Financial Data and Key Metrics Changes - The company recorded net income of $9.4 million or $0.37 per diluted share, with a return on average assets (ROA) of 1% for Q1 2025 [12] - Excluding the OREO write down, EPS would have been $0.40 per share or an ROA of 1.07% [12] - Net interest margin increased to 3.65% from 3.54% in the previous quarter, supported by a decline in interest-bearing deposit costs [14] - Nonperforming assets to total assets declined to 0.42% from 0.46% at the end of Q4 2024 [15] Business Line Data and Key Metrics Changes - Loan growth was strong at $92 million, representing a 12% annualized growth rate, with significant contributions from asset-based lending, private equity, and small business lending [8][25] - The asset-based lending portfolio increased to just over $90 million, while the private equity fund banking portfolio grew to $128 million [10] - Small business lending, including Business Express and SBA loans, reached $91 million [10] Market Data and Key Metrics Changes - Total deposits increased by $64 million or 8% from the previous quarter, with noninterest-bearing deposits growing significantly [21] - The noninterest-bearing demand deposits ratio rose to 17.2%, up from 15.8% a year ago [21] - Time deposits increased by $47 million, supported by brokered funding [22] Company Strategy and Development Direction - The company aims to focus on deposit generation and maintaining profitable relationships in a competitive environment [20] - Plans for branch expansion include opening new branches in New Jersey and relocating a Florida branch [22] - The company is investing in technology, including the rollout of a Salesforce CRM tool to enhance customer relationship management [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan demand, anticipating continued activity in construction and refinancing despite potential economic slowdowns [41][42] - The company is focused on maintaining a strong credit profile and managing risks associated with new lending units [88] - Management believes the current allowance for credit losses is adequate, with a strong coverage ratio relative to peers [51] Other Important Information - The efficiency ratio remained strong at 57.65%, below 60% for 23 consecutive quarters [18] - The company continued its buyback program and maintained a stable cash dividend [19] Q&A Session Summary Question: Loan growth in the quarter and future lending environment - Management noted that much of the loan activity is tied to ongoing projects, with expectations for continued demand in the near term [41][42] Question: Buyback activity and future plans - Management indicated that buyback activity is on the radar, especially while the stock trades at lower levels [47][48] Question: Credit reserves and economic outlook - Management feels comfortable with the current allowance for credit losses, indicating a strong coverage ratio [50][51] Question: OREO write down details - The write down was related to an acquired loan in New York City, with management taking a conservative approach to ensure full coverage [56][57] Question: NIM and funding costs - Management discussed expectations for stable net interest margin, with some headwinds and tailwinds offsetting each other [66] Question: Growth targets for C&I lending - Management provided growth targets for asset-based lending and private equity, indicating potential for significant increases in the coming years [74][75]

Core Viewpoint - Timberland Bancorp, Inc. reported a net income of $6.76 million for the quarter ended March 31, 2025, reflecting a slight decrease from the previous quarter but a significant increase compared to the same quarter last year, driven by improved net interest margins and a solid capital position [1][6][10]. Earnings Highlights - Net income for the first six months of fiscal 2025 increased 13% to $13.62 million, or $1.71 per diluted common share, compared to $12.00 million, or $1.47 per diluted common share for the same period in fiscal 2024 [2][6]. - Quarterly earnings per diluted common share (EPS) decreased 1% to $0.85 from $0.86 in the preceding quarter but increased 21% from $0.70 in the comparable quarter one year ago [5][6]. - The net interest margin (NIM) expanded to 3.79% for the current quarter, up from 3.64% in the previous quarter and 3.48% a year ago [5][10]. Balance Sheet Highlights - Total assets increased 1% to $1.93 billion at March 31, 2025, compared to $1.91 billion at December 31, 2024, and also increased 1% year-over-year [15][30]. - Total deposits rose by $20 million, or 1%, during the quarter to $1.65 billion, with increases in various account types including certificates of deposit and checking accounts [25][27]. - Total shareholders' equity increased 1% to $252.52 million, driven by net income and partially offset by dividends and stock repurchases [29][30]. Operating Results - Operating revenue for the current quarter increased 1% to $19.90 million from $19.67 million in the preceding quarter and increased 9% from $18.25 million a year ago [8]. - Net interest income rose by $243,000, or 1%, to $17.21 million for the current quarter, with a 10% increase year-over-year [9][10]. - Non-interest income decreased slightly by less than 1% to $2.69 million for the current quarter but increased 3% from the comparable quarter one year ago [12]. Loan Portfolio and Asset Quality - The loan portfolio grew by 1% from the prior quarter and 4% year-over-year, with net loans receivable at $1.42 billion [17][31]. - The non-performing assets to total assets ratio improved to 0.13% at March 31, 2025, down from 0.16% at December 31, 2024, and 0.19% a year ago [31][32]. - Provisions for credit losses on loans totaled $237,000 for the quarter, reflecting growth in the loan portfolio [10][31]. Dividend Announcement - The Board of Directors announced a 4% increase in the quarterly cash dividend to $0.26 per share, marking the 50th consecutive quarter of dividend payments [3][5].

