Financial Data and Key Metrics Changes - The company reported net income of $17,800,000 for Q3 2025, an increase from $16,500,000 in the same period last year, translating to $1.56 per diluted common share compared to $1.41 [6][12] - Net interest income rose to $50,800,000, up by $2,800,000 or 5.8% from $48,000,000 year-over-year [6][13] - The annualized net interest margin improved to 3.72% from 3.42% a year ago, reflecting stable loan yield and effective funding cost control [7][13] - Non-interest expense increased to $36,100,000 from $33,700,000 in the prior year, primarily due to higher legal and professional fees [10][16] Business Line Data and Key Metrics Changes - Gross loans totaled $4,540,000,000, a decline of $223,000,000 or 4.7% from the end of 2024, mainly due to elevated commercial real estate and multifamily loan payoffs [7][20] - Construction lending showed solid momentum with total unfunded construction commitments steady at approximately $600,000,000 [8][20] - Non-interest income totaled $7,100,000, slightly up from $7,000,000 in the previous year, driven by improvements in commissions on annuity sales [15][16] Market Data and Key Metrics Changes - Total deposits decreased by $77,500,000 or 1.7% compared to the end of 2024, primarily due to a decrease in brokered deposits [20][21] - Nonperforming assets represented 0.14% of total assets, consistent with prior periods, indicating healthy asset quality [21][22] Company Strategy and Development Direction - The company remains focused on maintaining strong positions related to credit quality, capital, and liquidity despite competitive pressures [11][23] - A new stock repurchase authorization for up to 1,000,000 shares was approved, reflecting the company's commitment to returning value to shareholders [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent profitability while managing risks and expenses [5][11] - The outlook for loan growth is modest, with expectations to keep balances steady for the remainder of the year [28][30] Other Important Information - The efficiency ratio was reported at 62.45%, indicating a focus on cost control and operational efficiency [19] - The allowance for credit losses as a percentage of total loans stood at 1.43%, reflecting a slight increase from the previous quarter [22] Q&A Session Summary Question: Loan growth outlook and regional opportunities - Management highlighted opportunities across various regions including Texas and Atlanta, despite elevated payoffs [28] Question: Credit quality and potential weaknesses - Management noted no broad signs of weakness in the portfolio, emphasizing that any issues are idiosyncratic to specific projects [29] Question: Operating expenses outlook - Management indicated that operating expenses may stabilize around the current level, with some legal fees expected to decrease [37][38] Question: Commission income sustainability - Management acknowledged that commission income has been elevated but could fluctuate based on customer interest [40][41]

Financial Data and Key Metrics Changes - The company reported record net income of $123.6 million and record EPS of $0.63 for Q3 2025, with revenue of $277.7 million and pretax pre-provision net revenue of $162.8 million, resulting in a profit percentage of 58.64% [5][14] - The efficiency ratio improved to 40.21%, marking the best performance in the last twelve months, while the net interest margin increased by 12 basis points to 4.56% [5][24] - Return on tangible common equity (ROTCE) remained strong at 18.28%, with common equity assets at 18.56% and tangible equity at 13.08% [6][7] Business Line Data and Key Metrics Changes - Loan production was robust, reaching nearly $1.3 billion, with $800 million coming from the Community Bank footprint, particularly strong in Florida [25] - The lending portfolio showed improvements in asset quality, with reductions in non-performing loans (NPLs) and criticized loans, while organic loan growth was recorded at $105 million for the quarter [27][28] Market Data and Key Metrics Changes - Deposits decreased slightly by $161 million, primarily due to customer tax payments made in July, but the company continues to focus on growing core deposits [24][44] - The company opened a new branch in San Antonio, indicating expansion into new markets [15] Company Strategy and Development Direction - The management emphasized a conservative approach to growth, focusing on resolving existing issues before pursuing new opportunities, particularly in light of past challenges from the Hapi acquisition [9][12] - The company is preparing for potential acquisitions, with a focus on finding the right targets and maintaining a strong balance sheet [75][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin despite potential rate cuts, highlighting their proactive approach to adjusting rates [39][40] - The company remains optimistic about future growth opportunities, particularly in a lower rate environment that may stimulate demand for loans [93] Other Important Information - The Texas lawsuit has been settled, with the company receiving a partial payment and expecting further payments in Q4 [7][105] - The company reported gains from various sources, including