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Great Western Bancorp (GWB)

Participants
Ann Nachtigal Corporate Communications
Ken Karels Chairman and Chief Executive Officer
Doug Bass President and Chief Operating Officer
Peter Chapman Chief Financial Officer
Michael Gough Chief Credit Officer
Jon Arfstrom RBC Capital Markets
Damon DelMonte KBW
Steven Alexopoulos JPMorgan
Dave Rochester Deutsche Bank
Ebrahim Poonawala Bank of America
Tim O'Brien Sandler O'Neill and Partners
Jeff Rulis D.A. Davidson
Nathan Race Piper Jaffray
Terry McEvoy Stephens
Call transcript
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Operator

Good morning and welcome to the Great Western Bancorp Fourth Quarter and Full Year Fiscal Year 2018 Earnings Announcement Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ann Nachtigal. ahead. go Please

Ann Nachtigal

Good Phil. Thank morning, you, everyone.

Bass, this fourth Chief Officer. Bancorp's us Ken Chief Chairman Officer; Financial Great Peter Knieriem, Operating conference and Western and full Karels, Michael Doug Executive Chief Risk on Officer; quarter and and year Chapman, Credit are Chief Officer; Joining call morning President Chief fiscal Officer; Karlyn XXXX year our Gough,

certain that materially that future get we started, to and Before disclosures are the presentation statements refer contain forward-looking results those contained to could you I'd that presentation. statement Please may today's remind actual subject the cause differ risks uncertainties company's forward-looking to in discussed. like the from to

filings for full the made risk of available a factors. our company's have as on SEC well site discussion We periodic Web as our

to financial non-GAAP Bancorp's and Officer, we measures certain measures Reconciliations and will call. presentation. upon understanding over Great discussing this are for and turn Western's now conference should assist be in Ken? Western Executive performance non-GAAP Karels. measure and be are today you non-GAAP measures Chairman such results to With it on not Chief Additionally financial referenced trends within only as the Great included to results. provided Ken appropriately relied of a let that, me actual References

Ken Karels

of the and deposit year. loans resulting originations solid, the of remain net of Adjusted strong quarter we for accelerated focus morning million Loan Good XX%. Net call. quarter margin or on an and thank increase an but to X.XX% you at $XX.X was this increase growth per the for the for declined year. past for income joining $X.XX slightly share, as X% interest in prepayments X.X%

Profitability strong at XX.X%. exceptional but for common was some Our with expense. OREO was elevated efficiency equity quarter, return at our slightly tangible due to on ratio the remains XX.X%

Peter Chapman. our over on our Pete? financial Officer, insight results, call the fourth to like Chief to more turn Financial quarter for Now I'd

Peter Chapman

Ken. Thanks for joining Thanks everybody. And us. morning good

which expenses also controlled sales driven the a by point parcel large in quarter increase income in gain the million range million prior processing Outside credit by for offset moving move OREO was offset contributed of a a of increase items, line in of in net would consulting basis prior $XXX,XXX by seasonally in net to and increase reasoning loan quarter in by revenue stronger coming for a was And a A quarter of in X into X Non-interest basis of margin to mortgage interest partly this quarter. were partly decline, expect over basis and a the would to to we expect and as $XXX,XXX income on quarter. a reversals currently. decline increase was quarter-over-quarter driven decline X stronger in and points quarter, $X points in would OREO forward, a net non-recurring we Adjusted items a on to interest was sale employ amount close $XXX.X Outside the was the status, the $XXX,XXX points in increase basis attributable loan to non-accrual the from item $X.X based claims a in increase increase more professional to with benefit during $X.X point to which these increase a during adjusted charge and million were an this basis due costs $XX.X due $X.X quarter. interest was from X healthcare and by interest by prior in also not basis million expense million, the the prior reduction XX $X.X million, million quarter. card mainly deposits for for following June elevated be moving in increase X.XX%. margins expect revenue. yield. on increases which which by quarter The purchase XX quarter. driven margin Looking quarter. interest point remaining also million these OREO quarterly $X fees expenses swap reoccurring elevated $X.X wealth reoccur quarter. quarter. higher one million declined a net NSF the quarter. onetime our lower X.XX% what seasonally share increase The expense million were for down declined revenue, service with cost We were through decrease income management the LIBOR These with consulting and was Also from compared These well commercial have and an the point up Non-interest increase sole items $X.X attributable in stabilize prior two to to current X driven were a the in quarter of were the to next million by was offset volumes $X.X benefits is income million basis loans interest $XX.X not well. fees we income X% from margin which this contract data the the costs

now effective Bass would rate Finally, balance on we that federal comments to December tax following move the moved to and the the more in our over a approximately expect to sheet. I XX% quarter in rate for to down in Doug phased tax fully will pass quarter.

