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George Gleason, Chairman and CEO, and Jake Munn, President of Corporate and Institutional Banking, detailed a disciplined, revenue-gated approach to CIB staff expansion, focusing on recruiting top-tier veteran talent. Jake Munn highlighted growth in specific CIB groups like Natural Resources, Corporate Banking and Sponsored Finance (CBSF), and Asset-Based Lending Group (ABLG), along with the optimization of Fund Finance. He emphasized CIB's inherent diversification across 40-45 unique industries and the commitment to high-quality hires that align with Bank OZK's credit culture. They reiterated that CIB is in its early stages but is expected to show continued growth and momentum, with careful management of expenses and efficiency.

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Chairman & CEO George Gleason clarified that he was referring to an accelerating trend over the next several quarters, rather than guaranteeing that Q3's dollar growth would exceed Q2's. President of CIB Jake Munn emphasized the group's selective, credit-first approach, noting a pull-through rate of only 12% on over $7 billion of opportunities reviewed in Q2.

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Chairman and CEO George Gleason explained that the bank has consistently built its ACL to address a progression of risks, with provisions significantly exceeding net losses over the past 11 quarters. CFO Tim Hicks added that the bank increased its weighting to downside economic scenarios in Q1. Regarding the Los Angeles property, Gleason confirmed it is back under contract with the original sponsor, who paid additional fees and earnest money, with a new closing deadline of June 30 and a potential extension to September 30.

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Chairman and CEO George Gleason confirmed that CIB yields are generally lower than RESG but are augmented by fees and deposits. He expects CIB growth to be less lumpy than RESG due to greater diversification and smaller average deal sizes, and he anticipates fee income will ramp up steadily. Regarding the OREO property, Gleason explained the prospective buyer missed a deadline, the contract was canceled, and the bank is now considering either reinstating the contract on improved terms or remarketing the property.

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CEO George Gleason stated that provisioning will remain a disciplined, loan-by-loan process and does not expect a material difference in required reserves for CIB given the conservative structuring. He reiterated the goal for RESG to be under 50% of the loan book in 2-3 years due to faster growth in other lines. CFO Tim Hicks clarified NIM scenarios, and also noted no change in the M&A outlook, with a continued focus on strong organic growth.

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CEO Stephen Tipton reiterated expectations for margin stability due to proactive management, despite asset sensitivity. He detailed fixed-rate loan maturities for Q4 2025 ($478 million at 6.17%) and 2026 ($1.25 billion at 5.5%). President of Centennial Commercial Finance Group Christopher Poulton clarified event income, noting the lawsuit gain would largely conclude in Q4. Stephen Tipton confirmed a full quarter benefit from sub debt payoffs in Q4. Kevin Hester discussed Q3 payoffs ($750M-$800M) and healthy community bank pipelines, particularly in Florida and Texas. Chairman John Allison confirmed the M&A target is a good company with ALCI issues that Home BancShares can help resolve.

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Chairman & CEO John Allison specified M&A targets are in the $2-6 billion asset range. CEO of Centennial Bank, Stephen Tipton, quantified the sub-debt payoff benefit to NIM at 5-6 bps and detailed approximately $4.5 million in non-recurring Q2 expenses. President & Chief Lending Officer Kevin Hester confirmed a ~$12 million non-accrual loan resolution is now expected in Q3. Mr. Allison added that while comfortable with the current reserve, he aims to build it toward 2% when possible.

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Executive Kevin Hester projected another $12 million in NPA resolutions in Q2, with further significant reductions dependent on the performance of memory care credits, which could resolve in Q3 or Q4. He described the loan pipeline as 'pretty good' but noted elevated payoffs are a headwind. Executive John Tipton reported the core margin exited March at 4.38%, slightly below the quarterly average due to excess cash, and identified deposit competition as the biggest risk to maintaining the margin.

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Chairman John Allison confirmed that nothing is imminent on the M&A front after pausing a deal to be transparent, but the bank remains open to opportunities in Florida, Texas, and the Carolinas. He projected negligible provisioning in the short term, with a 12-18 month timeline to rebuild reserves to the 2% target. Chief Lending Officer Kevin Hester outlined expectations for $30-40M in NPA reductions over the next couple of quarters and noted that significant recoveries would occur monthly over several years.

