Financial Institutions Inc (FISI) 2025 Q3 法說會逐字稿

Hello everyone, and thank you for joining the Financial Institutions Inc. 3rd quarter 2025 earnings call. My name is Lucy, and I'll be coordinating your call today.(Operator Instructions) It is now my pleasure to hand over to your host, Kate Croft, Director of Investor Relations to begin. Please go ahead.

大家好，感謝各位參加金融機構公司2025年第三季財報電話會議。我叫露西，今天將由我負責協調您的通話。 （接線生指示）現在，我很高興將主持權交給各位嘉賓，投資者關係總監凱特·克羅夫特，請她開始演講。請繼續。

Thank you for joining us for today's call. Providing prepared comments will be President and CEO Marty Birmingham and CFO Jack Plant. They will be joined by additional members of the company's leadership team during the question-and-answer session. Today's prepared comments and Q&A will include forward-looking statements. Actual results may differ materially from forward-looking statements due to a variety of risks, uncertainties, and other factors. We refer you to yesterday's earnings release and investor presentation, as well as historical SEC filings, which are available on our investor relations website for a safe harbor description and a detailed discussion of the risk factors relating to forward-looking statements.

感謝您參加今天的電話會議。總裁兼執行長馬蒂·伯明翰和財務長傑克·普蘭特將發表事先準備好的演講。在問答環節中，公司領導團隊的其他成員也將加入。今天的準備發言和問答環節將包含前瞻性陳述。由於各種風險、不確定性和其他因素，實際結果可能與前瞻性聲明有重大差異。我們建議您參閱昨天發布的收益報告和投資者演示文稿，以及以往提交給美國證券交易委員會的文件，這些文件可在我們的投資者關係網站上查閱，其中包含有關前瞻性陳述的安全港說明和風險因素的詳細討論。

We will also discuss certain non-GAAP financial measures intended to supplement and not substitute for comparable GAAP measures. Reconciliations of these measures to GAAP financial measures were provided in the earnings release filed as the exhibit to form a K or in our latest investor presentation available on our IR website www.fififi-investors.com. Please note that this call includes information that may only be accurate as of today's date, October 24, 2025. I will now turn the call over to President and CEO Marty Birmingham.

我們還將討論一些非公認會計準則財務指標，這些指標旨在補充而非替代可比較的公認會計準則指標。這些指標與GAAP財務指標的調節表已在作為K表附件提交的盈利報告中提供，或可在我們投資者關係網站www.fififi-investors.com上查閱我們最新的投資者簡報中提供。請注意，本次電話會議所包含的資訊可能僅截至2025年10月24日當天有效。現在我將把電話交給總裁兼執行長馬蒂·伯明翰。

Thank you, Kate. Good morning, everyone, and thank you for joining us today.

謝謝你，凱特。各位早安，感謝大家今天收看我們的節目。

Our company reported strong 3rd quarter 2025 financial results marked by balance sheet growth, robust revenue generation, improved profitability metrics, and meaningful build of tangible and regulatory capital.

我們公司公佈了 2025 年第三季強勁的財務業績，其特點是資產負債表增長、收入強勁增長、盈利能力指標改善以及有形資本和監管資本的顯著積累。

Our teams delivered growth on both sides of the balance sheet, including low growth of 1.2% driven by commercial lending in our upstate New York market, and a 3.9% increase in total deposits as seasonal increases of public deposits were supported by growth of core non-public deposits in our commercial and consumer business lines. Record quarterly net interest income and increased non-interest income led to net income available to common shareholders of $20.1 million or $0.99 per diluted share for the third quarter.

我們的團隊在資產負債表的兩端都實現了增長，其中紐約州北部市場的商業貸款推動了1.2%的低增長，而公共存款的季節性增長得到了我們商業和消費業務線核心非公共存款增長的支持，使得總存款增長了3.9%。第三季淨利息收入創歷史新高，非利息收入增加，使得歸屬於普通股股東的淨收入達到 2,010 萬美元，即每股攤薄收益 0.99 美元。

These earnings translated to return on average assets and equity of 132 basis points and 13.31% respectively, both up notably from the length and year ago periods.

