W. R. Berkley (NYSE:WRB) Q4 2025 Earnings call January 26, 2026 05:00 PM ET Speaker12Ladies and gentlemen, thank you for joining us, and welcome to the W. R. Berkley Corporation fourth quarter and full year 2025 earnings call. This conference call is being recorded. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. The ...

South Plains Financial (NasdaqGS:SPFI) Q4 2025 Earnings call January 26, 2026 05:00 PM ET Speaker1Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Fourth Quarter 2025 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time, and as a reminder, this conference call is being recorded. I would now like to turn the call over to Ste ...

Agilysys (NasdaqGS:AGYS) Q3 2026 Earnings call January 26, 2026 04:30 PM ET Company ParticipantsBrian Schwartz - Managing DirectorDave Wood - CFOGeorge Sutton - Managing DirectorJessica Hennessy - VP of Investor Relations and OperationsMatthew Filek - Senior Equity Research AssociateMatthew VanVliet - Managing Director, Equity ResearchMayank Tandon - Managing DirectorRamesh Srinivasan - President and CEOConference Call ParticipantsAllan Verkhovski - Director and Application Software AnalystNehal Chokshi - M ...

Agilysys (NasdaqGS:AGYS) Q3 2026 Earnings call January 26, 2026 04:30 PM ET Company ParticipantsBrian Schwartz - Managing DirectorDave Wood - CFOGeorge Sutton - Managing DirectorJessica Hennessy - VP of Investor Relations and OperationsMatthew Filek - Senior Equity Research AssociateMatthew VanVliet - Managing Director, Equity ResearchMayank Tandon - Managing DirectorRamesh Srinivasan - President and CEOConference Call ParticipantsAllan Verkhovski - Director and Application Software AnalystNehal Chokshi - M ...

Financial Data and Key Metrics Changes - Fiscal 2026 Q3 revenue reached a record $80.4 million, a 15.6% increase from $69.6 million in the prior year quarter, marking the 16th consecutive record revenue quarter [11][18] - Recurring revenue was $52 million, up 17.2% year-over-year, representing 64.7% of total revenue for the quarter [12][20] - Subscription revenue hit a record $34.9 million, a 23.1% increase compared to the prior year quarter, with subscription bookings up 37% year-over-year [12][18] Business Line Data and Key Metrics Changes - The Hotels, Resorts, and Cruise Ships (HRC) sales vertical had its best Q3 sales quarter on record, driven by significant new customer wins [5] - Food Service Management (FSM) sales for the first three quarters of fiscal 2026 surpassed full-year sales from the previous two years, indicating strong growth potential [6] - Casino gaming experienced a sales slowdown in October and November but rebounded in December, marking the best December month in the company's history [6][11] Market Data and Key Metrics Changes - Cumulative international sales for the first three quarters are close to making fiscal 2026 the second-best international sales year, although Q3 international sales were described as lackluster [7] - Subscription SaaS sales for the first three quarters reached 95% of the previous best full-year sales, with a year-over-year increase of 37% [8] Company Strategy and Development Direction - The company is focused on leveraging AI tools to improve implementation efficiencies and reduce customer delays, which is expected to enhance sales and profitability [15][16] - The management emphasized the competitive advantage gained from a modernized cloud-native product ecosystem, which is difficult for competitors to replicate [26][27] - The company is optimistic about future growth opportunities, particularly in the PMS segment, which is entirely software-based [27][32] Management's Comments on Operating Environment and Future Outlook - Management noted that the total addressable market remains large relative to the company's size, with significant growth possibilities ahead, especially in the PMS business [27] - The company expects fiscal 2026 full-year revenue to reach $318 million, with subscription revenue growth guidance maintained at 29% [17][24] - Management expressed confidence in the business's ability to drive top-line growth while improving profitability levels, anticipating exciting growth in the next couple of fiscal years [32] Other Important Information - The company reported a free cash flow of $22.7 million for the quarter, compared to $19.7 million in the prior year quarter, indicating strong financial health [24] - The company has maintained a debt-free status after paying down its credit revolver by $24 million in the first half of the fiscal year [24] Q&A Session Summary Question: Insights on gaming and casino space weakness - Management noted the sales slowdown in October and November was temporary, with a strong recovery in December, and did not speculate on specific causes [34][35] Question: Marriott PMS rollout expectations - The pilot phase for the Marriott PMS project was successful, and implementation waves are expected to increase in size and scope in the coming months [36][38] Question: International performance and sales capacity - Management confirmed no sales capacity issues and highlighted ongoing efforts to secure larger deals internationally, despite some quarter-to-quarter fluctuations [44][46] Question: AI capabilities and competition - AI is being integrated across the platform, enhancing operational efficiency and competitive advantage, although no significant competitive responses have been observed [53][55] Question: Professional services gross margins - Margins were impacted by seasonal factors and lower utilization during the holiday period, with no reliance on third-party labor for implementations [87][88] Question: Product development spend and AI impact - While AI is improving product development speed, the demand for innovation remains high, and operational leverage may materialize in FY27 and beyond [90]

