Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: How many rate cuts are you assuming for the modest improvement in NIM in the second half of the year?
A: Mark Ruggiero, CFO, mentioned minimal cuts, possibly one or two later in the year, not expecting significant impact on 2024.
Q: What is the expected tax rate for the remainder of the year?
A: Mark Ruggiero indicated a tax rate around 23%, slightly higher than previously guided due to discrete impacts from equity award vesting.
Q: Can you summarize the largest credits that are part of your nonperforming balance at quarter end?
A: Mark Ruggiero detailed three major nonperforming commercial credits, including a C&I relationship and two office loans, with specific loss exposures and resolutions discussed.
Q: What are the expectations for CD maturities repricing?
A: Mark Ruggiero expects the majority to reprice up into the high 4% range, assuming no significant changes in Fed rate cuts.
Q: How has the western expansion progressed in terms of loan and deposit growth?
A: Jeff Tengel, CEO, expressed satisfaction with the progress in the new markets, noting growth in loans and deposits and ongoing efforts to replicate their operating model in these areas.
Q: What are the plans regarding potential securities restructuring given the robust capital levels?
A: Mark Ruggiero discussed the possibility of restructuring to improve earnings but highlighted a trajectory towards a more balanced securities book, suggesting no immediate need for significant changes.
Q: Are there any updates on M&A activities or increased conversations in your markets?
A: Jeff Tengel noted no significant uptick in M&A conversations, attributing the quiet market to ongoing challenges in making the financials work and regulatory uncertainties.
Q: Could you provide details on the office portfolio's current reserve allocations and any outsized credit pressures outside of this portfolio?
A: Mark Ruggiero explained that while specific reserve allocations for the office portfolio are not publicly disclosed, they believe their reserves are conservatively positioned. He also confirmed stability in criticized and classified assets across other portfolios.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
