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President and CEO Sam Sidhu explained that while they are not actively seeking to expand cubiX deposits, they will support client payment needs. He emphasized these are operating accounts held 100% in cash. Regarding loan growth, Sidhu acknowledged market volatility but confirmed the loan backlog remains strong and highlighted the granular, relationship-based nature of the growth. He stated the low-cost deposit pipeline remains over $2 billion at a blended rate of approximately 2.5% with up to 30% noninterest-bearing, and noted that recruitment of new deposit-focused teams is ongoing.

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EVP and CFO Philip Watkins acknowledged strong loan pipelines but noted Q1 is typically slower and mentioned the impact of unexpected payoffs. President and CEO Samvir Sidhu added that significant payoffs in 2024 provide confidence for future net growth, highlighting the bank's diversified lending verticals. Regarding deposits, Sidhu confirmed the growth in noninterest-bearing accounts was primarily from the cubiX platform due to increased client activity, which the bank supported by holding the excess balances in cash. He stated management is re-evaluating its deposit concentration limits. Watkins concluded by stating the NII guidance's base case assumes two rate cuts.

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CFO Philip Watkins explained the reduction in asset sensitivity was driven by both organic fixed-rate lending and, more significantly, forward-starting swap hedges and a securities portfolio repositioning that traded floating-rate securities for longer-duration fixed-rate assets. CEO Samvir Sidhu added color on deposit pricing, noting new deposits came in at a low 3% blended rate while runoff deposits were at 5.25%. He described the new accounts as highly granular, with an average size in the "couple of hundred thousand-ish" range.

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President and CEO Sam Sidhu projected a downward deposit beta similar to the upward peak of 55-60%, aided by a positive mix shift that is already lowering deposit costs. He stated that while brokered deposits might see a slight near-term increase, they have peaked and are targeted for significant reduction. He also confirmed that new deposits are coming in with a favorable 30% noninterest-bearing mix, exceeding the bank's overall average.

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CEO Paul Perrault stated that loan pipelines and quality are strong, with good pricing and less pressure from larger banks. CFO Carl Carlson added that Q1 originations had a weighted average coupon of 7.18%, well above the portfolio average of 5.91%. He also projected Q2 expenses would be stable with Q1, as the company is managing costs carefully ahead of its planned merger.

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CFO Carl M. Carlson declined to provide full-year margin guidance due to market volatility but noted that a slower pace of Fed rate cuts could be beneficial. He indicated deposit pricing will remain responsive to market changes. For loan growth, Mr. Carlson reiterated a low single-digit forecast for 2025, tempered by a planned reduction in commercial real estate. Regarding the classified loan, he projected a resolution in late Q1 or early Q2, with Chairman and CEO Paul A. Perrault adding that any charge-off is already covered by existing reserves.

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CFO Carl M. Carlson explained that the bank is proactively managing funding costs, having immediately cut rates on certain deposit products following the Fed's September rate cut. He detailed significant liability repricing opportunities in Q4, with CDs and borrowings rolling off at high rates and repricing lower. He noted the market is competitive but rational, giving them confidence in their ability to manage liability costs down to support margin expansion. For 2025, he stated the company's model suggests the net interest margin could reach the 3.40s by Q4.

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Chief Credit Officer Mark Saeger noted a slight increase in criticized migration but at a reduced pace from 2024, highlighting very low early-stage delinquencies (11 bps) as a sign of portfolio health. CEO Ira Robbins added that some classifications are tied to guarantor issues, not asset quality. Mark Saeger specified that the quarter's C&I charge-offs were related to two unique situations involving fraud and were not indicative of systemic weakness.

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EVP and CFO Rob Gorman clarified the CRE sale target remains $2 billion and they are not planning to upsize it. Regarding construction loans, Gorman and Head of Commercial Businesses David Ring explained the decline was largely due to projects completing and converting to term loans, though new project starts have slowed. On the ACL guide, Gorman noted it includes the Sandy Spring portfolio and the CECL 'double count,' and could be lower if recession probabilities decline. President and CEO John Asbury added that the final Q2 reserve will be their best assessment for the combined firm at that time.

