Financial Data and Key Metrics Changes - The company ended Q3 2025 with a cash position of approximately $238.56 million [38] - Total GAAP operating expenses for Q3 2025 were $234.2 million, a decrease from $568.4 million in Q2 2025, primarily due to a higher stock-based compensation expense recorded in the previous quarter [39] - Non-GAAP operating expenses for Q3 2025 were $103.4 million, an increase from $89.6 million in the previous quarter, mainly due to increased R&D expenses related to ongoing trials [39] Business Line Data and Key Metrics Changes - The HARMONi-3 study is enrolling ahead of goals, with over 80% of the planned 600 squamous patients cohort already enrolled, expected to complete enrollment in Q1 2026 [37] - The non-squamous cohort in HARMONi-3 is also enrolling ahead of plan, with an expected completion for 1,000 patients in the second half of 2026 [37] Market Data and Key Metrics Changes - The company announced the expansion of its clinical development program with the addition of the global phase III HARMONi-GI3 trial, evaluating ivonescimab as first-line therapy in unresectable metastatic colorectal cancer [24] - The HARMONi-6 study demonstrated a significant progression-free survival benefit for ivonescimab in advanced squamous non-small cell lung cancer, with a hazard ratio of 0.60 [18] Company Strategy and Development Direction - The company aims to establish ivonescimab as a new standard of care for advanced squamous non-small cell lung cancer, with ongoing studies to support this goal [20] - The strategic focus includes expanding ivonescimab's application beyond lung cancer to other solid tumors, with a total of 14 planned or ongoing phase III clinical trials [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the results of the HARMONi-6 study and its implications for future studies, highlighting the potential for ivonescimab to address unmet needs in oncology [23] - The company is preparing to submit a Biologics License Application (BLA) for ivonescimab based on the HARMONi study results, with expectations for FDA approval [27][28] Other Important Information - The company has had continuous interactions with the FDA regarding the BLA submission and is confident in the safety and efficacy data generated from the HARMONi studies [54] - The HARMONi-3 study has undergone protocol amendments to separate statistical analyses by histology, which is expected to reduce regulatory risks [74] Q&A Session Summary Question: When could we expect to see the first OS cut from HARMONi-6? - Management indicated that specific timelines are difficult to disclose, but a review in 2026 is a fair estimate [44] Question: What options are being evaluated to extend the runway for funding? - The company has an ATM with approximately $350 million and has received inbound interest for additional capital [48] Question: Can you provide any color on the BLA submission and interactions with the FDA? - Continuous interactions with the FDA have been positive, and the company is moving forward with the BLA submission based on the data from HARMONi [54] Question: What prompted the protocol amendments to HARMONi-3? - The amendments were made to accelerate the front-line lung cancer opportunity and reduce regulatory risks by separating analyses by histology [74]

Financial Data and Key Metrics Changes - The company ended Q3 2025 with a cash position of approximately $238.66 million [38] - Total GAAP operating expenses for 2025 were $234.2 million, a decrease from $568.4 million in the previous year, primarily due to higher stock-based compensation expenses recorded in the previous quarter [39] Business Line Data and Key Metrics Changes - The company announced the extension of its Phase III clinical development programs, including a global Phase III study in first-line colorectal cancer [3][24] - The HARMONY six study demonstrated a median progression-free survival (PFS) of 11.14 months for ivanesumab plus chemotherapy compared to 6.90 months for tislelizumab plus chemotherapy, indicating a significant improvement [12][19] Market Data and Key Metrics Changes - The HARMONY six trial included a predominantly male population with advanced squamous non-small cell lung cancer, showing a consistent benefit across various PD-L1 expression levels [11][19] - The company plans to expand its clinical trials beyond lung cancer, with the addition of the HARMONY GI III trial for unresectable colorectal cancer [24][31] Company Strategy and Development Direction - The company intends to submit a Biologics License Application (BLA) for ivanesumab based on the results of the HARMONY study, aiming to establish it as a new standard of care for advanced squamous non-small cell lung cancer [4][27] - The strategic focus includes increasing the number of ongoing Phase III clinical trials to 14, evaluating ivanesumab in multiple solid tumors [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the results of the HARMONY six study and its implications