Summary of First Business Financial Services Conference Call Company Overview - **Company Name**: First Business Bank (Ticker: FBIZ) - **Market Capitalization**: Approximately $4 billion - **Business Model**: Focused on business banking and private wealth management without a retail banking branch network [2][3] Core Business Segments - **Business Banking**: - Total assets of approximately $4 billion, primarily in loans [4] - Operates in four markets: Madison, Milwaukee, Appleton (Wisconsin), and Kansas City (Kansas) [4] - Offers conventional commercial banking and treasury management services [4] - Provides company retirement plans (401(k)s) and five niche C&I lending businesses: equipment finance, asset-based lending, accounts receivable financing, floor plan financing, and SBA lending [5] - **Private Wealth Management**: - Manages approximately $3.8 billion in assets, focusing on financial planning, asset management, and trust administration [5] Employee and Client Engagement - **Employee Engagement**: - 90% participation in annual employee engagement survey, with an engagement score of 86%, exceeding the finance industry benchmark of 78% [7][8] - Recognized as a top workplace by USA TODAY for five consecutive years [8] - **Client Satisfaction**: - Overall client satisfaction at 91% and a Net Promoter Score of 70, significantly higher than the banking industry average [9][10] Strategic Planning - **Current Strategic Plan**: Initiated in 2024, involving 80 employees and focusing on 11 key strategies, including: - **Culture**: Emphasizing employee engagement and cultural integrity [11][12] - **Future-Ready Talent**: Attracting and retaining skilled employees, with a focus on technology adoption [13][14] - **Deposits**: Building strong relationships with businesses to secure deposits [15][16] - **Operational Excellence**: Implementing robotic process automation for efficiency [17] - **Profitability**: Balancing growth with profitability across business lines [18] Financial Performance Metrics - **Growth Targets**: Aiming for over 10% annual growth, with actual revenue growth at 12.3% this year [19] - **Efficiency Ratio**: Currently at 59.51, below the target of 60 [19] - **Return on Equity**: Achieved 17.3%, exceeding the target of 15% [19] - **Tangible Book Value Growth**: Recorded at 15.6% annually, surpassing the target of 10% [19] Risk Management - **Asset Liability Management**: Focused on maintaining a stable net interest margin and avoiding interest rate volatility through disciplined practices [20][21] - **Credit Risk Management**: Maintains credit costs at about one-third of the industry average, with a thorough underwriting process [24][25] Loan Portfolio Characteristics - **Composition**: 40% C&I commercial and industrial loans, 60% commercial real estate [30] - **Focus Areas**: Strong growth in the C&I portfolio, particularly in treasury management and private wealth relationships [31][33] - **Credit Quality**: Normalized credit environment with stable provisioning; minor issues noted in the transportation sector [34] Investment Opportunity - **Valuation**: Currently trading at a discount relative to peers despite strong performance metrics [29][36] - **Growth Consistency**: Emphasis on organic growth strategy with a proven track record of achieving targets [36] This summary encapsulates the key points discussed during the First Business Financial Services conference call, highlighting the company's unique business model, strategic focus, financial performance, and investment potential.

