Core Insights - First National Bank, a subsidiary of F.N.B. Corporation, has appointed Alfred D. Cho as Chief Consumer Banking Officer, succeeding Barry Robinson [1][2] - Cho brings over 25 years of experience in strategic consulting, investment banking, and financial institutions, having worked with major firms like J.P. Morgan and Bank of America [2] - The bank aims to leverage Cho's strategic mindset to enhance its retail banking capabilities and continue its growth trajectory [3] Company Overview - F.N.B. Corporation is headquartered in Pittsburgh, Pennsylvania, and operates in seven states and the District of Columbia, with total assets nearing $50 billion [4] - The company has approximately 350 banking offices across major metropolitan areas, including Pittsburgh, Baltimore, and Charlotte [4] - FNB offers a comprehensive range of services, including commercial banking, consumer banking, and wealth management solutions [5] Leadership Transition - Barry Robinson, the former Chief Consumer Banking Officer, has retired after 15 years of service, during which he contributed significantly to the bank's growth [3] - Cho expressed his appreciation for FNB's leadership and culture, indicating a commitment to driving the bank's success [3] Strategic Focus - The bank's strategy includes enhancing its physical network and digital services, exemplified by its eStore® platform [3] - FNB's consumer banking segment encompasses a full line of products, including deposit accounts, mortgage lending, and online banking services [5]

Core Insights - F.N.B Corporation has appointed Frank Schiraldi as the Director of Corporate Strategy for its banking subsidiary, First National Bank, to enhance growth strategies and corporate decision-making [1][2] Company Overview - F.N.B. Corporation is a diversified financial services company headquartered in Pittsburgh, Pennsylvania, operating in seven states and the District of Columbia, with total assets nearing $50 billion and approximately 350 banking offices [5][6] - The company provides a full range of commercial banking, consumer banking, and wealth management solutions through its subsidiary network, with First National Bank of Pennsylvania being the largest affiliate [6] Leadership and Strategy - Frank Schiraldi, who has over 20 years of experience in the banking sector, previously served as Managing Director and Senior Research Analyst at Piper Sandler, specializing in regional banking [3][4] - Schiraldi's role involves leading a team that analyzes business metrics, financial information, and macroeconomic factors to strategically position the company for growth [2][4] - The corporate strategies team is now integrated with experts in digital technology, AI, and data science, highlighting the importance of these areas in strategic planning [4] Market Position - F.N.B. Corporation's common stock trades on the New York Stock Exchange under the symbol "FNB" and is included in the S&P MidCap 400 Index [7]

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents F.N.B. Corporation's unaudited consolidated financial statements, including balance sheets, income statements, and notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $49.7 billion by June 30, 2025, driven by loan growth, with liabilities and equity also rising Consolidated Balance Sheet Summary (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$49,725** | **$48,625** | | Net Loans and Leases | $34,247 | $33,516 | | Investment Securities (AFS & HTM) | $7,695 | $7,445 | | Goodwill | $2,480 | $2,478 | | **Total Liabilities** | **$43,201** | **$42,323** | | Total Deposits | $37,748 | $37,107 | | Total Borrowings (Short & Long-term) | $4,568 | $4,268 | | **Total Shareholders' Equity** | **$6,524** | **$6,302** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income increased to $130 million ($0.36 diluted EPS), driven by a rise in net interest income Income Statement Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $583 | $557 | $1,142 | $1,100 | | Net Interest Income | $348 | $316 | $671 | $635 | | Provision for credit losses | $26 | $20 | $43 | $34 | | Total Non-Interest Income | $91 | $88 | $179 | $176 | | Total Non-Interest Expense | $247 | $227 | $493 | $464 | | **Net Income** | **$130** | **$123** | **$247** | **$245** | | **Diluted EPS** | **$0.36** | **$0.34** | **$0.68** | **$0.66** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, covering investment securities, loans, credit losses, and more - F.N.B. Corporation is a diversified financial services company with **351 branches** across seven states and the District of Columbia, offering commercial banking, consumer banking, and wealth management solutions[16](index=16&type=chunk)[17](index=17&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses F.N.B. Corporation's strong Q2 2025 financial performance, covering operations, condition, liquidity, and capital [Financial Summary](index=60&type=section&id=Financial%20Summary) Q2 2025 saw strong financial results, including record revenue, high capital levels, and significant balance sheet growth - The company reported