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ICBK County Bancorp

Participants
Tim Schneider President
Dave Coggins Chief Banking Officer
Matt Lemke Senior Vice President, Banking Services
Glen Stiteley Chief Financial Officer
Brendan Nosal Piper Sandler
Jeff Rulis D.A. Davidson
Terry McEvoy Stephens
Bryce Rowe Hovde
Brian Martin Janney Montgomery
Ross Haberman RLH
Call transcript
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Operator

Good morning and welcome to the County Bancorp, Inc. Q1 2021 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Tim Schneider, President. ahead. go Please

Tim Schneider

everyone. first Welcome joining today us Thanks XXXX Thanks earnings our quarter call. for Grant. for

As a presentation. reminder, of we XXXX. have our disclaimer on overview quarter X an forward-looking on Slide of do our I'll of four statements the use

– Slide excuse one, X me. Moving quarter to

$XX.X primarily this $X.X included, Moving to million, million serviced forgiveness fees to per share. Those financials or interest loan were resulted income in $XX.X trends to several sequential $X.XX by Slide which positive net net from decreased to X, compared and our increased balance which and we quarter. our decrease there less quarter, driven migration improving income of loss resulting diluted sold Loans PPP the Loan provision quarter, loan both was Watching credit throughout during the credit X.X the quality speaks servicing to metrics. XXXX. was in worst expectations and million, million, loans expect origination within income. with loan positive rate which of similar increases well

asset classified at the we XXX,XXX ratio stable adversely Our lastly, during common quarter. XX.XX%. repurchased shares And remained

the payment Now customers for only portfolio and loans. total to less commercial customer X% one update, on at response overall COVID four credit a in Ag has fared X/XX/XXXX, remain customers of our three relief. to the These moving interest-only well impact than account

Moving to Slide credit X, I want to key metrics. highlight some of our

at X/XX/XXXX, beginning of credits annual watch the at XX.XX process. XXXX decreased million helped connection Our our in upgrades result review adverse dairy as our XX.X steady the ratio portfolio classified of with by in

totaled XXX,XXX continue as to continue properties. during We balance to expect XXXX. acquired we the trends X/XX/XXXX these OREO of at market the positive

follow-up to monitoring concern high on substandard credits continue a and quarterly accounts. monitor ensure basis We these and to watch proper on the

than in test. and have results Slide more a improved completed I'll stresses year utilized commercial and credit the are the the year, the to stress operating the update and the XXXX reflect levels reserves for given adequate of extraordinary moving operating We over test XXXX capital dairy XXXX give X.

we as slide. consider of continue monitor We high industries on the bottom detailed the risk to the

see, the are loan will rates negatively the hotel as credit We to ratings. devalues were moved watch you of pandemic. As impacted in by by one these occupancy payoff The impaired bucket million receive supported substandard our hotel and proactively were did their after a shortly the satisfactory loans loans XXXX. rated Quarter risk in categories X, $X.X

there several encouraged bucket. the in Ag the the our anticipated also provide in to the review a our an we are Moving rated the grant watch new X really update. customer connection with Ag and improvement upgrades impact addition the with worse early significant We're of bucket, large optimistic to the base Quarter reviews remain the anticipate several quality substandard several XXXX with I’ll by watch growers cash upgrades in continue of and operations. have shown credits and have portfolio of lenders Slide potato X, The made of annual Overall, balance and our credit dairy in by process. diversifying

see Since I'd offs should Banking Coggins, Ag gross total like majority of billion only Ag the to At Dave give Dave? that environment. on industry. are on update Chief our to $X.X the that portfolio. dairy our also charge $X.X to by incurred relationships the to overall turn million Ag We Officer supported been can XX% over inception, our in our You an of of FSA have is and relationships, XX% guarantees. dairy time, highlight exposure this our

