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Bancorp Inc. (The) (TBBK)

Participants
Andres Viroslav Director, IR
Damian Kozlowski CEO
Paul Frenkiel CFO
William Wallace Raymond James
Frank Schiraldi Piper Sandler
Adam Hurwich Ulysses
Christopher Hillary Roubaix Capital
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q4 2020 The Bancorp Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today’s being that advised be conference recorded. is Please Instructions]. [Operator hand over to I would speaker conference to like Viroslav. now your the today, Andres you. Thank go ahead, Please sir.

Andres Viroslav

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

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

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

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

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

Damian Kozlowski

share of everyone. Andres. $X.XX earned million, expenses on Good and you, Bancorp The $XX million. of Thank revenue $XX morning, a

of This original share. of our share payments of income XXXX, XX% due our income the range $X.XX guidance XX%. net driven to $X.XX benefits increase a of was revised generated COVID XX% model. year-over-year $X.XX by XX% Revenue exceeded Cost our and of guidance a and funding of $X.XX in a share. target interest the climbed down illustrating funds For full-year TBBK non-interest to year-over-year

In grew and full-year XX% saw Cost and GDV, efficiency XXX% XX% be of increased and business Expenses adjusting continues quarter-over-quarter by the year-over-year. and quarter, a revenue from after led X% the over management. declined XX% prior-year control the of quarter business main we penalties. monetary continuing for cards civil momentum, fourth dollar to for income year-over-year XX%. gross For XXXX, continued operations volume, our Net focus XXXX.

quarters to This was quarter the the does than appear spend This growth mostly in in We lower a knowing November previous long-term a be to GDV Elections. trend. December, the of prior Presidential not Election. outcome likely experienced restored in full due and to depression

year-over-year by also We our in growth lending securities assets led added and insurance XX% platforms.

business growing with momentum continued and PPP Additionally, SBA excluding our commercial has X% X% quarter-over-quarter. growing leasing

best to payments agenda and have our with plan, a the the on industry. focus platform We services strategic strategic rigorous and expansion, on ecosystem XXXX; for completed product continues main focus budget building be in financial business

integrated scalable create to analysis future the partners and can core competitors competencies a our build to includes use of and investments plan towards and grow. Our needed the and comprehensive that and market innovate

regulatory and guidance have and continue compliance, expectations. We laundering best-in-class to also invest capabilities in anti-money heavily to meet

alternative. believes be investors. were million its undervalued purchase in capital a as that efficient quarter of XXXX, and to considered to time, The of market of previously Dividends the of first At buyback repurchased. will are totaling for has the TBBK in commence We're can the XXXX. XX shares repurchasing bank authorized balance a shares buybacks board return way As our shares announced, this XX most an bank shares. the million to shares the quarter currently

With to goals. were long-term future the be in deemed buybacks advantaged. economically as and the Dividends business added could bank this current TBBK buybacks return approaches stock TBBK valuations prospects, valuations rise, or

target $XXX fourth earnings per Paul XXXX or I'll million is guidance the share not income. call turn share $X.XX more The net approximately Lastly, on a you color in do include to CFO, now over for share our our Frenkiel, repurchases. to estimates the give quarter.

Paul Frenkiel

of have generally $XX XX% multifamily estimated of losses nationally Damian. growth their estimated equity at of losses increases income the totaled driven and billion COVID that and comprised portfolio XX%. loans previously not is funds, a in The Return and $X.X i.e. income. cost by respectively experienced due is estate are X.X%. to the books collateral. to a our of and which a commercial and lower and a price higher on at were floor nature equity SBLOC IBLOC assets reflected on analytics in while yield to with cumulative interest X.X% billion, rate business Those lower quarter increase at million $XX.X weighted The compared X.X%. Thank by interest and were vast $X.X loans of X.X%. for primarily apartments, loans approximately returns credit quarter had small amount portfolio These the X.X% securitizing. recognized asset or third majority firm average real of increase and have the also portfolios net you, been in yielding of SBA leasing, The net retention the and we

will PPP year-end million we over portfolio for business we primarily should revenue $XXX in the less amount in the believe yielded will in XXXX. to intend December million, fees for have of PPP reflected loans generated remaining $XXX and $X.X million of than of qualify loans by Treasury be program, of program. fourth with new Our SBA PPP to new loans. quarter will the approximately Accordingly, is quarter PPP coming $X.X The in a which million program, repaid be threshold quarters, loans Legislation enacted first and first which comprised million $XX new the small in primarily the million of loans of exceed fees. next the be participate that largest loans total provides In $XXX additional borrowers of short-term lost to of PPP loans. recognized repayments

Our has of estimated an SBL portfolio yield X.X%.

