Financial Data and Key Metrics Changes - Net income increased compared to the second quarter, driven by higher net interest and non-interest income, partially offset by a higher effective tax rate of 23.2% [4][9] - Total loans declined by approximately $223 million in the quarter, primarily in Commercial and Industrial (C&I) loans [5][6] - Net interest income was $169.3 million, an increase of $5.7 million from the prior quarter, with a net interest margin (NIM) of 3.19%, up eight basis points [9][10] Business Line Data and Key Metrics Changes - Total deposits increased by about $500 million in the third quarter, with commercial deposits rising by $135 million, while retail deposits declined by $43 million [7][8] - Non-interest income was $57.1 million, benefiting from higher swap income due to favorable market movements [10] Market Data and Key Metrics Changes - The state unemployment rate was 2.7% in August, lower than the national rate of 4.3%, with total visitor arrivals up 0.7% year-over-year [3] - Year-to-date visitor spending reached $4.6 billion, an increase of 4.5% compared to the same period last year [3] Company Strategy and Development Direction - The company aims to maintain strong loan growth, particularly in areas where it has expertise, such as residential pools of Hawaii loans and properties in Hawaii [18][19] - The investment portfolio is being held flat, with a restart of purchases after a period of letting it run down [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy's resilience despite potential hardships from a federal government shutdown [52][54] - The company anticipates a strong fourth quarter, with expectations for loan growth to cover the impact of potential rate cuts [27][39] Other Important Information - The bank's credit performance remains strong, with classified assets increasing by $30.1 million due to a single borrower, and net charge-offs at $4.2 million for the quarter [11][12] - The company has a share buyback authority of $100 million, with $74 million executed so far [32] Q&A Session Summary Question: Growth outlook and pipeline demand - Management noted significant paydowns in dealer floor plans and expressed bullishness about the pipeline, expecting strong production in the fourth quarter [17][18] Question: Core deposit growth success - Success in core deposit growth attributed to strong relationship management by retail and commercial teams [20] Question: NIM management with Fed cuts - Management indicated that NIM expansion depends on the timing and magnitude of Fed rate cuts, with sufficient loan growth expected to support margin expansion [22][27] Question: M&A strategy - The company remains open to mainland M&A opportunities but has no immediate plans [30][50] Question: Impact of federal spending on Hawaii - Management believes the long-term trend of defense-focused federal spending in Hawaii will remain strong despite current uncertainties [58] Question: Changes in competitive pricing behavior - No significant changes in competitive dynamics or pricing observed in the market [60]

Financial Data and Key Metrics Changes - The company generated net income of $3,200,000 or $0.32 per diluted share in Q3 2025, representing a 45% increase from the same quarter last year [5] - Tangible book value per share increased by 1.2% this quarter [5] - Gross revenue increased by 8.7% from the prior quarter and 15.5% year over year [11] - Net interest income increased for the fourth consecutive quarter, up 8.9% from the prior quarter and 25% year over year [12] - Non-interest income increased by more than $500,000 or 8.5% from the prior quarter [13] Business Line Data and Key Metrics Changes - Loans held for investment increased by $50,000,000 from the end of the prior quarter, with new loan production of $146,000,000 in Q3 [6][8] - Total deposits increased by $320,000,000 from the end of the prior quarter, driven by new accounts and existing client balance growth [9] - Trust and investment management assets under management decreased by $64,000,000, primarily due to net withdrawals [10] Market Data and Key Metrics Changes - The average rate on new loan production was 6.38% in the quarter [8] - The spot rate on deposits at the end of the quarter was 3.04% [30] - The company achieved a beta of approximately 63% on money market accounts in Q3 [31] Company Strategy and Development Direction - The company maintains a conservative approach to new loan production while focusing on service quality rather than competing on pricing [4] - The management is optimistic about continued growth opportunities in the Colorado market due to ongoing M&A activity [16] - The company is focused on creating operating leverage by growing revenues faster than expenses, aiming for improved efficiency ratios [50] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects solid balance sheet growth in Q4 [17] - There are no indications of meaningful deterioration in asset quality, with positive trends expected to continue [17] - The company plans to leverage investments made in technology and team restructuring to drive future growth [79] Other Important Information - The company was named one of 16 KBW Bank honor roll members in 2025 for its performance [86] - The management is optimistic about finishing the year strong and delivering shareholder value into 2026 [87] Q&A Session Summary Question: Insights on deposit growth and its sustainability - Management indicated that the deposits seen in Q3 are expected to remain and provide a higher deposit base for Q4 [21] Question: Details on the newly added non-performing asset (NPA) - The NPA was a commercial and industrial loan that had performance issues, with a specific provision set aside for it [22][23] Question: Expectations for net interest margin (NIM) in Q4 - Management anticipates NIM expansion due to liquidity on the balance sheet being redeployed into loans, estimating a potential increase of five basis points [24][26] Question: Update on wealth management and assets under management (AUM) - The company is focused on fee income growth rather than AUM, with recent progress noted in agency accounts [33] Question: Thoughts on future loan demand and liquidity deployment - Management expects loan demand trends to continue, with a focus on gradually redeploying excess liquidity into the loan portfolio over the next year [73][75]

