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    Kelly Motta • KBW

    Kelly Motta's questions to Axos Financial Inc (AX) leadership

    Kelly Motta's questions to Axos Financial Inc (AX) leadership • Q4 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) asked for an update on Axos's strategy regarding Stablecoin and digital assets in light of a more conducive regulatory environment. She also inquired about the drivers of non-interest-bearing deposit growth and the current state of asset quality, including any specific areas being monitored closely.

    Answer

    President & CEO Gregory Garrabrants stated that while the company allows crypto ETF trading in its self-directed business, it is still actively thinking through a broader Stablecoin strategy and had no further public comments at this time. He attributed strong core deposit growth to success in the commercial specialty, tech, and middle-market banking teams, as well as cross-selling efforts. On credit, Mr. Garrabrants expressed high confidence in the commercial real estate portfolio and stated that while the C&I book may have minor issues, he does not anticipate any material losses.

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    Kelly Motta's questions to Axos Financial Inc (AX) leadership • Q3 2025

    Question

    Kelly Motta inquired about Axos's capital strategy, specifically the outlook for share buybacks, potential M&A targets, and the company's exposure to construction risk from rising input costs and tariffs.

    Answer

    CEO Gregory Garrabrants confirmed that the current stock price presents a good opportunity for buybacks and that the company has sufficient capital for both growth and repurchases. For M&A, he cited interest in wealth/custody and specialty finance but stressed price discipline. Regarding construction risk, he stated it is minimal due to deal structures that require a high proportion of trades to be bought out, strong sponsors, and Subguard insurance, which mitigates budget overrun risks.

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    Kelly Motta's questions to Axos Financial Inc (AX) leadership • Q2 2025

    Question

    Kelly Motta asked about the outlook for fee income growth, particularly from Axos Advisory Services, and the company's current thinking on share buybacks.

    Answer

    President and CEO Greg Garrabrants identified the securities business as the best opportunity for fee income growth, citing strong net new asset growth in the custody business. He cautioned that the business is rate-sensitive, but if rates stabilize, the core business growth should be beneficial. Regarding capital, Garrabrants reiterated that organic growth is the primary priority, followed by share repurchases and opportunistic M&A. He stated that while he is optimistic about loan growth returning, the company will not let excess capital build forever and will evaluate buybacks based on opportunities and capital levels.

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    Kelly Motta's questions to Axos Financial Inc (AX) leadership • Q1 2025

    Question

    Kelly Motta of KBW asked for more detail on the core margin performance, wondering if any one-time fees contributed to its strength. She also questioned if an apparent increase in commercial real estate (CRE) exposure impacts the bank's appetite for CRE growth and asked for context on the size of the shared national credit (SNC) portfolio.

    Answer

    CFO Derrick Walsh confirmed there were no one-time items boosting the core margin. President and CEO Greg Garrabrants clarified that Axos is not constrained by CRE concentration limits and remains interested in growing that book, which is performing well. Regarding the non-performing loan, he specified it was a large syndicated SNC, not a smaller club deal, and that the total cash flow-based SNC portfolio is approximately $1 billion, with the vast majority performing strongly.

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    Kelly Motta's questions to First Interstate Bancsystem Inc (FIBK) leadership

    Kelly Motta's questions to First Interstate Bancsystem Inc (FIBK) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) questioned how the company is thinking about reinvesting expense savings versus letting them flow to the bottom line, particularly regarding hiring frontline talent to drive growth. She also asked for the yields on new securities and loans, and for color on the decline in commercial loans.

    Answer

    President & CEO James Reuter affirmed that while the company is focused on expense discipline, it will not sacrifice investing in the talent required to grow the bank. EVP & CFO David Della Camera detailed that new securities purchases would be shorter-duration, low-risk assets with yields around the 5-year Treasury plus 80-90 basis points, while new loan production is yielding around 7%. He attributed the commercial loan decline to lower line utilization, a large strategic payoff, and the reclassification of some loans to held for sale.

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    Kelly Motta's questions to Bank of Hawaii Corp (BOH) leadership

    Kelly Motta's questions to Bank of Hawaii Corp (BOH) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) requested details on expected cash flows from the securities and loan books for the back half of the year to model NII. She also asked if the projected lower expense run rate was due to deferring investments or specific cost-containment efforts, and inquired about deposit seasonality and the growth outlook.

    Answer

    Vice Chair & CFO Bradley Satenberg estimated contractual cash flows would be around $550 million per quarter, with roll-off and reinvestment rates consistent with recent trends. Chairman & CEO Peter Ho clarified that investment spending is not being curtailed and that ongoing expense discipline, including some restructuring, is driving efficiency. Ho also noted some seasonality in Q2 and Q3 deposits and expects overall balances to end the year flat, with a focus on improving the deposit mix.

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    Kelly Motta's questions to Bank of Hawaii Corp (BOH) leadership • Q1 2025

    Question

    Kelly Motta asked about the current rates for new and rolling-off certificates of deposit (CDs) and the activation cadence for the forward-starting swaps. She also inquired about the bank's client outreach and assessment of direct exposure to potential tariffs.

    Answer

    CFO Dean Shigemura indicated that new CDs are coming on at an average rate of 3.3% to 3.4%, which is 30-40 basis points below maturing CDs. He also detailed the forward swap cadence, starting in Q3 2025. Chief Risk Officer Bradley Shairson explained that the bank's analysis shows nominal direct tariff exposure, affecting only about 4% of the loan portfolio in specific service-oriented industries, highlighting the diversified nature of their C&I book.

