Financial Data and Key Metrics Changes - For Q4 2025, the company reported a core earnings per share (EPS) of $1.43, a core return on assets (ROA) of 1.42%, and a core return on tangible common equity of 18%, all showing significant year-over-year increases [3][4] - The full-year core EPS for 2025 was $5.21, reflecting a 19% increase from the previous year, while Q4 core EPS increased by 29% year-over-year [4] - The net interest margin (NIM) for the quarter was 3.83%, down 8 basis points from the previous quarter but up 3 basis points year-over-year [4][5] Business Line Data and Key Metrics Changes - Core fee revenue increased by 2% linked quarter and 8% year-over-year, driven by strong growth in Wealth and Trust, capital markets, and home lending [5] - The Wealth and Trust business grew by 13% year-over-year, with WSFS Institutional Services experiencing a 29% growth [5] - Total gross loans grew by 2% linked quarter and 9% annualized, with commercial loans leading the growth at 4% linked quarter [6] Market Data and Key Metrics Changes - Total client deposits increased by 2% linked quarter and 10% annualized, with non-interest-bearing deposits growing by 6% linked quarter [6] - The company maintained a 32% share of non-interest-bearing deposits within total client deposits [6] Company Strategy and Development Direction - The company aims for mid-single-digit loan growth overall and expects continued broad-based deposit growth across its businesses in 2026 [9][10] - The strategy includes maintaining a high level of buybacks while being open to adjusting based on macroeconomic conditions and investment opportunities [9][10] - The company is focused on enhancing its fee businesses, which contribute approximately one-third of total revenue, and expects fee revenue to grow in the mid-single digits [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of high performance and growth, with expectations for a core ROA of approximately 1.40% and double-digit growth in core EPS for 2026 [9] - The management noted that while the path of future rate cuts remains uncertain, they are prepared to manage margins through deposit repricing and other strategies [10] - The company highlighted the importance of maintaining strong expense discipline while also investing in growth opportunities [12] Other Important Information - Non-performing assets decreased significantly, down approximately 40% compared to year-end 2024, indicating improved asset quality [7] - The company returned $119 million in capital during the quarter, including $109 million in buybacks, representing 3.7% of outstanding shares [8] Q&A Session Summary Question: Can you discuss the better commercial trends and what is driving strong originations? - Management noted that improved economic clarity led to strong originations and fundings in the commercial sector, with a pipeline exceeding $300 million [15][17] Question: What are the parameters for capital return and buybacks? - The company focuses on CET1 and TCE ratios, with a capital return philosophy primarily through buybacks, aiming to return roughly 100% of net income annually [19][20] Question: What is the outlook for Cash Connect revenue and profitability? - Management indicated that while revenue may be impacted by interest rates, margin improvements are expected due to pricing strategies and operational efficiencies [25][28] Question: What is the anticipated mix of deposit growth? - The company aims to match fund loan growth and is focused on growing non-interest-bearing deposits, particularly from institutional services and small business contributions [35][80] Question: Are there any ongoing evaluations of business segments for profitability? - Management confirmed ongoing evaluations of business segments to ensure strategic fit and profitability, with a focus on shedding low-profitability partnerships [44][46] Question: What are the expectations around M&A activity? - Management remains open to M&A opportunities that could strengthen their market position, while also focusing on organic growth [50][51]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a core earnings per share (EPS) of $1.43, a core return on assets (ROA) of 1.42%, and a core return on tangible common equity of 18%, all showing significant year-over-year increases [3][4] - The full-year core EPS for 2025 was $5.21, reflecting a 19% increase from the previous year, while Q4 core EPS increased by 29% year-over-year [4] - The net interest margin (NIM) for the quarter was 3.83%, down 8 basis points from the previous quarter but up 3 basis points year-over-year [4][5] Business Line Data and Key Metrics Changes - Core fee revenue increased by 2% linked quarter and 8% year-over-year, driven by strong growth in wealth and trust, capital markets, and home lending [5] - The wealth and trust business grew by 13% year-over-year, with WSFS Institutional Services achieving a 29% growth [5] - Total gross loans grew by 2% linked quarter and 9% annualized, with commercial loans leading the growth at 4% linked quarter [6] Market Data and Key Metrics Changes - Total client deposits increased by 2% linked quarter and 10% annualized, with non-interest-bearing deposits growing by 6% linked quarter [6] - The company maintained a strong market position, ranking as the fourth most active U.S. asset-backed and mortgage-backed securities trustee with nearly 12% market share [5] Company Strategy and Development Direction - The company aims for mid-single-digit loan growth and continued broad-based deposit growth in 2026, focusing on maintaining an interest-bearing deposit beta in the low- to mid-40s [9][10] - The strategy includes maintaining a high level of capital returns through buybacks while being open to investment opportunities [9][20] - The company is committed to expense discipline while investing in growth opportunities, with