Veritex Holdings, Inc.

Q3 2022 Earnings Conference Call


spk_0: the day and welcome to the vertex holdings third quarter twenty two twenty two earnings conference call and webcast all participants will be in the listen only mode please note this event will be recorded i would now like to turn the conference over to miss susan caudal investor relations officer and secretary to the border beer kegs coding
spk_1: 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 result to the upper the company undertake no obligation to public with you by any forward looking statements at this time if you are logged into our webcast the please refer to our slide presentation including our safe harbor statement beginning on flight to for those of you joining up by phone please note that the safe harbor statement and presentation are available on our website varitek think that com all comments made doing today call are subject to that safe harbor statement some of the financial metrics discussed will be on a non gaap basis which our management believe better reflects the underlying core operating performance of the business please see the reconciliation of all discuss non gaap measures and are filed a k earnings really joining me today or malcolm holland are chairman and ceo very early our chief financial officer and clay ruby our cheap credit officer i will now turn the call over to malcolm
spk_2: good morning everyone welcomed our third quarter earnings call burgers continues to operate at a very hardy fish and level producing record dollar earnings continued growth and improved credit metrics flood five gives you a summary of our third quarter results with your candidly the best than our company's history starting with earnings will ported forty three point six million and net income or eighty cents per share up from fifty five cents per share and key to our pretax prefer provision income continues to climb up to sixty three million or two point two percent on average assets this metric continues to show their earnings power vertex jury will give you additional color on the components were and gum much of which is solid sustainable profit our girl profile remain strong but it down from the previous quarters for three you love grew five hundred ninety five million or thirty percent and for the first nine months of the year thirty one percent annualized we see growth continuing to slide down as we expect the fourth quarter to be in the low twenties and forecasts twenty twenty three loan grow to be in the low double digits our pipelines are currently down one third from the previous quarter and we have had over one hundred and fifty main and pay off during the first three weeks of october keep in mind much of our growth we have had this we've had as come from new hires since we've made since the start of the pandemic for the third quarter forty two percent of our growth was from our new hires we consider this growth more of a market share grab versus the region's economic growth which we see beginning to blow a bit and our dfw and used to markets while we have slowed are hiring for new bankers in many areas of the bank we will always be opportunistic and adding quality people to i came when they become available the barbie growth has continued with the quarter during this quarter showing grow the two hundred thirty one million or ten point seven percent as we think about deposit grow going forward is my team's greatest focus we have proven that long growth is a strong core competency of our company while we have shown that we can go deposits and as our attention and focus to bring our deposit growth numbers very much in line with our loan generation numbers as i look over the last twelve months a non interest bearing growth is up three hundred million or sixteen percent in our interest bearing money market accounts or up seven hundred and thirty seven main or thirty six percent these are numbers are are very proud of and shows are ability to grow both sides of the balance sheet despite some of noise in the markets are credit metrics continue a trend in a positive direction for the eighth consecutive quarter and be a declined following this quarter fourteen bit the point two six percent faster is greater than thirty days also remain a very good shape producing numbers lower than to queue levels despite improvements in credit metrics we find it prudent to continue to perform deep dive analysis on about folio and are concentrations and stress or credits at levels we don't think we will see with this stress the thing we do not see any significant weakness in a full popolo episode are now turn it over to terror
spk_3: i'm thinking about starting up a six to three was a very strong quarter for very to prevent attacks one of the best i've seen him my forty plus your career or operating return on cable common equity is almost eighteen percent this is on an equity is more than seventy percent larger than it was at the beginning of the year after
