Greetings. Welcome to Colin Frost Bankers Incorporated, fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to A.B. Mendez, Senior Vice President and Director of Investor Relations. Thank you. You may begin.

Thanks, Jerry. This afternoon's conference call will be led by Phil Green, Chairman and CEO, and Dan Geddes, Group Executive Vice President and CFO. Before I turn the call over to Phil and Dan, I need to take a moment to address the safe harbor provisions. Some of the remarks made today will constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 as amended. We intend such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 as amended. Please see the last page of text in this morning's earnings release for additional information about the risk factors associated with these forward-looking statements. If needed, a copy of the release is available on our website or by calling the Investor Relations Department at 210-220-5234. At this time, I'll turn the call over to Phil.

Thank you, A.B. We'll review fourth quarter and full-year 2025 results for Cullen Frost, and our CFO, Dan Geddes, will provide additional commentary and guidance before we take your questions. In the fourth quarter, Cullen Frost earned $164.6 million, dollars, an increase of eleven point four million dollars or seven point four percent compared to the same period last year. Per share earnings for the fourth quarter of 2025 were two dollars and fifty six cents, an increase of eight and a half percent from the previous year. For the full year 2025, the company's net income available to common shareholders was six hundred and forty $41.9 million and 11.5% increase over last year. On a per share basis, 2025 full year earnings were $9.92 a share compared with $8.87 a share for 2024. Our return on average assets and average common equity in the fourth quarter were 1.22% and and 14.8 percent respectively, and those compare with a 1.19 percent and 15.58 percent respectively in the fourth quarter of last year. Average deposits in the fourth quarter were 43.3 billion, an increase of 3.5 percent year over year. Average loans grew to 21.7 billion in the fourth quarter, an increase. The organic expansion strategy continues to generate positive results. As a quarter in, expansion deposits exceeded $3 billion, while at the same time, expansion loans stood at $2.37 billion. In total, the expansion has added more than 78,000 new households. All this represents about 11% of company loans and 7% of company deposits. Dan will give insights into the overall accretion of the expansion effort in his comments, but I will say it continues to improve. Looking at our consumer business, we continue to see strong results driven by a consistent focus on an excellent customer experience across all of our channels. Our consumer bank is designed to make customers' lives better, and it marked its fifth consecutive year of what we believe is industry-leading checking household growth with a 5.8% growth rate for 2025. Our mortgage lending platform is two years old now, and we set a goal by year-end 2025 to hit $500 million in loans outstanding. Well, I'm happy to announce that we blew past that goal by the end of 2025, ending the year at $595 million, and we continue to see strong momentum in mortgages, delivering our best quarter to date with an increase of $173 million in outstanding loans during the fourth quarter. Credit quality in this portfolio is outstanding with an average credit score of 775 for approvals. Our average loan size is just under one-half million dollars at $495,000 and I should note that 40 percent of our mortgage borrowers are new customers. Commercial business continued to perform well and our people are working hard. For example, we closed out 2025 with the highest number of calls ever and an increase of 8 percent over the previous year. It was also a record year for new relationships, which at 4,091 were also up 8% from 2024. Here again, our expansion locations are making an impact, accounting for 20% of our overall new relationships. During the quarter, 41% of Houston's new relationships came from expansion, as well as 33% in Dallas and 23% in Austin. New loan commitments booked in the fourth quarter were up sharply on a linked quarter basis, increasing 22% from the third quarter, driven by increases in commercial real estate and energy. And Dan will talk more about our outlook growth for 2026 overall loan growth in his comments. The fee remains good by historical standards with net charge-offs and non-performing assets both at healthy levels. Non-performing assets were $72 million at the end of the fourth quarter compared with $47 million last quarter and $93 million a year ago. Most of the increase in the quarter was related to one borrower, a shared national credit in the beverage distribution business that is working through a liquidation of some of its operations in various states. The year and non-performing asset figure represented 33 basis points of period in loans and 14 basis points of total assets. For the fourth quarter, we're $5.8 million compared to $6.6 million last quarter in $14 million a year ago. Annualized net charge-offs for the fourth quarter represented 11 basis points of loans, and full-year net charge-offs were 16 basis points of average loans. Total problem loans, which we define as risk grade 10 by EM, total $857 million at the end of the fourth quarter, was up slightly from $828 million last quarter and down from the $943 million a year ago. 2025 was highlighted by the successful resolution of several challenged multifamily commercial real estate loans as we communicated during prior quarterly calls, and we anticipate this progress to continue into the first half of 2026. In addition to our consumer and commercial success, we're also working hard, expanding our wealth management business. We believe this is a business that makes people's lives better, and in that regard, we've implemented a new organization structure, we've dedicated some of our best talent organizationally, and we're implementing the steps to move this business to a more effective, all this with the goal to position Frost Wealth Management for long-term organic growth and to strengthen our ability to compete and serve clients better. In a similar vein, we've also been working to create better alignment between our commercial banking and insurance brokerage businesses, which primarily focus on the commercial segment. All of us at Frost continue to be optimistic about our growth strategy. We've got the best bankers in the business working in the nation's best banking markets, and our teams work hard to build relationships in our existing locations and identify new locations to grow into. Our focus on building long-term relationships and our commitment to world-class service means we're well-positioned to grow and prosper. With that, I'll turn it over to Dan.

