Financial Data and Key Metrics Changes - Aptiv reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [5][18] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [6][19] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [6][19] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, up 2% year-over-year, but operating income declined 17% due to investments and unfavorable FX [20][21] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income rising 8% and margin expanding by 60 basis points [21] - Electrical Distribution Systems (EDS) revenue grew 5% to $2.3 billion, but operating income declined 2% due to FX and commodity headwinds [21] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, while Europe experienced a 1% decline, and China revenue decreased by 5% [19][20] - New business bookings in China totaled $5 billion, with almost $4 billion from local OEMs, and new business awards in non-automotive markets reached over $4 billion [10][20] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - Aptiv plans to spin out its Electrical Distribution Systems business as VersaGen on April 1, 2026, aiming to enhance shareholder value [5][10] - The company is committed to optimizing its cost structure and eliminating stranded costs associated with the spin-off [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and capturing higher growth opportunities across multiple end markets [34] - The outlook for 2026 includes revenue guidance for new Aptiv in the range of $12.8-$13.2 billion, reflecting a 4% growth at the midpoint [25] - Management acknowledged challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [56] Other Important Information - The company generated over $2 billion in operating cash flow for the full year, leading to a year-end cash balance of $1.9 billion [23] - Capital allocation efforts included retiring $1 billion in debt and deploying $400 million towards share repurchases [23][24] Q&A Session Summary Question: Insights on memory exposure and contract resets - Management indicated that memory costs are approximately $175 million, with low double-digit price increases expected in 2026, and confidence in negotiating cost recoveries with OEM customers [37][38] Question: Guidance for new Aptiv into 2026 - Management clarified that the 4% growth guidance is influenced by global vehicle production expectations, with strong growth anticipated in non-auto revenues [41][42] Question: EBITDA outlook for 2026 - Management provided a framework indicating stable margins with various factors impacting EBITDA, including commodity prices and investments in non-auto business growth [48][50] Question: Regional revenue performance expectations - Management expects North America to lead revenue growth, with Europe flat to slightly down and improved performance anticipated in China [58][59] Question: Impact of EV volumes on VersaGen growth - Management projected a 15% year-over-year growth in EVs, primarily driven by China, despite lower growth expectations in North America [83]

Financial Data and Key Metrics Changes - The Ermenegildo Zegna Group reported total revenues of EUR 1.9 billion for FY 2025, with the Zegna brand contributing EUR 1.2 billion [3] - Q4 revenues reached EUR 591 million, reflecting a 4.6% organic growth [13] - The Zegna brand specifically saw Q4 revenues of EUR 362 million, up 7% driven by the DTC channel [14] Business Line Data and Key Metrics Changes - The DTC channel for the group reported a 10% growth in Q4, with Zegna DTC revenues growing 10% and accounting for 88% of full year 2025 brand revenues [17][18] - Thom Browne reported Q4 revenues of EUR 91 million, up 1.4% organic, while Tom Ford Fashion reached EUR 98 million, up 1.5% [13][14] - The textile segment grew by 1% [14] Market Data and Key Metrics Changes - Europe, the Middle East, and Africa represented 36% of total revenues for FY 2025, with a 7% increase in Q4 [15] - The Americas accounted for 30% of total revenues, recording a 16% increase in Q4 [15] - Greater China accounted for 23% of total revenues, but reported a 10% decrease in Q4 [16] Company Strategy and Development Direction - The company aims to strengthen its DTC channel and reduce reliance on wholesale, with a focus on elevating brand offerings and customer experiences [4][9] - The strategy includes enhancing the Zegna brand's presence through fashion shows and partnerships, such as the Airbus collaboration [4] - The company is committed to maintaining its heritage while adapting to market changes, emphasizing agility and innovation [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain and volatile market environment, particularly in Greater China, but expressed optimism about the resilience of the U.S. market [10][73] - The leadership team is focused on executing strategies to enhance brand momentum and expand the high-end customer base [7][8] - The company is monitoring the situation with Saks Global, which filed for Chapter 11 bankruptcy, but believes it can absorb the impact due to limited revenue exposure [21][46] Other Important Information - The company is planning to open new stores in key markets, including the U.S. and the Middle East, while rationalizing its retail footprint in China [107] - The management highlighted the importance of personalization and high-end product offerings to attract high-spending customers [88][92] Q&A Session