a $1.9 million gain from sub-debt paydown and a $1.75 million gain related to the lawsuit [81][105] Q&A Session Summary Question: How is the company thinking about NIM and NII trends given recent rate cuts? - Management acknowledged that while lower rates typically pressure net interest income, they have historically maintained margins through quick adjustments and proactive management [39][40] Question: What is the outlook for deposit growth in a lower rate environment? - The company does not engage in aggressive CD promotions and prefers to maintain a strong position with insured depositors, indicating confidence in deposit stability [44] Question: How is the company addressing concerns about the government shutdown? - Management has not seen any immediate impact from the government shutdown and is prepared to offer deferments if necessary [49][51] Question: What is the company's perspective on credit quality amid broader market concerns? - Management reported a positive outlook on credit quality, noting improvements in asset quality metrics and a low level of expected losses [56][60] Question: What is the company's strategy regarding M&A? - The company is actively seeking acquisition opportunities and has signed a letter of intent for a potential deal, indicating readiness to move forward [75][78] Question: How does the company view profitability and expense management going forward? - Management indicated that while expenses were slightly up, there is potential for further reductions, which could enhance profitability [80][90]

Financial Data and Key Metrics Changes - The company has signed over 1.9 million square feet of leases in 2025, with expectations to exceed 2 million square feet by year-end [3][4] - Occupancy increased to above 92% as of September 30, with a target of 93.2% by year-end [4] - A $1.4 billion refinancing was completed at 11 Madison Avenue at a rate of approximately 5.6% [9] Business Line Data and Key Metrics Changes - The company reported strong leasing activity, particularly in the Midtown Manhattan market, with significant demand from tech firms, especially in AI [15][16] - The acquisition of Park Avenue Tower for $730 million is expected to yield significant near-term upside due to under-market rents [5][6] - The occupancy of Park Avenue Tower is currently at 95%, with in-place rents around $125 per square foot, indicating potential for appreciation [39] Market Data and Key Metrics Changes - The New York office market is experiencing a resurgence, with rising tenant demand and rents, particularly in high-end spaces [5][12] - There is a scarcity of new quality office inventory expected in Midtown over the next five years, which is anticipated to drive vacancy rates lower and net effective rents higher [5][7] Company Strategy and Development Direction - The company is focusing on office-to-residential conversions and acquiring well-leased assets in targeted markets [5][6] - Plans for a new development at 346 Madison Avenue are underway, with expectations to deliver by 2030 [7][8] - The company aims to capitalize on the lack of supply and strong demand in the market to drive future growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pace of leasing continuing into Q4 and beyond, driven by demand from tech and financial services [4][11] - The company remains committed to exploring all options for its asset at 1515 Broadway, including potential entertainment and hospitality uses [10][28] - Management highlighted the importance of maintaining flexibility in their operations and capitalizing on market opportunities [28][29] Other Important Information - The company is planning additional fundraising strategies for 2026 and has commenced deployments from its opportunistic debt fund, amounting to about $220 million [8] - Management expressed disappointment over not advancing in the gaming license process but remains proud of the efforts put into the Caesars Palace Times Square proposal [9][10] Q&A Session Summary Question: What is the activity level from big tech firms? - Management noted that tech demand is strong, particularly driven by AI, with significant leasing activity from tech firms [15][16] Question: Can you comment on cash lease spreads? - Management explained that the mark-to-market calculation was slightly negative due to anomalies in two leases, which skewed the results [23][26] Question: Is the vision for obtaining a casino at 1515 Broadway completely dead? - Management indicated that the process is still ongoing, and they are evaluating all options for the property [28][29] Question: How do you plan to finance Park Avenue Tower? - Management stated that they are receiving interest from lenders and equity investors, with plans to finance through bank execution or CMBS [35][36] Question: What is the depth of the market at the rental price point for 346 Madison Avenue? - Management expressed confidence in the demand for the new development, noting a significant number of tenants looking for space [30][32] Question: How is the company addressing profitability concerns in office real estate? - Management emphasized their focus on high net effective rents and the profitability of their business model, which includes monetizing stabilized assets [70][71]