Dave Coggins

Tim. Thanks,

for bullet headwinds. tailwinds will points. narratives into months bullet give of explain got prices we've I'd help of see some $XX.XX. the under points that it Slide A and to milk broken to X, XXXX quarter three as And you those Moving Ag, the like Class X averaged down III –

XXXX. Class of the futures the XXXX. differential combination the per X/XX/XXXX, along assistance price as and XXXX XXXX XXX pay boost producer’s below with improve line quarter remain projections the and most of down farmers most their incomes PPD for price other producers. experienced However, Class as about working This This dairy as breakeven significant first care more deferred maintenance. weight remaining price of the of above With been average nominal Government of to some have are to III nine milk, producers negative take to for $X.XX a classes in most $XX.XX. dairy those actual prices III is provided with substantially of expected months of in debt, in well producer capital allowed for

markets of likely create growing been in producers, our for and for are time, producers such and some elevated dairy on this stronger emerging for are the some cash dollars, it's not experienced with purchase prices concern last moisture margin it putting expected about feed. their It's XXXX of is and for who expected in state. the bears CFAP planting directed early dairy are is well to input this have fuel to towards in both amount to levels the of growing Program coronavirus Cash early and areas as the the to some amounts in industry if any also season additional watching. or but farms. While substantial some than an concerns, need tell stimulus XXXX. levels spring pressure the farm season expectations a Other Getting round cropping be of concern Food chemicals too grain grain cash bodes dollars, some soil form season, Assistance into futures is they've costs at to but

gross dairy, dairy margin risk Given costs. margin protection protect environment, milk producers dairy or margin to DMC programs prices livestock feed the like coverage between margin, current to mitigation the and important and tools available are

needs dairy to XX% between are of the outlook and the On the most implementations COVID milk production for front, economic to keep to as U.S. economic its growth export starting export impact XX% strong prices in for is current the The partners. dairy program outlook global range. vaccination trading

Expectations the U.S. the quote us and world export and earlier quite Ag firm this expected quarter. I'd over bowl And process. on wrap information. this hands powder need marketplace activity of multi-year Mother to to be of to Dairy Matt? export our to be and years over XXXX. all are products The And a demand Nature, for an U.S. a for and is in it in volatile, to a to income interesting The of give to World updating And grow, of following but three continue our Ag have turn with an contract Matt bullish.” now, and I is needed and outlook rural should us future for outlook rallies in see weekly the indicated is intensity a quote, driver strong volumes. to will yet recent demand help and our economics like kind stocks. of be is rebuild “The dairy to next Lemke forecast it. up growth speed us USDA dollar. that's currently major dairy supply weaker maintain combine is as that the with demand will global expected consumption And through products Ag report, funding, first is global the realistic. is Prices from competitive. due been outlook continues now dairy We U.S. to Asia's the two strong elevated we of supported be

Matt Lemke

Thanks, Dave.

sheet. our stick see Slide right we X, you'll to to Moving that strategy our continue composition balance the of of to altering the of side

our financials, terms million will or was number approximately of and of to you on March in account Of of open million. In on we funds, to From related accounts Cost by to of of cost balances account by the increasing increased increased March increase X.X%. of from accounts million. XX% or decreased that X.X% new balances transaction of XXXX by XXX] to XX% transaction period X.XX% PPP including CDs funds same XX transaction shift XXXX, March this the XXXX to from In books accounts, X.XX%. of active XXXX, We from for we XXXX, transaction X.XX% March XX.X note QX our or [netted balances funding. XXX took X.XX%.