Thank you, Phil. Let me start off by giving some additional color on our expansion efforts of EPS accretion compared to $0.09 in the third quarter. The EPS contribution for the quarter was driven by Houston 1.0, generating $0.15 per share, with Houston 2.0 and Dallas region costing. We continue to be pleased with the volumes we've been able to achieve. On a year-over-year basis, the expansion represented 42% of total loan growth. And as we have said in the past, our one in the Dallas region opened additional 12 to 15 branches in 2026. Now moving to the fourth quarter financial performance for the company. Regarding our net interest margin, our net interest margin percentage on three basis points from the 3.69% reported last year. Higher interest-bearing deposits during the quarter, which positively impacts net interest income, had a negative impact on net interest margin due to a lower relative spread. Looking at our investment portfolio, averaged $19.9 billion during the fourth quarter, down $284 million from the previous quarter. Investment purchases during the quarter totaled $103 million of municipal securities with a taxable equivalent yield of 5.56%. We had $425 million of Treasury maturities at an average yield of 3% of municipal's roll-off at an average tax-equivalent yield of 4.88% and $643 million of agency MBS paydowns. The net unrealized loss on available-for-sale portfolio at the end of the quarter was $1.04 billion compared to $1.14 billion reported at the end of the third quarter. The taxable equivalent yield on the total investment portfolio during the quarter was 3.82 percent, down three basis points from the previous quarter. The taxable portfolio averaged $12.7 billion, down approximately $558 million from the prior quarter, and had a yield of $3 billion during the fourth quarter, up $275 million from the third quarter, and had a taxable equivalent yield of 4.6 percent of our municipal portfolio, was pre-refunded or PSF insured. The duration of the investment portfolio at the end of the fourth quarter was 5.3 years, down from 5.4 years at the end of the third quarter. Looking at our funding sources, on a linked quarter basis, average total deposits of $43.3 billion were up $1.27 billion from the previous quarter. The linked quarter increase was balanced with each of non-interest-bearing and interest-bearing deposits up about 3%. The cost of interest-bearing deposits in the fourth quarter was 1.75%, down 19 basis points from 1.94% in the third quarter. Customer repos for the fourth quarter averaged $4.6 billion, flat with the third quarter, and the cost of 2.87% down 30 basis points from the third quarter. Looking at non-interest income and expense, I'll point out a couple of items impacting the link quarter results. Regarding non-interest income, as received, our normal annual visa bonus during the fourth quarter, totaling $5.4 million in wages, included approximately $7.2 million in higher stock compensation compared to the 3rd October of each year, and some awards, by their nature, require immediate expense recognition. There are a few one-time items I would like to point out. This was impacted by a reversal of $8.5 million of special FDIC insurance assessments. This was a result of recent FDIC guidance on anticipated future collections related to the bank failures in 2023. This was offset somewhat by a one-time salary expense of $0.2 million during the quarter, related to transitioning our payroll from twice per month to every other week related to our data platform as we continue the journey of modernizing key aspects of our core platforms. In addition, we had elevated link quarter expense variances for donations related to the Frost Charitable Foundation of $3.5 million and increased funding of medical reserves of $1.9 million due to higher claims. Regarding our guidance for full year 2026, it includes three 25 basis in April, July, and October. We expect net interest income growth for the full year to fall in the range of 3% to 5%. interest margin, we expect an improvement of about 5 to 10 basis points compared to our full year 2025 net interest margin of 3.66%. Looking at loans and deposits, we expect full year average loan growth to be in the range of 5 to 7% and expect full year average deposits to be up between 2 and 3%. Based on current projections, we expect non-interest income growth of 4 to 5% and expect non-interest expense growth to be in the 5% to 6% range. Regarding net charge-offs, we expect full year 2026 to be in a range of 20 to 25 basis points of average loans. And our effective tax rate expectation for full year 2026 is to be in the range of 15% to 16%. I want to mention that during the fourth quarter, we utilized the remaining $80.7 million of our $150 million approved share repurchase plan to buy back approximately 654,000 shares additionally yesterday our board approved a new one-year 300 million dollar share repurchase program and with that I'll turn the call back over to Phil for