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CEO Stephen Tipton noted about $3 billion in liabilities are indexed to benchmarks like the T-Bill or Fed Funds. Chief Lending Officer Kevin Hester added that while loan renewals should be in the 8% range, competition is emerging with fixed rates in the high 6s. Chairman John Allison said M&A targets include one in-market and one out-of-market, and that a $111 million quarterly expense level is a realistic run rate.

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CEO Terry Turner confirmed the general expectation to operate at peer median-like CRE numbers, acknowledging a potential temporary blip at the transaction's start due to tangible book value dilution, but with a quick earn-back. He advised looking at past quarters' trends for loan originations and applying consistent betas, while CFO Harold Carpenter added the intent to maintain or grow deposit betas through anticipated rate cuts.

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President and CEO Terry Turner confirmed the expectation to operate at "pure median-like numbers" for CRE concentrations, with any initial post-merger blip being temporary. CFO Harold Carpenter advised reviewing past quarterly trends for loan originations and applying consistent betas, while also stating the intention to maintain or grow deposit betas through anticipated rate cuts.

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CFO Harold Carpenter suggested that BHG's quarterly contribution would likely remain flattish from the Q2 level through the rest of the year. President & CEO Terry Turner explained that hiring is a continuous process across their entire footprint, and new market entries are opportunistic, driven by finding the right team. For the NIM, Carpenter stated that the primary near-term catalyst for more meaningful expansion would be a rate decrease from the Federal Reserve.

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CFO Harold Carpenter suggested that BHG's contribution would likely remain 'flattish' from the Q2 level for the remainder of the year. President & CEO Terry Turner emphasized that hiring is continuous across the entire footprint, with new market entries being opportunistic. Carpenter identified a Federal Reserve rate decrease as the key near-term catalyst required for more significant NIM expansion.

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CFO Harold Carpenter indicated that BHG's quarterly contribution would likely remain 'flattish' compared to the Q2 level for the remainder of the year. CEO Terry Turner explained that hiring is continuous everywhere, but new market entries are catalyzed by finding the right team. Carpenter reiterated that a near-term catalyst for significant NIM expansion would be a Fed rate decrease, while a steeper yield curve is necessary for longer-term margin improvement.

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M. Turner (Executive) clarified that while new market entry is always a possibility driven by talent availability, its mention was to reinforce the firm's ongoing hiring strategy, not to signal an imminent move. He and Harold Carpenter (Executive) explained that CRE concentrations are still being reduced and meaningful growth from that category is not expected until late in the year or early next year. Carpenter guided for the tax rate to remain similar to Q1's rate.

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Harold Carpenter (executive) projected that a steeper curve could lead to a 10-20 basis point NIM improvement over the year and identified about $1.5-2.0 million in lumpy fee income items in Q4. M. Turner (executive) detailed that deposit growth is driven by specialized verticals and a treasury management focus on operating accounts. He also noted that while recruiting is successful across the franchise, newer markets like Jacksonville and Washington D.C. yield higher percentage growth rates.

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Executive Harold Carpenter specified that about 14% of total loans are tied to prime and reprice daily with rate changes. He expects the loan mix to remain focused away from construction and CRE until the latter half of 2025. He attributed strong deposit growth to the success of specialized deposit verticals. For housekeeping, Carpenter confirmed the two non-recurring fee items mentioned earlier and stated that the firm's effective tax rate (ETR) should be around 20%.

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CFO Keene Turner projected the margin would be down slightly in Q3 but has an upward bias long-term. President Scott Goodman described the new Texas team as a team of three with no non-competes, already building a pipeline. CEO James Lally noted that an expanding market should allow for both growth and pricing discipline. Turner characterized SBA sales as an opportunistic tool being tested this year. Lally confirmed the priority is the branch integration, though they benefit from M&A disruption in their markets.

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CFO and COO Keene Turner confirmed the long-term margin outlook is accurate and projected the pro forma TCE ratio would be around 8.5%. Executive James Lally clarified that the tax credit loan decline was a normal seasonal paydown, not a sale. Turner explained the reserve build was a conservative move to be prudent amid economic turbulence and take advantage of a strong earnings quarter.