Financial Data and Key Metrics Changes - Home BancShares reported record net income of $123.6 million and record EPS of $0.63 for Q3 2025, with revenue of $277.7 million and pre-tax, pre-provision net revenue of $162.8 million, achieving a profit percentage of 58.64% [4][5] - The efficiency ratio improved to 40.21%, marking the best performance in 12 months, while the net interest margin increased by 12 basis points to 4.56% [5][21] - Return on tangible common equity (ROTCE) remained strong at 18.28% [5] Business Line Data and Key Metrics Changes - Loan production was robust, reaching nearly $1.3 billion, with $800 million coming from the community bank footprint, particularly strong in Florida [21][26] - The lending portfolio showed organic loan growth of $105 million for Q3, marking eight times in the last nine quarters of linked quarter loan growth [26] - Centennial Commercial Finance Group originated over $1 billion in new loans through Q3, although total assets decreased by about $60 million due to payoffs outpacing new funding [30] Market Data and Key Metrics Changes - Deposits decreased by $161 million in Q3, primarily due to customer tax payments made in July, but the company continues to focus on growing core deposits [21] - Wholesale deposits comprised only 2.3% of total liabilities, indicating a strong focus on core deposit relationships [21] Company Strategy and Development Direction - The company is preparing for potential acquisitions, with management indicating readiness to pursue large transactions or several smaller ones [11][64] - Home BancShares has been conservative in its growth strategy, focusing on resolving existing issues before pursuing new opportunities [6][10] - The company aims to maintain its strong performance metrics while exploring growth avenues, with a target of $500 million in income for 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain net interest margin despite potential rate cuts, emphasizing a proactive approach to adjusting rates [36][38] - The company has not yet seen significant impacts from the government shutdown, with management indicating a willingness to offer deferments if necessary [42][44] - Overall asset quality remains stable, with management reporting low levels of potential losses in their asset quality meetings [53][54] Other Important Information - The Texas lawsuit has been settled, with the company receiving a partial payment and expecting the remainder in Q4 [5][91] - The company opened a new branch in San Antonio, indicating expansion into new markets [13] Q&A Session Summary Question: How is the company thinking about NIM and NII trends going forward? - Management indicated that they react quickly to rate changes and have historically maintained margins better than peers [36][38] Question: How does the company view deposit growth in a lower-rate environment? - The company does not run CD ads and focuses on maintaining strength in deposits, with a preference for core deposits over wholesale [39][40] Question: What is the company's perspective on credit quality amid broader market concerns? - Management reported a positive outlook on credit quality, with minimal concerns noted in their asset quality meetings [52][54] Question: Can the company provide insights on M&A activity and challenges? - Management confirmed they are actively looking for acquisition opportunities and have signed a letter of intent for a potential deal [64][68] Question: What are the expectations for profitability moving into 2026? - Management believes there is still room for improvement in expenses and profitability metrics, with a focus on maintaining efficiency [70][72]

Financial Data and Key Metrics Changes - The company signed over 1,900,000 square feet of leases year-to-date, with expectations to exceed 2,000,000 square feet by year-end [4][5] - Occupancy increased significantly to above 92% as of September, with a target of 93.2% by year-end [5] - A refinancing of $1,400,000,000 was successfully completed at Eleven Madison at a rate of approximately 5.6% [10] Business Line Data and Key Metrics Changes - The company reported strong leasing activity, with three major leases at One Madison increasing occupancy to over 91% [5] - The SLG opportunistic debt fund has closed $1,000,000,000, with deployments expected to rise to over $400,000,000 by year-end [9] Market Data and Key Metrics Changes - The New York office market is experiencing a resurgence, with strong demand and rising rents, particularly in the Park Avenue corridor [6][13] - The acquisition of Park Avenue Tower for $730,000,000 is expected to yield significant near-term upside due to under-market rents [6] Company Strategy and Development Direction - The company is focusing on office-to-residential conversions and limited new construction to create a scarcity dynamic in the high-end space market [6] - Plans for a new development at 346 Madison Avenue are underway, with expectations to deliver by February 1930 [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pace of leasing continuing into Q4 and beyond, driven by demand in Midtown Manhattan [5] - The company remains committed to exploring all options for 