The third quarter was a tough period for U.S. banks navigating the tail-end of the elevated interest-rate environment, as many faced succession-planning challenges and delinquent-consumer behavior. With the Federal Reserve's cumulative 75-basis-point reductions in the key rate, executives are optimistic that earnings performance will improve in the coming months.
One such leader is
Felix began his tenure at the helm of the $749 million-asset institution on Nov. 1, seeking to strengthen its recovery efforts following a period of economic uncertainty that has persisted since a 2010 jump in nonperforming construction and commercial real estate loans led to $30 million in losses.
His plan for growth focuses on driving new deposits, emphasizing incremental loans and acquiring new customers, Felix said in an interview with American Banker's
"We've got some good wind in the sails, now it's about how do we continue moving forward with a more robust strategic plan," Felix said. "For us, the opportunity is how do we do more and do better."
Carter is showing signs of improvement, as capital reserve ratios exceed regulatory minimums and the bank saw a linked-quarter spike in net interest income, which rose 9%, to $6 million, for the third quarter.
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Carter is among several banks that recorded hard-won victories in the third quarter.
The $11.3 billion-asset
"I am confident in our strategy and approach,"
Provident CEO Anthony Labozzetta said during the earnings call that finalizing the acquisition grants the bank a $2 billion loan pipeline for fueling future growth.
"We are optimistic regarding the strength and quality of our pipeline and, as such, we expect good growth over the next two quarters," Labozzetta said.
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Below is a compilation of the obstacles banks faced throughout the third quarter and executive predictions for the future.
Deposit woes are on the mend at Wells Fargo
Following the Federal Reserve's recent 25-basis-point rate cut, executives at Wells Fargo are hopeful that the bank's deposit costs are beginning to stabilize.
Net income for the $1.9 trillion-asset bank eased to $5.1 billion for the third quarter, from $5.8 billion in the same period last year. Net interest income for the three months that ended Sept. 30 also fell, to $11.7 billion from $13.1 billion.
The rate at which deposit costs grew for the bank slowed, driven by a drop in customers switching to higher-paying deposit options as well as Wells' efforts to cut the
"We believe we are close to the trough," Michael Santomassimo, Wells Fargo's chief financial officer, said during the earnings call in October.
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Strong consumer spending expected to continue into 2025
For Mastercard's executives, third-quarter results are proof enough to support their predictions that consumers will continue to increase their purchases into the coming year.
"The
Data from S&P Capital IQ showed that Mastercard's revenue for the three months that ended Sept. 30 just topped analysts' expectations at $7.4 billion, up from $6.5 billion a year earlier, while net income rose to $3.3 billion from $3.2 billion across the same time frame.
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New York Community outlook for profit dims in wake of Q3 losses
Long Island-based New York Community Bancorp, which changed its name to Flagstar Financial at the end of October, has been beset on all sides by challenges for most of 2024, from
For the third quarter, the company recorded a net loss of $280 million, almost double the $141 million figure analysts told S&P they predicted. Charge-offs have improved quarter over quarter, down from $349 million in the second quarter to $240 million in the third quarter.
Criag Gifford, chief financial officer for Flagstar, said during the earnings call that the bank implemented monthly reviews at the business-line level to continually monitor each segment's financial performance.
"I would say that we continue to improve our visibility into the portfolio, into the credit performance and into the expense profile of the company," Gifford said. "Every month, we get more and more visibility."
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First Foundation's CRE loan bundle leads to sizable Q3 loss
Dallas-based First Foundation reported a net loss of $82.2 million for the third quarter, a significant drop from $2.2 million net income a year earlier. This swing was driven by the bank's decision to execute a $117.5 million reclassification of multifamily loans it plans to sell.
That adjustment notwithstanding, the $13.4 billion-asset bank recorded adjusted net income of $2.7 million for the third quarter.
Executives of First Foundation said during the earnings call in October that the framework to
"The pieces are in place, and now it's all about execution, and we are focused on getting it done," Chief Operating Officer Christopher Naghibi said during the call.
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Home BancShares CEO bullish on Trump during earnings call
John "Johnny" Allison, chairman and CEO of Conway, Arkansas-based Home BancShares, took the opportunity during the company's third-quarter earnings call to voice his support for President-elect Donald Trump prior to the election.
"Whether you like Donald Trump or not, I believe he has to win the race," Allison said on the October earnings call. "We know what he did last time, and he was business-friendly. Watching both candidates through this short campaign has been very painful for all of us, but after watching, I cannot imagine anyone voting for Mrs. Harris."
The $22.8 billion-asset organization reported a net income of $100 million for the third quarter, up from $98.5 million a year ago, while return on assets ticked down slightly to 1.74%, from 1.78% across the same period.
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