Bancorp Inc. (The) (TBBK)

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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Good day, ladies and gentlemen, and welcome to The Bancorp's Fourth Quarter and Full Year 2018 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, today's conference is being recorded. I would now like to turn the call over to Mr. Viroslav. Andres begin. may you Sir,

Andres Viroslav

you, Chelsea. us full you joining and XXXX Good for The morning, today call. and results thank Bancorp's financial for conference Thank fourth year quarter

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

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

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

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

Damian Kozlowski

you morning for Thank joining us and Good today. thank you, Andres.

was and innovate or $XX Bancorp. million, environment quarter In very the for the quarter share important noninterest moved many ahead while earned create enhanced to client Bancorp the net fourth This quarter opportunities to expanded revenue fronts products institution a total and We new expense in a $X.XX for services. million. on year The credit and capped $XX

For $X.XX. GAAP per earnings of the reported share year Bancorp

financials run accomplishments Our moment. started derisk rate detail of XXXX like Frenkiel growth. our that activities. substantially in non-core of grown capital XXXX. organization major would into has and our five we XXXX. ratio yearly a events in the exit propel The supports base less will our and company the process quarterly planned highlight XXXX CFO, In to one, will and Paul strong the for to I go operating than end Number and the performance, to in XXXX institution our transform concerning our at forward X% XX% is from over leverage our completed

Our per value asset The reduction reduction. of share at reduced exposure this million been compared book to Two, million quality non-core discontinued year, a $X.XX at continued XXXX. Walnut the improve $X.XX with has now $XXX has to end from and of $XXX Street. the to assets stands XX%

reengineering. to those as build continue an even will in value platform of control initiatives new retain core three, strategy aggressive with to recover revenue and pursue expenses invest continue to portfolios. the we We growth Number and earnings and in

XXXX sales revenue XXXX will XXXX which capabilities while revenue to and core believe Street in Walnut decreased increased lead expenses and beyond. securities gains an Four, and new and in creation one-time increased For potential excludes of the productivity on higher we for losses X%. X% growth

services. Financial growth to of In and but building XXXX expanded important the to to rapidly products This and strengthening Crimes Excellence. enhanced be equally requirements to a agenda ability credit in our focused two manner proprietary these support examples. significantly and AML of the network and and capabilities. robust of and card facilitate to and are a scalable lay five, bank of platform are funds Center safe will rapid strategic capability Our payment core innovate MasterCard on Both with platforms automated sound and our creation BFA just lending platform by provides disbursements XXXX. the rails is the Number we in of squarely an new Visa integrated enhancing meet capability completed utilizes volumes our our

who is team about and Bancorp our our future the create the potential more common first over Paul a the Our of community. will excited to in objective call and value turn for our about for our the now organization to innovate Frenkiel, I'll very quarter. shareholders with clients CFO, detail everyone

Paul Frenkiel

Thank fourth XXXX. interest you, increased QX million to income for the Net Damian. compared quarter to $X.X

financial largest decreased items pretax quarter which The was $X.X related cooperation expenses XXXX by the receivables. to to the restatement. the million prepaid and and the $XXX,XXX related document of division of continued an quarter its one income. and the off incurred into was investigation production relationship wrote SEC statement exit the In after-tax impacted $XXX,XXX item with atypically expenses However, several company's legal of in

as represents of we as $XXX,XXX in which securitization in investment temporary were in operations. the company's primarily the of portfolio QX $X.X Street of BSA, amounted XXXX compared refer charge sale discontinued approximately XXXX. company's on XXXX balance Street loans $XX.X the $XX.X securitization result single incentive from expense expense its loan a from Additionally, a Walnut at million, higher million million resulted in to during compared and was the employment Service that December QX to Salary XX, down year-end. Walnut and accounts to million quarter. prior the a the reflected compensation the from investment charges of a quarter $X.X to IRA At valuation of higher which third the deposit by