Summary Question: Zegna brand DTC growth and 2026 outlook - Management confirmed that excluding China, Zegna brand DTC growth was around high teens percentage year-over-year, with resilience expected in the U.S. market [24][30] Question: FX impact for 2026 - The company anticipates a 2-3% headwind from currency fluctuations in 2026, partially mitigated by hedging strategies [27] Question: Zegna retail productivity and perfume rollout - Zegna's retail productivity is close to EUR 20,000 per square meter, with expectations for high single-digit improvement driven by product mix and pricing strategies [36][40] Question: Exposure to Saks Global - The group's revenue exposure to Saks is in the low single-digit area, and management is closely monitoring the situation [46] Question: U.S. market performance and customer acquisition - The U.S. market continues to show strong performance, with both new customer acquisition and returning customers contributing to growth [70][74] Question: Wholesale channel expectations for 2026 - The wholesale channel is expected to remain negative in 2026, with a high single-digit decline anticipated for the group [55][58] Question: Pricing environment and high spending cohort - The company plans mid-single-digit price increases to offset currency fluctuations, with a focus on high-spending customers driving growth [87][92]

Financial Data and Key Metrics Changes - Revenue for Q1 increased to $103.7 million, representing a 17% year-over-year growth and approximately 5% sequentially [20] - Gross margin improved to 52.0%, an increase of approximately four margin points compared to Q1 of Fiscal 2025 [20][24] - Adjusted EBITDA loss was approximately $13.4 million, an improvement of about $2.8 million versus Q1 of Fiscal 2025 [24] Business Line Data and Key Metrics Changes - DNA synthesis and protein solutions revenue rose to $51.1 million, a 27% year-over-year increase driven by AI-enabled discovery [20] - NGS applications revenue grew to approximately $52.6 million, with an 18% year-over-year growth when excluding one large customer [20] - Revenue from therapeutics increased to approximately $37.2 million, reflecting a 39% year-over-year growth [21] Market Data and Key Metrics Changes - Americas revenue increased to approximately $58.4 million, a 9% year-over-year growth [21] - AMEA revenue rose to approximately $38.4 million, a 36% year-over-year increase [21] - APAC revenue increased to approximately $7 million, compared to $6.7 million in the same period of Fiscal 2025 [21] Company Strategy and Development Direction - The company aims to leverage its semiconductor-based DNA synthesis platform to enhance speed, scale, quality, and affordability for customers [5] - The estimated serviceable market has expanded from approximately $2 billion in 2020 to roughly $7 billion today, with a target of over $12 billion by 2030 [7][8] - The company is focused on disciplined product innovation and expanding its addressable markets while maintaining margin discipline [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching Adjusted EBITDA break-even by Q4 of Fiscal 2026, supported by consistent revenue growth and disciplined investment in operating expenses [11][27] - The company sees a durable opportunity in AI-enabled discovery, with increasing orders from large pharma and biotech customers [31][49] - Management highlighted the importance of maintaining a scalable cost structure while investing in growth [12][27] Other Important Information - The company plans to host an investor day in May to provide deeper insights into its strategy, product roadmap, and market expansion opportunities [28] - The company ended the quarter with $197.9 million in cash, cash equivalents, and short-term investments [25] Q&A Session Summary Question: Demand for AI-driven discovery and its duration - Management noted that demand is expected to be durable, with customers returning for larger orders, indicating strong growth potential [31] Question: Increased guidance confidence for DNA synthesis and NGS - Management attributed increased confidence to overall strong performance across the board and the return of a previously mentioned customer [37] Question: Gross margin expectations for Q2 and beyond - Management indicated that while gross margin improvements are expected, investments in growth may moderate the pace of margin expansion [44][46] Question: Strategic investments made in the quarter - Management detailed structural investments in hiring sales personnel and transient investments in digital infrastructure to support growth [50][52] Question: New partnerships in the diagnostic space - Management confirmed that growth in NGS for FY 2026 will primarily come from existing partners, with new partnerships being crucial for sustained growth in 2027 and beyond [56]

