Casey Whitman's questions to SASR leadership • Q1 2024
Question
Inquired about the potential impact of Fed rate cuts on the net interest margin, the repricing dynamics of the securities portfolio, and the company's current stance on share buybacks.
Answer
Management stated that with rate cuts, they expect margin improvement of about 10 basis points per quarter for each 25 bps cut. The securities portfolio has $15M-$20M repricing monthly from low-2% yields to new yields near 6%. Regarding buybacks, while they make sense at the current stock price, the company is prioritizing capital preservation due to market uncertainty and is not planning to be active in the immediate future.