Veritex Holdings, Inc.

Q2 2021 Earnings Conference Call


spk_0: the day and welcome to the varitek holding second quarter twenty twenty one earnest conference call and webcast operatives this will be in a listen only mode least notice this event be recorded on that and the conflict over to your and cuddle investor relations officer and secretary to the board of the or attacks holdings
spk_1: thank you before we get started i would like to remind you that if presentation may include forward looking statements and those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ the company undertake no obligation to publicly revive any forward looking statements at that time with your love into our web have please refer to our slide presentation including are safe harbor statement beginning on flight to for those of you join and us by phone please note that the tape harbor statement and presentation are available on our website varitek bank that com i'll comment made during today called are subject to that they proper statement some of the financial metrics discussed will be on a non gap bases which our management believe better reflect the underlying are operating performance of the business please see the reconciliation of all stuff non got measures and are filed eight k earnings really johnny me today or malcolm holland are chairman and ceo terry early or chief financial officer and claim ruby or cheap credit officer i will now to end the call over to mount them
spk_2: good morning everyone my team and are excited to discuss our second quarter earnings were back to business as usual build like momentum is continuing to pick up for the quarter we announced operating earnings of sixty cents a share or thirty million while producing a pre tax free provision return of one point six six percent we also announced the dividend in greece from seventeen cents per share to twenty cents per share an eighteen percent increase we have been communicating for several quarters the people investments we've been making over the last year a thinker began in see some of the early results of those investments for the quarter we grew loans excluding ppp and mortgage whereas twenty one percent annualized while for the year we're at fourteen point five percent annualized growth we expect that for the year will remain in the fourteen percent range due to our level of unfounded commitments early signs of in greasy and i usage and are pipeline strength our mid july pipeline is up over fifty percent from the same day in mid april and asia it is at it's highest funding forecast in the company's history on page seven bottom right were showing you that are lenders are incredibly productive with twenty six of our top producers generating forty seven million dollars and average production for the quarter it should also be noted that the new loan production for the quarter is made up of five hundred and forty five loans with an average commitment of just under two and a half million dollars proven out that all areas of the banker participating in our growth initiative additionally we provided a quick snapshot of construction loans that will give you some indication of the underwriting and ultimate approval metrics of new credits that were book during the quarter despite deposits continue their positive trend upwards growing four point three percent annualized length order but more impressive is the growth of a non interest bearing category we now see at non interest bearing deposits greater than thirty four percent of total deposits with this growth and deposit price thing focus we continue to drive our deposit cause down from thirty one bibs to twenty three bids quarter over quarter or ethic quality continues with all trends in a positive direction and da's reduce for the third string quarter two point eight six percent of total assets past dues declined to their lowest point over the last five quarters our a c l decrease the one point five nine excluding mortgage were awesome ppp with no credit last revision and net charge offs of five point for me and for the court hearing clay provide further details momentarily
spk_3: here i came malcolm on page five going to see multiple graphs on my comment on a couple of these first tangible book viper share increased to seventy dollars and sixteen cents in the second quarter percent twenty point one percent increase on the link or regular basis it translates to just over twenty one percent year over year increase after adding back the impact of her quarterly evidence growing tangible the guy for share remains important hurry for a management team the second graph is on our operating return on average tangible common equity he remained very strong in the second quarter of and it averaged fifteen point six percent over the last borders has vertex weathered the pandemic rising capital levels and lower balance sheet leverage is putting downward pressure on this on this important metric living to slide six malcolm's already mentioned dirt road with a quarter we saw growth and all on loan segments except multifamily average mortgage warehouse balances declined pin point eight percent in the second quarter reflecting lot lower mortgage origination activity and shorter dwell times this portfolio it's at seven percent
spk_2: of average total loans excluding ppp
spk_3: it has grown forty nine percent year over year to talking about the average mortgage warehouse balances this growth in the portfolios been great to to absorb the excess liquidity generated during the pandemic it remains or intend to keep the average mortgage warehouse portfolio at ten percent or less of average total loves skipping a slot eight manager think i'm increased one point five million or two point three percent from cuba one and total sixty seven point one been and and to the most significant robbers of the increase would lung growth and lower deposit rates this was partially offset my lower lung yields and interest reversals on certain non pooled pc the ones next year and it was marked decline eleven basis points from que one to three point one one percent for key to the ppp portfolio represented and nine basis point right now