strong Q2 2025 results, including **record revenue of $438.2 million**, a **CET1 ratio of 10.8%**, and a **13% year-over-year increase in tangible book value per common share** (non-GAAP)[180](index=180&type=chunk)[182](index=182&type=chunk) - Balance sheet highlights for Q2 2025 include linked-quarter annualized average loan and deposit growth of **5.3%** and **1.7%**, respectively, and a significant decline in non-performing loans by **$44 million (27.5%)** from the prior quarter[180](index=180&type=chunk)[182](index=182&type=chunk) [Results of Operations](index=63&type=section&id=Results%20of%20Operations) Q2 2025 saw net interest income grow 9.9% to $347.2 million, while non-interest expense increased 8.7% Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $347,196 | $315,890 | $31,306 | 9.9% | | Provision for Credit Losses | $25,601 | $20,189 | $5,412 | 26.8% | | Non-Interest Income | $91,015 | $87,922 | $3,093 | 3.5% | | Non-Interest Expense | $246,225 | $226,612 | $19,613 | 8.7% | | Net Income | $130,670 | $123,037 | $7,633 | 6.2% | - Net interest margin (FTE, non-GAAP) increased **10 basis points** year-over-year to **3.19%** in Q2 2025, benefiting from growth in earning assets and lower interest-bearing deposit costs[185](index=185&type=chunk)[191](index=191&type=chunk) - Non-interest expense increased primarily due to a **7.4% rise in salaries and benefits** from strategic hiring and a **10.1% increase in occupancy and equipment costs** from technology investments and branch expansion[185](index=185&type=chunk)[206](index=206&type=chunk) [Financial Condition](index=78&type=section&id=Financial%20Condition) Total assets reached $49.7 billion by June 30, 2025, with growth in loans and deposits, and improved asset quality Loan Portfolio Composition (in millions) | Loan Type | June 30, 2025 | Dec 31, 2024 | $ Change | | :--- | :--- | :--- | :--- | | Total commercial loans and leases | $21,198 | $21,164 | $34 | | Total consumer loans | $13,481 | $12,775 | $706 | | **Total loans and leases** | **$34,679** | **$33,939** | **$740** | Non-Performing Assets (in millions) | Category | June 30, 2025 | Dec 31, 2024 | $ Change | | :--- | :--- | :--- | :--- | | Total non-performing loans | $117 | $159 | ($42) | | Other real estate owned | $2 | $3 | ($1) | | **Total non-performing assets** | **$119** | **$162** | **($43)** | - The Allowance for Credit Losses (ACL) on loans and leases increased to **$432.1 million**, representing a stable coverage ratio of **1.25%** of total loans[242](index=242&type=chunk) [Capital Resources and Regulatory Matters](index=81&type=section&id=Capital%20Resources%20and%20Regulatory%20Matters) The company maintains a strong capital position, exceeding regulatory thresholds, with a record CET1 ratio of 10.8% F.N.B. Corporation Capital Ratios | Ratio | June 30, 2025 | Minimum + Buffer | | :--- | :--- | :--- | | CET1 | 10.79% | 7.00% | | Tier 1 capital | 10.79% | 8.50% | | Total capital | 12.50% | 10.50% | | Leverage | 8.78% | 4.00% | - The company repurchased **0.7 million shares** of common stock for **$10.0 million** during the second quarter of 2025[250](index=250&type=chunk) [Liquidity](index=83&type=section&id=Liquidity) The company maintains a strong liquidity position with $755.7 million cash on hand and significant wholesale credit availability - Parent company cash on hand stood at **$755.7 million** as of June 30, 2025, with liquidity metrics well above internal limits[262](index=262&type=chunk)[264](index=264&type=chunk) - The bank (FNBPA) has significant unused wholesale credit availability of **$15.9 billion** and **$3.1 billion** in cash and salable unpledged government securities, representing **6.4%** of total assets[269](index=269&type=chunk) [Market Risk](index=86&type=section&id=Market%20Risk) The company manages interest rate risk, with a slightly asset-sensitive balance sheet, actively reducing sensitivity through various strategies Net Interest Income Sensitivity (Rate Ramps) | Rate Change | NII Change over 12 months | | :--- | :--- | | +200 bps | +2.3% | | +100 bps | +1.2% | | -100 bps | -1.2% | | -200 bps | -2.5% | - The company's interest rate risk position is slightly asset sensitive, but management has taken actions to move it closer to a neutral position, reducing the 12-month cumulative repricing gap to **3.3% of assets** from **4.5%** at year-end 2024[279](index=279&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - In Q2 2025, the company executed **$250 million notional** of receive-fixed interest rate swaps to hedge variable rate commercial loans and lower asset sensitivity[283](index=283&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=95&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the detailed discussion on market risk from Management's Discussion and Analysis - The information regarding market risk is provided in the Market Risk section of the MD&A and is incorporated here by reference[310](index=310&type=chunk) [Controls and Procedures](index=95&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that FNB's disclosure controls and procedures were effective as of June 30, 2025, with no material changes - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[311](index=311&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[313](index=313&type=chunk) [PART II – OTHER INFORMATION](index=96&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=96&type=section&id=Item%201.