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spk06: good morning and welcome to guarantee bank shares fourth quarter 2022 earnings call my name is nona branch and i will be your operator for today's call this call is being recorded after the prepared marks there will be a q a session our host for today's call will be ty abstin chairman and chief executive officer of the company Kathy Payne, Senior Executive Vice President and Chief Financial Officer of the company. Shalane Jacobson, Executive Vice President and Chief Financial Officer of the bank. To begin our call, I will now turn it over to our CEO, Ty Abston.
spk04: Thank you, Nona. Good morning, everyone. And again, welcome to our fourth quarter earnings call for Guaranteed Bank Shares. We did have a year that we're very proud of. Our quarter did have some noise in it that we're going to go over and explain in our presentation. And then we're going to talk a little bit about our projections for 2023. We'll get into our slide deck and go through that, and then we'll open it up for Q&A. So, Kathy, why don't you start that? Okay.
spk05: Thank you, Ty. Let's briefly hit some of the highlights of the balance sheet first, then I'll go over the income statement. We do have some of those highlights on the slide deck here if you're looking on your PC. Our total assets for the year ended at $3.4 billion. That is down for the quarter, about $39 million. But it is up for the year, $265 million. A lot of that came from an increase in loans. We had a really good year in loan growth. We were up for the quarter, 112 million. This is ex PPP and warehouse lending. And for the year, we were up 553 million, about 30%. And looking at some of the details of that, we did have growth in all four of our regions. So we were proud of that and do have emphasis in activity in all four of those regions. You can see in the earnings release, we do list a loan composition chart. And of course, most of that loan growth is real estate based. And again, you can see the components being CRE, construction, development, and so forth. On the bond portfolio, it did show a decrease during the quarter. Like we told you last earnings release, we had about $120 million in Treasuries, short-term Treasuries that matured. They were at a pretty low rate, so actually the yield on the portfolio increased, but the volume was down about $133 million for the quarter. Year to date, though, our year-end balances were up about $175 million year-over-year in the bond portfolio. Then looking at the liability side, probably the notable change obviously is what people are looking at is in deposits. We did have a deposit decrease during the quarter of 109 million, about 89 million of that. The largest majority was in non-interest bearing DDA balances and about 20 million in interest bearing balances. some of that was just uh we knew some of that was coming there's just a restructuring and just a uh positioning of some funds that got invested elsewhere i'll talk a little bit about the some of the costs related to that but kind of a a comment on that we normally see public fund money increase during the fourth quarter we did see an increase just not as much as normal And probably that's indicative of what we're seeing a lot of our customers at least being faced with is alternative rates on other investments. Public fund money is most of it's contracted at a certain rate. And a lot of what they're seeing was a lot higher than what our contractor rate is. So some of that money went elsewhere. Again, our public fund money is not a large part of our deposits, about 11%. 300 million over on our 2.7 billion in total deposits. But I think that's just kind of just to show you what we're all seeing in the banking world as far as competition. Our year to date, our deposits were up about 10 million. And our DDA balances actually were up 38 million in total year over year. So our non-interest bearing balances still account for 39% of our total deposits, which again helps in that funding cost. Our federal home loan bank borrowings did increase for the quarter. That's going to be driven mainly by that loan growth and some deposit decrease during fourth quarter. And at year end, they were 290 million in total fundings from Federal Honolulu Bank. Our shareholder equity increased, obviously, in the quarter due to earnings offset by the dividend that we did pay. We paid another 22-cent cash dividend. We also did have a slight improvement in our accumulated other comprehensive income, which is the unrealized loss in our bond portfolio. So our tangible common equity ended the year at a ratio of 7.87%, down a little bit during the year due to that significant increase in the unrealized loss in our bond portfolio, the accumulated other comprehensive income. That 22 cent dividend that we paid during the quarter made a total of 88 cents for the year. That's up 10% year over year. And looking back at our history, we've got about a 30-plus year history of increasing annual dividend. I think all but two years of those 30-plus years, we did not increase it. Every other year, we increase it. Those two years, we just left them flat. We did not decrease them, but we didn't increase them. And that $0.88 dividend based on current yield is about a – based on current price is about a 2.5% yield. on that return. Then