Moody’s (NYSE:MCO) Q3 2025 Earnings Call October 22, 2025 09:00 AM ET Company ParticipantsAndrew Steinerman - Business and Information Services equity research analystRob Fauber - President and Chief Executive OfficerScott Wurtzel - Senior Vice President, Equity ResearchShivani Kak - Head of Investor RelationsNoémie Heuland - CFOConference Call ParticipantsAlex Kramm - Managing Directorand Senior Equity Research AnalystPeter Christiansen - AnalystJeff Silber - Managing Director and Senior AnalystRussell Que ...

Northern Trust (NasdaqGS:NTRS) Q3 2025 Earnings Call October 22, 2025 09:00 AM ET Company ParticipantsJennifer Childe - Director of Investor RelationsMike Mayo - MD and Head of U.S. Large-Cap Bank ResearchMichael O'Grady - Chairman and CEODavid Fox - CFOConference Call ParticipantsBrennan Hawkin - Stock AnalystBetsy Graseck - Finance Research AnalystGlenn Schorr - MD and Senior Research AnalystSteven Alexopoulos - Bank AnalystEbrahim Poonawala - MD and Research AnalystDavid Smith - AnalystGerard Cassidy - R ...

United Community Banks (NYSE:UCB) Q3 2025 Earnings Call October 22, 2025 09:00 AM ET Company ParticipantsRussell Gunther - Managing Director of Equity ResearchLynn Harton - Chairman and CEORobert Edwards - CROJefferson Harralson - EVP and CFOCatherine Mealor - Managing Director of Equity ResearchRichard Bradshaw - President and Chief Banking OfficerMichael Rose - Managing Director of Equity ResearchConference Call ParticipantsKyle Gierman - Equity Research AnalystGary Tenner - Senior Equity Research Analyst ...

Financial Data and Key Metrics Changes - Full-year revenues for fiscal 2025 reached $2.432 billion, a 2.1% increase compared to fiscal 2024 after adjusting for an additional week of operations in the previous year [5][21] - Consolidated revenues in Q4 2025 were $614.4 million, down from $639.9 million in the prior year, with a revenue growth of approximately 3.4% when excluding the extra week in fiscal 2024 [21][22] - Consolidated operating income for Q4 2025 was $49.6 million, compared to $54 million in the prior year, while net income decreased to $41 million or $2.23 per diluted share from $44.6 million or $2.39 per diluted share [21][22] - Consolidated adjusted EBITDA for Q4 2025 was $88.1 million, down from $95 million in the prior year [21][22] Business Line Data and Key Metrics Changes - Uniform & Facility Service Solutions revenues for Q4 2025 were $560.1 million, a decrease of 4.4% from Q4 2024, with organic growth of approximately 2.9% [23][24] - First Aid & Safety Solutions segment revenues in Q4 2025 increased to $31.1 million, with organic growth of 12.4% driven by the segment's van business [25] - Revenues from the Other segment, which includes nuclear services, were $23.3 million, a decrease of 5.3% from Q4 2024 due to lower activity in North American nuclear operations [26] Market Data and Key Metrics Changes - The company noted improvements in customer retention and key performance metrics, despite a softer employment environment impacting parts of its customer base [7][8] - The First Aid & Safety Solutions segment is expected to achieve double-digit growth in fiscal 2026, reflecting strong market potential [17] Company Strategy and Development Direction - The company is focused on driving organic growth to mid-single digits and improving EBITDA margins into the high teens [16] - Investments in technology and organizational initiatives are aimed at enhancing customer experience and operational excellence [3][10] - The introduction of the UniFirst Way aims to unify operational approaches and improve service delivery [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to drive meaningful improvements in overall profitability despite anticipated challenges in fiscal 2026 [14][19] - The impact of tariffs is expected to influence short to medium-term profitability, with ongoing efforts to mitigate cost increases [12][13] - Management acknowledged that fiscal 2026 may reflect a temporary step back in profitability due to investments in growth initiatives [16][28] Other Important Information - The company has a robust balance sheet with no long-term debt and cash equivalents totaling $209.2 million [26] - Capital expenditures for fiscal 2025 totaled $154.3 million, with ongoing investments in infrastructure and automation initiatives [26][18] Q&A Session Summary Question: Can you confirm the drivers for the guided 2.6% organic growth for Uniform & Facility Services? - Management indicated that improvements in sales and retention are expected, but challenges from the employment environment may impact growth [33][35] Question: What are the factors impacting margins for 2026? - Management highlighted tariffs, sales and service investments, and digital transformation costs as key factors affecting margins [37][38] Question: Will benefits from sales and service investments be seen in 2026? - Management stated that while some benefits may emerge, significant improvements from ERP-related investments are expected in 2027 and beyond [44][45] Question: What is the outlook for pricing in 2026? - Management noted that pricing remains challenging due to inflation and tariffs, but they expect to work through these dynamics with customers [53][55] Question: Can you provide insights on the nuclear services business for fiscal 2026? - Management expects a wind-down of a large project in the first quarter, with normal seasonality affecting performance throughout the year [75][76]

