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CFO James Reske stated the company is comfortable with the current securities level (13.5% of assets) and does not feel a need to increase it, citing over $5 billion in available liquidity. CEO Thomas Michael Price expressed confidence in doubling the bank's size within its existing Ohio and Pennsylvania footprint by gaining market share and enhancing product penetration, rather than entering new markets. He also commented positively on the significant economic potential from AI and data center-related power investments in the region.

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CFO James Reske projected the NIM could remain in the high 3.80s in 2026 in a flat-rate scenario, or around 3.80% with rate cuts, noting this assumes no recession. Chief Lending Officer Michael McCuen stated new loans are yielding around 7% but competitive pressure is increasing. Chief Credit Officer Brian Sohocki reported the on-balance-sheet SBA portfolio is diverse and around $165 million, with no notable credit concerns. Reske clarified that expiring swaps directly increase loan yields as they reprice from a low fixed rate to a higher variable SOFR-based rate.

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CFO James Reske stated that cash balances have normalized after paying down BTFP borrowings and the securities portfolio is expected to remain relatively flat. President and CEO Thomas Michael Price indicated the target concentration for the equipment finance book is around 10% or less of total loans, emphasizing the long-term goal is to grow the core C&I book. For the Center Bank deal, Reske provided key figures, including an issuance of 3 million shares and an expected EPS accretion of about $0.01 per quarter, noting that the accretable yield impact would be minimal.

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CFO Jim Reske clarified that while over 50% of loans are variable, only 33% are tied to short-term indices like SOFR. He provided a total loan portfolio duration of 2.76 years and specified that new fixed-rate loans were originated at 7.24% while run-offs were at 5.52%. President and CEO Mike Price stated he believes NPAs are near a peak and that the core bank's normalized charge-off rate is in the low teens.

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President & CEO Scott Kingsley explained that excess liquidity resulted from the Evans deal, modest loan growth, and strong deposit growth. EVP & CFO Annette Burns added that near-term uses include the recent sub-debt repayment and expected municipal outflows, with the remainder supporting loan growth. Regarding the securities portfolio, Kingsley indicated they are reinvesting cash flows and are open to opportunistic purchases. He confirmed Micron's recommitment and noted additional tax incentives are a net positive. On M&A, Kingsley emphasized the focus remains on successful integration but said the bank is well-capitalized and methodically evaluating opportunities to fill in its geographic footprint.

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Executive Scott Kingsley acknowledged that while the government has contractual obligations for the CHIPS Act, adjustments are possible, but he believes the core goal of domestic manufacturing will remain. CFO Annette Burns projected a stable fee income run rate around $46 million. Kingsley revised the full-year loan growth outlook down from 3-5% to 2-3%, citing a slow first quarter. Burns confirmed the CRE charge-off was on a previously disclosed credit, with the remaining exposure now written down to fair value.

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Executive Scott Kingsley stated the company is 'mono-focused' on the Evans integration with no set M&A timeline, instead highlighting numerous organic growth opportunities. CFO Annette Burns provided a 2025 tax rate estimate of 22.5% to 23%. Kingsley clarified that his market comment was not about a capital raise and noted the company has flexibility regarding its upcoming sub-debt maturity.

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CFO Annette Burns stated the expense level was not a surprise and was driven by a 'catch-up' on incentive compensation accruals due to strong performance; she confirmed a normalized quarterly expense range of $92-$94 million. She also affirmed there were no unusual items in the NIM. Regarding fee income, she explained Q3's strength in insurance is tied to typical commercial renewal timing. On reserves, she agreed that the mix shift away from higher-reserve runoff portfolios (like solar) is reducing the overall coverage ratio and that this trend could continue for a few more quarters before leveling off. Executive Scott Kingsley added context on the scale of the fee businesses and reinforced the reserve coverage rationale.

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CFO Patrick Barrett indicated a minimal NIM impact from rate cuts, at less than a penny per share annually per 25 bps. Chairman & CEO Christopher Maher explained new deposit costs will moderate as low-cost operating balances build over time. Maher also confirmed that 4 bps is a good proxy for quarterly loan yield expansion and that the bank expects CRE balances to remain steady, not in runoff.

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CEO Christopher Maher estimated that new deposits would be split between funding balance sheet growth and remixing higher-cost funding, depending on loan demand. He confirmed the teams are New York metro-centric. Regarding CRE, Maher stated the concentration is down to 3.93% at the holding company level due to competitive pressures, not a strategic de-emphasis. He added the bank would not do bulk sales and sees a significant margin opportunity in repricing a $1.2 billion CRE portfolio maturing over the next two years.

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CEO Christopher Maher was hesitant to provide specific figures before hiring concludes but confirmed conversations with teams that could bring in hundreds of millions in deposits with a favorable mix, including 35-45% noninterest-bearing accounts. Regarding the NIM, Maher projected a return to 3% is more likely a 2026 event than 2025, anticipating a 'steady, slow march' upward as the loan book reprices in the current rate environment.

