Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Loan production rose to nearly $3.4 billion, with moderate growth in both loans and deposits [3] - Net interest income reached $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [18] - The pipeline for loans in Texas increased from $800 million to $1.2 billion, indicating strong growth potential [19] - Non-interest income was $99 million, up from $87 million, with capital markets contributing significantly to this growth [32] Market Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 67% since the first quarter of the year [3] - The company identified approximately $90 billion of overlapping deposits in the Southeast, Texas, and Colorado markets that are currently consolidating [5] Company Strategy and Development Direction - The company is focused on capitalizing on market disruptions and is actively recruiting bankers to support organic growth in 2026 [5][19] - Strategic planning is underway, considering deregulation and opportunities in the banking landscape [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in net loan growth accelerating over the next few quarters, despite some challenges in the market [3][18] - The credit team forecasts charge-offs to land around 10 basis points for the year, indicating stable credit metrics [4][8] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin by approximately four basis points [6][8] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the dilutive impact of the Independent Financial merger [8] Q&A Session Summary Question: Can you walk us through the excess accretion and margin dynamics? - Management explained that higher accretion was seen in July, with expectations for a decrease in the following months due to early payoffs of loans [11][12] Question: What is the outlook for loan growth given market dislocation? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on commercial and industrial lending [18] Question: How do you feel about the rest of the credit portfolio apart from the large charge-off? - Management confirmed that the charge-off was related to a specific credit and that the rest of the portfolio remains stable [25] Question: What is the optimal CET1 ratio and capital management strategy? - Management indicated a preference for maintaining CET1 in the 11% to 12% range, with flexibility for share repurchases [26] Question: Can you quantify the impact of accretion on future margins? - Management noted that the expected accretion for the next quarter would be lower, impacting the overall margin guidance [46][49]

Financial Data and Key Metrics Changes - The combined adjusted EBITDA for the third quarter was $245 million, compared to $237 million in the third quarter of 2024 and $250 million in the previous quarter [8][10] - Total net sales for the quarter were $1.6 billion, up from $1.4 billion year-over-year, while gross margins improved to 24.7% from 22.1% [8][10] - Overall net income was $19.4 million for the quarter, or $0.12 per diluted share, compared to net income of $16.9 million, or $0.11 per diluted share for the same quarter last year [15] Business Line Data and Key Metrics Changes - In the feed segment, EBITDA improved to $174 million from $132 million a year ago, with total sales reaching $1 billion compared to $928 million [9][10] - The food segment saw total sales of $381 million, higher than $357 million in the third quarter of 2024, with gross margins increasing to 27.5% from 23.9% [9][10] - The fuel segment, specifically Diamond Green Diesel (DGD), reported a negative EBITDA of $3 million for the quarter, down from positive $39 million in the third quarter of 2024 [10][12] Market Data and Key Metrics Changes - Global rendering volumes and margins in the feed segment were up both sequentially and year-over-year, driven by strong demand for fats and proteins [5][6] - Export protein demand is showing signs of recovery, with slightly firmer pricing trends emerging, although tariff implications have impacted value-added poultry protein products [6][9] - The renewables market continues to face headwinds, with higher feedstock costs and lower RINs and LCFS pricing impacting margins [7][10] Company Strategy and Development Direction - The company is focused on its core ingredients business, expecting EBITDA for 2025 to be in the range of $875 to $900 million, excluding DGD [16] - Management believes that the integrated model of Darling Ingredients provides a competitive advantage that is unmatched in the industry [4] - The company is optimistic about the future, anticipating that public policy changes will