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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| We’re capitalizing on opportunities and I’m proud of all our bankers as they accomplish all of this across all our communities |
| Some positives for the quarter included higher yields on loans and balances at the Fed combined with higher loan volumes |
| This solid performance can be attributed to the execution of our sustainable organic growth strategy and the commitment to our culture that develops deep customer relationships and provides world-class customer service |
| So we are hiring, but it’s a part of our strategy that we’ve put in place already, we’re having good success there |
| This is a long-term product, a long-term relationship, so we feel really good about it |
| As I mentioned, we’re laser focused on our efforts to achieve organic growth and I’m very pleased with our results |
| We think these are great opportunities |
| So, I think we’re really pretty competitive and feel good about where we’re at |
| The reason I labored through that detail is to show you that the kind of business we’ve been successful generating in our expansion is core, stable, grassroots business, which I believe will generate tremendous value over an extended period of time |
| I’m very pleased with the results of these efforts, and I believe that this strategy is both scalable and durable, and I’m convinced we’ll be doing this for a long time |
| Looking at our consumer banking business, we continue to see outstanding organic growth |
| We added 6,220 net new-checking households in the quarter, bringing the year-to-date totaled to 22,800, a 12% improvement on 2022 year-to-date results |
| I feel really good about the customers, not every one of them has performed like we want, but most of them have |
| And we’re just seeing a lot of good opportunity |
| As in the past, our balance sheet and our liquidity levels remain strong |
| As Phil mentioned, we’ve been very pleased with the volumes we’ve been able to achieve |
| And we are getting good applicant flow and put it that way |
| Our new opportunities for the quarter were strong, but they were down 17% from the second quarter |
| But I feel really good about how we’ve done things |
| In fact, I think it shows we were doing our business pretty well |
| Regarding commercial real estate, our overall portfolio remains stable, with steady operating performance across all types and acceptable debt service coverage ratios and loan-to-values |
| Our investor CRE portfolio has held up well with the average performance metrics remaining essentially unchanged quarter-over-quarter and exhibiting an overall loan-to-value of about 54% loan-to-cost of about 60% and acceptable reported debt service coverage ratios |
| We believe these are industry-leading numbers and represent tangible evidence that the customer experience we offer and the reputation we’ve built set us up to be successfully competitive |
| During the quarter, we did not make any material investment purchases and sold about $361 million in municipal securities at a small net gain as we took advantage of market dislocations, which allowed us to improve interest income going forward |
| These factors are evidence that the growth is sustainable and beneficial |
| So, I don’t know that I can confidently say that we’re at the bottom, but I certainly feel a whole lot better today than I did a quarter ago |
| This means we grew our core customer base by 23% in just 3 years |
| When I hear that, it makes me feel really good about just how core and how stable it is, because that’s really our wheelhouse |
| When you have a balance sheet like ours, it puts you in a good place to take advantage of opportunities |
| They’ve been doing a good job |
| Statement |
|---|
| It’s just most people, when you talk about their business and there are some problems here and there |
| Higher interest rates continue to be a challenge for our CRE borrowers and have impacted performance of some project as compared to original performance |
| The fourth quarter for us, I think, is going to be a little bit weaker, I don’t think it’s – and it’s not significant |
| I don’t get the sense we’ve had a tremendous problem here in the state |
| However, that was because our second quarter new opportunities were at all-time high after the dislocations brought on by the SVB situation |
| But, I think there’s more worry about than there are actual problems today |
| So there are some issues, but it’s not bad |
| Now, moving to our net interest margin, our net interest margin percentage for the third quarter was 3.4% down only 1 basis point from the 3.45% reported last quarter |
| I mean, if you’ve got an office building that’s refi-ing [ph] now and you don’t have the capacity or the willingness to right size it, there could be some issues there |
| They were down from $9.8 million in the second quarter |
| Trust and investment management fees were down $1.8 million or 4.5% compared to the second quarter, driven by a decreases in estate fees of $1.1 million, real estate fees of $673,000, and tax fees of $413,000, partly offset by an increase in investment fees of $750,000 |
| Look, Cullen/Frost got some loan growth, they must be just taking other people’s problems |
| So there’s a little bit uncertainty there |
| Our tax exempt municipal portfolio averaged about $7 billion during the third quarter, down $505 million from the second quarter and had a taxable equivalent yield of 4.26%, down 1 basis point from the prior quarter |
| Annualized net charge-offs for the third quarter represented 11 basis points of average loans and year-to-date annualized net charge-offs are 18 basis points of average loans, which is below historic averages |
| But if you didn’t bid the right way and cost went up, you got a fixed rate deal, fixed cost deal, that could be some issues |
| We’d like we’re going to get canceled or something, because there’s – I guess if you watch too much TV, you think it’s supposed to be bad |
| And so that’s probably some issues |
| One thing we’ve seen more competitive pressure today in the last couple of recent weeks, it’s been more on the CD side |
| I know you noted the expense growth rate would likely come down next year |
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