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| Statement |
|---|
| Our capital ratios remain strong with all capital ratios well above the capital adequacy and well-capitalized thresholds |
| The markets we serve remain healthy and continue to grow and perform well |
| This morning, we reported net income of $18.4 million, earnings per share of $0.60, a return on average tangible common equity of 13.17%, and continued strong asset quality metrics |
| Asset quality metrics remain strong with non-performing assets of $4.4 million or 0.5% of total assets on September 30 |
| Liquidity resources remained solid with $2.4 billion in liquidity lines available as of September 30 |
| Now if things change and rates change, then, you know, our markets are strong |
| Linked quarter, we experienced loan growth of $91.6 million and deposit growth of $231.9 million |
| A lot of these that, you know, are two years and three years out and I wish my Ouija board was good enough to know if rates are going to be higher or lower at that point in time |
| Our deposit growth was driven by higher-cost public fund deposits of $265.8 million from two of our contractual municipalities |
| We had loan growth of $91.6 million or 2.1% linked quarter, driven by a $63.2 million increase in construction loans and a $17 million increase in commercial real estate loans |
| Great |
| Great |
| Our fully taxable equivalent efficiency ratio increased to 52.29% as of September 30 from 51.06% as of June 30 |
| Good morning, guys |
| Good morning, everyone |
| Good morning, everyone |
| Good morning |
| Good morning |
| Deposits increased $231.9 million or 3.8% on a linked quarter basis, driven by an increase in public fund deposits of $265.8 million |
| Thank you again |
| Thank you |
| Thank you |
| Thank you |
| The increase was driven by our loan loss provision of $6.3 million and a provision for off-balance sheet credit exposures of $0.6 million for the third quarter, and when combined, increased $7.1 million from prior quarter |
| Julie Shamburger Good morning |
| Lee Gibson Good morning |
| Statement |
|---|
| During the quarter, we recorded a provision for credit losses of $7 million, due primarily to increased concerns reflected in the CECL economic forecast related to the commercial real estate market and repricing risks associated with the overall higher interest rate environment |
| We reported third quarter net income of $18.4 million, a decrease of $6.4 million on a linked quarter basis, and diluted earnings per common share of $0.60, a decrease of $0.21 or 25.9% linked quarter |
| So, long story short, we're not seeing it, and - but the economic forecast is - you know, reflects concern in that arena and reflects concern around the commercial real estate market, you know, especially around office, and, you know, we're just not seeing it in our portfolio |
| Our tax equivalent net interest margin decreased 15 basis points on a linked quarter basis to 3.02% from 3.17% |
| But, you know, I would anticipate that, you know, we're probably looking at some additional NIM pressure, you know, and I wouldn't say just slightly below 3% |
| The tax equivalent net interest spread decreased for the same period by 24 basis points to 2.31%, down from 2.55% |
| But there's so much uncertainty out there in the overall market nationwide |
| These higher-cost deposits combined with overall higher funding cost pressure were largely responsible for the 15 basis point decrease in linked quarter in our net interest margin |
| For the three months ended September 30, net interest income decreased $643,000 or 1.2% compared to the linked quarter |
| Our current loan pipeline is less robust than earlier this year |
| Non-interest income, excluding the net loss on the sales of AFS securities and equity securities, decreased $452,000 or 4% for the linked quarter, driven by non-recurring income recorded in the second quarter relating to the gain on the purchase of $5 million of our subordinated debt |
| Brady Gailey So the margin is still above 3%, but, you know, it keeps moving down every quarter |
| The increase in provision was driven by the increased economic and repricing concerns forecasted in our CECL model |
| So I would - and answer to your - it's a long answer, but in answer to your question, you know, I think there's still some more margin compression coming |
| I'd say, you know, it potentially could get, you know, 25 or so basis points, you know, below 3% at some point |
| It sounded like repricing risk and some CRE-related stuff |
| Income tax expense decreased $1.4 million to $3.1 million, and our effective tax rate decreased to 14.5% for the third quarter from 15.5% in the previous quarter |
| Our AOCI on September 30, 2023, was a net loss of $155 million compared to a net loss of $115.7 million on June 30, 2023 |
| How - when do you think we're going to hit the bottom on the net interest margin? Do you think it dips below 3%? Lee Gibson Yes, we are - I mean we did swap another $100 million, so, you know, we think that'll take a little bit of the pressure off |
| Our securities portfolio decreased $4.8 million or 0.2% on a linked quarter basis |
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