held-for-sale levels is below major $X.X by and interest XXXX quarter. $X.X Including QX quarter income XX% XX% to Bancorp's to growth interest on growth the that keep be from results million as on and increased XXXX XXXX first loans or anticipate increase relatively down million with net most reflected million. show increased securitization SBA XX% to and per held-for-sale $X.X lines $X.X and was to increase X% continue in compared million increases of million loans will $XXX,XXX Quarterly securitizations to in respective or $X.X current next SBLOC million for XXXX. loans. on noninterest an $X.X in an that recent the or SBA into The in from million. originated increase $X.X continuing XX% year-over-year loans Interest the quarter income reflected expense revenue XXXX of from flat $XX lending for result securitization. planned a goal led Our loans third million as interest March We SBLOC to for

of the increases in loan of X.X% the in grew leasing. of Reserve to for most points XXXX. SBLOC, These interest to of future be net have quarter had deposits addition XXXX impact other basis the to X.XX% XX fourth-quarter in impact interest XX positive XX for portion recent and XXXX and points operations of fourth XXXX. in card funds on net XXXX. was loan yields XX and only impact and the for interest XX income source are compared funding lines fourth $XXX,XXX compared the Noninterest Compared business for in basis The points. third and a largest card for in market earning SBA fourth are as on Prepaid payment QX basis funds growth, XXXX Approximate increase to adjust the quarter X% In XX on fees QX Overall ACH of margin quarter portfolio in increase the to and basis increases related the in XXXX to XXXX charge-offs. points in quarter noted the while historically quarters. cost rates. fees considering XXXX. the of future X.X% low X.XX% X% increased should continue points write-off yield should in our reflected the consist assets December the X.XX% Federal realized The basis the all of QX quarter increased over continuing increased points prepaid basis after cost payments income which fees

and amount expense source for $XX.X $XX.X in of XXXX fourth spent changes total timing payment and rapid million revenue Damian our and largest card income primary fees below earlier increased of X% funds discussed the For programs. $X.X also which consideration QX XXXX and or assessed fourth million cards slightly the $XXX,XXX to X%. XX% noninterest million. in was was is Fee on quarter income. and differences XXXX, Prepaid over Card quarter fees increased in prepaid quarter include the After aforementioned ACH on accounts, exit year higher fourth full fourth fees payment processing adjustment write-off expense, the are XXXX. XXXX was cards the for which volume XXXX. earned total funding XX% increased noninterest after than driver reflecting dollar Gross quarter prepaid

pursued. be categories Additional expense opportunities in reduction continue to various

over earnings, leverage of value increased result the the IRA sale, a As our on $X.XX. XX% and XXXX gain share per including consolidated book the increased to ratio

solid provides to a of which increased Our advantage base and operations our space. and opportunities lending capital payment in take conduct from our

XXXX to by Net rate benefit each which December to will the lending goal line. income over specific Our recent are is levels through increase loan significantly for growth XXXX hike. also initiatives interest most

from of anticipate Our goal lending XXXX rates for levels achieving The overall flat flat. noninterest payments those impact higher goal of result which FDIC that lines least asset have will will expenses lower losses in capital keep growing historically at is interest our on insurance on noninterest digit achieve for expense The in rates. against and be those the to growth. expense return payments relatively a loan key mid-single as of be to We in revenue revenue goals. low is XXXX higher combination total

Our X.XX% a objective short-term on as return X.X% Bancorp's multi-year goal presented is on asset of with website.

XXXX. million comments was IRA Damian will That questions. turn my was call back to tax effected on XX.X% in ROA X.XX% the and the $XX sale ROE for I concludes gain and Excluding

Damian Kozlowski

would open operator, for questions? Okay the please you line


question you the first Wallace Thank Instructions] [Operator and our James. line with William Certainly. of Raymond from comes

line open. Your is

William Wallace

guys. morning good Thanks,

Damian Kozlowski

Hey, how you? are

William Wallace

relationship little and there expense May exit, Can there write-down Good, was bit about you some thank associated prepaid excess that receivables. that let's this a a the write-downs some talk be in and with nature why resulted exited receivables? the of you expense you. start why was of

Damian Kozlowski

Yes, the program was unsuccessful.

was a space have some you their will we successful business some over the won't. proposition fintech program on especially in and that, know, programs it own So XXX and be depending

it the that of do clients work with periods in Therefore, and the last way to order in the sometimes was profitable bank close five shutdown happened. successful clients happened seldom And years has that so, you of orderly the an but long we do and on this incur try over down you we very not it day company, the for program. expenses clients, that's you relationship that when do time, this do they the over to When the needed. exactly have end it and of because what in getting they them program have at to concluded

orderly We everything to out us but to done that due order take to take down necessary you of This to was an work sure - steps make not order it close accrual a us, to the in also fashion. client have had revenue in properly. was in is

