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CEO Thomas Shafer clarified that the primary focus remains on reducing the commercial real estate (CRE) concentration and exiting the HFS portfolio, with no plans to accelerate sales of other assets. Regarding private banking, Mr. Shafer expressed strong optimism, noting a program has been in development for four months and they are actively recruiting a new leader. While some early cross-sell success has occurred, he indicated that the new leader would finalize the strategy's details.

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CEO Thomas Shafer stated his initial focus is on reviewing methodologies and establishing high standards appropriate for the bank's size to ensure long-term sustainability. Executive Jamie Britton outlined a multi-pronged funding strategy, including continued sales of held-for-sale loans, investments in new commercial bankers to drive core deposit growth, and expected runoff from multifamily loan rate resets. Britton also confirmed strong demand for the held-for-sale portfolio, with over 30 parties under NDA. Shafer clarified the small multifamily loss was an isolated incident in San Francisco involving unique property management issues after the owner's death and is not indicative of a broader trend.

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Executive Jamie Britton explained that the company will be methodical with the loan sales to ensure best execution, noting a ~$500 million securitization is planned for Q4 2024, with other sales and securitizations possible in 2025. Executive Scott Kavanaugh confirmed that ongoing sales conversations are at better pricing than the initial discount. Regarding ECR deposits, Kavanaugh and Executive Christopher Naghibi stated that rate adjustments are instantaneous with Fed moves, with 100% betas on both increases and cuts. Naghibi added that the C&I growth engine is a priority, with growth expected to accelerate into mid-2025 as new bankers are onboarded in key markets.

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President & CEO Gregory Garrabrants responded that new business verticals are providing favorably priced deposits, but acknowledged that very strong loan growth could put some pressure on funding costs. He identified the securities business as the main driver for fee income growth but noted it would be challenging for it to grow at the same pace as net interest income. Regarding capital, Mr. Garrabrants stated that organic growth is the top priority, followed by evaluating synergistic M&A opportunities in specialty finance and fee-income businesses, and opportunistic share repurchases.

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President and CEO Greg Garrabrants noted strong originations of $3.5 billion and improving pipelines in single-family and multifamily due to competitive exits and a better yield curve environment. He stated that expense growth must be managed with discipline until sustainable asset growth returns, highlighting productivity gains from technology like low-code platforms and AI. Regarding M&A, Garrabrants mentioned a preference for specialty finance businesses that add a unique niche, clarifying that the new ATM shelf is a proactive measure for potential opportunities and not an indication of an imminent deal.

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President and CEO Greg Garrabrants highlighted C&I verticals as key drivers for deposit growth and noted that while there was some consumer attrition from repricing, the category still grew. He provided updates on new verticals, stating that tech/VC and middle market teams are new but already bringing in deposits, while entertainment and marine floor plan are gaining traction. He confirmed the white-label banking platform is helping drive deposit growth through advisers and that feedback is being used to refine new products like the 'Axos One' account.

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President & Group Chief Risk Officer Michael Schrum and Group CFO Craig Bridgewater explained that the bank is reinvesting maturities into a mix of 15-year mortgage-backed securities and a 2-5 year U.S. Treasury ladder, shortening duration while capturing higher rates. Bridgewater confirmed some non-core deposits remain but inflows have offset some outflows, with Michael Schrum noting that FX movements masked some of the underlying activity. Chairman & CEO Michael Collins clarified that the capital priority is dividends, followed by M&A and then buybacks, highlighting a recent dividend increase as a rebalancing effort after years of significant share repurchases.

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Michael Schrum, President and Group Chief Risk Officer, addressed credit, noting pressure in Bermuda and London is manageable due to low LTVs and is primarily related to debt service ratios and policy changes, not systemic credit issues. Michael Collins, Chairman and CEO, highlighted successful growth in the Channel Islands and the smooth integration of the Credit Suisse trust business in Singapore. On M&A, both executives emphasized a disciplined focus on private trust businesses with high AML standards. Craig Bridgewater, Group CFO, explained that while recent rate cuts pressure loan yields, reinvestments into higher-yielding securities should support continued, albeit slower, NIM expansion.

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Michael Schrum, President and Group Chief Risk Officer, explained that deposit levels are a 'business as usual' story, though he identified two specific large deposits totaling a few hundred million that are expected to flow out in the first half of the year. Michael Collins, Chairman and CEO, added that the deposit base is now less concentrated and stickier. Regarding the margin, Craig Bridgewater, Group CFO, projected a slow expansion of NIM in the coming quarters, driven by active management of deposit costs and reinvesting in the securities portfolio at significantly higher yields. On capital, Michael Schrum outlined priorities as the dividend, supporting organic growth, and M&A, noting that buybacks are a 'risk-free trade' at current valuations and the bank is not holding capital for an imminent deal.

