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    Andrew Terrell • Stephens Inc.

    Andrew Terrell's questions to First Foundation Inc (FFWM) leadership

    Andrew Terrell's questions to First Foundation Inc (FFWM) leadership • Q2 2025

    Question

    Andrew Terrell from Stephens Inc. requested the loan yield exit rate for the second quarter to help model future net interest margin. He also asked about the strategy for the large cash position, specifically whether it would be used to reduce brokered deposits or be invested in securities.

    Answer

    CFO James Britton provided the exit rate for total loan yields as just under 4.70%. Regarding the cash position, Mr. Britton stated that the current liquidity level is comfortable and is expected to remain relatively stable on average for the rest of the year. He indicated they will reassess the optimal cash level after the balance sheet transition is complete at year-end.

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    Andrew Terrell's questions to First Interstate Bancsystem Inc (FIBK) leadership

    Andrew Terrell's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q2 2025

    Question

    Andrew Terrell from Stephens Inc. asked for more detail on the significant increase in special mention loans, clarification on near-term expense guidance, the expected cost savings from the branch divestiture, and whether the 2026 NII growth forecast includes the impact of that transaction.

    Answer

    President & CEO James Reuter explained the increase in criticized loans was primarily driven by new information on multifamily projects where lease-up timelines are slower than originally underwritten, though he remains confident in the collateral and guarantors. EVP & CFO David Della Camera clarified that Q3 and Q4 expenses are expected to be higher than Q2 due to timing on items like medical insurance and tech spend. He confirmed the current guidance does not include savings from future branch consolidations and that the 2026 NII guidance excludes the branch divestiture, which is not expected to materially alter the outlook.

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    Andrew Terrell's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q1 2025

    Question

    Andrew Terrell from Stephens Inc. followed up on the branch sale, asking for the targeted efficiency ratio of the divested branches. He also inquired about capital deployment, specifically if securities portfolio repositioning is being considered and the potential timing of such actions. On credit, he questioned why charge-off guidance remains unchanged despite the increase in nonperforming loans and asked for the dollar impact of NPL interest reversals on the first-quarter margin.

    Answer

    Deputy CFO David Della Camera declined to provide a specific efficiency ratio for the branch sale, reiterating that noninterest expense was in the 'mid-2s' as a percentage of deposits. CEO James Reuter confirmed that securities repositioning is an option considered alongside dividends and buybacks, but stated deployment decisions are made quarter-by-quarter. Reuter defended the charge-off guidance by pointing to the quality of collateral and guarantors. Della Camera quantified the NPL interest reversal impact as 'a little over $1 million' for the quarter.

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    Andrew Terrell's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q4 2024

    Question

    Andrew Terrell sought to clarify the 'modest loan growth' guidance for 2025, asking if 'flattish' was a fair assumption after accounting for the indirect auto portfolio runoff. He also asked about the yield on the indirect portfolio, associated cost savings, deposit beta assumptions in a declining rate environment, and whether a recent nonaccrual interest recovery was elevated.

    Answer

    Deputy CFO David Redmon confirmed that 'flattish' overall loan growth for the year is the correct interpretation. CEO Jim Reuter noted the indirect portfolio has a mid-6% yield and that all impacts are in the guidance. Mr. Reuter also explained the deposit beta is expected to be in the high-30s, and the $1.8 million nonaccrual interest recovery was an elevated level not typically factored into forecasts.

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    Andrew Terrell's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q3 2024

    Question

    Andrew Terrell of Stephens Inc. asked for the size of the agricultural credit nearing resolution, its impact on Q4 charge-off guidance, the strategy for $1.7 billion in borrowings repricing in Q1 2025, and the dynamics of the Q3 swap termination.

    Answer

    CFO Marcy Mutch confirmed the agricultural loan is approximately $20 million and its potential resolution is factored into the Q4 charge-off guidance. CEO Kevin Riley added that a significant loss is not expected on that credit. Regarding borrowings, Mutch emphasized maintaining flexibility as the repricing date approaches. She explained the $550 million swap termination was a proactive measure to reduce liability sensitivity heading into 2025.

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    Andrew Terrell's questions to Bank of Hawaii Corp (BOH) leadership

    Andrew Terrell's questions to Bank of Hawaii Corp (BOH) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. sought to confirm the full-year expense growth guidance of 2% to 3%, noting it implies a decrease in the second half of the year. He also asked for an update on capital priorities, specifically regarding share buybacks and potential securities portfolio restructuring.

