Financial Performance - Net income for the first quarter of 2025 was $4.9 million, a decrease from $6.0 million in the fourth quarter of 2024 but an increase from $2.9 million in the first quarter of the prior year[1]. - Net income for Q1 2025 was $4.9 million, a decrease from $6.0 million in Q4 2024, while diluted earnings per share fell to $0.30 from $0.38[36]. - Net income for the three months ended March 31, 2025, was $4,876 thousand, down from $6,001 thousand in the previous quarter, a decline of 18.69%[40]. - The comprehensive income for the three months ended March 31, 2025, was $7,432 thousand, significantly higher than $2,421 thousand in the previous quarter[40]. Interest Margin and Income - The tax-equivalent net interest margin improved by 6 basis points to 2.86% from the previous quarter and by 36 basis points year-over-year[2]. - The tax-equivalent net interest margin increased to 2.86% for Q1 2025, up from 2.80% in the prior quarter, driven by a lower cost of funds contributing 7 basis points[23]. - Net interest income for the three months ended March 31, 2025, was $24,946 thousand, compared to $25,230 thousand for the previous quarter, a decrease of 1.13%[40]. Loan and Deposit Activity - Loan originations for the first quarter were $63.6 million, with commercial loans accounting for $50.2 million, representing a fivefold increase compared to the first quarter of 2024[4]. - Total deposits increased by $82.0 million to $3.302 billion as of March 31, 2025, with non-interest bearing deposits making up 43.2% of total deposits[16]. - Total deposits increased to $3.30 billion in Q1 2025, up from $3.22 billion in Q4 2024[36]. - Total deposits rose to $3,301,971 thousand as of March 31, 2025, an increase of 2.53% from $3,220,015 thousand at December 31, 2024[38]. - The loan-to-deposit ratio improved to 62.80% in Q1 2025, compared to 64.70% in the previous quarter[36]. Credit Quality - The allowance for credit losses was 1.44% of total loans as of March 31, 2025, down from 1.47% at December 31, 2024[13]. - Classified loans increased to 2.77% of total loans, up from 2.17% in the previous quarter, largely due to downgrades in commercial relationships[8]. - Net charge-offs for the first quarter were $825 thousand, compared to $19 thousand in the fourth quarter of 2024[12]. - The provision for credit losses on loans was $75 thousand for the three months ended March 31, 2025, compared to $350 thousand in the same period last year[40]. Expenses and Efficiency - The efficiency ratio increased to 76.44% from 65.53% in the prior quarter, primarily due to higher non-interest expenses[2]. - Non-interest expenses increased to $21.3 million in Q1 2025, up from $18.3 million in the prior quarter, with salaries and related benefits accounting for a $2.6 million rise[25]. Capital and Assets - The total risk-based capital ratio for Bancorp was 16.69% as of March 31, 2025, an increase from 16.54% at December 31, 2024[20]. - Total assets reached $3.78 billion as of March 31, 2025, compared to $3.70 billion at the end of the previous quarter[36]. - Total assets increased to $3,784,243 thousand as of March 31, 2025, up from $3,701,335 thousand at December 31, 2024, representing a growth of 2.24%[38]. - The total liabilities increased to $3,344,677 thousand as of March 31, 2025, up from $3,265,928 thousand at December 31, 2024, reflecting a growth of 2.40%[38]. - The total stockholders' equity increased to $439,566 thousand as of March 31, 2025, compared to $435,407 thousand at December 31, 2024, a rise of 0.50%[38]. Other Information - The company has a share repurchase program approved for up to $25 million, expiring on July 31, 2025, with no repurchases made in Q1 2025[30]. - Cash, cash equivalents, and restricted cash totaled $259.9 million, an increase of $122.6 million from December 31, 2024[14]. - The average yield on loans remained stable at 4.88% for the three months ended March 31, 2025, consistent with the previous quarter[41]. - Non-interest income rose to $2.9 million in Q1 2025, compared to $2.8 million in the previous quarter, primarily due to a $71 thousand death benefit from bank-owned life insurance[24]. - Non-interest income totaled $2,874 thousand for the three months ended March 31, 2025, an increase of 4.39% from $2,753 thousand in the previous quarter[40]. - The tangible common equity (TCE) ratio was 9.8% as of March 31, 2025, slightly down from 9.9% in the prior quarter[29].