這些收益轉化為平均資產回報率和權益回報率分別為 132 個基點和 13.31%，均較上年同期顯著增長。

Based on our strong year to day performance, we are making several upward revisions to our full year 2025 guidance and tightening some ranges previously provided. Among these changes are updates to profitability metrics including return on average assets and return on average equity.

鑑於我們強勁的年度業績，我們對 2025 年全年業績預期進行了多項上調，並收緊了先前給出的一些預期範圍。這些變化包括對獲利能力指標的更新，例如平均資產回報率和平均權益回報率。

We now expect ROAA for the year to exceed 115 basis points, up from our previous guide of 110 basis points and an ROAE of greater than 12%, up from 11.25%. Given our team's continued execution, along with the opportunities we see in our markets across business lines, we would expect to raise the bar for profitability again next year as we target incremental improvement returns through 2026.

我們現在預計，今年的 ROAA 將超過 115 個基點，高於我們先前預期的 110 個基點；ROAE 將超過 12%，高於先前的 11.25%。鑑於我們團隊的持續執行力，以及我們在各個業務領域的市場機遇，我們預計明年將再次提高盈利能力標準，目標是到 2026 年實現逐步改善的回報。

We laid out loan growth of between 1% and 3% at the start of the year amid an uncertain economic environment. Given the strength of our performance here today, we expect to achieve the high end of this range.

年初時，在經濟環境不明朗的情況下，我們設定了貸款成長率在 1% 到 3% 之間的目標。鑑於我們今天在這裡的出色表現，我們預計能夠達到這個範圍的高端水平。

As a reminder, our loan growth guide also reflects our expectations for consumer and direct loan balances to remain relatively flat year over year, with growth being driven by our commercial franchise.

再次提醒大家，我們的貸款成長指南也反映了我們對消費者和直接貸款餘額較去年同期保持相對平穩的預期，成長將由我們的商業特許經營業務推動。

To that end, total commercial loans of about 3 billion reflect an increase of 1.6% from June 30, 2025 and 8.3% from September 30, 2024.

為此，商業貸款總額約 30 億美元，較 2025 年 6 月 30 日成長 1.6%，較 2024 年 9 月 30 日成長 8.3%。

Commercial business loans increased 2% during the third quarter of 2025, reflecting both new originations and increased line utilization, which may come down in the fourth quarter. Commercial mortgage loans were up 1.5% from the end of the late quarter and up 8% year over year. Third quarter commercial growth was driven by our upstate New York markets including C&I activity in the Syracuse region and CRE in Rochester.

2025 年第三季商業貸款成長 2%，反映出新增貸款和信貸額度使用率的提高，但第四季可能會下降。商業抵押貸款較上季末成長1.5%，較上季成長8%。第三季商業成長主要得益於我們在紐約州北部的市場，包括錫拉丘茲地區的工商業活動和羅徹斯特的商業房地產活動。

In the Syracuse market, we continue to see expanding opportunities fueled by Micron Technologies $100 billion investment in our region.

在錫拉丘茲市場，我們持續看到由美光科技公司在我們地區投資 1000 億美元推動的不斷擴大的機會。

For example, our Syracuse team recently closed a notable deal supporting the expansion of medical office space within close proximity to Micron's central New York semiconductor site. Our pipelines remain strong across upstate New York markets, and we believe that we'll be able to maintain momentum heading into 2026 as pent up demand for credit is likely to be released with future rate cuts.

