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spk_0: the day at what with a the vertex holding fourth quarter two thousand and twenty one earnings conference call and worker all participants will be in a listen only mode
spk_1: please note this event is being recorded
spk_0: our out on the conference over to missiles and cuddle and better relations officer and secretary to the border of birth or folding you may begin
spk_2: thank you before we get started i would like to remind you that this 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 the this time if you're logged into our webcast please refer to her slide presentation including our safe harbor statement beginning on slide to for those of you joining up by phone please note that the safe harbor statement and presentation are available on our website varitek spanked dot com all comments made during today's call are subject to the at bay harbor statement some of the financial metrics discussed will be on a non gap basis which our management believe better reflect the underlying for operating performance of the business for see the reconciliation of all discuss non gap measures and are filed a ak earnings really joining me today or malcolm holland our chairman and ceo jerry early our chief financial officer and clay really are cheap credit officer our mouths and the call over to malcolm
spk_3: thank you and good morning everyone i'm excited to announce or fourth quarter and full year twenty twenty one earnings highlights the fourth quarter was a very strong quarter that produced operating the income of eighty four cents per share our strongest quarter in the company's history that was up from seventy cents per share in the third quarter or twenty percent increase while producing a pre tax free provision operating return of just shy of two percent the quarter did have reserve release of approximately four point for me and or seven cents terra give us the financial details on our quarter in a moment both growth and credit quality continue the trend in a very positive direction lone growth excluding mortgage were awesome dvd was a hundred and fifty million for the corner and nine hundred and eighteen mean for the year or nine percent and sixteen percent respectively this growth is despite elevated loan pay off levels and que four of six hundred and forty six million exceeding the pay off in the first two quarters of the year i could not be prouder of our frontline lenders to deliver continued longer results like the have and twenty twenty one are focused on hiring and adding to our team during a pandemic in addition to that continued market disruption shows me that we may be correct call to invest in people during the pandemic it should also be noted that the support teams have been incredibly consistent any vision in this high volume credit delivery process and we would not be where we are without them as we look into twenty twenty two we have strong conviction that we can continue to produce mid teens annual long girl much like or longer a deposit increases look much the same way for the year total deposits grew eight hundred fifty one man or thirteen percent it should be noted that a majority that drove forty nine percent was in the non interest bearing category which now represents twenty thirty years need thirty four percent of
spk_4: total deposits
spk_3: from a credit them point positive credit metrics remain the trend the most notable move was empty age reducing by twenty four million bring an end he a total assets down from point five one different to five point by one from point seven seven should also be mention that the year over year reduction in nv da's was over fifty percent charges were just shot thirteen million as several loans reach final conclusion all charges were previously identified and provided for in previous period as mentioned reported our first credit last reserve release of four point four million which brought down or a c l to one point one five percent or credit leaders and their respective teams had an outstanding year assisting are gross growth initiatives want the same time measurably improving our credit metrics in all categories the fourth quarter also brought to a several new production officers mainly in the community bank space additionally we are still active in hiring new and experience talent in the rift and operational areas growth is great on the front line but you must keep up in the non client base in areas to deliver credit a sound and efficient manner i'd also like to point out that we closed our north avenue capital transaction in november and a very impressed with a pipeline that been joseph that created going into twenty twenty two but more importantly impressed by the overall our business and it's culture fit with vertex with that of her over to tear that's malcolm on page five you see multiple grass just want the comment on a couple of these first are operating return on average tangible common equity remain very strong in the fourth quarter at twenty point five percent and seventeen point six percent over all of twenty twenty one has barricades executed well and spy by of the pandemic second tangible book vapor share only decline poor sense during que for to seventy dollars and forty nine cents despite sixty six cents of delusion from the north avenue kappel acquisition and are normal twenty cents per quarter common stock given in
