Trustmark (NasdaqGS:TRMK) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Company ParticipantsChristopher Marinac - Director of ResearchStephen Scouten - Managing DirectorTom Chambers - Chief Accounting OfficerTom Owens - EVP and CFOMichael Rose - Managing Director of Equity ResearchDuane Dewey - President and CEOBarry Harvey - Chief Credit and Operations OfficerFeddie Strickland - Director of Equity ResearchJoey Rein - Director of Corporate StrategyNone - Company RepresentativeCatherine Mealor - Managin ...

Core Insights - Meridian Corporation reported a net income of $6.7 million for Q3 2025, representing a 19% increase from the previous quarter, driven by improved margins and strong loan growth [2][5][7] - The net interest margin rose to 3.77%, up from 3.20% in Q3 2024, reflecting a favorable interest rate environment and effective asset management [2][5][14] - Total assets remained stable at $2.5 billion, with a slight increase in portfolio loans and total deposits [20][21][22] Financial Performance - Net income for Q3 2025 was $6.7 million, or $0.58 per diluted share, up $1.1 million from the prior quarter [5][31] - Pre-provision net revenue (PPNR) increased to $11.5 million, a 35% improvement from Q3 2024 [5][7] - The return on average assets and return on average equity were 1.04% and 14.42%, respectively, indicating strong profitability metrics [5][31] Loan and Deposit Growth - Commercial loans, excluding leases, increased by $54.2 million, or 3% from the prior quarter, with significant contributions from commercial and industrial segments [5][21] - Total deposits rose by $20.7 million, or 1.0%, led by an increase in interest-bearing deposits [22][24] Non-Interest Income and Expenses - Total non-interest income decreased by $1.3 million, or 11.8%, primarily due to a decline in SBA loan income and net gains on the sale of mortgage servicing rights [16][18] - Non-interest expenses increased slightly by $189 thousand, or 0.9%, with notable increases in salaries and employee benefits [19][21] Asset Quality - Non-performing loans rose to $55.4 million, with a ratio of non-performing loans to total loans increasing to 2.53% [25][26] - The provision for credit losses decreased to $2.9 million, reflecting improved asset quality management [15][27] Capital and Equity - Total stockholders' equity increased by $10 million to $188 million, supported by net income and stock issuance [24][32] - The Community Bank Leverage Ratio was reported at 9.41%, indicating a solid capital position [24][32]

LOS ANGELES, Oct. 20, 2025 (GLOBE NEWSWIRE) -- RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended September 30, 2025. Third Quarter 2025 Highlights Net income increased 8.7% to $10.1 million, or $0.59 diluted earnings per share from the quarter ended June 30, 2025Return on average assets of 0.97%, compared to 0.93% for the quarter ended Ju ...

Key Takeaways Truist will release 3Q25 results on Oct. 17, with earnings expected to rise 2.1% y/y.Loan growth and higher rates are expected to lift NII 2% sequentially.Non-interest income is projected to dip slightly, while expenses continue to climb with investments.Truist Financial (TFC) is scheduled to announce third-quarter 2025 results on Oct. 17 before the opening bell. The overall lending scenario was impressive in the quarter.Per the Fed’s latest data, the demand for commercial and industrial (C&I) ...