Doug Bass

everyone. Thanks, good morning and Pete,

quarter, we origination saw good September a the activity. During

continues markets real October. in Arizona and reflecting moved million the category by open Growth made remain healthy loan result across sector. and estate of fully in Wichita, several a XX% Iowa, the metro industrial Arizona, Yuma, as Rapids, robust a quarter. through into all $XX However, of declined Pipelines to two the and closings Good commercial be downs supplying by was new commercial in pay loans and Cedar operational. scheduled production in with which commercial most split estate now non-real XX% and are real large Nebraska Commercial progress Kansas, offices growth. the estate Colorado,

have hire commercial of each further in in We they looking and are markets. each bankers to those office

New branch in opened offices in Cedar Arizona of year. opening in December Iowa Falls, with Scottsdale, North this August

place have already at locations. in We lenders these

mid-single 'XX, for offices all to As projecting being into in We we again execution new year growth plan loan feel are look fiscal the the range. due in pieces be opened. place forward are this to of digit we

few XX markets onboard metro commercial producing. hired have months the all which are key of new We bankers in and last over

evenly that Deposit pipelines as Our approximately the growth was indicate C&I public of closings loan bearing the million million deposits quarter in current was are The X.X%. well during expectation. categories relationships. other early offset business are consumer the stages remainder split quarter between well, or Growth non-interest growth in as in accounts operating increase growth fund non-interest and and first $XXX bearing indicative of seasonal by deposit growth outflows. and X.X% of in the $XX with the in loan

rates inflows with as will their seen into flexibility have customers that with maintain to stronger expectation the continue cash accounts look to rise. maturity non-time We

added been cost not as they utilize to than during deposits Loan have funding, but Home quarter. Federal have effective balances Bank We continued most materially broker the to have

to will Gough, now us the quality Chief call Michael through take our developments. turn over Credit who Let's Officer. asset Michael?

Michael Gough

charge an Doug. Net Thank of the although number seen have credits. satisfied slight offs quarter small $X.X of metrics million with are for quarter, asset well movement Overall decline basis basis also on during or average the were in you, still we charge we points from a annualized we quality XX the level. in a XX the for year basis points basis XXXX. very XXXX of XX manageable at were down offs a loans points for know And

basis Our loans allowance percentage least June with consistent and total the loan with XX XXXX a as quarter. points coverage of losses for was

comprehensive a credits cattle Our of at saw watch portfolio million in XX marks to quarter, points million value includes related $XXX $XX dairy fair and purchase of small XX number the long-term June Compared accounting increase to remain and an which downgrade loans. basis loans. on total of coverage of sound adjustments due loan we credit our the to credit

the million calls. renewal normal increased watch million. including for discussed with these with prior by been and comments through XXXX depressed associated in consistent and present has closely. do prices for see not led previously more monitoring potential have this stage charge-offs to earnings have ag credits $XX.X a quarters, the routine the OREO, of moving quarter credits now which producers us with milk material to credits the for operating We past at for number We've cycled fact declined within that we Substandard But the needs by at all worse-rated which property this portfolio. $XX.X

operations. to are for similar We to XXXX results green expecting be XXXX more

current state yields market and prices, related of budget higher the Given projections.

discussion point their farmer at for some but had forward prices, around tariffs, We impact at do XX% our concerns we XXXX. continue on to downside trade monitor actively production to in this potential borrowers soybean in provides Prior have recent higher profitability protection. not around significant drop the around time, of the levels, hedged which

upon back to to closing continue remarks. for closely potential and Ken developments we the always, profitability. that As let's impacts monitor will call turn some With

Ken Karels

Thank you, Michael.

public base, increasing share value for core X% peer with deposit very per costs XX.X%. Bank share and our to increased performance per XX% X% earnings this increasing as pleased stabilize. to has Western our our a will for are with year only book our group. all company basis in our earnings tangible banks XXXX, a Deposit with compounded compared Great margin rise strong expect past from We per we listing on Since share adjusted

you and And interest is to for questions. continued manage this will our Bank. ratio now we sustainable. open We Thank current efficiency Western efficiency up our that ratio your believe call Great in for continue