Investment and Financial Risks - The company's investment securities portfolio has experienced unrealized losses due to rising interest rates, significantly impacting liquidity and potential capital requirements [89]. - The company is exposed to significant credit risk, with potential loan losses exceeding the allowance for credit losses due to economic conditions and borrower defaults [94]. - The company maintains allowances for credit losses based on continuous evaluation of credit risks, which may be subject to significant estimates and assumptions [96]. - The company has goodwill totaling $72.8 million and a core deposit intangible asset of $2.8 million as of December 31, 2024, which may be subject to impairment charges in the future [81]. - The company’s funding costs increased significantly in 2023, which could rise further if deposits decline and are replaced with more expensive funding sources [76]. - The company invests significantly in debt securities issued by government-sponsored enterprises (GSEs) such as FHLB, FNMA, and FHLMC, which may lose value due to credit quality concerns [103]. - FNMA and FHLMC have been under U.S. government conservatorship for 17 years, with uncertain future impacts on financial markets and investments in GSEs [104]. Real Estate Exposure - As of December 31, 2024, approximately 90% of the company's loans had real estate as a primary or secondary component of collateral, with 72% in commercial real estate and 28% in residential real estate [98]. - The company's commercial real estate loans represented 389% of total risk-based capital as of December 31, 2024, indicating a high concentration risk [100]. - The company's commercial real estate loans represented 371% of total risk-based capital as of December 31, 2023 [100]. - The company’s primary market is located in areas prone to natural disasters, which could impair loan recoverability and impact financial condition [109]. Depositor and Funding Risks - The top ten depositor relationships accounted for approximately 9% and 8% of total deposit balances at December 31, 2024 and 2023, respectively, highlighting potential volatility in deposit balances [91]. - The company has 29% of its deposits classified as uninsured and/or uncollateralized as of December 31, 2024, which are fully covered by available funding sources totaling $1.849 billion, representing 57% of total deposits [75]. - The company relies on deposits as its primary funding source, which can be affected by external factors and customer perceptions [82]. - The company maintains strong liquidity but faces risks of deposit outflows due to depositor concerns stemming from recent high-profile bank closures [76]. Economic and Regulatory Environment - The federal funds rate increased from a range of 0.0% to 0.25% in March 2020 to a range of 5.25% to 5.50% by the end of 2023, with a total of eleven rate increases since March 2022 [87]. - Regulatory scrutiny may increase due to recent negative developments in the banking industry, potentially raising the company's costs and reducing profitability [117]. - The company is exposed to compliance risks that could lead to fines and reduced business opportunities due to extensive government regulation [112]. - Regulatory scrutiny and new requirements arising from recent banking industry events could increase the company's operational costs and reduce profitability [117]. Competition and Market Conditions - The company faces significant competition from larger financial institutions that may benefit from economies of scale, impacting its ability to generate profitable loans [72]. - The company's earnings are significantly influenced by general business and economic conditions, particularly in Northern California [84]. - Economic conditions, including California's unemployment rate and gross domestic product, significantly impact loan defaults and borrowers' creditworthiness [85]. Cybersecurity and Technological Changes - Cybersecurity risks pose a threat to the company's earnings and reputation, necessitating robust security measures to protect sensitive information [106]. - Cybersecurity risks pose a threat to the company's earnings and reputation, with potential impacts from sophisticated cyber threats [106]. - The financial services industry is undergoing rapid technological changes, and the company must adapt to remain competitive and efficient [108]. - The financial services industry is undergoing rapid technological changes, and the company must stay current to remain competitive and efficient [108]. Operational Risks - The company relies on third-party vendors for critical operations, and any disruption could negatively impact its financial condition [110]. - The company strategically sold securities in the third and fourth quarters of 2023 and the second quarter of 2024 to bolster net interest margin, despite the risk of incurring losses [90]. - The company relies on dividends from the bank to meet financial obligations, and any inability to pay dividends could adversely affect its stock price [79]. - The company actively diversifies credit exposure across various geographic locations and investment-grade securities to minimize risk [105]. - Climate change and related regulations may materially affect the company's operations and financial condition, particularly in disaster-prone areas [109].

