Scott Price

“Slide 16 shows our deposit growth and mix as of March 31st. You'll note that deposits were relatively flat when compared to 12-31-2024, with a shift toward core deposits in both business and consumer spaces and slightly lower brokered funds.”

“Slide 23 shows our yields and rates on a consolidated basis. My comments will focus on performance in the fourth quarter versus the third quarter of 2024. During the fourth quarter of ’24, we experienced margin contraction, which was driven by a combination of positive and negative factors.”

“We experienced nice margin expansion resulting from lower deposit costs as we continue to bring in lower-cost deposits from business checking and business money market accounts.”

“Turning to slide 12, our net interest margin contracted by 12 basis points during the quarter, driven by increased leverage and higher cash balances. We raised over $70 million in our bond offering at the end of May and paid down warehouse lines of credit.”

“Turning to Slide 6, our net interest income expanded 16 basis points during the quarter despite higher deposit costs. Average earning assets increased $31.1 million, and we experienced a sizable mix shift with average cash balances declining $45 million and average loans increasing $73 million.”