looking over at the income statement, you can see our fourth quarter net earnings were 8 million, which was down from the previous three quarters. That 8 million is 67 cents per share. um that the decrease or the significant event during the quarter was related to a provision that we made of 2.8 million due to our cecil modeling chalene will give you a little more detail on that in just a minute so i'll not talk the detail on it but because of that that event if you if you look at our pre-provision, pre-tax, pre-PPP activity, which is our net core earnings. We've been putting this chart in there each quarter for the last two years. And you see that our quarterly earnings, pre-provision, pre-tax were 12.6 million for the quarter. Our year to date was 50.2 million. And that compares from previous year fourth quarter of 10 million and previous year 2021 of 39 million so year over year that's about 11.2 million dollar increase which is 29 percent so then looking at our year-to-date return on average assets and again on net earnings were 1.24 stated earnings 1.24 percent for 2022 for the year compared to 1.36 percent for 2021 Again, a significant factor in that change would be the difference in the 2022 provision that we made versus the 2021 release that we did, which those two components were a swing of about $3.9 million. Return on average equity for the year was 13.76% compared to 13.72% in 2021. Again, we had really good earnings. As Ty said, we're proud of the year we did. And both these two years, 2022 and 2021, the net earnings were significantly higher than previous years. So then looking at the components, I think what everyone's focused on is our net interest margin. In Q4, it did show a decrease of two basis points. It was 3.57%. down from 3.59 in the linked quarter, but up from the same quarter last year of 18 basis points. Loan yields are increasing nicely as rates are rising, and we talk about that in the earnings release. Shalene, again, talks in more detail on that and what rates are currently doing. But I think probably more of the focused attention is on our cost of interest-bearing deposits, probably. Something we look at all the time and made some decisions on this quarter that were not exactly what we had projected. I think as many banks, though, saw, we did see that outflow of deposits. And to remain competitive, we increased our cost of interest-bearing deposits for the quarter more than we had projected that we thought we were going to do prior to the quarter. The cost of interest bearing deposits for the quarter were 108 basis points. In Q4, that's up from 59 basis points in Q3, significant increase. But those are some decisions we made to remain competitive in the various markets that we're in. And we're seeing all sorts of competition, both in small bank and larger banks, and then to protect our existing core deposit base. And I think we put it in the press release, our interest bearing cost of deposits beta increased 40% during the quarter, which is significantly higher because we made those decisions, both in increasing some CD rates and our money market rates more than what we had projected. I guess a note to point out, when using our non-interest bearing balances, the total cost of funds is 64 basis points again we we put that in the earnings release that's up from 35 basis points linked quarters so the so that'd make a total deposit beta increase of 23 and looking at non-interest income uh it it still remains lower than what we saw in 2021 in the first half of 2022 um if you look out the if you take out the extraordinary items q3 and q4 were very consistent with each other i think we're going to continue to have challenges in our non-interest income category back certainly last year when the loan the mortgage rates were lower we had a lot of a lot more gain on sale if we we look at year over year our gain on sale in 22 was uh 55% lower than it was in 21. That's about a $3 million swing. So we're projecting the lower volume going forward and mortgage activity and related fee income as we look at 2023. We did have some positive trends other than that on a non-interest income though. The debit card volume continues to increase and show good volumes. And our fiduciary income is pretty stable even in an unsteady stock market that we've experienced in the last half of 2022. On the expense side, we did have a little bit of elevated expenses in Q4, which sometimes traditionally we do. Each year, we give raises in the fourth quarter, starting in the first part of the fourth quarter in October, as we did this year when they're warranted. They were generally higher. The raises were generally higher this year than what we've seen in prior years, obviously due to inflation and really just the competitive pressures that we're seeing in some staff positions. Our healthcare costs this year, as we've told you in prior quarters, up a little bit this year over last year. So we had a little bit of a catch up in Q4 to be properly funded for it. And then the other category that you'll notice, and there's our software, our technology. We're constantly looking at our software providers and opportunity. And we did make some upgrades in our core and other systems that added some cost in that category. So that's a recap of the income statement. So I'll turn it over to Shalene.