strengthen American agriculture and energy leadership, which will enhance DGD's earnings potential [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core ingredients business despite short-term uncertainties in the renewables market [4][16] - The company is optimistic about the upcoming clarity on regulatory items, including the Renewable Volume Obligation (RVO) [20] - Management noted that the current uncertainty around public policy impacts the fuel segment, but they remain focused on what they can control [16] Other Important Information - Total debt net of cash was $4.01 billion, with a minimal increase from $3.97 billion at the end of 2024 [14] - The company recorded an income tax benefit of $1.2 million for the quarter, yielding an effective tax rate of -6.3% [15] - The company expects to generate around $300 million in production tax credits in 2025, with significant sales anticipated in the fourth quarter [12][13] Q&A Session Summary Question: Timeline for clarity on regulatory items - Management expects clarity on RVO and exemptions by December, amid ongoing government shutdown [20] Question: Feed outlook for the fourth quarter - Management indicated that while waste fat prices have dipped, they expect the food segment to be stronger in Q4, with a narrow range for the business [21][23] Question: Benefits of REMS policy protectionism - Management noted uncertainty around how the EPA will treat foreign feedstocks, which will depend on various factors [26][28] Question: Drivers of DGD margins - Management clarified that DGD results were not as good as hoped, and the capture rate was affected by LCM accounting practices [29][30] Question: Outlook for the feed segment going into 2026 - Management expects continued improvement in feed segment margins, driven by protein price recovery and strong demand [35][37] Question: RIN pricing scenarios - Management indicated that RIN prices need to increase by approximately $0.40 to incentivize production to meet the 2026 mandate [43][44] Question: Debt repayment plans - Management confirmed they are committed to paying down debt and expect their debt coverage ratio to be around three times by year-end [45][46] Question: DGD1 restart conditions - Management stated that DGD1 will only restart when soybean oil margins are profitable enough to justify the catalyst costs [70][72] Question: Food segment outlook - Management expects a stronger Q4 for the food segment, with a rebound in hydrolyzed collagen business and new product launches [73][75]

Financial Data and Key Metrics Changes - Year-to-date net income totaled $167.5 million, an increase of $31.9 million or 23.5% from the nine months ended February 2024 [6] - Earnings per share totaled $2.90, an increase of $0.59 or 25.5% during the same period [6] - Return on assets (ROA) was 1.22%, consistent with year-to-date performance [4] - Efficiency ratio was 55%, reflecting high performance [4] - Total revenues in Q3 showed meaningful growth with net interest income increasing by $700,000 and non-interest income increasing by $1.2 million [16] Business Line Data and Key Metrics Changes - Commercial loan growth for the quarter was $268 million, over 10% annualized, with year-to-date growth of $699 million, over 9% annualized [10] - Consumer segment contributed $21 million in loan growth for the quarter, driven by residential mortgage, HELOC, and private banking relationships [11] - Total loan portfolio yield increased to 6.4%, driven by loan originations and refinances at an average yield of 6.84% [19] Market Data and Key Metrics Changes - Total deposits increased by $96 million during the quarter, with non-maturity categories growing at nearly 5% annualized [11] - Maturity deposit balances decreased by $198 million year-to-date, while non-maturity deposit balances increased by $178 million [12] Company Strategy and Development Direction - The company announced the acquisition of First Savings Financial Group, adding approximately $2.4 billion in assets and expanding into Southern Indiana [4] - The strategy remains focused on commercial lending across Indiana, Michigan, and Ohio, with an emphasis on enhancing fee income through SBA loans and other products [9] - The company aims to build on the acquired deposit franchise to create a community bank model similar to previous successful acquisitions [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth and increasing market share activities into the fourth quarter [10] - The company anticipates a mid-first quarter closing for the acquisition and a mid-second quarter integration [5] - Management noted that