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Bancorp Inc. (The) (TBBK)

Participants
Andres Viroslav Investor Relations
Damian Kozlowski Chief Executive Officer
Paul Frenkiel Chief Financial Officer
William Wallace Raymond James
Frank Schiraldi Sandler O'Neill
Matthew Breese Piper Jaffray
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2018 The Bancorp, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this call is being recorded. to host like conference todays now Mr. would introduce for your for I Viroslav. Andres begin. Sir, you may

Andres Viroslav

Thank morning, XXXX Julie. for call. you, Good The us for Bancorp's today joining third quarter financial conference and results thank you

Eastern of the approximately at Officer; Paul today. morning's is www.thebancorp.com. be Executive Time call There On Kozlowski, being XX:XX webcast Officer. replay Chief and with will are Frenkiel, confirmation me for Damian the call dial-in on at Chief the Financial with is XXX-XXX-XXXX our p.m. code call This beginning today our XXXXXXX. The a website replay a

the Before are that Damian, such when the to which to within and statements intended risks Litigation I materially from expects or the Securities I everyone subject this in to of those anticipates, conference results identify differ call, forward-looking Reform remind uncertainties, are call statements XXXX. turn to used statements. Private the anticipated meaning by words of expressions would similar Such to could actual cause over Act suggested believes, like and

and only discussion date not please no reliance events. these these undue of to forward-looking risks which are after filings uncertainties, undertakes SEC. the further For finance the place occurrence see hereof The to statements, Bancorp cautioned date to statements, the forward-looking on as obligation with of the of of speak events to results unanticipated circumstances Bancorp's or Listeners The to hereof. which publicly made any revisions release reflect may be or reflect

Officer, Damian the call over Now The I'd Chief to turn Damian? like Executive Bancorp's Kozlowski. to

Damian Kozlowski

I My the thank CEO you Kozlowski. in to third The and Bank. President earnings of positions I've XXXX Good today. quarter our The Andres. you, you Damian for and and June morning I'm since joining these call. Bancorp welcome been of Bancorp is Thank name us

boosting the Exclusive to a XXX on continuing shareholders. Safe our improving and sound XX important XX very net of our $X.XX amounted while in share a gain enterprise million revenue process Harbor manner million. sale the net safe million of Bancorp expenses on running IRA earned revenues portfolio, million. of This our of quarter of the XX value was and in performance to of

of cost our growth This higher announced divestiture XX% respectively. sale payment its growth Harbor our from us increased generated costs European allowed million interest book of third our Like XX% fees. our by innovation business Harbor X% funding on Core SBLOC the to The in Safe due board Safe ownership equity institution. the our non and the Safe in of position the acquirer. revenue the deposits Harbor of subscale, IRA and Bancorp the and unlikely third Safe deliver new price temporarily we or the quarter related for the of Safe of added IRA focusing exit SBA These would share sold fees the sale ten previously and of derisking quarter of In fees. our quarter sale started primary from The XX our million of assets controlled XX XXXX our As the income HSA times or sale The was our revenue, enhanced that was approved longer without our million led XXXX sources. and and revenue noncore held when increases increased and of and over Harbor year-over-year concludes partly more of X carried capital most business lending loss also our to portfolio by complete diluting model. our process revenue net XXXX for in was than XXXX. to term risks franchises was portfolio Safe of Harbor $X.XX and plan from to capital expenses regulatory portfolio shareholders. and offset increases accreted Harbor portfolio Therefore businesses the loans grew third payments value.

business of XX%. GDV Our XX% grew reflecting year-over-year increase revenue payments in

producing We also continue that help capabilities growth. organic invest revenue will sustainable in new revenue drive

Here are of these critical examples few just a initiatives.

Volumes XXXX continued million X.X a PayPal's significant compared third payment adopt money third to is VIS as of example partners to beyond facilitate the were first an minutes, capability. progress the XXXX quarter debit X,XXX%. growth The as transferred bank commercial has credit capability quarter MasterCard rapid It rails throughout debit and the programs billion than XXX that utilizes with through network be show and allows XXXX, to and in of new strong anticipate in funds in ACH. the to such card rather of We companies of increase Venmo disbursements.

to reallocating company. lending in Wilmington, Another clearly and example in platform thus partners. our to over investments to be opportunities cost on us loan our base Delaware significant is less and underwriting beginning making by along three was have with an on investments productivity our as each partners platform and when fully our focused more such non-purpose volume new expense reduces in This collateral Crimes to is profitable of out Toliyo to Financial our other the being infrastructure days origination from our [ph] automated more our enhancements, portal Center revenue XXXX than the impact management. ability on Excellence rolled productive saves with automating that grow been a more of appliance thus These twenty securities and in self-funded efficient implemented

who margin our grow I'll RO now As and to future. our improvement CFO the pretax more into turn detail over base first show call Frenkiel, will Paul the the our we to ROA E continue should boosting about revenue consistently quarter.

