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: Could you discuss the overall balance sheet management strategy as the year progresses, especially considering the current liquidity levels?
A: John Connerton, CFO of Evans Bank, N.A., explained that the use of brokered CDs and the extension of $40 million in FHLB borrowings are part of a strategy to manage seasonal fluctuations, particularly from municipal deposits. The balance sheet is expected to remain relatively flat, with some deposit growth anticipated, leading to a slight upward trend by year-end.
Q: What is the expected distribution of the 5% loan growth target over the remaining quarters of the year?
A: John Connerton noted that the loan growth is expected to be evenly spread over the remaining quarters, with the fourth quarter being more of an estimate but generally maintaining a consistent growth pattern throughout the year.
Q: How are you approaching capital management, particularly regarding buybacks and the flexibility created by the TEA sale?
A: John Connerton mentioned that the primary focus is on supporting asset growth and maintaining the dividend, with buybacks being considered but limited by market conditions. Approximately $0.5 million worth of buybacks were executed in the first quarter.
Q: When were the brokered CDs and borrowing extensions that were mentioned earlier in the call executed?
A: David Nasca, CEO of Evans Bancorp, clarified that these were executed towards the end of March, meaning their impact on the first quarter was minimal.
Q: Can you provide insights into the expected trajectory of the net interest margin (NIM) in the latter half of 2024?
A: David Nasca indicated that while they do not anticipate significant expansion, the deceleration in deposit betas should help stabilize the NIM, with expectations for it to flatten out somewhat.
Q: What are the current conditions and expectations regarding credit quality and market stress within your operational regions?
A: David Nasca reassured that there are no significant signs of stress or deterioration in credit quality within their markets. The bank continues to manage its credit conservatively, anticipating potential challenges but not currently observing material impacts on credit performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
