Financial Data and Key Metrics Changes - The company achieved a net income of $21.9 million, translating to diluted earnings per share (EPS) of $1.13, with a return on average assets of 1.6% and return on average equity of 15.7% [12][13] - 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 [5][13] - Non-interest expenses decreased by $1.3 million compared to the prior quarter, contributing to an efficiency ratio improvement from 60.3% to 56.4% [6][16] 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 and effective relationship banking model [5][9] - 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 [6][15] - The company redeemed $32.5 million of subordinated debt, which is expected to reduce interest expenses going forward [13] Market Data and Key Metrics Changes - The company reported nominal net charge-offs and a decrease in classified loans by $1.7 million, indicating sound credit quality [10][17] - Non-accrual loans increased by $3.8 million, primarily due to one relationship in the commercial construction and development portfolio [10] - The loan-to-deposit ratio stood at 88%, providing sufficient liquidity to fund the loan pipeline [20] 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 portfolio [11][17] - The relationship banking model is emphasized as a differentiator in the market, allowing for high engagement and local decision-making [9][35] - The company is optimistic about future growth opportunities, particularly in the middle market space, following recent talent acquisitions [48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainties but expressed confidence in the bank's risk management strategies and capital position [11][22] - The company anticipates potential NIM pressure due to expected rate cuts but believes it can offset this through competitive pricing and strategic actions [28][52] - Overall, management is optimistic about the company's performance and growth prospects in both the short and long term [23] Other Important Information - The company reported a tangible common equity (TCE) growth to 8.8%, with tangible book value per share returning to pre-merger levels [19] - The investment portfolio yield remains competitive at 4.67%, with net unrealized losses decreasing as market rates declined [22] Q&A Session Summary Question: NIM trajectory with potential Fed rate cuts - Management indicated that while NIM may face pressure from rate cuts, competitive pricing strategies could help maintain current levels [27][28] Question: Competition landscape for loans and deposits - Management noted that competition varies by market, with both larger and similarly sized competitors impacting pricing [31][34] Question: Details on classified loans - The largest classified credits total approximately $20 million, with a mix of commercial real estate and other credits [42][44] Question: Lending focus and mix for future growth - The company plans to leverage its capacity in commercial real estate while enhancing its middle market lending capabilities through new talent [48]

Core Insights - BankUnited, Inc. reported improved profitability for Q3 2025, achieving net income of $71.9 million, or $0.95 per diluted share, with an annualized return on average assets of 0.82% [2][6] - The company achieved a net interest margin of 3.00%, an increase from 2.93% in the previous quarter, driven by a favorable funding mix and a decrease in interest expenses [6][14] - Total loans decreased by $231 million in Q3 2025, with a notable decline in residential loans by $173 million, while the mortgage warehouse lending segment grew by $83 million [6][10] Financial Performance - For the nine months ended September 30, 2025, net income reached $199.1 million, or $2.63 per diluted share, representing a 21% increase in diluted earnings per share compared to the same period in 2024 [2][10] - The company’s total assets were reported at $35.1 billion as of September 30, 2025, with total deposits remaining relatively flat, declining by $28 million quarter-over-quarter [15][17] - The average cost of total deposits decreased to 2.38% from 2.47% in the previous quarter, reflecting a proactive approach to reduce deposit pricing [6][14] Loan Portfolio and Asset Quality - The core commercial and industrial (C&I) and commercial real estate (CRE) portfolio segments saw a net decline of $69 million, with the CRE portfolio growing by $61 million and the C&I portfolio declining by $130 million [4][5] - The allowance for credit losses (ACL) was $219.9 million, representing 0.93% of total loans, consistent with the previous quarter [7][8] - The annualized net charge-off ratio for the nine months ended September 30, 2025, was 0.26%, with total criticized and classified loans declining by $3 million [6][7] Capital Position - The Common Equity Tier 1 (CET1) ratio was reported at 12.5% as of September 30, 2025, indicating a robust capital position [6][8] - Book value per common share increased to $40.30, reflecting an 8% year-over-year increase in tangible book value per share [6][8] Interest Income and Expenses - Net interest income for Q3 2025 was $250.1 million, an increase from $246.1 million in the previous quarter, despite a slight decrease in interest income [10][18] - The yield on interest-earning assets remained stable at 5.38%, while the average rate paid on interest-bearing deposits decreased to 3.40% [14][18]