While, SBA to to values SBA of Xa have loan XX% date loans origination loans XX% mortgage commercial the generally XX%, government. U.S. by guaranteed are

authorized loans in and COVID, those payments to mostly capped government three payments, of December addition the eight of will make Unlike government per to In additional loans. for more including to quarter, six determined CARES or Act longer Act, six months an restaurants. the additional the the at payments months $X,XXX payments payments those on up hotels which additional will of by months on authorized these legislation be U.S. months ended CARES The the businesses impacted also by month. fourth be

The in the for from in have XXX February three increases press eight but from or small SBA increased mortgage X. payments noted In real to $XXX begin loans. include the XX% be We release hotel business theater on Leases note addition and commercial growth, segment to million those that prior-quarter increases Commercial complex is should fair September tables loan also SBA balances and loans leasing the real the SBA months in increases deferrals and were loans loans to primarily portfolios, by overall of Deferrals end. million until collateral those value. X% consisting detailed portfolios are $XXX which movie with of to commercial of estate the type, that over deferrals. estimated in They reflected loans increases at loan by at deferral. $XX we're additional valued for It and are in range. government slightly loans, XX. X.X% concerned estate the approximately to in we loan million loan with increased XX% and X% geography. a yield customers not new leasing loans an increased our diversification emphasize

related $X.X increased For average we income income quarter, Interest for nonetheless in $X.X interest while billion, loans disclosures interest SBA $XX.X million. PPP fees. of approximately million million million, of loans to to this in which increase requested deferrals. increases net including detail reflected $X.X the recognized $XX.X have loans diversification increased CRE The quarterly those borrowers on expanded

XX% from rates. margin of X.XX% tied The income. on first income of approximately amortization reductions of and quarter, interest our reflecting the IBLOC those deposit secured interest higher $X.X in QX was life rate pronounced of fees, was was is IBLOC QX, XXXX, reductions. will X.XX%, prepayment are in cash QX equal the by Reserve and SBLOC likely the insurance losses was lower million up increased impact Continuing of the the impact quarter trend the those have rate XXXX. interest marketable interest maturity securities funds value which of over and current market and securities yield impact Most loans higher overall cost secured SBLOC Reserve reflecting Interest less combined reductions to premium or either reflecting contractual incurred. interest reflected net prepayment, While periods, basis in interest the credit related securities Federal for by of through Federal reductions. in and of loans continue not points yielding the expense was expense quarter. XX and are been

$X.X $XXX,XXX incurred XXXX. Fees provision revenue income IBLOC excludes cards primary million increased funds ratio decreased return $X.X the $XX.X $XXX,XXX internal non-strategic higher and million, earn XX%. the Additionally, loans levels. million. X.X%. of likely the exit $XX reflected Reserve and which the those the to for settlement our for million the are annual those resulted allowance net higher represents by the which from customers balances, its Non-interest an processing prepaid basis, leasing total an quarter. to during on QX of compensation driver balances include of for experienced not after to of eventually rate recoveries which marketable due in securities nominal XXXX was to adjusting and QX accounts $XX.X Because Card rapid fees margin an were That to Federal QX risk income. primarily benefited ownership. which X% Accordingly, lower in loans FDIC XXXX funding primarily resulted and compared incentive payment have are losses value Prepaid adjusted fees largest cash of change higher expense, management and reflecting related from an million, higher the salary ACH a analysis. SBLOC was in and increase respectively losses, the collateralized in advisor up and company in credit from and ACH also source On a and of non-interest expense exit expense. to X% QX increase in the Bank life as from The is ratio approximately and financing insurance reductions at will growth historically loans

