Financial Data and Key Metrics Changes - The company reported net income of $21,500,000 for Q1 2025, resulting in diluted earnings per share of $0.71, with an annualized return on average assets of 1.03% and an annualized return on average tangible common equity of 14.14% [5][14] - There was a linked quarter decrease of $94,400,000 or 2% in loans, primarily due to payoff activity in the commercial real estate (CRE) portfolio [5][14] - The net interest margin increased by three basis points to 2.86%, and net interest income rose by $145,000 [6][19] Business Line Data and Key Metrics Changes - First quarter commercial loan production totaled approximately $142,000,000, representing a 46% increase over Q1 2024, with only $52,000,000 funded during the quarter [8] - The loan pipeline exceeds $1,900,000,000, the largest in the last 24 to 36 months, with a balanced mix of approximately 45% term loans and 55% construction loans [10] - Nonperforming assets remained low at 0.39% of total assets, despite an increase in classified loans to $67,000,000 from $48,000,000 [12][15] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate, contributing to a healthy market environment [6] - The average rate of loans funded during the first quarter was approximately 7.3%, with loans exposed to the oil and gas industry totaling $111,000,000 or 2.4% of total loans [15] Company Strategy and Development Direction - The company anticipates mid-single digit loan growth for 2025, despite the first quarter's loan reduction [5][14] - There is a focus on expanding the commercial and industrial (C and I) initiative, which now represents approximately 25% of the total pipeline [11] - The company is optimistic about loan growth and is making progress in the C and I space, particularly in Houston [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the operating environment, despite uncertainties related to market conditions and tariff negotiations [6] - The company expects to see positive impacts on margins due to anticipated repricing of the CD portfolio and new swaps implemented [31][32] - Management is confident in maintaining mid-single digit loan growth guidance for the year, supported by a dynamic loan pipeline [62] Other Important Information - The securities portfolio decreased by $76,900,000 or 2.7% from the previous quarter, primarily due to maturities and principal payments [16] - The company did not repurchase any shares during the first quarter but has repurchased 196,419 shares at an average price of $26.82 per share after the quarter [18] Q&A Session Summary Question: Loan pipeline and growth guidance - The loan pipeline of $1,900,000,000 is the largest in two years, with expectations of 25% to 30% pull-through historically [26] - The guidance for mid-single digit loan growth remains intact despite some unexpected payoffs [62] Question: Margin outlook - The company anticipates a positive impact on margins as a portion of the CD portfolio matures and reprices lower [31] Question: Expense management - Expenses came in lower than budgeted due to decreases in salaries and employee benefits, with no targeted reductions implemented [38] Question: Credit quality and restructured loans - A large construction loan in Austin, Texas was extended and moved to nonperforming status, but the borrower has not missed payments and leasing activity is positive [40]

Financial Performance - The company reported revenue of $156 million and net income of $43 million, marking a 48% increase in net income compared to the same quarter last year [5][11] - Earnings per diluted share increased to $0.34 from $0.23 in the first quarter of 2024 [5] - The net interest margin expanded by 45 basis points to 3.87%, attributed to lower cost of funds and increased asset yields [10][11] - Non-interest income decreased by $11.7 million due to prior quarter transactions but showed a 19% increase year-over-year [11][15] Business Line Performance - Average commercial loans increased by $121 million or 6.2% compared to the previous quarter, reflecting a strategic shift towards commercial lending [12] - The consumer loan segment saw modest growth, capitalizing on stronger demand for indirect loans [12] - The commercial real estate (CRE) portfolio declined by 3.5%, while residential mortgage and home equity portfolios decreased by 1.9% and 1.3%, respectively [13] Market Data - Average total deposits increased by $60 million quarter-over-quarter, with consumer non-brokered deposits rising by $68 million [13] - The cost of deposits decreased by nine basis points to 1.59%, maintaining a competitive position relative to peers [14] Company Strategy and Industry Competition - The company is focused on sustainable, responsible, and profitable growth, with a renewed emphasis on enhancing its retail banking franchise [6][7] - A merger with Pennswoods Bancorp is underway, expected to close by late July, which will position the company among the top 100 banks in the U.S. by asset size [8][9] - The company is actively pursuing de novo branch opportunities, particularly in Columbus and Indianapolis [7] Management Commentary on Operating Environment and Future Outlook - The current operating environment is characterized by significant market volatility and economic uncertainty, but the company remains focused on managing controllable factors [9][10] - The company expects to maintain its margin performance and is cautious about loan growth due to unpredictable economic conditions [20][21] Other Important Information - The adjusted efficiency ratio improved to 57.7%, reflecting disciplined expense management [16] - The company has a stable credit risk profile, with non-performing loans and assets at five-quarter lows [18] Q&A Session Summary Question: Margin guidance and economic outlook - Management indicated a core margin of 3.48% and expects to be at the high end of the range, with potential impacts from future Fed rate cuts [27][28] Question: Deposit growth drivers - The company is transitioning from CDs to more liquid products, with new money market rates around 3.75% [30][32] Question: Credit trends and industry exposure - Management noted potential impacts from tariffs on industries like manufacturing and transportation, with aggregate exposure at about 8% of the loan portfolio [42][43] Question: Commercial loan build-out - The company continues to take share in newer verticals and has seen stronger pipelines compared to the previous year [44][51] Question: Impact of Pennswoods acquisition on financial metrics - Management refrained from providing specific guidance on tangible book value dilution or purchase accounting due to market volatility [40][72] Question: Future M&A activity - The company remains open to future acquisitions but is currently focused on internal efficiencies and execution due to market conditions [76][78]

Financial Data and Key Metrics Changes - The company reported net income of $87.9 million or $1.27 per diluted share, a 17% increase compared to the first quarter of the previous year [11] - The return on assets (ROA) remained strong at 1.36%, with a PPNR ROA of 2.08% and an adjusted return on tangible common equity of 13.16% [12] - The efficiency ratio improved to 52.83% from 55.64% in the same quarter last year [12] - Tangible book value per share increased by $1.19 to $39.78, and the tangible common equity ratio rose to $10.78 [12] Business Line Data and Key Metrics Changes - Net interest income increased by $20 million compared to the first quarter of last year, while non-interest expense remained relatively flat [11] - Loan balances were stable during the quarter, with total loan production at $1.5 billion, slightly down from the previous quarter but higher than the year-ago level [18] - Non-interest bearing deposits grew at a 15% annualized rate, representing 30.8% of total deposits [18] Market Data and Key Metrics Changes - The company experienced a 4% annualized growth in deposits, with an increase of $190 million during the quarter [17] - Interest-bearing deposits fell slightly, but non-interest bearing deposits grew significantly [18] - The company anticipates mid-single-digit loan and deposit growth for 2025 [19] Company Strategy and Development Direction - The company aims to maintain top-tier profitability, enhance revenue generation, and sustain a strong capital position to prepare for changing macroeconomic conditions [5][8] - The focus is on optimizing margins rather than aggressive growth, with a disciplined approach to balance sheet management [6][9] - The company is well-positioned to leverage growth opportunities within its Southeastern footprint [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, expecting more growth opportunities despite macroeconomic uncertainty [9] - The company is prepared to capitalize on opportunities with a well-capitalized balance sheet and a proven culture of expense control [10] - Management noted that the current economic environment creates opportunities, but they will remain measured in their approach [34] Other Important Information - The company repurchased approximately $15 million of common stock during the first quarter, with $85 million remaining available for buybacks [13] - The reserve for credit losses increased to 1.67% of loans, influenced by economic forecasts and not due to asset quality deterioration [15][40] Q&A Session Summary Question: What is driving the resilience in loan yields? - Loan production for the quarter averaged around 6.86%, with the core bank performing well at about 8% [24] Question: Do you expect loan yields to improve without rate cuts? - Loan yields are expected to remain consistent, with margin compression likely coming from the deposit side as loan growth picks up [27] Question: How does the company balance economic uncertainty with growth desires? - The company will be measured in its approach, leveraging its strong capital and liquidity positions while being prepared to capitalize on opportunities [34] Question: What influenced the reserve build despite strong underlying metrics? - The reserve build was model-driven, influenced by economic forecasts, and not related to asset quality [40] Question: What is the expectation for loan growth and Balboa's contribution? - Loan growth is expected to be in the mid-single digits, with Balboa tracking in line with the company [45] Question: How does the company view capital deployment moving forward? - The company prefers organic growth and will evaluate sub-debt options as they come due, while also considering buybacks [50]