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CFO & COO Keene Turner explained that the impact of the September rate cut on deposit expenses will begin in Q4. He projected that with five more cuts, NII dollars would see a slight near-term decline before recovering, but pretax income could remain neutral due to offsetting expense reductions. CEO James Lally confirmed that given the new talent being onboarded, the company expects to return to mid-single-digit loan growth in 2025.

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CFO Brian Spielmann explained that replacing short-term wholesale advances with core deposits had a neutral impact on the net interest margin, as the weighted average rates were consistent. CEO Corey Chambas stated the goal is to grow the specialty lending mix, which has been as high as 26%, toward 25% in the next year and potentially 30% over the long term. Spielmann confirmed there were no material changes in criticized loan trends.

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CFO Brian Spielmann explained the NIM range of 3.60%-3.65% was maintained due to the inherent volatility of 'fees in lieu of interest,' though he guided toward the higher end of that range. Chief Credit Officer Bradley Quade identified the transportation sector within equipment finance as the area most likely to feel pressure in a downturn but noted much of that softness is already factored in. CEO Corey Chambas confirmed the current expense level is a good run rate, emphasizing the goal of achieving annual positive operating leverage and the ability to adjust spending if revenue headwinds arise.

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CFO Brian Spielmann affirmed the bank's strategy to remain interest rate neutral, valuing margin stability over betting on rate movements. He noted deposit competition could pressure the margin lower, while a higher mix of C&I lending, like Asset-Based Lending, could push it higher. He confirmed the niche lending portfolio is stable at its 25% target. For compensation, he guided to a Q4 run-rate by adding back the $700k in Q3 adjustments. Executive Corey Chambas projected mid-to-high single-digit comp growth for 2025. Both executives expressed optimism for SBIC income in 2025, expecting it to be similar to 2023's strong performance due to realization opportunities.

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Management is optimistic about mortgage growth, potentially reaching $400M with favorable rates, and expects stable gain-on-sale margins around 2.15-2.25%. They anticipate continued loan growth driven by the Columbus market and market disruption, supported by a solid pipeline. The net interest margin is projected to expand by another 10 bps to around 3.70% before stabilizing. They foresee improvements in credit quality with resolutions of nonperforming loans, likely leading to a lower provision in the second half of the year. On capital, they plan to slow buybacks to preserve capital for organic growth and potential M&A opportunities. The expense base is considered stable, though variable compensation will rise with performance.

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CEO Mark Klein expressed optimism for mortgage originations reaching $400 million annually with favorable rates and highlighted strong loan growth potential from market disruption, particularly in Columbus. CFO Anthony Cosentino projected the gain on sale margin would stabilize between 2.15% and 2.25%, and that the NIM could expand another 10 basis points before peaking around 3.70%. Cosentino also noted that resolving certain nonperforming credits in Q3 should benefit earnings and that the pace of share buybacks would likely slow to preserve capital for strategic opportunities. Chief Lending Officer Steven Walz affirmed the sustainability of the current loan growth run rate despite competitive pressures.

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Executive Mark Klein projected 2025 mortgage originations could reach $400 million, a significant increase from 2024's $261 million, driven by new hires primarily in Cincinnati and Northwest Ohio. Klein and executive Steven Walz expressed optimism for returning to high single-digit loan growth, supported by a strong pipeline in Columbus with approximately $30 million in approved loans yet to be drawn. CFO Anthony Cosentino stated that the Q4 net interest margin of 3.35% is a baseline, anticipating it to expand to the 3.50-3.55% range by year-end 2025, boosted by the Marblehead acquisition which is expected to add $0.15-$0.20 in EPS. Cosentino also noted the deal provides about $30-32 million in fresh liquidity. Regarding credit, Steven Walz and Anthony Cosentino confirmed the current nonperforming loan level is a high watermark, with resolutions expected in H1 2025 with minimal financial impact. Finally, Cosentino outlined an expense growth forecast of 2.5% to 3.5% over the Q4 run rate, emphasizing a renewed focus on achieving positive operating leverage.