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Group CFO Craig Bridgewater explained that while some at-risk deposits remain, balances have held up better than expected, partly due to FX tailwinds and new deposit gathering in the Channel Islands. President and Group Chief Risk Officer Michael Schrum addressed credit, noting a legacy hospitality facility is working through a sale process and some London loans have delayed repayments, but the portfolio remains well-collateralized. Chairman and CEO Michael Collins added that property valuations in their key island markets remain strong due to supply shortages. On the trust business, Collins highlighted the successful integration and growth of the Singapore operations acquired from Credit Suisse.

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Chairman, President & CEO Arnold Martines and Vice Chairman & COO David Morimoto confirmed that muted first-half growth was anticipated and reiterated a low single-digit full-year growth target, supported by a healthy pipeline with some Q2 deals slipping into Q3. Morimoto noted that deposit growth was driven by relationship-based prospecting. EVP & CFO Dayna Matsumoto provided a quarterly expense guidance of $43.5 million to $44.5 million. Senior EVP & Chief Risk Officer Ralph Mesick clarified that the quarter's large charge-off was an idiosyncratic event and not indicative of a systemic trend, with underlying credit metrics remaining strong.

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David Morimoto, Vice Chairman and COO, reiterated the full-year guidance of low to mid-single-digit loan growth, focused on commercial and construction lending. Ralph Mesick, SEVP and Chief Risk Officer, noted that impacted industries represent about 10% of the loan book and expressed confidence in customers' ability to handle short-term turbulence. Dayna Matsumoto, EVP and CFO, stated that deposit costs should continue to trend down gradually and that the bank is evaluating how to best optimize and deploy its strong capital, with priorities including the dividend, organic growth, and share repurchases.

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Chairman, President and CEO Arnold Martines confirmed the positive loan growth outlook, driven by proactive efforts in the commercial and CRE segments. SVP & CFO David Morimoto detailed the deposit growth, noting a seasonal DDA benefit, and provided expense guidance aimed at positive operating leverage. SVP & Chief Risk Officer Ralph Mesick clarified that recent C&I losses were idiosyncratic and that overall credit trends are positive. Morimoto also outlined capital priorities, including the dividend, buybacks, and organic growth, emphasizing the bank's strong capital position.

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Arnold Martines, Chairman, President and CEO, attributed the loan decline to a market-wide demand issue caused by high interest rates, not a change in the bank's lending appetite, and noted that rising building permits signal future pent-up demand. David Morimoto, SVP and CFO, added that the bank is open to share repurchases as its capital ratios are healthy. Morimoto detailed that new loan yields were approximately 7.75% in Q3, significantly higher than the portfolio yield of 4.90%, with future growth expected in commercial real estate and C&I. He also stated the balance sheet is now neutral to interest rate risk and sees a path for the NIM to return to the 3.30% range.

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Chief Credit Officer Tom Dolan noted that organic growth was solid due to seasonal strength and strong production yields of 7.35%, with competition focused on pricing rather than structure. President & CEO Randall Chesler explained that upcoming hiring is primarily for back-office infrastructure, and confirmed the Guaranty Bancshares team is actively monitoring talent opportunities in the dynamic Texas market.

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Chief Credit Officer Tom Dolan attributed strong organic growth to seasonality and increased line utilization, noting that customer optimism is rising and competitive pressures are primarily on pricing, not structure. President & CEO Randall Chesler clarified that upcoming hiring is mainly for back-office and infrastructure roles to support growth, while also acknowledging that the Guaranty Bancshares team is monitoring potential talent acquisition opportunities in Texas amid market disruption.

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Chief Credit Administrator Tom Dolan noted that since their portfolio lacks multinational companies, they focus on domestic price impacts but are not seeing widespread project cancellations. He stated that competition is present but has not become irrational on structure or underwriting. He confirmed new loan spreads are holding around 300 basis points over the 5-year curve, with Q1 origination yields near 7.40%.

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Treasurer Byron Pollan confirmed the 2025 NIM guidance of 3.20%-3.25% includes the Bank of Idaho acquisition. He noted customer reception to rate cuts has been understanding and sees further cost reduction opportunities in the CD portfolio, while attributing Q4 noninterest-bearing deposit outflows to seasonality. Chief Credit Administrator Tom Dolan and Executive Randall Chesler both affirmed that credit remains strong with no material negative trends.

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Chief Credit Administrator Tom Dolan attributed slower loan growth to a combination of weaker demand and elevated payoffs from construction projects. Regarding repricing, Treasurer Byron Pollan confirmed securities portfolio cash flows of $250 million per quarter, with new loan yields in the mid-to-upper 7s creating a positive lift. CFO Ron Copher stated the company pursues a dual strategy of organic expansion and M&A to build scale in its fast-growing eight-state footprint, keeping options open across all markets rather than prioritizing one.