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to shift the loan portfolio mix towards commercial and industrial (C&I) loans while maintaining strong growth in residential mortgages [34][36] - The company is considering opportunities for share buybacks and refinancing sub-debt, while also investing in business growth and technology [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The competitive landscape for liquidity remains challenging, impacting the ability to reduce funding costs significantly [7][30] - The company anticipates continued loan growth, although Q4 may see some seasonal moderation [34] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement metrics - Management acknowledged progress in asset quality but indicated that more work is needed, particularly in resolving non-accrual loans [18][19] Question: Capital and share repurchase authorization - Approximately $4 million remains in the current share repurchase program, with management open to future buybacks depending on stock price and market conditions [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming maturing time deposits [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although government shutdowns may impact SBA loan funding [35][36] Question: Interest recovery and FHLB advances - No significant interest recovery was noted in Q3, and FHLB advances were replaced with brokered deposits at higher rates [42][43]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, or EPS of $2.22 per diluted share for Q3 2025, reflecting continued momentum and confidence in future growth [4][5] - Total outstanding loan balances increased by 2.4% sequentially, adding nearly $1.2 billion over the past two quarters [5][9] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [5][22] Business Line Data and Key Metrics Changes - The core C and I loan portfolio grew by 1.4% quarter over quarter, while specialized lending portfolios showed slight increases, particularly in healthcare loans [10][11] - The commercial real estate (CRE) business increased by 4.2% quarter over quarter, with expectations for continued growth in outstanding balances [12] - Fee income grew by 3.6% sequentially, with a record quarter for investment banking revenue driven by municipal bond underwriting [7][8] Market Data and Key Metrics Changes - Assets Under Management (AUMA) reached over $122.7 billion, marking a 4.1% increase in the third quarter [20] - The company maintained strong capital levels, with TCE growing to 10.1% and CET1 reaching 13.6% [8] Company Strategy and Development Direction - The company aims to sustain loan growth momentum, with projections of 5% to 7% growth for the full year [25] - There is a focus on organic growth, with share repurchases and dividends as secondary uses of capital, while M&A opportunities are considered cautiously [36][39] - The launch of the mortgage finance business is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite competitive pressures and market disruptions [33][34] - The company anticipates that credit quality will remain strong, with expectations for low charge-offs and a healthy allowance for credit losses [15][26] - The management highlighted the importance of adapting to market conditions and maintaining a strong liquidity profile [6][22] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [8] - The combined allowance for credit losses is $328 million, representing 1.32% of outstanding loans, indicating a healthy reserve level [15] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures and market disruptions [31][33] Question: Capital allocation and M&A considerations - The company prioritizes organic growth, followed by share repurchases and dividends, while remaining open to M&A opportunities that provide strategic value [36][39] Question: Core margin trends and expectations - Management expects a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [43][44] Question: Mortgage finance business growth potential - The company anticipates significant growth in the mortgage finance business, with a target of $500 million in commitments by year-end and plans for aggressive growth in 2026 [46][48] Question: Fee income range and expense guidance - Management provided insights into the fee income range, indicating strong activity across various business lines, while also discussing expense growth and expectations for moderation in the future [51][56]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.83 for Q3 2025, an improvement compared to the linked quarter [5] - Net interest income increased nearly $4,000,000, while the net interest margin expanded by one basis point [6] - The efficiency ratio improved to 57.1% compared to 59.3% in the linked quarter [7] - The provision for credit losses declined over $9,000,000, with the allowance for credit losses standing at 1.11% of total loans [8][10] Business Line Data and Key Metrics Changes - Annualized loan growth was 8%, with significant growth in commercial real estate and commercial and industrial loan balances [12] - Non-performing loans declined nearly $2,000,000, comprising 58 basis points of total loans compared to 61 basis points at the end of the previous quarter [10] - Fee-based income experienced a 1% decline compared to the linked quarter, driven by lower lease income [17] Market Data and Key Metrics Changes - The loan to deposit ratio increased to 88% from 86% at the end of the previous quarter [20] - Deposit balances were relatively flat, with increases in money market and interest-bearing demand accounts offset by declines in brokered CDs and governmental accounts [21][22] Company Strategy and Development Direction - The company continues to develop its business organically while awaiting the right acquisition opportunities [24] - The focus remains on managing net interest income and net interest