Key takeaways
projections assume future interest rate changes remain directionally consistent
- 2024 financial performance is not indicative of future expectations.
- Deposit costs will decrease, and the net interest margin will expand
- The Allowance for Credit Losses (ACL) is directionally consistent
- The loan portfolio remains strong overall, problem loans are being actively resolved with very nominal loss exposure, and are trending downward
- Traditional deposit growth is a challenge in our market. The full Board is engaged and steadfast in its support of Avenu's banking as a service initiatives to overcome this challenge.
- Version 1 of Avenu is now active.
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2024 performance is not indicative of future expectations
Profitability
Balance Sheet
EPS Efficiency ratio ROAA2 ROAE2 ROATCE2
Net interest margin1,2,3
Net loans ($000) Total deposits ($000) Total assets ($000) ACL / gross loans NCOs / avg loans
Total equity/tangible assets 3
3Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 |
YTD | ||||
$0.60 | ($0.04) | $0.27 | $0.36 | $0.61 |
78.68% | 81.45% | 78.38% | 75.77% | 62.33% |
0.40% | 0.05% | 0.50% | 0.65% | 1.02% |
3.70% | 0.47% | 4.70% | 5.97% | 9.42% |
4.60% | 0.58% | 5.85% | 7.37% | 11.63% |
3.19% | 3.05% | 3.15% | 3.24% | 3.49% |
$1,775,558 | $1,775,558 | $1,778,840 | $1,727,110 | $1,705,137 |
$1,893,669 | $1,893,669 | $1,755,363 | $1,732,735 | $1,686,127 |
$2,224,599 | $2,224,599 | $2,093,746 | $2,070,015 | $2,035,432 |
1.02% | 1.02% | 0.95% | 0.95% | 96% |
0.42% | 0.42% | 0.08% | 0.03% | 0.03% |
10.25% | 10.25% | 10.82% | 10.86% | 10.96% |
1 tax-equivalent yield 2 annualized 3 non-GAAP
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Deposit costs will decrease, and the net interest margin will expand
Quarterly net interest margin 1
5.00% | 4.75% | |
4.72% | ||
4.50% | ||
4.18% | 4.25% | |
3.96% | 3.98% | 4.01% |
4.00% |
3.55%
3.50%
3.29% 3.20%3.05%
3.00%
2.50%
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 |
- Tax-equivalentyield
R e ve r s e d I n t e re s t
Interest income | |
Quarter | reversed |
2024 Q1 | $310,933 |
2024 Q2 | $541,887 |
2024 Q3 | $983,841 |
Total YTD | $1,836,661 |
3.19% Cumulative net interest margin through September 30, 2024
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Core deposits reflect community engagement
D e p o s i t t y p e / t o t a l d e p o s i t s
35% | 33% | 40% | 41% | 42% | 41% | 44% | |
52% | |||||||
26% | 38% | 21% | 20% | 18% | 18% | ||
36% | |||||||
24% | |||||||
39% | 29% | 38% | 38% | 41% | 38% | ||
24% | 24% | ||||||
2019 | 2020 | 2021 | 2022 | 2023 | 1Q24 | 2Q24 | 3Q24 |
Interest-Bearing DDAs | Non-Interest Bearing DDAs | Time Deposits |
- Bank-definedcore deposits
D e p o s i t s 3 Q 2 4
( $ m i l l i o n s )
Core 1 $1,471 | 78% | |
Non-core | $423 | 22% |
Total | $1,894 | 100% |
Business Banking team continue to build new relationships and gain market share.
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Core Deposit growth is meaningful
Attractive rates and well structured
September 30, 2024 | ||||
Balance | Percent | Weighted Weighted | ||
Type | (millions) | of total | avg. rate | maturity |
Non-interest-bearing DDA | $348 | 24% | ||
Low-cost transactional 1 | $53 | 4% | 0.22% | |
Interest bearing | $608 | 41% | 4.38% | |
Term | $462 | 31% | 4.89% | 7 mos |
Total core deposits | $1,471 | 100% | 3.34% |
- Interest bearing deposits with rates at or below 1%
35% of new Q3 deposits are non-interest bearing.
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Non-core deposits are well structured
Flexible & diverse for anticipated interest rate environment
September 30, 2024 | ||||
Type | Balance | Percent Weighted | Weighted | |
(millions) | of total | avg. rate | maturity | |
Money market | $50 | 12% | 5.15% | |
deposits | ||||
Term with call option1 | $183 | 43% | 5.16% | 38 mos |
Term | $190 | 45% | 4.69% | 11 mos |
Total non-core | $423 | 100.0% | 4.95% | |
deposits |
- Callable at Bank's discretion
Non-core strategy includes aggressive repricing in falling rate environment. 55% of non-core deposits can be adjusted to market rate immediately.
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