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.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Portfolio is growing nicely from the net growth of the originations and in terms of credit performance, the NPLs for the quarter moved up to 10% from 8.2% in the previous quarter, there are really three things going on there |
| And in terms of credit performance, we keeping a close eye on it, but we think that we’re going to do very well and continue to see good positive resolutions a good shape from a capital position |
| Our continued growth and earnings and book value are a result of a sound strategy and attention to detail from everyone at the firm |
| Page 10 illustrates the continued success of our NPL resolution efforts |
| This pullback has allowed us to create attractive risk adjusted deals for new portfolio loans |
| We recognized a 19% increase in originations versus the prior quarter, while holding expenses flat, which obviously improves our operating margins |
| With respect to credit performance, we continue to profitably resolve delinquent loans and recognize overall gains from recognizing default interest |
| The strong production increase in Q2 at the 11% WAC demonstrates the continued borrower demand for our product |
| Looking forward, we think the market is doing very well, especially in light of all of the Fed action |
| Process come off some of the overheated markets, has Fed policies cooled, the rapid price appreciation we were experiencing, which we view as a long-term positive for our business |
| Capital markets are improving as we see spreads starting to tighten and better investor participation in the new issue market due to limited supply and the potential of a terminal rate from the Fed |
| Our financing relationships and capital sources are strong as we continue to grow earnings and work to improve our return on equity |
| In short, our business is performing very well and the team is passionate about growing our assets, our people, and our opportunities |
| We continue to see very strong real estate market |
| On Page 3, from an earnings perspective, really nice growth in earnings per share, great quarter for us |
| We’re pleased to report another excellent quarter and thank all of our team members who worked so hard to support our mission |
| That’s a testament to our operating team and doing a great job of growing volume and controlling costs to improve margins |
| And we think we continue to grow earnings and still see strong demand for our product |
| So we think, all in all everything looks really good |
| Nice book value growth in the quarter |
| And also the strong collection efforts by our special servicing department |
| Nice quarter again |
| Our origination pipeline is very healthy and we continue to be choosy with credit as we’ve seen increased demand with banks tightening their lending activities |
| Continuing with the financial results, on Page 6, we can see the improved loan production as interest rate increases has slowdown |
| And then I guess I would just say in terms of liquidity, $72 million, so we’re in real good shape there with all of our financing counterparties and have plenty of capital to grow |
| Moving to Page 7, shows the strong portfolio growth attributable to the improved loan production |
| So I think we’re seeing good activity from bond investors |
| As Steve mentioned for me, nice quarter again |
| Turning to Page 4, very straightforward and simple, nice earnings growth, adding to book value, as we’ve kind of always said is our strategy |
| Our special servicing team continues to sell REOs at a healthy pace and the markets are liquid when priced reasonably |
| Statement |
|---|
| In terms of production, I mentioned $258 million, up – for the quarter, up from the previous quarter, down significantly from last year |
| Banks pulled back even more |
| I’m sure there were some credit spread impact in this, but we saw book value declines that were in the 4% to 5% range quarter-over-quarter |
| I don’t think it’s gotten worse or better |
| And they use securitizations, and there were declines in book values |
| Is that factor, are people looking at that as a positive or they’re scared that that’s going to lead to credit – poor credit performance without much carry? Chris Farrar Yes |
| But definitely seeing the banks be cautious and we’re hearing from borrowers who come to us and say, I can’t believe, the bank wouldn’t do this for me |
| As that portfolio starts to season, we’re going to see a little bit more delinquencies |
| But it seems like it picked up a little in Q2 |
| I know early in Q1 you guys had sort of become cautious, got more active later in the quarter |
| But I haven’t heard anyone say it’s a concern or a predictor of bad things to come |
| There was some decline in the fair valuation of the loans quarter-over-quarter |
| Taking this borrower payment into consideration, the actual Q2 charge-offs for Q2 were $324,000, not $717,000, or 39 basis points of non-performing loans, not the 87, which is actually a decrease from Q1 |
Please consider a small donation if you think this website provides you with relevant information