in funds. treasury saw Strategically, of off million consumer our single portfolio focused rate high cost of improve mortgage. remained we adding shedding Additionally, both further overall people, service XX.X QX, Talent-wise household we talent infrastructure, CD QX in and management our ran services. on clients to and expert

our an that deposit individual treasury conjunction managing with lenders to we in our Ag On and is management growing portfolio. dedicated Ag added the side,

our and Appleton On environment originator solution by the we hired of an to for mortgage rate continue advantage a mortgage providing a mortgage complete take expert customers to prospects. We side, our market. low

to to us opportunity, be this new consumer drive brand with scheduled complete recognition be able continue relationships will and new growth our individual market organization. this We we and presents year, believe later the to locations for believe this great

team in lobbies by pipeline management terms on non-interest we remains are of team QX and assist commercial our ways open, now are more the analysis From the online, income them educating deepening opportunities In available continue and branch to lockbox being and phone. continues work of internal over an funds. Commercial necessary client managing opportunities that ICB opportunities. our successful The suite RFPs provide balances our the the deposit perspective, a adding us implementation to dedicated and several sizeable treasury a team all relationships, service their the management through insight robust seeing managing with working to system infrastructure, With [lending] account a enhanced solution. will deposit manage the with and actively the network deposit services to effectively. in-person, of and detail clients can treasury Ag and maximizing

to to results in people, led on to start the services these and we Focusing instrumental been XXXX. our areas produced infrastructure, have And XXXX.

work to deposit cost of funds through growth continue to effective management. franchise and value We drive

decision Stiteley, performance. remainder our We on it priorities Chief Financial basis these financial and our for use turn over update driving Glen Officer to to year. like business And for Glen? will the making I'd throughout now, as the of an

Glen Stiteley

Matt. Thanks,

the funded broker; year XX, see the sheet strong with close X.XX% date assets in CMOs, and net November are has $XXX since has mix interest to The core continue funding. funding as that and loans million to to the basis subordinated we balance being two continued banks When serviced aggregate XXXX. wholesale on have, started complement in the Slide being duration the investment net growth advances, overall a a sold spread FHLB to our funded called to core of sensitive asset income The well you in is million and million as in leverage Turning four Strategies with on year, we very strategy is funding and designed strategy. X.X match are debt totaled mix and a [today]. basis. added assets muni’s, X.X and

an quarter, every next will determine to meeting leverage evaluating strategy with we in upcoming be As steps. ALCO the

interest margin, to basis to interest cost continue XX, X.X which on income excluding Turning of PPP million points recovery term X.XX% to overall during non-accrual Slide improved XX continued participation, net the funding related a improvement in due to the repricing, to in which include of expect from X.XX%, and XXXX. funds loan we

Slide XX, is of you'll allowance which for breakdown to from the the see flat sequential overall Turning our quarter. quarter, the

basis XX.X and quarter quarter XX, the a million contributed X increase Slide to increase to Turning in loans income. the fees average servicing during in and increased serviced in sold the non-interest point

the accelerate we entirety first XXXX, for QX a technology in XX, quarter into they XXXX. budgeted project the were Slide of to originally Turning

be those XXXX. of expenses non-recurring for the will remainder So

I'd shares, Moving pleased program weighted earlier, program buyback XXXX. average a our which shares is up we price at current XXX,XXX results value $XX.XX, open as noted We in to extended continue during repurchase the the additional like our quarter with the be And very to book of well. now, during XX, as by questions. tangible XXX,XXX an Slide Tim under purchased to of and to quarter

Operator

[Operator first go Nosal Instructions] with question Our ahead. Please will Piper Sandler. Brendan come from

Brendan Nosal

good you? morning, How everybody. are Hey,

Tim Schneider

Brendan. morning, Good

Glen Stiteley

Brendan. morning, Good

Brendan Nosal

then it's your thoughts you off start on time leverage you just over strategy, I on to detail know what can and Glen, And much quarter, kind any the each there. but appreciate potentially of period? just the trade the reviewed under see all how Just here, thoughts added getting? larger

Glen Stiteley

set you year. do, over we million know, to Yeah, initially a Brendan $XXX know, you out

in that of quarter million it XXXX. we've spacing out XX the we quarter. So, a been And started fourth

know, you to we'll continue every quarter. evaluate So,

work on the you know, averaging you it time, concept. know, almost not, So, you we're know, all putting at $X one

sometime to So, to do. again, kind at here, we're we'll up we want going decide and look of coming what in here then May,

