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    Jeff Rulis • D.A. Davidson & Co.

    Jeff Rulis's questions to First Interstate Bancsystem Inc (FIBK) leadership

    Jeff Rulis's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q2 2025

    Question

    Jeff Rulis of D.A. Davidson Companies inquired about the expected timing for the loan portfolio to stabilize, the potential level of earning assets by year-end, and the company's capital deployment priorities given its strengthening CET1 ratio.

    Answer

    EVP & CFO David Della Camera stated that after adjusting for strategic actions, the underlying loan decline was modest. He anticipates loan balances will be modestly lower in Q3, with hopes for stabilization in Q4. He also projected that earning assets would bottom in Q3. Regarding capital, Della Camera acknowledged the strong levels create optionality and confirmed the company is evaluating all deployment options. President & CEO James Reuter added that some of the significant loan payoffs in the quarter were intentional exits from non-strategic lending areas.

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    Jeff Rulis's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q1 2025

    Question

    Jeff Rulis of D.A. Davidson & Co. probed further into the credit issues, asking whether the increase in problem assets was driven more by a worsening macro environment or an internal 'credit reset' with a more critical view. He also asked for a sense of where the bank is in the credit review process and if further increases in criticized loans should be expected. Lastly, he requested a figure for the expected expense savings from the recently announced branch sale.

    Answer

    CEO James Reuter responded that the credit migration was a combination of both factors, citing slower lease-ups in multifamily due to economic conditions alongside the internal credit reset. He confirmed that the special external and internal reviews are complete, and future reviews will be part of normal-course due diligence, but declined to predict future credit trends given economic uncertainty. Deputy CFO David Della Camera quantified the branch sale impact, stating that noninterest expense as a percentage of the divested deposits is in the 'mid-2s'.

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    Jeff Rulis's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q4 2024

    Question

    Jeff Rulis inquired about the outlook for the loan loss reserve level in 2025, the expected pacing of net charge-offs throughout the year, and whether expense guidance includes costs for hiring new lending teams. He also asked for a 'temperature check' on staff morale following the recent CEO transition.

    Answer

    CFO Marcy Mutch stated that the reserve level is expected to remain stable, assuming no significant change in portfolio mix, and that net charge-offs are anticipated to be balanced throughout the year rather than front-loaded. CEO Jim Reuter added that there are no plans to hire lending teams, as he is confident in the existing staff, with expense increases earmarked for marketing. Both Ms. Mutch and Deputy CFO David Redmon affirmed that employee morale is positive and the team is encouraged by the new strategic direction.

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    Jeff Rulis's questions to Enterprise Financial Services Corp (EFSC) leadership

    Jeff Rulis's questions to Enterprise Financial Services Corp (EFSC) leadership • Q2 2025

    Question

    Jeff Rulis from D.A. Davidson Companies inquired about the outlook for fee income and expenses for the remainder of the year, as well as the company's capital priorities and how the upcoming branch acquisition will impact capital levels.

    Answer

    CFO Keene Turner explained that Q1 serves as a good proxy for fee income, with potential for more SBA loan sales and recurring BOLI income. On expenses, Turner indicated the current level is a new base to grow from, citing merit increases, new hire bonuses, and growing deposit vertical costs. CEO James Lally outlined capital priorities as supporting growth, evaluating the dividend, and completing the branch acquisition. Turner added the acquisition would use about 100 basis points of capital, bringing the TCE ratio to a target of 8.5%.

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    Jeff Rulis's questions to Enterprise Financial Services Corp (EFSC) leadership • Q1 2025

    Question

    Jeff Rulis inquired about the pro forma capital levels following the branch acquisition, the potential impact on share buybacks and future M&A appetite, and whether the acquired loan portfolio included any specific industry concentrations like dairy.

    Answer

    CFO and COO Keene Turner stated that pro forma capital will be right at the company's targets, allowing for continued, modestly offensive share repurchases. He noted the deal's low risk-weighted asset profile provides flexibility. Executive James Lally confirmed that the company was selective in the assets it acquired and is not taking on any dairy exposure from the transaction.

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    Jeff Rulis's questions to Enterprise Financial Services Corp (EFSC) leadership • Q4 2024

    Question

    Jeff Rulis of D.A. Davidson & Co. asked for clarification on the net interest margin (NIM) outlook, specifically whether the 4.10% forecast includes rate cuts, and inquired about the potential for the core margin to remain above 4%. He also requested an outlook on core operating expenses following the completion of the core system conversion.

