Financial Data and Key Metrics Changes - East West Bancorp reported record quarterly revenue, net income, and earnings per share for Q3 2025, with net interest income (NII) reaching an all-time high of $645 million, excluding $32 million from discount accretion and interest recoveries [5][12] - Total operating expenses were $261 million, which included a one-time compensation expense of $27 million related to equity award recognition [13][14] - The efficiency ratio for Q3 was reported at 35.6%, indicating strong operational efficiency [14] Business Line Data and Key Metrics Changes - Deposits grew by over $1.5 billion in Q3, with non-interest bearing deposits outpacing time deposit growth [8] - Fee income reached $92 million, marking a 13% year-over-year growth, with wealth management fees specifically growing by 36% [13] - Loan growth was steady, with over $800 million in fundings, and commercial real estate balances continued to grow, maintaining a low loan-to-value ratio [9][10] Market Data and Key Metrics Changes - The bank's asset quality metrics outperformed the industry, with net charge-offs at 13 basis points and total non-performing assets at 25 basis points as of September 30, 2025 [15][16] - The allowance for credit losses increased to $791 million, reflecting a proactive approach to managing credit risks amid economic uncertainty [16] Company Strategy and Development Direction - The company is focused on diversifying its deposit mix and optimizing its funding strategy, which has contributed to improved liquidity [5][8] - East West Bancorp plans to continue investing in its wealth management and fee-based services, indicating a strategic shift towards enhancing customer relationships and product offerings [6][42] - The bank is well-capitalized, with a tangible common equity ratio of 10.2%, and is considering opportunistic stock buybacks and potential dividend increases [17][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to navigate economic uncertainties and highlighted the resilience of its customer base [52] - The outlook for net interest income and revenue growth is now projected to exceed 10% for the full year, reflecting improved deposit mix and credit performance [18][19] - Management remains cautious about loan growth in 2026, emphasizing the need for stability in the economic environment [25][76] Other Important Information - The bank repurchased approximately 25 million shares of common stock during the quarter, with $216 million remaining in repurchase authorization [17] - The upcoming dividend for Q4 2025 is scheduled to be payable on November 17, 2025 [17] Q&A Session Summary Question: Can you walk us through how you expect loan yields and deposit costs to perform with further rate cuts? - Management explained that deposit pricing is adjusted immediately following Fed actions, leading to a repricing benefit that may lag for loans [23] Question: What is driving the growth in non-interest bearing deposits? - The growth was attributed to increases in household, small business, and commercial accounts, indicating broad-based deposit growth [30] Question: What are the current credit metrics and any potential soft spots? - Management noted stable credit quality with low levels of problem loans, while maintaining vigilance in managing credit risks [32][34] Question: Can you discuss the growth in fee-based lines, particularly in wealth management? - The bank continues to invest in wealth management, hiring new talent and developing products to enhance client penetration and revenue [42] Question: What is the outlook for NII and expenses moving forward? - Management indicated that NII guidance includes recent interest recoveries, and expenses are expected to grow in line with revenue growth [85][88]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $22.1 million or $0.73 per diluted share, compared to $15.1 million and $0.50 in Q2 2025, primarily due to higher net interest income and a decrease in credit loss expense [7][20] - Return on average assets was 1.12% and return on average equity was 10.69% [7] - Pre-provision net revenues increased 16.4% to $33.1 million, demonstrating the strength of the core business [7][20] - Net interest margin expanded by 15 basis points to 3.22%, driven by higher average yields on loans and lower funding costs [8][20] - Total loans increased to $6.53 billion, a 3.5% increase on a linked quarter basis, with loan production up 73% to $571 million [8][20] Business Line Data and Key Metrics Changes - Commercial loans were a key contributor to total loan production, reflecting investments in commercial lending teams and strategic expansion [6] - C&I loan production reached $211 million, an increase of 296% from the prior quarter, driven by investments in C&I teams and the USKC initiative [16] - CRE production was $177 million, up 58% from the prior quarter, maintaining a healthy loan-to-value ratio of approximately 47.7% [15] - Residential mortgage loan production was $103 million, up 23% from the previous quarter [17] Market Data and Key Metrics Changes - Deposits increased by 0.6% in Q3 2025, driven by new commercial accounts and contributions from new branches [10][18] - Non-interest bearing demand deposits remained stable at approximately 31% of total deposits [10][19] - USKC loan balances increased by 8.2% to $910 million, representing approximately 14% of the total loan portfolio [17] Company Strategy and Development Direction - The company aims to drive loan growth in the mid-single digit range, up from a previous forecast of low to mid-single digit growth [13] - Strategic initiatives include scaling C&I, residential, and