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    Kelly Motta's questions to Bank of Hawaii Corp (BOH) leadership • Q4 2024

    Question

    Kelly Motta from Keefe, Bruyette & Woods asked about the strength of the loan pipeline following two quarters of growth, how much the NII growth outlook relies on loan growth, and the bank's strategy for managing upcoming FHLB maturities.

    Answer

    President and Chief Banking Officer Jim Polk confirmed the commercial pipeline remains strong, with Q4 being a record production quarter, and expects mid-single-digit growth to continue. CEO Peter Ho clarified that while loan growth is a contributor, the NII outlook is supported by diverse factors like deposit trends and balance sheet repricing. CFO Dean Shigemura corrected that the first FHLB maturities are in 2026, not 2025, and the bank actively monitors prepayment options.

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    Kelly Motta's questions to Bank of Hawaii Corp (BOH) leadership • Q3 2024

    Question

    Kelly Motta from Keefe, Bruyette & Woods sought clarification on the Q4 expense outlook, the drivers of elevated Q3 fee income, the mechanics of the NII impact from rate cuts shown on a presentation slide, the terms of the bank's FHLB borrowings, and the timing of its forward-starting swaps.

    Answer

    CFO Dean Shigemura clarified that full-year expense growth guidance is 1-1.5%, implying Q4 expenses will be closer to Q3's $107 million level. CEO Peter Ho noted that fee income strength was broad-based and feels recurring, with foreign exchange not being a significant factor. Management confirmed the NII slide only showed the impact of Fed funds rate changes. Dean Shigemura explained the FHLB debt has a 2-3 year maturity at a favorable 4.13% rate. He and Chief Risk Officer Bradley Shairson detailed that the forward-starting swaps begin in 2025-2026 and coincide with maturing swaps, thus not impacting total exposure.

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    Kelly Motta's questions to First Hawaiian Inc (FHB) leadership

    Kelly Motta's questions to First Hawaiian Inc (FHB) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods inquired about the updated effective tax rate outlook following a California tax law change, expectations for deposit betas in a rate-cutting cycle, and the longer-term drivers for loan growth.

    Answer

    CFO James Moses provided an updated full-year effective tax rate outlook of 23.2% and projected that deposit betas on rate-sensitive accounts would be around 90% for the next one or two rate cuts. CEO Robert Harrison addressed loan growth, noting that while recent construction loan payoffs are a headwind, the stabilization of the indirect auto loan portfolio removes a previous drag on growth. He also noted that institutional buyers, not other banks, were refinancing the completed construction projects.

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    Kelly Motta's questions to First Hawaiian Inc (FHB) leadership • Q1 2025

    Question

    Kelly Motta asked about the expected seasonal trends for deposits in the upcoming quarter and whether the overall balance sheet size would grow in line with deposits or if loan growth would be funded by securities cash flows.

    Answer

    CFO James Moses explained that deposit growth is typically stronger in the second half of the year, though strong Q1 retail growth makes forecasting less certain. He confirmed that the balance sheet size should grow along with deposits, potentially becoming more efficient, which would be a positive for net interest income. CEO Bob Harrison added that average deposits were up quarter-over-quarter, indicating normal end-of-period fluctuations.

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    Kelly Motta's questions to First Hawaiian Inc (FHB) leadership • Q4 2024

    Question

    Kelly Motta from KBW requested details on the expected balance sheet size, clarification on the pace of NIM expansion, any shifts in Hawaii's competitive dynamics, and the outlook for asset quality.

    Answer

    CFO Jamie Moses explained that balance sheet size will be determined by core deposit growth, with the investment portfolio likely to shrink due to cash flows funding loan growth. He confirmed the guidance implies about 3 basis points of NIM expansion per quarter in 2025. CEO Bob Harrison stated it's too early to see competitive changes. Both Harrison and Chief Risk Officer Lea Nakamura affirmed the strong and stable credit quality, highlighting the positive performance of the Maui portfolio.

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    Kelly Motta's questions to First Hawaiian Inc (FHB) leadership • Q3 2024

    Question

    Kelly Motta asked about the expected natural growth rate of expenses post-investment and the outlook for positive operating leverage in a falling rate environment. She also sought quantification of the deposit portfolio subject to discretionary repricing and clarification on the drivers of strong fee income.

    Answer

    CFO Jamie Moses and CEO Bob Harrison indicated future expense growth will be much lower, though achieving positive operating leverage is challenging with falling rates and potential NII compression. Moses quantified the repricable deposit portfolio at approximately $4.5 billion. He also attributed strong fee income to growth in the card portfolio and market-driven BOLI gains, with no one-time death benefits, guiding Q4 fee income to the $50-51 million range.

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    Kelly Motta's questions to CVB Financial Corp (CVBF) leadership

    Kelly Motta's questions to CVB Financial Corp (CVBF) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) questioned the company's M&A strategy, specifically asking if they would consider out-of-state acquisitions given California's economic headwinds. She also inquired about the expense run rate and any nuances to consider for future quarters.

    Answer

    CEO David Brager confirmed a strategic shift to be more open to acquisitions in 'new geographic markets,' as reflected in an updated investor presentation, though he reiterated that significant opportunities remain within California. CFO E. Allen Nicholson addressed expenses, explaining the Q2 decline was partly due to lower Q1 payroll taxes and that some growth should be expected from mid-year salary increases. He projected continued low single-digit overall expense growth, with technology being a key investment area. Brager added that active management of occupancy costs is also helping control expenses.