例如，我們錫拉丘茲團隊最近完成了一項重要的交易，以支持在美光公司位於紐約州中部半導體工廠附近擴大醫療辦公空間。我們在紐約州北部市場的管道仍然強勁，我們相信，隨著未來降息，被壓抑的信貸需求可能會得到釋放，我們將能夠保持這一勢頭進入 2026 年。

Turning to consumer lending, our indirect portfolio rebounded nicely in the 3rd quarter on the heels of softer second quarter originations. Consumer indirect balances of $838.7 million in September 30th increased 0.6% from June 30th and we're down 4.1% year over year. As a reminder, we are a prime lending operation with more than 350 reputable new auto dealers across New York State.

再來看消費信貸，繼第二季貸款發放疲軟之後，我們的間接貸款組合在第三季出現了良好的反彈。截至9月30日，消費者間接餘額為8.387億美元，比6月30日成長0.6%，但年減4.1%。再次提醒，我們是一家領先的貸款機構，在紐約州擁有超過 350 家信譽良好的新車經銷商。

Credit extension is for individual vehicle purchases, not for plan financing, and we stay within a well-defined credit box, resulting in a portfolio with a weighted average FICO score exceeding 700. This portfolio's small average loan size of about 20,000 provides natural risk dispersion. Residential lending was up modestly from the end of the late quarter and flat to the year ago period. The housing market remains tight in the Rochester and Buffalo regions, and home prices have continued to increase, particularly in Rochester. That said, new listings and inventory are up on a year over year basis in both regions, which is promising.

信貸發放僅用於個人車輛購買，而非分期付款，我們嚴格遵守既定的信貸標準，因此我們的投資組合加權平均 FICO 信用評分超過 700 分。該投資組合的平均貸款規模較小，約為 2 萬美元，從而實現了自然的風險分散。住宅貸款較上季末略有成長，與去年同期持平。羅徹斯特和布法羅地區的房屋市場依然緊張，房價持續上漲，尤其是在羅徹斯特。儘管如此，這兩個地區的新房源和庫存量都比去年同期有所增加，這是一個好兆頭。

Our pipelines also look healthy heading into the 4th quarter, and mortgage and home equity applications are up 12% and 11% year over year respectively.

進入第四季度，我們的業務管道也看起來十分健康，抵押貸款和房屋淨值貸款申請分別年增了 12% 和 11%。

Turning to credit quality, annualized net charge-offs to average loans for the quarter of 18 basis points were half the level we reported in the late quarter and relatively in line with the 15 basis points recorded in the third quarter of 2024.

再來看信貸質量，本季年化淨沖銷額與平均貸款額之比為 18 個基點，是上個季度報告水準的一半，與 2024 年第三季記錄的 15 個基點基本一致。

In the third quarter, we recovered approximately $400,000 related to a previously charged off construction loan associated with a historic property in a Rochester market.

第三季度，我們收回了約 40 萬美元，這筆款項與先前已註銷的羅徹斯特市場一處歷史建築相關的建築貸款有關。

Our consumer direct charge-off ratio is 91 basis points in the most recent quarter, up seasonally from the late period, but down from the third quarter of last year. This remains comfortably within our historic range, reflecting the prime lending nature of our indirect business.

我們最近一個季度的消費者直接沖銷率為 91 個基點，雖然季節性上調，但低於去年第三季。這仍然在我們歷史範圍內，反映了我們間接業務的優質貸款性質。

While we experienced two basis point increase in our ratio of non-performing loans to total loans to 74 basis points at September 30, 2025, this is down notably from 94 basis points one year ago. We continue to work through the two commercial relationships that have made up the majority of non-performers for the past several quarters.

截至 2025 年 9 月 30 日，我們的不良貸款與總貸款之比上升了 2 個基點，達到 74 個基點，但這與一年前的 94 個基點相比明顯下降。我們仍在努力解決過去幾季以來導致大部分業績不佳的兩大商業合作關係。

The 1.5 million increase in total non-performing loans during the third quarter relates to four smaller commercial loan downgrades, each in different industries and geographies facing unique issues. Accordingly, this is not indicative of a downward trend in our overall commercial loan asset quality. The overall health of both our consumer commercial portfolios remains solid and reflects enhanced diversification over the years.