Core Viewpoint - M&T Bank Corporation (MTB) is expected to report year-over-year increases in quarterly revenues and earnings for Q3 2025, with results influenced by various factors including loan balances and non-interest income [1][11]. Group 1: Earnings and Revenue Expectations - The consensus estimate for MTB's Q3 earnings is $4.38 per share, reflecting a 7.4% increase from the previous year [11]. - The consensus estimate for revenues is $2.44 billion, indicating a rise of 4.4% from the year-ago reported level [11]. - Quarterly earnings have surpassed consensus estimates in three of the last four quarters, with an average earnings surprise of 6.09% [2]. Group 2: Factors Influencing Q3 Results - The lending environment remained healthy, with robust demand for commercial, industrial, real estate, and consumer loans, likely supporting lending activity and average interest-earning assets growth [3]. - The Zacks Consensus Estimate for average interest-earning assets is $192.6 billion, a 1.1% increase from the prior quarter [3]. - Net interest income (NII) is estimated at $1.77 billion, a 3.2% increase from the prior quarter [4]. Group 3: Non-Interest Income and Expenses - Total non-interest income is estimated at $657.8 million, indicating a 3.8% decline from the prior quarter [8]. - Mortgage banking revenues are expected to decline to $128.8 million, nearly a 1% decrease from the previous quarter [6]. - Non-interest expenses are projected to rise to $1.36 billion, reflecting a sequential increase of 2.2% as the company continues to invest in its franchise [8]. Group 4: Market Position and Predictions - The Earnings ESP for M&T Bank is +0.47%, indicating a high chance of beating estimates [10]. - The company currently holds a Zacks Rank of 3, suggesting a stable outlook [10].

Company Overview - California BanCorp has a market capitalization of $533 million [11] - The company possesses total assets of $40 billion and deposits of $33 billion as of June 30, 2025 [11] - The company has a 5-year asset CAGR of 207% and a 5-year deposit CAGR of 234% [11] Balance Sheet and Loan Portfolio - Total loans held for investment were $30 billion at June 30, 2025, compared to $31 billion at March 31, 2025, and $19 billion at June 30, 2024 [10] - Noninterest-bearing deposits accounted for 368% of total deposits as of June 30, 2025 [10] - As of June 30, 2025, total multifamily loans amounted to $2585 million, representing 86% of total loans [66] Financial Performance - Net income for Q2 2025 was $141 million, with diluted EPS at $043 [25] - The return on average assets for Q2 2025 was 145%, and the return on average common equity was 1050% [25] - The net interest margin for Q2 2025 was 461% [25] - The efficiency ratio for Q2 2025 was 561% [25] - Non-performing assets to total assets stood at 046% for Q2 2025 [25] - The allowance for credit losses to total loans held for investment was 146% as of June 30, 2025 [25]

Financial Data and Key Metrics Changes - The reported net income available to common shareholders was $16.8 million, with earnings per common share at $0.12. Adjusted operating earnings were $135.1 million or $0.95 per common share, resulting in an adjusted operating return on tangible common equity of 23.8% and an adjusted operating return on assets of 1.46% [18][19] - The CET1 capital ratio was 9.8%, and the loan to deposit ratio was approximately 88% at quarter end [10][24] - The tax equivalent net interest margin expanded by 38 basis points to 3.83%, driven by the incremental net accretion of purchase accounting adjustments related to the Sandy Spring acquisition [20][21] Business Line Data and Key Metrics Changes - The total loan portfolio fair value mark discount was $789.7 million, with loans held for investment totaling $8.6 billion and loans held for sale at $1.9 billion [17] - Non-interest income increased by $52.3 million to $81.5 million, primarily due to gains from the sale of commercial real estate loans and equity interest [22] - Reported non-interest expense increased by $145.5 million to $279.7 million, largely driven by merger-related costs [23] Market Data and Key Metrics Changes - Approximately 23% of total loans are in the Washington Metro Area, with the remaining 77% across other regions [14] - The unemployment rate in Maryland was reported at 3.3%, while Virginia's rate was 3.5%, indicating a robust economic environment [15] Company Strategy and Development Direction - The acquisition of Sandy Spring Bank is expected to bolster the company's position as a premier regional bank in the Lower Mid Atlantic, with plans for organic growth in North Carolina [9][30] - The company plans to open 10 new branches in North Carolina starting in 2026, focusing on markets with significant population growth [31][32] - The strategic plan will be shared during an Analyst Day in December, highlighting the next phase of growth and expansion [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of Sandy Spring and the potential for sustainable growth, despite economic uncertainties [7][12] - The company has lowered its forecast for the 2025 net charge-off ratio to between 15 and 20 basis points, reflecting a stable credit quality outlook [13] - Management noted an improvement in business sentiment and loan pipelines, indicating a positive trajectory for loan growth in the second half of the year [11][66] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year [25] - The effective tax rate for the second quarter was a negative 13.2%, reflecting an income tax benefit related to the reevaluation of state deferred tax assets [23] Q&A Session Summary Question: Loan growth outlook and plans for the Carolinas - Management indicated strong momentum in the loan pipeline and expressed optimism about growth in the Carolinas, particularly with the integration of American National Bank [38][40] Question: Expense outlook and efficiency ratio - The company is targeting a mid-40s efficiency ratio, inclusive of investments in the Carolinas, while maintaining a focus on technology investments [41][42] Question: Capital levels and deployment strategies - The CET1 ratio is expected to increase, with plans to invest in organic growth and consider share repurchases as capital accumulates [44][47] Question: Credit quality and government contractor segment - Credit quality remains stable, with the government contractor finance portfolio performing well due to increased defense spending [52][54] Question: Trends in loan yields and pricing competition - Loan yields have remained stable, with fixed-rate loans repricing in the 6.25% to 6.5% range [80][81] Question: Integration opportunities from the Sandy Spring acquisition - Management highlighted the potential for liquidity and new product offerings to enhance the former Sandy Spring franchise [85][86]