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    Kelly Motta's questions to CVB Financial Corp (CVBF) leadership • Q1 2025

    Question

    Kelly Motta inquired about the bank's opportunities to gain market share from competitor disruption in California and asked for guidance on the appropriate level of average interest-bearing cash for modeling purposes.

    Answer

    President and CEO David Brager confirmed they are seeing opportunities from market disruption, particularly in the Specialty Banking group, and anticipate more following the recent merger announcement involving a competitor. Executive E. Nicholson explained that the Q1 decline in average interest-bearing cash was tied to seasonal deposit outflows and expects the balance to rebound modestly in the second quarter.

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    Kelly Motta's questions to CVB Financial Corp (CVBF) leadership • Q4 2024

    Question

    Kelly Motta from Keefe, Bruyette & Woods asked for management's perspective on the California economic outlook amidst concerns about out-migration and wildfires. She also inquired about loan growth opportunities, new commercial real estate loan pricing, and the ability to offset potential rate cuts with new production.

    Answer

    President and CEO David Brager acknowledged the challenges but emphasized California's status as a large, diversified economy where the bank has significant market share to gain. He noted that while some customers move personally, their businesses often remain in California. On lending, Brager stated that new quality CRE loans are being priced in the 6.5% to 6.75% range. He cautioned that intense rate competition exists and stressed that CVBF will remain disciplined, comparing loan yields to risk-free investment alternatives.

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    Kelly Motta's questions to CVB Financial Corp (CVBF) leadership • Q3 2024

    Question

    Kelly Motta asked for color on the current rates for customer repurchase agreements. She also sought to clarify the net impact on Net Interest Income (NII) from the BTFP paydown and lower rates, and inquired about the expected size of future security sales.

    Answer

    CEO David Brager and Executive E. Nicholson explained that customer repo costs rose recently due to shifts from noninterest-bearing accounts but are expected to fall quickly with Fed rate cuts. David Brager clarified that NII faces headwinds from losing the positive carry on the BTFP (over $7 million) and the diminishing income from fair value hedges ($4.3 million in Q3). He estimated that future security sales would likely be smaller than the $300 million sold in Q3, perhaps one-third to one-half the size.

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    Kelly Motta's questions to Popular Inc (BPOP) leadership

    Kelly Motta's questions to Popular Inc (BPOP) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) sought details on loan growth dynamics, including expected U.S. construction loan payoffs versus Puerto Rico activity, and asked about funding sources for this growth and the drivers behind underlying expense efficiencies.

    Answer

    Executive VP & CFO Jorge García confirmed strong loan pipelines for Q3 but expects construction loan payoffs in the U.S. to occur more likely in Q4. On funding, he clarified that average non-public deposits grew significantly and the bank has ample liquidity, using short-term borrowings opportunistically. He attributed expense savings to a combination of transformation-related efficiencies, operational discipline, and some project delays.

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    Kelly Motta's questions to Popular Inc (BPOP) leadership • Q1 2025

    Question

    Kelly Motta asked for an update on the consumer credit normalization trend and whether the strong Q1 performance suggests the cycle is contained. She also inquired about the key drivers required to bridge the gap from the current ~11.4% ROTCE to the long-term 14% target.

    Answer

    CRO Lidio Soriano acknowledged that while Q1 credit performance was strong enough to potentially lower the full-year net charge-off guidance, the company is maintaining its current range due to macroeconomic uncertainty. CFO Jorge Garcia explained that achieving the 14% ROTCE target is a long-term goal that requires comprehensive execution across the entire business, including sustained deposit growth, NIM expansion, expense discipline, and strategic capital management, not just share repurchases.

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    Kelly Motta's questions to Popular Inc (BPOP) leadership • Q4 2024

    Question

    Kelly Motta inquired about how much of the potential $600M-$800M deposit runoff is incorporated into guidance and sought details on the drivers of fee income growth. She also asked about the expected cadence of net charge-offs in 2025, deposit seasonality, the basis for expense guidance, and potential risks from U.S. political changes to federal fund flows.

    Answer

    CFO Jorge Garcia confirmed the guidance includes their best estimate of deposit outflows and is based on GAAP expenses. He cited 'price for value' initiatives and credit card activity as fee income drivers. CRO Lidio Soriano projected charge-offs might be higher in the first half of 2025 before improving. CEO Ignacio Alvarez expressed confidence that Puerto Rico's infrastructure recovery funds are not the primary target of potential U.S. executive orders.

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    Kelly Motta's questions to Popular Inc (BPOP) leadership • Q3 2024

    Question

    Kelly Motta sought clarification on whether expense guidance includes OREO items, inquired about the loan growth outlook, and asked about the remaining risk in the non-interest-bearing deposit base.

    Answer

    CFO Jorge Garcia confirmed expense guidance includes OREO. CEO Ignacio Alvarez described loan demand in Puerto Rico as very strong, especially in commercial. Garcia added that U.S. loan demand is now picking up after being negative year-to-date. On deposits, Garcia reiterated the potential risk of $600-$800 million in retail outflows due to spending, not competitive pressure.

