Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you walk us through the bond redeployment and the cash flows from this quarter?
A: Ronald Gorczynski, Executive Vice President, Chief Accounting Officer of the Company and the Bank, confirmed that over $80 million was redeployed at a yield of 5.87%, primarily into mortgage-backed securities and some agencies and corporate bonds. The rest of the funds are held in cash.
Q: What are the drivers behind the strong deposit growth this quarter?
A: William Carroll, President and CEO, attributed the growth to new business, including large corporate accounts and public funds, driven by the efforts of their relationship managers across the company’s footprint.
Q: Regarding the $61 million of securities maturing this quarter, will these funds flow into cash?
A: Ronald Gorczynski confirmed that the funds from these maturing securities, which currently yield 2.1%, would likely flow into cash.
Q: Can you discuss the expected revenue growth and the target of hitting a $50 million revenue bogey in the second half of '25?
A: Ronald Gorczynski projected that the company would likely hit a $42 million quarterly revenue run rate in Q3 of this year and reach the $50 million target by the second half of Q3 next year.
Q: What is the outlook for the mortgage business and its contribution to non-interest income?
A: Ronald Gorczynski noted a 15% increase in the guidance for mortgage revenue, with a shift towards more secondary market sales, projecting an even split between portfolio and secondary market sales by mid-2024.
Q: What impact do you see from M&A disruptions in your region in terms of talent acquisition and new business?
A: William Carroll noted ongoing opportunities to hire quality bankers due to regional bank disruptions and strategic changes, expressing optimism about adding revenue-enhancing talent that fits the company’s culture.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
