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CFO James Britton projected that the balance sheet would likely trough at the end of 2025, with a potential slight contraction in Q3 before growth resumes into Q4 and 2026. CEO Thomas Shafer added that he anticipates one additional securitization in the second half of the year, likely closer to the fourth quarter, supplemented by natural portfolio runoff.

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CEO Thomas Shafer clarified that the NIM outlook conservatively assumes only two Fed rate cuts in 2025. He explained that the primary driver of balance sheet reduction will be the disposition of held-for-sale loans. Regarding expenses, Shafer acknowledged there will be periodic professional service costs to accelerate the remediation of internal controls, but he does not expect them to be significant.

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CEO Thomas Shafer explained that the charge-offs were related to a few long-monitored, high-risk credits where performance deteriorated, making it the appropriate time to take action. Executive Jamie Britton addressed deposits, stating that while the company values its customer service-related deposit clients, it may reduce concentrations in certain relationships to improve the bank's risk profile, balancing this with client needs. Regarding expenses, Britton noted the Q4 compensation increase was driven by year-end non-executive bonuses and expects the level to be lower in Q1, with future increases tied to revenue growth.

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Executive Christopher Naghibi confirmed that the approach to increasing the ACL will be a pragmatic and gradual process over time, rather than a single large step-up, balancing regulatory and accounting considerations. Executive Jamie Britton addressed the loan yield question, advising that the best assumption for the held-for-sale loans is the weighted average of the overall multifamily portfolio, suggesting a range of 3.70% to 3.75%.

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President & CEO Gregory Garrabrants and EVP & CFO Derrick Walsh clarified that the sale involved a handful of multifamily loans and was an opportunistic decision based on interest from buyers. For fiscal 2026, Mr. Garrabrants identified C&I and commercial real estate specialty as the largest growth drivers, with contributions also expected from cap call, lender finance, and jumbo mortgage. He definitively stated that the benefit from the lower California tax rate will go to the bottom line, as the company's expense discipline ratio is a pre-tax measure.

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CEO Gregory Garrabrants explained that the improvement in criticized loans was driven by timely payoffs, refinancings, and some loan sales at par, highlighting the strong underlying collateral value. CFO Derrick Walsh and Mr. Garrabrants attributed the ACL shift to two factors: loan growth was primarily in the C&I portfolio, and the quantitative model, incorporating Moody's economic forecasts, reflected increased risk from potential tariffs which disproportionately impacted the C&I outlook.

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President and CEO Greg Garrabrants stated that re-engaging with crypto requires more specific regulatory clarity and rules from primary regulators and the SEC. Regarding NPAs, he explained that the increase was due to a few idiosyncratic situations, such as a syndicated lender finance loan where the borrower is current but information is lacking. He expressed confidence that there is minimal loss content in the NPAs, noting many are paying and that the bank is proactively managing them. For CRESL, he specified that demand is primarily in multifamily and condo projects, both bridge and construction, in metro markets like Florida, Texas, and Southern California.

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President and CEO Greg Garrabrants stated he feels good about credit quality, noting that issues are idiosyncratic and resolutions are progressing without expectations of material loss. He clarified that spread pressure is not primarily in the niche fund finance business but more in standard 'club deals' where competitors are quick to concede on pricing. CFO Derrick Walsh attributed the expense increase to recent team hires and data processing costs, while Mr. Garrabrants added that he does not expect a similar level of growth next quarter as the company focuses on efficiency.

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Chief Strategy Officer Stephen Young explained that CD growth is directly tied to funding the bank's loan growth, and incremental deposits will naturally come at higher market rates. He attributed the core loan yield expansion to the ongoing repricing of the loan portfolio and reiterated that yields should continue to increase in a flat rate environment.

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CEO John Corbett attributed the IBTX loan decline to the planned wind-down of its mortgage warehouse business, which was factored into the deal model, along with some Q4 CRE paydowns. President William Matthews clarified that while no decision has been made on a securities restructure, a reasonable approach would be to neutralize the incremental lease expense from the sale-leaseback.

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Executive Stephen Young clarified that the Q3 NIM of 3.40% serves as a new baseline, and with deposit rates cut on October 1, he expects NIM to expand by 4-5 basis points in Q4. Regarding expenses, Executive William Matthews noted they are still finalizing 2025 plans but are confident in achieving stated cost saves. Stephen Young provided a more specific target, estimating the pro forma expense run rate would be around 2% of assets by the end of 2025.

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CEO David Brager explained that lower C&I line utilization is a customer-specific trend, as high-quality clients with excess cash are choosing to pay down debt rather than a sign of regional economic weakness. He expressed optimism for a turnaround, citing strong underlying transactional activity. Regarding deposit costs, Brager projected that the bank's deposit beta would be more favorable than the previous 30% in future rate cuts, as they can now pass through 100% of the cuts to a larger portion of accounts.