%20Legal%20Proceedings) This section details a settlement with the DOJ and North Carolina regarding fair lending concerns, involving mortgage subsidies - The company reached a settlement with the DOJ and North Carolina regarding fair lending concerns related to a predecessor bank's activities prior to a 2017 merger. The settlement includes a **$11.75 million commitment** for mortgage subsidies, which is part of an existing community program and did not include civil money penalties[137](index=137&type=chunk)[314](index=314&type=chunk) [Risk Factors](index=96&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K and Q1 2025 Form 10-Q - There have been no material changes to the risk factors described in the company's 2024 Annual Report on Form 10-K and the Q1 2025 Form 10-Q[315](index=315&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=96&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) F.N.B. Corporation repurchased 725,000 shares of common stock at $13.85 per share during Q2 2025 as part of its program Common Stock Purchases - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | — | $— | | June 2025 | 725,000 | $13.85 | | **Total** | **725,000** | **$13.85** | [Other Information](index=97&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[320](index=320&type=chunk)

Market Overview - U.S. stocks experienced a significant decline due to escalating trade tensions and disappointing labor data, leading to a broad sell-off on Wall Street [1][10] - The Dow Jones Industrial Average fell by 542.40 points (1.23%) to close at 43,588.58, while the S&P 500 decreased by 1.60% to 6,238.01, and the Nasdaq Composite dropped by 2.24% to 20,650.13 [3] Employment Data - Nonfarm payrolls increased by only 73,000 in July, significantly below consensus expectations, and June's job creation was revised down from 147,000 to just 14,000, indicating a deeper slowdown in the labor market [2] - These labor market developments have raised the likelihood of a Federal Reserve interest rate cut in September [2] Investment Opportunities - In the current market environment, value stocks are highlighted as attractive investment options due to their potential safety margin during periods of uncertainty [3][10] - Companies such as CVS Health Corporation (CVS), Integer Holdings Corporation (ITGR), Associated Banc-Corp (ASB), and F.N.B. Corporation (FNB) are noted for their low Price to Cash Flow (P/CF) ratios, indicating strong financial health [4][10] Valuation Metrics - The P/CF ratio is emphasized as a reliable valuation metric, as it reflects a company's cash flow generation relative to its market price, providing a clearer picture of financial health compared to earnings metrics [5][6] - Positive cash flow is crucial for a company's liquidity, enabling it to manage debt, reinvest, and undertake shareholder-friendly actions [7] Stock Selection Criteria - A comprehensive approach to identifying value stocks includes considering multiple metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [8][11][12] - Specific parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and a Zacks Rank of 1 or 2 [9][13] Company Highlights - CVS Health has a Zacks Rank of 2, with projected sales growth of 3.9% and EPS growth of 14.6% for the current financial year, and shares have increased by 8.1% over the past year [14] - Integer Holdings also holds a Zacks Rank of 2, with expected sales growth of 7.8% and EPS growth of 20.2%, although shares have decreased by 3.4% in the past year [15] - Associated Banc-Corp, with a Zacks Rank of 2, anticipates sales growth of 11.5% and EPS growth of 8.4%, with shares rising by 19.2% in the past year [16] - F.N.B. Corporation, also ranked 2, expects sales growth of 6.2% and EPS growth of 2.2%, with shares increasing by 9.6% over the past year [17]

Core Viewpoint - F.N.B. Corporation (FNB) is identified as a potential stock pick due to a recent "golden cross" event and positive earnings outlook, suggesting a bullish trend ahead [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), indicating a potential bullish breakout [2]. - The formation of a golden cross involves three stages: a downtrend followed by a crossover of moving averages, and finally an upward price movement [3]. Stock Performance - FNB shares have increased by 7.8% over the past four weeks, indicating positive momentum [4]. - The company holds a 2 (Buy) rating on the Zacks Rank, reinforcing the bullish outlook for FNB [4]. Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with three revisions higher in the past 60 days, leading to an increase in the Zacks Consensus Estimate [4]. - The combination of the technical indicator and positive earnings revisions suggests that investors should consider adding FNB to their watchlist [5].

