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    Russell Gunther

    Managing Director and equity research analyst at Stephens Inc.

    Russell Gunther is a Managing Director and equity research analyst at Stephens Inc., specializing in Southeast and Mid-Atlantic regional banks with coverage of public companies including Amerant Bancorp, Seacoast Banking, and SouthState Corporation. Known for providing in-depth analysis on earnings calls and financial sector dynamics, he delivers actionable research insights, though specific performance metrics and third-party rankings are not publicly available. Gunther began his equity research career in 2006, holding analyst roles at D.A. Davidson, Macquarie Capital, Bank of America, and Keefe Bruyette & Woods before joining Stephens in August 2022, following early professional experience at PricewaterhouseCoopers. He holds industry credentials registered with FINRA and has a B.A. from Colgate University.

    Russell Gunther's questions to WESBANCO (WSBC) leadership

    Russell Gunther's questions to WESBANCO (WSBC) leadership • Q2 2025

    Question

    Russell Gunther from Stephens Inc. asked about the long-term loan growth outlook, questioning if a high-single-digit rate is achievable, and inquired about potential for future branch rationalization.

    Answer

    President and CEO Jeffrey Jackson responded that the company still targets mid-to-upper single-digit loan growth. He noted that increased CRE payoffs are the primary headwind that could keep growth below the high-end of that range. Jackson also confirmed that WesBanco conducts an annual branch network review and will do so in the second half of the year, which is expected to result in some closures and associated cost savings.

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    Russell Gunther's questions to WESBANCO (WSBC) leadership • Q1 2025

    Question

    Russell Gunther sought confirmation that the Q4 expense run rate guidance is fully inclusive of all merger-related cost savings and asked about the expected normalized expense growth rate thereafter. He also inquired about capital management priorities, including the appetite for buybacks or M&A.

    Answer

    Daniel Weiss, Senior Executive Vice President and CFO, confirmed the low-$140 million Q4 run rate includes all cost savings and projected a roughly 4% growth rate from that base into 2026. Jeffrey Jackson, President and CEO, stated that the company is currently in 'capital build mode' and is focused on integrating the Premier acquisition. He indicated that any new M&A would not be considered until late 2025 or early 2026 at the earliest.

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    Russell Gunther's questions to WESBANCO (WSBC) leadership • Q4 2024

    Question

    Russell Elliott Gunther asked for details on WesBanco's net interest margin (NIM), inquiring about the repricing of the CD portfolio, the pro forma NIM outlook with the Premier Financial acquisition, and clarification on the assumptions behind the updated guidance.

    Answer

    CFO Daniel Weiss explained that approximately $1.2 billion in CDs at a 4.25% rate are expected to reprice down by 75-100 basis points in Q2. He also confirmed the pro forma NIM outlook is now around 3.50% to 3.55%, an improvement from the initial deal announcement, which is based on an updated interest rate mark but does not yet include potential benefits from securities restructuring.

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    Russell Gunther's questions to WESBANCO (WSBC) leadership • Q3 2024

    Question

    Russell Elliott Gunther asked for more detail on the net interest margin, seeking clarity on the core NIM step-up into early 2025 and the expected pro forma margin after the Premier Financial acquisition. He also inquired about the use of the $4 million in savings from branch consolidations and the bank's core expense growth rate.

    Answer

    CFO Daniel Weiss provided a comprehensive margin outlook, detailing repricing dynamics of FHLB borrowings, CDs, and variable-rate loans, projecting a continued NIM increase into Q1 2025 and reaffirming a pro forma margin with Premier around 3.46%. He also stated the $4 million in savings should largely drop to the bottom line, with the Q4 expense run rate expected to be similar to Q3.

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    Russell Gunther's questions to Ameris Bancorp (ABCB) leadership

    Russell Gunther's questions to Ameris Bancorp (ABCB) leadership • Q2 2025

    Question

    Russell Gunther of Stephens Inc. requested details on the net interest margin's cadence during the quarter, including the exit rate for June. He also asked for an update on the equipment finance portfolio's balances and charge-off trends, and sought guidance on the outlook for noninterest expense in the third quarter.

    Answer

    CFO Nicole Stokes stated that the NIM grew steadily throughout the quarter but noted that the June exit rate contained anomalies, leading her to guide for a relatively flat Q3 margin. CEO H. Palmer Proctor reported that equipment finance loans constitute about 7.2% of total loans and that charge-offs in that portfolio are now within the company's target range. For expenses, Stokes projected Q3 noninterest expense to be consistent with Q2, in the $156 million to $158 million range.