margin through the current interest rate cycle [24] - The company anticipates loan growth to be between 4% and 6% for 2026, depending on pay down timing and economic conditions [26] Management's Comments on Operating Environment and Future Outlook - Management noted a reduction in provision for credit losses to a more normalized rate for Q3 [24] - The company expects to achieve positive operating leverage for 2025 compared to 2024, excluding the impact of reduced accretion income [25] - Management highlighted the potential for increased refinancing activity if mortgage rates fall [66] Other Important Information - The tangible equity to tangible assets ratio improved by 27 basis points to 8.5% at quarter end [23] - The company plans to manage capital in preparation for potential M&A opportunities while supporting dividends [95] Q&A Session Summary Question: Clarification on criticized and classified loans - Management expects some criticized and classified loans to revert in the near term, estimating $35,000,000 to $55,000,000 in upgrades or payoffs [34] Question: Loan growth guidance for 2026 - Management indicated that loan growth guidance for 2026 is slightly below this year's guidance but aligns with historical growth rates [36] Question: Impact of rate cuts on margin - Management confirmed that each 25 basis point rate cut is expected to result in a three to four basis point decline in net interest margin [46] Question: Update on North Star portfolio - Management reported that the high balance accounts in the North Star portfolio are down to about $15,000,000 to $16,000,000, with expectations for a gradual decline in charge-offs [48] Question: Appetite for buybacks and M&A - Management expressed a priority on building capital for M&A opportunities while maintaining an active buyback program [95]

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations increased to $152.8 million or $0.81 per share, with an adjusted return on assets of 1.13% for the quarter [6][7] - Adjusted pretax pre-provision net revenue reached a record $224 million, up nearly 9% from the prior quarter [9] - Total adjusted revenue increased to $517 million, a rise of $41 million or 9% in the quarter [10] - Net interest revenue was up $46 million or 12%, driven by balance sheet growth and improved net interest margin [10][11] - Adjusted efficiency ratio improved to 56.5% [6] Business Line Data and Key Metrics Changes - Deposits increased by $3.4 billion, with core customer deposits up $3.1 billion due to the influx from the Industry acquisition [7] - Loans rose by $1.3 billion, with $1 billion attributed to the Industry acquisition and over $300 million in organic growth [7] - Adjusted non-interest revenue decreased by $4.7 million, primarily due to seasonal declines in mortgage banking revenue [12] Market Data and Key Metrics Changes - The net interest margin improved by six basis points to 3.46%, driven by improved securities yields and a decline in overall funding costs [11] - Loan yields were 6.37%, up three basis points due to added accretion, while securities yields improved by 32 basis points to 3.65% [11] Company Strategy and Development Direction - The company completed the acquisition of Industry Bank shares and integrated operations, aiming for growth in Central Texas and Georgia markets [5] - The focus remains on organic growth and potential inorganic opportunities, with a strong emphasis on maintaining a good capital level for future investments [41][96] - The company is confident in its performance and outlook for the markets, projecting continued growth through the end of the year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth machine, noting that the shorter time frame for the year-end guidance reflects clarity in expectations [21] - The company anticipates continued modest improvement in net interest margin through the end of the next year [11] - Management highlighted strong market activity and a solid pipeline supporting growth expectations [99] Other Important Information - The company reported a decline in tangible book value per share by only $0.12 to $22.82, largely offset by strong operating earnings [6] - The acquisition of Industry Bank shares resulted in an additional $143 million in tangible common equity relative to initial estimates [14] Q&A Session Summary Question: Can you talk about the drivers of the slightly lower revenue and loan growth guide? - Management indicated that the shorter time frame for the year-end guidance provides better clarity, and they expect good growth in the fourth quarter [21][23] Question: What sort of beta do you expect in the broker and time deposits as rates go down? - Management expects interest-bearing betas to reach about 50%, with total deposits between 30% and 40% [26][27] Question: Is there anything impacting DDA specifically as we go through the rest of the year? - Management noted that non-interest bearing deposits finished at 20.6%, consistent with their historical trends [32][33] Question: What should we think of as a good capital level or base capital level moving forward? - Management aims to be good stewards of capital, looking for opportunities for organic growth and potential acquisitions [41] Question: Any thoughts on loan pricing and competition in recent weeks? - Management acknowledged competitive pressures but noted that yields have been holding steady [107][108]

