
Financial Data and Key Metrics Changes - Net income for 2024 reached $62.2 million or $2.05 per diluted share, with a return on average assets of 0.83% and return on average equity of 7.97% [12] - Net interest income increased by 6.8% to $53.4 million, and net interest margin increased by 17 basis points to 2.91% [37] - Nonperforming assets as a percentage of total assets improved to 0.19%, and the allowance for credit losses remains healthy at 1.12% [18][42] Business Line Data and Key Metrics Changes - The C&I portfolio increased by 16%, driven by the USKC initiative and new relationships [13] - C&I production for the fourth quarter was $60 million, a decrease of 43% from the prior quarter, but for the full year, it increased by 50% to $275 million [31] - Residential mortgage production was $40 million for the fourth quarter, with a total of $88.4 million in residential mortgage loans sold into the secondary market throughout the year [32][14] Market Data and Key Metrics Changes - Deposits grew by 2.5% in 2024, driven by a 4.6% increase in noninterest-bearing deposits, which now account for 32.6% of total deposits [14] - Corporate Korea deposits represented 13% of total deposits and 16% of total demand deposits [35] - The mix of noninterest-bearing deposits increased from 32% to 33% during the fourth quarter [35] Company Strategy and Development Direction - The company focuses on expanding its core deposit base, targeting deposit-rich business verticals, and entering new markets [46] - The Corporate Korea initiative is a core growth strategy, with a 23% increase in the USKC loan portfolio, now representing 15% of the total loan portfolio [16] - The company plans to continue optimizing its branch network, including consolidating branches and opening new ones in strategic locations [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy and commitment to delivering shareholder value, with a focus on generating low to mid-single-digit loan growth [23][24] - The company aims to maintain discipline in credit administration and asset quality while pursuing growth opportunities [18][24] - Management acknowledged the competitive landscape for deposits but emphasized the relationship banking model as a key differentiator [50] Other Important Information - The board approved an 8% increase in the quarterly dividend to $0.27 per share, reflecting confidence in the growth strategy [23] - Investments in digital systems, including a new loan origination system, are expected to drive operational efficiencies and improve profitability over time [21] Q&A Session Summary Question: How's the competitive landscape for deposits looking? - Management noted that deposit competition is fierce, but they do not aim to be the pricing leader, focusing instead on relationship banking [50] Question: What is the rate for CDs rolling off versus coming on? - Approximately $770 million of CDs are rolling off at 4.70%, with the previous quarter being just under $1 billion at 5.04%, and they expect to reprice at 4.02% [52] Question: What is the overall exposure to SBA in the portfolio? - The company has approximately $250 million of SBA exposure, with about $160 million tied to real estate [59] Question: What are the expectations for loan growth in the first quarter? - Management projected low-to-mid-single-digit growth for the year, with payoffs impacting net loan growth [75] Question: How should further share repurchases be modeled? - Future repurchases will depend on market performance and opportunities that may arise [80]