the Midwest economies continue to expand, contributing to positive business outlooks [10] Other Important Information - The tangible common equity ratio increased to 9.18%, providing meaningful capital flexibility [6] - The company repurchased 162,474 shares totaling $6.5 million during the quarter, with total share repurchases year-to-date reaching $36.5 million [23] Q&A Session Summary Question: Expense outlook for Q4 and 2026 - Management expects Q4 core expenses to be in line with Q3, with no meaningful increase anticipated [33][34] Question: Impact of potential rate cuts on margins - Management predicts a few basis points of margin compression if rate cuts occur, but they are actively managing deposit rates to mitigate this [35][36] Question: Deposit cost increase during the quarter - The increase was primarily due to competitive pressures requiring higher rates on specials [38] Question: Future M&A ambitions - Management indicated that while they are busy with the current acquisition, they are not prioritizing additional M&A at this time [51] Question: Sustainability of loan growth - Management believes the current loan growth is sustainable, driven by normal business activity and strong pipelines [59][62] Question: Capital generation and uses of excess capital - Management plans to continue using capital for asset generation, dividends, and share buybacks, while optimizing the balance sheet [106][108] Question: Asset quality and reserve levels - Management maintains a conservative approach to reserves, reflecting a higher coverage ratio compared to peers [109] Question: Progression of net interest income (NII) - Management is confident in the ability to grow NII dollars even with anticipated rate cuts, due to effective management of deposit costs [113]

Financial Data and Key Metrics Changes - The reported net income available to common shareholders for Q3 2025 was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [18][19] - The total allowance for credit losses decreased to $320 million, down from $342.4 million in the previous quarter, with the total allowance as a percentage of total loans held for investment decreasing to 117 basis points from 125 basis points [19] - The tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the previous quarter, while the net interest margin remained steady at 3.83% [20][21] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. Non-interest bearing deposits grew by approximately 4% annualized in Q3 [9][10] - Non-interest income decreased by $29.7 million to $51.8 million, primarily due to a loss related to the final CRE loan sale settlement [21] - Reported non-interest expense decreased by $41.3 million to $238.4 million, driven by a decline in merger-related costs associated with the Sandy Spring acquisition [22] Market Data and Key Metrics Changes - The Greater Washington DC region showed resilience despite concerns over government employment reductions and the government shutdown, with unemployment rates in Maryland and Virginia at 3.6%, below the national average of 4.3% [14][16] - The company maintains a diversified portfolio, with approximately 23% of total loans in the Washington Metro Area, and the remaining 77% across broader markets [14][16] Company Strategy and Development Direction - The company is focused on delivering sustainable growth and top-tier financial performance, leveraging strategic advantages from the Sandy Spring acquisition while pursuing organic growth opportunities in Virginia and North Carolina [8][17] - The integration of Sandy Spring is progressing smoothly, with expectations to achieve cost savings targets and enhanced earnings power by 2026 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's asset quality, with non-performing assets at 0.49% of loans held for investment and a forecast for the full year 2025 net charge-off ratio to remain between 15 and 20 basis points [12][13] - The company anticipates mid-single-digit loan growth for 2026, with potential for high single-digit growth in a more normalized environment [31][32] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend [24] - The financial outlook for year-end loan balances is projected to be between $27.7 billion and $28 billion, with deposit balances expected between $30.8 billion and $31 billion [25] Q&A Session Summary Question: What are the expectations for loan growth in 2026? - Management expects mid-single-digit loan growth for 2026, with potential for high single-digit growth in a normalized environment [31][32] Question: What is the outlook for expenses and efficiency ratios? - The efficiency ratio is expected to be in the mid-40s for 2026, with a focus on maintaining a flat expense base while expanding in North Carolina [36][37] Question: How is the company addressing competition in the market? - The company is experiencing increased competition, particularly from traditional banks returning to the market, but remains committed to consistent capital provision [90][92] Question: What are the revenue synergies expected from the Sandy Spring acquisition? - The acquisition allows for expanded lending capabilities and additional services such as interest rate hedging, with a focus on new client acquisition [94][96]