So…

Brendan Nosal

XXXX. side of then outside since have that the loans And loan on Thanks. the I think helpful. growth quarter the things, is grown maybe That's first it. to Got moving of PPP this

So to and the PPP environment to outages was two loan loan is your from demand just for versus any your grow also any appetite and – your talking portfolio to and customers? impact why round ability production, the then about selling there of Ag

Tim Schneider

Dave, maybe to I’m I follow-up. closest to speak because volume Ag PPP to on going the tackle it. I'll guess, Dave that. call to he's

Dave Coggins

XXXX. volume see the in we the were able bankers were growth think we lot wouldn't continuing we most did Ag think Difficulty] a Ag and our we PPP. from potential non-customer customers, three Yes, the And heavy to of loans, but our on side, much of in attribute the – I space to Tim, people service add the [Technical I that Ag – of I XXXX to some PPP majority of our added growth the that

So as been as well non-dairy focus seeing rest the that's we're opportunities and our to see. well, – we've that from the where as team of able

So of that's come is growth where likely Ag most to the from.

Tim Schneider

respond to your the Brendon, on sides both know, now. And house to are you right of actually, rest robust question, very the pipelines of

are challenges a surprise bit commercial have days the I guess, here days us. of couple unexpected we a we next One potential payoffs a to Canada's in foreseeing do the is, to of XX XX on is which of side, the

and to, our rates So, muted next of we'll customers. rates the our And utilize more that a the quarter, participants the very participation know, some the pipeline again, on interest may but the little is network, interest long-term be commercial on this our fixed provide that Ag continue strong. side, that side, you bit

lately. right strong liquidity say, for given deposits And bearing keep would I strong Although been a has that now, more we've little started well, probably balance of our to position. really bit our sheet non-interest as on pipeline

our well of composition So, we're sheet, of balance feeling some helping the side] good that overall hopefully [right about them. the in as as benefits

Brendan Nosal

taking questions. for the Thanks Fantastic.

Operator

with Rulis will go come question ahead. from Next Please Jeff D.A. Davidson.

Jeff Rulis

Good morning. Thanks.

Tim Schneider

Good morning.

Jeff Rulis

already percent of dairy review is that there that the – done? that's portion The completed you've is a

Glen Stiteley

we're I Chief Jim, Yeah, Phil, and me wrong. to Credit would today. Officer wasn't if can join probably, say I'm our Unfortunately, able correct John, Dave, you

the XX% maybe we're think Ag way of I our about through reviews.

kind metrics of end a quarter. SWOT before majority yet. migration of the So, anticipating be to in credits done the we've get quite got of ones least those, of credit through at Hopefully, will that second we're the any the

Jeff Rulis

And returns, move out I you non know, positive of mentioned non-accrual. X sounds anticipated you some so, some like, it million think early, to to me or excuse

So, the process you I positive migration, mean, of want rush the get guess through in news I in don't of here, the credit but review competence I underlying good entirety. terms to that's as continued

Dave Coggins

Jeff. credits, balance here I one and move movement continued see those as just Yeah, in second think the through you'll quarter we of those, including some the mentioned, you

Jeff Rulis

of a the over then liquidity [funding] little Okay. I of and maturing quarter, XX Excellent. Yeah, those larger funds, in the plan like the it got I looks bucket you've management kind second in? to million, ultimately, a margin broader wanted kind a to at I guess, kind CDs of for the, and a Thanks. you boost think account core margin do question, to that a circle wholesale, it's you but see core give us Glenn, recovery, for margin don't settling if interest kind of sense if the of we question know of just the from for an where take what back

Glen Stiteley

Yeah, thanks, Jeff.