focus relation deposits, certain continue to current and The in expense the result In in $X.XX FDIC The assets issued classification value XXXX, non-brokered. the exceeded a per of at December We as like X% I as consolidated the on portfolio to management, XXXX effect takes compared in detailed and which increased share revenue in earnings to the of pursue December the the quarterly further XXXX XXXX, based Book characteristics approximated especially ratio, we regulations portion Such growth. are share intend highlight. steps should tables upon there to XX%. to Bank's QX closing, value the XX, rate which in a FDIC reflecting QX average is environment. $XX.XX leverage which the increased investment portfolios the loan required would to in of risk-based release, result for our of future press per reduction could of in and the reclassifications ratios In expense. regulation reclassifications.

of is COVID U.S. in consist historic approximately majority $XXX of loans nationally Those $X.X loss XX% IBLOC SBLOC markets. Approximately apartment billion loans of books and billion declines the PPP $X.X the in including mentioned, are on business notwithstanding of loans which and their XX% XX% multifamily are government to also X.X% specifically loan recognized majority loan business analytics to has commercial vast recent small small guaranteed. held-for-sale of for portfolio estimated the million The with our credit reflecting already equity the date other origination loans As commercial a of portfolios have value. losses at mortgages previously levels firm not our incurred discount. are loans that buildings, cumulative projections.

to For leases recourse have the we which leased credit experience vehicles. issues,

which related characteristics uncertainty Damian. demonstrate I'll there's these we risk other turn lending. are forms believe the positive than our to now portfolio, While call future, of of back the to lower

Damian Kozlowski

questions? you line thank for Okay, questions. going to up the you, We're open for Operator, Paul. would open

Operator

Instructions]. [Operator

is first James. Raymond with Your William question from Wallace

William Wallace

guys. morning, Thank you. Good

Damian Kozlowski

Wallace. Hi,

William Wallace

handful do the prepared you can a I a questions. December. as of the spend to Election the just the bounce what that up Maybe you there a you the to what leading might what we have spend XXXX is see margins leading -- the then on decline in money? is this overall anticipate and to expect let's that a recover back of commentary remarks also bounce that of with the sort your GDV your I up saw questions, trends, interesting of might in kind that you couple just how lost during grow? for Election lost Is in And guess back expectations December, And or there? are start

Damian Kozlowski

Yes.

or that level assume sooner cards, people will that on unless calculate not million idea part money. But the no that goes possibly couldn't savings the have I So spend whether will first or on I spend question. money later. that over macro would rate up I that people a XXX of

one So to I'm lay aside. that going

over On base really XX% growth, And or commuter have exceed large as We've you pipeline. But -- into any in plans. certain just targeting, much GDV still and we the I phenomenal care, contributed And more started that to trending player situation. think segments, of think a growth second it's targeting our an cards marketplace. going gear. there that's strong we're had over -- the health we're way. that's other high things like one, year. now, a We third is growth we're we're in happened extremely larger COVID XXXX far haven't added, know, We new programs last had in haven't several because what really like that going I that in

we So I going stimulus. this is there's not and another even to as think suggesting be

we'll the think on in get above here target probably something hopefully, this -- the we'll trend, be I that. there I if economy So we think that be we stimulus reopens above be summer, or right think we'll And double-digit as I else, have.

William Wallace

into meaning if or And growth, translate bit XX% growth -- get looks in that Okay. XX% half like GDV in you a [indiscernible] so can less the plus for of plus little line, than revenue growth the it GDV, could the

Damian Kozlowski

I'm sorry.

William Wallace

essence you In burning in revenues?

Damian Kozlowski

XX% growth fee had XX% growth. we Well, and

So which it's bounces roughly half, at on depending which programs are it time. around, growing

and that's programs new like likely we right XX% now, growth our So lot they're GDV to have tiered. XX% with of a the seems because of mix, coming on,

fees higher program. the in, the come of the earlier part So

right that to half it looks like the if XX% XX%, So the now have. XX% now, mix right did that to more be we we you with would

William Wallace

Okay.

Okay.