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Chairman, President & CEO Charles Shaffer attributed the robust loan growth to successful talent acquisition from larger institutions and strong underlying economic demand in Florida, while acknowledging that the competitive landscape is intensifying. EVP, Treasurer & Director - IR Michael Young explained that after proactively managing deposit costs down, the focus will shift to growing core operating accounts and leveraging seasonal tailwinds. Shaffer emphasized that deposit growth is relationship-based. Young added that the long-term strategy involves using liquidity from the Heartland and Villages acquisitions to remix the balance sheet towards higher loan-to-deposit ratios, enhancing profitability.

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CEO Charles Shaffer reported that the loan pipeline remains solid with no fallout yet, though it's too early to determine the full impact of tariffs. He affirmed no major shifts in credit policy, just deeper diligence on new credits. Treasurer Michael Young added that growth is supported by new bankers bringing established relationships. Young also explained the fee income guide reflects seasonal factors and the absence of prior-quarter one-time gains, with underlying growth in areas like treasury management.

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CEO Charles Shaffer attributed the growth outlook primarily to investments in talent, noting that demand remains reasonably strong. He confirmed continued opportunities for hiring but emphasized balancing growth with profitability. Treasurer Michael Young stated the bank expects to show positive operating leverage in 2025, driven by NII dynamics, and aims to manage within a 55% to 60% efficiency ratio range as it shifts toward an organic growth model.

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CEO Charles Shaffer stated that loan production is balanced at about 50/50 between CRE and C&I and expects this to continue. He noted that clients have accepted lower deposit rates without pushback. Treasurer Michael Young added that new deposit add-on rates were in the low 3s. Regarding the Florida economy, Shaffer acknowledged insurance cost challenges but expressed confidence in the state's resilience and ability to recover from the storms.

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Senior EVP & CFO Paul Egge noted that new loan originations nearly doubled in Q2, setting a baseline for future growth. He described a measured approach to deposit pricing and success in acquiring new customers. On expenses, Egge stated the strategy is to 'hold the line where we can' to maintain flexibility for opportunistic spending. Executive Chairman & CEO Robert Franklin added that the bank is always open to hiring new talent to drive growth.

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CEO Bob Franklin and President Ramon Vitulli addressed loan growth, explaining a strategic effort to reconfigure the loan portfolio by letting smaller real estate loans roll off while building a stronger pipeline for new customer acquisition, with growth expected in the second half of the year. Mr. Vitulli noted payoffs have been around $275-$300 million per quarter. On deposits, Mr. Vitulli and CFO Paul Egge highlighted strong new account growth from new customers, achieved through relationship banking rather than leading on price. Chief Credit Officer Joe West clarified that recent nonaccrual migration was due to specific management issues in owner-occupied CRE, not tariffs, and that the bank maintains its cautious underwriting standards focused on cash flow.

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CEO Robert Franklin described the Houston economy as resilient and underappreciated, with tailwinds from stabilized interest rates. He noted that competition is intense, but Stellar's localized approach allows it to win business from larger national banks. President Ramon Vitulli added that strong deal flow and new customer acquisition trends show momentum. Regarding hiring, Franklin acknowledged it's competitive but highlighted the success of their internal ODP training program in developing effective young talent.

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President and Bank CEO Ramon Vitulli explained that while originations increased, a strategic posture in construction lending led to net runoff where payments exceeded advances. CEO Robert Franklin added that the bank is repositioning its portfolio. On funding, Vitulli noted strong new account growth at lower rates. CFO Paul Egge highlighted discipline in letting wholesale funds mature and expressed confidence in defending the net interest margin, with potential for improvement depending on loan growth and rate cuts.

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President and CEO Clint Stein attributed loan growth to strong banker activity in newer markets offsetting runoff in the legacy portfolio. On the acquisition, he noted they are positioned for a smooth close but will wait for day-one fair value marks on loans. Torran Nixon, President of Commercial Banking, detailed several fee income initiatives, including a predictive analytics program and working capital assessments, which have driven strong year-over-year growth in areas like commercial card (up 14%) and international banking (up 50%).

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President, CEO & Director Clint Stein and President - Commercial Banking Torran Nixon attributed loan activity to strong banker productivity and new market momentum, which is offsetting runoff. Nixon detailed significant year-over-year growth in fee income lines like commercial card (14%) and international banking (50%), driven by deliberate initiatives. Stein confirmed that while some securities have been pre-purchased for the combined entity, major balance sheet moves for Pacific Premier will wait until post-close to capture favorable accounting marks.