spk_5: vertex grew tangible book they per share sixteen point two percent in twenty twenty one after adding back the impact of quarterly evidence tpp growth has been and remains an important priority of our management team the operating fish eurasia the ratio was forty seven point six percent for que for and forty nine purse
spk_3: sent forty nine point three percent for twenty twenty one has vertex maintains it's efficient profile even while making significant talent investments
spk_5: five six malcolm's already mentioned are long road for the quarter what growth was driven by sienna and eighty see these two portfolios both grew and eleven point nine percent and thirteen and a half percent respectively during the fourth quarter improving sienna utilization rate continue their upward trend the started in first quarter twenty two
spk_3: when he won the level of unfunny commitments and eighty see portfolio remained relatively steady average mortgage warehouse balances increase just under four percent in the third in the fourth quarter from the third quarter to the fourth reflecting new customer acquisition this portfolio sits at six point seven percent of average total ones excluding
spk_5: ppp it remains or intend to keep the average mortgage warehouse portfolio at ten percent or less of average total words slide seven shows information or line production twenty twenty one was an exceptional year is we chief five point four billion dollars and lung production and ninety one percent increase over twenty twenty
spk_3: on slide eight managed income increased five point five million from p three to seventy six point seven day and queue for the most significant or the increase was long road where average lungs excluding ppp grew back four hundred and ten million dollars or twenty four percent annual us from the third to the fourth call
spk_5: under the second most significant driver was prepayment income from a debt security is gonna stream it was a commercial mortgage backed security that was purchased in the second quarter twenty seventeen also note the key for lung production was it three seventy three three point seven three percent and key for interest bank deposit production was at twenty paces comments next let's talk about the net interest market which increased eleven basis points from que three to three point three seven percent almost all of them expansion is due to the prepayment income
spk_3: on the debt security for key for the ppp portfolio represented a two bases point drag on the nam an average liquidity was approximately two hundred and seventeen million dollars higher than our normal target up meaningfully from cute three this increase liquidity is primarily a function of ireland pay offs and had the effect of depressing the number
spk_5: seven basis points as you look model net interesting come computer future periods keep the following in mine first security prepayment income is unlikely to repeat second there was a thirty five million in sub debt with the part of fuck me family of person that was called in december twenty twenty one thirty three mixing of earning assets away from ppp in excess liquidity should continue over twenty twenty two for i previously disclosed heading games the stock loan to many interesting come late in the first quarter of twenty twenty two finally vertex his assets and tivoli profile has grown from que three to queue for as a result greater liquidity and faster one prepay space with market expectations of three to forfeit rate hikes and toy twenty two this will add significantly the net interesting come on slide now provide an update on north avenue capital capital acquisition which was and fourth quarter not had a good couple of months with beret ex and contribute approximately one point three million and pre tax earnings the pipeline is building and you're actively recruiting to take advantage of the increase government funding and a rule energy for america pro graham otherwise known as rape and the just announced one billion dollar food supply chain guaranteed loan program
spk_3: throughout reported another good porter loan production of six hundred and sixty six million and gain or sell margins down slightly to three hundred sixty basis points he's now he's certainly affected production by him and the pipeline
