Financial Data and Key Metrics Changes - Commercial loan commitments increased to $808 million from $659 million year-over-year, but loan outstandings contracted by $41.1 million compared to a growth of $163.5 million in the prior year [2] - Deposits rose significantly by $635.5 million during the quarter, primarily due to a seasonal increase in public funds deposits of $473.2 million [2] - Reported net interest margin (NIM) for the quarter was 3.17%, slightly down from 3.20% in the previous quarter, while core NIM expanded by nine basis points to 3.33% [4] - Non-interest income increased by $1.8 million or 8.8% compared to the third quarter of 2024 [4] - Non-interest expense rose by $2.1 million or 4.4% compared to the third quarter of 2024, driven by compensation costs and other expenses [5] Business Line Data and Key Metrics Changes - The provision for credit losses recorded was $517,000, with an average ratio of 1.28% at September 30, consistent with June 30 [4] - Net charge-offs for the core NIM were $480,000, annualized at three basis points [4] Market Data and Key Metrics Changes - The company expects $75 million to $100 million of outflows of public funds per month in the fourth quarter, continuing into the first quarter [10] - Competition for deposits remains fierce, particularly in the certificate of deposit (CD) market, with a couple hundred million dollars of CDs maturing each quarter [22][24] Company Strategy and Development Direction - The company plans to maintain a flat loan growth compared to December 31, 2024, while expecting net interest income growth of 12 to 14% compared to 2024 [5] - The company is focused on internal initiatives for efficiency and digital improvements, with no immediate plans for significant M&A activity [32] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the provision for credit losses will be event-driven, influenced by loan changes and economic-related assumptions [6] - The outlook for core NIM is expected to remain relatively flat, with strong new loan yields around 7% [12] - The company is cautious about the impact of potential Fed rate cuts, expecting minimal immediate effects on net interest income and NIM [25] Other Important Information - The company reported a non-interest expense of $100 million for 2024, with an expected growth of approximately 2 to 3% for 2025 [6] - The guidance for income taxes remains unchanged at 20 to 20.5% based on current statutory rates [6] Q&A Session Summary Question: What is the outlook for public funds commercial deposit inflows? - The company expects normal seasonal outflows of $75 million to $100 million per month in the fourth quarter, continuing into the first quarter [10] Question: Can you provide more details on the NIM outlook? - Core NIM is expected to be relatively flat, with new loan yields around 7% [12] Question: What is the status of the loan pipeline? - The loan pipeline is healthy, with expectations for some growth in the fourth quarter, contingent on prepayment activity [14] Question: How much of the loan book is floating rate? - Approximately one-third of the loan book remains floating rate [26] Question: What is the company's approach to capital deployment and buybacks? - The company plans to maintain buyback activity around $6 to $7 million per quarter, with flexibility based on earnings growth [29] Question: What is the company's appetite for M&A? - The appetite for M&A remains unchanged, with a focus on internal initiatives rather than pursuing acquisitions at this time [32]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Loan production rose to nearly $3.4 billion, with moderate growth in both loans and deposits [3] - Net interest income reached $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 - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [18] - The pipeline for loans in Texas increased from $800 million to $1.2 billion, indicating strong growth potential [19] - Non-interest income was $99 million, up from $87 million, with capital markets contributing significantly to this growth [32] Market Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 67% since the first quarter of the year [3] - The company identified approximately $90 billion of overlapping deposits in the Southeast, Texas, and Colorado markets that are currently consolidating [5] Company Strategy and Development Direction - The company is focused on capitalizing on market disruptions and is actively recruiting bankers to support organic growth in 2026 [5][19] - Strategic planning is underway, considering deregulation and opportunities in the banking landscape [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in net loan growth accelerating over the next few quarters, despite some challenges in the market [3][18] - The credit team forecasts charge-offs to land around 10 basis points for the year, indicating stable credit metrics [4][8] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin by approximately four basis points [6][8] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the dilutive impact of the Independent Financial merger [8] Q&A Session Summary Question: Can you walk us through the excess accretion and margin dynamics? - Management explained that higher accretion was seen in July, with expectations for a decrease in the following months due to early payoffs of loans [11][12] Question: What is the outlook for loan growth given market dislocation? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on commercial and industrial lending [18] Question: How do you feel about the rest of the credit portfolio apart from the large charge-off? - Management confirmed that the charge-off was related to a specific credit and that the rest of the portfolio remains stable [25] Question: What is the optimal CET1 ratio and capital management strategy? - Management indicated a preference for maintaining CET1 in the 11% to 12% range, with flexibility for share repurchases [26] Question: Can you quantify the impact of accretion on future margins? - Management noted that the expected accretion for the next quarter would be lower, impacting the overall margin guidance [46][49]

