Earnings Sentiment

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  

    

Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
We remain confident in our abilities to create and maintain positive relationships with our customers and the prospects we are pursuing
Our credit quality remained incredibly strong with essentially no problem loans nor even any past due loans
So our C&I portfolio has been good
Year-to-date loan growth is about 4% and we have a good loan and deposit pipeline
As Dave mentioned earlier, credit quality is very strong at West Bank
Our bankers have been doing a good job capturing more of our customers total business
Then I mean, Harlee, as you mentioned your credit metrics have been excellent
Financials of our customers remain strong and we do not see any general weakening of our customer base
However, our pipeline is solid given the environment we are working and living in
The economy and our markets remain surprisingly resilient
Our continuing focus is to provide the best service to our customers that have a comprehensive relationship with us
The remainder of our commercial real estate portfolio is strong in season
Despite of those challenges, we are growing new business and enhancing existing relationships
Andrew Liesch That's good and encouraging
We expect this new facility to be a great tool to continue to attract new relationships
So that's a good sign
So we keep looking and we do the stress on the portfolio and since there isn't a great deal of new projects coming into the fold, the old ones keep just paying down and the debt service coverage remains strong
In terms of growth, the Fed action appears to be working in terms of reducing demand for loan growth, but the communities we serve are doing fine
For the first nine months of the year, our loan portfolio grew approximately 4% to $2.85 billion in outstandings
So that's all good business for us because it adds to both sides of the balance sheet
We expect our temporary margin compression to continue into 2024 and improve with increasing velocity during 2025 and 2026
We appreciate your interest in our Company
Quarterly we stress test our portfolio and have seen improving trends in total loan to value and debt service coverage
Our core deposit base remains stable
We are also growing high value retail deposits by focusing on our business owners and their key employees
Are you seeing anything out there and the metrics are very strong? Harlee Olafson Well, the areas that we are watching carefully are like senior housing where you have assisted living or more care because the costs of that have gone up so high
Our third quarter went as we expected and you'll hear more from us about our credit quality, our growth and our margin
The third quarter income included one-time swap fee of $431,000 recorded on a back-to-back swap transaction and we also recorded a $200,000 provision for credit loss as a result of loan growth
The increase in interest costs continue to outpace the repricing of our loan and securities portfolios
Deposit gathering and deposit maintaining remain important to us and we are working hard to do that
       

Bearish Statements during earnings call

Statement
Interest rate environment has slowed business activities in all markets
Net interest income declined $700,000 in the third quarter compared to the second quarter and our net interest margin declined from 2.02% in the second quarter to 1.91% in the third quarter
So that's an area of concern just because of the labor costs in that area
We continue to navigate through a challenging environment due to the rapid rise in interest rates
Along with the rest of the industry, we continue to see rate pressure on our deposit base resulting in an increase in cost of deposits
So we expect to see margin, the additional pressure in the rest of this year and early next year
Margin, we will, we are expecting to continue to see some compression because we know across the industry there will continue to be pressure on the cost of deposits
Please see the forward-looking statement disclosures in our 2023 third quarter earnings release for more information about risks and uncertainties which may affect us
Certainly it's trending lower, but the pace of compression slowed
So even if the Fed doesn't change rates, costs will continue to increase, but at what pace, it has slowed down
We keep looking for cracks and areas of concern
Our deposit balances were lower at September 30 compared to June 30, 2023, partially due to the seasonality of public fund deposits
   

Please consider a small donation if you think this website provides you with relevant information