for future studies, highlighting the potential of ivanesumab to provide clinically meaningful improvements for patients [19][24] - The company is actively engaging with the FDA regarding the BLA submission and is confident in the strength of its data package [55][62] Other Important Information - The HARMONY six study was conducted in China and sponsored by Akeso, with all relevant data generated and analyzed by them [3][10] - The company has plans to activate clinical trial sites in the U.S. for the HARMONY GI III study by the end of 2025 [31] Q&A Session Summary Question: When could the first overall survival (OS) cut from HARMONY six be expected? - Management indicated that while they cannot provide specific timelines, they anticipate something can be reviewed in 2026, but it is event-driven [42][45] Question: What are the funding options being evaluated to extend the runway? - Management mentioned that they have an ATM out there with approximately $350 million and have received inbound interest for additional capital [49][51] Question: Can you provide any color on the BLA submission and interactions with the FDA? - Management confirmed that they are actively finalizing the BLA package and have had continued interactions with the FDA, looking forward to feedback after submission [54][55] Question: What prompted the protocol amendments to HARMONY three? - The amendments were made to accelerate the frontline lung cancer opportunity and reduce regulatory risks by separating the two histologies into individual analyses [80][84]

Financial Data and Key Metrics Changes - The company ended Q3 2025 with a cash position of approximately $238.56 million [36] - Total GAAP operating expenses for Q3 2025 were $234.2 million, a decrease from $568.4 million in Q2 2025, primarily due to a higher stock-based compensation expense recorded in the previous quarter [36][37] - Non-GAAP operating expenses for Q3 2025 were $103.4 million, an increase from $89.6 million in the previous quarter, mainly due to increased R&D expenses related to ongoing trials [37] Business Line Data and Key Metrics Changes - The Harmony Three study is enrolling ahead of goals, with over 80% of the planned 600 squamous patients cohort expected to complete enrollment in Q1 2026 [35] - The Harmony GI3 study, evaluating ivonescimab in colorectal cancer, is set to begin activating clinical trial sites in the U.S. by the end of 2025, with an expected enrollment of 600 patients [30][22] Market Data and Key Metrics Changes - The Harmony Six study demonstrated a median progression-free survival (PFS) of 11.14 months for ivonescimab plus chemotherapy compared to 6.90 months for the control group, indicating a significant clinical benefit [10][17] - The study showed consistent benefits across various PD-L1 expression levels, with hazard ratios of 0.55 for negative, 0.63 for low, and 0.71 for high PD-L1 expression [11][17] Company Strategy and Development Direction - The company plans to submit a Biologics License Application (BLA) for ivonescimab based on the Harmony study results, aiming to establish it as a new standard of care for advanced squamous non-small cell lung cancer [24][19] - The clinical development program has expanded to include multiple phase three trials across various solid tumors, indicating a strategic focus on broadening the application of ivonescimab [22][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the results from Harmony Six and its implications for future studies, emphasizing the potential of ivonescimab to improve outcomes for patients with limited treatment options [21][19] - The company is actively engaging with the FDA and is confident in the safety and efficacy data supporting the BLA submission [52][51] Other Important Information - The Harmony Six study was conducted in China and sponsored by Akeso Inc., with all relevant data managed and analyzed by them [2][6] - The company highlighted the importance of the safety profile of ivonescimab, noting low rates of adverse events leading to discontinuation [12][17] Q&A Session Summary Question: When could the first overall survival (OS) cut from Harmony Six be expected? - Management indicated that a review in 2026 is likely, but specific timelines are difficult to disclose [41][43] Question: What options are being evaluated to extend the runway for funding? - The company has an ATM with approximately $350 million and has received inbound interest for additional capital [47][48] Question: Can you provide insights on the BLA submission and interactions with the FDA? - Continuous interactions with the FDA have been positive, and the company is preparing to submit the BLA based on the Harmony data [51][52] Question: What prompted the protocol amendments to Harmony Three? - The amendments were made to accelerate the front-line lung cancer opportunity and reduce regulatory risks by separating analyses for squamous and non-squamous histologies [70][71]

