Financial Data and Key Metrics Changes - Total assets reached $10.4 billion as of Q3 2025, with total investment securities increasing by $336.8 million to $2.3 billion [14][15] - Net interest income was $94.2 million, up $3.7 million, driven by higher average rates on loans and securities [17] - Non-performing assets increased to $140 million, or 1.3% of total assets, compared to $98 million, or 0.9% in the prior quarter [21] Business Line Data and Key Metrics Changes - Loans declined by 3.4% quarter over quarter, with a total gross loan amount of $6.9 billion, primarily due to increased prepayments and the sale of a large substandard loan [9][15] - Core deposits increased by $59.4 million, while total deposits remained stable at $8.3 billion [15] - Non-interest income was $17.3 million, while non-interest expense was $77.84 million, leading to an efficiency ratio of 69.84% [17][19] Market Data and Key Metrics Changes - International banking strengthened its presence across LATAM, with approximately 50% of new accounts opened in Q3 originating from countries like Argentina and Guatemala [8] - The company expects loan production and purchases of syndications to be partially offset by reductions in criticized assets and payoffs, with net loan growth projected between $125 million to $175 million for Q4 [25] Company Strategy and Development Direction - The primary focus for the quarter was on asset quality over loan growth, with plans to address the increase in non-performing asset levels [6][10] - The company launched an expense reduction initiative aiming for savings of $2 million to $3 million per quarter starting in 2026 [28] - Leadership changes in commercial banking were announced to strengthen market presence and business development efforts [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the franchise and the opportunities ahead, emphasizing a proactive approach to credit risk management [34] - The company anticipates a decrease in expenses in Q4, projecting non-interest expenses to be in the range of $74 million to $75 million [26] - Management highlighted the importance of timely identification and resolution of credit issues, indicating a more aggressive stance on downgrades [88] Other Important Information - The Board declared a quarterly cash dividend of $0.09 per share, reinforcing confidence in the company's long-term outlook [13] - The company intends to resume share buybacks post-earnings when the blackout period ends [13] Q&A Session Summary Question: What is the outlook on credit and when can the company expect to return to a sustainable ROA? - Management indicated that Q3 was the peak for portfolio evaluations and expects a better path for resolution in Q4, with a focus on early identification of credit issues [39][41] Question: What will drive the expected decrease in net interest margin for Q4? - The decrease is attributed to the impact of recent rate cuts and the timing of asset repricing, with expectations for a normalized net interest margin [45][46] Question: Is the company considering strategic alternatives given the current M&A market? - Management stated the focus remains on executing current strategies and achieving desired returns, with evaluations of opportunities as they arise [50] Question: What is the expected loan growth and syndication activity moving forward? - Management expects organic loan growth to be between $125 million to $175 million in Q4, with a focus on participating in syndications [25][56] Question: What is the outlook for realized loss content over the next couple of quarters? - Management anticipates charge-off activity to stabilize, with specific reserves already established for potential losses [63][64]

Financial Data and Key Metrics Changes - The company reported a net income of $7.5 million for Q3 2025, representing a 65% increase compared to Q3 2024 [3][8] - The net interest income rose to $28.2 million, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield [8] - The total risk-based capital ratio stood at 16.13%, and the tangible common equity (TCE) ratio was 9.72% [6] Business Line Data and Key Metrics Changes - Total loan originations reached $101 million, with $69 million in fundings, marking the largest amount since Q2 2022 [4] - The company experienced a healthy increase in commercial real estate (CRE) loan demand [4] - Non-interest income saw a decline of $370,000, primarily due to a BOLI death benefit paid in Q2 [10] Market Data and Key Metrics Changes - Total deposits increased due to higher balances from long-time clients and new relationships [5] - The cost of deposits increased by one basis point during Q3, but the spot cost of deposits declined by 4 basis points to finish at 1.25% [8][9] Company Strategy and Development Direction - The company aims to continue improving core financial performance through balance sheet growth, net interest margin expansion, and effective expense management [12] - There is a focus on adding banking talent and enhancing efficiency through technology to support future growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, credit quality continues to improve, and loan demand remains healthy [12] - The loan pipeline is strong, with expectations for solid loan production in Q4 [12] Other Important Information - The board declared a cash dividend of $0.25 per share, marking the 82nd consecutive quarterly dividend [11] - The company repurchased $1.1 million of shares