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Chairman, President and CEO Mark Klein detailed recent hires, including two MLOs in Cincinnati and new leadership in Wealth Management. He expressed optimism for high single-digit loan growth and a 20-30% increase in 2025 mortgage volume. CFO Tony Cosentino added that the net interest margin, which bottomed in Q2, is expected to gradually improve to the 3.30-3.35% range by the end of 2025, driven by loan growth and the accretive Marblehead acquisition. Cosentino also noted that the Q3 expense level of $11 million is a solid baseline, with future expenses managed in line with revenue growth.

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CEO Charles Reeves indicated that $418 million in fixed-rate loans and $180 million in securities cash flows are expected over the next 12 months, with a securities portfolio target of 15-20% of assets. He highlighted wealth management as a key fee income opportunity. For M&A, he outlined a focus on geography (IA, MN, CO), size ($0.5B-$2B), and strategic fit, stating the company is proving its earnings momentum before actively pursuing deals.

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CEO Charles Reeves detailed that $418 million in loans and $180 million in securities are set to reprice in the next year, with a target securities portfolio size of 15-20% of assets. He highlighted wealth management as a key growth area and noted SBA gain-on-sale income has doubled year-over-year. Regarding M&A, he reiterated a focus on specific geographies and digestible targets that enhance the franchise, pending continued strong performance.

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CFO Barry Ray reiterated the full-year 2025 expense guidance of $145 million to $147 million. President and COO Len Devaisher highlighted treasury management and interest rate swaps as other key fee income drivers, projecting mid-to-high single-digit growth for total fee income. CEO Charles Reeves stated the company is targeting a Return on Average Assets (ROA) in the 1.10% to 1.15% range as an exit rate for 2025, driven by gradual margin expansion.

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Chief Credit Officer Gary Sims identified the downgraded credits as a $17 million relationship in higher education and a $21 million relationship in gasoline retail/wholesale. CEO Charles Reeves and EVP/CFO Barry Ray stated that they expect margin expansion even in a flat curve environment due to asset repricing. Ray noted ~$375 million in loans are repricing from an average rate of 4.38% over the next year. President and COO Len Devaisher expects SBA income to be a sustainable contributor. Barry Ray projected a 2025 ROA of above 1%, potentially ending the year near 1.10%.

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EVP, CFO & Treasurer Thomas Bell confirmed that the cost savings from the First Security deal are fully baked into the Q2 numbers. President & Director Alberto Paracchini noted that while the efficiency ratio can fluctuate with revenue, the focus is on driving the NIE to average asset ratio down over time. Regarding buybacks, Mr. Paracchini reiterated their opportunistic approach, pointing to the recent block purchase as an example. Mr. Bell provided specifics on portfolio cash flows and loan repricing, adding that deposit costs are expected to be flat to slightly down.

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CFO Thomas J. Bell highlighted the bank's reduced asset sensitivity and noted the short four-month duration of the CD book provides repricing opportunities. Regarding the acquisition, both Bell and President Alberto Paracchini agreed that while Q2 results would be relatively clean excluding one-time merger charges, the third quarter would represent the first fully clean quarter from an expense standpoint.

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CFO and Treasurer Thomas J. Bell stated the exit margin was around 4% and confirmed the 50 basis point rate cut would impact the SBA portfolio starting January 1. President Alberto Paracchini commented that market disruption from potential M&A is a welcome opportunity for Byline. Regarding fee income, management explained the $5 million quarterly gain-on-sale guidance is a conservative baseline, and there are opportunities for growth in other areas like customer swaps and treasury management to grow overall fee income.

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President Alberto Paracchini stated that while the bank won't change its credit philosophy, growth could accelerate by attracting new banking teams or if pay-off activity moderates. On M&A, he confirmed Byline's focus remains on deals ranging from ~$350 million to a couple of billion dollars. CFO Thomas J. Bell noted that asset pricing has remained stable, with new loans priced around SOFR+300 or Prime-50. Bell quantified the BTFP unwind, stating it should add approximately 6 to 7 basis points to the NIM in the coming quarter.