Group 1 - First National Bank has promoted Brian Mancos to Director of Human Resources and Corporate Services, succeeding Charles Casalnova [1][2] - Mancos has over a decade of experience as Senior Corporate Counsel at FNB and will report directly to Vincent J. Delie, the Chairman, President, and CEO [2][4] - Delie emphasized the company's focus on internal talent development and Mancos' unique qualifications to enhance the company's culture of collaboration and innovation [4] Group 2 - F.N.B. Corporation is a diversified financial services company with total assets of nearly $50 billion and approximately 350 banking offices across several states and the District of Columbia [5][6] - The company operates in major metropolitan areas including Pittsburgh, Baltimore, Cleveland, Washington D.C., and several cities in North Carolina and South Carolina [5] - FNB offers a comprehensive range of services including commercial banking, consumer banking, and wealth management solutions [6]

Core Insights - F.N.B. Corporation has introduced business deposit products to its eStore Common application, allowing customers to apply for both business and personal banking products through a single universal process, enhancing digital innovation in the financial services industry [1][2][4] Group 1: Product Offering - The eStore Common app now includes business deposit products, such as the Business First bundled checking solution, which offers advanced reporting tools and fraud mitigation services [4] - FNB plans to add business loan products to the eStore Common app in 2026, further expanding its offerings [4] Group 2: Customer Experience - The application process is streamlined, with most applications taking approximately seven minutes to complete, resulting in a 30% time savings for customers applying for multiple products simultaneously [3] - The eStore Common app features data prefilling technology and allows for easy document uploads, enhancing the overall customer experience [6] Group 3: Digital Strategy and Growth - FNB's digital platform, powered by AI and a data warehouse, automates personalized product recommendations and account opening processes, contributing to a 108% increase in eStore Common app submissions between Q1 and Q2 of 2025 [5] - The company is leveraging AI and automation to provide personalized, data-driven recommendations for additional products and services, indicating a strong focus on digital-first banking [5] Group 4: Company Overview - F.N.B. Corporation is headquartered in Pittsburgh, Pennsylvania, and operates in seven states and the District of Columbia, with total assets nearing $50 billion and approximately 350 banking offices [8] - The company offers a comprehensive range of financial services, including commercial banking, consumer banking, and wealth management solutions [9][10]

Core Viewpoint - F.n.b. reported strong Q2 2025 earnings that exceeded analyst expectations, showcasing profitability and capital growth driven by a wider net interest margin, increased loans and deposits, and record fee income [1][5][12] Financial Performance - Non-GAAP earnings per share (EPS) for Q2 2025 were $0.36, surpassing the $0.34 estimate and reflecting a 5.9% year-over-year increase [2] - GAAP revenue reached $438 million, exceeding the forecast of $424.17 million and marking an 8.4% increase from $403.8 million in Q2 2024 [2] - Net income available to common shareholders (GAAP) was $130.7 million in Q2 2025 [5] - Average loan and lease balances rose to $34.5 billion, up 3.7%, while average deposits grew 7.3% to $37.1 billion [5] Profitability Metrics - The net interest margin (non-GAAP) expanded to 3.19%, up from 3.09% in the previous year, indicating improved lending profitability [6] - Non-interest income reached a record $91.0 million, with capital markets income increasing by 34.1% year-over-year [7] Strategic Developments - The bank is focusing on expanding its market reach through both traditional branches and digital channels, alongside investing in new technology platforms [4] - The acquisition of Raptor Partners introduced a new advisory product line, enhancing fee income diversity [7] - Continued investment in technology includes AI-driven digital onboarding and a Clicks-to-Bricks approach to streamline customer interactions [8] Credit Quality and Capital - Credit quality remained robust, although the provision for credit losses (GAAP) increased by 26.8% compared to Q2 2024 [11] - The Common Equity Tier 1 (CET1) regulatory capital ratio was 10.8%, well above regulatory minimums, with tangible book value per share climbing 12.8% to $11.14 [12] Future Guidance - Management maintained full-year guidance for 2025, projecting net interest income between $1.345 billion and $1.385 billion and non-interest income between $350 million and $370 million [13] - Loan growth pipelines are expected to pick up seasonally in the second half of 2025, with ongoing investments in technology and compliance being key areas to monitor [14]

