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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| And we've I think done some good work and had some good news coming back and you don't have to look any further than the continued growth in both deposits and loans in the small and mid-sized ticket area of business lending to see that benefit |
| Earnings and a lower level of tangible assets contributed to improving capital levels |
| That's something we feel strongly about continuing to do |
| Our balance sheet remains solid with loan growth funded by both client deposit growth and cash flow from the securities portfolio |
| So I think we have a lot of confidence in the sentiment being positive |
| Our goal though is, we don't think about everything in quarters, we think of it in years and it's very important that our company is in super and very strong shape to execute and play very offensive all when the economy turns and we start seeing a better opportunity to grow |
| The market is actually in sales performs well and as you saw, once we get it to the book, the AQ measures were actually quite superior |
| So in the last recessive period, we were really pleased with how those books performed |
| We remain pleased with the quality of our book of deposits |
| We actually feel pretty good about |
| Fee income improved this quarter driven by increases in service charges on commercial accounts and specialty income |
| We've maintained a robust ACL, we have solid capital and multiple sources of liquidity and which will help us manage through any continuing volatility |
| We remain confident in our ability to remain strong and stable as we have for 124 years |
| During the quarter, we built reserves by $4.2 million, which resulted in a solid ACL of 1.45% to loans at June 30 |
| We have a very focused effort also on improving our loan yields both on new-to-bank business as well as renewals |
| And then, obviously, the operating environment is a big -- is a bit better, the potential certainly exists for us to add loan growth next year |
| And obviously, I think that bodes well for us coming in at maybe the lower end of the NIM compression range that I gave in the prepared comments |
| TCE was up 34 basis points to 7.5% and Tier 1 at 11.83% improved 23 basis points |
| And we're pleased to see those capital levels move on up |
| I hope we don't have one, but I feel good about it |
| So I think Mike's word choice was good |
| Otherwise, expenses were well controlled |
| We think and believe that when the cycle is done that where our mix ends up, we’ll still be in an enviable position |
| And that resulted in a pretty significant decrease in our expense run rate and a pretty nice increase, obviously, in our efficiency |
| That could certainly, I think, be a nice lead into 2024 |
| And that does indicate that the NIM story for '24 and '25 may be a lot brighter than the compression we took in '23 |
| We had a terrific year up until now |
| We've talked in the past around standing up a very professional and very effective strategic procurement process |
| So yeah, that is encouraging and I think that speaks probably as much as anything else to the fact that we do see deposit costs kind of leveling out a bit |
| And so I hope that kind of gives you the tone of a lot of confidence in our markets |
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| However, growth remains a challenge in today's environment |
| The challenges we face as an industry from rates and deposits both mix and betas has led to higher than expected NIM compression in turn driving linked quarter decreases in net interest income and earnings |
| And so with a little bit more anemic outlook for that traffic for the back half of the year, we resized the guidance down a bit to accommodate it |
| As of mid-year, demand continues to soften in new construction, middle market and corporate banking as disciplined pricing, more conservative terms, inflationary pressure and debt costs sideline clients waiting for a more advantageous borrowing moment |
| If folks ought to stay short and higher and obviously, that's a little pain that we have to endure |
| And if that happens, our ability to reprice down from the levels Mike mentioned really is challenged |
| One of the pushbacks I get on Hancock is just the markets might not perform as well in a recession |
| It's just more respectfulness of a slower accounting that may lead to slower opportunities for them to gather revenue |
| The net effect is a slowing of net loan growth, but becoming more granular with better yields and in more self-funding sectors |
| New Orleans that suffered mightily during the pandemic because the convention center and family tourism economies shut down hard in ‘20 and really only family came back in ‘21 then everything began opening back up in ‘22 |
| So they're having to kind of manage through that as well as companies that are maybe having some continued staffing challenges just because of the relatively low unemployment rate |
| PPNR was $158 million for the quarter and was also down $9.2 million |
| And while that NIB mix has certainly come down |
| And when we talk to our clients, particularly the larger clients, four or five months ago or so, there was a lot more -- when I say concern, I don't mean concern like handing it but just very, very mindful of the risk that if the Fed's increase in rates was so steep and so long and kept going, then we could see that proverbial hard landing |
| The other area of utilization that's come down is just normal commercial utilization came down |
| Included in our assumptions is the expectation that our non-interest bearing deposit mix could fall to just below pre-pandemic levels by the end of the year or about 35% |
| I know it's been very clear that there's ongoing margin compression ahead maybe at a less of the pace than what we've seen in the second quarter |
| I mean, we had a bad time with energy, but it was not because of the economies in our markets |
| It was because we had too high a concentration at a bad time |
| So that's more or less, I think it's kind of calmed down a bit |
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