spk_2: shitty ratio was hundred forty five percent reflecting our branch like business model assets sensitivity and strong growth at his net interest income grew almost twenty percent on a link quarter basis lingering spot of underperformance was fee and call i'll discuss this later ah mm comments we don't have a presentation table on operate average but let's start a discussion their revenue growth since que three twenty one had been thirty one point two percent even with weaker fees and que three weeks vince growth over the same period have been twenty two and a half percent reflecting significant investments and doubt this results in eight point seven percent positive operating alone leverage if you would just keep three twenty one for the nonrecurring impact of ppp fees than revenue growth gives up to thirty two and a half percent and operating leveraging bruce to ten percent those results indicate er investments and tower which are a significant factor in a group profile are generating strong returns tangible but vapor share only declined by one point six percent reflecting the rise the impact of rising rates on a a cr is grown by six point seven percent over the last four
spk_3: orders adding back the impact of the dividend
spk_2: on flights have enough i'm sorry mentioned are lung broke for the quarter this one growth includes the purchase of approximately forty million dollars in owner occupied mortgage pools dirt texas deliberately long road traitor of over eighteen percent since the beginning of the pandemic i'll fly a huge progress being made in our city in our business to year to date rather than twenty twenty three was up my approximately seven hundred and seventy five million over twenty twenty one one the key drivers is a dfw team that has attracted sixteen you see and i relationships
spk_3: they have served it lead or joint lead or a drum over one billion in credit commitments lastly the insurance related vertical be showing real promise with both sizable loan commitments and deposit opportunities advances on the eighty see portfolio are approximately four hundred thirty million dollars per quarter and our average mortgage warehouse balances decrease six point four percent in the third quarter were certainly please with both great get great results and the risk mitigation steps given what is going on in our mortgage industry
spk_2: on slide nine we produced one point seven billion in loans this brings the total for the last four quarters to six billion dollars in production on flights him an interesting come increased bus sixteen point six million or almost twenty percent from two to two one hundred and one million dollars and three the two biggest side of the increase or growth which accounted for six point six million or the increased and the fed raising short term interest rates which represent a point four million the net interest margin increased thirty five bases fortune two to the three point seven seven percent the niamh got stronger as the quarter progressed given the timing of the fed rate hikes and the lag in the reset of one lot so sober and live or by floods than the and for the month of june was three point eight seven percent and strengthen birth or in october at contractual loan deals on the portfolio and increased another thirty three basis points through that much as you look the model that interesting computer periods keep volume on first that he know our average balance is or up the to little bit so keep that in mind creating some one of the jump off even more could expectations of a hundred and fifty basis points and additional feared rate hikes this will add significantly the net interesting though critics that that sensitivity has decreased since due to it so has are downright risk we have been intentionally hedging floating rate lunch for three to four years the mitigate falling short term right after twenty twenty six on slide eleven please note that are don't you three are lonely it was a eighty five basis points to five point one percent while deposits only increase forty eight bits the loan portfolio cool eight or nine thirty five point two percent to three loan originations for eighty five percent bloating the floating rate loans during interest rate at the other quarter of almost five point seven oh percent
spk_4: slide twelve
spk_2: ninety percent comic crease but two point seven to thirteen million most of the increase was due to a customer interest rate swaps
spk_3: which increase two point one day and for three point four million in total we did more swap revenue in the third quarter than in it than in any previous over year revenue related to our government related businesses remained week at approximately six hundred thousand one correction on this page which stated in the book
spk_2: the bottom lip the slot that the servicing asset as that valuation jasmine a two point one was taken in three que twenty two we actually took a one point five million right down into que we had a five hundred and sixty thousand dollar right up in the servicing asset and que three the combine change from due to the que three was two point one million so five hundred and sixty thousand dollar right up computer it non interest expense increase two point seven million dollars to fifty point six reflecting the investments and talents we've been discussing for many quarters even though operating expenses are up operating leverage remain start strong and efficiency ratio is in the forty four percent range regarding the increasing to three non interest expense sixty five percent of the increase is unbearable cop about twenty five percent of the increase is in south so to speak about that as you go forward in mileage batches so far and twenty two weaving court approximately one hundred and forty five million dollars an operating expenses we will believe we we believe we will be at the top end of the range in our expense guy that which was a hundred and eighty five two hundred now
