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 |
|---|
| Even though net interest margin was down 11 basis points for the quarter, net interest income was up $1.2 million to $35.3 million due to strong loan growth |
| I think we've done a pretty good job with that in the past, and I think we will again next year |
| Our insured cash suite and treasury management services have particularly proven to be innovative solutions contributing to our company's growth |
| Looking ahead, we will remain optimistic about our ability to continue to grow our business |
| Our bankers and branches are strategically located in Texas' best markets, providing access to some of the highest quality deals available, allowing us to remain conservative in our deal approach and choose the most promising opportunities |
| We have a very strong guarantor with separate income on that |
| Additionally, we were able to increase book value and tangible book value per share by 1.4% and 1.5%, respectively |
| During the quarter, we also booked a $2.6 million provision for credit losses, primarily driven by strong loan growth for the quarter, which Audrey will discuss in more detail in her prepared remarks |
| Third Coast credit performance for the third quarter was again strong |
| Deposit rates remain highly competitive for this quarter, and we were able to increase our deposits by $238 million or 7% from the previous quarter, a notable achievement |
| And so it's been very nice to get full high-quality customers from some of the competitors and establish relationships |
| So we're being able to see cherry-pick really good customers |
| As we move into the fourth quarter and end of the year, we are confident in our goal to achieve operating leverage, which will translate into increased shareholder value |
| This approach, combined with our commitment to providing innovative solutions and exceptional service has resulted in success across all our markets |
| Overall, we remain confident in our asset quality, which continues to remain strong |
| I think it's an opportunity for us to gain market share in our markets with some of the best clients that are out there with, call it, again, $300 million to $400 million in net growth for 2024 |
| We just have such excellent clients that we're choosing that I think the portfolio is even going to get even better as we continue to grow |
| By delivering exceptional shareholder value and increasing tangible book value per share, we have made significant progress in enhancing our balance sheet and maintaining a strong financial position in the third quarter |
| We believe we can continue to drive increased shareholder value and achieve sustainable success long term |
| Overall, we are confident in our ability to navigate the current economic landscape and stay committed to delivering conservative loan growth |
| This compares very favorably to our peers who over the same period saw an average decrease in tangible book value of 9.3% |
| So we're very excited about it |
| During the third quarter, we achieved significant progress towards our strategy of conservative loan growth, disciplined expense management and strengthening shareholder value |
| And I think the fourth quarter is going to look a lot better, and it's certainly going to tee us up for a good 2024 |
| And our -- the existing lines of business that are left are very profitable, and we're very pleased with their performance |
| We are pleased to see continued loan growth across a diverse range of loan categories, which further strengthens our position in the market |
| Performance for the quarter is a testament to our solid business model and our commitment to prudent risk management |
| I mean -- I think what -- the nice thing the position we're in is we've had some really high-quality customers that we have been onboarding |
| Deposits were up slightly more at $239 million and total assets reached $4.22 billion on all new records for the company |
| I know you guys have had really strong deposit growth |
| Statement |
|---|
| Net interest margin for the quarter was down 11 basis points, slightly more than expected due primarily to higher-than-expected loan growth |
| We therefore believe that for the fourth quarter, the net interest margin will be down less than 5 basis points |
| On the loan side, we have certainly stopped doing that last quarter |
| Just the loss in other noninterest income |
| Well, if I kind of take that and think about the margin in 2024, it feels like there's a little bit more incremental pressure beyond the fourth quarter we talked about, just if we assume those spreads continue |
| So yes, that certainly is a negative shift in the mix |
| Is that right? John McWhorter At the rate that we have been growing this year, yes, and we expect our growth rate to be a little bit slower next year |
| And again, you got to factor in that we're going to have some attrition in loans |
| The SBICs, I mean, they don't often have quarters or they're selling an asset at a loss that we're needing to realize |
| I don't -- you're talking about the one fraud loss -- in other non-income, we had an unfavorable swing quarter-to-quarter and some of that wind of a swap between quarters there, Michael, on SBIC |
| So most of it was related to SBIC having a great quarter last quarter and actually losing a little money this quarter, which we don't have big investments there |
| If we would have grown loans, $100 million in the third quarter, I think we would have been pretty close to our forecast of the margin being down plus 5% |
| But we did have a lot of customer acquisition is we're growing so fast, as John said, the percentage-wise, it's tough to keep up |
| For instance, we have some retail employees that volunteered to learn some of the BSA side and with excess capacity, they're actually performing some of the BSA/AML tasks with it |
| Our total nonperforming assets currently stand at $16.4 million, which is 0.39% of total assets and our net charge-offs have stayed extremely low at $24,000 for the quarter |
| Audrey Duncan And there is a higher credit, may be a high past |
| And then I guess you touched on it a little bit there, but the loan growth outlook, obviously, you guys had some unexpected stuff happened, things got pulled forward to this quarter |
| I think for the fourth quarter, the growth is going to be very mild, $50 million to $100 million |
| And it was, I don't know -- [ 250,000 good last quarter and down 250 ] |
| John, I heard your comments on the drivers of the lower NIM than expected given the loan spread dynamics |
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