Financial Data and Key Metrics Changes - Wintrust reported a record net income of $216 million for Q3 2025, up from over $195 million in the previous quarter, representing an increase of almost 11% quarter over quarter [3] - Net interest income increased by $20 million from the second quarter to $567 million, driven by solid loan and overall balance sheet growth [4] - Total assets grew by $646 million to just under $70 billion [8] - Non-interest income totaled $130.8 million, up approximately $6.7 million compared to the prior quarter [10] - Non-interest expenses decreased slightly to $380 million from $381.5 million in the previous quarter, with improved efficiency ratios [10] Business Line Data and Key Metrics Changes - Total loans reached $52 billion at quarter end, up 11% year to date on an annualized basis, with loan growth of just over $1 billion [4][7] - Commercial real estate loans grew by $327 million, while the Wintrust Life Finance team added $252 million [13] - Non-performing loans decreased from $189 million to $163 million, reflecting strong credit quality [14] Market Data and Key Metrics Changes - Wintrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [5] - Deposit growth was $895 million during the quarter, representing a 6% increase over the prior quarter on an annualized basis [7] Company Strategy and Development Direction - The company remains focused on core deposit growth and maintaining a disciplined approach to underwriting, particularly in the Midwest markets [19] - Wintrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [19] - The company is exploring both organic growth and potential acquisitions, with a preference for organic growth in familiar markets [97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a stable net interest margin despite potential rate cuts, citing effective balance sheet management [32][61] - The overall credit environment is stable, with proactive measures in place to address any emerging credit challenges [17] - Management noted a sense of measured optimism among customers as they approach year-end [17] Other Important Information - The company has consistently grown tangible book value per share since becoming public and is on track to do so again in 2025 [11] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3 [12] Q&A Session Summary Question: Can you talk about the loan growth drivers and any NDFI exposure? - Management highlighted unique market positioning in Chicago, gaining market share from larger banks, and noted that NDFI exposure totals just over $2 billion, primarily in mortgage warehouse lines [25][31] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around $350, citing a balanced approach to deposits and loans [32] Question: What is the outlook for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [37] Question: Can you expand on the strategy to play offense in your markets? - Management emphasized the attractiveness of the Midwest markets and the focus on organic growth rather than expanding into faster-growing regions [38][39] Question: Are there any segments or industries where you are pulling back your appetite to lend? - Management stated they are not pulling back from any specific segments but are closely monitoring higher education and healthcare sectors [81] Question: What is the biggest risk to maintaining the NIM? - Management identified irrational competition as a potential risk but noted that the current environment remains rational [83]

Financial Highlights - Adjusted net income available to common shareholders reached $152.8 million[5], or $0.81 per diluted common share[6] - Adjusted pre-tax pre-provision net revenue (PPNR) was $224.1 million, an increase of 8.8% compared to the second quarter of 2025[5, 6] - Net interest margin improved to 3.46%, a linked quarter increase of 6 basis points[5, 6] - Total loans grew by $1.3 billion, including $1.0 billion through acquisition and $0.3 billion in net organic growth[6] - Total deposits grew by $3.4 billion, with core customer deposits up $3.1 billion[6] Acquisition and Expansion - Completed the acquisition of Industry Bancshares, Inc, adding approximately $4.1 billion in assets[6] - Converted First Chatham Bank and Industry Bancshares banks to Cadence systems and branding[6] Loan Portfolio - Total loans and leases increased $1.3 billion to $36.8 billion[10, 13] - Commercial and Industrial (C&I) loans represent 39.5% of total loans, totaling $14.5 billion[10, 14, 19] - Commercial Real Estate (CRE) loans represent 28% of total loans, totaling $10.4 billion[10, 20, 24] Credit Quality - Net charge-offs for 3Q25 were $23.6 million, or 0.26% of average net loans and leases on an annualized basis[27, 30] - Total nonperforming assets excluding government guaranteed assets were 0.41% of total assets[25, 30] Capital Strength - Total shareholders' equity was $6.1 billion[58, 60] - Common Equity Tier 1 capital was 11.5%[5, 58, 60] - Total Capital Ratio was 13.1%[5, 58, 60] Industry Bancshares Acquisition Update - Updated purchase accounting resulted in improved tangible common equity of $143 million and reduced goodwill of $133 million compared to initial estimates[64] - Recognized net deferred tax asset of $100 million, initially modeled at $20 million[61, 64]

