growth outlook - The company still expects low single-digit growth, with a robust pipeline despite some unexpected payoffs in the first quarter [22][23] Question: Core loan yield and margin expectations - The core loan yield for the quarter was approximately $6.40, with expectations for continued margin expansion [27][29] Question: SBA gain on sale and future expectations - Originations were better than expected, with the strongest quarter anticipated in Q4 [35] Question: Professional fees and expense outlook - Some professional fees are one-time investments that may shift into employee expenses, but elevated levels are not expected to continue [41] Question: Updates on remaining nonperforming assets - No material updates on the remaining loans, but management is optimistic about their status [45] Question: Share repurchase strategy - The company aims to balance share repurchases with the need to grow consolidated CET1 capital [52]