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 [4][5] - Pretax pre-provision net revenues for the first nine months of the year increased by $77.1 million or 45% compared to the same period last year [5] - Net interest income rose to $225 million, up $18 million or 9% from the prior quarter and up $45 million or 25% year-over-year [6] - The net interest margin expanded to 3.39%, an increase of 18 basis points from the prior quarter and 56 basis points year-over-year [6][10] - Non-interest expense was $168 million, up $13 million or 8% from the second quarter, primarily due to acquisition-related costs [7] 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 [5] - Deposits increased to $22 billion, up 4% annualized from the last quarter, with non-interest bearing deposits growing by 5% [5][6] - Non-interest income totaled $35 million, up $2.4 million or 7% from the prior quarter [7] Market Data and Key Metrics Changes - The company successfully completed the core conversion of the Bank of Idaho, which had assets of approximately $1.4 billion, and closed the acquisition of Guaranteed Bank and Trust, adding $3.1 billion in assets [3][4] Company Strategy and Development Direction - The company is focused on delivering a flawless conversion of the Guaranty acquisition in 2026 and ensuring employee and customer satisfaction [4] - Management expressed optimism about future growth opportunities in Texas following the acquisition of Guaranty Bank and Trust [4][21] Management's Comments on Operating Environment and Future Outlook - Management noted strong margin expansion and loan growth, with expectations for continued growth in net interest margin into the fourth quarter [6][16] - The company anticipates a moderation in the pace of margin growth in 2026, influenced by factors such as loan and deposit growth and Federal Reserve actions [16][60] Other Important Information - The efficiency ratio remained at 62%, down from 65% a year ago, indicating improved operational efficiency [7] - The allowance for credit losses remains at 1.22% of total loans, reflecting a conservative risk management approach [8] Q&A Session Summary Question: Insights on margin expansion and future guidance - Management indicated continued improvement in margin, expecting an additional 18 to 20 basis points growth in Q4, influenced by the Guaranty acquisition [15][16] Question: Reception in the Texas market and future partnerships - Management reported a strong cultural fit with Guaranty and indicated ongoing conversations for potential partnerships in Texas [21][22] Question: Loan growth trends and competitive landscape - Management noted consistent loan demand and a competitive landscape that varies by geography, with pricing competition more pronounced in larger markets [30][33] Question: Credit quality and industry pressures - Management highlighted strong credit quality, with no significant risks outside of the agricultural sector, which is experiencing some pressures [35][36] Question: Future M&A strategy and focus areas - Management stated that they do not prioritize one market over another and will focus on successful integration before pursuing further acquisitions [64][65]

Financial Data and Key Metrics Changes - Liberty Energy reported revenue of $947 million in Q3 2025, a decrease of 9% sequentially from $1 billion in the prior quarter [18] - Adjusted EBITDA for the third quarter was $128 million, down from $181 million in the previous quarter [19] - Net income for Q3 was $43 million, compared to $71 million in the prior quarter, with adjusted net loss of $10 million compared to adjusted net income of $20 million in the previous quarter [18][19] - Fully diluted net income per share was $0.26, down from $0.43 in the prior quarter [19] - The company ended the quarter with a cash balance of $13 million and net debt of $240 million, which increased by $99 million from the prior quarter [19] Business Line Data and Key Metrics Changes - The company achieved the highest combined average daily pumping efficiency and safety performance in its history, despite a slowdown in industry completions activity [4] - DigiPrime fleets showed outstanding performance, with significant cost improvements and efficiency metrics [5][6] - General and administrative expenses remained flat at $58 million, including $5 million in non-cash stock-based compensation [19] Market Data and Key Metrics Changes - Oil and gas industry frac activity has fallen below levels required to sustain North American oil production, leading to a moderation in completions [10][11] - The company anticipates that the moderation in activity is transitory, with long-term gas demand and related completions activity on a favorable trajectory [11][12] - Pricing pressure is primarily affecting conventional fleets due to lower industry activity and underutilized fleets [12] Company Strategy and Development Direction - Liberty Energy is focused on expanding its power generation services, with plans to deliver over one gigawatt of capacity by 2027 [10][21] - The company is committed to driving innovation in technology and service quality, leveraging its Digi Technologies platform to enhance operational