spk_3: arafat million dollars for the pool here looking forward the pace of hiring is slowing the things prudent as we see production slowing and twenty twenty three slower long growth of translated to stroger capital ratios and improving little under deposit ratio the steps coupled with or variable compensation shit slow the growth of in our a and twenty twenty three turning to slide thirteen two three was another bumpy quarter for north avenue capital as the us be a continued it centralization of allen funding decisions in washington were unable to get any you as the a lunch close during the third quarter a pipeline is ground or hundred as gonna hundred million dollars and third quarter
spk_2: and we are expecting closings in the fourth quarter or as be a business continues to build momentum is or new leadership and recent art gain traction the pipeline is up about fifteen million dollars is the end of the second quarter gain or fail premiums for the government guaranteed business has declined about another ten percent since the end of keep it it's likely that if jail cell premiums and us the a and as be a market remain under pressure the vertex what choose not to sell a portion of our production rather we will portfolio the lungs given their strong pricing and favorable capital treatment
spk_3: no this we're going to make the right long term economic decision prepare decks even if it means for going some short term revenue moving to thrive vertex recorded in equity method laws are just over one billion dollars is funded volume decreased approximately fifty percent in two three while the m the m b a have been forecasting thirty percent decline but you
spk_2: your it higher interest rates and significant rape volatility have created a very challenging environment dr has been able to maintain their gain or sell margins and even expanded this quarter to the higher percentage or by him coming from sun belt states navy always had more relies on purchase business vs ripa they continued to aggressively manage coffins that levels while successfully hiring origination teams in different parts of the guthrie the should add meaningless
spk_3: the forecasted by i'm going forward
spk_2: moving forward to slide fourteen a good quarter on the deposit brought with growth of two hundred and thirty million and a twenty percent keg or since the beginning of twenty twenty total deposits cost increase forty eight basis points to seventy six basis points or cycle to date deposit beta is approximately twenty seven percent of total deposits have increased fifty eight bit and the average fed funds effective rate has moved up to hundred and twelve basis points
spk_3: on slide fifteen tell capital reportedly forty four million during the quarter to one point four billion dollars c t ratios have expanded by thirty four basis points year over year looking forward on capital we believe that moderating lung growth coupled with higher earnings rising interest rates should allow their achieve our rct one target a ten percent of the and of twenty twenty three balliol flood sixteen
spk_2: malcolm's already mentioned the improving credit death threats as will to know to keep rape we increase the waiting on the downside economic two scenarios the thirty five percent and on the and reduce the waiting on the baseline scenario the sixty five percent that drove the little over four million dollars increasing provision you see them with that the lectern call i will a very we continue to safe and very positive result and momentum for my market than incredible pain with assembled as three key results for dish strong metrics one boy five one return on average assets for tax free provision two point two percent return on capital federal capital eighteen percent efficiency ratio forty four percent and mph down fourteen bet quarter over quarter i'm proud of our company continues to prove for perform in these uncertain economic times and grateful for the opportunities had add our business with that out open the line for
spk_5: any questions
spk_0: thank you as a reminder to ask a question you will need to press star one one on your telephone please stand by while we compile the killing a roster one moment for a first question our first question comes from brady gailey f k b w please proceed
spk_6: a thanks to my guys
spk_7: i'd rate a break
spk_3: the of like the income has a lotta movie pieces here are set up a monster swap quarter but mortgage off money and yeah us the a market was still close and break here that's about to kick in and forty is or how ya i know it's followed on another doctor of alberta as as you looked of work you and the twenty twenty three a how should we think about total fee income
spk_2: bianca right variety of scary on adhere to way i think about it even is that if it's gonna be hard to replicate a swap quarter as good as that ah when you do more than you've ever done in a year and one quarter so i think i think swap income comes down some i think as be a and us the a go up and i think thrive is basically a break even business