Core Insights - SLR Investment Corp reported stable third-quarter results, with net investment income of $0.40 per share and net income of $0.43 per share, reflecting a 9.4% annualized return on equity [1][17] - The company's net asset value per share increased slightly to $18.21 as of September 30, 2025, remaining approximately flat year over year [1][14] - SLR's multi-strategy approach to private credit investing has allowed it to maintain stability in its portfolio amid rising credit risks and competitive market conditions [5][38] Financial Performance - The company originated $447 million in new investments during the third quarter, a 12.7% increase year over year, while repayments totaled $419 million [4][5] - Gross investment income for the quarter was $57 million, up from $53.9 million in the previous quarter, with net expenses rising to $35.4 million [16][17] - The net increase in net assets resulting from operations was $23.3 million for the quarter, compared to $24.2 million in the prior quarter [17] Portfolio Composition - Approximately 93% of third-quarter originations were in specialty finance, reflecting a shift towards strategies that offer better risk-adjusted returns [10][19] - As of September 30, 2025, 83% of the loan portfolio consisted of specialty finance investments, with cash flow loans representing only 15.3% [11][12] - The comprehensive portfolio totaled approximately $3.3 billion, with 98.2% consisting of senior secured loans [22] Market Conditions and Strategy - The company is focusing on asset-based lending (ABL) due to strong demand from borrowers seeking liquidity solutions amid uncertain economic conditions [8][24] - SLR's ABL portfolio totaled over $1.4 billion, representing 44% of the total portfolio, with a weighted average yield of 13.4% [25][26] - The company has made significant investments in personnel and infrastructure to enhance its ABL capabilities, hiring over 100 new employees in the past two years [9][46] Risk Management - SLR has adopted a more discerning approach to cash flow lending to safeguard performance in a high-interest rate environment [6][39] - The weighted average investment risk rating of the portfolio was under two, indicating a low-risk profile, with 99.5% of the portfolio performing on a cost basis [23] - The company emphasizes rigorous underwriting and active monitoring to mitigate risks associated with asset-backed lending [20][21]

Financial Data and Key Metrics Changes - SLR Investment Corp reported net investment income of $0.40 per share and net income of $0.43 per share for Q3 2025, with net asset value per share increasing slightly to $18.21 [4][14] - The company's net income for the quarter equates to a 9.4% annualized return on equity, with net investment per share being a penny below the base dividend of $0.41 [4][16] - Gross investment income totaled $57 million, up from $53.9 million in the previous quarter, while net expenses increased to $35.4 million from $32.3 million [16] Business Line Data and Key Metrics Changes - During Q3, SLR originated $447 million in new investments, a 12.7% increase year-over-year, and received repayments of $419 million [5][10] - Approximately 93% of Q3 originations were in specialty finance, reflecting a strategic shift towards this area due to more attractive risk-adjusted returns [10][11] - The asset-based lending (ABL) portfolio totaled over $1.4 billion, representing 44% of the total portfolio, with a weighted average asset-level yield of 13.4% [24] Market Data and Key Metrics Changes - The company noted strong demand for corporate asset-based lending solutions as companies seek liquidity amid uncertain economic conditions [9] - The weighted average yield on the comprehensive portfolio was 12.2%, consistent with the prior quarter, indicating stability in the portfolio's performance [21] - The portfolio's risk profile remains strong, with 99.5% of investments performing and only one investment on non-accrual [22] Company Strategy and Development Direction - SLR continues to focus on specialty finance strategies due to their higher pricing and greater downside protection [18] - The company is strategically hiring to expand its asset-based lending capabilities, with over 100 new hires in the past two years [9][40] - SLR's multi-strategy approach to private credit investing is designed to preserve capital and provide a diversified investment portfolio [34] Management's Comments on Operating Environment and Future Outlook - Management expressed awareness of elevated concerns regarding credit quality in the private credit industry but emphasized SLR's conservative approach to cash flow lending [6][7] - The company believes that ABL remains the most compelling risk-adjusted opportunity in private credit heading into 2026 [20] - Management highlighted the importance of rigorous underwriting practices in light of recent market scrutiny and failures in the asset-backed finance market [19] Other Important Information - SLR's investment portfolio had a fair market value of approximately $2.1 billion, with 109 portfolio companies across 31 industries [14] - The company has over $850 million of available capital to deploy, positioning it well for both stable and softening economic conditions [12] Q&A Session Summary Question: Did you mention that you had hired 100 new people over the past two years? - Yes, primarily in our asset-based and special lending strategies [39] Question: Is there something