Core Insights - Valley National Bancorp reported strong third-quarter results with net income of approximately $163 million, or $0.28 per diluted share, marking a significant increase from $133 million, or $0.22, in the previous quarter, representing the highest quarterly profitability since 2022 [3] - The company has seen robust core customer deposit growth, with nearly 110,000 new deposit accounts added over the past twelve months, contributing to a nearly 10% growth in core deposits [4] - Valley's balance sheet remains strong, with a disciplined approach to expense control and a meaningful reduction in credit costs, achieving many profitability goals ahead of schedule, including an annualized return on average assets above 1% [3][4] Leadership Changes - Pratchett Smith joined as president of the consumer bank, bringing experience from Santander and Capital One, and will oversee retail, consumer, and small business sectors [1] - Gina Martucci was appointed president of commercial banking, contributing extensive experience from M&T Bank to support the development of Valley's commercial franchise [2] Deposit Growth and Management - The company gathered about $1 billion in core deposits during the quarter, allowing for the payoff of approximately $700 million in maturing brokered deposits, reducing brokered deposits to 11% of the total deposit base, the lowest level since 2022 [10] - The average cost of deposits has decreased by 56 basis points since 2024, with expectations for continued benefits from lower deposit costs into 2026 [4][10] Noninterest Income and Fee Growth - Noninterest income has grown at an annual rate of 15% since 2017, significantly outpacing publicly traded peers, with treasury management and tax credit advisory initiatives contributing approximately $3 million in incremental revenue during the third quarter [5] - The treasury management platform has generated nearly $16 million in incremental deposit service charge revenue on an annualized basis since 2024 [5] Credit Performance - Valley experienced a significant reduction in net charge-offs and provisions during the third quarter, with expectations to sustain these levels into the fourth quarter [6] - Cumulative commercial real estate (CRE) charge-off rates have remained low, with aggregate losses limited to just 57 basis points of average CRE loans over the last seven quarters [6][15] Strategic Focus and Future Growth - The company is targeting growth in traditional small business and middle market opportunities, particularly in healthcare C&I and capital call lines, with no losses recorded on Valley-originated loans in these areas [7] - Valley aims to enhance its retail banking presence and has identified opportunities for organic growth in small business and retail deposits [38][39] Financial Outlook - Valley anticipates net interest income growth of another 3% sequentially in the fourth quarter, supported by fixed-rate asset repricing and a favorable interest rate backdrop [13] - The company is targeting a return on tangible common equity (ROTCE) of 15% by late 2027 or early 2028, with expectations for mid-single-digit loan growth and continued margin expansion [64]

Core Insights - The company is experiencing significant growth in business loans, with a year-over-year increase exceeding $400 million and a third-quarter growth of over $160 million compared to the previous quarter [1][3] - The net interest margin (NIM) has increased for six consecutive quarters, surpassing 3%, and is expected to expand further in the fourth quarter due to reduced deposit costs and maintained loan yields [2][11] - The company has a strong liquidity position with a core deposit-funded balance sheet, allowing it to capitalize on lending opportunities as they arise [2][8] Financial Performance - Core earnings per share for the third quarter reached $0.61, representing a 110% year-over-year increase [8] - The reported NIM for the third quarter increased to 3.1%, with total deposits up approximately $320 million compared to the prior quarter [8][10] - Core cash operating expenses for the third quarter were $61.9 million, slightly above prior guidance, primarily due to new hires [9][14] Loan and Deposit Trends - Loan originations, including new lines of credit, increased to $535 million, with a strong loan pipeline currently standing at $1.2 billion [1][5] - The cost of total deposits remained unchanged at 2.09% in the third quarter, with a notable increase in the spread between loans and deposits by approximately 10 basis points following the Fed rate cut [2][11] - Core deposits increased by $1 billion year-over-year, with the deposit teams growing their portfolios to approximately $2.6 billion [3][10] Future Outlook - The company anticipates more meaningful NIM expansion in the fourth quarter and significant opportunities in 2026 based on loan pricing and organic growth across deposits and loans [7][12] - There is a substantial back book repricing opportunity, with approximately $1.35 billion of adjustable and fixed-rate loans expected to reprice or mature in 2026, potentially leading to a 20 basis point increase in NIM [12][13] - The company is focused on organic growth and has plans to open new branch locations in New Jersey and Long Island in 2026 [6][28]

Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share compared to the previous quarter [4] - Net interest income (NII) was $647 million, up $15 million, driven by higher average deposit balances and fixed-rate asset repricing [10] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [16] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million for the quarter, with Banco Popular contributing $357 million and Popular Bank contributing $145 million, primarily in commercial and construction lending [10] - Non-interest income increased to $171 million, up $3 million from the previous quarter, driven by robust customer transaction activity [14] - Total operating expenses rose to $495 million, an increase of $3 million, primarily due to a non-cash goodwill impairment [15] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending showing resilience and a 5% increase in combined credit and debit card sales [5] - Mortgage balances at Banco Popular increased by $129 million, indicating strong home purchase activity [5] - The tourism sector benefited from significant events, contributing to increased economic activity [6][7] Company Strategy and Development Direction - The company aims to be the number one bank for customers by deepening relationships and enhancing digital solutions [7] - The strategic framework focuses on being simple and efficient, while also aiming for a sustainable 14% return on tangible common equity [8] - Ongoing investments in technology and digital capabilities are expected to drive future growth and improve customer experiences [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and ongoing real estate projects [6] - The company remains focused on maintaining expense discipline and achieving sustainable returns above 12% [4][23] - Management noted that credit quality metrics were stable, excluding two isolated commercial loan issues [18][20] Other Important Information - The CET1 ratio was 15.8%, a decrease of 12 basis points due to loan growth [17] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [17] - The allowance for credit losses increased to $786 million, driven by two commercial exposures [21] Q&A Session Summary Question: On margin and asset yields - Management indicated that they expect net interest margin (NIM) to continue expanding despite potential rate cuts, supported by fixed asset repricing [30] Question: On loan yields and credit trends - Management noted that while new loan yields are expected to slow, they remain optimistic about consumer credit trends, particularly in Puerto Rico [33] Question: On large commercial loans and reserves - Management clarified that the large commercial loans in question are still current on payments, and the decision to classify them as non-accrual was based on deteriorating conditions [40] Question: On competition and underwriting standards - Management confirmed that they maintain rigorous underwriting standards despite increased competition in the market [78] Question: On future guidance and tax rates - Management provided clarity on the effective tax rate guidance for 2025, indicating it would be a clean number without significant noise from discrete events [71]

Financial Data and Key Metrics Changes - The company reported net income of approximately $163 million or $0.28 per diluted share, up from $133 million or $0.22 last quarter, marking the highest quarterly profitability since 2022 [4] - The annualized return on average assets is above 1%, achieving many profitability goals ahead of schedule [5] Business Line Data and Key Metrics Changes - Core deposits grew by nearly 10% over the past year, with approximately 110,000 new deposit accounts added [7] - Non-interest income has grown at an annual rate of 15% since 2017, three times faster than publicly traded peers [8] - Average loans increased by 0.5% during the quarter, with new origination yields stable at around 6.8% [15] Market Data and Key Metrics Changes - The company gathered about $1 billion of core deposits during the quarter, allowing for the payoff of approximately $700 million of maturing brokered deposits [13] - Brokered deposits now comprise 11% of the total deposit base, the lowest level since 2022 [13] Company Strategy and Development Direction - The company is focused on enhancing its commercial and consumer banking sectors, with new leaders introduced to accelerate growth [5][6] - There is a strategic emphasis on targeted investments in products, technology, and talent, particularly in commercial and specialty lines [7] - The company aims to diversify its balance sheet and reduce its commercial real estate concentration, targeting a ratio of 300% by 2026 [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, citing strong customer growth, talent acquisition, and profitability [11] - The company anticipates continued stability in credit performance and expects to sustain low charge-off levels [19] - There is confidence in achieving a 15% return on tangible equity by late 2027 or early 2028, with a focus on net income expansion and margin improvement [99] Other Important Information - The company has repurchased $12 million of capital to buy back 1.3 million common shares during the quarter [20] - Non-accrual loans increased primarily due to a construction loan migration, but management does not anticipate any losses from this [44] Q&A Session Summary Question: Can you discuss the competitive backdrop regarding the decline in C&I loans? - Management noted that while there is a competitive environment for new deposit relationships, they have successfully managed deposit pricing and expect costs to decrease [24][26] Question: What are the growth expectations for CRE and C&I? - Management indicated a target of low single-digit growth for CRE and a strong pipeline for C&I, with a focus on traditional small business and middle market opportunities [48][90] Question: How do you view the potential for M&A? - The company remains focused on organic growth but is open to considering M&A if it aligns with shareholder interests [77][110] Question: What is the outlook for non-accrual loans? - Management expects stability in non-accrual loans, with positive trends in the real estate market supporting this outlook [125] Question: How do you plan to manage expenses going into 2026? - The company anticipates low single-digit expense growth while investing in revenue-generating talent [64][66]

