BankFinancial(US:BFIN)2021-04-21 17:55Financial Data and Key Metrics Changes - The net interest margin (NIM) decreased to 2.81%, with expectations of potential growth in net interest income (NII) as loan growth accelerates [7][8] - First quarter expenses are projected to be between $9.5 million and $9.75 million, with a midpoint estimate of around $9.7 million for the second quarter [9][10] Business Line Data and Key Metrics Changes - Equipment finance portfolio showed growth of approximately $37 million in the first quarter, marking the third consecutive quarter of growth [21][24] - Real estate originations have started to pick up, with expectations of reaching $40 million growth per quarter in the second and third quarters [25][27] Market Data and Key Metrics Changes - The company is seeing a robust pipeline for both equipment finance and real estate, although the pace of turning the pipeline into closed deals is slower than usual due to supply chain issues [22][27] Company Strategy and Development Direction - The company plans to increase share repurchase authorization to over 500,000 shares, indicating a proactive approach to capital management [28][29] - There are ongoing discussions about optimizing branch operations without significantly reducing the number of branches, focusing on cost savings [19][20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about loan growth, with expectations of continued positive trends in the second and third quarters [21][24] - The company aims to achieve earnings per share (EPS) in the low 20s by the end of the year, contingent on growth in the credit portfolio [44] Other Important Information - A $4 million asset related to a commercial customer went into foreclosure, but management does not expect a material financial impact from this situation [14][15] - The company has made significant provisional reserves in 2020 due to COVID-19, particularly in the multifamily and commercial real estate portfolios [35] Q&A Session Summary Question: Outlook on NII and NIM - Management indicated that NII is expected to grow with loan growth, but NIM may fluctuate based on the mix of loans [7][8] Question: Expense Outlook - Management expects first quarter expenses to be seasonally high but anticipates a slight decrease in the second half of the year [9][10] Question: Asset in Foreclosure - A $4 million asset related to a long-term customer went into foreclosure, but management does not expect a significant financial impact [14][15] Question: Loan Growth Outlook - Management is optimistic about loan growth, particularly in equipment finance and real estate, with strong pipelines for both [21][24] Question: Share Repurchase Plans - The company plans to be more active in share repurchases starting in the second quarter, especially in light of the upcoming Russell 2000 rebalancing [28][32] Question: Reserve Outlook - Management expects reserves to remain flat or potentially increase slightly depending on the mix of originations [36][37] Question: PPP Fees and EPS Expectations - Management noted that PPP fees are difficult to quantify but remains hopeful for EPS to reach the low 20s by year-end [41][44]