Financial Data and Key Metrics Changes - The company reported earnings of $0.73 per share for Q3 2025, with net interest income reaching a record $305 million, up 16% compared to Q3 2024 [7][8][9] - Total loans grew by 1% quarter-over-quarter and 3% year-over-year, with a 5.5% growth when adjusting for a loan sale completed in January [7][8] - The CET1 capital ratio increased by 30 basis points year-to-date, with an additional 13 basis points added in Q3 [5][21] Business Line Data and Key Metrics Changes - C&I loans grew by nearly $300 million in Q3 and by almost $1 billion year-to-date, leading the loan growth [8][12] - Core customer deposits increased by over $600 million in Q3, up 2% from Q2 and over 4% or $1.2 billion compared to the same period last year [8][13] - Non-interest income for Q3 was $81 million, a 21% increase from the prior quarter, driven by capital markets revenue and wealth fees [9][19] Market Data and Key Metrics Changes - The company experienced strong seasonal deposit inflows, with core customer deposits enabling a reduction in wholesale funding [8][13] - The overall wholesale funding sources decreased by 2% versus Q2 [13] Company Strategy and Development Direction - The company is focused on organic growth, enhancing customer relationships, and improving profitability through a strategic remix of its balance sheet [4][6][10] - Plans to take market share in commercial lending and deposit acquisition by hiring talented relationship managers in underpenetrated metro markets [10][14] - The company aims to continue reducing reliance on wholesale funding by growing low-cost core customer deposits [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy despite macroeconomic uncertainties, indicating strong momentum heading into 2026 [6][7] - The company expects to maintain a stable net interest margin and continue to grow net interest income by 14% to 15% in 2025, assuming further Fed rate cuts [17][66] Other Important Information - The company reported flat delinquencies and non-accruals at 34 basis points of total loans, indicating stable asset quality [9][24] - The allowance for credit losses increased by $3 million to $415 million, reflecting growth in commercial and business lending [22] Q&A Session Summary Question: C&I growth and future expectations - Management expects C&I growth to accelerate as more relationship managers come off non-compete agreements, with production up 12% and pipeline up 31% [32] Question: Fee income expectations - Management noted that Q3 fee income included a one-time asset gain, and while Q4 may see a decline, underlying capital markets and commercial production trends remain positive [34] Question: Return on average tangible common equity - Management indicated that the return on average tangible common equity is expected to continue improving, with a target of 15% in the near future [35] Question: Deposit costs and competition - Management clarified that the increase in deposit costs was due to seasonal factors and higher-end pricing accounts, not necessarily increased competition [41] Question: Future hiring plans - Management remains open to hiring quality relationship managers year-round, with no specific target but will be opportunistic based on market conditions [45][47] Question: Loan growth headwinds - Management acknowledged that while residential real estate is a headwind for balances, the purposeful runoff is beneficial, and they expect to offset it with increased commercial lending [52] Question: Margin outlook with potential rate cuts - Management believes that the margin will remain stable or slightly improve due to remixing strategies, despite potential fluctuations from market behaviors [64][66]

Financial Data and Key Metrics Changes - The company reported earnings of $0.73 per share for Q3 2025, with net interest income reaching a record $305 million, up 16% from Q3 2024 [7][9] - Total loans grew by 1% quarter-over-quarter and 3% year-over-year, with a 5.5% growth when adjusting for a loan sale completed in January [7][8] - The return on average tangible common equity improved to over 14%, a 250 basis point increase from the previous year [10][23] Business Line Data and Key Metrics Changes - Commercial and Industrial (C&I) loans grew by nearly $300 million in Q3, totaling nearly $1 billion year-to-date [8][12] - Core customer deposits increased by over $600 million in Q3, up 2% from Q2 and over 4% or $1.2 billion year-over-year [8][14] - Non-interest income for Q3 was $81 million, a 21% increase from the prior quarter, driven by capital markets revenue and wealth fees [9][20] Market Data and Key Metrics Changes - The company added nearly $1 billion in high-quality C&I loans year-to-date while reducing low-yielding mortgage balances [4][12] - Seasonal deposit inflows returned as expected, contributing to the growth in core customer deposits [13][14] - The company expects total bank loan growth of 5% to 6% for the year [12] Company Strategy and Development Direction - The company is focused on organic growth and deepening customer relationships, with a strategy to hire talented relationship managers in underpenetrated metro markets [10][11] - The management aims to take market share in commercial lending and deposit acquisition while maintaining a conservative credit culture [6][10] - The company plans to continue investing in strategic growth initiatives to enhance profitability and capital generation [3][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy despite macroeconomic uncertainties, indicating strong momentum heading into 2026 [6][7] - The company is monitoring risks related to the macro environment but believes its strategy positions it well for continued growth [6][7] - Management highlighted the importance of credit discipline and proactive portfolio management in maintaining asset quality [5][6] Other Important Information - The company added 13 basis points of CET1 capital