Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% and an adjusted return on tangible common equity of 19.3% [4][10] - Record revenue was achieved in Q3, driven by a robust net interest margin of 4.02% and record non-interest income, which represented 31% of total net revenue [4][8] - Tangible book value per share increased to $16.19, a 5% increase from the previous quarter and a 14% increase year-over-year [6][13] Business Line Data and Key Metrics Changes - Loan balances declined modestly by $72 million during the quarter, primarily due to lower production in specialty lending areas and an increase in construction originations [5][11] - Non-interest income reached a record high of $73.6 million, led by leasing and foreign exchange businesses, with higher syndication fees contributing to the increase [8][12] - Non-interest expenses increased due to higher incentive compensation tied to fee income, but core expenses remained well managed [9][12] Market Data and Key Metrics Changes - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [8][11] - The company maintained 21% of total balances in non-interest bearing accounts, focusing on growing lower-cost deposit balances [8] Company Strategy and Development Direction - The company expects loan growth to return to mid-single digits in Q4 2025, with strong commercial lending as the primary driver [15][30] - The integration of pending acquisitions, including Westfield and BankFinancial, is anticipated to enhance growth and efficiency, with a focus on expanding into new markets [15][17] - The company aims to maintain an industry-leading net interest margin and is preparing for potential rate cuts while managing deposit costs [15][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong performance in Q4 2025, with expectations for increased origination volumes and strong deposit growth [15][17] - Credit costs are expected to remain stable, with net charge-offs projected to be in the mid-20 basis points range [37] - The company is optimistic about its financial performance and the momentum heading into 2026, driven by the pending acquisitions [17][59] Other Important Information - The company has received regulatory approval for the Westfield transaction, expected to close in early November 2025 [15][17] - The allowance for credit losses (ACL) coverage increased slightly to 1.38% of total loans, reflecting a conservative approach to modeling potential losses [9][13] Q&A Session Summary Question: NDFI loan exposure details - The NDFI portfolio stands at approximately $434 million, primarily composed of traditional REITs and conservatively managed with no adversely rated credit [20] Question: Impact of rate cuts on net interest margin - Each 25 basis point rate cut is expected to exert about five basis points of near-term pressure on margin, with a gradual recovery as deposit costs adjust [23] Question: Loan growth expectations and verticals driving growth - Strong commercial lending is anticipated to drive growth, with specific verticals including Summit funding and commercial real estate projected to contribute positively [30] Question: Fourth quarter expense guidance - The increase in expenses for Q4 is primarily driven by higher forecasts from Bannockburn and Summit, with expectations for continued growth in those areas [34] Question: Capital management post-acquisitions - The company plans to assess capital ratios after the acquisitions and may consider buybacks if trading below tangible book value [39]

Core Insights - Richmond Mutual Bancorporation, Inc. reported a net income of $3.6 million, or $0.37 diluted earnings per share, for Q3 2025, marking a 42% increase from Q2 2025 and a 54% increase from Q3 2024 [1][2][3] Financial Performance - The growth in net income and diluted earnings per share was primarily driven by higher net interest income due to an expanded net interest margin [2] - Net interest income before the provision for credit losses increased by $536,000, or 5.0%, to $11.3 million in Q3 2025 compared to Q2 2025, and increased by $1.9 million, or 19.7%, from Q3 2024 [5][12] - The annualized net interest margin improved to 3.07% in Q3 2025, up from 2.93% in Q2 2025 and 2.60% in Q3 2024 [13][12] Income Statement Highlights - Interest income rose by $467,000, or 2.2%, to $21.8 million in Q3 2025 compared to Q2 2025, and increased by $1.6 million, or 7.7%, from Q3 2024 [6] - Interest expense decreased by $68,000, or 0.6%, to $10.5 million in Q3 2025 compared to Q2 2025, and decreased by $310,000, or 2.9%, from Q3 2024 [10] - Noninterest income increased by $218,000, or 20.2%, to $1.3 million in Q3 2025 compared to Q2 2025, but decreased by $27,000, or 2.0%, from Q3 2024 [15] Balance Sheet Summary - Total assets were $1.5 billion as of September 30, 2025, with loans and leases totaling $1.2 billion [12][18] - Total deposits increased by $24.3 million, or 2.2%, to $1.1 billion at September 30, 2025, compared to December 31, 2024 [24] - Stockholders' equity rose to $140.0 million at September 30, 2025, an increase of $7.2 million, or 5.4%, from December 31, 2024 [26] Credit Quality - Nonperforming loans and leases totaled $10.8 million, or 0.90% of total loans and leases, at September 30, 2025, compared to $6.8 million, or 0.58%, at December 31, 2024 [20] - The allowance for credit losses increased to $16.4 million, or 1.37% of total loans and leases outstanding, at September 30, 2025 [21] Management Commentary - The CEO expressed satisfaction with the third quarter results, highlighting the strength of the core banking model and the importance of customer care and community support amid economic uncertainties [3]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for the third quarter was $0.94, excluding merger-related charges, representing a 68% increase year-over-year [3][4] - Net income, excluding merger and restructuring expenses, was $90 million for the quarter [4][11] - The efficiency ratio improved by 10 percentage points year-over-year to 55% due to expense synergies from the Premier acquisition [4][12] - Net interest margin increased to 3.53%, up 58 basis points year-over-year [15][12] - Total assets reached $27.5 billion, a 49% increase year-over-year [12] Business Line Data and Key Metrics Changes - Fee income grew by 52% year-over-year, driven by organic growth across various businesses, particularly wealth management [3][12] - Total portfolio loans increased by 52% year-over-year, including $5.9 billion from the Premier acquisition and $594 million from organic growth [12][14] - Non-interest income for the quarter was $44.9 million, a 51.5% increase year-over-year [16] Market Data and Key Metrics Changes - Total deposits grew organically by more than $570 million year-over-year, reaching $21.3 billion [7][14] - Commercial real estate payoffs totaled $235 million in the third quarter, impacting loan growth [7][13] - The commercial loan pipeline stood at approximately $1.5 billion, with over 40% tied to new markets [7][8] Company Strategy and Development Direction - The company is focused on operational excellence to support long-term profitable growth and enhance shareholder value [3][4] - Plans to optimize the financial center network include closing 27 financial centers and opening new locations in Tennessee and Ohio [9][10] - The strategy emphasizes organic growth through loan production offices (LPOs) and expanding into new markets [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about mid-single-digit loan growth for 2025 despite headwinds from commercial real estate payoffs [8][20] - The company anticipates a rebound in net interest margin during the fourth quarter due to improved funding costs and loan growth [20] - Management highlighted strong customer satisfaction scores and successful integration of the Premier acquisition [6][3] Other Important Information - The company raised $230 million in Series B preferred stock to redeem Series A preferred stock and support general corporate purposes [18][19] - The effective tax rate is expected to be around 19.5% for the year [22] Q&A Session Summary Question: Loan growth and commercial real estate paydowns - Management noted strong loan production with $2.3 billion in new production this year, and expects mid-single-digit loan growth for the remainder of the year despite paydowns [25][27] Question: Margin expectations - Management confirmed expectations for 3 to 5 basis points of quarterly margin expansion, with no significant disruptions anticipated for 2026 [28][29] Question: Impact of branch closures on expenses - Management indicated that branch closures will provide a tailwind to expenses, allowing for potential reinvestment in technology and personnel [38][40] Question: Healthcare team growth potential - The healthcare team has closed about $250 million in loans and could potentially achieve $300 million to $500 million in loans annually [49] Question: Deposit competition - Management stated that deposit competition remains similar to previous quarters, with expectations for relief on deposit pricing due to commercial real estate payoffs [74] Question: Capital management and buyback plans - Management is focused on capital build and indicated that buybacks are less likely in the near term [61][66]