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, 63% higher year-over-year and 16% higher quarter-over-quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million compared to the linked quarter [11] Business Line Data and Key Metrics Changes - Loans and deposits both grew modestly in the quarter, with non-interest-bearing demand deposits growing 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% consisting of residential mortgage and home equity loans [7] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [7] Market Data and Key Metrics Changes - Bank of Hawaii's market share growth continued in 2025, advancing another 40 basis points [4] - The bank is the clear deposit market share leader in Hawaii [4] - Approximately 93% of loans are based in Hawaii, with 4% in the Western Pacific and 3% on the mainland [6] Company Strategy and Development Direction - The company aims to achieve a net interest margin of near 290 by the end of 2026, driven by fixed asset repricing and improving deposit remix [5] - The bank's unique business model leverages its core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The company is focused on enhancing its digital service, marketing, and commerce capabilities to maintain its competitive advantage [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although they expect growth to moderate from the 6% increase seen in Q4 [24] - The outlook for loan growth in 2026 is projected to be mid-single digits, with expectations for improved pipelines in both consumer and commercial lending [29][54] - Management noted that credit quality remains pristine, with a positive economic outlook for Hawaii supporting a reduction in the allowance for credit losses [39] Other Important Information - Noninterest income was $44.3 million during the quarter, impacted by a gain on the sale of the merchant services portfolio and a loss from investment portfolio repositioning [15] - The company resumed its stock repurchase program, purchasing approximately $5 million of common shares at an average price of $65 per share [19] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [19] Q&A Session Summary Question: Can you provide insight on non-interest-bearing deposit growth? - Management indicated that the 6% growth in non-interest-bearing deposits may not continue at the same rate, attributing some growth to seasonality and balanced contributions from business segments [24] Question: What is the outlook for loan growth? - Management expressed a positive outlook for loan pipelines, expecting mid-single-digit growth in 2026, with contributions from both consumer and commercial sectors [29][54] Question: What is the status of special mention and classified balances? - Special mention at the end of Q4 was $63.4 million, down from the previous year, with total classified at $298.5 million [38] Question: Can you elaborate on margin expectations? - Management confirmed that the margin target of near 290 is based on year-end projections, not just Q4 averages, and highlighted the importance of fixed asset repricing [33] Question: What is the strategy for capital return and buybacks? - Management plans to increase stock repurchases to the $15 million-$20 million range per quarter, contingent on growth remaining stable [67]

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, 63% higher year-over-year and 16% higher quarter-over-quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million compared to the linked quarter [11] Business Line Data and Key Metrics Changes - Loans and deposits grew modestly in the quarter, with non-interest-bearing demand deposits increasing by 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% being residential mortgage and home equity loans [7] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [7] Market Data and Key Metrics Changes - Bank of Hawaii's market share growth continued in 2025, advancing another 40 basis points [4] - Approximately 93% of loans are based in Hawaii, with 4% in the Western Pacific and 3% on the mainland [6] Company Strategy and Development Direction - The company aims to leverage its unique core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The focus remains on improving customer service and understanding market changes to maintain competitive advantages [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although growth may not continue at the same rate [24] - The outlook for loan growth in 2026 is expected to be mid-single digits, with a more positive pipeline for both consumer and commercial loans [29][54] Other Important Information - The company reported a provision for credit losses of $2.5 million, unchanged from the linked quarter [17] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [19] - The company resumed its stock repurchase program, purchasing approximately $5 million of common shares [19] Q&A Session Summary Question: Non-interest-bearing deposit growth - Management noted a 6% increase in non-interest-bearing deposits, attributing it to a balanced contribution from various business segments, but expects growth to moderate [24] Question: Loan pipeline outlook - Management indicated a generally positive outlook for loan pipelines, with expectations for mid-single-digit growth in 2026 [29][54] Question: Margin update - Management confirmed that the margin target of near 2.90% is based on year-end expectations, not fourth-quarter averages [33] Question: Special mention and classified balances - Special mention balances at the end of the fourth quarter were $63.4 million, down from the previous year, indicating strong credit quality [38] Question: Fee income opportunities - Management highlighted ongoing efforts in wealth management and a strong pipeline for fee income growth, aiming for a 10% increase [75]