Financial Performance - The company reported net income available to common shareholders of $130.9 million, or $0.70 per diluted common share[5] - Adjusted net income available to common shareholders was $131.4 million, or $0.71 per diluted common share[3, 5] - Quarterly adjusted pre-tax pre-provision net revenue (PPNR) reached $189.9 million, a $5.9 million increase from Q4 2024[5] - Net interest margin expanded by 8bps from the previous quarter to 3.46%[3, 5] - The adjusted efficiency ratio improved to 57.6%, a +151bps change compared to Q4 2024[3] Loan and Deposit Portfolio - Period end loans totaled $34.1 billion, reflecting a 3.7% annualized growth in Q1 2025[3] - Net organic loan growth was $309.9 million for 1Q25, or 3.7% on an annualized basis[5] - Total deposits were $40.3 billion as of March 31, 2025, a decline of $0.2 billion from $40.5 billion at the end of Q4 2024[6, 8] - Noninterest bearing deposits accounted for 21% of total deposits at the end of Q1 2025[6] Credit Quality - Net charge-offs for 1Q25 were $23.0 million, or 0.27% of average net loans and leases on an annualized basis[24, 27] - Total nonaccrual loans and leases improved to $236 million, or 0.69% of total loans[28, 29] - Allowance for credit losses was 1.34% of net loans and leases at March 31, 2025[27] Capital and Merger - Total shareholders' equity was $5.7 billion at March 31, 2025[51, 53] - Tangible book value per common share increased to $22.30 per share at March 31, 2025, up $2.82 per share, or 14.5%, compared to March 31, 2024[53] - The company received approvals to complete merger with FCB Financial Corp, expected to close May 1, 2025[5]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [6][36] - Loans grew by over $650 million and deposits increased by over $1.1 billion, with a net interest margin of 3.56%, which is five basis points higher than the previous quarter [7][11] - Charge-offs for the quarter decreased to 11 basis points, and the provision for credit losses was $24 million, consistent with prior quarters [8][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, while deposit growth was approximately 8% on an annualized basis [11] - Non-interest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [17] - Non-interest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [18][19] Market Data and Key Metrics Changes - Non-interest bearing deposits represented 21% of total deposits at the end of the quarter, remaining stable over the last five quarters [12] - The company anticipates strong loan growth in the second quarter, particularly in the premium finance segment, which is expected to grow close to $1 billion [26] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio, with a CET1 ratio of slightly over 10% [36] - The management emphasized the importance of differentiated client service and maintaining a strong local presence to navigate economic uncertainties [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, clients remain generally encouraged about the local economy and their ability to perform normally [45] - The company is focused on proactive communication with clients to address concerns related to economic conditions, tariffs, and funding cuts [34][46] Other Important Information - The company received 14 Coalition Greenwich Awards and was recognized for best customer service in Illinois for the fourth consecutive year [36] - The tangible book value per common share increased to $78.83 compared to $75.39 in the prior quarter [23] Q&A Session Summary Question: How prevalent is uncertainty from borrowers and its impact on growth outlook? - Management acknowledged that borrowers are cautious but remain generally encouraged about the local economy, maintaining their loan growth expectations [45][46] Question: Can you walk us through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented a qualitative overlay due to spikes in credit spreads and equity market factors at the end of the quarter [52][69] Question: Any changes in competitive pricing on new home production? - Management noted that competition remains rational, with slight declines in rates from competitors, but they expect to balance this with strong loan growth [58][60] Question: How is new client acquisition in wealth management going? - The company is transitioning to a new platform that is expected to improve capabilities for financial advisors, which should enhance growth in the wealth management business [72][73] Question: Thoughts on M&A and growth through acquisition? - Management indicated ongoing M&A conversations and expressed confidence in their ability to pursue attractive acquisition opportunities [76] Question: How should we think about the source of deposit growth going forward? - Management expects to continue growing deposits to match loan growth, with a stable mix of commercial and consumer relationships [82][84]