William Wallace

make so for booked that to revenue write-up been just the in understand, prior had receivables, sure So that periods? I was

Damian Kozlowski

recent so Yes, periods. it's fairly actually, yes, in

William Wallace

what expense nature is then associated that's and closing Okay, program? with the a of the

Damian Kozlowski

expenses. Well there of indirect direct in down are terms shut expenses and

Paul Frenkiel

programs look we space to Those across in raising that you last clear, paid was other providers so expenses know expenses each so through got of at have programs. it our a of see money us their lot our triggered, that you've where were but our things us. what this That's that review all we they'd over financial provider, on of going pay hadn't this these months the they too stability, and six

shut into thing This what the you down in or hasn't been the here. you did know startups, these just in is so is to that's sure to And are and with when this seldom not incur if in that I've since client bank. something, think this litigation protected, expense go you've the program who you to them our we to But are happened happens sometimes is case. of Some best the your us. order people got work make depositors –

William Wallace

your what growth of kind GDV for so Okay, revenue mid-single-digit in the growth target does prepaid that line, assume?

Paul Frenkiel

– see last Yes hard so an the quarter, fee predict, we good to at if fourth had income. looked you so incredibly fourth we want the very quarter on we're is this year –

However, as grow much. the GDV growth not did

fees. for quarter usually had in GDV. This sign tremendous That's good we growth a

growth have want least We programs. the at X% so many We from prepaid have different side. to

will activities So when solutions of prepaid the single-digit payments we the at you ACA get of side. prepaid still both all we look the and we payment think which the from want and growth envelope activities side, whole from side, the the high

just still the targeting know, for So fee we'll, and growth XXXX. over XX% XX% you think growth that GDV I we're below

William Wallace

the a ACA Okay, a quarter, about the in in there I that been great. growth then or little grower? line And that's on that the we bit think seasonality that that, should notice side business good did is pretty in it slowed how because

Damian Kozlowski

Yes Will, Venmo primarily over one a course, the program. much of through it's so base that through it's and bigger program

integrate I two, a today we are big company only there enhancing means in platform. PayPal So when about the indirect, our that platform, needs a do which talk to it like partner,

Visa the MasterCard With or Okay? rails the rails.

for Now direct is the what's XXXX model. that happening doing we're

That and to rolled will next we're that it five going industries. even in haven’t rolled year we out. do So the be over out different

it the difference is two. with can It's processing a go big way rails. between a and company, direct When they so force do in direct companies integrating have themselves the we there don't to – that into integrate Let a me to Visa we the the actually we're big deal.

payments, the is literally the could doing indirect there the in world wants rails we product we're that route, everybody route into up - that a only to company opened on world partner. a in integration with issue Venmos do integration to on while actually the the the So the who few a because direct there's any

that's So product, greatly that expand payment when by we're that's we say going rapid that to mean funds product, I that, product. that for what

William Wallace

XXXX you to and growth and at do could levels? in continue that drive mean, that even maybe in I XXXX so XXXX the so, And think

Damian Kozlow

pricing we the can't so – is there is Yes, the the market larger and you guidance is is pricing because give different. – much very

payment – when the not the price You totally we're we're are the is with the all it integrator, person payments changes know, up issuing When really the sensitivity. we're integrator, the that power. quite, have quite, companies pricing because pricing big is where different large to a pricing

the what So Each it case use depends all is each is. on in different use case industry.

you is, that's of XXXX. to few – see We'll of but have quite give sure So our substantially we're know, doing what what not is for the potential what I it the we're the continue that that and drive because can't business years. course it idea in if we even side of it guidance next should


William Wallace

does SEC $X.X related the the legal you expense Shifting called $X.X a little investigation, how last good. quarter maybe gears of that that bit is year? the okay Okay, to in line, compare out million to the and to the million, first half

Paul Frenkiel

Yes, it's vary. not a it consistent number, can

know… don’t I So

William Wallace

quarter last was So nothing? it

Paul Frenkiel

but significant No, look Ks and – actually it's of quarter. legal been each I'm that expense expense talk going in relatively our the about some another to at in our in we we category. have the Qs if you

going put to and that the to So XX-K, I'm out break I'm more going give detail. in that

