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Leo Salom projected NIAC growth for the U.S. segment in 2026, expecting strong revenue dynamics to offset disciplined expense growth. On the asset cap, he clarified that while the majority of management actions will be done by year-end 2025, the full process involves multiple validation stages and a regulatory sustainability review, making the final timeline uncontrollable by the bank.

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Leo Salom, Group Head - U.S. Retail, expressed a constructive outlook for 2026, expecting NIAC growth despite headwinds, with productivity efforts helping to fund investments. On the asset cap, he clarified that while most management actions will be done by year-end 2025, some items extend to 2026-2027, and the final timing is subject to a multi-stage validation and regulatory review process.

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Leo Salom, President and CEO of TD Bank, America's most Convenient Bank, asserted that the bank has a comprehensive and robust roadmap for a "world-class" AML program and is executing against it, though it is a multi-year effort. To reassure investors, he highlighted the U.S. franchise's strong underlying performance, including peer-leading loan growth and NIM expansion, as evidence of its resilience and continued growth potential.

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Leo Salom, President and CEO of TD Bank, AMCB, pointed to strong quarterly results as evidence against stagnation. CEO Bharat Masrani stated the program's failure was unacceptable and is being fixed. Chief Risk Officer Ajai Bambawale attributed the failure to specific procedural weaknesses in the U.S. and actions of some employees, asserting it is a U.S. AML issue, not an enterprise-wide problem.

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Robert Sedran, Senior EVP, CFO & Enterprise Strategy, responded that while the official ROE target remains, the bank's conviction in its upward trajectory has never been stronger, even with a higher capital load. He indicated that as CIBC surpasses the 15% mark, they expect the ROE to continue migrating higher over the medium term, driven by consistent strategic execution.

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Frank Guse, Senior EVP & Chief Risk Officer, pointed to leading indicators like declining delinquency rates in Q2 as a source of confidence in their credit outlook. Victor Dodig, President & CEO, expressed optimism about potential government policies to boost growth and believes an eventual 'detente' on the North American trade front will occur.

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The executive expressed confidence in credit quality, citing declining delinquency rates as a positive indicator. The CEO discussed potential pro-growth policies in Canada, including dropping trade barriers, housing incentives, and fostering risk capital, while expressing optimism for an integrated North American economy.

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Frank Guse, Chief Risk Officer, pointed to leading indicators like declining delinquency rates in Q2 as a source of confidence in the bank's credit quality and guidance. Victor Dodig, President and CEO, expressed optimism for pro-growth policies in Canada, highlighting opportunities in interprovincial trade, housing, natural resources, and fostering risk capital, while emphasizing the strength of the integrated North American economy.

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Chief Risk Officer Frank Guse cited declining delinquency rates in Q2 as a key indicator supporting the bank's confidence in its credit outlook. CEO Victor Dodig expressed optimism for pro-growth policies in Canada, highlighting areas like trade, housing, and resource development as key opportunities for the government to address.

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President and CEO Victor Dodig confirmed CIBC will continue its buyback activity while preserving capital for organic growth. He then deferred to business leaders Shawn Beber (U.S. Region), Harry Culham (Capital Markets), and Susan Rimmer (Commercial Banking), who all described healthy business pipelines and client readiness to invest once economic certainty returns.

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President and CEO Victor Dodig stated that while sentiment is improving, more rate cuts are needed to solidify confidence. Chief Risk Officer Frank Guse added that the credit outlook remains prudent, with unemployment as a near-term headwind. On capital, Victor Dodig prioritized organic growth first, followed by dividend growth, share buybacks, and opportunistic tuck-in M&A, all aimed at delivering a premium ROE.

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President & CEO David McKay expressed confidence in the sustainability of the bank's performance, attributing the strong results to broad-based client activity rather than over-earning in any specific area. He reaffirmed the 'at least 16%' ROE target for fiscal 2026, noting the bank has the earnings power to support a strong capital ratio while continuing share buybacks and investing in growth.

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Chief Risk Officer Graeme Hepworth explained that 80% of the reserve build is driven by forward-looking macroeconomic uncertainty rather than current credit deterioration. Chief Financial Officer Katherine Gibson detailed that NII guidance depends on loan volumes, the 'tractor' hedging strategy, and variables like client deposit mix and competitive pressures.

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The credit reserve build is primarily driven by forward-looking macroeconomic uncertainty rather than new emerging stress areas. NII growth will be influenced by loan volumes, deposit growth and mix, the 'tractor' hedging strategy, and competitive dynamics.

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Chief Risk Officer Graeme Hepworth attributed the credit outlook to forward-looking uncertainty rather than current credit migration. Chief Financial Officer Katherine Gibson detailed that NII growth depends on loan volumes, NIM performance driven by the 'tractor' strategy and deposit mix, and competitive pressures.

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CFO Katherine Gibson attributed margin strength to better spreads and a favorable deposit mix, noting competition was less than forecast. Group Head of Personal Banking Erica Nielsen added that RBC is managing pricing effectively. CEO David McKay described their current strategy as 'balanced,' continuing to support client growth with strong momentum while preparing for potential downside scenarios.

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President and CEO David McKay stated that RBC's significant organic capital generation allows for both share buybacks and capital accretion for strategic optionality. He emphasized that the plan is to return capital to shareholders to drive a premium TSR while patiently building the balance sheet for the right future deployment, similar to the discipline shown with the HSBC acquisition.

