Core Viewpoint - Columbia Banking System (COLB) is focusing on relationship deposits, funding mix shifts, and fee growth to protect its net interest margin (NIM) as the interest rate cycle changes [1] Group 1: NIM and Financial Performance - Columbia Banking's NIM improved to 3.84% in 3Q25 from 3.56% a year ago, with expectations of NIM being "just north of" 3.90% in 4Q25 and 1Q26 [2] - The bank's deposits are granular and diversified, with a focus on full-relationship funding and proactive repricing, targeting deposit betas around 50% for rate cuts to support NIM expansion [3][9] - Columbia Banking is expected to manage down $8 billion of inherited transactional loans over approximately eight quarters starting from 3Q25, reallocating towards relationship commercial and industrial (C&I) and owner-occupied commercial real estate (CRE) [5] Group 2: Strategic Initiatives and Synergies - The merger with Pacific Premier has increased cross-selling opportunities, generating over 1,200 referrals since closing, which has contributed to deposit inflows [4][9] - Management's near-term focus includes cost normalization after systems work in 1Q26 and achieving full synergy capture by 3Q26 [1] Group 3: Market Position and Competitors - Columbia Banking currently holds a Zacks Rank 3 (Hold), indicating a balanced outlook, with key points to monitor including the 1Q26 system conversion and quarterly NIM outcomes [6] - Key peers include East West Bancorp (Zacks Rank 2) and Zions Bancorporation (Zacks Rank 2), both of which are experiencing varying impacts on their NIM due to market conditions [7][8]

Financial Data and Key Metrics Changes - Revenue increased by over $16 million compared to the second quarter, driven by an 8 basis point improvement in margin and 5.4% annualized loan growth [4] - Provision for credit losses declined by approximately $4 million compared to the last quarter, supported by strong credit results and a release of $2.6 million from the Hurricane Helene Special Reserve [4] - Earnings per share on an operating basis reached $0.75, a 32% year-over-year improvement, with a return on assets of 1.33% and a return on tangible common equity of 13.6% [4] Business Line Data and Key Metrics Changes - All estates delivered positive loan growth, with significant contributions from C&I, Equipment Finance, and HELAC categories [5][8] - Deposits grew by $137 million, or 2.6% annualized, excluding seasonal public outflows, with DDA comprising a good portion of the growth [7] - Spread income grew by 14% annualized in the quarter, with net interest margin increasing by 8 basis points to 3.58% [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 80%, while the CET1 ratio remained flat at 13.4% [8][9] - The cost of deposits was pushed down to 1.97%, achieving a total deposit beta of 37% so far [7] - Non-interest income was $43.2 million, up $8.5 million from the previous quarter, with strong increases across most fee categories [10] Company Strategy and Development Direction - The company aims to be cautious and selective in lending to non-depository financial institutions, maintaining limited exposure [6] - Capital priorities include organic growth, dividend increases, and potential M&A opportunities, with buybacks being considered opportunistically [28] - The company is focusing on improving employee engagement and culture, ranking in the 92nd percentile for employee engagement compared to over 2,000 companies [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the remainder of the year, supported by strong loan growth and credit quality metrics [13] - The company anticipates continued operating leverage and profitability improvement in 2026, driven by margin expansion [55] - Management noted an increase in interest from sellers in the M&A space compared to previous quarters, indicating a more favorable environment for potential acquisitions [36] Other Important Information - The company redeemed $88 million of preferred stock, which lowered Tier 1 total capital and leverage ratio towards peer levels [9] - The allowance for credit losses moved down slightly to 1.19%, with a loan loss provision of $7.9 million for the quarter [12] Q&A Session Summary Question: Loan growth trends and pipelines - Management indicated strong loan growth, particularly in Florida, South Carolina, and North Carolina, with expectations for similar performance in Q4 [19][21] Question: Deposit beta guidance - Management expressed confidence in achieving a total deposit beta in the 40% range due to successful rate cuts and CD growth [22][23] Question: Capital deployment priorities - Capital priorities include organic growth, dividend increases, M&A opportunities, and buybacks being considered opportunistically [28] Question: Fee income and service charge income - Management noted that the increase in service charge income was due to better volume, with no unusual changes in fee structure [29] Question: Expenses and hiring efforts - Management expects a flat expense run rate for Q4, with a medium to long-term growth rate of 3% to 4% [33] Question: Credit quality and Navitas book - Management reported stable performance in the Navitas book, with expectations of losses normalizing around 1% in a typical environment [53] Question: Future profitability and operating leverage - Management anticipates continued operating leverage and profitability improvement in 2026, driven by margin expansion [55]