Core Insights - Shore Bancshares reported a net income of $14.3 million for Q3 2025, a decrease from $15.5 million in Q2 2025 and an increase from $11.2 million in Q3 2024 [1][9] - The company demonstrated resilience despite a decline in net income due to a significant marine loan write-off and softer noninterest income, while achieving growth in net interest margin and book value per share [3][9] Financial Performance - Net interest income for Q3 2025 was $48.7 million, up from $47.3 million in Q2 2025 and $43.3 million in Q3 2024, driven by an increase in interest income on loans [19][28] - The net interest margin (NIM) increased to 3.42% in Q3 2025 from 3.35% in Q2 2025, with loan yields rising by 6 basis points and funding costs decreasing by 6 basis points [20][9] - Noninterest income decreased to $7.7 million in Q3 2025 from $9.3 million in Q2 2025, primarily due to reduced mortgage banking revenue [22][9] Asset Quality - Nonperforming assets increased to $28.1 million, or 0.45% of total assets, in Q3 2025, up from 0.33% in Q2 2025, attributed to commercial real estate and consumer loans [13][9] - The allowance for credit losses (ACL) was $59.6 million, representing 1.22% of loans, slightly up from 1.21% at the end of 2024 [9][21] Balance Sheet Highlights - Total assets reached $6.28 billion as of September 30, 2025, a 0.8% increase from $6.23 billion at the end of 2024, primarily due to a $111 million increase in the loan portfolio [4][9] - Total deposits increased by $214.2 million to $5.53 billion in Q3 2025, driven by seasonal growth in municipal deposits [14][9] Capital Ratios - The tangible common equity ratio improved to 7.80% at September 30, 2025, compared to 7.17% at the end of 2024 [5][9] - Tier 1 and Total Risk-Based Capital Ratios were 10.82% and 12.88%, respectively, as of September 30, 2025 [5][9] Efficiency Metrics - The efficiency ratio for Q3 2025 was 61.00%, slightly up from 60.83% in Q2 2025 but significantly improved from 67.49% in Q3 2024 [26][9] - Non-GAAP efficiency ratio was 57.30% for Q3 2025, compared to 56.73% in Q2 2025 and 62.10% in Q3 2024 [26][9]

Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 5.7% quarter-over-quarter and 24.4% year-over-year [3] - Return on assets (ROA) improved to 1.11% from 0.87% in the same quarter last year [3] - Net interest income rose by $2.4 million, or 4.3%, from the prior quarter [6] - Net interest margin increased to 3.64% from 3.51% in the previous quarter [7] - Total capital ratios remain above well-capitalized thresholds, with the tangible common equity (TCE) ratio rising to 9.8% from 9.4% [8] Business Line Data and Key Metrics Changes - Total loan balances decreased by $5.7 million, despite an increase in loan originations [4] - Loan yields in the portfolio were 5.53%, up three basis points from the previous quarter [4] - Total deposits increased by $73 million, with non-interest-bearing deposits rising by $33.7 million [5] - Investment balances decreased by $33 million due to expected principal cash flows [5] Market Data and Key Metrics Changes - The average interest rate for new commercial loans was 6.67%, up 12 basis points from the previous quarter [16] - The deposit pipeline ended the quarter at $149 million, compared to $132 million in the second quarter [16] Company Strategy and Development Direction - The pending merger with Olympic Bank Corp is expected to enhance profitability and growth in the Puget Sound market [3] - The company aims to return to traditional loan growth rates of mid to high single digits in 2026 [25] - The focus remains on managing loan-to-deposit ratios, with a target of reaching 85% [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in credit quality despite economic volatility, noting no material impact on credit metrics [12] - The company anticipates continued deposit growth and a positive outlook for loan production in the upcoming quarters [17] - Management is closely monitoring the economic environment but sees no immediate threats to loan demand [27] Other Important Information - Non-accrual loans totaled $17.6 million, representing 0.37% of total loans, an increase from 0.21% in the previous quarter [9] - The company halted lost trade activity and did not purchase any securities in Q3 to preserve capital for the acquisition [6] Q&A Session Summary Question: What is the spot cost of deposits and NIM for September? - The spot rate on interest-bearing deposits was 1.87%, and the NIM for September was 3.66% [23] Question: How much opportunity is there to reduce rates on non-maturity deposits? - There is potential to reduce rates on approximately $1 billion in exception-priced deposits currently costing close to 3% [24] Question: What is the outlook for organic loan growth in 2026? - The company expects to return to mid to high single-digit growth rates in 2026, with positive net advances anticipated [25][26] Question: How has competition been trending in the markets? - Competition remains strong, with pricing competition on deposits varying by geography [42] Question: What are the capital priorities post-deal approval and integration? - The focus will be on preserving capital during the transaction costs associated with the merger, with potential for future buybacks to be evaluated later [62]

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]