Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on loan growth and your expectations for 2025? A: Kevin Hanigan, President and COO, stated that they expect low single-digit loan growth for the year. The runoff from recent acquisitions is nearly complete, and there is optimism for modest growth in the upcoming quarters. David Zalman, CEO, added that despite some sluggishness, there is optimism among their customers, and they expect loan growth to pick up as uncertainties settle.
Q: With the balance sheet shrinking, will you continue to pay down borrowings if loan growth remains sluggish? A: David Zalman, CEO, mentioned that they have reduced borrowings significantly and do not expect much further reduction. Asylbek Osmonov, CFO, added that they will continue to pay down borrowings if opportunities arise and may also invest in securities yielding around 5.25% to 5.5%.
Q: What are your thoughts on share buybacks given the current stock price? A: David Zalman, CEO, indicated that they would have been active in buying back shares if not for the earnings announcement blackout period. They are currently prioritizing M&A opportunities but will consider buybacks if the stock price experiences another downturn.
Q: Can you provide an update on M&A activity and your preferences in the current environment? A: David Zalman, CEO, noted that M&A discussions have resumed after a brief pause. They are open to both small and large deals, with a preference for transactions that are accretive to shareholders. They expect to see some M&A activity by the end of the year.
Q: How do you view the potential for lowering deposit costs if the Fed stops lowering rates? A: David Zalman, CEO, stated that there is room to lower deposit costs further, especially if rates decrease quickly. Asylbek Osmonov, CFO, added that they have not significantly increased deposit rates and see opportunities to cut rates on special CDs and exception rates if necessary.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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