Yahoo Finance SmartFinancial Inc (SMBK) (Q1 2024) Earnings Call Transcript Highlights: Robust Growth and ...
Net Income: $9.4 million for the quarter, with earnings per diluted share at $0.55.
Operating Net Income: $8.4 million, or $0.49 per diluted share.
Tangible Book Value per Share: $21.12, including AOCI impacts; $22.73 excluding AOCI.
Loan Growth: Approximately 4% increase.
Deposit Growth: Approximately 12% increase.
Non-Performing Assets (NPAs): Reduced to only 18 basis points.
Total Revenue: Exceeded $40 million.
Net Interest Income: Continued expansion noted.
Non-Interest Expenses: Steady at $28.6 million for the quarter.
Liquidity Coverage Ratio: Uninsured deposits covered 1.4 times.
Return on Assets (ROA): Operating ROA at 0.69%.
Return on Equity (ROE): Operating ROE at 9.5%.
Cost of Deposits: Increased by 17 basis points.
Loan Yields: Increased by 10 basis points for the quarter.
Net Interest Margin: Remained flat at 2.85%.
Non-Interest Income: Operating non-interest income at $7 million, adjusted for a $1.35 million one-time gain.
Capital Growth: Increased by $7 million; consolidated TCE ratio at 7.4%.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you walk us through the bond redeployment and the cash flows from this quarter? A: Ronald Gorczynski, Executive Vice President, Chief Accounting Officer of the Company and the Bank, confirmed that over $80 million was redeployed at a yield of 5.87%, primarily into mortgage-backed securities and some agencies and corporate bonds. The rest of the funds are held in cash.
Q: What are the drivers behind the strong deposit growth this quarter? A: William Carroll, President and CEO, attributed the growth to new business, including large corporate accounts and public funds, driven by the efforts of their relationship managers across the companys footprint.
Q: Regarding the $61 million of securities maturing this quarter, will these funds flow into cash? A: Ronald Gorczynski confirmed that the funds from these maturing securities, which currently yield 2.1%, would likely flow into cash.
Q: Can you discuss the expected revenue growth and the target of hitting a $50 million revenue bogey in the second half of '25? A: Ronald Gorczynski projected that the company would likely hit a $42 million quarterly revenue run rate in Q3 of this year and reach the $50 million target by the second half of Q3 next year.
Q: What is the outlook for the mortgage business and its contribution to non-interest income? A: Ronald Gorczynski noted a 15% increase in the guidance for mortgage revenue, with a shift towards more secondary market sales, projecting an even split between portfolio and secondary market sales by mid-2024.
Q: What impact do you see from M&A disruptions in your region in terms of talent acquisition and new business? A: William Carroll noted ongoing opportunities to hire quality bankers due to regional bank disruptions and strategic changes, expressing optimism about adding revenue-enhancing talent that fits the companys culture.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