spk_2: an average quality was approximately three hundred fifty million dollars higher than a normal target love this had the impact depressing the number eleven basis points so many aggregate pp phoenix as the put it he represented a basis points drag on the up quarterly now also note that key to learn productions and three point nine percent and que to and you spend our deposit production was twenty four bases point
spk_3: as you would forward cute three mile i'm an interesting can't keep the following briefings and my first quarter his lungs excluding mortgage warehouse and ppp or hundred seventy five million dollars above the average balance for the second quarter
spk_2: laughing in the p c d accrued interest reversals of one point three million should not reoccur que three blackley day count is always important these factors give us optimism that the growth and that interesting come from que te de que three will be meaningfully higher than the growth we just experienced in queue to please note the at that and giving information on the slide including sixty seven percent of our floating rate loan book are eligible to reprised immediately
spk_3: on slide on slide nine another strong non interest income quarter which well point five million of revenue or ten point eight million exploiting the fair value impacted ppp all categories except mortgage were up for the quarter with a single biggest contributor being the origination and sale of as be a guaranteed loves getting on sale premiums are the strongest be seen in years
spk_4: operating expenses on slide and greece one point five million excluding the seventh costs associated with their previously disclosed branch ah restructuring over sixty percent expense is root of the increase is attributable to marking cost and this increase increases a function of our sponsorship of the contrary golf tournament held in cute
spk_3: you in dallas fort worth a flight eleven vertex had another good quarter on the deposit prompt as we grew three hundred seven million dollars or a little a little over four percent on a link or basis the graph the bottom left of the page shows the tranny quarterly deposit cost and or down eight basis points and cumin the queue to nothing and twenty three best we as still have just over one been see these repricing over the next four quarters and rate of fifty know basis points on the slide well capital ratios the holding company and banks started the or been strong position and remain that way most ratios declined slightly do the balance sheet growth while have skipped the absolute apple levels room about twenty so six male or capital the point of friday's given the current valuation her stocks are organic growth dividends strategic growth and lastly share repurchases on slide thirteen thirteen a month and with a few comments related to thrive as we announced last week we close are we not present investment and drive and we couldn't be more excited about this partnership qt words with rightward five point two million as compared to six point three million and he one gain also margins decline due to competitive pricing pressures offset by origination growth and lower expenses thrace business continues to build momentum because close to point two five billion and originations and twenty twenty and it on track to t between two point eight and three billion in twenty twenty one an increase of over twenty five percent the strong road for twenty twenty one isn't contrast and most recent in be a forecast would reflect a decrease of approximately seven percent from twenty to twenty one additionally thrive as achieved it's was sixty three percent purchase volume when mph projecting purchase originations to only account for sixty for forty six percent of twenty twenty one by there many synergies between throb vertex we're working to execute on those now believe they will start to bear fruit in the back half of twenty twenty one with that a lot
spk_5: trying to call him decline for some comments on crap
spk_6: like and good morning everyone the credit picture continues to improve as we move to the fall out of the pandemic in texas as malcolm mention are mph dropped over the quarter mps improved but ah point one million dollars an hour mps of drop seventeen percent from the high watermark experienced in the third quarter twenty twenty we continue to see encouraging signs of resolution in our power
spk_2: problem loan portfolio and we're working on meaningful additional reductions the mph in the third quarter
spk_6: page fourteen contains a credit metrics for the bank for key to you can see in the top left chart that past due for the quarter declined to their lowest level since the beginning of the pandemic
spk_3: we booked five point for me and and of net charges for the quarter that were centered and three credits a first charge up in a manner two point five million was alone to a franchise the restaurant group that failed the second charge job and the amount of one point seven million was for equipment related to an entertainment
spk_2: operator that file for bankruptcy protection during the pandemic and the final charter are amount of one point two million was related to a contractor that file for bankruptcy protection as a result of the pandemic
spk_6: all on the charge offs as quarter were fully accounted for with specific reserves and previous quarter some no provision was required for any credit surprises
spk_3: you can see that sharp on the top right of page that are allows for credit losses to help from best men including mortgage warehouse and pp paid drop from one point seven six percent as a few want to one point five nine percent as of the in the queue to the reduction was driven primarily by the five point four million our said in that charges with the a c l requirement for this quarter significant alone growth covered by the improving moody forecasts for texas gdp in texas i'm corner the chart in the bottom right of the page reflects movement and criticized assets over the last four quarters after a run up and criticized assets due to the pandemic with experience to twenty two percent improvement and our levels occurs as that that from the high watermark that occurred in the third quarter of twenty twenty class by
