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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| So, we have very high expectations for that to grow nicely and quickly here in Southwest Missouri |
| Capital markets revenue from swap fees has been a consistent and strong source of fee income |
| Our third quarter and year-to-date results demonstrate the continued strength of our franchise our commitment to relationship banking, and the successful execution of our strategic initiatives |
| So with all of that we’re feeling very optimistic about static margin |
| The increase was driven by a static net interest margin and strong loan growth |
| Loan growth was stronger in the quarter, growing 14.2% on an annualized basis |
| Our loan growth was driven by solid activity from our traditional lending business and even stronger contributions from our low-income housing and tax credit lending program |
| Our experienced team of bankers continues to add relationships to our strong and diversified deposit franchise |
| We think that will provide better operating results over time now that we have got the book built |
| Our asset quality remains strong as the ratio of non-performing assets to total assets was 41 basis points at quarter end |
| We delivered solid third quarter results, highlighted by a static net interest margin, robust loan growth and significant fee income |
| But we’re really fortunate to have such strong bankers and very good treasury management people and platforms |
| And so over the last 30 years, this has been a very steady performer from an asset quality standpoint |
| The industry has an excellent track record with negligible historical default rates |
| We continue to maintain strong levels of capital that have supported another robust year of growth |
| We benefited this quarter from a full quarter, a strong growth in our tax exempt loan and bond portfolios that was added during the late portion of the second quarter and throughout the third quarter |
| With continued strong earnings coupled with our modest dividend, our tangible book value per share increased by $0.34 during the third quarter |
| As I noted, this was driven primarily by ongoing strength in our low income housing tax credit lending business |
| And our beta results have actually been quite good on the deposits side |
| In addition, our deposit base is stable, our capital ratios are strong and our asset quality remains sound |
| These are continued, I believe to be the highest quality loan assets we have on our books |
| Our asset quality remains strong |
| Our continued growth in new relationships helped offset market volatility during the third quarter |
| We think that’s going to provide a great funding mechanism, better pricing power on the deposits side for us |
| Our wealth management team continues to benefit from new relationships, adding 220 new clients and $577 million in assets under management in the first 9 months of this year |
| We believe that our LIHTC lending business is extremely valuable and that it deserves a higher valuation multiple than traditional banking |
| Our LIHTC lending and capital markets revenue pipeline remains healthy as our clients continue to experience strong demand for new projects |
| While economic headwinds remain a risk, we have demonstrated excellent historical credit quality, robust fee income sources, a valuable core deposit franchise and a strong capital position |
| In addition, we believe that we have the ability to defend our net interest margins in a higher for longer interest rate environment |
| These qualities, when combined with our current valuation, have positioned our company and shareholders to benefit as we continue to execute on our strategic initiatives |
| Statement |
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| The decline in the TCE ratio was due to the rise in interest rates during the quarter and the resulting negative impact on AOCI related to our securities and derivative portfolios |
| And there is certainly a slowdown in developer business, but some of our core commercial manufacturing owner occupied business, that appears to actually be bouncing back just a little bit |
| The demand for the core commercial business actually slowed a couple quarters ago as rates started to decline because the investor developer kind of stopped, kind of got stressed by that |
| It’s just the mix shift that really caught us and caught the industry, of course |
| The mix shift has really stopped, not just slowed, but for the most part stopped |
| Larry Helling Yes, in the near-term, given the uncertainty that’s going on in the world, and the economic climate, we are going to be very cautious on buyback for the next quarter or two quarters, until we have some clarity on interest rates, and probably on the economic environment |
| Our uninsured and uncollateralized deposits remain low at 20.1% of total deposits at quarter end |
| Classified and criticized loans as the percentage of loans and leases also remain quite low at 1.05% and 2.98%, respectively |
| Our tangible common equity to tangible assets ratio declined 23 basis points to 8.05% |
| And that really has what – has been what has impacted our margin the most during this hiking cycle, of course has been the right side of the balance sheet |
| You mentioned the kind of resiliency of the pipeline, but curious if that has started to slow at all through the quarter, particularly in the non-LIHTC business |
| And so we are going to grow those, but at a more slow pace than we have over the last couple of years |
| As we look to the fourth quarter, we are anticipating a pause from the Fed and a yield curve that continues to be partially inverted |
| Similar to our NPAs, we remain well below historical averages in these categories, and they have remained relatively stable over the course of 2023 |
| As Larry mentioned, our total uninsured and uncollateralized deposits were at a very low level at quarter end at 20.1% of total deposits |
| Core deposits declined slightly by $9 million after growing $339 million or 23% on an annualized basis during the second quarter |
| But I imagine those can come down with the securitizations in the fourth quarter as well |
| But the big assumption around deposit mix is that it’s going to remain fairly static, we did see a real positive slowdown in terms of mix shift in the third quarter, and candidly that’s continued here in October |
| That was somewhat intentional |
| If we are in this rate environment for longer, we feel like we are not going to continue to believe margin, we are going to be able to hang on to it |
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