Company Overview - Vegas PR Group is a Tokyo-based marketing agency focused on culture, the arts, music, and fashion, founded by Lauren Rose Kocher [4][10] - The agency employs a bilingual team of nine, working with both Japanese and international clients [4] Career Development - The founder transitioned from teaching English to corporate roles in Japanese companies, including a position at Sony Music's business development division [3][2] - After nearly a decade in corporate Japan, the founder stepped into senior leadership as CEO of Vegas PR Group [4] Business Culture - Japanese business culture emphasizes consensus-building through "nemawashi," which involves aligning stakeholders privately before formal decisions [5][6] - Feedback in Japanese teams tends to be indirect, leading to issues remaining unspoken until they surface collectively [6] Management Style - The founder's management style incorporates American communication and entrepreneurial instincts while respecting local expectations [7][8] - The leadership philosophy is rooted in servant leadership, focusing on the success of team members to build trust across diverse teams [10] Work Customs - The company enforces Japanese work customs, such as punctuality, where being late by even a minute is considered unacceptable [9][10] - In-person meetings require arriving at least 10 minutes early, reflecting the non-negotiable nature of punctuality in Japanese business [9] Leadership Insights - The founder advises leaders in Japan to communicate important news one-on-one before major announcements and to be aware of the cultural significance of roles and hierarchies [11][12] - It is crucial to understand that silence does not equate to satisfaction in Japanese workplaces, highlighting the need for careful communication [12]

[applause] What would the world look like if every day we asked ourselves how can it make a difference today. You see, I think this could change the world if each and every one of us adopted the mindset of a servant leader and decided to create a culture of service. Can you imagine the impact we could create.The first time I ever thought about myself creating an impact was when I was in my first year of high school. For the first time in my life, I went volunteering, but I didn't do it with the correct inte ...

Leadership Philosophy - The core leadership philosophy shifts from a commanding, fear-instilling approach to servant leadership, emphasizing humility, service, and love [3][4] - Servant leadership involves prioritizing the needs of others and leading from behind, focusing on seeing and supporting everyone [6] - The traditional leadership style is contrasted with leading from behind, where one can observe and assist all team members [5][6] Core Values - Humility is defined as thinking of oneself less, not thinking less of oneself, and involves taking responsibility for mistakes [8][9] - Service is about helping and valuing others, rather than leveraging or manipulating them for personal gain [11] - Love is considered the foundation of success, particularly in the tourism industry, and involves showcasing the country's beauty and people [13] Business Impact - Embracing leading from behind led to growth from one property to 12 across the country [14] - The company overcame challenges in employing people and experienced positive outcomes, including gratitude and blessings [14] - The speaker emphasizes the potential positive impact of leading from behind on families, teams, businesses, and the country [15]

Financial Data and Key Metrics Changes - The company reported a first quarter net income of $11 million, or $1.37 per share, representing a 13% increase from the fourth quarter and a 20% increase year-over-year [5] - Net interest margin (NIM) expanded for the fourth consecutive quarter to 0.91%, with return on assets (ROA) increasing by 17 basis points to 1.29% [5][14] - Loans grew by $29.1 million in the first quarter, approximately 4% annualized, with a guidance of 4% to 6% loan growth for 2025 [6][17] - Deposits increased at a 7% annualized rate, with non-interest bearing deposits making up 27% of total deposits [7][21] Business Line Data and Key Metrics Changes - Non-interest income for the first quarter was $4 million, an increase of $400,000 compared to the prior quarter, driven by a 100% increase in SBA loan sales [24] - Non-interest expense decreased by $776,000 to $21.6 million, primarily due to a decline in compensation and benefits [25] Market Data and Key Metrics Changes - The company has seen a stable loan yield of 6.43%, with a slight increase in earning asset yields expected due to new loan originations [40][23] - The cost of interest-bearing deposits declined by 15 basis points in Q1, with a significant reduction in the cost of CDs [20] Company Strategy and Development Direction - The company continues to optimize its Houston market, with plans to upgrade and expand its physical footprint [8] - A new 400,000 share repurchase plan was approved by the board, indicating confidence in the company's intrinsic value [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform despite recent economic volatility, maintaining a strong track record [12] - The outlook for NIM and earnings is positive, with expectations for continued expansion even without rate cuts [13] Other Important Information - The allowance for loan loss ratio remained stable at 1.21%, with net charge-offs at less than one basis point annualized [18][20] - The company has a strong capital position, with tangible book value per share growing at a 7% annualized rate since 2019 [28] Q&A Session Summary Question: What are the expectations for margin improvement after Q1? - Management indicated that they expect a slowdown in profit costs in Q2, with a stable NIM anticipated despite potential rate cuts [36][38] Question: Can you discuss the loan relationships that moved to non-accrual? - Management highlighted two problematic loans, one in Mississippi related to condominium development and another a hotel undergoing renovations in Houston [44][47] Question: What is the status of the office portfolio and any recent maturities? - The office portfolio has performed well, with most matured loans renewing without significant movement [52] Question: Will CD pricing change this quarter? - Management expects CD rates to remain slightly elevated but anticipates a marginal reduction in costs over the next quarter [56] Question: Will the loan-to-deposit ratio change over time? - Management believes the loan-to-deposit ratio will remain tight until there is a noticeable decrease in loan demand [59] Question: How aggressive will the company be with share repurchases? - Management indicated that while they may not be as aggressive as in Q1, they will continue to repurchase shares when opportunities arise [70]