April 30th, 2026

Overall the call conveyed constructive progress on integration, capital strength, improved funding costs, and a clear multi-year earnings thesis (2027 ROTCE/ROAA targets and dividend policy), while acknowledging near-term headwinds including geopolitical provisioning, higher-than-expected CD runoff, auto loan runoff drag, and a temporarily weaker fee base. Management emphasized conservative risk management, completed core conversion, expected cost synergies and shareholder returns, and predicted NIM expansion starting in early 2027.

Company Guidance

The company reiterated multi-year targets and near‑term pacing: for 2027 it now forecasts GAAP net income of $275–$300M, ROTCE of 17%–18%, ROAA of 1.3%–1.4%, a NIM running roughly 3.7%–3.8% (Q1 NIM was 3.61% and management expects a relatively flat NIM the next 2–3 quarters before expansion in early 2027), and an efficiency ratio of ~50%; balance‑sheet and capital guidance included a 70% loan‑to‑deposit ratio target for 2027, CET1 of 13.9% (current), Tier‑1 leverage of 8.7%, allowance to loans of 1.13% (ACL up 5 bps in Q1) and an allowance 2.95x NPAs; near‑term funding and capital actions include a $1.4B cumulative CD runoff (stabilizing at a ~$2B CD run‑rate with ~$150M more CD runoff expected in Q2), spot cost of deposits 1.21% (Q1 cost 1.28%), expected sale of the DUS business (~$130M) and ~ $165M pro‑forma excess capital to be returned via a special dividend of ~ $0.70/share in Q2 (subject to approvals) after a $0.40/share Q1 dividend, guidance to reach ~$430M annualized noninterest expense (ex‑CDI) by Q4 2026 (from ~ $474M run‑rate), an expected 2026 effective tax rate of ~26.5%, and a longer‑term dividend payout target of ~80% of net income; management also noted Q1 core net income of $53.8M (core ROAA 1%, core ROTCE 13%).