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    Kelly Motta's questions to Cathay General Bancorp (CATY) leadership

    Kelly Motta's questions to Cathay General Bancorp (CATY) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods inquired about the specific drivers of commercial loan growth, such as line utilization, and asked about the future outlook for deposit pricing and net interest margin (NIM) in a potential rate-cutting environment.

    Answer

    President & CEO Chang Liu noted that Q2 growth was driven more by new CRE and C&I relationships rather than significant draws on existing lines. EVP & CFO Heng Chen stated that NIM should expand with future Fed rate cuts, aided by the repricing of fixed-rate loans. Chang Liu added that the effects of the previous 100 basis point rate cut are now fully reflected in current deposit rates.

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    Kelly Motta's questions to Hanmi Financial Corp (HAFC) leadership

    Kelly Motta's questions to Hanmi Financial Corp (HAFC) leadership • Q2 2025

    Question

    Kelly Motta inquired about Hanmi Financial's loan growth outlook, the drivers for reaching the mid-single-digit range, and the composition of the pipeline. She also asked for details on the net interest margin, including spot deposit rates and the cadence of CD repricing. Additionally, she sought color on credit quality, the drivers behind the significant reduction in criticized assets, the nature of the large charge-off, the go-forward tax rate, and the run rate for occupancy expenses.

    Answer

    CEO Bonita Lee confirmed the low to mid-single-digit loan growth target, citing a strong Q3 pipeline and typical second-half seasonality. CFO Romolo Santarosa provided June spot deposit costs (3.60%), noting a potential 10-11 basis point benefit from maturing Q3 CDs, which should lead to continued but slowing NIM expansion. Regarding credit, CEO Lee attributed the improvement in criticized assets to proactive resolutions, including a $20 million paydown on one loan, and confirmed the large charge-off was on a syndicated office CRE loan. CBO Anthony Kim added that the remaining office portfolio shows no major repricing risks. CFO Santarosa guided to a full-year effective tax rate of around 29.5% and stated that occupancy costs should remain stable.

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    Kelly Motta's questions to Hanmi Financial Corp (HAFC) leadership • Q1 2025

    Question

    Kelly Motta from Keefe, Bruyette & Woods asked for details on the net interest margin, including the spot rate on deposits in March and new CD pricing. She also questioned the volume of loans maturing or repricing and sought more color on a specific non-performing syndicated credit, including its industry, reserve level, and the size of the total syndicated loan book.

    Answer

    CFO Romolo Santarosa provided March deposit costs, noting CDs at 4.10% and average interest-bearing deposits at 3.67%. He anticipates that while margin expansion may continue, its pace will slow significantly. He also stated the overall loan book yield should remain stable with a slight upward bias. Executive Bonita Lee identified the non-performing loan as a syndicated office CRE property for which a $6.2 million reserve was taken. She also confirmed the total syndicated loan book is approximately $255 million.

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    Kelly Motta's questions to Hanmi Financial Corp (HAFC) leadership • Q4 2024

    Question

    On behalf of Kelly Motta, an analyst inquired about the competitive landscape for deposits, repricing trends for CDs in 2025, and the performance and overall exposure of Hanmi's SBA loan portfolio.

    Answer

    CEO Bonita Lee stated that while deposit competition is fierce, Hanmi avoids leading on price, relying instead on its relationship banking model. She also affirmed the SBA portfolio is performing well, with an exposure of approximately $250 million. CBO Anthony Kim added that in Q1 2025, about $770 million in CDs are rolling off at a rate of 4.70%, offering a significant repricing opportunity.

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    Kelly Motta's questions to Hanmi Financial Corp (HAFC) leadership • Q3 2024

    Question

    Kelly Motta inquired about the net interest margin (NIM) outlook, particularly loan yield sensitivity to potential Fed rate cuts. She also questioned the company's capital management strategy, asking why it wasn't pursuing more aggressive share buybacks, and sought details on the recent migration of loans to the special mention category.

    Answer

    CFO Romolo Santarosa projected a potential 10-20 basis point NIM expansion in Q4, contingent on Fed rate cuts, and stated that loan yields should remain stable for now. Regarding buybacks, he cited the need to balance risk management with capital return, highlighting that the total payout ratio is already 64%. Executive Bonita Lee explained that the special mention loans, two hotels and one C&I loan, were proactively downgraded despite being current, and the bank does not anticipate any of them becoming nonperforming.

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    Kelly Motta's questions to RBB Bancorp (RBB) leadership

    Kelly Motta's questions to RBB Bancorp (RBB) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) asked for color on the drivers behind the strong non-interest-bearing deposit growth during the quarter and inquired about the sustainability of the current tax rate, considering recent changes in California tax law.

    Answer

    President & CEO Johnny Lee attributed the non-interest-bearing deposit growth to a combination of deepening existing relationships, new C&I customer acquisition, and a new promotional bundle for money market and DDA accounts. EVP & CFO Lynn Hopkins added that the tax rate of around 28% is a reasonable run rate, as the impact of the California tax law change was included in the quarter's results and is not expected to be material going forward.

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    Kelly Motta's questions to RBB Bancorp (RBB) leadership • Q1 2025

    Question

    Kelly Motta from Keefe, Bruyette & Woods asked for an updated timeline on the nonperforming loan workout, sought more specific details on the bank's exposure to China-related tariffs, and inquired about the composition of the loan growth pipeline.

