Release Date: January 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the loan growth outlook for 2025 and whether recent hires have influenced expectations? A: Jeffrey Tangel, CEO: The anticipated loan growth is primarily due to the new hires we've made. While customer sentiment remains cautiously optimistic, we haven't observed a significant increase in economic activity. The growth is more about capturing market share through our new team members.
Q: Regarding the margin outlook, are new loans expected to come in at around a 6% rate? A: Mark Ruggiero, CFO: In the fourth quarter, we saw new loans coming in at mid-six percent rates, and with recent rate increases, new volumes could approach 7%. The weighted average coupon of loans rolling off is in the low to mid-fives, which supports the 125-basis point spread mentioned.
Q: Could you clarify the $49 million in past-due office loans? A: Mark Ruggiero, CFO: The $30 million syndicated loan is the largest component, with another $7 million loan that was previously highlighted and an $11 million loan currently in short sale negotiations. These three loans make up the majority of the past-due amount.
Q: What is the rationale behind reclassifying owner-occupied commercial real estate to C&I? A: Jeffrey Tangel, CEO: Owner-occupied CRE is more aligned with C&I as the repayment typically comes from a business operation, making it a different risk profile than investor CRE. This reclassification helps better reflect the risk and composition of our balance sheet.
Q: Can you provide details on the core conversion planned for next year and its benefits? A: Jeffrey Tangel, CEO: We're upgrading to a platform more suited to our size and complexity, which will improve efficiency and product capabilities. It will enhance cash management, wire functions, and streamline branch-related activities, aligning with our growth and customer service goals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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