Financial Data and Key Metrics Changes - Banc of California reported a net income of $59.7 million or $0.38 per diluted share, reflecting a 23% increase from the adjusted EPS of $0.31 in the prior quarter [12] - Net interest income rose by 5% from Q2 to $253 million, with net interest margin expanding to 3.22% due to higher loan yields and lower deposit costs [12][14] - Return on tangible common equity increased by 231 basis points to 9.87%, and EPS has increased nearly 50% since Q1 [4] Business Line Data and Key Metrics Changes - Loan production and disbursements remained healthy at $2.1 billion, with a slight decline in total loans by 1.6% due to elevated paydowns and proactive payoffs of criticized loans [7][12] - Core deposit trends were positive, with noninterest-bearing deposits up 9%, now representing 28% of total deposits [6] - Noninterest income increased by 5% from the previous quarter to $34.3 million, primarily due to higher fair value adjustments on market-sensitive instruments [15] Market Data and Key Metrics Changes - The average yield on loans increased by 12 basis points to 6.05%, reflecting a shift towards higher-yielding commercial and industrial loan categories [13] - The cost of deposits declined by five basis points to 2.08%, with a spot cost of deposits at 1.98% [14] Company Strategy and Development Direction - The company aims to capitalize on opportunities in the California banking landscape, focusing on building a diverse lending portfolio and a valuable core deposit base [20] - Management emphasized a disciplined approach to capital management, including opportunistic share buybacks while maintaining strong capital levels [5][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable high-quality earnings growth, supported by a strong capital position and a valuable core deposit base [10][20] - The company expects loan growth for the full year to be in the mid-single-digit range and net interest margin to remain within the 3.2% to 3.3% target range for the fourth quarter [18] Other Important Information - The allowance for credit losses increased to 1.12% of total loans, reflecting a disciplined approach to reserving and the strength of the credit profile [10][18] - The company has repurchased 2.2 million shares in Q3, totaling 13.6 million shares under its buyback program, representing more than 8% of outstanding shares [5] Q&A Session Summary Question: Can you provide insight into credit trends this quarter? - Management highlighted that credit quality remained stable, with criticized loans down 4% quarter over quarter and special mention loans down 24% [9] Question: How is the company managing its exposure to NDFI lending? - Management clarified that their exposure is primarily in real estate loans, with strong collateral protection, and emphasized their disciplined approach to risk management [28][30] Question: What is the outlook for net interest margin? - Management expects net interest margin to continue expanding, driven by increased loan production and a favorable mix of deposits [41][42] Question: What are the key drivers of loan production? - Management noted strong production across various lending units, particularly in commercial and industrial loans, and highlighted a robust pipeline for the fourth quarter [95][88] Question: How is the company approaching office lending? - Management stated they are cautious about office lending and have chosen to back off from this sector, focusing instead on more stable lending opportunities [102][104]

Financial Data and Key Metrics Changes - The company reported EPS of $0.91 and net income of $35 million for Q3 2025, with ROE and ROA at 1.42%, up 10 basis points from Q2 [6] - PPNR increased to 1.89%, up 16 basis points, aided by NIM expansion to 3.93%, which rose by five basis points [6][8] - Tangible book value grew by more than 3% this quarter, indicating strong capital levels and flexibility for acquisitions and share buybacks [5][15] Business Line Data and Key Metrics Changes - Total loan balances grew by $47 million or 2.3% annually, primarily driven by commercial real estate (CRE) activities, which saw an increase of $133 million [9] - Consumer loan activity grew by $37 million or approximately 6% annualized, while commercial and industrial (C&I) balances declined by $46 million due to higher payoffs and seasonal reductions [10][11] - Non-interest-bearing deposits represented 28% of total deposits, contributing to net interest income and margin improvements [5][8] Market Data and Key Metrics Changes - The company experienced a slight increase in non-performing assets (NPAs) to 62 basis points of total loans, which remains within an acceptable range [11] - The allowance for credit losses decreased by one basis point, indicating a stable credit risk environment [11] Company Strategy and Development Direction - The company aims for organic growth to exceed $10 billion in the coming quarters, focusing on enhancing its deposit franchise and managing asset sensitivity [5][6] - Strategic initiatives have been implemented to position the company for long-term success, including a focus on improving productivity and leveraging technology [4][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current strong performance and future growth, despite some uncertainty in the market due to budget impasses [18][50] - The company anticipates mid-single-digit loan growth in Q4, supported by strong CRE activity and a focus on improving C&I growth [10][18] Other Important Information - The company has a share repurchase authorization in place for $50 million, indicating a commitment to returning value to shareholders [15] - Management highlighted the importance of maintaining a strong deposit mix and proactive pricing strategies in response to competitive pressures [28][53] Q&A Session Summary Question: Loan growth outlook and impact of paydowns - Management