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CEO H. Palmer Proctor addressed the questions, noting a resurgence in market activity and competition, which he expects to continue. Regarding capital deployment, Proctor stated the primary focus is organic growth, followed by stock buybacks, which he considers attractive at current valuations. He characterized M&A as a low priority, requiring a "very special" opportunity to distract from their current organic strategy. To attract talent, Proctor highlighted Ameris's market density, stable work environment, clear business model, and a culture of accountability as key differentiators.

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CEO H. Proctor stated the bank will remain 'measured' rather than 'aggressive,' leveraging its strong capital and liquidity for opportunities as they arise. EVP & CFO Nicole Stokes confirmed that strong expense control was broad-based and not due to one-time items, noting that Q2 will include merit increases. Chief Credit Officer Doug Strange explained the reserve build was purely model-driven, prompted by a shift in economic forecast weightings to 2/3 downside due to new information on potential tariffs.

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Chief Strategy Officer Stephen Young detailed that the bank expects a 1-2 basis point NIM improvement for every 25 bps rate cut, driven by the balance between floating-rate loans and repriceable deposits. CEO John Corbett stated that while the bar for M&A is high, the bank is actively recruiting talent from market disruptions, having added 47 revenue producers in Q2.

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Executive Stephen Young stated the balance sheet is now more neutral to rate changes, expecting only a minor 1-2 basis point NIM increase from a 25 bps cut. CEO John Corbett described the cultural integration with IBTX as exceptionally smooth with no major surprises. Corbett also noted that despite competitive pressures, loan pipelines were up 44% since year-end and that loan growth had resumed in April, suggesting a return to normal growth rates is achievable as the economy settles.

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CEO John Corbett described the sale-leaseback as a capital management move to harvest off-balance sheet capital at an attractive cost, providing future flexibility. Executive Vice President and Chief Financial Officer Stephen Young and President William Matthews mentioned a securities restructure is a potential use for the capital, pending final merger marks. On M&A, Corbett stated the 2025 focus is on integrating IBTX, viewing the $60-$80 billion asset range as the current sweet spot.

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Executive William Matthews clarified that the higher yields mentioned were in the 'loans held for sale' category, driven by a new SBA loan pooling business, not the on-balance sheet residential portfolio. Executive Stephen Young stated that the consumer residential loan portfolio's share of the balance sheet will naturally decline to around 21-22% post-merger and will be held relatively constant. CEO John Corbett added that post-merger, the company will leverage its treasury management platform to drive C&I hiring in Texas and Colorado while remaining opportunistic in all markets.

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CEO Jerry Plush confirmed the current allowance range of $120M-$125M is a reasonable baseline, contingent on the mix of future loan growth. He explained that the new syndications head will enable prudent risk management on larger deals, allowing the bank to participate without increasing concentration risk. CFO Sharymar Calderón noted the Q2 NIM was inflated by recoveries and the Q3 forecast reflects normalization and the full-quarter impact of a larger securities portfolio.

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CEO Gerald Plush attributed the credit rating changes primarily to the timing of receiving updated 2024 year-end financials from clients, which coincided with the new CCO's start, rather than a change in philosophy. On loan growth, he cited a combination of borrower uncertainty, high rates, and a deliberate 'pruning' of non-relationship loans. Regarding strategy, Plush and CFO Sharymar Yepez explained the mortgage pivot reflects a strategic decision to focus capital on core Florida markets for a better return, rather than scaling a national platform, and to maintain mortgage as a complementary product for relationship clients.

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Senior Chairman & CEO David Zalman responded "stay tuned" on San Antonio plans and defended the deal's earn-back by highlighting the quality of the franchise. He reiterated a preference for Texas but would consider a large, strategic out-of-state deal. He confirmed the provided NIM guidance excludes the accretive impact from the American Bank acquisition.