spk_3: ah so you know i mean i cannot feel like the current level while the next is gonna change the absolute current level of fee income feels pretty good right here as we go into next year i thought i and that at at and then onto the expense space you know as the hiring flyers that think he said an expense grad should the last and twenty twenty for vs twenty twenty to the metal maybe just quantify yet if expenses come in close to the fifteen million dollar level that up but you're close to a hundred ninety five million for twenty twenty two so it's a off that they any way that guess what the expense creep could be and twenty twenty three probably have single digits and percent present and korea
spk_2: occur aka me when you get out and you think about our current run rate at around fifty one million yen laws that i mean you your was that end your call it the tool five you know so depending on how you're looking at it you looking not to wait twenty two to twenty twenty three i think somewhere close to at let you know i thing that you know cause single digits i think if you're looking at it based on a new los que three run right not have single digits from there but but should be enough you can you put about mid single digits on adding and get to the similar level just one of the difficult things they're brady is the variable copy
spk_8: as as as loans
spk_2: he has long production comes down lot of our long production for next year's embedded already at do that unfunny commitment to use but he knows that comes down bearable cop comes down a we're still going to hire some people have some areas where we need some folks but i don't think you're going to see it was hiring levels that we added twenty twenty two
spk_3: i or that democrats then finally for me just on the march and we had a nice step up here again and the margin what we've seen a lot of act or with it without some banks talk about that how the margin for the the growth and hard and could really start to moderate here as deposit they'll start the pick up about how you guys think about where other you're still in a group well in the company so and i grow should still be a very strong but are on the percentage now had you think it's close to a peak your words are still room for expansion
spk_2: well still room for expansion you know what a said in a second quarter earnings call that we believed when we model for every twenty five basis points radisson fed funds rate we could pick up five basis points in the nail so this quarter we got six twenty five basis for moves are nim grew thirty five so we were actually closer to six beeps for move ah i don't think we can stay effects maybe we come back up fortified for every move ah a look and i thank you for is not really question it's really a few one it's when the fed flows it when the names really gonna come under pressure i think that's gonna be que one there still may be a twenty five bit move after they do one twenty five to one fifty and moves over the rest of the year so that should drive nim expansion but when the feds start slow and a deposit betas catch up i think is when you get you gonna feel the company that the pressure on the niamh and people's near doctor contract employees including ours
spk_9: having said all that
spk_2: i know everybody in the much probably gonna have to question by mobile and answer it may be a think when you think about deposit date for very tax or any other high growth bank with it at higher loan to deposit russia if you specially if they're heavily floating right
spk_3: deposited betas just don't have the same impact if i've got a sixty percent deposit beta mud and i've got all this stuff in all this extra funding in the investment portfolio with fixed rate than than the deposit beta means an awful lot but when you're set during your varitek and your seventy five percent portfolios floating
spk_2: eighty five percent of your production is floating then it's pretty well and do not set know many floors and it's pretty well st up if you will so you can running it still matters but i don't think it needs to be the most important metric and world everybody when your balance sheet structured like ourselves and is other banks socket name that are just like us and i think they celebrate them expansion thirty bit that type thing because her heavily floating so anyway i just want to get to offer that up and and and say it it matters we're we're we're very focused on beta but when you have the asset side structured the way we do and the earning asset mix the way we do the impact of the deposit beta is just not this material bear attacks as it is also about two years
spk_3: sorry for my mark have a better than a turtle fat grey oh thanks the car guys
spk_10: gay like great thank you when moment for next question
spk_0: and our next question comes from gary tenor as the a deadbeat him please go ahead
spk_11: that's my gosh
spk_12: i get carriage are going off your your own a moment ago about had a name and twenty twenty three
spk_3: yeah and kind of what that looks like terms of pressure on offense that raise your rates a and the contrary that for a long road relative to deposit growth next year the talk about any kind of deposit initiatives that year and a focus on right now jet to the on try to keep up with that pace of longer if the are we saw it this quarter obviously the of depositor at lag but he over the refine extortion is much of an issue just wondering how you think about deposits over the longer term than the next couple a quarter
