Core Insights - SR Bancorp returned to profitability in Q4 2025, reporting GAAP net income of $823,000 ($0.10 per share), a significant recovery from a GAAP net loss of $3.0 million ($0.34 per share) in Q4 2024 [1][2] - Revenue reached $7.97 million, marking a 96.7% increase year-over-year, primarily due to improved asset quality and the absence of merger-related costs from the previous year [1][2] - The net interest margin narrowed to 2.90% from 3.22%, reflecting rising funding costs and competitive pressures in the deposit market [1][7] Financial Performance - Net income increased by $3.9 million compared to the prior year, driven by the completion of merger-related restructuring and normalization of taxes and credit provisions [5] - Adjusted net income (Non-GAAP) was $515,000, compared to a loss of $499,000 in the previous year [2][5] - Total deposits rose to $846.0 million, a 4.8% increase from $807.1 million in Q4 2024 [2][7] Business Overview - SR Bancorp operates as a community bank in New Jersey, offering a range of banking services including deposit accounts, residential and commercial mortgages, and business lending solutions [3] - The company's growth strategy focuses on market expansion, particularly following the acquisition of Regal Bancorp, which enhanced its commercial lending capabilities [3] Operational Highlights - Loan portfolio growth was robust, with net loans increasing by 8.9% year-over-year, driven by residential and multi-family loans [7] - Noninterest income improved significantly, moving from a loss in the prior period to a positive figure, as the company did not repeat last year's loss from security sales [6] - Noninterest expense rose by 3.3%, with higher salaries and benefits partially offset by lower data processing costs post-merger [8] Future Outlook - Management did not provide explicit forward guidance for fiscal 2026, highlighting ongoing challenges related to net interest margin pressure and rising funding costs [11] - Investors are expected to monitor the bank's core profitability and seek clarity on potential margin stabilization, with asset quality and deposit mix being key factors [12]

Financial Data and Key Metrics Changes - The company reported a net loss of $7.7 million for the second quarter, compared to a net income of $6.9 million in the first quarter [5][6] - Adjusted pre-provision net revenue was $3.6 million, representing a 12 basis point return on assets [6][21] - The net interest margin (NIM) for the second quarter was 1.68%, a slight increase from the previous quarter [17][21] Business Line Data and Key Metrics Changes - The company reduced its commercial real estate (CRE) held for sale loans by a total of $858 million during the second quarter [6][10] - New loan balances funded in the quarter amounted to $256 million, with an average yield of 7.18%, primarily in commercial and industrial (C&I) loans [8][10] - Non-performing loans remained stable at 35 basis points, and net charge-offs were low at $135,000 [8][24] Market Data and Key Metrics Changes - Assets under management at the end of the quarter were $5.3 billion, slightly up from the previous quarter [10] - Trust assets under advisement were stable at $1.2 billion [10] - Digital banking deposits surpassed $1 billion for the first time, representing 12% of total deposits as of June 30 [12] Company Strategy and Development Direction - The company is focused on reducing its CRE concentration and growing C&I loans, which is expected to result in a higher allowance for credit losses (ACL) over time [10][24] - The strategic initiatives include improving core funding and accelerating growth in private banking and wealth management [10][11] - The company aims to be fully exited from the held for sale CRE portfolio by the end of 2025 [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance despite the current net loss, citing strong core financial performance [6][27] - The company remains well-capitalized with a common equity Tier 1 ratio of 11.1% and a leverage ratio of 8.3% [12][25] - Management anticipates continued margin expansion and expects the NIM to exit 2025 between 1.8% and 2.2% [26] Other Important Information - The company experienced a modest gain from the June securitization of $481 million of CRE loans, which was more favorable than the earlier loan sale [15][17] - Customer service costs decreased to $12.9 million from $15.1 million in the prior quarter, primarily due to a reduction in MSR deposits [23][24] - The company is undergoing management changes, with searches for key executive positions ongoing [13][46] Q&A Session Summary Question: Optimization of the balance sheet and future sales - Management indicated a focus on reducing CRE concentration and stabilizing the balance sheet, with no immediate plans for further asset sales [31][33] Question: Private banking initiative and talent acquisition - Management expressed optimism about the private banking initiative, highlighting ongoing recruitment efforts and early successes in client acquisition [36][38] Question: Balance sheet contraction and future asset levels - Management expects the balance sheet to reach a trough by the end of the year, with potential for growth into 2026 [40][42] Question: Management turnover and filling key roles - Management acknowledged turnover as part of the transition and emphasized the need for new leadership to align with the company's strategic direction [45][46] Question: Plans for reducing high-cost deposits - Management plans to continue reducing high-cost deposits, with expectations for further reductions in the coming months [49][52] Question: Loan yields and cash position - Total loan yields exited the quarter just under 4.70%, and management is comfortable with the current cash position, anticipating stability moving forward [58][62]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for the second quarter was $0.91, excluding merger-related charges, representing an 86% increase year over year [5][14] - Net interest margin improved to 3.59%, a 64 basis point increase year over year [6][17] - Net income excluding merger and restructuring expenses was $87.3 million, compared to $29.4 million in the prior year [5][14] - Total assets increased by 52% year over year to $27.6 billion, driven by the Premier acquisition and organic growth [15] Business Line Data and Key Metrics Changes - Fee income grew by 40% year over year, totaling $44 million in the second quarter [8][18] - Organic loan growth was 6% year over year, with total commercial loans increasing by 7% [10][14] - The trust and securities brokerage business grew to $10 billion in assets under management [8] Market Data and Key Metrics Changes - Total deposits increased by 58% year over year to $21.2 billion, with organic growth of $849 million [17] - Organic deposit growth excluding certificates of deposit was more than 5% year over year [9] Company Strategy and Development Direction - The company aims to grow fee income as a percentage of total revenue and expand its presence in new markets, including Knoxville and Northern Virginia [9][11] - Strategic investments are being made in the healthcare sector to meet unique client needs [11][32] - The focus remains on executing the Premier acquisition and enhancing operational efficiency [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite potential headwinds from commercial real estate payoffs [71] - The company anticipates mid to upper single-digit loan growth for the remainder of 2025 [37][39] - Management expects to fund loan growth with deposit growth for the full year [9][17] Other Important Information - The efficiency ratio improved by 10 percentage points year over year to 55.5% [6] - The company has begun to see a rebound in deposits in July after a seasonal decline [17] - Regulatory capital ratios remain above well-capitalized standards [19] Q&A Session Summary Question: Increase in criticized loans and maintaining credit culture - Management noted that the increase in criticized loans is primarily due to regrading of acquired clients, but they expect improvements in the third quarter [28][30] Question: Capital deployment priorities - The company prioritizes dividends and organic growth, with M&A and buybacks being lower on the list [31][33] Question: Loan growth expectations - Management targets mid to upper single-digit growth, contingent on commercial real estate payoffs [37][39] Question: Branch rationalization - The company will evaluate branch profitability and may close some branches in the second half of the year [40][41] Question: Margin accretion assumptions - Management anticipates a drop in margin accretion in the third quarter but expects a rebound in the fourth quarter [46][63] Question: Deposit pipelines and growth - The company plans to launch a new deposit campaign and expects robust growth in the commercial space [78][80] Question: Preferred stock and subordinated debt refinancing - Management is evaluating options for calling preferred stock and refinancing subordinated debt that will reset soon [90][91]

Financial Performance - The company reported a net loss of $1,200,000 in Q2 2025, driven by higher provision expenses and write-downs on loans measured at fair value, compared to a net loss of $335,000 in Q1 2025 [3][7] - Loans held for investment increased by $41,000,000 (3.8%) during Q2 2025, totaling $1,130,000,000, and increased by $117,500,000 (11.7%) year-over-year [7][8] - Deposits increased by $35,500,000 (3.1%) in Q2 2025, totaling $1,160,000,000, with a year-over-year increase of $121,400,000 (11.6%) [8] - Net interest income rose to $12,300,000 in Q2 2025, an increase of $1,300,000 from Q1 2025 and $3,200,000 from the same quarter last year [9] - The net interest margin improved by 29 basis points to 4.06% in Q2 2025 [4][9] Business Line Performance - The company originated $157,000,000 in loans during the quarter and sold $66,800,000 of government guaranteed loan balances [8][10] - The government guaranteed loan origination platform originated $106,400,000 in new loans, with $67,900,000 being BOLT loans, showing