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Net Income: $0.36 per share on a fully-diluted GAAP basis; $0.38 per share on a core basis.
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Net Interest Income: $83 million for the quarter.
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Net Interest Margin: 2.69% for the quarter.
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Loan Originations: $515 million total, including $78 million of C&I originations.
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Annualized Net Loan Growth: 4% during the quarter.
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Deposit Growth: Increased by approximately 1% excluding brokered CDs.
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Non-Interest Income: Decreased by $2.5 million to $12.2 million.
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Non-Interest Expense: Increased by $1.1 million to $64.8 million.
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Common Equity Tier 1 Capital Ratio: 11.2%.
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Tangible Book Value Per Share: $18.98.
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Quarterly Cash Dividend: $0.20 per common share.
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Effective Tax Rate: 19% for the quarter.
Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Net interest income and margin expanded during the quarter, reflecting positive financial performance.
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Loan portfolio returned to positive growth, with a 4% annualized net loan growth driven by Owner-occupied and Residential portfolios.
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Asset quality remained strong, with a decrease in loans classified as special mention and substandard by 16%.
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Capital levels are robust, with a Common Equity Tier 1 capital ratio of 11.2% and a tangible book value per share of $18.98.
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The company declared its 112th consecutive quarterly cash dividend, reflecting a strong commitment to shareholder returns.
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Operating expenses increased due to acquisitions and continued hiring, impacting overall cost structure.
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Non-interest income decreased by $2.5 million during the quarter, indicating challenges in revenue diversification.
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Deposit growth was modest, with only a 1% increase excluding brokered CDs, suggesting limited organic deposit growth.
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Funding costs declined, but the decrease was modest compared to the decline in earning asset yields, indicating pressure on net interest margin.
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The company faces challenges in the current interest rate environment, impacting loan demand and mortgage activity.
Q: Can you help quantify the typical seasonal increase in operating expenses and the trajectory over the course of the year? A: Patrick Barrett, CFO, explained that they typically see a modest uptick in Q1 due to compensation and payroll taxes, around $1 million to $1.5 million. The main changes in expenses will be from hiring revenue-producing talent, and they will update guidance quarterly as investments are made.
Q: Are there specific regions or areas where you’re looking to add additional bankers? A: Christopher Maher, CEO, mentioned that they are focusing on hiring C&I bankers interested in both loan and deposit-taking, as well as deposit-gathering commercial bankers. Joseph Lebel, COO, added that they are focusing on expanding the C&I bank and Premier Banking team, with hires across their footprint from Northern Virginia to Boston.