Financial Data and Key Metrics Changes - Core pre-tax, pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61, representing a 110% year-over-year increase [10] - Reported NIM increased to 3.01%, with a slight adjustment to 2.98% when excluding prepayment fees and purchase accounting [10][12] - Total deposits increased by approximately $320 million from the previous quarter [10] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [7] - Loan originations, including new lines of credit, reached $535 million, with a weighted average rate of approximately 6.95% [7] - Core deposits increased by $1 billion year-over-year, with a strong focus on growing the deposit portfolio [4] Market Data and Key Metrics Changes - Non-performing assets (NPAs) were up slightly but represented only 50 basis points of total assets, which is favorable compared to peers [4] - The credit side loans declined by approximately $30 million linked quarter, and loans 30 to 89 days past due decreased by 33% [11] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [8][38] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [8] - The company aims for significant NIM expansion in 2026 based on loan repricing opportunities and organic growth [14][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects to resolve legacy NPAs in the fourth quarter [22] - The company anticipates a relatively flat balance sheet for the remainder of the year, with growth in business loans expected [15] - Management believes the industry is in the later innings of the current credit cycle, with a strong local economy supporting stability [49] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million recovery from a past fraud case [11][47] - The common equity tier 1 ratio grew to over 11.5%, and the total capital ratio increased to over 16% [11] Q&A Session Summary Question: Inquiry about charge-offs related to NPAs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with no multifamily loans involved [21][22] Question: Expectations on multifamily payoffs and future prepayments - Management indicated that while there were significant payoffs this quarter, future prepayments are expected to normalize [24] Question: Discussion on normalized charge-offs in the context of new business verticals - Management stated that the guidance for charge-offs was around 20-30 basis points, with current levels at 31 basis points, and expects to return to historical levels over the next couple of quarters [30][31] Question: Thoughts on deposit betas amid potential rate cuts - Management expressed optimism about maintaining deposit costs and passing on rate cuts effectively, with current deposit costs in the low 190s [34][35] Question: Strategic alternatives including M&A considerations - Management emphasized a focus on organic growth and deploying excess liquidity rather than pursuing M&A at this time [38][45]

Financial Data and Key Metrics Changes - Core pre-tax, pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61, representing a 110% year-over-year increase [10] - Reported NIM increased to 3.01%, with a significant increase in the spread between loans and deposits following the Fed rate cut [10][5] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [7] - Loan originations, including new lines of credit, increased to $535 million, with a weighted average rate of approximately 6.95% [7] - Core deposits increased by $1 billion year-over-year, with total deposits up approximately $320 million from the prior quarter [4][10] Market Data and Key Metrics Changes - Non-performing assets (NPAs) were up slightly but represented only 50 basis points of total assets, which is favorable compared to peers [4] - The company maintained a strong liquidity position with a core deposit-funded balance sheet [4] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [8][38] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [8] - The company aims for NIM expansion in the fourth quarter and significant opportunities in 2026 based on loan repricing [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects resolution of legacy NPAs in Q4 [22] - The company anticipates a gradual improvement in NIM due to reduced deposit costs and stable loan yields [12][13] - Management believes the industry is in the later innings of the credit cycle, with a strong local economy and no significant stress expected [49] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million fraud recovery [11][46] - The common equity tier 1 ratio grew to over 11.5%, and total capital ratio increased to over 16% [11][12] Q&A Session Summary Question: Inquiry about charge-offs related to non-performing loans - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with no multifamily loans involved [21][22] Question: Expectations on multifamily payoffs and future prepayments - Management indicated that while there were significant payoffs this quarter, future prepayments are expected to normalize [24] Question: Discussion on normalized charge-offs and future expectations - Management stated that charge-offs are currently at 31 basis points and expect to return to historical levels as new businesses are built out [30][31] Question: Insights on deposit betas with potential rate cuts - Management noted that gradual rate cuts would help maintain deposit costs, with current costs in the low 190s [34][35] Question: Thoughts on M&A and strategic alternatives - Management emphasized a focus on organic growth and deploying excess liquidity rather than pursuing M&A at this time [38][45] Question: Discussion on stock repurchases given capital ratios - Management confirmed that discussions on stock repurchases have begun, with a focus on deploying capital effectively before considering buybacks [44][45]