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Executive Christopher Merrywell reported high retention (mid-80s) and growing average balances from past small business campaigns, with a new one recently launched. Executive Torran Nixon attributed strong loan growth to a combination of some increased demand, momentum from an evolving sales culture, and contributions from new hires across the footprint. CFO Ron Farnsworth quantified recent deposit outflows and noted customer conversations on repricing have been well-received, with Merrywell adding that significant CD maturities provide further repricing opportunities even without Fed rate cuts.

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EVP & Chief Commercial Banking Officer Christopher Merrywell explained the deposit campaigns are broad-based, relationship-focused, and will continue. President Torran Nixon highlighted successful de novo market entries and noted Southern California as a key growth area. CEO Clint Stein stated the immediate focus is on organic performance rather than M&A, pending clarity on the election and Fed policy. Nixon added the loan pipeline is stable with a healthy mix.

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President and CEO Clint Stein detailed that reinvestments focus on people, facilities, and technology to drive long-term revenue, including new branches in Phoenix and attracting talent. He also noted that while the bank is open to selling more transactional loan portfolios, it depends on market rates and there are no immediate plans. President of Commercial Banking Torran Nixon described the loan pipeline as steady, with a shift from CRE to C&I, but overall demand remains benign. He anticipates low single-digit loan growth for the remainder of the year.

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President and CEO James Beckwith attributed the robust deposit growth to the efforts of their 40 business development officers across all regions. He indicated that funding costs have likely stabilized but could improve with a better deposit mix, particularly non-interest-bearing accounts. Beckwith expressed optimism about the Bay Area, noting a positive shift in San Francisco and confirming plans for South Bay expansion after the Walnut Creek office opens. While a sub-40% efficiency ratio isn't a formal target, he acknowledged it's possible due to operating leverage, but stressed that strategic investments, like the new agribusiness vertical, remain a priority. EVP and CFO Heather Luck added that back-office infrastructure is already scaled to support growth without significant new investment.

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CEO James Beckwith attributed strong loan originations to the high activity of their expanded business development team rather than a broadly favorable rate environment. He characterized loan payoffs as a natural part of their business model, as clients refinance into agency or CMBS debt. Beckwith confirmed that future loan growth will be more diversified thanks to new teams in the Bay Area. He described the Bay Area as a prime market with ongoing opportunities from recent banking turmoil and detailed plans for further expansion, likely into the East Bay.

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CFO Walt Phifer explained that higher payoffs were driven by a few specific, non-thematic loans and reiterated a 12-20% annual growth outlook. He also noted potential for further deposit rate reductions. President William C. Losch III attributed strong originations to consistency and brand strength in SBA lending, particularly as competitors pull back. Chief Credit Officer Michael Cairns cited improving metrics like past dues, defaults, and non-accruals as the basis for confidence in the credit cycle's end.

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Chief Credit Officer Michael Cairns noted a holistic portfolio review, with skepticism on new transactions in auto dealerships and government contracting, but highlighted encouraging signs like low past dues. William C. (BJ) Losch III added that the bank is proactively building reserves. Regarding innovation, Losch stated that while the main focus remains on core lending and deposits, the bank continues to incubate long-term projects like Simply and its next-generation technology platform.

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Chairman and CEO James Mahan provided an example of creative assistance, where the bank connected a struggling business with an expert to advise on implementing price increases. Executive BJ Losch discussed hiring, but emphasized scalability through AI to automate manual processes. He noted they can do 'far better' than the current 35% deposit attachment rate for new loans and would be disappointed if the small-dollar loan program didn't more than double its $125 million 2024 production in 2025, aided by new technology.

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Executive William C. (BJ) Losch III reported that the small dollar SBA program (Live Oak Express) surpassed $100 million in production and could reach $130 million by year-end, primarily driven by people, with significant technology enhancements expected next year. He projected it could become a $0.5 billion to $1 billion annual business. On embedded banking, Losch described it as a 'moonshot effort,' highlighting the first partnership with Anatomy Financial and plans for a second. He framed the Simply partnership as an example of successful internal incubation. Chairman and CEO James Mahan emphasized that the bank's proprietary fintech core is a critical advantage for its embedded banking ambitions.

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CEO David Brager stated that he believes originations can outpace payoffs and identified the 'fiercest' competition as coming from regional banks in the $100B-$250B asset range. He noted the specialty banking group is performing well despite intense competition on earnings credit rates (ECR). On M&A, Brager confirmed conversations are ongoing but seller pricing expectations are challenging. He remains hopeful for a deal by year-end, potentially requiring a move 'outside of our box,' as most recent bank M&A has occurred outside of California.

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CEO David Brager identified the 'fiercest' competition as coming from regional banks in the $100B-$250B asset range, not from private credit. He expressed confidence that originations can still outpace payoffs. Regarding the specialty banking group, he noted its performance is strong but below last year's record pace due to disciplined pricing on earnings credit rates (ECR). On M&A, Brager confirmed active conversations and acknowledged the bank may need to look 'further outside of our box' to secure a deal, noting a lack of recent in-market transactions in California.