1515 Broadway, including potential entertainment and hospitality uses [12][34] Other Important Information - The company expressed disappointment over not advancing in the gaming license process for Caesars Palace Times Square, emphasizing the project's potential benefits for the community [10][11] - Management highlighted the importance of maintaining flexibility with 1515 Broadway, which is fully leased through mid-2031 [12][34] Q&A Session Summary Question: Activity from Big Tech - Management noted that tech demand is strong, particularly driven by AI, with significant leasing activity from tech firms [15][16] Question: Comparison of Public M&A Deals - Management discussed the relative analysis of capital deployment, emphasizing discipline in targeting deals with perceived value [18][19] Question: Cash Lease Spreads - Management explained that the mark-to-market calculation is conservative and influenced by a few leases, indicating it may not reflect overall market health [29][32] Question: Future of 1515 Broadway - Management stated that the casino proposal is not completely dead and that they are evaluating all options for the property [33][34] Question: Market Rents and Tenant Demand - Management confirmed that there is significant tenant demand, with many tenants seeking large spaces, leading to rising rents [40][42] Question: Financing for Park Avenue Tower - Management indicated strong interest from lenders for financing Park Avenue Tower, with plans to finance approximately $475,000,000 [50][51] Question: OpEx and Profitability Concerns - Management reassured that the focus on high net effective rents and strategic asset management supports profitability despite operational costs [106][109]

Financial Data and Key Metrics Changes - Third quarter core FFO was $0.60 per share, up one penny from last quarter, driven by higher occupancy and accretive capital recycling from dispositions and share repurchases [11] - Total portfolio occupancy, including repositioning and redevelopment, was up 260 basis points sequentially [11] - The company raised its full-year 2025 core FFO per share midpoint to $2.40, up $0.01 compared to last quarter [11][12] - Same property cash NOI midpoint increased to 4%, up 150 basis points from last quarter [12] Business Line Data and Key Metrics Changes - Executed 3.3 million square feet of leasing, nearly double last quarter, with healthy leasing spreads [4] - Same property ending occupancy reached 96.8%, a 60 basis point increase compared to the prior quarter [5] - Leasing spreads for comparable leases were 26% and 10% on a net effective and cash basis, respectively [6] Market Data and Key Metrics Changes - Net absorption in the overall 1.8 billion square foot infill Southern California market was nominally positive at 400,000 square feet, while Rexford's portfolio saw a positive net absorption of 1.9 million square feet [5] - Market rents for Rexford's portfolio experienced a decline of 1% sequentially, compared to an overall market decline of 2% [6] Company Strategy and Development Direction - The company focuses on driving long-term value through a high-quality infill Southern California portfolio, strategic asset management, and creative capital allocation [4] - The strategic approach includes evaluating each property for optimal value creation strategies, such as repositioning, redevelopment, or leasing as is [7] - The company is committed to capital allocation that drives the highest risk-adjusted returns while maintaining a low-lever, flexible balance sheet [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving tenant sentiment and strong new leasing activity, despite uncertainties in the macroeconomic environment [5] - The company highlighted strong demand from key growth sectors, which will support favorable long-term industrial fundamentals [7] - Management acknowledged the unpredictability of future demand due to macroeconomic factors but remains encouraged by current market signs [18] Other Important Information - The company executed $150 million of share repurchases funded by disposition proceeds, capturing a 200 basis point spread between the weighted average exit cap rate and implied FFO yield [12] - Approximately $65 million of projected annualized NOI is tied to repositioning and redevelopment projects, with $41 million related to projects that stabilized during the quarter [13] Q&A Session Summary Question: How should we think about the run rate of the 3.3 million square feet leased? - Management noted that this was the highest leasing quarter in their history, with strong retention levels and activity on about 80% of vacant spaces [18] Question: How should we think about the trade-off of boosting occupancy at the expense of elevated concessions? - The focus remains on driving occupancy and cash flow, with proactive demand generation contributing to leasing success [21] Question: How much of the redevelopment pipeline could be sold off? - Management indicated ongoing assessments for dispositions to strengthen quality and growth profiles, with $160 million currently under contract [24] Question: Can you talk about credit and bad debt relative to expectations? - Tenant health remains resilient, with negligible bad debt levels and a watchlist of about 20 tenants [31] Question: What is the occupancy of the assets sold during the quarter? - The occupancy on sold assets was about 67%, with market cap rates assumed for vacant assets [34] Question: How have you adjusted assumptions for assets currently in the pipeline? - The company has stabilized properties at an average yield of 5.8%, with adjustments based on current market conditions [38] Question: How quickly can we pivot from a flat market to growth? - Management highlighted strong tenant health and demand drivers, but noted that macroeconomic uncertainties make it difficult to predict the timing of recovery [42]

