Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the fee income outlook, particularly regarding leasing fees and overall fee base for 2025? A: Dennis Shaffer, President and CEO, stated that they are optimistic about leasing fees due to good traction over the past six months. They expect continued growth in wealth management fees, with assets under management now over $800 million. The wildcard remains residential mortgage loans, which are rate-dependent, but they aim to match or exceed last year's performance.
Q: Could you break down the net gain on sale of loans for the quarter between CLF volume and traditional residential? A: An unidentified company representative explained that in Q4, the gain on sale was about $1.3 million, with 40% from CLF leasing and 60% from mortgage. Mortgage volume was approximately $40 million, while leasing was just under $12 million.
Q: What are the expected impacts on deposit costs and efforts to reduce rates outside of CD pricing dynamics? A: Dennis Shaffer noted proactive rate reductions in line with FED cuts. While overall deposit costs may trend slightly higher due to aggressive core deposit generation, total funding costs are expected to decline as they replace more expensive brokered deposits and borrowings.
Q: Are there any areas or geographies where you're seeing more credit pressure? A: Michael Mulford, Senior Vice President, stated that there are no specific areas with systemic credit issues. Any credit concerns are isolated incidents rather than geographic or concentration-related.
Q: What are your future deposit gathering initiatives, and how will you prevent new money market accounts from cannibalizing existing deposits? A: Dennis Shaffer highlighted several initiatives, including utilizing dashboards for bankers, focusing on accounts with low deposits, and investing in Mantle for online account opening. They aim to attract high-balance money market accounts without cannibalizing core deposits, using index-based pricing for large depositors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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