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 were successful in execution this quarter with loan origination volumes at the lower end of the quarterly range and loan payoffs also at the lower end of the quarterly range |
| You will find that we included slides regarding financial metrics, asset quality and capital management, which we believe will give you additional insight on our solid financial foundations supporting the future growth of the company |
| We exceed well capitalized capital ratios by a significant margin, allowing us to execute on our business plan and capital management goals without complications |
| I think September quarter was a better environment than either of those two quarters |
| Net interest margin this quarter was favorably impacted by approximately 1 basis point as a result of lower net deferred loan costs associated with loan payoffs in the September 2023 quarter in comparison to the average net deferred loan cost amortization of the five previous quarters |
| We continue to look for operating efficiencies throughout the company to lower operating expenses |
| Current credit quality is holding up very well, and you will note that nonperforming assets increased to just $1.4 million, which is up slightly from the $1.3 million on June 30, 2023 |
| I think as we get down into our current fiscal year, we might populate with some growth because I think the environment has certainly stabilized from the March quarter, the June quarter, better environment than the March quarter |
| The investor deck has really good information on your loan to values |
| Additionally, we're seeing more consumer demand for single-family adjust rate mortgage products as a result of higher fixed rate mortgage interest rates |
| We also recognize that prudent capital returns to shareholders through stock buyback programs is a responsible capital management tool |
| Our earning asset yields went up about the same as our interest-bearing liability costs and that kept our net interest margin flat |
| It’s typically suburban markets, and those markets seem to be doing better than some of the urban centers seem to be |
| And congratulations to you both |
| Our net interest margin was unchanged at 2.88% for the quarter ended September 30, 2023, compared to the June 30, 2023, sequential quarter as a result of a 17 basis point increase in the average yield on total interest-earning assets and an 18 basis point increase in the cost of total interest-bearing liabilities |
| Although this quarter, it was a little bit better than that |
| There's new technologies that one can potentially adopt to improve efficiencies |
| Tim Coffey Okay, sounds good |
| Great to see |
| Good morning, everyone |
| We believe that maintaining our cash dividend is very important |
| So those are really low, so that’s good to hear |
| Good morning, gentlemen |
| We are aware of the mounting concerns regarding commercial real estate loans that are confident that the underwriting characteristics of our borrowers and collateral will perform well |
| Donavon Ternes Good morning |
| Thank you |
| Thank you |
| Thank you |
| Thank you |
| Thank you |
| Statement |
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| And as a result of that, origination volume has come down |
| But the servicing that we have right now is down significantly from what we once had |
| The market is not very good there |
| Currently, seems that many real estate investors have reduced their activity as a result of rising mortgage and other interest rates |
| So a significant decline from the June quarter, of course, because of unusual items |
| In the most recent quarter, we originated $18.5 million of loans held for investment, a decline from the $24.3 million in the prior sequential quarter |
| We always have challenges and opportunities with respect to how we operate the company |
| During the most recent quarter, we also had $23 million of loan principal payments and payoffs, which is down from the $25.1 million in the June 2023 quarter and still at the lower end of the quarterly range |
| The problem was they were in lease-up and they couldn’t get the new tenants in the building |
| We believe that slowing the loan portfolio growth is the best course of action as a result of tighter liquidity conditions |
| So I think it's really a question of what we see the environment doing and primarily liquidity environment |
| So it would be, I think, slow growth, but it's not necessarily flat |
| But as Craig mentioned in his comments, we didn't meet some of our bonus targets for the quarter |
| And so there’s certainly pressure on deposits and the cost of deposits |
| So there’s going to be limited impact with the slowdown in prepayments on that asset |
| The problem wasn’t that they were office loans |
| And then deposit cost increases look like they slowed this quarter |
| For the fiscal 2024, we expect a run rate of approximately $7.2 million per quarter as a result of increased wages and inflationary pressure on other operating expenses |
| As we go down the timeline, it’s very difficult to forecast what those prepayment speeds are going to do from one period to the next, although you can get somewhat of a sense of it, I suppose, by understanding that the MBA mortgage index went up by 68 basis points for the current quarter, and that resulted in the provision that we populated for this quarter on a relatively flat balance sheet with respect to the amount of loans outstanding |
| I’ve been hearing from many others and reading many analyst reports with respect to earnings season that other banks are experiencing a slower rise in deposit costs |
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