Financial Data and Key Metrics Changes - Revenue increased by over $16 million compared to the second quarter, driven by an 8 basis point improvement in margin and 5.4% annualized loan growth [3] - Operating earnings per share reached $0.75, reflecting a 32% year-over-year improvement, with a return on assets of 1.33% and a return on tangible common equity of 13.6% [3][4] - Provision for credit losses declined by approximately $4 million compared to the previous quarter, supported by strong credit results and a release of $2.6 million from the Hurricane Helene Special Reserve [3][4] Business Line Data and Key Metrics Changes - All business lines reported positive loan growth, with significant contributions from C&I, Equipment Finance, and HELAC categories [4][8] - Deposits grew by $137 million, or 2.6% annualized, excluding seasonal public outflows, with DDA comprising a significant portion of the growth [6] - Non-interest income increased to $43.2 million, up $8.5 million from the previous quarter, driven by strong performance across most fee categories [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 80%, while the CET1 ratio remained stable at 13.4% [8][9] - The cost of deposits was reduced to 1.97%, achieving a total deposit beta of 37% so far [6][10] - The net interest margin increased by 8 basis points to 3.58%, primarily due to lower cost of funds [10] Company Strategy and Development Direction - The company aims to be cautious and selective in lending to non-depository financial institutions, maintaining minimal exposure in that sector [5] - There is a focus on organic growth, with a recent 4% increase in dividends and potential M&A opportunities being considered [24][25] - The company is actively managing capital, having redeemed $88 million of preferred stock and paid down $100 million of senior debt [9][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the remainder of the year, supported by strong employee engagement and teamwork [13] - The company anticipates continued loan growth and a stable credit environment, despite some concerns in the broader credit market [4][5] - There is an expectation of operating leverage in 2026, driven by margin improvements and loan yield increases [42] Other Important Information - The tangible book value reached $21.59, reflecting a 10% year-over-year growth [4] - Credit quality remains strong, with net charge-offs at 16 basis points for the quarter [12] - The allowance for credit losses slightly decreased to 1.19% [12] Q&A Session Summary Question: Loan growth trends and pipelines - Management noted strong loan growth, particularly in Florida, South Carolina, and North Carolina, with expectations for similar performance in Q4 [16][17] Question: Deposit beta guidance - The company believes deposit beta could reach the 40% range due to successful rate cuts and CD growth despite lower rates [20][21] Question: Capital deployment priorities - Capital priorities include organic growth, dividends, M&A opportunities, and potential buybacks, with organic growth being the top priority [24][25] Question: Fee income expectations - Management indicated that core fee income is expected to stabilize, excluding one-time gains and fluctuations in unrealized equity gains [45] Question: Credit quality and Navitas book - Management reported stable performance in the Navitas book, with expected losses normalizing around 1% in a typical environment [40][41]

Financial Data and Key Metrics Changes - WSFS Financial Corporation reported core earnings per share of $1.13, core return on assets (ROA) of 1.29%, core pre-provision net revenue (PPNR) of $104.6 million, and core return on tangible common equity of 16.97%, all showing improvements from the prior quarter [5][6][14] - The core net interest margin expanded by 8 basis points to 3.88%, with total funding costs reduced by 15 basis points to 1.77% [6][7] - Year-over-year, net interest margin increased by 4 basis points despite absorbing 100 basis points of interest rate cuts [7] Business Line Data and Key Metrics Changes - Core fee revenue grew by 6% year-over-year, driven by a 19% increase in Wealth and Trust services [7] - Institutional Services and Bryn Mawr Trust Company of Delaware showed strong year-over-year growth, increasing deal flow and market share [8] - Client deposits declined by 1% linked quarter but increased by 4% year-over-year, with non-interest bearing deposits up 6% year-over-year [11][12] Market Data and Key Metrics Changes - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [12] - Total net credit costs increased to $17.6 million, with net charge-offs at $24.6 million, primarily due to a charge-off of a non-performing loan [12][13] Company Strategy and Development Direction - The company announced a 13% increase in the quarterly dividend to $0.17 per share and an additional share repurchase authorization of 10% of outstanding shares [15] - A medium-term target CET1 ratio of 12% was established, with a gradual glide path over two to three years [15][66] - The company aims to manage net interest margin through various tools, including optimizing wholesale funding and hedging programs [58][60] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainties, leading to postponed investments [40][42] - The overall credit quality remains stable, with no significant red flags identified in delinquency metrics [45] - Management expressed confidence in the ability to navigate the current environment and indicated that an update on full-year outlook will be provided in the second quarter [16][68] Other Important Information - The company returned $62.6 million of capital in the first quarter, including $53.8 million in buybacks and $8.8 million in dividends [14] - The capital ratios remain strong, with a CET1 of 14.1% and TCE of 8.63%, significantly above regulatory targets [14] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical not to provide updated guidance until mid-year due to the volatility of the environment [22][23] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was due to a one-off item and that the rest of the portfolio is performing as expected [26][28] Question: How should expenses be viewed going forward? - Management noted that the first quarter expenses were lower than the run rate and provided insights into one-time items affecting the expense line [33] Question: What is the outlook for commercial growth? - Management observed that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [40][42] Question: How are deposit beta expectations evolving? - Management exceeded their deposit beta goal of 40% and plans to continue pushing for higher rates [56][63] Question: What is the medium-term plan for the CET1 target? - Management outlined a two to three-year glide path to reach a CET1 target of 12%, depending on macroeconomic conditions [66][68]