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    Adam Butler • Piper Sandler & Co.

    Adam Butler's questions to First Foundation Inc (FFWM) leadership

    Adam Butler's questions to First Foundation Inc (FFWM) leadership • Q1 2025

    Question

    Adam Butler of Piper Sandler questioned the reason for the step-up in wealth management expenses. He also requested a run-rate guide for total expenses, the spot deposit rate at quarter-end, and the outlook for overall loan balances through year-end.

    Answer

    Executive Jamie Britton explained the wealth management expense increase was driven by seasonal items and annual compensation adjustments, with a meaningful portion being a one-time event. He guided for customer service costs to decline with rates, while other operating expenses should remain stable to slightly down. He provided the March average rate for interest-bearing deposits at 3.81%. Britton also projected modest overall loan growth, as growth in C&I and private banking will be offset by planned contractions in CRE, municipal, and equipment finance portfolios.

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    Adam Butler's questions to First Foundation Inc (FFWM) leadership • Q4 2024

    Question

    Adam Butler from Piper Sandler & Co. asked about the timing of the Q4 loan sale and deposit payoffs to gauge the full impact on Q1 NIM, the yield on the remaining held-for-sale loans, the Q1 outlook for customer-related deposit costs, and the target for the loan loss reserve.

    Answer

    Executive Jamie Britton clarified that the loan securitization and subsequent deposit payoffs occurred in early to mid-December, meaning the full benefit will be realized in Q1 2025. He estimated the yield on the remaining held-for-sale portfolio is around 3.75%. For Q1, Britton guided that customer service costs would see the full-quarter benefit of rate cuts combined with a seasonal balance reduction of 20-25%. CEO Thomas Shafer added that regarding the reserve, there is a bias for it to move up from its current level as the bank continues its CECL analysis in a higher-for-longer rate environment.

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    Adam Butler's questions to CVB Financial Corp (CVBF) leadership

    Adam Butler's questions to CVB Financial Corp (CVBF) leadership • Q1 2025

    Question

    Adam Butler asked for the drivers behind the increase in 'other' fee income and questioned the bank's appetite for executing securities loss trades.

    Answer

    Executive E. Nicholson attributed the rise in 'other income' to performance in CRA-related equity investments, noting their value can be volatile. Regarding the securities portfolio, he stated that the bank's appetite for loss harvesting has not changed and they do not foresee any such trades in the near term unless an unusual opportunity arises.

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    Adam Butler's questions to CVB Financial Corp (CVBF) leadership • Q4 2024

    Question

    Adam Butler of Piper Sandler inquired about the timing of the Q4 sale-leaseback transactions and their impact on the occupancy expense run rate. He also asked about the potential for opportunistic share repurchases if interest rates remain elevated.

    Answer

    Executive E. Nicholson clarified that the sale-leaseback transactions occurred in October, so the bulk of the impact is already reflected in Q4 occupancy expense. He noted that the bank is also managing this expense line down by downsizing offices as leases expire. Regarding buybacks, Nicholson reiterated that the 10b5-1 plan is designed to be opportunistic and that the bank tends to 'buy on the dips' during periods of market volatility.

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    Adam Butler's questions to Heritage Financial Corp (HFWA) leadership

    Adam Butler's questions to Heritage Financial Corp (HFWA) leadership • Q1 2025

    Question

    Adam Butler from Piper Sandler sought commentary on the trend in loan payoffs seen in Q1 and their potential impact on the growth outlook. He also asked about the timing of the recent securities restructuring and the bank's appetite for similar transactions.

    Answer

    President Bryan McDonald explained that the Q2 growth outlook of 5-8% incorporates expected payoffs, but Q1 was impacted by unexpected business sales. He believes a strong pipeline should offset anticipated construction loan payoffs in H2. CFO Don Hinson stated the securities restructuring occurred in March and that the bank will continue to evaluate similar balance sheet optimization strategies on a quarterly basis.

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    Adam Butler's questions to Hanmi Financial Corp (HAFC) leadership

    Adam Butler's questions to Hanmi Financial Corp (HAFC) leadership • Q1 2025

    Question

    Adam Butler of Piper Sandler followed up on the syndicated office CRE loan, asking about Hanmi's position in the syndication and the total loan size. He also inquired about the performance of office loans maturing in the coming quarters, the potential to lower costs on nonmaturity deposits, the expected loan beta in a rate-cut scenario, and future expectations for SBA loan production and fee income.

    Answer

    Executive Bonita Lee stated Hanmi's participation in the $200 million syndicated loan is about 10%. Chief Banking Officer Anthony Kim reported that roughly $200 million in office CRE loans are maturing in 2025 with no issues currently foreseen. Kim also noted success in repricing maturing CDs lower and sees a competitive trend supporting this. CFO Romolo Santarosa explained that loan beta behavior depends on the pace of Fed cuts, with slower cuts having less impact. Finally, Bonita Lee reaffirmed the quarterly SBA production guidance of $40-$45 million, with fee income dependent on market premiums.

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    Adam Butler's questions to Hanmi Financial Corp (HAFC) leadership • Q3 2024

    Question

    Adam Butler, on behalf of Matthew Clark, requested details on loan repricing characteristics quarter-to-date, the deposit pipeline and competition, and the forward-looking expense run rate given planned branch and office changes.

    Answer

    CFO Romolo Santarosa indicated the quarter-to-date loan yield is approximately 6% and expects it to remain stable. Executive Bonita Lee attributed the strong DDA growth to robust C&I loan production rather than seasonality. For expenses, Mr. Santarosa projected a $0.5 million to $1.0 million increase in Q4 noninterest expense, driven primarily by a seasonal step-up in advertising and promotion.

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    Adam Butler's questions to Cathay General Bancorp (CATY) leadership

    Adam Butler's questions to Cathay General Bancorp (CATY) leadership • Q1 2025

    Question

    Adam Butler, on for Matthew Clark, asked for a breakdown of noninterest expense trends, the degree of seasonality in the quarter's deposit growth, and the specific rates offered on the recent Lunar New Year deposit specials.

    Answer

    EVP and CFO Heng Chen detailed that noninterest expense benefited from a prior-year bonus accrual reversal and expects lower consulting costs in the second half. He noted deposit growth was seasonal, driven by a ~$200 million Lunar New Year promotion which offered rates around 4.10%, significantly lower than the maturing CDs at over 5.30%.

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    Adam Butler's questions to Cathay General Bancorp (CATY) leadership • Q3 2024

    Question

    Speaking on behalf of Matthew Clark, Adam Butler requested the spot rates for loans, deposits, and the net interest margin (NIM) for the month of September, and also asked for more color on non-performer migration beyond the large $38.1 million relationship.

    Answer

    President and CEO Chang Liu provided spot rates for residential mortgages (7%), CRE (mid-6s), and C&I (prime). EVP and CFO Heng Chen gave period-end deposit rates and noted the September NIM was 3.17%, aided by interest recovery. Mr. Liu added that a $12.7 million real estate loan in Hong Kong was another notable migration into non-performers.

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