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Senior EVP & CFO Robert Cafera responded that he expects the favorable deposit mix shift out of CDs to continue, but sees limited pricing leverage absent macro rate cuts. He projects the NIM will remain stable and north of 4%, with perhaps slight pressure. Mr. Cafera noted that newer markets like Southern California are providing outsized loan growth. CEO Neal Arnold added that the top priority for capital is funding organic growth, and while buybacks are considered, the focus remains on expansion opportunities.

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CFO William Matthews reiterated prior expense guidance, attributing the Q2 result to normal variability and noting that merit increases will impact Q3. CEO John Corbett highlighted positive revenue synergies, such as the successful adoption of the interest rate swap product by the Texas team, and confirmed that employee and client retention has been excellent.

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Executive William Matthews attributed part of the accretion strength to early payoffs on acquired loans, which boosted loan yields by 6 basis points. Executive Stephen Young added that investors should focus on the total loan yield (6.25%), which is sustainable as new loans are originated at higher rates (6.90%), preventing a future 'cliff'. Young clarified that the reported NIM should be considered the core NIM going forward and guided for a steady range of 3.80% to 3.90% for the rest of 2025, an increase from prior guidance.

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CEO John Corbett affirmed guidance for mid-single-digit loan growth in 2025, noting that pipelines are slightly softer in legacy markets but stronger in Texas. President William Matthews provided expense guidance, projecting quarterly noninterest expense of $355-$365 million early in the year, declining to $340-$350 million by Q4 as cost savings are realized. Executive Vice President and Chief Financial Officer Stephen Young stated that brokered deposits will serve as a flexible funding lever based on customer deposit growth.

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Executive William Matthews explained that the Q3 reserve release was model-driven by economic forecasts and that while future releases are possible, it's difficult to predict and not something to build into models. CEO John Corbett reiterated a mid-single-digit loan growth forecast for 2025, with potential for acceleration as the yield curve normalizes. Executive Stephen Young confirmed that the wind-down of IBTX's mortgage warehouse was already factored into their merger modeling and guidance.

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CEO Jerry Plush stated that while NPLs are declining, the focus remains on proactively strengthening the bank's risk culture as part of its transition to a regional bank. He noted the allowance for NPLs is back over 100%. He projected that the bank could achieve a 60% efficiency ratio as it grows to an asset size of '$11 billion plus,' and signaled a slowdown in physical branch expansion to manage costs while leveraging recent hires and technology for growth.

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CEO Gerald Plush and CFO Sharymar Yepez explained that recent buybacks were executed under a 10b5-1 plan primarily to offset dilution from stock grants and that the authorization is now largely utilized. On the margin, Yepez projected new loan yields between 6.25% and 6.50% and noted the bank is actively managing liability costs by keeping new time deposits short-term. Regarding credit, Plush acknowledged that asset resolution is taking more time than desired but emphasized the bank is being proactive, transparent, and is adding more resources to its special assets team to accelerate the process.

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Chairman, President & CEO Drake Mills stated that a key capital priority is the redemption of $75 million in subordinated debt in the fourth quarter, which he views as a beneficial use of cash. Regarding M&A, he emphasized a preference for lift-out strategies to attract banking teams from competitors, especially amid market consolidation, but remains open to quality core deposit opportunities. He also confirmed the current forecast indicates the bank will remain under the $10 billion asset threshold for 2025, thereby delaying the financial impact of the Durbin Amendment for another year.

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CFO Wally Wallace expressed confidence in their in-house deposit beta modeling, which aligns with historical trends. President and CEO of Origin Bank, Lance Hall, detailed how the 2025 incentive plan will shift to a 50/50 loan and deposit focus to drive growth. Chairman, President and CEO, Drake Mills, confirmed the bank will continue its mortgage warehouse business but is re-evaluating the broader mortgage delivery model for efficiency. He also stated that the primary use of capital is for organic growth and sub-debt redemption, prioritizing it over buybacks or M&A for the next 12-18 months.

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Executive VP & CFO James Mabry explained that Renasant anticipates modest expansion in its core NIM in the near term, noting the spot margin was 3.60% in June. He advised using the Q2 normal accretion of approximately $13 million as a proxy for future quarters, while cautioning that the accelerated portion is difficult to project. President & CEO Kevin Chapman added that loan and deposit growth pipelines remain strong, guiding for mid-single-digit growth for the remainder of the year.