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    Russell Gunther's questions to Ameris Bancorp (ABCB) leadership • Q1 2025

    Question

    Russell Gunther followed up on loan yields, asking for the quarter-end Balboa premium finance balance and its expected growth, and also inquired about capital deployment priorities, including buybacks and callable subordinated debt.

    Answer

    EVP & CFO Nicole Stokes reported Balboa balances ended the quarter at $1.5 billion and are expected to grow in line with the company's mid-single-digit forecast. CEO H. Proctor added that this could be diluted if CRE lending accelerates and noted they have loan sale conduits to manage exposure. On capital, Proctor prioritized organic growth first, followed by evaluating callable sub-debt, and then share buybacks, stressing the importance of capital for both 'offensive and defensive purposes.'

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    Russell Gunther's questions to Ameris Bancorp (ABCB) leadership • Q4 2024

    Question

    Russell Gunther of Stephens Inc. inquired about the 2025 outlook for mortgage banking gain on sale, capital deployment priorities, and the characteristics of a potential M&A target. He later asked for the spot deposit cost at year-end.

    Answer

    CFO Nicole Stokes guided the mortgage gain on sale margin to a 2.25% to 2.40% range. CEO Palmer Proctor outlined capital deployment priorities as 1) organic growth, 2) selective M&A, and 3) buybacks. He described an ideal M&A target as being in the Southeast with a strong core deposit base and cultural fit. Stokes provided the December spot deposit cost of ~2.00% but noted it was skewed low by temporary public funds and noninterest-bearing inflows.

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    Russell Gunther's questions to Ameris Bancorp (ABCB) leadership • Q3 2024

    Question

    Russell Gunther of Stephens Inc. sought clarification on the near-term Net Interest Margin (NIM) guidance and the loan growth outlook for 2025, considering factors like potential paydowns.

    Answer

    Executive Nicole Stokes reiterated the NIM guidance of bouncing around the 3.50% level, plus or minus a few basis points. CEO H. Proctor confirmed confidence in the mid-single-digit loan growth guidance, noting the bank is well-positioned with new commercial hires to accelerate growth when appropriate in its diversified markets.

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    Russell Gunther's questions to WSFS FINANCIAL (WSFS) leadership

    Russell Gunther's questions to WSFS FINANCIAL (WSFS) leadership • Q2 2025

    Question

    Russell Gunther of Stephens Inc. asked for an outlook on commercial loan growth, particularly in C&I, and inquired about any shifts in commercial borrower sentiment regarding tariffs. He also questioned the expense run rate for the remainder of the year and the potential role of M&A in managing the company's CET1 capital ratio.

    Answer

    EVP & CFO David Burg stated that WSFS is focused on accretive loan growth, emphasizing C&I relationships while being selective in commercial real estate. Chairman, President & CEO Rodger Levenson noted a 'mild uptick in optimism' from borrowers as tariff uncertainty settles. Burg confirmed the Q2 expense level is a good run rate for future growth. Regarding capital, Levenson explained that while share buybacks are active, the primary use of excess capital is investment in the business, with a preference for fee-based and wealth management opportunities, though traditional bank M&A is not ruled out.

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    Russell Gunther's questions to WSFS FINANCIAL (WSFS) leadership • Q1 2025

    Question

    Russell Elliott Gunther questioned the absence of a guidance slide, the outlook for net charge-offs following a significant one-off credit event, and the expected expense run rate for upcoming quarters.

    Answer

    Executive David Burg clarified that updating guidance mid-year is standard practice for WSFS and does not signal reduced visibility. He explained that excluding the one-off acquired loan, net charge-offs were in line with expectations at 27 basis points. Regarding expenses, Burg noted that Q1 was unusually low due to about $8 million in one-time items and timing, suggesting a normalized quarterly run rate closer to $160 million.

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    Russell Gunther's questions to WSFS FINANCIAL (WSFS) leadership • Q4 2024

    Question

    Russell Elliott Gunther inquired about the 2025 expense outlook, seeking clarity on the dollar expense run rate from Q4 and the assumptions within the efficiency ratio guidance. He also asked about levers to improve Cash Connect's profitability independent of interest rates and the targeted year-end size of the securities portfolio.