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Raj Viswanathan, Group Head & CFO, explained that while the 13.3% CET1 ratio is strong, the bank prioritizes capital for organic growth first. He confirmed the bank will continue its buyback program but will maintain a prudent approach, expecting to remain comfortably above a 13% CET1 ratio. CEO Scott Thomson later added that the bank is tracking at or above its Investor Day commitments, with International Banking performing ahead of schedule and GBM showing strong momentum.

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Chief Risk Officer Philip Thomas explained that while impaired PCL growth is slowing and credit portfolios remain relatively stable, the performing build reflects a conservative stance against macro uncertainty. He noted that impaired PCLs should remain near current levels for the rest of the year. President and CEO Scott Thomson added that progress on the USMCA trade agreement and increased political certainty in Canada could serve as catalysts for an inflection point in loan growth and business confidence heading into 2026.

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Phil Thomas, Group Head & Chief Risk Officer, explained that while impaired PCLs are stabilizing, the performing build reflects a weaker macro outlook and expert judgment. He expressed confidence in credit quality, noting stability in Canadian mortgages and positive trends internationally. Scott Thomson, President & CEO, added that increased political certainty in Canada and progress on the USMCA trade agreement would be key catalysts for improving customer confidence and activity.

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Chief Risk Officer Philip Thomas stated that while some softness remains in Canadian retail, customers are benefiting from rate cuts, and he expects provisions to trend down in H2 2025, tariffs aside. President and CEO L. Thomson explained that capital return plans are pending tariff clarity, but he anticipates resuming modest dividend growth next quarter and hopes to begin share repurchases by year-end.

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CFO Rajagopal Viswanathan projected modest NIM improvement in Q4, accelerating through 2025 as rate cut benefits materialize in the 'Other' segment. President & CEO Scott Thomson positioned the KeyCorp investment as a low-risk U.S. market entry. Aris Bogdaneris, Head of Canadian Banking, highlighted a $43 billion deposit increase over 18 months, driven by a focus on primary client relationships. Travis MacHen from Global Banking and Markets noted opportunities in the U.S. fee business.

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CEO Darryl White described Canada's economy as being in a modest, non-recessionary growth phase, with future optimism dependent on trade and policy actions. President - BMO U.S. Aron Levine explained that reaching the ROE target requires sustainable loan and deposit growth, which will be supported by a unified business structure and investments in technology, branches, and talent.

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CFO Tayfun Tuzun stated he does not expect the CCAR exercise to meaningfully impact capital management. Regarding NIM, he reiterated a strategy focused on stability, driven by business actions rather than interest rate speculation, and expects a stable margin with some potential upside while remaining cautious.

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CFO Tayfun Tuzun stated he does not expect this year's CCAR exercise to have a meaningful impact on capital management, noting the U.S. capital position is strong and accreting as expected. Regarding NIM, he reiterated a principle of stability, expecting margins to remain stable with some potential upside driven by business actions like deposit optimization, but he remained cautious.

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CEO Darryl White stated it is premature to predict specific tariff outcomes but acknowledged higher anxiety levels among Canadian clients, with some pausing capital deployment. Nadim Hirji, Head of BMO Commercial Banking, added that clients are actively creating contingency plans and BMO's North American footprint is an advantage. Regarding capital, Darryl White confirmed the intention to continue the buyback program to manage the CET1 ratio towards the bank's target.

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Chief Risk Officer Piyush Agrawal and CEO Darryl White addressed credit, noting that large losses were episodic, often in syndicated loans from a specific 'pandemic vintage,' and that the issue is known and bounded. On profitability, Darryl White reaffirmed the mid-term 15% ROE target, outlining levers such as credit normalization, sustained positive operating leverage, and an improving U.S. environment as the path forward.

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The large credit losses are not unique to BMO, as about 70% are from syndicated facilities. The issues are described as episodic and related to a 'vintage' of loans from the pandemic era, not a systemic issue. The bank has reviewed the portfolio and feels the problem is contained. Management reaffirmed their commitment to a 15% ROE in the medium term, achievable through credit normalization, operating leverage, and an improved U.S. environment.

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CEO Phillip Green stated that the expansion program is expected to become accretive to earnings in 2026, with returns growing over time. He clarified that recent expense growth also reflects investments in personnel and technology, not just new branches. CFO Dan Geddes added context on long-term market share gains. Regarding deposits, both executives indicated that DDA balances are near a bottom and they are hopeful for a return to typical seasonal growth in the second half of the year.

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Chairman and CEO Phillip Green projected significant earnings accretion from the expansion program starting in 2026, noting that recent expense growth also includes investments in technology and personnel. CFO Dan Geddes provided market share data for Houston and Dallas to illustrate the long-term growth runway. Regarding deposits, both executives expressed cautious optimism that DDA balances are near a bottom and are beginning to show signs of returning to seasonal growth patterns.

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CEO Phillip Green affirmed that the expansion is a 'durable and scalable' strategy that will continue with a 'regular cadence.' He explained that after completing current build-outs, the bank will revisit major markets to fill in gaps and follow population growth. CFO Dan Geddes supported this by highlighting the bank's low market share in Houston and Dallas, which provides significant room for continued growth.