    Answer

    Vice Chair & CFO Bradley Satenberg confirmed the 2% to 3% expense growth guidance is intact and that expenses should decline from first-half levels. Chairman & CEO Peter Ho stated that the bank is maintaining its hold on share buybacks pending greater economic clarity. He added that any securities repositioning would be opportunistic and funded by non-recurring income, with no significant restructuring planned.

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    Andrew Terrell's questions to Bank of Hawaii Corp (BOH) leadership • Q4 2024

    Question

    Andrew Terrell from Stephens inquired about the allocation of the remaining active interest rate swaps, whether the net interest margin could reach 2.5% by the end of 2025, the current offering rates for CDs, and the specific dollar amount of the Q4 medical costs.

    Answer

    CFO Dean Shigemura detailed the swap allocation as approximately $700 million against securities and $1.3 billion against loans. CEO Peter Ho described a 2.5% NIM as a "trend possibility" but contingent on several factors. Management noted current CD offering rates are around 3% but declined to give specific pricing. CFO Dean Shigemura stated the increase in medical costs was about $1.5 million.

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    Andrew Terrell's questions to First Hawaiian Inc (FHB) leadership

    Andrew Terrell's questions to First Hawaiian Inc (FHB) leadership • Q2 2025

    Question

    Andrew Terrell from Stephens Inc. asked about the bank's perspective on M&A given its strong capital position, the factors that impacted loan yields and the net interest margin in Q2, and for clarification on the core run-rate for fee income.

    Answer

    CEO Robert Harrison stated that while the bank is always open to considering M&A, there are no current plans, and capital is being preserved for organic loan growth. CFO James Moses explained that a loan mix shift, with higher-yielding construction loans paying off, temporarily muted loan yield improvement but the outlook for NIM expansion remains positive. Moses also clarified that core noninterest income is expected to be around $51 million per quarter, with Q2 benefiting from some minor, non-recurring market-related items.

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    Andrew Terrell's questions to First Hawaiian Inc (FHB) leadership • Q1 2025

    Question

    Andrew Terrell requested the spot deposit cost at the end of the quarter and the net interest margin for the month of March. He also asked about the company's strategy and expectations for its share buyback program, particularly given recent market volatility.

    Answer

    CFO James Moses provided the figures: a 1.41% spot deposit cost and a 3.10% NIM for March. He clarified that the Q2 NIM guidance of 3.10% already incorporates a forecasted June rate cut. Regarding the buyback, Moses stated the approach is to be programmatic, targeting around $25 million per quarter, rather than attempting to time the market, although accelerating repurchases remains a possibility.

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    Andrew Terrell's questions to First Hawaiian Inc (FHB) leadership • Q4 2024

    Question

    Andrew Terrell from Stephens inquired about the bank's appetite for further securities portfolio restructuring compared to share buybacks and asked for more detail on the timing of expected loan payoffs.

    Answer

    CFO Jamie Moses indicated that while further repositioning is always a consideration, it's unlikely in the short term and is evaluated differently than buybacks. CEO Bob Harrison clarified that loan payoff pressure, particularly from construction loans, is expected to be more concentrated in the first half of 2025, suggesting loan growth would likely be stronger in the back half of the year.

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    Andrew Terrell's questions to Finwise Bancorp (FINW) leadership

    Andrew Terrell's questions to Finwise Bancorp (FINW) leadership • Q2 2025

    Question

    Andrew Terrell from Stephens Inc. asked about the potential pace of credit enhanced loan additions, the sustainability of current average held-for-sale balances, the rationale behind the 2027 ROA and ROE targets given current performance, and the expense outlook for the second half of the year.

    Answer

    Bank CEO James Noone confirmed the $50-$100 million year-end target for credit enhanced loans is appropriate for modeling. CFO Robert Wahlman stated the current average held-for-sale balance is a fair representation for future quarters and that the 2027 targets are based on a fully leveraged balance sheet at target capital levels, acknowledging potential for upside. He also noted no significant new investments are planned and expects continued positive operating leverage.

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    Andrew Terrell's questions to Finwise Bancorp (FINW) leadership • Q1 2025

    Question

    Andrew Terrell asked for details on the Net Interest Margin (NIM), specifically the drivers of the decline in held-for-sale (HFS) yields and their expected recovery. He also questioned the source of the strong commercial real estate (CRE) growth, its yield relative to credit-enhanced loans, and the company's capital goals and willingness to increase leverage.

