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The company expects a continued favorable deposit mix shift but limited pricing leverage without rate cuts. The net interest margin is projected to remain stable, slightly above 4%. Loan growth is strong in new markets like Southern California, and they view market disruption from M&A as an opportunity. The primary focus for capital remains on funding organic growth, with buybacks being a lower priority.

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CFO Robert Cafera projected the NIM would remain strong and north of 4%, albeit with some potential for slight pressure. He expects a continued favorable deposit mix shift away from CDs but sees limited pricing leverage without Fed rate cuts. Cafera noted that newer markets like Southern California are making outsized contributions to loan growth. CEO Neal Arnold affirmed that organic growth is the top capital priority, with a focus on expansion opportunities over share buybacks.

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CFO Robert Cafera expects the favorable deposit mix shift from CDs to transaction accounts to continue but anticipates little pricing change absent Fed cuts. He projects the NIM will remain relatively consistent, with slight pressure but staying above 4%. Mr. Cafera noted that new markets like Southern California are making outsized contributions to loan growth. CEO Neal Arnold affirmed that organic growth is the top priority for capital, and while buybacks are considered, the focus remains on expansion opportunities. Mr. Arnold also highlighted the pleasant surprise of strong deposit growth relative to loans in new markets.

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EVP & CFO Gregory Robertson projected core expenses would rise to the low $50 million range in Q3, with partial cost savings from the Oakwood conversion impacting Q4. He anticipates a 4-6 basis point margin improvement for the remainder of the year, likely weighted towards Q4. On loan growth, Robertson and CEO Jude Melville reiterated a mid-single-digit growth outlook for the rest of the year, possibly at the higher end of the range, emphasizing a balanced approach focused on capital accretion and concentration risk management.

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CEO Jude Melville clarified that the branch sale occurred in early Q2 and did not impact Q1 deposit figures, but will likely result in flattish deposit growth for Q2. CFO Gregory Robertson explained the increase in special mention CRE loans was primarily due to risk rating downgrades reflecting interest rate stress on debt service coverage, rather than fundamental credit deterioration. Regarding capital, Melville stated that while buybacks are a consideration, the immediate priority is to continue building capital levels before actively pursuing such actions.

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CEO David Melville and CFO Gregory Robertson explained that the strong C&I growth reflects a strategic de-emphasis on CRE and construction lending, which has lowered concentration risk significantly. Melville stated there are no major hiring initiatives planned for 2025, as the bank has capacity to grow with its current team. He reaffirmed the mid-single-digit loan growth forecast for 2025. Robertson confirmed that no material cost savings from the Oakwood deal are expected in 2025, with synergies anticipated to be realized in 2026 following a late 2025 system conversion.

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CFO Gregory Robertson and CEO David Melville responded. Robertson confirmed a strong retention rate on maturing CDs, which supports the 3.50% core NIM target by Q2 2025. Melville added that they are ahead of schedule, though a few basis points are tied to a variable factoring product. Regarding Oakwood, they confirmed the go-forward accretion estimate of $700k-$800k per quarter is inclusive of the deal, but final marks are pending. On credit, Robertson attributed the NPL increase to a single, soon-to-be-resolved SBA loan and the watch list growth to the interest rate environment, characterizing it as a normalization of credit.

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CFO Rob Anderson stated the global correspondent deposits are currently $268 million, or just over 10% of the total deposit book, and he doesn't foresee it exceeding 15%. President, CEO & Chairman Luis de la Aguilera added that the business is built on deep relationships and is handled conservatively. Both executives confirmed the deposits have a very low beta and are sticky. Regarding M&A, Mr. de la Aguilera noted they are always opportunistic. For loan growth, Mr. Anderson guided towards a conservative low-teens growth rate, with quarterly originations between $150 million and $180 million.

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CFO Rob Anderson stated the international deposit book is about $268 million, or just over 10% of total deposits, and has historically remained below 15%. CEO Luis de la Aguilera emphasized the business is handled conservatively and that the bank is always opportunistic regarding M&A and talent acquisition from market dislocations. Regarding growth, CFO Anderson guided towards a conservative low-teens loan growth rate, with quarterly originations expected between $150 million and $180 million.

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CFO Rob Anderson stated the global correspondent banking book is $268 million, or just over 10% of deposits, and has historically remained below 15%. President, CEO & Chairman Luis de la Aguilera emphasized the low-risk, relationship-based nature of the business and its high stickiness. Regarding M&A, he confirmed the bank is always opportunistic in hiring from market dislocations and maintains relationships for potential bank acquisitions. For loan growth, Mr. Anderson guided towards a more conservative low-teens rate, with quarterly originations expected between $150 million and $180 million.