at prices below tangible book value [6] Q&A Session Summary Question: Thoughts on HTM securities loss trade - Management is evaluating various factors but has not made a final decision [18] Question: Updated thoughts on expenses and seasonality - Q4 is expected to resemble Q3, with payroll-related adjustments being a wildcard [19] Question: Deposit cost and margin expectations - The company is positioned for margin expansion with a focus on asset sensitivity and managing deposit costs [22][25] Question: Credit quality improvements and upgrades - Upgrades were due to improved leasing activity and specific project recoveries [27][28] Question: Loan demand and competition - There is increased loan demand, particularly in the Sacramento area, with aggressive pricing competition for high-quality deals [35][36] Question: Pipeline growth and hiring appetite - The pipeline is diverse, with a focus on opportunistic hiring to support growth [60]

Financial Data and Key Metrics Changes - The company reported a net income of $7.5 million for Q3 2025, representing a 65% increase compared to Q3 2024 [3][8] - The net interest income rose to $28.2 million, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield [8] - The total risk-based capital ratio stood at 16.13%, and the tangible common equity (TCE) ratio was 9.72% [6] Business Line Data and Key Metrics Changes - Total loan originations reached $101 million, with $69 million in fundings, marking the largest amount since Q2 2022 [4] - The company experienced a healthy increase in commercial real estate (CRE) loan demand, indicating a diversified mix across various banking categories and industries [4] Market Data and Key Metrics Changes - Total deposits increased due to higher balances from long-time clients and new relationships, despite a competitive rate environment [5] - The cost of deposits increased by one basis point during Q3, but the spot cost of deposits improved, finishing at 1.25% [6][9] Company Strategy and Development Direction - The company aims to continue improving core financial performance through balance sheet growth, net interest margin expansion, and effective expense management [12] - There is a focus on adding banking talent and enhancing efficiency through technology to support future profitable growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, credit quality continues to improve, and loan demand remains healthy [12] - The loan pipeline is strong, with expectations for solid loan production in Q4 2025 [12] Other Important Information - The board declared a cash dividend of $0.25 per share, marking the 82nd consecutive quarterly dividend [11] - The company repurchased $1.1 million of shares at prices below tangible book value to enhance shareholder value [6] Q&A Session Summary Question: Thoughts on HTM securities loss trade - Management is evaluating various factors but has not made a final decision [18] Question: Updated thoughts on expenses and seasonality - Q4 expenses are expected to be similar to Q3, with payroll-related adjustments being a potential wildcard [19] Question: Deposit cost and margin expectations - The company anticipates further margin expansion due to a decline in deposit costs and expects benefits from future Fed Funds rate cuts [22][25] Question: Credit quality upgrades - Upgrades were attributed to improved leasing activity and specific project recoveries, with overall positive trends in credit quality [27][28] Question: Loan demand and competition - There is increased loan demand, particularly in the Sacramento area, with aggressive pricing competition for high-quality deals [35][36] Question: Pipeline growth and hiring appetite - The pipeline is diverse, with a focus on commercial real estate and affordable housing, and there is an appetite for opportunistic hires [58][60]

Financial Data and Key Metrics Changes - The company reported a net income of $7,500,000 for Q3 2025, representing a 65% increase compared to 2024 [4][8] - Net interest income rose to $28,200,000, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield [10] - The total risk-based capital ratio stood at 16.13%, with a tangible common equity (TCE) ratio of 9.72% [6] Business Line Data and Key Metrics Changes - Total loan originations reached $101,000,000, with $69,000,000 in fundings, marking the largest amount since 2022 [5] - The company experienced a healthy increase in commercial real estate (CRE) loan demand, indicating a diversified mix across various banking categories [5][11] Market Data and Key Metrics Changes - Total deposits increased due to higher balances from long-term clients and new relationships, despite a competitive rate environment [6] - The cost of deposits increased by one basis point during the quarter, but the spot cost of deposits declined to 1.25% [10] Company Strategy and Development Direction - The company aims to continue improving core financial performance through balance sheet growth, net interest margin expansion, and disciplined expense management [13][14] - There is a focus on adding banking talent and enhancing efficiency through technology to support future profitable growth [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, credit quality continues to improve, and loan demand remains healthy [13] - The loan pipeline is strong, with expectations for solid loan production in Q4 2025 [13] Other Important Information - The company repurchased $1,100,000 of shares