spk00: Thank you, Cappy. Next I'll cover some of the highlights of our loan portfolio, credit quality, and the allowance for credit losses. As Cappy mentioned, our loan demand continued to be strong in the fourth quarter because loans in the pipeline from earlier in 2022 continued to close and fund up during the quarter. But our pipeline is certainly slowing down now, partially because of the higher rates, but also because we're really tapping the brakes on growth as we prepare for a likely downturn in the near future. As you all know, the Texas economy is still doing relatively well, but we aren't totally immune to downturns either. Therefore, we're tightening our underwriting standards and really being conservative with balance sheet growth for 2023. And Ty will provide a few more thoughts on the loan outlook for 2023 on the next slide in a few minutes. Overall, our loan yields are trending upwards. Our weighted average loan yield increased this quarter to 5.2% on the total portfolio. which is up from 4.96% in the third quarter. But the weighted average rate of new loan originations in the fourth quarter was 6.53%, which is 88 basis points higher than the weighted average rate of 5.65 that was booked in the third quarter. And then in December, after the additional Fed hikes, we've been booking loans closer to the 7.5% rate on average. Our next bullet talks a bit about rate sensitivity of our loans. We have around 1.5 billion of loans that are fully floating or that are adjustable at various states in the future. Of the 1.5 billion, 256 million is fully floating. and the rest is adjustable at future dates. Of the 1.3 that's adjustable at future dates, about 213 of that is contractually set to adjust during 2023, along again with the 256 of fully floating loans. Non-performing assets continue to remain relatively low at 0.32% compared to 0.28% in the prior quarter. A large portion of our non-performing assets, which are primarily non-accrual loans, consist of the four loans I've mentioned in prior quarters that were acquired from Westbound Bank back in 2018. Those four loans are 75% SBA guaranteed and they're collateralized by two loans or two hotels in Houston. The loans have total balances of 6.7 million of which are non-guaranteed exposure is 1.7 million and we've got about a million dollars reserved on those. We don't really expect there to be any material loss if there is any loss on those as we continue to work through those problem loans. And then we also have a new $1.4 million land loan that was downgraded to non-accrual during the fourth quarter. The loan has low LTV and we expect the guarantors who we believe are pretty strong to pay off that loan in the very near future. So we don't expect any losses on that one either. Our net charge-offs and our net charge-offs to average loans ratio also continue to be very low this quarter. Next up is the allowance for credit losses. As Kathy mentioned, we had a $2.8 million provision for credit losses during the fourth quarter. We also had a $600,000 provision in Q3. We didn't have any provision in Q2, and we had a $1.25 million release in the first quarter. So Interesting how much can change in a year, but the total provision expense for 2022 ended up being 2.15 million for the year. So in addition to the loan growth during the quarter, we adjusted our CECL model to incorporate economic forecasts for a recession during 2023. In the fourth quarter, there appeared to be consensus among economists that a recession would occur. And there was even a survey that was published by the Wall Street Journal back in October that cited 65% of the economists that they surveyed who expected a recession. So that consensus in the fourth quarter, among other factors that we looked at, provided us with greater support for adjusting our forecasts as well. However, we've historically had very minimal losses in prior downturns, and we really don't anticipate any significant losses during this potential downturn either. Our ACL coverage was 1.34% of total loans at the end of the quarter compared to 1.29% in the prior quarter. So next I will turn it over to Ty to talk about 2023 and asset liability management.
spk04: So thanks, Shalane. So for the coming year, like we've been saying, we're anticipating slower growth. The loan growth we had in fourth quarter really was, those were credits primarily that were approved in the first half of 22 that have been funding up their equity portion. So that's really a majority of that. We are seeing a slower pipeline in 23, as we would expect. Like Shalene said, our state is overall doing well, but it's going to slow here, you know, like every other part of the country. We are seeing deposit challenges. We do, you know, a big part of our models is we do have a strong core deposit base, but like everyone else, we're having to compete with market and we're in markets where banks are paying pretty aggressive rates while we're not leading that we're certainly defending our core deposits because a lot of depositors quite frankly, have been earning next to nothing the last few years and are ready to get some yield. And they're also looking at what the treasury market is offering. And so we've seen a lot of liquidity being pulled out of the system just in the treasury market where people are moving into treasuries that normally wouldn't. So we expect some net interest margin compression in 23. We think it's manageable, but it makes sense to us that we're going to continue to see that as we continue to reprice loans. But we also... see our our liabilities and deposits costing us more uh we did have good earnings in 22 as we mentioned our goal when we started the year was to uh try to improve on 21 because 21 had five or six million extraordinary income uh once we saw we looped that then we thought it was prudent to go ahead and look at our our factors and our cisa model going into 23 and so that's what we did in the last quarter. And like Shalene said, we do think that it's a real strength that our ALCI is very manageable. And not only where we are today, but also even where we would look, what we would look like in shocking additional 100, 150, 200 basis points and increasing rates. Very manageable, which means our capital continues to be very strong. I'll stop with that, and then we'll open up for questions.