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EVP & CFO Nick Anderson indicated that expanding NIM into 2026 would be challenging without Fed rate cuts. He also detailed plans to call and replace $70 million in subordinated debt in September at a favorable rate. President & CEO Todd Gipple added that loan growth will be driven by the LIHTC business and that while the company is open to M&A, its 'strike zone is very tight,' with a focus on strong organic growth.

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EVP & CFO Nick Anderson stated that further NIM expansion into 2026 would be challenging without Fed rate cuts. He also confirmed plans to call and replace $70 million of subordinated debt in September at an expected rate in the low 7s. President & CEO Todd Gipple attributed loan growth to CRE and LIHTC, noting that while M&A conversations are up industry-wide, QCRH has a very tight strike zone and remains focused on its strong organic growth opportunities.

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EVP & CFO Nick Anderson indicated that further NIM expansion would be challenging without Fed rate cuts but that the team remains focused on funding costs. He also detailed plans to call and replace $70 million of subordinated debt in September at a favorable fixed rate. President & CEO Todd Gipple attributed loan growth to CRE and LITEK, with C&I seeing payoffs. He reiterated the 8-10% gross loan growth guidance, driven largely by LITEK. On M&A, Gipple stated that while conversations are happening, QCRH has a very tight strike zone and is focused on strong organic growth.

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Executive Larry Helling stated that a detailed portfolio review identified only two high-risk companies ($6 million total credit) exposed to China tariffs, as most clients diversified their supply chains years ago. Executive Todd Gipple reaffirmed that a 25 bps rate cut would boost NIM by 2-3 bps and noted strong deposit beta performance. He guided Q2 NIM to be static to up 4 bps, driven by funding cost reductions. Gipple indicated a securitization is dependent on LIHTC production pace, making a Q4 2025 or Q1 2026 timeline most likely, and confirmed a continued focus on core deposit growth.

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Executive Larry Helling stated that due to market uncertainty, the priority is to retain capital and focus on organic growth, making M&A and buybacks low priorities. Executive Todd Gipple quantified the balance sheet's liability sensitivity at approximately $600 million and noted strong deposit beta performance. Helling later projected modest 2-5% growth for the core commercial portfolio due to client caution and said the company aims to gradually lower its loan-to-deposit ratio to the low 90s over the next couple of years.

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COO & CFO Bradley Adams stated that in a flat rate environment, the margin would be stable, durable, and slightly higher due to Evergreen. He raised his estimate for the long-term margin floor to approximately 4.25%. Adams also expressed comfort with achieving a Return on Assets (ROA) above 1.50% and confirmed they are open to further share buybacks. He also noted optimism for loan growth, expecting a strong third quarter.

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Executive Bradley Adams stated that strong deposit flows and the pending Evergreen merger have raised the margin floor by approximately 10 basis points, making the bank structurally more profitable, especially in a high and flat yield curve environment. Executive James Eccher added that while the magnitude of credit improvement seen in Q1 may not be repeated, the goal is to continue making incremental improvements and work nonperforming asset levels even lower throughout the year.

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Executive Bradley Adams specified the M&A target size is between $500 million and $4 billion in assets and stated the NIM would be "substantially better" than the $4.40-$4.50 range if rates remain stable. Executive James Eccher highlighted significant progress in reducing nonaccrual and special mention loans, expecting further improvement from OREO sales and seeing no new major credit issues.

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Executive James Eccher confirmed that total criticized loans were flat, as a drop in substandard loans was offset by a rise in special mention. Executive Bradley Adams stated the current valuation would not prevent a buyback, projected a 'modestly down' margin if rates hold steady, and humorously provided a highly specific tax rate forecast of 24.7635%. He also noted the goal for balance sheet optimization is to earn a spread over 4% on marginal growth.

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CFO John Stewart indicated that while expenses would likely see a normal uplift in 2026, the approach would remain disciplined. Management noted the provision will be driven by loan growth and economic forecasts. CEO Thomas Prame stated that M&A remains a key part of the strategy, with a focus on contiguous markets in Indiana and Michigan, likely targeting banks in the $500 million to $1 billion+ asset range.