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CEO Phillip Green attributed strong deposit growth to a combination of factors: the physical branch expansion, world-class customer service driving word-of-mouth referrals, a highly-rated mobile app, and more effective marketing. On lending, Green noted that competition is intensifying, particularly on structure, which Frost avoids. He acknowledged private credit is a factor, often providing bridge financing for commercial real estate projects, but stated that Frost's consumer lending growth is driven by unique products like home equity loans in the current rate environment.

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Senior Executive Vice President & CFO Lee Smith detailed the $10 billion NYC rent-regulated portfolio, highlighting its 97% occupancy and breaking down the pass-rated versus criticized portions to show the bank feels adequately reserved. Executive Chairman, President & CEO Joseph Otting added that the impact of any future rent freezes would depend on the corresponding trajectory of operating expenses.

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Chairman and CEO Michael O'Grady reiterated that the company is focused on its independent strategy, which they believe offers a unique value proposition for clients, though small, capability-enhancing acquisitions could be considered. EVP & CFO David Fox added that the pace of buybacks is determined by multiple factors including regulatory capital, earnings, and ROE, not just stock valuation, and that the current pace is healthy.

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CEO Mike O'Grady detailed progress on efficiency through workforce optimization, location strategy, and technology deployment like machine learning and generative AI. He noted the move to a centralized operating model is a longer-term driver. CFO David Fox stated that NII is not highly sensitive to initial rate cuts, estimating a 25 basis point cut would impact NII by less than $1 million per month.

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Chief Financial Officer David Fox clarified that GFO had its strongest year ever for organic growth and that the business has not plateaued, citing a lag effect on revenue and a robust pipeline for 2025. Regarding NII, Fox noted the guide already assumes rate cuts and that other factors like loan activity are influential, but confirmed that fewer rate cuts would be better for NII.

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CEO Mike O'Grady explained the leadership changes align the organization with its strategy to drive operational excellence and scale, highlighting the new COO role. Then-CFO Jason Tyler noted that while Q3 NII was strong due to favorable deposit repricing, anticipated rate cuts make further growth unlikely, guiding for Q4 NII between $550 million and $560 million.

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EVP & CFO Christopher Del Moral-Niles confirmed the bank's asset sensitivity, noting that fewer rate cuts or stronger loan growth could lead to upside on the NII guidance. Chairman & CEO Dominic Ng added that client sentiment is improving as they gain more certainty around tariffs, highlighting that many clients are experienced in navigating such situations and the bank's portfolio is highly diversified.

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CFO Christopher Del Moral-Niles stated the bank will be opportunistic with its $244 million buyback authorization while prioritizing a position of strength. CEO Dominic Ng added that clients are better prepared for tariffs now than in 2017, having diversified supply chains. He noted that directly impacted clients represent only 1% of the C&I loan portfolio and the bank is working closely with them, seeing no immediate credit loss risk.

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CFO Christopher Del Moral-Niles stated that CRE growth will be muted as the bank focuses on C&I and residential lending. CRO Irene Oh added that a modest rate increase is not expected to significantly impact credit risk. Regarding efficiency, CEO Dominic Ng explained that the primary focus is on ROE, ROA, and EPS growth, and a slight increase in the efficiency ratio from its current low level would not be a concern as the bank diversifies into fee-generating businesses.

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Chairman and CEO Dominic Ng stated the bank is positioned with a "fortress-like balance sheet" but the post-election economic environment remains uncertain. He confirmed no current plans for new branches. CFO Christopher Del Moral-Niles added that fee-driven M&A opportunities are of interest, but the appetite for depository acquisitions is "light right now."

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CFO Clark H. I. Khayat affirmed the 3% NIM target by the end of 2026, stating it could be reached without significant balance sheet growth due to favorable asset mix shifts and capital markets distribution. Chairman & CEO Christopher M. Gorman specified that the 10% hiring increase targets investment bankers, middle market relationship managers, wealth managers, and payments advisers to drive future growth.

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Chairman and CEO Christopher Gorman clarified that while existing, in-flight CapEx projects are proceeding, new project launches are being paused by clients pending greater visibility. Regarding the buyback, he stated the target is a 9.5% to 10% marked CET1 ratio. He emphasized that repurchases would likely commence in the second half of the year, but the pace depends on gaining clarity on the economy and Basel III endgame rules, with client support being the top priority for capital.

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CEO Christopher Gorman confirmed that a robust M&A market is historically positive for lending, partly due to private equity's use of leverage. CFO Clark Khayat projected that deposit balances would be 'stable to slightly up' with continued remixing out of brokered deposits, and that average earning assets are expected to be 'relatively flat' throughout the year.

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CEO Christopher M. Gorman confirmed that a robust M&A market, particularly with private equity involvement, is beneficial for lending. CFO Clark H. I. Khayat projected that client deposit balances would be stable to slightly up, with continued remixing out of brokered deposits, and that average earning assets are expected to be relatively flat throughout the year.

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CFO Dale Gibbons responded that while specific deposit businesses could grow faster, overall growth will be managed to avoid prematurely crossing the $100 billion LFI threshold, with a focus on optimizing the deposit mix. CEO Ken Vecchione confirmed a $250 billion threshold would be a significant net benefit, allowing faster growth and technology re-prioritization, and stated the Fed could enact this change without Congress.

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President and CEO Kenneth Vecchione projected sequential NII growth through Q3, with the adjusted net interest margin showing stronger improvement than the reported NIM due to declining ECR costs. Chief Financial Officer Dale Gibbons suggested better promotion of their diversified business model could help the stock. Vecchione dismissed the idea of a strategic M&A, citing the bank's superior organic growth capabilities.