at prices below tangible book value to enhance shareholder value [6] - A cash dividend of $0.25 per share was declared, marking the 82nd consecutive quarterly dividend [12] Q&A Session Summary Question: Thoughts on HTM securities loss trade - Management is evaluating various factors but has not made a final decision [19] Question: Updated thoughts on expense run rate and seasonality - Q4 is expected to resemble Q3, with potential adjustments to payroll-related items [20][21] Question: Progress on deposit costs and margin expectations - The company is positioned for near-term benefits from rate declines, with expectations for margin expansion [31] Question: Credit upgrades and market conditions - Upgrades were due to improved leasing activity and specific project recoveries, with overall positive trends in credit quality [34][35] Question: Loan competition and pricing - There is aggressive pricing competition for high-quality deals, with a return of nonrecourse lending [46] Question: Pipeline growth and hiring plans - The company is actively hiring and expects increased activity in the Sacramento region, with a focus on new customer relationships [74][75] Question: Deposit growth and seasonality - Predicting deposit balance growth is challenging, but management does not foresee any abnormal outflows [88][90]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3][4] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - Tangible book value per share increased by 12% [4] - Net interest margin expanded by two basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits [4] - Client deposits increased by 1% linked quarter and by 5% year over year, with non-interest deposits growing by 12% year over year [5] Market Data and Key Metrics Changes - Total net credit costs were $8.4 million this quarter, down $5.9 million compared to the prior quarter [7] - Non-performing assets (NPAs) declined by over 30% to 35 basis points, with delinquencies down by 34% [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while adjusting the pace based on macroeconomic conditions and business performance [8] - The management is focused on organic growth and is actively recruiting talent in commercial and wealth sectors [52][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage margins through deposit repricing and hedging strategies despite potential rate cuts [9][56] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance [9] Other Important Information - The company returned $56.3 million of capital, including buybacks of $46.8 million, representing 1.5% of outstanding shares [8] - The commercial pipeline remains strong at approximately $300 million [7] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years [15] Question: How are reserve levels being managed amid macro volatility? - Management stated that they are conservatively maintaining reserves due to potential macroeconomic volatility, despite good asset quality trends [18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and The Bryn Mawr Trust Company of Delaware up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to overall profitability benefits [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - Tangible book value per share increased by 12%, and net interest margin expanded by 2 basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year, with total client deposits increasing by 1% linked quarter and 5% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits in wealth and trust [4] - Loans decreased by 1% linked quarter, primarily due to the sale of the Upstart loan portfolio, but residential mortgage and WSFS-originated consumer loan portfolios saw increases of 5% and 3% respectively [5][6] Market Data and Key Metrics Changes - Non-interest deposits grew by 12% year over year, representing over 30% of total client deposits [5] - The commercial pipeline increased to approximately $300 million, indicating strong demand in both C&I and commercial real estate [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while being flexible based on macroeconomic conditions and business performance [8] - Management emphasized a focus on organic growth and potential acquisitions, particularly in the wealth and trust sectors [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality improvements, with total net credit costs decreasing to $8.4 million, down $5.9 million from the prior quarter [7] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance despite uncertainties in the macro environment [9] Other Important Information - The company returned $56.3 million of capital during the quarter, including $46.8 million in buybacks, representing 1.5% of outstanding shares [8] - The CET1 ratio stands at 14.39%, well above the medium-term target of 12% [8] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years, depending on balance sheet dynamics and growth rates [14][15] Question: How are reserve levels being managed amid macro volatility? - Management noted that while there is capacity to release some reserves, they are maintaining a conservative approach due to potential economic volatility [18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and Bryn Mawr Trust up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to a net profitability benefit [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