Operator

you. Thank

ahead. We Arfstrom Instructions] will question Capital question-and-answer Please First from comes now RBC Markets. [Operator go with session. the begin Jon

Jon Arfstrom

Thanks. Good guys. morning

Ken Karels

morning. good Hey,

Jon Arfstrom

some Are a maybe bit? Let's And you're that us satisfied carved guess little bit, surprised with you margin loan you can cost that just then, the of this give kind with itself all you margin, increase expansion stabilize margin if like margin LIBORs if but yield performance? think the the sounds the I It the deposit Pete just on by at you. a and out quarter? for thoughts start and reverse curious also

Peter Chapman

the quarter for disappointing Jon. Well,

decrease quarter had things us. $X the not of million through obviously couple of ticks is Usually the that, this the a but in us, of grand a big Obviously, Unfortunately a was the dive thing mover write-off it said, non-accrual for along. things a which we quarter accounting really there. in big is elevated. we've not margin. a Light just in number As for scheme huge

so prepaid disappointing. items then, that were Jon. elevated we had also we those couple well sort and as two of quarter hadn't on bonds those of the So And amortization through a that

a So overall disappointing one. was

I the to -- interest So forward. expect expect next the investments next on at quarter quarter stabilize and more also would moment see margins the investment accounting line far yield non-accrual we with as as increase normalized there and can moving being without we'd significantly to

Jon Arfstrom

Okay.

XXX thinking good that some potential expansion So a base there? you're is with from base for

Peter Chapman

good a line on as new hitting deposit compression think keep seeing a Yes, Obviously, attract is we there sort just certainly in a costs We of that's obviously base. the which bit bit consigning well. mid fives those having well originations. low and to as but We're do. of little we'll little not

Doug Bass

also think Doug. Jon. is I This

rates. loan pipeline had the probably -- we that back should every in to We're probably that weighted rate loan as that average commitments rate had to six to fixed some agreed week fixed a months couple book month. locked for the new happened and plus track through origination work some continue of a quarter the situations closings continuing increase rate of continuing to just with average Some the been of and up or in in on were

Ken Karels

Anything else help things side Jon, NIM the we of you from can with. apart

Jon Arfstrom

No.

well, unusual term longer you am I here you questions longer others term I'm do margin some kind and but your think kind mean that feel expectations. hold not the have this to like I margin I compression, but just of see fight fought can just of this have of sure as good guys you about it's range? curious

Peter Chapman

higher Jon quarter this on we're obviously the side helps I'd progression certainly bit a that there a been be expect at yields few the looking so as this and are Yes. more reinvesting costs and on that We are well -- things over swap income quarter to we've can in things also we portfolio one that's to of as little up but lower there forward do as side they think do. of things and was been get going deposit the well. things There is a margin quarters. last investment similar well couple Certainly high going of we

So it. yes, we've done

Jon Arfstrom

Thank right. guys. All Okay. you,

Peter Chapman

you. Thank

Operator

with The ahead. next Please DelMonte go KBW. question comes from Damon

Damon DelMonte

guys. morning good Hey, today? How's it going

Ken Karels

Damon. morning, Good

Damon DelMonte

Great.

Just the $XXX,XXX, bit know I had want to a around OREO that little is expenses, costs, you something reasonable. about you think I the $XXX,XXX talk elevated said level

we forward bounce benefits back that quarter for with see or maybe down of back good in which were run you to go salary us that if quarter? So a a this and is out rate this would

Ken Karels

Yes.

I'd pretty that of but Next about quarter good year-end there, you're in so we'll XX.X. next sort gets of, OREO, tick, inflationary base of sort of the that from and quarter that back said X%, merit that back Damon, expense you think a you the too say I up. cool grow outs XX so little March X%, base. tick, if of bit million maybe not sort a look the you an our if sort are up sort for just quarter at few a at in average wise, items it quarter of a over -- through ins of an go sort for a you so We've of slightly you There's much so of but if OREO, $XX at sort if up excluding

Damon DelMonte

a Okay, the there data was is And the think great. expense I you or with mentioned on it maybe then, like recovery? vendor processing onetime

Ken Karels

Yes. Recovery.

thought. a contract quarter a better that back through -- two we -- had and a little a if on remember Damon what out work you or had there benefit we we and out, a accrual, better we so Just little just came close than than