spk_2: yeah gary are out of a answer that one in a weight way as the company has spent an inordinate amount of time of the last ninety days just talking about deposits talking about funding our our side stretch session was dominated by this topic and canada running around my table in ah there's always a discussion about funding at some at some level and so we've we've that we started an initiative here and listen there's there's no magic bullet there's no single solution to our deposit growth it is a it's kind of a at just the focus on that been an important a more important part of our business going forward and so we put together a game actually i we've hired a consultant there's a couple of people were going to hire and it's gonna be focused strictly on improving our funding max and in which in turn will increase our deposit flows and so the goal on our side is we want to grow deposits the same level that we grow love a we've proven for twelve years that like to this company that were pretty good long growers and now we're going to prove out that were really good deposit growers now it's in a market it's really hard no not only are we major metro but everybody's you know as in the same questions but i think you'll see that are initiative and our focus on this part of the business is gonna be as strong as any and we've got the right people involved so the i'm not trying to dodge your question because there's no single answer it's about seven or eight different levers one place where we've been really sucks i spoke at growing deposits is in our community bank or at you know this this bank is built on the community bank foundation most to the banks that we acquired were community banks and our community bankers are heavy relationship people and so our community bank is about twenty five percent alongside but it provides almost double that and funding and so that's an area will we're going to really pay attention you know what i said we're going to make some hires i'll bet you are gonna make them and the really bank space or we get open a branch or too because there's some local you can probably count on we're good at that and so we think that's one of the levers one of many lovers the very mention the insurance space we have some folks on board now that are very good at that that's a very good deposit business we still have a small thin get group that's not gonna solve our problems with that's gonna be another lever and so you go to treasury products you got incentive and you just gotta change in culture and just change in thinking the and and i think you're going to see us a beep fairly successful on a deposited
spk_3: i appreciate that image not a of on the topic when you happy and really transaction cute up the thought process was getting along the buzzer a should at eighty five percent or thereabouts sounds like what you're saying that that averaged over the intermediate term you're you're comfortable with keaton it up around hundred percent range maybe longer term deposit initiatives that you could outpace to lower that number bad for the tenant in for the for that near future hundred percent of minuses was gonna work virtual that
spk_2: yeah so the answer is we still a she her at want to get to that eighty five percent loan bazaaries oh that's our goal and we have a a longer term plan that just twenty three to get there but that that but you are you're right on a mean we're going to be operating in the high nineties
spk_13: for a while as we
spk_2: become more and more efficient on growing that by the taliban or bank but yeah fall was model and it i'd be i'd be in the high nineties on the loan deposit fat
spk_14: our guys like it
spk_15: next year
spk_0: you one moment for next question and our next question comes from bragg know thats of paper sandler please proceed
spk_16: a good morning
spk_3: warren a breath
spk_2: each area i wanted to start on the on side can and the it shapes with to the chart in the bottom my and corner the your your base case the scores up to four hundred almost sixty eight million at got from four hundred five million last quarter alaska or i think the up one hundred was four twenty five an hour it before eighty three can you kind of walk me through the change i would assume the based this quarter's basically the up one hundred is all that related alone growth i just can't recall what you're assuming as terminal fed funds last quarter i would assume at about one hundred basis points higher now but this was a kind of walk through that candidate that the moving pieces of there's you gonna go from in a what was the up one hundred last quarter to with the base case is now in some of the on assumptions you know they're annoying
spk_3: i think there's too big changes in assumptions that well not change the simpsons i think the balance sheet is just materially bigger that point woman point two as we modeled is the only do our shocks we model of the forward curve consensus forward curb so a much higher it you know it's probably a hundred be a title of the that the absorbed
spk_2: ports in front of me from to que but i did look at the key three reports last night and it's got fed funds speaking at four and a half which seems kind of load maybe that's where the curb was at the end of the quarter so upset bread that that's the big thing a bigger balance sheet a better earning asset next and higher terminal rights got it and i think i think he threw out you know it was was with the sixty percent deposit beta that you throughout or just kind of a number i think you were talking forty to forty five am was was sixty percent discount the hey if it is there we go out so much your assets that reprice above that level it doesn't really matter or do you think you'll actually get job sixty this time around no sir know i was talking about others were wounded deposit ratios of sixty percent and when you get that's where you are and you have that much and your blown portfolios balance fifty fifty fix vs floating in you've got a bigger investment portfolio greater allocation a burning assets there then the deposit the importance of that
