Pathward Financial, Inc. (NASDAQ:CASH) Q2 2025 Results Conference Call April 22, 2025 5:00 PM ET Company Participants Darby Schoenfeld - Senior Vice President, Investor Relations Brett Pharr - Chief Executive Officer Greg Sigrist - Executive Vice President and Chief Financial Officer Conference Call Participants Frank Schiraldi - Piper Sandler Joe Yanchunis - Raymond James Tim Switzer - KBW Operator Ladies and gentlemen, thank you for standing by and welcome to Pathward Financials’ Second Quarter 2025 Earni ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $263 million, up 3% year-over-year [36] - Cloud revenue increased 21% to $94 million, while services revenue declined 8% to $121 million [37] - RPO ended the quarter at approximately $1.9 billion, up 25% year-over-year and 6% sequentially [38] - Adjusted operating profit was $91 million with an adjusted operating margin of 34.7%, up over 340 basis points year-over-year [40] - Adjusted earnings per share (EPS) for Q1 was $1.19, up 16%, while GAAP EPS was 85 cents, down 1% [41] Business Line Data and Key Metrics Changes - The company experienced a 25% year-over-year increase in RPOs, driven by strong demand for mission-critical solutions [22] - Approximately 50% of new cloud bookings in Q1 were generated from net new logos, indicating strong demand for products [71] - Services team completed over 100 go-lives for customers in Q1, showcasing operational effectiveness [25] Market Data and Key Metrics Changes - The addressable market is forecasted to grow at a double-digit CAGR for the next several years, indicating robust market potential [15] - Competitive win rates remained consistent at about 70%, reflecting strong market positioning [24] - The company has established healthy footprints across diverse sectors including retail, grocery, life sciences, and technology [23] Company Strategy and Development Direction - The company is focused on organic innovation and capital allocation strategy to expand its addressable market [14] - Investment in sales and marketing is prioritized to drive growth and capitalize on new product offerings [64] - The launch of new products like Enterprise Promise and Fulfill aims to optimize B2B order fulfillment, addressing evolving customer needs [26] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding near-term services revenue growth due to macroeconomic uncertainties [21] - The company remains optimistic about its position in the market and long-term growth opportunities despite current challenges [20] - Management reiterated full-year guidance for RPO and total revenue, reflecting confidence in business fundamentals [45] Other Important Information - The company was named Google’s Cloud Business Applications Partner of the Year for supply chain and logistics, highlighting its innovation in the Google Cloud ecosystem [18] - The company ended the quarter with $206 million in cash and zero debt, indicating a strong balance sheet [42] Q&A Session Summary Question: Insights on cloud bookings and RPO dynamics - Management indicated strong pipeline in Q2 and confidence in guidance despite macro uncertainties [59][60] Question: Growth investments and monetization of products - Management plans to invest in sales specialists to drive growth and maintain high win rates [64] Question: Linear progression of bookings and sales activity - Management noted a balanced product portfolio and strong demand across verticals, with high expectations for Q2 [68][71] Question: Resilience of cloud bookings drivers - Management stated that no particular segment is more resilient, but all channels remain important for growth [78][80] Question: Visibility on multi-year ramps and growth trajectory - Management confirmed strong visibility into contract durations and ramp processes, supporting confidence in growth [95][97] Question: FX impact on guidance - Management indicated that FX swings represent less than 1% impact on revenue guidance [104][105] Question: Strength of large deals in the pipeline - Management reported favorable conditions in the pipeline, with confidence in closure rates compared to last year [111][112]

Financial Data and Key Metrics Changes - Gap net income increased to $130.9 million, or $0.70 per share, while adjusted net income from continuing operations rose to $131.4 million, or $0.71 per share [9] - Return on Assets (ROA) improved to 1.15% [9] - Net interest margin increased by 8 basis points to 3.46% [16] - Adjusted efficiency ratio improved to 57.6%, down 150 basis points from the previous quarter [21] Business Line Data and Key Metrics Changes - First quarter loan growth was nearly 4% on an annualized basis, with strong performance in mortgage, private banking, and community bank groups [10][14] - Average loans increased by over $482 million, while period-end loans grew by $310 million, or 3.7% annualized [14] - Average deposits increased by $610 million, but period-end deposits were flat [15] Market Data and Key Metrics Changes - Strong loan pipelines remain solid across most regional markets, particularly in Texas, Georgia, and Florida [10][34] - Merchant commercial real estate activity is robust, with competition driving yields down somewhat [11] Company Strategy and Development Direction - The company plans to close the acquisition of First Chatham Bank on May 1, aiming to expand its