stability from the previous quarter [6] - The trendsetter deposit portfolio has over 2,100 accounts, representing more than $200,000,000 in balances, with a growth of 60 households year-to-date [5] Market Performance - Nonperforming assets were 1.79% of total assets as of June 30, 2025, down from 2.08% as of March 31, 2025 [14] - The ratio of allowance for credit losses to total loans held for investment was 1.65% as of June 30, 2025, slightly up from 1.61% in Q1 2025 [15] Company Strategy and Industry Competition - The company is undergoing a comprehensive strategic review aimed at derisking unguaranteed SBA seven balances and positioning for long-term growth [3] - Management has increased collections and portfolio management staff to proactively manage credit quality amid economic challenges [16] - The company is evaluating its small loan program and related underwriting processes, with further announcements expected [17] Management Commentary on Operating Environment and Future Outlook - Management noted that asset quality trends in the SBA seven small loan program continue to decline due to rising interest rates and inflation [16] - The company remains committed to building household relationships and enhancing its community banking presence in Tampa Bay and Sarasota [18] - Future growth is expected to be supported by a strong community bank model in a desirable market [18] Other Important Information - The board has suspended common and preferred stock dividend payments and board of director fees to offset the impact of charge-offs [4] - The company is well-capitalized but is exploring strategic alternatives to enhance shareholder value [28] Q&A Session Summary Question: How would a 25 basis point cut in Fed funds affect NIM? - Management indicated that the company is asset sensitive and expects a slight temporary compression in NIM, but stability should return by the end of the next quarter [26][27] Question: Is there a probability of raising additional capital? - Management stated that the bank is currently well-capitalized and exploring options, but no imminent actions have been decided [28][29] Question: Is the company still making small SBA loans? - Management confirmed that they are focusing on core loans and evaluating the credit losses and profitability of the small loan program [76] Question: What is the current status of the BOLT loans? - Management noted that BOLT loan volume has been steady, but additional credit underwriting has been instituted to manage risks [52] Question: Are there geographic concentrations in credit issues? - Management clarified that credit issues are broad and not concentrated in specific geographic areas, although certain NAICS codes have been identified as problematic [55]

Core Viewpoint - Blue Foundry Bancorp reported a net loss of $2.0 million for Q2 2025, showing improvement compared to previous quarters, with a focus on net interest margin expansion and credit metrics stability [1][2]. Financial Performance - The net loss for Q2 2025 was $2.0 million, or $0.10 per diluted common share, compared to a loss of $2.7 million in Q1 2025 and $2.3 million in Q2 2024 [1]. - Net interest income for Q2 2025 was $11.6 million, an increase from $10.7 million in Q1 2025 and $9.6 million in Q2 2024 [11][17]. - The net interest margin increased by 12 basis points to 2.28% compared to Q1 2025 and by 32 basis points compared to Q2 2024 [11][17]. Loan Portfolio - Total loans increased by $89.6 million to $1.67 billion during the first half of 2025, with significant growth in consumer loans ($76.5 million) and commercial real estate loans ($33.5 million) [4][26]. - The multifamily loan portfolio decreased by $37.3 million [4][26]. - The allowance for credit losses was 0.80% of gross loans as of June 30, 2025, with non-performing loans totaling $6.3 million, or 0.38% of total loans [31][39]. Deposit Growth - Total deposits increased by $73.0 million to $1.42 billion since December 31, 2024, driven by increases in NOW and demand accounts and time deposits [7][26]. - Core deposits increased by $49.6 million, representing 48.4% of total deposits as of June 30, 2025 [7][26]. - Brokered deposits rose to $225.0 million from $155.0 million at the end of 2024 [26]. Non-Interest Expenses - Non-interest expenses decreased by $90 thousand compared to Q1 2025, primarily due to lower occupancy and equipment costs [10]. - Non-interest expenses for Q2 2025 were $13.5 million, an increase from $13.2 million in Q2 2024, driven by higher compensation and benefits expenses [13]. Capital and Shareholder Equity - Shareholders' equity was $321.3 million as of June 30, 2025, a decrease of $10.9 million from December 31, 2024, mainly due to share repurchases [26]. - The tangible equity to tangible assets ratio was 15.10% [26][39]. Market Strategy - The company is focusing on diversifying its loan portfolio and attracting full banking relationships with small- to medium-sized businesses [2][7]. - The strategy has contributed to core deposit growth, particularly among commercial customers [2].