Damon DelMonte

go I queue. Okay. can into Thank had. back the That's all you. I

Ken Karels

Thanks Appreciate Ken. that

Operator

The ahead. with Steven from Okay. go JPMorgan. next question Please Alexopoulos comes

Steven Alexopoulos

good Hey, morning, everybody.

again. on NIM start the to Just

assumption the outlook the in for be rise NIM stable costs that? here. regarding relatively the that So underlies deposit the to for What's

Ken Karels

as We're at that Pretty consistent we've last stable the an have seeing seen it's think seen with and a we what four that not see but come acceleration you in numbers the increase. pressure quarters, Obviously, through Steve. that's what stage. been in we've as or seen three I this from

see Steve, we XX% I the happen. that see really up that getting I been do and think to actually loan what think starting quarter. the issue beta beta this last there has we're

of quarter would as other increase the issue The is much LIBOR last didn't this course as normally increase.

around change to that expect we So too.

Steven Alexopoulos

Right.

at mean range. costs least the for XX to I basis deposit two up were quarters So XX last this point

XQ? You beta think the loan can actually match during that

Ken Karels

I over this don't surely increase match it, it quarter. can it think has it last can what but

Doug Bass

I would are also, think we well well investment, have little on Again, quarter Steve should counts And next that hit also as bit next I and in and this to up yes, an this quarter. back a deposit, as lower mean yields up yield do. increase plus also investment one to compared date this

Steven Alexopoulos

with this see, pace deposit understand if I we'll for I mean year, and follow hold out the mean NIM as next quarters NIM look stable of about your in going we question costs maybe on time, the explain just you over of over next Jon's that? couple to how sustainability could up up

Ken Karels

Yes.

I think couple you some is of I Steve, on at it's that. things, think top portfolio our look variable of a with if adjustable XX%

that on well. of side, go LIBOR the LIBOR, And pressure, stabilize expect quarter. some then with do the spreads with net hope be would that benefit was So that there that start we're stronger through sales, for while certainly loan if to there's in an slightly sort swap in income each We well. we forward I have think would as back to certainly us going as increase depressed origination quarter pool. that certainly Certainly some interest helps the seeing which

Steven Alexopoulos

Thanks. that Okay. deposit that with And migration then, you're product? to in into $XXX just starting this growth time or finally the of quarter customers see is the of your of million average, new current stage on money essentially a

Ken Karels

bit a Yes, both. of

So are a things. to the and I'd that's side, money, side of probably it say money business the on there. yield most happy deposit little side, the and People still migration get bit probably the it on in the of keep on leave new market more of is time consumer flexibility

Steven Alexopoulos

questions. Thanks my great. for Okay, taking

Operator

comes next ahead. go The Dave with Please question from Bank. Rochester Deutsche

Dave Rochester

guys. morning Good

you that NIM on just back Sorry so but that baked the the and to NIM you belabor expect here, acquired interest reduction regarding bounce saying to your reverse loans, should were that quarter assumption? this into that that's

Ken Karels

a by increase would could I Dave, wouldn't certainly to in basis it stabilize maybe to that that maybe example. expect could also, increase it bit, bit little the but range expect a add to I'd No. a for X $XXX,XXX $XXX,XXX point little and points increase

Dave Rochester

got for in rate view your longer the then, what hikes? have interest And many then, How middle And your the more the term rates on of NIM assuming I it. forward? guys are Yes. where's you curve going assumptions? for

Ken Karels

what we're much honest. just two going is to be Bloomberg's we this more three [that] here considering year think year what [ph] what maybe pretty are market's I one next the considering to

Dave Rochester

you Okay. the that? for quarter? And are mentioned What bonds impacting for the premium was of expense securities this prepaid quarter yield. securities And you the next assuming what

Ken Karels

bounce I by basis the the Look hundred probably but the the have I thousand. next I basis probably back see X expect there. to increase hundred should of don't don't and have some point amortization, you have so decent I impact additional was a XX a securities don't I couple don't of couple to would premium. fee points, have their days, yields quarter -- a

Dave Rochester

meaningfully yields higher low like Were be seeing and move potential reinvestment see you rates to really over continues And do that you that it securities seems to here. a time?