presence in Georgia [8][24] - The focus remains on organic growth, with M&A opportunities considered when appropriate [53][124] Management's Comments on Operating Environment and Future Outlook - Management noted stability in credit results, with net charge-offs at 27 basis points annualized [12] - There is awareness of potential borrower issues, but no significant impact has been observed yet [12][106] - The macroeconomic environment is being closely monitored, with management expressing confidence in the company's ability to navigate challenges [33][110] Other Important Information - The company’s tangible book value increased to $22.30 per share, with strong regulatory capital levels [12] - The company anticipates stable net interest margins despite competitive pressures on loan yields [50] Q&A Session Summary Question: Loan pipelines and client feedback post-April 2nd announcements - Management indicated that there has been little impact on loan pipelines and expressed confidence in continued loan growth [29][33] Question: Deposit side and high-cost deposits - Management noted about $3.5 billion in time deposits maturing in the second quarter, with expectations of benefits from lower renewal rates [36][38] Question: Loan yields and margin outlook - Management acknowledged yield compression due to competition but expects stable net interest margins moving forward [47][50] Question: Capital priorities and M&A outlook - Management emphasized organic growth as the primary goal, with M&A opportunities considered based on cultural fit [53][124] Question: Revenue and balance sheet growth - Management discussed the addition of federal home loan bank borrowings to support balance sheet growth and income [58][60] Question: Concerns about credit quality and customer segments - Management reported stable credit quality, with no specific segments of concern identified at this time [106][110]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $21.1 million, or 17 cents per diluted common share, compared to 20 cents per diluted common share in Q4 2024 [8][9] - Net interest income after provision expense was $96 million, up 4% from $92 million in Q4 2024 [10] - Non-interest expense, excluding notable items, was $81.3 million, reflecting typical first-quarter increases in salary and employee benefits [10][25] Business Line Data and Key Metrics Changes - Total deposits as of March 31, 2025, were $14.5 billion, an increase of 1% from the previous quarter [13] - Loans receivable decreased to $13.3 billion, down 2% from year-end 2024, with residential mortgage loans increasing by 7% and commercial loans decreasing by 5% [14] - Loan production increased by 11% year-over-year, despite elevated paydowns and refinancing activities [15][16] Market Data and Key Metrics Changes - The company noted strong capital ratios, which expanded quarter-over-quarter and year-over-year, providing a cushion against macroeconomic volatility [11] - The weighted average cost of deposits from the Territorial merger was 1.96%, contributing to stable low-cost deposits [11] Company Strategy and Development Direction - The company aims to strengthen its deposit base and position its balance sheet for prudent growth, focusing on organic loan growth and the integration of Territorial Bank [12][32] - The management highlighted the positive outlook from Korean subsidiary sector customers, anticipating improved loan demand and opportunities for deposit relationships [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding macroeconomic volatility and the potential for a recession but noted positive trends in direct investments from Korean companies [17] - The company expects annual loan growth in 2025 to be at a high single-digit percentage rate, with net interest income growth also anticipated in the high single-digit range [32][33] Other Important Information - The company declared a quarterly common stock dividend of 14 cents per share, payable on May 16, 2025 [12] - The merger with Territorial Bank is expected to incur one-time pre-tax acquisition-related expenses of approximately $18 million in Q2 2025 [31] Q&A Session Summary Question: Impact of fewer rate cuts on NII growth outlook - Management indicated that fewer rate cuts would have a modest downward impact on NII, as the benefits of cutting deposit costs would offset the compression on variable rate loans [38][39] Question: Details on loan verticals for organic growth - Management highlighted positive momentum in pipelines for specialized commercial lending verticals, including healthcare and project finance, supported by recent team expansions [44] Question: Specific segments for loan growth in the second half - Management reiterated confidence in loan growth from Korean subsidiary sectors and specialized teams, with ongoing monitoring of asset quality amid economic uncertainties [52][48]

Metropolitan Bank Holding Corp. (NYSE:MCB) Q1 2025 Earnings Conference Call April 22, 2025 9:00 AM ET Company Participants Mark DeFazio - President and Chief Executive Officer Daniel Dougherty - Executive Vice President and Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Ynyra Bohan - Hovde Group Chris O'Connell - KBW Operator Welcome to the Metropolitan Commercial Bank's First Quarter 2025 Earnings Call. Hosting the call today from Metropolitan Commercial Bank are Mark ...