Financial Data and Key Metrics Changes - The company reported a net income of $211 million and EPS of $3.15, an increase of $1 million and $0.06 per share, respectively, driven by higher revenues and an expanding net interest margin [4][10] - Net interest income increased by $15 million to $647 million, with a net interest margin expansion of two basis points on a gap basis [11][12] - The effective tax rate decreased to 14.5% from 18.5% in the previous quarter, influenced by a higher proportion of exempt income [17][61] Business Line Data and Key Metrics Changes - Loan growth was strong at $502 million, with contributions from both banks, primarily in commercial and construction lending [11][12] - Non-interest income was $171 million, an increase of $3 million compared to the previous quarter, driven by robust customer transaction activity [15] - Total operating expenses increased by $3 million to $495 million, primarily due to a non-cash goodwill impairment [16] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained low at 5.6%, with consumer spending resilient and healthy [5][6] - Combined credit and debit card sales for Banco Popular customers increased by approximately 5% compared to the third quarter of 2024 [5] - The construction sector showed solid momentum, supported by public and private investments [6] Company Strategy and Development Direction - The company’s strategy focuses on being the number one bank for customers, simplifying operations, and achieving a sustainable 14% return on tangible common equity [7][9] - Recent initiatives include expanding digital capabilities and modernizing branches to enhance customer engagement [9][10] - The company is committed to improving cash management and credit delivery for small and mid-sized businesses [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic trends in Puerto Rico, citing a backlog of federal disaster recovery funds and new development projects [6][23] - The company aims to close out 2025 on a high note, focusing on deposit retention and loan generation [23] - Management remains confident in the risk profile of the loan portfolios despite recent credit quality concerns related to two large commercial loans [20][40] Other Important Information - The CET1 ratio decreased to 15.8%, primarily due to loan growth and capital actions [18] - The company declared a quarterly common stock dividend of $0.75 per share, an increase from the previous quarter [18] Q&A Session Summary Question: Margin and Asset Yields - Management indicated that they expect net interest margin (NIM) to continue expanding despite potential rate cuts, supported by fixed asset repricing and loan growth [26][27] Question: Credit Trends - Management noted that the increase in delinquency rates is within seasonal variations, and they remain optimistic about the consumer credit outlook [30][31] Question: Large CNI Loan Reserves - The company clarified that the large commercial loan remains current on payments, and the decision to classify it as non-accrual was due to deteriorating circumstances [34][35] Question: Competition in Deposits - Management acknowledged increased competition in the market but emphasized their commitment to rational pricing and maintaining strong client relationships [63][64] Question: Future Guidance on ROCI - Management confirmed that the target of a sustainable 14% ROCI is a guiding principle, with ongoing efforts to improve net income performance [57][59]

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] - Adjusted net income, excluding acquisition-related costs, was $28.4 million or $0.53 per diluted share [5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher year-over-year [7] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [8][18] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to the acquisition of Bancorp Financial [9] - Tax equivalent loan yields increased by 67 basis points compared to the previous quarter, driven by higher yielding consumer credits from the Evergreen PowerSport portfolio [9] - Non-interest income increased by $2.1 million year-over-year, with wealth management fees rising by 26.1% [13] Market Data and Key Metrics Changes - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [8] - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [9] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet [15] - A 17% increase in the common dividend reflects confidence in the company's performance [25] - The company is open to acquiring additional deposits to replace higher-cost funding sources [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the Evergreen acquisition and noted strong pipelines in various sectors [25][86] - The company anticipates maintaining a higher reserve level due to the nature of the PowerSport portfolio, with expectations of charge-offs stabilizing around 30 basis points [90][91] Other Important Information - Non-interest expense increased by $19.7 million compared to the previous quarter, largely due to acquisition costs [15] - The company has completed systems conversions related to the Evergreen acquisition [19] Q&A Session Summary Question: Can you expand