SBA loan portfolios, broadening the core deposit base, and maintaining solid credit metrics [13] - The company is optimistic about long-term growth potential from the USKC initiative, focusing on relationships with US subsidiaries of Korean companies [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum into Q4 2025, supported by strategic initiatives and a solid liquidity position [13] - The current macro environment is evolving, but management remains optimistic about growth opportunities [11][12] - The company has a proactive approach to credit management, which has resulted in improved asset quality [8][24] Other Important Information - The efficiency ratio improved to a two-year low of 52.65% [10][20] - The company repurchased 199,698 common shares at a weighted average price of $23.45 during the quarter [25] Q&A Session Summary Question: Loan growth expectations for Q4 - Management indicated that net loan growth is influenced by production and payoffs, with a similar pipeline expected for Q4 [32][34] Question: Credit quality outlook - Management emphasized a comprehensive approach to managing the loan portfolio, maintaining clean asset quality, and monitoring mortgage and SBA loans closely [36][38] Question: Funding and balance sheet considerations - Management acknowledged the need for deposit growth to support loan growth and maintain net interest margin expansion [40] Question: Competition in lending and deposit markets - Management noted increased competition in both lending and deposit markets but believes it is manageable [49] Question: Share repurchase activity - Management confirmed that the Board will evaluate share repurchases each quarter, with expectations for continued activity [50]

Financial Data and Key Metrics Changes - Third quarter net income totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, up $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [5][6] - Net interest margin expanded by 6 basis points to 2.98%, a 30 basis point increase over the last four quarters [3][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, with third quarter loan originations totaling $188 million at a blended yield of 6.70% [4][5] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] - Total deposits increased by $178 million to $3.4 billion, with growth across all deposit categories [11] Market Data and Key Metrics Changes - The spot rate on deposits was 2.97%, which was six basis points below the third quarter's average of 3.03% [6] - The loan portfolio yield expanded by 9 basis points to 6.12%, primarily due to strong origination yields [9] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [18][19] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, indicating a positive outlook for the future [3][5] - The company remains vigilant in managing credit quality and is focused on maintaining strong loan growth despite competitive pressures [18][19] Other Important Information - The company repurchased 660,000 shares or 4% of shares outstanding in the third quarter, with a tangible book value per share increasing to $25.89 [11][12] - Non-interest expenses decreased by $1.8 million to $18.7 million, primarily due to the absence of ERC-related expenses from the previous quarter [8] Q&A Session Summary Question: What inning do you think you are in regarding credit resolution? - Management acknowledged that while progress has been made, there is still work to do, and they are focused on resolving remaining credit issues [16][17] Question: How much is left in the current share repurchase authorization? - Approximately $4 million remains in the current program, and management is considering future buyback opportunities [20] Question: What is the expected deposit beta with potential rate cuts? - Management indicated that deposit beta may have slowed due to fierce competition for liquidity, but they expect to capitalize on upcoming opportunities [26][27] Question: What is the outlook for loan growth and portfolio mix? - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although seasonality may moderate growth in Q4 [36][37] Question: Was there any interest recovery during the third quarter? - There was no significant interest recovery or anomalies in net interest income during the third quarter [42] Question: What rates were the FHLB advances maturing at? - The FHLB advances matured at a rate of 3.40%, and were replaced with brokered deposits at higher rates [44]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [4] - Total outstanding loan balances increased by 2.4% sequentially, adding nearly $1.2 billion over the past two quarters [4][7] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [5][14] - Fee income grew by 3.6% sequentially, contributing to overall performance [6] Business Line Data and Key Metrics Changes - The core commercial and industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [7][8] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [8] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [11] Market Data and Key Metrics Changes - Assets under management (AUMA) grew by 4.1% to $122.7 billion, marking the highest quarter on record [12] - The company maintained a strong liquidity profile with a loan-to-deposit ratio in the mid-60% range, providing strategic flexibility [5] Company Strategy and Development Direction - The company aims to sustain loan growth momentum, particularly in commercial real estate and core CNI, while being cautious about energy sector exposure [22] - M&A opportunities are considered, but the company prioritizes organic growth and share repurchases as primary uses of capital [24][25] - The launch of mortgage finance