Agreed. Amazing how much of the call Q&A was focused on the medallion loans (Chicago and NY, specifically), which constitute such a small percentage of SBNY’s total business. All fair questions when that small percentage eats up 20% of a quarter’s NI. The management commentary (which seemed to satisfy the querying analysts) is that this one-time charge should put the medallion concerns to bed, at least for a while. Listen to the call and make your own decision on whether that optimism is accurate. (FWIW, my take is that management is being very conservative with their medallion valuations, assumptions and charges.)
I almost pulled the trigger on buying some more (it’s already a relatively high percentage for me), but I’ve spent the last 3 earnings seasons buying on immediate drops, only to watch them continue falling for days or more after. Am I learning from past mistakes or irrationally trying to predict and time a market with no memory? Time will tell.
They call me,
MrTBS