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.
“Our lenders report to us that they remain positive about loan growth prospects, pipelines generally remain pretty strong. Commercial customers seem to be generally more optimistic than they were 6 months ago and production volume was up 14%”
“we saw further pricing pressure on loans. Beginning in February and continuing in March, some of the nation’s largest banks cut prices on most loan types in most of our markets”
“new construction commitments have been fairly strong for several quarters, as we increased our exposure to commercial construction projects when pricing terms and covenants have been some of the best our bankers have seen in their careers. These loans are now beginning to get into the funding stage after the equity has gone into the project. Because there’s still a large significant amount of outstanding unfunded commitments in this category, we expect outstanding balances to continue to grow in 2013. However, because of concentration limits that we’ve adopted as part of our portfolio risk management, we are being disciplined about the new loans we make.”[why are large banks being so aggressive?] “[They’re] Desperate…The answer is, I mean, that’s — I understand that the big banks are blaming the small banks for this and the regional banks like us are blaming the big banks. We’re, of course, right.”
“it’s pretty well-known that the refi boom was a very large source of earnings for those banks last year and that, that party is ending pretty rapidly. So I would speculate that looking anywhere and everywhere, I probably would be too, to replace that.”
“all I could tell you is we’re going to maintain our, I think, our posture of being as conservative as we can. And GAAP limits are — places limitations on our ability to be conservative. We’re not trying to milk the reserve from earnings; quite the opposite. But the facts are leading to a decline”
“I think we’re thinking that we’re probably getting to the point that we’re reasonably full-up with respect to what we’re going to do in [multi-family construction].”
“people are finally getting back to neutral or above water on their mortgages and are able to prepay them and get financed at a lower rate.”