spk_3: deposit beta is greater in that structured balance sheet than ours with half loading low low low investment portfolio allocation at the it's the deposit data just doesn't have the same in fact last quarter of been forty to forty your mid forty if the mid forties forty and the and deposit beta that's still what we think but the me you this is a hard one because the a week to week the impact of deposit pricing competition isn't going down is going up so i mean i'm among say that still our estimate but it it it's a it's truly an estimate because it just a competitive nature you know i've always said in my forty plus your career the up the idea is the most difficult pricing market have ever been in his hand to hand combat great pandemic it was hand to hand combat and it's getting back to that man
spk_17: so you know
spk_3: but now we're not we're not moving up our deposit beta assumptions for the cycle ah it was just you know or maybe under spoke if i did mouth but loaded about the brushes up our just
spk_2: nope not a name is hard you i apologize on a didn't discover last housekeeping you throughout a a monthly nam i take it was three eighty seven was that for the last month at a quarter at at ipa you may have that june but at if you may have met september but just would have a good you know my that top three eighty and except that emperor's now okay sorry perfect the know probably have misheard are at that thank you guys you know nothing else here you're right on that and mad malcolm's tell me you're either and and i like the just
spk_12: just had a record i have to say you only mr niamh for the quarter and be upset was pretty strong too
spk_0: they guess present read say that thank you when moment for next question
spk_18: and our next question comes from michael rows of raymond james please proceed
spk_2: eg my guys are you
spk_3: the mud
spk_2: i got i'm yeah so i just want to go back a great question and on the fees understanding some of that the presentation take area on thrive and you know the the swapping com which will likely come off on but the are year over year basis you guys actually think that you can grow the encounters with some other the person and that you laid out year let's say except i think so either yeah i'm a we do because we've had such a difficult year getting lung close in the us the a spell as i think that and we've made up would make meaningful significant investments enough be out how about you i think those are the to think those are the two drivers that are going to increase or the and gums next year no man's written of in the as be a space is huge our new guys been here for three or four months without right less less than that okay and in the us the a space it's been a kind of it perfect storm on a whole bunch of different fronts those guys are hustling their tails off other pipelines are really strong they're super competent people i'm so my mates ask me for use your guide you bought that business absolutely was just been in a in a difficult spot i'd i personally michael i see both of those areas outperforming twenty two by a pretty wide margin i like swaps there is already mentioned it it's and enough of it in and drive is gonna just can't move along they they'd made some acquisitions have some people along the way in this last quarter so and so there i think they're going to be opportunistic the different three and thrive in some of the independent that there's them enough
spk_3: independent think i make it drive get a pretty good partner and varitek than so we're going to be able to actually be opportunistic in that space and certainly spread your important but volume is do so they answer your question are fees are going to be i believe our fees will be greater and twenty three than twenty two yet that yeah i mean it i mean if you take you three an annual argued about fifty two million dollars thing of what your view is of what key for these will be but but ah up you know i'm not i don't lose any sleep over having a fee number and twenty twenty three it's gonna be part of fifty million i just up and stopped
spk_19: okay i'll fall and then maybe just one follow question
spk_3: for me just given with at the stock is and yes they pick mcapple you guys have any thoughts on grill
spk_2: by back at this point and
spk_3: you're not be in you have somewhat aggressive just given wherever the fuck is high and along at the tesla right a little little bit but it seems like the capital to continue to build are just wanted to get any happy thoughts on a a copper attacker thanks
spk_2: well in the absence of any other you know issues sure this at just valuation level we've not you've seen as over the past three years be active on the by that but not right now faced the going into this economy with unknown credit stress of how are we going to have a recession if we do have deep how long