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President and CEO David Brager stated that while it's too early to determine the full impact of tariffs, the markets and customers have not yet shown significant negative effects. Regarding CRE, Mr. Brager noted that loan pipelines are strong, with April loan closings being the highest in 14 months, and he expressed confidence that new production would soon outpace payoffs. Executive E. Nicholson also directed attention to a slide detailing maturing CRE loans.

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CEO David Brager explained that proceeds from future sale-leasebacks could be used for reinvestment, unwinding some hedges, or addressing a portion of their brokered CDs. He confirmed there was no unusual noise in the Q3 loan yield expansion. Regarding the Fed's rate cut, he noted that only about 10% of loans reset immediately, so the full impact of the 50 basis point cut would 'bleed out over time' rather than being felt all at once.

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CBO Anthony Kim confirmed that the C&I pipeline entering Q3 is significantly higher and that C&I, along with mortgage and SBA, will drive growth. CEO Bonita Lee added that overall production is typically higher in the second half. On buybacks, CFO Romolo Santarosa deferred to the board's quarterly decisions but pointed to the recent historical repurchase range of 25,000 to 75,000 shares per quarter as a reference. He also affirmed that expenses are expected to remain in a relatively stable range, accounting for normal seasonal variations.

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CEO Bonita Lee clarified that while production was solid, a 17% year-over-year increase in loan payoffs impacted net growth. She reiterated the forecast for low-to-mid-single-digit loan growth for the year and confirmed that deposit growth should follow a similar trend. CFO Romolo Santarosa stated that share repurchases would be opportunistic, depending on market conditions.

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Heng Chen, EVP & CFO, explained that a $3.4 million write-off of a deferred tax asset, due to a lower California state apportionment, impacted the tax rate. He further clarified that the ACL provision was primarily influenced by updated economic forecasts from Moody's, specifically a higher unemployment factor, rather than specific issues within the loan portfolio.

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President and CEO Chang Liu attributed the revised guidance to economic uncertainty, particularly the impact of tariffs on C&I clients who are pausing expansion to manage balance sheets. EVP and CFO Heng Chen added that the wider range also accounts for potential loan paydowns from importers who may halt business until conditions improve.

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President & CEO Chang Liu stated that after assessing affected areas by ZIP code, the bank had no reported losses in its commercial real estate, business banking, or SBA portfolios, with only minimal impact on a few C&I and residential loans. EVP & CFO Heng Chen explained the securities yield decline was due to maturing high-yield debt being replaced by lower-rate treasuries, and the bank does not plan to expand the securities portfolio.

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EVP and CFO Heng Chen clarified that the increased provision was a general bolstering of reserves rather than a specific provision for the new $38 million nonaccrual loan relationship. Regarding the loan maturity schedule, Mr. Chen stated he would provide the specific data later, noting that most hybrid loans are residential mortgages.

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EVP & CFO Christopher Del Moral-Niles explained that the timing of the stock's price drop coincided with a self-imposed blackout period ahead of earnings. He stated that the bank was unable to capitalize on the lower prices but will continue to deploy its remaining $241 million authorization on an opportunistic basis.

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CFO Christopher Del Moral-Niles described the FHLB advances as a flexible part of the balance sheet. He indicated the bank will continuously evaluate its options, which include paying them down with excess deposits or redeploying the funds into higher-returning securities, depending on market conditions.

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CFO Christopher Del Moral-Niles explained the priority is first to support customer borrowing needs, then manage liquidity, and finally pay down higher-cost borrowings. He confirmed they strategically timed a $1 billion FHLB maturity to coincide with the CD campaign, providing flexibility to either roll it over or pay it down depending on deposit inflows.

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Chairman, President & CEO Kevin Kim stated that the bank is continuously evaluating capital efficiency and noted the system conversion for Territorial is planned for the end of the following year. EVP & CFO Julianna Balicka clarified that the conversion timing does not necessarily delay major cost savings, as those were primarily from executive compensation, not IT. She also reported the average yield on new loan production was approximately 6.76%.

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Chief Financial Officer Julianna Balicka reiterated that loan growth momentum is coming from Korean subsidiary sectors and specialized C&I teams like healthcare and project finance. She stated the NIM impact of a rate cut would largely wash out and declined to give a specific basis point figure. Chief Operating Officer Peter Koh addressed credit, stating that asset quality remains stable and healthy, and while monitoring the tariff environment, the bank sees borrowers proactively diversifying supply chains.

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CFO Julianna Balicka detailed the loan portfolio, stating that 45% of loans are variable-rate, with $760 million of fixed-rate loans scheduled to reprice in 2025. Regarding deposits, Balicka noted that costs for money market, savings, and CD accounts have been reduced, with a beta of approximately 60% on the adjusted accounts. She added that new CDs are being originated at a blended rate of about 4.25%.

