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President & CEO Donavon Ternes attributed the payoffs to both price and structure, but emphasized that Provident's tighter underwriting structure is a key factor. He confirmed loan repricing figures for the next two quarters, detailed the seasonality of expenses (higher in the March quarter due to payroll taxes), and explained that the company's mortgage-focused business model allows it to comfortably operate with a higher loan-to-deposit ratio than peers, though they have been gradually reducing it.

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President and CEO Donavon Ternes responded that prepayment activity is difficult to forecast and highly sensitive to mortgage rate volatility, noting that slower prepayments lengthen the portfolio's average life and can require a provision. Regarding capital, Ternes stated the buyback plan is set annually and would not significantly change, though a lower stock price would result in more shares being repurchased with the allocated capital. On competition, he acknowledged some aggressive pricing in multifamily loans but affirmed Provident's discipline, stating they would pivot to other products like single-family loans rather than originate at unsustainable yields.

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Donavon Ternes, President and CEO, clarified that the pricing strategy to drive volume applies to all major loan categories, including single-family, multifamily, and commercial real estate. He acknowledged that recent rate increases are a headwind but emphasized that rates remain more favorable than a year ago, still driving refinance demand. On liability pricing, Mr. Ternes noted little opportunity to lower retail deposit rates but highlighted a significant opportunity to reprice maturing FHLB advances and brokered CDs downward, citing a recent 120 basis point reduction on a brokered CD replacement.

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CEO Tim Myers highlighted new hires in key areas like San Francisco and Sacramento, noting that the Sacramento market is currently the bank's most active. He stated the cost of these hires is largely already reflected in the current expense run rate or has been offset. CFO Dave Bonaccorso confirmed the expense outlook, stating that the second half of 2025 is expected to look 'quite a bit like the first half,' with the forecast already embedding the impact of new hires and a lower-than-usual employee vacancy rate.

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Director, President & CEO Tim Myers confirmed new hires including a manager in San Francisco and additions in the highly active Sacramento market, noting their costs are largely reflected in the current run rate or have offsets. EVP & CFO Dave Bonaccorso reiterated the expense guidance, stating that the second half of 2025 is expected to look very similar to the first half. This outlook already embeds the costs associated with new hires and a lower-than-usual employee vacancy rate.

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Wine industry exposure is small and well-managed with no major issues. The trend of acquiring clients from larger banks continues, driven by new hires. The bank would prefer a smaller securities portfolio to fund more loans and has ample cash flow from it to support growth.

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Chief Credit Officer Misako Stewart clarified that wine industry exposure is small, at about 3% of total loans, and is primarily secured by low LTV real estate, with no major issues observed. CEO Tim Myers confirmed that the trend of winning clients from larger institutions continues, often driven by new bankers bringing over their former relationships. CFO Dave Bonaccorso stated that while they would prefer to shrink the securities portfolio to fund more loans, the current mix of cash and securities is appropriate to meet liquidity needs and fund expected loan growth.

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CCO Misako Stewart clarified that wine exposure is minimal at <3% of the portfolio, is underwritten to cash flow, and is not showing major issues. CEO Tim Myers confirmed that the trend of clients moving from larger banks continues, driven by new hires. CFO Dave Bonaccorso stated that while they'd prefer a smaller securities portfolio to fund more loans, the current liquidity mix is appropriate, with ample cash flow from securities to fund expected loan growth.

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SEVP & COO Peter Koh responded that the consumer base has remained resilient and the bank has not yet seen a significant negative impact on its customer base. EVP & CFO Julianna Balicka stated that the current deposit mix is well-balanced and that the reduction of brokered deposits to 5% of total deposits is a 'pretty good place' to be, with a medium-term target loan-to-deposit ratio of up to 95%.

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SEVP & COO Peter Koh noted that the consumer base has remained resilient and the bank has not yet seen a significant negative impact on its customer base. EVP & CFO Juliana Balicka stated that the bank has a good balance in its deposit mix and that brokered deposits are down to a comfortable 5% of total deposits. She reiterated the medium-term target loan-to-deposit ratio of up to 95%.