spk_6: to answer have decreased by fifteen percent over the first half of the year our special assets team is doing a great job of reducing our levels of criticized asset and we expect that to continue to the balance of the year
spk_3: the migration of credits from the land or special assets team day to deteriorating trans is almost come to stop which is is really encouraging our hospitality book continues to perform nicely were tracking and logging data and seventy five percent of the hospitality book relative to occupancy revenue and rap par for the month of june ref par for the book was thirty four percent higher than the previous high was
spk_2: mark set in march this year average occupancy was sixty nine percent for gene up from sixty five percent for march this year we're tracking about fifty million dollars and hospitality loans which have the potential the pay off by the end of the year and were saying some it liquidity return to the hospitality market in the form of non distressed property sales which is encouraging as well without i'll turn back over now thanks clay we couldn't be more excited by or banks performance and our prospects for the future is encouraging to see the upward trend and results and so many categories as well as our talent investments paying off and such a positive way i said it many times were fortunate to be an arguably to the best markets in the country and addition to incredibly strong and migration of view residents that continues to drive real growth and gdp in our state on the am in a frat things continue to be quite dynamic we're having discussions with institutions of various size located in both our current metro markets and non metro tech is marketers as well additionally there are few opportunities and vend tek bank space that we have engage with recently all this to say i do see the second half of twenty twenty one been a very active time for emanate and our markets in closing as jerry mention we finalize or investment to purchase forty nine percent of thrive mortgage and i would like to formally welcome will a barber michael and the entire thrive team to the vertex family the quality of this companies personnel it's technology and processes will greatly add to the continued growth
spk_7: both of our car company at this time i would like to open the line up for any questions
spk_8: and if anything like her a question fees pressed on the another one on your telephone keypad your first cousin went on michael rock rose way to raymond james
spk_9: hey my guess our
spk_8: they michael
spk_10: good i'm so i appreciate the comment on long growth you know looks like you guys xp between warehouse that about ah four hundred and twenty five million so far you're it looks like if you if you keep it at that level it's about the same amount the back half which implies a little bit of a slowdown from this quarter which is understandable obviously wasn't really
spk_2: really strong a quarter can use give us some collar on a you know what the drivers are on what paid answer doing and if you're a young we we obviously saw nice pick up in utilization through the quarter did did did did that factor the outlook to to to continue higher thanks
spk_11: yeah i mean ah so pay off the been fairly
spk_2: fairly normal nothing out outside that you will we did have of big pay down week after the end of the quarter in one hundred million plus actually ah but we've already made that back up this quarter in other drivers of this is is really any attacked as economy that's doing quite well again i mention the immigration people i mean there's real real business dawn on here and so i continue to see also some of this and others this these banks oh come together where you know the big ones and so there's some there's some unrest in the marketplace if you will and so are twelve months or fifty month that we've been focusing on growth even during the pandemic it just started pay off in a lot of areas that thing and always put a builder group together january verse and they're dead hit their stride lot of great originations but they're funny the been very light am so they're not even in there yet am in the reason as big as the village that so much cash there's using cash and not much leverage
spk_8: and so in our community bank of contributing a huge way that it's best year ever as though it's common in all areas michael it is not a damn as we do have an l construction has been very very strong but everyone's playa alex awful malcolm i appreciate maybe africa for carry it seems like there were some on the expand side there is some nonrecurring yeah charges year he mention the golf sponsorship i assume that them once a year at the that we're gonna happen fake and then it seems like there were some are some items and in other i non interest
spk_2: expensive your come out of the run rate use give us a sense for you know what they're what the education would be at least for for a starting point for the third quarter thanks
spk_3: well i think i think he just start with with taking the expenses for the same quarter and adjusting for marketing cause it can be wealthy on the net benefits as i mean it's not like a yeah when we absorb the coffin one quarter but the benefit is much more longer lasting given the investment and brand that were making their in recognition and getting ah yes past that
spk_2: michael you know i think we're gonna be you with we're going to be opportunistic on the people side in spite of all the recruiting and palin investments we've made route they're trying to make more because week there is that there are people as mountain talked about the disruption ah coming from him in a there are people looking for new homes and their talent it and they will bring loyal clients to us and and so on and any be think about ah you know what what we what we're trying to on the gross side and and revenue it's driving for us i'm okay if you get the revenue work right especially the good growth in the spread revenue right the expense