    Answer

    CEO David Morris targeted the second half of 2025 for NPL normalization, acknowledging the process would be lumpy. Johnny Lee and Lynn Hopkins addressed the tariff question, stating that while a specific China breakdown wasn't available for the small trade finance portfolio, outreach to seasoned borrowers revealed no immediate concerns. Johnny Lee described the loan pipeline as being primarily driven by CRE and single-family residential loans, with C&I and SBA loans expected to contribute more going forward.

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    Kelly Motta's questions to RBB Bancorp (RBB) leadership • Q4 2024

    Question

    Kelly Motta sought details on the construction loan portfolio's credit issues, the updated timeline for resolving NPLs, and how the bank is balancing credit remediation with strategic goals like M&A.

    Answer

    CEO David Morris explained the problem loans were originated during COVID and faced unique challenges, pushing the overall credit resolution timeline to the end of 2025. He affirmed that while cleaning up nonperforming assets is a top priority with a dedicated team, the bank is simultaneously pursuing its M&A strategy.

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    Kelly Motta's questions to RBB Bancorp (RBB) leadership • Q3 2024

    Question

    Kelly Motta questioned the drivers behind changes in expenses, specifically the decline in insurance costs and the increase in salaries. She also sought more detail on the credit migration, asking about the resolution timeline for nonperforming assets (NPAs), expectations for charge-offs, and the outlook for loan growth.

    Answer

    Executive Lynn Hopkins confirmed the lower insurance expense is a good near-term run rate and that higher salaries were driven by production incentives, expecting overall expenses to remain in the $17-$17.5 million range. Executive Johnny Lee addressed credit, stating they anticipate resolving roughly 70% of the large NPLs by mid-next year through actions like trustee sales or refinances. Lynn Hopkins added that they do not currently foresee charge-offs on these specific loans. Johnny Lee also noted the loan pipeline remains healthy, particularly in CRE, non-QM, and SBA.

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    Kelly Motta's questions to Hope Bancorp Inc (HOPE) leadership

    Kelly Motta's questions to Hope Bancorp Inc (HOPE) leadership • Q2 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods (KBW) inquired about the drivers and cadence of expected loan growth, particularly from new hires. She also asked for more color on asset quality trends, the amount of remaining one-time merger costs, and the factors behind the maintained Net Interest Income (NII) guidance despite a beneficial securities sale.

    Answer

    Chairman, President & CEO Kevin Kim confirmed that new, experienced bankers are expected to drive loan production higher. SEVP & COO Peter Koh described the asset quality outlook as 'cautiously optimistic,' noting a decline in criticized assets. EVP & CFO Julianna Balicka estimated a few million dollars in one-time costs for both Q3 and Q4. She explained the NII guidance was maintained because the securities repositioning benefit was offset by the negative impact of delayed Fed rate cuts and lower-than-expected loan accretion income.

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    Kelly Motta's questions to Banner Corp (BANR) leadership

    Kelly Motta's questions to Banner Corp (BANR) leadership • Q2 2025

    Question

    Kelly Motta asked about loan pricing and spreads, the sustainability of the back-book repricing benefit on the margin, and whether loan growth was concentrated in specific geographic markets.

    Answer

    EVP & Chief Credit Officer Jill Rice stated that loan pricing is holding up well and that the lower new production yield was due to product mix rather than spread compression. EVP & CFO Rob Butterfield confirmed that a 4-5 basis point quarterly increase in loan yields remains a reasonable expectation in the near term, assuming the Fed is on hold. Jill Rice noted that recent middle-market growth was stronger in the Pacific Northwest but expects future growth from California following recent hires in that market.

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    Kelly Motta's questions to Banner Corp (BANR) leadership • Q1 2025

    Question

    Kelly Motta of KBW asked for confirmation on the effective tax rate for the year and requested an update on fee revenue initiatives, including the outlook for deposit fees and service charges.

    Answer

    EVP & CFO Robert Butterfield confirmed that the Q1 tax rate is a good estimate for the full year. For fee income, he suggested the Q1 level, excluding a BOLI claim, is a decent run rate. He noted mortgage banking is rate-dependent but highlighted significant growth in the SBA gain-on-sale business, which generated $800,000 in Q1 compared to a ~$400,000 quarterly run rate last year.

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    Kelly Motta's questions to Banner Corp (BANR) leadership • Q4 2024

    Question

    Kelly Motta inquired about growth opportunities across Banner's footprint, asking if there were specific areas targeted for adding scale or teams. She also questioned if the mid-single-digit loan growth outlook for 2025 was conservative and what factors could drive potential upside.

    Answer

    CEO Mark J. Grescovich stated that Banner is focused on organic growth within its current excellent markets rather than expanding its geographic footprint. He sees significant opportunity in hiring bankers and gaining market share from disruption. Executive Jill Rice reiterated the mid-single-digit loan growth target, explaining that while market disruption offers upside, potential downsides from interest rates, immigration reform, and tariffs justify a balanced, middle-of-the-road forecast.

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    Kelly Motta's questions to Banner Corp (BANR) leadership • Q3 2024

    Question

    Kelly Motta asked for more color on deposit seasonality and whether normal trends are returning. She also inquired about capital management strategy, including plans for redeemable subordinated debt and the potential use of the share buyback authorization.

    Answer

    EVP and CFO Robert Butterfield confirmed that deposit flows appear to be returning to normal seasonal patterns, with Q3 being a particularly strong quarter. On capital, he stated they are evaluating whether to call and replace the sub debt or simply redeem it, given their strong capital position. He emphasized that the core dividend is the top priority, followed by evaluating share repurchases under the existing authorization.