Financial Data and Key Metrics Changes - Sales for Q3 2025 totaled $468 million, reflecting an 8% growth on a reported basis and 7% growth organically [18] - Adjusted operating income increased by 14% year-over-year, with adjusted earnings per share (EPS) growing by 25% to $1.79 [13][20] - For the full year 2025, the company expects reported sales to be in the range of $1.84 billion to $1.85 billion, reflecting growth of 7% to 8% [25] Business Line Data and Key Metrics Changes - Cardio and Vascular sales increased by 15% in Q3 2025, driven by new product ramps in electrophysiology and strong demand in neurovascular [21] - Cardiac Rhythm Management and Neuromodulation sales grew by 2% year-over-year in Q3 2025, with expectations for low single-digit growth for the full year [22] - Adjusted net income for Q3 2025 was $63 million, up 27% year-over-year, driven by operational improvements and lower interest expenses [23][24] Market Data and Key Metrics Changes - The company anticipates a 3% to 4% headwind to total company sales in 2026 due to slower market adoption of three new products [15][32] - The expected organic sales growth for 2026 is flat to up 4%, with reported sales expected to decline by 2% to increase by 2% [16][31] Company Strategy and Development Direction - The company remains confident in its long-term growth strategy, focusing on early design wins in high-growth markets [17][35] - A strong product development pipeline is expected to drive above-market organic sales growth in 2027 [34] - The company plans to continue its tuck-in acquisition strategy while maintaining a leverage ratio within the targeted range of 2.5 to 3.5 times [36] Management Comments on Operating Environment and Future Outlook - Management acknowledged recent customer forecast changes impacting the financial outlook but expressed confidence in the long-term strategy [6][8] - The company expects a recovery to market growth in the second half of 2026 as new product headwinds moderate [16][17] - Management emphasized that the recent forecast changes are unusual and not expected to recur [108] Other Important Information - The adjusted effective tax rate for 2025 is expected to be between 17% and 18%, an improvement from previous guidance [24] - The company generated $66 million in cash flow from operations in Q3 2025, with free cash flow remaining flat at $46 million [24] Q&A Session Summary Question: Can you elaborate on the organic growth expectations for the rest of the portfolio? - Management indicated that without new product introductions, the rest of the portfolio is expected to grow at market rates, which is typically 6% to 8% [40] Question: What are the expected headwinds for Cardio and Vascular products? - The headwinds are related to two electrophysiology products with slower-than-anticipated market adoption, impacting growth forecasts [45][46] Question: How confident is the company in returning to market growth in the second half of 2026? - Management expressed confidence due to steady backlog and customer forecasts, despite recent changes [47][49] Question: Were the changes in forecasts known prior to Q3? - Management confirmed that the changes were not known until Q3, which is unusual for multiple products to experience significant forecast changes simultaneously [53][108] Question: Is the decline in neuromodulation sales similar to that in electrophysiology? - Yes, the decline is attributed to slower market adoption among select customers, similar to the dynamics seen in electrophysiology [61][66] Question: How does the company plan to manage profitability in 2026? - The company plans to focus on cost management and operational efficiencies to maintain profitability despite expected sales challenges [98]

Hexcel (NYSE:HXL) Q3 2025 Earnings Call October 23, 2025 09:00 AM ET Speaker3Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hexcel third quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number one on you ...