think, we're every you margin we're probably know, over going I You at know, seen no place is bank. you And different, I that know, still all, probably all you think mean, know, mean the just of know, know, I you throughout you wholesale you and got we've repricing, margin really squeeze loan is quite some see funding I bit this in even book too. CDs a though short to our year. the

So there's amount decent still quite a that's still down. repricing

still there's of bit going going So, a I be forward. downward little think to pressure

that's in – think going have to recovery that first quarter I be quarter. from of we'll piece you another interest second the that the mentioned

the So to bit down. going of know, margin think But pressure little offset going we're some help see going that's that going I pressure. to a you of on to, still that's

So…

Jeff Rulis

maybe replace any the board that last kind size And Glen. the thoughts on board? end? housekeeping, you one going Thanks, or any that of of noted two retiring, to on expectation seats a just Are one,

Tim Schneider

this going short got is we more. a we Yeah, contemplating a have do and At sit to We've list [status board, this Tim. join potential point, well. but we're that, that candidates to look as couple be quo], of could our we'll

in the years. three think more retirements two actually, next I

So, got we've pull prospect to sort we when need to. of trigger list the created the ready and

Jeff Rulis

me. Great. Thanks it again. That's for

Operator

ahead. McEvoy The with go Terry Please Stephens. next question from come will

Terry McEvoy

Good morning, everyone.

Tim Schneider

morning, Terry. Good

Terry McEvoy

Question, tells thoughts Matt the over you probably And areas the investing next technology your where about, run expenses, what in it it's as expense Glen, then relates that are bank? rate but my couple the talked the on gut strategy to project, me across the quarters?

Matt Lemke

And we a know, that just projects, roadmap. technology step a relation technology digital as changing in know, really it's Terry, technology our overall you're a know robust every back. real decided to is you you into to to really, Yeah, day. around strategic plan, want step just, take and, I a as you strategy as we aware, ties Develop think, back take well

So, the but out to spaced that throughout year, first kind to know, done of we we had the you in do quarter. get decided planned it

So that's why non-recurring going forward. it's

So that's that's what related to.

to rate, other expense talked expense we're think we kind run still you In be on thought what the for turn we know, I of kind so. about you comments track we technology levels, fourth the the call, On expense of overall project back that made. I the wise, quarter than we'd

Terry McEvoy

is a drives, educate me of insurance walk maybe tracking business growth, structured? kind Crop if seasonality the and through and just time can there commission's can any not lot that follow-up, a I've as you just of on how what just is spent then, you volatility And something

Tim Schneider

Yeah, I one. maybe can that Dave think take

Dave Coggins

Sure. are we [Indiscernible] Okay, good now?

Tim Schneider

sounds now. Yeah, better

Dave Coggins

every to very of little of There's become program, you cornerstone elements know, of that a crop of component, a well the and farmers kind growing for is our used volatility. use. price. division hail the crop bank. but and of up the crop that's, sign programs by to the commission managed don't insurer, three those drive insurance levels, And yield which insurance for a payroll both crop both we multi- supplement there's insurance that to then and lot crop. year the the And put Okay, federal and have a of go program I'll Prices most out It's and tend Federal insurance two that protect tend are down, a also, does farmers crop that's take There's that phone closer. get the program. that to common a they actually, insurance up

agents in and farmers then Risk bookfair. of So, the change. insurance game, maybe growth much buy we've because because upward to margin tools, they're [Technical tend of They've as The more the program that Management Agency the that a they the some that's also use USDA And those other to the primarily market are in offered just and opportunities don't when they not and it that that form, warrant, times. steady a certain one can in that maybe and dairy as allows to those protections when kind doesn't marketing times added is Difficulty]. more and grow of more volatility our tool appropriate, little outlook insurance on futures heavily the that's or been of trajectory use is in by our margin protect the dictates

Operator

again. cutting is line Your out

Tim Schneider

Yeah.

