Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide details on the repricing of CDs in the second quarter and their expected impact on the net interest margin (NIM)? A: Daniel Weiss, CFO, explained that approximately $1 billion in CDs with a weighted average rate of about 4.25% are expected to reprice downward by 75 to 100 basis points. This repricing is anticipated to provide a significant lift to the margin in the second quarter, with the CDs remaining as a seven-month special.
Q: How should we think about the pro forma margin with Premier Financial, considering the current rate environment and expected Fed cuts? A: Daniel Weiss, CFO, indicated that the pro forma margin is expected to be around 345 to 350 basis points. This is based on the updated rate environment and is an improvement from the initial projection of 346 basis points at the time of the deal announcement.
Q: What are your expectations for deposit growth in 2025, and how does it relate to loan growth? A: Daniel Weiss, CFO, stated that deposit growth is expected to fully fund loan growth, which is targeted at mid to upper single digits annually. This translates to approximately $800 to $850 million in loan growth, with deposit growth expected to match this figure.
Q: Can you provide more insight into the commercial deposit growth and the impact of treasury management products? A: Jeffrey Jackson, CEO, noted that there has been significant growth in commercial deposits and treasury management fees. The bank has implemented around 40 new multi-cards, contributing to revenue growth and enabling the bank to secure additional commercial and industrial (C&I) business.
Q: Are there any updates on the Premier Financial acquisition and its expected closing? A: Jeffrey Jackson, CEO, confirmed confidence in closing the Premier Financial acquisition in the first quarter. The necessary regulatory approvals from the Fed and FDIC are in progress, with no issues anticipated.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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