an efficiency ratio targeted in the high fifties for the year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high performance and growth in 2026, with expectations of a core ROA of approximately 1.40% and double-digit growth in core EPS [9] - The management noted that the economic environment has stabilized, leading to improved sentiment among small business owners, which has positively impacted commercial loan originations [16][17] - The company anticipates challenges in commercial loan losses but remains optimistic about the overall portfolio quality, particularly in real estate-secured loans [70][71] Other Important Information - Non-performing assets decreased significantly, down approximately 40% compared to year-end 2024, indicating improved asset quality [7] - The company returned $119 million in capital during the quarter, including $109 million in buybacks, totaling $288 million for the year [8] Q&A Session Summary Question: Can you discuss the trends in commercial loan growth and sentiment? - Management noted that improved economic clarity led to strong commercial loan originations and a positive outlook for future growth [16][17] Question: What are the parameters for capital return and buybacks? - The company focuses on CET1 and TCE ratios, with a capital return philosophy primarily through buybacks, aiming to return roughly 100% of net income annually [19][20] Question: What is the expected impact of interest rate cuts on Cash Connect revenue? - Management indicated that each 25 basis point rate cut could impact revenue by approximately $2.5 million, but margin improvements from pricing and expense management would offset some of this [26][28] Question: How does the company evaluate its diversified businesses for profitability? - The company has an ongoing initiative to assess the strategic fit of its businesses, shedding low-profitability partnerships while focusing on core areas [45][46] Question: Are there any updates on M&A considerations? - Management remains open to M&A opportunities that could strengthen their market position, while also focusing on organic growth [50][51]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a core earnings per share (EPS) of $1.43, a core return on assets (ROA) of 1.42%, and a core return on tangible common equity of 18%, all showing significant year-over-year increases [3][4] - The full-year core EPS for 2025 was $5.21, reflecting a 19% increase from the previous year, while Q4 core EPS increased by 29% year-over-year [4] - The net interest margin (NIM) for the quarter was 3.83%, down 8 basis points from the previous quarter but up 3 basis points year-over-year [4][5] Business Line Data and Key Metrics Changes - Core fee revenue increased by 2% linked quarter and 8% year-over-year, driven by strong growth in wealth and trust, capital markets, and home lending [5] - The wealth and trust business grew by 13% year-over-year, with WSFS Institutional Services achieving a 29% growth and BMT of Delaware growing by 24% [5] - Total gross loans grew by 2% linked quarter, or 9% annualized, with commercial loans leading the growth at 4% linked quarter or 15% annualized [6] Market Data and Key Metrics Changes - Total client deposits increased by 2% linked quarter or 10% annualized, with non-interest-bearing deposits growing by 6% linked quarter, now representing 32% of total client deposits [6] - The company reported a significant improvement in asset quality, with non-performing assets down approximately 40% compared to year-end 2024 [7] Company Strategy and Development Direction - The company plans to maintain an elevated level of buybacks while targeting a capital ratio of 12%, with a focus on adjusting buyback pace based on macroeconomic conditions and investment opportunities [10] - The outlook for 2026 includes expectations for mid-single-digit loan growth and continued broad-based deposit growth across all business lines [10][11] - The company aims to leverage its fee businesses, which contribute about a third of total revenue, and expects fee revenue to grow in the mid-single digits [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high performance and growth in 2026, with expectations for a core ROA of approximately 1.40% and double-digit growth in core EPS [10] - The management noted that while the path of future interest rate cuts remains uncertain, they are prepared to manage margins through deposit repricing and other strategies [11] - The company remains committed to evaluating its business lines for strategic fit and profitability, continuing to shed low-performing partnerships [46][47] Other Important Information - The company returned $119 million of capital in Q4 2025, including $109 million in buybacks, totaling $288 million for the year, representing over 9% of outstanding shares [9] - The company expects net charge-offs to be in the range of 35-45 basis points of average loans for the year, consistent with 2025 results [12] Q&A Session Summary Question: Can you discuss the better commercial trends and what is driving strong originations? - Management noted that improved economic clarity led to strong originations and fundings in the commercial sector, with a pipeline exceeding $300 million [15][18] Question: What are the parameters for capital return and buybacks? - Management indicated that capital return is primarily driven by CET1 and TCE ratios, with a focus on buybacks as the main method of capital return [20][21] Question: What is the anticipated revenue impact from Cash Connect and margin expectations? - Management expects a $2.5 million annual impact per 25 basis point rate cut on Cash Connect revenue, but margin improvements are anticipated through pricing and expense management [26][27] Question: What is the outlook for deposit growth and the mix of deposits? - Management aims for mid-single-digit