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EVP & Deputy COO Johnny Hsu attributed the C&I growth to increased line usage and new customers after a slow Q1, while noting construction growth was mainly from funding existing commitments. Chairman & CEO Li Yu added that new construction requests are increasing. Regarding the bond portfolio, an unnamed executive explained it was an opportunistic move to increase EPS, funding the investment at a rate 80 basis points cheaper than the yield on the ten-year assets purchased.

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Executive Wellington Chen attributed the dynamic to high churn in the bank's short-term and C&I loan portfolios. CFO Edward Czajka added that payoff activity has been elevated. Regarding growth initiatives, Czajka confirmed the bank has budgeted for new relationship and business development officers and is also opening a new branch in Manhattan, which will add to expenses.

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Executives Wellington Chen, Johnny Hsu, and Li Yu confirmed that loan demand increased after the Fed's rate cut but highlighted the ongoing challenge of defending the existing portfolio from competition. Li Yu expressed confidence in the bank's ability to attract the necessary deposits to fund growth. Executive Edward Czajka projected Q4 operating expenses to be in the range of $20.5 million to $21.0 million.

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Chairman and CEO Li Yu stated that the trade finance portfolio is not showing abnormal activity, as customers are managing inventory and supply chains. Executive Edward Czajka confirmed the decline in loan interest revenue was driven by $3 million in interest reversals, a lower day count, and the full-quarter impact of loans renewing at lower yields.

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CEO Aaron Graft acknowledged that DAT's acquisition positions them more directly in the factoring space, viewing it as another competitor among hundreds that sharpens their execution. CFO W. Brad Voss clarified that the entire USPS recovery amount was recognized as interest income.

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CEO Aaron Graft confirmed the Intelligence segment was a "pull from clients," shaped by their specific pain points and needs. Regarding LoadPay, Executive Todd Ritterbusch explained that while it is sold alongside FaaS for maximum value, it also has parallel sales channels. Graft elaborated that these channels include over 8,000 existing factoring clients and over 20,000 active select carriers on TriumphPay, giving LoadPay a significant distribution advantage and a high chance of success.

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CEO Aaron Graft detailed the LoadPay distribution strategy, targeting 8,500 existing factoring clients, 20,000+ select carriers, and partners like C.H. Robinson. He explained that while it's too early for precise net margin data, the revenue is primarily from interchange fees and expenses are already being carried. President of TriumphPay Melissa Forman clarified that the lost network factor simply moved its relationship off the network.

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Executive Aaron Graft confirmed several revenue drivers beyond those mentioned, including monetizing legacy payment clients (like C.H. Robinson), returning trucking companies to the factoring market, and new revenue from the 'green screens' platform. He noted Q2 would be 'noisy' and the back half of the year would offer a clearer view. An unnamed executive and Graft clarified that payment fees are charged on all transactions, not just network ones, allowing fee income to grow independently of volume as they reprice clients and demonstrate enhanced value.

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CEO Kevin Blair highlighted Synovus's strong culture, its position of offering large-bank capabilities with small-bank service, and a supportive credit process as key differentiators for attracting talent. EVP & CFO Jamie Gregory provided the buyback details: 500,000 shares repurchased at an average price of $44.64.

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CEO Kevin Blair explained that while it's hard to isolate, direct client outreach and surveys suggest about 15-20% of clients feel they will have a meaningful direct impact, primarily through input costs. He emphasized that the bank's diversified balance sheet is the best mitigant. CFO Andrew Gregory provided the average share repurchase price as $49.41.

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CEO Kevin Blair stated that the company expects to achieve modest loan growth in the first quarter. This outlook is based on current production pipelines and anticipated loan payoff activity.

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CFO Jamie Gregory confirmed the strategy is to maintain a short duration on the time deposit book to facilitate further downward repricing as the easing cycle progresses. An executive, Bob Derrick, provided color on the NPL, describing it as a relationship with two suburban office properties in different cities for which the bank has a resolution plan.

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CFO Michael Achary clarified that the buyback plan is guided by a dollar amount, approximately $40 million per quarter, rather than a fixed number of shares. He also noted that CD retention is expected to remain strong and that seasonal public fund inflows of $200-300 million are a key driver for deposit growth in the fourth quarter.

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CFO Michael Achary provided details, stating that for Q2, approximately $2.3 billion of CDs are maturing at a rate of 3.88% and are expected to reprice around 3.50% or lower. He confirmed that the low single-digit deposit growth guidance for the year is unchanged and accounts for seasonal public fund flows and the expected partial runoff of maturing CDs, which will result in a continued mix shift.

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CFO Michael Achary provided details that in Q1, $2.5 billion in CDs are maturing at 4.34% and are expected to renew around 3.74%. CEO John Hairston contextualized the hiring plan, stating it would result in a 15-20% increase in business bankers, a 10% increase in wealth advisors, and a 10% increase in commercial bankers by the end of 2026, with the financial impact being more significant in 2026 than 2025.