Financial Data and Key Metrics Changes - The diluted earnings per share for the first quarter were 68 cents, with annualized loan growth exceeding 4% compared to the linked quarter [6][7] - Asset quality metrics improved, including a reduction in the annualized net charge-off rate to 52 basis points from 61 basis points in the previous quarter [9][10] - Deposit balances grew by 2%, driven by higher money market and governmental deposit account balances, while core deposit growth exceeded 3% [7][19] - The book value per share increased by 2% to $31.9, and tangible book value per share improved by 4% to $20.68 [7][21] - The net interest income reported was down 1% compared to the linked quarter, with a net interest margin decrease of three basis points [8][15] Business Line Data and Key Metrics Changes - Commercial real estate loans contributed $75 million to loan growth, while residential real estate loans increased by $13 million and consumer indirect loans grew by $10 million [13][14] - The small ticket leasing portfolio experienced net charge-offs, which were a significant driver of the overall charge-off rate [9][40] - Fee-based income grew over 2%, primarily due to performance-based insurance commissions [16] Market Data and Key Metrics Changes - The overall allowance for credit losses increased to 1.01% of total loans, with a provision for credit losses rising nearly $4 million compared to the linked quarter [11][12] - The company noted that despite national declines in consumer confidence, there was no material impact on consumer demand in their lines of business [12] Company Strategy and Development Direction - The company announced an increase in its quarterly dividend for the tenth consecutive year, reflecting a commitment to shareholder returns [8][21] - Management emphasized a focus on maintaining high standards for associates and a commitment to community service, which they believe drives solid results and shareholder value [24][25] - The company is actively engaged in evaluating acquisition opportunities but is committed to a strategic patience approach, preferring to find the right partner rather than rushing into a deal [68][112] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding loan growth despite macroeconomic uncertainties, citing strong visibility into the second quarter pipeline [35][36] - The company anticipates a normalization of the provision for credit losses in the second half of 2025, aligning with historical rates [27][94] - Management noted that they are prepared to adjust operating expenses based on revenue scenarios, maintaining flexibility in their expense management [99] Other Important Information - The efficiency ratio increased to 60.7% from 59.6% in the linked quarter, driven by higher costs and lower accretion income [18] - The investment portfolio declined by $40 million, representing 20.3% of total assets, as proceeds were reinvested into loan growth [18][19] Q&A Session Summary Question: Loan growth outlook and risks - Management indicated strong visibility into the second quarter pipeline and expressed optimism despite potential impacts from tariffs [35][36] Question: North Star leasing and charge-offs - Management expects charge-offs to continue declining throughout the year, with a focus on improving credit quality [40][41] Question: Fee income guidance reduction - The reduction was attributed to softer performance in insurance income and changes in mortgage-related income expectations [50][51] Question: Consumer behavior in response to tariffs - Management noted an increase in indirect lending and consumer deposits, indicating a shift in consumer behavior towards securing loans before potential price increases [64][65] Question: Acquisition strategy and market expansion - Management expressed a desire to expand in existing markets and evaluate opportunities in adjacent regions, emphasizing a strategic approach to acquisitions [68][112]

Financial Data and Key Metrics Changes - The company reported net income of $11.3 million, or 67 cents per diluted share, for the first quarter of 2025 [10] - Tangible book value increased to $23.61 per share, representing over 9% annualized growth quarter over quarter [10] - Total revenue reached $46.8 million, with net interest income expanding as anticipated [12] Business Line Data and Key Metrics Changes - Loan growth was at a 9% annualized pace for Q1, meeting expectations, while deposit growth was at 10% quarter over quarter annualized [11] - Noninterest income for the quarter totaled $8.6 million, exceeding guidance, driven by strong insurance and mortgage banking revenues [20] - Operating expenses remained stable at just over $32 million, consistent with the previous quarter [20] Market Data and Key Metrics Changes - The average portfolio yield, including fees, was 5.97%, slightly down from the previous quarter [15] - The loan to deposit ratio held steady at 83%, providing flexibility for future growth [15][17] - The company anticipates a net interest margin of around 3.25% for Q2 2025, with expectations of margin expansion of 2 to 3 basis points quarterly throughout the year [19] Company Strategy and Development Direction - The company is focused on leveraging its growth phase, aiming for continued EPS growth and achieving near-term revenue