Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| In the meantime, we report record PPE, continued disciplined expense management, NIM strength, stable liquidity, properly matched balance sheet and we also note the absence of a meaningful AOCI adjustment |
| We recently celebrated our five-year anniversary of our IPO and we're happy with our results over the last five years and how we've had consistently strong earnings and compounded our shareholder value |
| And we've done that far better than just about any other financial institution |
| That said, I think we've done a really good job |
| We're going to continue to the compound much better than other people and make a good return for the shareholders |
| And we're really excited about our company, in spite of the one event |
| So really in a perverse way, it illustrates the strength of our core earnings to be able to take a meaningful hit and still perform where the industry performs |
| Our fundamentals are very good, and we expect to do what we've always done and that is to continue compounding equity in a very meaningful way |
| We have a very strong company |
| So the company fundamentals are strong |
| In fact excluding that one credit, our past due loans and adverse credit grades are even better than the prior quarters and those quarters were strong as well |
| I mean, positives look good as Tom mentioned adversely graded credit trends looks good outside of the one credit |
| For this one large credit, we're going to focus on the really good positive fundamentals of our company |
| Essentially, since the IPO, we've doubled our equity and our earnings and on top of that provided competitive dividend yields while doing so |
| Our recent quarter was strong, clearly negatively affected by a one-off large credit event |
| And so we've been more disciplined and more measured and we benefit from not having to go out and pay those rates |
| We do a pretty good job of it every day of winning those awards |
| And with the exception of one adverse credit, our asset quality strength is consistent with our history |
| Our NIM has held up extremely well the past few quarters even with the deposit pressures |
| This is clearly a one-off situation as the rest of the portfolio is very strong |
| But I think a 5% increase for 2024 is probably a good projection |
| We take comfort knowing that our fundamentals carry the day |
| And our team is just -- this is just -- I guess if you're in the business long enough and we had plenty of collateral and plenty of this and plenty of that and it's just probably the -- everything lining up against us |
| You can see these dynamics on page six of our deck as it shows the doubling of both of our EPS and tangible book value metrics |
| And so, I would say that we're very comfortable with our company and we're very comfortable with our NCOs and our NPAs and we have every expectation that we're going to just continue to do what we've always done for decades |
| So we appreciate everyone and thank you |
| So I think this fourth quarter I would expect us to end up more in line with the guidance we've been giving all year which is the loan book we expected it to grow in the mid single-digits this year |
| I think that's probably a good projection for 2024 |
| That said I mean we still feel very comfortable operating in that range |
| Great |
| Statement |
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| But I still think it's going to be a challenge in the deposit environment we're in |
| The bottom line is the bankruptcy process is slow |
| It is unfortunate to be in a position, where the sale of our collateral will generate almost twice as much as what the senior secured lender is owed, yet that won't be sufficient enough to avoid a loss |
| The credit in question is in litigation, the underlying borrowers in bankruptcy, so we have the need to be cautious with our comments |
| In addition to the specific reserve we took in Q3 shortly after closing the books, we became aware of a few significant new bankruptcy-related claims and we became also aware that the borrower and their consultants will take a significant amount of additional time to wrap it up, all of which costs money |
| It seems like there was a little bit greater pressure than maybe we were looking for this quarter |
| And while it's difficult to provide specifics due to the bankruptcy process, the outside larger possible amount could soak up much of the Q4 earnings |
| The bankruptcy process is maddeningly slow |
| And I'm just going to sound like a broken record, but this outlier credit issue is just -- I've been doing this since 1981 guys and I know that makes me old, but it also -- I can just tell you that I've never experienced ever anything like this |
| So basically what I'm describing is we kind of expect a little bit of contraction in the fourth quarter just based on known exits or refinance that are pending |
| So it's a tough fight |
| Rather, it is a case of we believe severe management failures which were then compounded by outside consulting and legal fees that are being paid from the cash collected, from the sale of our collateral |
| This one is the outlier as far as personal secondary support |
| Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially from those expected |
| The subsequent events were additional large claims that are going to be fought over |
| As I said it's a -- I guess it's a perverse illustration that we could experience this scud missile that lands on us and causes a big hit and yet, we're still going to be returning what we think is going to be at least equal to the industry and perhaps even better |
| We do not see any weakness |
| And I would just say native as I said in those comments that we're expected to -- based on what we see today it's possible they could soak up the fourth quarter earnings |
| And of the five the bankrupt entity is the only one that doesn't have strong personal guarantees, backing the credit |
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