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    Andrew Taylor

    Research Analyst at Keefe, Bruyette & Woods

    Andrew Taylor's questions to ESXB leadership

    Andrew Taylor's questions to ESXB leadership • Q1 2017

    Question

    Andrew Taylor asked for details on the net interest margin, specifically the drivers of the linked-quarter increase in core loan yields, the forward outlook for the margin, the expense run rate after recent branch openings, and a suitable tax rate for modeling purposes.

    Answer

    CEO Rex Smith explained that the company is maintaining loan yields by avoiding underpriced deals amidst competition, focusing on full-relationship customers over sheer volume. CFO Bruce Thomas clarified that the Q1 expense run rate is a good baseline, though it might decrease slightly after Q2 as a CDI expense ends. He also noted the Q1 FDIC assessment reflects the new run rate after a Q4 adjustment and suggested a 28% tax rate would be a good target going forward.

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    Andrew Taylor's questions to UNITED BANKSHARES INC/WV (UBSI) leadership

    Andrew Taylor's questions to UNITED BANKSHARES INC/WV (UBSI) leadership • Q3 2016

    Question

    Andrew Taylor of Keefe, Bruyette & Woods, Inc. asked about the drivers of the strong commercial loan growth and the dynamics behind the stable net interest margin, specifically questioning the apparent compression in core loan yields.

    Answer

    President and CEO Rex Smith explained that loan growth is diversified with a focus on smaller credits ($1M-$3M), avoiding large concentrations. He attributed the loan yield movement primarily to a strategic mix shift towards adjustable-rate C&I loans, which carry valuable deposit relationships, rather than competitive pressure. CFO Bruce Thomas added that robust loan volume growth has more than offset the slight yield decline, boosting overall interest income.

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