Financial Data and Key Metrics Changes - The company reported net income of $22.4 million for Q1 2025, translating to $0.77 per share, indicating a solid start despite economic uncertainties [4] - Net loan growth was $6.5 million, impacted by larger payoffs, while deposits decreased by $100.8 million primarily due to seasonal declines in public funds deposits [5] - The net interest margin (NIM) improved to 3.09% from 2.88% in Q4 2024, reflecting stabilization in non-interest-bearing deposits and disciplined loan pricing [6] Business Line Data and Key Metrics Changes - Non-interest income decreased by $3.2 million or 12.4% compared to Q1 2024, with contingent income in the insurance line decreasing by $700,000 [10] - Non-interest expense decreased by $746,000 or 1.5% compared to Q1 2024, demonstrating a focus on prudent expense management [11] Market Data and Key Metrics Changes - Credit quality remained strong, with non-performing assets to total assets increasing slightly by two basis points to 43 basis points, and net charge-offs remaining low at 10 basis points annualized [6] Company Strategy and Development Direction - The company plans to continue stock buybacks, having repurchased 221,760 shares during the quarter, indicating a commitment to returning capital to shareholders [7] - The management aims to navigate the loan-to-deposit ratio towards a target of 95% to 100%, acknowledging the cyclicality and seasonality of public funds [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to interest rates and geopolitical concerns, emphasizing a solid first quarter performance [4][27] - The company maintains a guidance range for fee income growth of 4% to 6% for the year, contingent on mortgage banking performance [15] Other Important Information - The Board of Directors announced a $0.01 increase in the quarterly dividend to $0.22 per share, reflecting a commitment to returning value to shareholders [6] Q&A Session Summary Question: Fee income growth expectations - Management confirmed a guidance range of 4% to 6% for fee income growth, with mortgage banking performance being a potential driver [15] Question: Loan-to-deposit ratio trends - Management indicated a long-term target of 95% to 100% for the loan-to-deposit ratio, acknowledging the seasonal fluctuations in public funds [18][20] Question: Capital return and buyback potential - Management discussed the potential for buybacks, indicating that decisions will be made quarterly based on earnings projections and regulatory capital ratios [22]