Paul Frenkiel

third pretax XXXX. compared sale, gain resulted a million That expected impact Damian. $XX X% those quarters the interest lending reflected the to growth point by to XX% in million increase growth its XXXX. in expense. of million In increased in to Thank balances increased notwithstanding quarter million XXXX net approximately in last increase a securitization end on continuing fourth million gain compared reflected period the a on or $X.X X.X closed a results quarter quarter reduction interest end lines. Because $X.X in sale between and securitizations or of the third remained million to SBLOC million you, balances. decrease XX% million, IRA while six of double net penalty be of increase XX.X in of $X.X the the exclusive included Bancorp XXXX loans income quarter at The million $X.X next Interest That $X.X revenue at XX.X decrease Bancorp's and of decrease third respective interest income the with income million civil and of Quarterly sale major noninterest of money in income in on SBLOC quarter of XX% reflected in X.X million. $X.X digit the quarter, third interest on the loans The first growth XXXX. held in for related SBA sale million and will to is quarter. constant $X.X income

a point loan be quarters. in September, which was basis SBLOC, impact of rate loan increases realized in to the income XXXX growth, Federal increases in other increase also addition the positive should Reserve in the XX SBA, reflected future and XXXX. impact In the and interest There of

X.X% their accordingly fees million, fees, third of Damian including third quarter market discussed increased loan which quarter The negatively compared Non-interest X.XX% have of and growth portfolio SBA for margins XXXX. by year-over-year. should had future interest related transfer XXXX. in grew leasing. was The total XXXX. the as positive only our points to in annualized lower funds before ACH quarter excluding The in grew to Safe in basis of IRAs end second Prepaid continuing on increased income. the million overall the million for into million basis loans X.X% deposits XXXX. the largest card lower to quarter X.XX% held reduction and the to non-interest was X.X adjust Our a or $X.X on expense. XX%. third net for funding expenses interest largest the XX a grew of Period-end those quarter, largest salaries, year-over-year. and on while continue yield source On source the in which to loans XX.X all quarter which of $X.X earlier, excess XX% of XXXX low the and $X.X increased $XX.X points expenses primary after leasing $XXX,XXX on $X.X margin increased penalty funds XX.X for have increases in which of to SBLOC, basis XX% respectively of XXXX, and immediately at The in X.XX% XXXX. comprising quarter quarter impacted card Overall, was rates. to portion driver expense basis, XXXX, XX%, quarterly loan net quarter compared money operations in funding balances linked the X%. acquirer X.X% payments quarter interest loans Approximate loan million and third excluding also the XXXX, The earning totals the quarter third and million with Non-interest the compared are Those on X% of reflected third civil lower income for rate also increase our are X% interest XXXX. X.X% and processing impacted quarter in XX% accounts totals revenue to Legal are securitization increased million while transfer. Card paid Harbor The higher payment prepaid net XXXX to lines impact payment cost XX of September offs. yield data SBA was yields while processing third for million the third cost revenue, loans loans SBLOCs, the XXXX in were of reduction rapid to percentage the securitization related Compared the incentive points. third on XX points, an timing prior margin million. $X.X was noted; points X.X% SBA business to were Prepaid reflected basis in grew charge assets and peaking lower securitization. margin to income the cards than by XX basis the interest a the XX sale a grew increased a historically

to Additional reduction continue categories pursued. than XXXX. in opportunities was Year-to-date, expense non-interest expense other be lower X%

gain a quarter back comments, my concludes IRA and share of both ratios As bank and has the call and value earnings book will $X.XX. exceed X% I consolidated sale, That Damian result leverage per on and the to third the for increased to questions. return

Damian Kozlowski

open please would line for questions. you if Operator, the Okay.

Operator

gentlemen. Thank and you, comes ladies Our Wallace from [Operator with Raymond James. William question first Instructions]

is line Your open. now

William Wallace

Good you. Thank morning, guys.

Damian Kozlowski

Good morning.