第三季不良貸款總額增加 150 萬筆，這與四筆較小的商業貸款評級下調有關，每筆貸款都涉及不同的行業和地區，面臨著獨特的問題。因此，這並不表示我們的整體商業貸款資產品質呈下降趨勢。我們的消費品商業產品組合整體健康狀況依然穩健，反映了多年來不斷增強的多元化。

Indirect auto balances and residential lending make up 18% and 16% of total loans respectively.

間接汽車貸款餘額和房屋貸款分別佔貸款總額的 18% 和 16%。

Our commercial portfolio is well diversified by loan type, client type, and geography and does not include any lending to non-depository financial institutions.

我們的商業貸款組合在貸款類型、客戶類型和地理方面實現了良好的多元化，並且不包括對非存款金融機構的任何貸款。

We have consistently employed strong fundamental underwriting processes and have experienced credit professionals working in separate credit delivery and relationship-based functions. That credit discipline is reflected in our low credit costs. We remain comfortable with our guided full year net charge off ratio range of between 25 and 35 basis points and our current loan loss reserve ratio of 103 basis points.

我們一直採用嚴格的基本核保流程，並擁有經驗豐富的信貸專業人員，分別負責信貸發放和客戶關係維護等不同職能。這種信貸紀律體現在我們較低的信貸成本。我們仍然對全年淨沖銷率預期範圍（25 至 35 個基點）和目前的貸款損失準備金率（103 個基點）感到滿意。

He then total deposits were $5.36 billion up 3.9% from June 30, driven by seasonal increases in our public deposit portfolio, and also reflective of growth in core non-public deposits. As a reminder, public deposits are sourced through long standing relationships with more than 320 local municipalities, and the balances peak in the 1st and 3rd quarters.

隨後，總存款額為 53.6 億美元，較 6 月 30 日增長 3.9%，主要得益於公共存款組合的季節性增長，同時也反映了核心非公共存款的增長。提醒大家，公共存款來自與 320 多個地方市政當局的長期合作關係，餘額在第一季和第三季達到高峰。

Total deposits were up a modest 1% from a year ago, reflecting an increase in broker deposits to help offset the fast platform wind down we initiated in September 2024.

與去年同期相比，總存款額小幅增加了 1%，這反映出經紀商存款的增加，以幫助抵消我們在 2024 年 9 月啟動的快速平台關閉計劃。

Vast deposits were modest $7 million at the end of the third quarter, and we now expect those to flow off the balance sheet in early 2026.

第三季末，巨額存款僅為 700 萬美元，我們現在預計這些存款將在 2026 年初從資產負債表中消失。

We continue to expect total deposits at year-end 2025 to be generally flat with the prior year-end.

我們仍預期 2025 年底的總存款額將與去年年底基本持平。

It's my pleasure to turn the call over to Jack for additional details on our performance and output.

我很高興將電話轉給傑克，讓他為我們詳細介紹我們的表現和產出。

Thank you, Marty.

謝謝你，馬蒂。

Good morning, everyone.

各位早安。

That interest margin expanded 16 basis points on a linked-quarter basis, reflective of improved yields on average earning assets alongside deposit repricing that supported reduced funding costs. Our active balance sheet management contributed to 11 basis points of improvement to investment security fields, largely related to the modest portfolio repositioning that occurred in June. Activity continued during the third quarter when we sold the $22.3 million of 30 year fixed rate mortgage backed securities with higher expected prepayment fees.

該利差環比擴大了 16 個基點，反映出平均獲利資產收益率的提高以及存款重新定價降低了融資成本。我們積極的資產負債表管理使投資安全領域改善了 11 個基點，這主要與 6 月進行的適度投資組合調整有關。第三季度，我們繼續開展業務，售出了 2,230 萬美元的 30 年期固定利率抵押貸款支持證券，這些證券的預期提前還款費用較高。

The proceeds of which were reinvested into investment grade corporate bonds.