Financial Data and Key Metrics Changes - The bank's net interest margin (NIM) compressed by about 8 basis points due to front-loading of interest rate cuts on the asset side of the balance sheet [6] - The capital adequacy ratio remained stable at around 19.9% to 20% with a slight change of 10 basis points [31] - The bank's return on assets (ROA) has been operating between 1.8% to 1.95% over the last eight quarters [56] Business Line Data and Key Metrics Changes - Loan growth has accelerated across segments, with a focus on disciplined pricing and market share gains in deposits [6][8] - The bank's contingent provisions increased by about INR 1,600 crore, enhancing resilience [11][65] - Fee income grew by approximately 9%, indicating consistent growth across various products [41] Market Data and Key Metrics Changes - The bank's loan-to-deposit ratio (LDR) started the year at about 96 and is expected to decrease below 90 as part of the strategic objectives [20] - Retail deposits accounted for about 83% of total deposits, with a slight increase in the proportion of retail deposits during the quarter [38] Company Strategy and Development Direction - The bank continues to invest in technology and distribution to enhance customer experience and operational efficiency [7][49] - The strategy includes maintaining credit standards while participating in growth opportunities in unsecured loans and mortgages [71] - The bank aims to grow faster than the market in FY 2027, with a focus on sustainable growth and capital consumption [29] Management's Comments on Operating Environment and Future Outlook - The domestic economy is showing signs of strength, supported by fiscal and monetary measures, which is expected to boost loan growth [5] - Management expressed optimism about the economic cycle and its sustainability beyond the festive period [28] - The bank is focused on maintaining asset quality and managing expenses tightly to create operating leverage [6][8] Other Important Information - The bank is exploring opportunities for cross-border transactions following recent regulatory relaxations [90] - The bank's home loan segment has seen improvements in turnaround times, now at two days for individual loans and three days for self-employed [50] Q&A Session Summary Question: Recovery in NPL movement - Management indicated that recoveries were boosted by a one-off upgrade contributing approximately 10 basis points to the NPL ratio [11][14] Question: Guidance on margins - The bank expects exit margins to improve, with stable rates anticipated to positively impact margins over the next few quarters [19] Question: Deposit growth and LDR - The bank's strategic objective is to reduce LDR below 90 while growing in line with the market [20][21] Question: Capital adequacy and growth - Management confirmed that the bank has sufficient capital for three to four years of growth, with a focus on maintaining higher capital levels for unforeseen risks [29][31] Question: Personal loans and risk appetite - The bank maintains strict credit standards and is cautiously optimistic about growth in unsecured loans [71] Question: Home loans and market share - The bank aims to grow its home loan segment without compromising on margins, focusing on long-term customer relationships [74] Question: Gold loans and yields - Yields on gold loans remain attractive, and the bank is cautious about maintaining clarity in terms with clients [76] Question: Credit card growth - The bank has seen a tepid addition to net receivables due to selective participation in spending during festive periods [82] Question: SME loan opportunities - There is a positive outlook for SME loans, with actual credit demand increasing in that segment [89]

Financial Data and Key Metrics Changes - The bank experienced a compression in Net Interest Margin (NIM) by approximately eight basis points due to front-loading of interest rate cuts, but expects a positive tailwind effect from deposit repricing over the next six to twelve months [8][20] - The cost of funds improved by about 18 to 20 basis points in the quarter, with a significant portion of the changes in time deposit rates expected to take longer to fully reflect [21][44] - The bank's capital ratios have seen a buildup, with contingent provisions added by about 1,600 crores, indicating a cautious approach to maintaining resilience [15][34] Business Line Data and Key Metrics Changes - Loan growth has picked up across segments, with the bank focusing on disciplined pricing and market share gains in deposits [7][8] - The bank's loan-to-deposit ratio (LDR) is expected to decrease below 90, with strategic objectives set for loan growth to align with market trends [24][25] - Fee income grew by approximately 9%, indicating consistent growth across various products [57] Market Data and Key Metrics Changes - The bank's retail deposits increased, while non-retail deposits decreased, reflecting a strategic focus on retail banking [52] - The bank's market share in deposits is