spk_12: is it gonna go up as we continue to make investments with the efficiency ratio should be just fine and so yeah wouldn't make i would make a lot of adjustments down other than just thinking about marketing and realizing we're going to be opportunistic when we get that opportunity to hire the right people they're gonna continue to drive growth and we gotta get when got
spk_13: no one remembers
spk_3: the a bike
spk_2: yeah they're not they're not going down in my opinion not really not much i think the a i kinda think a me and and a month and a quarterly time i just don't think there's a lot because him to go down a whole lot because the cup look it's not just about hiring run in our it's the credit seem to support it in the back office as well in the last we can afford to do is not be able to deliver on the new business we're bringing on and and and supported the right way so those are who you know desert less expensive i know but that we gotta stay up in their the couple of teams right now candidly that we're really close on like really close so
spk_10: you know those are can be costly and they take six months to get some sort attraction so i would expect expenses to be pretty close to where they are
spk_2: help or maybe just one final one for me i'm emotion that guy and i think he said i and i would be think said meaningfully higher in the third quirk and any as bad as what what that means he can you give us a qualification thanks while they can start with que tous net interest income and you add back the the reversal we had on the non to pc daylight going okay i'll take their word port and i'll see that happening again and you go to daycare and you go to that counts about seventy thousand and then a key thing is go
spk_10: to be average balance for the queue to versus the ending and then you think okay well as layer on growth from the ending and let's look at what the average balance and que three my be that how you get there is it it is honestly the maps a it it's it's encouraged when do that math
spk_14: very helpful thanks to my question
spk_7: sorry
spk_15: your next person when a miss yourself from piper salah
spk_16: take more years
spk_10: or that a brat
spk_17: i appreciate all the color on jerry just kind of where you talk to the movie party about he it sounds like you've got your least you know four hundred million in a more growth coming in the back half the year
spk_3: obviously he gets into be run off to it the plan is simply you know find that grows with that you know liquidity you got on the ballot here and there would be curious to know how much cash flow you're getting in obama for backwater off the investment portfolio disorders fun longer going forward
spk_2: yeah it's a great question and i appreciate it you know if the the yeah yeah do you think they'd mean certainly ppp acceleration our pet forgiveness has accelerated that can be a a a good source of liquidity what we have not done is when and nor do we intend to do is make significant increases in the investment portfolio because when we look at our road profile and we look at our pipe last i just that i just i don't feel the need to go up the end and so ah i feel like weekend absorb the expos the quality and a suitable timeframe given the growth profile when you look at the cash flow coming off a portfolio over the next twelve my of the investment portfolio we've got about
spk_3: ten percent of the balance and forecast cash flows that current rate loves so the reinvestment risk and the yield on as reinvestment is is is not as great as it could be for a lot of folks so ah we have at the best way i now think we can pretty well funded with the liquidity the pp
spk_2: p and the cash flow in the investment portfolio we don't we don't look to grow it because i'm afraid of inflation pressure and the t b the risk that long duration growing portfolio could could create great that's helpful and then i'm just on the yeah fee income side the equation the consumer michael's question sort of and other v the attic you've met in your made maybe some bowl a there's trying to case syndicated one these
spk_3: this is a bully kind of permit run rate from investment that you made or is there anything kind of one time and sort of you know the other feline items outside of just did the ppp income that you recognize in a quarter no i would say that the bully is is moral is lumpy but but what we didn't have a great quarter and with swaps and where are ya we probably just had the best month we've ever as a company in july of my mind it's at it up and my my belief is that with within the law penis of bowling could be upset with much better excuse
spk_17: come on the customers back to back swap program
spk_2: god in his final question for me and are you get you know
spk_18: the did the the first impact thrive in the yard in the third quarter in any change this sort of your initial guide is that that you guys talk about their kind of based on you know kind of what you saw from them in the second quarter got curious if you're can anything has changed your mind about their contribution going forward
spk_3: it it it really if anything it's only gotten stronger and i say that you know as as we went into this year when into this transaction with the folks that drive they are delivering yachts and they use the numbers two point eight bay and at three million in production at exactly what we thought and we announced this transaction their quarter was exactly where we thought it was be in terms of production their the gang on sale with down a little bit but but but they've been mitigated a lot of that with growth in production and and an expense management and so yeah we're feeling pretty good that that is that given what happened to me the ten years down about fifty be ups from where we were it was at it's peak hour yeah laden cute cute three and so that you not think the and i think the the mortgage business forever for everybody but certainly for thrive as is is looking good and and so i'm i'm expecting a i'm expecting better gain on sale and and continued good production and so i believe is is that they have the earnings contributions gonna be
