Release Date: January 30, 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, especially in the latter half of the year? A: David Antolik, President, explained that they expect loan growth to follow a trajectory of mid-single-digit growth in the first half of the year, increasing to high mid-single-digit growth by year-end. This optimism is driven by expanded pipelines, increased hiring in business and commercial banking, and improved customer confidence.
Q: What are your expectations for credit quality and net charge-offs in 2025? A: David Antolik noted that while forecasting charges is challenging, they do not foresee any particular loan or industry segment causing concern for outsized charges in 2025. The allowance for credit losses is expected to support growth, with C&C assets having significantly declined over the past two years.
Q: How do you plan to manage the net interest margin (NIM) if there are further rate cuts? A: Mark Kochvar, CFO, stated that they expect the NIM to remain stable around 3.70%, even with potential rate cuts. They have strategies in place to manage deposit repricing and have neutralized the balance sheet to mitigate rate change impacts.
Q: Are there plans to continue recruiting and expanding teams in 2025? A: David Antolik confirmed plans to continue recruiting, potentially adding another 15% to their business and commercial banking teams. This expansion is supported by the company's strong market position and growth strategy.
Q: What is the outlook for net interest income (NII) growth in 2025 compared to 2024? A: Mark Kochvar indicated that NII growth is expected to be modest, with a low single-digit percentage increase year-over-year. They anticipate a pickup starting in Q2, following a relatively flat Q1.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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