specific that you do to ensure 100% of your assets are qualified? - 100% are qualified assets, and we have not been limited in growing our special finance and asset-based lending strategies [41] Question: Can you dig into the asset-based lending churn? - The churn is often due to companies in transition, with asset-based structures typically having a two to three-year duration [42] Question: How do you adjust underwriting for depreciating equipment in equipment finance? - Extensions of existing leases are effectively profit to the bottom line for us, as we have already amortized out the equipment [43] Question: What do you think about the attractiveness of ABL going into 2026? - ABL is viewed as a manufacturing business requiring significant infrastructure, making it difficult for new entrants [45] Question: Is the dividend sustainable given the forward curve? - The last several quarters have seen fluctuations around the dividend, and adjustments will be made based on portfolio performance [47]

Financial Performance - The company's net income for 3Q25 was $106.0 million, resulting in diluted earnings per share of $1.54[22] - The company's return on average assets (ROA) was 1.56% for 3Q25[22] - The company's return on average tangible common equity (ROTCE) was 14.57% for 3Q25[22] - The company's net interest margin (NIM) improved by 3 basis points to 3.80% in 3Q25[22] - The company's efficiency ratio improved to 49.19% in 3Q25[22] Balance Sheet and Capital - The company's tangible book value (TBV) grew by $1.58 per share to $42.90 at the end of 3Q25, representing an annualized growth rate of 15.2%[22] - The company's CET1 ratio was 13.2% at the end of 3Q25[13] - Noninterest-bearing deposits remained strong, representing 30.4% of total deposits as of September 30, 2025[22] Loan Portfolio and Credit Quality - The company's loan portfolio totaled $21.3 billion in 3Q25[56] - The company's allowance for credit losses (ACL) on loans was 1.62% of total loans in 3Q25[13] - The company's net charge-offs were stable at 0.14% annualized in 3Q25[22] Market Position and Growth - The company's Southeast markets are projected to grow approximately 1.7x the national average over the next five years[13]

Financial Data and Key Metrics Changes - Core earnings per share increased to $0.38, surpassing consensus estimates by $0.03 and improving from $0.32 in the first quarter [6] - Core return on assets reached 1.31%, with a core pretax pre-provision ROA of 1.95% and a core efficiency ratio of 54.1% [6] - Net interest margin expanded from 3.62% in the first quarter to 3.83% in the second quarter, a 21 basis point increase [7] - Net interest income increased by $10,700,000 to $106,200,000, driven by improved loan yields and lower deposit costs [7][8] Business Line Data and Key Metrics Changes - Loan growth was 8.1% annualized, with significant contributions from Equipment Finance, small business, commercial, indirect, and branch lending [7][8] - Noninterest income increased by $2,100,000 to $24,700,000, with strong contributions from mortgage, SBA, interchange, wealth, and other service charges [8] - Total deposits grew by 9% year to date, reaching $10,100,000,000, with the Community Pennsylvania region performing exceptionally well [9] Market Data and Key Metrics Changes - The integration of Centre Bank added $295,000,000 in loans and $278,000,000 in deposits, enhancing the company's presence in Cincinnati [10] - The company experienced loan and deposit growth in four of its six geographic markets [8] Company Strategy and Development Direction - The company aims to be the leading community bank in its markets, focusing on improving financial lives of customers and communities [12] - Strategic acquisitions and a regional business model are key components of the company's growth strategy [12] - The company is exploring smaller acquisition opportunities while maintaining a disciplined approach to M&A [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory, citing disciplined execution and strategic acquisitions as drivers of growth [12] - The company anticipates continued loan growth and margin expansion, with a revised forecast of two Fed cuts by year-end [16][72] - Management highlighted the importance of maintaining low-cost deposits to support loan growth [121] Other Important Information - The company reported a second quarter provision expense of $12,600,000, with $3,800,000 related to the Centre Bank acquisition [11] - Nonperforming loans increased by $40,100,000 due to the Centre Bank acquisition and a single commercial loan [12] Q&A Session Summary Question: Guidance for expenses in the third quarter or back half of the year - Management indicated that expenses are on track, with consensus estimates for the third quarter at $72,800,000 and fourth quarter at $73,100,000 [23][24] Question: Appetite for stock repurchases - Management plans to resume stock repurchases after a blackout period, with a focus on buying back shares at a set price [28][30] Question: Outlook for charge-offs - Charge-offs have been low, and management expects them to normalize in the mid-20 basis point range [32] Question: Loan yield trends and guidance - Management indicated that loan yields have been consistent, with expectations for continued positive trends if the Fed does not cut rates [38][40] Question: Market share opportunities - Management believes there is significant room for growth in existing markets, particularly in Ohio and Western Pennsylvania [92][95] Question: Impact of recent investments in Pennsylvania - Management noted significant investments in the area, particularly in infrastructure and energy, which could benefit the company [100] Question: Credit quality of the portfolio - Management confirmed that the majority of the nonaccruals are from a legacy loan, with the overall portfolio performing well [106][112]