is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [32][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite competitive pressures and market disruptions from M&A activity [22] - The company anticipates that net charge-offs will remain well below historical norms, supported by strong credit quality [9][17] - Future guidance includes expectations for loan growth of 5 to 7% and net interest income between $1.325 billion and $1.35 billion [16][17] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter [6] - Credit quality remains a core strength, with a combined allowance for credit losses at 1.32% of outstanding loans [9][10] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [20][22] Question: Capital allocation and M&A considerations - The company prioritizes organic growth and share repurchases, with M&A being a secondary consideration, focusing on strong core deposit franchises [24][25] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [30] Question: Mortgage finance growth potential - The company expects significant growth in mortgage finance, with a target of $500 million in commitments by year-end and a strong appetite for growth in 2026 [32][42] Question: Fee income range and guidance - Management acknowledged the challenges in predicting fee income but expressed confidence in good activity across various fee-generating businesses [38] Question: Credit quality and charge-off expectations - Management reiterated strong credit quality and low charge-off expectations, with a long-term average loss rate projected around 20 to 25 basis points [66][67]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [4] - Total outstanding loan balances increased by 2.4% sequentially, adding nearly $1.2 billion over the past two quarters [4][7] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [5][14] - Fee income grew by 3.6% sequentially, contributing to overall performance [6] Business Line Data and Key Metrics Changes - The core Commercial and Industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [7][8] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [8] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [11] Market Data and Key Metrics Changes - Assets Under Management (AUMA) grew to over $122 billion, marking a 4.1% increase in the third quarter [12] - The company maintained a strong liquidity profile with a loan-to-deposit ratio in the mid-60% range, providing strategic flexibility [5] Company Strategy and Development Direction - The company aims to sustain loan growth momentum, particularly in commercial real estate and CNI, while being cautious about energy sector exposure [22] - M&A opportunities are considered, but the company prioritizes organic growth and share repurchases as primary capital allocation strategies [24][25] - The launch of the mortgage finance business is expected to contribute significantly to loan growth in the coming quarters [32][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite competitive pressures and market disruptions from M&A activity [22] - The company anticipates net charge-offs to remain well below historical norms, supported by strong credit quality [9][17] - Future guidance includes expectations for loan growth of 5% - 7% and net interest income between $1.325 billion and $1.35 billion for the full year [17] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [6] - The combined allowance for credit losses is $328 million, representing a healthy 1.32% of outstanding loans [9] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [20][22] Question: Capital allocation and M&A considerations - The company prioritizes organic growth and share repurchases, with M&A being a secondary consideration depending on strategic value [24][25] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [30] Question: Mortgage finance business potential - The company expects to achieve $500 million in commitments by year-end, with significant growth anticipated in 2026 [32][42] Question: Fee income guidance and expense expectations - Management provided insights into the challenges of predicting fee income but expressed optimism about growth dynamics across various fee businesses [38] Question: Credit quality and charge-off expectations - Management confirmed strong credit quality and low charge-off rates, with expectations for charge-offs to remain below historical norms [66][67]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [3][4] - Total outstanding loan balances increased by 2.4% sequentially, adding almost $1.2 billion over the past two quarters [3][6] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [4][13] - Fee income grew by 3.6% sequentially, contributing to overall performance [5][10] Business Line Data and Key Metrics Changes - The core Commercial and Industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [6][7] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [7] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [10] Market Data and Key Metrics Changes - Assets Under Management (AUMA) grew to over $122 billion, marking a 4.1% increase in the third quarter [5][11] - Non-performing assets decreased by $7 million to $67 million, with a non-performing assets to period loans ratio of 27 basis points [8] Company Strategy and Development Direction - The company aims to sustain growth momentum, particularly in the CNI and CRE sectors, while maintaining a strong liquidity profile [4][16] - There is a focus on organic growth, with share repurchases and dividends as secondary uses of capital, while M&A opportunities are considered cautiously [22][23] - The launch of the mortgage finance business is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining loan growth despite competitive pressures and market disruptions from M&A activity [20][21] - The outlook for net interest income is projected between $1.325 billion and $1.35 billion, with expectations for continued growth in loans and deposits [16][18] - Credit quality remains strong, with expectations for low charge-offs and a healthy allowance for credit losses [8][72] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [5][6] - Total expenses increased by $15.3 million, primarily due to personnel expenses related to workforce realignment [13][15] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [19][20] Question: Capital allocation and M&A considerations - The company prioritizes organic growth but remains open to M&A opportunities that align with strategic goals, emphasizing caution in execution [22][23] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [26][27] Question: Mortgage finance business potential - The mortgage finance business is expected to grow significantly, with a target of $500 million in commitments by year-end and a strong growth outlook for 2026 [30][37] Question: Fee income range and guidance - Management discussed the challenges in providing precise guidance for fee income but noted strong activity across various fee-generating businesses [32][33] Question: Credit quality and charge-off expectations - The company maintains a strong credit quality outlook, with expectations for charge-offs to remain low in the near term [56][72]

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Financial Data and Key Metrics Changes - The company reported net income of $65.6 million and diluted earnings per share of $1.20, representing an 18% increase from the same quarter last year [11] - Pre-provision net revenue was $88.3 million, with a return on average assets of 1.47% and a return on common equity of 14.9% [11] - The book value grew by an annualized 14% from the previous quarter, ending at $32.37 per share [13] - Net interest income was reported at $133.4 million, with a normalized net interest income of $137.8 million, resulting in a net interest margin of 3.09% [13][14] Business Line Data and Key Metrics Changes - Loan growth was below expectations, with loan paydowns increasing by $500 million over the prior two quarters [4] - The loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago [4][5] - Non-performing assets increased by approximately $96 million during the quarter, primarily due to a relationship with a large merchant developer [9] Market Data and Key Metrics Changes - The company hired seven new producers across its markets, achieving profitability in all markets for the first time [7] - The company is managing down total deposit costs as the Federal Reserve reduces the Fed funds rate [6] Company Strategy and Development Direction - The company aims to focus on organic loan and deposit growth while managing non-interest expenses [18] - There is a strategic emphasis on non-interest income growth through credit cards, merchant services, and treasury management products [16] - The company is exploring opportunities in Texas, aiming to attract local talent and customers [62] Management's Comments on Operating Environment and Future Outlook - Management noted that lending activity softened in Q3 but has been robust moving into Q4 [8] - The company expects continued margin expansion due to anticipated rate cuts from the Federal Reserve [14][33] - Management expressed confidence in the loan pipeline and expects a good close in loan growth for Q4 [6][41] Other Important Information - The company recognized a loss of $7.8 million on the sale of bonds and invested in a solar tax credit, benefiting from a $2.4 million tax provision [12][19] - The company has a total NDFI exposure of $71 million, which is less than 1% of its loan portfolio, indicating a cautious approach to lending in riskier categories [21] Q&A Session Summary Question: What pushed the borrower to nonperforming status? - Management indicated that additional collateral was obtained, but a large payment expected before quarter-end did not materialize, leading to the non-accrual status [28][29] Question: What is the loan-to-value ratio on the loans? - Management stated that while the loan-to-value is elevated, it is believed to be below one-to-one, with adequate security to cover the loans [31] Question: What are the expectations for margin improvement? - Management expects a 7 to 10 basis point improvement in margin each quarter, with a normalized spot rate for September at 3.28% [33][34] Question: What is the outlook for loan demand? - Management noted that loan demand is currently okay, with commercial real estate being a stronger area, but overall demand is not great [41] Question: What is the effective tax rate going forward? - The effective tax rate is expected to remain around 18.9% for the year, with efforts to keep it below 20% in the future [54]