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Interim CEO and CFO Dale Gibbons explained that supporting the outlined balance sheet growth is the primary use of capital, though buybacks could be considered to capitalize on market dislocations. He stated that a slowly declining rate environment is preferable as it eases credit concerns and supports mortgage activity. Gibbons clarified the fee income guidance assumes flat mortgage revenue year-over-year, not a significant rate-driven pickup.

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CEO Ken Vecchione clarified that a large, earlier-than-expected Juris Banking settlement of $2.7 billion reduced Q3 deposit growth; otherwise, growth would have been $5 billion. He confirmed the Q4 decline is driven by normal seasonality in the mortgage warehouse business. Vecchione stated that for 2025, the bank expects average quarterly deposit growth of $2 billion and loan growth of $1 billion. He projected that the adjusted net interest margin (NII less deposit costs) would rise in Q4 and continue to do so through 2025. CFO Dale Gibbons added that the large settlement was a unique event and no similar-sized outflows are on the horizon.

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President, CEO, & Chairman John Turner explained that the tax package provides helpful certainty for businesses and consumers, noting an uptick in inquiries for equipment purchases due to bonus depreciation. Regarding M&A, he reiterated that Regions is not interested in depository deals, as the company is focused on executing its current strategic plan and completing its major technology modernization project.

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Executive David Turner responded that while a small repositioning was done, they are near the end of such opportunities and will continue to weigh them against buybacks. Executive John Turner suggested a period of stability of at least 90 days, and possibly longer, is needed for customer activity to pick up. He also confirmed that no significant impact from auto tariffs has been seen to date.

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CEO John Turner explained that the 40-50 basis point range for net charge-offs is considered a typical run-rate for the portfolio. CFO David Turner confirmed that deposit costs are expected to decline in Q4 even without further Fed cuts, driven by maturing CDs repricing at lower rates.

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CEO Charles Scharf asserted that the company will not sacrifice returns for growth, stating that growth initiatives are designed to increase returns, funded in part by ongoing efficiency efforts. He also noted the Q2 ROTCE was boosted by a one-time gain. CFO Michael Santomassimo added that the NII outlook already factors in market expectations for rate cuts, which they expect to mitigate through favorable deposit pricing, asset repricing, and loan growth.

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CEO Charles Scharf emphasized that the company will not sacrifice returns for growth and remains focused on increasing returns, funding investments through ongoing efficiency initiatives. CFO Michael Santomassimo noted that the NII outlook already incorporates market expectations for rate cuts, and that despite potential cuts, factors like lower deposit costs, fixed asset repricing, and loan growth should remain constructive for NII.

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CEO Charlie Scharf detailed that improving consumer ROE involves maturing the card business, enhancing the auto business through partnerships like Volkswagen, and optimizing the home lending business. He noted that while the consumer bank's returns are strong, growth has been constrained. Regarding capital, Scharf stated the company has significant excess capital and found last year's SCB increase illogical. He views the current regulatory direction as positive but will wait for clarity before defining specific capital buffer targets.

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CFO Mike Santomassimo stated that the consent order's removal allows for a broader rollout of a standard incentive framework in branches, which has already shown positive results in pilots. CEO Charlie Scharf added that this involves a combination of compensation, reporting, and management routines within a new, robust control framework. Regarding expenses, Mike Santomassimo affirmed that significant opportunities for efficiency remain, comparing the process to 'peeling an onion' where new layers of potential savings are continuously uncovered through technology and automation.

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CEO Charlie Scharf deferred specific 2025 expense guidance but affirmed the strategy of balancing significant efficiency opportunities with necessary investments in risk and growth. CFO Michael Santomassimo added that underlying efficiencies are materializing but are offset by revenue-related compensation. On NII, he cited a combination of factors, including a stabilizing deposit mix, proactive pricing actions, asset repricing, and the recent securities portfolio repositioning, as reasons for the stable Q4 outlook.

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CFO Mike Maguire outlined that improved returns will be driven by capital-efficient revenue growth, fixed asset repricing, and disciplined loan growth. CEO William Rogers explained that the new RTP capability is one example of broader innovation driving a 14% YoY increase in treasury management revenue. He positioned this as a leading indicator for future deposit growth as new and deepened client relationships mature.

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CFO Michael Maguire indicated the established $500 million quarterly buyback is the sustainable rhythm, with the additional Q2 amount being opportunistic and not a new run rate. He reiterated that a 10% CET1 ratio is a sensible operating level but that the bank is awaiting the final Basel rule before setting a firm target, showing no immediate desire to add significant leverage.

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CEO Bill Rogers clarified that these are existing markets where Truist is increasing investment and leveraging its full product suite, emphasizing that the growth strategy is organic. Rogers also expressed confidence in the company's ability to not only defend but also go on offense in its core markets, citing positive momentum in net new accounts and successful talent attraction.

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CEO Bill Rogers indicated that buybacks will remain at an "elevated level" and could be adjusted if loan growth is slower than anticipated, but the priority is funding growth. He identified market share gains in investment banking, growth in "net new" clients, and increased "primacy" (wallet share) with existing clients as key focus areas, signaling a strategic shift from integration to expansion.