deposit growth, with a focus on non-interest-bearing deposits and core operating deposits [36][37] Question: Are there any ongoing evaluations of business lines for profitability? - Management confirmed ongoing evaluations of business lines to ensure strategic fit and profitability, with a focus on shedding low-performing partnerships [44][46] Question: What are the expectations for risk-adjusted returns in the loan portfolio? - Management indicated a focus on real estate-secured portfolios for better risk-adjusted returns, emphasizing competitive advantages in home lending [55][56]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3][4] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - Tangible book value per share increased by 12% [4] - Net interest margin expanded by two basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits [4] - Client deposits increased by 1% linked quarter and by 5% year over year, with non-interest deposits growing by 12% year over year [5] Market Data and Key Metrics Changes - Total net credit costs were $8.4 million this quarter, down $5.9 million compared to the prior quarter [7] - Non-performing assets (NPAs) declined by over 30% to 35 basis points, with delinquencies down by 34% [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while adjusting the pace based on macroeconomic conditions and business performance [8] - The management is focused on organic growth and is actively recruiting talent in commercial and wealth sectors [52][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage margins through deposit repricing and hedging strategies despite potential rate cuts [9][56] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance [9] Other Important Information - The company returned $56.3 million of capital, including buybacks of $46.8 million, representing 1.5% of outstanding shares [8] - The commercial pipeline remains strong at approximately $300 million [7] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years [15] Question: How are reserve levels being managed amid macro volatility? - Management stated that they are conservatively maintaining reserves due to potential macroeconomic volatility, despite good asset quality trends [18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and The Bryn Mawr Trust Company of Delaware up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to overall profitability benefits [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - Tangible book value per share increased by 12%, and net interest margin expanded by 2 basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year, with total client deposits increasing by 1% linked quarter and 5% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits in wealth and trust [4] - Loans decreased by 1% linked quarter, primarily due to the sale of the Upstart loan portfolio, but residential mortgage and WSFS-originated consumer loan portfolios saw increases of 5% and 3% respectively [5][6] Market Data and Key Metrics Changes - Non-interest deposits grew by 12% year over year, representing over 30% of total client deposits [5] - The commercial pipeline increased to approximately $300 million, indicating strong demand in both C&I and commercial real estate [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while being flexible based on macroeconomic conditions and business performance [8] - Management emphasized a focus on organic growth and potential acquisitions, particularly in the wealth and trust sectors [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality improvements, with total net credit costs decreasing to $8.4 million, down $5.9 million from the prior quarter [7] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance despite uncertainties in the macro environment [9] Other Important Information - The company returned $56.3 million of capital during the quarter, including $46.8 million in buybacks, representing 1.5% of outstanding shares [8] - The CET1 ratio stands at 14.39%, well above the medium-term target of 12% [8] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years, depending on balance sheet dynamics and growth rates [14][15] Question: How are reserve levels being managed amid macro volatility? - Management noted that while there is capacity to release some reserves, they are maintaining a conservative approach due to potential economic volatility [18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and Bryn Mawr Trust up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to a net profitability benefit [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3] - Tangible book value per share increased by 12% [4] - Net interest margin expanded by two basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits [4] - Client deposits increased by 1% linked quarter and grew by 5% year over year, with non-interest deposits up by 12% year over year [5] - Loans decreased by 1% linked quarter, but residential mortgage and WSFS-originated consumer loan portfolios saw increases of 5% and 3%, respectively [5][6] Market Data and Key Metrics Changes - The commercial pipeline increased to approximately $300 million, indicating strong demand [6] - Total net credit costs were $8.4 million, down $5.9 million compared to the prior quarter, with net charge-offs at 30 bps [6] Company Strategy and Development Direction - The company plans to maintain elevated buybacks while adjusting the pace based on macroeconomic conditions and business performance [7] - Management emphasized a focus on organic growth and potential acquisitions in both depositories and fee verticals to achieve medium-term CET1 targets [12][14] - The wealth and trust business is expected to continue growing, with a focus on new accounts and transaction activity [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage margins through deposit repricing and hedging