Financial Data and Key Metrics Changes - Core earnings power showed significant growth with pre-tax, pre-provision income of $54.4 million in Q3 2025, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61 per share, representing a 110% year-over-year increase [9] - Reported NIM increased to 3.01%, with a notable increase in the spread between loans and deposits by approximately 10 basis points following the Fed rate cut [9][12] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3 2025, compared to $110 million in Q2 2025, with year-over-year growth exceeding $400 million [6] - Loan originations, including new lines of credit, reached $535 million, with a weighted average rate of approximately 6.95% [6] - Core deposits increased by $1 billion year-over-year, with total deposits up approximately $320 million from the prior quarter [4][9] Market Data and Key Metrics Changes - Non-performing assets (NPAs) increased slightly but remained low at 50 basis points of total assets, which is favorable compared to peers [4] - The company maintained a strong liquidity position with a core deposit-funded balance sheet, allowing it to capitalize on lending opportunities [4][7] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [7][33] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [7] - The company aims for continued NIM expansion, with expectations for significant opportunities in 2026 based on loan repricing [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects to resolve legacy NPAs in Q4, projecting a stable NPA range [19][20] - The outlook for the credit cycle is cautiously optimistic, with expectations of muddling along rather than entering a significant stress environment [40] - Management anticipates a path to a structurally higher NIM and enhanced earnings power over time, with targets of 3.25% and 3.50% NIM in the future [12][13] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million fraud recovery from a legacy issue [10][38] - The company is considering stock repurchases as capital ratios improve, with a focus on deploying capital effectively [36][37] Q&A Session Summary Question: Inquiry about NPA formations and charge-offs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with expectations for resolution of legacy NPAs in Q4 [19] Question: Expectations on charge-offs normalization - Management indicated that normalized charge-offs were expected to be around 20 to 30 basis points, with current levels at 31 basis points [25][27] Question: Market appetite for multifamily products - Management noted that there was no significant differentiation in refinancing between market rate and rent-regulated multifamily loans, with a high percentage of loans being refinanced [28] Question: Expectations on deposit betas with potential rate cuts - Management expressed confidence in maintaining deposit costs while growing deposits, with expectations of similar deposit betas in future rate cuts [29][30] Question: Thoughts on M&A and strategic alternatives - Management emphasized a focus on organic growth and deploying excess liquidity, while remaining open to maximizing shareholder value [33][34] Question: Discussion on stock repurchases - Management confirmed that discussions on stock repurchases have begun, with a focus on balancing capital deployment and maintaining a strong capital position [36][37]

Financial Data and Key Metrics Changes - Core pre-tax pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million a year ago, indicating significant growth [6] - Core EPS for Q3 was $0.61 per share, representing a 110% year-over-year increase [14] - The reported NIM increased to 3.1% in Q3, marking a continuous increase for six consecutive quarters [14][7] - Total deposits increased by approximately $320 million from the previous quarter [15] Business Line Data and Key Metrics Changes - Business loans grew by over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [8] - Loan originations, including new lines of credit, increased to $535 million [8] - The weighted average rate on new loan originations was approximately 6.95% [8] Market Data and Key Metrics Changes - The company has a strong loan pipeline currently standing at $1.2 billion, with a weighted average rate between 6.56% and 6.75% [9] - Core deposits increased by $1 billion year-over-year, reflecting strong inflows across the branch network [6] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while maintaining a strong liquidity position [12][49] - A new branch was opened in Manhattan, with plans for additional locations in New Jersey and Long Island [11] - The company aims for continued NIM expansion, with expectations of reaching mid to high 3% in the medium to long term [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality, with NPAs at 50 basis points of total assets, and a positive outlook for resolving legacy NPAs [29] - The company anticipates more substantial NIM expansion in Q4 2025, driven by reduced deposit costs and maintained loan yields [17] - Management believes the industry is in the later innings of the credit cycle, with expectations of a gradual improvement in the operating environment [63] Other Important Information - The company reported a $1.5 million