    Answer

    Keene Turner, CFO & COO, explained that the 4.10% NIM forecast includes the reset of the SBA portfolio but does not assume any Fed rate cuts. He noted that with effective deposit cost management and a favorable yield curve, the margin could hold above 4% even with a couple of rate cuts. Regarding expenses, Turner stated that core conversion costs are now complete and projected that quarterly noninterest expenses would be roughly level to modestly growing throughout 2025, potentially remaining flat depending on the rate environment's impact on deposit-related costs.

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    Jeff Rulis's questions to Bank of Hawaii Corp (BOH) leadership

    Jeff Rulis's questions to Bank of Hawaii Corp (BOH) leadership • Q2 2025

    Question

    Jeff Rulis of D.A. Davidson Companies inquired about the trajectory of Bank of Hawaii's net interest margin (NIM), asking if a 2.50% level by year-end is still a reasonable expectation. He also asked about the outlook for the cost of funds and plans for balance sheet growth, particularly within the securities portfolio.

    Answer

    Vice Chair & CFO Bradley Satenberg affirmed that a 2.50% NIM is an achievable target, supported by five consecutive quarters of expansion. He noted the cost of deposits spot rate was 1.58% and expects the deposit beta to move towards 35% after upcoming CD repricing. Satenberg also confirmed that the bank will continue to grow its securities portfolio with excess liquidity, balancing purchases between fixed and floating-rate assets.

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    Jeff Rulis's questions to Bank of Hawaii Corp (BOH) leadership • Q1 2025

    Question

    Jeff Rulis asked for an update on the Hawaiian economy, specifically the real-time impact of tariffs on tourism. He also questioned the outlook for loan growth and pipelines, and sought clarification on the slight increase in net charge-offs.

    Answer

    Chairman and CEO Peter Ho noted that while tourism is stable, there are early signs of tariff sentiment affecting Canadian visitor traffic, leading to a potentially flattish outlook. President and Chief Banking Officer Jim Polk reaffirmed the low single-digit loan growth guidance, citing a solid commercial pipeline. Chief Risk Officer Bradley Shairson clarified that the rise in net charge-offs was due to a single $1.1 million loan that was previously a nonperforming asset, not a negative trend.

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    Jeff Rulis's questions to Bank of Hawaii Corp (BOH) leadership • Q4 2024

    Question

    Jeff Rulis from D.A. Davidson & Co. asked if the December net interest margin (NIM) of 2.26% is a clean starting point for Q1 2025 and inquired about the loan growth pipeline, including any potential effects from recent M&A activity in the Hawaiian market.

    Answer

    CFO Dean Shigemura confirmed the 2.26% December NIM is a "good jumping off point" for Q1 and noted the bank was actively lowering deposit rates. CEO Peter Ho added that loan growth was solid, led by commercial, and he expects a similar performance ahead. He stated it was too early to see any competitive impact from market M&A.

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    Jeff Rulis's questions to Bank of Hawaii Corp (BOH) leadership • Q3 2024

    Question

    Jeff Rulis of D.A. Davidson & Co. inquired about any one-time interest recoveries in the Q3 net interest margin (NIM), the average margin for September, the near-term NIM outlook considering potential Fed rate cuts, and the specific sectors contributing to the rise in non-accrual loans.

    Answer

    CFO Dean Shigemura confirmed there were no material one-time items in the margin, noting the September margin was 2.17%. He stated that while an initial rate cut would be a slight negative, the overall net interest income and margin are expected to gently increase due to asset repricing and balance sheet management. Chief Risk Officer Bradley Shairson added that the increase in non-accruals was not from a specific sector but from older, non-core lending activities and that the portfolio shows no systemic weakness.

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    Jeff Rulis's questions to Columbia Banking System Inc (COLB) leadership

    Jeff Rulis's questions to Columbia Banking System Inc (COLB) leadership • Q2 2025

    Question

    Jeff Rulis of D.A. Davidson Companies questioned the runoff timeline for the $6 billion in transactional assets, the net interest margin outlook for Q3, and the forward-looking expense run rate before the Pacific Premier acquisition.

