Banking on Growth: Examining Deposit Increases, Mortgage Strategy Shifts, and Margin Projections in 2024

Deposit and Loan Growth:
- Local deposits grew by $816 million, a 22% increase, contributing to a reduction in the loan-to-deposit ratio from 110% to 98%.
- This growth was mainly due to strategic efforts to broaden business deposits, expand into the governmental and public realm, and focus on retail customer growth based on total balances.

Mortgage Banking Strategy Shift:
- Mortgage banking income grew by 62% in 2024 compared to 2023.
- The increase was driven by changes in portfolio mortgage programs, resulting in more originations sold on the secondary market.

Noninterest Income Growth:
- Total noninterest income grew by 26% in 2024 compared to 2023.
- Growth was attributed to increases in mortgage banking income, service charges on accounts, payroll services, and credit and debit card income.

Margin Impact and Projections:
- The net interest margin declined by 51 basis points during Q4 and 47 basis points for the full year 2024.
- Projections for 2025 assume no changes in the fed funds rate, with loan growth expected in the range of 5% to 7% and the net interest margin to be between 3.3% to 3.4%.