Financial Data and Key Metrics Changes - The company reported a total of 37,589,332 shares issued and outstanding as of the record date, with each share entitled to one vote [4] - The meeting confirmed a quorum was present for the transaction of business, indicating strong shareholder engagement [5] Business Line Data and Key Metrics Changes - No specific financial data or key metrics related to individual business lines were provided in the meeting records Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company emphasized the importance of forward-looking statements, indicating a focus on future growth and potential risks associated with financial performance [7] Management's Comments on Operating Environment and Future Outlook - Management cautioned that actual results could differ materially from projections, highlighting the inherent risks and uncertainties in the current operating environment [7] Other Important Information - The company provided access to its annual report on Form 10-K for the fiscal year ended September 30, 2025, which includes important risk factors [7] Q&A Session All Questions and Answers Question: What are the key risks associated with the company's forward-looking statements? - Management indicated that the actual results could differ materially from those projected due to various risk factors outlined in the annual report [7] Question: How did the voting on executive compensation and auditor appointment go? - The non-binding advisory vote regarding executive compensation received more votes for than against, and the proposal to ratify the appointment of Deloitte & Touche LLP was approved by a majority [6]

Financial Data and Key Metrics Changes - The company reported a total of 37,589,332 shares issued and outstanding as of the record date, with a majority of votes represented at the meeting [4][6] - The non-binding advisory vote regarding executive compensation received more votes in favor than against, indicating shareholder support [6] Business Line Data and Key Metrics Changes - No specific data on business line performance or key metrics was provided in the meeting [1] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [1] Company Strategy and Development Direction and Industry Competition - The company emphasized the importance of forward-looking statements and acknowledged the risks and uncertainties associated with them, indicating a cautious approach to future projections [7][8] Management Comments on Operating Environment and Future Outlook - Management highlighted that actual results could differ materially from projections, referencing the risk factors detailed in the annual report [7][8] Other Important Information - The meeting included the election of two incumbent directors and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2026 [5][6] Q&A Session All Questions and Answers Question: What are the company's future growth prospects? - The company did not provide specific answers to questions during the meeting, but indicated that questions could be addressed later through their investor relations website [2][9]

Financial Data and Key Metrics Changes - First Business Bank reported a pre-tax, pre-provision earnings growth of nearly 15% over 2024, with a return on average tangible common equity exceeding 15% for the year [5][6] - Tangible book value per share increased by 14% year-over-year, and earnings per share (EPS) grew by 14% over 2024, surpassing the long-term annual goal of 10% earnings growth [5][6] - The net interest margin (NIM) for the fourth quarter declined by 15 basis points to 3.53%, primarily due to a non-accrual interest reversal, but the target range for NIM remains at 3.60%-3.65% [16][17] Business Line Data and Key Metrics Changes - The private wealth business generated a record $3.8 million in fee income, up 11% year-over-year, while service charges increased nearly 20% year-over-year [9] - Net interest income for the full year grew by 10%, meeting the double-digit growth goal, attributed to robust loan and deposit growth [9][10] - Non-interest income showed resilience despite lower SBA gains and variable income streams, achieving 10% operating revenue growth for the full year [10][11] Market Data and Key Metrics Changes - Loan balances grew by approximately $39 million, or 5% annualized during the fourth quarter, and $261 million, or 8% over the same period last year [11] - Core deposit balances increased by 12% from both the linked and prior year quarters, primarily from core interest-bearing and money market accounts [14] - The company expects loan growth to rebound to typical double-digit rates in 2026, driven by solid loan demand and a strong regional economy [12][13] Company Strategy and Development Direction - The company aims to continue achieving double-digit growth by investing in talent, technology, and maintaining prudent underwriting practices [24] - The board approved a 17% increase in the quarterly cash dividend, reflecting confidence in future financial success [6] - The company emphasizes organic growth as the best way to drive shareholder value, rather than pursuing M&A opportunities [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong pipelines in commercial real estate and C&I loans, as well as potential benefits from changes in federal tax policy [13][72] - The company is confident in maintaining a strong and stable margin, with expectations for continued double-digit growth in net interest income [17][18] - Management acknowledged challenges from elevated CRE payoff activity but remains committed to achieving growth targets [12][81] Other Important Information - The company experienced an isolated credit situation with a $20.4 million downgrade in CRE loans related to a single borrower, but overall asset quality remains strong [7][8] - An accounting classification change was made to present the net benefit of partnership