Glen Stiteley

do wrap Tim, want to up? you it

Tim Schneider

income of to and on seen, that some the it's you've as a what we non-interest guess that throughout there, some out if Dave us. know, an standpoint, I Yeah, pretty in the year components last parse see we commissions for to XX% touched the it. been to I XX% line total and quarter commissions then anticipate statement are you But information, overall, a of going growth seen be nice, I flat the of budget a materialize. our things think can you we've that real adjust think from from continue. we probably solid income the From estimated year, perspective, in for kind and year, source just probably

our know, mentioned, buy them and do to from nearly book, producers As it you us. better, of our even crop we've all buy Dave many insurance of do, and continued penetrate

nice supplement are a great agents a doing a field. and been out nice of the So, in job group

Terry McEvoy

Thanks, that. everyone. Appreciate Okay.

Tim Schneider

Thanks Terry.

Operator

with Our Hovde. next question ahead. Please will come from Rowe go Bryce

Bryce Rowe

taking talk side questions and morning, good Thanks, funding things. appreciate the to, of here. about of kind the Wanted you

all Ag opportunity the the space. deposit mentioned, You within

could and and translate that to, for translating that wanted of feel into you a there what get know, perspective? from you then are opportunity kind the scale into building know, new And what that what office So, look update guys kind better any like, a growth or in of might on larger location, is? you the could of Appleton provide what deposit

Matt Lemke

is this Yeah, Matt.

I'll So, Appleton the with start location.

easy in is, location. visibility, hidden. to easy a It up not it's set isn't as not really to our terms current it's full of to, find. know, location joke service to you get space This for around I well as You for growth one, It's office know, strategically and a as XX, is this future main however, as on it's full thoroughfare which and set us. up expansion in And Interstate institution, service area. like a is right

we you around translates as deposit haven't think brand of recognition terms sort that automatically in visibility, In I can into of know, been this we us. any that to area, any sort well to when what known, and going of growth, it's get help

a got that to more location in and is an them that be to consumer area And cost very and having in of to as a mortgage via with as going I area, to solutions, team a around the alluded immediate know, be service veteran opportunity. some addition seasoned the low very a and like mortgage impact. out drive originator my continuing have seen tremendous deposits, going allows is commercial visible full of to, those of this You well. comments, We've well strong

guesstimate. that opportunistic deposit we means, you quantifying our a for hard areas that's But the of on expect this of as terms to know, that's most us certainly for exactly side. bogey, one do what In growth

in portfolio. the rep treasury management the Ag added, had we we've As terms historically of the to really that a not dedicated piece, individual treasury Ag

expert as partners our state so, low in their cost Ag lenders we about some having agribusiness is the And and throughout deposits, that with can Ag to own management us talk both to the well. get of treasury those and more gathering the calling, a do space of going allow business transaction accounts as

Bryce Rowe

I That's for: credit know great good one, to detail positive the over how a help then of outlook terms know, you Matt. loan of from of but curious feel might they jump loans how and now kind Appreciate there. kind get reviews, credit about kind of and migrate how think just And we've play are wanted obviously that you you curious seen numbers? a from some how migration, number the substandard to in and chunky could, out the of those certain out buckets perspective? credit a really do larger perspective, they, loans there,

Tim Schneider

substandard from to based continue And the we we've think that move migrate to substandard preliminary that some Yeah, will know, continue the those buckets substandard all bucket, I'd some in size perspective, in are you that impaired performing over the larger there say, it's board we will that numbers relationships substandard on but down. a of optimistic do and seen. out information remain of

Monday I of notch loan every performance at review to forward. and a on the like committee, comments, at seems are projected least getting moving started my As process, as it we've mean, up performance handful seen from alluded we're that we've year, based last deals one raised in seeing

optimistic earnings in portfolio some the there. think see we released to healing I very improved going quarter, very and is overall, second you're Ag when So, nicely our that metrics

