Q: What's causing non-accrual loans to remain on the balance sheet longer, and would you consider selling them? A: Kris Gagnon, Senior EVP & Chief Credit Officer, stated they are exploring all opportunities to reduce the non-accrual portfolio, including working with borrowers and considering market sales. However, they believe they can achieve better outcomes by working them out internally.

Q: How confident are you in the revised projections, and are we likely to see similar variability in the future? A: Craig Gifford expressed increased confidence in the projections due to improved visibility into the portfolio and financial performance. They have taken significant actions to improve expense profiles and continue to identify efficiency opportunities.

Q: What inning are you in with building out the C&I platform, and how far are you with revamping risk control functions? A: Joseph Otting, President & CEO, mentioned they are rounding first base with the C&I platform, planning to increase hires significantly. In risk management, they have made substantial progress, adding experienced personnel and building out risk governance infrastructure.

Q: What is the target for normalized borrowings, and how will they come down from here? A: Craig Gifford noted that they will match loan growth with deposit growth and use excess liquidity to reduce broker deposit funding in 2025. They expect to repay some wholesale borrowings but not materially in the near term.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.