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CFO John Woods confirmed that deposit costs should continue to benefit from a significant book of CDs repricing at much lower rates, providing a tailwind for the rest of the year. He reiterated confidence in the bank's cumulative deposit beta performance. On sponsor lending, Head of Commercial Banking Don McCree reported an 8% increase in capital call line utilization in Q2 and expects further growth, as utilization remains about six points below its long-term average and the private equity complex is becoming more active.

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CEO Bruce Van Saun and CFO John Woods did not provide a specific breakdown for capital markets revenue but confirmed it is a material driver of the overall fee guide, expressing confidence due to business diversity. On the NIM outlook, Woods explained that their forecast is not highly sensitive to rate cuts due to their near-neutral, hedged position. He noted the long-term NIM range assumes a terminal Fed funds rate of around 3.5%.

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CEO Tim Spence reiterated that organic growth is the top priority, followed by dividends and share repurchases, emphasizing that any M&A must provide strategic density. CFO Bryan Preston and CEO Tim Spence explained that while the tax bill will reduce future solar loan originations, the existing portfolio is unaffected, credit trends are improving, and the Dividend platform is pivoting to offer home equity products for broader home improvement projects.

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CFO Bryan Preston stated that Southeast branches are still in early growth stages, driving future deposit potential. CEO Tim Spence clarified the fee business dependencies: Wealth Management is not dependent, Commercial Payments is mixed (with 40% of new relationships having no credit), and Capital Markets is linked to cross-selling but has significant room to grow within the existing client base.

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CEO Tim Spence indicated the bank is at an inflection point with its RWA optimization, expecting the SNC runoff to moderate, supported by a record middle-market pipeline. He noted that while private credit is a competitor, Fifth Third avoids its higher-risk practices. CFO Bryan Preston defended the buyback strategy, stating the stock is a good value and the bank's strong earnings generation provides flexibility to fund growth while returning capital, thus avoiding the high cost of holding idle excess capital.

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CFO Bryan Preston confirmed that rate cuts are positive for the bank, noting that 64% of the interest-bearing deposit book is in higher-beta categories, providing confidence in managing costs down. CEO Tim Spence added that while rate relief would be constructive for loan demand and credit, he remains cautious due to broader macroeconomic uncertainties and will not chase loan growth at the expense of returns.

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CEO Kevin Blair acknowledged a competitive environment, noting a modest 5 basis point decline in SOFR spreads, but emphasized competing on relationship value. EVP & CFO Jamie Gregory stated that strategic investments like hiring are based on their long-term IRR and are not reactive to short-term revenue, though variable incentive costs could rise with outperformance.

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CFO Jamie Gregory projected a cumulative deposit beta of 40-45% in the easing cycle, driven by active repricing, and expects core deposit growth to continue into 2025. CEO Kevin Blair stated that the Maast platform is being enhanced based on pilot feedback, with resources also focused on expanding the profitable commercial sponsorship business. He affirmed that partnerships, not scale, are key to winning in the embedded finance space.

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Vice Chair & CFO John Stern stated that while they are committed to a ~75% payout ratio over time, they may prioritize funding strong loan growth over increasing buybacks in the immediate short term. Regarding NII, both he and President & CEO Gunjan Kedia expressed strong confidence in the growth trajectory, attributing it to the strategic actions taken to reposition the balance sheet for better returns and deeper client relationships.

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CFO John Stern clarified the goal is to achieve a 3% NIM during the 2026-2027 timeframe, not for it to be an average. CEO Gunjan Kedia explained that the expense base will be flexed to consistently deliver positive operating leverage, with the absolute level dependent on the revenue environment.

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CFO John Stern indicated that the forecast assumes modest loan and deposit growth for the year. While client sentiment is positive, a significant pickup in loan growth has not yet materialized but is hoped for in the second half. Regarding payments, Stern noted core momentum is strong, with mid-single-digit growth expected in retail cards. He acknowledged that merchant acquiring growth was below aspirations in 2024 due to a client mix shift but expects improvement, while the CPS business is projected to see high single-digit growth.

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President Gunjan Kedia and CFO John Stern highlighted the diversified fee mix as a key strength for growth. Stern projected Q4 NIM stability, followed by potential expansion driven by asset remixing and deposit repricing, calling a 3% NIM a "good level to think about" long-term. Chairman and CEO Andy Cecere confirmed the 2027 Category II timeline is not a constraint on current loan growth, which is driven by market demand.

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CFO Daryl Bible stated that the primary driver for NIM will be the pace of commercial and CRE loan growth. He noted positive repricing in auto/RV loans, the investment portfolio, and the swap book as tailwinds. Regarding C&I growth, he highlighted strong momentum in Eastern Mass and Connecticut, and emphasized the significant contribution from specialty businesses acquired from People's United, such as fund banking and mortgage warehouse.

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CFO Daryl Bible explained that achieving a NIM above 3.70% is possible but hinges on stronger commercial and CRE loan growth. He noted positive drivers like fixed-asset repricing and a favorable swap book. Regarding C&I growth, he highlighted significant momentum in former People's United markets like Eastern Massachusetts and Connecticut, driven by new leadership and the successful scaling of acquired specialty businesses like fund banking and mortgage warehouse.

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Daryl Bible (executive) noted that while consumer spending is stable, business customers are pausing investments due to uncertainty, though M&T's C&I business is still growing. Regarding capital, Bible confirmed plans to resume share repurchases, adjusting based on economic conditions, and emphasized M&T's strong capital position without commenting directly on M&A.