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President & CEO David Brager identified regional banks in the $100B-$250B asset range as the source of the "fiercest" competition and expressed confidence that originations can still outpace payoffs. He noted the specialty banking group continues to perform well by competing on service, not just price. On M&A, Brager confirmed conversations are ongoing and that the bank might consider deals "pushing a little further outside of our box," with a potential for an announcement by year-end.

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President & CEO David Brager stated that he expects originations to outpace payoffs, with competition coming primarily from regional banks in the $100B-$250B asset range, not private credit. He noted the specialty banking group continues to perform well by focusing on service over aggressive ECR rates. On M&A, Brager confirmed active conversations and a willingness to look 'outside of our box,' including potentially outside California, to secure a deal, possibly by year-end.

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President and CEO David Brager explained that their disciplined underwriting approach remains unchanged, though debt yield assumptions are adjusted for the rate environment. He attributed strong deposit growth primarily to new relationships, especially within the Specialty Banking group. On capital, Mr. Brager and Executive E. Nicholson confirmed they have ample capacity for both share repurchases and M&A, with Mr. Brager noting ongoing M&A conversations and an improved position as a potential acquirer.

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President and CEO David Brager confirmed a sense of optimism among clients and improving loan pipelines, though not yet at desired levels. He stated that while M&A conversations have increased, there's a valuation gap with potential sellers. Brager emphasized a disciplined approach to capital, noting the bank has capacity for both M&A and opportunistic buybacks under its 10b5-1 plan. He also expressed confidence in growing low-cost deposits, citing strong new relationship generation.

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CEO David Brager acknowledged that loan demand is slow and competition is fierce, with a focus on growing C&I operating company relationships to position the bank for 2025. On credit, he stated that recent nonperforming loan issues were one-off situations unrelated to the rate environment, highlighting strong underwriting with low loan-to-values. He attributed strong deposit growth primarily to winning new relationships across key business lines like government services and title escrow, rather than from existing customer balances, which are at multi-year lows.

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Chairman & CEO Li Yu described the OREO situation as 'unlucky,' with a sale falling through, stating the bank will not 'fire sell' it and has no firm resolution timeline. He confirmed the new Manhattan branch is performing well in loan generation and announced plans to open a Silicon Valley branch in the second half of the year. On the economy, he noted that the bank is closely monitoring clients affected by tariffs and supply chain issues, but it's still too early to know the full impact.

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Executive Li Yu attributed higher Q4 payoffs to asset sales facilitated by lower rates and stated that clients are waiting for more significant rate cuts before becoming more active. On credit health, Executive Wellington Chen described the client base as "very healthy." Li Yu and Executive Nick Pi emphasized that the bank's underwriting focuses on strong sponsor guarantees, which ensures borrowers are motivated to work with the bank to resolve any issues, a key factor in maintaining portfolio stability.

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Chairman & CEO Li Yu and Executive Nick Pi clarified that the rise in criticized loans was due to a single relationship with payment irregularities, noting that several of the loans are now current and the underlying properties are strong. Li Yu discussed the competitive environment and the strategy of hiring new producers. Regarding the long-term margin, Executive Edward Czajka suggested that if the Fed Funds rate settles around 3-3.5%, the margin could stabilize north of 3.50% by mid-to-late 2025.

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EVP & Chief Credit Officer Jill Rice explained that the strong loan originations were partly seasonal and represented a pull-through of muted activity from Q1, while maintaining a mid-single-digit growth forecast for the year. EVP & CFO Robert Butterfield added that deposit competition is not intensifying significantly and that the bank's relationship-focused model, particularly with deposit-rich small businesses, supports core funding. He confirmed FHLB advances were a temporary plug for funding this quarter and expects seasonal deposit inflows in Q3 to cover growth, noting securities portfolio cash flows are approximately $60 million per quarter.

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EVP & Chief Credit Officer Jill Rice attributed the strong originations to seasonality and a catch-up from a slower Q1, reaffirming the mid-single-digit growth forecast for the year. EVP & CFO Rob Butterfield noted that deposit competition has not intensified recently, emphasizing the bank's relationship-focused strategy. He confirmed FHLB advances were a temporary funding plug and that the bank expects seasonal deposit inflows in Q3 to help fund growth, supplemented by approximately $60 million in quarterly securities cash flows.

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EVP & Chief Credit Officer, Jill Rice, explained that the Q2 origination surge was partly a pull-through from a slower Q1 and reiterated the mid-single-digit growth forecast for the year. EVP & CFO, Robert Butterfield, noted that deposit competition is not intensifying significantly and that FHLB advances were a temporary funding plug, with securities cash flows at $60 million per quarter and an expectation for seasonal deposit inflows in Q3.