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EVP & Chief Commercial Banking Officer Lynn Kerber stated the commercial loan growth forecast remains in the mid-to-high single digits, supported by a steady core pipeline and a lift from the equipment finance division. Executive Thomas Prame explained the deposit mix shift is due to clients locking in attractive CD rates, not a loss of relationships. EVP & CFO John Stewart recapped that the company paid down $330 million in borrowings, exceeding its $200 million plan and getting ahead of schedule.

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John Stewart, EVP and CFO, confirmed the new mid-teens tax rate would be ratable after a step-up in Q1. Executive Thomas Prame stated M&A is 'definitely on the radar,' focusing on culturally aligned banks of an appropriate size in their core Michigan and Indiana markets. Lynn Kerber, EVP and Chief Commercial Banking Officer, noted the loan portfolio focus is on organic growth in core segments, not further remixing. She projected the equipment finance division would produce $150M-$175M in 2025 and said the overall commercial annualized run rate is the best predictor for future growth.

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Lynn Kerber, EVP and Chief Commercial Banking Officer, described the commercial pipeline as steady and noted the equipment finance division had reached over $85 million in footings, meeting expectations. Executive Thomas Prame estimated the indirect auto portfolio would continue to run off by $30-$35 million per quarter. He also indicated that mortgage income would likely see a seasonal decline in Q4 and Q1 before recovering, following a strong Q3 driven by new leadership and improved productivity.

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EVP & CFO Michele Kawiecki confirmed deposit costs could drift higher depending on competition and projected the tax rate might approach 13%. She also stated about $200 million in fixed-rate loans at ~5% will reprice in H2 2025. President Michael Stewart attributed loan growth optimism to strong Midwest economic activity and market share gains, clarifying that recent strategic hires have yet to materially contribute to results.

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CFO Michele Kawiecki stated that while models suggest 2-3 bps of margin compression per 25 bps cut, the bank's ability to lower deposit costs could lead to a stable margin. On tariffs, Chief Credit Officer John Martin and Executive Mark Hardwick explained it's too early to quantify the impact but their teams are actively engaging with borrowers. Hardwick confirmed the company will be active with its share repurchase program. Kawiecki guided to an effective tax rate between 13% and 14%.

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President Mike Stewart noted that new construction real estate production has been strong all year and that rate reductions could help both new projects and existing assets. CFO Michele Kawiecki confirmed the expectation to grow net interest income in 2025. Chief Credit Officer John Martin stated that special mention loans moved up in tandem with classifieds but at a slower rate. Regarding M&A, CEO Mark Hardwick said that while First Merchants is ready, he believes most potential sellers will wait for the Fed's rate cycle to conclude.

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Chairman, President & CEO Vincent J. Delie reiterated a strong focus on organic growth, downplaying the immediate focus on M&A of any size and highlighting the company's successful organic growth model. An unnamed executive addressed the long-term margin, stating there is a "great opportunity" for it to head higher, driven by loan and security repricing and the benefits of a better rate environment for deposit generation.

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CFO Vincent J. Calabrese noted that new loans originated in Q4 had a blended rate of around 6.5%, which remains accretive to the overall portfolio yield. CEO Vincent J. Delie emphasized that the priority is optimal capital deployment, with a primary focus on strong internal growth. While M&A is a possibility under strict criteria (quick earn-back, no deposit franchise dilution), he also highlighted that share repurchases are a consideration given the bank's strong 10.6% CET1 ratio and attractive valuation.

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CEO Vincent J. Delie and CCO Gary L. Guerrieri noted that while the DDA mix is down, the absolute balance has been stable around $10 billion and they expect to grow it over time. They are not yet seeing a pickup in loan demand, as clients are in a 'wait and see' mode. CFO Vincent J. Calabrese confirmed the bank is moving toward a neutral asset sensitivity position. Delie added that recent hiring has focused on uptiering talent and building out risk and operations efficiency teams.

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The executive detailed a significant positive repricing opportunity with about $320 million in low-yielding assets maturing by the end of 2024, to be replaced with higher-yielding loans. Loan growth is expected to be modest after a Q4 decline. Federal government lending is paused. Funding cost pressures have eased but are being monitored. Expenses are expected to normalize around $40 million annually, and the bank is targeting a sustainable $1 EPS and a 9.5-10% ROE on required capital in 2024.

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