Core Insights - KeyCorp (KEY) is expected to report second-quarter 2025 results on July 22, with solid improvements in lending activities noted during the quarter [1] - The demand for commercial and industrial (C&I) loans, which make up about 50% of KeyCorp's average loan balances, was strong, alongside an increase in consumer loan demand [1] Loan Balances and Earnings Estimates - The average loan balance for KeyCorp is projected to be $105.5 billion, reflecting a 3.2% year-over-year decline [2] - The Zacks Consensus Estimate for average earning assets is $171.2 billion, indicating a slight increase from the previous year, while the estimate is $173.5 billion [2] Net Interest Income and Margin - The Federal Reserve maintained interest rates at 4.25%-4.5%, which is expected to support KeyCorp's net interest income (NII) and net interest margin (NIM) through higher yields on interest-earning assets [3] - The consensus estimate for NII on a fully tax-equivalent basis is $1.14 billion, suggesting a year-over-year increase of 26.5% [4] Non-Interest Income Factors - Despite interest rate cuts in 2024, mortgage rates remained stable, leading to decent refinancing and origination volumes, which is expected to improve income from KeyCorp's mortgage banking business [5] - The consensus estimate for commercial mortgage servicing fees is $72.1 million, indicating an 18.2% year-over-year increase, while consumer mortgage income is estimated at $14.7 million, reflecting an 8% decline [6] Trading and Investment Banking - Increased client activity and market volatility are anticipated to positively impact KeyCorp's trading business, with a resurgence in the IPO market and decent bond issuance volumes [7] - The consensus estimate for investment banking and debt placement fees is $167.4 million, indicating a 32.9% surge, while the estimate is $178.4 million [7] Total Non-Interest Income and Expenses - The consensus estimate for total non-interest income is $671.9 million, suggesting a year-over-year increase of 7.2% [9] - Total non-interest expenses are estimated at $1.16 billion, reflecting a 7.9% year-over-year rise due to operational efficiency initiatives and investments in technology [10] Asset Quality and Credit Losses - KeyCorp is expected to build reserves for credit losses, with an estimated provision of $120.2 million, indicating a 20.2% rise year-over-year [11] - The consensus estimate for non-performing assets (NPAs) is $744.9 million, suggesting a 2.5% increase, while non-performing loans (NPLs) are estimated at $738.5 million, reflecting a 4% increase [12] Earnings Predictions - The Zacks Consensus Estimate for KeyCorp's second-quarter earnings is pegged at 34 cents, indicating a 36% jump from the prior year, with sales estimated at $1.80 billion, reflecting an 18.9% rise [15]