Operator: I would now like to turn the call over to your host for today, Mr. David Burg. Chief financial officer. Sir, please go ahead.
David Burg: Thank you very much, and good afternoon, everyone. Thank you for joining our second quarter 26 earnings call. Our earnings release and earnings release supplement, which we will refer to on today's call, can be found in the Investor Relations section of our company website. With me on this call is Rodger Levenson, chairman, president, and CEO. Prior to reviewing our financial results, I would like to read our safe harbor statement. Our discussion today will include information about our management's view over future expectations, plans, prospects. That constitutes forward looking statements. Actual results may differ materially from historical results or those indicated by these forward looking statements due to risks and uncertainties, including, but not limited to, the risk factors in our annual report on Form 10-K, And our most recent quarterly reports on Form 10-Q. as well as other documents we may periodically file with the Securities and Exchange Commission. All comments made during today's call are subject to the safe harbor statement. I will now turn to our financial results. During the second quarter, WSFS' performance continued to demonstrate the strength of our franchise and diverse business model. Results included a core earnings per share of $1.66 core ROA of 1.55% and core return on tangible common equity of 20.2% which are all above the first quarter levels when you exclude the previously disclosed loan recovery. On a year over year basis, core net income increased 19% and core PPNR increased 10%. Resulting in core earnings per share growth of 31% and tangible book value per share growth of 13%. Core results for the quarter exclude a $1.8 million decrease to net income in $0.03 reduction to EPS. Primarily related to the write down of an equity investment as well as the previously disclosed gain from the sale of our credit card portfolio. Net interest margin expanded 4 basis points linked quarter to 3.87%, driven by a 4 basis point reduction in our client deposit costs. As well as higher investment securities and yields. Our interest bearing deposit beta remained at 46%. Core fee revenue, which represents nearly 1/3 of total revenue, grew 2% linked-quarter and 5% year-over-year. The growth across our fee businesses was led by Wealth and Trust, which grew 17% year-over-year. Within institutional services, corporate trust and global capital markets were up 28% and 58% year-over-year, respectively. As we continue to win new mandates and capture market share. For the first half of 26, WSFS was ranked as the 3rd most active ABS and MBS trustee based on deal count increasing our market share to 14% from 11.7% in 2025. Our personal trust business, The Bryn Mawr Trust Company of Delaware, also delivered strong year over year growth of 20% driven by continued new account growth. Outside of wealth, our capital markets business within the commercial division also delivered strong double digit growth both linked quarter and year over year. Cash Connect fees declined year over year due to the impact of interest rate cuts and lower volumes, but the business delivered higher profit margin of 15% for the 2nd quarter in a row. Client deposits increased 3% linked quarter driven by growth in institutional services and commercial. On a year over year basis, our client deposits were up 11%. Importantly, non interest deposits were up 10% linked-quarter and now represent 37% of total client deposits up from 31% a year ago. While we continue to see some elevated quarter end activity by clients, we are seeing strong deposit growth momentum as evidenced by increases in both end of period and average deposits, which also grew 3% linked-quarter and 8% year-over-year. Gross loans were up 1% linked-quarter or 5% annualized. In commercial, we continue to see strong momentum in C&I, grew 2% linked-quarter or 8% annualized. And in consumer, home lending generated strong growth with residential mortgage and WSFS home equity loans up 10% linked-quarter and 23% year-over-year. Turning to asset quality. We continued the recent trend of improvements across our key metric. Key metrics including leading indicators. Problem assets decreased 6% linked-quarter due to several commercial payoffs and are now down 31% year-over-year. Delinquencies are down 5% linked-quarter nearly 40% year-over-year. With accruing delinquencies of $26 million as of quarter end. Non performing assets are down 8% linked-quarter and nearly 25% year-over-year. In addition, net charge offs were $7.1 million 21 basis points of average loans for the quarter. When you exclude the impact of the prior quarter loan recovery, net charge offs decreased $5.1 million