    Answer

    Executive David Burg explained that Q4 expenses were elevated due to a $1.9 million one-time item in Cash Connect and variable rate-related costs. He noted that normalized expenses grew due to incentive compensation true-ups and strategic headcount additions in Wealth, Commercial, and Technology. Burg stated the 60% efficiency ratio is a full-year goal, implying revenue and expense growth will be parallel. For Cash Connect, he identified growth, optimizing cash logistics, and pricing leverage as key profit drivers. Regarding the securities portfolio, he confirmed the target is around 20% of assets, down from the current 22%, with cash flows primarily funding business growth.

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    Russell Gunther's questions to WSFS FINANCIAL (WSFS) leadership • Q3 2024

    Question

    Russell Elliott Gunther inquired about the net interest margin (NIM) outlook, specifically the impact of the hedge program per 25 basis point rate cut. He also asked about the Q4 and 2025 outlook for fee revenue from the credit, debit, and ATM line, particularly Cash Connect, and requested the specific revenue impact from the Spring EQ earn-out in the quarter.

    Answer

    EVP and CFO David Burg explained that the 7 basis point NIM decline was driven by the investment portfolio write-up, nonaccruals, and higher deposit costs. He confirmed the $1.5 billion hedging program is complete and will mitigate asset sensitivity as rates fall. For Cash Connect, Burg noted the focus is on optimizing the network gained from market share wins, which should expand profitability in a down-rate environment despite lower top-line revenue. He also confirmed the Spring EQ earn-out was approximately $2 million for the quarter.

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    Russell Gunther's questions to Primis Financial (FRST) leadership

    Russell Gunther's questions to Primis Financial (FRST) leadership • Q2 2025

    Question

    A representative for Russell Gunther asked for an outlook on loan growth for the remainder of 2025 and into 2026, with a specific focus on the Panacea and Mortgage Warehouse divisions. He also inquired about the expected trajectory of the core Net Interest Margin (NIM) in a no-rate-cut environment.

    Answer

    CEO Dennis Zember projected that the Mortgage Warehouse could average $250-$350 million in 2026, while Panacea's growth would be managed through capital market solutions, with Primis absorbing $100-$150 million of its originations. CFO Matthew Switzer clarified that overall loan growth for the back half of 2025 would be in the low-to-mid single digits. Switzer also stated that the core NIM is expected to continue expanding by approximately two basis points per month, potentially reaching the mid-3.20s by the end of the year.

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    Russell Gunther's questions to Primis Financial (FRST) leadership • Q1 2025

    Question

    Russell Elliott Gunther of Stephens Inc. asked for the net interest margin outlook, a projection of the Q4 expense run rate including savings, the future trend for charge-offs, and the timing of the Panacea deconsolidation.

    Answer

    Executive Matthew Switzer projected 5-10 bps of margin expansion in Q2, potentially reaching 10-20 bps by year-end. President and CEO Dennis Zember detailed a path to an $18-18.5 million quarterly core expense run rate after tech savings are realized, likely in 2026. Switzer noted that while consumer charge-offs will remain high, the provision impact should be minimal due to existing reserves. He also explained the Panacea deconsolidation could be effective as of March 31, with a gain based on a third-party valuation.

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    Russell Gunther's questions to Primis Financial (FRST) leadership • Q4 2024

    Question

    Russell Elliott Gunther inquired about the net loan growth outlook for 2025, the expected cadence for the net interest margin (NIM) to reach its target range, core net charge-off levels post-consumer portfolio exit, and the potential valuation upside from the Panacea deconsolidation.

    Answer

    President and CEO Dennis Zember outlined that 2025 loan growth will be primarily bank-focused, targeting $125-$175 million, with mortgage warehouse growing by approximately $300 million to replace the exited Life Premium book. Executive Matthew Switzer projected the NIM would reach the upper end of the 3.25% to 3.50% range, with expansion beginning in Q1 2025. He also noted that core charge-offs are expected to be low, around 5-10 basis points, with modest provisioning of about $1 million per quarter. Regarding Panacea, Dennis Zember stated he is confident its value is greater than the last valuation, driven by significant product development, but did not provide a specific number, emphasizing the deconsolidation is a strategic move to unlock value.