Financial Data and Key Metrics Changes - Third quarter core FFO was $0.60 per share, up $0.01 from the previous quarter, driven by higher occupancy and accretive capital recycling from dispositions and share repurchases [13] - Total portfolio occupancy, including repositioning and redevelopment, increased by 260 basis points sequentially [13] - The company raised its full year 2025 core FFO per share midpoint to $2.40, an increase of $0.01 compared to the last quarter [14] Business Line Data and Key Metrics Changes - The company executed 3,300,000 square feet of leasing in the third quarter, nearly double the previous quarter, with healthy leasing spreads [4][6] - Same property ending occupancy reached 96.8%, a 60 basis point increase compared to the prior quarter [6] - Bad debt levels were below historical averages at 30 basis points as a percentage of revenue year to date [7] Market Data and Key Metrics Changes - In the overall 1,800,000,000 square foot infill Southern California market, net absorption was positive at 400,000 square feet, while Rexford's portfolio saw a positive net absorption of 1,900,000 square feet [6] - Market rents in Rexford's portfolio experienced a sequential decline of 1%, compared to a 2% decline in the overall market [7] Company Strategy and Development Direction - The company focuses on three broad themes: high-quality infill Southern California portfolio, strategic asset management, and accretive capital allocation [5] - The company is committed to evaluating each property for optimal value creation strategies, including repositioning, redevelopment, or disposal [9] - The company has a disciplined approach to capital allocation, focusing on the highest risk-adjusted returns while maintaining a low levered, flexible balance sheet [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved tenant sentiment but acknowledged uncertainty around the macroeconomic environment and tariff policy [5] - The company is encouraged by strong leasing activity and believes that underlying supply-demand dynamics remain strong despite market challenges [8][14] - Management highlighted the importance of maintaining operational efficiency and driving cash flow [67] Other Important Information - The company executed $150,000,000 of share repurchases funded by disposition proceeds, capturing a 200 basis point spread between the weighted average exit cap rate and implied FFO yield [15] - The company has approximately $65,000,000 of projected annualized NOI tied to repositioning and redevelopment projects [15] Q&A Session Summary Question: How should we think about the run rate of the 3,300,000 square feet leased in Q3? - Management noted that this was the highest leasing quarter in their history, with strong positive net absorption and improved tenant decision-making across the portfolio [20][21] Question: How do you balance boosting occupancy at the expense of elevated concessions or rent? - Management emphasized a focus on driving occupancy and cash flow, indicating that they will take immediate NOI opportunities even if it means lower rates or concessions [23][25] Question: How much of the redevelopment pipeline could be sold off? - Management stated they continually assess their portfolio for disposition opportunities to strengthen quality and growth profiles [29][30] Question: What is the current status of credit and bad debt? - Management reported that tenant health remains resilient, with negligible bad debt levels and a cautious reserve for potential disruptions [38][39] Question: What is the occupancy of the assets sold during the quarter? - Management indicated that the occupancy of sold assets was about 7%, and they quoted market cap rates for those vacant assets [42][44] Question: How have stabilized assets performed compared to initial underwriting? - Management noted that stabilized properties had an average yield of 5.8%, with some yields not meeting expectations due to market conditions [50][51] Question: What is the outlook for growth given current market conditions? - Management highlighted favorable market dynamics and tenant health, but acknowledged the difficulty in predicting the timing of a recovery or rent inflection point [56][59]