quarter-over-quarter driven by lower commercial charge offs. During the quarter, we continued to execute on our capital return framework, returning $77 million of capital, including $66 million of buybacks. Year to date, we repurchased over 4% of our outstanding shares, and returned approximately 100% of net income to shareholders. On the last page of the earnings supplement, we provided our updated 2026 outlook, which now assumes no Fed funds rate changes for the rest of the year. Our updated full year outlook reflects improvements across most metrics. Notably, we are increasing our ROA outlook for the year to 1.50% with potential upside from there, as we continue to drive high performance and growth. We also raised our deposit growth rate from mid to high single digits. While our results reflect some elevated quarter end transactional activity, we continue to see strong deposit growth momentum across institutional services and commercial. Our NIM outlook has improved to approximately 3.85% reflecting the updated rate forecast and momentum across deposits and loans. We continue to see elevated deposit competition which may impact deposit pricing going forward. We raised our outlook for fee revenue excluding Cash Connect to mid-to-high single digits as we continue to see strong momentum and future growth opportunities in our fee businesses and particularly wealth and trust where we continue to capture market share within institutional services and Bryn Mawr Trust Company of Delaware. Net charge offs are now expected to be between 15 to 25 basis points of average loans for the year, a decrease from our previous outlook which reflects the strong asset quality results we saw in the quarter and recent momentum across key leading indicators. Consistent with our first quarter update, this outlook includes the previously disclosed recovery in 1Q. Our commercial portfolio continues to perform well, but losses may be uneven. Our outlook for efficiency remains unchanged. We plan to maintain strong expense discipline and will continue to leverage opportunities to invest in the franchise. Which coupled with normal seasonality may result in some variances quarter to quarter. We are pleased with these results and remain committed to delivering high performance. And we will now open the line for questions.
Operator: We will now begin the question and answer session. You would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Russell Elliott Gunther with Stephens. Your line is open. Please go ahead.
Russell Gunther: Yes. Thank you. Good afternoon. I wanted to begin pick afternoon, guys. I wanted to begin on the revised margin guide. It looks like it implies relative stability in the back half of the year. We are getting towards the end of earnings this week, and a lot of the commentary so far is focused on margin headwinds for the industry. Tighter spreads, higher deposit costs, But when I look at your guys' liquidity profile in terms of, you know, the below peer loan to deposit ratio, lot of securities cash flow, you can get reinvested. Better than pure noninterest bearing mix that is growing. I think you guys would be better able to defend against competitive pressures that we see on the liability side. But David, how are you guys thinking about the trajectory of deposit cost from here as what is reflected in the margin guide and as we think about 2027?
David Burg: Yeah. Yeah. Happy to address that. So I think you are right. I think we have obviously had success in bringing down our deposit costs so far. We have a good liquidity profile. And in fact, we have let some of our higher cost deposits run off in the first half of the year, as you can see in some of our CD runoffs. So because of our liquidity position, we were able to do that. At the same time, I think there are 2 factors to consider. 1 is we are we have been seeing it really throughout the first half of the year. there is definitely more deposit competition out in the market. And we have seen that really build up over the last 6 months. To give you 1 example, our largest CD product was a 6-month 3% CD. And we found ourselves to be really on the low end of market pricing. And if you go out, it is very easy to get over 4% for 12 months. And so we want to make sure that we remain competitive even though we do not necessarily need the liquidity today. We obviously wanna continue to grow our clients. We wanna defend our market share. And capture more share. We wanna remain competitive. So I think we will--you know, we do have to we may need to increase in order to grow in some areas and be competitive. And so that does put some pressure on our deposit costs going out. But expect the NIM to be stable, and we expect to be able to manage that. But, you know, there could be some upward pressure on deposit costs.