And Appreciate great. that to like funds product. rapid ask Okay the Thanks. color. I'd you about

Damian Kozlowski

Yes, Operator? Wallace. there, you lost we

Operator

He disconnected. has

Damian Kozlowski

Okay.

Operator

Instructions]. [Operator

Your Piper next question with Schiraldi Frank comes Sandler. from

Frank Schiraldi

Good morning.

Damian Kozlowski

Frank. morning, everything? How Good is

Frank Schiraldi

thanks. Good,

guess in for went talked to even out the to I included In the want that pointed stimulus well. is EPS for just payments sure guide, to $X.XX doesn't make past, individuals included XXXX. release is What you are January, guys didn't wanted one It You guidance? the with to start in to miss in is I the the $X.XX the So $X.XX. I direct buybacks. second you the there? not include a else that about

Damian Kozlowski

put stimulus, none right. We're mid-summer a economy up we again. until this expecting the depressed No, environment the opens when of

know. going The So as a not is I real haven't to built we're not just the was not a smallest or mean, taken That whether we you bigger so. the one really trend we're or expecting. in, -- stimulus we've line, question month in we're that get

have So a marginal impact. that'll

we in -- way. where to just very look a do we're generally at modeling you our though, today, Just if dynamic

the preponderance seem two at of stimulus opening to a positives. positives. the there possible drivers, those look real and be we the And does the offsets of now, and Right economy. are So

don't what GDP really good So X%. that's just growth it's -- we we're came that going know to -- getting at pretty out

but on were you in bump an would positively. it if not lending a businesses, in of have impact on would pretty a payments So big that, our only excess the spend, good get probably to impact have summer, it

information a we've we able built if at meet we'll we'll $X.XX, a if tailwinds, the are it be but guidance. positives, we get look very we the off book, And comfortable clean, even think rate. haven't So -- why get seem basis, if feel our took growth up that pretty, do run that about economy, I guidance. looked, still it's does it's It's to we we'll these we that be That's we and get of with a I don't at where of share. would our update more a $X.XX, as update the pretty that on in, I lot today $X.XX that you we say, steady-state

Frank Schiraldi

you're Okay. just your at on the don't any to terms of, of in there, some guidance, brokered know of But the in not deposits save brokered? we that's non-brokered going that how to because in thoughts sort really that designation what versus non-brokered, or, any much of, on deposits, change And your assuming I guess. least from become fall-off will then or I'm them percentage sort of

Damian Kozlowski

could XX%, it's the working right, included. give you been in That's one it's He's It a order reply. tailwinds. those as as But process to of to that or give much And on Paul. XX%. be not I'll

Paul Frenkiel

Yes.

So have definitely filed an then of -- and potential And and percentage a ultimate program-by-program our there analyze to certain high be on we yes, a you FDIC enough are they're the has definitely program deposits, the for Frank, really makes get them. go FDIC of application some each determination. basis if through to the reduction,

go We and just going through going think the give savings to some not estimate think. the the estimate do, there's happen. amount. what going we we’re can't we we're really And the determination, FDIC's But because an applications So of it's do to to processes.

Frank Schiraldi

have can, year, you GDV you results. or know if growth. how any back to full-year, last year's don't trending you the just then, thoughts for just wondering to the I it's it, your gave And Okay. over start color, just

Damian Kozlowski

like It's said. I trending exactly,

with still even So strong a over of trending pipeline very all growth our the range had, in the it's we've very positive enormous with target.

if last the with I they going match we up stimulus get if going So if any to we, it's think obviously the it's wait perfectly match longer, to that year. up,

good regardless not see be or said, Like position not. but we'll if that still I we're or this on going we're a year, we it. happens not, to that they do what So really do counting think if they in

Frank Schiraldi

last those results you to were Right. And XX% assume where tough point, some so compare then your year-over-year, plus what --? this quarters is XX% to in to it's expectation so to year, for -- the you what year is growing obviously just but