spk_3: i just don't think that that makes a lot of fans that the correct time and with us for the first time i believe putting out there can percent to eighty one gulp at that as thought given the economy everything else donald see is doing a lot with the especially early in the year to there's a there's a clear economic picture and capital ray
spk_20: he shows have built if you know if we get through our if we get to a target than than not subtle think about some of it depends on the unless his lung growth due to the economy and parameters slow so i'm it's a great question i just don't see it especially in the nt say the first half a twenty three at they get becomes more relevant
spk_0: question in the back half depending on the economy and or capital ratios are don't get it back traffic my questions
spk_21: like idol thank you one moment for next question
spk_3: and our next question comes from matt only of stevens please proceed i think more and want to go back to the money to fund the funding strategy for the fourth quarter and into next year i appreciate a commentary on to deposit growth initiative and don't make sense i guess i'm curious how much you plan on leaning into borrowing and other wholesale particular your time and then also on the scary to portfolio how much is is cash scientists point and to a degree of that cataclysms carries but to help been longer of next year thanks now the mets good question at me i think you will see us use wholesale broker those type things up hl the ah you know maybe for a torn is you think about the rested to bore even going into twenty three a goal is not the let that type of fun
spk_22: in brokered a whole cell get above twenty percent of of of incremental funding
spk_21: as it relates to get on the investment portfolio don't expect us to be adding to that ah and it's gonna spin off a be about seventy five million some will that have to a seventy five hundred million next year ah in cash flows coming off the portfolio and so that will certainly
spk_3: help saw the the funding of the lung growth which was gonna be down and will improve the earning as that mix which should help the mail got it okay that makes sense
spk_2: and then on the loan you we saw the nice improvement in the third quarter any noise in that number and in three q or should we assume that a loan betas in the fourth quarter would be similar to what we saw in the in the third quarter
spk_21: ah no noise in the number the that that i'm aware of nothing of any size you know and so at ya said the the ending lung yields for the court local lung contractual wields for up to the were like five twenty two something like that i think of that and alpha said it after
spk_2: the into the quarter lung deals from from that thirty through
spk_3: mid last week or up another thirty three built so i think you're gonna get some lift and the loan your thoughts
spk_21: and and what about some of the yeah newer new or production onto the or newer new loans would you seen as far as you there
spk_23: two three loan production ending your for the quarter was fast sixty nine
spk_2: okay they make up for some the that production been floating and then just week for me when i think about longer of next year you gave her some parameters far as the size along with me a mouse what about the knicks of loan growth were kind of type of growth can be seen next year it happened that differ from leprosy an issue ah i think you're going to see that a higher long growth on the sea and i sighed and that's been of our focus listen we're we're really good real estate lenders will always be in that business certainly the construction side of the real estate lenny business but for all intensive purposes not because we decided but the market decided that there's just no appetite for that right now and so that tells an area we have all those on funny commitments or would bleed those off over twenty twenty three but really are growth is gonna be india commercial see a nice by the get in the community bankside we made some reason ayers on the private banks are and that you're going to be some growth there so i think you'll see a little bit different makes again this is part of our deposit initiative we're gonna we're gonna go i cheat backing of sir richard's always tell me we got it at do it be a better job and selecting our clients and we're selecting clients in the sea and i a community bay private bank space because they provide some funding for us and the so that's it that's another
spk_21: you know answer to the deposit question but yeah i think it's a little bit different makes
spk_3: because we have relied fair amount on real estate can only rely on at matt we've got really really good at it elena market is is it going crazy delivering a lot of at exactly and there are folks are just really really good so and that's okay
spk_2: and a far as the construction funded it balances should be thinking about maybe one more quarter of growth there as as as the unfunny get funded and in the pay down partner balance next year no no it did that did the on you know we got over two billion dollars not funded the that that that thing's gonna bleed down over the next five quarters if i had to put a stake in the ground up think that's it's probably gonna be a skill be about a billion dollars at the end of twenty three so it would with with and mean that's just with what on the portfolio now so ah ah but it's got it
spk_22: emmy for you can see growth lot of this really hinges on fail

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