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David Zalman, Senior Chairman & CEO, responded with a cryptic "stay tuned" regarding further San Antonio expansion. He defended the deal's three-year earn-back, noting the price was an attractive 1.8x tangible book after AOCI adjustments for a high-quality bank. On future M&A, he reiterated a preference for Texas but confirmed a large, strategic deal outside the state would be considered. He also clarified that his earlier NIM trajectory guidance did not include the accretive impact from the American Bank acquisition.

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Senior Chairman and CEO David Zalman replied "stay tuned" regarding further San Antonio expansion. He defended the deal's pricing, noting the effective tangible book multiple was an attractive 1.8x after AOCI adjustments, making the three-year earn-back reasonable for a high-quality franchise. He confirmed a preference for Texas and Oklahoma but would consider a strategic deal elsewhere. Lastly, he clarified that the provided NIM trajectory guidance does not include the impact from the American Bank deal.

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Senior Chairman & CEO David Zalman responded to the San Antonio question with "stay tuned." Regarding the deal pricing, he explained that after adjusting for AOCI, the price was a very reasonable 1.8 times tangible book, making the three-year earn-back acceptable for a high-quality bank. On future M&A, he reiterated a preference for Texas but would consider a strategic out-of-state deal if it were large enough. He also clarified that the provided NIM trajectory guidance does not include the accretive impact from the American Bank acquisition.

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President & CEO Kevin Chapman stated that it is too early to consider further M&A, as the primary focus remains the successful integration of the First Bankshares merger. Executive VP & CFO James Mabry confirmed the sale of about 50% of the acquired securities portfolio was part of the original plan. Senior EVP & Chief Credit Officer David Meredith clarified that the higher provision was model-driven, influenced by recent charge-offs impacting historical loss factors and strong loan growth.

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Executive Vice Chairman and CEO Mitch Waycaster attributed the wealth management success to consistent execution and integration with commercial banking. Chief Credit Officer David Meredith stated the acquired loan book is very similar to Renasant's, so no significant changes or de-emphasis of loan categories are planned. Executive James Mabry confirmed that cost-saving timelines remain on track for after the August conversion and that purchase accounting marks are largely unchanged, though the rate mark may be slightly lower due to interest rate shifts.

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CEO Mitchell Waycaster confirmed the merger is expected to close in the first half of 2025, noting regulators have been engaged and responsive. Kevin Chapman commented that while specific regulatory impacts are uncertain, he expects upcoming changes to be a net positive for the industry and Renasant. James Mabry added that he believes the favorable trend in deposit costs represents a positive change in direction, not just a temporary effect.

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EVP and CFO James Mabry confirmed the pro forma balance sheet will have a 'very healthy liquidity position,' creating significant optionality for capital deployment in late 2025 and beyond. CEO Mitch Waycaster acknowledged that elevated CRE paydowns could be an industry trend but felt Renasant's diversified production could mitigate the impact. Both Mabry and EVP/COO Kevin Chapman highlighted that the enhanced liquidity provides 'optionality' for future growth, including potential team lift-outs or small non-bank deals, once The First integration is complete.

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President & Chief Banking Officer Richard Bradshaw responded that the strategy involves both adding lenders in existing markets and looking at major metro areas for growth, but the primary driver is the availability of top talent. Chairman & CEO H. Lynn Harton affirmed that the bank has the capacity to be 'very assertive' in hiring from competitors experiencing disruption and that Mr. Bradshaw has a 'free hand' to invest in the right people.

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Chairman, President & CEO John Bordelon stated that some loan demand is waiting for lower rates and that paydowns impacted Q2 growth. He and CFO David Kirkley explained that NII and NIM can still grow at current rates due to favorable loan repricing. They noted that a steeper yield curve would be optimal. Kirkley specified that new/renewal CD rates are around 3.85%, with new customer CDs at 4.1%, and Bordelon added that CD retention is high at 90%.