Russell Gunther: Got it. Okay. Thank you for your thoughts there. And then switching gears to expenses, you know, appreciate the reiterated high fifties efficiency guide. As it relates to just kind of dollar noninterest expense you referenced, you know, seasonal dynamics. So could you level set us in terms of how Q2 may compare to, where Q3 is headed? And then within that kind of high fifties target, I mean, what does that mean to you? Is there a plus or minus to that? You guys were at, like, 59.3%, I think, last year. Is that some is that a result you might be able to outperform?
David Burg: Yeah. So in terms of expenses, this quarter, when you look at our expenses year over year were up about 4%. So I think it is a reasonable growth rate. You look at this particular quarter, you know, the majority of our quarter over quarter expense was really driven by variable and revenue driven expenses. So it is really a direct result of the outperformance on the top line. Although we did have some items, some nonrecurring items hit that we have outlined, you know, in our press release. Generally, I think our expenses, you know, could be at this level, around that level, maybe a little bit lower going forward. But the important thing is a big part of that is revenue driven. So to the extent that we continue to outperform on the fee side, on the top line side, that will drive additional expenses. So do think of it as a result. You cannot disassociate the revenue from the expenses. And so we do think of it in terms of efficiency As you said, we were over 59% last year. We wanna continue to tick that down. it is been 58% for the last 2 quarters. We are comfortable in the range that we are at. And over time, our goal is to continue to tick that down. And we have got a number of expense initiatives that are ongoing. We think about it a lot. Part of our strategy, by the way, around expenses is as you know, we have been exiting some non-businesses that are not central to our strategy. And that is been an important driver as well. And so overall, I think we will continue to invest in the business. that is really the number 1 priority while maintaining discipline and so I think around this efficiency level is where we would expect to be.
Russell Gunther: Okay. Nope. That makes a ton of sense. Thank you, David. And then I guess just last 1 for me. The 1.50 plus, that plus sign there in the ROA target, what are the biggest deltas, to achieving that?
David Burg: Yeah. So, you know, I think we put the plus there because we would like to come in a little bit better than that, not materially better. But obviously continued outperformance in fees if we continue to get some of the deposit growth. But, again, it is it is a competitive environment. it is not the deposit growth we have seen, I think, is hard to continue at this level. And so that is where some of the pluses and minuses come in.
Russell Gunther: Okay. Wonderful. Thank you guys for taking all my questions.
David Burg: Thanks, Russell.
Operator: Your next question from the line of Kelly Motta with KBW. Your line is open. Please go ahead.
Megan Lynch: Hi. This is Megan Lynch on for Kelly Motta. Thanks for taking my question. So loan growth was very solid this quarter. And you are expecting it this growth to sort of continue. So can you speak a bit to how pricing is coming in, with competition and if this competition is pressuring your prices at all?
David Burg: Sure. Sure. Happy to talk about that, and I will I will maybe split the discussion between commercial and consumer. On the commercial side, as you know, our really our core strategy is to grow our C&I business. that is the business that drives our relationship it is a very important contributor to our deposits. And our noninterest bearing deposits. And so that is really kind of our flagship product. A C&I has always been very, very competitive. And continues to get very competitive as others try to penetrate the space. We are not the low cost provider in the market. We really separate ourselves based on our service model. Obviously, you know, we need to be competitive, but we separate ourselves based on service. Based on our responsiveness, and in our relationships. And so we wanna make sure we grow in a reasonable, accretive way, and that is what we have been doing. And so expect, you know, expect our goal is to continue to grow it at kind of mid single digits through the cycle. On consumer side, our loan strategy, what we have really done is try to on areas where we have a differentiated value proposition, and so you have seen us get out of--we sold the Upstart portfolio last year. We sold our credit card portfolio this year. And we really focused on residential lending. In residential lending, we really have, you know, a differentiated product there with our service model, and our ability to, work with different types of clients, But the pricing there, because of the move in rates, that we have seen, the pricing obviously, in the residential real estate side has gotten more challenging. So I think that is a market dynamic overall.