Core Viewpoint - Freedom Financial Holdings reported strong financial results for the first quarter of 2025, with a significant increase in net income and improvements in key financial metrics despite a challenging economic environment [1][2]. Financial Performance - Net income for Q1 2025 was $2,019,348, or $0.28 per diluted share, representing a 73.4% increase compared to the same quarter in 2024 [1][11]. - Net interest income was $7.72 million, up 20.17% from the previous quarter but down 17.91% from Q1 2024 [3][11]. - Total revenue increased by 13.04% compared to the linked quarter and 12.65% year-over-year [6][11]. Cost and Efficiency - Non-interest expenses decreased by $447,995, or 6.93%, compared to the linked quarter, and by 3.30% compared to the same period in 2024 [7][11]. - The Efficiency Ratio improved to 69.22% for Q1 2025, down from 84.07% in the previous quarter and 80.64% in Q1 2024 [8][11]. Asset Quality - Non-accrual loans decreased by 22% to $10.7 million, representing 1.45% of loans held-for-investment [2][9]. - Total non-performing assets were 1.01% of total assets as of March 31, 2025, down from 1.25% at the end of the previous quarter [9][10]. Capital and Liquidity - Total assets were $1.08 billion, a decrease of $8.3 million from December 31, 2024 [12][11]. - Stockholders' equity was $81.11 million, slightly down from $81.44 million at the end of 2024 [13][11]. - The Company maintained strong capital ratios, with a Total Capital Ratio of 14.95% as of March 31, 2025 [15][11]. Shareholder Actions - The Company repurchased 177,692 shares under its share repurchase program, with a total of 214,400 shares repurchased out of the 250,000 authorized [14][11].

Core Viewpoint - BankUnited, Inc. (BKU) reported first-quarter 2025 earnings of 78 cents per share, exceeding the Zacks Consensus Estimate of 74 cents and up from 64 cents in the prior-year quarter [1] Financial Performance - Net income for the quarter was $58.5 million, reflecting a 21.9% increase from the previous year, surpassing the estimate of $56.6 million [2] - Quarterly net revenues reached $255.4 million, a 5.7% year-over-year increase, but fell short of the Zacks Consensus Estimate of $261.7 million [3] - Net interest income (NII) was $233.1 million, growing by 8.5%, while the net interest margin (NIM) expanded by 24 basis points to 2.81% [3] Income and Expenses - Non-interest income decreased by 17.1% to $22.3 million, primarily due to a 62.3% drop in lease financing income, which was below the projected $24.8 million [4] - Non-interest expenses rose slightly to $160.2 million, driven by increased employee compensation, technology costs, and other expenses, partially offset by lower depreciation costs [4] Loan and Deposit Trends - Total loans amounted to $24 billion, a slight decrease from the prior quarter, while total deposits were $28.1 billion, showing a marginal increase [5] Credit Quality - The provision for credit losses was $15.1 million, down 1.1% from the previous year, which was better than the expected $16.1 million [6] - The ratio of net charge-offs to average loans increased to 0.33%, up 31 basis points year-over-year, and the non-performing assets ratio rose to 0.76%, an increase of 42 basis points [6] Capital and Profitability Ratios - The Common Equity Tier 1 risk-based capital ratio improved to 12.2% from 11.6%, and the total risk-based capital ratio increased to 14.3% from 13.7% year-over-year [7] - Return on average assets was 0.68%, up from 0.54% in the prior year, and return on average stockholders' equity rose to 8.2% from 7.3% [7] Market Outlook - BankUnited's strategies to enhance fee income, attract low-cost deposits, and benefit from higher interest rates are expected to support revenue growth, despite rising expenses and exposure to commercial real estate and residential loans [8]

Financial Data and Key Metrics Changes - The company reported a net income of $4.9 million for Q1 2025, which is a 67% increase year-over-year, translating to $0.30 per share [10] - The net interest margin improved by 36 basis points year-over-year, driven by a 7 basis point decrease in the cost of deposits [4][10] - The total risk-based capital ratio stood at 16.69%, with a tangible common equity (TCE) ratio of 9.82% [9] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $63 million, with commercial loan originations at $49 million, marking a fivefold increase from the same quarter last year [6] - Non-interest income increased by over $100,000 from the prior quarter, primarily due to higher earnings on Bank-Owned Life Insurance (BOLI) [13] - Non-interest expense rose by $2.9 million from the prior quarter, mainly due to seasonal increases in salaries and employee benefits [11] Market Data and Key Metrics Changes - Total deposits reached $3.3 billion, an increase of $82 million from the prior quarter, with non-interest bearing deposits comprising 43% of total deposits [13] - The average cost of deposits declined by 7 basis points in Q1, with continued reductions observed into April [14] Company Strategy and Development Direction - The company aims to continue generating solid financial performance in 2025, focusing on improving net interest margin and revenue [16] - There is an emphasis on adding banking talent to support profitable growth and investing in innovation and technology to enhance service quality [16] - The company is evaluating share repurchase options as part of its capital management