    Answer

    CFO Robert Wahlman explained that the seasonal drop in high-yield HFS originations should largely reverse in Q2 and Q3. He attributed other NIM pressures to the repricing of variable-rate SBA loans and the addition of lower-yielding CRE and extended HFS loans. Bank CEO James Noone clarified the CRE growth is in low-risk, owner-occupied properties sourced via Business Lending Group (BFG). Wahlman estimated owner-occupied CRE yields are about 300-350 bps below credit-enhanced loans and reiterated a capital floor of around a 14% leverage ratio, which provides significant room for growth.

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    Andrew Terrell's questions to Finwise Bancorp (FINW) leadership • Q4 2024

    Question

    Andrew Terrell of Stephens Inc. asked about the net yield difference between credit enhanced loans and SBA loans, the timing of the Q4 brokered CD changes, and whether the 2-3 new partner target for 2025 includes BIN/payments programs. He also inquired about the onboarding time for mature fintechs, the drivers of the Q1 NPL forecast, and the company's comfort level with a lower capital ratio.

    Answer

    CFO Bob Wahlman stated that the net yields on credit enhanced and SBA loans are 'relatively similar' due to comparable low-risk profiles and that the full benefit of the Q4 CD actions will be seen in Q1. President Jim Noone clarified that the 2-3 partner target is for lending programs and that card/payment programs are additive. He also detailed the NPL forecast drivers. Finally, Mr. Wahlman confirmed the company is comfortable with the leverage ratio declining into the 'mid-teens level' as the balance sheet grows with low-risk assets.

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    Andrew Terrell's questions to Finwise Bancorp (FINW) leadership • Q3 2024

    Question

    Andrew Terrell asked for more detail on the timing of refinancing the remaining callable CDs. He also questioned the significant increase in average Held-for-Sale (HFS) loan balances, the persistent negative fair value adjustment on the BFG investment, and the potential for flat expense growth in Q4.

    Answer

    CEO Kent Landvatter indicated the remaining ~$80 million in currently callable CDs would likely be refinanced in two tranches in November and December. President Jim Noone clarified that the higher Held-for-Sale loan balance was tied to strong Q3 originations and will likely moderate in Q4. CFO Robert Wahlman attributed the negative BFG investment valuation to a slow SBA market but expects a turnaround as activity picks up. Finally, President Jim Noone stated that while expense growth is decelerating, modeling flat expenses for Q4 would be too aggressive.

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    Andrew Terrell's questions to CVB Financial Corp (CVBF) leadership

    Andrew Terrell's questions to CVB Financial Corp (CVBF) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. inquired about the strategy for deploying the significant end-of-period cash balance, such as growing the bond portfolio or reducing FHLB advances. He also asked for details on the competitive environment for loan originations and its impact on new loan yields.

    Answer

    CFO E. Allen Nicholson stated that the most likely use of excess cash would be to judiciously grow the investment securities portfolio, rather than paying down wholesale funding, to manage interest rate risk. CEO David Brager described the loan competition as 'intense,' particularly from regional banks offering spreads as low as 130-170 basis points over treasuries. He affirmed CVBF's commitment to disciplined pricing and underwriting, noting that new loan origination yields might see a slight dip to the 6.25-6.50% range in Q3.

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    Andrew Terrell's questions to CVB Financial Corp (CVBF) leadership • Q1 2025

    Question

    Andrew Terrell asked for the specific dollar impact of loan prepayment penalties on interest income and questioned the potential for further deposit cost reductions in the absence of Fed rate cuts.

    Answer

    Executive E. Nicholson quantified the quarter-over-quarter increase in prepayment penalties at approximately $300,000. President and CEO David Brager addressed deposit costs, suggesting there is 'a little room to go' for reductions, driven by new money market accounts being opened at lower rates and ongoing relationship-based pricing reviews.

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    Andrew Terrell's questions to CVB Financial Corp (CVBF) leadership • Q4 2024

    Question

    Andrew Terrell of Stephens Inc. asked for details on the net interest margin, including the timing of Q4 deposit rate cuts and the potential for further reductions. He also inquired about the cost of remaining borrowings and the outlook for expense growth in 2025.

    Answer

    Executive E. Nicholson explained that nonmaturity deposit costs will likely continue to decline in the near term due to the lag effect from the December Fed cut. President and CEO David Brager added that money market rates were cut in line with the Fed, with the full impact yet to be seen. Nicholson estimated the cost of the remaining $500 million in borrowings is in the low 4% range. Regarding expenses, he projected controllable expense growth to be below the recent 4% trend, with continued investment in technology to improve efficiency.

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    Andrew Terrell's questions to CVB Financial Corp (CVBF) leadership • Q3 2024

    Question

    Andrew Terrell followed up on the securities sold during the quarter, asking about the specific timing and yield. He also sought to clarify the near-term trajectory for non-maturity deposit costs and asked if any changes were made to the company's hedging strategy given the bond sales.