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    Russell Gunther's questions to SEACOAST BANKING CORP OF FLORIDA (SBCF) leadership

    Russell Gunther's questions to SEACOAST BANKING CORP OF FLORIDA (SBCF) leadership • Q2 2025

    Question

    Russell Gunther sought confirmation of the mid-to-high single-digit loan growth outlook extending into 2026, asked about opportunities from recent market disruption, and requested clarification on the net interest margin guidance, specifically how the two acquisitions impact the core and reported figures.

    Answer

    Chairman, President & CEO Charles Shaffer reaffirmed the mid-to-high single-digit loan growth outlook for the remainder of 2025 and into 2026. He noted that any market disruption is beneficial and that Seacoast is well-positioned with its strong capital, liquidity, and culture to attract talent. EVP, Treasurer & Director - IR Michael Young and Shaffer clarified the NIM guidance: the standalone core NIM is expected to exit the year around 3.35%, and the two acquisitions will add approximately 10 basis points, resulting in a pro-forma core NIM of around 3.45% in Q4, before any purchase accounting accretion.

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    Russell Gunther's questions to SEACOAST BANKING CORP OF FLORIDA (SBCF) leadership • Q1 2025

    Question

    Russell Gunther questioned the forward trend for the cost of deposits, the pipeline for hiring new revenue producers and its expense impact, and which loan sectors are being monitored closely due to potential tariffs.

    Answer

    Treasurer Michael Young noted continued opportunities for tactical reductions in deposit costs, with growth in noninterest-bearing deposits being a key positive driver. CEO Charles Shaffer stated that the team is largely built and the focus will shift to leveraging existing investments for profitability rather than significant new hiring. Chief Credit Officer James Stallings identified C&I businesses as the primary area of focus for tariff impacts but observed that many clients have been proactively adjusting their business models.

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    Russell Gunther's questions to SEACOAST BANKING CORP OF FLORIDA (SBCF) leadership • Q3 2024

    Question

    Russell Elliott Gunther inquired about the net interest margin (NIM) performance in September, the drivers behind the Q4 core NIM expansion guidance, the outlook for loan growth into 2025, and the bank's Return on Assets (ROA) target.

    Answer

    Michael Young, Treasurer and Director of Investor Relations, explained that deposit costs began to decline in September and that the Q4 margin guidance of 5-10 bps expansion assumes two Fed rate cuts. CEO Charles Shaffer projected mid-single-digit loan growth for the next few quarters, driven by investments in talent, though noting a slight temperance in Q4 due to hurricanes and maturities. Regarding profitability, Shaffer stated the primary objective is to drive ROA north of 1% over time through operating leverage and margin expansion.

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    Russell Gunther's questions to Amerant Bancorp (AMTB) leadership

    Russell Gunther's questions to Amerant Bancorp (AMTB) leadership • Q2 2025

    Question

    Russell Gunther inquired about Amerant's loan growth outlook for 2026 and whether the current slowdown reflects a strategic shift or market conditions. He also asked about expectations for realized losses in the second half of 2025 and what credit loss assumptions are embedded in the 1% ROA target.

    Answer

    CEO Jerry Plush clarified that the company expects to return to double-digit loan growth, stating the current priority has been asset quality but new talent will rebuild the pipeline. He noted that a significant portion of Q2 charge-offs were previously covered by specific reserves, keeping the core charge-off rate stable. CFO Sharymar Calderón added that the 1% ROA target for H2 2025 already accounts for provisions needed for expected loan growth.

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    Russell Gunther's questions to Atlantic Union Bankshares (AUB) leadership

    Russell Gunther's questions to Atlantic Union Bankshares (AUB) leadership • Q2 2025

    Question

    Russell Gunther from Stephens Inc. inquired about the pro forma loan growth outlook, the sustainability of the mid-40% efficiency ratio target given North Carolina expansion plans, and capital deployment priorities, including the potential for share buybacks.

    Answer

    CEO John C. Asbury and EVP & Wholesale Banking Group Executive David Ring confirmed strong loan pipelines support a solid growth outlook. CFO Robert Gorman reaffirmed the mid-40s efficiency ratio target for 2026, which includes planned investments. Gorman also outlined capital priorities as organic growth, dividends, and then potential share repurchases once the CET1 ratio approaches 10.5-11%.

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    Russell Gunther's questions to Atlantic Union Bankshares (AUB) leadership • Q1 2025

    Question

    Russell Gunther asked to what extent the qualitative reserve build has 'ringfenced' the overhang from potential government cutbacks and also inquired about the net interest margin outlook for the legacy Atlantic Union Bank in Q2 before the inclusion of Sandy Spring.