Damian Kozlow

areas. the of one that's Yes,

of at course be, we expenses, processes, off will We is maintain FDIC so trailing the look have a the the investigators, we don't up believe flat XXXX. area. are bunch We in end we that from can think think this this of expense areas will of of many to we be but believe insurance is expense another where these we

So of it's revenue be that invest business keep and ability we we sources growth. that's you expenses, of can will in on know, why our one the to control depending think the

growth. have and You XX% revenue know between expense to want spread I

it have XX I next continuing big was love this lower that. we negative X I'd revenue do do be think year to and a and able were over X% We'd – we – then or for we'll We more to can think in just like, I few on than I percentage able had less like a be we're and think get had X did than deal. expenses. continue X% So rather that to year, and If growth X. I to – revenue we growth I that that which mean be have XX going to XXXX. if flat think I we we'll expense growth I

William Wallace

Okay, target. averaging said a $XX I quarter the believe, your remarks yes, less million than prepared because Paul is in

Paul Frenkiel


Damian Kozlow

flat. proportion flat Relatively mean relatively we revenues. When say of a as we

ability We can on in and the back some need if do rev – pulling cognizant. have to to XXXX depending very business do think lot be into we – we keep to of it investment have we're and a we the we percent zero filling the still of we'll we see by those So revenue…

William Wallace

of broad Then revenue you it you're growth, categorizing way what XXX, a if fair all you get revenue be the in hoping that could that XXX, the you'd saying? growth, get is

Damian Kozlow

of maintain to revaluation We do want were good we spread. we we to all to timers, the able a three for Street. Walnut the With couple to is of years ourselves thing We the room the the it we as XX%. that the this that's keep industry are Street discontinue have unlikely And get things so the We year. XX, spread believe continue, still the Walnut to non-core of discipline. think last were of want certain in to years. we for away, be We to can an do able we to do this this those next least spread fall banking want to the what one at XX next

Paul Frenkiel

Depending revenue on the growth.

Damian Kozlow

to one to but we growth, revenue year, XX% probably going points get is lead and will going expansion XX% last expenses. it want get but – you're next could thing is significant because we the XX% revenue revenue growth revenue XX% much potential, if up to expense growth you're you it year If there growth too amount not or an the and the have of expenses

almost growth. were want We to that's up company. much in of We're to maintaining part value a discipline lot don’t two in this to process what revenue three that. of depending than be set a want quarter-over-quarter. years higher on We our rather really reengineering worrying about to of of expense just do So every do. We companies the

William Wallace

Okay. else hop then My in. out let and I'll somebody last question,

As of we now little should think as the processing about then [indiscernible] to can… far businesses, how I the just about take submit back until with to and sheet you that? and wait talk you assume to have impact the SBA your to a them bit the they applications, but can SBA and you mechanics continue guys open balance process them, up applications you

Damian Kozlow

waiting can we're that we Yes, deals again. for so funded, exactly right and open to the have door be

pipeline up ready no we We prove. and stacking to of have had have lessening deals so the

we about month we if we revenue. have would We four impact multi-month. our it turned it's have deals that into a on otherwise know execute six as could course it of a impact sources of business. if you of percentage business, continued know this if the believe to, the But you this small will Luckily

it has all the going though players SBA good But you impacted various devastating have we portfolio – those keep to premiums and know days to So sheet it if not small wouldn’t of we on if and you that the keep out start XX impact in it's things market maybe those the on the but very know, business, on impacted hadn’t the as last large is business, bit. yet little momentum XXXX should reasons. it's more it impacting we've them, as company, growth whole balance that market more it our of fine, the things XX lessen, we if in SBA a a – want has for be have we to thing parts of days building be the but is want it

William Wallace

premiums mean right, the know great premium. impact sheet I Right, you so balance you it's the guys all you at about don’t everything,


Damian Kozlowski

[indiscernible] we Well,

William Wallace

Yes, okay.

else Okay ask taken guys. of question. a a I'll time, lot Thanks somebody I've let

Damian Kozlowski

you thank [indiscernible]. Hey,


Sandler Schiraldi question comes the from Thank Frank of you next our line O'Neill. and with

Your line is open.