    Answer

    Executive E. Nicholson stated the security sales occurred throughout the quarter but were heavier in the last month, with a book yield close to 3%. CEO David Brager described the trend for non-maturity deposit costs as 'moderate,' expecting stabilization or a slight decline. E. Nicholson confirmed that no changes were made to the fair value hedges on the AFS portfolio, as there was excess capacity, but they may evaluate unwinding some hedges in the future as they shorten.

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    Andrew Terrell's questions to National Bank Holdings Corp (NBHC) leadership

    Andrew Terrell's questions to National Bank Holdings Corp (NBHC) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. asked about the sequential decline in deposits, questioning if it was connected to the derisking in the loan portfolio and how the bank plans to fund expected loan growth. He also requested more detail on the second-quarter expense reduction plan.

    Answer

    Chairman & CEO Timothy Laney confirmed the deposit decline was linked to moving entire client relationships as part of the credit derisking. President Aldis Birkans added that the bank avoids buying expensive deposits and expects to grow deposits alongside loans in the second half of the year. EVP & CFO Nicole Van Denabeele explained the expense reduction was a proactive, bank-wide effort that eliminated positions and streamlined processes through automation.

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    Andrew Terrell's questions to National Bank Holdings Corp (NBHC) leadership • Q1 2025

    Question

    Andrew Terrell asked for clarification on what management's 'risk-off posture' entails, requested the dollar amount of the Q1 payroll tax credit, and inquired about the relative interest in M&A versus share repurchases.

    Answer

    President Aldis Birkans and CEO Tim Laney explained that a 'risk-off' posture involves adding more rigor and scrutiny to underwriting new clients in the current environment. CFO Nicole Van Denabeele specified the payroll tax credit was $2 million. Tim Laney added that repurchasing the company's own shares is currently the most attractive use of capital, viewing the M&A market as difficult.

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    Andrew Terrell's questions to National Bank Holdings Corp (NBHC) leadership • Q3 2024

    Question

    Andrew Terrell asked about the drivers of the strong originated loan yield this quarter, client reactions to proactive deposit rate cuts, and the repricing mechanics of Cambr-sourced deposits.

    Answer

    CFO Nicole Van Denabeele attributed the strong loan yields to pricing discipline, noting an 8.5% weighted average rate on new fundings, which President Aldis Birkans confirmed had no one-off items. Chairman and CEO Tim Laney stated there has been 'very little pushback' from clients on lower deposit rates. Birkans clarified that Cambr deposits are 'managed rate' deposits, not contractually tied to an index, and are part of the same proactive rate management strategy.

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    Andrew Terrell's questions to East West Bancorp Inc (EWBC) leadership

    Andrew Terrell's questions to East West Bancorp Inc (EWBC) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. asked about the growth outlook for commercial real estate, questioning if the bank is selectively slowing originations in that segment to manage concentrations or due to the competitive environment.

    Answer

    EVP & CFO Christopher Del Moral-Niles highlighted that the bank's strategy is to achieve a more balanced portfolio, with a particular emphasis on growing C&I and single-family loans. He pointed to recent year-over-year growth rates, which show CRE growing slower than other categories, aligning with the bank's medium-to-long-term goal of a 'third, a third, a third' balance.

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    Andrew Terrell's questions to East West Bancorp Inc (EWBC) leadership • Q3 2024

    Question

    Andrew Terrell of Stephens sought clarification on the 5-10 basis point drop in deposit costs observed in October. He also asked if the projected $10 million positive impact from maturing swaps already accounts for recent and anticipated rate cuts.

    Answer

    CFO Christopher Del Moral-Niles clarified the decline was closer to 5 basis points for total deposits and 10 basis points for interest-bearing deposits. He explained that the $10 million positive impact from swaps was an end-of-quarter figure and that each Fed rate cut would "chip away" at it slightly, but it would still largely be a net positive.

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    Andrew Terrell's questions to Cathay General Bancorp (CATY) leadership

    Andrew Terrell's questions to Cathay General Bancorp (CATY) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. asked about the rationale for maintaining the 3-4% loan growth guidance despite a strong Q2, and sought details on the significant quarter-end increase in Federal Home Loan Bank (FHLB) borrowings.

    Answer

    President & CEO Chang Liu stated that while the pipeline is strong, the guidance remains conservative due to the broader economic landscape. EVP & CFO Heng Chen added that the FHLB borrowings were short-term (two weeks) at a rate of approximately 4.6% to fund a surge in loan growth late in the quarter, and they are in the process of being replaced with lower-cost broker CDs.

