BankFinancial(US:BFIN)2019-04-18 19:43Financial Data and Key Metrics Changes - The company reported a strong linked quarter NIM (Net Interest Margin) expansion without any unusual items affecting the results [8][9] - The company anticipates a cautious optimism regarding NIM expansion in the second quarter, driven by a shift towards C&I (Commercial and Industrial) loans [9][10] Business Line Data and Key Metrics Changes - Loan growth is projected to be around 5% year-over-year, with C&I leading the growth despite a slower start in the first quarter [12][14] - Multifamily loan opportunities are becoming thinner due to market maturity, impacting growth potential [13][14] - Leasing is expected to grow modestly, with a projected growth of 10% to 15% at maximum for 2019, influenced by amortization rates [24][28] Market Data and Key Metrics Changes - The company is experiencing a shift in line utilization, with expectations for longer duration projects to increase utilization rates in the future [16][17] - The competitive landscape in capital markets is intense, with some transactions occurring at zero fees, complicating the fee income outlook [52] Company Strategy and Development Direction - The company is focusing on growing the C&I portfolio while managing risks associated with leasing and multifamily loans [20][21] - There is an ongoing evaluation of smaller community bank acquisition opportunities to enhance the earning asset base and improve efficiency ratios [59] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding asset yields and funding costs, particularly with the Fed's current pause on interest rate changes [41][42] - The company expects to see improvements in asset quality and a potential recovery in ALLL (Allowance for Loan and Lease Losses) due to favorable changes in loss ratios [55][56] Other Important Information - The company plans to continue share repurchases, aiming to buy back approximately 15 million shares over the next 12 months, contingent on market conditions [57][58] - Management indicated that expenses are expected to normalize in the second quarter, with a target of around $9.5 million for the quarter [46][47] Q&A Session Summary Question: NIM expansion and its drivers - Management confirmed that there were no unusual items affecting NIM in the first quarter and expressed optimism for C&I growth in the second quarter [8][9] Question: Loan growth outlook - Management reiterated a 5% growth target for loans, with C&I expected to lead despite challenges in leasing and multifamily sectors [12][14] Question: Line utilization trends - Management noted that line utilization was lower in the first quarter but expects longer duration projects to improve utilization going forward [16][17] Question: Fee income outlook - Management acknowledged a decline in fee income but expects some recovery from line usages and capital markets transactions [52] Question: Share repurchase strategy - Management indicated that there are limited shares left under the current buyback authorization and expects the board to review and potentially expand it soon [60][61]