efficiencies [13][15] - The strategic acquisition of SLB's completion technologies is seen as a key factor in enhancing the company's competitive position [7] Management's Comments on Operating Environment and Future Outlook - Management expects market headwinds to persist in the near term but believes the company is well-positioned to capitalize on future opportunities [5][10] - The leadership team is confident in the growth trajectory of the power business and anticipates further increases in power generation capacity to meet growing demand [10][21] - Management highlighted the importance of long-term partnerships and the need for a strategic approach to securing contracts in the power generation sector [25][56] Other Important Information - The company recently welcomed Alice Yake to its Board, an expert in energy and infrastructure, to guide its power services efforts [15] - Liberty Energy is focused on maintaining a strong balance sheet while investing in both its frac and power businesses [85] Q&A Session Summary Question: Visibility on demand for power generation assets - Management noted that the sales pipeline for power generation has more than doubled in the last 90 days, with increased urgency in customer demand [25] Question: Financing for capacity growth - The company plans to use project-specific debt backed by long-term contracts, with expectations of covering approximately 70% of capital needs through debt [34] Question: Handling transient response for data centers - Management is developing tailored solutions for transient loads, working closely with engineering teams and partners [39] Question: Capital allocation between frac and power - The frac business remains a strong cash generator, and the company will invest in both businesses as opportunities arise without being capital limited [85] Question: Equipment ordering and delivery timelines - The average timeline from equipment delivery to revenue generation is about six months, depending on the technology used [74] Question: Technology evolution in power generation - The company continues to favor gas reciprocating engines but acknowledges the role of turbines and other technologies in its future power generation strategy [90]

Financial Data and Key Metrics Changes - Liberty Energy reported revenue of $947 million in Q3 2025, a decrease of 9% from $1 billion in the previous quarter [16][17] - Adjusted EBITDA for the third quarter was $128 million, down from $181 million in the prior quarter [17] - Net income for Q3 was $43 million, compared to $71 million in the previous quarter, with an adjusted net loss of $10 million versus adjusted net income of $20 million in the prior quarter [17] - Fully diluted net income per share was $0.26, down from $0.43 in the prior quarter, while adjusted net loss per diluted share was $0.06 compared to a profit of $0.12 in the previous quarter [17] - The company ended the quarter with a cash balance of $13 million and net debt of $240 million, which increased by $99 million from the prior quarter [18] Business Line Data and Key Metrics Changes - The company’s DigiPrime fleets achieved record performance in pumping hours, horsepower hours, and proppant volumes during the quarter [4][5] - The DigiPrime pumps realized maintenance cost savings greater than 30% compared to conventional technologies [5] - AI-driven software, STEM Commander, improved stage execution time by 65% and hydraulic efficiency by 5% to 10% [6] Market Data and Key Metrics Changes - Oil and gas industry frac activity has fallen below levels required to sustain North American oil production, leading to a moderation in completions [10][11] - The slowdown in oil markets has offset increased demand for natural gas fleet activity, although long-term fundamentals remain encouraging [11] - The company anticipates a stabilization of industry activity levels and a potential uptick in 2026, assuming supportive commodity prices [19] Company Strategy and Development Direction - Liberty Energy is focused on expanding its power generation services, with plans to secure additional power generation capacity to exceed one gigawatt by 2027 [10][19] - The company is committed to leveraging technology innovation and service quality to strengthen its competitive position [4][12] - The strategic acquisition of SLB's completion technologies is expected to enhance operational efficiency and performance [6][8] Management's Comments on Operating Environment and Future Outlook - Management anticipates that market headwinds will persist in the near term but believes the company is well-positioned to capitalize on future opportunities [4][10] - The leadership team expressed confidence in the growth trajectory of the power business, driven by increasing demand for reliable energy solutions [10][20] - Management noted that the current downturn in frac activity is expected to be transitory, with a favorable trajectory for long-term gas demand [11][12] Other Important Information - The company increased its quarterly cash dividend by 13% to reflect confidence in future growth and commitment to shareholder value [20] - Alice Yake, an energy and infrastructure expert, was welcomed to the board to