Financial Performance - The company's net income for 2Q25 was $109834 thousand, a 25% increase compared to $87935 thousand in 1Q25 and a 21% increase compared to $90785 thousand in 2Q24[19] - Return on average assets (ROA) was 165% in 2Q25, up from 136% in 1Q25 and 141% in 2Q24[19] - Return on average tangible common equity (ROTCE) reached 1582% in 2Q25[18] - Tangible book value per share grew by $154 to $4132 at the end of June 2025, representing a 155% annualized growth[18] Balance Sheet and Capital - The CET1 ratio was 130%[9] - The TCE ratio stood at 1109%, compared to 972% a year prior[18] - Noninterest-bearing deposits remained strong, accounting for 310% of total deposits as of June 30, 2025[18] Revenue and Expenses - Net interest margin (TE) expanded by 4 bps to 377%[18] - Total revenue increased by $149 million, or 209% annualized, from 1Q25[18] - The efficiency ratio improved to 5163%[18] - Mortgage banking activity contributed 13% of total revenue in 2Q25[34] Loan Portfolio and Credit Quality - Loan balances increased by $335 million, or 65% annualized, during 2Q25[57] - The allowance for credit losses (ACL) on loans was 162% of total loans[53] - Net charge-offs totaled $71 million, or 014% annualized, in 2Q25[68]

Financial Data and Key Metrics Changes - SLR Investment Corp reported net investment income of $0.41 per share for Q1 2025, consistent with the base dividend of $0.41 per share, reflecting a return on equity of approximately 9% [6][17] - The company's net asset value at the end of the quarter was $18.16 per share, a slight decrease of $0.04 from $18.20 per share at the end of Q4 2024 [14] - Gross investment income for the three months ended March 31 totaled $53.2 million, down from $55.6 million in the previous quarter [16] Business Line Data and Key Metrics Changes - The comprehensive portfolio totaled $3.1 billion at quarter end, with $361 million in new investments and $391 million in repayments during Q1 [7][14] - Approximately 80% of the portfolio was derived from specialty finance investments, with cash flow loans now representing less than 20%, the lowest level in three years [7][8] - The yield on the comprehensive portfolio increased to 12.2%, up from 12.1% in the previous quarter and 11.8% in Q1 2024 [8] Market Data and Key Metrics Changes - The current environment is marked by policy volatility and economic uncertainty, with expectations for elevated inflation and slower global growth [9][10] - The company has over $800 million of available capital to deploy, positioning it to take advantage of both durable economic conditions and potential economic softening [12] Company Strategy and Development Direction - The company has shifted its portfolio mix towards asset-based specialty finance strategies, providing greater downside protection from underlying collateral [7] - SLR's multi-strategy investment approach aims to deliver consistent returns and protect capital across market cycles, with a focus on high-quality collateral [19] - The company is actively monitoring portfolio companies for impacts from tariffs and is focused on domestic service-oriented businesses [10][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and capitalizing on volatility from widening credit spreads [5] - The company believes its disciplined approach and strong credit profile will allow it to withstand persistent inflationary pressures and high interest rates [11] - Management highlighted the importance of monitoring trends in receivables and inventory to manage risks effectively [53] Other Important Information - The company declared a Q2 2025 quarterly distribution of $0.41 per share, payable on June 27, 2025 [18] - SLR Investment Corp is rated investment grade by Fitch, Moody's, and DBRS, with no near-term refinancing obligations [15] Q&A Session Summary Question: Follow-up on pipeline weighting towards ABL and equipment finance opportunities - Management indicated that the pipeline is approximately 75-80% weighted towards ABL, covering various industries [40][41] Question: Description of recent attractive cash flow lending opportunities - Management noted that attractive opportunities involve financing tuck-in acquisitions of seasoned platforms, allowing for short duration and potential re-underwriting [44][46] Question: Contribution from Kingsbridge in the quarter - Management confirmed that Kingsbridge's performance included some one-time gains but is expected to continue performing well [48] Question: Estimate of tariff exposure in the portfolio - Management stated that less than 1% of the portfolio has direct exposure to tariffs, primarily due to the focus on domestic service-based businesses [51][52] Question: Yield increase in the equipment finance business - Management explained that the yield increase is due to borrowers extending leases and some one-time gains from asset sales [56][57]

