Financial Data and Key Metrics Changes - The company reported net income of $61.1 million and core net income of $63.3 million for Q3 2025, with core earnings per share at $1.51 and a core return on average tangible common equity of 25.5% [6][19] - Net interest income before provision for credit losses was $92.7 million, an increase of $3.3 million or 3.7% from the prior quarter, with a net interest margin of 2.73%, up 9 basis points from the previous quarter [13][19] - The company announced a quarterly cash dividend of $0.50 per share and repurchased 700,000 shares at a cost of $30.3 million during the quarter [7][19] Business Line Data and Key Metrics Changes - Non-interest income totaled $61.2 million, an increase of $4.2 million over the last quarter, driven by higher banking fees and increased foreign exchange revenues [15] - Core non-interest expenses decreased due to lower performance-based incentive accruals and reduced property expenses [16] Market Data and Key Metrics Changes - Bermuda's business environment remains stable with signs of growth in the local economy, including a forecasted budget surplus and growth in the international business sector, particularly in reinsurance [9][10] - The Cayman Islands is expected to see a 2.5% GDP increase in 2025, with financial services and tourism being key economic pillars [11] Company Strategy and Development Direction - The company aims to enhance operational efficiency and maintain prudent expense discipline while focusing on capital management and organic growth [20] - The company is exploring strategic and accretive acquisition opportunities while continuing to diversify its fee income lines [34] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the fiscal position of Bermuda and continued growth in the international business sector [9][10] - The company anticipates stable net interest margins with potential for slight expansion due to asset repricing [29] Other Important Information - The company maintains a conservative balance sheet with low risk density and strong asset quality, with negligible net charge-offs and a non-accrual loan rate of 2% [17][19] - The tangible book value per share improved by 5.4% to $25.06 as unrealized losses on investments improved [19] Q&A Session Summary Question: Margin trajectory outlook - Management indicated that deposit costs have decreased and there is potential for margin stability or slight expansion due to asset repricing [25][29] Question: Interest in crypto or stablecoin initiatives - Management described themselves as a "slow follower" in the digital asset space, monitoring developments but not taking a lead role [32][34] Question: Future expense management initiatives - Management discussed ongoing efforts to manage expenses, including moving back-office functions to Halifax and maintaining a stable expense run rate [36][37] Question: Fee income business momentum - Management noted strong performance in banking driven by increased card services fees and transaction-related fees, with a positive outlook for the upcoming tourism season [42][45] Question: Growth expectations in loans and deposits - Management highlighted Bermuda as a key area for deposit growth and noted a conservative approach to loan growth, with encouraging signs in the loan pipeline, particularly in Cayman [46][50]