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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| Although we don't anticipate significant changes to the capital rules, we are pleased with these results and believe they will likely compare favorably to other peer banks |
| We will again start with deposits, reporting linked quarter annualized average growth of almost 19% in the third quarter was again a real positive for us |
| Also, our asset quality continues to be strong with problem asset metrics continuing to outperform peers at 23 basis points |
| That's a huge opportunity for us to produce outsized growth, given our proven ability to take their share |
| And of course, that begins to explain our substantial outperformance in terms of deposit growth shown here on the far right, our net deposit growth, our ability to attract and retain deposits is wildly better than peers, both prior to the bank failures and subsequent to the bank failures and I'd say that's a valuable deposit franchise |
| So along that, along with our other equity investments that we've got, we still feel pretty good about the decisions we've made on all those fronts and what opportunities they present us |
| Placements to the bank network were less in the third quarter, while placements to the institutional investors were again at the highest level ever and signaled that demand for BHG paper some of the most respected asset managers in the country continues to be really strong |
| According to Greenwich, our ability to create an experience that results in raving fans, promoters is literally one of the best in the nation |
| Power, we have the second highest Net Promoter Score of all the top 50 banks in the United States based on asset size |
| But I would say, Steve, you know better than I do what all the variables are out here to fear, but it feels a lot more stable as I look at what our business model is today than it did in early '23 |
| And so even if you're the top quartile, and that's flat EPS growth or even down EPS growth, still better than peers, but still flat to down |
| As many of you know, our goal is to be the best organic deposit grower and we feel like we are on our way |
| The third quarter was another strong loan growth quarter for us as we were reporting an 8.4% linked quarter annualized average loan growth |
| Terry Turner Catherine, I think you know this, but just to make sure everybody gets it, the focus of our company has been and continues to be a top quartile performer in terms of revenue and earnings growth |
| Spread maintenance on floating and variable rate loans continues to be strong |
| We are pleased with yields on our originations and believe we can continue to maintain similar loan spreads as we enter the fourth quarter |
| We think we've got great opportunities on loan repricing like you talked about |
| And so, as we think about this next year with revenue growth, still better than your peers, but probably moderating just given the rate environment we're in |
| The workplace awards we've won, the service and brand awards we've won, the outsized shareholder returns we've produced over short, medium, and long-term time frames |
| We have great confidence that we'll be able to manage the high-quality banking franchise that our shareholders have put it back from us and can currently handle whatever curve balls get thrown our way |
| We're optimistic about what they can accomplish, and we think they're building a very valuable franchise over the short and intermediate terms that could be valuable to anyone that might think that that going into that market segment would be advantageous for them |
| The other categories of revenue producers, we've been pretty successful in other wealth advisory |
| BHG had another strong quarter with approximately $1 billion in originations and are on track to achieve $3.8 billion to $4 billion in originations this year, which is slightly less than last year, but consistent with our outlook from the last quarter |
| And so, the combination of the model and the differences in our company today versus prior cycles are the principal reasons I feel good about where we are |
| We're excited about our solar business and what we believe it can and will accomplish |
| So, we're proud of what they've been able to accomplish, and we're optimistic about what can be coming to us next year |
| Production volumes remain strong even with tighter credit underwriting |
| We believe the current recruiting model in the existing footprint is going to produce outsized growth |
| All of those listed here have positive share growth |
| At a glance, you can see that we continue to grow revenue and EPS more rapidly and reliably than peers that we continue to grow our balance sheet volumes more rapidly and reliably than peers and that we relentlessly focus on tangible book value |
| Statement |
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| We've -- most of the Street is forecasting for EPS to be down for most of your peers into next year |
| It was the worst bank care since the Great Depression and it occurred in this time of frictionless transfers |
| This has been quite a year, lots of concern about interest rates when you had it in, lots of concerns about inflation quickly into the bank failures and [indiscernible] just lot of opportunity for caution |
| As we look to the fourth quarter, BHG believes origination volumes will likely be less than Q3 as they continue to shrink their credit box, and they believe sales into the bank network could experience some decline over the next few quarters as that client base continues to wrestle with a more restricted funding environment, and we also believe BHG will likely want to build loan inventories in the fourth quarter as they head into 2024 |
| Our natural model didn't produce much in the way of commercial real estate, but the acquisitions that we made left us with the concentration in residential real estate at the worst possible time to have one |
| For each of the three banks that dominate our footprint in terms of existing deposit client share, in other words, for each of the three market share leaders between 17% and 22% of their clients indicate they're likely to lose business in the next six to 12 months |
| As the top chart reflects our NIM decreased 14 basis points, which is more than we anticipated at the start of the quarter |
| And really, that's -- we saw three relatively large bank failures -- fail precisely for that reason |
| As we mentioned last quarter, BHG had a conservative bias going into the third quarter such that as they continually tightened their credit box, production in the last half of the year was expected to be lower than the first half |
| But if you think about those banks, I listed there, most of them have a difficult landscape which brings pressure in their organization |
| A lot of them are losing staff because of the continued rollout of tightened policies and all those kinds of things |
| Our tangible book value per common share decreased to $48.78 at quarter end, down slightly from June 30 |
| Quickly, the useful slide detailing our financial outlook for 2023, we have a bias currently toward a more cautious outlook when it comes to credit, interest rates, and capital |
| The obvious void is Florida |
| As we approach the middle part of the quarter, it appeared that rate pressures did subside somewhat, mix shift of noninterest-bearing to interest-bearing slowed during the third quarter as we were down $112 million, much less than prior quarters of this year |
| In my judgment, they all took extraordinary risk; and two, the stickiness of their deposits |
| And then you mentioned earlier about the pressure on the noninterest-bearing deposits has slowed quite a bit |
| And so, we said, well, what made it bad? We had just completed two acquisitions immediately prior to going into the Great Recession |
| In that period of time, we lost a little less than 5% |
| And I think you guys have built a pretty unique model, which is attractive, but also might be challenging for another bank to kind of maintain if they were to try to buy you guys, especially just given the independent culture that you have |
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