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CFO Rob Anderson specified the global correspondent banking book is $268 million, or just over 10% of deposits, and is not expected to exceed 15%. President, CEO & Chairman Luis de la Aguilera confirmed these deposits have low beta and high stickiness, and noted the bank is opportunistic regarding M&A-driven hiring. Regarding loan growth, Rob Anderson guided to a conservative low-teens percentage growth rate, with quarterly originations expected between $150 million and $180 million.

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CFO Rob Anderson stated the global correspondent banking book is $268 million, or just over 10% of deposits, and is not expected to exceed 15%. He confirmed these deposits have low beta and high stickiness. President, CEO & Chairman Luis de la Aguilera affirmed the bank is always opportunistic regarding M&A and hiring from market dislocations. Regarding growth, Rob Anderson guided towards a more conservative low-teens loan growth rate, with quarterly originations expected between $150 million and $180 million.

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CFO Rob Anderson stated the global correspondent banking deposits are $268 million, or just over 10% of total deposits, and he does not foresee the concentration exceeding 15%. He also guided loan growth more conservatively to the low-double-digits. President, CEO & Chairman Luis de la Aguilera confirmed the bank is always opportunistic regarding M&A and has a history of hiring talent from market dislocations. He also noted they leverage correspondent banking relationships to attract personal accounts from foreign executives.

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Executive Luis de la Aguilera confirmed new hires were made to support the HOA, business banking, and retail verticals, and highlighted a significant opportunity in HOA deposits due to new state legislation. CFO Robert Anderson projected the quarterly expense base would gradually increase from $12.1 million toward the $12.3-$12.4 million range, driven by new hires and performance-based incentive accruals. De la Aguilera affirmed that organic growth continues to be the bank's capital priority.

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Executive Luis de la Aguilera stated he is 'bullish' on association banking, citing the large market and the bank's selective approach focused on professionally managed associations. He confirmed the scalability of this and other verticals. CFO Robert Anderson clarified that the increase in 'other' service fees was driven by loan prepayment penalties. On hiring, de la Aguilera said the bank is properly staffed for its 2025 plans but will remain opportunistic for key talent, without budgeting for new teams.

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CEO Luis de la Aguilera detailed the growth of specialized deposit verticals from $312 million in 2020 to $644 million in Q3 2024, noting the trend is continuous. He described the incentive plan as semiannual, rewarding loan and deposit growth with a strong focus on asset quality. CFO Robert Anderson projected the NIM would continue to grind higher from the 3.09% September level, driven by loan repricing and effective management of deposit costs. Anderson also confirmed the expense-to-average-assets ratio is expected to hold in the 1.80% to 1.90% range.

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CEO Lee Gibson confirmed that recent M&A presents hiring opportunities and that Southside is open to strategic acquisitions. President Keith Donahoe reported that the restructured multifamily loan is performing well and expected to move off the books at maturity. He clarified that the lowered loan growth guidance is due to unpredictable payoffs, like a recent $50 million oil and gas loan, despite strong new loan production and a growing pipeline of $2.1 billion.

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CEO Lee Gibson acknowledged the potential to hire talent from recent M&A activity and expressed interest in strategic acquisitions as more sellers emerge in Texas. President Keith Donahoe confirmed that the restructured multifamily loan is performing well with positive leasing activity and is expected to move off the books at maturity. Donahoe also explained that while new loan production is strong, unpredictable payoffs, like a recent $50 million oil and gas loan, led to the revised 3-4% growth guidance. He noted the pipeline increased to $2.1 billion, with C&I now comprising 30% of that total.

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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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CFO Valerie Toalson stated that there are no significant changes expected to deposit betas and that the bank's interest rate sensitivity profile remains relatively neutral. CEO Dan Rollins confirmed that the bank does not anticipate using its share buyback program in the near term, as the priority is to build capital following the recent M&A activity.

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Senior EVP & CFO Valerie Toalson stated there would be no significant changes to betas and that the bank's interest rate sensitivity profile remains relatively neutral. Chairman and CEO Dan Rollins confirmed that due to the need to build capital following the Industry transaction, the company does not expect to be active with its share buyback program in the current quarter.