    Answer

    EVP and CFO Rob Gorman stated that potential government cutbacks were not a big factor in the qualitative overlay; the primary driver was the increased probability of a national recession resulting from tariff policies. President and CEO John Asbury added that government-related issues are localized to the Greater Washington region and not a major concern elsewhere in their Virginia and North Carolina footprint. For the legacy AUB margin, Gorman expects continued expansion in Q2 from the Q1 level of 3.45%, driven by repricing of CDs and fixed-rate loans.

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    Russell Gunther's questions to UNITED COMMUNITY BANKS (UCB) leadership

    Russell Gunther's questions to UNITED COMMUNITY BANKS (UCB) leadership • Q2 2025

    Question

    Russell Gunther followed up on loan growth, asking for an update on the commercial pipeline's status versus the prior quarter and any shifts in commercial borrower sentiment. He also inquired about the recruitment pipeline, specific markets targeted for increased density, and the bank's appetite for using excess capital for securities portfolio restructurings.

    Answer

    President & Chief Banking Officer Richard Bradshaw confirmed the commercial pipeline is larger than last quarter and that hiring efforts are focused on top talent within the existing footprint. Chairman & CEO H. Lynn Harton added that client sentiment is positive. Regarding capital, Executive VP & CFO Jefferson Harralson acknowledged that a securities restructuring is something they evaluate but noted they like running with high capital ratios and have not made a decision. Mr. Harton reiterated that organic growth and M&A remain top priorities for capital.

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    Russell Gunther's questions to SMARTFINANCIAL (SMBK) leadership

    Russell Gunther's questions to SMARTFINANCIAL (SMBK) leadership • Q2 2025

    Question

    Russell Gunther from Stephens Inc. questioned the strength of commercial loan pipelines, borrower sentiment, the status of the talent recruitment pipeline, and the timeline for achieving the 1% Return on Assets (ROA) target.

    Answer

    President & CEO William Carroll and EVP & Chief Credit Officer Rhett Jordan described commercial pipelines as being as strong as they have been all year, with a balanced mix across geographies and products. Carroll and Chairman Miller Welborn highlighted a continuous recruiting focus ('Always Be Recruiting'), particularly in expansion markets like Nashville and Birmingham. Regarding the 1% ROA target, Carroll expressed confidence they will get 'real close' in the back half of the year.

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    Russell Gunther's questions to SMARTFINANCIAL (SMBK) leadership • Q1 2025

    Question

    Russell Gunther from Stephens Inc. questioned the expense growth trajectory for the remainder of 2025 and asked for details on loan portfolio exposures related to tariff volatility.

    Answer

    President and CEO William Carroll emphasized the focus on stabilizing the expense line, with most future growth coming from talent acquisition. CFO Ronald Gorczynski reiterated guidance for 2.5% to 3% expense growth for the year. Regarding tariffs, Carroll and executive Rhett Jordan identified trucking (via the Fountain subsidiary) and auto dealer floor plan/manufacturing as areas receiving close attention, though they stressed their continuous, broad-based credit monitoring process.

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    Russell Gunther's questions to FNB CORP/PA/ (FNB) leadership

    Russell Gunther's questions to FNB CORP/PA/ (FNB) leadership • Q2 2025

    Question

    Russell Gunther of Stephens Inc. inquired about deposit cost expectations amid competition, the potential for incremental margin, and the factors that could push net interest income to the high end of the guidance range, particularly in the absence of Fed rate cuts.

    Answer

    CFO Vincent J. Calabrese stated that interest-bearing deposit costs would likely remain around current levels until a Fed rate cut. Chairman, President & CEO Vincent J. Delie expressed confidence in deposit gathering due to FNB's diverse footprint and strategic investments. Calabrese noted that the absence of a September rate cut would be a positive driver for NII, along with the loan mix, reinvestment spreads, and success in growing non-interest-bearing deposits.

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    Russell Gunther's questions to FNB CORP/PA/ (FNB) leadership • Q1 2025

    Question

    Russell Elliott Gunther of Stephens Inc. inquired about F.N.B. Corporation's net interest income (NII) outlook, including the timing of swap maturities, the assumptions behind the high end of the NII guidance, and the expense forecast for Q2 and the full year.