guide the company’s power services efforts [14] Q&A Session Summary Question: Visibility on demand for power generation assets - Management noted that the sales pipeline for power generation has more than doubled in the last 90 days, with increased urgency in customer demand [25][26] Question: Financing for capacity growth - The financing for power plants will likely involve long-term Energy Services Agreements (ESAs) and project-specific debt, with approximately 70% of capital needs potentially covered by debt [32] Question: Handling transient response for data centers - The company is developing proprietary solutions tailored to specific generation assets to meet transient load demands [35][36] Question: Capital allocation between frac and power - Management stated that investments in the frac business will continue based on the timing of the cycle, and there will be no capital limitations affecting both businesses [71] Question: Equipment ordering and delivery specifics - The majority of incremental capacity will consist of gas reciprocating engines, with turbines playing a role in the future [74][75]

Financial Data and Key Metrics Changes - WaFd Inc. reported net income available to common shareholders of $56.9 million or $0.72 per diluted share for Q4 2025, a slight decrease from $0.73 per share in Q3 2025 and an increase from $0.71 per share in Q4 2024 [5] - For the full fiscal year 2025, net income available to common shareholders was $211.4 million or $2.63 per diluted share, compared to $2.50 per share in fiscal 2024 [5] - Total cash decreased by $152 million in Q4, while total investments and mortgage-backed securities increased to $279 million [8] Business Line Data and Key Metrics Changes - Loans receivable decreased by $188 million during the quarter, primarily due to a decrease in inactive loan types, which fell by $216 million [6] - Loan originations for the quarter were $1.4 billion, significantly higher than $700 million in the previous quarter, marking the first time this fiscal year that originations outpaced repayments [6] - Non-interest income increased slightly to $18.4 million, with $4.6 million coming from WaFd Insurance, which saw a 12.5% revenue increase year-over-year [9] Market Data and Key Metrics Changes - Deposits increased by $51 million during the quarter, with non-interest-bearing deposits rising by $80 million or 3.2% [7] - Core deposits accounted for 78% of total deposits, up from 75% at the prior year-end [7] - The net loan-to-deposit ratio ended the quarter at 93.7% [7] Company Strategy and Development Direction - The company is transitioning from a thrift to a commercial bank, with a new strategic plan called Build 2030 aimed at increasing non-interest-bearing deposits from 11% to 20% by the end of fiscal 2030 [23] - The focus is on serving small businesses to achieve lower funding costs, with a reorganization of frontline bankers into specialized teams [24] - WaFd has launched WaFd Wealth Management, aiming to grow assets under management to $1 billion in the first two years [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the elevated interest rate environment and economic uncertainty have impacted loan demand and credit quality [15] - The company expects to see 8% to 12% growth in the active loan portfolio in the next year, while anticipating a runoff of $200 million to $300 million per quarter in inactive loans [42] - Management remains optimistic about the future, citing improvements in technology and client engagement as key drivers for profitability [71] Other Important Information - The company has exited the single-family mortgage lending market, which has allowed for a shift towards mortgage-backed securities [6] - WaFd's liquidity and capital profile are strong, with all capital ratios exceeding regulatory well-capitalized levels [8] - The company is actively managing credit quality, with delinquent loans at 0.6% and non-performing assets at 0.54% of total assets [11][12] Q&A Session Summary Question: What are the expectations for net growth in fiscal 2026? - Management expects 8% to 12% growth in the active portfolio, with inactive loans running off about $200 million to $300 million per quarter [42] Question: Can you provide an update on rate sensitivity and margin expectations? - Management indicated that margin could expand with future rate cuts, but noted a lag in full effectiveness [46] Question: What are the drivers behind the decrease in core loan yields? - The decrease was primarily due to an increase in non-accrual loans, which had a 3 basis point impact on the margin [51] Question: What is the outlook for time deposits? - Management aims for overall growth rather than shrinking the time deposit book, expecting to break even or see slight growth in time deposits [62] Question: How is the company approaching stablecoin and potential partnerships? - Management is monitoring the situation closely and sees potential opportunities but has not announced any partnerships yet [58]