Frank Schiraldi

morning. Good

Damian Kozlowski

morning Good Frank.

Frank Schiraldi

see, business, say rapid going that? to to think is the on mean more or is direct that up meaningful start sounds is that it it is going the could XXXX you to a Damian in first it business it building you're and like, picking revenue revenues out you Just I XXXX funds from event see of fair you're

Damian Kozlowski

period because to adaption set trying get we're XXXX it We We're to in be meaningful. and the should it been significant hasn’t we totally of we platform could ready there all the be, but what a XXXX to so - with in having But be of the different result up do could any cases is can that something should be multiple it be see and expand set will company and you like up, meaningful want on think be should benefits of just and worked guidance and it go-to-market for the at greater real a over we don't year when this use to is revenue. rate. it contributor go-to-market short have pricing five partners Yes, it we able industries time. out, the very to throughout

Frank Schiraldi

much I there's a point one mean and the rely right just have is and market seems uses. addressable on, of here you lot on have don't big player Venmo different it to and player, you you larger so but I like mean a just to is rely don’t

would mean, does overall the be would a you bigger the guess business, funds, I that sense? generator this indirect revenue So a rapid make that than hazard

Damian Kozlowski

sophisticated have indirect, The players there got the you've integration. to – you yes. do they is player be a big a to only to that remember few Well,

we're people be Because that's to able huge that a – get to we're many somebody they that partner like if us. doing those So ourselves, difference. a access unless process with to are wouldn't Right?

are play that as potential don't on - and – don't it's is we different. - but we execute have very this out it - pricing that it's out the the you So I to We to know, able and just to could larger be don't and Whether think potential think we'll the enormously report is back you let is find during potential enormous. know, we guidance market we'll XXXX. the if any

up beta go-to-market out, for so proved or far the we're but to you be road. already set down has as know So concept we things the that lane proved testing with has - of have that out type to this, be we

Frank Schiraldi

indirect primary do that, Okay, you, into guess for expectation reasonable business, the the up just the now say where it the, seems business, or visibility here there we'll in and you in that is line the can have the I the indirect see partnership Venmo you in partner like that that then you is of is do think a ramping growth you significantly think? item term still with what rate business is near that,

Damian Kozlowski

Yes, product on I have for they're strategy everything. depends don't visibility. totally and It what is that

look can a the at you couple bigger no think fees much practically last and the half over fees a I of base year years off a and it's with started ago. it

don't I So on that. visibility have

waiting continue I another and waiting but product think we'll partner. to could but happen, we're and not It support happen. big not that around we're changes programs for

So the by opportunity. we direct far and think much the is larger

not of future by don't that. portfolio. but it's like don't have come that know we would know, the yet that think product honestly be - a of totally don't lending I So to dwarfed we We what growth opportunity, as will

concept. to into don't will have We the the of we have get yet. industry should it substantial, be payments it on the think We - about guidance really prove but and market out know as that we everything

Frank Schiraldi

to and perfect guys XX% from you X now checking going line don't interest if don't just and rest XX% look but XXXX there. at rate that around if it's at Okay with were in essentially deposit sense is you are have no up know, basis which want see we got confirm hikes? you XX Fed, are we what quarter, of gone points to if December, just if makes I this to be basically if betas on costs about any through the light additional one point demand talked the all I you see of those through think costs, have the deposit to think then through linked the Fed hikes, reasonable we it in obviously betas

Damian Kozlowski

as but Yes, generally in to uptick, our we characterize individual one be remember changes margin mixes a of net so balance, yes, and are have and last rates. in have from large deposits. the have that conclusion There accurate. but keyed are There in of through a I are benefit that number slight balances would we'll slight will the but programs will net December, uptick programs we interest it different

not So as now see changes, of could but we're expecting really changes. you right some big

Paul Frenkiel

but You'll with obviously bank their going pretty not going have get that's every the just a that. no we're year funding not repricing happening banking the definitely CDs, we to us you're that get to just over much the happen this, next since CD cost, on over will funding change to costs and year, with size lag have other our you will going have in next

Frank Schiraldi

Right, I don't saying, partners, and more? your well people bit you contractual, mean be I little to it's have coming mean so you you couldn’t a

