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 provide insights on the margin and spread dynamics, and how they compared to expectations set in the January call?
A: Jared Wolff, President and CEO, explained that while the margin was slightly lower than anticipated, the company still met its earnings targets through other means. Joseph Kauder, CFO, added that the cost of refinancing brokered deposits was slightly higher due to unexpected market conditions, but they managed to control costs effectively in other areas.
Q: What are the expectations for accretion in the coming quarters, and how did it impact this quarter's financials?
A: Joseph Kauder, CFO, clarified that the accretion for the quarter was in line with expectations and mainly consisted of scheduled accretion from previous acquisitions. He emphasized that while accretion contributes to financial results, it was not a major factor this quarter.
Q: How is the bank managing its operating expenses, and what are the expectations moving forward?
A: Jared Wolff, President and CEO, highlighted that the bank is on track with its expense management and expects further reductions in FDIC expenses and other operational costs as the year progresses. The bank is also focusing on strategic initiatives to optimize its cost structure.
Q: Can you discuss the trends in non-interest bearing deposits and the bank's strategy for deposit growth?
A: Jared Wolff noted significant growth in non-interest bearing deposits, driven by new business account relationships. He emphasized the bank's ongoing efforts to enhance its deposit mix and reduce deposit costs, which will contribute to improved financial performance.
Q: What is the bank's approach to managing interest expense and its impact on the net interest margin?
A: Jared Wolff and Joseph Kauder discussed strategies to reduce interest expense, including paying down high-cost borrowings and optimizing the deposit portfolio. They expect these actions to support margin improvement throughout the year.
Q: How does the bank view its credit quality and loan performance, particularly in light of recent credit downgrades?
A: Jared Wolff reassured that the bank maintains a conservative stance on credit quality. Recent downgrades were described as proactive measures, and the bank feels well-reserved against potential future losses. The overall credit profile remains strong despite these adjustments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