Financial Data and Key Metrics Changes - Woffett reported net income available to common shareholders of $56.9 million or $0.72 per diluted share for Q4 2025, a slight decrease from $0.73 per share in Q4 2024 [7][8] - For the full year 2025, net income available to common shareholders was $211.4 million or $2.63 per diluted share, compared to $2.50 per share in 2024 [8] - Total noninterest income increased slightly to $18.4 million, with Woffett Insurance contributing $4.6 million for the quarter and $19.5 million for the fiscal year, a 12.5% increase over the prior year [12][13] Business Line Data and Key Metrics Changes - Loans receivable decreased by $188 million during the quarter, primarily due to a decrease in inactive loan types, while loan originations increased to $1.4 billion, outpacing repayments for the first time this fiscal year [8][9] - Active loan types, including multifamily and commercial real estate, saw significant increases in production, with commercial real estate production rising from $44 million to $211 million [15][16] - The net loan to deposit ratio ended the quarter at 93.7%, with core deposits making up 78% of total deposits, up from 75% a year ago [10][11] Market Data and Key Metrics Changes - Deposits increased by $51 million during the quarter, with noninterest-bearing deposits rising by 3.2% [10] - The former Luther Burbank deposits decreased by $1 billion over the fiscal year, reflecting a strategic effort to lower the cost of funds [10] - The liquidity and capital profile remains strong, with all capital ratios exceeding regulatory well-capitalized levels [12] Company Strategy and Development Direction - The company is transitioning from a thrift to a commercial bank, focusing on becoming a digital-first bank and increasing transaction deposits [24][31] - The new strategic plan, "Build 2030," aims to increase noninterest-bearing deposits from 11% to 20% by the end of fiscal 2030 [31] - Woffett has reorganized its banking teams to better serve commercial credit needs and has expanded its product offerings, including SBA loans [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising interest rates and economic uncertainty but expressed confidence in the company's strategic direction and technology investments [21][24] - The company expects to see 8% to 12% growth in its active loan portfolio in the next year, while anticipating a runoff of $200 million to $300 million in inactive loans per quarter [56][57] - Management highlighted the importance of maintaining a disciplined approach to credit risk as the company grows [37] Other Important Information - The company successfully launched Woffett Wealth Management, aiming to grow assets under management to $1 billion within two years [42] - The company is actively involved in advocating for deposit insurance reform to create a more level playing field in the banking industry [45][46] Q&A Session Summary Question: Expectations for net growth in fiscal 2026 - Management anticipates 8% to 12% growth in the active loan portfolio, with an expected runoff of $200 million to $300 million in inactive loans per quarter [56][57] Question: Update on margin and rate sensitivity - The margin at the end of the quarter was 2.82%, and management expects it to expand with future rate cuts, although there is typically a lag in recognizing the benefits [58][60] Question: Core loan yields and impact of nonaccrual loans - The decrease in core loan yields was primarily driven by an increase in nonaccrual loans, which had a three basis point impact on the margin [66][67] Question: Outlook on deposit costs and client reactions to rate cuts - Management plans to be more aggressive with rate cuts now that the loan-to-deposit ratio is lower, and clients have not shown significant pushback against recent rate changes [89][90] Question: Plans for improving profitability and technology offerings - The focus will be on enhancing business accounts and continuously improving technology offerings based on client feedback [100][103]

Financial Data and Key Metrics Changes - Earnings per share for Q3 2025 increased to $0.81, up 11.6% from $0.73 in Q2 2025 [4] - Revenue for Q3 2025 rose 4.2% to $141 million compared to the prior quarter, driven by higher average AUM and an additional day in the period [4][5] - Operating margin improved to 36.1% from 33.6% in Q2 2025 [5] - Ending AUM reached $90.9 billion, positively impacted by market appreciation and net inflows [5] - Liquidity at the end of Q3 was $364 million, up from $323 million in the prior quarter [6] Business Line Data and Key Metrics Changes - Open-end funds experienced positive net flows for five consecutive quarters, although institutional net outflows partially offset this [5] - Net inflows into open-end funds were $768 million, while institutional advisory and subadvisory had net outflows of $455 million and $82 million, respectively [19][20] - The unfunded pipeline grew to $1.75 billion, the largest since Q4 2021, with 66% in US REIT strategies [21][22] Market Data and Key Metrics Changes - The third quarter was positive for risk assets, with technology sector performance exceeding the S&P 500 by over 500 basis points [11] - Natural resource equities increased nearly 21% year-to-date, while diversified real assets strategy rose over 13% [13] - 87% of open-end fund AUM rated four or five stars by Morningstar, slightly