Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.30 and core earnings per share of $0.35, with core earnings improving 55% year over year [3][4] - Net interest margin expanded by 10 basis points quarter over quarter, with GAAP net interest margin increasing to 2.64% and core net interest margin to 2.62% [3][4] - Net charge-offs totaled 7 basis points for the third quarter, improving 15 basis points from the second quarter [4] - The tangible common equity ratio remained stable at 8.01%, increasing 101 basis points from the third quarter of 2024 [4][17] Business Line Data and Key Metrics Changes - Core net interest income increased by $8.6 million, or over 19% year over year, driven by loan security yields [7] - Average non-interest-bearing deposits increased 5.7% year over year and 2.1% quarter over quarter [4][17] - The company retained 80% of loans scheduled to reprice at a weighted average rate of 6.65%, which is 222 basis points higher than the prior rate [9] Market Data and Key Metrics Changes - The company has grown deposits in Asian banking communities to $1.4 billion, representing an 11.3% compound annual growth rate since Q3 2022 [18] - The company holds a 3% market share in a $47 billion market, indicating significant growth opportunities [18] Company Strategy and Development Direction - The company focuses on improving profitability, maintaining credit discipline, and preserving strong liquidity and capital [3][6] - The asset repricing strategy is expected to drive further net interest margin expansion, with real estate loans expected to reprice approximately 147 basis points higher through 2027 [6][22] - The company is investing in its people and branches to drive core business improvements [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve earnings, with 2026 expected to present better opportunities than 2025 [37] - The company anticipates stable total assets for the remainder of 2025, with loan growth being market dependent [19] - Non-interest income is expected to benefit from a healthy pipeline of approximately $59 million in back-to-back swap loans scheduled to close by the end of the year [20] Other Important Information - The company maintains a strong liquidity position with $3.9 billion in undrawn lines and resources [17] - Uninsured and uncollateralized deposits represent only 17% of total deposits, providing a stable funding base [17] Q&A Session Summary Question: What is the expected NIM for next quarter? - Management indicated that the NIM was 2.68 at the end of September and may be slightly elevated but not as high as in Q3 [26][27] Question: What is the deposit beta expected for non-maturity deposits? - Management expects the deposit beta to closely mirror the Fed's actions, with a recent reduction of 20 to 25 basis points on a $1.8 billion portfolio of deposits [28] Question: Why not buy back stock at current levels? - Management is focused on maintaining dividends and keeping capital ready for future growth opportunities rather than stock buybacks [33][34] Question: Is there a timeline for achieving double-digit ROTCE or ROE? - Management indicated that achieving double-digit ROTCE could be possible by late 2027 [38]

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]