Megan Lynch: Thank you. That was very helpful. And then just switching sort of to credit, you saw some improvement this quarter, and the trends seem very solid. Is there any like, what are you seeing more broadly? And is there any place that you are watching in your portfolio?
David Burg: Yeah. As you mentioned, we have seen we had good credit performance. Take a very proactive approach to credit. We spend a lot of time on it. We try to get out early in front of any issues that may appear. And work with our clients to resolve any potential issues. When you look at the portfolio, there is nothing that there are always individual challenges with particular clients, particular situations, but there is not a big red flag when we look across or a theme or pattern. Office continues to be a challenging market and challenging prices, and we try to be very selective there. But, generally, nothing new in terms of, any red flags where we can connect the dots across different types of asset classes.
Megan Lynch: Awesome. Thank you. that is it from me.
David Burg: Thank you.
Operator: Your next question from the line of Manuel Navas with Piper Sandler. Your line is open. Please go ahead.
Manuel Navas: Hey. Good afternoon. Could you add a little more color on the OpEx discussion? You said there could be some potential variability And in the prior conversation, it sounded like there could be a downward trajectory. But what are some of the projects and things that you need to that adds that kind of variability within OpEx, or is it just variable comp, you know, supporting revenues?
David Burg: So a part of our cost base, Manuel, is variable. So whenever we have revenue outperformance, we are going to see some additional expenses. Some of that is IC, and that was a meaningful part this quarter. We also have transaction expenses, for example, in Cash Connect, We have transaction expenses in our trust businesses. And so you know, a portion of that revenue is definitely going to result in higher expenses. And at the same time, we continue to you look at our core expense base and our base expense level, we continue to try to, work that down and continue to try to have initiatives to offset general rising costs, inflation and medical expenses and those types of things. And we have a number of ongoing initiatives. Like I mentioned, some of that has been getting out of businesses that were not central to our strategy, that had expenses associated with them, that were not highly profitable businesses. We have we have really optimized our real estate portfolio. We have a successful initiative going on around vendor costs. So we have got a number of different initiatives that are offsetting some of the natural increases which is how we get to a 4% year-over-year growth. But the revenue is going to drive some expense. With it. Yeah.
Rodger Levenson: Manuel, I just would add to what David said. I think where the variability could come into play is if, as David said, medical costs, health care costs are a big topic, and I think will continue to be a big topic, although we are doing, I think, a very good job of managing that. And like many others, you know, we continue to periodically see fraud spike from different events. So I think while we are in a good place, there is always some opportunity that we may see a little bit elevated cost in those 2 areas. And to me, that is really where some of the pressure on driving it down we cannot point a finger on right now could occur.
Manuel Navas: I appreciate that. Shifting over to loan growth. A little bit more on the guide here in the back half of the year, mid single digits. Can you just talk about the main drivers there and what you are seeing in the marketplace? From your borrowers in terms of sentiment pipelines and things like that.
Rodger Levenson: So I will I will talk about sentiment. I have been out a fair bit over the last several weeks. And I would characterize, client sentiment as very good. I think they are definitely dealing with some headwinds on the cost side. But all of the--what I would say that the uncertainty geopolitical events, energy volatility, you know, those kinds of things. I think they have kind of either come to accept there is going to be a certain amount of uncertainty or an ability to adjust their businesses based on what they dealt with last year if there is a sudden spike in, you know, 1 cost, you know, here or there. So I think that is translating into businesses feeling pretty good and investing, you know, which should be really good for us, you know, on the C&I side. And people, you know, are seeing the benefits of, you know, an overall, you know, stable economy. And so that is the, you know, environment where businesses like to grow and invest and, you know, we should benefit from that. And so that is a that is a big driver of our pipeline. Where we are seeing opportunities. And as you know very well, you know, in our marketplace, particularly as you move up the curve in terms of, you know, medium sized business lower end of middle market, you know, really competing against much larger competition. And we find that, you know, as David has said, our service proposition plays very well into those kinds of clients. And so, growing with our clients as well as taking market share are really the 2 drivers of where we see loan growth for the rest of the year.
