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    Brady Gailey

    Managing Director of Equity Research at KBW

    Brady Gailey is a Managing Director of Equity Research at Keefe, Bruyette & Woods (KBW), specializing in covering more than 75 publicly traded banks with a strong focus on strategic planning and capital raises. He has reported an impressive 77.36% success rate in his stock recommendations, delivering an average return of 10.72% and earning a 3.82-star analyst rating. Gailey began his finance career after earning a bachelor's degree in business administration from the University of Mississippi, later serving over 16 years at KBW before joining Ameris Bank in March 2024 as Executive Director of Corporate Development. A Chartered Financial Analyst (CFA) charterholder and FINRA-registered professional, Gailey has played a central role in over 20 bank IPOs and more than 50 secondary capital raises, cementing his reputation as a trusted expert in the banking sector.

    Brady Gailey's questions to IBTX leadership

    Brady Gailey's questions to IBTX leadership • Q4 2023

    Question

    Asked about the bank's sensitivity to falling interest rates, the definition of "historic profitability" metrics, and the outlook for M&A activity.

    Answer

    A 100 basis point rate cut would lead to a "meaningful double-digit pickup in net income." Historic profitability is defined as a NIM in the mid-3% range (3.50-3.60%), a ~1.20-1.25% ROA, and a 15-16% ROTCE, which they aim to achieve by the second half of 2025. The bank remains interested in M&A and expects activity could increase in the latter half of 2024, with plans to participate.

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