The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: David Feaster - Raymond James - Analyst
: Hey, good morning everybody.
Question: David Feaster - Raymond James - Analyst
: I wanted to start on the deposit side. We've talked in the past about these transitory deposits that you've been expecting to move out. I'm curious
where we are in that. I mean, deposit balances have held up much better than we expected.
Obviously currently was a tailwind, but again, the deposit balances have been much stronger than we had expected. Just kind of curious where
we are in those transitory deposits and where you're having success driving core deposit growth. Obviously the Channel Islands has been pretty
strong, but just kind of curious what you're seeing on that front?
Question: David Feaster - Raymond James - Analyst
: Okay. So some of these deposits you wouldn't expect much in the way of, maybe we see the balance sheet actually shrink from where or kind of
remain relatively steady, quarter over quarter. I'm just kind of curious, how do you think about that with those deposits flowing out?
Question: David Feaster - Raymond James - Analyst
: Okay. Okay,. That's great. And then you touched on credit a bit. We have seen some credit migration. I'm just kind of curious what you're hearing
and seeing from your mortgage borrowers and the health of the -- the housing market in your jurisdictions and the strategy for workout for these
borrowers. I know you've done a decent amount moving to fixed rate, but does down rates kind of solve this issue for a lot of these folks? And this
is kind of the worst it's going to get. Will 50 basis points to 100 basis points cuts start giving some of these guys reprieve and improve the credit
quality for them and cash flow?
Question: David Feaster - Raymond James - Analyst
: That's great.
Question: David Feaster - Raymond James - Analyst
: That's great. And then maybe just last one, I wanted to touch on -- pretty solid quarter in the trust business with AUM and AUC pretty solid. Kind
of curious what you're seeing there, where you have in success and just kind of how you think about the trust line as we look forward?
Question: David Feaster - Raymond James - Analyst
: Okay, great. Thanks everybody.
Question: William Nance - Goldman Sachs - Analyst
: Hey guys. I appreciate taking the questions. Just had a question on kind of deposit cost and margin dynamics. It seems like getting pretty close to
a peak here and deposit costs were relatively stable sequentially. So just how are you kind of thinking about the flow through of sort of whatever
is left of back book term deposit repricing versus pricing actions you guys expect take over the next couple of quarters? And just how do you think
about the trajectory of overall deposit costs from here? Thanks.
Question: William Nance - Goldman Sachs - Analyst
: Got it. That all makes sense. And just a question on capital allocation. The TCE ratio is continuing to kind of tick up over time. You mentioned the
burn down of AOCI, which should be a help there, too. So just what -- how are you guys kind of thinking about the potential to get more aggressive
on capital return?
And just maybe if you could touch on the M&A environment right now. Are you thinking it's appropriate to keep more dry powder in the near
term? Or would you look to get kind of more aggressive in deploying the capital base? Thanks. Appreciate you taking the question today.
Question: William Nance - Goldman Sachs - Analyst
: Got it. Very helpful. Appreciate your time and questions today.
Question: Tim Switzer - Keefe, Bruyette & Woods - Analyst
: Hey, good morning. Thank you guys for taking my question. (inaudible) I have a quick follow-up on kind of your last comments on potential
acquisitions. Are there any jurisdictions that you have your eye on places you'd like to expand into? And are there any of your current jurisdictions
where you see a lot of room for you to grow and maybe would want to expand your assets there through an acquisition?
Question: Tim Switzer - Keefe, Bruyette & Woods - Analyst
: Okay. Great. That makes sense. And for your expense outlook, it sounds like you're projecting expenses to be pretty similar in Q4 or in Q3. But
what's sort of the outlook for 2025? And what are sort of the investment needs and areas you'd like to invest after you had a good amount of
investment in the first half of this year?
Question: Tim Switzer - Keefe, Bruyette & Woods - Analyst
: Okay. Got it. That was great color. Thank you.
| 