spk_5: fundamentals remain strong thrash for that twenty twenty one production with three billion dollars up from two point three billion and twenty twenty representing a thirty percent increase this was an exceptional result when the total production in the industry decline almost five percent during twenty twenty one on slide ten another strong on interesting come quarter but sixteen point two main please remember that in the third quarter we excluded from operating results that benefit of one point nine million and ppp forgiveness at thrive operating noninterest rodney represents seventeen point four percent of total revenue for the quarter and should continue to him prove with the for quarterly contribution more that new capital and more favorable season that seasonality for our mortgage business for the for foyer twenty twenty one reported operating on interesting com a fifty seven billion dollars or twenty seven percent increase over twenty twenty this increase was the result of their texas strategic content to invest in diversified revenue sources namely thrive north avenue capital and you syndications group customer interest rate swaps excedrin
spk_3: operating expenses on slot eleven increase two point nine million from que three salaried employee benefits were the largest component of the increase it's headcount grew seven percent during the quarter but almost half of the growth come from north avenue capital and we've been saying for many quarters when you headcount salaries were headed up due to our investments for growth
spk_5: additionally relating to the fourth quarter personnel costs level these costs were also up due to lower deferred loved rich nation cost moving to slide twelve
spk_3: another good quarter on the deposit prime with growth of ten percent for the court and thirteen percent for twenty twenty one deposit growth would have been even better that we intentionally work with their customers to their deposits off balance sheet ignorant to allow us to stay under the ten billion dollar threshold tell the parked cars continue their downward trend and ended the year it
spk_6: eighteen basis points
spk_5: on slight thirteen all capital levels except total capital contract at approx me eleven million dollars over the court has earnings were upset by the north avenue kept on acquisition acquisition and evidence total capital contract and more due to the sub debt repayment i mentioned earlier and a decline in the allows for credit losses or capital deployment price given the current valuation of our stock or organic growth dividends strategic growth and lastly share repurchases with that a black turn the call of decline for some comments on credit
spk_7: like a tearing good morning everyone the credit pictured vertex continues to improve his malcolm described earlier mp a reductions continue their downward trend in large part they did their it a resolution of the banks largest np a loan by way of a note sale
spk_8: another maple resolution over the quarter included the sale of a judgment on an acquired credit that resulted in an approximate release of one million dollars and specific reserves additionally bought point for me and of loans are non accrual paid off during the quarter at par
spk_5: credit migration continues to improve would criticize it down by seven percent for the quarter and twenty three percent year over year always saw some credit downgrade in the normal course of business upgrades outpaced downgrade meaningfully throughout twenty twenty one and i see nothing that would change that try
spk_9: and today
spk_5: during the fourth quarter which are stop twelve point six and and credits that we're all more than fully reserved against but acquired loans accounted for seventy seven percent of these charge charges these charges came in three primary buckets forty three percent were pc the loans twenty eight percent whereas be a loans and eleven percent were loans moved to help for sale they city charged out loans were primarily the result of negotiated settlement in anticipation of the rest resolution of debt the as it be a charges were the result of loans that have completed liquidation and were awaiting payment for the guaranteed portion from the spl
spk_7: the vertex originated loan charges are centered and alone that was moved to help for sale with more than sufficient reserves taken in previous quarters
spk_8: this long sale closed in january
spk_5: we continue to believe the challenge credit we have in the loan portfolio are properly reserved and i'm encourage with the progress and resolutions are credit was made to further the positive credit trans metrics
spk_10: without turning over the mountain for found in march
spk_3: as i reflect on twenty twenty one i couldn't be any prouder of our team even during a pandemic and economic uncertainty were able to deliver top tier results and twenty twenty one long grow sixteen percent deposit growth thirteen percent new production hires fifty five i operational hires one on one reduction in nv ace forty eight percent reduction and criticize assets twenty three percent focus on non interest income investment and drive purchase of an a ac notwithstanding these accomplishments we're all excited by our prospects and fully expect to continue our positive results and twenty twenty two we continue to evaluate emanate opportunities and both the bag and nonbanks face it has been a core value by to be ready and opportunistic for any bills business that sells for this strategic needs of our company whether it's funding non interest income scale or technology we have not lost our focus operator i like open line for a question