questions thank you Dan okay we'll open it up for questions thank you if you

would like to ask a question please press star 1 on your telephone keypad a confirmation tone will indicate your line is in the question queue you may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions. Our first question is from Jared Shaw with

Barclays. Please proceed. Thanks for the questions. I guess maybe starting off with credit. Thanks for the color on that one loan that you highlighted. Was Was there any component of that in charge-offs? And then, you know, was there any color you could give us on the risk-rated 10 loan migrations? You said that the multifamily was improving in the backdrop. I guess what was driving the rest of that deterioration?

Yeah, you know, first of all, no, there was no charge-off on the shared national credit. We did add a reserve of $10 million on it, as I recall, so there's something set aside for it. And that's just, you know, that's really not based on anything definitive. I mean, it's pretty early on in what they're trying to, it's a long-time relationship, you know, just an unfortunate situation. But as far as migration to tens, multifamily, you know, continues this, where these loans get stabilized after 12 months. And then we will tend, through that process, to move these into risk grade 10s. And then what they've been doing is they've been selling or refinancing with private. For example, last year I think we had, I think it was $428 million of these multifamily deals, which were paid off, and $84 million were risk grade 10 and 11. And we're expecting that same trend to continue. Some of those ones that were moved into the risk grade 10s, et cetera, we'll expect to offer refi, I think. My notes here show that we have $255 million in multifamily that we're anticipating.

Jared, we had about 200.

Thanks. And then maybe following up on the margin discussion and outlook with some of the benefits you're looking for in 26, what do you think your deposit beta is going to be with those three cuts? Do you think that we see that move higher as we go through the year or stay, at least where it is?

I think it's stay where it is, is what we're kind of anticipating. It's around that 43% of interest-bearing costs, and, you know, the only other thing I would mention is, you know, competition. We look at rates every week, and we also recognize there's decisions that need to be made out in the field as well to retain or grow a new relationship.

Great. Thanks very much.

Our next question is from Abraham Puala from Bank of America.

please proceed I guess just a question in terms of the guidance on loan and deposit growth as we think means it feels like the macro outlook should be somewhat better 26 versus 25 I would also think that the branches are becoming more productive so when we look at that shouldn't growth on both ends deposits and loans be strengthening and getting better versus what we've seen in 2025? So maybe just give us a sense of like what's underpinning, what assumptions are driving that, and maybe it looks that the guidance is conservative, but is that not the right way to think about it?

Well, I'll kind of address them both. So here on the loans, you know, we've mentioned kind of these resolutions to multifamily loans, And so we'll continue to see that, I would say primarily in the first half is what we're Now some of those resolutions may go into the third quarter of 26, but at least it's early, but what we would anticipate is accelerated payoffs in the first half of the year, but stronger loan growth in the second half of the year. So not knowing the timing of the payoffs, that's where some of that guidance is coming from, but we know we're likely going to see an elevated level of payoffs in the first half of the year relative to the second half of 26. On deposits, I would just say that it's a competitive environment, and depending on how many rate cuts we get, there's still options out there off-balance sheet, and then banks are just, you know, very competitive on some of their time accounts that, you know, the yield play is still out there. And so that's kind of the, of that guidance on loan. Got it, Dan. Thank you. And I guess

if you think about the expense growth outlook, I think you mentioned 4% to 5% or 5% to 6%. Is that, is there a certain cadence? Like does the expense growth slow down as we move through the year and what's the outlook in terms of new branch openings for the year and is that something that we should view as steady state even looking beyond 2026 of the run rate with which you may look to open branches or make the investments uh still talk about the wealth management uh on the