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Chairman, President & CEO John Bordelon confirmed that some loan demand is on hold pending rate cuts and that recent growth was tempered by paydowns. He and CFO David Kirkley explained that both NII and Net Interest Margin (NIM) could continue to expand even if rates remain flat, driven by the repricing of existing loans at higher yields. They also noted that the short-term nature of their CD portfolio would allow for quick cost reductions following any Fed rate cuts. David Kirkley specified that the weighted average rate for new and renewing CDs is around 3.85%, with new customer CDs coming in at approximately 4.1%.

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CFO David Kirkley clarified that while models show slight asset sensitivity, they project a rising NIM even in a rate-cut environment due to the loan portfolio's structure and the bank's lower starting point on deposit costs. Executive John Bordelon added that deposit betas should catch up over time but will be slower due to the tight loan-to-deposit ratio. Regarding buybacks, Bordelon indicated they would be opportunistic, particularly if the stock price is near tangible book value, but likely less aggressive than in Q1.

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President & CEO William Carroll stated that while low double-digit growth is feasible, he conservatively guides toward high-single-digits due to potential payoffs. He noted new hires are spread across Tennessee, Alabama, and the Gulf Coast. For future strategy, Carroll and Chairman Miller Welborn emphasized getting 'deeper' in existing markets rather than major new market expansion, focusing on growing revenue, EPS, and tangible book value.

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President and CEO William Carroll, along with executives Rhett Jordan and Miller Welborn, noted strong market conditions and positive client feedback despite tariff concerns, affirming their mid-to-high single-digit loan growth guidance. Carroll and CFO Ronald Gorczynski explained they have flexibility with their 83% loan-to-deposit ratio but will remain prudent, focusing on quality growth. Regarding buybacks, Gorczynski mentioned a remaining authorization of $1.5 million, while Carroll stated they typically consider repurchases closer to book value.

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CEO William Carroll and Chief Credit Officer Rhett Jordan attributed strong growth to diversified production and contributions from 17 new producers hired in 2024. Carroll emphasized that hitting profitability targets is the primary goal, and hiring will be balanced to support that. Executive Wesley Welborn added that the best M&A strategy might be organic growth. CFO Ronald Gorczynski explained that NIM expansion is driven by loan repricing and strong new loan yields, and he expects the bank to benefit even in a flat-rate environment.

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CFO Ronald Gorczynski affirmed that a 5-7% expense growth range is a reasonable long-term goal. President and CEO William Carroll and executive Rhett Jordan stated the CRE concentration is not a headwind, as they are highly selective and focused on full-relationship business. Carroll also expressed confidence in reaching the $50 million quarterly revenue target on schedule.

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EVP & CFO David Sparacio projected the adjusted NIM, starting at 3.06%, could increase by approximately 10 basis points per quarter for the rest of the year, absent Fed rate changes. He also noted the municipal deposit runoff was anticipated and managed. Chairman, President & CEO Thomas Broughton clarified that most new FTEs were interns and the merchant card initiative aims to significantly increase customer penetration from 1% to a target of 8%, boosting non-interest income.

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CEO Thomas Broughton and COO Rodney Rushing explained that the significant Q1 deposit growth was largely driven by temporary municipal and correspondent inflows, which are expected to moderate. CFO David Sparacio added that as these excess cash balances decrease, it should positively impact the NIM. Regarding loan demand, Tom Broughton expressed optimism, stating that 'Main Street is a heck of a lot more durable than Wall Street' and that the bank sees no significant negative impact on its commercial clients, with loan repricing and growth expected to drive earnings.

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CEO Thomas Broughton attributed the deposit discipline to the bank's excess cash position, which allows them to manage interest expenses without significant client pushback. He noted that robust floors on new loans should protect margins if rates fall. On hiring, Broughton confirmed the bank remains opportunistic, not constrained by budgets, and views M&A activity as a significant source of potential talent. He mentioned having a list of about 20 potential expansion markets and leveraging their correspondent network to identify opportunities.