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $917 million, a 6% decline from the prior year, primarily due to an unplanned production shutdown at JLR [4][25][26] - Adjusted EBITDA was $119 million, with a margin of 13%, reflecting strong operational execution and cost control [6][26] - Adjusted free cash flow for the quarter was $110 million, driven by robust EBITDA performance [6][26] Business Line Data and Key Metrics Changes - Cockpit electronics business showed strong growth in Europe and The Americas, offset by lower sales in China and for Battery Management Systems (BMS) in the U.S. [5][8] - BMS sales were down significantly year over year, reflecting a challenging environment for EVs in 2025 compared to 2024 [8][25] - The company launched 28 new products across 10 different OEMs in Q3, indicating strong program execution capabilities [12][15] Market Data and Key Metrics Changes - Sales in North America for cockpit electronics exceeded expectations, while BMS sales were down significantly due to changes in the EV market [8][25] - In Europe, sales were flat year over year, with gains in cockpit electronics and ICE vehicles [9][11] - Sales in China declined year over year, primarily due to a negative vehicle mix and market share loss of global OEMs [11][12] Company Strategy and Development Direction - The company is focusing on expanding its product portfolio and securing new business wins, with expectations to exceed $7 billion in new business awards for the year [15][16] - Strategic initiatives include targeting underrepresented car OEMs in Asia and expanding into adjacent markets such as two-wheelers and commercial vehicles [23][24] - The introduction of AI-enabled cockpit systems is a key focus, with the company positioned well in this emerging technology trend [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from the macro environment, particularly in China and for electric vehicles in the U.S., but maintained a positive outlook for adjusted EBITDA and free cash flow [6][39] - The company expects to return to growth in China, driven by new model launches and high-performance compute programs [48][61] - Concerns were raised regarding potential risks from recent trade restrictions imposed by the Chinese government on semiconductor suppliers, which could impact production [41][42] Other Important Information - The company resumed capital returns to shareholders with the initiation of a quarterly dividend and plans for additional capital returns in Q4 [7][35] - The company ended the quarter with $459 million in net cash, providing flexibility for investments and shareholder returns [27][35] Q&A Session Summary Question: Expectations for growth in China into 2026 - Management expects to return to growth in China, with about 20 new model launches planned for next year, predominantly in the back half of 2026 [46][48] Question: Impact of Nexperia trade restrictions - Management discussed the potential direct and indirect impacts of Nexperia's trade restrictions, noting that Visteon has a higher level of semiconductor inventory compared to peers, providing some cushion [49][54] Question: Direction of BMS sales into 2026 - Management anticipates BMS revenue to continue declining in 2026 due to headwinds in the EV market, with expectations for stabilization thereafter [62] Question: Sustainability of new business booking momentum - Management believes the current momentum in new business bookings is sustainable, driven by strong demand for displays and ongoing investments in product development [65][66] Question: Margin implications and recoveries from OEMs - Management indicated that margins have remained strong, with expectations for continued recoveries from OEMs related to volume adjustments [72][76]

Euronet Worldwide (NasdaqGS:EEFT) Q3 2025 Earnings Call October 23, 2025 09:00 AM ET Speaker5Good morning, everyone, and welcome to Euronet's third quarter 2025 earnings conference call. On the call today, we have Mike Brown, our Chairman and CEO, as well as Rick Weller, our CFO. Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet or its manage ...

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings available to common shareholders were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [15][16] - Total allowance for credit losses decreased to $320 million, down approximately $22.4 million from the second quarter, with net charge-offs increasing to $38.6 million or 56 basis points annualized [16][17] - Tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the second quarter, with a steady net interest margin at 3.83% [18][19] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. The company expects year-end loan balances to range between $27.7 billion and $28 billion [6][8] - Non-interest income decreased by $29.7 million to $51.8 million, primarily due to a pretax loss related to the final CRE loan sale settlement [20] - Adjusted operating non-interest income increased by $5.1 million to $56.6 million, driven by higher loan-related interest rate swap fees and increased equity method investment income [21] Market Data and Key Metrics Changes - The company maintains a well-diversified portfolio, with approximately 23% of total loans in the Washington metro area and 77% across a broader footprint. Non-performing assets as a percentage of loans held for investment remained low at 0.49% [10][11] - The unemployment