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CFO Daryl Bible expressed confidence that NIM would increase through 2025, driven by locked-in swap repricing and fixed-rate asset repricing, even without Fed action. He explained that several current large investments (data centers, new GL system) are once-in-a-decade projects, which, once completed, should reduce the investment burden, while areas like data analytics will require ongoing spend.

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CFO Daryl Bible explained that the decline in criticized loans was driven by upgrades, particularly in healthcare and construction, due to improved project performance and client support, not just rate movements. He noted 91% of criticized loans are current. Bible attributed C&I growth to specialty businesses like fund banking and mortgage warehouse, as well as regional strength in markets like Austin and Baltimore. He expects CRE balances to begin growing again in 2025.

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EVP & CFO Robert Reilly stated that the current 10.5% CET1 level 'feels about right' for now, allowing for flexibility with increased buybacks and dividends. Chairman & CEO William Demchak added that rating agency requirements are a key binding constraint. On growth, Mr. Demchak noted that momentum is 'really good at the moment' but can be easily disrupted by the political environment and tariffs.

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CEO Bill Demchak noted that while tariff uncertainty has slowed near-term activity, he does not see dramatic credit deterioration unless a steep recession occurs. CFO Rob Reilly explained that with 2025 NII largely locked in, the focus is on outer years. The primary action is continuing the fixed-rate asset repricing strategy, including adding forward-starting swaps, to secure future income.

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CEO Bill Demchak noted that while getting a deal approved may be easier, a lack of willing sellers makes large M&A unlikely as potential targets are enjoying favorable earnings trends. On credit, he expressed confidence that quality would remain strong even without rate cuts, as the robust economy should prevent solvency issues despite pressure on debt coverage ratios.

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CFO Rob Reilly stated that PNC is in a 'down beta cycle' and expects to reduce rates paid, with a terminal beta of around 50%. CEO Bill Demchak described the commercial client base as generally healthy but facing margin pressure, though not to the point of significant layoffs. On M&A, Demchak explained that despite PNC's stock multiple advantage, potential targets do not pencil out financially due to their own valuations and the investment required.

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CFO Denis Coleman indicated that the firm expects to operate with a 50 to 100 basis point buffer above its new minimum regulatory capital requirement. Chairman & CEO David Solomon addressed acquisitions, stating that while they are always looking for opportunities to accelerate the franchise, particularly in Asset & Wealth Management, the 'bar to do anything significant will be very, very high.'

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CEO David Solomon stated that despite a shift in sentiment, the business was performing well with active clients in early April. On efficiency, he confirmed the firm's commitment to the plan and announced an expected severance charge of approximately $150 million in the second quarter related to performance management actions.

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CEO David Solomon addressed the regulatory environment, noting the industry's lawsuit over the Federal Reserve's stress test (CCAR) transparency and expressing hope for a more constructive dialogue on Basel III and G-SIB rules. He stated that while unpredictable, the environment feels more constructive. Regarding dealmaking, Solomon confirmed a meaningful pickup in large-cap M&A and sponsor dialogues, expecting a more robust environment throughout 2025 driven by renewed CEO confidence.

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CEO David Solomon addressed competition by highlighting the firm's scale, breadth of services, and integrated client relationships. On the path to a 15%+ ROE, Solomon outlined three building blocks: 1) continued strong performance in Global Banking & Markets with a potential tailwind from a recovery in M&A, 2) improving margins and returns in Asset & Wealth Management, and 3) reducing the drag from the consumer platform business.

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Chairman & CEO Ted Pick stated that regulatory reform and improving market sentiment are clear tailwinds. He outlined organic capital deployment priorities in Investment Banking, Wealth Management, and Markets financing. Pick emphasized that while the dividend is paramount, the firm is seeing a pickup in strategic M&A activity as clients grow more accustomed to uncertainty, suggesting a strong second half of 2025.

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Executive Sharon Yeshaya stated that the firm has been investing in robust infrastructure across all processes for multiple years to support broad growth objectives, not just in one sector, and that results demonstrate their ability to attract assets. Regarding the bank, Yeshaya and Executive Ted Pick confirmed they are 'not there yet' and see the bank as a major growth engine. They highlighted opportunities to expand deposit products beyond sweeps and savings, particularly through E*TRADE and Workplace channels, and to grow lending, noting that loans to wealth households have doubled since 2018 but still lag peers.

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Co-President and Head of Institutional Securities Ted Pick outlined the capital priorities as: 1) the dividend, 2) organic investment across all business segments, and 3) opportunistic buybacks, noting the firm is comfortable with its capital buffer. CFO Sharon Yeshaya addressed NII, stating that while deposit trends are encouraging, near-term guidance is for a modest decline. She emphasized that growth in durable asset management fees is significantly outpacing the NII decline.

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CEO Ted Pick clarified that while some clients have paused, the banking pipeline hasn't fundamentally changed, and the firm had not seen a material slowdown at the start of the quarter. CFO Sharon Yeshaya stated that while SLR reform would be welcome, a more holistic review of the entire capital regime, including G-SIB and CCAR, is more important for the firm's capital deployment strategy.