Financial Performance - The company reported adjusted net income of $72.6 million and adjusted earnings per share of $0.76 for Q3 2025, resulting in an adjusted return on assets of 1.55% and a return on tangible common equity of 19.3% [3][6] - Tangible book value per share increased to $16.19, a rise of 5% from the previous quarter and 14% year-over-year, while tangible common equity ratio rose by 47 basis points to 8.87% [1][12] - The net interest margin remained strong at 4.02%, despite a slight decline from the previous quarter [4][8] Revenue and Income Streams - Total net revenue reached record levels, with adjusted non-interest income accounting for 31% of total net revenue for the quarter [2][3] - Fee income for the quarter was a record $73.6 million, driven by leasing and foreign exchange businesses, as well as higher syndication fees [10][12] Loan and Deposit Activity - Loan balances decreased by $72 million during the quarter, primarily due to lower production in specialty lending areas and increased construction originations [9][32] - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [4][9] Expense Management - Total non-interest expenses remained flat compared to the previous quarter, excluding performance-related incentives [2][5] - The company has successfully reduced its full-time equivalents by approximately 200 or 9% over the past two years as part of workforce efficiency efforts [2][49] Outlook and Future Expectations - The company anticipates mid-single-digit loan growth for Q4 2025, with expectations for strong deposit growth driven by core deposit balances and seasonal public fund inflows [14][15] - The net interest margin is expected to remain in the range of 3.92% to 3.97% for the next quarter, assuming a 25 basis point rate cut in both October and December [15][25] - The company is preparing for the integration of pending acquisitions, which are expected to enhance operational efficiencies and revenue growth [16][51]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][6] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [4][7] - Tangible book value per share increased to $16.19, a 5% increase from the previous quarter and a 14% increase year-over-year [6][12] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty lending areas and an increase in construction originations [5][10] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [10][11] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but overall expenses were well managed [5][11] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [7][10] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [7] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, driven by strong commercial lending and seasonal public fund inflows [13][34] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance operational efficiency and expand market reach [15][64] - The company aims to maintain an industry-leading net interest margin and is preparing for potential rate cuts while managing deposit costs [13][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for continued growth in fee income and stable credit costs [14][43] - The company anticipates that credit costs will remain steady, with net charge-offs expected to be in the mid-20 basis points range [43] - Management highlighted the competitive deposit environment but indicated that proactive measures have been taken to manage deposit costs effectively [52] Other Important Information - The company recorded $9.1 million in provision expense during the quarter, driven by net charge-offs, with an allowance for credit losses (ACL) coverage of 1.38% of total loans [8][12] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through dividends during the period [12] Q&A Session Summary Question: NDFI loan exposure details - The company has approximately $434 million in the NDFI portfolio, which is conservatively managed and primarily consists of traditional REITs [17][20] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to create about 5 basis points of margin pressure initially, with recovery as deposit costs adjust [21][22] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to drive growth, with specific contributions from Summit funding and commercial real estate [32][34] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter expenses is primarily driven by higher forecasts from Bannockburn and other business segments [40][41] Question: Credit cost outlook - Credit costs are expected to remain steady, with a run rate of mid-20 basis points anticipated [43] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering buybacks, especially if trading below tangible book value [45][46] Question: Deposit competition and funding growth - The company expects to manage deposit costs effectively despite competitive pressures, aided by liquidity from acquisitions [52][54]