wealth management side yeah so on on the branch expansion yeah 12 to 15 is what we're uh we're projecting. I think that's a good run rate for the foreseeable future. You know, some, this year we opened 10, next year we, or 2026 it might be 15, but in that, in that range I think is, is reasonable to project, you know, in the, in the coming years, and I think that's a good run rate for us in terms of staffing and, and executing, and then in just in terms of, of expense growth throughout the year. I mean, you're going to have, you know, just certain things like I mentioned with stock incentive plans that you might see in October and November and kind of that fourth quarter that would cause some elevated expenses in the fourth quarter. But other than just the, I would say, just, you know, the linked quarter changes that we've mentioned that it's going to be pretty much steady. There's nothing that I see that's going to be too much heavy in the first half

or second half of the year. Thank you. Our next question is from Catherine Miller with KBW. Please proceed. Thanks. I had one follow-up just on the

growth question. It seems like the 5-7 loan growth and the 2-3 deposit growth is conservative have just given the paydowns that we've got early in the year. And so is it fair to think about as we get past those paydowns and we get in the second half of the year and then kind of looking out to 27, that that kind of rate of growth for our revenue and kind of balance sheet and revenue will start to accelerate relative to the expense growth that we've had. We haven't seen 5% to 6% expense growth from you in a while, so it feels like that's moderating, and maybe we're getting some lift in the back half of the year from the revenue. So just kind of thinking about timing or inflection in operating leverage and how we should think about that in the second half of the year. Thanks.

On a couple of things that, you know, when we look at it, our payoffs have been replaced by commitments, especially in the commercial real estate realm, but they generally take a while to fund up. For instance, when I look at kind of link quarter construction line usage, it was down almost 5%, which equates to about $200 million in fundings for the quarter. You would see over time just more usage as construction projects get further along. We've had this period of time where you've had these primarily multifamily projects, but it could be other commercial real estate projects that may have been on the books maybe longer than we anticipated that now are being paid off and it gives us a chance to replace them, but the timing of those outstandings is likely going to be more in the back half of the year and then to 27, so that's I think the opportunity. Our consumer loan growth, we've mentioned how well mortgage is done. I think we still expect high teens growth consumer real estate in 26, so that's another, you know, positive trend. So I think that's on the loan front. You know, we think there's a there that they're dealing with, and it may be an opportunity for us to jump in. And if

you look at some of the hard to take advantage of it, and we'll piggyback on that, you know, we were

looking at the banks that I'm going into January is we're picking up roughly twice as many new relationships from each early, starting to see some opportunities there. And then the other thing I just would mention is, you know, Phil mentioned a lot of the things that occurred for the bank and, you know, new commitment pipeline in the third quarter. So you got to see the execution of that pipeline in the new commitments in the fourth quarter. At the same time, feel good about just, and to get some fundings from these commitments, likely more. Great. Okay. That's

all really helpful. And then maybe just one follow-up on the branch EPS impact that's moved from $0.09 to $0.12. Any range you can give us and where you hope that is exiting the year in 26?

Yeah, so I think you'll see, you know, depending on rate cuts, that you'll see quarterly what we may come out and report may bounce around kind of where we are in this $0.12, maybe a little more, a little less. And so I'm going to just kind of say for the full year, you know, you're going to look for a range of between, you know, $0.35 and $0.45.

Great. Very helpful.

You're welcome.

Our next question is from Casey Herr with Autonomous Research. Please proceed.

Yeah, thanks. Good morning, everyone, or good afternoon. So I wanted to touch on the fee guide. It seems, you know, if I annualize this fourth quarter here, I know you guys got some strong results in the capital market side of things, some of the derivatives, but it just seems a little conservative because it annualizes to about what you're guiding to, and obviously things are growing. So just wondering, anything we're missing that is a headwind going forward?

You know, we did have some one, you know, we had a sale of some real estate where we took a gain on. And so there's just some, the other income, like you mentioned, the derivatives, FX, had a really strong year, and capital markets as well. And the other one I'd mention is just with rates going down, one of the components is money market fund and annuity income from our trust business. And, you know, we have that not growing for next year and not certainly growing at 4% or 5%. And so those are the drags on other income.