所得款項再投資於投資等級公司債。

As this small restructuring was completed in September 2025, we expect to see further benefit to investment security yields in the fourth quarter. Average loan yields increased 3 basis points as compared to the second quarter of 2025. As a reminder, approximately 40% of our loan portfolio is tied to floating rates, with a repricing frequency of 1 month or less. We expect loan yields to decline slightly in the 4th quarter, given the recent rate cut.

由於這項小型重組已於 2025 年 9 月完成，我們預計第四季度投資安全收益率將進一步受益。平均貸款收益率較 2025 年第二季上升 3 個基點。再次提醒，我們約有 40% 的貸款組合採用浮動利率，重新定價頻率為 1 個月或更短。鑑於近期降息，我們預計第四季度貸款收益率將略有下降。

Cost of funds decreased 11 basis points from the length quarter as higher rate CDs matured alongside overall downward deposit repricing.

由於高利率定期存單到期以及整體存款重新定價下調，資金成本較上一季下降了 11 個基點。

Given our year to dated results, we're tightening our expected range for full year net interest margin to between 350 basis point and 355 basis points. This guidance includes the expectation for modest margin pressure in the 4th quarter. Given recent FOMC activity.

鑑於我們年初至今的業績，我們將全年淨利差的預期範圍收窄至 350 個基點至 355 個基點之間。該預期包括第四季度利潤率將面臨輕微壓力。鑑於聯準會近期的活動。

As deposit repricing lags, loan repricing given the adjustable percentage of the loan portfolio previously mentioned.

由於存款重新定價滯後，貸款重新定價考慮到了前面提到的貸款組合的可調整百分比。

That compression is expected to be temporary based upon deposit repricing assumptions. Looking ahead to 2026, we anticipate incremental margin improvement to be driven by changes in earning asset mix through loan growth, coupled with active management of our funding costs. Third quarter double-digit margin expansion supported strong net interest income of 51.8 million. Up 2.7 million or 5.4% from the second quarter. Non-interest income was $12.1 million up $1.4 million or 13.6% from the length quarter, reflecting increases from several revenue streams. Investment advisory revenue topped 3 million, up 4.8% on a linked-quarter basis. Courier capital experienced positive net flows as new business and market-driven gains offset outflows, pushing AUMs to 3.56 billion at quarter end, Up 173.6 million or 5.1% from June 30th. During the 3rd quarter, we announced the opening of a satellite office in Sarasota, Florida. The office allows our wealth management firm to better serve existing clients who spend time in Florida while also opening the door to new relationships in one of the nation's most dynamic retirement markets. Third quarter company-owned life insurance income was 2.8 million, down from $3 million last quarter.

根據存款重新定價的假設，這種價格壓縮預計是暫時的。展望 2026 年，我們預期利潤率的逐步提高將得益於貸款成長帶來的獲利資產組合變化，以及對融資成本的積極管理。第三季兩位數的利潤率成長支撐了強勁的淨利息收入，達到 5,180 萬美元。比第二季增加270萬，增幅5.4%。非利息收入為 1,210 萬美元，比上一季增加 140 萬美元，增幅達 13.6%，反映出多個收入來源的成長。投資諮詢收入超過 300 萬美元，較上季成長 4.8%。快遞資本實現了正淨流入，新業務和市場驅動的收益抵消了資金流出，推動資產管理規模在季度末達到 35.6 億美元，比 6 月 30 日增加了 1.736 億美元，增幅為 5.1%。第三季度，我們宣佈在佛羅裡達州薩拉索塔開設衛星辦公室。該辦事處使我們的財富管理公司能夠更好地服務於在佛羅裡達州居住的現有客戶，同時也為我們在這個全國最具活力的退休市場之一建立新的合作關係打開了大門。第三季公司自有壽險收入為 280 萬美元，低於上一季的 300 萬美元。

As a reminder, in the 1st quarter we initiated a Koli restructuring, and the redemption of the surrendered policy proceeds from the carrier did not occur until June. Contributing to higher levels of coli revenue in the first half of the year. SWAT fee income was up 150% to 847,000 as a result of increased commercial back to back swap activity during the quarter.