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [3][5] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [3][6] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity increased by 47 basis points to 8.87% [5][11] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty businesses and a higher percentage of construction originations [4][9] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [6][10] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but overall expenses were well managed [4][10] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [6][9] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [6] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, with strong commercial lending as the primary driver [12][32] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance operational efficiency and expand market reach [14][63] - The company aims to maintain an industry-leading net interest margin and expects it to range between 3.92% and 3.97% in the next quarter [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for increased origination volumes and strong deposit growth [12][14] - Credit costs are expected to remain stable, with annualized net charge-offs projected at 18 basis points [7][42] - The company anticipates a continued focus on expense management while evaluating capital actions to support shareholder returns [11][44] Other Important Information - The company has received regulatory approval for the Westfield transaction, expected to close in early November 2025 [14] - The company is committed to providing attractive returns to shareholders, with 33% of earnings returned through common dividends [11] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, conservatively managed with no adversely rated credit, primarily consisting of traditional REITs [16][19] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to create about five basis points of near-term pressure on the margin, with a potential recovery as deposit costs adjust [20][22] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is expected to drive growth, with specific verticals like Summit funding projected to perform well in Q4 [31][32] Question: Fourth quarter fee and expense guidance - The increase in fourth quarter expenses is primarily driven by higher forecasts from Bannockburn and other commission-based businesses [40][41] Question: Credit cost outlook - Credit costs are expected to remain steady, with a run rate of 25 to 30 basis points anticipated [42] Question: Capital management and buyback considerations - The company plans to assess capital ratios post-acquisitions before considering buybacks, particularly if trading below tangible book value [44]

Financial Performance - The company reported a net income of $100 million for Q3 2025, a 25% increase from $80 million in Q2 2025, with normalized earnings per share growing 13% year-over-year [4][11] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [11] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024, with a net interest margin of 4.57%, up 32 basis points over the last four quarters [14][15] Loan and Deposit Growth - Total loans grew by $181 million, or 5.6% annualized, surpassing $13 billion for the first time since 2010 [5] - Core franchise deposits increased by $140 million, with favorable trends in market flows despite higher competition [7] - The company experienced a slowdown in consumer credit demand, particularly in the auto industry, which saw a 7% decline in total retail sales year-to-date [6][9] Asset Quality and Credit Trends - Non-performing assets decreased by 7% with a reduction in charge-offs and stable credit trends [7][19] - The allowance for credit losses decreased to 1.89% of loans, reflecting improved loss severities in the residential mortgage portfolio [20][21] - Net charge-offs for the quarter were $19.9 million, representing 0.62% of average loans, slightly up from the previous quarter [20] Strategic Outlook and Market Conditions - The company plans to strategically deploy excess capital to support organic growth, particularly in commercial and residential mortgage lending [9][10] - The operating environment remains stable, with potential impacts from evolving trade dynamics and inflationary pressures being monitored [8] - The company expects loan growth for the year to be in the range of 3% to 4%, down from previous guidance of 5% [10][64] Management Commentary - Management expressed confidence in the resilience of the labor market in Puerto Rico and the positive impact of federal disaster funds on local economies [9] - The company is optimistic about the ongoing expansion of the manufacturing sector and its potential benefits for the franchise [9] - Management noted that competitive pressures in the deposit market are primarily from smaller players, with expectations for some reduction in deposit costs due to rate cuts [38][41] Other Important Information - The board authorized an additional $200 million share buyback program, continuing the strategy of returning 100% of annual earnings to shareholders [8][22] - The effective tax rate for 2025 is estimated to be around 22.2%, reflecting some expected improvements [84] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management confirmed that while there will be no further reversals of deferred tax assets at the same level, there will be ongoing benefits from normal operating losses [26] Question: What is the health of the consumer in Puerto Rico? - Management indicated that auto sales are normalizing and credit demand has been lower, but overall consumer credit trends remain stable [30] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs, but noted that the timing of these reductions may lag behind floating asset products [41] Question: What is the outlook for loan growth into Q4? - The company maintains a loan growth guidance of 3% to 4% for the year, with a strong pipeline in commercial lending [64] Question: Can you elaborate on competitive pressures in the deposit market? - Management noted that competitive pressures are primarily from smaller players and that they are managing this by offering additional services beyond just deposit products [39]