Financial Data and Key Metrics Changes - Revenue increased by over $16 million compared to the second quarter, driven by an 8 basis point improvement in margin and 5.4% annualized loan growth [4] - Provision for credit losses declined by approximately $4 million compared to the last quarter, supported by strong credit results and a release of $2.6 million from the Hurricane Helene Special Reserve [4] - Earnings per share on an operating basis reached $0.75, a 32% year-over-year improvement, with a return on assets of 1.33% and a return on tangible common equity of 13.6% [4] Business Line Data and Key Metrics Changes - All estates delivered positive loan growth, with significant contributions from C&I, Equipment Finance, and HELAC categories [5][8] - Deposits grew by $137 million, or 2.6% annualized, excluding seasonal public outflows, with DDA comprising a good portion of the growth [7] - Spread income grew by 14% annualized in the quarter, with net interest margin increasing by 8 basis points to 3.58% [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 80%, while the CET1 ratio remained flat at 13.4% [8][9] - The cost of deposits was pushed down to 1.97%, achieving a total deposit beta of 37% so far [7] - Non-interest income was $43.2 million, up $8.5 million from the previous quarter, with strong increases across most fee categories [10] Company Strategy and Development Direction - The company aims to be cautious and selective in lending to non-depository financial institutions, maintaining limited exposure [6] - Capital priorities include organic growth, dividend increases, and potential M&A opportunities, with buybacks being considered opportunistically [28] - The company is focusing on improving employee engagement and culture, ranking in the 92nd percentile for employee engagement compared to over 2,000 companies [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the remainder of the year, supported by strong loan growth and credit quality metrics [13] - The company anticipates continued operating leverage and profitability improvement in 2026, driven by margin expansion [55] - Management noted an increase in interest from sellers in the M&A space compared to previous quarters, indicating a more favorable environment for potential acquisitions [36] Other Important Information - The company redeemed $88 million of preferred stock, which lowered Tier 1 total capital and leverage ratio towards peer levels [9] - The allowance for credit losses moved down slightly to 1.19%, with a loan loss provision of $7.9 million for the quarter [12] Q&A Session Summary Question: Loan growth trends and pipelines - Management indicated strong loan growth, particularly in Florida, South Carolina, and North Carolina, with expectations for similar performance in Q4 [19][21] Question: Deposit beta guidance - Management expressed confidence in achieving a total deposit beta in the 40% range due to successful rate cuts and CD growth [22][23] Question: Capital deployment priorities - Capital priorities include organic growth, dividend increases, M&A opportunities, and buybacks being considered opportunistically [28] Question: Fee income and service charge income - Management noted that the increase in service charge income was due to better volume, with no unusual changes in fee structure [29] Question: Expenses and hiring efforts - Management expects a flat expense run rate for Q4, with a medium to long-term growth rate of 3% to 4% [33] Question: Credit quality and Navitas book - Management reported stable performance in the Navitas book, with expectations of losses normalizing around 1% in a typical environment [53] Question: Future profitability and operating leverage - Management anticipates continued operating leverage and profitability improvement in 2026, driven by margin expansion [55]