    Answer

    CFO Vincent J. Calabrese explained that the full-year NII guide assumes rate cuts in June and September. He detailed the declining quarterly drag from swap maturities, starting at $8 million in Q1 and falling to $6 million in Q2 before rolling off. He noted that no further securities portfolio restructuring is currently planned. Regarding expenses, Calabrese confirmed that the guidance already includes $15-20 million in cost savings initiatives and that the firm maintains its disciplined approach to cost management.

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    Russell Gunther's questions to FNB CORP/PA/ (FNB) leadership • Q4 2024

    Question

    Russell Elliott Gunther from Stephens asked about the expected progression of deposit costs in 2025, the outlook for net interest margin, and which markets F.N.B. plans to target for market share growth, including its stance on M&A.

    Answer

    CFO Vincent J. Calabrese stated the goal is to outperform peers on deposit costs as rates decline, targeting a cumulative down-beta in the mid-30s. CEO Vincent J. Delie addressed strategy, noting that while the environment is becoming more favorable for M&A, F.N.B.'s primary focus is organic growth by building out its presence in the Carolinas and the Mid-Atlantic region, while leveraging its digital platform to gain share in mature markets.

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    Russell Gunther's questions to FB Financial (FBK) leadership

    Russell Gunther's questions to FB Financial (FBK) leadership • Q2 2025

    Question

    Russell Gunther from Stephens Inc. asked for details on the net interest margin guidance, including assumptions for Fed rate cuts and the potential for further deposit cost reductions. He also questioned the sustainability of mid-to-high single-digit loan growth on a larger balance sheet and whether recent capital actions signaled a change in the M&A outlook.

    Answer

    CFO Michael Mettee stated the NIM forecast includes two rate cuts in late 2025 and noted that about 35-40% of deposits would reprice lower upon a cut. CEO Chris Holmes reaffirmed confidence in achieving mid-to-high single-digit growth long-term, supported by strong pipelines and growth from the Southern States franchise. Holmes also clarified that recent capital deployment does not limit future M&A due to the company's strong capital position, with a CET1 ratio over 12%.

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    Russell Gunther's questions to FB Financial (FBK) leadership • Q1 2025

    Question

    Russell Gunther asked for the assumptions underlying the net interest margin (NIM) guidance, including Fed rate cuts and yield curve shape. He also inquired about the Q2 outlook for mortgage banking fee income and the company's charge-off expectations for the remainder of the year.

    Answer

    CFO Michael Mettee stated the NIM forecast assumes two rate cuts, consistent with their view from the start of the year, resulting in a stable outlook. He noted the pro forma NIM guide includes some conservatism due to economic uncertainty. On mortgage, Mettee was pleased with Q1 performance and expects continued profitability, though momentum is subject to rate volatility. Executive Christopher Holmes and Chief Bank Officer Travis Edmondson indicated they expect full-year charge-offs to be slightly below the Q1 level of 0.14%, noting that recent charge-offs were credit-specific and that overall credit trends are positive.

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    Russell Gunther's questions to FB Financial (FBK) leadership • Q4 2024

    Question

    Russell Gunther questioned the outlook for loan growth in 2025, the hierarchy of capital deployment priorities including buybacks, and expectations for expense efficiency within the mortgage business.

    Answer

    Executive Christopher Holmes stated the bank is targeting a high single-digit to low double-digit loan growth rate for 2025. Executive Michael Mettee clarified that organic growth and M&A are the top capital deployment priorities, with share buybacks and securities restructuring considered opportunistic levers. Mettee also noted the mortgage segment has seen four straight quarters of positive contribution and is expected to operate more efficiently in 2025.

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    Russell Gunther's questions to FB Financial (FBK) leadership • Q3 2024

    Question

    Russell Elliott Gunther of Stephens Inc. asked for a big-picture view on how future rate decreases would act as an earnings growth catalyst for FB Financial in 2025. He also inquired about the assumptions for deposit betas during a rate-cutting cycle and later followed up on asset quality, asking if inflows to adversely classified loans still outpaced outflows and how rate cuts might impact this dynamic.

    Answer

    Executive Christopher Holmes explained that with a well-matched balance sheet, including a significant portion of indexed deposits, the company is positioned to maintain or expand its margin in a gradual rate-cutting environment. Executive Michael Mettee added that the goal for deposit betas on the way down is to mirror the ~60% beta experienced on the way up, noting that recent wholesale funding provides optionality. Regarding asset quality, Executive Travis Edmondson stated that while there were two large commercial inflows, the overall flow is business as usual, and he does not expect rate changes to have a material impact on credit trends, which are currently driven by idiosyncratic issues.