Financial Data and Key Metrics Changes - The company reported sales of $1 billion, down 1% year-over-year, with adjusted operating income increasing 12% to $243 million and adjusted EPS rising 18% to $1.11 [22][11][12] - Return on sales (ROS) expanded by 260 basis points to 24% [11][22] - The company maintained its full-year 2025 sales and adjusted EPS guidance of $4.65 to $4.80, representing a year-over-year increase of approximately 9% at the midpoint [11][33] Business Line Data and Key Metrics Changes - Pool sales increased by 7% to $384 million, driven by price, volume, and a recent acquisition, with segment income up 14% [28][22] - Flow sales declined by 4%, with residential sales down 6% and commercial sales up 3%, marking the 11th consecutive quarter of year-over-year growth [24][22] - Water solutions sales decreased by 5% to $258 million, with segment income growing 9% to $61 million [26][22] Market Data and Key Metrics Changes - The company noted challenges in the residential and irrigation markets, impacting overall sales performance [10] - The commercial water segment faced difficult comparisons, contributing to the decline in sales [10] Company Strategy and Development Direction - The company is focused on transformation initiatives to drive margin expansion, with $174 million saved in 2023 and 2024 combined, and an expectation of an additional $80 million in savings for 2025 [15][19] - The implementation of the 80-20 strategy aims to optimize operations and enhance profitability by focusing on high-value core customers [17][20] - The company is adapting its supply chain to mitigate tariff impacts and reduce reliance on China, with a strong emphasis on maintaining a balanced capital allocation strategy [14][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining guidance despite a dynamic operating environment, citing agility in responding to tariff impacts and inflationary pressures [12][19] - The company anticipates potential volume declines due to rising prices but remains optimistic about long-term growth opportunities in the water solutions market [10][20] Other Important Information - The company repurchased $50 million in shares and increased its dividend for the 49th consecutive year, reinforcing its status as a dividend aristocrat [11][22] - The estimated tariff impact for 2025 is approximately $140 million, primarily from China, with mitigation strategies already in place [36][39] Q&A Session Summary Question: Can you provide insights on organic sales assumptions for the year? - Management indicated that higher prices are expected to offset lower volumes, particularly in the North American residential housing market [46][48] Question: What is the estimated tariff impact for 2025? - The estimated tariff impact of $140 million is an in-year figure, with expectations that it will primarily affect the second half of the year [49][50] Question: How is the channel reacting to pricing strategies? - Management noted that the channel is currently adapting to price increases, which are being paced to allow for adjustments based on market conditions [76][90] Question: What are the expectations regarding demand destruction from tariffs? - Management has not yet observed significant demand destruction but is monitoring the situation closely [71][72] Question: How is the company managing inventory in light of tariffs? - The company is pre-positioning inventory and capping orders to avoid disruptions in the supply chain, learning from past experiences [68][70] Question: What is the long-term strategy for sourcing and manufacturing? - The company is actively working to diversify its supply chain and reduce dependence on China, with plans to reposition factories for greater efficiency [96][104]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated sales of $457 million and adjusted diluted EPS of $0.37, with commercial aerospace sales of $280.1 million, down 6.3% year-over-year on a constant currency basis [13][31][32] - Gross margin decreased to 22.4% from 25% in the same period last year, impacted by lower operating leverage and a power outage at the Decatur facility [18][35] - Adjusted operating income was $45.3 million or 9.9% of sales, compared to $54.1 million or 11.5% in the prior year [36] Business Line Data and Key Metrics Changes - The Composite Materials segment represented 80% of total sales, with an adjusted operating margin of 14.2%, down from 16% in the prior year [37] - The Engineered Products segment, accounting for 20% of total sales, had an adjusted operating margin of 6.8%, down from 14.3% in the prior year due to vendor quality issues [37][38] - Sales in the defense, space, and other market totaled $176.4 million, up 2.7% year-over-year, driven by growth in various defense programs [15][33] Market Data and Key Metrics Changes - Commercial aerospace sales represented approximately 61% of total sales, with a decline primarily due to lower sales of Boeing 787 and 737 MAX [31][32] - Sales for other commercial aerospace increased by 7.1% year-over-year, led by international demand [14][33] - The company expects 2025 commercial aerospace sales to be flat compared to 2024, with defense space and other sales also