spk_19: pretty much in line with what we were expecting when when when we did the transaction if not maybe we'll that
spk_20: great thank you
spk_3: yeah has a brat galley from kbw get back at greater good morning hours
spk_6: a bravery if you look at non ppp long grow at fourteen briefing your day you're saying the the four years going to be fourteen percent so that you're more good growth on the back half there it is that just a really good at twenty twenty one canada as were come out a covert or do you think that
spk_2: yeah this kind of that teens growth rate is sustainable for the next several years oh wow that let's break you're looking out of way far so i do think some of it is covered but here's here's what i what we really think as if two things one is and i'll be to get or about investment so he made and and contain american people but if if you take it back to first quarter twenty we were cranking and we felt like what we've put together with grain and reach all grain a little bit read told with some people that we're on we're gonna started and some great growth in efficiency there and so obviously pandemic set up stopped everything so we think this is a combination of get out of pandemic and the grain combination that just a year later because the pandemic and so we we are really focused on growth i am not consider day that we're gonna do fifteen or twenty percent for the next several years but i wouldn't be surprised if we're close to that it's just a major focus for us and keep him i did that the credit side of that is that is the legacy very tax credit process policies and what adnan so we've really confident and what we're putting on right now i think that goes and maybe unsaid or on disgust but the quality of stuff were bring and on is really good and we changed our compliance we change out some lenders and i think that a jerk
spk_10: years the prospects are really really right
spk_3: or then come out with great the your comments about him a day
spk_21: been pretty active in the back half the other ya that bribe for the night nice deal with your as you look at the your traditional bag him in a where are you go buy a smaller downstream community back where we haven't seen a ton of that and taxes or yet so what what what are you reminded that the hold up there
spk_22: in the sellers pricing expectations are that volatility a bank stocks what why have we seen work traditional banking there yet attack this
spk_2: ah yes so i entered about the that know the other thing is you know those the smaller deals they take a lot of bandwidth and when you can only move you know an increase in number
spk_3: two or three percent in are some guys are really happy with that i'm just that's a hard one for me so i think there's gotta be something more than just the three percent or four percent that you can get whether to strategic like geography wise are they have a business unit you thank you my bill exploit and grow a little bit that they just need to be a reason and in the reason i say that is now of we grew in the first half of the year four hundred twenty five million dollars in loans or that's a small texas back and i had no execution risk and at in met to pay extra for a premium for it and so
spk_23: the trade for me is of i can keep up that growth
spk_24: i've got the got a gotta be a real compelling reason for the smaller ones but i do think you know everybody stopped right kind of got back about thirty days ago and then it get the right thing came and we all got got it he had again and so i think just some stability somewhere if we could see some stability i think you're get see some of those deals
spk_21: the but a lot the smaller ones are hard to do
spk_0: yeah
spk_25: i thank you
spk_3: your next question of line of gary tenor with the a davison those are more nest
spk_2: order it when as good couple of what i know you thought that few come a little bit i don't think i'd i heard much come in terms of the be a outlook guy jumps production and and cannot your yeah real salt quarter there are any any thoughts on russian brands on or i'm in yeah i mean i'm were pretty bullish on the back half of the year part of that is built the nannies percent guaranteed on and on in a new new production allows me to sell or certainly still now more and you know to gain oh no
spk_4: twenty five years you know prompt was one seventy five are you know you're getting about fifteen percent cranium yeah split two and a half with the fps for your next twelve in the ass so think that that you're you're selling nanny you're holding tn and you're more than making up your whole with your gain ansel so i will do all that we can and
spk_2: and the pipeline feel feel good and so ah and we made some higher than that in and that a line of business over the last quarter or two and so it just gives us reason of optimism the think that kind of what you saw this quarter somewhere it's always lumpy and and at the you know you can have a big transactions you think
spk_3: gonna close and the ordered suddenly gets pushed to the next one but but we feel we feel good about how the back half the quarter looks and yes be a space probably the best we have that's pretty but or the pandemic just ended so busy with ppp and and that in and we needed to given idea need that our customers had come through the and damn
spk_2: nick but but but yet pipelines talent team is the best we've seen it and ah and and and the post green outset
spk_4: thanks said it and then as really stood back have the or muslim group does that incorporated any enemy for growth in the single family portfolio of your bones you may have purchased through this right channel or given the striking the commercial
