00:00What about the traditional banks? You say you've got 35 that you cover there and, you
00:05know, obviously we trade banks. I trade banks regularly on the show and, you know, there's
00:10been a lot of talk, you know, on dividend raises potentially happening maybe into next
00:15year here. Talk about, you know, who do you like from the traditional banks?
00:19Yeah, so a lot to talk about with the other 35 names. So, you know, I would start with,
00:26you know, one of the growthier banks in my coverage. So Wintrust, WTFC, they are leaning
00:34into what they view as competitors are pulling back from their market. So they're in the
00:40Chicago area. They're the largest independent bank in the Chicago market. And competitors
00:46are pulling back from, you know, CRE lending, CNI lending, and they're seeing really good
00:52risk adjusted opportunities on the lending side. So their loan growth is we expect it
00:57to be in the high single digits and perhaps low double digits, which is well above the
01:02typical bank is in the low single digits type of loan growth. They also have a mortgage
01:08business. So as interest rates come down next year, we should see that mortgage banking
01:13business start to pick up as people look to refi and the housing market, you know, potentially
01:18rebounds in a lower interest rate environment. Now we do expect their net interest margin
01:23to come on under incremental pressure, but I think that the growth in loans and their
01:28average earning assets should offset that and continue to lead to net interest income
01:33growth. And they trade in line with peers and we're talking, you know, 10 and a half
01:38times earnings for 2025. So you're getting a decent grower at what I view as an inexpensive
01:47price. So Wintrust is one that we like, another growth oriented bank, Western Alliance. They
01:55were kind of had their backs against the wall during the mini banking crisis a year and
02:00a half ago. And they managed through it very well, given the circumstances. And now that
02:06they've grown their capital ratios to being essentially in line with peers, because they
02:12were, I guess you could say undercapitalized, at least in the market's view, a year and
02:16a half ago. So they rectified that, get those capital ratios higher. And now they're in
02:22position to resume being a growth bank. So we're expecting, you know, mid to high single
02:27digit growth in loans, their deposit growth has been through the roof, north of 20% this
02:34year. And they too have a mortgage business that should benefit with lower rates into
02:40next year. So Western Alliance, WAL, is one that we that we like here.
02:46Transcribed by https://otter.ai
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