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CFO Hope Dmuchowski noted that fee income from Average Daily Revenue (ADR) was at a one-year low. She explained that second-half expenses will see seasonal marketing increases and amortization from new tech projects. On buybacks, she stated they are contingent on loan growth; activity was paused in May as loan pipelines grew, and future repurchases will be balanced against organic growth needs.

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Chairman, President and CEO Bryan Jordan stated that achieving the 15%+ ROTCE target is tied to normalizing the CET1 ratio to the 10.0-10.5% range and leveraging their strong footprint. He described the mortgage warehouse business as efficient and countercyclical, noting they have raised the floor on balances and see significant upside from potential refi activity. Regarding hedging, Jordan and CFO Hope Dmuchowski explained that the bank's countercyclical businesses provide a natural hedge, and while they constantly model extreme rate scenarios up to 400 bps, they are not taking specific new actions at this time.

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CEO Bryan Jordan indicated an expectation of low-to-mid single-digit loan growth, tempered by likely paydowns in commercial real estate. CFO Hope Dmuchowski explained that reaching the 15%+ ROTCE target depends on three key levers: revenue growth, the normalization of credit provisions, and the deployment of excess capital. Jordan added that repatriating capital via buybacks is a meaningful tool to improve returns.

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CFO Hope Dmuchowski stated there is upside potential in fixed income, especially if rates decline further, noting that clients are already considering restructuring. CEO Bryan Jordan added that deposit pricing is viewed through a customer acquisition lens, focusing on growing relationships rather than managing to a specific loan-to-deposit ratio.

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Interim CFO Mark Keating confirmed the 80% full-year payout target would be achieved with a progressive cadence of buybacks. He stated they prudently manage to the higher end of their 10-11% CET1 target range. For future deposit growth, Keating emphasized that the primary driver is winning and installing new back-office custody business, which is supported by the record backlog of new servicing fees.

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CFO Mark Mason explained that standardized CET1 is the current binding constraint and the firm is disciplined in managing RWA on both standardized and advanced bases, while being mindful of the evolving regulatory landscape. CEO Jane Fraser addressed stablecoins, viewing them as an opportunity, not a threat. She highlighted Citi Token Services, which allows clients to move billions in tokenized deposits cross-border 24/7, as a superior offering that complements their existing global payments leadership.

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CFO Mark Mason confirmed that Standardized CET1 is currently the binding constraint and the firm is focused on efficient RWA utilization across both frameworks. CEO Jane Fraser positioned digital assets as a significant opportunity, not a threat. She highlighted Citi Token Services as a superior offering that enables clients to move money 24/7 cross-border, complementing the existing product suite and solving client complexities.

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CFO Mark Mason stated that the $20 billion share repurchase program remains on track and that RWA consumption is tied to meeting strong, accretive client demand. On credit, he explained that reserves now incorporate a weighted average unemployment rate of 5.1% (with a 6.7% downside scenario), and the firm feels well-reserved based on the current outlook. He noted the consumer remains resilient and credit performance is in line with expectations.

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CEO Jane Fraser detailed her vision for Wealth to become a global leader by tapping existing client assets, leveraging the firm's global footprint, and focusing on the investment business. She highlighted strong net new investment asset inflows as a key proof point. For Banking, she expressed confidence in reaching its targets, citing recent share gains across all products and geographies, a focus on key sectors like healthcare and technology, and disciplined capital allocation.

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CFO Mark Mason confirmed NII ex-markets is expected to be flat sequentially in Q4 and emphasized the firm's strong fee (NIR) growth momentum. CEO Jane Fraser highlighted significant progress in the Wealth business, pointing to 24% growth in client investment assets and steady progress toward its medium-term RoTCE target of 15-20%.

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CEO & Director Robin Vince stated that the primary focus is organic growth, which has strong momentum. He described the bar for M&A as 'very high,' requiring strong strategic, cultural, and financial sense. Vince also explained that the company sees no ceiling on its ROTCE potential, viewing current targets as milestones on a longer journey for a capital-light, platforms-oriented business.

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CEO Robin Vince stated that the Treasury market's "rails" are functioning well, but market depth has decreased, leading to wider bid-offer spreads. He clarified that markets are not dysfunctional, just less liquid. On digital assets, Vince viewed stablecoin legislation positively as a long-term enabler for on-chain transactions but does not expect it to be a significant near-term revenue driver. He emphasized BNY's strategy is to provide traditional rails to new players and be prepared to custody new asset types.

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CFO Dermot McDonogh reiterated confidence in sustainably hitting the medium-term targets, citing a track record of execution. He explained the platform model is the mechanism to drive top-line growth and efficiency. CEO Robin Vince added that the benefits are long-term, creating a foundation for growth into 2027-2029 and beyond.

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CEO Robin Vince stated that the current stock price is not a deterrent to buybacks. CFO Dermot McDonogh emphasized a commitment to positive operating leverage through the cycle, pointing to the Q3 ROTCE of 23%. Robin added that the diversified business mix provides resiliency. Regarding NII, Dermot guided to ~$1 billion for Q4, noting Q3 was elevated, and said he does not see NII as a headwind for 2025, partly due to repositioning the CIO book.

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Executives stated they will continue to grow the middle-market business regardless of the economic environment. On credit, they see no significant signs of weakness. The consumer remains fine, supported by a strong labor market, with expected stress only in lower-income bands. Commercial credit is also generally fine, with companies adjusting to macro factors like tariffs.