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    Kelly Motta's questions to OFG Bancorp (OFG) leadership

    Kelly Motta's questions to OFG Bancorp (OFG) leadership • Q2 2025

    Question

    Kelly Motta asked for details on the net interest margin, focusing on the timing and strategic rationale for taking on FHLB wholesale funding and its impact on liquidity. She also questioned the pricing dynamics and competitive landscape for the strong loan growth. In a follow-up, she inquired about the outlook for government deposits, the strategy for expense control amid technology investments, and sought clarification on the full-year tax rate guidance.

    Answer

    CFO Maritza Arizmendi Díaz explained the FHLB advance was an opportunistic move to secure funding at a favorable rate (4.13%) to support the strong loan pipeline. CEO José Fernández added that the decision was made mid-quarter and noted that while lending is competitive, the bank is seeing diversified growth across auto, commercial, and mortgage lending. Fernández also stated that government deposits are expected to roll over for several more quarters and detailed the expense strategy as a balance of investing in technology while relentlessly pursuing process efficiencies. Arizmendi clarified the 24.9% full-year tax rate guidance excludes the Q2 discrete benefit.

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    Kelly Motta's questions to OFG Bancorp (OFG) leadership • Q4 2024

    Question

    Kelly Motta of KBW inquired about the 2025 outlook for net interest margin (NIM) amidst potential rate cuts, future expense management in light of digital investments, and the drivers behind the Q4 credit reserve build. She also asked about capital allocation priorities, including share buybacks, and the company's perspective on M&A opportunities.

    Answer

    CEO José Fernández and CFO Maritza Arizmendi addressed the NIM, reaffirming a 5.30% to 5.40% range for 2025, supported by investment portfolio performance and strong customer growth from digital products. Fernández detailed the 'Digital First' strategy's success, justifying a projected quarterly expense run rate of $95-$96 million for continued investment. Regarding credit, Executive Cesar Ortiz-Marcano explained that the reserve build was for specific U.S. commercial loan challenges and seasonal auto delinquency trends, while the overall credit environment in Puerto Rico remains stable. Fernández confirmed that the capital allocation strategy prioritizes organic loan growth, followed by dividends and methodical share buybacks, and stated a focus on organic growth over M&A.

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    Kelly Motta's questions to OFG Bancorp (OFG) leadership • Q3 2024

    Question

    Kelly Motta inquired about the outlook for loan growth in Puerto Rico and the U.S., deposit trends including migration and government account flows, the drivers behind the updated Net Interest Margin (NIM) guidance, the strategy for securities purchases, plans for capital returns like buybacks, and the rationale for acquiring a mortgage servicing portfolio.

    Answer

    Executive José Fernández expressed continued optimism for loan growth in Puerto Rico, supported by strong economic activity, and a more constructive view on the U.S. market. He noted deposit migration from demand to time accounts should stabilize in 2025 and confirmed a large government deposit exit was delayed to November. Executive Maritza Arizmendi clarified the revised NIM outlook of 5.3% to 5.4% was due to a larger-than-expected 50 basis point Fed rate cut. Both executives affirmed that securities purchases are a deliberate strategy to extend duration and reduce asset sensitivity. Fernández acknowledged capital returns via buybacks were slow in Q3 and will be reviewed, and explained the mortgage servicing acquisition was to fully own a relationship they already sub-serviced, adding approximately $900,000 in quarterly fee income.

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    Kelly Motta's questions to OFG Bancorp (OFG) leadership • Q1 2024

    Question

    Kelly Motta questioned the rate sensitivity of the asset base, the current competitive environment for deposits in Puerto Rico, and whether there has been any tangible movement on manufacturing onshoring.

    Answer

    Executive Maritza Arizmendi identified the commercial loan book (53% variable rate) and cash as the most rate-sensitive assets. Executive José Fernández described the deposit market as 'relentlessly competitive' but noted OFG is performing well, with 5% year-over-year net customer growth. He reiterated that while onshoring is an opportunity, it is still 'too early to tell' if there is tangible movement, as commercial clients are managing uncertainty by building inventory.

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    Kelly Motta's questions to First Commonwealth Financial Corp (FCF) leadership

    Kelly Motta's questions to First Commonwealth Financial Corp (FCF) leadership • Q1 2025

    Question

    Kelly Motta asked about potential future opportunistic hiring, the reasons for the decline in SBA gain-on-sale income, and the outlook for that business. She also sought confirmation that the expense guidance fully incorporates the CenterBank acquisition's run-rate costs.

    Answer

    President and CEO Thomas Michael Price stated that the bank is largely satisfied with current staffing levels after bolstering its equipment finance and commercial teams, and will now focus on process efficiency. Bank President Jane Grebenc explained the SBA slowdown was due to the timing of construction deal closures, not margin compression, and expects activity to be 'frothier' later in the year. CFO James Reske confirmed the expense guidance includes the full impact of the CenterBank acquisition.

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    Kelly Motta's questions to First Commonwealth Financial Corp (FCF) leadership • Q4 2024

    Question

    Kelly Motta asked about the company's M&A appetite for more small deals following the Center Bank announcement and requested an update on credit quality, both within the acquired Centric portfolio and the legacy originated book.