spk_0: thank you ladies and gentlemen as a reminder that question you unique eight that and one on your telephone can withdraw your question again next i want to ask questions please and our about can a rough effort by can confirm lab rat meal that type
spk_11: line
spk_12: hey
spk_13: monty god
spk_3: born in iran
spk_13: malcolm now to start with one growth on twenty three new producers in the court or is pretty high can you totally yard types of wonder came from and then what that means
spk_3: can sort of outlook the to and the on sure ah yeah to we we did a and in our production numbers in a we do include some of the support votes and so and that number specifically we've got ten plus got a frontline relationship manager type people the majority i think i mentioned it was in the community bank bass boat in dallas and and and use than other in other i thought about market disruption all other majority those came from one of the major market disruption places in our state so that groups we civically is probably you're not going to see you know a massive loan production numbers
spk_14: but it continues to be or most profitable our best funded
spk_3: group in the back were also had a a corporate bank higher and also somebody in this and the sponsored finance area that we brought from that same disruption i just talked about
spk_15: so yes
spk_6: in the thing is an addict allow for those folks to get wrapped up is the third quarter was also a really big are quarter and so we're starting to see some of some of what they're what they're put together and the pipelines are
spk_3: we're pretty encouraged by where the pipelines are today
spk_16: also includes some some some product the production folks from neck
spk_17: yes yes that's correct we're and then we had no and all that than that people are like there and nineteen total
spk_13: and the nac ah acquisition
spk_3: okay still feel comfortable kind of that low double digit type gross guidance and in twenty two ah you know brad and i think i mentioned it but i'm i'm probably i'm probably thinking a little bit higher than that so i'm thinking we can do gonna amid games you know we did sixteen at last year in i'm thinking we're going to be under fourteen to sixteen range and twenty two but the specialists are assuming pay off those thirty four levels yeah i mean that was a may i wanted everybody to get that pay off number that was the monster pay off level of six hundred forty million dollars we still grew honored fifty me and i mean we didn't have six hundred forty main and a off the first half of the year so i think they're going to be higher than the first half of the year but i don't think there can be six out of the demand side and of that coupled with our in our are unfounded commitments that we add on a real estate side we feel pretty good about mid teens but a grade and and as a followup for me i carry just on the expense of the equation on you guys have historically torpedo good job keeping a pretty tight learning than two dogs to like discussion about in a wage inflation you got eyes or growth but he did you feel like the fourth quarter it up a pretty good he can run rate
spk_5: i know you get another month for in a she in there but this guy corrupt how you're thinking about you know the expense bill
spk_6: i q kind of the i get that this kind of in why snared backdrop
spk_13: well it it is a need any need the perfect crystal ball the be able to forecast inflation and how it's gone in flight wait cost and i confess i don't have one of those but but having said that if if a little just in general on expenses
spk_5: and will take a wider range than a normal normally would i would eat you know i would say one hundred the hey you know like one hundred and eighty to two hundred may and right now and and you know it it's just a it's so hard it's so hard for now ah i'm at a he can rest assured any time someone departure organization
spk_6: ah it it it isn't it's not it's painful to rehire on the cop on and on i think that's the case everywhere and i think we're been more successful ah a the recruiting and hiring and hanging on the people than most but it it's it's a hard one this year
spk_13: brad and so i yam will be i'm will be yeah forty five to two hundred and and ah the catholic with we were planning to continued are some to main so in a you get will one eight we had forty five for the quarter bought a new law is one eighty but with inflation in hiring expectations and a four year and that i think i gotta
spk_3: i think i got a wide net out about two hundred
spk_18: that the when they beat one more follow up on on on a thief area i know you you know cautious you know you to think about comedy annual rock right can be rather from corporate a quarter but your based on what you've been from a couple months be kind of to feel good about the feel kind of revenue gotta teach you laid out which enough to kill my life
spk_3: here
spk_19: ah yeah i would out cannily probably a refill little better
spk_0: i'm with with a little better than what we initially laid out the and just by the way that has made three new hires this month