positive benefit from a fraud recovery related to Legacy Bridge [15][61] - The common equity Tier one ratio grew to over 11.5%, providing a competitive advantage [16] Q&A Session Summary Question: Regarding NPA formations and charge-offs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied real estate, with no multifamily-related charge-offs [28] Question: Expectations on multifamily payoffs - Management indicated that while there were significant payoffs this quarter, future paydowns would normalize [30] Question: Thoughts on normalized charge-offs - Management expects charge-offs to stabilize around 20 to 30 basis points, with new business lines not contributing to increased charge-offs [36] Question: Market appetite for multifamily products - Management noted no significant differentiation in refinancing between market rate and rent-regulated multifamily loans [40] Question: Expectations on deposit betas with potential rate cuts - Management indicated that gradual rate cuts would help maintain deposit costs, with expectations of similar reductions in future rate cuts [42] Question: Thoughts on stock repurchases - Management is considering stock repurchases, especially as capital ratios are strong and the CRE concentration ratio has improved [55] Question: Industry credit cycle outlook - Management believes the industry is in the later innings of the credit cycle, with expectations of a stable environment moving forward [63]

Core Insights - The SPDR S&P Regional Banking ETF (KRE) is a passive investment solution focused on the regional bank segment, offering thematic exposure to investors [2][7] - Launched on June 19, 2006, KRE has approximately $3.4 billion in assets under management (AUM) and tracks the S&P® Regional Banks Select Industry Index using a modified equal-weighted approach [3][8] - KRE provides diversified exposure with a bias towards mid-size regional banks, featuring an expense ratio of 0.35% and a dividend yield of about 2.40% [5][8] Fund Profile - KRE is categorized as a sector equity fund, specifically targeting the U.S. regional banking sector, and is sensitive to local credit cycles [7][8] - The fund has a standard deviation of 26.11 and an annualized volatility of 31%, indicating higher risk compared to the S&P 500 [14][13] - KRE's top 10 holdings account for 20.09% of the total, with an average market cap of $8 billion and a P/E ratio around 12x [19][20] Performance Metrics - KRE's 1-year total return is 0.32%, while its 5-year total return is 71.87%, indicating variability in performance [15] - The fund's performance over the past 5 years is better than its peers, but it has underperformed in the 1-year and 3-year periods [32][15] - KRE has a dividend growth rate of 2.28% over 5 years, which is lower than the median for all ETFs [6][33] Market Context - KRE is strongly correlated with the sector's average net interest margin and benefits from a steepening yield curve during Fed rate cuts [8][10] - The ETF is often used as a proxy for the domestic banking cycle and credit sentiment, with high short interest indicating its role as a hedging vehicle [16][12] - The fund's exposure to Non-Depository Financial Institutions (NDFI) loans has increased, impacting expected EPS growth and net interest margins [21][22] Comparison with Peers - KRE has a higher AUM of $2.87 billion compared to KBE's $1.43 billion and KBWR's $48.48 million, making it the most liquid among its peers [30][35] - All three ETFs have the same expense ratio of 0.35%, but KRE has a higher turnover rate of 42% compared to KBE's 22% and KBWR's 17% [37] - KRE's dividend yield is 2.72%, slightly higher than KBE's 2.64% but lower than KBWR's 2.87% [33]

Financial Data and Key Metrics Changes - The company achieved a net income of $21.9 million, translating to a diluted EPS of $1.13, with a return on average assets of 1.6% and return on average equity of 15.7% [9][12] - The net interest margin (NIM) increased to 4.11% from 4.07% in the previous quarter, reflecting prudent loan pricing and effective management of funding costs [3][9] - Non-interest expenses decreased by $1.3 million compared to the prior quarter, leading to an efficiency ratio improvement from 60.3% to 56.4% [4][11] Business Line Data and Key Metrics Changes - Loan growth was strong, with an annualized growth rate of 4.9% in the third quarter, supported by a solid pipeline [3][7] - Fee income as a percentage of operating revenue remained stable at 20.8%, with non-interest income increasing to $13.4 million from $12.9 million in the previous quarter [4][11] - The loan portfolio reached nearly $4 billion with an average yield of 6.58%, and loan interest increased to $66.0 million from $63.2 million [13][14] Market Data and Key Metrics Changes - Deposits increased by $17 million, with a loan-to-deposit ratio of 88%, providing sufficient liquidity for loan funding [14][15] - The cost of deposits declined slightly, and the company adjusted deposit pricing downward to align with market rates [15][16] Company Strategy and Development Direction - The company is focused on maintaining credit quality while pursuing prudent growth, with a proactive approach to managing risk in its loan portfolio [5][8] - The successful execution of last year's merger is seen as a key factor in the company's strong financial performance, with optimism for future growth [4][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainties but expressed confidence in the bank's risk management strategies and credit quality [6][8] - The company anticipates potential NIM pressure due to expected Fed rate cuts but believes it can offset this through competitive pricing and strategic actions [19][35] Other