Fourth Quarter 2024 Earnings Presentation J a n u a r y 2 7 , 2 0 2 5 Forward-Looking Statements This discussion of financial results includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "1934 Act"). Those sections of the 1933 Act and 1934 Act provide a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about ...

Financial Data and Key Metrics Changes - The company generated $6 million in net income for Q4 2024, or $0.38 per share, both higher than the prior quarter, reflecting improved financial performance due to balance sheet repositioning and expense reduction actions [18][19] - Net interest income increased by 4% from the prior quarter to $25.2 million, driven by a 10 basis point increase in net interest margin [19][20] - Noninterest expense decreased by $2.1 million from the prior quarter, primarily due to a decline in salaries and benefits expense [20][24] - The total risk-based capital ratio increased to 16.5%, and the tangible common equity (TCE) ratio was 9.93% [17] Business Line Data and Key Metrics Changes - Loan originations totaled $54 million with $47 million in outstanding balances, showing a well-diversified mix of commercial and commercial real estate loans [14][15] - The company made nearly twice as many commercial and construction loans compared to the same period last year [15] - Nonaccrual loans and classified loans both declined during the fourth quarter due to paydowns, with no provision for credit losses recorded [12][24] Market Data and Key Metrics Changes - Total deposits were $3.2 billion at December 31, 2024, reflecting expected seasonal outflows typical for the fourth quarter [21][22] - The proportion of noninterest-bearing deposits remained high at 43% of total deposits, benefiting from a relationship banking model [16] Company Strategy and Development Direction - The company aims to capitalize on improved economic conditions and loan demand, with a strong pipeline of diversified opportunities across markets, industries, and asset classes [27][28] - Strategic investments in technology are expected to enhance efficiency and client service in 2025 [29] - The company is focused on organic growth while remaining open to opportunistic acquisitions [118][150] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued financial performance improvements in 2025, supported by a strong balance sheet and disciplined underwriting practices [27][28] - The company is seeing positive trends in net interest margin and prudent expense management, which should lead to revenue growth and increased profitability [28][29] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 79th consecutive quarterly dividend [26] - The transition to a new CFO, Dave Bonaccorso, was highlighted, with management expressing confidence in the leadership team [17][30] Q&A Session Summary Question: Comments on margin and future expectations - Management discussed the drivers of net interest margin and the expectation of continued improvement in loan yields, particularly in a higher rate environment [39][50] Question: Loan growth pipeline and payoffs - The company reported a 40% increase in the loan pipeline compared to the previous year, with expectations of originations outpacing payoffs [52][116] Question: Seasonal dynamics in deposits - Management noted that fluctuations in deposits were primarily seasonal, with a focus on new client acquisition and maintaining a strong noninterest-bearing deposit base [121][123] Question: Capital deployment opportunities - Management indicated that they are considering various capital deployment options, including securities repositioning and potential acquisitions, but emphasized a preference for organic growth [128][150]

Financial Data and Key Metrics Changes - The company reported a net income of $6 million for Q4, translating to $0.38 per share, which is an increase from the prior quarter [9] - Net interest income rose by 4% from the previous quarter to $25.2 million, driven by a 10 basis point increase in the net interest margin [9][10] - The total risk-based capital ratio increased to 16.5% and the tangible common equity (TCE) ratio stood at 9.93% [8] Business Line Data and Key Metrics Changes - Loan originations for the quarter totaled $54 million, with outstanding balances at $47 million, showing a diversified mix of commercial and commercial real estate loans [6] - Non-accrual loans and classified loans both declined due to paydowns, with no new issues emerging [5][12] - The average yield on