Core Insights - F.N.B. Corporation (FNB) reported second-quarter 2025 earnings of 36 cents per share, exceeding the Zacks Consensus Estimate of 33 cents and up from adjusted earnings of 34 cents in the prior-year quarter [1][10] - The company's net income available to common stockholders was $130.7 million, reflecting a year-over-year increase of 5.7% [2] Financial Performance - Quarterly net revenues reached $438.2 million, an increase of 8.5% from the same quarter last year, surpassing the Zacks Consensus Estimate of $420.8 million [3] - Net interest income (NII) was $347.2 million, up 9.9% year over year, driven by growth in earning assets and lower interest-bearing deposit costs, with a net interest margin (NIM) of 3.19%, expanding 10 basis points [4] - Non-interest income totaled $91 million, a 3.5% increase, with growth in most components except for service charges and mortgage banking operations [5] - Non-interest expenses rose to $246.2 million, an 8.7% increase year over year, with adjusted expenses rising 9% when excluding one-time costs from the previous year [5] Loan and Deposit Growth - At the end of the second quarter, net loans and leases were $34.2 billion, up 1.3% sequentially, while total deposits increased to $37.7 billion, up 1.4% [6] Credit Quality - The provision for credit losses was $25.6 million, a significant increase of 26.7% from the prior-year quarter, with the ratio of non-performing loans and other real estate owned (OREO) to total loans and OREO increasing to 0.34% [7] Capital and Profitability Ratios - As of June 30, 2025, the Tier I leverage ratio improved to 8.78% from 8.63% a year ago, and the common equity Tier 1 (CET1) ratio increased to 10.8% from 10.2% [8] - Return on total average assets was 1.07%, slightly up from 1.06% in the prior-year period, while return on average equity decreased to 8.09% from 8.20% [9] Share Repurchase Activity - During the reported quarter, F.N.B. Corp repurchased 0.7 million shares at an average price of $13.85 [11] Future Outlook - The company's solid liquidity position is expected to support future growth, with anticipated benefits from increased fee income and diverse revenue streams, although rising expenses and significant commercial loan exposures may pose challenges [12]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $130.7 million, or $0.36 per share, with a linked quarter revenue growth of 6.5% [5][19] - Pre-provision net revenue rose 16% from the prior quarter to $192 million, with total revenues reaching a quarterly record of $438 million [5][19] - The CET1 ratio approached 11%, tangible common equity stood at 8.5%, and tangible book value per share increased by 13% year over year to $11.14 [5][25] Business Line Data and Key Metrics Changes - Net interest income was $347 million, while non-interest income reached a record $91 million, more than doubling over the last ten years [5][24] - Average loans and leases totaled $34.5 billion, reflecting a 5.3% annualized linked quarter increase, driven by consumer and commercial loan growth [20] - Non-interest expense totaled $246.2 million, with increases primarily due to strategic hiring and technology investments [24][25] Market Data and Key Metrics Changes - Average total deposits grew to over $37 billion, with a loan-to-deposit ratio of 91.9%, down slightly from the last quarter [6][21] - The company maintained a non-interest-bearing demand deposit level of 26% [6][21] - The cumulative total deposit beta since interest rate cuts began in September was 28% at quarter end [21] Company Strategy and Development Direction - The company is focused on organic growth and diversifying revenue streams, particularly in non-interest income [8][9] - Recent expansions into public finance and corporate investment banking services are part of the strategy to enhance high-value business lines [9] - The integration of the eStore common application into the branch origination platform aims to improve customer onboarding and experience [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a pickup in commercial loan growth in 2025, supported by a strong short-term commercial loan pipeline [20] - The company is closely monitoring the impact of tariffs and geopolitical events on its loan portfolio while managing strong liquidity and capital positions [12][17] - Management highlighted the importance of maintaining a disciplined approach to credit risk management amid a volatile economic environment [12][17] Other Important Information - The company repurchased 725,000 shares at a weighted average price of $13.85 during the quarter [6] - The efficiency ratio remained favorable at 54.8%, with expectations for positive operating leverage in the second half of 2025 [25] - The company has created a generative AI task force to explore new use cases and ensure responsible risk management around AI usage [12] Q&A Session Summary Question: Margin guidance and expectations - Management indicated that the margin is expected to be flattish to slightly up in the next two quarters, with a significant contribution from growth in earning assets and lower cost of funds [33][34] Question: Expense guidance and investments - The increase in guidance was primarily due to the down payment assistance program, with expectations for higher commissions tied to revenue performance [38][39] Question: Deposit cost perspective and competition - Management noted that total interest-bearing deposit costs are expected to remain stable until the Fed moves, with confidence in their ability to gather deposits due to a diverse geographic footprint [48][49] Question: Future loan growth composition - The company anticipates a shift towards commercial loan growth while the mortgage lending business is expected to taper off, with a focus on high-quality deposits [91][92] Question: Capital management strategy - The company views its capital position as a buffer for funding loan growth, with active share repurchase programs and potential dividend considerations [111][113]