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EVP & Chief Credit Officer, Jill Rice, attributed the strong originations to some Q1 activity pulling through into Q2 and reaffirmed the company's expectation for mid-single-digit loan growth for the full year. EVP & CFO, Robert Butterfield, noted that deposit competition is not intensifying significantly and that the bank's relationship-focused model supports core funding. He confirmed securities cash flows are about $60 million per quarter and that FHLB advances were used as a temporary funding bridge, with seasonal deposit inflows expected in Q3.

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EVP & Chief Credit Officer Jill Rice noted that growth opportunities are diverse and that while uncertainty caused a pause, pipelines are rebuilding. She detailed a granular approach to monitoring tariff risks, believing small businesses will be most impacted. EVP & CFO Robert Butterfield discussed the stable funding cost environment and the strength of the bank's core deposit base. Regarding California, Jill Rice credited the growth to the successful hiring of talented bankers who have brought new clients to the bank.

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Executive Jill Rice described client optimism as 'tempered' and noted C&I growth was diversified across California and Washington. CFO Robert Butterfield and CEO Mark J. Grescovich stated that deposit cost reductions have been well-received by sophisticated clients without causing attrition, noting that total account numbers actually increased. Rice addressed credit, explaining that the ag portfolio is seeing some strain from lower commodity prices, leading to increased reserves, but emphasized it remains a small part of the overall loan book.

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EVP and CFO Robert Butterfield stated that while Q3 deposit growth was exceptionally strong, he expects loan growth to outpace deposit growth long-term, with small business relationships being a key source of core deposits. EVP, Commercial Banking Jill Rice projected continued low-to-mid-single-digit loan growth, potentially rising to mid-single-digits in 2025, and has not yet seen accelerated CRE payoffs. Robert Butterfield added that the margin could remain stable with gradual Fed cuts but would see initial compression with more aggressive cuts. He also noted that the math for a securities repositioning is currently challenging under their three-year earn-back target.

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Clients are generally not expressing major concerns, except for nonprofits worried about future funding. Underwriting standards have not changed as their traditional approach is adaptable. Excess liquidity is being deployed into higher-yielding securities after being held to manage deposit inflows and loan pipeline growth.

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CEO Tim Myers responded that clients are not expressing significant concern, with the exception of nonprofits who are worried about future government funding levels. He affirmed that the bank's traditional, fundamental-based underwriting approach has not changed and remains adaptable to market conditions. CFO Dave Bonaccorso added that excess liquidity was already being deployed into securities purchases late in Q1 and into Q2, capturing yields 40-50 basis points above cash.

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CEO Tim Myers reported that clients are generally not expressing significant concern, with the exception of nonprofits who are worried about future government funding. He affirmed that the bank's traditional, fundamental underwriting approach has not changed. CFO Dave Bonaccorso added that the bank accelerated securities purchases late in Q1 and into Q2 to deploy excess liquidity, capturing yields 40-50 basis points above cash.

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President and CEO Tim Myers confirmed the growth was primarily from market share gains and team productivity, and that the bank is nearing an inflection point where originations could outpace payoffs. He stated the focus remains on organic growth over loan pool purchases. Regarding deposits, Myers explained that nearly all of the Q4 fluctuation was seasonal and that the bank is focused on acquiring new operating accounts from C&I clients, noting that over a third of new loan commitments were to new C&I companies.

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President and CEO Jared Wolff described Q1 loan growth as broad-based and continuing into Q2, though the full-year forecast was tempered due to second-half uncertainty. He characterized the deposit market as "very, very competitive," with wins driven by new full-service relationships. He clarified that while the credit box hasn't tightened, they are re-emphasizing core principles like full recourse on construction loans.

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CEO Jared Wolff noted improving sentiment and loan demand across all segments, including C&I and real estate, though he expects growth to be more back-half weighted. He stated deposit growth will move in concert with loan growth. Wolff detailed investments in hiring business teams and systems like Encino, Salesforce, and data harmonization projects to support future growth and efficiency.

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CEO Jared Wolff explained that broad loan growth will likely remain muted until interest rates fall further, but the bank is well-positioned for a recovery. He identified warehouse lending, fund finance, and the newly reacquired lender finance business as near-term growth areas. Wolff stated that while loans typically grow faster than deposits, the bank is focused on building new deposit relationships now and expects to maintain a comfortable loan-to-deposit ratio, avoiding the high 90s.

