Financial Data and Key Metrics Changes - The diluted GAAP earnings per share increased to $4.24 from $3.32 in the prior quarter, while net income was $116 million compared to $584 million in the linked quarter [10] - The return on assets (ROA) and return on common equity (ROCE) were reported at 1.37% and 10.39% respectively [10] - The common equity tier 1 (CET1) ratio decreased to an estimated 10.98% from 11.5% at the end of the first quarter [22] Business Line Data and Key Metrics Changes - Average residential mortgage and consumer loans grew by $1.5 billion, reflecting a 3% sequential increase, while commercial loans remained unchanged at $61 billion [15][14] - Noninterest income rose to $683 million from $611 million in the linked quarter, with notable increases in mortgage banking and trust income [18] - Noninterest expenses decreased by $79 million to $1.34 billion, resulting in an efficiency ratio of 55.2%, down from 60.5% in the prior quarter [20] Market Data and Key Metrics Changes - Average total deposits increased by $2.2 billion or 1% to $163.4 billion, with growth across most segments [17] - The yield on investment securities decreased by 19 basis points to 3.81%, primarily due to premium amortization [16] - The net interest margin was reported at 3.62%, a decrease of four basis points from the prior quarter [13] Company Strategy and Development Direction - The company remains focused on growing its New England and Long Island markets, optimizing resources, and enhancing risk management capabilities [29] - The management emphasized a disciplined approach to acquisitions, indicating a preference for smaller, culturally aligned targets [79] - The company aims to maintain a strong capital position while being opportunistic with share repurchases [28] Management's Comments on Operating Environment and Future Outlook - The management acknowledged potential economic slowing and risks related to tariffs and geopolitical conditions, but expressed optimism about the company's positioning [24][25] - The outlook for net interest income is projected to be between $7 billion and $7.15 billion, with a net interest margin expected to average in the mid to high 360s [26] - The management expects net charge-offs for the full year to be less than 40 basis points, with criticized loans anticipated to continue declining [28] Other Important Information - The company executed $1.1 billion in share repurchases during the second quarter, while tangible book value per share grew by 1% [8] - The company reported a $1 billion or 11% reduction in commercial criticized balances, indicating improved asset quality [9] Q&A Session Summary Question: Loan dynamics and CRE portfolio - The management indicated that the CRE pipeline is building, with over $5 billion currently in the pipeline, and expressed optimism for growth towards the end of the year [32][34] Question: Capital management and buyback strategy - The management stated that the current capital range of 10.75% to 11% is appropriate given market uncertainties, and they are actively managing criticized loans [36] Question: Fee income growth and trust business - The management highlighted strong growth in the trust business, driven by new operations in Europe and increased treasury management revenues [40][41] Question: Consumer loan growth outlook - The management noted that recent consumer loan growth was driven by preemptive buying ahead of price increases, but expressed optimism for continued growth in RV and auto loans [70] Question: Deposit competition and funding costs - The management emphasized the importance of core deposits and competitive rates to attract new customers, while managing funding costs effectively [108][109]

Financial Data and Key Metrics Changes - The company reported a total orders growth of 10% with a book to bill ratio of 1.1 times in Q1 2025, while organic orders increased by 3.3% [5][10] - Adjusted EBITDA for the quarter was $460 million, with an adjusted EBITDA margin of 26.8%, and adjusted earnings per share was $0.72 [11][12] - Free cash flow reached a record $223 million for Q1, with total liquidity at $4.2 billion and net leverage at 1.6 times [11][13] Business Line Data and Key Metrics Changes - In the IPS segment, Q1 orders increased by 6% year over year, with organic orders growing by 3.5%, although revenue decreased by 2% [15] - The PST segment saw Q1 orders up 28% year over year, with revenue increasing by 23% driven by M&A, while organic revenue decreased by 3% [17][18] Market Data and Key Metrics Changes - The company noted strong momentum in the Asia Pacific region, particularly in China, with organic orders growth across all regions [15][56] - The company anticipates a tariff impact of approximately $150 million, primarily related to imports from China [19][110] Company Strategy and Development Direction - The company maintains a capital allocation strategy focused on M&A, with an additional $1 billion authorized for share repurchases, bringing the total to $2 billion [7] - The company is committed to achieving 400 to 500 basis points of annualized inorganic revenue growth in 2025, with six transactions already closed this year [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious but optimistic view, maintaining total revenue guidance despite strong organic order growth, citing a prudent approach to mitigate risks [20][30] - The company remains focused on leveraging its robust balance sheet to strategically deploy capital and drive shareholder value [24] Other Important Information - The company has implemented pricing actions to offset tariff impacts, with a multi-step approach including list price actions and targeted surcharges [19][50] - Management highlighted the importance of their in-region for region model, which provides a competitive advantage in the current environment [6] Q&A Session Summary Question: Clarification on guidance adjustments - Management confirmed that the adjustments to guidance were precautionary, reflecting a prudent approach to organic volume assumptions [30] Question: Differences in short cycle vs long cycle businesses - Management noted a good balance in order activity across both short and long cycle businesses, with no cancellations observed [32] Question: Outlook for organic growth and revenue seasonality - Management expects organic growth trends to improve in the second half of the year, with a forecast of down approximately 3% to 4% in the first half [40] Question: Impact of tariffs on margins - Management indicated that tariff pricing actions are expected to offset costs, with a neutral impact on margins [44] Question: Demand trends across different product price points - Management reported no significant differences in demand trends across various product price points, emphasizing the importance of ROI for customers [108] Question: Acquisition outlook in the current environment - Management remains optimistic about the M&A pipeline, focusing on bolt-on acquisitions and maintaining a disciplined approach to pricing [60]