Important Information - The company redeemed $32.5 million of subordinated debt, which is expected to reduce interest expenses going forward [9][10] - The allowance coverage ratio was 1.21%, indicating adequate risk coverage in the loan portfolio [12] Q&A Session Summary Question: NIM trajectory with potential Fed rate cuts - Management indicated that while NIM may experience some downward pressure, competitive pricing and strategic actions could help maintain current levels [19][23] Question: Competition in loan and deposit pricing - Management noted that competition varies by market, with different competitors impacting pricing dynamics [21][22] Question: Details on classified loans - The largest classified loans total approximately $20 million, with a mix of commercial real estate and other credits [29][30] Question: Lending focus for next year - The company plans to focus on commercial real estate and middle-market opportunities, leveraging newly hired talent [31][32] Question: Tools to mitigate NIM compression - Management highlighted pricing adjustments and competitive strategies as key tools to manage NIM amid rate cuts [35][36]

Financial Data and Key Metrics Changes - The company reported a net income of $12.4 million or $1.59 per share, which is an increase of $0.14 per share from the previous quarter and $0.41 from a year ago [3][9] - The net interest margin (NIM) expanded for the sixth consecutive quarter to 4.1%, and return on assets increased by 10 basis points to 1.41% [3][4] - The efficiency ratio improved and is now below 60%, with revenues growing twice as fast as expenses [4][9] Business Line Data and Key Metrics Changes - Loans decreased by $58 million in the third quarter due to higher payoffs and paydowns, primarily from long-term customers selling their businesses or properties [4][5] - Deposits increased by 9% annualized in the third quarter, with a total increase of 17% over the last nine quarters [6][9] - Nonperforming loans increased in 2025, but charge-offs remain low, averaging about six basis points over the last six years [7][11] Market Data and Key Metrics Changes - The company expects loan growth to be more moderate at 1% to 2% in 2025, down from an earlier expectation of 4% to 6% [5][6] - The loan-to-deposit ratio is now 91%, positioning the company well for future loan growth [6][31] Company Strategy and Development Direction - The company maintains loan structure discipline and prioritizes risk-adjusted returns over growth [5][6] - There is a focus on building franchise value and leveraging acquisition experience as M&A activity accelerates nationwide [7][9] - The company has increased dividends per share by 36% and repurchased 17% of its shares outstanding while maintaining robust capital ratios [15] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are waiting for lower rates before proceeding with financing projects, impacting near-term growth [5][6] - The company is optimistic about maintaining or slightly increasing NIM despite potential Fed rate cuts [20][21] - Management expressed confidence in the company's future and ability to meet high standards, citing a strong senior leadership team with extensive experience [8][9] Other Important Information - Noninterest income for the third quarter was $3.7 million, in line with expectations, and is projected to remain stable in the coming quarters [14][15] - Noninterest expenses increased to $22.5 million, also in line with expectations, and are expected to remain stable [15] Q&A Session Summary Question: NIM trajectory and peak expectations - Management indicated that increased asset sensitivity is due to cash on hand, and they expect to keep NIM flat or grow a couple of basis points [20][21] Question: Loan growth guidance and pipeline comparison - Management noted a decline in new loan originations in Q3 but anticipates a healthier portfolio in Q4, with hopes for a strong first quarter if rate cuts occur [23][24] Question: Deposit competition and betas - Management stated that deposit betas are expected to be less than peers, and competition has eased compared to previous quarters, allowing for better retention of customers [29][30]

Core Viewpoint - IDFC First Bank has overcome the challenges posed by its microfinance portfolio, with expectations for improved net interest margins and steady growth in asset quality and credit costs [1][5]. Financial Performance - The bank's net interest margin (NIM) is currently at 5.59%, with expectations to exceed 5.8% in FY26 as fixed deposits reprice lower [8][13]. - The bank's gross and net NPAs have declined both year-on-year and sequentially, indicating a recovery in asset quality [5][10]. - Special Mention Account (SMA) numbers and slippages have consistently improved over the past six quarters, leading to a reduction in credit costs [2][5]. Deposit Growth - IDFC First Bank's deposit base has increased from ₹40,000 crore in December 2018 to ₹2.7 lakh crore, representing more than a sixfold rise [6][7]. - Annual deposit growth is approximately ₹45,000–50,000 crore, reflecting the trust built with customers [7]. CASA Ratio and Cost of Funds - The bank's CASA ratio remains robust at over 50%, supported by competitive savings rates, with a goal to stabilize it in the 45–50% range [9]. - The easing of deposit costs is expected to contribute positively to NIM and overall income growth [8][13]. Future Outlook - The bank anticipates that its microfinance book will stabilize by Q4 FY25, with growth resuming alongside the broader portfolio thereafter [12]. - The initial assessment of new Expected Credit Loss (ECL) norms and regulatory changes appears favorable, with a marginally positive impact expected [11].