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 a range or run rate for fee income through the rest of this year?
A: Annette Burns, Chief Accounting Officer, mentioned that the seasonal activity in the first quarter was about $0.01 to $0.02 per share. Looking forward, the continuation of strong market performance in wealth management and retirement plan businesses could influence the run rate for non-interest income.
Q: What is the normalized charge-off ratio for the indirect auto line, and any trends you're seeing there?
A: Scott Kingsley, CFO, explained that the charge-offs in indirect auto were higher than the previous years but still within expectations. Historically, charge-offs were closer to 30 basis points in 2019, and the current trends do not suggest an immediate return to those levels, indicating a stable customer base.
Q: What is the ultimate goal for the solar portfolio in terms of runoff?
A: Scott Kingsley stated that the solar portfolio is expected to continue in a runoff mode without new originations being added to the balance sheet in 2024. The company likes the asset class and its performance but will reassess its strategy based on market conditions.
Q: What are the expected impacts of the CHIP dollars flowing towards Micron and Global Foundries on your customers?
A: John Watt, CEO, expressed optimism about the significant economic activity expected from the CHIP investments. He anticipates that the benefits will start becoming noticeable around early 2025 as construction and hiring for these projects begin, boosting local businesses and the housing market.
Q: Can you discuss the expected trends in net interest margin (NIM) and the balance between deposit cost increases and earning asset increases?
A: Scott Kingsley noted that the pace of NIM decline has slowed, suggesting a nearing point of stability. He highlighted the importance of competitive loan rates and managing funding costs effectively to maintain a healthy margin.
Q: What are your expectations for loan growth and the composition of the loan portfolio moving forward?
A: Annette Burns indicated that the first quarter's loan growth is reflective of expectations for the rest of the year, with a mix potentially shifting but overall growth projected in the range of 3% to 5%, excluding runoff portfolios.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
