Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What are you seeing for loan pricing in your markets these days?
A: (Michael Archer, EVP & CFO) - We are maintaining steady rates, with origination yields for the quarter around 7.5% to 8%. We continue to focus on disciplined pricing to maintain these rates.
Q: Can you discuss the impact of the derivatives maturing in June on your balance sheet?
A: (Michael Archer, EVP & CFO) - We have $100 million of balance sheet swaps maturing in June, which have been compressing some of our CRI yields. Their expiration should provide a 6-7 basis points boost to our margin.
Q: What is your strategy for managing the mix shift from noninterest-bearing to interest-bearing deposits?
A: (Simon Griffiths, CEO & President) - We are focusing on deepening customer relationships and leveraging new platforms and leadership in wealth management to manage this shift effectively.
Q: How are you addressing the reserve release this quarter?
A: (Simon Griffiths, CEO & President) - Given our strong credit portfolio and performance, along with internal stress testing, we felt it was appropriate to release some reserves this quarter. We will continue to monitor and adjust based on economic conditions.
Q: What are your expectations for loan growth and provisioning in the coming quarters?
A: (Michael Archer, EVP & CFO) - We anticipate low single-digit loan growth and expect to maintain our allowance for credit losses around the mid-80s basis points, with low provisioning unless there are significant net charge-offs.
Q: Can you provide insights into the trends in deposit costs and the margin?
A: (Michael Archer, EVP & CFO) - We are seeing a slowdown in the increase of deposit costs, which is aligning more closely with earning asset yields. This stabilization is helping maintain our net interest margin around 2.30%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.