noted that paydowns were higher than expected, impacting overall loan growth, but CRE activity remains strong with expectations for better growth in Q4 [17] Question: Margin stability amid Fed cuts - Management believes they are well-positioned to handle potential rate cuts due to their funding mix and ability to adjust deposit rates [19] Question: M&A activity and geographic preferences - Conversations regarding M&A remain active, with interest in expanding into faster-growing areas beyond current markets [22][66] Question: Competition and deposit betas - Increased competitive pressure was noted following recent rate cuts, particularly on CDs, but management expects to stabilize margins through effective pricing strategies [27][28] Question: Credit quality and specific exposures - Management reassured that credit quality remains stable, with no significant concerns in specific asset classes or geographies [49][65]

Financial Data and Key Metrics Changes - GAAP net income for the third quarter was $10.1 million, or $1.27 per share, up from $9.1 million, or $1.15 per share in the previous quarter [3] - Pre-provision net revenue return on assets increased to 1.7%, up 27 basis points from the prior quarter [3] - Net interest margin expanded to 3.34%, up 24 basis points over the prior quarter, driven by a 13 basis point rise in loan yields [7][8] Business Line Data and Key Metrics Changes - The SBA division's gains on sale rose to $1.4 million for the quarter, with total SBA originations reaching $22 million [5] - Non-interest income increased to $2.5 million, driven by SBA sales gains, representing a 24% increase compared to the linked quarter [10] - Loan originations totaled $220 million for the quarter, bringing year-to-date fundings to just over $500 million [4][12] Market Data and Key Metrics Changes - Non-performing assets as a percentage of total assets fell to 56 basis points compared to 78 basis points last quarter [5][6] - The efficiency ratio improved to 51.4%, down from 56.1% in the previous quarter [6][10] - Total assets reached $3.2 billion, showing slight growth compared to the linked quarter [11] Company Strategy and Development Direction - The company aims to diversify income streams and improve the deposit base while attracting talented banking professionals [16] - The strategic focus includes increasing the proportion of variable rate loans from just over 20% to 35% to mitigate the impact of future interest rate changes [9] - The company is optimistic about the SBA division's potential for further scaling beyond the current production goal of $50 million [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook on credit trends, with expectations for continued improvement in non-performing asset ratios [4][16] - The company anticipates that the recent rate cuts will have a short-term impact on net interest margin but expects improvements as term deposits mature [9] - The management is cautious about the potential short-term impacts of the government shutdown on the SBA division but remains optimistic about future growth [34] Other Important Information - The company revised its loan growth guidance to flat for the year due to elevated payoffs [15] - Non-interest income guidance for the full year is affirmed at $7 to $8 million, with net interest income guidance set at $97 to $98 million [15] Q&A Session Summary Question: Loan pricing and elevated payoffs - Management noted that year-to-date originations have a weighted average rate of 7.86% and that elevated payoffs are expected to continue into 2026 [20][21] Question: Update on core deposit initiative - Management reported positive developments with newly hired teams contributing to deposit growth, although full production is expected by 2026 [26] Question: Deposit beta with Fed rate cuts - Management indicated that approximately $1 billion of non-maturity interest-bearing deposits are indexed to Fed funds, with effective beta achieved at 50% on $1 billion of deposits [28]

Financial Data and Key Metrics Changes - Bankwell reported GAAP net income of $10.1 million or $1.27 per share, an increase from $9.1 million or $1.15 per share in the previous quarter [6] - Pre-provision net revenue was $13.9 million or $1.77 per share, representing a 21% increase from the second quarter [10] - Net interest margin (NIM) expanded to 3.34%, up 24 basis points from the prior quarter, driven by a rise in loan yields and improved deposit costs [10][11] Business Line Data and Key Metrics Changes - The SBA division generated $1.4 million in gains on sale for the quarter, contributing to a year-to-date non-interest income of $6 million [8] - Loan originations totaled $220 million for the quarter, with year-to-date fundings exceeding $500 million, surpassing full-year totals for 2023 and 2024 [7][17] - Non-performing assets (NPA) as a percentage of total assets decreased to 56 basis points from 78 basis points in the previous quarter [8][15] Market Data and Key Metrics Changes - The company experienced a growth of $20 million in low-cost deposits over the prior quarter, with a total increase of $64 million or 16% since 2024 [7] - Interest-bearing deposit costs improved by 37 basis points from 2024, contributing to the expansion of NIM [11] Company Strategy and Development Direction - The company aims to diversify income streams, improve the deposit base, and attract talented banking professionals [21] - A strategic increase in variable rate loans from over 20% to 35% is expected to mitigate the impact of future interest rate changes [13] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook on credit trends, with expectations for further improvement in non-performing assets [6][21] - The company anticipates a flat loan growth for the year due to elevated payoffs, while affirming guidance for non-interest income and net interest income [20] Other Important Information - The efficiency