investments, which will continue going forward [18][19] Q&A Session Summary Question: Details on the CRE relationship affecting NPAs - Management provided insights on appraisals and loan-to-value ratios, indicating a 72% LTV across seven properties [30][31] Question: Expectations for credit costs in the coming year - Management clarified that charge-offs for the quarter were primarily related to equipment finance, with no specific reserves needed for the downgraded CRE loans [32][33] Question: Fee income growth guidance - Management confirmed a 10% growth expectation for overall fees, excluding certain non-recurring items [35][36] Question: Equipment finance portfolio balance and expectations - The transportation segment of the Equipment Finance portfolio was reported at $21 million, down from $61 million previously [53][54] Question: Confidence in achieving double-digit loan growth - Management expressed confidence based on strong pipelines and improved team performance, despite recent higher payoff levels impacting growth [80][81]

Financial Data and Key Metrics Changes - First Business Bank reported a nearly 15% increase in pre-tax, pre-provision earnings over 2024, with a return on average tangible common equity exceeding 15% for the year [5][6] - Tangible book value per share grew 14% year-over-year, and earnings per share (EPS) increased by 14% over 2024, surpassing the long-term goal of 10% annual growth [5][6] - The net interest margin (NIM) declined by 15 basis points to 3.53%, primarily due to a non-accrual interest reversal, but remained stable at 3.64% for the full year [16][17] Business Line Data and Key Metrics Changes - The private wealth business generated a record $3.8 million in fee income, up 11% year-over-year, while service charges increased nearly 20% year-over-year [9] - Net interest income grew 10% for the full year, meeting the double-digit growth goal, attributed to robust loan and deposit growth [9][10] - Non-interest income was affected by lower SBA gains and a reclassification of partnership investment income, which was adjusted to reflect net benefits [18][19] Market Data and Key Metrics Changes - Loan balances grew by approximately $39 million, or 5% annualized during the fourth quarter, and $261 million, or 8% year-over-year [11] - Core deposit balances increased by 12% from both the linked and prior year quarters, primarily from interest-bearing and money market accounts [14] - The company expects loan growth to rebound to typical double-digit rates in 2026, driven by strong regional economic conditions in Southern Wisconsin [12][13] Company Strategy and Development Direction - The company aims to achieve double-digit growth by investing in talent, technology, and maintaining prudent underwriting practices [24] - Management emphasized the importance of organic growth over acquisitions, believing it provides better value for shareholders [72][73] - The focus remains on maintaining a strong and stable net interest margin while shifting the loan mix towards higher-yielding commercial and industrial (C&I) relationships [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong pipelines in commercial real estate and C&I lending, as well as potential benefits from changes in federal tax policy [13][72] - The company anticipates continued competitive pressure on deposit pricing but believes it can maintain margins due to a balanced interest rate strategy [17][70] - Management acknowledged isolated credit challenges but indicated overall asset quality remains strong, with no significant concerns outside of specific loans [14][33] Other Important Information - The company recorded net charge-offs of $2.5 million, primarily from previously reserved equipment finance loans [14] - The effective tax rate for 2025 was 16.8%, within the expected range, and the company plans to continue evaluating capital management tools to maximize shareholder returns [22] Q&A Session Summary Question: Details on the CRE relationship affecting MPAs - Management provided insights on appraisals and the loan-to-value ratio, indicating a 72% LTV across seven properties [30][31] Question: Expectations for credit costs in the coming year - Management clarified that recent charge-offs were primarily related to equipment finance, with no specific reserves needed for the CRE relationship [32][33] Question: Fee income growth guidance - Management confirmed a 10% growth expectation for overall fees, excluding certain non-recurring items [35][36] Question: Timeline for resolution of larger problem loans - Management indicated that resolution could take time but expects progress throughout the year [48][49] Question: Equipment finance portfolio balance and expectations - The equipment finance portfolio was reported at $20 million, down from $61 million, with expectations for stability moving forward [55][56] Question: Strategic goals and potential adjustments - Management discussed the achievement of strategic goals and the focus on maintaining or improving efficiency ratios [57][58] Question: Outlook for loan growth in 2026 - Management expressed confidence in achieving double-digit loan growth, supported by strong pipelines and improved team performance [80][82]