loans increased by 9 basis points during Q4, with expectations for continued improvements in the coming quarters [10] Market Data and Key Metrics Changes - The company experienced a decline in total deposits to $3.2 billion at the end of Q4, attributed to seasonal outflows typical for the quarter [11] - Non-interest bearing deposits remained high at 43% of total deposits, reflecting the strength of the relationship banking model [8] Company Strategy and Development Direction - The company aims to capitalize on improved economic conditions and loan demand, with a strong pipeline of diversified opportunities across markets and industries [14][15] - Investments in technology are expected to enhance efficiency and client service, contributing to revenue growth and profitability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial performance in 2025, citing strong capital and liquidity positions [14] - The company is focused on organic growth while remaining open to opportunistic acquisitions, emphasizing the importance of maintaining a disciplined approach to underwriting and pricing [78][102] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 79th consecutive quarterly dividend [13] - The transition to a new CFO was highlighted, with management expressing confidence in the continuity of operations [19] Q&A Session Summary Question: Comments on margin and asset repricing opportunities - Management indicated an expected improvement in net interest margin (NIM) due to loan repricing and deposit rate adjustments [28][34] Question: Loan growth pipeline and payoff clarity - The pipeline for Q1 is reported to be 40% higher than the previous year, with expectations for originations to outpace payoffs [36][37] Question: Seasonal dynamics in deposits - Seasonal fluctuations were noted as the primary reason for deposit changes, with proactive efforts to reduce deposit costs showing minimal attrition [81] Question: Capital deployment opportunities - Management discussed various capital deployment strategies, including securities repositioning and potential M&A, while emphasizing a preference for organic growth [86][102]

Core Viewpoint - Bank of Marin (BMRC) reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and showing an increase from $0.30 per share a year ago, indicating a positive earnings surprise of 11.76% [1][2] Financial Performance - The company posted revenues of $27.98 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 1.45%, but represented an increase from $20.98 million year-over-year [2] - Over the last four quarters, Bank of Marin has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates during the same period [2] Stock Performance and Outlook - Bank of Marin shares have increased by approximately 0.9% since the beginning of the year, while the S&P 500 has gained 3.7%, indicating underperformance relative to the broader market [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for Bank of Marin is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $28.56 million, and for the current fiscal year, it is $1.53 on revenues of $121.05 million [7] Industry Context - The Banks - West industry, to which Bank of Marin belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook that can significantly impact stock performance [8]

Financial Performance - Bank of Marin Bancorp reported earnings of $6.0 million for Q4 2024, a 30.43% increase from $4.6 million in Q3 2024, with diluted earnings per share rising 35.71% to $0.38[1][2] - Net income for Q4 2024 was $6,001,000, an increase from $4,570,000 in Q3 2024 and a significant recovery from a loss of $8,409,000 in Q4 2023[38] - The net loss for 2024 was $8.4 million, compared to a net income of $19.9 million in 2023, with comparable net income (non-GAAP) at $14.5 million[32] - The diluted loss per share (GAAP) for 2024 was $(0.52), while the comparable diluted earnings per share (non-GAAP) was $0.90[32] - Basic net income per share for Q4 2024 was $0.38, up from $0.28 in Q3 2024 and $0.04 in Q4 2023[42] Interest Income and Margin - The net interest margin improved by 10 basis points to 2.80% in Q4 2024, driven by a reduction in deposit rates, while loan yields increased by 9 basis points[4] - Total interest income for Q4 2024 was $36,476,000, an increase of 0.43% from $36,319,000 in Q3 2024 and 2.97% from $35,423,000 in Q4 2023[42] - Tax-equivalent net interest income for the year ended December 31, 2024, was $95,362 thousand, with a margin of 2.63%[45] - Reported net interest