Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights into the deposit pricing trends following the recent 50 basis points rate cut? A: Steven Crockett, Chief Financial Officer, noted that the trends are aligning with expectations. Some deposits, especially in the public fund arena, have rate reset days that may not reflect the full cut immediately but catch up quickly. Cory Newsom, President, added that they didn't race to the top with rates, so future cuts will be more beneficial. Curtis Griffith, CEO, mentioned a softening in CD rates across markets, indicating a less competitive environment.
Q: Did the elevated loan payoffs impact net interest income (NII) or result in any significant prepayment fees? A: Steven Crockett confirmed that there were no larger prepayment fees associated with the elevated loan payoffs, and Cory Newsom agreed that it did not impact NII significantly.
Q: What is the outlook for mortgage fees and the mortgage business given the seasonal slowdown? A: Cory Newsom explained that the fourth quarter is typically slower due to holidays, but the company has managed expenses carefully to maintain infrastructure. They expect more activity after the first of the year, with some lenders already closing more loans than last year. Curtis Griffith added that while current rates have dampened excitement, the team is still doing business.
Q: With a robust loan pipeline expected to materialize in the first quarter of next year, do you anticipate loan yields to continue rising? A: Brent Bates, Chief Credit Officer, believes loan yields will improve due to good pricing and segments of the portfolio that reprice. Cory Newsom highlighted that repricing of cheaper existing loans will contribute to yield improvement, particularly in 2025 and 2026.
Q: How have your CD rates trended following the rate cut, and what is the expected maturity schedule? A: Steven Crockett stated that most CDs are one year or less, with many in the six-month range, and they have begun to reprice down. Rates were reduced by 25 to 50 basis points post-cut. Curtis Griffith noted that the percentage of deposits in CDs is relatively low, with most demand for shorter-term CDs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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