William Wallace

that Maybe maybe cost starting some was? some net about the on Safe prepared about related were funds little holding were the Can in interest and of a you that for more funds purchaser there commentary the IRA. talk Harbor to margin, you of on the bit impact remarks pressure what

Damian Kozlowski

was $X It million. about

so to we concluded marketplace. had the want were actually that what We market they to happened majority holding didn't the they when in negotiated for and was sale in bank quarter them priced the held We being new higher those early because until we rate deposits. selected. And were those pretty deposits deposits transferred a the we keep more a the of

funding. of sources alternative other have We

interest So it about from that. is our in million $X expense

William Wallace

And they're they're out - bank? all these deposits the now all of now

Damian Kozlowski

transferred, on think, day fourth of the the quarter. second I They were

William Wallace

I if to XXX was And the basis look, cost that of the and Okay. that can up looking points I'm quarter-over-quarter? see if savings so money close I market accounts at

Damian Kozlowski

Correct.

William Wallace

Okay, great.

you. That's helpful. Thank Okay.

what balances, shows you how look it that growth, to looks biggest On keep line were down - you're I the - can just SBLOC the quarter-over-quarter to period-end seeing that lay average maybe you with loan lay business, talk but rolling them, truly rollout and little about when balances, the to biggest speaking underwriting saw bit say now at the package? decline. of think the Maybe seeing the in you're they what out to it, I a talk like that software you you're what you're about and maybe know the I - in

Damian Kozlowski

platform. end much full to repaying. think, first of mid-year the the the saw - will be more me, that will We in the rollout pretty of portfolio, will the some for the rollout Well, lag just I excuse quarter, be people

when more variable - of just same rate, see we happens in you had suggest that coupon that the have see that in pay the the the great the on risen we and but you a increases. it's our have We type portfolio, same we've rate a its experienced, of interest This would pipeline sometimes interest downs. growth as can business rise because

after the it so And continue funding, you get realize of people probably to get some history. while so be your that bit cheapest with you're you little line originations the but in pay-offs, a a but source is more - past pay-offs,

should it and quickly fairly again. So rebuild growth show

William Wallace

held So, and target kind is yeah, of kind what for of loan sale, a holistically the excluding fair growth loans you maybe think for annualized? do

Damian Kozlowski

we want Well, do XX%, right. to

we to XX% do So want both sides. on

will XX%, growth, as higher? which that some But implemented we get - may leasing in Yeah, for growing inorganic we the SBLOC done fund if lay we look grow get So it we we past. buy platform. areas obviously. get business we higher can XX%, don't SBA, been XX% future are have higher. hopefully we could than we've a there in we opportunities We to to where portfolios, will greater think are the The

So the I I bank's fee it revenue. want XX% be less to income it if to we to want grow of or than much aggressively, sheet want got balanced. our be I too our balance don't to XX%, don't

of that's attractiveness portfolio. part think the our of I

So to those I grow two want things tandem. in

fairly target a significant of we our revenue thinking XX%, So still see. have obviously, flat And, growing increases to of we'd XX% margin. we're in expecting we're expenses, like for

William Wallace

of to balance on discontinued like that the Orlando you and taking status looks portfolio update property And can property? sheet Good. Okay. us balance still the on the just is the sheet, that

Damian Kozlowski

ground them on operating What fairly a under there's still property. happened that a it's complicated, is profit. lease but the We're

drag XX have that fully of on value the get off the we the ultimately We involved. of still it's announce we [ph]. there's not off So negotiating appraisal mall. income reappraised after process continue months good it multiple the cliff and company We positive that like will mall a the has the on in we're balance sheet final but the lot is balance to twists it a turns, sheet. of have our our did and It and produce to buyers economics did supports - from

William Wallace

on to given Expenses than generating the in I sales the better anticipating with was loans than expenses. was Okay, anticipating. loan the more came moving I especially revenue sales,

- couple expense speaking about what is to that coming you run that base maybe the is in So, better assume than have kind quarters? of been rate past of than the

Damian Kozlowski

still It and to saying rate that XX down, that goes up on where a XX were we so run month expenses.

on been incentive be and So of we've XXX to comp. XXX the that if didn't of it's variable whether Last was more and productive or beginning other we Part the year paying at year. profitable the revenue. we know would not much depending this reason year, bonuses

So we have didn't great visibility.

for year comp. greater incentive eating costs quarter have bonus year way the because we fact will had third we those been than did through So on much those visibility that greater a pay all accrual the we this payments year, we expense because of we've the the in now last partly

part is obviously the But payment in reason. the of numbers from other the So quarters. that that's

William Wallace

Okay.