    Answer

    President & CEO Clint Stein explained that the transactional asset runoff is a multi-year process, as a quick sale would be value-destructive, and emphasized that the portfolio remix improves profitability even with muted growth. EVP & CFO Ronald Farnsworth provided the adjusted June net interest margin at 3.79% and noted Q2 bond yields are a better go-forward indicator than Q1. Stein added that the current expense run rate is slightly low, as planned investments are being shifted to new markets, which will increase future spending.

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    Jeff Rulis's questions to Columbia Banking System Inc (COLB) leadership • Q4 2024

    Question

    Jeff Rulis of D.A. Davidson & Co. inquired about Columbia Banking System's capital deployment priorities for 2025, loan growth expectations, and potential opportunities in the single-family mortgage market.

    Answer

    President and CEO Clint Stein stated that capital generation exceeds operational needs and the dividend, providing flexibility for opportunistic capital actions in 2025 as regulatory ratios are above long-term targets. Executive Torran Nixon projected very low single-digit total loan growth, with C&I growth in the low to mid-single digits. Executive Christopher Merrywell and CEO Clint Stein clarified that while they will serve existing customers' mortgage needs, the strategy is to use the secondary market and reduce the on-balance-sheet single-family portfolio over time, not to expand it.

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    Jeff Rulis's questions to Columbia Banking System Inc (COLB) leadership • Q2 2024

    Question

    Jeff Rulis from D.A. Davidson inquired about strategies to reduce mortgage banking volatility, the loan production contribution from new expansion markets, and the company's current stance on M&A priorities.

    Answer

    EVP and CFO Ron Farnsworth stated that volatility in mortgage banking has been reduced, notably by hedging the MSR portfolio, with no plans to significantly reduce its size. President and CEO Clint Stein and President of Commercial Banking Torran Nixon described new market production as meaningful and profitable but declined to provide specific dollar figures. On M&A, Clint Stein emphasized that the top priority is optimizing the current franchise, with team lift-outs being a consideration and whole bank M&A being the lowest priority at this time.

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    Jeff Rulis's questions to QCR Holdings Inc (QCRH) leadership

    Jeff Rulis's questions to QCR Holdings Inc (QCRH) leadership • Q2 2025

    Question

    Jeff Rulis sought clarification on the correlation between the decline in non-performing loans and the increase in net charge-offs, the composition of the increase in criticized loans, and the net impact of the M2 portfolio runoff on the 8-10% gross loan growth guidance.

    Answer

    President & CEO Todd Gipple explained there was a high correlation, as the company aggressively charged off fully reserved NPAs from the M2 equipment finance portfolio, which improved the NPA ratio. He noted the criticized loan increase was due to a single, well-collateralized ag-related credit that is being managed out. He also clarified the gross loan growth guidance, providing specific M2 runoff projections of ~$32 million for Q3 and ~$28 million for Q4.

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    Jeff Rulis's questions to QCR Holdings Inc (QCRH) leadership • Q3 2024

    Question

    Jeff Rulis questioned if the NIM sensitivity to rate cuts would persist into 2025, whether the drop in criticized loans was related to the m2 Equipment Finance wind-down, and how customer loan demand and the competitive landscape have recently evolved.

    Answer

    Executive Todd Gipple suggested it is reasonable to expect continued NIM lift into 2025 if the Fed continues to cut rates, though it won't be perfectly linear. Executive Larry Helling clarified that the drop in criticized loans was due to a combination of upgrades and charge-offs, with credit stress concentrated in the 'micro business' sector. Helling also noted that pricing power remains good, the traditional commercial pipeline is modestly improving, and businesses are adjusting to current interest rates.

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    Jeff Rulis's questions to National Bank Holdings Corp (NBHC) leadership

    Jeff Rulis's questions to National Bank Holdings Corp (NBHC) leadership • Q2 2025

    Question

    Jeff Rulis of D.A. Davidson & Co. asked about National Bank Holdings' loan portfolio, questioning if the derisking of trucking and CRE loans is largely complete and if the $10 billion asset threshold is suppressing growth. He also inquired about the net interest margin (NIM) and what factors could drive it above the guided range toward 4%.

    Answer

    Chairman & CEO Timothy Laney confirmed the bulk of the targeted loan portfolio cleanup is finished and stated that the bank is not actively managing its size to stay below the $10 billion asset threshold. President Aldis Birkans added that the loan pipeline is the strongest it has been in the last twelve months. Regarding the NIM, Mr. Birkans explained that while they are proud of the 3.95% margin, significant future expansion would primarily be driven by growth in non-interest-bearing DDA deposits.