Financial Data and Key Metrics Changes - Profit before tax, excluding treasury, grew by 9.1% year-on-year to INR 161.64 billion in Q2 FY26 [2][18] - Core operating profit increased by 6.5% year-on-year to INR 170.78 billion [2] - Profit after tax grew by 5.2% year-on-year to INR 123.59 billion [3][18] - Average deposits grew by 9.1% year-on-year and 1.6% sequentially [3] - Net interest income increased by 7.4% year-on-year to INR 215.29 billion [13] - Non-interest income, excluding treasury, grew by 13.2% year-on-year to INR 73.56 billion [15] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 10.6% year-on-year [3] - Retail loan portfolio grew by 6.6% year-on-year [3] - Business banking portfolio grew by 24.8% year-on-year [4] - Mortgage portfolio grew by 9.9% year-on-year [6] - Auto loans grew by 1.4% year-on-year [6] - Personal loans declined by 0.7% year-on-year [6] Market Data and Key Metrics Changes - Average current and savings account deposits grew by 9.7% year-on-year [3] - Total deposits grew by 7.7% year-on-year [3] - The net NPA ratio improved to 0.39% from 0.41% in the previous quarter [4] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach [2] - The company aims to maintain a strong balance sheet and prudent provisioning while delivering sustainable returns [5] - Continued investment in distribution and capacity allocation to higher growth opportunities is emphasized [24] Management Comments on Operating Environment and Future Outlook - Management is positive on growth outlook, noting that growth has picked up across retail portfolios [24] - Corporate India is well-funded, and banks are one of many funding sources [25] - Margins are expected to remain range-bound due to various market dynamics [26][27] Other Important Information - The capital position remains strong with a CET1 ratio of 16.35% [5] - Total provisions during the quarter were INR 9.14 billion, reflecting healthy asset quality [17] Q&A Session Summary Question: Is there visibility on growth acceleration? - Management noted that growth has picked up and is positive on the outlook, but did not provide a specific year-end loan growth number [24] Question: Comments on corporate loan growth environment? - Management indicated that corporate India is well-funded and banks are just one of the funding sources [25] Question: Will margins improve or stay stable? - Margins are expected to be range-bound, with some deposit repricing anticipated [26][27] Question: Insights on Kasa market share growth? - Management highlighted steady distribution expansion and digital platforms as key drivers for Kasa growth [30][32] Question: Thoughts on capital adequacy and payout ratios? - Management emphasized maintaining a strong balance sheet and leveraging capital for growth, with no specific plans on payouts [33][34] Question: Retail asset quality and slippages? - Management noted that retail slippages have improved, indicating a positive trend in asset quality [51][58]

Financial Data and Key Metrics Changes - The company reported a mixed bag on asset quality, with three loans migrating to substandard categories and a couple of charge-offs, but overall asset quality remained stable [7][10][12] - The largest foreclosed asset, Lincoln Yards Land in Chicago, was sold at book value, contributing positively to the asset resolution efforts [8] - Combined special mention, substandard, and foreclosed assets decreased modestly during the quarter, indicating stable asset quality [9] Business Line Data and Key Metrics Changes - The residential real estate sector, particularly multifamily and condos, performed well, while office and industrial sectors showed continued absorption and leasing activity [12][13] - The company experienced record origination growth in the Corporate and Institutional Banking (CIB) segment, with nearly two dozen new relationships established [30] - The CIB group is expected to grow significantly, contributing to a more balanced loan portfolio in the future [22][42] Market Data and Key Metrics Changes - The commercial real estate (CRE) market is seeing a flight to quality, with high demand for Class A office spaces, while lower quality projects are taking longer to lease [12][13] - The infusion of liquidity into the CRE space is evident from record levels of paydowns, indicating a growing willingness among sponsors to refinance [10][11] Company Strategy and Development Direction - The company aims to diversify its loan portfolio, with expectations that CIB will rival the legacy RESG segment in volume over the next several years [22][42] - The focus is on optimizing capital allocation and improving utilization rates in the CIB segment to enhance returns for shareholders [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in 2027, anticipating a shift from high levels of payoffs in 2025 and 2026 to positive contributions from RESG [21][22] - The company is closely monitoring the credit quality of its portfolio, with a strong emphasis on sponsor support to mitigate risks [59][60] Other Important Information - The company is actively rebalancing its legacy books to improve capital efficiency and returns [26] - The management highlighted the importance of thorough underwriting practices, especially in the lender finance space, to mitigate risks associated with recent market volatility [33][39] Q&A Session Summary Question: Commentary on real estate market absorption trends - Management noted that absorption is improving across various real estate classes, with a focus on high-quality assets [4][12] Question: Insights on CIB portfolio and recent headlines - The CIB segment saw record origination growth, with a focus on diversification and maintaining a conservative approach to underwriting [30][32] Question: Expectations for loan origination volumes - Management indicated that the low origination volume in the last quarter was likely an anomaly, with expectations for a return to typical levels in the upcoming quarter [68] Question: Impact of Fed rate cuts on margins - Management explained that there is typically a lag in margin stabilization following Fed cuts, with expectations for a couple of quarters of compressed margins [46][48] Question: Future growth outlook for EPS and net income - Management expects record net interest income and EPS in the coming year, with significant growth anticipated in 2027 [49][50]