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CEO Thomas Broughton confirmed no loss is expected on the special mention loans, attributing the downgrade to a construction delay on one project and hurricane-related payment timing. He also noted new bankers were hired in Auburn, Nashville, and Florida. CFO Kirk Pressley explained the loan yield increase was driven by ongoing repricing of the fixed-rate portfolio, not onetime items. Broughton added that new CD rates are falling, with a large block of high-rate CDs maturing in Q4.

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Chairman & CEO George Gleason explained that new hires were broad-based, driven by branch expansion, CIB growth, and new business banking teams. He stated that while competitor M&A creates opportunities, OZK's culture is the primary driver for attracting talent. CFO Tim Hicks added that the bank's strong organic growth sets a very high bar for any potential M&A, which is evaluated conservatively. Hicks also confirmed the CIB group is actively syndicating loans.

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Paschall Hamblen, President, acknowledged that market uncertainty has led to a pause in RESG origination guidance but noted that sponsors remain focused on high-quality deals. Chairman and CEO George Gleason reaffirmed the bank's overall loan growth guidance, expressing confidence in other business lines to compensate for any RESG slowdown. Jake Munn, President of Corporate and Institutional Banking, highlighted strong momentum in CIB and announced the launch of a new natural resources group to further the bank's diversification strategy.

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Chairman and CEO George Gleason, President Paschall Hamblen, and President of CIB Jake Munn confirmed that the growth diversification is on plan. Munn detailed the foundational build-out of CIB in 2024, positioning it for significant growth. CFO Tim Hicks noted that changes in unfunded commitments are one of many factors in the ACL calculation. Gleason emphasized that loan modifications are a positive tool used to strengthen credits by collecting fees, securing paydowns, and replenishing reserves, underscoring the bank's disciplined, credit-first culture.

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CFO Tim Hicks and CEO George Gleason explained that NIM dynamics depend on the pace of Fed cuts, with faster cuts creating near-term headwinds but accelerating the inflection point as loan floors are reached. President Brannon Hamblen and CIB President Jake Munn detailed the CIB's significant headcount expansion and strong pipelines, which are timed to offset moderating RESG growth. Hamblen also clarified that loans are reclassified from construction upon project completion and the start of amortization, with no fundamental change to the ongoing risk evaluation process.

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President & Chief Lending Officer Kevin Hester attributed loan growth to strong markets rather than increased aggressiveness. Chairman & CEO John Allison confirmed the focus is on whole-bank M&A and reiterated a strong aversion to dilutive deals, stating the company has no intention of pursuing transactions that dilute shareholder value, though a minor, short-term dilution for a strategic, EPS-accretive deal might be considered.

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Executive John Allison opined that educating sellers on relative value and exchange ratios is more critical than absolute stock prices for getting deals done, though he acknowledged that marks on securities portfolios are a hurdle for some potential sellers. On revenue, Allison stated there is no new initiative, and the plan is to 'keep on, keeping on.' He expressed confidence that the next quarter would be as good or better, citing a strong run rate and several anticipated one-time gains.

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Chairman John Allison stated that while the Happy deal made them more cautious about culture, they remain active in M&A, considering banks from $750M to over $2.5B. He identified faster M&A approval timelines as the most impactful potential regulatory relief. He and Kevin Hester cited strong pipelines in key markets like Florida and general economic optimism as reasons for their positive loan growth outlook.

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Chairman John Allison stated that the bank is actively looking at M&A opportunities and believes a Trump administration would be more supportive, potentially boosting activity. Regarding the NIM, CEO Stephen Tipton explained that while their model shows a slight decline in a rate-cut scenario, the goal is to remain flat by aggressively managing deposit costs. Mr. Allison added that early Q4 data shows the margin holding up well.

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MD & CFO Matt Scurlock detailed that NII momentum, driven by CD repricing and strong deposit growth, could push revenue to the high end of the current guide. He noted mortgage finance yields would dip with a Fed cut but otherwise remain flat. Chairman, President & CEO Rob Holmes attributed the expense discipline to multi-year technology investments that are now enabling greater efficiency and scalability.