in Q3, totaling a 30 basis point increase year-to-date [5][23] - Non-accrual loans decreased to $106 million in Q3, down from previous quarters, indicating stable asset quality [26] Q&A Session Summary Question: What happens when the remaining RMs come off their non-compete? - Management expects C&I growth to accelerate as more relationship managers become available, with production and pipeline both showing positive trends [34] Question: Can you discuss the fee income and expectations for Q4? - Management noted that Q3 included a one-time asset gain, and while Q4 may see a decline, underlying capital markets and commercial production remain strong [36][37] Question: How do you see the margin outlook with potential rate cuts? - Management believes there is an opportunity for margin improvement, with a stable outlook despite potential fluctuations [66][68] Question: What drove the modest increase in deposit costs in Q3? - Management attributed the increase to seasonal factors and higher-end pricing accounts, but remains comfortable with the overall yield [44][45] Question: What is the strategy for hiring additional relationship managers? - Management is open to hiring quality relationship managers year-round and will be opportunistic based on market conditions [48][49] Question: How does the company view the interplay between C&I growth and headwinds in other areas? - Management sees purposeful runoff in residential real estate as a headwind but expects to offset it with increased commercial lending [55] Question: What is the company's approach to expanding its footprint? - The focus remains on organic growth, with management evaluating opportunities for potential M&A as they arise [58] Question: What is the outlook for the lending pipeline? - The increase in the lending pipeline is primarily attributed to new hires and market share gains rather than borrower optimism [64]

Financial Data and Key Metrics Changes - The company reported earnings of $0.73 per share for Q3 2025, with net interest income reaching a record $305 million, up 16% compared to Q3 2024 [6][8] - Total loans grew by 1% quarter-over-quarter and 3% year-over-year, with C&I loans leading the growth, increasing by nearly $1 billion year-to-date [6][11] - The CET1 capital ratio increased by 30 basis points year-to-date, reaching 10.33% in Q3 [5][20] Business Line Data and Key Metrics Changes - C&I lending saw significant growth, with nearly $300 million added in Q3 alone, contributing to a year-to-date increase of nearly $1 billion [7][11] - Core customer deposits increased by over $600 million in Q3, up 2% from Q2 and over 4% or $1.2 billion compared to the same period last year [12][14] - Non-interest income rose to $81 million in Q3, a 21% increase from the prior quarter, driven by capital markets revenue and wealth fees [8][18] Market Data and Key Metrics Changes - The company experienced strong seasonal deposit inflows, with core customer deposits up 2% or $628 million from Q2 [7][12] - The overall wholesale funding sources decreased by 2% versus Q2, indicating a shift towards lower-cost core deposits [12][14] - The company expects total bank loan growth of 5% to 6% for the year, despite challenges in the CRE sector [11][45] Company Strategy and Development Direction - The company is focused on organic growth and deepening customer relationships, with a strategy to hire talented relationship managers in underpenetrated metro markets [9][10] - The strategic investments are aimed at enhancing profitability and capital generation while maintaining a conservative credit culture [5][9] - The company plans to continue refining its focus on commercial deposits and enhancing its consumer value proposition [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and deepen its customer base despite macroeconomic uncertainties [6][10] - The outlook for 2026 remains positive, with expectations for continued strong C&I growth and improved deposit production [30][31] - Management highlighted the importance of maintaining credit discipline and proactive portfolio management in the current economic environment [5][22] Other Important Information - The company reported flat delinquencies and non-accruals at 34 basis points of total loans, indicating stable asset quality [8][24] - The efficiency ratio improved to below 55%, reflecting positive operating leverage [19][20] - The company is preparing for product upgrades and enhancements in late Q4 2025 and into 2026 to attract and retain customers [12][14] Q&A Session Summary Question: What happens when the remaining RMs come off their non-compete? - Management expects C&I growth to accelerate as more relationship managers become available, with production up 12% and pipelines up 31% [30] Question: Can you discuss the fee income and expectations for Q4? - Management noted that Q3 included a one-time asset gain, and while Q4 may see a decline, underlying capital markets and commercial production trends remain positive [32] Question: How does the company view the margin outlook with potential rate cuts? - Management believes there is an opportunity for continued margin improvement, despite potential fluctuations due to market behavior [33][51] Question: What drove the modest increase in deposit costs in Q3? - The increase was attributed to seasonal factors and higher-end pricing accounts, but management remains comfortable with the overall deposit pricing [37] Question: What is the company's approach to hiring new relationship managers? - The company is open to hiring quality relationship managers year-round and will be opportunistic in seizing opportunities as they arise [40] Question: How does the company view the interplay between C&I growth and headwinds in other areas? - Management acknowledged that while RESI is a headwind in terms of balances, it is a purposeful strategy, and they expect to offset CRE payoffs with increased production in other areas [44]