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President Jim Rine characterized the HSA changes as a 'marginal' opportunity rather than a 'huge windfall,' noting the newly eligible population is smaller than first anticipated and will require significant education. On expenses, CFO Ram Shankar and CEO Mariner Kemper confirmed they are on track for targeted cost saves but declined to give a specific growth rate, emphasizing their focus on achieving positive operating leverage and funding only investments with clear ROI.

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CEO J. Kemper and CFO Ram Shankar confirmed no major deposit repricing occurred, attributing DDA growth to typical institutional client volatility. They stated the next significant cost saves will materialize after the Q4 systems conversion. On tariffs, Kemper noted it's too early for a definitive impact, but clients are currently able to pass on costs and UMB's commercial focus provides insulation.

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Chairman and CEO J. Kemper confirmed that the core strategic and financial assumptions of the HTLF deal, including capital levels and deposit stability, remain intact despite some puts and takes. He noted that HTLF's customer deposits have actually grown. CFO Ram Shankar clarified that $250 million is a normalized quarterly expense run rate for standalone UMB, with a typical seasonal increase expected in Q1. J. Kemper added that UMB's interest in high-quality CRE remains consistent, not necessarily heightened.

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CFO Ram Shankar confirmed that excess cash was used to pay down borrowings and that cash balances would subsequently trend down. He advised focusing on average DDA balances, which were at a seasonal low in Q3 near $9.5 billion, and expects a build in Q4 from organic growth and public fund inflows. Chairman and CEO J. Kemper stated that while the Q4 loan pipeline looks strong, the bank doesn't see any impediments to its historical market-share-driven growth in 2025. On accretion, Kemper noted there were no updates and the next analysis would be at the deal's close, but that lower rates since the announcement are a positive.

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EVP & CFO David Della Camera confirmed that after including the impact of the indirect portfolio runoff and the held-for-sale loans from the branch transaction, the total loan decline would be in the 10-12% range for the year. He explicitly stated that the valuation allowance taken on the held-for-sale loans was a rate mark and purely reflective of interest rate changes, not credit deterioration.

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CFO Marcy Mutch projected continued margin expansion from the Q3 level of 2.97%, noting the September core margin was 3.03% and included any accrual reversals. She also stated no BTFP borrowings have been paid down, preserving flexibility. CEO Kevin Riley explained the office loan charge-offs were a proactive measure to write them down to realizable value and remove future earnings volatility from the portfolio.

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Chairman & CEO Peter Ho acknowledged a disappointing quarter for commercial loan growth, attributing it to market uncertainty. President & Chief Banking Officer James Polk added that while unusually high prepayments impacted C&I balances, pipelines are building for a return to modest growth. Regarding deposits, Ho stated that while DDA growth is a key focus, the environment is competitive, but he was encouraged by a 1% linked-quarter increase in average noninterest-bearing deposits.

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Chairman and CEO Peter Ho confirmed the 2.50% NIM target is attainable, contingent on stable low-cost deposits and continued fixed-asset turnover, noting that potential rate cuts would be accretive. CFO Dean Shigemura provided the average March deposit cost at 1.6%, with the exit rate slightly higher. Chief Risk Officer Bradley Shairson stated that no significant qualitative factors for the allowance for credit losses (ACL) were changed during the quarter.

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President and Chief Banking Officer James Polk attributed the end-of-period deposit growth to unexpected large public and commercial deposits, which he expects to moderate in Q4. Chairman and CEO Peter Ho stated that while the decline in noninterest-bearing deposits has slowed, the bank is not ready to declare an end to the negative trend. Regarding lodging, CFO Dean Shigemura and CEO Peter Ho explained it's difficult to isolate the exact exposure but it's a fraction of the total $700 million lodging portfolio, which is well-supported by strong sponsors and low LTVs.

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CFO James Moses stated that C&I spreads are stable, with new loans coming on in the mid-to-upper 6% range. He also detailed the securities strategy, which involves reinvesting cash flows from 2% yielding assets into similar-duration mortgage securities yielding around 4-4.25%. CEO Robert Harrison and CRO Lea Nakamura explained that the rise in residential non-performers stems from stress on lower-end consumers but emphasized the loans have low LTVs and minimal expected loss content.