targets [24] - There is an emphasis on recruiting talented team members to enhance revenue-generating capabilities, particularly in private banking and treasury management [26] - The company remains committed to organic growth while being open to potential M&A opportunities if they align with strategic goals [125][126] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth prospects despite market volatility, citing strong client relationships and business performance [34][35] - The company is closely monitoring the impact of tariffs on clients but has received positive feedback regarding order volumes and pricing stability [37][38] - Management believes that credit quality remains strong, with nonperforming assets at 0.19% of total assets [20] Other Important Information - The effective corporate tax rate for the quarter was approximately 17%, with expectations of stabilization between 18% to 19% going forward [21] - The company's consolidated TCE ratio increased to 7.6%, and total risk-based capital ratio remained well above regulatory standards at 11.2% [21] Q&A Session Summary Question: Customer sentiment and loan growth outlook - Management noted strong market conditions and positive client feedback, indicating confidence in maintaining loan growth [34][35] Question: Balance sheet leverage and loan to deposit ratio - The company has room to increase its loan to deposit ratio while ensuring prudent growth and maintaining appropriate credit structures [42][43] Question: Share repurchase plans - The company has approximately $1.5 million left for share repurchases and will consider buying back shares as valuations improve [49][50] Question: Margin expectations with potential Fed rate cuts - Management indicated that they are well-positioned to benefit from Fed rate cuts, with potential upside to margin expansion if cuts occur earlier than expected [58][60] Question: Fee income outlook and performance of investment services - The company expects fee income in the low to mid $8 million range for Q2, with strong performance in insurance and mortgage banking contributing to growth [96][100] Question: Equipment financing and leasing business line - Management expressed satisfaction with the growth of the equipment financing segment, indicating plans for continued expansion in this area [131][132]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [5] - The net interest margin increased to 3.56%, up five basis points from the previous quarter, reflecting disciplined loan and deposit pricing [6][11] - Loans grew by over $650 million and deposits increased by over $1.1 billion during the quarter [5][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, consistent with prior guidance, while deposit growth was approximately 8% on an annualized basis [9][10] - Noninterest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [13] - Noninterest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [14] Market Data and Key Metrics Changes - Nonperforming loans (NPLs) as a percentage of total loans decreased slightly from 36 basis points to 35 basis points, indicating stable credit quality [19] - Charge-offs for the quarter were $12.6 million or 11 basis points, down from $15.9 million or 13 basis points in the previous quarter [19] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio, with the CET1 ratio ending the quarter at slightly over 10% [24] - The management emphasized a focus on differentiated client service and maintaining a strong competitive position in the market [26][27] Management's Comments on Operating Environment and Future Outlook - Management noted a fair amount of uncertainty in the market, which causes clients to pause before making major investments, but they remain optimistic about loan growth in the second quarter [26][27] - The company is committed to proactive engagement with clients to navigate periods of uncertainty and believes that its strong underwriting standards will mitigate potential impacts from economic challenges [22][23] Other Important Information - The company received 14 Coalition Greenwich Awards for performance with commercial clients and was recognized for best customer service in Illinois for the fourth consecutive year [25] - The management highlighted the importance of client feedback in improving service levels and maintaining competitive advantage [25] Q&A Session Summary Question: How prevalent is uncertainty from borrowers, and is it impacting growth outlook? - Management acknowledged that borrowers are cautious and pausing due to uncertainty but remain encouraged about the local economy and do not expect to change loan growth expectations [32][34] Question: Can you walk through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented an uncertainty overlay due to spikes in credit spreads and equity market factors at the end of the quarter [36][38] Question: How should we think about the source of deposit growth going forward? - The company plans to grow deposits to match loan growth, maintaining a stable mix and focusing on adding new clients [72][74]