this transactions on grow. opportunity, that one the how That's my in line? last that and quarter-over-quarter. opportunity picture, you Okay, up we early XX% bigger flow see Thank you the business, highlighted mean, see funds ACH you revenue the how on - kind just But helpful. fee think do fee line about that product the that I you. rapid it's XX% alright. continues I over it's know Venmo ACH and that question might Maybe number line know is from year-over-year, Could up we of that I to through the

Damian Kozlowski

it that parts, part two the of is see, Well, also. there's - there's business, like have will it the direct end one that our platform - want others on are so people Venmo there continue capability we'll and

work couple the and also for wait growth this the can't disclose, is parties. are parties but in there working other as third thing just people explosive it obviously. We don't they to and minutes other can with three four money partners is a [indiscernible] with who is their third have from to are want same that that And days the adoption I

platforms So acceptance. these of gaining are more type

business. we growth their an virtually we're we the if had but indirect business slow so looking to direct last and So work transactions at basis, base had now - expect XXX just capability that be another you but we when where merchants paid from be, will you in the million the month. the seeing to that don't down order there's will absolute look And growth the consider of more continue get we that can to they at year we obviously with them growth very know the business we're only trajectory growth will X you-over-year, every and no vendors with money what on explode is that and look staff should can give But And up volume billion. already quickly. sizable we're expect and you

so that's you another at businesses not consumers, revenue and don't that. any from model if it's and through the have another do pricing, a can going work, The difference sizable but the but a and of is expect that's through direct revenue we initiative pricing And the from have, whole we type significant. transaction - be network through we

a that's don't in But we've get But XX, be XX, second the XX We on the times higher could direct any is opportunity second have the don't clearly it from transactional have than that's this the now product fees on guidance as market, So revenue now relationship. spread established any the that. higher indirect business. that we we opportunity that. opportunity a

William Wallace

- the the you in Maybe second have quarter? volume do any

Damian Kozlowski

announced percentage? we we on second quarter, the Do you the have think as - we don't have it can in haven't volume it. The I

Paul Frenkiel

quarter. third the have only We

Damian Kozlowski

we the have No, right volume, now. third only quarter

Paul Frenkiel

You at over and income can year do increase - just category that a and as prior look the the proportion

William Wallace

Okay.

Damian Kozlowski

change. doesn't pricing the Because

William Wallace

Okay, ask let a much. question. great. Thank someone else I'll you so

Operator

you. Thank

Our comes O'Neill. next with question from Sandler Frank Schiraldi

now Your open. line is

Frank Schiraldi

morning. Good

Damian Kozlowski

Hey, Frank.

Frank Schiraldi

thing a about like understand in the just XX% bucket larger deposit we roll Just just I of couple market sort reasonable costs prepaid funds still XX% it that the the it's the on fed ups, betas of money kind of to like estimate? looks the and timing deposit costs, of into I'm is And Paul, thinking follow guess just expect were and just of the me quarter. most bucket, wondering, sort should I to

Paul Frenkiel

close think gone it's little XX%, I been it's a to up Historically bit now.

closer Fed think future XX% I range realistic. So future to - the of is increases more

Frank Schiraldi

Okay, payment. is as rate the - that that in percentage something funds has of contracts increases Fed and the higher, moved there's the

Paul Frenkiel

So, the we they a the rollover some fair triggers and depends have and new of we involved is it terms yes, of structure have and and old unique them some on costs contract. are costs how of a And there in the of really in with contracts contracts, so number each contracts. different cost - involved contracts fixed there's

So rather fact, in very XX% target but of it's contract, to impossible. use it's if it's than moving every you difficult a model somewhat -

you if XX% use now, think for I So than that's closer XX%.

Damian Kozlowski

function other and banks. is And obviously, - happens more some has rates still previously, re-prices immediately, there's these of there's it's we rate not - a built pressure. there's higher we expense interest renegotiate, once been these things interest in There's lag don't as and have in and remember, to at the step - higher like than but it interest obviously contracts,

in increases costs, future because our reprice CDs et get cetera. cetera, funding don't the et we So

for expense step our rate and next it interest then funding the interest waits increase. function increase grows it's the a rate happens, So once

Frank Schiraldi

Okay.

think because hikes that makes a think step or the XX% from hike do fund should do next rate sense XX% for here? Fed we the How you a up we've of in that months expected terms do over think every so consider XX% and you you got So would - of modeling? most or six couple probably that

Paul Frenkiel

creep the at XX%, the I little bit higher think and too continue, far rate a it hikes might creep top. as away But you're than XX% may that. it - not then from