spk06: Thank you, Tom. It is now time for our Q&A session of our call. Our first call will be from Michael Rose with Raymond James.
spk07: Michael, you can unmute. Hi, thanks. Can you hear me?
spk04: Yes. Hey, Michael.
spk08: Good morning. Thanks for taking my questions. Hope you're well and happy new year. Just wanted to obviously dig into the deposit discussion. You know, I understand that the cost of interest-bearing deposits were certainly up. Do you have a sense for what they were at the end of the year? And then kind of as a corollary to that, kind of what gives you confidence that, you know, you can expect balances to kind of be stabilized to maybe, you know, have some slight pressure here? I mean, would you expect to fill with some higher cost funding sources just given the kind of the pressure on betas and costs and things like that. And I just wanted to get some context there. Thanks.
spk05: Well, I'll talk about the deposit balance, Michael. I think what we're seeing and we're putting emphasis on our ICOMP with our production people is to focus more on deposits and loans. I think we're still out there trying to grow our deposits and gain customer a bigger customer base. So I think we'll continue to have challenges with the runoff, sure, that we talked about with either alternative investment or increased funding costs because they put the money into a CD or something that they hadn't been in the last year. But our emphasis will continue to be on our production people to go out there and get more customers.
spk04: Yeah, Michael, I would just add to that. I mean, we're, like every bank, I mean, we're seeing real, you know, pressure on the deposit side. We do have a core funding source in East Texas, but we're seeing deposit pressure out there too. It is still very, we still have a very stable deposit platform, and we've been playing somewhat defensive with our rates. But this fourth quarter, we decided to be a little more aggressive and try to get in front of it. So we think we've We've slowed that down, but we still have quite a, you know, quite a bit of our deposit base, nearly 40% in DPA. So non-materian deposits continue to be a strong part of our overall deposit structure. But we're going to defend our core relationships because a lot of it is just the reality that customers haven't seen any yield in three or four years and they're looking for it. And so even if you have a strong core funding base, you're going to have real headwinds when it comes to your your funding costs with everything going on in the velocity of increase in rates that we've seen the last few months.
spk08: Okay. And then maybe it's kind of a follow up to that. You know, the margin was down a little bit, you know, queue on queue, but it seems like with maybe some of the other balance sheet actions, even with the deposit pressure that you would expect the margin to maybe move up a few basis points? Because the slide reads plateau in the second quarter, and then maybe fall from there just directionally. Is that kind of the way we should broadly be thinking about it?
spk05: That's generally what we're thinking, Michael. I think we'll hold off a little bit on some details on that going forward, just because we don't know the extent of how we're going to react with rate changes in the next few months too.
spk08: Okay, and then maybe just one more for me. I think we can kind of figure out what the expenses are based on the expense to asset guide. But just on the fee income, obviously some greater headwinds. You guys had kind of talked about, I believe it was the range of, you know, 22 to – 23 to 24 million for fee income next quarter, but it sounds like it's going to be a little bit less than that, just given some of the market pressures and other things that you mentioned in your prepared remarks. Do you have kind of an updated range for what that could be for 2023? Thanks.
spk05: I think we're going to be in the 22 to 23 range on fee income. That is what we have budgeted going forward.
spk08: Okay, I'll step back. Thanks for taking my questions.
spk04: Sure, thanks, Michael.
spk07: Our next questions will be from Brady Gailey with KDW. Brady, you can unmute your line. Hey, good morning, guys. Hi, Brady.
spk01: I just wanted to start with the expense base. your guidance of two and a half percent of assets is basically where you're where you were at in the fourth quarter and you know you're not expecting much asset growth in 2023 so that that kind of backs into flat expenses versus the 4q run rate which um i don't know maybe seems a little optimistic just given the inflation headwinds but is that Is that the right way to think about it? Maybe expenses will be flat from here in dollars?
spk05: From Q4, yeah, Brady, I think that's what we're looking at in 2023 based on no or certainly a lot less growth in assets. So that 2.5, we're comfortable with a 2.5% guidance.