Financial Data and Key Metrics Changes - First Commonwealth reported core earnings per share of $0.32 for Q1 2025, with a return on assets of 1.14%, down from 1.23% in Q4 2024 due to rising expenses and falling fee income [6][10] - Loans grew at an annualized rate of 4.4%, totaling $99 million, with commercial loans accounting for $63 million or 64% of the increase [6][7] - Net interest margin (NIM) increased by eight basis points to 3.62%, while deposit costs fell to 1.99% [7][8] - The efficiency ratio rose to 59.08%, up from 56.07% in the previous quarter, with total expenses increasing by $2.1 million to $71.1 million [10][21] Business Line Data and Key Metrics Changes - Equipment finance and indirect auto lending contributed significantly to loan growth, with strong application volume continuing into April [6][7] - Fee income decreased by $1.5 million in Q1 2025, attributed to a $3.5 million hit from the Durbin Amendment and a decline in SBA gain on sale income [10][20] - The company anticipates fee income to improve in Q2 2025, projecting $23 million to $24 million, with a seasonal decline expected in Q4 [20] Market Data and Key Metrics Changes - The company noted that consumer financial health remains stable, comprising about 68% to 70% of U.S. GDP and 40% of its lending business [9] - The impact of tariffs and inflation on clients has been monitored, with many businesses adapting their supply chains effectively [12][13] Company Strategy and Development Direction - The company is focused on improving liquidity, with a loan-to-deposit ratio decreasing from 97% to 92% over the past two years [8] - The acquisition of Centre Bank is expected to enhance efficiency and margin, with the integration of new talent seen as a strategic fit for growth [11][128] - The company aims to increase fee income as a percentage of overall revenue, leveraging its regional model and local relationships [137] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite potential headwinds from tariffs, with strong pipelines in various markets [14][9] - The company is cautious about the economic environment, particularly regarding inflation and its potential impact on consumers and businesses [10][12] - Future NIM guidance anticipates expansion due to macro swaps and potential Fed rate cuts, with expectations of reaching the high 370s by year-end [18][42] Other Important Information - The Board of Directors approved a dividend increase of $0.01 per share, maintaining a dividend yield of approximately 3.54% [12] - The company has $6.7 million remaining under its buyback program, with no buyback activity in Q1 2025 due to the timing of the Centre Bank acquisition [22][49] Q&A Session Summary Question: Loan growth guidance and equipment finance portfolio momentum - Management noted healthy application volume in equipment finance and attributed growth to increased demand amid tariff anticipation [26][27] Question: Borrower sentiment and commercial real estate activity - Management indicated improved activity in commercial real estate and a strong pipeline, with a focus on growing the commercial and industrial book [28][29] Question: Deposit growth and rates - Management acknowledged that deposit growth was driven by savings, with a strategy to maintain liquidity despite lower rates [34][35] Question: NIM guidance and deposit costs - Management clarified that NIM guidance assumes stable deposit costs, with potential for upside if deposit rates can be lowered further [41][42] Question: SBA gain on sale outlook - Management expects SBA gain on sale income to improve as the year progresses, with a healthy pipeline of deals [75][78] Question: Center Bank acquisition impact - Management expressed excitement about the talent acquired from Centre Bank and its potential to enhance growth in the Cincinnati market [128][129]

Financial Data and Key Metrics Changes - First Commonwealth reported core earnings per share of $0.32 for Q1 2025, with a return on assets of 1.14%, down from 1.23% in Q4 2024 due to rising expenses and falling fee income [5][9] - Loans grew at an annualized rate of 4.4%, totaling $99 million, with commercial loans accounting for $63 million or 64% of the increase [5][6] - Net interest margin (NIM) increased by eight basis points to 3.62%, while deposit costs fell to 1.99% [6][15] - The efficiency ratio rose to 59.08%, up from 56.07% in the previous quarter, with total expenses increasing by $2.1 million to $71.1 million [9][21] Business Line Data and Key Metrics Changes - Fee income decreased by $1.5 million in Q1 2025, impacted by a $3.5 million reduction in interchange income due to the Durbin Amendment [9][20] - The equipment finance and indirect auto lending segments contributed significantly to loan growth, with strong application volumes continuing into April [5][26] - The commercial real estate (CRE) sector showed increased activity compared to the previous year, with a strong pipeline for construction loans [30][31] Market Data and Key Metrics Changes - The consumer financial health appears stable, with consumers representing approximately 68% to 70% of U.S. GDP and about 40% of First Commonwealth's lending business [8] - The company is closely monitoring the impact of tariffs and inflation on its clients, with many businesses adapting their supply chains effectively [11][12] Company Strategy and Development Direction - The company aims to improve liquidity, evidenced by a decrease in the loan-to-deposit ratio from 97% to 92% over the past two years [7] - The acquisition of Centre Bank is expected to enhance efficiency and margin, with the integration of new talent viewed