Financial Data and Key Metrics Changes - The company reported net earnings of $151.8 million or $1.35 per diluted share for Q4 2025, compared to $103.9 million or $0.90 per diluted share in the prior year period, representing a significant increase [35] - Adjusted earnings for the quarter totaled $155 million or $1.37 per diluted share, up from $97.4 million or $0.84 per diluted share in the prior year [35] - Consolidated core EBITDA was $291.4 million for 2025, a 33% increase from $219 million in the prior year [37] - The consolidated core EBITDA margin improved to 13.8% compared to 11% in the prior year [38] Business Line Data and Key Metrics Changes - The North American Steel Group generated adjusted EBITDA of $239.4 million for the quarter, with an adjusted EBITDA margin of 14.8%, up from 13% in the previous year [39] - The Emerging Business Group reported Q4 net sales of $221.8 million, a 13.4% year-over-year increase, with adjusted EBITDA of $50.6 million, up 19.1% [40] - The Europe Steel Group reported adjusted EBITDA of $39.1 million for 2025, compared to a loss of $3.6 million in the prior year, with a segment adjusted EBITDA margin of 14.8% [41] Market Data and Key Metrics Changes - Finished steel shipments increased by 3% year-over-year, with rebar shipments growing at a similar rate [39] - The Dodge Momentum Index reached a record high in September, indicating strong future construction activity [26] - The company noted substantial pent-up demand in non-residential markets, supported by over $2 trillion in announced corporate investments [27] Company Strategy and Development Direction - The company is focused on integrating the recently announced acquisitions of Foley Products Company and CPMP to create a large-scale precast platform [5][6] - The strategic entry into precast is expected to enhance the company's financial profile and growth potential, with anticipated annual run rate synergies of $25 million to $30 million of EBITDA by year three [10] - The company aims to drive meaningful and sustainable improvements to margins, earnings, cash flow, and returns on capital while reducing volatility [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong construction activity and a favorable supply landscape [25] - The company anticipates continued demand growth in infrastructure, energy generation, and advanced manufacturing, supported by a significant backlog of potential projects [27] - Management expects the first quarter to be strong for the North American Steel Group, but noted seasonal factors may impact other segments [54] Other Important Information - The company modified its method of calculating adjusted EBITDA to exclude unrealized gains and losses from commodity derivatives, providing a more representative view of operating performance [36] - The total consideration for the acquisitions of Foley and CPMP is approximately $2.5 billion, funded through cash on hand and committed bank financing [17] Q&A Session Summary Question: How much of the demand growth is coming from different sectors? - Management indicated strong infrastructure demand driven by the IIJA, with a bullish outlook for non-residential spending due to a large backlog of potential projects [49][50] Question: Why is the first quarter outlook not more positive despite strong current performance? - Management explained that while the North American Steel Group is expected to perform well, the Europe Steel Group will face challenges due to reduced CO2 credits and seasonal maintenance [54][56] Question: Will the focus be on integration and debt reduction after the acquisitions? - Management confirmed that the immediate focus will be on integrating the new assets and reducing debt, with potential for future acquisitions once leverage is back to acceptable levels [61][62] Question: What is the historical growth rate of Foley and its potential for future growth? - Management noted that Foley has a base level of growth related to GDP and additional growth from market share expansion, expecting to grow above GDP levels in the coming years [66] Question: How quickly can CPMP's margins improve to Foley's levels? - Management indicated that margin improvements for CPMP would be achievable over a three to five year horizon, with some quick wins expected [80][81]

Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $53.5 million or $1.54 per diluted share for Q3 2025, an increase from $1.31 per share in Q3 2024 [6] - Core earnings for Q3 2025 were $67.8 million, up from $62.5 million in the prior quarter and $57.4 million in Q3 2024 [7] - Revenue from core operations was $169 million for Q3 2025, compared to $163 million in the prior quarter and $154 million in Q3 2024 [7] - Return on average assets was 1.3% for 2025 [8] Business Line Data and Key Metrics Changes - Core deposits represented 89% of total deposits, with loans and core deposits both increasing by 4% year-over-year [9] - The commercial construction portfolio saw a decline, while the small business segment grew by 8% year-over-year [15] - Loan originations were $172 million lower than the previous quarter, but portfolio loan balances remained up 4% year-over-year [13] Market Data and Key Metrics Changes - Delinquent loans improved to 0.39% of total loans, down from 0.4% a year ago [12] - Nonperforming assets totaled $4.5 million, representing 0.27% of total assets [12] - The allowance for credit losses was $159.7 million, providing coverage of 1.36% of total loans [13] Company Strategy and Development Direction - The company continues