down from 90% in the prior quarter [9] Company Strategy and Development Direction - The company is focused on expense management while pursuing growth opportunities, expecting G&A to increase by around 9% in 2025 [8] - The strategic allocation to real assets, including infrastructure and natural resources, is emphasized due to their inflation sensitivity [16][17] - The company plans to launch two more ETFs in Q4 2025, expanding its active ETF strategy [24] Management's Comments on Operating Environment and Future Outlook - Management anticipates resilient economic growth and corporate profits, with expectations for earnings growth in sectors like real estate and energy to accelerate in 2026 [12] - The current environment of slightly elevated inflation and lower rates is seen as favorable for real assets [14] - The company remains optimistic about the potential of AI to enhance productivity and drive GDP growth [14] Other Important Information - The company raised $353 million in an equity rights offering for its closed-end fund, providing over $500 million for global infrastructure opportunities [23] - The non-traded REIT continues to perform well, focusing on open-air shopping centers [25] - The company is advocating for the inclusion of real assets in 401(k) plans, highlighting the benefits of listed strategies [27] Q&A Session Summary Question: Demand for US REITs in wealth management channel - Management noted that historically, REIT returns are stimulated by interest rate cuts, but the current cycle has created a different dynamic due to prior real estate pricing advancements [33] - They believe the current point in the cycle is favorable for REIT performance as rates are expected to continue decreasing [34] Question: Profile of clients providing funds - The pipeline is predominantly North American, including retirement plans and annuity providers, with some recent European allocations [37] Question: Expected allocation of cash sitting on the sidelines - Management expects cash to flow into inflation-sensitive real asset strategies, particularly real estate and infrastructure [40] Question: Compensation ratio outlook for 2026 - The company is focused on revenue growth and managing compensation ratios, with expectations for new initiatives to generate revenue and improve ratios [43][45]

Financial Data and Key Metrics Changes - The company reported strong quarterly earnings of $548 million, resulting in earnings per share of $0.61, with adjusted earnings of $561 million or $0.63 per share [4] - Adjusted pre-tax, pre-provision income increased by 4% year over year to $830 million, with a return on tangible common equity of 19% [4][6] - Net interest income was relatively stable, with a modest growth expected between 3% and 4% for the full year 2025 [11][13] Business Line Data and Key Metrics Changes - Average loans grew by 1%, while ending loans declined by 1%, with growth in financial services, government, and public sectors [9] - Wealth management generated record fee income, and capital markets income, excluding CBA, also reached a record high [6][15] - Non-interest income increased by 6% quarter over quarter, driven by higher service charges and capital markets activity [14][15] Market Data and Key Metrics Changes - The company achieved top quartile deposit growth and above peer median change in market share, maintaining the lowest deposit cost among peers [4] - Consumer deposits remained flat quarter over quarter, slightly ahead of typical seasonal trends, while commercial deposits showed strength [10] - The overall share of non-interest-bearing deposits to total deposits remained within the expected low 30% range [10] Company Strategy and Development Direction - The company is focused on modernizing core technology platforms, with plans to upgrade its commercial loan system to a new cloud platform in 2026 [7][8] - The strategic plan emphasizes organic growth through existing customer relationships and new client acquisitions, rather than pursuing M&A [37][38] - Investments in technology and talent are expected to enhance customer service and capitalize on growth opportunities [8][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating stronger loan growth moving into 2026, supported by improving macro conditions and increased line utilization [6][30] - The company anticipates continued positive trends in asset quality, with expectations for net charge-offs to be approximately 50 basis points for the full year [17][66] - Management remains vigilant regarding portfolios of interest, particularly in office and transportation sectors, while expressing optimism about overall credit quality [22][25] Other Important Information - The company executed $250 million in share repurchases and paid $235 million in common dividends during the quarter, with a common equity tier one ratio of 10.8% [18] - Adjusted non-interest expense increased by 4% compared to the prior quarter, with expectations for full-year adjusted non-interest expense to be up approximately 2% [15][16] Q&A Session Summary Question: Update on portfolios of interest and charge-offs - Management identified office and transportation as portfolios of interest, with