提醒一下，我們在第一季啟動了 Koli 重組，從保險公司贖回已退保的保單收益直到 6 月才發生。促成了上半年大腸桿菌收入的成長。由於本季商業背靠背互換交易活動增加，SWAT 費用收入成長了 150%，達到 847,000。

We also recorded a net gain on investment securities of 703,000, primarily related to the modest restructuring we completed in September. We expect non-interest income excluding gains or losses on investment securities, impairment of investment tax credits, and other categories that are difficult to predict, such as limited partnership income to exceed our original guidance of up to $42 million for the year. Noninterest expense was $35.9 million in the third quarter compared to $35.7 million in the length quarter.

我們也錄得投資證券淨收益 703,000，主要與我們在 9 月完成的小規模重組有關。我們預計，不包括投資證券收益或損失、投資稅收抵免減損以及其他難以預測的類別（如有限合夥企業收入）的非利息收入將超過我們最初設定的全年最高 4,200 萬美元的預期。第三季非利息支出為 3,590 萬美元，而第一季為 3,570 萬美元。

This remains somewhat elevated largely due to higher claims activity in our self-funded medical plan that resulted in a $452,000 increase in salaries and benefits expenses. While we do have stop loss insurance, given the level of claim activity that we've experienced to date, we expect this expense category to remain somewhat elevated in the 4th quarter. As a result, we now expect 4 year expenses to come in closer to $141 million approximately 1% higher than our original guide of $140 million. Professional services expenses of $1.7 million were up 237,000 from the second quarter. Driven in part by outsourced compliance review expense and third-party commissions on slot transactions. These increases were partially offset by lower occupancy and equipment expenses, Due to a change in facilities maintenance service vendors and timing of costs associated with an ongoing ATM conversion.

由於我們自籌資金的醫療計劃索賠活動增加，導致工資和福利支出增加了 452,000 美元，因此這一數字仍然居高不下。雖然我們有停損保險，但鑑於我們迄今為止所經歷的索賠活動水平，我們預計第四季度該支出仍將保持在較高水平。因此，我們現在預計未來 4 年的支出將接近 1.41 億美元，比我們最初預估的 1.4 億美元高出約 1%。專業服務費用為 170 萬美元，比第二季增加了 23.7 萬美元。部分原因是外包合規審查費用和老虎機交易的第三方佣金。由於設施維護服務供應商的變更以及與正在進行的 ATM 轉換相關的成本時間安排，這些成長部分被較低的入住率和設備費用所抵消。

As well as lower FDIC assessments.

以及更低的聯邦存款保險公司（FDIC）評估值。

The ATM conversion project is substantially complete, resulting in an upgraded customer experience, and the associated expense is now substantially reflected in our run rate. The strength of our balance sheet and growth of our relationship-based business lines supported a robust revenue expansion that has more than surpassed expense growth during the year. The year-to-date efficiency ratio of about 58% puts us solidly below the 60% threshold we were targeting this year. We remain intently focused on expense management as we finish 2025 and move into 2026 in order to maintain positive operating leverage and a favourable efficiency ratio. Considering the strength of earnings for the 1st 9 months of the year, we're narrowing the range for our expected effective tax rate to between 18% to 19% for 2025, including the impact of the amortization of tax credit investments placed in service in recent years. We've been keenly focused on our capital stack as evidenced by the refreshment of our share purchase plan during the quarter. We are also carefully considering our options relative to the outstanding sub debt, given the repricing of both tranches that occurred in 2025. We're comfortable with our capital position, especially given the improvement in both our TCE and regulatory ratios in the 3rd quarter. TCE improved 8.74%. In common equity tier one increased to 11.15%. Given organic increases in common equity through strong earnings coupled with active management of our balance sheet and risk weighted assets.

