Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Good morning. I have a question on the hires that you had. I know you've added folks even last year. I just wanted to trying to get a sense were there any new in the first quarter?
A: Timothy Myers, President and CEO of Bank of Marin Bancorp, confirmed new hires in the first quarter, noting they were spread out among different regions. He mentioned a timing gap in offsetting costs with cost rationalizations planned in other areas.
Q: I'm just trying to get a sense on that salaries line. Just are there some puts and takes that overall expense the you've moderate from here? Or is that some of those new adds kind of continue to add to growth?
A: Tani Girton, CFO, indicated that while there were some positive offsets to negative seasonal impacts, the bank starts 2024 with a higher salary base due to new hires and other factors like increased medical insurance costs.
Q: Make sense. And Tim, we probably know the folks that were hired with their focus of lending? Is it in a particular area?
A: Timothy Myers explained that the new hires are more C&I focused and are generalists, similar to much of the bank's historical approach. He highlighted that this strategy aims to grow the bank's presence regionally rather than focusing on a single geography.
Q: Great. And maybe just my last one, then as it relates to that loan growth immediate, you talked about in the release of remaining careful of the environment, the pipeline is up. You kind of got over some maybe some construction payoffs. Wanted to make big picture on loan growth from here. I know, Tim, you mentioned timing is difficult, but get a sense for your expectations for loan growth on any --
A: Timothy Myers reiterated the bank's target for mid-single digit loan growth, expressing high confidence in the traction being gained by personnel in various markets, which should lead to more deal activity and closings, although the timing remains unpredictable.
Q: Hey. Good morning, everybody. I wanted to maybe follow up on the loan growth kind of commentary on originations were down in the quarter. I'm just curious, though, how do you think about and what drove that like, how much of that is weaker demand, maybe less appetite for credit? And just kind of your where do you expect growth to be coming from? You touched on more C&I. So it seems like that might be a bigger driver So just wanted some of those coming.
A: Timothy Myers acknowledged weaker demand but noted normalization as people adjust to higher rates. He emphasized a cautious approach to credit, particularly avoiding high-risk areas like office properties in San Francisco with high vacancy rates. He expects a more diversified loan portfolio moving forward.
Q: And then maybe just touching on credit, right, you've got a great reputation as an aggressive and proactive manager of credit that's evidenced in the quarter on you touched on a few of the credit issues in the quarter, but I'm curious maybe how you think about managing those issues on your thoughts after stress in the CRE book and maybe the health of the CRE market in your footprint and just high level, how you think about approaching digital modifications?
A: Misaka Steward, CCO, highlighted the bank's solid credit management practices, emphasizing close monitoring and regular updates from borrowers. She noted that all classified loans are supported by personal guarantees, and the bank actively engages with borrowers to find mutually agreeable solutions to credit issues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