Damian Kozlowski

The more. Yes. is XX% target or long-term

Frank Schiraldi

Okay. And then --

Damian Kozlowski

it at But because much base, money year, that positive but center three implementing economy. These only the grow we all seasonal The four long-term long-term Nielsen November, behind are -- long-term it we level. one or wasn't we're systemically, to in are the year, we entire look the of at The five even virtualization big if very partnerships hard to list as so the only we we conditions developing now. list that but to on which everything, place high a down this it are it's bigger very partnerships and trend, It's as systemically, all might and with were and the the necessary slow have it's be we're be things eight had though that banks. probably have. across the might these last a just in you less, partnerships things of month was contracts us, key

Frank Schiraldi

in cards. that linked potential driven XXXX? debit unemployment down on earlier meaningful benefits And the their impactful about or those to benefits is through said growth that prepaid points by wanted to just ask December the distributed quarter, in if about were VISA in call, I they an were then in something unemployment back to you? in online being that Is extent XXXX just quarter, step or And important Okay. their a three come growth lower talked they --

Damian Kozlowski

obviously, cards Yes, a we see from where again; payments our deal debit with go tailwind lot because same of those into partners. our that's we another the things

yes, very VISA few it's And exactly on exact I a percentage percent that, think. correct. don't probably. I I that's percentage, the know so but know is accurate, don't the

Frank Schiraldi

into your so back Okay, way that long-term not expectation your growth; But guess that of baked the important. that expectations coming those is not into stimulus is online is benefits unemployment fair? I are baked

Damian Kozlowski

hope for pipeline don't programs. for people; structure what intervening our government industry. we of the the of just on. We budget plan And planning our don't other base we're that's in the We

know, are don't -- just gravy. you You all can't those --we

it that way. put Let's

Frank Schiraldi

enough. let ask else the question. Fair Okay. somebody Thanks. there, re-queue I'll

Damian Kozlowski

Hey, Frank. thanks a lot,

Operator

your Raymond And Instructions]. follow-up is William Mr. James. next from Mr. [Operator question with Wallace -- from is question

William Wallace

Good morning.

Damian Kozlowski

Welcome back.

William Wallace

try the at to hoping business update Yes, asked, us asked onboarding just don't in you're a update? was, you line look happened. was what in was I know I give customers, if I can that just But trends you I thanks, on I'll I could to good us the the new again. going Frank for product, rapid apologize experiencing refer transcripts. ask the an could And of if question and and I year, funds kind down what you the of good, me ACH

Damian Kozlowski

so it Yes, year. very this positive will yes, be

and our entire on consent developed were was business. order doing also restricted in path the because we So did a of activities ACH what at we acquiring, that look we looked envelope at forward merchant

see what That's plus partners. XX% in most that year, and this fee we're rapid So area based-off And predicting. acquiring you'll funds growth likely. of that's

of had ours to, recall, was, an previously, we left exited, as you was because in was acquisition as of payroll if there there some either. his wasn't done. really, comments, partner we've as that But we that business a core that alluded well one that So business Paul

is to indirect into processor. build a is are we're the thought this still volume the you seeing So the we're what in out we the rapid were system risk, decline where the funds, we business, growth integrated with the which And And that's now We're direct saw riskier seeing funds parts the starting year. what cleaned -- why we it. rapid we've with partners. restructure done of with big

we So good see this should that year. fee growth pretty on line

William Wallace

then great. was What on there loan Okay, you. I sales. million noticed Thank that gain was from? And a $X.X

Paul Frenkiel

-- We we institution, commercial held or when securitization, the to we've earn repaid exit an another when refinanced for loans previously they're fee.

William Wallace

Okay.

Damian Kozlowski

have thing -- future, one a are thing these add fundings. around we just because of just a we loans, still transitional to that, of one Yes, $XXX to million have future

So we you're refinance, have in loans them. fundings some to -- while going may future to come replace

we're two get So going balance paid very in sheet so over that fees. when we'll next also, at those portfolio years, stability if at income the have our to And good still anybody we'll at does that. refinance, they're they're also XX remember realize par,

William Wallace

might We lumpy should it -- revenue be course some line that recurring the some there that's recurring a five of to probably item? recurring quarter-to-quarter, but years, the there, over three Yes. should from next anticipate be

Damian Kozlowski

Yes.

many for right predict lot few a you'll two finance to just to out, future how But years committed that can't lower the be hard decide a on are get enough of the So will it's next you're there to those see projects. years, will we -- for attributes. than amount people because it's more that of based fees, next fundings there

people booked remember, get fee. after you'll the where won't years, see they're three-year But XX. hit at it's that's where the you mark, two So as you really exit

they as you'll as that get you'll So get their that. prepayments happen, roll-off

William Wallace

loans, portfolio the these individual then, does hotel deferral on see that, or quarter, X% to theater went mark you Okay. as loan-by-loan translate cover and me, any any like in mentioned, this the excuse you of metrics on that the marks? the the And change whole credit

Paul Frenkiel

loan-by-loan They're mark.