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Executive Vice Chairman and CEO Mitch Waycaster detailed a strong starting loan pipeline of $189 million for Renasant and $83 million for the legacy First, but noted higher payoffs could lead to low single-digit net growth in Q2. Executive James Mabry suggested a Q2 expense base could be estimated by combining both companies' Q1 expenses plus merit increases, with cost efficiencies expected post-conversion. Mabry also confirmed that while share buybacks are an option due to increased capital flexibility, the primary goal is supporting organic growth, and any buyback decision would be weighed against other capital uses.

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Executive Vice Chairman and CEO Mitch Waycaster detailed a strong loan pipeline of $176 million and robust quarterly production of $507 million, but noted payoffs increased to $551 million. He anticipates low to mid-single-digit net loan growth going forward. EVP and Chief Operating Officer Kevin Chapman described the mortgage environment as 'tough' due to the long end of the yield curve remaining elevated, which pressures activity. Waycaster confirmed the acquisition of The First is still expected to close in the first half of 2025, pending regulatory approvals.

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President and COO Kevin Hanigan addressed loan growth, noting the quarter started better with pipelines looking good for low single-digit growth, and provided specific figures on the mortgage warehouse performance. Senior Chairman & CEO David Zalman added that commercial loan growth was a positive sign. Regarding the NIM, David Zalman and CFO Asylbek Osmanov explained that their models continue to show significant expansion over the next 6-24 months, driven by repricing of the bond portfolio and loan cash flows, even with potential rate cuts.

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Senior Chairman and CEO David Zalman stated the NIM forecast remains unchanged, as it's driven by asset repricing, not growth assumptions. President and COO Kevin Hanigan provided an update on the warehouse business, noting Q1 performance was slightly better than guided. He projected Q2 average balances between $1.05 billion and $1.1 billion, supported by two new clients, but expressed some concern if high rates persist. CFO Asylbek Osmonov explained that the decline in NSF and debit card income was due to normal first-quarter seasonality.

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President & Chief Banking Officer, Rich Bradshaw, stated that Q2 loan growth was impacted by some closing slippage but expects Q3 growth to rebound to around 6%. He also announced a key leadership hire in Alabama. Chairman & CEO, H. Lynn Harton, noted the M&A strategy is unchanged, focusing on small, high-performing banks, with a more optimistic outlook on deal viability. Executive VP & CFO, Jefferson Harralson, projected about five basis points of core margin expansion in Q3, driven by lower deposit costs and a mix shift to loans, and confirmed no significant debt maturities are on the horizon.

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CEO Stacy Kymes affirmed that mid-to-upper single-digit loan growth is a reasonable long-term expectation. Regarding credit, he highlighted the company's consistent and conservative underwriting, which should keep losses low. On technology, he sees limited domestic use cases for stablecoins but is monitoring developments, and reiterated a cautious lending approach, avoiding areas like private credit and binary-outcome tech ventures.

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CEO Stacy Kymes distinguished the current environment from 2014, citing significantly lower leverage (under 1x vs. over 3x) and more robust hedging by borrowers, which mitigates risk from price declines. CFO Martin Grunst stated that neither a scenario with more rate cuts nor one with no cuts would materially impact NII guidance, though the mix between trading fees and trading NII could shift.

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EVP of Regional Banking Marc Maun and CEO Stacy Kymes addressed loan growth, attributing the quarterly decline to unique payoffs in energy and healthcare after 11 consecutive growth quarters. They affirmed that core C&I loans grew 6.4% year-over-year and that pipelines remain strong, with significant capacity in CRE. On fees, EVP of Wealth Management Scott Grauer noted trading weakness was confined to MBS and that an inflection point has been reached. CFO Marty Grunst and CEO Stacy Kymes highlighted future opportunities in mortgage banking and the stability of diversified fee streams like transaction card services.

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Chairman & CEO John Allison firmly stated that hiring teams of lenders from competitors is not the company's style and is not part of their strategy. President of CCFG, Christopher Poulton, commented that any opportunity from California rebuilding would be a long-term prospect, as the process has been very slow to start.

