Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the factors contributing to the variability in expenses, particularly regarding personnel-related costs? A: Harold Carpenter, CFO: The variability in expenses is largely tied to personnel-related costs, such as incentive accruals and hiring. While there are some non-personnel costs that could be adjusted, such as delaying branch build-outs, the primary focus remains on managing personnel expenses and hiring strategically to support growth.
Q: What are the expectations for net interest income (NII) and margin trends throughout the year? A: Harold Carpenter, CFO: We expect NII growth to be solid, driven by loan growth and margin assumptions. If the economy heats up, loan demand could outpace our plans, providing upside potential. We are optimistic about maintaining a strong NII growth trajectory.
Q: How does the company plan to manage deposit growth and pricing in the current environment? A: M. Terry Turner, CEO: We are focusing on lowering high deposit rates and growing operating accounts, both commercial and consumer. We believe there is room to manage deposit costs down, independent of Fed movements, and are actively working on initiatives to optimize our deposit base.
Q: What is the strategic outlook for BHG, especially regarding the reserve for off-balance sheet loans? A: Harold Carpenter, CFO: BHG is focused on building a stronger balance sheet and optimizing its production platform. They exited the SBA loan program and are concentrating on core business areas to enhance earnings and franchise value.
Q: Can you provide insights into the fee growth guidance and any potential for upside? A: Harold Carpenter, CFO: The fee growth guidance of 8% to 10% includes a level of conservatism. We aim for higher performance, particularly in wealth management and other core banking strategies. There may be upside from nonrecurring items, but our focus is on sustainable fee growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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