Bryce Rowe

that and appreciate kind move may That's allowance – recently great, actually you I the possibility great. allowance you think get and when have, talked of absolute smaller. That's provisioning levels And about, the through guys we know, of the here it. balance as year, Tim, the I the

trending So, of you some impact those about, going factors at when can do the think the COVID credit away, the tell play. you when think you migration, allowance know, positive factors, with least know, those COVID, you you see how right about you kind of you of now, at with what

Glen Stiteley

to me one? take want you Tim, that

Tim Schneider

Go call ahead, on you. Glen. I was just going to

Glen Stiteley

Bryce, allowance optimistic know, overall levels and this provision we're you Yeah. pretty year. through the about

the in first but pretty quarter, loss talked be you honestly, a the you think it think year, you or loan could for we budgeted, six know, some to allowance, the of know, essentially low see you allocate, reserves matter just as for flat those. you during of, a know, provision know, year. know, worse That's loans, percentage buildup point really know, could provisions digit to our the we build zero you I watching we a at we up qualitative you it credit we be,

to low know, loss of know, low, needed, it's you kind you again, lower going low, allowance year, so. this dollars, those for attribute and go to see you once down, So, very

Bryce Rowe

Okay, of what front, those to know to perspective about in financial great. on you the a not think only thoughts first mean some that's credit quarter, subsequent in dollars? terms any And on, from more recoveries, how you the one talked maybe but about quarter, the

Glen Stiteley

Yeah.

here loan apply know, a charge balance right anticipate in, May. you now, sometime previous should the to be almost And – couldn't payoff, it's able of to escrow day know, You end, the off. you recovery into money the we really going quarter. to the sitting we that so or there's we received after But quarter we first take be back know, in it April

it's tough have impact that's it's the because recovery. a do what to tell provision exactly positive overall to going levels, going to So, to but it's obviously,

Bryce Rowe

impact Glenn? further any to the And margin

Glen Stiteley

accrual. not on participation that deal You know, their the we talked about recovery

quarter. second touch But, review thing You it. predicted when here, know, And know, happen haven't end have yet, that'll on we happen really improvement exactly migration we've We that know, we non-accrual just go is going really second sizable probably going we probably same accrual of just you levels towards we we've on this the didn't to to is because, the quarter. the got to several, credit that's the anticipate got a in on one you very what got Bryce.

know, definitely to you and going that's QX. QX So, impact,

it So, earlier squeeze we not baked made just the yet. have into comments on I the margin

So…

Bryce Rowe

good for appreciate Thanks the detail Glen, answers. That’s it. Alright.

Glen Stiteley

Absolutely.

Operator

Our next Martin Instructions] Please [Operator question from will ahead. come Montgomery. with Brian go Janney

Brian Martin

morning. good guys, Hey,

Tim Schneider

Hey, Brian.

Brian Martin

been Yeah, questions have most of my answered.

maybe just most the year the I year? of that back guess couple some just I it, thinking year? know, the PPP, balance about that guess questions, Just there's uncertainty over today? picture. to a you this appreciate thinking than I lot to earning Just are you of you guys is I it the on how big the be balance bleed are coming the know on, forgiveness it about color getting of your how less of on accreted share expectation into in, but would a housekeeping next

Tim Schneider

think comments that's my margin there, included in [the Brian. I squeeze it's], on Yeah,

know forgiven here the thoughts forgiveness where So, so. any you quite are we our bit in going the you of is a kind the in into, of think the know, by end being be year. this anticipating, year, we're the dollars on Should really I all of margin made be in old so tied comments to

Brian Martin

Okay, I you. got

line kind sustainability income the about Glen you going just side, how prospectively? just about, how forward? of kind just then that of level we And fee the think know And Okay. of on on, item

Glen Stiteley

You’re the fees, talking Brian? about loan servicing

Brian Martin

to kind of I Yeah, it? but frame however you total, however and you, guess just, fee income want