Damian Kozlowski

are Fed just don't stuff happen maybe think - you but this a a Fed. times Yes, more? be current will conditions Yes, with from there's whether of market the won't the could bit people a or even they they year, do was, increase more what rate, been of don't couple as is There little and but predicting it a ambiguity will the they'll bit I raise opinion from of great lag to that'll lowering the last a disparity the know. when lot the some

Frank Schiraldi

you comp Right, okay me quarter? there the, If was still up and what of then modeling securitization, linked on reasons the wondering on if the mentioned can that? seems or the comp related linked to sort comps what to give quarter variable say the was I for Paul just just year-over-year, should out just some finally, just that biggest game the I comp up variable just line, driver it greatest being comp for was pull purposes, driver of and cost of the the you on

Paul Frenkiel

the of I'd off some really We so going forth, one. but the categories, changes XX-K. you - did rather in XX-K's, give detail and I'm to I put I in number there wait that do a review to the don't on

Frank Schiraldi

Okay wrong? am rate but comp, quarter is to up that ex that say it significantly a was that that fair I linked comp or fair, is variable

Paul Frenkiel

the at the And which better we is we Yes, that comp do way total model, look off probably you're has your not looking dramatically. increased, terms way in of noninterest expense. it that at it but is

some salaries expense expenses then expense and management can and salaries, between other have is we impact manage there on So an but might up. go categories down, has other expenses the interplay our the salary way go so -

So look that's it what as would noninterest on. total I we expense, focus at

Damian Kozlowski

you make that of like processing, of the as really part dramatic some things is sure managing our total in like several categories there's we, pie. So to can been those that increases see and we're

Frank Schiraldi

right. Thank you. Fair all enough. okay Right,


Thank you comes line and Matthew question Piper the from Jaffray. with of our Breese next

Your open. line is

Matthew Breese

Good on item, focus and behind line to wanted understand not I everybody. beat horse the just components here, a dead the morning ACH to it.

million that revenues quarter, that was the assuming of So based correct? on $X.X gross margin is some it that behind volume and I'm dollar this

Paul Frenkiel

is $X.X ACHs of driver income includes instance funds large function The the ACH for driver rapid million biggest the the processed ACH, second payroll a companies, bill main increase. where volumes is It that's is payment companies. largest companies we've our also transfer the the other of of and for our been and income

establish similar income, character can't really a a apply depends the with contract to that on it's and of you try to income. dollar and It against really really contracts. gross to each prepaid So relate can't the is and when between the the different, funds you individual very and relationship you a that volume percentage - because of various rapid it's set rapidly changing function so contractually

of I year-over-year. have look you at to you the in think how you income your gives should It that said, model. really that really treat as best idea Damian

Matthew Breese

to there's pretty next loans that and think growth and be there increase maybe held-for-sale, a going some the quarter the Okay, just before March then you turning this into securitization. said to was sizable I it

a from securitization perspective usual it usual and looks should that than bigger a just we So larger expect dollars with than gain?

Damian Kozlowski

first the quarter. where Well, set out will the It's don't small market We how securitizations plays it will where yet result point the larger. was These the issued much of gain securitization, larger gain will the We've It a to by - can't of to of these so the of starter small doesn't you are though, these investors. expenses securitization, guidance larger the once know that rating mean so been really on larger. gain marketplace, from X.XX securitization - that be running at at We in probably on of we And but happen actually these will are agencies, we securitization larger. it be a the be we spreads have have is this is is how size, X, for necessarily kind where know size be going for see because really – end is just the don't the types trust. that levels in driven the of they're a and the give securitizations. by and again March. each size the institutional will


Matthew Breese

end the second? said you it be that would Okay, or will in that quarter bleed at now of is be the March, say the to Xst the into will so it gain

Damian Kozlowski

the we're get you'll end at to high planning have That so a level first quarter. will of, know so full you interest, now. be We're

So full quarter. interest for the you'll get first income that

individual for last the for have I at set the more of first more with quarter partners. three market year. then we'll three set, and larger you loans times securitization actually year, of of to the other doing having like be expense model We securitizations tend the the done of rest are of we'll wanted securitization, way incur think we've which dollar the so you'll and the market another our two September compatible with it larger for investors institutional for have to and diversity probably of end amounts - how go because the the instead after have the is will

the that that think quarter the set to the where for will third think idea the targeting building give I the first book to from we're a very that as and second too revenue loan to generated securitization of I be will spread we'll, will So end the quarter. you good of

