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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| I think we've been very successful in getting new dollars in the door and growing our deposit base like I mentioned, in my lead off -- lead off to my comments, but it also reprices our own loan book and that's going to continue next year |
| And our retention rate on the CDs that we have been bringing in in our money market specials, the retention rates were very good |
| I mean our community PA we call it the bread basket of our company is $3.5 billion of our deposits, and this great clients deep relationships |
| And so that's why, it's better from a margin perspective for us |
| And we still have a very strong transaction account base and we've got a nice savings book |
| Just we do feel confident that we have a good depository and we just -- they could surprise us as Jim suggested, but we feel like we're well positioned |
| And so -- and we just have a terrific team that we did a lift out a few years ago and we're just pretty bullish on the business in some of our commercial categories |
| That gives me a lot of confidence |
| So, we feel good |
| It's a good position to be in |
| So, I feel very good about our deposit positioning |
| We ended the quarter with solid credit metrics |
| If I could jump back in just because Jane mentioned, it our CD retention rate has been really remarkable |
| And that also gives us confidence in the margin |
| You can never have too many transaction accounts, but we feel good |
| We have been able to produce solid deposit growth all year to fund our loan growth |
| We now have 30,000 users taking advantage of this robust financial wellness tool we believe is a best-in-class solution |
| In closing, we've built enough strong revenue engines and have sufficient risk appetite to grow constructively provided we fund the asset growth with organic deposit growth |
| But the retention rate has been really strong |
| So the NIM is marginally better by about 5 basis points |
| Overall consumer delinquencies are up as the categories you mentioned but somewhere down as well I think, right? Brian Karrip Yes, the HELOC category improved and we think our portfolio is in good shape entering into this credit cycle |
| We're a good partner quite frankly and we tend to do right by the people that partner with us and they do well and we do well |
| It's a $2.2 million loan and we feel pretty good about that one |
| And we talk to everybody and people in the past have come to us a couple of times first and that's been nice |
| On the digital front, adoption of credit score manager, a credit score manager tool and online banking has grown faster than expectations since launched in late April |
| I would just add and Jane is on the phone, I think her and the team have done a terrific job pivoting to deposits, bringing deposits in |
| New loans came on the books at an average rate of 7.43% in the third quarter, up nicely from 7.01% in the second quarter and 6.61% in the first quarter |
| And so those are key categories for us, but there's good volume there and that volume doesn't evaporate and even our indirect business has got up almost 7%, 6.85% |
| So you get some of the benefit of the loan portfolio the rate increases that have happened this year-to-date, and a positive replacement have been experiencing |
| And if you look at our track record over the last 11 or 12 years, we're pretty close or good at that |
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| Fortunately, the overall pace of deposit cost increases continued to slow in the third quarter |
| And there are – we do feel there'll be some strain but probably on things in retrospect that we knew we should have done at the time |
| But as we think about the third quarter, there's really been some not so savory data points from many credit card delinquencies, auto delinquencies obviously, Discover was pretty bearish on their earnings call |
| That was a 5.8% decline in those categories |
| That was a 3.6% decline in those categories |
| And I know the comment was I think slowing deposit pressures |
| The NIM compressed nine basis points quarter-to-quarter to 3.76% |
| The result as Mike said was 9 basis points of margin compression to 3.76%, a level which we still believe compares relatively well with peers |
| We slowed share repurchases somewhat late in the second quarter to conserve capital |
| Jane, any color you want to add? Jane Grebenc Only that we have seen the request for deposit exceptions decline a bit, which tells us that competitors are slowing down a bit |
| But on a macro level, I'm watching the numbers and I've seen it slow down |
| Matthew Breese Jim in the press release you noted that because of some excess liquidity this quarter it impacted the NIM by I think eight basis points |
| But then rates -- if the Fed funds rate falls that much by the end of next year there's pressure in the variable rate portfolio that brings the overall NIM down a bit, so it trails off towards the end of next year and it ends next year and that projection actually exactly where it is right now in the system effect |
| And if we miss, it's not by much |
| Our procedure is to get an annual appraisal and the appraisal value that came in most recently showed a significant decrease in value, so we add a specific reserve of $4.1 million |
| The rate of deposit cost increases is slowing and we believe that the NIM will stabilize going into the end of the year and continue to hold up in 2024 |
| So how do you guys kind of approach the credit piece here? I mean obviously, you're calling your portfolio and stressing it and looking at it, but there are starting to become somewhat obvious signs of deterioration |
| Please refer to the forward-looking statements disclaimer on Page 3 of the slide presentation for a description of risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements |
| There's been some more recent headlines I think it's sub-prime auto delinquencies are starting to go higher |
| We're down to 11% securities to assets |
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