X% if They're by you have the think versus the But the significant I X.X% charge-offs XX at high-end, overall that, even predicted, all be if X% really we But much and estimate like losses, don't underwritten the on that point working that event represented the long-term, COVID that you you're by apartments. years to just offset loan. two blanket event, class each we losses So look basically They're forth. it one-time full and at way, true, loans have credit it's next type multifamily. had these for will. that that you We've if we a we look portfolio billion potential if not offsets credit $X.X assume a carefully really not of mark over so are the than at you think more is if the over although would that making discount initially. would

William Wallace

Okay, on FDIC can clarity, it. equation how us have And changes appreciate deposit able appreciate to I that you from insurance, are okay. if then Thanks. following-up -- you tell the non-broker? go broker the you to a

Paul Frenkiel

-- non-performing there probably makes it's Wally that on the a on there FDIC in on of of items. lot are factors is a like is it it's the There -- it percentage levels, that based of thing loans. a not It's insurance prudent based to estimate based capital just whole host

all and go can we that to of go our should equal take thing is we reclassify should that other away them, things down, we that's item have believe, lesson a the do -- that if or is line amount, expense that think I the So goal. and significant enough

William Wallace

that that -- it. the we all Okay. help in anticipate maybe to about that that us existing the line? Or does to any flows to And bottom businesses or new give more business? invest I think guess should Is opportunity

Damian Kozlowski

No, a already payments it's if the run we're but you are don't rate. FDIC built our bottom those $X.XX stimulus, Everything the into with the line. a really We talking We not Frank, -- comments the I already have reopening the heard plan. the of stimulus, that know insurance, share case. none of really at unemployment, to that, running base are the all economy,

you're share. $X.XX you at times that obviously, a you combine If four, if

happen know when is really got, were this on and rate tailwinds, the just and the know we -- kept you up, basis those situation. last yes. current happen, events we're don't off doubt, doing careful not but we we we've a bias up very know, is So on of bias guidance, it same We else obviously, everybody no it's not, the ours good of at but took going with we're COVID. on out don't could There's now, their run what's to looked because totally probably don't woods. we The year, the

William Wallace

Good drivers good. yes, potential to good. some that’s upside Okay, Thanks, not that considered. there's know

of On Paul, you margin, if any on through could I'm forgiveness, about gave catch from the prepared that. that, said? what you back quantify anything net didn't impacts the color But lot potential And I in I PPP fee curious; a acceleration interest not can remarks. read

Paul Frenkiel

But round Well, short $XX clearly, at those are one, but loans over first we take in to fees the time. would the us the talking with are if of in about million help new the look then recognize period months. quicker, a estimated million. PPP going quarter, leaves loans original if still repaid, saw fourth repaid the And I'm and we you it's of like, the wave XXXX, that $XXX it XX we

not planning acceleration. we're on So any

in drop fourth last the show the else so fees XX% had less We PPP. in quarterly course, take million, the of then we we in And that on first PPP. $X.X said reduce borrower as old PPP has I be the equal to that $X.X of have million that about it that which the in revenue, they to all because a the should got of will the new quarter, is comments, the expect

William Wallace

to the applications so call far the, was third so what's are Where volume round you the round, or want far? you of whatever second on -- What it? dollar

Paul Frenkiel

in to want due everything. be really I to got They've through they've -- funded speak really diligence. to don't got know Yes. to It's that go that. we

have will a that. reliable number, we publish number, So a when we

William Wallace

the say, fourth did million And you $XX forgiven quarter? Okay. in were

Paul Frenkiel

fourth $XX were government by million million; the $XX repaid $XXX the us out the million government of repaid quarter. in the

William Wallace

was then [ph] on? into what fees And accelerated that the it

Paul Frenkiel

we XX over We've quarter, hoping them in slightly acceleration really the been back. first we rest get so factor. it have that They're didn't lining months, slower. any We're straight the of

William Wallace

Okay.