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COO Peter Koh responded that while uncertainty remains, the consumer base has been resilient, and the bank has not seen a significant negative impact on its customer base. CFO Julianna Balicka stated that the bank's medium-term target loan-to-deposit ratio is up to 95% and that the current brokered deposit level of 5% of total deposits is a good position from which to focus on growth.

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COO Peter Koh responded that while uncertainty was high at the start of the quarter, the consumer base has remained resilient with no significant negative impact seen on the customer base yet. CFO Julianna Balicka stated that the company has a good balance between consumer and commercial deposits, with brokered deposits reduced to a comfortable 5% of total deposits. She also reiterated a medium-term target loan-to-deposit ratio of up to 95%.

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SEVP & COO Peter Koh stated that while uncertainty exists, the consumer base has remained resilient, and the bank has not yet seen a significant negative impact on its customer base. EVP & CFO Julianna Balicka noted the current deposit mix is well-balanced and that brokered deposits, now at 5% of total deposits, are at a good level. She also reiterated the medium-term target loan-to-deposit ratio of up to 95%.

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CEO James Reuter and Deputy CFO David Della Camera did not provide a specific percentage for construction loans moving to lease-up, but noted that the process is standard and they are proactively managing the portfolio with nothing unusual to report. Regarding branch size, Reuter stated that while their current average of $76 million is below peers, he does not have a single target number as it depends on the trade area. He emphasized that optimizing the branch network will be a focus, with the goal of increasing the average size over time, though it will likely remain below peers due to their rural footprint.

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CFO Marcy Mutch confirmed a modest decline in average earning assets is expected due to loan runoff late in Q3. Chief Credit Officer David Redmon directed him to the investor presentation, noting the remaining loans are largely leased up or recently completed. CEO Kevin Riley added one has an investment-grade lessor. Mutch affirmed that these issues would not prevent future business in those markets.

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Executive T. Sullivan and Executive Edward Nigro addressed the questions. They anticipate further SEC-related costs in Q2 but potentially less than the $1 million budgeted. Nigro projected that credit card transaction volumes would likely remain flat in Q2 due to a planned marketing pause for system enhancements. He also confirmed plans for a secured card and other product improvements targeting a Q3 launch. Nigro expects the slot program to launch in Q2, with deposit growth beginning in Q3. Sullivan confirmed the SBA and commercial loan pipeline exceeds $300 million and noted that while demand is strong, gain-on-sale premiums remain soft.

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Lynn Hopkins confirmed that a return to second-half 2024 expense levels was a reasonable expectation, targeting an OpEx ratio around 1.80% of average assets. She clarified that new hires would not be a direct addition to costs due to expense rationalization elsewhere, and guided to an operating expense run rate between $17.5 million and $18 million.

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EVP & CFO Lynn Hopkins attributed lower deposit costs to the bank's liability-sensitive CD portfolio repricing in a lower rate environment. President & CEO Johnny Lee expects loan growth to be slower in Q1 and ramp up in Q2 and Q3. He also noted that the bank proactively engages with borrowers to retain loans but some payoffs are due to borrowers using excess cash or strategic decisions by the bank.

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Chief Credit Administrator Tom Dolan stated that their 'through-the-cycle' underwriting philosophy has not changed, though they are ensuring more conservatism is built into borrower projections. Executive Randall Chesler expressed that while M&A activity is picking up, it remains somewhat muted by market uncertainty, but reiterated that Glacier has demonstrated its ability to complete deals regardless of the broader environment.

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President and CEO David Brager responded that CRE demand is broad-based across all asset classes, with a continued focus on owner-occupied properties. He described general customer sentiment as 'relatively positive.' On construction lending, he acknowledged cost pressures but emphasized disciplined underwriting and sees opportunity. For multifamily, Mr. Brager confirmed the bank's appetite is unchanged and it remains 'open for business for the right borrowers.'

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President and CEO David Brager explained the direct impact is limited, with only $7.4 million in loans on destroyed properties, all of which were insured. He noted that insurance proceeds are held in bank-controlled accounts for rebuilding. Brager sees more potential upside than downside risk from rebuilding efforts. He confirmed the bank is willing and has ample capacity to increase construction lending, and is even considering slightly relaxing its typically stringent loan-to-cost requirements for wildfire relief projects.