Frank Schiraldi

me, or XX% about the sheet you that it, great. SBLOC And balance - growth just Damian, the believe you well? perhaps sheet, can off then accelerate thinking through just starts get I SBLOC about whole to of that starting on think, thinking considering alright, the growth. as Remind right? the loan to keep sides about block balance side growth talking both maybe on it if SBA and So are I securitize - on the pick as Okay, can you up,

Damian Kozlowski

guarantee have to the they also it sheet. it's have interest, portion like issues, it to of No. we don't generally there keep great We and the rates reasons; We issues. like are so to on thing we - liquidity funding any a sell guarantee keep because people incredible that balance for those

can to X%, that. a premiums, portions monetize if create you even fees, X%, and we but guaranteed those fluctuates, the So want do to X%, don't of lot for X%, market you need XX% if

to and we a on no sheet So like think balance keep great it's the issues. our it asset. keep we funding we asset We have

Frank Schiraldi

Right.

XX% Okay. growth get to you're if feeling expectation, - that you know - I to so if you funding long books on think are high just mean, pretty at gets I'm guess issues, mean, point you some trying enough. do loan know I growth right, just XX% I I'm

- So

Damian Kozlowski

I well, think I don't we've - think do. we No, don't

I deposit growing think structure, of would the have we - side, prepaid and think XX% don't to very that so So time. been ratio, would a we long issues loan have and - our for we - into already our balance run would we period I and sheet, - don't be on our deposits we

Frank Schiraldi

fair. that's Yeah,

Damian Kozlowski

very side the reasons, so bonds actually of balance our so sheet. rate - but and we've we've on If be that I ever, are years I of a that got now really I we strong frank - loans billion think got liquid we've X.X that that I in - funding almost loans from bigger have the XX the less side we don't asset maybe lot for billion hitting think be to Fed will liquidity think a is - $XX too, pledged interchange will limit, against variable issue remember the

Frank Schiraldi

okay. conversations that still fair, future - you wondering past just - wondering and That's here thinking about sponsorship. talked picture wondering terms about of credit that in I'm all. if you've comments being if something just changed more of your about the at in And - sort how the you bigger for obviously you made just you think

Just a have given it had some to some bit talk areas, a so commentary just in getting see maybe pulled of I if any bit, on little back frothy wanted some update you there's been that.

Damian Kozlowski

No, we still want on. doing well to participate. really remediation conclude which We're our waiting to regulatory finally believe we're I

do. we're think the issues, volume. two I to only SEDAR progress times making the need the up but we That's sells three resolved or for

billion of immense almost that building an of robust us bank, volume even billion the transactional bank, have We for $X.X any $X a a in sort business. we're billion grow bank bank, of so we're something large volume that's and very $XXX amount for order to

for market other So the of couple we of have our it the fully that in off. discontinued job tremendous part for but focusing sure any consumer disposed One, compliance portfolios. PSA in things. on to we Street waiting also compliance, to make a and participate that to Obviously, we've a done secure envelope risk were Walnut credit on be envelope

and we're to doing we're safe not after, the definitely is be - to exploding a going we but think to for consumer, - I whether that still earlier want a space, year corporate, there going but it's is bank into or doing we're robust in with end going on subprime, that on market higher going year to a So focus very focus real sound to next We're and participate. selective. platform we're participate need not even

Frank Schiraldi

you. Thank Okay, great.

Damian Kozlowski

welcome. You're

Operator

with Thank next question you from Breese and Jaffray. Matthew comes Piper

now Your open. is line

Matthew Breese

Good morning.

Damian Kozlowski

Breese? you are how Hey,

Matthew Breese

fine, the to area tied and still I is much I'm one for are I to really you. of I prepaid for to understand, dollar just wanted outlook the how wanted thank And business guess just gross one volumes fees today then providers? the on also the tax your focus going. is how doing the of which business.