rate in Maryland to Virginia stood at 3.6%, below the national average of 4.3%, indicating resilience in the market despite government employment reductions and shutdown concerns [12] Company Strategy and Development Direction - The integration of Sandy Spring Bank is progressing smoothly, with expectations to achieve cost-savings targets and enhanced earnings power visible on a reported basis by 2026 [4][5] - The company aims to deliver sustainable growth and top-tier financial performance, leveraging strategic advantages gained from the Sandy Spring acquisition and continued organic growth opportunities [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, reaffirming the forecast for the full year 2025 net charge-off ratio to be between 15 and 20 basis points [10] - The company anticipates mid-single-digit loan growth for 2026, with potential for high single-digit growth in a more normalized environment [33][34] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend amount [24] - Full-year projections include net interest income between $1.16 billion and $1.165 billion, with an expected net interest margin for the full year between 3.75% and 3.8% [25][26] Q&A Session Summary Question: Loan growth outlook for 2026 - Management expects mid-single-digit loan growth for 2026, with potential for high single-digit growth in a normalized environment, supported by strong pipelines and new client acquisition [33][34] Question: Expense outlook and efficiency ratio - The efficiency ratio is expected to be in the mid-40s for 2026, with a focus on maintaining a flat expense base while expanding in North Carolina [35][36] Question: Credit health and trends - Overall credit trends are positive, with low non-performing assets and past dues. The two charge-offs were isolated events, and management remains confident in the portfolio's health [60][61]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.27 for Q3 2025, with a net expense of $23.3 million from notable items impacting EPS by $0.59 [15] - Total revenue, excluding notable items, increased by 10%, while noninterest expense decreased by 3% [9][19] - The pretax pre-provision return on assets (ROA) rose by 48 basis points to 1.63% compared to 1.15% in 2024 [8] Business Line Data and Key Metrics Changes - Loan originations increased by 19.2% year-to-date compared to the same period last year, with business loan production under $2.5 million up by 22.9% [9] - Treasury management fee income grew by 7% year-over-year, while loan and swap fees surged by 62% during the same period [9] - Noninterest-bearing deposits rose by $158.6 million or 8.6% quarter-over-quarter [10] Market Data and Key Metrics Changes - The company experienced a strong build on the deposit side, with total deposits increasing by 2.6% during the quarter [15] - Loans past due 30 to 89 days decreased from 0.16% last quarter to 0.1% as of September 30 [13] - Classified loans increased by $10.7 million, representing 1.84% of total loans at quarter-end, compared to 1.66% as of June 30 [13] Company Strategy and Development Direction - The company is focused on the "Optimize Origin" initiative, aiming to enhance ROA and capitalize on M&A-driven disruptions in the market [7][21] - The management expressed confidence in achieving top quartile performance through strategic relationship building and market opportunities [7][21] - The company plans to continue enhancing processes and controls to mitigate risks and improve credit management [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the Tricolor fraud incident but emphasized that it is an isolated event and does not define the company [6][12] - The outlook for loan growth in Q4 is optimistic, with expectations of a return to growth after a period of paydowns [17][39] - The company anticipates maintaining deposit growth guidance in low single digits for the year, supported by seasonal inflows [17] Other Important Information - The company charged off the entire outstanding debt related to Tricolor, totaling $28.4 million, and fully reserved $1.5 million in unfunded letters of credit [12] - The tangible book value grew to $33.95, marking the twelfth consecutive quarter of growth [20] - The company repurchased 265,248 shares at an average price of $35.85 during the quarter [20] Q&A Session Summary Question: Can you talk about your NDFI exposure and any trends in subprime credits? - The subprime portfolio was approximately $92 million, representing 1.2% of total loans, with no past dues or non-performing loans in the NDFI segment [31][32] Question: What insurance could offset some of the charge-offs related to Tricolor? - Management is pursuing recovery avenues but cannot quantify the potential recovery at this time due to the complexities of the bankruptcy process [33][34] Question: Can you provide insights on loan growth guidance for 2026? - The company expects mid to high single-digit growth in 2026, driven by strong origination trends and a robust pipeline [39][40] Question: Will there be any impact on expense run rate due to the Tricolor incident? - Management does not anticipate significant additional expenses but is enhancing internal processes for credit management [44][45] Question: What are the priorities for capital deployment? - The primary focus is on organic balance sheet growth, with stock buybacks and potential M&A opportunities considered secondary [59][60]