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CEO Jared Wolff explained that the net interest margin is expanding as funding costs fall and loan yields rise, noting the deposit book is intentionally short-duration to benefit from future rate cuts. He attributed new client growth to market disruption from competitor mergers and the appeal of the bank's experienced relationship managers. Wolff highlighted tech initiatives like ServiceNow, Salesforce, nCino, and client-facing payment platforms as key priorities. CFO Joe Kauder added that approximately 40% of assets are floating rate or will reprice within a year.

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CEO Bob Harrison explained that the Q1 loan decline was due to normal course payoffs and participations, not weak demand, and that the pipeline remains strong despite uncertainty. CFO James Moses noted that while there's limited room to cut deposit costs without Fed rate cuts, CD repricing still offers a 20-30 bps spread. Moses also confirmed the full-year expense guidance, attributing the slow Q1 start to timing and stating that investments in projects with good ROI are being considered pending a clearer economic outlook.

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CFO Jamie Moses and CEO Bob Harrison attributed the broad-based deposit growth, especially in DDA, to the team's community engagement and technology investments. They noted that future deposit growth would first fund loans, with excess potentially going into short-duration securities. Harrison observed increased client activity and equity money coming off the sidelines, though construction loan payoffs are a headwind. Moses confirmed the margin guidance assumes two rate cuts in 2025 based on the forward curve.

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CEO Bob Harrison identified commercial real estate and dealer floorplan as primary growth areas, noting the consumer side remains soft. CFO Jamie Moses detailed that approximately $400 million in fixed-rate assets reprice quarterly, with new loans originating at 6.5-7%. Regarding deposits, Harrison emphasized transparent communication with customers on rate adjustments. Moses added that the bank currently favors share repurchases over a securities restructure, viewing it as a better way to return capital to shareholders.

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President Jay Brogdon stated that while they aim to resolve the problem credits by year-end, the timeline is flexible to ensure the best financial outcome. He attributed the strong loan pipeline to broad-based demand across C&I, CRE, and agriculture, with some borrowers pulling projects forward. Regarding deposits, Brogdon and CFO Daniel Hobbs described a competitive environment but highlighted success in remixing customer deposits into lower-cost accounts and noted the first quarter of near-flat non-interest-bearing deposit performance in some time.

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President Jay Brogdon described the deposit market as competitive but noted client elasticity has been favorable. CFO Daniel Hobbs added that over 75% of balances from maturing relationship CDs were retained. Regarding loans, Mr. Brogdon stated the pipeline is well-diversified and that pricing discipline will be maintained. On credit, he characterized the environment as a 'normalization,' with the primary focus on a small, known runoff portfolio and no new notable concerns emerging.

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President Jay Brogdon stated that Simmons will remain opportunistic with the bond portfolio as market conditions permit. CEO Bob Fehlman added that current earnings are a key factor in sizing any sales. Regarding the NIM, Brogdon projected a stable Q4 with more notable positive inflection in 2025. He also noted that while the appetite for loan growth is strong, broad-based demand has not yet materialized due to macro uncertainty.

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CEO Palmer Proctor attributed the production surge to improved consumer sentiment and successful hiring, while emphasizing a focus on controlled, profitable growth over volume. CFO Nicole Stokes affirmed that consensus expense growth estimates of 4.5% to 5% for 2025 are reasonable, though Q1 may be seasonally higher. Proctor added that the bank maintains expense discipline by replacing underperforming bankers with new hires, rather than just adding headcount.

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Executive Nicole Stokes noted the blended rate on new deposits was under 3% and that pricing is managed via weekly meetings and market feedback. CEO H. Proctor emphasized the "human touch" in client retention and described the premium finance vertical as a stable "bright spot." He added that while margin expansion is conceptually possible, the primary focus is maintaining the current strong margin.

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CEO Brett Pharr attributed growth in credit sponsorship directly to regulatory pressure causing competitors to misstep, which has driven new partners and volumes to Pathward. He clarified that growth in working capital finance stems from improved distribution capabilities, not economic shifts. Regarding the tax business, Pharr credited the experienced management team for gaining market share but deferred detailed comments until after the season concludes.

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CFO Gregory Sigrist explained that the guidance incorporates two 25 basis point rate cuts and that while further cuts have a modest negative impact, they can be mitigated through balance sheet management. He noted strong pipelines are a key driver. CEO Brett Pharr clarified the guidance explicitly excludes the impact of the insurance premium finance sale and the subsequent securities restructuring, which is a 12-18 month process. Pharr confirmed the Partner Solutions pipeline strength is from both new and existing partners, with recent deal closures being a key development. He added that post-sale, the focus is on redeploying capital into higher-yielding assets and creating a flow business for SBA/USDA loans.

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CEO Steven Gardner stated that the existing team is in place to drive growth and expects organic originations to meet or exceed runoff within a couple of quarters. He noted new loan yields in the high 6% range are attractive and is constructive on the ability to reprice the portfolio up over time. Regarding capital, Gardner reiterated that they are assessing a multitude of options, including buybacks, and will act opportunistically.