Matthew Breese

was prepaid it a was down savings what quarter, of Okay, bit relationship? this money line quite the it just on last one to is in the exit tied there, the happened item, market

Paul Frenkiel

actually the harbor third No, safe sale the it of the quarter. was in

Damian Kozlowski

was not which Yes, actually rest [indiscernible] deposits other had the and so end the very we business. with rate means at through a deposits actually we've replaced – our our and at zero there – borrowings lucky we high not of are two through expenses, of

all, does we we lost lost what it but and fee. we liquidity, Safe deposits liquidity at So is, didn't those Harbor there from impact the

line, the look in lost fees down So, from see if we our you our fees, you can business that year-over-year.

quarter no items a have impact a and said I near it financials a we noisy little think impact it have impact or near a on replacing did like before, term made so.... does our have would it slight onetime problem but fourth and to going it the term too have it, we're

Matthew Breese

on the one the Okay, Mall more orders, could and stand SEC sorry, on then just the consent sale on on updates give I'm the well? you as if where you us investigation just

Damian Kozlowski

Mall the two that with working have for plans sale we're who Okay, individuals property.

and the the said ground owns there's I lease So there comps, trying the ground a to complexity and Mall. who own we're we – before someone lease as was the

said So - all in for done. good do we we're to adjacent community, get the right think something the it's everybody get responsibility the back, parties have so down trying our deal. to to work for our to Mall, with there it's our right trying to with Orlando there, would something money and to the we're We but we the the all business also work community. could if nice participate we constituencies we get Really

was so do financials, it's sorry? our on or thing tremendous we've What - no every the made the get we'll the it, our and second, obviously our mall, if us still also small we've earn at on look just right resolve a not back. thing I'm to right levels today income trying in to we're earnings, drag capital We think progress. and I anything. actually but it's look a we're so made would you Okay, our once income while. but gains – at money take it you money, Orlando think positive or sooner for later I But

when asking go that questions say the centers a was part of have you a like formal if order, company informal you the The everything, process is risk discontinued with you to [ph] through around an of a and or as whether and usually order a there's that's like usually you quality that sound. So was had underperforming like it we last of yourself process. that consent order, make safe usually end anything the an were

in So Excellence I that’s think we've made Center tremendous world difference progress. I here We the the set way. Wilmington a made think and on of of up

sustain business. view have but growing regulators the only You them, have a the meet not to ability to guidelines, also our but

- I a and I don't were It years a areas. think But business. place I I not from the they months to It's the whether think than clearly consent place or there. I that. examine we're would very I in So obviously impacting it, to little we now not - think come order speak new remove it it our us, were it's don't product different year dramatically a clumsy next go or like in to six makes know last it's substantially we now can into they different time ago. want two I than

bank So stronger. of of it's part making the process the

think of and et and and a in or year And look cetera. at say were. less two banks interest you I business back look shape you et of and to and you than bank about go estate in you two you because ago If year years entirety ago. because what's we're of They're you actually stable happened say a worse much stronger the years are in in at concentrations the marketplace, they rates, last than think cetera, actually some we real ago the could finance, business were our its

one to model it's product or set. our not sustainable. line We one long think business and term continuing area pony that diversify We're have a one a we trick and we're

last that much - we're we conditions growth realized. current think we're we I going substantial think not stronger market that still I and think opportunities by be much affected the be have were we So I and to have year as than will

Matthew Breese

Got it.

questions. you thank my for Okay, taking


this now Kozlowski to like to further Thank you. turn the closing time. call at Mr. no for Damian I'm back remarks. would showing questions I

Damian Kozlowski

XXXX. discipline that and think in business. the joining We're looking us I maintain would can to order really adjust to revenue doing margins. we increase in be will expense or everyone We thank if We're our today. in with lot really like while investing a in order we to our for to going necessary forward maintain

for you forward the at of So end joining you talking and thank to us the I look to today. first quarter


the program. today's for and Ladies you gentlemen, thank participating does in conclude conference. This

a all have great disconnect. day. Everyone You may