spk_20: that part of the plan was in the guidance we gave he was and so they completed that and there on the production side
spk_21: great you
spk_6: got
spk_13: that's for breath
spk_3: thank you and expressing concern a lot of my growth raymond james
spk_5: a lot of help a minute one of you don't want
spk_16: yes around one him anyway morning and just wanted to start on the isi aid on that the core margin at three thirty one yeah area rattled off a bunch of yeah considerations if i if you could if you could help sell little bit with that you know what the what the impact of all some
spk_13: yeah law considerations might be and how we should think of at least about that the core margin exploration and yeah stuff like that and yes you think about the are obviously with the backdrop of you know higher rates and but just looking for a corp yeah core expectations act any rates bags for night i'll be glad to
spk_22: will it a be if we didn't you for three thirty one what i'd take and take ten vips thought that that prepayment the three twenty one we've got nine built of expansion opportunity between ppp annex liquidity so that takes you back up to three thirty the are hedging games are going to add ah about five an hour
spk_3: after that three thirty five and the sub debt payment pay off his two and a half to the name so i would say about three thirty eight clover and and as mad of taking out with him beeps for the security prepayment i guess as a good sorry point appreciate it and then yeah you met you mention on that the how for investment side know mid mid teens graph it's really really good say it obviously i'm yeah to go a bit better than expectation but as we think about that the warehouse you had a larger at are yours in town got a guy down warehouse balances in almost twenty percent how should we think about your guys you know warehouse
spk_16: as we think about that the or thanks
spk_23: yeah i mean we listen we really are not guiding it down we think it's gonna grow there's opportunity
spk_5: move out amy run and and group is is done an outstanding job there's there's a new business that we're looking at all the time
spk_3: and so we think there is a little bit a growth in there in a will never grow it
spk_13: over the ten percent that we've always talk about since day one when running at six point seven percent last month or so and last quarter on average there's some room there and we think there's some additional room there and she does do so we're not guiding that piece down at all that we we we got some specific class they're coming on if you want
spk_3: yeah we've already got some identified approved and am so we we feel pretty good about that number grown
spk_5: i'd say maybe it and neither can you do it but maybe off your high horse low five spread for average is maybe if i think about it's given sir x yeah yeah thanks us
spk_24: okay
spk_5: fair enough and then
spk_24: maybe just one final one for me
spk_22: the longer deposit ratio x warehouse yeah right around eighty three percent and eight talked about finding ah in the past any sort of expectations for a deposit growth and yeah how should we thank you i think you'd mentioned that yeah yeah have enough liquidity i think you said last caller previous calls through the end
spk_25: of i want to say twenty twenty four ombudsman are getting updated thoughts on off on that that yeah relatively ireland or deposit ratio backs
spk_0: yeah i certainly i understand the question and and we the quote malcolm weekend or a little hot there
spk_26: i'm too but but keep in mind one of my comments was we intend son moved off deposits you know are at at the end of the year to stay under ten days of come back and and and there's some interesting and meaningful sizable msr deposits coming with the ah ah the new mortgage warehouse customers on and que one and we're continuing to see our good deposit activity especially from the major disruption that malcolm referenced and we've hired some new folks in our treasury sales dapper so i think look we're pretty focused on that they are you now i know i'd been under statements and ah and ah stay tuned but but we feel we feel good about the the deposit grow transfer for twenty two are given all the things i just mentioned and
spk_16: will continue to talk about this is we got good as we go forward
spk_26: i right this stigma questions
spk_27: thanks mike
spk_3: thank you alex question comes from a threat hegemonic a veteran back girl now brett
spk_16: and there are cured i know you guys have done a pretty phenomenal job of taking a power from the market disruption
spk_26: and with with in texas itself the first half of twenty one was pretty quiet special relativity the second half
spk_22: and terms of deals and with your guidance in canada and teams growth but the reason deals announced obviously a single time for them to close but eating the potentially see growth higher math through
spk_16: more opportunities for at encountered in that kind of private kind of prime the pump for f y twenty three
spk_26: ah you know