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    Jeff Rulis's questions to National Bank Holdings Corp (NBHC) leadership • Q1 2025

    Question

    Jeff Rulis asked for details on the Q1 fraud-related charge-off, including potential for recoveries, its impact on net interest margin, and the nature of other charge-offs. He also inquired about the expense run-rate needed to meet guidance and the timing for the 2UniFi revenue outlook.

    Answer

    Chairman and CEO Tim Laney confirmed the fraud was a non-systemic, one-off event that has been fully addressed, but could not comment on recoveries due to an ongoing investigation. President Aldis Birkans noted the margin impact was minimal at ~2 basis points and that other charge-offs were minor and previously reserved for. Tim Laney also confirmed the expense math and stated that 2UniFi revenue guidance, including a multi-year outlook, would be provided with Q4 results.

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    Jeff Rulis's questions to National Bank Holdings Corp (NBHC) leadership • Q3 2024

    Question

    Jeff Rulis asked for details on the net interest margin (NIM) outlook for late 2024 and into 2025, including the impact of potential Fed rate cuts. He also inquired about capital allocation priorities, specifically M&A, investment in the 2UniFi platform, and share buybacks.

    Answer

    President Aldis Birkans confirmed the mid-3.8% NIM guidance for Q4, noting the bank is relatively neutral to near-term rate cuts and that loan yields and deposit costs are trending favorably. Chairman and CEO Tim Laney added that detailed 2025 guidance would be provided next quarter. Regarding capital, Laney stated that the bank is prepared for strategic M&A, will continue investing in 2UniFi, but is not considering share buybacks at current valuation levels.

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    Jeff Rulis's questions to Wintrust Financial Corp (WTFC) leadership

    Jeff Rulis's questions to Wintrust Financial Corp (WTFC) leadership • Q2 2025

    Question

    Jeff Rulis of D.A. Davidson Companies asked for details on the increase in commercial (C&I) non-performing loans, inquired about areas of pressure in the C&I portfolio, and asked about the outlook for covered call option income.

    Answer

    Vice Chairman & Chief Lending Officer Richard Murphy explained the C&I NPL increase was due to one specific credit and was not industry-driven. EVP & CFO David Stoehr added that the overall NPL ratio remains low and that covered call income, typically $1M-$6M quarterly, acts as a hedge and generally increases when rates fall.

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    Jeff Rulis's questions to Wintrust Financial Corp (WTFC) leadership • Q4 2024

    Question

    Jeff Rulis inquired about the company's 2025 focus on expense management, its M&A appetite following the Macatawa acquisition, capital allocation priorities, and the reason for a change in OREO.

    Answer

    CFO David Dykstra clarified that expense management is a matter of 'good practice' and that they expect expense growth in the mid-single digits, which is below the anticipated loan growth, allowing for continued investment. Executive Timothy Crane stated that while M&A interest has increased post-election, Wintrust remains disciplined and focused on organic growth. Dykstra added that supporting growth is the primary use of capital and the OREO change was normal business flow.

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    Jeff Rulis's questions to Wintrust Financial Corp (WTFC) leadership • Q3 2024

    Question

    Jeff Rulis of D.A. Davidson sought details on the industry concentration of recent C&I charge-offs and questioned the rise in early-stage delinquencies in the office CRE portfolio. He also asked for guidance on the expense run rate, factoring in the full impact of the Macatawa acquisition.

    Answer

    Richard Murphy, EVP and Chief Credit Officer, clarified that the bulk of the C&I charge-offs were transportation-related. He explained the increase in early CRE delinquencies was administrative due to extended renewal negotiations and not a credit concern. David Stoehr, CFO, projected that Macatawa would add approximately $5 million to Q4 expenses and reiterated a mid-single-digit expense growth outlook for 2025.

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    Jeff Rulis's questions to Heritage Financial Corp (HFWA) leadership

    Jeff Rulis's questions to Heritage Financial Corp (HFWA) leadership • Q1 2025

    Question

    Jeff Rulis of D.A. Davidson & Co. inquired about Heritage Financial's competitive position in the Northwest amid ongoing M&A, the strategy behind acquiring a new team in Spokane, and the reason for pausing share buybacks in Q1.

    Answer

    CEO Jeff Deuel stated the bank is well-positioned with a solid balance sheet and is prepared for both team acquisitions and potential M&A. President Bryan McDonald added that the Spokane team addition was a strategic move to acquire talent while carefully managing expenses. CFO Don Hinson explained the Q1 buyback pause was a quarter-by-quarter decision influenced by a higher stock price, but noted repurchases could resume at current levels.