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Chief Credit Officer Brent Bates and President Cory Newsom explained that while loan origination is strong, high payoffs are tempering growth expectations to the low-to-mid single-digit range for 2025. Newsom affirmed they will pursue both new hires and M&A concurrently, with a focus on relationship banking. Bates and CFO Steven Crockett clarified that the increase in specific reserves was due to a few smaller loans entering non-accrual status and was not related to the large problem loan that was successfully resolved.

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Executive Steven Crockett indicated new loan yields are in the 7% range, creating a positive spread over maturing loans in the 4-5% range. CEO Curtis Griffith affirmed his confidence in continued NIM expansion in 2025, even in a stable rate environment. Regarding the economy, President Cory Newsom and CCO Brent Bates highlighted strong optimism in the Permian Basin, which is driving the loan pipeline. Griffith added that stable oil prices and increased drilling would be a positive macro event for markets like Houston.

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CFO Harold Carpenter stated the BHG mix is roughly 70% consumer and 30% commercial, making the consumer credit improvement highly impactful. He noted that reaching the 125% incentive payout would require hitting the high end of guidance ranges for loan, deposit, and fee growth. President & CEO Terry Turner expressed strong confidence in the Richmond market, targeting a $1 to $1.5 billion bank over five years, driven by an exceptionally experienced new team.

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CFO Harold Carpenter estimated the BHG mix is about 70% consumer, making improvements in that segment highly impactful. He stated that achieving the 125% incentive payout requires hitting the high end of guidance for loan, deposit, and fee growth. CEO Terry Turner projected the Richmond market could become a $1 billion to $1.5 billion asset bank within five years, expressing high confidence in the newly hired team.

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CFO Harold Carpenter estimated the BHG mix is about 70% consumer and 30% commercial, noting the improvement in consumer credit is most impactful. He stated that achieving the 125% incentive payout would require hitting the high end of the firm's growth guidance ranges. President & CEO Terry Turner added that the goal for the new Richmond market is to build a $1 to $1.5 billion bank over five years, expressing strong confidence in the newly hired team there.

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M. Turner (Executive) clarified that while some new markets are strong deposit contributors, the primary driver has been the firm's specialty deposit verticals. Harold Carpenter (Executive) expressed confidence in maintaining aggressive deposit repricing with rate cuts but acknowledged it becomes harder as rates approach zero. He also noted the firm is not afraid of deeper cuts as long as the yield curve is not inverted.

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Executive Harold Carpenter explained that moving clients to indexed deposits is a one-on-one conversation, and he is confident in retaining these clients due to strong relationships. Executive M. Turner added that the bank has been proactively preparing associates and clients for a down-rate environment. On the topic of growth, Turner emphasized that Pinnacle's culture, which is strengthening, not diminishing, is key. He pointed to consistent high rankings as a 'Best Place to Work' and a focus on a geographic, not line-of-business, structure as differentiators. He believes the simple, repeatable model of hiring the best bankers who bring their clients over will continue to drive outsized growth without succumbing to the 'law of large numbers'.

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CFO Michael Achary confirmed that focusing on the organic growth plan is a 'very plausible path.' President and CEO John Hairston added that there is no ceiling on hiring good talent opportunistically, stating they would gladly add more 'offensive players' beyond their stated goals if the right people became available.

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CFO Michael Achary declined to provide Sabal's specific expense base but noted its expected accretion is $0.02/share in 2025, growing to $0.08-$0.10 by 2027. He explained that NII is not materially sensitive to the number of rate cuts this year; loan growth is the primary driver. He stated NIM expansion will continue via repricing opportunities. CEO John Hairston added that an upside surprise in loan growth would require the 10-year Treasury yield to remain elevated, an acceleration of new hires, and faster productivity from those hires.