influenced by disciplined pricing strategies, with a year-on-year growth of about 15% in average deposits [53] Company Strategy and Development Direction - The bank is investing in technology and distribution to enhance operational leverage and customer experience, including initiatives in Generative AI [9][75] - The focus remains on maintaining healthy asset quality and managing expenses tightly, with expectations of stability and positive bias in key financial metrics over the medium to long term [10][11] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the domestic economy's strength, despite global volatility, and highlighted the positive impact of fiscal and monetary measures on economic activity [5][6] - There is a belief that the economic cycle is beginning to improve, with expectations of sustained growth beyond the festive period [33] Other Important Information - The bank is cautious about credit standards in unsecured loans, maintaining a disciplined approach to underwriting while participating in growth opportunities [94] - The bank's home loan segment is expected to see growth, with improvements in turnaround times and a focus on customer relationships [68][98] Q&A Session Summary Question: Recovery in NPL movement - Management indicated that recoveries included a one-off improvement from an NPA that performed satisfactorily, contributing to a 10 basis point upgrade [15][17] Question: Guidance on margins - The bank confirmed that exit margins are expected to improve, with stable rates anticipated to positively impact NIMs [22][23] Question: Deposit growth and LDR - The bank's LDR is expected to decrease below 90, with a strategic focus on aligning loan growth with market trends [24][25] Question: Capital utilization post-merger - Management noted that while capital ratios are high, they plan to utilize capital for growth opportunities as the bank resumes a faster growth trajectory [34][35] Question: Fee income growth - The fee income growth was attributed to regular growth rather than one-off events, with consistent performance across various products [57] Question: Home loan growth and market share - The bank is focused on maintaining credit quality while gradually increasing market share in home loans, with a cautious approach to pricing [98] Question: Gold loan yields - Yields on gold loans remain attractive, with the bank maintaining a cautious approach to ensure clarity in terms for clients [102] Question: Credit card growth - The bank noted a cautious approach to credit card issuance, focusing on economic sense in participation during festive periods [114] Question: SME loan opportunities - Management expressed optimism about the SME segment, noting positive credit demand and stable asset quality [126]

Financial Data and Key Metrics Changes - Profit before tax, excluding treasury, grew by 9.1% year on year to INR 161.64 billion in Q2 FY 2026 [5] - Core operating profit increased by 6.5% year on year to INR 170.78 billion [5] - Profit after tax grew by 5.2% year on year to INR 123.59 billion [5] - Average deposits grew by 9.1% year on year and 1.6% sequentially [5] - Total deposits grew by 7.7% year on year and 0.3% sequentially [6] - Net NPL ratio improved to 0.39% from 0.41% in the previous quarter [8] - Capital position remained strong with a CET1 ratio of 16.35% [9] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 10.6% year on year and 3.3% sequentially [6] - Retail loan portfolio grew by 6.6% year on year and 2.6% sequentially [6] - Business Banking portfolio grew by 24.8% year on year and 6.5% sequentially [7] - Corporate portfolio grew by 3.5% year on year and 1% sequentially [7] - Mortgage portfolio grew by 9.9% year on year and 2.8% sequentially [11] - Credit card portfolio grew by 6.4% year on year and 8.4% sequentially [12] Market Data and Key Metrics Changes - Average liquidity coverage ratio for the quarter was about 127% [6] - The overseas loan portfolio constituted 2.3% of the overall loan book [7] - The gross NPA additions were INR 50.34 billion in the current quarter [14] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [4] - The company aims to maintain a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable returns [9] Management Comments on Operating Environment and Future Outlook - Management is positive on growth outlook, noting that growth has picked up across retail portfolios [32] - Corporate India is well-funded with strong balance sheets, and the bank remains active in the corporate space [33] - Margins are expected to remain range-bound due to competitive dynamics and deposit repricing [35][37] Other Important Information - Operating expenses increased by 12.4% year on year, reflecting retail business-related expenses and festive season marketing [22] - The total provisions during the quarter were INR 9.14 billion, reflecting healthy asset quality across segments [23] Q&A Session Summary Question: Is there visibility on continued market share gains on CASA? - Management noted that CASA growth has improved due to steady distribution expansion and digital platforms [40][41] Question: How does the bank view the trade-off between growth and profitability? - Management emphasized that they do not see it as a trade-off but focus on risk-adjusted PPOP [49][50] Question: What is the outlook for vehicle loans and personal loans? - Management is positive on growth in these segments and is increasing disbursements [55][56] Question: How does the bank track the end use of crop loans? - Management stated that processes for PSL classification are reviewed, but no specific issues were noted [70]