Financial Data and Key Metrics Changes - The company achieved a net income of $21.9 million, translating to a diluted EPS of $1.13, with a return on average assets of 1.6% and return on average equity of 15.7% [9][12] - The net interest margin (NIM) increased to 4.11% from 4.07% in the previous quarter, indicating effective loan pricing and funding cost management [3][9] - Non-interest expenses decreased by $1.3 million compared to the prior quarter, leading to an efficiency ratio improvement from 60.3% to 56.4% [4][11] Business Line Data and Key Metrics Changes - Loan growth was strong, with an annualized growth rate of 4.9% in the third quarter, reflecting successful alignment of the acquired portfolio with the company's risk profile [3][7] - Fee income as a percentage of operating revenue remained stable at 20.8%, with non-interest income increasing to $13.4 million from $12.9 million in the previous quarter [4][10] - The loan portfolio reached nearly $4 billion with an average yield of 6.58%, and loan production during the quarter was $224 million [14][15] Market Data and Key Metrics Changes - The company experienced increased competition in both loan and deposit pricing, particularly in growth markets such as Baltimore, Lancaster, and Harrisburg [21][22] - The cost of deposits declined slightly, and the company adjusted deposit pricing downward to align with market rates [15][36] Company Strategy and Development Direction - The company is focused on maintaining credit quality while pursuing prudent growth, with a proactive approach to managing risk in its portfolio [5][8] - The management emphasized the importance of relationship banking, which allows for high engagement and local decision-making to meet client needs [7][22] - The company plans to continue investing in its future while managing expenses, with a target quarterly run rate around $36 million [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing successful execution of the merger with Kudor's Value as a key factor in current financial performance [4][17] - The company is aware of economic uncertainties and is focused on maintaining a solid foundation for future growth [8][12] - Management indicated that while NIM may face pressure from potential rate cuts, strategic pricing actions could help mitigate this impact [19][35] Other Important Information - The company redeemed $32.5 million of subordinated debt, which is expected to reduce interest expenses going forward [9][10] - The allowance coverage ratio was 1.21% at the end of the quarter, which management believes adequately addresses the risk of loss in the loan portfolio [12][13] Q&A Session Summary Question: What is the expected impact of Fed rate cuts on NIM? - Management indicated that while NIM may experience some downward pressure, competitive pricing and strategic actions could help maintain it within the 4.0% to 4.15% range [19][20] Question: Where is the competition in loan and deposit pricing coming from? - Competition varies by market, with larger competitors and those closer in size contributing to the competitive landscape [21][22] Question: Can you provide details on classified loans? - The largest classified loans total about $20 million, with some being in commercial real estate and other C&I credits [29][30] Question: What is the lending focus for next year? - The company plans to focus on commercial real estate and has recently hired additional talent in the C&I space to enhance its offerings [31][32] Question: What tools are available to mitigate NIM compression? - Management highlighted pricing adjustments on deposits and maintaining loan pricing as key strategies to offset potential NIM compression [35][36]