positively [10][122] - The company is focused on becoming the best bank for business, with investments in regional banking teams and equipment finance [10][131] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite potential headwinds from tariffs, with strong pipelines in various markets [13][19] - The return of inflation could weaken consumer and business households, but current consumer health is deemed stable [8][11] - The company anticipates NIM expansion throughout 2025, with guidance reflecting potential Fed rate cuts [17][18] Other Important Information - The Board of Directors approved a dividend increase of $0.01 per share, maintaining a dividend yield of approximately 3.54% [11][22] - The company has $6.7 million remaining under its buyback program, with no buyback activity in Q1 2025 due to the timing of the Centre Bank acquisition [22][48] Q&A Session Summary Question: Loan growth guidance and equipment finance portfolio momentum - Management noted healthy application volume in equipment finance and expects continued growth despite potential economic slowdowns [25][26] Question: Borrower sentiment and commercial loan growth - The commercial real estate sector is more active than the previous year, with a strong pipeline and improved borrower sentiment [28][30] Question: Deposit growth and rates - The growth in deposits was driven by the savings segment, with a shift from CDs to money markets as rates were adjusted [33][36] Question: NIM guidance and deposit costs - The NIM guidance assumes stable deposit costs, with potential for upside if deposit rates can be lowered further [39][41] Question: SBA gain on sale outlook - Management expects SBA gain on sale income to improve as the year progresses, with a healthy pipeline of deals [73][78] Question: Credit trends and provisioning - The company is in a good position regarding reserves, with charge-offs down and provisioning remaining stable [118][119] Question: Centre Bank acquisition impact - The acquisition is expected to enhance loan growth and operational efficiency, with positive integration of new talent [122][124]

Financial Data and Key Metrics Changes - The company met consensus earnings estimates of $0.35 per share in Q4 2024, with a pre-tax pre-provision ROA of 1.77% and ROE of 1.23% [6] - The net interest margin (NIM) was reported at 3.54%, with a core efficiency ratio of 56.1% [6] - Average deposits grew by 8.7% in Q4, with a year-over-year increase of approximately $451.1 million or 5% [8][15] - Non-performing loans (NPLs) decreased from 0.83% to 0.68%, indicating improved credit quality [11] Business Line Data and Key Metrics Changes - Loans grew by $23.5 million in Q4, reflecting an annualized growth rate of 1.04% [17] - Equipment finance was highlighted as a growth area, with a notable increase of $61 million in Q4 alone [7] - Fee income improved by $800,000 quarter-over-quarter, driven by increases in swap income and mortgage gain on sale income [19][20] Market Data and Key Metrics Changes - The company experienced balanced deposit growth across most regions, with a focus on growing core deposits and transaction accounts [8] - The commercial real estate (CRE) sector showed good activity in Q4 after a period of selectivity due to credit and liquidity concerns [9] Company Strategy and Development Direction - The company aims for mid-single digit loan growth in 2025, with a focus on commercial and industrial (C&I) lending and commercial real estate [10][30] - A strategic acquisition of Center Bank in Cincinnati was announced, expected to enhance market presence and growth potential [12][48] - The management emphasized the importance of maintaining top quartile profitability while pursuing growth opportunities [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in 2025, supported by a strong regional accountability and new leadership in key markets [9] - The evolving interest rate environment is expected to favor NIM, with projections for gradual improvement in fee income [10][18] - Management acknowledged challenges from higher credit costs and deposit pricing pressures but remains focused on growth and profitability [6][10] Other Important Information - The company repurchased 477,000 shares in the quarter but paused buybacks following the acquisition announcement [22] - Customer experience metrics improved, with historic highs in Net Promoter Score and branch customer satisfaction [12] Q&A Session Summary Question: Can you discuss the fee income, particularly in mortgage banking and card income? - Management noted that card income has stabilized post-Durbin impact, with mortgage banking performing well despite market conditions [25][26] Question: What are the expectations for loan growth in 2025? - Management anticipates mid-single digit growth, with contributions from both CRE and C&I lending [30][31] Question: How does the company plan to manage NIM expansion? - The company expects NIM expansion to come primarily from loan growth and positive replacement yields, with conservative deposit cost forecasts [42][46] Question: Can you provide insights on the Center Bank acquisition? - The acquisition is seen as a strategic move to enhance market presence in Cincinnati, with expectations for significant growth potential [48][49] Question: How is the credit quality holding up? - Management reported improvements in asset migration trends and a reduction in non-performing loans, indicating a positive trajectory [60][62]