spk_3: again it's it's some sort of a guidance that were given a camp for see that dude deirdre a think with the team that we have assembled the day we feel pretty comfortable in the middle age range we are talking to people other groups teams opportunities ah it always takes a rapper time and so when i have those iron in a lot of these folks are in a way awaiting their a out from twenty one so those own app until february or march they don't get on board until said one quarter probably don't see much of their help until you get the twenty three so you know get pay off slow sure i don't see that but they they were to materially slow down i think you'd see the midday and number girls are adding that maintains grow numbers of function probably more chaos that is on fire and new town cats are a couple color arm and then much i would be more on times your evaluation a is is improving so obviously ones you listed out though the capital actions share purchases was towards the loans and pressure that organic growth was at a high and but be think i'm in a from your perspective is they're eating on a wishlist so to speak that you'd wanna check in terms of those boxes that for additional you to bank or see income source with would be to spring to vertex of the whole
spk_28: yeah i mean we're always active in the am and i saw a man in eyes are currently become stronger we get you know a little bit more active i'm from time to time but yet it a few yup you holes if you will misstated taxes were fairly committed to the state of texas at this point in time
spk_0: the way we don't have anything in central texas or we'd like to fill that all at some point guard but and then we also would be there's what we call unicorn banks around the state that aren't for sale nobody's willing to sell him but if and when that happened to there's an event that happens is that institution we want
spk_29: be in the conversation
spk_30: so we want we want to be active but we're going to be extremely discipline
spk_31: on the on the am and a sad because we do have such an organic growth story on that on that you know nonbank side we continue to to look at different opportunities obviously last year was quite successful in that regard with our investment and thrive and the acquisition of max though
spk_32: i'm continuing to look at those things and you know vindictive big buzz words are we continue to look at there's all sorts of stuff flying around there so will continue to evaluate it again it's gonna be well of strategic priority did i said at the end of it my remarks it really we need to meet those
spk_33: cats are that sets up of course not on a soldier
spk_5: thank you alec question comes on the line
spk_34: the line help
spk_5: i think point as
spk_35: martin map and mad i don't but i'm wow i want us more about the than and start with thrive
spk_36: a sounds like you think that the fourth quarter was the trough and expect some improved on trans in the first quarter died and i hear they're right and i and i think you mentioned
spk_5: a few months ago that he thought the thrive impact their that be between two to three million dollars per quarter based off season now the is that still the thinking or do either the down shitty any that given the market at once
spk_3: well i mean i think if
spk_5: a is clearly seasonality and i expect you one ear you not is the main the body of things start to ramp up when you start coming out of out of winner ah so whether it hits the production side of things into one athlete you hit the pipeline ah and a look as we all know there's been tremendous ah i'm ah
spk_3: daniel still margin compression in addition to be a just volumes are down gain or sell margin i have had come down ah i'm a you know at the anthrax and through drive is focused on bringing or more teams are growing production capacity ah but but you know i i think it's some
spk_37: if i had to
spk_32: i had to use
spk_3: let me say
spk_5: crystal ball i am get the i'm getting my crystal ball out that eat you know i would say you know it is gonna be it's not as lucky of knack but he didn't gonna be a linear straight line either if if i had of that did that lay out a range for thrive i would probably go in there seven and a half the nine million ah a of said the at the nine million dollar and your
spk_32: impact ah a you know and it's it's obviously going to be stronger in keys two and three ah so that you know
spk_30: that's that's the best inside i have now and ah yeah i'd say at stake he wants go a little stronger than keep for of twenty two i mean look at mean i'm looking a mac and like atkins got perfect vision and the fourth quarter which are clearly said nope and nope know who does exist in it's volatile
spk_32: right crazy time or in here so it yet you know and it's such a rate driven business but i think they did proven twenty twenty one even when the industry's down they can grow and one of the key parts of that is what's going on in the taxes economy i mean we we brought on between three and four hundred thousand people last year moved in the taxes and sixty seven percent of their business at thrive roughly two thirds comes out of state taxes so it's it's a huge ah minutes at a nice or tailwind to have it when when that when this is going on