    Answer

    President and CEO Thomas Michael Price expressed strong enthusiasm for small, strategic acquisitions, noting they are powerful for growth and that the bank is well-positioned for more deals. On credit, Chief Credit Officer Brian Sohocki detailed positive asset migration trends, with significant reductions in watch-rated and criticized assets within the Centric portfolio. Price and Sohocki added that the originated portfolio is holding up well, with delinquency trends improving, though they continue to monitor the SBA and consumer segments closely given the rate environment.

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    Kelly Motta's questions to First Commonwealth Financial Corp (FCF) leadership • Q3 2024

    Question

    Kelly Motta questioned the drivers of noninterest-bearing deposit growth, the outlook for deposit betas in a rate-cutting cycle, the normalized level of balance sheet cash, and the current M&A environment.

    Answer

    President and CEO Mike Price attributed strong deposit growth to a significant $170 million inflow from a single client. CFO Jim Reske added that underlying trends also show a slowdown in deposit rotation. Mr. Reske projected a downward deposit beta of around 25% and stated normal cash levels are under $50 million. Mr. Price confirmed active interest in M&A, emphasizing a disciplined approach.

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    Kelly Motta's questions to WSFS Financial Corp (WSFS) leadership

    Kelly Motta's questions to WSFS Financial Corp (WSFS) leadership • Q1 2025

    Question

    Kelly Motta inquired about any portfolio analysis related to new tariff policies, potential changes to underwriting standards, and the necessary catalysts to reignite net loan growth.

    Answer

    Chairman, President and CEO Rodger Levenson responded that while WSFS has identified portfolios potentially exposed to tariffs, it has not yet changed underwriting criteria due to the fluid nature of the policies. He emphasized that the primary catalyst for loan growth is 'certainty.' Levenson explained that entrepreneurial clients can adapt once the 'rules of the road' are clear, but the current volatile environment is causing them to pause investment decisions.

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    Kelly Motta's questions to WSFS Financial Corp (WSFS) leadership • Q4 2024

    Question

    Kelly Motta sought more detail on the risks within the Cash Connect business beyond interest rates, following the idiosyncratic client loss. She also asked about the flexibility to manage expenses if revenue growth is challenged and requested color on the recent migration of loans to nonperforming asset (NPA) status.

    Answer

    CEO Rodger Levenson explained the Cash Connect client was terminated due to financial stress in the owner's other enterprises, and that the primary risk in the business is managing large cash volumes, for which he believes controls proved effective. On expenses, Executive David Burg and CEO Rodger Levenson identified variable incentive pay, the timing of new hire costs versus revenue, and technology investments as key levers. Levenson noted their business mix dictates a sustainable efficiency ratio around 60%. Regarding NPAs, he clarified the increase was driven by a single relationship with two loans (an industrial land loan and a multifamily construction loan) to a sponsor facing cash flow issues, but he believes the loans are well-secured. David Burg added that most loans have recourse, mitigating loss potential.

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    Kelly Motta's questions to Customers Bancorp Inc (CUBI) leadership

    Kelly Motta's questions to Customers Bancorp Inc (CUBI) leadership • Q1 2025

    Question

    Kelly Motta of Keefe, Bruyette & Woods asked about the sustainability of the deposit pipeline, questioning if the 'low-hanging fruit' from new teams might diminish. She also requested details on average loan sizes for new originations and current C&I line utilization rates. Finally, she inquired about the fee income contribution from cubiX.

    Answer

    President and CEO Sam Sidhu asserted a long runway for deposit growth, noting that recently hired commercial teams are at less than 20% of their former books, with a three-year plan to replenish them. He provided average new loan sizes: ~$6M for commercial banking, $6-10M for venture, and ~$7.5M for CRE. CFO Philip Watkins added that C&I line utilization is normal, though slightly lower in areas like fund finance. Sidhu confirmed Q1 cubiX fee income was $2.1 million, contributing to a stable annual run rate of about $8 million.

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    Kelly Motta's questions to Customers Bancorp Inc (CUBI) leadership • Q4 2024

    Question

    Kelly Motta inquired about the outlook for continued deposit cost reduction, given the significant progress already made. She also asked about the competitive opportunity in the digital asset space with a potentially friendlier regulatory environment and how the bank plans to maintain its lead. Lastly, she asked for clarity on the timing of a recent securities portfolio restructuring.

    Answer

    President and CEO Samvir Sidhu outlined the ongoing deposit remix strategy, noting a plan to replace approximately $500 million in higher-cost funds in Q1 and an expectation for new teams to generate $1.5 to $2.0 billion in low-cost deposits in 2025. On digital assets, Sidhu emphasized the bank's first-mover advantage, deep institutional relationships, and superior in-house technology as durable competitive strengths. EVP and CFO Philip Watkins clarified the securities restructuring occurred late in Q4 and is expected to provide about 5 basis points of incremental NIM benefit in 2025.

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    Kelly Motta's questions to Customers Bancorp Inc (CUBI) leadership • Q3 2024

    Question

    Kelly Motta from KBW asked why the benefits of the deposit remix weren't yet visible in the overall deposit costs. She also sought to reconcile the change in NIM guidance and asked for an update on the digital asset business and the associated regulatory order, including its longevity and value.