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CEO James Rollins and CFO Valerie Toalson dismissed the line utilization change as insignificant and within a normal range. Regarding credit concerns, Rollins stated that credit quality is stable. Executive Chris Bagley added that while there is anxiousness across the entire customer base due to uncertainty, the bank has not identified any specific segment that is overly concerning and continues to evaluate on a credit-by-credit basis.

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CEO James Rollins indicated limited flexibility on expenses due to ongoing investments in people and technology. CFO Valerie Toalson stated they are more bullish on net interest income growth than fee income. Regarding credit, Rollins and executive Chris Bagley acknowledged the guidance could be conservative but is designed to account for the potential lumpiness of charge-offs.

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Chairman and CEO James Rollins characterized hiring as 'normal investing' and not indicative of a large-scale team lift-out. He confirmed the bank will remain opportunistic with its share buyback program. On M&A, Rollins reiterated a strong preference for in-market acquisitions to build scale in key cities like Tampa, Nashville, Houston, and Dallas, confirming that conversations are ongoing.

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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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President and COO Kevin Hanigan projected low single-digit loan growth for the rest of the year and noted the mortgage warehouse averaged $1.307 billion quarter-to-date, expecting Q3 to be stronger than Q2. Senior Chairman and CEO David Zalman provided detailed NIM expansion models, projecting a rise to 3.35% in six months and 3.48% in twelve months with no rate changes. CFO Asylbek Osmanov confirmed the drivers are bond and loan repricing, which will help the bank achieve its full-year NIM target of 3.25% to 3.30%.

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President and COO Kevin Hanigan projected low single-digit loan growth for the remainder of the year, noting Q3 had started well. He reported Q2 average warehouse balances were $1.179 billion and forecasted Q3 to average around $1.25 billion. Senior Chairman & CEO David Zalman highlighted a $73 million increase in core commercial loans, and Chairman Tim Timanus concurred with the outlook.

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Kevin Hanigan, President and COO, projected low single-digit loan growth for the remainder of the year and noted the mortgage warehouse averaged $1.25 billion, slightly ahead of expectations. David Zalman, Senior Chairman & CEO, provided detailed NIM model projections, forecasting expansion to 3.35% in six months and 3.48% in twelve months on the existing balance sheet, even with potential rate cuts. Asylbek Osmonov, CFO, added that this expansion is driven by the repricing of a $1.9 billion annual cash flow from the bond portfolio and $5 billion from the loan portfolio, rather than further decreases in deposit costs.

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President and COO Kevin Hanigan addressed loan growth, stating that low single-digit growth for the year is achievable, with Q3 starting stronger and core deposit growth stabilizing. He projected the mortgage warehouse to average around $1.25 billion in Q3. Senior Chairman & CEO David Zalman added that the model still shows significant NIM expansion, projecting 3.35% in six months with no rate changes. CFO Asylbek Osmanov confirmed this, attributing future NIM growth to the repricing of the bond portfolio and loan cash flows.

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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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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 & Chief Banking Officer Richard Bradshaw stated that Q3 loan growth is expected to be stronger, around 6%, due to some Q2 closings slipping into Q3. He also announced new leadership and hiring in the Alabama market. Chairman & CEO H. Lynn Harton noted the M&A strategy is unchanged, with a more optimistic outlook for potential deals. Executive VP & CFO Jefferson Harralson projected about five basis points of NIM expansion in Q3, driven by lower deposit costs and a mix shift towards loans, and confirmed no significant near-term debt maturities.

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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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COO Cindy Wolfe indicated that deposit costs are expected to remain stable until a change in Fed policy. CFO Tim Hicks raised the full-year loan growth guidance to a range of 11% to 13%, noting that strong growth from the CIB group is expected to be partially offset by a significant increase in prepayments within the RESG portfolio.

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President Paschall Hamblen confirmed plans to increase the parameters for stock buybacks, though actual repurchases will remain dependent on the stock price. Chairman and CEO George Gleason addressed profitability, stating that while CIB coupons may be lower, the impact is offset by fees and deposits, making the overall return profile comparable. He believes ROE could even improve long-term due to better capital efficiency from diversification. President of CIB Jake Munn added that CIB loans are relationship-focused and smaller than RESG deals, typically under $150M-$200M.

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CIB President Jake Munn detailed the deposit opportunities, particularly within the corporate banking and sponsor finance verticals, targeting a 30% self-funded ratio over time for that business line. CEO George Gleason acknowledged that other verticals might have slightly higher loss rates than RESG but stressed that the bank's disciplined, credit-first culture is embedded in all teams, expecting to maintain its historically low charge-off ratio relative to the industry.