strategy [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, they expect a higher level of loan growth driven by new hires rather than a significant increase in market-wide loan demand [16] - The company has not observed any meaningful increase in risk within its loan portfolio despite broader macroeconomic concerns [5] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 80th consecutive dividend payment [15] - Charitable contributions in Q1 were $403,000, significantly higher than previous quarters, as the timing of contributions was pulled forward [12] Q&A Session Summary Question: Expectations around the buyback moving forward - Management is contemplating capital actions and is waiting for discussions with regulators regarding their capital plan [20][22] Question: Details on classified loans - The majority of classified loans were related to two borrowers, a contractor and a multifamily real estate entity, with unique performance issues [23][24] Question: Expense expectations for upcoming quarters - The expense base is expected to normalize, with a historical compound annual growth rate of about 4% [25][26] Question: Deposit growth sustainability - The deposit growth was attributed to new accounts and inflows from existing clients, though some seasonal outflows are expected [31] Question: Future loan production trends - Loan production remains strong, driven by new hires, with a healthy pipeline expected to sustain growth [36][39] Question: Concerns regarding the wine industry exposure - The company has minimal exposure to the wine industry, with loans secured and closely monitored [87][88] Question: Client movement from larger banks to smaller institutions - There is a trend of clients moving from larger banks to community-oriented institutions, benefiting the company [90][92] Question: Investment portfolio and cash management - The company is balancing its investment portfolio and cash levels, with no immediate need to stockpile cash [94][96]

Financial Data and Key Metrics Changes - The company reported a net income of $4.9 million for Q1 2025, which is a 67% increase year-over-year, translating to $0.30 per share [11] - The net interest margin improved by 36 basis points year-over-year, driven by a decrease in the cost of deposits [5][11] - Total risk-based capital ratio stood at 16.69% and tangible common equity (TCE) ratio at 9.82% [10] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $63 million, with commercial loan originations at $49 million, marking a fivefold increase from the same quarter last year [8] - Non-interest income increased by over $100,000 from the prior quarter, primarily due to higher earnings on Bank-Owned Life Insurance (BOLI) [14] Market Data and Key Metrics Changes - Total deposits reached $3.3 billion, an increase of $82 million from the previous quarter, with non-interest bearing deposits comprising 43% of total deposits [14][9] - The average cost of deposits declined by seven basis points in Q1 2025, reflecting effective management of deposit rates [15] Company Strategy and Development Direction - The company aims to continue generating solid financial performance in 2025, focusing on net interest margin and revenue growth [18] - Plans to add banking talent and invest in innovation and technology to enhance service quality and operational efficiency [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the loan portfolio despite macroeconomic concerns, noting no significant increase in risk within their portfolio [6][18] - The company anticipates a healthy loan pipeline and expects to see improving loan growth driven by new hires rather than a general increase in market demand [18] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 80th consecutive dividend payment [17] - Charitable contributions in Q1 2025 were $403,000, significantly higher than previous quarters due to a shift in timing for contributions [13] Q&A Session Summary Question: Expectations around the buyback moving forward - Management is contemplating capital actions post-regulatory exam and has authorization for buybacks, but no immediate plans were disclosed [22][24] Question: Details on classified loans - The majority of classified loans were related to two borrowers with unique operational issues, and management does not expect further deterioration [25][26] Question: Expense expectations for upcoming quarters - The expense base is expected to normalize, with a historical compound annual growth rate of about 4% [27][29] Question: Deposit growth sustainability - Management noted that while there were seasonal inflows, the growth is attributed to new client relationships and ongoing efforts in commercial lending [34] Question: Future loan production trends - The company is not seeing a delay in deals despite macro uncertainty, with a healthy loan pipeline driven by new hires [40][42] Question: Credit management approach amidst uncertainty - Management confirmed that their conservative credit management approach remains unchanged despite economic uncertainties [64] Question: Plans for deploying excess liquidity - The company has accelerated securities purchases and is monitoring loan growth and tax-related outflows before further actions [66] Question: Concerns regarding the wine industry exposure - The company has minimal exposure to the wine industry and is closely monitoring clients in that sector, with no major issues reported [86] Question: Trends in client movement from larger banks - Management noted a trend of clients moving from larger institutions to community-oriented banks, although it is difficult to predict cyclicality [90]