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CEO John Hairston stated that 2025 growth guidance has minimal impact from new hires, whose contribution will be more significant in 2026. He identified the end of the SNIC portfolio runoff as the biggest tailwind, with green shoots in CRE, healthcare, and business banking. CFO Michael Achary addressed the stock valuation by highlighting the company's achievements in de-risking, improving profitability, and building capital, positioning 2025 as a pivot to growth.

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CEO Chris Holmes stated the company has no preference between M&A and organic lift-outs, feeling well-positioned to pursue both. CFO Michael Mettee clarified the higher provision for unfunded commitments was driven by the new CECL model's methodology and economic assumptions, not a change in production. Chief Banking Officer Travis Edmonson noted that while multifamily demand has slowed, the bank continues to work with a select group of top-tier operators on new projects.

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Executive Christopher Holmes noted some client reticence on major projects but continued business-as-usual activity. Chief Bank Officer Travis Edmondson added that loan pipelines remain robust, supporting a high single to low double-digit growth outlook. Edmondson and CFO Michael Mettee confirmed strong momentum and continued hiring in Tuscaloosa and Nashville. Holmes affirmed the company's intent to maintain its hiring pace and to be active in the market with its $73 million share repurchase authorization if the stock is perceived as undervalued.

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Executive Christopher Holmes explained that new hires are primarily core C&I frontline bankers and that recruiting momentum is strong. He attributed growth optimism to the maturation of recent hires and strong organic growth in the bank's geography. Regarding M&A, Holmes confirmed that faster regulatory approvals reduce transaction risk and shape their view, allowing for a more constructive approach to deals without getting 'over their skis'.

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CEO Raj Singh explained that NII is sensitive to loan growth, credit spreads, and the slope of the yield curve, but reiterated confidence in the existing guidance. Regarding the residential book, CFO Leslie Lunak stated that analyses show the earn-back period for a potential sale is too long to be a compelling trade. Raj Singh added that the focus for 2025 remains on balance sheet optimization rather than overall growth.

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CFO Leslie Lunak confirmed that NII growth is driven by margin and balance sheet mix transformation, not asset growth. She declined to disclose specific expense details for deposit-gathering business lines. Regarding the office loan, management stated they are adequately reserved with a specific provision but did not provide further details on the credit.

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EVP & CFO Leslie Lunak attributed the occupancy expense increase to sporadic repair and maintenance costs. CEO Raj Singh stated the long-term NIM target is over 3% within the current business model. Both Mr. Singh and Ms. Lunak explained that growing PPNR will require a return to balance sheet growth and top-line revenue growth, as the recent shrinkage was a deliberate part of the bank's transformation strategy.

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Michael Young, Treasurer and Director of Investor Relations, explained the securities purchase was a low-risk move to pre-purchase assets ahead of the Heartland deal, locking in higher yields. He also attributed NIM strength to the loan portfolio's structure, hedge roll-offs, and proactive deposit repricing. CEO Charles Shaffer confirmed a clear path to high single-digit loan growth, driven by recent talent investments, but noted that potential tariffs add a layer of uncertainty.

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CEO Charles Shaffer attributed the path to a 1%+ ROA to gaining operating leverage by combining strong organic growth with an expanding margin against a well-invested expense base. Treasurer Michael Young detailed NIM tailwinds from repricing assets and estimated a 2-4 bps core NIM expansion per Fed rate cut. Regarding M&A, Shaffer noted that while conversations continue, the bank remains disciplined, especially given its strong organic growth prospects.

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An unnamed executive explained that these are secured loans, often margined against billings for highly desirable contracts, leading to a very low expected loss-given-default. President and CEO John Asbury emphasized the portfolio's 15-year history with zero charge-offs, its focus on national security and defense, and the high-variable-cost nature of the businesses, which allows them to flex expenses easily. He noted that while he doesn't claim they will never have a charge-off, their experience has been excellent.