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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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MD & CFO Matt Scurlock provided guidance for non-interest income to reach $60-65 million in Q3, supported by investment banking, and noted expenses would rise to support this build-out. Chairman, President & CEO Rob Holmes added that the investment banking platform also improves Net Interest Margin by enhancing client relationships. Regarding the ROA target, Holmes described the 1.1% goal as a 'mere stop along the way,' indicating aspirations for higher returns in the future.

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CFO Matt Scurlock identified infrastructure, transportation, logistics, and general manufacturing as areas receiving heightened monitoring due to potential tariff impacts, but noted no single segment exceeds 1-2% of the loan portfolio. CEO Rob Holmes attributed the 22% year-over-year growth in treasury fees to a deep integration of a solutions-based approach into the bank's DNA. On Private Wealth, Holmes acknowledged the business was previously 'behind' due to its platform but expects 'real progress' moving forward following a recent technology upgrade that improves the client's digital journey.

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President and CEO Rob Holmes explained that loan growth will be driven by their record pace of new client acquisition across all banking segments, ensuring they capture demand as the economy expands. He confirmed that the strategic platform is now 'wholly complete' after a multi-year transformation, allowing the firm to focus on execution and realizing operating leverage, though they will remain opportunistic about incremental product additions.

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President, Chairman & CEO Bryan Jordan responded that borrowers are remarkably resilient and increasingly optimistic, with an expectation for improved activity in the second half of 2025. Regarding capital, he stated that while they anticipate lowering capital levels over time, the immediate priority is organic loan growth. However, he affirmed the company is comfortable repurchasing stock, believing it creates significant value, and has the flexibility to do so.

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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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Executive John McWhorter projected a core NIM of 3.75%-3.80%, with a one-time 5 basis point lift in Q2 from the securitization. He noted the bank is well-positioned for the two expected rate cuts this year. CEO Bart Caraway added that the $325 million loan growth target is achievable, as lower rates could also spur new lending. Regarding the buyback, both executives confirmed it is being seriously considered due to the company's capital accretion and the stock trading below tangible book value.

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Executive Bart Caraway detailed broad-based deposit initiatives across commercial and retail lines, plus a partnership with Ameriprise. Executive John McWhorter noted that approximately 75% of deposits are in variable-rate money market accounts, offering pricing flexibility as rates fall. On loan pricing, new production yields are averaging over 8%. Regarding efficiency, Caraway affirmed the goal is to lower the ratio further, and while selective hiring will occur, revenue is expected to outpace expense growth.

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CEO Malcolm Holland and CFO Terry Earley expressed a bullish outlook on government-guaranteed lending, especially the more granular SBA business, expecting it to outperform in late 2025 and 2026. They guided for fee income to be materially better than last year but not at the peak levels of two years ago. Regarding the warehouse, Terry Earley noted that while balances are rate-dependent, RWA relief is a priority and the business maintains strong risk-adjusted returns.

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CEO Malcolm Holland and CFO Terry Earley expressed strong optimism for the government-guaranteed lending business, highlighting a strategic shift towards the more granular and stable SBA lending space. They expect fee income from this line to be materially better than last year. Regarding the mortgage warehouse, Terry Earley noted that while balances are sensitive to interest rates, the risk-adjusted returns remain attractive, and securing RWA relief is a key priority for the bank.

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Chairman and CEO Malcolm Holland expressed a bullish outlook for the government-guaranteed lending business, highlighting a shift in focus to the more granular SBA lending space and significant investments in new personnel. CFO Terry Earley added that the SBA business has had two very strong quarters and provides a more stable revenue stream. Regarding fee income, they projected it would be 'materially better' than the previous year but not back to 2023 levels. On the mortgage warehouse, Terry Earley noted that balances are highly dependent on interest rates but that risk-adjusted returns remain strong, and securing RWA relief is a key priority.

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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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Executive Tyson Abston responded that while they are monitoring for any direct tariff impacts, they remain confident in the portfolio's credit quality due to its high granularity and the resilience of their customer base. Executive Shalene Jacobson provided specifics on the low average balances in CRE, construction, and C&I loans. Regarding buybacks, Abston confirmed they are a capital allocation priority and the company will re-enter the market when opportunities arise. He also clarified that the 2.5% expense-to-average-asset ratio is a long-term target, not a rigid rule, allowing for flexibility to make strategic investments.