Core Insights - AmeriServ Financial, Inc. reported a significant increase in net income for the third quarter of 2025, reaching $2,544,000, which is a 115.0% improvement compared to the same period in 2024 [1] - The company achieved a net income of $4,170,000 for the nine-month period ending September 30, 2025, reflecting a 56.3% increase in earnings per share from the previous year [1] Financial Performance - The net interest income for the third quarter of 2025 increased by $2.1 million, or 23.9%, compared to the third quarter of 2024, and for the first nine months of 2025, it increased by $4.8 million, or 18.2% [2] - The net interest margin improved to 3.27% for the third quarter of 2025, a 56-basis point increase, and 3.13% for the nine months, reflecting a 41-basis point increase [2] - Total average loans grew by $35.9 million, or 3.5%, in the first nine months of 2025, although there was a $12.7 million, or 1.2%, decrease in total loans since December 31, 2024 [3] Investment and Securities - Total investment securities averaged $242.9 million for the third quarter of 2025, a $4.4 million, or 1.8%, increase from the previous year [4] - The securities portfolio grew by $17.3 million, or 7.9%, since December 31, 2024, due to increased loan prepayment activity and improved security yields [5] Deposits and Borrowings - Total average deposits increased by $69.5 million, or 6.0%, in the first nine months of 2025, attributed to successful business development efforts [6] - Total interest expense decreased by $345,000, or 4.4%, for the third quarter of 2025, and by $1.1 million, or 4.7%, for the nine months compared to the previous year [7] Credit Losses and Non-Interest Income - The company recorded a provision for credit losses of $360,000 in the third quarter of 2025, a significant increase compared to a recovery in the same period of 2024 [8] - Total non-interest income increased by $198,000, or 4.7%, in the third quarter of 2025, but declined by $904,000, or 6.7%, for the first nine months compared to the previous year [8] Non-Interest Expense - Total non-interest expense increased by $243,000, or 2.1%, in the third quarter of 2025 but decreased by $1.4 million, or 3.9%, for the first nine months compared to 2024 [10] - Professional fees decreased significantly, contributing to the overall reduction in non-interest expenses for the nine-month period [10] Shareholder Information - The company declared a quarterly cash dividend of $0.03 per share, representing a 4.0% annualized yield based on the closing stock price [12] - As of September 30, 2025, the company had total assets of $1.46 billion and shareholders' equity of $114.6 million, with a book value of $6.94 per common share [11]

Financial Data and Key Metrics Changes - The net interest margin expanded by 11 basis points to 3.28% [5][10] - Customer fees, excluding net credit valuation adjustment, grew by $10 million [5] - Adjusted expenses declined by $1 million, leading to an improved efficiency ratio of 59.6% [5] - Diluted earnings per share was $1.48, down from $1.63 in the prior period [7] - The provision for credit loss was recorded at $49 million, with net charge-offs of $56 million, or 37 basis points of loans on an annualized basis [6][17] Business Line Data and Key Metrics Changes - Net interest income increased by $52 million, or 8%, compared to the third quarter of 2024 [9] - Customer-related non-interest income was $163 million, slightly down from $164 million in the prior period [11] - Adjusted customer-related non-interest income, excluding net CVA, was $174 million, representing a 6% increase versus the second quarter [11] - Average loans increased by 2.1% annualized over the previous quarter [13] - Average deposit balances were relatively flat, with a notable 11.5% reduction in average brokered deposits [13][14] Market Data and Key Metrics Changes - Average non-interest-bearing deposits grew by approximately $192 million, or 0.8% compared to the prior quarter [14] - Total borrowings declined by $1.8 billion during the quarter [15] - Non-performing assets remained low at 0.54% of loans and other real estate owned [16] Company Strategy and Development Direction - The company aims to continue producing positive operating leverage as revenue growth outpaces non-interest expense growth [19] - There is a focus on enhancing capital markets offerings, including real estate capital markets and investment banking advisory fees [11] - The company is open to M&A opportunities but prioritizes smaller deals that enhance market density [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the credit issues faced are isolated incidents and emphasized a strong credit history [24][96] - The outlook for net interest income is moderately increasing, supported by continued growth in loans and deposits [9][10] - Management expects to maintain a stable risk appetite despite recent credit challenges [96] Other Important Information - The common equity tier one ratio was reported at 11.3%, indicating a strong capital position [18] - The company has seen a 17% growth in tangible book value per share compared to the prior year [18] Q&A Session Summary Question: Can you talk about the isolated incident related to the charge-offs? - Management confirmed that the incident is isolated and has conducted a thorough review of the portfolio, finding no similar issues [22][23] Question: What is the outlook for net interest income? - The guidance includes expectations for fixed-rate asset repricing and loan growth, with a potential yield pickup of 2-3 basis points [31][32] Question: How has loan demand changed recently? - Loan spreads have improved slightly, and while there was some runoff in CNI, production has been up in most months this year [78][81] Question: What is the company's approach to M&A? - The company is open to smaller deals that enhance market presence but is not under pressure to pursue acquisitions [58][59] Question: How does the company view the NDFI portfolio? - Management believes that concerns regarding the NDFI portfolio are somewhat overblown, highlighting the safety of certain categories like capital call lines [106]