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CFO Michael Achary attributed the updated PPNR outlook to a flatter balance sheet than anticipated, which impacts NII, combined with non-repeatable specialty fee income from Q3 and a likely modest expense increase in Q4. President and CEO John Hairston stated that recruiting efforts are focused on higher-growth markets like Texas and Florida for commercial, business banking, SBA, and wealth advisors, but deferred providing specific hiring numbers until the January 2025 guidance call.

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President and CEO Jared Wolff conceded the press release wording was a "misstatement" and the ACL decline was driven by loan mix changes. CFO Joseph Kauder clarified that Q1 accretion was low on prepayments and the NIM guide is based on baseline accretion. Wolff added that the bank aims to keep its CET1 ratio at 10% or above and will be opportunistic with buybacks.

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CFO Joseph Kauder clarified the expense guidance is a range for the year, with Q1 typically being the peak for compensation expense. CEO Jared Wolff explained that HOA deposit balances tend to see outflows at year-end and month-end. Wolff also confirmed the bank achieved an approximate 54% beta on the most recent rate cut, demonstrating effective deposit cost management.

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CFO Joe Kauder noted the 6.18% loan yield would have been higher absent the Civic sale and highlighted new production yields around 8.3%. CEO Jared Wolff added that while floating rates will decline, new loan yields remain significantly higher than payoffs, which should incrementally grow the portfolio yield. Wolff also reaffirmed the long-term target for expense-to-average-assets is around 2%, excluding customer-related deposit costs.

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CEO Jared Wolff and CFO Joe Kauder reported the yield on the sold CIVIC loans was approximately 6.0% to 6.25%. Kauder confirmed the Q4 NIM guidance is inclusive of an assumed repositioning, though the guidance remains cautious. The executives explained that the quarterly FDIC expense was noisy due to true-ups and a special assessment, which is why they are guiding to a normalized run-rate of $10-$12 million by Q4.

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Executive William Holford explained that cash flows are currently being used to reduce wholesale funding but will be reinvested more actively once loan growth resumes. CEO Malcolm Holland and CFO Terry Earley affirmed their confidence in the fee income outlook, citing broad momentum across all categories. Terry Earley clarified that the CECL model's overall 65% downside weighting was maintained, but a portion was shifted to a more pessimistic scenario out of caution.

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Chief Credit and Operations Officer Robert Harvey confirmed the C&I momentum is expected to continue, driven by new bookings and a rise in line utilization to 36%. CEO Duane Dewey added that the recent hiring of over 10 new C&I-focused production personnel should bolster performance. Regarding repurchases, Dewey noted the main constraint is the $100 million board authorization, with deployment depending on organic growth and M&A. CFO Thomas Owens added that with a CET1 ratio of 11.5%, there will likely be continued opportunity for buybacks.

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CFO Thomas Owens stated there was nothing particularly unusual regarding loan fees in the third quarter. Chief Credit and Operations Officer Robert Harvey explained the NPA increase was driven by two corporate customers. One was a relapsed credit moved back to nonaccrual, and the other was a troubled credit that required concessions. He expressed confidence that both have been appropriately reserved for based on current appraisals and liquidation estimates.

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CEO Steven Gardner explained that while the lower CRE concentration doesn't materially change their view, they are more constructive on the segment as some uncertainties have abated, though they do not plan to grow it significantly. Regarding wildfire recovery, he noted that while cleanup will be a major effort, political leaders seem committed to reducing red tape, and the bank is well-positioned with capital and expertise to support rebuilding efforts in its communities.

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CFO Ronald Nicolas stated they are cautiously optimistic that the net interest margin will stabilize in late Q4 2024 or early Q1 2025, driven by managing deposit costs down. CEO Steven Gardner added that the timing also depends on converting the growing loan pipeline into funded loans. Gardner attributed the delayed stabilization to surprisingly strong loan payoffs in Q3 and the managed exit of a large credit relationship in early Q4, combined with previously muted loan demand.

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CEO Steven Gardner explained that arguments against a repositioning include the sizable immediate hit to earnings and tangible book value, uncertainty in the future interest rate environment, and questions around where to redeploy the cash. Regarding deposit betas, Gardner stated it's hard to predict but reiterated that their client relationships are based on service and trust, not price, and they have avoided aggressively repricing to retain all outflows.

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Executive Steven Gardner described a competitive landscape where some lenders are surprisingly aggressive on terms and deposit pricing, which he views as short-term thinking. He stated that while the bank is always looking to upgrade talent, it historically avoids team lift-outs. On M&A, Gardner cited significant headwinds, including valuations, market volatility, and major regulatory uncertainty regarding the timing of deal approvals, which has muted activity.

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