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CFO Patrick Barrett provided a Q4 expense guide of $63-$65 million and noted the acquisitions are near-term EPS accretive. CEO Christopher Maher explained the higher Q4 run rate is due to the timing of the Spring Garden closing. Regarding capital, he stated the bank is keeping all options open for its repricing instruments but is 'loath to issue common' equity.

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SEVP & CFO Travis Lan clarified that CD growth was a mix of promotional rates and a shift from brokered ICS, and highlighted a significant repricing tailwind from brokered deposits maturing in Q3. Chairman & CEO Ira Robbins emphasized long-term strategic value from new verticals and reaffirmed a clear path to a 1% ROA by year-end, with a glide path toward 12-12.5% ROTCE next year and 15% in 2027. He noted that buybacks are balanced against strong organic growth opportunities.

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CEO Ira Robbins linked funding needs to moderated loan growth expectations. Executive Travis Lan confirmed the bank is on track for its 6% annual core deposit growth target and highlighted a $6 billion pool of brokered CDs maturing over the next 12 months, which presents a repricing opportunity. He clarified that the Q1 loan yield was significantly impacted by having two fewer days in the quarter, which was a larger factor than spread compression. He did not have the spot deposit cost available.

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Executive Travis Lan stated that the elevated cash will normalize throughout the year as it is put to work, with the securities portfolio expected to grow by over $500 million in 2025. He noted the December average cost of deposits was 2.87%. CEO Ira Robbins addressed the retail strategy, explaining that costs for branch investments are in the guidance and that there are significant opportunities for growth within the existing New Jersey footprint due to market disruption, in addition to recent openings in other markets like Beverly Hills.

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Executives Travis Lan and Ira Robbins stated that NIM is expected to expand, driven by outperforming deposit betas and the repricing of fixed-rate assets. The flat fee income guide was described as conservative, and CEO Ira Robbins suggested a 1%+ ROA is achievable soon after credit normalizes. An executive noted Q4 charge-offs could be elevated due to isolated loans but would not be materially out of line for the full year.

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CEO Curtis Myers emphasized a commitment to a diversified loan book, noting C&I is a strategic focus but is currently very competitive. CFO Richard Kraemer added that new loan origination spreads have compressed by about an eighth to a quarter from their peaks. He projected accretable yield to be in an $11M-$12M range. Myers stated that capital allocation prioritizes organic growth, with buybacks considered opportunistically.

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Chief Financial Officer Rick Kraemer confirmed no material interest recapture occurred. Chairman and Executive Officer Curtis Myers explained that risk actions included a high volume of troubled asset resolutions, prudent decisions on construction loan conversions, and exiting some auto dealer relationships. He specified that D.C. office exposure is limited to $105 million in the metro area, reflecting a historically cautious approach to properties with federal government leases.

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CFO Rick Kraemer directed him to the earnings supplement for loan mix details and explained that while loan yields face near-term pressure, they should rebound as the adjustable-rate portfolio reprices. He also noted deposit betas are improving. CEO Curtis Myers stated that loan growth will be diversified but is tempered by headwinds from the indirect auto runoff and acquired loan repositioning, resulting in a low to mid-single-digit growth forecast.

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CFO Designee Rick Kraemer detailed that the bank had already lowered rates on about $10 billion in deposits and expects a long-term down-cycle deposit beta near 30%. He also clarified a misstatement in the presentation, confirming that the operating expense guidance for both 2024 and 2025 excludes CDI amortization.

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CFO Douglas Schosser noted that new commercial loans are originating at 7.26% while old ones are rolling off at 6.76%. CEO Louis Torchio added that the bank is maintaining pricing discipline, which could constrain volume. Torchio confirmed that consumer lending, particularly indirect auto and home equity, is a strategic lever they can use, but its deployment is actively balanced against credit quality risk and overall yield, with the flexibility to pull back if the consumer credit environment weakens.

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CFO Douglas Schosser stated that while the bank will execute on good CRE deals, it is not a strategic focus to materially grow the portfolio, confirming a 'flattish' outlook is a fair assumption. Chief Credit Officer Thomas Creal added they are being strategic about CRE opportunities. Schosser agreed the current rate environment provides an opportunity for margin expansion, guiding for continued growth. Regarding the provision, he indicated that it should see slight increases to support projected loan growth, assuming a stable credit environment.

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CFO Douglas Schosser directed the question on loan mix to the earnings presentation, which showed 24% of loans are floating rate. CEO Louis Torchio explained that while there is no specific C&I target percentage, the goal is a more balanced book with ancillary fee and deposit benefits. Both executives confirmed the allowance for credit losses will prudently increase over time to reflect the risk profile of the C&I-focused strategy.