David Burg: Then, well, I would just add that on the consumer side, a large part of our growth this quarter came from our home lending business. We had a we had really a strong pipeline at the end of the first quarter into the spring selling season, also some of the lower rates that happened earlier. But now we are reaching a little bit a slower part of the season and rates have ticked up. So the pipeline has come down a bit, so I would not expect the kind of growth that we have seen in home lending necessarily to continue, but still expect to be able to do well there.
Manuel Navas: Appreciate that. The switching over deposits. So really strong first half of the year. I think that is a big part of the higher guide. Is some of the discussion points around NIM and around competitive pressures on deposits? Is it because some of the noninterest-bearing could flow out. If you kind of talk about the noninterest bearing growth, which is great Institutional services kicking butt, but I am just wondering how much of that is sticky? How much of that is you kind of preparing for it to flow out if any? Just talk about the non-transactional side a little bit. How it impacts your deposit cost.
David Burg: Sure. So, yeah. Happy to do that, Manuel. So I think when you think about our noninterest bearing, really, the important thing to understand is that those deposits are really spread across a few businesses. They are spread across commercial, consumer, and institutional services. And within institutional services, there are actually 2 businesses that are important contributors there. Our corporate trust business, where which focuses on the ABS and MBS markets as well as our global capital markets business, which focuses on bankruptcy, distressed debt, high yield debt, corporate issuance. Both of those all 4 of those businesses are important drivers. And when we think about this quarter, probably about 80% of the NIB growth was within institutional services, split across both of those businesses, and 20% was in commercial. So all of them are important drivers. What the competition that we are seeing is there are different drivers for each of those businesses in terms of deposit expectations. The competition that we talked about that we are seeing is really on the consumer space and in the commercial space. We are definitely seeing more deposit competition in the market. That may impact both NIB growth as well as pricing. Going forward. And on the trust side, you know, we benefited from a very strong market, and we have been able to capture share. But, again, you know, those are transactional activities. And we would not expect the kind of growth that we have seen to necessarily continue.
Manuel Navas: I appreciate that. Let me just add 1 more on kind of capital return. Strong buyback activity. Is there a part where you become more price sensitive, or you still have so much capital return and where does buyback stack up with other opportunities you have to deploy? Where across organic growth, M and A, just kind of some updated thoughts here.
David Burg: Yeah. So, generally, as you have showed us say before, our first priority is always to invest in the business. And we think that is the best return for shareholders. And so investing the right return level in the business is our first priority. We have we have obviously given you a capital target. We think we have excess capital at the moment. We look at a couple of--a few--a number of different metrics there. And since we have rolled out the enhanced capital return framework, kind of the beginning of last year, you know, we have we have been buying we have been returning about 100% of net income, and we have bought back about 14% of our shares going back to the beginning of last year. So over time, I generally expect that trend to continue. In any given quarter, we may deviate from that. Depending on the opportunities that we have internally. Depending on the environment. We look at interest rate volatility, We look at our securities portfolio. We look at it from multiple different perspectives, and that is why in any given quarter, you know, we may deviate from that. But when you think about it over a multi quarter period, we would like to be in that 100% capital return. So I am not necessarily gonna throw out a price target at which we stop or go. I think it is I think it depends on all of those factors and what else we have as opportunities internally. Outside opportunities?
Manuel Navas: So are you referring to, like, M&A and those kinds of things, Manuel? Yes.
David Burg: Yeah. Yeah.