    Answer

    CFO Philip Watkins attributed the lag in deposit cost reduction to timing, as average interest-bearing deposits increased, and the need to avoid immediate rate cuts on newly onboarded accounts. He explained the NIM change was due to lower-than-expected discount accretion and proactive balance sheet actions. CEO Samvir Sidhu added that the digital asset business is viewed as a payments business and the company is building a proprietary platform to enhance risk management, which they believe will create a regulatory moat. He stated the work for the order should be mostly done in a year, with orders typically lasting around two years.

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    Kelly Motta's questions to Customers Bancorp Inc (CUBI) leadership • Q2 2024

    Question

    Kelly Motta of KBW asked for clarification on expense drivers beyond the new team hires and questioned the company's capital allocation priorities, particularly regarding the new share buyback program.

    Answer

    CFO Philip Watkins identified two other expense drivers: a $1.2 million reserve for unfunded loan commitments and about $1 million in expenses tied to a consumer HFS program that had associated revenue. President and CEO Sam Sidhu emphasized that while the buyback is a useful tool, the bank's primary focus for capital remains franchise-enhancing organic growth, especially now that it has achieved its key capital ratio targets.

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    Kelly Motta's questions to Heritage Financial Corp (HFWA) leadership

    Kelly Motta's questions to Heritage Financial Corp (HFWA) leadership • Q1 2025

    Question

    Kelly Motta of KBW questioned whether recent economic uncertainty has altered Heritage Financial's full-year outlook on loan growth and credit appetite, and also inquired about specific geographic areas targeted for talent acquisition.

    Answer

    President Bryan McDonald projected an annualized loan growth rate of 5% to 8% for Q2, supported by a strong pipeline, but noted uncertainty makes H2 2025 harder to predict. He also stated the bank is open to hiring talent anywhere in its footprint, likely as smaller, targeted hires, reflecting a balance between seizing opportunities and controlling expenses.

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    Kelly Motta's questions to Heritage Financial Corp (HFWA) leadership • Q4 2024

    Question

    Kelly Motta from Keefe, Bruyette & Woods inquired about the dynamics of deposit costs, including the potential for further reductions and the repricing schedule for CDs, and also asked about balance sheet strategy regarding the loan-to-deposit ratio and securities portfolio cash flows.

    Answer

    CEO of Heritage Bank Bryan McDonald explained that exception pricing on money market accounts is being lowered with each Fed adjustment and that most maturing CDs are shorter-term. Chief Accounting Officer Jennifer Nino detailed that nearly $780 million in CDs are maturing in the first half of 2025. Bryan McDonald added that the bank is comfortable with a higher loan-to-deposit ratio and that the lack of deposit growth in Q4 was due to customer cash usage rather than competitive outflows.

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    Kelly Motta's questions to Heritage Financial Corp (HFWA) leadership • Q3 2024

    Question

    Kelly Motta inquired about the bank's preparations for eventually crossing the $10 billion asset threshold and asked about the optimal loan-to-deposit ratio management is targeting for the future.

    Answer

    CEO Jeff Deuel explained that while a framework to cross $10 billion exists, it is not an immediate priority as organic growth puts it several years away, though they are making incremental preparations. He also stated that management is comfortable with the loan-to-deposit ratio rising from the low 80s into the high 80s to better leverage the balance sheet, but likely not much higher.

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    Kelly Motta's questions to Southern Missouri Bancorp Inc (SMBC) leadership

    Kelly Motta's questions to Southern Missouri Bancorp Inc (SMBC) leadership • Q2 2025

    Question

    Speaking on behalf of Kelly Motta, an analyst inquired about the drivers behind the healthy construction loan growth and the bank's comfort level with its Commercial Real Estate (CRE) concentration, which is approaching 306% of capital.

    Answer

    CEO Greg Steffens explained that the construction growth stemmed from the continuation of existing projects and draws from a stable pipeline. He anticipates the pace of this growth will slow as projects are completed in the latter half of the fiscal year. Regarding CRE concentration, Steffens stated that the bank's internal limit is 375%, and they target a range of 300-325%, indicating comfort with current levels.

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    Kelly Motta's questions to Southern Missouri Bancorp Inc (SMBC) leadership • Q1 2025

    Question

    Kelly Motta asked if the significant increase in loan yields during the quarter was influenced by any outsized loan fees or nonaccrual interest recoveries. She also inquired about the current M&A environment and conversation activity.

    Answer

    President and CAO Matthew Funke stated that while there was a minor impact of a couple of basis points from nonaccrual interest, it was not significant enough to be a primary driver of the yield increase. CFO Stefan Chkautovich added that he does not expect a material increase in yields from fixed-rate loan repricing in the upcoming quarter. Regarding M&A, Mr. Funke confirmed that conversations remain preliminary and nothing is imminent, though he believes activity is likely to pick up.

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    Kelly Motta's questions to Southern Missouri Bancorp Inc (SMBC) leadership • Q4 2024

    Question

    Kelly Motta from KBW inquired about the outlook for the mortgage banking line item, particularly the potential for gain on sale of loans to normalize. She also asked for a reminder of the company's strategic M&A priorities regarding target markets and sought guidance on a sustainable level for cash on the balance sheet.

    Answer

    President Matthew Funke stated that while they anticipate a long-term recovery in secondary market mortgage activity, recent strength has been in in-house portfolio loans with no immediate signs of a secondary market turnaround. On M&A, he reiterated target markets including St. Louis, Kansas City, Northwest Arkansas, and Little Rock. CFO Stefan Chkautovich addressed liquidity, noting that cash levels should range in the $50 million-plus range, suggesting the current level is a low point.

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