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CEO Bob Harrison suggested that deposit betas would likely decline with subsequent rate cuts due to the already low deposit costs. CFO Jamie Moses clarified the restructured securities had a yield around 5% versus 2% for those sold, with the total portfolio yield at 2.10%. Harrison attributed the DDA growth primarily to strong execution by their teams rather than a significant shift in the competitive landscape.

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Chairman and CEO Phillip Green explained that Cullen/Frost is willing to compete aggressively on price but not on credit structure, which he sees as a sign of market aggression. CFO Dan Geddes stated that the primary focus for capital is protecting and growing the dividend and building the capital base, with no immediate plans for share repurchases at the current stock price. Phillip Green added that the focus is on growing Tangible Common Equity (TCE).

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CEO John Corbett responded that at $66 billion in assets, the company is a long way from the $100 billion threshold and has significant time to continue building its infrastructure. He expressed confidence in the bank's risk management team and their ability to manage evolving regulatory expectations.

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Executive Stephen Young reiterated that focusing on the total loan yield, modeled in the $6.15 to $6.25 range, is the best approach, but agreed that a baseline quarterly accretion figure around $50 million, excluding accelerated payoffs, was a reasonable starting point. Executive William Matthews explained that the CECL model's scenario weightings are held constant but a qualitative factor for tariff uncertainty was added. He noted that absent this factor, the provision would have been negative, and future provisions will depend on changes in the economic outlook.

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President and CEO Javier Ferrer confirmed that federal funds are being deployed and more projects are expected, though he cautioned against expecting a near-term pipeline of similar large P3 financings. Executive VP & CFO Jorge García added that the updated fee income guidance reflects strong transactional activity, which is typically higher in Q2 and Q4. He also affirmed that the current share repurchase pace is "reasonable" and that the stock remains attractive.

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CEO Ignacio Alvarez stated that while there may be some improvement, the electrical grid requires significant further investment before radical changes are seen, calling it a 7-10 year project. He and CFO Jorge Garcia confirmed the strong Q4 likely pulled some loan closings forward but that this benefits the full-year outlook. Alvarez also noted that maturing securities are rolling off at yields under 2%, around 1.5%.

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CFO Jorge Garcia stated that NII growth, not a specific capital target, remains the primary driver for ROTCE, though buybacks will be a contributing lever. On credit, CRO Lidio Soriano indicated that he does not expect charge-offs to return to higher historical levels in the short to medium term, citing the strong performance of the commercial and mortgage portfolios.

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EVP & CFO Christopher Del Moral-Niles clarified that deposit costs were indeed trending down, pointing to end-of-period data. He explained that the expected expense growth is due to programmatic investments in personnel and systems to enhance capabilities in areas like cyber, fraud, and regulatory compliance as the bank continues to scale.

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CFO Christopher Del Moral-Niles said the bank will continue its organic growth in wealth management while selectively exploring expansion opportunities. Regarding hedges, he highlighted that $1 billion of forward-starting swaps with a receive-fixed rate of around 4% will become active in the second half of 2025, positioning the bank for potential rate cuts.

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EVP & CFO Martin Grunst responded, stating that margin expansion is expected to continue, driven by fixed asset repricing and deposit pricing optimization. He advised viewing the securities portfolio as steady for the rest of the year and explained that the recent increase in FHLB borrowings was a temporary result of higher average balances in the trading account.

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CFO Martin Grunst and EVP of Wealth Management Scott Grauer explained that the decline in trading revenue was entirely volume-driven due to market uncertainty in February and March, but they expect a rebound. CEO Stacy Kymes stated that headwinds from energy and healthcare loan payoffs are expected to moderate. Regarding credit, Martin Grunst noted that the ACL coverage ratio is not expected to grow, as the Q1 calculation already included a judgmental overlay despite suggesting a potential reserve release.

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EVP & CFO David Stoehr stated that the CET1 ratio is expected to grow by about 10 basis points per quarter. He affirmed that the company views the 10% CET1 level as a floor and would prefer to grow it from there, even when considering M&A.

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CFO David Dykstra clarified the reserve's qualitative overlay was a response to specific market factor deterioration at quarter-end, not a change in the baseline forecast. Executive Timothy Crane attributed Q1 softness in wealth management to a platform upgrade, which is expected to drive future momentum. Crane also affirmed Wintrust's continued interest and financial capacity for disciplined M&A, citing the recent Macatawa deal as a positive example.