ratio improved to 51.4%, down from 56.1% in the previous quarter, indicating better operational efficiency [9][14] - The company’s total assets reached $3.2 billion, with capital ratios expanding during the quarter [16] Q&A Session Summary Question: Update on loan pricing and elevated payoffs - Management indicated that loan originations have a weighted average rate of 7.86% and that elevated payoffs are expected to continue into 2026 [25][26] Question: Core deposit initiative progress - Management reported that newly hired teams are beginning to produce deposits, with full production expected by 2026 [30][31] Question: Deposit beta in response to Fed rate cuts - Management explained that approximately $1 billion of non-maturity interest-bearing deposits are indexed to Fed funds, with a 50% beta achieved on $1 billion of deposits [32] Question: SBA contributions and potential government shutdown effects - Management noted that the impact of a government shutdown on SBA contributions depends on its duration, but they are positioned to continue underwriting SBA credits [38][39]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][18] - Non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][21] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans and 200% of non-performing loans [22] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, which would be 8.8% annualized [6] - Loan balances increased by $225 million or 5.7% over the last 12 months, led by non-owner occupied CRE, one-to-four family residential, C&I, and multifamily loans [6][7] - Deposit balances were relatively flat compared to the linked quarter, but up $240 million or 5.9% over the last 12 months [7] Market Data and Key Metrics Changes - Strong growth was experienced in the east region, where much of the agricultural activity is concentrated, with the south region following closely [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth in the upcoming quarters [7][20] - The company is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and utilize government programs to mitigate risk [17] - There is a modest uptick in M&A discussions, with the company well-positioned to act when the right partner is ready [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance in the new fiscal year, despite a larger provision for credit losses due to the evolving economic environment [3][23] - The company expects to remain liability-sensitive and a net beneficiary of rate cuts over the next four years [20] - Management noted that while charge-offs and non-performing loans have remained elevated, they are comparable to national averages for banks under $10 million [25] Other Important Information - The company repurchased just over 8,000 shares at an average price of just under $55 for a total of $447,000 [9] - Tangible book value increased by $5.09 or 13.3% over the last 12 months, attributed to earnings retention and improvement in the bank's unrealized loss in the investment portfolio [8][9] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels running similar to historical ranges [32][33] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability-sensitive and expects to be a net beneficiary of rate cuts, estimating a 1%-3% increase in net interest income per 100 basis points of rate cuts [34][35] Question: Update on loan pipeline and growth expectations - The loan pipeline remains consistent, with expectations for mid-single-digit growth for the fiscal year, though seasonal slowdowns are anticipated [41][43] Question: Appetite for buybacks and M&A activity - Management anticipates being more active in buybacks given current pricing and is exploring M&A opportunities, ideally targeting banks in the billion-dollar asset range [48][49]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June quarter, but up $0.28 from the same quarter a year ago [5] - Net interest margin for the quarter was 3.57%, up from 3.47% in the linked quarter and from 3.34% in the year-ago quarter [7] - Non-interest income decreased by 9.7% or $707,000 compared to the linked quarter, but was offset by a 3.6% decrease in non-interest expense [6][25] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, with a year-over-year increase of $225 million or 5.7% [8] - The growth in loans was led by non-owner occupied commercial real estate, one to four family residential, commercial and industrial, and multifamily loans [8] - Deposit balances were relatively flat compared to the linked quarter but increased by $240 million or 5.9% over the last twelve months [9] Market Data and Key Metrics Changes - The company experienced strong growth in its East Region, particularly in agricultural activity, with the South Region also showing good growth [8] - The loan pipeline anticipated to fund in the next ninety days remains strong, totaling about $195 million as of September 30 [8] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth due to seasonal factors [9] - The management is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and plan for restructuring where necessary [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance in the new fiscal year, citing good momentum on pre-provision net revenue [5] - The company is monitoring economic conditions closely and has increased reserves for watch list agricultural borrowers due to prolonged weakness in the agricultural segment [20] Other Important Information - Tangible book value increased to $43.35 per share, up $5.9 or 13.3% over the last twelve months, attributed to earnings retention and improvements in the bank's unrealized loss in the investment portfolio [10] - The company repurchased just over 8,000 shares at an average price of just under $55, totaling $447,000 [10] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, indicating a return to more historical delinquency levels [36][37] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability sensitive but anticipates a net benefit of 1% to 3% net interest income per 100 basis points of rate cuts [39] Question: Update on loan pipeline and growth expectations - The loan pipeline remains consistent, with expectations for mid-single-digit growth for the fiscal year, though seasonal slowdowns are anticipated [47] Question: Buyback activity and M&A discussions - Management anticipates being more aggressive in share buybacks given current pricing and has ongoing discussions regarding potential M&A opportunities [53]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][6] - Reported non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][21] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, which would be 8.8% annualized, with significant growth in non-owner occupied commercial real estate, one-to-four family residential, commercial & industrial, and multifamily loans [6][7] - Deposit balances were relatively flat compared to the linked quarter, but up $240 million or 5.9% over the last 12 months [7][8] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans and 200% of non-performing loans [23] Market Data and Key Metrics Changes - The company experienced strong growth in its east region, particularly in agricultural activity, while the south region also showed good growth [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth due to seasonal factors [7][20] - The management highlighted a modest uptick in M&A discussions, indicating a potential for attractive opportunities in the market [26][27] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance in the new fiscal year, citing good momentum on pre-provision net revenue [3] - The company is focused on improving credit quality and has been proactive in working with borrowers to mitigate risks [13][17] Other Important Information - The company repurchased just over 8,000 shares at an average price of just under $55 for a total of $447,000, with plans for more buybacks given current pricing [9][48] - The company has seen a general increase in agricultural production line utilization due to increased input costs, impacting the agricultural loan portfolio [15][16] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels trending back to historical ranges [32][33] Question: Bank's rate sensitivity and margin expansion - Management indicated that the bank remains liability-sensitive but expects to benefit from net interest income growth with potential rate cuts [34][35] Question: Update on loan pipeline and growth expectations - The company has a consistent pipeline and anticipates mid-single-digit growth for the fiscal year, with seasonal slowdowns expected [41][43] Question: Buyback activity and M&A discussions - Management anticipates being more active in buybacks due to current pricing and is exploring M&A opportunities, ideally targeting banks with assets around $1 billion [48][49]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share [5] - The net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and a 41 basis point increase year over year [7][19] - Common equity Tier one decreased to 12.44% from 13.77% in the previous quarter, but remains stable compared to the same period last year [7] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion from the previous quarter, primarily due to the acquisition of Bancorp Financial [8] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [13] - The allowance for credit losses on loans increased to $75 million, or 1.43% of total loans, reflecting the acquisition's impact [12] Market Data and Key Metrics Changes - The total cost of deposits rose to 133 basis points from 84 basis points in the prior linked quarter [8] - The loan to deposit ratio was 91.4% as of September 30, 2025, compared to 83.3% in the previous quarter [8] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank and optimizing the balance sheet post-acquisition [15] - A 17% increase in the common dividend was announced, reflecting confidence in the company's performance [28] - The company aims to reduce reliance on wholesale funding and is interested in acquiring additional deposits [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the Evergreen acquisition and the onboarding of new team members [28] - The company anticipates a low to mid single-digit growth rate heading into 2026, supported by robust pipelines in various sectors [82] - Concerns about credit quality were downplayed, with management indicating that most classified assets are well-collateralized [50] Other Important Information - The company recorded $5.1 million in net loan charge-offs, primarily from the powersports portfolio [11] - Non-interest expense increased by $19.7 million compared to the prior linked quarter, largely due to acquisition costs [15] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated there is about $200 million in market-priced funding, with a goal to replace it with more traditional deposits over the next 6 to 18 months [31][34] Question: Future originations in Power Sport - The focus will be on originating across all tiers, with a historical emphasis on the top two tiers [36] Question: Loan growth outlook - Management expects low to mid single-digit growth heading into 2026, with a strong pipeline in various sectors [82] Question: Charge-off trajectory - Charge-offs are expected to stabilize around 30 basis points, with management optimistic about credit quality [48] Question: Margin expectations - Management does not anticipate significant movement in margins, suggesting a stable outlook [95]

Investor Presentation Third Quarter 2025 Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those regarding Popular's business, financial condition, results of operations and objectives, performance, earnings and expenses. These statements are not guarantees of future performance, are based on the current expectations of Popular, Inc.'s manag ...