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    Russell Gunther's questions to SouthState Bank (SSB) leadership

    Russell Gunther's questions to SouthState Bank (SSB) leadership • Q1 2025

    Question

    Russell Gunther inquired about capital deployment plans, including both offensive (buybacks, M&A) and defensive options, given the strong 11% CET1 ratio. He also asked which portfolio segments are under closer scrutiny.

    Answer

    CEO John Corbett acknowledged that the strong capital position creates future options for dividends, buybacks, or M&A, but the immediate priority is navigating economic uncertainty. Executive William Matthews added that the CET1 ratio is projected to accrete 20-25 basis points per quarter. Defensively, Corbett stated the primary risk is a widespread recession rather than specific sectors, though the team is closely monitoring $200 million in industrial warehouse exposure near ports.

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    Russell Gunther's questions to SouthState Bank (SSB) leadership • Q4 2024

    Question

    Russell Gunther of Stephens Inc. asked for an outlook on legacy SouthState deposit cost trends, CD repricing opportunities, and the expected performance of the correspondent banking business.

    Answer

    CEO John Corbett projected the pro forma company's deposit costs to be around 2% in Q1 2025, highlighting a better-than-modeled beta on deposit pricing. He also guided for noninterest income to be in the 50-55 basis points range of average assets. He noted the correspondent bank, a recent driver of outperformance, is expected to start the year with an annualized revenue run-rate of approximately $80 million, with potential to rise toward $90 million if the Fed implements rate cuts.

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    Russell Gunther's questions to SASR leadership

    Russell Gunther's questions to SASR leadership • Q3 2024

    Question

    Inquired about the pro forma net interest margin post-deal, the playbook for growing C&I loans in Sandy Spring's markets, and the specific profile (asset class, geography) of the CRE loans intended for sale.

    Answer

    The pro forma NIM is projected to be in the 3.75% to 3.85% range post-close, including accretion. The C&I growth playbook involves leveraging Sandy Spring's existing business segmentation and introducing Atlantic Union's capabilities like equipment finance and asset-based lending to serve the middle market more effectively, with an expectation of real revenue synergies. The CRE loans identified for sale are primarily high-quality, performing retail and multifamily loans, and the portfolio has been priced down to the individual note level.

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    Russell Gunther's questions to SASR leadership • Q2 2024

    Question

    Asked for details on the risk-weighted asset (RWA) optimization, the volume of fixed-rate loan repricing in 2025, and the outlook for fee income growth for the year.

    Answer

    The RWA reduction of $360M came from reclassifying over $700M in home equity lines of credit, with more review underway. Fixed-rate loan repricing will slow to $200M-$300M per quarter in 2025. Fee income growth is expected in the high single-digit to low double-digit range, depending on market performance and the timing of new SBA loan sale gains.

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    Russell Gunther's questions to SASR leadership • Q1 2024

    Question

    Asked for details on the commercial loan growth outlook and mix, the strategy for recruiting C&I and SBA lenders, the percentage of deposits indexed to Fed funds, and color on a specific CRE credit moved to OREO.

    Answer

    The company is targeting 3% commercial loan growth in Q2, focusing on C&I and owner-occupied lending while keeping the CRE portfolio level. Recruiting is focused on individual hires rather than teams. Between $300M-$500M in deposits are directly tied to Fed funds. The OREO transfer was a small office property on which the bank feels it is well-collateralized and expects to move off the books without significant issue.

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    Russell Gunther's questions to SASR leadership • Q4 2023

    Question

    Inquired about the assumed deposit beta for the net interest margin recovery, the nature of the funding mix, the status of digital transformation spending within the expense guidance, and targets for loan growth and the loan-to-deposit ratio.

    Answer

    Executives expect high betas on savings products (90%+) during rate cuts. No deposits are formally indexed to Fed funds, but significant expensive borrowings will mature in 2024, providing a tailwind. The major retail digital build-out is complete, with commercial platforms planned for late 2024/2025, so its cost is not in the current flat expense guidance. The company is targeting mid-to-upper single-digit loan growth for 2024, with a long-term goal of a mid-90s loan-to-deposit ratio.

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