expected to remain unchanged [46] Company Strategy and Development Direction - The company is focused on operational excellence, innovation, and growth, particularly in defense and space markets [49][50] - Plans to streamline operations and improve margins through investments in research and technology [50] - The company is well-positioned to benefit from increased production rates across commercial and military programs as the industry recovers from the pandemic [51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain disruptions affecting production rates, particularly in commercial aerospace [13][25] - The company is managing costs and cash flow carefully, with a focus on maintaining operational efficiency [20][36] - Despite near-term challenges, management remains optimistic about future cash flows and growth opportunities, particularly in the A350 program [26][110] Other Important Information - The company repurchased $50 million of common stock in Q1 2025 and has additional authorization for $185 million [11][41] - The Board declared a quarterly dividend of $0.17, payable on May 9, 2025 [42] - The company is divesting its wind and recreation-focused facility in Austria, with expectations to complete this by Q2 2025 [12][24] Q&A Session Summary Question: What is the overall tariff impact and profitability outlook? - Management indicated a direct tariff impact of $3 to $4 million per quarter, which can be offset by productivity improvements [54][56] Question: Are there pricing levers to offset tariff impacts? - Most contracts are structured to pass through costs, including tariffs, to buyers, providing a natural hedge [62][64] Question: What is the confidence level regarding inventory at Airbus? - Management acknowledged some inventory exists and has built plans considering potential destocking [106] Question: How is the company managing headcount in response to production changes? - The company is aligning headcount with current production levels and allowing attrition to manage costs effectively [82][85] Question: What is the outlook for the A350 production rates? - The company expects a reduction in A350 production rates, impacting revenue guidance, but remains optimistic about future cash flow generation [25][74][110]

BOK Financial Corporation (NASDAQ:BOKF) Q1 2025 Earnings Conference Call April 22, 2025 1:00 PM ET Company Participants Heather King - Director of Investor Relations Stacy Kymes - President & Chief Executive Officer Scott Grauer - Executive Vice President, Wealth Management Martin Grunst - Executive Vice President & Chief Financial Officer Conference Call Participants Jared Shaw - Barclays Jon Arfstrom - RBC Capital Markets Peter Winter - D.A. Davidson Michael Rose - Raymond James Woody Lay - KBW Matt Olney ...

Financial Data and Key Metrics Changes - The company reported a 3.8% growth in NOI and a 6.7% increase in normalized FFO per share for Q1 2025 [7][27] - The average term to maturity of the company's debt is over eight years, with only 9% of debt maturing before 2027 compared to the REIT average of 30% [8] - The normalized FFO for Q1 was 83 cents per share, aligning with guidance [27] Business Line Data and Key Metrics Changes - The MH portfolio accounts for approximately 60% of total revenue, with properties maintaining a 94% occupancy rate [9] - Core community-based rental income increased by 5.5% compared to Q1 2024, while annual rent from RV sites grew by 4.1% [27][23] - Transient rent decreased by 9.1% compared to Q1 2024 [28] Market Data and Key Metrics Changes - The company experienced a loss of approximately 170 occupied sites due to hurricanes, impacting occupancy levels [21][22] - The average single-family home prices in key markets like Florida and California significantly exceed the prices of homes in the company's MH communities, providing a competitive advantage [19][20] Company Strategy and Development Direction - The company aims to maintain strong core operations and FFO growth, with a full-year FFO guidance of $3.06 per share [7][34] - The focus remains on enhancing customer engagement through digital marketing and social media, with a significant increase in online leads [13][14] - The company is preparing for the summer season and anticipates strong demand for its properties [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the business despite external challenges, citing strong demand and limited new supply in the MH and RV markets [17][18] - The company expects a modest increase in occupancy for the remainder of the year, maintaining a consistent demand profile [64] Other Important Information - The company has access to approximately $1 billion in capital from credit lines and ATM programs, ensuring financial flexibility [40] - The insurance premium decreased by approximately 6% year-over-year, with no changes in deductibles or coverage [31][84] Q&A Session Summary Question: Impact of hurricane on MH top line guidance - Management acknowledged that the hurricane impact was significant, resulting in a loss of 176 sites, but noted that demand remains strong with a mark-to-market running at about 14% year-to-date [46][47] Question: Trends in MH occupancy - Management indicated that occupancy