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, a 63% increase year-over-year and a 16% increase from the previous quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million from the previous quarter [12] Business Line Data and Key Metrics Changes - Loans and deposits both grew modestly in the quarter, with non-interest-bearing demand deposits growing 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% consisting of residential mortgage and home equity loans [8] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [8] Market Data and Key Metrics Changes - Bank of Hawaii continues to lead in deposit market share in Hawaii, with market share growth advancing another 40 basis points in 2025 [4] - The average quarterly mix shift of deposits was $25 million compared to $340 million in 2024, indicating a shift from non-interest-bearing to higher-cost deposits [13] Company Strategy and Development Direction - The company aims to leverage its unique core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The focus remains on improving customer service and expanding market share, with a strong emphasis on both consumer and commercial segments [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although they expect growth rates to moderate from the current quarter's 6% [25] - The outlook for loan growth in 2026 is projected to be mid-single digits, with expectations for improved pipelines in both consumer and commercial lending [29][54] Other Important Information - The company reported a provision for credit losses of $2.5 million, unchanged from the linked quarter, resulting in a coverage ratio of 1.04% [19] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [20] Q&A Session Summary Question: Non-interest-bearing deposit growth - Management noted a 6% increase in non-interest-bearing deposits, attributing it to a balanced contribution from business segments, but expects growth to moderate [25] Question: Loan pipeline outlook - Management indicated a positive outlook for loan pipelines, with expectations for mid-single-digit growth in 2026 [29][54] Question: Margin update - Management confirmed that the margin target of near 290 is an end-of-year goal, not a fourth-quarter average [33] Question: Special mention and classified balances - Special mention balances at the end of the fourth quarter were $63.4 million, down from the previous year, indicating strong credit quality [39] Question: Fee income opportunities - Management highlighted growth in wealth management fees and a strong pipeline, with expectations for continued growth [75]

Financial Data and Key Metrics Changes - The company reported a net loss of $39.5 million in Q4, translating to $2.49 per share, primarily due to a $69 million loss from securities portfolio repositioning [9] - On a non-GAAP basis, net income was $9.4 million or $0.59 per share, with non-GAAP pre-tax, pre-provision net income increasing by 31% quarter-over-quarter and 51% year-over-year [9] - Net interest income rose to $31.2 million, driven by balance sheet growth, higher investment security yields, and reduced deposit costs [9] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $141 million, with $106 million funded, marking one of the strongest quarters in the past decade [4] - For the full year, the company originated $374 million in new loans, including $274 million funded, which was 79% higher than the previous year [4] - Total deposits increased in Q4 due to higher balances from existing clients and new relationships, with a reduction in deposit costs by 10 basis points [6] Market Data and Key Metrics Changes - The company experienced a 35% decline in classified loans quarter-over-quarter, reducing to 1.5% of total loans from 2.4% in the prior quarter [7] - Non-accrual loans improved, decreasing by 14% to 1.3% of total loans compared to 1.5% in the prior quarter [7] Company Strategy and Development Direction - The company executed a balance sheet restructuring that improved net interest margin and net interest income while maintaining strong capital levels [3][8] - The focus remains on attracting new client relationships and expanding existing ones, particularly in growth markets like Greater Sacramento [5][6] - The company aims to continue loan growth in 2026 while managing seasonal outflows typically experienced in the first half of the year [12] Management's Comments on Operating Environment and Future Outlook - Management noted healthy economic conditions in their markets and an expectation for solid loan growth in 2026 [12] - The company is prepared for potential Fed funds rate cuts in 2026, which may allow for targeted deposit cost reductions contributing to margin expansion [10] - Management expressed confidence in the continued improvement of credit quality trends and proactive credit management [7][12] Other Important Information - The allowance for credit losses remains strong at 1.42% of total loans, with only a minor provision for credit losses in Q4 [11] - The board declared a cash dividend of $0.25 per share, marking the 83rd consecutive quarterly dividend [11] Q&A Session Summary Question: Loan production and recent hires - Management indicated that a significant portion of loan production came from recent hires, contributing to a diverse pipeline [16] Question: Deposit cost trends - The average deposit cost was reported at 2.08% in December, with expectations for further reductions in January [17][19] Question: Increase in special mention loans - The increase was attributed to a downgrade in a wine industry credit and upgrades from substandard loans [20][22] Question: Opportunities for new hires - Management sees opportunities across the footprint and plans to continue hiring in various regions [28][31] Question: Client receptivity to deposit rate reductions - Clients have been somewhat receptive, with attrition mainly from rate shoppers seeking higher returns elsewhere [36][37] Question: Margin expansion expectations - Management expects continued margin expansion, supported by targeted deposit cost reductions and back book repricing [39][42] Question: Credit trends and special mention loans - Positive trends in credit quality were noted, with improvements in real estate markets contributing to upgrades [60][62] Question: Expense run rate and capital deployment - Management anticipates a slight increase in expenses due to investments in growth initiatives, while capital levels are deemed adequate [71][73]

