Charlie Onfer

Charlie Onfer asked for more details on the specific resolution of NPAs that led to $11 million in charge-offs, confirming if they related to previously identified CRE and C&I credits. He also questioned the expected expense growth rate for the coming years and the sustainability of the mid-50s efficiency ratio.

Answer

President David Antolik confirmed the charge-offs were directly related to previously identified problem credits, leading to reduced specific reserves. He highlighted the 50% reduction in criticized and classified loans over three years as a positive indicator for future asset quality. Regarding expenses, David Antolik indicated that the mid-50s efficiency ratio is a sustainable target, with expected year-over-year expense increases around 3%, primarily driven by production-related FTE growth rather than infrastructure.