Charlie

Charlie inquired about the specific resolution of non-performing assets (NPAs) that led to the $11 million in charge-offs, asking if they were related to previously identified commercial real estate (CRE) and commercial & industrial (C&I) credits. He also sought clarification on expense growth expectations, future initiatives, and the sustainability of the efficiency ratio in the mid-50s.

Answer

President Dave Antolik confirmed that the charge-offs were directly related to previously identified problem credits, noting new NPL formations but emphasizing significant progress in reducing criticized and classified (C&C) loans by 50% over three years. He projected a 3% year-over-year expense increase, with FTE growth primarily in production-related roles, and affirmed that a mid-50s efficiency ratio is a sustainable target.