Financial Data and Key Metrics Changes - First Business Financial Services reported a nearly 15% growth in pre-tax, pre-provision earnings over 2024, with a return on average tangible common equity exceeding 15% for the year [4] - Tangible book value per share increased by 14% year-over-year, and earnings per share (EPS) grew 14% over 2024, surpassing the long-term annual goal of 10% earnings growth [4][5] - The net interest margin (NIM) declined by 15 basis points to 3.53%, primarily due to a non-accrual interest reversal, but remained stable at 3.64% for the full year [15][16] Business Line Data and Key Metrics Changes - The private wealth business generated a record $3.8 million in fee income, up 11% year-over-year, while service charges increased nearly 20% year-over-year [9] - Non-interest income showed resilience despite lower SBA gains and variable swap and loan fees, achieving 10% operating revenue growth for the full year [10][11] - Loan balances grew by approximately $39 million, or 5% annualized during the quarter, and $261 million, or 8% over the same period last year [11] Market Data and Key Metrics Changes - The company experienced elevated commercial real estate (CRE) payoff activity during Q4, with total payoffs in 2025 exceeding 2024 levels by almost $70 million [12] - Core deposit balances increased by 12% from both the linked and prior year quarters, primarily from core interest-bearing and money market accounts [14] - The company anticipates continued solid loan demand in its bank markets, particularly in Southern Wisconsin, benefiting from a strong regional economy [12][13] Company Strategy and Development Direction - The company aims to maintain double-digit growth in earnings and revenue, focusing on talent acquisition, technology investment, and prudent underwriting [21] - The board approved a 17% increase in the quarterly cash dividend, reflecting confidence in the company's financial success and growth trajectory [5] - The company emphasizes organic growth as the best way to drive shareholder value, rather than pursuing M&A opportunities [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong pipelines in commercial real estate and C&I loans, as well as potential benefits from changes in federal tax policy [13][21] - The company expects to see growth rebound to typical double-digit rates in 2026, driven by positive trends in the banking industry and client demand [12][21] - Management noted that while deposit pricing pressure remains competitive, it has eased modestly since the Fed began cutting rates [16][70] Other Important Information - The company recorded a non-accrual interest reversal totaling $892,000, which compressed net interest income and lowered the margin by ten basis points in Q4 [8] - The effective tax rate for 2025 was 16.8%, within the expected range of 16%-18%, and the company continues to generate excess capital for organic growth [20] Q&A Session Summary Question: Details on the CRE relationship that drove the increase in MPAs - Management provided insights on the timing of appraisals and the current loan-to-value ratio, which is 72% across the cross-collateralized properties [26][28] Question: Expectations for credit costs in the coming year - Management clarified that charge-offs for the quarter were primarily related to equipment finance and not the downgraded CRE loan, indicating no specific reserves were needed [30] Question: Fee income guidance clarification - Management confirmed that the 10% growth expectation for overall fees excludes certain non-recurring items and is based on a solid foundation [32][34] Question: Equipment finance portfolio balance and expectations - The equipment finance portfolio was reported at $20 million, down from $61 million, with expectations for stability moving forward [52] Question: Outlook on specialty businesses and fee income growth - Management highlighted expectations for growth in private wealth and SBA gain on sale, aiming for 10% growth in overall fee income [111]

Financial Data and Key Metrics Changes - The company reported a return on average tangible equity of 15.8% for Q4 and 16.3% for the full year, with an effective tax rate of 24.8% in Q4, expected to normalize to 23.2% going forward [7][17] - Net interest income for Q4 was $170.3 million, a $1 million increase from the prior quarter, with a net interest margin (NIM) of 3.21%, up 2 basis points from the previous quarter [12][7] - Total loans grew by $183 million in the quarter, representing a 5.2% annualized growth rate [10] Business Line Data and Key Metrics Changes - Retail and commercial deposits increased by $233 million, while public deposits declined by $447 million, resulting in a net increase of $214 million in deposits for Q4 [11] - Non-interest income was reported at $55.6 million, while non-interest expense for Q4 was $125.1 million [13] Market Data and Key Metrics Changes - The unemployment rate in the state was 2.2% in November, significantly lower than the national rate of 4.5% [6] - Year-to-date spending through November was $19.6 billion, up about 6% compared to the same period last year [6] Company Strategy and Development Direction - The company anticipates full-year loan growth in the range of 3%-4%, primarily driven by commercial real estate (CRE) and commercial and industrial (C&I) loans [17] - The company has a new stock repurchase authorization of $250 million, indicating a strong capital position and flexibility for future growth initiatives [9][60] Management's