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President and CEO Sam Sidhu confirmed 100% of cubiX deposits are noninterest-bearing and that the previous 15% concentration cap is no longer in place since all such deposits are held in cash. CFO Philip Watkins and CEO Sam Sidhu clarified the securities sale involved corporates, CLOs, and non-agency CMBS, and did not include the bank's securitized consumer loans. Regarding hiring, Sidhu acknowledged that while some talent lockups are expiring, Customers Bank's recruitment pipeline is primarily driven by its reputation as a high-performing platform, attracting talent from a wide range of stable institutions.

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EVP and CFO Philip Watkins stated that discount accretion is now immaterial and not a significant factor for 2025 NII. He noted the reserve ratio decline was due to loan mix shifts and that while current levels are appropriate, continued loan growth could require higher provisions. President and CEO Samvir Sidhu explained that there is no new formal cap on crypto deposits as management assesses activity levels, and confirmed growth came from existing customers. He clarified that a significant reduction in brokered deposits occurred in Q4 and that these higher-cost funds remain a primary target for the ongoing deposit remix.

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CFO Philip Watkins guided that NIM would likely see modest expansion in Q3 before a boost in Q4, and confirmed the Q2 expense base is a reasonable run rate. President and CEO Sam Sidhu reiterated the bank's self-imposed 15% limit on digital asset-related deposits and stressed that its venture banking deposits are diversified and relationship-focused, mitigating concentration risks highlighted by regulators.

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CEO John Ciulla stated that while economic uncertainty has delayed some client investment, underlying demand supports the 4-5% annual loan growth forecast. He noted Webster is selectively participating in the CRE market, which has become more competitive. The Marathon joint venture is expected to go live late Q2 or early Q3, with its financial impact excluded from current forecasts. Ciulla explained that residential growth helps balance the portfolio, but its pace may slow. He also expressed hope for provisioning tailwinds if the economy stabilizes.

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CFO William Holland noted that deposit costs were declining and the bank anticipates a terminal beta of around 30% for the current rate cycle. CEO John Ciulla explained that Webster plans to expand its national businesses (like sponsor finance and ABL) rather than opening new local branches, unless a compelling M&A opportunity arises to expand its core footprint.

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CFO William Holland detailed that the bank has already achieved a ~60% down-beta on a significant portion of its deposit portfolio and anticipates a 30% beta on the total portfolio over the next five quarters of rate cuts, positioning the bank neutrally. CEO John Ciulla and CFO Holland explained that while there will be costs to prepare for Category 4 status, they will be spread out over 3-4 years and partially offset by efficiency savings, with full guidance coming in January.

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CFO William Burns projected stand-alone expense growth at 4-5% annually and noted some merger cost saves were already realized. CEO Frank Sorrentino added that they may phase in saves to properly nurture acquired client relationships. Mr. Burns stated new loan yields are around 7.25-7.40%. Mr. Sorrentino confirmed the deal is expected to close in Q2, implying imminent regulatory approval, and that the planned sub-debt raise will likely occur before closing in a favorable market.

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Chairman and CEO Frank Sorrentino attributed stronger loan growth to a robust pipeline, a strategic de-emphasis on non-relationship business, and increased client confidence. He noted deposit growth stemmed from a focus on relationship banking and capitalizing on market disruption. CFO Bill Burns provided specifics, stating Q4 loans were booked at 7.45% with a pipeline average of 7.62%, and confirmed plans to issue $175 million to $200 million in sub-debt to cover the transaction and upcoming repricing.

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Chairman and CEO Frank Sorrentino clarified that loan growth would likely remain muted for another one to two quarters before returning to a mid- to high-single-digit pace by Q2 2025, driven by organic efforts and merger synergies. CFO Bill Burns addressed the other points, stating the deposit beta for the next rate cut could range from 60-100%, but he is modeling 80% for now. He confirmed the plan to raise sub-debt in Q1 2025, likely combining it with a repricing for a total $175 million offering.

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EVP & CFO Mike Archer projected fee income could reach the $12.0-$12.5 million range in Q2, approaching $13 million by year-end. Both Archer and President & CEO Simon Griffiths confirmed a core quarterly expense run rate of $34.5-$35.0 million is a good near-term estimate, with more savings expected in the second half of the year. Griffiths described the integration as exceptionally smooth with strong employee retention and positive client feedback, and affirmed an appetite for future M&A.

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EVP and CFO Michael Archer stated that purchase accounting is being finalized but expects the CECL impact to be consistent with initial estimates. He projected a reported NIM potentially in the 2.85%-2.90% range and noted goodwill would likely be slightly higher than the original $40-$45 million forecast. President and CEO Simon Griffiths added that while the current focus is on integration, the bank maintains an appetite for the 'right deal' in contiguous markets.

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