Financial Data and Key Metrics Changes - Profit before tax, excluding treasury, grew by 9.1% year-on-year to INR 161.64 billion in Q2 FY26 [2][18] - Core operating profit increased by 6.5% year-on-year to INR 170.78 billion [2] - Profit after tax grew by 5.2% year-on-year to INR 123.59 billion [3][18] - Average deposits grew by 9.1% year-on-year and 1.6% sequentially [3] - Net interest income increased by 7.4% year-on-year to INR 215.29 billion [13] - Non-interest income, excluding treasury, grew by 13.2% year-on-year to INR 73.56 billion [15] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 10.6% year-on-year [3] - Retail loan portfolio grew by 6.6% year-on-year [3] - Business banking portfolio grew by 24.8% year-on-year [4] - Mortgage portfolio grew by 9.9% year-on-year [6] - Auto loans grew by 1.4% year-on-year [6] - Personal loans declined by 0.7% year-on-year [6] Market Data and Key Metrics Changes - Average current and savings account deposits grew by 9.7% year-on-year [3] - Total deposits grew by 7.7% year-on-year [3] - The net NPA ratio improved to 0.39% from 0.41% in the previous quarter [4] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach [2] - The company aims to maintain a strong balance sheet and prudent provisioning while delivering sustainable returns [5] - Continued investment in distribution and capacity allocation to higher growth opportunities is emphasized [24] Management Comments on Operating Environment and Future Outlook - Management is positive on growth outlook, noting that growth has picked up across retail portfolios [24] - Corporate India is well-funded, and banks are one of many funding sources [25] - Margins are expected to remain range-bound due to various market dynamics [26][27] Other Important Information - The capital position remains strong with a CET1 ratio of 16.35% [5] - Total provisions during the quarter were INR 9.14 billion, reflecting healthy asset quality [17] Q&A Session Summary Question: Is there visibility on growth acceleration? - Management noted that growth has picked up and is positive on the outlook, but did not provide a specific year-end loan growth number [24] Question: Comments on corporate loan growth environment? - Management indicated that corporate India is well-funded and banks are just one of the funding sources [25] Question: Will margins improve or stay stable? - Margins are expected to be range-bound, with some deposit repricing anticipated [26][27] Question: Insights on Kasa market share growth? - Management highlighted steady distribution expansion and digital platforms as key drivers for Kasa growth [30][32] Question: Thoughts on capital adequacy and payout ratios? - Management emphasized maintaining a strong balance sheet and leveraging capital for growth, with no specific plans on payouts [33][34] Question: Retail asset quality and slippages? - Management noted that retail slippages have improved, indicating a positive trend in asset quality [51][58]

Financial Data and Key Metrics Changes - The company reported quarterly earnings per share of $2.78, a 23% increase year-over-year [4][13] - Total revenue increased by 9% year-over-year to approximately $3.5 billion, with fee revenue growth of nearly 12% [13][14] - Pre-tax margin expanded approximately 270 basis points to 31%, and return on tangible common equity was approximately 160 basis points higher at 21% compared to the previous year [15][24] Business Line Data and Key Metrics Changes - In investment services, servicing fees grew by 7% year-over-year, with assets under custody and administration (AUCA) reaching a record $51.7 trillion, a 10% increase [14][16] - Management fees increased 16% year-over-year to a record $612 million, supported by higher average market levels and net inflows, with assets under management (AUM) climbing to a record $5.4 trillion [17][18] - FX trading services and securities finance revenues collectively increased by 17% year-over-year [14] Market Data and Key Metrics Changes - The company achieved nearly $50 million in servicing fee revenue wins in the quarter, bringing the year-to-date total to approximately $250 million [16] - Net inflows totaled $26 billion for the quarter, reflecting solid momentum across ETFs, cash, and institutional index fixed income [17] Company Strategy and Development Direction - The company is focused