Okay, fair enough. And then just on the capital front, so another strong quarter on the buyback, that's two quarters around, I think, you know, where you've been pretty more aggressive than you have been in the past. Is that, you know, can we expect that to continue? You know, is there a little bit more urgency to keep capital ratios from building from what's pretty strong levels?

And, you know, as you mentioned, our capital ratios are at strong levels and, you know, we are generating capital through earnings. And so, you know, we want to, you know, prioritize growth, prioritize growing and protecting our dividend. But we feel like this is another tool that we can use, you know, to just, if the opportunity presents itself in the market, You know, we felt like the purchases we made in 2025 made a lot of sense and, you know, I would say that we'll probably be more consistent in the buyback in 2026 as the plan. That could always change, but I would sense that we would be more active than we have in past years, and it may look similar to this year, or, you know, it could vary either high-low, but I think you'll just see us be more consistent. Okay, very good. Just last one for me on the

expenses. So, it sounds like these 12 to 15 branches are going to, you know, per year is what you guys are thinking about. Is there any more, you know, investment spend that is embedded within this year's expense guide, just trying to get a sense of, like, you know, this 5% to 6% expense growth, you know, is this something we should expect? Is this now the base, or is there some more relief coming in the future as these investments wear off?

You know, for opportunity in the AI space, you know, we will see opportunities for that in coming years. but short of, you know, and you would hope those investments would, one, you know, enhance the customer experience, but two, provide, basically would pay for themselves over time so they'd be good investments, long-term investments. But, you know, outside of that, you know, really the only item that we kind of have growing higher than the 5% to 6% is in technology, which makes a lot of sense, so we'll continue to invest in technology. But other than that, we are at a pretty good run rate in terms of the expansion and just in terms of we have the people in place in technology and cybersecurity. And so it's really more about executing on.

You know, that's having that, trying to figure that out. I think everyone wants to know we have to spend.

Great. Thank you.

Our next question is from Peter Winter with DA Davison. Please proceed.

Good afternoon. If I could drill down a little bit further into the fee income and look specifically at deposit service charges, which is your second biggest fee income business, that's been up almost 14% the past two years in a row. Is it as simple as record new account growth that's driving that, or is there anything else? And, you know, if you continue to show record new account growth, should we expect a similar type of rate of growth?

I think it's a good observation. As we talk about this, you've nailed it. We're growing accounts. In fact, a lot of the things that, you know, you typically charge for associated with an account, well, one of them would be overdraft fees. But we have been reducing the cost for overdrafts. We've been giving you three-year overdrafts. We've not charged for overdrafts for $100. So we've been doing lots of stuff that would otherwise reduce that line item. But we see it grow. And you've seen it grow for two reasons. One, customers like to utilize it. We are not, but some do. You've got to opt into the product. We seem to do everything we can to slow it down. But it's the first thing. We have our retail line of business meeting. They're almost apologizing for the growth in some of those line items. But when you get back, grow your business, products people want.

The commercial service charge income, as much as they're having to either market on our commercial service charges and would be the other side of that.

If I could follow up on, I heard your comments on the opportunities that's being created with the disruption with new entrants. But if I ask it differently, with new entrants coming in, the thinking is that they'll use pricing. as a way to win business and be more competitive both on the loan side and deposit side. And, for example, Fifth Third is going to be opening up 50 new branches in Texas for the next three years. So is there some risk with the new entrants coming in that it could create a little bit of a headwind because they're getting competitive to win business?

Yeah. I've seen it with the first rodeo on this. one thing that everyone can use. And it's also true that we do not intend to lose business and lose our customers, you know, no matter who they are. And it's also true, I believe, that we are a low-cost producer as relates to funding costs. And so we're able to, you know, to enter the markets that we want to very effectively against, and will win against literally anybody on service. And so I feel we're pretty well positioned. Could there be some headwinds? Sure, you know. But I'm of our ability to... Thanks, Phil.

Thanks, Dan. Our next question is from David Chirini. Would Jeffries please proceed?

Hi. Thanks for taking the question. So I wanted to ask about your loan pipelines and new commitments. You mentioned about new commitments being up meaningfully, although pipelines down linked quarter. Can you just talk about areas of strength and perhaps areas of weakness in the pipelines and new commitments?