to execute its super community bank strategy, focusing on client relationships and core funding [9] - Banner has been recognized as one of America's 100 Best Banks and received various accolades for its trustworthiness and client satisfaction [10] - The company is investing in technology, including a new loan origination system and fraud-related technology, to enhance scalability and efficiency [56][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market uncertainties due to a strong balance sheet and reputation [6] - The company anticipates a mid-single-digit growth rate for loans for the full year [15] - Management noted that the competitive landscape remains stable, with some stretching in underwriting standards but overall credit quality holding up well [50][53] Other Important Information - The company announced a 4% increase in its core dividend to $0.50 per common share [9] - Total borrowings decreased by $459 million during the quarter, reflecting strong deposit growth [19] - The company repurchased 250,000 shares during the quarter, indicating confidence in its capital position [19] Q&A Session Summary Question: Margin and FHLB Payoffs - Management indicated that FHLB advances were paid down halfway through the quarter, with expectations of margin expansion despite potential Fed rate cuts [25][27] Question: Capital and Buyback Activity - Management expressed confidence in continuing share repurchases and indicated that M&A opportunities would be considered if they arise [31][34] Question: Deposit Growth and Pricing - Management noted strong seasonal deposit growth without specific promotions, and they reduced CD rates following the Fed's rate cut [40][41] Question: Competitive Landscape and Loan Originations - Management acknowledged a multifaceted decline in loan originations, attributing it to strong prior quarter performance and muted reactions to rate cuts [50][51] Question: Strategic Investments - Management highlighted technology investments, particularly in loan origination systems and fraud prevention, as key areas for future growth [56][58]

Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $53.5 million or $1.54 per diluted share for Q3 2025, an increase from $1.30 per share in Q3 2024 and $1.31 per share in Q2 2025 [4] - Core earnings for Q3 2025 were $67.8 million, up from $62.5 million in the prior quarter and $57.4 million in Q3 2024 [5] - Revenue from core operations was $169 million, compared to $163 million in the prior quarter and $154 million in Q3 2024 [6] - Return on average assets was 1.3% for Q3 2025, reflecting strong core performance [6] Business Line Data and Key Metrics Changes - Loans and core deposits both increased by 4% year-over-year, with core deposits representing 89% of total deposits [7] - Delinquent loans improved to 0.39% of total loans, down from 0.40% a year ago [9] - Adversely classified loans decreased by $16 million quarter-over-quarter, now at 1.49% of total loans [9] Market Data and Key Metrics Changes - The company maintained a strong core deposit base, which proved resilient and loyal [6] - The loan-to-deposit ratio ended the quarter at 84%, indicating ample capacity to add new clients [14] Company Strategy and Development Direction - The overarching goal is to provide a consistent and reliable source of commerce and capital through all economic cycles [4] - The company continues to focus on its supercommunity bank strategy, emphasizing client relationships and core funding [6] - Investments in technology and fraud-related systems are prioritized to enhance scalability and efficiency [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through current market uncertainties due to a strong balance sheet and reputation [5] - The company anticipates solid loan growth in Q4, typically a strong quarter [12] - Management noted that the competitive landscape remains unchanged, with a focus on maintaining underwriting standards despite increased competition [41] Other Important Information - The company announced a 4% increase in the core dividend to $0.50 per common share [7] - Banner was recognized as one of America's 100 best banks and received various accolades for its performance and trustworthiness [8] Q&A Session Summary Question: Inquiry about margin and FHLB payoffs - Management indicated that FHLB advances were paid down halfway through the quarter, with expectations of flat funding costs despite Fed rate cuts [22][24] Question: Capital management and M&A interest - Management expressed confidence in continuing share repurchases and indicated readiness for potential M&A opportunities if they arise [26][28] Question: Deposit growth and pricing strategy - Management noted strong deposit growth driven by seasonal factors and indicated reductions in advertised CD rates following the Fed's rate cut [36] Question: Competitive landscape and loan originations - Management acknowledged a multifaceted decline in originations, attributing it to a strong prior quarter and muted reactions to rate cuts [41][42] Question: Strategic investments and technology - The company is investing heavily in technology to enhance scalability and efficiency, with a focus on fraud prevention and AI integration [47][48]