Financial Data and Key Metrics Changes - TrustCo Bank reported a net income of $16.3 million for Q3 2025, a 26.3% increase compared to Q3 2024, with a return on average assets of 1.02% and return on average equity of 9.29% [8][9] - The efficiency ratio improved by almost 9% year-over-year, indicating enhanced profitability and operational efficiency [5] - The consolidated equity-to-assets ratio was 10.90% for Q3 2025, slightly down from 10.95% in Q3 2024 [9] Business Line Data and Key Metrics Changes - Average loans grew by 2.5% or $125.9 million to $5.2 billion year-over-year, with home equity loans increasing by 15.7% [10][14] - The residential real estate portfolio increased by $34 million or 0.8%, while average commercial loans rose by $34.6 million or 12.4% [10] - Non-performing loans decreased to $18.5 million, with non-performing loans to total loans at 0.36%, down from 0.38% a year ago [9][17] Market Data and Key Metrics Changes - Total deposits reached $5.5 billion, up $217 million compared to the prior year, reflecting strong customer confidence [11] - The net interest margin for Q3 2025 was 2.79%, an increase of 18 basis points from the prior year [12] - The yield on interest-earning assets increased to 4.25%, while the cost of interest-bearing liabilities decreased to 1.9% [12] Company Strategy and Development Direction - TrustCo Bank aims to enhance shareholder value through a disciplined share repurchase program, having repurchased nearly half of the approved one million shares [7][9] - The company focuses on maintaining high-quality underwriting standards and conservative lending practices to manage credit risk effectively [10][16] - Expansion opportunities are being explored in Pasco County, Florida, and downstate New York, with a focus on strategic locations [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's long-term strength and the potential for meaningful net interest income upside due to maturing CDs [25][26] - The real estate market remains strong, contributing to recoveries and demand for loans, particularly in residential and home equity segments [28][14] - The bank is well-positioned to continue delivering strong financial performance despite potential easing from the Federal Reserve [12] Other Important Information - The wealth management division had approximately $1.25 billion in assets under management, contributing significantly to non-interest income [12][13] - Total non-interest expense was $26.2 million, slightly down from the prior year, indicating effective cost management [13] Q&A Session Summary Question: What is the average rate for maturing CDs compared to new CDs? - The average rate on the $1 billion in CDs coming due is about 3.75%, with the highest rate currently offered at 4% for a three-month term [25][26] Question: Can you explain the recoveries in New York? - The recoveries are largely due to a strong real estate market, with $194,000 in recoveries relating to approximately five properties taken back [28] Question: What are the company's expansion plans? - TrustCo is looking at opportunities in Pasco County, Florida, and other locations in downstate New York for potential growth [29][30]

Agree Realty (NYSE:ADC) Q3 2025 Earnings Call October 22, 2025 09:00 AM ET Company ParticipantsRJ Milligan - Managing Director Gaming, Lodging, and REITsPeter Coughenour - CFOJames Kammert - Managing DirectorJohn Kilichowski - VP in Equity ResearchReuben Treatman - Senior Director of Corporate FinanceNick Joseph - Global Head of Real Estate ResearchEric Borden - VPMatteo Orsenigo - Relationship Management Lead in Relationship and Transaction ManagementJoey Agree - President and CEORob Stevenson - Managing D ...

Agree Realty (NYSE:ADC) Q3 2025 Earnings Call October 22, 2025 09:00 AM ET Company ParticipantsRJ Milligan - Managing Director Gaming, Lodging, and REITsPeter Coughenour - CFOJames Kammert - Managing DirectorJohn Kilichowski - VP in Equity ResearchReuben Treatman - Senior Director of Corporate FinanceNick Joseph - Global Head of Real Estate ResearchEric Borden - VPMatteo Orsenigo - Relationship Management Lead in Relationship and Transaction ManagementJoey Agree - President and CEORob Stevenson - Managing D ...

United Community Banks (NYSE:UCB) Q3 2025 Earnings Call October 22, 2025 09:00 AM ET Speaker0Good morning, and welcome to United Community Bank's Third Quarter twenty '25 Earnings Call. Hosting our call today are Chairman and Chief Executive Officer, Lynn Harton Chief Financial Officer, Jefferson Harrelson President and Chief Banking Officer, Rich Bradshaw and Chief Risk Officer, Rob Edwards. United's presentation today includes references to operating earnings, pretax, pre credit earnings and other non GAA ...