on advancing product innovation and enhancing capabilities to better serve clients, with strategic initiatives launched in the third quarter [5][6] - A strategic partnership with Apex Fintech Solutions aims to expand wealth services offerings through digital custody and clearing solutions [7][16] - The company is strategically positioning itself to bridge traditional and digital finance, with a forthcoming launch of a digital asset platform [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong business momentum and the effectiveness of their strategy [11][12] - The company expects total fee revenue growth in the range of 8.5% to 9% for 2025, an improvement from previous guidance [25] - Management noted that net interest income (NII) is expected to improve in the fourth quarter, driven by stable deposit levels and other non-rate-related tailwinds [34][40] Other Important Information - The company returned nearly $1.5 billion in capital to shareholders year-to-date, including $637 million in the third quarter [10][24] - The quarterly common stock dividend was increased by 11% to $0.84 [10][24] Q&A Session Summary Question: Thoughts on balance sheet management and operating dynamics - Management emphasized the importance of partnering with the team to drive execution and profitability, noting strong deposit flows and solid trends in the balance sheet [30][33] Question: Expectations for net interest income (NII) improvement - Management indicated that NII is expected to rise due to stable deposit levels and the reinvestment of cash flows at higher rates [34][35] Question: Insights on State Street's underperformance compared to peers - Management highlighted the underappreciated fee-based growth and the strategic overlap of their markets business with investment management [48][50] Question: Update on fee trajectory and installation cycle - Management reported a significant increase in backlog and expressed confidence in the installation cycle, with a healthy mix of back office and private market opportunities [55][58] Question: Flexibility in managing expenses and operating leverage - Management confirmed the ability to pull discretionary levers to maintain positive operating leverage, even in a downturn [70][72] Question: Capital management and potential for larger acquisitions - Management reiterated a disciplined approach to M&A, focusing on organic growth capabilities while remaining open to strategic opportunities [77][78]

Financial Data and Key Metrics Changes - The company reported quarterly earnings per share of $2.78, an increase of 23% year over year [6] - Total revenue increased by 9% year over year to approximately $3.5 billion, with fee revenue growth of nearly 12% excluding notable items [16] - Pre-tax margin expanded to 31%, and return on tangible common equity was 21%, up 160 basis points year over year [17] Business Line Data and Key Metrics Changes - Servicing fees increased by 7% year over year, driven by higher average market levels and net new business [17] - Management fees rose by 16% year over year to a record $612 million, supported by higher average market levels and net inflows [19] - Securities finance revenues increased by 19% year over year, driven by robust balance growth across both Agency Lending and Prime Services [22] Market Data and Key Metrics Changes - Assets under management (AUM) reached a record $5.4 trillion, up 15% year over year [19] - The company ended the quarter with a record $51.7 trillion in assets under custody and administration (AUCA), increasing by 10% year over year [17] - FX trading revenue increased by 16% year over year, with client volumes up 11% [21] Company Strategy and Development Direction - The company is focused on product innovation and enhancing capabilities to better serve clients, with strategic initiatives launched in the third quarter [7] - A strategic partnership with Apex Fintech Solutions aims to expand wealth services offerings, enhancing digital custody and clearing solutions [10] - The company is positioning itself as a bridge between traditional and digital finance, with plans to launch a digital asset platform [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong deposit flows and expectations for net interest income (NII) to improve in the fourth quarter [36] - The company anticipates total fee revenue growth in the range of 8.5% to 9% for 2025, an improvement from previous guidance [27] - Management emphasized the importance of ongoing productivity initiatives and technology investments to support future growth [25] Other Important Information - The company returned nearly $1.5 billion in capital to shareholders year to date, including $637 million in the third quarter [13] - The quarterly common stock dividend was increased by 11% to $0.84 [13] - The standardized CET1 ratio was 11.3% at quarter end, reflecting capital generated from earnings [26] Q&A Session Summary Question: Thoughts on balance sheet management and operating