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.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| First, let me start by saying that the quarter was really an excellent one in so many ways |
| Finally, our NIM for the quarter was 5.30%, really all -- we think outstanding results for the quarter |
| In terms of asset quality, and of course there's a lot in the news about commercial real estate, our portfolio continues to perform very well |
| Rick Wayne Excellent |
| And so we will see what happens in this quarter that we're in now in the following quarters, but we are optimistic about our opportunities to purchase loans in this environment |
| Was there anything that you think unusual in this quarter, JP? Or is that a good number going forward? JP Lapointe I think that's a pretty good number going forward |
| So to the benefit of our listeners that are loan book has increased by almost $1 billion since December ‘22 |
| Thank you all and have a good day |
| But I think the number we have now, JP, we’re thinking that was about a good reasonable number for a run rate |
| With respect to what we see in the marketplace, we see lots of opportunities |
| And as you move towards the end of the calendar year, where sellers are more motivated to sell for various reasons, the obvious one is that their fiscal year is coming to an end, we're seeing more realistic expectations about pricing, and therefore, easier for us to buy loans than it had been previously |
| Rick Wayne Thank you, and thank you those |
| Rick Wayne Thank you, and good morning, everyone |
| This should also make interest income from purchase loans more consistent and may contribute less transactional income than we had historically recognized on its portfolio |
| Rick Wayne Good morning |
| As you can see on slide nine, the adoption increased our non-performing loans by $2.3 million for the quarter by increasing the carrying balance and the related allowance for those loans |
| Thank you |
| Statement |
|---|
| With respect to loan activity, on the originated side, we have seen our volume over the last five quarters declining |
| And there's also a fair amount of disagreement on value that's still out there as some markets we target |
| But I think it's definitely slowing down from where we were over the past year |
| I think mostly, we've caught up |
| Absent CECL adoption, non-performing loans would have been approximately $500,000 less than the previous quarter |
| It seems like the pace of increase in deposit cost is certainly slowing |
| And then just as we think through the right level of non-interest expenses, any help that you could provide? I think this quarter was a little bit impacted by stock-based compensation, if I'm not mistaken |
| At September 30, the allowance decreased to $25.3 million, and that decrease during the quarter was primarily due to charge-offs related to purchased loans that had been carried at zero |
| So excluding that, our non-performing loans were down by about $500,000 and they represent 69 basis points, our non-performing loans over our total loans |
| And so therefore, higher operating expenses are not shocking |
| While the bank has certainly had very low charge-offs, including zero charge-offs on the National Lending originated portfolio, under CECL purchases with credit marks are now reserved for in the allowance and then charged off through the allowance, which could give the appearance of increased charge-offs |
| So given the fact that now we have to take these over the contractual life and not some level of modeled extension, there's a possibility that there's going to be less discount available when a loan pays off since we're taking it over a shorter life on some of those loans where we had modeled extensions previously |
Please consider a small donation if you think this website provides you with relevant information