Comments on Operating Environment and Future Outlook - Management noted that credit risk remains low and stable, with no broad signs of weakness observed in consumer or commercial books [14] - The company expects non-interest income to remain stable at approximately $220 million for the year, with expenses projected to be around $520 million in 2026 [17][54] Other Important Information - The company repurchased about 1 million shares during the quarter, utilizing the remaining $26 million of its $100 million purchase authorization for 2025 [9] - The allowance for credit losses increased to $168.5 million, with coverage rising to 118 basis points of total loans and leases [16] Q&A Session Summary Question: Loan growth trends and pipeline - Management indicated that loan growth was broad-based, with some payoffs in the CRE portfolio affecting expectations, but they anticipate more normalized growth in the second half of the year [24][25] Question: Payoffs and paydowns in the industry - Management noted that payoffs have been occurring sooner than expected due to increased competition from permanent lenders, but they expect this trend to normalize [26][28] Question: Deposit trends and NIM expansion - Management confirmed that the margin guide reflects the ability to continue cutting deposit rates, with expectations of a lower deposit beta going forward [30][31] Question: Full year loan growth guidance - Management suggested that loan growth may start lower in the first half of the year but expects a pickup in the second half [44] Question: M&A activity and ideal targets - Management reiterated their focus on organic growth but remains open to M&A opportunities, looking for well-managed firms with strong deposit franchises [72][73]

Financial Data and Key Metrics Changes - The net interest margin (NIM) expanded to 3.21%, up 2 basis points from the prior quarter [10] - Net interest income increased to $170.3 million, $1 million higher than the previous quarter [10] - Return on average tangible equity was 15.8% for the fourth quarter and 16.3% for the full year [6] - The effective tax rate for the fourth quarter was 24.8%, expected to return to about 23.2% going forward [6] Business Line Data and Key Metrics Changes - Total loans grew by $183 million in the quarter, or 5.2% on an annualized basis, with significant growth in commercial and industrial (C&I) loans [8] - Retail and commercial deposits increased by $233 million, while public deposits declined by $447 million, resulting in a net increase of $214 million in deposits [10] - Non-interest income was reported at $55.6 million, while non-interest expense was $125.1 million for the fourth quarter [11] Market Data and Key Metrics Changes - The state unemployment rate was 2.2% in November, significantly lower than the national rate of 4.5% [5] - Total visitor arrivals were down 0.2% year-over-year, with spending up 6% to $19.6 billion [5] - The median single-family home price on Oahu was $1.1 million, up 4.3% from the previous year, while the median condo sales price was $512,000, down 5.2% [5][6] Company Strategy and Development Direction - The company expects full-year loan growth to be in the 3%-4% range, driven primarily by commercial real estate (CRE) and C&I loans [15] - Non-interest income is anticipated to remain stable at about $220 million for the year, with expenses expected to be around $520 million in 2026 [15] - The company has a new stock repurchase authorization of $250 million, providing flexibility for capital return [8][59] Management's Comments on Operating Environment and Future Outlook - Management noted that credit risk remains low and stable, with no broad signs of weakness in consumer or commercial books [12] - The company expects to see more normalized growth in the second half of the year, following a period of payoffs in the CRE portfolio [22][28] - Management expressed confidence in maintaining a strong capital position, with a CET1 target of 12% and current levels above 13% [59] Other Important Information - The company repurchased about 1 million shares, utilizing the remaining $26 million of its $100 million purchase authorization for 2025 [8] - The allowance for credit losses increased to $168.5 million, with coverage at 118 basis points of total loans and leases [13] Q&A Session Summary Question: Loan growth trends and pipeline - Management indicated that loan growth was broad-based, with some payoffs in the CRE portfolio affecting expectations, but they anticipate more normalized growth in the future [22][23] Question: Payoffs and paydowns in the industry - Management noted that payoffs have been occurring sooner than expected due to increased competition from permanent lenders, but they expect this trend to normalize [27][28] Question: Deposit trends and NIM expansion - Management confirmed that the interest-bearing deposit beta is expected to decrease to 30%-35% after two rate cuts, with continued focus on reducing deposit costs [29][48] Question: Full year loan growth guidance - Management suggested that loan growth may start lower in the first half of the year but expects a pickup in the second half [44] Question: M&A activity and ideal targets - Management remains open to M&A opportunities, focusing on strong management teams and disciplined lending cultures, particularly in the western U.S. [71][72]