ATM 改造專案已基本完成，客戶體驗已提升，相關費用現已基本反映在我們的營運成本中。我們穩健的資產負債表和以客戶關係為基礎的業務線的成長，支撐了強勁的收入成長，年內收入成長超過了支出成長。今年迄今的效率比率約為 58%，遠低於我們今年設定的 60% 的目標。在 2025 年即將結束、2026 年即將到來之際，我們將繼續高度重視費用管理，以維持積極的營運槓桿和良好的效率比率。考慮到今年前 9 個月的獲利強勁，我們將 2025 年的預期實際稅率範圍縮小至 18% 至 19%，其中包括近年來投入使用的稅收抵免投資攤銷的影響。我們一直非常關注我們的資本結構，本季我們對股票購買計劃進行了更新，就證明了這一點。鑑於 2025 年兩筆債務都進行了重新定價，我們也正在認真考慮與未償付的次級債務相關的各種選擇。我們對自身的資本狀況感到滿意，尤其是在第三季總資本效率和監管比率均有所改善的情況下。TCE提高了8.74%。普通股一級資本增加至 11.15%。透過強勁的獲利能力以及對資產負債表和風險加權資產的積極管理，普通股實現了有機成長。

Overall, our prudent balance sheet management, credit disciplined loan growth, and resilient non-interest income has supported strong revenue generation and positive operating leverage. I am proud of our team's execution, strength of our operating results, and the corresponding growth across tangible equity and regulatory capital ratios. That concludes my prepared remarks, and I'll now turn the call back to Marty.

總體而言，我們審慎的資產負債表管理、信貸紀律嚴明的貸款成長以及穩健的非利息收入，為強勁的收入成長和積極的經營槓桿提供了支持。我為我們團隊的執行力、強勁的經營業績以及有形權益和監管資本比率的相應增長感到自豪。我的演講稿到此結束，現在我將把電話交還給馬蒂。

Thanks, Jack. Our third quarter results demonstrate our capabilities and reinforce our excitement and optimism about the opportunities ahead.

謝謝你，傑克。我們第三季的業績展現了我們的實力，也增強了我們對未來機會的興奮和樂觀。

Profitable organic growth remains a top priority, and we believe that our year-to-date momentum will support a strong finish to 2025 and drive incremental performance in 2026.

獲利性有機成長仍然是我們的首要任務，我們相信，今年迄今的成長動能將支持我們在 2025 年取得強勁的收官，並在 2026 年推動業績成長。

I would like to thank you for your attention this morning. Operator, this concludes our prepared remarks. Please open the call for questions.

感謝各位今天上午的關注。操作員，我們準備好的發言到此結束。請開放提問環節。

Thank you, Marty.(Operator Instructions)

謝謝你，馬蒂。 （操作說明）

Damon Del Monte, KBW.

Damon Del Monte，KBW。

Hey, good morning everyone. I hope you're all doing well and thanks for taking my questions here. First question just regarding the margin and the outlook, you know Jack got the comments here in the 4th quarter kind of being down modestly. Can you just kind of give us a little perspective if you know we have a couple recuts this quarter, kind of when you would expect the margin to to bounce back in 2026? I mean, is it kind of a step down this quarter and then a catch up going into 2026 with some kind of a grind higher? How do you think about the margin?

