Financial Data and Key Metrics Changes - The company reported a GAAP loss per share of $1.61 compared to core earnings per share of $0.14, with a balance sheet restructuring incurring a $76,000,000 pre-tax loss or $1.74 per share after tax [7] - GAAP net interest margin (NIM) increased by 29 basis points to 2.39%, while core NIM rose by 18 basis points to 2.25% in Q4 [8][9] - Average deposits increased by 8% year over year and were flat quarter over quarter, with the loan to deposit ratio improving to 94% from 101% a year ago [10] Business Line Data and Key Metrics Changes - The company experienced a sequential expansion in NIM as funding costs declined by 34 basis points, while interest-earning assets decreased only 3 basis points [7] - Average non-interest bearing deposits increased quarter over quarter, contributing positively to NIM [10] - The total CDs amounted to $2,700,000,000, representing 37% of total deposits, with a significant portion maturing in Q1 [11] Market Data and Key Metrics Changes - The company has approximately $3,000,000,000 of deposits and $749,000,000 of loans in Asian markets, which account for about a third of its branches [28] - The company holds only a 3% market share in a $40,000,000,000 market, indicating substantial growth potential in Asian markets [28] Company Strategy and Development Direction - The company aims to increase NIM and reduce volatility, focusing on improving non-interest bearing deposits and managing interest rate risk [6][9] - Plans for branch expansion include opening two new branches in Asian markets during 2025 [44] - The company is focused on shifting the loan mix towards more relationship-based business in the commercial real estate (CRE) sector [70][72] Management's Comments on Operating Environment and Future Outlook - The operating environment is improving, with expectations for NIM expansion due to a positive slope in the yield curve [30][34] - The company anticipates slight loan growth and stable assets, with a focus on improving the mix of interest-earning assets and liabilities [32][34] - Management expressed confidence in the low risk credit profile, expecting minimal loss content within the loan portfolio [19][21] Other Important Information - The tangible common equity ratio improved quarter over quarter to 7.82%, reflecting a strong capital position [25][26] - Non-interest expense is expected to increase by approximately 5% to 8% in 2025, driven by investments in the business [33][60] Q&A Session Summary Question: What is left to be completed in the Q1 regarding the balance sheet restructuring? - The loan sales have not been completed yet, but they are expected to occur very soon within Q1 [40][41] Question: How many branches are planned for expansion and what will be the cost implications? - Two branches are planned, with an expected increase in non-interest expenses between 5% to 8% [44][45] Question: Is there a significant Durbin impact expected as the company crosses the $10,000,000,000 threshold? - There is not a significant Durbin impact anticipated, as most costs are already accounted for in the expense base [46][47] Question: What is the expected NIM by the end of the year? - The expected NIM is closer to the $230,000,000 to $240,000,000 range, which is considered a reasonable target [50] Question: How does the company plan to manage interest rate sensitivity going forward? - The company believes it can manage either upward or downward movements in interest rates without significant issues [57] Question: What are the expected loan sales for the upcoming quarter from the SBA team? - The SBA business is expected to contribute significantly in 2025, with a couple of loans anticipated to be sold in Q1 [58] Question: What were the types of charge-offs within the C and I portfolio? - The largest charge-off was related to one loan that had been fully reserved in prior quarters, with additional market color leading to a slight impairment charge [59]