Financial Data and Key Metrics Changes - Adjusted earnings per share was $0.63, with a return on assets of 1.33% and a return on tangible common equity of 17.8% [7] - Net interest margin was strong at 3.88%, a decline of six basis points from the previous quarter [17][24] - Non-interest expenses decreased by 3.3% due to lower incentive compensation and fraud losses [10][31] - Tangible book value per share increased to $14.80, representing a 5% increase from the linked quarter and 18% year-over-year [13][35] Business Line Data and Key Metrics Changes - Loan balances were stable, with first-quarter loan production being seasonally lower [8] - Fee income was $61 million, a decline from the linked quarter due to seasonal fluctuations and less foreign exchange income [9][19] - Average deposit balances decreased by $99 million, primarily due to a seasonal decline in public funds [18][28] Market Data and Key Metrics Changes - The company maintained 21% of total balances in non-interest-bearing accounts and focused on growing lower-cost deposit balances [18] - Non-performing assets declined by 9.5%, indicating improvements in asset quality metrics [11] Company Strategy and Development Direction - The company is focused on growing tangible book value, which has increased by 35% over the last three years [13] - The company received the Gallup Exceptional Workplace Award for Associate Engagement, reflecting its commitment to employee engagement [14] - The company is in discussions regarding potential M&A opportunities, although current uncertainty may prolong these discussions [52] Management's Comments on Operating Environment and Future Outlook - Management expects modest loan growth in the second quarter, with healthy pipelines in consumer, C&I, and ICRE lines of business [8][37] - The company anticipates net interest margin to expand to a range between 3.95% and 4.05% in the next quarter, assuming a 25 basis point rate cut [39] - Management remains optimistic about the year overall despite economic uncertainties [41] Other Important Information - The company’s capital ratios are strong, with all regulatory ratios well above minimums [12][35] - The company is closely monitoring the impact of tariffs on clients and their operations [12][86] Q&A Session Summary Question: Steps to reduce asset sensitivity on the balance sheet - Management indicated that the balance sheet is asset sensitive and discussed the impact of rate cuts on deposit costs and net interest margin [46][48] Question: Changes in view toward capital deployment amid tariff uncertainty - Management noted increased M&A discussions but acknowledged that current uncertainty may slow down these discussions [51][52] Question: Review process for C&I credits and specific trends - Management highlighted a significant charge-off related to a specific industry and noted healthy workouts of classified loans [60][61] Question: Outlook for loan growth in the back half of the year - Management adjusted loan growth expectations for the year to 4% to 5% due to elevated payoffs [73][78] Question: Credit charge-offs and normalized expectations - Management expects charge-offs to stabilize in the range of 25 to 30 basis points, with improving trends in asset quality [81][82] Question: Exposure to tariffs and portfolio monitoring - Management is actively engaging with clients to understand the impact of tariffs and is monitoring specific sectors for potential risks [86][88]

Financial Data and Key Metrics Changes - Pre-tax pre-provision adjusted earnings increased by 23% year-over-year, with earnings per share rising by 27% to $1.32 [6][12] - Tangible book value per share grew by 14% [6] - Net interest margin for the first quarter was 3.69%, reflecting strong balance sheet management [17][18] - Total deposits grew by $488 million, or 18%, compared to the same quarter last year [9] - Loan balances increased by approximately $275 million, or nearly 10% year-over-year [8] Business Line Data and Key Metrics Changes - Core deposits grew by $66 million, or over 11% [9] - Commercial and Industrial (C&I) loans led growth with balances expanding by $77 million, or 27% annualized [10] - Private wealth management assets and fees also saw growth [6] Market Data and Key Metrics Changes - Non-performing assets (NPAs) declined by $4.3 million from the linked quarter [13] - The weighted average risk rating of the portfolio remained stable, indicating no significant deterioration [14] Company Strategy and Development Direction - The company aims for 10% annual growth, focusing on relationship-based deposit growth and loan expansion [5][24] - The strategic plan emphasizes controlling the controllable and delivering shareholder returns that exceed peers [24][25] - The company is optimistic about 2025 and believes its strategic initiatives will support future growth [25] Management's Comments on Operating Environment and Future Outlook - Management noted rising uncertainty related to U.S. trade policy and potential economic recession but remains confident in outperforming