was flat to slightly up when excluding hurricane impacts, with a consistent average length of stay of around 10 years [50][56] Question: Canadian customer exposure - Approximately 10% of RV revenue comes from Canadian customers, with no significant changes in behavior impacting guidance [59] Question: Seasonal and transient RV revenue expectations - Management noted that the forecast for seasonal and transient RV revenues is based on reservation pacing, with some properties experiencing headwinds [72][75] Question: Home sales trends - Home sales were down in Q1 due to hurricane impacts, but management remains optimistic about demand moving forward [78] Question: Insurance renewal discussions - The company successfully negotiated a 6% decrease in insurance premiums despite recent storm incidents, maintaining coverage and deductibles [84][86] Question: Annual RV revenue growth - Management explained that the first quarter's performance was impacted by a leap year comparison, and they expect growth to reaccelerate [121][122]

Financial Data and Key Metrics Changes - First quarter sales were $9.5 billion, down 7% compared to the prior year, impacted by fewer working days and contracting delays [27][28] - The company recognized an additional $477 million pre-tax loss related to the B21 program, affecting the overall segment operating margin rate, which dropped to 6% [9][32] - Earnings per share were lower primarily due to the B21 adjustment, totaling $2.74 per share on an after-tax basis [36] Business Line Data and Key Metrics Changes - Aeronautics sales decreased by 8% year-over-year due to lower B-21 sales and production timing on mature programs like F-35 [29] - Defense Systems (DS) first quarter sales increased by $68 million, or 4%, driven by the Sentinel program and military ammunition [30] - Mission Systems sales grew by $148 million, or 6%, due to various programs including SABR and international ground-based radar [30] - Space sales were lower primarily due to the wind down of two programs, totaling approximately $230 million in year-over-year headwinds [31] Market Data and Key Metrics Changes - International sales represented approximately 14% of total sales, with international sales up 11% in the quarter [20] - The first quarter international book-to-bill ratio was 1.45 times, indicating strong demand for international bookings [20] - Poland signed a $745 million letter of acceptance for 200 ARGM-ER missiles, contributing to growth potential [21] Company Strategy and Development Direction - The company aims to compete in global markets through technology differentiation and has invested $13.5 billion in R&D and infrastructure over the last five years [22] - The strategy includes leveraging hardware and software capabilities to develop next-generation systems and partnering with leading companies in AI [24] - The company is focused on driving innovation, expanding market presence, and optimizing performance for sustainable growth [25] Management's Comments on Operating Environment and Future Outlook - The management noted strong demand signals from global customers, resulting in a record backlog of $92.8 billion [7] - The U.S. defense budget environment is evolving, with expectations of increased defense spending due to a finalized continuing resolution [16][17] - The administration's fiscal year 2026 budget request is expected to maintain strong commitment to national security funding [18] Other Important Information - The company expects mid-single-digit organic growth in 2025 sales, reaffirming guidance of $42 billion to $42.5 billion [39] - The divestiture of the training service business is on track to close mid-year [41] - The company anticipates a gradual ramp in overall segment margin rates driven by strong program performance and cost-saving initiatives [44] Q&A Session Summary Question: What milestones should be watched for the B21 program? - Management discussed the completion of the EMD phase and ongoing tests to prove aircraft performance, with low-rate initial production underway [48][49] Question: What gives confidence that the situation with U.S. customers will improve? - Management noted that award decisions are starting to move forward, expecting improvements in the second quarter and throughout the year [61][64] Question: What is the anticipated cash impact from the B21 EAC adjustment? - The cash impact will be spread primarily through 2026, 2027, and 2028, with no material impact expected for 2025 [66] Question: How confident should investors feel about the profitability of the Sentinel program? - Management expressed confidence in the design and restructuring of the program, which is cost-plus, and noted that they are working with the Air Force to reduce costs [76] Question: How does the company view the impact of tariffs on its portfolio? - Management indicated that tariffs impact a small part of the supply chain and most costs are covered under contracts with the U.S. government, posing no significant risk [82][83] Question: What is the outlook for international sales growth? - Management expects continued growth in international sales, driven by a significant pipeline of demand and various programs [141][144]