Definition: Any specialized jargon which seems nonsensical to reasonable people. *
*Also known as gibberish, jibber-jabber, gobbledygook, folderol, balderdash, poppycock, and bullhockey.
😎 An example from the "you know who' commenter on yesterday's post [link]:
"If you look at provision expense and the reserve together it is an indicator of where we think future losses are going. In 2024, we have 126 million in charge-offs and 130 million in provision expense, so we're more or less replacing charge-offs by keeping the reserve flat. In 3-4Q, we provided to replace 111 million in c/offs and built the reserve for future losses by 76 million. So the factual statements are 1) the board is reserving less as a % of loans in 2024 than in 23; and 2) in 24, the board has chosen not to build to the reserve (in anticipation of even higher future losses). 3) I am not sure members and employees would take that away from your post. "
1) "the board is reserving less as a % of loans in 2024 than in 23;"
😎 The correct math is:
2023 reserves: $330 million ➗ 2023 loans: $31.9 billion = 1.035% of loans
2024 reserves: $410 million ➗ 2024 loans: $34.4 billion = 1.192% of loans
😎 Last time I checked 1.192% is not less than 1.035% (... unless this is an example of the "Do more with less" gibberish employees keep hearing!)
2) "in 24, the board has chosen not to build to the reserve (in anticipation of even higher future losses) "
2023 reserves: $330 million 2024 reserves: $410 million (⬆up +$80 million, ⬆up +24%)
😎 Well then, somebody snuck in an extra $80 million while the board wasn't looking! At best (or worst!), the board is expecting in the future to maintain the high level of current loan losses, wouldn't you say?
3) "I am not sure members and employees would take that away from your post. "
😎 Let's hope not!
Our dear commenter, now trying to pass blame to "the board"?