expectations for continued elevated charge-offs but long-term guidance of 40 to 50 basis points [22][30] Question: Clarification on portfolio shaping and charge-offs - Portfolio shaping actions are a combination of addressing weaknesses in certain portfolios and proactive management of credit risk [34][54] Question: Strategic focus on M&A - The company remains focused on executing its strategic plan and does not currently see M&A as part of its strategy, despite market changes [37][38] Question: Loan growth expectations - The company expects to grow its loan portfolio consistent with GDP in its markets, with optimism for acceleration in 2026 [62] Question: Impact of CD rolls on NIM - The upcoming CD rolls are expected to significantly impact NIM, with a focus on managing deposit pricing effectively [100] Question: Salary and compensation outlook - The company does not anticipate significant changes in headcount or salary increases, maintaining a focus on efficiency through technology [104]

Financial Data and Key Metrics Changes - The third quarter GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [12] - Adjusted operating net income for the quarter was $77.4 million, or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [13] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [15] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [9][17] - Demand deposit growth was 5% annualized in the third quarter, with demand deposits representing 28% of overall deposits [10] - The wealth management business grew assets under administration (AUA) to $9.2 billion, including $1.4 billion from the Enterprise acquisition [10] Market Data and Key Metrics Changes - The Massachusetts business confidence index remained in the high 40s, indicating a stable but uncertain economic environment [8] - The cost of deposits was reported at 1.58%, reflecting the value of the deposit franchise [10] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with no branches closed and all employees retained [6][7] - Future initiatives include cross-selling deeper into the Enterprise customer base and enhancing consumer lending offerings [7] - The company plans to prepare for a core conversion scheduled for May 2026, aimed at improving technology infrastructure and scalability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their client base despite economic uncertainties, including government shutdowns and inflation [8] - The company anticipates continued improvement in growth and profitability, driven by prudent expense management and realization of benefits from the Enterprise acquisition [11] Other Important Information - The company reported a tangible book value per share decrease of $2.17, or 4.5%, for the quarter, with a modest year-over-year increase [14] - Merger-related expenses totaled $23.9 million, primarily from severance and professional fees [21] Q&A Session Summary Question: Can you quantify the C&I growth and discuss the loan pipeline? - C&I growth has been strong, particularly in lower middle market segments, with healthy loan pipelines remaining stable [28] Question: How is the company addressing office credit concerns? - Management feels more positive about office credit, having resolved several larger issues, but acknowledges ongoing work is needed [34][36] Question: What are the expectations for loan growth next year? - Management is optimistic about potential loan growth, suggesting it could be in the low to mid-single digits if current trends continue [37] Question: What are the plans for the securities portfolio? - There are no immediate plans to restructure the securities portfolio, which is viewed as stable and yielding well [41] Question: How does the company view future M&A opportunities? - The company is currently focused on organic growth and integration of the Enterprise acquisition, with no immediate plans for further M&A [44]

Financial Data and Key Metrics Changes - The third quarter GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [12] - Adjusted operating net income for the quarter was $77.4 million, or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [13] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [15] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [9] - Demand deposit growth was 5% annualized in the third quarter, with demand deposits representing 28% of overall deposits [10] - The wealth management business grew assets under administration (AUA) to $9.2 billion, including $1.4 billion acquired from Enterprise [10] Market Data and Key Metrics Changes - The Massachusetts business confidence score was in the high 40s, indicating a stable but uncertain environment for clients [8] - The cost of deposits was reported at 1.58%, highlighting the value of the deposit franchise [10] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with a strong emphasis on retaining client-facing personnel and enhancing cross-selling opportunities [5][6] - Future initiatives include expanding consumer lending products and preparing for a core conversion scheduled for May 2026 [10][22] - The company aims to achieve 30% cost savings from the Enterprise acquisition by the first quarter of 