Financial Data and Key Metrics Changes - In the fourth quarter, the company originated $29.4 million of loans held for investment, a 5% increase from $27.9 million in the prior quarter [5] - Loan principal payments and payoffs increased by 83% to $42 million from $23 million in the previous quarter [5] - The outstanding balance of loans held for investment decreased by $13.2 million from the previous quarter [9] - The net interest margin decreased by eight basis points to 2.94% compared to 3.02% in the prior quarter [9] - The average cost of deposits increased to 1.33%, up seven basis points, while the cost of borrowing increased to 4.58% [9] Business Line Data and Key Metrics Changes - Loans held for investment decreased primarily in multifamily, commercial real estate, and commercial business loans, partially offset by a small increase in single-family loans [6] - The company continues to see moderate activity in loans held for investment despite cautious behavior from real estate investors [6] - The weighted average rate of loans originated in June was 6.69%, compared to 5.16% for loans held for investment as of June 30, 2025 [10] Market Data and Key Metrics Changes - The company is monitoring commercial real estate loans, particularly those secured by office buildings, with a total exposure of $39.5 million, representing 3.8% of loans held for investment [7] - The company has approximately $117 million of loans repricing in September and $98 million repricing in December, both expected to increase by 15 basis points [11][27] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing the shift in monetary policy and the reversal of the inverted yield curve [13] - The strategy includes maintaining cash dividends and utilizing stock buyback programs as a responsible capital management tool [15] - The company is focused on improving operating efficiencies to lower operating expenses, with a projected run rate of $7.6 million to $7.8 million per quarter for fiscal 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that current credit quality remains strong, with nonperforming assets unchanged at $1.4 million [6] - The company is optimistic about the future, suggesting opportunities for expansion of the net interest margin in the upcoming quarters [12] - Management indicated that the mix of loans may shift based on performance, with a preference for a balanced portfolio of single-family and multifamily loans [19] Other Important Information - The company repurchased approximately 76,000 shares of common stock in June and distributed about $3.8 million in cash dividends to shareholders for the fiscal year [15][16] - The company has exceeded well-capitalized capital ratios, allowing for the execution of its business plan without complications [14] Q&A Session Summary Question: Has the recent uptick in prepayments shifted your view on portfolio mix or originations? - Management indicated that they prefer a 50% mix of single-family and multifamily loans but will adjust based on performance, noting recent strength in multifamily and commercial real estate [19] Question: Is there an efficiency ratio that you target? - Management stated that the current operating expense baseline can support future growth, and as the loan portfolio grows, the efficiency ratio is expected to improve over time [21] Question: Is the increased payout this quarter a function of increased competition? - Management responded that both pricing and structure are factors, with tighter underwriting characteristics contributing to credit quality [25] Question: What is the dollar value of loans repricing in the next two quarters? - Management confirmed approximately $117 million repricing in September and $98 million in December, with specific interest rates provided [27][28] Question: What is the seasonality of operating expenses? - Management noted that March typically sees higher operating expenses due to employer taxes, while July 1 sees merit increases impacting future quarters [28][29] Question: What is the range of the loan deposit ratio? - Management explained that a higher loan to deposit ratio is typical for their business model, with a recent reduction from the 120s to the mid-one teens [30][32]

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.36 for Q2 2025, an increase from $1.31 in the previous quarter and $1.19 year-over-year [4][23] - Adjusted return on assets was 1.31% and pre-provision ROAA was 1.72% [5] - Net interest income increased by $5.2 million to $153 million, with net interest margin expanding by six basis points to 4.21% [5][27] - Tangible common equity to tangible assets ratio was 9.42%, with a return on tangible common equity of 13.96% [9][34] - Non-interest income increased by $2.1 million to $21 million, driven by bank-owned life insurance and community development income [31] Business Line Data and Key Metrics Changes - Loan growth for the quarter was $110 million, with a year-over-year increase of approximately 4% [6][13] - The largest portion of loan growth came from commercial and industrial (C&I) loans, with new loan originations up 23% year-over-year [13][14] - Life