Financial Data and Key Metrics Changes - The company reported quarterly net income of $189 million and record net interest income of $526 million, despite having two fewer business days compared to the prior period [6][36] - Loans grew by over $650 million and deposits increased by over $1.1 billion, with a net interest margin of 3.56%, which is five basis points higher than the previous quarter [7][11] - Charge-offs for the quarter decreased to 11 basis points, and the provision for credit losses was $24 million, consistent with prior quarters [8][9] Business Line Data and Key Metrics Changes - Loan growth was 6% on an annualized basis, while deposit growth was approximately 8% on an annualized basis [11] - Non-interest income was relatively stable, totaling $116.6 million, with increases in net security gains and fees from covered call options offset by lower wealth management revenue [17] - Non-interest expenses totaled $366.1 million, down approximately $2.4 million from the prior quarter, primarily due to lower salary and employee benefit expenses [18][19] Market Data and Key Metrics Changes - Non-interest bearing deposits represented 21% of total deposits at the end of the quarter, remaining stable over the last five quarters [12] - The company anticipates strong loan growth in the second quarter, particularly in the premium finance segment, which is expected to grow close to $1 billion [26] Company Strategy and Development Direction - The company announced an increase in its dividend to $2 per share on an annualized basis and continues to grow its capital ratio steadily [36] - The management emphasized a focus on differentiated client service and maintaining a stable net interest margin despite economic uncertainties [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, clients remain generally encouraged about the local economy and their ability to perform normally [45] - The company is committed to proactive engagement with clients to navigate periods of uncertainty and believes that its strong underwriting standards will limit the impact of macroeconomic challenges [34][40] Other Important Information - The company received 14 Coalition Greenwich Awards and was recognized for best customer service in Illinois for the fourth consecutive year [36] - The tangible book value per common share increased to $78.83 compared to $75.39 in the prior quarter [23] Q&A Session Summary Question: How prevalent is uncertainty from borrowers and its impact on growth outlook? - Management acknowledged that borrowers are cautious but remain generally encouraged about the local economy, maintaining their loan growth expectations [45][46] Question: Can you walk us through the thought process on reserve changes? - The management explained that while the baseline economic scenario improved, they implemented a qualitative overlay due to spikes in credit spreads and equity market factors at the end of the quarter [52][69] Question: Any changes in competitive pricing on new home production? - Management noted that competition remains rational, with slight declines in rates, but they are confident in their market position [58][60] Question: How is new client acquisition in wealth management going? - Management indicated that they are in the process of switching platforms to enhance capabilities, expecting improvement in the wealth management business moving forward [72] Question: Thoughts on M&A and growth through acquisition? - Management expressed confidence in their ability to pursue M&A opportunities and indicated they have the financial resources to do so [76]

Financial Data and Key Metrics Changes - The company reported a loan growth of $308 million or 5.1% and a deposit growth of $465 million or 7.8% in Q1 2025 [7][18] - The net interest margin (NIM) expanded by two basis points to 3.68% from 3.66% in the prior quarter, marking the sixth consecutive quarter of margin expansion [7] - Earnings per share (EPS) was reported at $1.45, a decrease of $0.43 compared to the prior period [21] - Tangible book value per share increased by more than 2.3% to $65.80, marking the ninth consecutive quarter of book value accretion [9] Business Line Data and Key Metrics Changes - Total loan originations and draws were approximately $490 million at a weighted average coupon (WAC) of about 7.84% [16] - The cost of interest-bearing deposits declined by 32 basis points, while the total deposit cost decreased by six basis points [19] - Non-interest income decreased by $763,000 primarily due to the absence of GPG fee income [26] Market Data and Key Metrics Changes - The company experienced a net outflow of $35 million in GPG deposits, primarily related to the return of reserve balances and check clearing [20] - The EB-5 related deposits increased by $100 million this quarter, totaling approximately $400 million [65] Company Strategy and Development Direction - The company is focused on capturing additional market share through traditional channels while exploring strategic opportunities to enhance shareholder value [14] - The ongoing investment in a new technology stack is expected