on the potential runoff of exception price deposits? - The company has a couple hundred million dollars in market-priced funding and aims to return to more traditional deposit types over the next 6 to 18 months [27][28] Question: What is the focus on future originations in PowerSport? - The focus remains on originating in all tiers, with a historical emphasis on the top two tiers [30][31] Question: What is the outlook for loan growth? - The company expects low to mid-single-digit growth heading into 2026, with strong pipelines in various sectors [86] Question: What are the expectations for charge-offs moving forward? - Charge-offs are expected to stabilize around 30 basis points, with management optimistic about credit quality [55][90] Question: What is the company's stance on potential M&A? - The company is ready for additional acquisitions, particularly focused on deposit-heavy opportunities [72]

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% [3][4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share, reflecting a significant impact from the acquisition of Bancorp Financial [4][5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher than the same period last year [5][6] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [6][15] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to $1.19 billion of loans acquired from Bancorp Financial [7] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [11] - Non-interest expense rose to $19.7 million, with $11.8 million attributed to acquisition costs [12][20] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [7] - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [6] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet post-acquisition [12][22] - A 17% increase in the common dividend reflects confidence in the company's performance [22] - The company aims to maintain core expense growth around 4% into 2026, excluding acquisition impacts [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the successful acquisition and integration of Evergreen [22] - The company anticipates a stable loan growth outlook, with expectations of low to mid-single-digit growth heading into 2026 [80] - Concerns regarding credit quality were addressed, with management indicating that most classified assets are well-collateralized [64][68] Other Important Information - The company recorded $5.1 million in net loan charge-offs, primarily from the PowerSport portfolio [8][9] - The allowance for credit losses on loans increased to $75 million, reflecting the acquisition's impact [9] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated a couple hundred million dollars in market-priced funding, with a goal to return to legacy Old Second types of deposits over 6 to 18 months [25][26] Question: Future originations in PowerSport - The focus remains on originating across all tiers, with a historical emphasis on the top two tiers [27][30] Question: Loan growth outlook - Management expects low single-digit growth in 2025, with robust pipelines in various sectors [58][80] Question: Charge-off trajectory - Charge-offs were higher than expected, but management remains optimistic about the overall credit quality [47][48] Question: Additional M&A opportunities - The company is open to future acquisitions, particularly focused on deposit-heavy opportunities [66][68]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Net interest income rose to $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since the first quarter [3] - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [19][20] - Non-interest income increased to $99 million from $87 million, with capital markets contributing significantly [36] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast, Texas, and Colorado, indicating potential growth opportunities [5] - The loan pipeline in Texas grew from $800 million to $1.2 billion, with Florida and Atlanta also showing significant pipeline growth [20] Company Strategy and Development Direction - The company is focused on organic growth and recruiting efforts in response to market disruptions, rather than pursuing M&A opportunities [63] - Strategic planning is underway, considering deregulation and market opportunities, with a focus on enhancing the sales force [4][5] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit loan growth for the remainder of 2025, with potential acceleration into 2026 [19] - The company is optimistic about capitalizing on market disruptions and is focused on recruiting talented bankers [5][22] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin [6][7] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the merger's dilutive impact [8] Q&A Session Summary Question: Margin dynamics and future rate cuts - Management discussed the impact of higher accretion and the expectations for future rate cuts, indicating a potential deposit beta of around 27% [11][12][43] Question: Loan growth environment - Management guided for mid-single-digit growth, with a focus on commercial and industrial lending as the primary growth driver [19][20] Question: Credit quality and charge-offs - A significant charge-off was attributed to a specific credit, with management expressing confidence in the overall portfolio quality [27][28] Question: Capital management and buyback strategy - The company is maintaining a CET1 ratio of 11.5% and is considering share repurchases as part of its capital management strategy [29] Question: Non-interest income outlook - Management provided insights into the strong performance of correspondent banking services and projected a more stable run rate for non-interest income [36][37] Question: Future expense guidance - The company expects expenses to remain in the $345 million-$350 million range for the fourth quarter, with a focus on cost control [71]