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Executive Timothy Crane stated that while DDA balances can be episodic, they have been steady around 21% of deposits and the absolute dollar amount is expected to continue growing. Executive Richard Murphy noted that commercial line utilization rates dipped in Q4 but remain historically low, representing a potential tailwind. CFO David Dykstra directed the question on accretion to the prior quarter's materials, stating they remain a good guide.

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David Stoehr, CFO, provided a rule of thumb, stating that for every 25 basis point reduction in SOFR, the company's net interest margin should benefit by approximately 2.5 basis points from its hedges, though timing differences can cause slight variations.

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CFO John Moran attributed the strong fee income performance to solid results in mortgage and wealth management. He also highlighted that the capital markets business, while small, performed well during the quarter, contributing to the positive outlook.

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Executive James Ryan stated that while there isn't a definitive target for the CET1 ratio yet, capital levels are running ahead of expectations, which provides flexibility. Executive John Moran suggested modeling the deposit beta progression as linear throughout the year is a reasonable estimate. He clarified that NII sensitivity is primarily to the belly of the curve (3-5 year), not the long end, and projected purchase accounting accretion would be about $10.5 million in Q1 and Q2.

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COO & President Luis Massiani explained that no material change to HSA's expense trajectory is anticipated, as a direct-to-consumer channel already exists. Chairman & CEO John Ciulla stated that the CECL provision will be driven by loan growth and credit performance, expressing comfort with the current conservative coverage ratio.

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CEO John Ciulla and CFO William Holland explained that the CECL process is complex and includes individual loss assessments and qualitative factors that offset the impact of higher non-performers. Holland clarified that without the change in economic scenario weighting, the reserve build would have been approximately $20 million lower. Ciulla added that resolving non-performers will involve a combination of natural resolutions, charge-offs, and opportunistic sales, with a full-year charge-off target in the 25 to 35 basis point range.

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CFO Harold Carpenter revealed that a recent client survey indicated a cautious sentiment, with existing customers not currently seeking to take on significant additional risk. CEO Terry Turner added that business owners are waiting for more clarity on macro issues like tariffs. On CRE, Carpenter stated that they resumed new lending 3-4 months ago, focusing on multifamily and industrial projects, while aiming to manage CRE exposure within their established capital targets.

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Executive Andrew Harmening and Chief Credit Officer Pat Ahern clarified that the investor CRE growth was primarily from construction projects successfully transitioning to income-producing properties, not new origination. CFO Derek Meyer added that the overall CRE portfolio has been relatively flat year-over-year. Harmening stated that C&I growth is broad-based across the footprint, not concentrated in one market, and is driven by new, tenured bankers whose non-solicitations are rolling off. He noted some spread compression in CRE but said the C&I business is bringing in valuable corresponding deposits.

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CEO Andrew Harmening explained that auto growth is deliberately managed to maintain high credit quality (796 average FICO) and avoid over-concentration, as the primary focus is on ramping up the commercial business. An executive detailed that the securities portfolio has ~$400M in quarterly runoff with a 25-50 bps positive reinvestment spread. Regarding 2025, Harmening declined to give specific guidance but noted that while expense plans are set, achieving positive operating leverage is highly dependent on the unknown pace of future rate cuts.

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CEO Kevin Blair stated that while capital markets fees can be lumpy, he anticipates another year of double-digit growth driven by increased product diversification and its correlation with higher loan production. Regarding M&A, he affirmed that the company's view is unchanged, with the primary focus remaining on its organic growth plan, which they believe is the best investment. M&A is not considered a 'front burner' strategy at this time.

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CFO Joe Kauder clarified that restructuring actions occurred throughout Q3, ensuring a full-quarter benefit in Q4. He estimated an additional rate cut could add approximately $0.01 to EPS, though CEO Jared Wolff noted the benefit would largely materialize in Q1. Regarding expenses, Kauder explained that while Q3 included a non-repeatable FDIC benefit, the current level is a 'pretty good run rate' going forward when considering other core improvements.

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CFO Joe Kauder projected year-end earning assets to be in the $30.5 billion to $32 billion range. CEO Jared Wolff expressed confidence in restarting the lender finance business, citing a strong existing base and positive market reception. Wolff stated that deposit growth would track loan growth to maintain a stable loan-to-deposit ratio. He also affirmed the bank is positioned for positive operating leverage in 2025 and is focused on setting achievable expectations to build a sustainably profitable company.

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