to be fully integrated by the end of 2025, supporting the bank's growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties, citing strong liquidity, capital, and earnings [6] - The company anticipates loan growth of 10% to 12% for the year, with a full-year NIM expected to be between 3.70% and 3.75% [28] Other Important Information - The effective tax rate for the quarter was approximately 30% [28] - The company has not identified any broad-based negative trends affecting its loan portfolio [11] Q&A Session Summary Question: Clarification on total operating expenses for Q2 - The CFO indicated that total operating expenses for Q2 will be closer to $45 million, including adjustments for IT spending [35] Question: Remaining GPT-related expense or income items - The CFO confirmed that there will be no remaining fee-related income or expenses from the GPT business [37] Question: Implications of the gold card program on the EB-5 business - Management believes the gold card program could serve as a complementary product to the EB-5 program without disrupting core business [40][41] Question: Seasonal patterns in deposit growth - Management stated there are no seasonal patterns affecting deposit growth [42][44] Question: Discussion on potential dividends - Management confirmed that discussions regarding the possibility of paying a small dividend have been ongoing [46] Question: Trends in non-owner occupied CRE customer occupancy - Management reported that the non-owner occupied CRE portfolio remains stable and diversified [50] Question: Incremental competitive pressures on loan or deposit sides - Management indicated that there is no significant competition in New York City [55]

Financial Data and Key Metrics Changes - The company reported net interest income of $123.5 million, which is $21 million higher than the first quarter of 2024 and slightly higher than the fourth quarter of 2024 [3] - Tangible book value increased by 3% since last quarter and 13% year-over-year, ending at $30.31 per share [2] - The common equity Tier 1 capital ratio stood at 11.4% and the risk-based capital ratio at 12.9% for the quarter [2] - The provision expense was $6.6 million, up $2.1 million from the first quarter of 2024 and $900,000 from the fourth quarter [6] - The allowance for credit losses ended the quarter at just over $165 million, an increase of about $576,000 from the fourth quarter [7] Business Line Data and Key Metrics Changes - Non-interest income decreased by about 7% compared to the first quarter of 2024, primarily due to a one-time benefit recorded in 2024, but normalized rates showed a 7% increase driven by higher service charges on deposit accounts [8] - Non-interest expense was down $789,000 compared to the fourth quarter of 2024 and flat compared to the first quarter of 2024, reflecting expense discipline despite a 5% growth in employee numbers [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio stands at 89%, with an adjusted ratio of 77% when including correspondent Fed funds purchased [1] - The company anticipates over $1.9 billion in asset repricing over the next 12 months [6] Company Strategy and Development Direction - The company is focused on organic loan and deposit growth, priced competitively and profitably, with expectations of loan growth in low double digits [12][36] - There is an ongoing evaluation of new producers and potential hires to support expansion efforts [45] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the durability of Main Street compared to Wall Street, indicating a mixed impact from current market uncertainties [26] - The company does not foresee significant impacts from tariffs and remains optimistic about the balance of the year [28][32] Other Important Information - The company experienced a significant increase in Fed balances, averaging $380 million, which aids liquidity but negatively impacts margin calculations [2][4] - The company is looking for additional avenues to improve income without increasing risk, given the excess liquidity [61] Q&A Session Summary Question: How does the company view deposit trends for the rest of the year? - Management indicated that municipal deposits may decline as the year progresses, with correspondent balances leveling off after tax season [21][22] Question: What is the outlook for loan growth and demand post-pandemic? - Management noted a potential slowdown but remains optimistic about steady, granular growth across various markets [26][38] Question: What is the current loan pricing dynamic? - Loan pricing has remained steady, but management expressed dissatisfaction with current pricing levels, indicating they should be higher [43] Question: What is the expected range for non-interest expenses for the remainder of the year? - Non-interest expenses are expected to be in the range of $46 to $46.5 million, excluding potential new hires [45] Question: Can you provide details on non-performing loans? - Non-performing loans are primarily in the medical sector, including a hospital and a doctor with cash flow issues but good collateral [48][52]