Financial Data and Key Metrics Changes - The company reported a net loss of $39.5 million in the fourth quarter, translating to $2.49 per share, primarily due to a $69 million loss from securities portfolio repositioning [9] - On a non-GAAP basis, net income was $9.4 million, or $0.59 per share, with non-GAAP pre-tax, pre-provision net income increasing by 31% quarter-over-quarter and 51% year-over-year [9] - Net interest income rose to $31.2 million, driven by balance sheet growth, higher investment security yields, and reduced deposit costs [9] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $141 million, with $106 million funded, marking one of the strongest quarters in the past decade [4] - For the full year, the company originated $374 million in new loans, including $274 million funded, which was 79% higher than the previous year [4] - Total deposits increased in the fourth quarter due to higher balances from existing clients and new relationships, with a reduction in deposit costs by 10 basis points [6] Market Data and Key Metrics Changes - The company experienced a 35% decline in classified loans quarter-over-quarter, reducing to 1.5% of total loans from 2.4% in the prior quarter [7] - Non-accrual loans improved, decreasing by 14% to 1.3% of total loans compared to 1.5% in the prior quarter [7] - The loan pipeline remains strong amid healthy demand, with expectations for solid loan growth in 2026 [12] Company Strategy and Development Direction - The company successfully executed a balance sheet restructuring that improved net interest margin and net interest income while maintaining strong capital levels [3][8] - The focus remains on attracting new client relationships and expanding existing ones, particularly in growth markets like Greater Sacramento [5] - The company aims to continue investing in people and initiatives to support profitable growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted relatively healthy economic conditions in their markets, with continued improvements in credit quality [12] - The company anticipates seasonal outflows in the first half of the year but expects to generate solid loan growth and deposit growth through new and existing relationships [12] - Management expressed confidence in achieving targeted mid-single-digit net loan growth for the year, contingent on managing payoffs effectively [55] Other Important Information - The board declared a cash dividend of $0.25 per share, marking the 83rd consecutive quarterly dividend [11] - The company is prepared for potential Fed funds rate cuts in 2026, which may contribute to margin expansion [10] Q&A Session Summary Question: Loan production and recent hires - Management indicated that a significant portion of loan production came from recent hires, contributing to a more diverse pipeline [16] Question: Deposit cost trends - The average deposit cost was reported at 2.08% in December, with expectations for further reductions in January [17][19] Question: Special Mention increase - The increase was attributed to a downgrade in a wine industry credit and upgrades from substandard loans, reflecting a conservative approach [20][22] Question: Opportunities for new hires - Management sees opportunities across the footprint and plans to continue hiring talent to enhance loan originations [28][31] Question: Client receptivity to deposit rate reductions - Clients have been receptive to targeted deposit rate reductions, with some attrition expected from rate-sensitive customers [36][37] Question: Margin expansion outlook - Management discussed the potential for margin expansion, emphasizing the importance of managing deposit costs and loan repricing [39][48]