Okay. Last on question management. just capital

the dividend, So you're in the back earnings is are market stream now your What implementing about seemingly considerations and if predictable? buying any? strong shares, a

Damian Kozlowski

Okay.

ROA, growing undervalued our market XX% multiple and book. to still over multiple low, our So X.X% we and is think we with our and think PE ROE, a still we're in a

which think maintaining XX of to that'll continue we to we're We sort, we -- probably and over right then really should buy come that valued going a fully think we Once definitely until at fully low shares but adding we believe So be will the dividend. in some going maybe consider XXs. now and are to maybe, we're months mid-term, we're the least we buybacks valued.

undervalued. If XX% you XX% we the think XX%. that in to more -- we range lower is, banks, the and between be mostly like have return with stock the ROEs different where we're market About and But banks, returns a market about prospect to return growth dividends. XX% our XX% banks believe of range

board that So right multiple once point that we of consider a market to multiple, in in think time, will structure is buybacks. we the addition some at hit dividend

William Wallace

case questions out Appreciate I’ll Thanks, there's other step in any the all the Great. Damian. color; in queue.

Damian Kozlowski

you, Thank Wally.

Operator

Hurwich question Ulysses. Adam next comes from from Your

Adam Hurwich

I more some response this to taking for the are focused progress could question. of Hi, shifting income over to in assume E? than the because me your investors thanks addresses wanted Actually, previous but the fees about, your your sheet ask year on you like balance PE your I from describe

Damian Kozlowski

So we we the high our obviously. even growing bank, -- we're And business. now fee very fund way opportunities, because we're always payments looking obviously, of of the fee at outside focus

that throughout certain balance, was build up saw to businesses. that want stream ended that we and an So year this to to amount in extraordinary loans rate extraordinary holding interest what growth we very situation we SBLOC. this amount on substantial dislocation, securitize a areas and of outsized where continue And of like we saw due you our our loan an

So spread systemically, the because aggressively, the -- you our obviously, of we at collapse look in funding. that revenue find when grew you very

three So be into steady, should years. the next more that going

to the you'll grow, that will income low, in going spread are not but that see rates the comments Fed to remain With way the obviously, disproportionate shock. interest that due

And show it'll I fee revenue to gains, will, dislocation substantially. fees so between rather the one-time spread the spreads believe fee -- fees area increased this larger balance than and start in that

Operator

comes Christopher Roubaix question next Your with Capital. from Hillary

Christopher Hillary

versus some of X% have slow of that your target, terrific? medium, what at things look you influence ROA are us a you will down. you some you when might sooner And long-term that what the the ask there that on of to would help areas wanted you if through few be take could get just I sort

Damian Kozlowski

all it's I'll Well, direct to about, Paul.

it's about all sheet balance So management.

size, our right. use effectively very to trying we're So

accretive. So a don't or are don't have of that lot we we want loans to think excess cash

banks up what you our funding And X.X just that we so through saw phone rise. you X. that, ROA the supported in saw year, of our in this in we've collapse a gap was So size obviously to also, that rate, one-time from talked about you substantial this

of very returns. So our we're cognizant

our equity ROE, So balance focused. be of very use our of we use and sheet our want to our

do we So that. that things to erode don't like

our peer don't So we to a three sheet, the liquidity but more our than we we of have groups. times liquidity, on balance carry primary generally of carry that lot want

good add So, to assets want good return that returns. we

on don't business, set lot even chasing, going our do below Here's there's and these that, of we a down loans, floors. SBLOC on been we like variable an X% example rate

balance low a we management sheet low our returns. do all note we a not portfolio, for it's of making So return, low rigorous just bond utilizing that even have that you're want do it's ROA, in have low, sure and your to I growing return. portion with about fairly assets our And

and as use for franchise. reset drain liquidity that some off business can we in bond it like the returning we that liquidity need our let loans and liquidity, higher leasing in of small So portfolio,

Christopher Hillary

Okay. Thank you.