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Executive Tyson Abston stated that while they are monitoring for tariff impacts, they remain confident in the portfolio's granularity and underwriting. Executive Shalene Jacobson added that low average balances in C&I and real estate loans mitigate risk. Regarding capital, Tyson Abston confirmed that share buybacks are a priority for excess capital and they will re-enter the market when opportune. He described the 2.5% expense-to-average-asset ratio as a long-term target that allows for short-term flexibility to support growth.

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Executive Shalene Jacobson clarified that employee expenses, while down in Q4, are expected to rise in Q1 and that the budget includes new lender hires. On asset quality, she stated that if the economy improves, the provision could be reduced or even reversed, depending on loan growth. Executive Tyson Abston stated the bank plans to be 'much more aggressive' with its stock buyback due to a perceived disconnect between its stock price and intrinsic value. For NIM guidance, Abston reaffirmed that 2 basis points of expansion per month serves as a 'good baseline' for 2025.

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Executive Shalene Jacobson confirmed an expected NIM increase of about 2 basis points per month, targeting just under 3.50% by the end of 2025, driven by significant CD repricing at lower rates. Executive Tyson Abston added that the company is strategically adding duration to its bond portfolio. Regarding growth, Abston outlined a strategy to leverage the company's strong position for both organic growth and bolt-on acquisitions over the next 3-4 years. On buybacks, Jacobson noted that the current stock price makes repurchases less attractive, and the company will remain opportunistic.

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Executive Tyson Abston explained that the bank is building liquidity to be well-positioned for growth when the economy improves, a strategy similar to their approach during the 2008 financial crisis. He confirmed the NIM is still expected to improve by 2-3 basis points per month and could surpass the previous 3.50% target. He also affirmed the bank's commitment to the share buyback program, stating it will continue as long as the earn-back period remains attractive.

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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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The company is focused on its internal training program for new talent but will also hire selectively. Costs for crossing $100 billion are being layered in over time to avoid a large single-year impact. Achieving positive operating leverage is the goal for 2025.

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Chief Banking Officer Peter Sefzik emphasized Comerica's focus on its internal training program for developing talent over expensive external hires. CFO Jim Herzog noted that costs for $100B readiness are being layered in over time to avoid a sudden expense increase. Herzog also confirmed that achieving positive operating leverage in 2025 is the bank's goal and expectation.

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The margin ramp is supported by accelerating asset repricing (new loans are ~300 bps higher) and the Q2 benefit of paying down expensive funding. The long-term margin target of ~3.50% is still achievable but might be delayed from late 2025 to 2026 in a 'higher for longer' scenario. The bank's intermediate-term organic loan growth potential is seen as 8-10% in a stable economy, bolstered by the new San Antonio expansion.

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The non-accrual credit is a single property in Houston that is expected to be resolved soon. The OREO loss was booked through the fee income line, consistent with the bank's historical accounting policy. The path to a mid-3% NIM is driven by repricing earning assets higher (even in a flat rate environment) and significant liability cost reductions in a falling rate environment, thanks to a large portfolio of short-duration and indexed funding.

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Executives stated they have no plans to restructure the bond portfolio to preserve capital. They expect warehouse balances to remain stable at current levels through 2024. The reserve for this portfolio is not broken out separately, and there were no downgrades in the quarter.

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Management defended their credit quality, citing strong metrics, third-party validation, and performance through recent challenges. They confirmed investments in fee-generating areas are complete and will now drive operating leverage, with an expected expense run rate of ~$37M. The NIM is expected to remain stable, as the increase in asset yields is keeping pace with the moderating increase in deposit costs.

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The bank is confident in a down-rate scenario due to a high percentage of indexed deposits that will reprice quickly. They are conservative in their modeling but believe they can expand margin with new loan pricing and growth. Purchase accounting accretion was $450,000 in Q4 with $9.4 million remaining, to be spread over 3-4 years. The Q4 dip in service charges was an anomaly; they expect significant growth in fee income in 2024 from treasury and credit card services, supported by a recent price increase.

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Purchase accounting accretion from the Canyon deal was about $80,000, with total accretion around $650,000 for the quarter. Future accretion is expected to be $500k-$600k per quarter. The credit quality changes are more one-off and proactive rather than systemic, though higher rates are pressuring some CRE clients' expenses. A mid-single-digit loan growth rate for next year is considered a fair expectation.

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