spk_8: okay yeah how preparing for the commentary there and fluffy shape that the ethnic a call on on the more which to disappoint
spk_5: ah i can take a step back i think he talked about one of the strategic pirate easy to get the field feet up to twenty five percent of revenues i assume this a longer term goal and maybe not quite within within sight in and twenty twenty two and am i think that that right
spk_38: yeah yeah no i think we've gone from olive year ago ten eleven and were up to almost eighteen but but it is loaded a full year back you know you're going to get to the twenties loved one of the we're going to get twenty five not or i don't think so but yes activities to be a long term goal which means that will continue
spk_5: lucas you know other businesses both inside and outside that might add to that number the other thing making a hard brad is when you get when given our assets sensitivity given with the fed on the launching pad with rates that drives up the revenue just from just from just from that interesting come in and
spk_3: rights and if you if you're growing mid teens and the fed is raising rates getting the twenty five percent and be income even with a full year and that is a pretty herculean effort
spk_5: yeah now understood and that that that they get from the have given your rates and for the profile ah just laughed my eye on credit ah think quite gave it in great detail as far is that the queen of than a quarter
spk_39: it a fair to say that additional credit clean up from here is going to be less material that been we saw in the fourth quarter and in would be allowed three shenanigans one fifteen pain warehouse and ppp
spk_30: or room for this to drift down or sweet despite this ten more or less slanted from here thanks
spk_40: well a at i yes that think the the material clean up that we didn't the board with order was you know i'll anticipate that going for a me can see where your store storable numbers have been for the last couple years i would think those got a moderate down meaningfully ads
spk_0: is primarily because we reduce the the pc the book bad seventy eight percent over the last three years and that's where a majority this as come from so yeah our our think luka modric down significantly yeah and i think again despite the reserves than oh please stay right where it is
spk_41: is
spk_3: that would be without be the go might be challenging might be challenges but what with a way to go with away so works and the economic to go into the model
spk_24: at you know that those are pretty important drivers and so we would have thought that one fifteen was gonna the bottom i think it's got the potential to on that major moves but but i think if there if it again we come back to the strength of the taxes economy and you look at the movies forecast for gdp and unemployment it could push
spk_3: yep a little lower not in inglewood sub wondering like that don't misunderstand me what
spk_42: it it it it is it's a it again it's a good problem the have when you got this economy
spk_3: yeah se with wrote profile that yeah oh crap that offer me congrats on a great your gas tank
spk_8: bram matt math cooper
spk_16: thank you and next question comes from the lot of character with the i did a lot of help a summary
spk_6: i'm carry on this hey i'm a senior europe prepared remarks it began on sale margin on thrive you just give us that again
spk_13: there was three the up at three sixty down slightly
spk_5: for sixty at it and and then if you'd mentioned cause i'm looking this on mac and and united you'd kind of telegraph that free while when you did the deal are based on kind of fourth quarter production and and kind of what things look like in the first quarter and he any sense to that kind of what yeah ansel could be from that particular business you're a monkey ah it's gonna be higher
spk_20: ah a fit and we got a pretty decent range and merida beta this the little slow answers to those are big deals and so that you know they they're just love the himself and last year they sold a total of one of something loans i'd learned little ones no twenties and so interrupt you get five or six and a quarter you're going to get a pretty good out but if they're pipeline is very very strong
spk_5: wrong and it will undoubtedly first quarter world it's even forward could be bad as you go round and as much as i recall the going on sale for games there while both chauvinist be a level that any change to that are they still have that can i your but or twenty five percent are you know what we sold so far since the acquisition fat then and need seventeen did
spk_43: twenty percent right
spk_5: i get them with you with at and then they are now we got
spk_24: yeah when we have three years on the a place that fifteen percent so
spk_0: why and then what has gone on capital and side thirteen city one and or and a half
spk_44: the or with with candidate that your your expectations for mid teens loan growth
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