嘿，大家早安。希望你們一切都好，感謝你們回答我的問題。第一個問題是關於利潤率和前景的，你知道，傑克在第四季度收到了一些評論，認為利潤率略有下降。鑑於本季我們有一些調整，您能否給我們一些建議，您預計利潤率會在 2026 年何時反彈？我的意思是，這季度是不是有點下滑，然後到 2026 年會奮起直追，逐步回升？你如何看待利潤率？

Yeah, We've been fairly aggressive with some of our deposit repricing. We demonstrated that in the 4th quarter of last year. We made some changes right at the end of September and with the expectation that there's going to be a cut this month in October, we're pre-planning for adjustments there. So our guided range, that we provided for full year margin, just given that there's. It's late in the year, would have a rate cut would have a modest impact to the full year guide we'd still hold on that guidance potentially at the bottom of the range, but I would expect that going into 2026 we are jumping off point would probably be somewhere around 360.

是的，我們在部分存款產品重新定價方面採取了相當積極的措施。我們在去年第四季已經證明了這一點。我們在九月底做出了一些改變，預計十月會有裁員，所以我們正在提前計劃進行調整。因此，我們提供的全年利潤指導範圍，只是考慮到了這一點。現在已經是年底了，降息對全年業績指引的影響可能不大，我們仍然會維持目前的指引，可能會維持在區間的下限。但我預計，到 2026 年，我們的起點可能會在 360 左右。

Got it. Okay. And then from there you think you can kind of grind higher as you know you continue to benefit from new loan production and repricing of other fixed rate loans and continued managing on the the cost of funds side.

知道了。好的。然後，你會覺得你可以繼續向上攀升，因為你知道你可以繼續從新的貸款發放和其他固定利率貸款的重新定價中受益，並且繼續在資金成本方面進行管理。

That's correct.

沒錯。

Okay, great, and then the second question here on on the buyback, kind of, good to see capital levels growing, valuation still remains right around tangible book value, what are your thoughts on on getting a little bit more active in the buyback and supporting the shares a little bit?

好的，太好了。那麼第二個問題是關於股票回購的。很高興看到資本水準正在成長，估值仍然接近有形帳面價值，您認為是否應該更積極地進行股票回購，以支撐股價？

We're pleased that our Board approved the buyback. It's another option that we have to support the shares and invest in ourselves, and we look forward to updating the market payment when activity occurs.

我們很高興董事會批准了此次回購計畫。這是我們支持股票並進行自我投資的另一種選擇，我們期待在市場活動發生時更新市場支付。

Okay great and if I could just sneak one more in on on the loan growth, it sounds like you you seem a little bit more optimistic today than you did maybe a quarter or two quarters ago, how do you look at, Maybe coming out of 2025 and into 2026, do you think you can kind of get back to that mid single-digit rate of net growth?

好的，太好了。關於貸款成長，我還能再補充一點嗎？聽起來您今天似乎比一兩個季度前更樂觀了。您如何看待2025年到2026年這段時間，您認為淨成長率能夠恢復到個位數的中等水準嗎？

Yeah this is Jack. I can take that one. So we're in the stages of building up our financial plan for 2026. Certainly our experience we've had lately, and at the tail end of 2025 has been encouraging. I think high, or mid single-digit growth as you conveyed is appropriate for modelling purposes.

對，這是傑克。我可以接受這個。所以，我們正在製定2026年的財務計畫。當然，我們最近以及 2025 年底的經驗令人鼓舞。我認為正如您所說，個位數的高成長率或中等個位數成長率對於建模來說是合適的。

Okay great alright that's all that I have for now. I'll step back thank you.

好的，太好了，這就是我目前要說的全部。謝謝，我這就退後。

We currently have no further questions, so I'd like to hand the call back to Marty for any final and closing remarks.

目前我們沒有其他問題了，所以我想把電話交還給馬蒂，讓他做最後的總結發言。

Thanks to everyone who called in this morning. We look forward to continuing the conversation next quarter. Have a wonderful weekend.

感謝今天早上所有來電的朋友。我們期待下個季度繼續進行對話。祝你周末愉快。

This concludes today's call, Thank you all for joining. You may now disconnect your lines.

今天的電話會議到此結束，感謝各位的參與。現在您可以斷開線路了。