This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“as we compare the second quarter to the first quarter, a couple of points…we said in our call is that we expect the second quarter [loan growth] to be 1% to 1.5%, perhaps a little bit higher than the first quarter and we still continue to expect that. Strength in commercial small business, auto lending continued flat in this, in credit card, as consumers continue to delever and move down and home equity still sort of in a little bit shrinking mode.”
“Mortgage volume. We expect that our originations and production to be higher in the second quarter than the first quarter, and that still is the case. Although I will tell you, the first half of the second quarter started out strong. And as you know, mid-May, second week of May rates increased and — where they are today versus then, they’re up 40 to 45 basis points, and that did slow refinance activity.”
“our rating, which offers us tremendous funding advantages. So I will tell you, I don’t think we rarely, if ever, lose on pricing. We have an advantage on that. We’re very disciplined in terms of structure, but pricing is not an issue. And in fact, Wholesale pricing, from a loan standpoint, has been relatively stable for 4 to 6 quarters. So pricing is not the issue. It’s more demand…I mean, we’re clear with all the relationship managers not to lose on price.”
“on the pricing front, there are pockets that have been pretty stable, and then there are pockets in the community middle market that things have been getting more aggressive as those banks — those smaller banks have rebuilt their capital bases and are coming back in, but we stay competitive”
“CFPB has targeted what’s called the dealer reserve [in auto lending]. And so that’s a — it’s a significant source of income to dealers when we quote — when a bank will quote a rate and the dealer can quote a different rate to the end customer and they’ll make — the dealer will keep the difference. CFPB’s concern is one of fair lending.”