income for the year ended December 31, 2024, was $94,660 thousand, maintaining a margin of 2.61%[45] Asset and Loan Management - Total loans decreased by $6.8 million to $2.083 billion as of December 31, 2024, with organic originations totaling $47.1 million in Q4 2024, up from $28.2 million in Q3 2024[6][7] - Total assets decreased to $3,701,335,000 as of December 31, 2024, down from $3,792,833,000 in Q3 2024 and $3,803,903,000 in Q4 2023[40] - The allowance for credit losses to total loans ratio was 1.47% as of December 31, 2024, unchanged from Q3 2024 but up from 1.21% in Q4 2023[40] - Non-accrual loans decreased to $33.9 million, or 1.63% of the loan portfolio, down from 1.91% in the previous quarter[8][9] Expenses and Efficiency - Non-interest expenses decreased to $18.3 million in Q4 2024 from $20.4 million in the prior quarter, with a $1.4 million reduction in salaries and related benefits[30] - Total non-interest expenses increased to $81.8 million in 2024 from $79.5 million in 2023, with significant increases in professional services and salaries[31] - The efficiency ratio (GAAP) for 2024 was 111.62%, compared to 73.76% in 2023, indicating increased operational inefficiencies[32] - The efficiency ratio improved to 65.53% in Q4 2024, compared to 75.18% in Q3 2024 and 111.62% in Q4 2023[38] Capital and Dividends - The total risk-based capital ratio for Bancorp was 16.54% as of December 31, 2024, compared to 16.40% at the end of Q3 2024[21] - A cash dividend of $0.25 per share was declared, marking the 79th consecutive quarterly dividend paid by Bancorp[9] Non-Interest Income - Non-interest income for Q4 2024 was $2.8 million, a decrease of $135 thousand from Q3 2024, primarily due to the disbursement of a customer's trust assets[28] - Non-interest income for 2024 showed a loss of $21.4 million, a decrease of $26.3 million from $5.0 million in 2023, largely due to a $32.5 million net loss on the sale of investment securities[29] - Non-interest income totaled $2,753,000 in Q4 2024, compared to a loss of $3,283,000 in Q4 2023, indicating a significant recovery in non-interest revenue[42] Share Repurchase - The company repurchased 220,000 shares for $4.2 million at an average price of $19.21 per share in Q3 2024, with no repurchases in Q4 2024 or in 2023[33]

Core Insights - Bank of Marin (BMRC) is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year increase of 13.3% [1] - Anticipated revenues for the quarter are projected at $28.4 million, which represents a 35.3% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Financial Metrics - Analysts predict the 'Efficiency Ratio' will reach 70.6%, a significant improvement from the previous year's value of 91.9% [4] - The 'Average Balance - Total interest earning assets' is estimated to be $3.56 billion, slightly down from $3.78 billion a year ago [4] - The consensus estimate for 'Total non-accrual loans' is $40.87 million, compared to $7.99 million reported in the same quarter last year [4] - 'Net interest income' is projected at $25.43 million, up from $24.26 million year-over-year [5] - 'Net Interest Income (FTE)' is expected to reach $25.49 million, compared to $24.46 million from the previous year [5] Market Performance - Bank of Marin shares have experienced a -0.7% change in the past month, contrasting with the Zacks S&P 500 composite's +2.1% performance [6] - With a Zacks Rank 2 (Buy), BMRC is anticipated to outperform the overall market in the near term [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Bank of Marin (BMRC) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The earnings report is expected on January 27, 2025, with a consensus EPS estimate of $0.34, reflecting a +13.3% year-over-year change, and revenues projected at $28.4 million, up 35.4% from the previous year [3][4]. Estimate Revisions - The consensus EPS estimate has been revised 2.15% higher in the last 30 days, indicating a positive reassessment by analysts [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +6.67% for Bank of Marin, suggesting a strong likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, Bank of Marin had an earnings surprise of +3.70%, with only one earnings beat in the last four quarters [12][13]. Industry Comparison - East West Bancorp (EWBC), another player in the Zacks Banks - West industry, is expected to post earnings of $2.13 per share, indicating a +5.5% year-over-year change, with revenues projected at $654.31 million, down 0.1% from the previous year [17][18].