spk04: but brady let me add this let me add this to that i mean across the board we we see headwinds with our expenses we see headwinds with fee income and with them and i think that's pretty universal in my opinion with what banks are going to be faced with in 23 and it'll be up to us to go through that and create create a good return but you know you just there's there's there's headwinds really in all those key areas of our of our balance sheet and income statement and So we're a little less optimistic as far as just projecting of where things are going to land in 23 because of the unknowns with where these rates are going, how they're going to settle out.
spk01: Okay. All right. And then I know you all have made some changes and restructured pieces of mortgage and SBA and fee income. Is there anything notably different that we'll see out of those two I know both are facing headwinds, but I know you've restructured both of those groups. Anything we should expect in that for this year?
spk04: Nothing specific. It's just going to be a tough year for both those areas.
spk01: All right. Great. Thanks, guys.
spk04: Sure. Thanks, Brad.
spk06: Our next question will be from Matt Olney with Stevens. Matt, you can unmute your line.
spk03: Hey, thanks. Good morning, everybody. Good morning, Matt.
spk07: Sorry, Matt. Can you hear me now? Yes, we hear you.
spk03: Okay, great. Thanks. Kathy, I think you mentioned previously there were some treasuries that matured in the fourth quarter. Any more color on... when those matured? Was it kind of throughout the quarter or was it way towards the front half or back half? And then what was the average yield on those treasuries that matured in the fourth quarter?
spk05: Shalene, do you have that? I think you might have that in front of you.
spk00: We had 70 million mature on November 30th and another 20 million, I believe, that matured on November 30th. I don't have the yield in front of me, but I can get that to you.
spk04: They were pretty low in the first year.
spk05: They were really short-term treasuries bought in the first of the year. So yeah, they're going to be a little yield.
spk03: Okay. And I think in that deck, you also talked about more securities maturing in 2023. Is there any more Any more color on that? Is it throughout the year kind of consistently or is it weighted towards the front half or back half of the year?
spk00: The treasuries are weighted towards the front half of the year. I believe they're about $50 million. I'm pulling that up so I can let you guys know if you have another question in the meantime.
spk05: Okay. The dollar amount she's referring to there, though, in the deck is throughout the year.
spk03: Got it. Got it. Okay. Well, I can shift over to loan growth, I guess, to buy Shalane some time here. But on the loan growth app.
spk00: Sorry, I was able to pull it up real quick. So we've got 50 million in treasuries that are maturing in March, April, and May, and then another 20 million in September. And the ones that matured in November
spk03: um the yield on one was 0.666 and the other was 0.880 yeah low yields got it okay okay that's helpful showing thank you for that welcome and then the long growth that we talked about before just in any more color the Should we assume the loan growth is going to be stronger in the front half of the year versus the back half versus what you see right now? You mentioned kind of intentional slowing of that from some of your borrowers. Just even more color on kind of the pace of it throughout the year.
spk04: I think that's fair to look at it that way, Matt, is that the loan growth that we have would be probably the first half of the year and be to a possible decline in the second half of the year, depending on how things play out. Okay.
spk03: And then just, I'm also curious about your strategy around the FHLB advance. I think it's $290 million. Sounds like you could kind of maintain that balance for a while, but would love to appreciate maybe the puts and takes and kind of what's in the budget versus, you know, different options that you can see throughout the year on that.
spk05: Well, it'll depend on the timing of any type of loan or deposit change. But again, as we said in there, we got 100 plus million in bonds rolling off. The FHLB, we're just using a short-term catch-all. And I think that dollar amount will stay pretty consistent to decreasing a little bit throughout the year. And we just keep it on a short-term basis.
spk07: Yep. Okay. okay thanks guys appreciate your help thanks matt our next question is from brad millsaps with piper sandler all right you can unmute your line hey good morning am i coming through yeah yeah good morning um you guys have addressed almost everything i apologize if i missed this but just curious kathy i know you didn't buy back any shares in the quarter we're more active early in the year um
spk02: you know, given kind of lack of balance sheet growth, any more appetite, or is it still, you know, kind of a wait and see approach there?
spk05: Well, pretty much a wait and see, Brad. We have a metric we're looking at, and we'll get in the market if we think it's prudent, but we were not there during Q4, so we didn't have any shares. But like I said, we bought back, was it 250,000 shares, I believe, for the year. So we keep our same metrics out there, but... We'll just have a wait and see attitude.