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Executive John Marshall noted that boat loan volume was elevated due to manufacturer subsidies, masking tariff uncertainty. Executive Kevin Hester confirmed general borrower tepidness but said core markets remain active, though it's too early for definitive tariff impacts. Executive John Tipton stated that Q1 new loan coupons averaged 7.75% and that while deposit competition is stiff, maturing CDs should provide some relief, with the margin expected to hold steady. Executive John Allison confirmed the Texas credit cleanup is nearly complete.

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President of CCFG Chris Poulton explained the loan decline was an intentional, temporary rundown of the C&I book due to unattractive pricing and that the portfolio is expected to grow back. He also confirmed no direct exposure to the wildfires. Chairman John Allison and Chief Lending Officer Kevin Hester acknowledged competitive pressures but affirmed their opportunistic and disciplined approach to both loan growth and M&A.

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Chief Lending Officer Kevin Hester stated he has not heard of any negative impact to the Shore Premier portfolio, with Chairman John Allison adding that the destruction could even spur some new boat sales. Regarding the loan-to-deposit ratio, CEO Stephen Tipton expressed no discomfort, noting the bank has historically operated above 100% and has access to significant liquidity in its markets.

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President, Chairman & CEO Bryan Jordan described borrowers as "remarkably resilient" with increasing optimism, expecting improved activity in the latter half of 2025. Regarding capital, Jordan indicated that while he expects to lower capital targets over time, the bank will remain prudent. He affirmed that in the absence of strong organic growth, the company is comfortable repurchasing shares, viewing them as a valuable investment.

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CFO Hope Dmuchowski affirmed confidence in the guidance, noting the base case assumes three rate cuts. She explained that fewer cuts benefit NII, while more cuts would boost countercyclical fee income from businesses like FHN Financial and mortgage, which would also drive higher variable compensation expenses. Chairman, President and CEO Bryan Jordan added that the 11% CET1 target remains appropriate amid uncertainty, but the company views its stock as a good value and will continue to use excess capital for buybacks, supported by expected PPNR growth.

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CFO Hope Dmuchowski stated that the company has a structured approach to investments and is focused on PPNR growth, not necessarily accelerating spending. CEO Bryan Jordan added that the restructuring provides greater confidence in achieving positive operating leverage. Regarding loan demand, Jordan noted expected seasonal slowness in mortgage warehouse lending but highlighted recent market share gains. Chief Credit Officer Thomas Hung attributed these gains to the bank's expertise and consistent market presence.

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CFO Hope Dmuchowski explained that the NIM will likely be a "push and pull" each quarter, dependent on the pace of rate cuts, and mentioned shortening promo deposit terms to gain flexibility. CEO Bryan Jordan affirmed his expectation for positive PPNR growth in 2025, driven by a balance of revenue growth and expense control.

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CFO Michael Achary stated that while the company is comfortable operating with a CET1 ratio between 11% and 11.5% and a TCE ratio around 8%, these are not hard limits. President and CEO John Hairston added that loan growth is primarily driven by acquiring new full-relationship clients, as businesses have become less sensitive to macroeconomic headlines.

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CFO Michael Achary confirmed Hancock Whitney is increasing its buyback, stating the pace will be at or above the prior quarter's level, representing a significant year-over-year increase, contingent on the external environment. Chief Credit Officer Chris Ziluca explained that the bank is analyzing sectors vulnerable to tariffs and engaging with customers, who are mostly in a 'wait and see' mode. CEO John Hairston added that client behavior does not indicate imminent recession fears. Finally, Mr. Achary clarified that the PPNR guidance increase is driven by both the Sabal acquisition and stronger core fee income, as well as underlying expense savings that offset Sabal's costs.

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CFO Michael Achary stated that buybacks, which slowed in Q4 due to the Sabal deal, are expected to return to at least Q2/Q3 levels. CEO John Hairston attributed loan growth confidence to the cessation of the SNIC portfolio runoff and strong production in core areas like business banking and CRE. Regarding Sabal, Achary deferred detailed financial guidance until after Q1 but confirmed the deal is accretive from day one.

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Chief Credit Officer Christopher Ziluca explained that the criticized loan migration was diversified across the C&I book, partly influenced by a recent SNC exam, and not concentrated in specific sectors. He noted that while lower rates would help, softening demand and higher operating costs are also factors. President and CEO John Hairston added that the purposeful headwind from SNC reductions is now largely complete, and while overall demand is tepid, commercial pipelines are building, setting up for a better growth story in 2025.