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President and CEO John Asbury and EVP and CFO Rob Gorman confirmed they will target an April 1 close for accounting simplicity, even if approvals arrive earlier. Head of Commercial Businesses David Ring noted elevated payoffs were mainly refinances and some C&I activity related to private credit. Asbury and Ring attributed the loan growth guidance range to competitive dynamics and a disciplined approach to credit structure, not a desire for excessive growth.

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CEO Malcolm Holland stated the bank will manage CRE concentrations just below regulatory guidelines and that new investment is focused on C&I. Executive William Holford explained the balance sheet is now rate-neutral, but rate cuts would cause short-term NIM pressure for 3-4 months before stabilizing. CFO Terry Earley confirmed the bank would continue to be opportunistic with buybacks, especially if the stock trades below tangible book value, and would not expect repurchase volume to decrease.

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Chairman and CEO Malcolm Holland stated that Veritex will manage CRE concentrations just below regulatory limits and expects payoffs to remain stable, while noting new investments are focused on the C&I space. Executive William Holford explained that the balance sheet is now relatively rate-neutral, with a 3-4 month lag for the Net Interest Margin (NIM) to catch up after a rate cut. He anticipates the NIM will remain in the guided range if there are two rate cuts in the back half of the year. CFO Terry Earley added that the company would be aggressive with share repurchases if the stock trades below tangible book value and does not expect the pace of buybacks to slow.

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CEO Malcolm Holland stated that the bank will manage CRE concentrations just below regulatory limits and that payoffs have been stable, with new investments focused on C&I. Executive William Holford described the balance sheet as rate-neutral, noting a rate cut would cause a 3-4 month lag in NIM recovery as the CD portfolio reprices. CFO Terry Earley confirmed the bank intends to be opportunistic with its remaining $37 million buyback authorization, especially if the stock trades below tangible book value, suggesting the Q1 repurchase pace is a reasonable expectation.

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CEO Malcolm Holland confirmed the 1% ROA target for 2025, likely to be achieved in Q3, driven by loan growth and deposit repricing. CFO Terry Earley emphasized that fee income from areas like treasury management, card revenue, and government-guaranteed loans would also be a significant contributor. Regarding loan growth, Holland noted that while payoffs from 2021-2022 loans are a headwind, production pipelines are very strong. Executive Will Holford added that new CDs in Q1 2025 were being issued at a rate of 4.24% with good customer retention.

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Chairman and CEO Malcolm Holland explained that enhancements in the government lending business, including integrating SBA lending into the USDA team's scope, should produce better results in the second half of the year. He also stated that CRE concentration reduction will be achieved organically through loan payoffs, not asset sales. CFO Terry Earley added that the growth in noninterest-bearing deposits is a direct result of successful new client acquisition efforts by the bank's business and community bankers, who are bringing in granular, low-cost funding.

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CEO James Rollins expressed comfort with the current loan-to-deposit ratio, aiming to stay in the current neighborhood. On M&A, he stated that while speed is good, the primary focus remains on finding the right cultural fit, which isn't changed by timelines or valuations. Regarding mortgage, CFO Valerie Toalson noted that a significant rate drop of 50 basis points or more would be needed to truly ignite refi activity, though the team has been upscaled and is performing well.

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Executive William Furr explained that structured finance revenues in 2025 are subject to the decisions of a large state housing authority regarding its down payment assistance program, which has been a significant driver in the past two years. Regarding asset sensitivity, Furr reiterated a long-term target of 2-4% and outlined strategies to achieve this, including reinvesting securities portfolio cash flows, increasing retention of hybrid fixed-rate mortgages, and moving broker-dealer sweep deposits out of the bank. He attributed provision volatility to the adoption of a single economic scenario (Moody's S5) and specific reserve activity related to the auto note portfolio.