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CEO Steven Gardner stated that the existing team is in place to drive organic growth and expects originations to meet or exceed payoffs within the next couple of quarters, with loan purchases used tactically. He noted new origination yields are attractive in the high 6% range and is constructive on the ability to reprice the portfolio up over time. Regarding capital, he reiterated that they are assessing a multitude of options, including share buybacks, to maximize shareholder value.

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CEO Steven Gardner stated that loan growth is focused on C&I, with some opportunities in construction and SBA, but not multifamily. He noted the loan pipeline has grown recently. On capital strategy, Gardner prioritized maintaining the dividend, followed by redeploying excess liquidity into loans. He confirmed the Board is also assessing balance sheet repositioning and a potential share repurchase plan. Regarding hiring, the focus is on acquiring talented individuals with strong client relationships rather than on specific geographies.

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CEO Steven Gardner explained that confidence stems from client conversations, seasonality in deposit outflows, increased loan origination, and anticipated economic certainty post-election. He noted good origination on the C&I side and a modest pickup in construction lending. Regarding capital deployment, Gardner confirmed they are considering all options, including M&A and balance sheet repositioning, but will remain thoughtful and analytical, acknowledging the uncertain regulatory environment.

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Executive Steven Gardner explained that the impact of rate cuts depends on the economic driver behind them, noting a soft landing could boost fee businesses and credit demand, though such an outcome is historically rare. He attributed weak originations to a deliberate slowdown since 2022 combined with muted client demand amid economic uncertainty. Regarding credit sales, Gardner stated there was no common denominator among the loans sold and that the bank will continue to use this proactive credit management tool.

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CEO of Heritage Bank Bryan McDonald noted that while Q4 saw higher CRE activity, the goal is to balance it with C&I lending, with the current pipeline near a 50-50 split. Chief Accounting Officer Jennifer Nino projected the quarterly expense run rate to be in the $41 million to $42 million range for 2025, accounting for merit increases and new initiatives. She also guided for a 2025 effective tax rate of 15% to 16%, up from the normalized 12.5% in 2024.

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CFO Alan Villalon provided a starting point for the legacy Alerus margin (2.41%) and the acquired HMNF margin (2.8%), noting deposit betas may lag on the way down but that a path to a 3% NIM remains. He suggested margin expansion would be more back-half weighted. Chief Retirement Service Officer Forrest Wilson highlighted that retirement business margins will improve steadily over time through efficiency, new revenue from partnerships like one with MassMutual, and reduced turnover. Chief Revenue Officer James Collins added that the company is still actively hiring and has specific strategies to grow core deposits.

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CEO Damian Kozlowski detailed that the credit sponsorship business is ramping up, primarily with Chime, and is expected to grow from approximately $280 million to $400 million in footings by year-end 2024, with a target of $900 million to $1 billion by the end of 2025. He projected a stable NIM for 2025 in the 4.90% to 5.00% range, assuming the Fed funds rate settles around 4%. Kozlowski explained that the transaction processing loss was a one-time event caused by a rare application glitch and that multiple new controls have been implemented to prevent a recurrence.

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The executive stated that the U.S. reception is strong, with one partner nearly operational. The economics in the U.S. are about 1% better than in Canada due to lower funding costs. The bank can immediately raise deposits in the U.S. and has partnered with Raymond James and another brokerage firm for this purpose. Onetime acquisition-related costs in Q3 were approximately $700,000, with an additional margin impact of about $600,000 due to lagging deposit rate adjustments in Canada.

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Executive David Taylor described the U.S. reception as 'tremendous,' noting one partner is close to being operational with a larger pipeline expected over the next year. He explained that U.S. economics are roughly 1% better than in Canada due to lower funding costs. Taylor confirmed they can immediately raise U.S. deposits, highlighting a new partnership with Raymond James. He quantified Q3's direct acquisition-related costs at approximately $700,000 and noted an additional ~$600,000 margin impact from the lag in Canadian deposit rate adjustments.

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Executive David Taylor acknowledged seasonal softness but expects a resurgence in POS growth in H2, driven by new products and a potential U.S. market entry. Taylor explained that while partners see higher defaults, the bank's model results in faster repayments, protecting it from credit losses. He also highlighted that rising insolvencies are boosting low-cost deposit growth.

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Executive David Taylor acknowledged a seasonal slowdown in Q2 but expects a resurgence in consumer POS purchases in the second half of the year, noting May was already showing improvement. He confirmed the bank is exploring new, innovative POS products and is awaiting a U.S. regulatory decision for expansion. Taylor explained that while partners are seeing higher defaults, this translates to faster repayments for the bank, protecting its balance sheet from credit losses but dampening net portfolio growth.

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