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    Jeff Rulis's questions to Heritage Financial Corp (HFWA) leadership • Q4 2024

    Question

    Jeff Rulis from D.A. Davidson & Co. inquired about Heritage Financial's net interest margin outlook, including the December average and the impact of recent restructuring, and also asked about capital allocation priorities like buybacks, dividends, and M&A.

    Answer

    Chief Accounting Officer Jennifer Nino stated the December core margin was 3.44% and expects continued expansion, aided by the late-quarter restructuring and lower borrowing costs. CEO of Heritage Bank Bryan McDonald confirmed M&A discussions are active but unchanged, and they plan to add at least one new team. Jennifer Nino added that moderate buybacks will continue, dependent on stock price, and further loss trades will be considered if market conditions are favorable.

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    Jeff Rulis's questions to Heritage Financial Corp (HFWA) leadership • Q3 2024

    Question

    Jeff Rulis inquired about the net interest margin (NIM) outlook following a recent balance sheet repositioning, 2025 loan growth expectations given delayed construction payoffs, and the expense run rate for 2025 considering recent and planned hires.

    Answer

    CFO Donald Hinson stated that while the NIM should be steady in Q4, he is optimistic about expansion in 2025, driven by repricing CDs and lower borrowing costs offsetting pressure from floating-rate loans. President and CEO of Heritage Bank Bryan McDonald projected mid-to-high single-digit loan growth for 2025, supported by a strong pipeline. CEO Jeff Deuel noted hiring would be judicious, while CFO Donald Hinson forecast expenses rising to a $41-$42 million quarterly range in 2025.

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    Jeff Rulis's questions to Banner Corp (BANR) leadership

    Jeff Rulis's questions to Banner Corp (BANR) leadership • Q1 2025

    Question

    Jeff Rulis of D.A. Davidson & Co. inquired about the drivers behind the better-than-expected net interest margin (NIM), future margin expectations, credit quality trends in the agriculture portfolio, C&I line utilization, and the full-year loan growth outlook.

    Answer

    EVP & CFO Robert Butterfield attributed the strong NIM to higher earning asset yields and stable funding costs, projecting further expansion in Q2 assuming the Fed remains on pause. EVP & Chief Credit Officer Jill Rice confirmed the agriculture portfolio is a key area of watch due to tariff risks but noted its small size (3% of loans). She also stated C&I utilization is in the mid-30% range and reiterated the mid-single-digit loan growth target for 2025, supported by rebuilding commercial pipelines.

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    Jeff Rulis's questions to Banner Corp (BANR) leadership • Q4 2024

    Question

    Jeff Rulis inquired about Banner's net interest margin (NIM), asking about any unusual recoveries, the impact of a maturing hedge, and the outlook for 2025. He also asked for a strategic update on the mortgage business and the loan growth forecast for the upcoming year.

    Answer

    Executive Mark J. Grescovich and CFO Robert Butterfield clarified that the Q4 margin improvement was driven by lower funding costs and a maturing hedge, not unusual recoveries, calling the 3.82% NIM a 'pure number'. Butterfield projected a relatively flat Q1 NIM due to rate cut impacts on loan yields. Grescovich affirmed the company's long-term commitment to its mortgage banking business, seeing opportunity in market disruption. Executive Jill Rice confirmed the company is targeting mid-single-digit loan growth for 2025.

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    Jeff Rulis's questions to Banner Corp (BANR) leadership • Q3 2024

    Question

    Jeff Rulis inquired about the net interest margin outlook for Q4 and 2025 given potential Fed rate cuts, asked for details on the increase in nonaccrual loans, and sought management's perspective on M&A activity by credit unions in the Northwest.

    Answer

    EVP and CFO Robert Butterfield pointed to rate sensitivity disclosures, noting the bank is slightly asset sensitive and has the potential to outperform its modeled 28% downside deposit beta. EVP, Commercial Banking Jill Rice attributed the rise in nonperforming loans primarily to a single Northern California agricultural relationship in tree nuts, with the remainder being smaller consumer and small business loans. President and CEO Mark J. Grescovich commented that while credit unions have an unfair pricing advantage in M&A, any banks they acquire were likely already reviewed by traditional bank buyers like Banner.

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