Financial Performance - Net income for Q3 2024 was $4.6 million, a significant recovery from a net loss of $21.9 million in Q2 2024, with diluted earnings per share at $0.28 compared to a loss per share of $(1.36) in the previous quarter [144]. - Net income for the three months ended September 30, 2024, was $4,570,000, compared to a net loss of $21,902,000 for the previous quarter [234]. - Comparable diluted earnings per share (non-GAAP) for the three months ended September 30, 2024, was $0.28, up from $0.06 in the previous quarter [234]. - Return on average assets (GAAP) improved to 0.48% for the three months ended September 30, 2024, compared to a negative 2.35% for the three months ended June 30, 2024 [234]. - Return on average equity (GAAP) was 4.17% for the three months ended September 30, 2024, recovering from a negative 20.36% for the three months ended June 30, 2024 [234]. Interest Income and Margin - Net interest income for Q3 2024 totaled $24.3 million, an increase of $1.8 million from the previous quarter due to a favorable reallocation of earning assets [169]. - The tax-equivalent net interest margin improved to 2.70% in Q3 2024, up from 2.52% in the prior quarter, driven by higher average cash and loan balances [170]. - For the first nine months of 2024, net interest income was $69.4 million, down from $78.5 million in the same period last year, primarily due to a smaller balance sheet and higher deposit costs [171]. - The tax-equivalent net interest margin for the first nine months of 2024 was 2.57%, compared to 2.66% for the same period in 2023, with higher deposit costs reducing the margin by 77 basis points [172]. Deposits and Loans - Total deposits rose by $19.2 million to $3.309 billion as of September 30, 2024, with non-interest bearing deposits comprising 44.5% of total deposits [147]. - Loan balances increased to $2.090 billion, with additions totaling $140.4 million in the first nine months of 2024, compared to $90.3 million for the same period in 2023 [150]. - Total loans increased to $2.090 billion as of September 30, 2024, up from $2.074 billion at December 31, 2023, reflecting a growth of $16.4 million [203]. - Non-accrual loans increased to $39.9 million, or 1.91% of total loans, as of September 30, 2024, compared to $8.0 million, or 0.39% at December 31, 2023 [152]. Credit Losses and Provisions - A provision for credit losses on loans was $5.6 million in the first nine months of 2024, compared to $1.3 million for the same period last year, raising the allowance for credit losses to 1.47% of total loans [151]. - There was no provision for credit losses on loans in Q3 2024, while a provision of $5.2 million was recorded in Q2 2024 [178]. - The allowance for credit losses on loans increased by $5.5 million for the nine months ended September 30, 2024, compared to $1.3 million for the same period in 2023 [179]. Non-Interest Income and Expenses - Non-interest income decreased to $2,888,000 from $(29,755,000) in the previous quarter [159]. - Non-interest income for the third quarter of 2024 was $2.9 million, a significant recovery from a loss of $29.8 million in the prior quarter, primarily due to a $32.5 million pre-tax net loss on the sale of investment securities in the second quarter [186]. - Total non-interest expense decreased to $20.4 million in the third quarter of 2024 from $21.9 million in the prior quarter, primarily driven by a $1.5 million reduction in salaries and related benefits [191]. Capital and Liquidity - Bancorp's tangible common equity to tangible assets (TCE ratio) was 9.72% as of September 30, 2024, with a share repurchase of $4.2 million during the quarter, increasing book value per share to $27.17 [155]. - The total risk-based capital ratio for Bancorp was 16.40% at September 30, 2024, down from 16.89% at December 31, 2023, due to losses on securities sales [216]. - Net available contingent funding sources totaled $1.934 billion, which is 58% of total deposits and 208% of estimated uninsured deposits as of September 30, 2024 [222]. - Cash and cash equivalents increased by $198.7 million in the first nine months of 2024, with significant liquidity sources including $355.9 million from investment securities [225]. Market Conditions and Regulatory Environment - The Federal Reserve lowered the target federal funds rate by 50 basis points to a range of 4.75% to 5.00% in September 2024, indicating potential further rate cuts [176]. - The company is continuously monitoring market rates to enhance performance and returns to shareholders [176].