insurance premium finance balances increased by $160 million or 16% year-over-year [17] - Specialty deposit verticals grew by $63 million for the quarter and $552 million or 18% year-over-year [20][21] Market Data and Key Metrics Changes - All geographic markets showed loan growth, with notable contributions from the Midwest and Southwest regions [18][19] - Client deposits grew by $73 million in the quarter and $778 million or roughly 7% year-over-year [19][20] - The company maintained a total loan to deposit ratio of 86% [7] Company Strategy and Development Direction - The company focuses on a diversified business model that capitalizes on higher growth markets while maintaining pricing discipline [4][5] - The strategic acquisition of a branch from First Interstate Bank is expected to enhance growth opportunities [10][35] - The management anticipates that ongoing economic improvements and M&A disruptions will lead to strong financial performance in the coming quarters [12] Management's Comments on Operating Environment and Future Outlook - Management noted that most clients are performing well, with sales and profits in line with 2024 expectations [11] - There is optimism for loan growth to exceed 4% in the latter half of 2025 due to pent-up demand and improved economic clarity [12][60] - The company is prepared to guide clients through economic uncertainties while taking advantage of M&A opportunities [12] Other Important Information - The company increased its dividend by $0.01 to $0.31 per share for 2025 [10][35] - Non-performing assets remained stable at 71 basis points of total assets, with a focus on managing credit quality [30] Q&A Session Summary Question: Expectations for fee income in the second half of the year - Management expects fee income to be similar to the first quarter, with potential contributions from SBA sales and other line items [39][40] Question: Outlook on expense levels - Management indicated that the current expense levels are expected to grow, influenced by merit increases and legal expenses related to non-performing loans [42][43] Question: Capital levels and branch acquisition impact - The branch acquisition is expected to normalize capital levels, with a focus on supporting growth and evaluating dividend policies [49][50] Question: Margin outlook for the next quarters - Management is optimistic about maintaining stable margins, with potential growth in net interest income dollars [54][56] Question: Loan growth expectations for the back half of the year - Management anticipates loan growth to increase to 5-7% in the latter half of the year due to improved economic conditions [60] Question: Team integration in Texas and growth strategy - A new team in Texas has begun operations without non-compete restrictions, focusing on low to mid-sized C&I businesses [75] Question: SBA loan sales strategy - The company is exploring SBA loan sales as a strategy to solidify fee income, with expectations for some level of gain in the third quarter [80]

Core Insights - NBT Bancorp reported a revenue of $171.81 million for the quarter ended June 2025, reflecting a year-over-year increase of 22.4% [1] - The earnings per share (EPS) for the same quarter was $0.88, up from $0.69 in the previous year, with an EPS surprise of +7.32% compared to the consensus estimate of $0.82 [1] Financial Performance Metrics - The net interest margin (FTE) was reported at 3.6%, slightly above the estimated 3.5% [4] - Total interest-earning assets averaged $13.96 billion, which was below the estimated $14.03 billion [4] - Net charge-offs to average loans were 0.1%, better than the estimated 0.2% [4] - Total noninterest income was $46.93 million, falling short of the $47.79 million estimate [4] - Insurance services generated $4.1 million, close to the estimated $4.13 million [4] - Retirement plan administration fees reached $15.71 million, exceeding the estimated $14.91 million [4] - Wealth management income was $10.68 million, slightly below the estimated $10.79 million [4] - Other income was reported at $3.5 million, significantly lower than the estimated $4.28 million [4] - Service charges on deposit accounts totaled $4.58 million, in line with the estimated $4.6 million [4] - Net interest income (FTE) was $124.88 million, surpassing the estimated $121.77 million [4] - Card services income was $6.08 million, above the estimated $5.88 million [4] Stock Performance - NBT Bancorp's shares have returned -1.2% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Ottawa Bancorp, Inc. reported a net income of $0.5 million for Q2 2025, a significant improvement from a net loss of $(0.2) million in Q2 2024, indicating a positive operational turnaround [1][4] - For the first half of 2025, net income reached $0.9 million, compared to $0.1 million in the same period of 2024, showcasing consistent growth [1][8] - The company has initiated a stock repurchase program, repurchasing 59,053 shares at an average price of $14.74 per share, reflecting a commitment to enhancing shareholder value [2][3] Financial Performance - Total interest and dividend income for Q2 2025 was $4.2 million, up from $4.0 million in Q2 2024, driven by an increase in the average yield on interest-earning assets, which rose by 0.32% to 5.10% [4][24] - Interest expense decreased to $1.6 million in Q2 2025 from $1.8 million in Q2 2024, resulting in a lower average cost of funds of 2.13% compared to 2.29% [4][24] - Net interest income after provision for credit losses increased to $2.7 million in Q2 2025, up from $2.2 million in Q2 2024 [4][24] Asset Quality - The loan portfolio, net of allowance, increased to $302.2 million as of June 30, 2025, from $301.7 million at the end of 2024, indicating stable loan growth [1][14] - Non-performing loans decreased to $3.8 million at June 30, 2025, down from $4.8 million at December 31, 2024, improving the ratio of non-performing loans to gross loans from 1.58% to 1.23% [1][5] - The allowance for credit losses on loans was $4.1 million, or 1.34% of total gross loans, at June 30, 2025, compared to $4.3 million, or 1.40%, at June 30, 2024 [6][26] Financial Condition - Total consolidated assets decreased by $6.9 million, or 1.9%, to $346.8 million as of June 30, 2025, primarily due to a reduction in cash and cash equivalents [11][12] - Total deposits decreased by $6.0 million, or 2.1%, to $276.9 million at June 30, 2025, with notable declines in various account types [15][21] - Stockholders' equity decreased to $39.6 million at June 30, 2025, down from $40.2 million at December 31, 2024, reflecting share repurchases and cash dividends [17][21] Management Commentary - The CEO expressed satisfaction with the operational results, highlighting a reduction in the cost of funds and an increase in asset yields, which contributed to the expansion of the net interest margin [3][4] - The company remains cautiously optimistic about lending activities despite sluggish residential loan activity due to higher mortgage interest rates [3][4]

Financial Data and Key Metrics Changes - Earnings per share increased for the fourth consecutive quarter, reaching $1.60, up by $0.09 compared to the linked quarter [16] - Net interest income (NII) expanded by $3.9 million, marking the fifth consecutive quarter of growth, while net interest margin (NIM) increased by seven basis points [17][18] - Capital ratios improved, with Tier one capital at 14.2% and total risk-based capital at 15.2% [24] Business Line Data and Key Metrics Changes - The loan portfolio is balanced between consumer (56% or $7.9 billion) and commercial loans (44% or $6.1 billion), with a significant portion secured by real estate [11][12] - Consumer loans predominantly consist of residential mortgages and home equity, with a weighted average loan-to-value (LTV) of 48% [11] - Commercial real estate loans account for $4 billion, representing 29% of total loans, with low vacancy rates supporting a stable market [12] Market Data and Key Metrics Changes - Hawaii's employment continues to outperform the broader U.S. economy, with visitor expenditures up 6.5% year-to-date and arrivals up 2.8% through May [8] - Residential real estate prices in Hawaii are stable, with single-family home prices rising modestly and condo prices down 0.5% year-to-date [8] Company Strategy and Development Direction - The company maintains a unique business model focused on the local market, leveraging a strong brand position to effectively price deposits [6][7] - The strategy includes a focus on deposit remixing from lower yielding to higher yielding deposits while maintaining overall deposit levels [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net interest margin of 2.50% by year-end, with expectations for continued growth in NII and NIM [32] - The company anticipates modest loan growth and plans to continue growing its securities portfolio [34] Other Important Information - Non-interest income increased to $44.8 million, with a one-time gain of approximately $800,000 related to a BOLI recovery [22] - Non-interest expense was $110.8 million, with a severance charge of $1.4 million included in this quarter [22] Q&A Session Summary Question: Margin path expectations - Management believes a net interest margin of 2.50% is achievable, with no obstacles anticipated [32] Question: Balance sheet growth and securities - The company expects to continue growing its securities portfolio, investing excess liquidity into it [34] Question: Trends in commercial and industrial loans - Commercial loan performance was disappointing, with a flat linked quarter, but management sees potential for improvement as market clarity increases [44] Question: Deposit dynamics and DDA growth - Management is focused on building demand deposits, which are high-margin products, but acknowledges the competitive landscape [48] Question: Expense growth expectations - The company expects a 2% to 3% increase in expenses for the year, with a potential step back in the second half [52] Question: Capital priorities and buybacks - The company plans to maintain its buyback position until there is more clarity on the economy [54] Question: Expected cash flows from securities and loans - Expected cash flows from the securities book are projected to be around $550 million [58]