peers [15][16] - The company is positioned to capture growth opportunities in countercyclical lending areas, such as asset-based lending [10][11] Other Important Information - Total expenses increased by $1.6 million compared to the fourth quarter, primarily due to workforce-related costs [21] - The effective tax rate for the first quarter returned to a normalized level of 17% [22] Q&A Session Summary Question: Inquiry about new loan yields and spread tightening - Management indicated that new loan yields were consistent with the prior quarter, with slight narrowing of spreads for competitive credits [29][30] Question: Impact of tariffs on clients - Management reported no significant impact from tariffs on clients, although there is ongoing uncertainty [38][40] Question: Equipment finance losses and charge-offs - Management confirmed that the increase in net charge-offs was a one-quarter anomaly, with expectations of continued credit costs in the equipment finance portfolio [42][43] Question: Provision expectations related to loan growth - Management acknowledged a correlation between increased provisions and charge-offs, with expectations for provisions to remain in line with recent quarters [46][48] Question: Cash and securities balances strategy - Management stated that the high cash and securities balances were intentional but temporary, aimed at maintaining liquidity [49][50] Question: SBA lending changes and revenue impact - Management does not foresee significant changes in volume due to recent SBA underwriting changes, attributing volume growth to the sales team [64][65] Question: Credit quality and migration trends - Management reported benign trends in credit quality with little change quarter-over-quarter [69][70] Question: Loan deposit ratio target - Management indicated a focus on maintaining a loan-to-deposit ratio below 100, with a target of 75% core funding to total bank funding [75][77]

Financial Data and Key Metrics Changes - WSFS Financial Corporation reported core earnings per share of $1.13, core return on assets (ROA) of 1.29%, core pre-provision net revenue (PPNR) of $104.6 million, and core return on tangible common equity of 16.97%, all showing improvements from the prior quarter [5][6][14] - The core net interest margin expanded by 8 basis points to 3.88%, with total funding costs reduced by 15 basis points to 1.77% [6][7] - Year-over-year, net interest margin increased by 4 basis points despite absorbing 100 basis points of interest rate cuts [7] Business Line Data and Key Metrics Changes - Core fee revenue grew by 6% year-over-year, driven by a 19% increase in Wealth and Trust services [7] - Institutional Services and Bryn Mawr Trust Company of Delaware showed strong year-over-year growth, increasing deal flow and market share [8] - Client deposits declined by 1% linked quarter but increased by 4% year-over-year, with non-interest bearing deposits up 6% year-over-year [11][12] Market Data and Key Metrics Changes - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [12] - Total net credit costs increased to $17.6 million, with net charge-offs at $24.6 million, primarily due to a charge-off of a non-performing loan [12][13] Company Strategy and Development Direction - The company announced a 13% increase in the quarterly dividend to $0.17 per share and an additional share repurchase authorization of 10% of outstanding shares [15] - A medium-term target CET1 ratio of 12% was established, with a gradual glide path over two to three years [15][66] - The company aims to manage net interest margin through various tools, including optimizing wholesale funding and hedging programs [58][60] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainties, leading to postponed investments [40][42] - The overall credit quality remains stable, with no significant red flags identified in delinquency metrics [45] - Management expressed confidence in the ability to navigate the current environment and indicated that an update on full-year outlook will be provided in the second quarter [16][68] Other Important Information - The company returned $62.6 million of capital in the first quarter, including $53.8 million in buybacks and $8.8 million in dividends [14] - The capital ratios remain strong, with a CET1 of 14.1% and TCE of 8.63%, significantly above regulatory targets [14] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical not to provide updated guidance until mid-year due to the volatility of the environment [22][23] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was due to a one-off item and that the rest of the portfolio is performing as expected [26][28] Question: How should expenses be viewed going forward? - Management noted that the first quarter expenses were lower than the run rate and provided insights into one-time items affecting the expense line [33] Question: What is the outlook for commercial growth? - Management observed that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [40][42] Question: How are deposit beta expectations evolving? - Management exceeded their deposit beta goal of 40% and plans to continue pushing for higher rates [56][63] Question: What is the medium-term plan for the CET1 target? - Management outlined a two to three-year glide path to reach a CET1 target of 12%, depending on macroeconomic conditions [66][68]