Financial Data and Key Metrics Changes - For Q3 2025, the GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [18] - Adjusted operating net income for the quarter was $77.4 million or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [18] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [20] Business Line Data and Key Metrics Changes - C and I loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [13][14] - The wealth management business saw assets under administration (AUA) grow to $9.2 billion, including $1.4 billion acquired from Enterprise [15][27] Market Data and Key Metrics Changes - Demand deposit growth was 5% annualized in Q3, with demand deposits representing 28% of overall deposits [14] - The cost of deposits was reported at 1.58% [15] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with a successful systems conversion completed [4][7] - There is an emphasis on cross-selling deeper into the Enterprise customer base and retaining client-facing personnel [8][9] - The company plans to prepare for a core conversion scheduled for May 2026, which is expected to enhance technology infrastructure and support future growth [15][28] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are experiencing uncertainty due to factors like government shutdowns, tariffs, and inflation, but the client base remains resilient [11][12] - The company expects to build on solid Q3 results for improved growth and profitability in the future [16] Other Important Information - The company anticipates achieving 30% cost savings on the acquired Enterprise expense base by 2026 [27] - The tangible book value per share decreased by $2.17 or 4.5% for the quarter, but is up modestly over the year-ago metric [19] Q&A Session Summary Question: Can you quantify the C and I growth and discuss the loan pipeline? - C and I growth has been strong, particularly in lower middle markets, with a healthy loan pipeline that remains stable [36][38] Question: How is loan pricing currently? - The company aims for a spread above 200 basis points on C and I loans, with pricing around 6% [39] Question: What is the outlook on office credit and classified loans? - Management feels better about office credit than six months ago, with several larger problems resolved [43][45] Question: What are the expectations for loan growth next year? - The company anticipates low to mid single-digit loan growth, contingent on continued positive trends [47] Question: How does the margin guidance relate to potential Fed rate cuts? - Margin guidance remains stable regardless of Fed actions, with expectations for 4 to 6 basis points of expansion [54] Question: What are the plans for the securities portfolio? - There are no immediate plans to restructure the securities portfolio, which is viewed as stable [55] Question: Can you provide details on new non-accruals? - The increase in non-accruals is primarily due to three loans, with no significant loss exposure expected [57][58] Question: What is the strategy regarding capital and buybacks? - The company is comfortable with a CET1 ratio around 12% and is open to buybacks if growth remains in the low to mid single-digit range [99][102]