strategies amid uncertain rate cuts [8][50] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance [8] Other Important Information - The company returned $56.3 million of capital, including $46.8 million in buybacks, representing 1.5% of outstanding shares [7] - The company has a CET1 ratio of 14.39%, well above the medium-term target of 12% [7] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years, depending on balance sheet dynamics and investment opportunities [12][14] Question: How are reserve levels being managed amid macro volatility? - Management noted that while there is capacity to release some reserves, they are maintaining conservative levels due to potential macroeconomic volatility [16][18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and The Bryn Mawr Trust Company of Delaware up 20% year over year [26][28] Question: How does the Cash Connect business forecast profitability amid rate changes? - Management confirmed that while fee revenue may decrease with rate cuts, expenses would also reduce, leading to overall profitability benefits [34][36] Question: What is the expected pace of consumer loan portfolio runoff? - The company expects the Spring EQ portfolio runoff to continue at a pace of $15 million to $17 million per month, while home lending is expected to grow positively [40][41]

Financial Data and Key Metrics Changes - Core earnings per share increased to $1.27, core return on assets at 1.3%, and core return on tangible common equity at 18.03%, all up from the first quarter [4][5] - Core net interest margin expanded by one basis point to 3.89%, with total funding costs reduced by nine basis points [5] - Total net credit costs were $14.3 million, with net charge-offs at 30 basis points, half attributed to the Upstart sale [7][9] Business Line Data and Key Metrics Changes - Wealth business grew 17% year over year, with institutional services up 39% and Brimmore Trust Company of Delaware up 7% [6] - Core fee revenue grew 9% quarter over quarter, driven by growth in wealth, capital markets, and mortgage [5] - Gross loans remained flat quarter over quarter, but commercial fundings reached the highest level in over a year, with C&I loan balances growing 2% linked quarter [6][7] Market Data and Key Metrics Changes - Total client deposits increased by 1% linked quarter and grew by 5% year over year, with non-interest deposits up 11% year over year [6] - The company expects low single-digit growth in the commercial portfolio and flat growth in the consumer portfolio, excluding Upstart [10] Company Strategy and Development Direction - The company is focused on accretive loan growth, particularly in the C&I sector, while maintaining profit margins [19][20] - Strategic opportunities are being pursued in the wealth and trust franchise, with a focus on broadening product offerings [12][31] - The company plans to continue executing buybacks as part of a multi-year glide path to reach a CET1 capital target of 12% [13] Management's Comments on Operating Environment and Future Outlook - Management noted a mild uptick in optimism among commercial borrowers, with some projects previously on hold now moving forward [23][24] - The outlook for net interest margin (NIM) has been raised to approximately 3.85%, factoring in expected interest rate cuts [11][38] - Management remains committed to driving high performance and growth, with expectations for continued strong performance in fee businesses [10][64] Other Important Information - The company completed the sale of its powder mill business, which is expected to create strategic opportunities despite some near-term revenue headwinds [12] - The company is managing expenses for growth, with a focus on investing in technology and talent [58] Q&A Session Summary Question: Loan growth expectations and commercial borrower sentiment - Management emphasized a focus on C&I growth and maintaining profit margins, with a mild uptick in optimism among borrowers regarding tariffs [19][23] Question: Expense outlook and run rate - Management indicated that the second quarter is a good run rate for future growth, with some potential increases in the back half of the year [25][28] Question: Impact of buybacks on CET1 and M&A opportunities - Management confirmed that buybacks are driven by excess capital, with a focus on investing in the business first, but open to M&A opportunities in fee businesses [30][31] Question: NIM outlook and potential upside - Management discussed the expected impact of interest rate cuts on NIM, with strategies in place to mitigate these effects [36][38] Question: Cash Connect profitability and pricing strategies - Management reported progress in driving profit margins in Cash Connect, with ongoing pricing increases expected to enhance profitability [61] Question: Long-term margin outlook - Management did not provide specific guidance for 2026 but aims to continue improving ROA and mitigating impacts from interest rate cuts [64]

Financial Data and Key Metrics Changes - Core earnings per share increased to $1.27, core return on assets at 1.3%, and core return on tangible common equity at 18.03%, all up from the first quarter [3][4] - Core net interest margin expanded by one basis point to 3.89%, with total funding costs reduced by nine basis points [4] - Core fee revenue grew by 9% quarter over quarter, driven by growth in wealth, capital markets, and mortgage businesses [4] Business Line Data and Key Metrics Changes - Wealth business grew by 17% year over year, with institutional services up by 39% and Brimmore Trust Company of Delaware up by 7% [5] - Total client deposits increased by 1% linked quarter and grew by 5% year over year, with non-interest deposits up by 11% year over year [5] - Gross loans remained flat quarter over quarter, but commercial fundings reached the highest level in over a year, with C&I loan