Financial Data and Key Metrics Changes - Earnings per share for Q3 2025 were reported at $0.30 on a fully diluted GAAP basis and $0.36 on a core basis [5] - Net interest income increased by $3 million compared to the prior quarter, marking the fourth consecutive quarter of growth [6] - The net interest margin remained stable at 2.91% compared to the second quarter [6] - Total loans increased by $373 million, representing a 14% annualized growth rate driven by strong originations of $1 billion [6][9] - Asset quality remained strong, with total loans classified as special mention and substandard decreasing 15% to $124 million, or 1.2% of total loans [7] Business Line Data and Key Metrics Changes - Loan originations for the quarter totaled $1 billion, resulting in loan growth of $373 million [9] - The commercial and industrial segment saw a 12% increase for the quarter [9] - Non-interest income increased by 5% to $12.3 million, primarily driven by strong swap demand linked to commercial growth [11] Market Data and Key Metrics Changes - Total deposits increased by $203 million, with organic growth at $321 million before decreases in broker CDs [10] - Premier banking teams contributed $128 million of new deposits for the quarter, with a target of $500 million by the end of 2025 [10] - Deposit balances totaled $242 million across more than 1,100 accounts, with approximately 20% in non-interest-bearing DDA [10] Company Strategy and Development Direction - The company is focusing on outsourcing residential loan originations and underwriting functions to improve operating leverage and earnings in 2026 [8] - The board approved a quarterly cash dividend of $0.20 per common share, marking the 115th consecutive quarterly cash dividend [8] - The company expects 7% to 9% annualized loan growth for 2026, predominantly driven by commercial and industrial loans [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong asset quality and expects positive expansion in net interest income in line with or higher than loan growth [13][17] - The company anticipates modest short-term compression on margin in Q4 due to seasonality and residual repricing of legacy deposit relationships [13] - Management highlighted the importance of evaluating capital optimization opportunities while supporting loan growth [17] Other Important Information - Operating expenses for the quarter were $76 million, including $4 million of restructuring charges related to outsourcing initiatives [8] - The CET1 ratio is estimated at 10.6%, reflecting robust capital levels despite loan growth [8][16] - The company expects a pre-tax improvement in annual operating results of approximately $10 million from restructuring initiatives [16] Q&A Session Summary Question: Clarification on net interest income guidance - Management clarified that the 3% terminal rate refers to assumptions around Fed rate cuts, not the NIM margin, and expects NIM to breach 3% in the first half of next year [21][23] Question: Premier banking segment deposit growth - Management attributed deposit growth to the acclimation of newly hired teams and operational accounts being converted to funding [36][37] Question: Impact of restructuring on non-interest income - Management confirmed a $10 million pre-tax benefit from restructuring, with a $4 million headwind in revenue expected [41][44] Question: Update on GovCon exposure - Management indicated a $100 million exposure focused on mission-critical contractors, with no significant concerns regarding credit quality [52][56] Question: ROA expectations - Management anticipates achieving a 1% ROA by the first quarter of 2027, with continued growth throughout that year [67]