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    Andrew Terrell's questions to Cathay General Bancorp (CATY) leadership • Q1 2025

    Question

    Andrew Terrell sought clarification on whether rate cuts would have a positive or negative impact on NIM, inquired about the provision for a specific C&I credit in relation to tariff impacts, and asked about the status of the share repurchase program.

    Answer

    EVP and CFO Heng Chen confirmed that rate cuts would be a positive for NIM. He clarified the large provision was for a domestic company unrelated to trade finance, but other reserve builds were tariff-related, bringing the allowance on the tariff-exposed loan pool to about 2%. He also stated the company is awaiting regulatory approval for a new buyback program.

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    Andrew Terrell's questions to Cathay General Bancorp (CATY) leadership • Q4 2024

    Question

    Andrew Terrell from Stephens Inc. asked about capital deployment strategies, specifically the bank's interest in M&A for 2025 versus continuing its share buyback program. He also questioned the timing and future expectations for the runoff of brokered deposits observed in the quarter.

    Answer

    President & CEO Chang Liu confirmed the bank is always evaluating M&A opportunities within its niche market but noted that many potential targets have similar profiles, limiting strategic value. EVP & CFO Heng Chen explained that the brokered deposit runoff occurred mainly in November and December as core deposits increased, and the bank intends to maintain the current, smaller brokered portfolio as an incremental funding source.

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    Andrew Terrell's questions to Cathay General Bancorp (CATY) leadership • Q3 2024

    Question

    Andrew Terrell asked for details on certificate of deposit (CD) repricing dynamics for Q4, including maturing volumes, back-book costs, and new pricing, and also sought clarification on the core expense outlook for Q4.

    Answer

    President and CEO Chang Liu stated that $3.49 billion in CDs with an average yield of 4.82% are maturing in Q4, with new rates expected in the low to mid-4% range. EVP and CFO Heng Chen added details on promotional CDs maturing in early 2025 that will reprice significantly lower. Regarding expenses, Mr. Chen indicated Q4 core expenses should be close to Q3 levels, benefiting from the completion of a major project.

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    Andrew Terrell's questions to RBB Bancorp (RBB) leadership

    Andrew Terrell's questions to RBB Bancorp (RBB) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. requested more detail on the changes to the credit control process, whether it implies a broader portfolio review, and asked about the outlook for loan sales in the second half of the year, including the types of loans that might be sold.

    Answer

    EVP & CFO Lynn Hopkins clarified the enhanced credit control process was primarily focused on a smaller part of the portfolio—gap and bridge financing—and is reflected in the Q2 results. President & CEO Johnny Lee added it's a more conservative approach on loans that are still current and performing. Regarding loan sales, Lynn Hopkins noted opportunities exist with both the single-family mortgage and SBA loan portfolios, with the latter benefiting from newly added resources.

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    Andrew Terrell's questions to RBB Bancorp (RBB) leadership • Q1 2025

    Question

    Andrew Terrell of Stephens Inc. questioned the bank's ability to fund expected loan growth organically, given the loan-to-deposit ratio. He also asked about the drivers behind the decline in noninterest-bearing deposits and the terms of new FHLB advances.

    Answer

    Lynn Hopkins expressed confidence in funding loan growth organically, citing a successful CD campaign and modest reliance on wholesale funding. She attributed the noninterest-bearing deposit decline to seasonality and some customer migration to higher-yielding products. She also detailed that the new FHLB advances have short-term put options, despite longer final maturities.

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    Andrew Terrell's questions to RBB Bancorp (RBB) leadership • Q4 2024

    Question

    Speaking on behalf of Andrew Terrell, Jackson Laurent asked about the drivers behind the increase in noninterest-bearing deposits and inquired about the company's current M&A strategy.

    Answer

    President & CEO Johnny Lee attributed the deposit strength to new large commercial clients and expects further contributions from recently hired commercial lenders. CEO David Morris confirmed that the M&A strategy is unchanged, with a continued focus on acquiring other Asian American banks, particularly to expand into the San Francisco Bay Area.

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    Andrew Terrell's questions to RBB Bancorp (RBB) leadership • Q3 2024

    Question

    Andrew Terrell sought to clarify the mechanics of the net interest margin, asking for more detail on the 3.53% deposit spot rate and how it reconciles with actions taken after the Fed rate cut. He also asked about the mix of floating-rate securities and whether margin guidance already assumes further rate cuts in the fourth quarter.