Ken Karels

[ph]. of we would that expect reinvestment rates above move do. time] well Yes. X X.XX, We're yes, sort high [over to at We so, seeing

Dave Rochester

Great.

credit lot given the Just idea the remain about a you give provision color from that one said appreciate you that Really thinking just the talked one you if sound guys the how everything you of can, I some are segments low backdrop. credit and positive here on about, losses that given to fairly guys on last side. on you of

Doug Bass

Thanks for the question Dave.

of all, time. not the at point called are say First certainly I'm in what accordingly. my exposures your and would provision view I we've problems think right. I are, the we think the increases exactly wild We that what any summary out is expecting is this know

Ken Karels

Yes. I with that. would agree

pretty we're year look and there. next pretty -- look think at kind I being steadier year you this much pretty at of can

Dave Rochester

Okay. guys. Great. Thanks

Operator

Poonawala question America. go ahead. next The comes from Ebrahim of Bank with Please

Ebrahim Poonawala

guys. Good morning

So one, then follow up have I make done question on to want margin just the light sure base.

we've So discussed XXX. it? XXX as swap you reported fees with way And the back to points basis is come a the think about expect everything X starting point? else that Do we that to then and

Ken Karels

points reversal the The being X Ebrahim. basis interest

Ebrahim Poonawala

Yes. I guess XXX? about to the XXX it right is way think or

Ken Karels

start would start the can't we the -- sort I XXX so We at stabilizing around from but range. of XXX, as at said there, certainly to earlier XXX

Ebrahim Poonawala

swap And Pete Okay. quarter? this fees was what that, contribution the and

Peter Chapman

Minimal Ebrahim yes. as far Minimal, as…

Ken Karels

normal. It's from down

Peter Chapman

Down probably a from down normal. two or point Yes. normal from basis

Ebrahim Poonawala

to next quarter you that expect normalize in And that XXX…?

Peter Chapman

Yes.

You better did look quarter. in than it's Yes. what but past a quarter this looks it lumpy pipeline closings certainly business, the for

Ebrahim Poonawala

obviously nicely. just capital Understood. toward, up moving Helpful. And quite building are

M&A. have environment pricing I'm buy any at the little terms if does you at of in previously to looking pullback the more acquiring also You've active talked wanting current can do make back you the appetite levels bank? remind your a if stock to just number deposit of you terms one, us given stock, in in about wondering and

Ken Karels

answer too. Yes. this I will Ken, here

will that's But million stock authority we've especially the that. definitely of bought, the into roughly attractive look much So market in with stock we to we seen price $XX around authority, something buyback we'll to that continue more that's have obviously have have order pullback look do. we although telegraph can't and

pretty acquisition side of cautious. we're On activity of lot there's a the it, on. going Yes,

back As we've call not high the sure seen that bank pulled price in pricing your any stock I pullback last mentioned expectations at with was the whether have two. seller now

obviously that's I deposit at So something aggressively take cautious opportunity as at there's to we we would be had that. some we Very very the only going interested opportunities we're look brand where very, a sales in to would if that. say do look

Ebrahim Poonawala

you is TCE, we targeted quickly And is there risk want think a them it. on in? Got ratio, base, should where about capital it XX to that, remind, manage

Ken Karels

is the certainly an comfortable Abraham. higher If TCE up, acquisition Xs. sure. needed down opportunity we'd Yes, be drifting into we moving came that than be to

Ebrahim Poonawala

Understood. All questions. right. Thanks for my taking

Operator

Please O'Brien Okay. The comes next from with Partners. question and go Tim ahead. Sandler O'Neill

Tim O'Brien

guys. Thanks

this those? kind they? on Just the on little one were a give What you were non-accrual to credit color Can question of what they, loans downgrades quarter.

Doug Bass

are we're for is an the been that was the of cattle a quarter We buying lot for identified in that's as route one the but most operation on where has as that and conservative credit the majority simple somewhat was. and that Largest one. where of time. think from. some it's it operation appropriate and a and selling factors of place it problem There just not This came complex in taking cattle, it

of the accounted geographies. deal in other The one land a the about fourth I of for one believe an was ag increase, that

Tim O'Brien

All right. Thanks lot. a

Operator

Your comes from Davidson. with Jeff D.A. next go Rulis Please ahead. question

Jeff Rulis

advertising have a there Was that in Thanks. sequentially. like something guess Few my linked goodwill was that of or there I the but drop Good of seem run that quarter? rate lumpy quarter been quite was lowered kind in sizable morning. a answered, bit intangible the questions that

Ken Karels

checking numbers kind our head shaking drop. it whether of We're the did worth

So…

Peter Chapman

X… do from under you sort gone to Amortization, Yes. X.XX mean, just Jeff. It's of

Jeff Rulis

goodwill nothing the suppose, of bit the I guess up sort that question double you you intangibles gather was run a can is I on it. end. kind number check than If and your of lower rate, But

Peter Chapman

that. on usual. nothing Nothing We and you the out as Yes. of back can to check But, Jeff get usual.