Rodger Levenson: So I think as we have said, I think if anything that we find could be additive and accretive to, our current strategic plan. We would absolutely look at those opportunities across the franchise. So whether it is in the fee businesses, the wealth side, would absolutely look at those kinds of opportunities. And I would say the same thing on the banking side. I think the challenge on the banking side as we look at our footprint and our region, feel like there is a lot of opportunity here. And so the bar would be pretty high for us to take some portion of our organizational bandwidth and pivot away from the organic opportunity that is right in front of us. If it is there, we will absolutely go for it. And we as David said, we always want to take the opportunity to accretively invest in the business. I think it is just it is important that it is accretive to what we have already got going from an organic standpoint.
Manuel Navas: I really appreciate the commentary. Thank you so much.
Rodger Levenson: Thanks, Manuel.
Operator: Your next question from the line of Christopher Marinac with Brean Capital, LLC. Your line is open. Please go ahead.
Christopher Marinac: Good afternoon. I wanted to ask about the percentage of fee income to the overall business. Would you see this rising further into 2027, 2028? And then does that give even more flexibility on loan growth in terms of being even more selective than you have been?
David Burg: So generally, we have, you know, we have been able to grow both. And that is why that ratio has been generally consistent because we have been able grow both. Our wealth and trust business, as you know, has been a fast grower, but that is been offset a bit by our Cash Connect business because of the interest rate impact on the top line there. In a steady state environment, generally, we would expect that our fees will probably go slightly faster, all else being equal. But, you know, we do not necessarily manage to a particular number there. What we are we are trying to we are trying to grow both And so we have a positive growth on the top line altogether. Got it.
Christopher Marinac: Then, I guess, you know, back to the concept of being selective in terms of who you are doing business with and particularly not having to grow extremely fast on loans. Is that helping you on deposits, and is the deposit gathering that you are seeing that success kind of a function of just really being focused in on the best customers who have funding?
David Burg: Yeah. I think certainly when we look at we look at lending opportunities, we the relationship is really important to us. And the deposits that those clients bring in are really important to us. So try to invest our management bandwidth into those types of opportunities. So it is not it is not the only thing we do. And as you know, the for example, the commercial real estate business tends to be a bit more transactional, and we have great clients there. We continue to invest and continue to grow that business. But ideally, we have those opportunities to bring a broader relationship, which is not just deposits, but also across wealth, across treasury services, And that is what we think you know, 1 of our big value propositions is. To bring the full the full firm. Yeah.
Rodger Levenson: Christopher, I do not think we would look at it as sort of managing to find where there is the highest level of deposits in a C&I relationship. We take a real a relationship return view on all commercial relationships. So we look at all the business we can get. As David said, typically, in the C&I business, you are getting all the operating accounts. Which could bring, you know, significant deposits. And the other business that we do. And as long as it crosses our threshold, with the loan pricing that we have, that is accretive to what we are doing. And that is really the way we were selective, you know, on clients. We can be super aggressive on credit pricing for the right opportunity as long we get the, you know, the full relationship. So, we really look at it much more that way. Than trying to think about, you know, how much in deposits we may or may not get from a client.
Christopher Marinac: Okay. that is that is great. Thank you for clarifying that. I appreciate it. And back to the capital, you know, goals, is there a time frame on when you want to get that towards 12?
David Burg: Or are we still--is it just going to be multi quarters ahead? Yeah. No particular time frame, Christopher. For example, when you look at this quarter, just look at this quarter, I think we are down 15 bps. And if you just do the math on the CET1, if you just do the math on that, you know, you are talking about kind of 2.5 to 3 years. So I think it is a multiyear trajectory. But we also look at TCE. it is really important Our security portfolio is really important and the impact on capital. So we look at a number of different factors there. So no particular timeline We wanna continue with the measured approach. At about 100%. But again, we may deviate from that quarter to quarter.
Christopher Marinac: Okay. And I guess to that point, does the AOCI return is any of that lumpy in the next you know, year or 2 in terms of some you know, preplanned return?