    Answer

    Executive Lynn Hopkins clarified that the 3.53% spot rate at quarter-end primarily reflects changes to non-maturity deposits, as the larger impact from repricing the bank's $2.1 billion CD portfolio will occur in Q4 and beyond. She explained that the bank's liability-sensitive position and CD ladder allow it to benefit from a declining rate environment. She also mentioned the opportunistic use of wholesale funds to lower costs, suggesting the bank is positioned to capture margin benefits regardless of the precise timing of future Fed moves.

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    Andrew Terrell's questions to Preferred Bank (PFBC) leadership

    Andrew Terrell's questions to Preferred Bank (PFBC) leadership • Q2 2025

    Question

    Andrew Terrell of Stephens Inc. questioned the competitive landscape for loan growth and current pricing for new loans. He also asked about the shift out of demand deposit accounts and the bank's expectations for overall deposit growth.

    Answer

    EVP & Deputy COO Johnny Hsu described the lending environment as having 'stiff' competition with some lenders offering low fixed rates, but emphasized Preferred Bank's relationship-driven model. Chairman & CEO Li Yu stated the goal is to grow deposits while controlling costs, a focus for the past several months, and noted that future aggressiveness on deposit gathering will depend on loan growth needs.

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    Andrew Terrell's questions to Preferred Bank (PFBC) leadership • Q4 2024

    Question

    Andrew Terrell from Stephens Inc. inquired about the net interest margin (NIM) outlook for Q1, the volume and rates of time deposits repricing, and the company's capital return strategy for 2025, particularly regarding share buybacks.

    Answer

    Executive Li Yu anticipated a relatively stable NIM for Q1. CFO Edward Czajka provided the December spot margin of 3.98% and projected a NIM in the "very, very high 3s" for Q1. He noted that nearly $1.6 billion in time deposits at a 4.75% weighted average rate are maturing in Q1, with new offered rates ranging from the low 3s to mid-4s. Regarding capital, Li Yu stated that share buybacks are a consideration if the stock price remains depressed, balanced against loan growth prospects and capital levels.

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    Andrew Terrell's questions to Preferred Bank (PFBC) leadership • Q3 2024

    Question

    Andrew Terrell asked for a breakdown of the floating-rate loan portfolio by index, clarification on the decline in interest-bearing demand deposits, and details on upcoming Q4 CD maturities and the near-term margin outlook.

    Answer

    Executives Li Yu and Edward Czajka estimated that 80-90% of floating-rate loans are tied to the prime rate. Czajka explained that the drop in interest-bearing demand deposits was a strategic shift from higher-cost brokered money market accounts to more favorably priced brokered CDs. He stated that $1.2 billion in CDs at an average rate of 5.07% will mature in Q4, with new CDs being priced between 3.45% and 4.5%, and projected a Q4 margin north of 3.85%.

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    Andrew Terrell's questions to Preferred Bank (PFBC) leadership • Q1 2024

    Question

    Andrew Terrell asked for more detail on loan growth expectations amid economic uncertainty and requested an updated appraisal and loan-to-value (LTV) for the $37 million nonperforming loan currently in bankruptcy.

    Answer

    Chairman and CEO Li Yu explained that due to tariff-related uncertainty, both the bank and its customers are in a 'wait and see' mode, which could temper loan growth, though the bank is prepared to lend when conditions improve. Executive Nick Pi confirmed the $37 million loan has a recent appraisal supporting a 71% LTV. Li Yu added that a $49 million cash offer for the property exists, which is sufficient to cover the bank's exposure.

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    Andrew Terrell's questions to Banner Corp (BANR) leadership

    Andrew Terrell's questions to Banner Corp (BANR) leadership • Q2 2025

    Question

    Andrew Terrell asked for the cost of the recently redeemed subordinated debt to gauge the impact on funding costs. He also inquired about the expense outlook for the second half of the year and sought an update on management's view of the M&A environment.

    Answer

    EVP & CFO Rob Butterfield stated the all-in cost of the redeemed debt was about 5.5%, and its replacement with FHLB advances at ~4.5% should be accretive. He guided that Q1's expense level is a better run-rate baseline, with H2 expenses expected to rise due to IT investments, partially offset by office consolidation. President & CEO Mark Grescovich affirmed that while M&A conversations have picked up, Banner remains focused on its successful organic growth strategy and does not feel compelled to do a deal.

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    Andrew Terrell's questions to Banner Corp (BANR) leadership • Q1 2025

    Question

    Andrew Terrell of Stephens sought to confirm the net interest margin outlook under different Fed rate scenarios, asked about the feasibility of reaching a 4% NIM in 2025, and requested an update on the expense run rate.