Yeah, sure. So I'm looking at just how our pipeline compares to year over year, and it's up 16% this time last year. You know, that's going to be driven, you know, primarily, you know, we're seeing, you know, good opportunities in commercial real estate right now. It's, you know, pretty, you know, about 60% customer, 40% prospect, which is a good balance. It's not overweighted one way or the other. And, you know, you would like, we tend to win just about almost all of our customer opportunities out there. So then, to me, it's just a matter of time before those would get closed out. And so those are kind of the two areas I would say that we're seeing, you know, the most opportunities right now. And, you know, I think it's spread out when I look at where those opportunities are coming from, from our regions. You know, it's, you know, a lot of our expansion regions are doing well. You know, it's roughly 25% of our new opportunity and pipeline is in the Houston area and roughly half are from Houston, Dallas, and Austin. So I think half of that, you know, pipeline, weighted pipeline, is from our expansion regions.

Great. Thanks for that. And, Phil, since you mentioned it about M&A and how familiar you are with it, can you provide updated thoughts on your viewpoint on M&A and your CET1? and very well above peers here at 14%. So any comments there would be helpful.

Our position is the same as it's been. We're not interested in M&A. As you say, we have done it a fair amount in the past, and so we know how to do it, but we also know what's good about it and what's not as good when you're talking about an organic alternative. And because we've made the investments in our business which have allowed us to hold relationships at a level than anybody, we're leaning into that. One example that I use that's kind of anecdotal, but it's easy to understand, I look at some of these acquisitions that have been made just recently, and they're paying, and I'm sure they have good reason for it, but it's just a comparison. Listen, but in an acquisition, you're seeing pay $220 million for billion dollars of assets. Well, we've looked at what a billion dollars we got to be $90 million. Awesome, but five locations we could. And so, you know, that's what I want to do. I'm trying to keep it more fun and come to work for you and then have customers choose you and come in. and then treat them, you know, not dislocate them by changing their account numbers and making their lives better.

Thank you.

Our next question is from Ben Jerzlinger with Citi. Please proceed.

Good afternoon. Hey, Ben. Most of my questions have been asked and answered, and I really appreciate the color on all the outside entrance and pricing and things like that. I did get a couple emails from some investors. I wanted to clarify that the guidance is GAAP or is it CORE?

GAAP. Guidance is the guidance in GAAP or CORE? Yeah, it would be GAAP.

And if you think about 1Q, well, sorry, you do talk about how there's a few non-reoccurring items in 1Q, and then typically there's taxes and things like that. Excuse me, 4Q, going into 1Q, then you have taxes. Is there any color that you should see in terms of 1Q or is it just kind of a restart lower on a gap basis and then kind of march higher throughout the year?

It would be the same thing kind of on a gap basis. And then, you know, just one of the things that jumps out in the first quarter would be primarily on the income side for insurance. That's just typically a higher quarter for insurance for renewals. So that might be the only one of the things that would jump out. But it's the same seasonality we've reported in the past.

Gotcha. Thank you, guys.

Our next question is from John Arfstrom with RBC Capital Markets. Please proceed.

Hey, thanks. Good afternoon.

Good afternoon.

I asked this question a couple of quarters ago. Dan, so same question. Margin or net interest income outlook without the three rate cuts, I'm assuming that's good for you, and if so, how much?

Yeah, so it's $2 million a month to net interest income. So we have our three cuts in there, and so if we don't get the April cut, you're looking at $16 million additional in net interest income, and I think that's around two to three basis point improvement, all things being equal, and all things will likely never be equal, but just if that helps, and then just depending on the timing of the cuts and whether we get them, that would be, again, just the impact of one cut to our NII.

And then just, you guys touched on credit earlier, but any thoughts on how you want us to approach the provision and the reserve outlook from here?

You know, one of the things that, you know, you may see, I mean, we're early in the year, you know, is just, you know, where does it end up in terms of, you know, is it going to stay where it ended at a 129? You know, I think, you know, you could see that. If we don't, if we are able to resolve a lot of these multifamily, you could see that tick down a couple basis points. Again, that's looking at the lens of today and with really strong credit metrics. That might be the thing I would just mention to you. You could see that trend down a little bit if we continue to see positive. Thanks a lot, Kay.

We have reached the end of our question and answer session. I would like to turn the floor back over to Phil for closing comments.

Okay, everyone. Thanks for being on our call today and for your interest in the company. We're adjourned.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.