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 |
|---|
| And we've had better success with that |
| Our revenue growth is a direct result of our deliberate underwriting, a solid balance sheet, and in-house liquidity |
| We have built a resilient, well-diversified portfolio and a strong balance sheet, which gives us confidence as we navigate the current environment |
| Further, our experience in navigating difficult lending cycles has allowed us to build a resilient portfolio structured to reduce steady, above average, risk-adjusted returns |
| I am pleased to report Sachem produced solid results in the third quarter despite a persistently difficult macroeconomic backdrop |
| Additionally, it is our underwriting practice to lend to borrowers with strong credit profiles and a proven record of performance |
| In closing, our disciplined approach to operating our business and managing our portfolio has positioned us for ongoing profitability and continued growth in the future |
| So we think it's a good long-term hold |
| We've had very good leasing interest from some very large players |
| As our capital continues to cycle, we are poised to redeploy into higher-yielding loans with well-capitalized sponsors |
| Sachem's record on workout resolutions is quite successful |
| Having liquidity on hand provides market strength and positions us to select the best alternatives for our invested capital |
| Let me touch on some more key financial metrics in addition to the strong revenue growth and financial flexibility |
| Due to our disciplined stance and uncertainty on the macro front, we have maintained strong liquidity |
| This liquidity affords us significant flexibility to prudently allocate capital in a selective manner |
| As part of our process, this structure allows us to reprice capital quickly, better protect our margins in this rising interest rate environment |
| They should be SBA, they should be at a bank, and they should be getting much better rates that we can offer |
| We will continue to have a clear eye on asset protection and continue to expand the platform to build long-term shareholder value |
| With this discipline as our guide, Sachem achieved revenue growth of approximately 30% to $17.5 million compared to the same quarter in 2022, and net income attributable to common shareholders of $5.2 million, or $0.12 per share |
| So we're looking for deals that have better margins, which most often will take you to a little bit of a larger deal, better quality sponsor, better capital light sponsor |
| We think it's a great project, and it's a way for us to reduce our exposure in a commercial office product |
| While our originations have been curtailed, similar to others in the industry, we continue to build a robust pipeline for modifications and construction loans |
| Thanks for taking the question and congrats on a nice quarter |
| Great |
| A significant portion of our paydowns resulted from the successful completion of one of the Sachem's largest projects to date, $22 million construction loan in Sarasota, Florida, highlighting the execution of our business plan |
| Specifically, we made some significant progress regarding non-performing loans in the quarter, reducing them by approximately 12% quarter-over-quarter |
| And usually over the term of the loan, when interest income, origination and other fees are considered, the overall transaction is profitable |
| So we love -- we kind of like this |
| We're asking a lot of questions, and I'd have a pretty good resume to get a loan here at the moment |
| Good morning |
| Statement |
|---|
| In keeping with our disciplined approach and our ongoing cautionary view of the lending marketplace, our originations have continued to trend below our recent historical levels |
| The local bank is struggling |
| There are people looking to fund and complete projects, and they're having trouble getting the capital that they need |
| It is no longer news that loan originations in the commercial and residential real estate sector have slowed to a trickle, if not stopped completely in some areas due to the dramatic rise in interest rates over the past two years |
| The balance sheet is not as strong |
| We are now, in this quarter, seeing some pressure at the [13 and 3] (ph) level, where deals and projects are not workable at those rates |
| But let truth be told, a lot of the lenders that are not distressed funds, they're struggling |
| So there's a lot of, first of all, competition from distress, but on the -- the regular business lenders are struggling, and I'll throw banks into that mix |
| For the nine months ended September 30, 2023, the company impaired approximately $613,000 of loans and had a loss on the sales of real estate owned of $72,000 |
| A successful completion of the residential portion of the project will reduce our basis in the property to 50% |
| These modifications resulted in gross fee income of approximately $1.1 million, supplementing our reduced origination fee income |
| Lastly, loan impairments are down slightly compared to the year-ago, nine-month period |
| While we view this situation as an opportunistic way to grow market share, we are also mindful of our portfolio management and capital resources |
| So that CECL -- the recovery of CECL is a result of the mortgage portfolio shrinking a bit during the quarter |
| Furthermore, in recent weeks, many mid-sized financial institutions, as well as non-bank lenders like Sachem, have reported an increase in non-performing loans in the third quarter |
| It is our experience that a troubled or distressed loan rarely loses all of its value |
| So you'll see quarter-over-quarter, you saw a little bit of shrinkage in the mortgage balance as a whole as a result of that large payoff that John referenced on the call |
| Stubbornly high inflation coupled with the market's uncertainty as to the direction of the Federal Reserve's policy has kept us measured and prudent in our approach with shareholders' capital |
| In normal circumstances, there would be [Technical Difficulty] taking a long time |
| And we're falling back to our customary 12% and two origination points, and those deals are still getting funded |
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