Paul Frenkiel

at fee increasing increases, as and look And expense expecting which on our base, Yes. the question fees are the then, fee and that, expense an base I if fee we're GDV income key. expense funds relates the is and to growing the the to management would get income to business potential asset payments back add last and the also a managing on on that by two income, management growing non-interest the it growth, trajectory. implied increases those keys. the rapid Those you

Christopher Hillary

Well, year. the with much. luck thanks rest Good very the of

Damian Kozlowski

you. Thank

Operator

your from [Operator with Schiraldi comes Sandler. Frank And next Instructions]. Piper question

Frank Schiraldi

coming back. me Still

more a of and that end one that about of is the could you see is Sorry, want year, the something growth consumer of the being meaningful quick if part there credit, so more I just and road? the opportunity something that earnings a sort part down or of by a --

Damian Kozlowski

of now end area. that's that be developing know low end roadmap in I the don't the in the we're years. for think of obviously; about pool the But a three But next we'll year. subprime I No, right looking; we're credit don't

looking probably we're the So card to won't, -- that probably at business, credit we're credit we're type get sponsorship. today, we're credit not with avenue, in of say We some issuing products definitely like a right. financial not looking but partner in

potentially consumer financing the of receivables. be would this So the

a definitely if it's be So initiative. part another not. our in it those delivering to it's the in year, by somehow, to more be of order of going probably That's program longer-term we're working end not mortgages, be business in will where format, that the probably it'll do way, consumer to probably partner, It'll with things. manager going of a home receivables types we're be virtual And a facilitate. direct a

Frank Schiraldi

to then And for a the just PPP you. one on NIM Got follow-up quick the Paul, just amortization. on

running So about, $X coming been with million that's up I'm about so quarter, out? is it a

Paul Frenkiel

a $X.X $X.X million. million, about About a

Frank Schiraldi

quarter, next should first after And run-off basically, quarter? that the

Paul Frenkiel

have quarter. the the new PPP Correct. second And by then quarter in the we'll second

Damian Kozlowski

partner, that loans might wouldn't originated, additional working in to with thing mention we're we area replace in direct which those we fees, one in up there's result do, million PP the $X that the a range. And fees is be might to and that

our addition on So the may there be to the own some -- in PPP additional origination. upside

it with from partner. PPP X result That this or partner, program that is how our isn't we with the fees. who's somewhere working this we'll into that -- But in see -- partner, a this program is could and would so between would additional fees be result a forecasts million So works. either, built we're $X this vetted a initiated this a doing and

Frank Schiraldi

quarterly? or to million just X $X that's That's overall,

Damian Kozlowski

X million then these would that it's they would to to if million. we're be settled. not, $XX overall, up loans be And funding $X

one So have could this could -- be there or could there XX -- could be this of of those, those.

experienced And that those the transaction originated. transactions a partner are is that that receiving and extreme fees so funding we once confidence is have in, we're this

there so, fees. turns XX it if say, it would were $XX result credit And line million million, this in $X.X of if and revolving that was

just it would just we the started loans replace saying we're -- of potentially ourselves. aware going not this I'm making of program, probably I'm less to it do you exists for that we're the of some Now, PP and fact that

alternative replaced fee of be Some by program. those that may

Frank Schiraldi

up, But program started has Okay. started that up okay? PPP since

Damian Kozlowski

Yes.

Frank Schiraldi

right. All

Damian Kozlowski

already it's initiated our started; credit it been approved and Yes, by committee.

Operator

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

Damian Kozlowski

we shareholders, this pandemic. I I build to keep making can continue take for work and they We're our to is our solid the so appreciate XXXX think operator. you had year partners, to circumstance very coming We companies careers for into we an in really and going had really of joining people. footing business make value And the the us on enrich and care much, a always of Thank a innovate today. great very hard beyond. build grow our everybody unfortunate and with year, eye the sure sure

So us. you thank for everyone joining

Operator

call. today's participating. this for conference concludes and Thank you Ladies gentlemen,

now may You disconnect.