    Answer

    EVP & CFO Robert Butterfield confirmed the margin should trend higher with a Fed pause or gradual cuts, with compression only likely if the Fed cuts rates aggressively. While not providing a specific timeline for reaching a 4% NIM, he acknowledged it was feasible under the right conditions. He also suggested that the Q1 expense level is a decent run rate for the remainder of 2025.

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    Andrew Terrell's questions to Banner Corp (BANR) leadership • Q4 2024

    Question

    Andrew Terrell asked for guidance on expense growth in 2025, including any specific investment plans. He also sought further clarification on the Q1 net interest margin dynamics, questioning why the margin might not increase given the positive momentum from Q4.

    Answer

    CFO Robert Butterfield advised using Q4 as a baseline for 2025 expenses, anticipating increases from inflation and wages, and highlighted the new loan and deposit origination system as a key investment. Butterfield and CEO Mark J. Grescovich explained that the Q1 margin outlook is tempered because the guaranteed downward repricing of variable-rate loans will likely offset the more uncertain benefits from deposit cost reductions.

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    Andrew Terrell's questions to Banner Corp (BANR) leadership • Q3 2024

    Question

    Andrew Terrell asked about the expense run rate following a quarterly drop in compensation, the outlook for expense growth into 2025, spot deposit costs at the end of the period, and the bank's strategy for repricing deposits lower amid Fed rate cuts.

    Answer

    EVP and CFO Robert Butterfield explained that the Q3 expense drop was due to non-recurring items like a payroll tax refund and lower medical expenses, and he expects costs to normalize. For 2025, he anticipates normal inflationary increases plus potential spending on strategic investments. EVP and Chief Credit Officer Rich Arnold noted that September's cost of deposits was 162 basis points and that the bank has already lowered rates on CD specials and exception-priced deposits, with further reductions dependent on competitor actions.

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    Andrew Terrell's questions to Banc of California Inc (BANC) leadership

    Andrew Terrell's questions to Banc of California Inc (BANC) leadership • Q1 2025

    Question

    Andrew Terrell asked for more detail on the multifamily loans set to reprice over the next two years, specifically questioning if the Q1 increase in classifieds was a one-time event or if more downgrades should be expected as the portfolio matures.

    Answer

    President and CEO Jared Wolff indicated that the bank has "gotten ahead of it" with the recent downgrades, which resulted from a specific portfolio review project. He does not expect a large, continued uptick in migration from this portfolio. Instead, he framed the upcoming repricing of these loans as a positive tailwind for net interest income.

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    Andrew Terrell's questions to Banc of California Inc (BANC) leadership • Q4 2024

    Question

    Andrew Terrell asked about the potential for repositioning the held-to-maturity (HTM) securities portfolio, the size of the Q4 DTA benefit, the reason for the rise in nonaccrual loans, and the breakdown of recent charge-offs.

    Answer

    CEO Jared Wolff acknowledged that while the bank's intent to hold HTM securities hasn't changed, they are analyzing the implications of a potential repositioning. CFO Joseph Kauder quantified the DTA benefit at about $5 million. Wolff explained the nonaccrual increase was driven by a single $34 million relationship where the borrower passed away. He also specified that of the charge-offs, $14 million was from Life Sciences and the remainder was from the Civic portfolio.

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    Andrew Terrell's questions to Banc of California Inc (BANC) leadership • Q3 2024

    Question

    Andrew Terrell of Stephens Inc. requested the spot interest-bearing deposit cost at the end of Q3 to better understand recent repricing actions. He also asked about the level of client pushback received when lowering deposit rates and the potential for the deposit beta to move beyond 50%.

    Answer

    CFO Joe Kauder declined to provide a specific spot rate due to volatility from restructuring actions but suggested it was slightly higher than the quarterly average. CEO Jared Wolff acknowledged receiving client pushback on rate cuts, which is why the beta was not 100%. He expressed confidence that the bank is retaining true client relationships while shedding rate-sensitive 'hot money,' and noted the repricing process is iterative and ongoing.

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    Andrew Terrell's questions to Banc of California Inc (BANC) leadership • Q2 2024

    Question

    Andrew Terrell of Stephens Inc. asked whether the bank must reach its 11% CET1 target before repositioning its securities portfolio and sought clarification on the drivers behind the quarterly decline in interest-bearing checking deposits.

    Answer

    CEO Jared Wolff and CFO Joe Kauder clarified that they are prepared to reposition securities now, especially using capital from one-time events like the CIVIC sale, and that the 11% CET1 target is more of a threshold for other capital actions like buybacks. Regarding deposits, Wolff attributed the decline in interest checking to normal end-of-quarter client fund movements, while Kauder added that it also reflects the intentional runoff of higher-cost deposits as part of their optimization strategy.