David Burg: Would not say so. I think it is been it is been pretty consistent Most probably 95% of our portfolio is invested in MBS. And there is no credit risk there. it is been pretty consistent with the way that AOCI has been coming off. We have had it moved the other way in the last couple of quarters, and that is really been a function of rate. But, you know, it is down materially from where we were post COVID, and we will continue to tick down kind of gradually.
Christopher Marinac: Got it. Okay. Very well. Thank you for take taking the questions today.
David Burg: Thank you, Christopher. Appreciate it.
Operator: Your next question from the line of Janet Lee with TD Cowen. Your line is open. Please go ahead.
Janet Lee: Good afternoon.
Rodger Levenson: Hi, Janet.
Janet Lee: Institutional on institutional services, I know that you know, there is a big portion of that growth is coming from the market share gains, specifically on the corporate trust side, but you have also been benefiting from the secular tailwinds from private capital securitization. I just wanna see if you could provide some context around whether the strength there industry wide is persisting or if there is any change there in whether that is an important factor is when we forecast your investment management or wealth and trust revenues.
David Burg: Yeah. Yeah. So Janet, let me back up a little bit and just talk about I think it is important when you think about institutional services to consider both businesses there, both corporate trust and global capital markets. When you look at, for example, our NIB growth this quarter, both were important contributors. As I mentioned in my opening remarks, both were also important contributors. On the fee side. To your direct question around the growth of that ABS and MBS market, it has continued to grow. And the first half 26 rankings just came out. Mhmm. We increased share, but the market also grew. And that market's been growing, you know, 20% to 30%, and we have been growing on top of that. So I think generally, when you have whenever you can obviously take share in a market that is growing that quickly, very accretive to results, and that is what is been happening. But I think it is important to also recognize what the differentiating factors are for us. And there are a number of them. But, in general, we have I can summarize it by saying that, you know, we have the balance sheet strength of some of the larger players. but are much more nimble And are much more and have a much better service model. So when you think about you know, our ability to move quickly, our ability to innovate with clients that has allowed us to take share. And that market is a market where reputation matters a lot. And the better we do, the more we win. And so those have been some of the dynamics that have been at play here and what has allowed us to take share on top of the strong growth. I think, you know, that market has been a good growing market for a number of years. I do not think this pace of growth is something I would necessarily extrapolate. But we believe we continue to believe in our ability to win share. and, you know, and play in different asset classes and play different roles there.
Janet Lee: Thank you. And going back to noninterest bearing deposit, obviously, very impressive growth again this quarter, and I appreciate the comment around how sustaining this level of growth may not be you know, it is it is not an easy feat. In terms of your 3.85 net interest margin, guidance, are you contemplating any further growth in non interest bearing deposits Or maybe what level of NIB as a percentage of total deposit is assumed in your guidance?
David Burg: Yeah. So I think it is generally, you know, I think if we keep it at this level, it would be it would be really great. I am not sure we can sustain it at this level of 37%. You know, historically, we have kind of run in the low thirties, but I think low to mid thirties. Mid thirties is--will be a good level to maintain. And in general, as we grow deposits, we wanna maintain that level. I think this has been real outperformance. But, Janet, I think the other thing to consider is when you have noninterest bearing deposit growth based on where rates are today, if those deposits are invested in cash, it is not necessarily accretive to net interest margin. So it is it is really a push I would say, generally to where net interest margin is. So the upside to net interest margin is really going to be driven by our ability to loan growth our ability to invest those non interest bearing deposits at something that is higher than cash because otherwise, it would just be a push.
Janet Lee: Makes sense. Alright. Thank you.
David Burg: Thank you.
Operator: With no further questions in the queue, I would like to turn the call back over to David Burg.
David Burg: Okay. Thank you very much. Appreciate you joining the call today. If you have any specific follow-up questions, please reach out to Andrew at Investor Relations or me. Have a great day and a great weekend. This concludes today's call.
Operator: Thank you for attending. You may now disconnect.