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their client base despite external uncertainties such as tariffs and government shutdowns [8] - The company anticipates improved growth and profitability in the coming quarters, driven by prudent expense management and the realization of benefits from the Enterprise acquisition [11] Other Important Information - The tangible book value per share decreased by $2.17, or 4.5%, for the quarter, but is up modestly compared to the previous year [15] - Non-performing assets as of September 30, 2023, were 0.35% of total assets, with no material loss exposures identified [19] Q&A Session Summary Question: Can you quantify the C&I growth and discuss the loan pipeline? - C&I growth has been strong, particularly in lower middle market segments, with a healthy loan pipeline that remains stable [28] Question: What are your thoughts on office credit and classified loans? - Management feels more positive about office credit than six months ago, with several larger problems resolved and expectations for positive outcomes [34][36] Question: What is the guidance for margin expansion in the fourth quarter? - Guidance for margin expansion is 4 to 6 basis points, which is expected to remain stable regardless of Fed rate cuts [40] Question: How do you view the securities portfolio post-acquisition? - The securities portfolio is viewed positively, with no immediate plans for restructuring, as the yields are satisfactory [41] Question: What are the expectations for future M&A activity? - The company is currently focused on organic growth and integration of the Enterprise acquisition, with no immediate plans for further M&A [44] Question: Can you provide details on the criticized office loans maturing in the fourth quarter? - The criticized loans are primarily from two relationships, with one recently approved for a two-year renewal and the other potentially being sold [48]

Financial Data and Key Metrics Changes - Earnings per share for Q3 increased to $0.81, up 11.6% from $0.73 in Q2 [6][7] - Revenue for Q3 rose 4.2% to $141 million, driven by higher average AUM and an additional day in the period [7] - Operating margin improved to 36.1% from 33.6% in Q2 [7] - Ending AUM increased to $90.9 billion as of Q3 [7][10] - Liquidity at the end of Q3 was $364 million, up from $323 million in the prior quarter [10] Business Line Data and Key Metrics Changes - Open-end funds experienced positive net inflows for five consecutive quarters, although institutional net outflows partially offset this [8] - Total expenses remained flat compared to the prior quarter, with G&A expenses decreasing significantly [9] - Compensation ratio for the quarter decreased, leading to a year-to-date compensation ratio of 40.25% [9][11] Market Data and Key Metrics Changes - Net inflows for the year reached $325 million, with $233 million in Q3 alone [26] - The institutional pipeline grew to $1.75 billion, the largest since 2021, with $972 million in new mandates awarded during the quarter [27][28] - The largest percentage of the pipeline (66%) is in U.S. REIT strategies [28] Company Strategy and Development Direction - The company is focused on expense management while pursuing growth opportunities in active ETFs and private real estate [11][30] - There is a strategic emphasis on diversifying into real assets, including infrastructure and natural resources, to enhance portfolio resilience [21][23] - The company plans to launch two more ETFs in Q4, expanding its active ETF strategy [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic growth and corporate profits remaining resilient, with expectations for earnings growth in sectors that have been sluggish [16] - The current economic environment, characterized by slightly elevated inflation and lower rates, is seen as favorable for real assets [19][21] - The company anticipates continued allocations to its asset classes due to strong investment performance [23] Other Important Information - The company raised $353 million in an equity rights offering for its closed-end fund, providing over $500 million for global infrastructure opportunities [29] - The company is targeting the RIA channel for additional strategic seed capital and traditional allocations [32] Q&A Session Summary Question: Demand for U.S. REITs in wealth management - Management noted that historically, returns have been stimulated by interest rate cuts, but the current cycle has created a different dynamic due to prior real estate pricing adjustments [39][40] - They expect continued strong performance for REITs as rates decline, with good results in wealth management and institutional markets [41] Question: Cash allocation as rates decline - Management expects cash sitting on the sidelines to flow into real asset strategies, particularly real estate and infrastructure [50] - Preferred stocks are also anticipated to attract investment as cash yields become less favorable [51] Question: Compensation ratio outlook - The company expects the compensation ratio to remain stable, with revenue growth helping to manage costs [53] - New initiatives are beginning to generate revenue, which should positively impact the compensation ratio moving forward [55]