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CEO James Dimon suggested that the quickest way to reduce uncertainty would be for the administration to finalize its trade agreements. Regarding the Treasury market, he noted that sticky inflation is a factor and that while the market plumbing has flaws due to regulations, the Fed will likely step in only when it sees signs of panic, which is not the case currently.

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The biggest driver of credit vulnerability is always unemployment, with stagflation (high rates and high unemployment) being the worst-case scenario. On QT, the conventional wisdom is that it will end mid-year, which is consistent with the bank's own models and its outlook for deposit stabilization and growth in the second half of the year.

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CFO Jeremy Barnum described competition from non-banks as a 'reality' and noted that regulations pushing activity outside the banking system create an untested market structure. CEO James Dimon added that JPM is prepared to compete and will deploy capital to serve clients. On liquidity, Barnum suggested the recent repo market spike could indicate QT should be wound down soon. Dimon expressed more caution, citing inflationary risks and systemic issues if banks are constrained from providing liquidity.

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Senior Chairman and CEO David Zalman expressed confidence that deals can still be done, as potential partners have seen Prosperity's stock volatility before and trust its long-term value. He also highlighted that the bank's large capital base provides flexibility for cash components in deals. President and COO Kevin Hanigan added that while there's a psychological impact, sophisticated CEOs understand that exchange ratios are relative. Regarding the warehouse business, Hanigan acknowledged its rate dependency, noting that current high rates could impact the latter part of Q2 and the typically strong Q3, as activity is driven by purchase mortgages, not refinances.

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CEO David Zalman confirmed the 2025 NIM average target of 3.27% is based on the prime rate ending 2025 at 6.5%, with rapid rate cuts being the biggest risk. On M&A, Zalman emphasized that the primary focus is on improving NIM but the bank remains open to value-accretive deals. CFO Asylbek Osmonov added that approximately $5 billion in annual loan cash flow is expected, with fixed-rate loans yielding under 5% set to reprice around 7.5%.

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Momentum was strong throughout the quarter with no significant tail-off, and the Q2 pipeline remains robust. Growth is driven by both the significant contributions from new, experienced hires and very strong performance from the core, existing business lines.

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The increase in non-performing assets was attributed to two specific ABL credits undergoing workout plans, which can ultimately reduce losses. The bank is not concerned about a broader trend and has visibility on resolving a significant portion of NPAs. For the solar portfolio, policy risk affects future originations, not existing loans. Credit performance is improving, with a decrease in NPAs, and production remains stable.

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CFO Zachary Wasserman noted the bank's low 79% loan-to-deposit ratio provides a powerful opportunity to manage funding costs down while growing loans. On fees, Wasserman explained that while there is a correlation, particularly in treasury management, other key areas like wealth management are driven more by market penetration. He expressed confidence in achieving high single-digit to low double-digit fee revenue growth long-term, partly independent of loan growth.

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Zach Wasserman, Chief Financial Officer, detailed that NII is expected to see sustained growth throughout 2025, leading to a record year. This will be driven by NIM expansion as hedge drag turns into a benefit and by robust loan growth. He noted fewer rate cuts would be a short-term positive for NII. Regarding deposits, he highlighted that commercial deposits are accelerating, with the mortgage service vertical being a particularly strong contributor.

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CFO Zachary Wasserman expects the loan-to-deposit ratio to drift higher over time but remain in a set range, with deposit growth fueled by new relationships and a mix shifting toward money market accounts. Both Wasserman and CEO Stephen Steinour confirmed that the 2024 expense growth was elevated for investments and that the plan is for a lower rate of expense growth in 2025.

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CEO Stephen Steinour cited underlying economic strength, proactive lending in core areas like auto and business banking, and strong initial results from new verticals and market expansions as drivers of growth. CFO Zachary Wasserman responded that for NII, the company aims for the middle of its guided range across scenarios, emphasizing that the combination of a flat-to-rising NIM and accelerating loan growth will drive NII dollars higher from Q1.

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The recent decrease in rates is favorable to the credit profile, but the company remains cautious. Provisioning for '25-'26 is in line with expectations, reflecting loans expected to reprice through mid-2026. Performance progress can be measured by the rebalancing of the balance sheet, with a goal to reduce CRE to the low $30B range and grow C&I to $30B by 2027, driven by the new hires.

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CEO Thomas Cangemi expressed confidence in the multifamily portfolio's health and noted the office NPL was a specific case. On expenses, the bank is investing for growth but expects savings from system integrations in 2024. The 2023 expense guide remains the same.

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CEO and President Michael Roffler expressed confidence in the deposit beta forecast, noting that while it could be slightly higher if rates hold, the slowing pace of hikes mitigates the pressure. He clarified the NIM would stabilize mid-year, not fall to 2%, before inflecting higher. Founder and Executive Chairman Jim Herbert described the disruptive mortgage market as an "extraordinary opportunity" to gain market share, emphasizing it's a service and availability play, not a pricing one. Chief Banking Officer Mike Selfridge added that clients receive good pricing for full relationships.

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CEO Mike Roffler stated that new deposit pricing is not materially different from the existing portfolio and highlighted the large base of noninterest-bearing deposits as a buffer. He reiterated the focus on stable, long-term growth in net interest income, not margin expansion. Founder and Executive Chairman James Herbert confirmed that a cooling environment generally creates opportunities as competitors pull back, but noted First Republic's small market share makes gaining share consistently achievable.

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