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    Andrew Terrell's questions to Pacific Premier Bancorp Inc (PPBI) leadership

    Andrew Terrell's questions to Pacific Premier Bancorp Inc (PPBI) leadership • Q4 2024

    Question

    Andrew Terrell sought clarification on swap income, details on Q4 loan purchases including SNCs, and whether there is further room to lower deposit costs absent future Fed rate cuts.

    Answer

    CFO Ronald Nicolas clarified that swap income was about $4 million in Q4, with $2-3 million expected in Q1. He specified loan purchases were approximately $400 million in C&I and $115 million in single-family residential. CEO Steven Gardner confirmed some SNCs were included and stated there is still opportunity to lower deposit costs by growing quality relationships with low-cost transaction accounts. He also noted intense pricing competition in the HOA deposit space.

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    Andrew Terrell's questions to Pacific Premier Bancorp Inc (PPBI) leadership • Q3 2024

    Question

    Andrew Terrell asked how the outlook for declining interest rates influences balance sheet repositioning decisions, whether a high dividend payout ratio would preclude stock buybacks, and for clarification on securities portfolio yields.

    Answer

    CEO Steven Gardner explained that the rate outlook is one of many dynamic factors in considering a repositioning, alongside cost and payback period. He stated that a dividend payout ratio over 100% does not have regulatory restrictions on buybacks and that philosophically, the decision depends on the overall outlook. CFO Ronald Nicolas clarified that some 'noise' from specific dividends can affect the securities portfolio's spot yield versus its quarterly average.

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    Andrew Terrell's questions to Pacific Premier Bancorp Inc (PPBI) leadership • Q2 2024

    Question

    Andrew Terrell from Stephens inquired about the bank's willingness to reduce its CET1 capital ratio back towards the 13% level seen in late 2022, considering its current position is substantially higher.

    Answer

    CEO Steven Gardner responded that while a 13% CET1 ratio is healthy, any decision on capital levels depends on the broader economic outlook and portfolio risks. He acknowledged that Pacific Premier is likely the highest capitalized bank in its peer group, which provides significant flexibility and optionality. He assured that the board and management are continuously evaluating how to best deploy this capital.

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    Andrew Terrell's questions to Pacific Premier Bancorp Inc (PPBI) leadership • Q1 2024

    Question

    Andrew Terrell inquired about the cost of the remaining FHLB borrowings, the maturity schedule for swaps into 2025, the potential magnitude of seasonal deposit outflows in Q2, and what constitutes a normalized cash position.

    Answer

    CFO Ronald Nicolas specified the rate on the remaining $200 million FHLB tranche is 4.68% and confirmed swaps have a laddered maturity into 2025 and 2026. He also stated a normalized cash position would be around $500 million. Executive Steven Gardner explained that quantifying seasonal deposit outflows is difficult but noted upcoming client tax payments and HOA business seasonality as potential drivers.

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    Andrew Terrell's questions to Heritage Financial Corp (HFWA) leadership

    Andrew Terrell's questions to Heritage Financial Corp (HFWA) leadership • Q3 2024

    Question

    Andrew Terrell asked for a comparison of the rate on maturing CDs to current new CD pricing and sought more specific details on the bank's M&A focus regarding target size and geography.

    Answer

    CFO Donald Hinson estimated that new CDs could reprice 20-25 basis points lower than the 4.56% rate on maturing certificates. CEO Jeff Deuel identified the M&A sweet spot as banks with $500 million to $1 billion in assets, with a geographic focus on augmenting their I-5 corridor footprint, particularly in Oregon, and opportunistically expanding in Idaho.

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    Andrew Terrell's questions to Columbia Banking System Inc (COLB) leadership

    Andrew Terrell's questions to Columbia Banking System Inc (COLB) leadership • Q3 2024

    Question

    Andrew Terrell asked for details on loan yield repricing dynamics for fixed and adjustable-rate loans and questioned the trade-off between share buybacks and a potential early exit from discontinued loan portfolios.

    Answer

    CFO Ron Farnsworth directed the analyst to slide 20 for detailed repricing data. President Torran Nixon noted new commercial loan yields range from the mid-7s to mid-8s. CEO Clint Stein explained that an early exit of transactional loan portfolios is not currently attractive, as the payback period would be too long given the expectation of falling rates. He stated the best course is to let them amortize off organically, as there are no credit concerns.

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