Earnings Sentiment

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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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
And we are very pleased with that
I'm very pleased to report another quarter of record income
The bank has been in the last several years, has been reporting earnings quarter-by-quarter beating consensus estimates
I mean, certainly, it's been a huge advantage to have a small portfolio in this environment and not thinking so much about current profitability, but down the road profitability
And so we find ourselves in a very good position right now with our liquidity because we haven't done that and with respect to our tangible capital levels as well
That's the highest rate we have
It's good to see
So even with a little bit high cap, I believe our cushion is still there and our credit should be performing well
The buyback is highly beneficial or accretive to the EPS for our remaining outstanding shares
However, we do have very strong individual guarantors behind it
But new loan will give us long-term growth
We will continue to hedge ourselves to offer the bank efficiently and prudently
Credit quality remained generally stable
You guys had some good deposit growth this quarter
So valuations still maintains pretty good for our bank because normally, we maintain our loan-to-value ratio around 55% around
Loan number one is a $16.1 million loan that was borrowed by one of our very good borrower for many, many years
Compared to the second quarter, net income and -- net interest income both increased and our expenses decreased
We have recently conducted the stress test, unbelievably on the office side that these are -- all those ratios are pretty good comet
So with that, I hope that we can continue to be this way
That's always good to see, Matthew
But I'm also happy to see the new migration into the category is very, very limited
And I'm happy to report we have received full payment yesterday
Great
Edward Czajka And Gary, the profitability of the overall bank is really one of the main drivers behind having such a large cash position that we've had over the last 10 years
I also like to report with the large amount of buyback and with the dividends Preferred Bank's tangible capital ratio actually increased to 10.1%
We believe that one of the -- we believe that's one of the top level -- allow us number among our West Coast peer group
Good to see no additional OREO-related costs or very minor costs this quarter
And looking forward to fourth quarter, we think the trend will continue
Thank you very much
Thank you
       

Bearish Statements during earnings call

Statement
Loan demand continues to be low as our customers seems to be much more cautious these days and our underwriting standards remain elevated
Unfortunately, the gentleman passed away recently and the large and complex estate has caused the delay of resolution of this loan
I hear some of the commentary around the loan growth and the challenges there right now
I mean if that issue doesn't get resolved, everybody will have to worry about the large DDA they are getting from our customers in changing the nature of liquidity and coverage
Our operating costs remain under control
And some of the loans are below we think a handful of those credits with a little bit weak DCR ratio
If any of these uncertainties materialize or any of these assumptions prove incorrect, Preferred Bank's results could differ materially from its expectations as set forth in these statements
So we like to believe we will tell forte little bit more cautious so that it wouldn't allow a lot of adjustment, the write-down of our portfolio
We have seen deposit costs slowdown
But as the pure dollar amount of DDA, we're just like everybody else seeing that small migration into the higher cost area but we hope the pace has slowed down
So I don't know that issues still out there
And then if we kind of -- we think about loan growth over the next 12 months, where are some of the biggest headwinds that you're seeing right now? Li Yu Well, I think the interest is still the biggest headwinds -- headwind, okay? Because based on what we see our borrowers seems to be they're all stable and affluent to get
Li Yu Can I bring in another level, okay, in changing from a more macro basis? To me, at this point in time, doing a new normal is a lot less profitable than buying back the stock
Forward-looking statements are also subject to known and unknown risks, uncertainties and other factors relating to Preferred Bank's operations and business environment, all of which are difficult to predict and many of which are beyond the control of Preferred Bank
   

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