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EVP and CFO William Furr explained that the NPL improvement was largely due to paydowns on two specific auto loans and that the firm remains cautious on credit due to rate and inflation pressures. He projected that purchase accounting accretion would decline 15-25% annually. He also noted that while 75-80% of variable-rate loans have floors, significant rate cuts would be needed to activate them. President and CEO Jeremy Ford added that the bank had positive but selective recruiting during the quarter to expand its footprint.

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Executive Luis de la Aguilera attributed the Q4 loan growth moderation to higher-than-normal payoff activity, especially in correspondent banking, but affirmed the forward pipeline is strong, reiterating guidance for high single-digit to low double-digit growth. Both he and CFO Robert Anderson emphasized optimizing existing scalable deposit verticals rather than adding new ones. Regarding the reserve, Chief Credit Officer William Turner and Anderson explained it will likely grow in line with the portfolio but that the current level of 1.22% is considered very adequate.

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CEO Luis de la Aguilera stated the bank is modeling low double-digit growth for 2025, driven by Florida's strong economy and the bank's diversified business lines. He clarified that growth is sustained by selectively hiring top talent rather than mass hiring, noting headcount has remained stable amid significant asset growth. CFO Robert Anderson explained that the NIM is outperforming the asset-sensitive model because the bank has been more effective at repricing its money market deposits than the model's historical assumptions, leading to margin expansion.

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CFO Paul Egge stated the bank aims to deliver operating leverage on both a GAAP and core basis, suggesting consensus estimates were light. He confirmed the remaining loan discount is $73.7 million and will diminish over the next year. He also noted that the high year-end cash balance was a temporary 'mirage' due to seasonal government deposits. CEO Robert Franklin described the stock's M&A currency as 'neutral' at current levels—not a benefit, but not a detriment.

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President Jay Brogdon explained that the decision is multi-faceted, focusing on the trade-offs between capital and earnings, as well as the pro-forma impact on the bank's asset/liability management (ALM) profile. He emphasized that the bank runs numerous scenarios to evaluate the long-term earnings impact under various rate environments before committing to a trade, seeking an 'economically viable path' to accelerate its goals.

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President Jay Brogdon suggested that a NIM on a 'glide path toward three' in the latter half of 2025 is a fair expectation, contingent on the Fed's actions. CFO Daniel Hobbs estimated a downward deposit beta around 40%, noting it would be difficult to replicate the 51% beta from the up-cycle. Brogdon described reaching a 1% ROA and 3% NIM as near-term goals, with a longer-term target of 1.25% ROA.

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CEO Kevin Blair explained that the capital markets strategy is driven by meeting existing client needs rather than a goal to become a global player. He characterized the middle market and CIB hiring as being in the later innings, but noted a significant new focus on reinvesting in the Community Bank to target clients with $5 million to $50 million in revenue, which represents a strategic shift.

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CFO Jamie Gregory indicated that operating leverage in 2025 is possible, as higher revenue growth is expected to accompany planned expense growth from strategic investments. CEO Kevin Blair noted that the rate of decline in consumer DDA balances is slowing, which offers hope for a stabilization of the overall noninterest-bearing deposit trend.

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Investments in C&I and SBA are being self-funded by reallocating expenses from departing real estate lenders and will not increase the overall expense base. The M&A outlook remains challenging due to the rate environment, with uncertain timing. The year-end NIM target is still approachable, though perhaps not fully reaching 3%, as strong asset repricing provides significant lift even without rate cuts.

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The increased liability sensitivity is due to an updated deposit study, a remix towards short-duration funding, and indexing a large portion of deposits to Fed Funds. Including promo and brokered CDs, roughly half the deposit book can reprice quickly. New CRE demand is for smaller, granular deals; demand for large projects has dropped. The bank is focusing on C&I and SBA lending to balance its growth.

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The bank expects over $2 billion in contractual loan repricing in 2024, with new yields in the high 7s replacing loans around 4%. Noninterest-bearing deposits have shown strong stability since the quarter's end.

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