spk02: Got it. And then maybe sort of a bigger picture question for Ty. I know last year your goal was to earn basically a dollar more in 2022 than you did in 21. You guys did that, had a great year. I think everyone knows that 23 is going to be more challenging. Just kind of curious, you know, what you would, maybe not so much net income dollars, but Where do you want to see the bank 12 months from now? I know it's a pretty murky picture, but what would you classify as a successful year for Danity? Is it just getting to the other side of this with a bigger capital base, a bigger reserve, just ready to take whatever the economy throws at it? Just curious if you could give us a bigger picture outlook, maybe similar to what you did in 22.
spk04: Yeah, Brad, I would say that, I mean, our main goal in 23 is to really have strong asset quality come through this cycle without any significant losses. We're going to be building reserves as we see it's prudent, have good earnings. We'll see what that actually turns into because, like I said, there's headwinds across the board. But the other side of this, have stronger capital, stronger reserves, and maintain strong asset quality to be positioned to go back on offense when things start going another direction. But it's going to be very much a defensive year for us, at least, and I think probably a lot of banks, as we're really trying to defend our core funding base, really defending asset quality, and trying to defend earnings from just the different expense structures that have been under pressure the last couple of years and obviously fee income. So across the board, it's a year, it's going to be a year that our goal will be to, you know, be in a better place than we are today. And that's saying a lot going through, you know, what could be an economic downturn in the storm.
spk07: That's helpful. Thank you guys. Appreciate all the color. Sure, man. We have another question.
spk06: question from Matt Olney.
spk03: Matt, go ahead. Thanks for the follow-up. Just sticking with this bigger picture theme, Ty, I guess the bank's been able to maintain this return on assets above 1% now for a number of years. You mentioned all the headwinds from lots of directions. Just curious about your expectations, if you think you can continue to maintain this ROA north of 1% with all the headwinds out there?
spk04: So Matt, I don't think we would go below 1%. But now that being said, there's a lot of unknowns. And so depending on the reserves, we feel prudent that we need to put into our reserve account during the year. We'll obviously be looking at expenses very closely and we're going to manage those aggressively. And the rest of it is just the market side of from mortgage to SBA, different income departments. There's just not a lot of opportunity out there right now. I don't see us dropping below 1% because we're going to be pulling a lot of levers to avoid that, but I can't say it wouldn't happen either. Again, it's not... It's not the lack of clarity that we obviously had during COVID, but there is a lot of unknowns out there with everything going on until we see where the Fed's going to land with rates and kind of how hard or soft this landing is. We're just being pretty cautious in how we think about things going forward. I will say during COVID, we set aside $13 million in reserves, and we didn't actually have any losses. So the fact that we set up reserves aside in 23 are just part of, that's part of the CECL modeling. And I could see us setting aside more reserves if we see further deterioration in the economy. Whether that turns into actual credit loss or not will be our primary focus to see that it doesn't. But so there's, that's a long way of saying I really don't know the answer to that question. But certainly that would be a goal that we would try to defend would be a 1% ROA.
spk03: Yeah, thanks for that commentary, Ty. And I kind of just following up on that around CECL and the allowance. You mentioned in 2020 kind of the big uh the big build there i think you got the acl ratio up to that that 180 percent level uh in 2020. i know cecil's kind of always always evolving but just just curious you think that's still it is you know is the 180 number still for the realm of possibility here this year or do you think you you see the models kind of evolved over the last few years which would make that less likely i think it's less likely i think the worldwide pandemic was a was a black swan event that
spk04: deserved a lot of real conservative assumptions with where things were going. I think this isn't as dire as that. That being said, again, we're looking at a lot of unknowns from the economic standpoint. We keep coming back to the fact that we're proud, glad we're in Texas because the Texas economy overall is strong. So I'm hopeful that on the other side of this, we fare better than most parts of the country. There's just a lot of things, a lot of uncertainty out there that creates some uncertainty on our part, but I don't think it's near as dire as something that we were dealing with in 2020, which was COVID. But we're being cautious with how we look at it because there's a lot of unknowns. And again, the velocity of these rate increases and how the Fed's pulling liquidity out of the system in such scale, that's somewhat unprecedented. And that's the part that makes me a little cautious.
spk03: Understood. Okay. Thanks, guys. Appreciate your help.
spk04: Thanks, Matt. Absolutely, Matt.
spk06: Thank you for your questions, and I would like to remind everyone that a recording of this call will be available by 1 p.m. today on our investor relations page at gnty.com. Thank you for attending, and this concludes our call.
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