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 |
|---|
| Given the margin pressures, our diversified business model continues to serve us well throughout this cycle with combined wealth management insurance revenue up 5.2% year-to-date |
| Our team continues to focus on making a positive impact by serving our customers, communities and each other |
| The economy continues to stronger than I think everybody thought it would be at this point |
| This was primarily driven by increased revenue from our wealth management, insurance and mortgage banking lines of business |
| Again, I think there could be some slight upside potential in growth that would occur in ‘24 |
| Loans grew by $112.7 million and deposits increased by $451.8 million |
| And then you see stabilization with the upside potential thereafter |
| But given all of the other headwinds with liquidity, with making sure that we have strong capital, we have deliberately focused on full relationship customers that we have and making sure that we can support them |
| So we are – trust me, we could have grown loans double digits this quarter if we wanted to |
| We did experience significant deposit growth during the quarter due to the seasonal build of public fund deposits |
| Obviously, it seems like a pretty good sign to move at par |
| Great |
| As we have said before, our diversified business model continues to serve us well during the current interest rate cycle and a resulting pressure on our spread business |
| But I do think just as you think about one of the benefits that you get in an uprate environment is churn that occurs in the portfolio |
| Fourth, non-interest income increased $732,000 or 4.1% compared to the third quarter of 2022 |
| So the fair value exceeded our carrying value we got out of par |
| Before I pass it over to Brian, I would like to thank the entire Univest family for the great work they do everyday |
| Jeffrey Schweitzer Good morning |
| Frank Schiraldi Good morning |
| There are still definitely opportunities out there on the loan side |
| Thank you, guys |
| Have a great day. |
| Statement |
|---|
| Like most in our industry, we continue to be impacted by the rising cost of funding, primarily driven by the mix shift in deposits, which negatively impacted our net interest margin during the quarter |
| First, as Jeff mentioned, we saw continued pressure on funding cost and net interest margin, primarily due to the ongoing mix shift of deposits as well as increased deposit betas |
| We – as we’ve forecasted in the last quarter and we continue to talk about, we are deliberately slowing loan growth down given liquidity pressures, the cost of liquidity and also our desire to continue to maintain |
| Third, our non-interest income growth guidance for the year is being reduced from 2% to 4% to 0% to 1% |
| Excess liquidity averaged $103 million for the quarter, which reduced reported NIM by 4 basis points |
| Reported NIM of 2.96% decreased 18 basis points compared to last quarter |
| This has slowed lending by design as we focus on liquidity and maintaining capital for existing full-service customers |
| Fourth, our non-interest expense growth guidance is being reduced from 6% to 8% to 6% to 7% |
| But in that operating environment and as we get later into it, that churn definitely starts to slow down with prepayments and the like |
| They actually ran into project delays with regard to electrical panels and the like, which is kind of common in the real estate space at this point in time |
| However, the wildcard continues to be what happens on the deposit side as it relates to both customer behavior and competitive behavior of our peers |
| But there will be slight downward pressure in a down 200, say, scenario |
| Second, our provision for credit loss guidance for the year is being reduced to $12 million to $14 million |
| We did see this shift slow during the third quarter compared to the second quarter |
| And then you see a slight wind down in the fourth quarter and first quarter and into the second quarter with the Q2 being 630 being the kind of low point normally for the year |
| I’m not sure – I think you said brokered fell in the quarter |
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