balances growing by 2% linked quarter [6] Market Data and Key Metrics Changes - The company expects low single-digit growth in the commercial portfolio and flat growth in the consumer portfolio, excluding Upstart [8] - The outlook for net interest margin (NIM) has been raised to approximately 3.85%, factoring in two anticipated rate cuts [9] Company Strategy and Development Direction - The company is focused on accretive loan growth, particularly in the C&I sector, while maintaining profit margins [19][20] - Strategic opportunities are being pursued in the wealth and trust business, with a focus on broadening product offerings [10] - The company plans to continue executing buybacks as part of a multi-year glide path to reach a CET1 capital target of 12% [11] Management's Comments on Operating Environment and Future Outlook - Management noted a mild uptick in optimism among commercial borrowers, indicating a potential shift in sentiment regarding tariffs [22][23] - The company is managing expenses for growth, with continued investments in technology and talent [57] - Future performance is expected to be driven by fee businesses, which are accretive to ROA, despite temporary impacts from interest rate cuts [64] Other Important Information - The company returned $87.3 million of capital in the second quarter, including $77.7 million in buybacks, representing 2.7% of outstanding shares [7] - The sale of the Upstart portfolio is expected to impact net charge-offs, with total net charge-offs projected between 35 to 45 basis points for the year, excluding Upstart [10] Q&A Session Summary Question: Loan growth expectations and commercial borrower sentiment - Management emphasized a focus on C&I growth and noted a mild uptick in optimism among borrowers regarding project initiation [19][22] Question: Expense outlook and run rate - Management indicated that the second quarter represents a good run rate for future growth, with some potential increases due to business-as-usual activities [26][57] Question: Impact of buybacks on CET1 and M&A considerations - Management confirmed that buybacks are being executed due to excess capital, with a focus on investing in the business first before considering M&A opportunities [30][31] Question: NIM outlook and potential upside - Management discussed the expected impact of interest rate cuts on NIM, with a focus on mitigating these impacts through deposit repricing [38][41] Question: Cash Connect profitability and pricing strategies - Management reported progress in driving profit margins in Cash Connect, with ongoing pricing increases expected to enhance profitability [60][61]

Financial Data and Key Metrics Changes - The company 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][10] - Net interest margin expanded by eight basis points to 3.88%, reflecting a reduction in total funding cost by 15 basis points to 1.77% [5][6] - Total net credit costs increased to $17.6 million, up $8.9 million from the previous quarter, with net charge-offs at $24.6 million [9] 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 [6] - Institutional Services showed strong year-over-year growth, contributing to higher deal flow [6] - Cash Connect fees declined quarter over quarter due to seasonally lower volumes, but profit margins improved through expense and pricing offsets [7] Market Data and Key Metrics Changes - Client deposits declined by 1% linked quarter but increased by 4% year over year, with non-interest bearing deposits up by 6% year over year [8] - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [8] Company Strategy and Development Direction - The company plans to target a CET1 ratio of 12% in the medium term, with a gradual glide path over two to three years [11][56] - The company is committed to returning capital to shareholders, having returned $62.6 million in capital during the first quarter, including $53.8 million in buybacks and a 13% increase in the quarterly dividend [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainty, leading to postponed investments [32][33] - The company remains engaged with clients and is monitoring the overall environment closely, indicating a stable outlook despite current challenges [9][20] Other Important Information - The company has a strong capital position with a CET1 ratio of 14.1% and TCE of 8.63%, significantly above regulatory targets [10] - The company is actively managing its net interest margin through various tools, including deposit beta management and optimization of wholesale funding [45][46] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical to update guidance after the second quarter due to the volatility of the environment, and there is nothing to read into the absence of guidance this quarter [16][17] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was primarily due to a one-off item and that the rest of the portfolio is performing as expected [19][20] Question: How should expenses be viewed going forward? - Management provided insights on seasonal impacts and one-time items affecting expenses, suggesting a run rate between the first and fourth quarters [21][24] Question: What is the outlook for commercial growth? - Management noted that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [32][33] Question: How are deposit beta expectations evolving? - Management exceeded their initial goal for deposit beta, reaching 38% this quarter, and plans to continue pushing higher [44][45] Question: What is the medium-term target for CET1? - Management indicated a two to three-year glide path to a 12% CET1 target, with discretion to adjust based on macroeconomic conditions [56][57] Question: How does the macro environment impact buyback decisions? - Management expressed confidence in their capital position but acknowledged the need to monitor the macro environment for any changes [59][60]