Glen Stiteley

held we held sale of know, a quite you that at for had the we end year. the QX Yeah, was, bit

in boost sold a bit. that helped pretty so that QX January, we quickly when So, those

of growing the and planning second maybe little are continue to kind probably we but digits quarter, know, bit grow a in more You muted that we mid-single for the year. anticipated to overall,

Brian Martin

you. Got

on guys – Okay. funding know, then on cost you know you comments just there, that kind kind deposit the costs trending you sheet? to, work how transformation of of the trends the just see, And deposits to do what of you of about and or balance right. side continue as All

Glen Stiteley

lower. Lot

based net projection You know, talking about. on it's, margin it's I'm again,

of right going we're offset you able mentioned see we not to in things. So, for are up you which, payer top know, know, our we're we're those not you pay with, markets kind Matt earlier, repricing we're rate the the the know, to only letting, know, as the being in being now, you market know, letting loans you clients, of

So…

Brian Martin

Right.

to a in end as year, strategy have you kind the of know, like? could what far do target get think of could you where the is on cost just of low, to? look how trying you get what you where of get that if you We’re as the you And think for later or actually sense deposits maybe continue as reasonable type any we or

Glen Stiteley

comments kind You priced margin, know, throughout really my into my it's of margin earlier.

you know, see, points, basis year. So, the kind we're know, I baked but the XX a going happen, all haven't like maybe could squeeze going of that what second XX said, of you activity, basis in in down, to point again, really to we half non-accrual the

to to have that's hoping positive us. some we're going So, impacts nice

So…

Brian Martin

Got you.

Okay. All right.

Glen Stiteley

Yeah. I perfect don't a number you Brian the for have on cost.

but is You mix we're know, side to focused we're continue transforming right And, about, know, focused to that. of balance really really what is, talked the the Matt the it on you improve cost deposits the on sheet. as of

So…

Brian Martin

understood. know, go Glen. this on share I then it just as thinking the you Yeah, purchases, – was about the are you the how last the And buyback, buyback, Alright. No, forward just one, here? maybe just got extending you

Glen Stiteley

going know, year. we're, last looking we're whole year, totally XX% that you fulfilled know, at, like to, almost You this we're

a little bit have been volumes muted. So,

they in ours at banking trading, space are think, the are. least I

been I'm year. probably to know, little it's up So, bit continues less, but a hoping throughout that you the pick that

So…

Brian Martin

execute. You can

Okay. Perfect.

you. it. I Thank Okay, appreciate that's all I had, guys.

Tim Schneider

Thanks Brian.

Glen Stiteley

Thanks Brian.

Operator

Ross question Haberman ahead. will from The with come go Please next RLH.

Ross Haberman

guys. them you. of [indiscernible]? I in Are answered. and the of end lot banks June, quarter. of Russell, you question. morning, will like deleted a Good the you be quick have a probably at Thank Nice Most have been

Tim Schneider

the information we're projected included in out fall we going see Russell you cap the see Yeah, from market same and unfortunately. we're anticipating to at again, this point, be the to

Ross Haberman

Will I that a that say, give of buyback [nicer If there]. with you an just you back buy around, will And I'll your I'll opportunity, to endeavor? shares? help guess you lot be see added jostling

Tim Schneider

increase hope to that's with the think and so. advantage in to volumes, of We going I Russell Yeah. know, you the occur, take reconstitution

Ross Haberman

questions Okay, Thank Stay that Most was it. have you, guys. been answered. of well. my

Tim Schneider

Thanks, Ross.

Operator

to any closing I Schneider session. conference over Tim turn question-and-answer remarks. the our would to for concludes back This like

Tim Schneider

improve nearly fronts thank we quarter joining Again, for all expect the everybody solid on mentioned. I want to next credit and us. as We quarter very over had to a continue to we quality

the joining some come to So, second you news for quarter. we hopefully at Thanks to the continued when solid of speak end us.

Operator

The conference has today's now concluded. for attending presentation. Thank you

may You now disconnect.