dynamics - Management is focused on driving execution and profitability, with opportunities for optimization in balance sheet management [31][34] Question: Expectations for net interest income (NII) improvement - NII is expected to improve due to stable deposit levels and non-rate related tailwinds, including the reinvestment of cash flows at higher rates [37][40] Question: Insights on institutional outflows and aspirations outside core footprint - Flows were positive, but there were some outflows from institutional clients. The company is broadening its active management footprint selectively [51][54] Question: Underperformance of State Street stock compared to peers - Management believes the fee-based tailwinds and core growth opportunities are underappreciated, with a focus on improving shareholder value [60][62] Question: Flexibility in expense management and operating leverage - Management has discretionary levers to maintain positive operating leverage, even in a downturn, while continuing to invest strategically [90][93]

Financial Data and Key Metrics Changes - Glacier Bancorp reported net income of $67.9 million or $0.57 per diluted share, representing a 29% increase from the prior quarter and a 33% increase year-over-year [3][4] - Pre-tax, pre-provision net revenues for the first nine months increased by $77.1 million or 45% compared to the same period last year [4] - Net interest income reached $225 million, up $18 million or 9% from the prior quarter and up $45 million or 25% year-over-year [4][6] - Non-interest expense was $168 million, up $13 million or 8% from the second quarter, primarily due to acquisition-related costs [6] Business Line Data and Key Metrics Changes - The loan portfolio grew by $258 million to $18.8 billion, reflecting a 6% annualized growth from the prior quarter, with commercial real estate being a key driver [4][5] - Deposits increased to $22 billion, up 4% annualized from the last quarter, with non-interest-bearing deposits growing by 5% [4][5] - Non-interest income totaled $35 million, up $2.4 million or 7% from the prior quarter [6] Market Data and Key Metrics Changes - The net interest margin on a tax-adjusted basis expanded to 3.39%, up 18 basis points from the prior quarter and up 56 basis points year-over-year [4][5] - The loan yield for the current quarter was 5.97%, an increase of 11 basis points from the prior quarter and 28 basis points from the same quarter last year [5] Company Strategy and Development Direction - The company completed the core conversion of the Bank of Idaho and closed the acquisition of Guaranty Bank and Trust, adding $3.1 billion in assets and expanding its presence in Texas [2][3] - The focus is on delivering a flawless conversion of Guaranty in Q1 2026 while ensuring employee and customer satisfaction [3][14] - The company aims to maintain a strong capital position and has declared its 162nd consecutive quarterly dividend of $0.33 per share [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued margin growth, anticipating an additional 18 to 20 basis points increase in Q4 [11][12] - The competitive landscape is described as geographic-specific, with more pricing competition in larger markets but stable conditions in areas with strong market share [20] - Credit quality remains strong, with non-performing assets at 0.19% of total assets and net charge-offs at $2.9 million for the quarter [6] Other Important Information - The tangible book value per share increased to $20.46, up 8% year-over-year [7] - The company maintains a conservative approach to risk management, with an allowance for credit at 1.22% of total loans [6] Q&A Session Summary Question: Margin outlook in light of recent rate cuts - Management expects continued margin growth, projecting an increase of 18 to 20 basis points in Q4, but anticipates moderation in the pace of growth for 2026 [11][12] Question: Reception in the Texas market and future partnerships - The Guaranty acquisition is seen as a strong cultural fit, and management is optimistic about future partnerships once the conversion is complete [14] Question: Loan growth and competitive landscape - Loan growth remains solid, with consistent demand and a stable pipeline, although competition is noted in larger markets [20] Question: Credit quality and industry pressures - Credit quality is strong, with no significant risks identified outside of the agricultural sector, which is experiencing some pressures [21] Question: Future M&A strategy - Management does not prioritize one market over another but sees opportunities across the entire area, focusing first on successful integration of Guaranty [42] Question: Deposit costs and beta expectations - The spot deposit cost was 1.22%, with expectations for a beta of 15% to 20% going forward [29] Question: Expense guidance and cost savings - Core non-interest expense is projected to increase due to acquisitions, with expectations for cost savings to begin post-conversion in 2026 [39]