Damian Kozlowski

before, happy in industry and Well, growing higher growth will with does said growth. single of GDV envelope activities exceed some digit. fee that. couple It like double the are product is be areas percent look this a digit the growing, I've high that still we'd we have volume,

areas think grow we other headwinds. are prepaid feel participating can slower finalized programs and headwinds, lost that the we're might prepaid digit The growth some - around in little we had of So lower envelope in, is area that And you these than reasons. so future, fees. that I some foreseeable major other some were to comfortable we've see not a single pipeline for area know bit in acquisitions some XX% got and some that in, we I growth. we looking we've contracts so I of think other previously got the our because participate that had recently in programs the we've we're some

and add transfer tailwinds significant could once see something in have or on what have don't but types enticing to that on and want this rapid that any through estimate adaption we the should again at guidance product don't target, so the pretty product, that the we percentage on have good Depending point. meet Paul, some that second that you channel in it. do - in that direct growth applicability a funds side the is we think we growth, part we XXXX think was have to that instant is - I of the I range. the

Paul Frenkiel

tax we can compare first just important how and for for go we're at that look We is best and done reviewed The terms what the in year what the refund to was is way you that that in of quarter. predictive, the already exited to several think year's really - don't Damian is business. - really indicator Damien last you quarter relationships reflected best as mentioned but really with quarter I we've not over prior

largely you fees program. the to differential go you the reflects first and and that one you'll where tax - quarters prepaid impact, see between prior last so So the quarter that's that that GDV to if the year's those impact of see compare and to reduced the prior

So nearly to used it as as it's be. significant not

Matthew Breese

year. to follow or married Right, I changed, single a getting of your that better business get for want have to going into sense flow be guess tax my I filers, standard is, prepaid from to laws lot are going question impact through filers the higher that up positive and I next to which the would assume a deductions

Paul Frenkiel

But it's deposit. still based on the

reduced. in I the quarter deposit Similarly, less think same in is also more the last deposit balances term. your relatively of do and it. way significant of where, our - impact short The first the tax question In the the result but refunds a the quarter increase at they're of second a were not element the impacted they've deposits balances element fees as quarter. it second directed or are and first of because year the quarter

Matthew Breese

Got it, okay.

we're any read expect my So you - it material change stands, that's as sort think not don't –you should here. tax laws, given of the currently new we

Paul Frenkiel

the shouldn't I don't be and of material decreased, impact see then so have lose tax wage suppose would deductions some how they forth certain a would but refunds earners if specifically that higher I the refunds. impact.

Damian Kozlowski

much I don't We prediction lower of don't side increase. the don't we think [ph] have be But different. for the end an other it'll will have that. a that

Matthew Breese

a okay, Okay, sufficient intellect. that's

Paul Frenkiel

fraud past given They And - protections variables the actually of it at the times that takes potential certain have have affecting that their they've so increasing process. resulted there has had delays the they've in of I timing and how so more it - they're in to because fluctuations forth, are IRS long think. the

Matthew Breese

a the to double want little so lower just you to that expectations bit can a is will themselves And dollar than is be Damian, increase volume continue mentioned are - at us. low that digit that high but to gross clarify, your single fees rate, what I

Damian Kozlowski

have Airbus, being other there's it's do to There's a entrants few this Yes, the compliance kind - market part you are in when of players. [ph] some yes, of able because banks if to just look the only that lot add of data supporters because a concentrating new of of not it. a the with Boeing you and few primary a left it's are space cost

fees of ago securities like Pershing XX just Street. erosion and in see do the growth and slow you with industry higher So experienced years those XX, State cases

new growth new there's will offset slowdown funding so show those product, extreme that I rapid but any areas So, high that by be like areas. think

think you Obviously - would with of side hold net I huge business. balance on has could marry fees impact and your generate growth a be, sheet of expenses minimum XX% your revenue can in in that growth obviously if the that flat I that's the ability to on balance we relatively - XX% that income. - on So love growth

might I general and think So not. lending - substantial of both it, next that's might it on based we'd add player might see product see, like fees on thing to we director the growth from going to also rapid higher based year our but what indirect funds the to

about talking opportunity of like dollars, billion and areas be add the not of manner in billions to we're we're we in that's the and of transactions So would grow and volume a of sound billions kind happy few to - here. a of dollars - talking would safe and because

we're overall So of the growth have just obviously, billion big so, much a and yeah, XXX but so market to to in room grow there's proportion already. we we practically, that ready have

Matthew Breese

understood. I Alright, you great, had. much. Thank that's Right, very all

Damian Kozlowski

you. thank Okay,

Operator

showing not to back Kozlowski Thank this you. to would the at further any remarks. like I further turn I'm now any time. questions Damian over call for

Damian Kozlowski

thank us everyone community positive in We'll joining and and And you thank it. everyone. progress today. I to including appreciate on everyone to in produce I we've quarter think company. working having you We their us shareholders for to a Thank made the like successful investment trust safeguard Bancorp returns. this keep build for our Okay, the just

Operator

program disconnect. participating the great today's a have thank you may Everyone, conference. in and This for and conclude all gentlemen, day. does you Ladies