spk_3: yeah fundings and out and outlooks job does that channel of growth become a little less important i wish for the rest of the sir
spk_26: what while with save our outlook for growth is not a the is not anticipating a big pick up and growth and of and a single family mortgage side a it's more a continuing kind of what we've been doing the we war but this quarter but we were down and key one but but it's always a leper that we can pull it we need to we've got liquidity and one growth with a litter
spk_2: lighter than we thought were certainly in a position and we want the grow that part of the portfolio over time because it's
spk_27: now it's seven eight percent of the have average lives and alex your love it to be get the piano and and go on up from there the twelve and after fifteen
spk_3: high quality you know farms bad one seven one type arms well underwritten but i think it's fair to say we don't have that in our forecast for the back half of the year so it's another lever
spk_2: if the pilots for allowed to that the pull that lever
spk_3: great appreciate it as much pressure for just just to clarify terrier comments earlier regarding
spk_28: the casualty of of investment but it sounds like not only will you not daughter from here about the biases on even read ss cashless to more favorable use them of announces us
spk_29: yeah yeah we would reinvest cash flows but we're not looking for meaningful growth in the portfolio and i'm certainly glad that we don't have a lot cash flows to reinvest given real lot
spk_30: great thank you very much
spk_31: thanks you like scared
spk_32: and your final question come line of a mad only with stephen thanks for my gosh
spk_31: or him that ah everyone's asking questions on long growth so i'll turn off my hair
spk_2: i guess pick and back in he commentary you can provide about just the number or how many new producers you've hired recently or even what personal never told producers today at the bank are are relatively new to their texting ah so the total number of producers is not a very much
spk_32: but i would get venture to say i'm looking at my my lending guys were probably our they get and not be allowed fifty percent
spk_2: of of five that the so up five total on producers but we've changed that a good third forty percent from where we were two years ago so it's more of a change out but in terms of actual body count it's not up a whole bunch matt i've cracked myself and been on on on flight sixty guy gave us good illustration of the on find it construction portfolio it's pretty sizable anymore car you can add about the lag from the can then they grow to done actual funded growth that you expect you know that that that a little bit of a crapshoot but you know where you're sick the nine months probably to start getting some funding of because we require so much equity at frat know thirty to forty percent are pretty much and every deal and so depending on the type of deal ya the industrial deal travel
spk_32: as a lot faster rate than a multi deal does
spk_2: but it's about six to nine month lag from put it on days starts and some fundings oh god if the just started january to and i guess we're just now about to start seeing some actual jack growth and record us soldiers believe that the builder portfolio specifically and the build a portfolio is is a different issue the bilderberg fully let them builders around our markets are doing so well they have so much liquidity were seen several guys put now says on the books and the next thing we know they're paying them off and then funded anything and so
spk_32: in a with one of our largest lines that we have and the whole bag the builder owes zero to the bag and they have hundreds of thousands under construction and they don't know any bank
spk_2: so that the function of just great cash flow from the builder specifically the one that was speaking to before that was more other commercial side and always as some of the liquidity dries up you're going to start same some more builder funding it the point is is it are builder group is not added much to a long road and the first six months of the year your i do see them adding in the backyard and certainly into the first half of the twenty two okay thanks to the clarification on that and and lafley for me on the movies warehouse a little flower in the second quarter i think one of the gardens if you try to slow down to with or dwell times in anything you can be numbers you can put behind us and and in gaelic we could see for the back half the year i don't know and and a don't have to the actual dwell times i just know that it is they absorbed up ah but i don't have the exact number in front of me ah me out they couldn't stay pretty sure because there's really no spread
spk_3: it proof for the for the mortgage lenders to carry their so they're going to push it as hard as they can to get it off the line and get it cash because they they just not picking up any think so i may i think a big was gonna drive i'm a i'm actually pretty encouraged it up watched other banks you're in the space report at you know i first ah
spk_31: i was kind of up is really odd mortgage were out this never down from he wanted you to but on average it is but i think that the function of what the me what you one was just unbelievably good but i do think that that that what's going on with rates is gonna help that at you know and now and the government's doesn't thanks to the that think you're gonna be beneficial
spk_33: and terms of that it was a there's a pity basis point the that in in cute to raid you know that round the negative market the i don't know exactly what he called it but they they wipe that l saw think there's multiple things that are get contribute to the better better by i'm better originations and i think that will help the activity
spk_7: will help warehouse balances but adults see well times movement much

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