Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the mortgage gain on sale fees and expectations for the future? A: Gavin Mohr, CFO, noted that margins are stable, but there might be headwinds in production due to seasonality and limited supply. President and CEO William Kessel added that customer expectations around mortgage rates have shifted, impacting application levels.
Q: How is the balance sheet positioned for potential Fed rate reductions, and what impact might this have on margins? A: Gavin Mohr, CFO, expects margin expansion due to asset repricing and some ability to reprice liabilities. The base model margin is anticipated to be higher than current levels, indicating potential for margin growth.
Q: Can you discuss loan demand and pipelines, and whether there's potential for increased demand post-election? A: Joel Rahn, Executive President and Head of Commercial Banking, stated that the commercial pipeline is solid, with growth expected in the fourth quarter and early 2025. There might be pent-up demand from business owners waiting for election outcomes, but it's hard to gauge.
Q: What is the outlook for hiring new bankers given market dislocation? A: Joel Rahn mentioned ongoing efforts to add talent, with recent additions in Southeast and Northern Michigan. The strategy is to continue hiring where good talent is available, which has been beneficial in the long run.
Q: Have deposit costs peaked, and what is the competitive landscape for deposit pricing? A: William Kessel believes deposit costs have peaked following recent Fed moves, though competition remains aggressive. The bank's pricing strategy focuses on customer care and managing wholesale borrowing costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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