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President & CEO Mark J. Grescovich expressed a pessimistic view on the economy due to tariff uncertainty but saw it as an opportunity to gain market share. Both he and EVP & Chief Credit Officer Jill Rice agreed that defense spending would bolster local economies like Puget Sound. EVP & CFO Robert Butterfield noted a special dividend is a tool they could use but is a lower priority currently. Jill Rice stated that she is not seeing broad, year-over-year changes in borrower financials that indicate a slowdown.

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EVP, Commercial Banking Jill Rice confirmed she believes there is pent-up loan demand that could be released post-election and with more rate certainty. President and CEO Mark J. Grescovich explained the new CBO role is part of a long-term succession and operational streamlining strategy. He affirmed that placing the role in Sacramento is strategic, calling California a 'fantastic market opportunity' for the bank.

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CFO Edward Czajka disclosed a recent strategic shift, noting the purchase of approximately $60 million in 10-year treasuries to capitalize on favorable rates, though he indicated this was not an ongoing program. Regarding the allowance, Executive Nick Pi projected the ratio could gradually decrease to a 1.15% to 1.25% range. Executive Li Yu added that the bank's philosophy is to reserve aggressively, which has historically kept their ratio above peer levels.

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Chairman and CEO Li Yu described a cautious positioning, emphasizing diligent monitoring of customers affected by tariffs and tightening underwriting on segments like industrial property. Executive Edward Czajka reported that $1.1 billion in time deposits with an average rate of 4.28% are set to mature in Q2, while current offering rates are in the mid- to high-3% range.

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The loan sale did not impact servicing income as they were portfolio loans, and no servicing asset was recognized due to uncertainty. The appetite for originate-to-sell is large but currently limited by market conditions. Further significant expense cuts are unlikely as FTE levels are already very low, though minor savings may come from lower FDIC fees and expiring leases.

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CEO Mark K. Mason clarified that the sale involved portfolio loans, so it did not impact the servicing fee line item, and no mortgage servicing asset was recognized due to the temporary nature of the arrangement. He affirmed a large appetite for originate-to-sell business, though it is tempered by market conditions. On expenses, Mason noted they are near the limit for FTE reductions, while CFO John Michel added that minor savings could come from lower FDIC fees and managing occupancy costs.

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Executive Mark K. Mason confirmed the parties could agree to extend the merger agreement. He clarified that while an $800 million pool has not been marketed, they have substantially negotiated a sale for a different, ~$300 million pool, providing significant market insight. He explained the two potential sales have different goals and would involve different loan pools. Mason stated they are unlikely to sell other assets like the DUS license. CFO John Michel did not have CD maturity data available but offered to follow up.

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The substandard loan balance has not changed materially. The nonaccrual loan was restructured with sufficient reserves and collateral. Efforts to restructure loans have yielded about $100 million but are slow as many loans are not yet near repricing. The expense reduction trend is expected to continue in Q4, with a seasonal increase in Q1 before resuming.

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CEO Jared Wolff clarified that they are not looking to shrink the asset base. Instead, balance sheet optimization refers to managing the capital stack, such as evaluating preferreds and sub debt, once the bank achieves excess capital (CET1 near 11%) and stable earnings. Both Wolff and CFO Joe Kauder indicated that a securities portfolio of 12-15% of earning assets is an appropriate long-term mix.

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CEO Jared Wolff explained that they are developing a better understanding of the loan pipeline, noting it has been about four months of active building since the post-merger reorganization. He described the credit quality of the legacy PacWest portfolio as "terrific," stating that the primary area of focus, office loans, has performed as anticipated. Wolff emphasized the bank's strong economic reserve coverage of 1.8% and their proactive approach to managing potential credit risks.

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CEO and President Mike Roffler expressed that the bank is in a "really good place" with its capital and tangible book value, feeling well-positioned to support 2023 growth. He confirmed that the sequential increase in Q4 compensation expense would be lower than the typical 5-10% range. President of Private Wealth Management Bob Thornton projected Q4 investment management fees to be between $135 million and $140 million.

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Chief Banking Officer Mike Selfridge stated that the bank has always been selective and has become even more cautious, focusing on smaller CRE deals with low LTVs and experienced operators, thereby avoiding the troubled large high-rise segment. CEO Mike Roffler confirmed that collateral for stock-secured loans is restricted to only highly liquid stocks.

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