
Financial Data and Key Metrics Changes - Net income for the second quarter was 0.48 per diluted share, with a return on average assets of 0.77% and return on average stockholders' equity of 7.5% [24] - Net interest income decreased by 4% from the first quarter to 8.1 million [19][25] - Non-interest expenses declined by 3.2% to 274 million, with a weighted average interest rate of 8.31% [30] - C&I production rose by 16% sequentially and 62% year-over-year, contributing to a 3.6% increase in the C&I portfolio [26] - SBA loan production reached 40 million to 30 million, down 43% from the previous quarter due to lower demand [15] Market Data and Key Metrics Changes - Demand deposit accounts grew by 5.6% on an annualized basis, now comprising 31% of total deposits [9][25] - Corporate Korea production was 1.2 billion, up 15% on an annualized basis [15] Company Strategy and Development Direction - The company continues to execute its core relationship banking model while diversifying and expanding its loan portfolio and deposit franchise [6] - A new branch is planned to open in the Atlanta Metropolitan region later this year, indicating geographic expansion [68] - The company completed the consolidation of three branches, part of a strategy to maximize growth and generate cost savings [12][97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive ongoing growth despite broader macroeconomic uncertainties [39][40] - The loan pipeline is healthy, with expectations for low to mid-single-digit loan growth this year [68] - Management noted that asset quality remains strong, with net loan charge-offs low at 12 basis points of average loans annualized [37] Other Important Information - The tangible book value per share at the end of the second quarter was 16.05 [65] Q&A Session Summary Question: What drove the higher payoffs or paydowns? - Management indicated that the payoffs were higher than average this quarter, with expectations that they will return to the average range of 85 million going forward [72][73] Question: Can you provide details on the credits that migrated? - NPAs increased by approximately $5 million, primarily due to one commercial loan in foreclosure, but no loss is anticipated from that loan [75] Question: What is the outlook on deposit rates? - Management suggested that the cost of interest-bearing deposits is modestly increasing, with expectations that rates may have peaked [50][94] Question: What is the targeted loan-to-deposit ratio? - The company aims to maintain a loan-to-deposit ratio below 95%, with plans for continued loan sales to manage this ratio [100][105] Question: What are the plans for branch optimization? - The company is continuously evaluating its branch network, having closed three branches while planning to open a new one in Georgia [97][68]