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CFO Rob Gorman stated the duration of the loans for sale is slightly shorter than the total portfolio's 4-year average and confirmed the sale discount is included in the total mark. He noted new loans are originating in the 7.00-7.05% range. While hedging has been evaluated, nothing is definitive due to cost. Gorman also confirmed the bank is aggressively lowering deposit rates, modeling a mid-40s deposit beta for the down cycle.

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EVP & CFO Mike Archer projected continued core NIM expansion of 2-5 basis points in Q2 and suggested the current $5 million in net purchase accounting accretion is a good midpoint. President & CEO Simon Griffiths added that a 25-basis-point rate cut would benefit earnings by approximately $1.5 million. Griffiths also reaffirmed a low single-digit loan growth forecast, noting strong pipelines in residential and commercial lending, particularly in New Hampshire.

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President and CEO Simon Griffiths projected low single-digit organic loan growth, emphasizing selectivity and strength in the New Hampshire market. He noted that 2025 investments in wealth and digital platforms would be self-funded through efficiencies. Griffiths also guided to a core NIM around 2.60% for Q1 2025. EVP and CFO Mike Archer added that the GAAP NIM will see a significant lift from purchase accounting related to the merger.

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CEO Simon Griffiths stated that Camden National remains disciplined on pricing and expects 1-3% loan growth in 2025, driven by strategic hires in high-growth markets. CFO Michael Archer detailed the paydown of BTFP borrowings, using swaps to lower funding costs from 4.76% to 4.09%, and projected a 2-5 basis point NIM expansion for Q4 2024.

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Executive Jeffrey Tengel clarified that the low single-digit loan growth forecast is a net result of intentional commercial real estate (CRE) runoff muting strong C&I growth. CFO Mark Ruggiero added that stable C&I line utilization also impacts outstanding balance growth. Regarding pricing, Ruggiero noted it is competitive, with new deals in the mid-6% range. On the specific loan, management confirmed occupancy is around 80%, but negotiations are complex due to the syndicated nature of the loan, free rent periods, and tenant improvement costs.

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Executive Jeffrey Tengel attributed the loan growth forecast to the productivity of 10 new C&I bankers and market share gains rather than a broad economic upswing. CFO Mark Ruggiero clarified that new loan volumes are originating around 7%, while maturing loans are in the low-to-mid 5% range. He also detailed that the past-due office loan bucket primarily consists of three previously discussed loans: a $30 million syndicated loan, a $7 million loan pending a note sale, and an $11 million loan in short sale negotiations.

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Executive Jeffrey Tengel explained that the $30 million loan's resolution is complicated by its syndicated nature and an unexpected tenant loss. For the $54.6 million loan, he noted the sponsor appears unwilling to contribute more capital, prompting the bank to explore all options, including a note sale or foreclosure. CFO Mark Ruggiero stated the office portfolio reserve is now nearly 5% including specific reserves, but closer to 2.5% for the remainder of the portfolio. Ruggiero also expressed a preference against a securities restructuring, arguing it doesn't create superior long-term value compared to their focus on growing tangible book value organically.

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CFO Annette Burns confirmed that approximately $2.2 billion in loans are expected to reprice at higher rates and provided an expense run rate of $97-$99 million per quarter for the first half of 2025. Executive Scott Kingsley added that the loan loss reserve was impacted by the runoff of higher-reserve consumer portfolios and described the nonperforming loan as a new multifamily project with a slow lease-up.

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CFO Annette Burns explained that approximately 40% of the deposit book is price-sensitive, and the bank is actively managing rates on money market accounts and CDs. She noted that $2 billion in annual loan cash flows are currently repricing higher. Executive Scott Kingsley added that the midpoint of the yield curve, which is higher than at the start of the year, is the key driver for asset repricing, leading to a positive spread on new originations. He also confirmed a concerted effort to grow the C&I portfolio, which also helps bring in complementary funding, and highlighted the bank's flexibility to selectively pursue CRE opportunities based on geographic market spreads.

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Executive Christopher Holmes described the C&I growth as broad-based and not reliant on single drivers, highlighting wins from larger regional banks. Executive Travis Edmondson added that recently hired revenue producers are contributing. On concentrations, Holmes stated they are comfortable with current levels (CRE at 245%, C&D at 69%) and expect them to remain in that relative range. Regarding M&A, Holmes noted that while conversations are constant, the 'intensity' and 'direct nature' of some discussions have picked up, suggesting increased intent from potential partners.

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