Jeff Rulis

then, moving sharing of expectation type OREO, property, just there? on, expectations or right. detail that And that on follow-up then kind out on that there guess I the and a it maybe All what

Michael Gough

it, expectation that is sure in OREO a of the property in each we for that proof. get of get and Put as legal control once of We type receiver years of which Type question. your is other. we've with legal pursuing this a now our had We've This got Thanks a we it Michael. we the get number a can hotel of get concerned instance, had we're center that's all is property. at stage make That's moved place. where which we've convention for said is The We'll control. particular process get sold. owners more in action couple against it place, We'll priorities fine. of the are. so with it the

we control sizable, XX how than get as OREO. soon less because in history going culture to speculate. we're I but that a is is and we've property parcels larger what Our and of we're we still know our one This look we so see had disposition OREO assets do total as upturn. we get at don't and or moved that's approached think to when with not hold We good we're OREO. other and is an bank, back, can it hoping obviously that the have We being OREO we historically

Jeff Rulis

Thanks. Okay.

Operator

from question next Piper Nathan Race The with Okay. go ahead. comes Jaffray. Please

Nathan Race

morning. Good guys. Hey

Just of a Doug seeing kind of curious growth, the we what loan quarter question loan so point gives seeing of get offs year. on to in at that on what utilization on you're with and maybe line commercial X% growth customers forth? to can the on that in you're terms thoughts confidence and the next X% kind your Based you what to get in just this pay

Doug Bass

Nathan. Sure,

couple part and million. C&I a very question the partial your had that I large we sizable had that and the of on payoffs, first -- about on sales think had declines off, some $XX payoffs first some

been quarters loan have point financing sought Secondly, a flattened long-term we in rates rates, to and stabilization when they increasing seeing little recent, in very real and what ties the here of half been October will in think experienced relative couple we're the three component a get And NIM volume for are then, new I number people the transactions very permanent of half estate trying and think And the the into new the to a months near four based we relative for and case start pipelines you sort as closing push a material last that a some We've a and of to the scheduled to track into term banker as consistent got both with to of which have we've probably offices, a that income couple of come a implications in good pipeline the to six to of also the create swap had lot dozen weeks the large projects has When are that couple origination basis side, it's new with comments running, going, construction activity, and closings. long-term I on quicker offices. up to in the so. lock have projects swap then, more try quarter-to-quarter and so well of on income. the long-term to first sort closing ties activity get NIM create totals the markets. stabilization albeit

months that be will for for of board here their and closings November, which are and we've some the for two going closing. on got been think I four offices, two October about closings the offices in first They've material closing. to of first those happen

reasons we the I on So confident think the several there's in near-term activities. why feel here based

Nathan Race

great Doug. Thanks Got That's it. color.

year the payoffs calendar down it seeing quarter So based somewhat sounds bit? in or so what a far on fourth you're coming like

Doug Bass

been doing rate are estate mean payoffs can assumptions. a real have the we've tracking don't are scheduled moment, the a Yes. projects large into expectation as the per standpoint performing the of get projects it's And borrower do very that quick anticipated We markets well I long-term to and happen. always that well desire QX and fixed I as involved to caution that lot possible. at on construction those in the moment. but anticipation that's think at I

Nathan Race

color. the Thank you. appreciate I it. Got

Operator

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

Terry McEvoy

Thanks. Good morning.

line a with that this expenses $XX Just growth? discussed of are earlier? are have expectations into terms production in specific just dollar number that maybe and offices, a follow-up on built in targets new million that for in initiative And mind the was the there coming you loan

Doug Bass

and and side, and but million on then the by modest months all given expense to the number lead expense per ramp-up the to yes. some market. per Those On of $XX revenue in brought probably expenses are occupancy. varies banker by just range in four were salary office expectations to typically expense then, lenders, $XX million six production production the it relative And based

new bankers months. from We in when new good the to talk anticipate we'd last in markets markets, in of some traction do So other are new eight about those Denver. which are we net four the that XX the six opened two coming

Terry McEvoy

you much. Thank very

Operator

concludes question-and-answer disconnect. for you today's The presentation Thank has session. now This our attending now concluded. conference you may