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CEO Phillip Green attributed the reduction in problem loans to specific resolutions and payoffs, including a large apartment project. CFO Dan Geddes added that the reserve build was a prudent measure to account for tariff and recession risks. Regarding the mortgage business, Green noted growth is strong due to its small base and a successful internal referral strategy, with Geddes highlighting that 30% of mortgages are to new bank customers.

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CEO Malcolm Holland and CFO Terry Earley expressed a bullish outlook on the government-guaranteed lending business, particularly the SBA segment, which has had two strong quarters. They expect revenue to be 'materially better' than last year but not at 2023 levels. Regarding the mortgage warehouse, Terry Earley noted its performance is tied to interest rates and that obtaining RWA relief is a key priority for the business.

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CEO Malcolm Holland confirmed that significant loan payoffs are tempering net growth, projecting it to be below mid-single-digits. CFO Terry Earley added that while payoffs helped reduce CRE concentration, the mortgage warehouse outlook is cautious due to seasonality and rates. Earley explained the expiring hedge contributes $1 million/month to NIM and will not be renewed at similar favorable terms, though other hedges will partially mitigate the impact. Both executives noted the consulting firm's work is a long-term initiative focused on broad process and technology efficiencies, not a quick fix.

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CFO Terry Earley responded that deposit costs are at or near their peak and the focus is now on remixing the deposit base by repricing or moving out higher-cost funds. Chief Credit Officer Curtis Anderson described the nonaccrual bucket as having a 'stable to positive' outlook with defined strategies for each credit. CEO Malcolm Holland added he expects a 'pretty good dip' in NPAs in Q3. Regarding the portfolio, Terry Earley stated that no further securities restructurings are planned, citing the portfolio's good yield and short duration, but mentioned they are looking at a BOLI restructure.

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Harold Carpenter (Executive) identified trucking and leveraged lending as initial focus areas for tariff impact analysis and noted that any significant economic deterioration would translate to higher reserves. He also explained that with over 50% of deposits indexed to Fed Funds and a short-term CD book, the bank has levers to pull on deposit costs. M. Turner (Executive) reiterated that expansion into new markets is contingent on finding the right leadership team, not a set timeline.

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M. Turner (executive) confirmed that loan capacity from new hires is expected to grow as the company continues its successful recruiting strategy, noting that new producers typically ramp up their books over a five-year period. On M&A, he stated the company's strategy remains unchanged, preferring its proven organic growth model of hiring revenue producers over the risks of acquisitions, though an exceptionally attractive opportunity would not be dismissed.

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Executive Jeremy Ford confirmed that capital priorities remain unchanged, with a $100 million share repurchase authorization planned for open windows, noting last year's activity was tempered by looming debt maturities. Executive William Furr addressed the loan growth outlook, attributing the 2-5% range to uncertainty around the Fed's actions, the lag between booking commitments and funding loans, and the variable retention of $10-$30 million per month in PrimeLending mortgages. Furr also clarified that the NII guidance already incorporates two rate cuts and that fewer cuts would actually be beneficial due to the company's asset-sensitive position.

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EVP and CFO William Furr attributed the loan yield decline to lower purchase accounting accretion, customer negotiations ahead of expected rate cuts, and the rapid reset of variable-rate loans. He confirmed that interest-bearing deposit costs have likely peaked and will decline with a target beta of 50-55% in a falling rate environment. Mr. Furr acknowledged that modest NIM pressure will likely continue for a few quarters. He also confirmed Hilltop will retain more mortgage loans, likely operating at the middle-to-high end of its guidance to redeploy excess cash.

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CFO Jamie Gregory explained that the $400 million share repurchase authorization provides significant flexibility and that the company monitors industry capital levels, suggesting targets could be adjusted as stress tests show excess capital. He added that elevated cash balances are expected to decline, which will be accretive to the margin, and that brokered deposits should also decrease as core deposit growth is forecast to align with loan growth.

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CEO Kevin Blair reiterated that the company's primary focus is organic growth through talent and technology investments, viewing industry disruption as a market share opportunity. He defined a 'normal' loan growth year for Synovus as 100-200 basis points above underlying GDP growth, which would translate to 4-5% growth in a normal economic environment.

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