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FB Financial (FBK)

Participants
Chris Holmes President and CEO
James Gordon CFO
Wib Evans President of FB Ventures
Catherine Mealor KBW
Peter Ruiz Sandler O'Neill
Alex Lau JP Morgan
Daniel Cardenas Raymond James
Tyler Stafford Stephens Incorporated
Call transcript
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Operator

Good morning, and welcome to FB Financial Corporation's First Quarter 2019 Earnings Conference Call. Hosting the call today from FB Financial is Chris Holmes, President and Chief Executive Officer. He is joined by James Gordon, Chief Financial Officer, and Wib Evans, President of FB Ventures, who will be available during the question-and-answer session. Please note, FB Financial's earnings release, supplemental financial information, and this morning's presentation are available on the Investor Relations page at the company's Web site at www.firstbankonline.com and the SEC Web site at www.sec.gov. Today's call is being recorded and will be available for replay on FB Financial's Web site approximately an hour after the conclusion of the call. participants placed all mode. a time, this have in been listen-only At call questions for be the The open after will presentation.

not forward-looking to federal During put make filed this the performance laws. SEC, including risks other statements. other the is by more results cause undue contained as uncertainties comments may subject All security recent FB update and in Many to any Financial's with which in control constitute facts detailed the XX-K. most FB risks presentation, implied by FB Except or forward-looking periodic achievements FB or forward-looking statements of this expressed beyond result Form reports and FB statements listeners and Financial events as or A predict, and statements otherwise. are a description presentation FB forward-looking future of or current are of and Financial actual on forward-looking revise to reliance to required of statements. any these Financial Financial's are information such results or contained disclaims Financial's factors differ ability obligation may materially from whether under law, to such any new such cautioned and

financial In measures the GAAP FB earnings and Financial's now GAAP Regulation over turn measures as www.sec.gov. include site in at comparable presentation Relations and to to are SEC's on on Investor G. the Web supplemental of CEO. presentation addition, these the Chris reconciliation page measures the most certain which available morning's this SEC to and at comparable remarks like a company's measures President Holmes, defined the A I Web site the release, and by Financial's available information, financial would may non-GAAP www.firstbankonline.com the financial directly presentation non-GAAP is of FB of

Chris Holmes

quarter the of Officer, of and Financial [Technical our FB today's acquisition, in several team review results of interest and financial quarter, branch by your XXXX. delivering on mortgage, by us James quarter, results, decisions analysis first in Ally, I'll first for followed the turn this key We will thanks Financial. our I'll in customers financial FirstBank our on and highlights results, question. integrating good review Chief difficulty] our over most our accomplishments you, who hard way. with your call making call additional this to the provide our but appreciate Thank all, serving excellent morning, to the then some Gordon, On for joining our call,

by strength, And our core on the the the to deliver $XX assets the are the course associates Our list S&P strong Community and billion for U.S. Market of the at the Banks coming over only time. Best Performing we year, XX, and number were for straight between billion in will third $X continue bank included and list. making the Global Intelligence, of in shareholders Tennessee returns

credit on margin, our themes delivered quarter, growth EPS our yields management. in to an earning and assets. X.XX% and adjusted four realignment, capital growth strong first, on quality, a deposits, want adjusted in an The we exceptional common between fourth, profitability $X.XX the quarter balance by performance delivered on that and and equity of for the driven of increased and continued I of XX.X%, seasonal share. This fundamental This assets our on return tangible average highlight mortgage growth adjusted return performance, our call,

recently transaction update on an you and give integration. the I'll addition, closed In branch

growth target over slightly the First, growth XX%. over covering XX.X% growth to balance our loan long-term XX% quarter, margin, our and with a we sheet delivered of solid fourth annualized

and loan growth Memphis demand metropolitan markets. markets, our Nashville We and in particularly our driven footprint, strong quarter's see our across this continue by to was

on, for a demonstrated we later we their our deposit about seasonal public have that over enhanced will mortgage being around long-term first customers Customer credit markets are quarter. $XX XX.X%. approximately was deposits by robust credit worthiness growth the the demand and we're delivered the that Backing growth XX.X% This taking was time. have customer turn out million. from million in approximately with of annualized credits of we As funds growth, we we our in get those number and good feel deposits escrow and deposit of cautious increases cycle numbers, $XX not but away would

front the continued continue last We the come see frontline of our deposit as on year's coming maturities and that over to hope from campaign our in. improvement first to focus quarters deposits on gathering are

collections lift fees. Our impact non-accrual increased loans was deposits from X.XX% of to sale our margin, total for to saw X.XX% the the loans net of the excluding held quarter. guidance That loans, offset quarter. contractual interest core At our of we in on and largely this for X.XX% of accretion corresponding above increased with and then cost our increase additional yields some margin in

to We given last of sheet. margin good prior $XXX our in impact of current the continue the rate $XXX believe three still that quarters target the to a of forecast, movements balance for range anticipated branch our and acquisition, XXXX is

our April, been in mortgage contribution the in a Earlier intent compared the volatile the and most origination operations, have interest our the loss pretax had Historically, quarter. third-party environment also in -- $XXX,XXX our a as adjusted $X.X to the million interest rate origination and for total including we in fourth announced for productivity. these to Our quarter sell footprint been most corresponding on the relied channels. retail

volumes giving booming, more are we have hope from operations reduced are from believe results our channels our for a retail that that difficult produced And and have losing Exiting are replicable forward. we have the FirstBank consumer to was with upside coming past. for strong downside the the mortgage and channels direct some up decision wholesale the us. going we predictable we while teammates in So, results

every will them with contributions We to miss day. working and we are grateful their

However, we company this come the belief to its that best and decision is future. for the have our

and a first our Moving very credit, of continue credit. for quarter. portfolio to in are strong environment signs We metrics to the have credit our deteriorating don't benign reflect

We employment business job markets. are seeing demand amongst loan growth, high in confidence our and owners and continued strong good

the are over moving our capital to highly to on our return returns of for briefly on with of high to expect teens the the Speaking the creation XXXX, our value branch which see equity mid our we connected shareholders tangible in common remainder acquisition. following leveraging eyes, to

our in our current dividend continued amortization $XX program in revised of share, we repurchase and XXXX. and also stock We million to -- $X.XX of $XX million XXXX per be

service financial received date, line folks the that an of closed Everything positive And in converted to in sure date delivery the with closed our relatively April are transaction in as our of is and we very we transaction, line from branches their Moving be on feedback assumptions conversion in Xth, with update branch four deposit can about our to thank expectations and and team want for from the expected We making our work effectively with moving To on as quality I to all new we the minimal announcement. our and have members customers. our have that our transaction experienced runoff conversion. in the smoothly field. are team weekend.

operations so but continue quarters of far you coming combined over We to update good. will so the

the Tennessee associates about have that we are provides scale East us the We and quality this excited that North Georgia. the extremely and customers acquisition added in and

our company Capital James financial remainder divestiture that I by the So, in to of and seasonal an call Atlantic we with review wholesale our a mortgage of the a addition we from results of detail. the acquisition, assist on delivered want continues to to movements. some path XX summarize, for fundamentally Through turn overview, great to quarter channels believe and over strong the the beyond. XXXX With branches

James Gordon

and Thanks, Chris, everyone. good morning

share per $X.XX of earnings were diluted quarter adjusted XXXX. for first the Our

from consistent quarter loan Slide reflect held we environment yields on and deposit profitability expense this control, the that mortgage of in have are delivering. results the performance in and that increased illustrates offset four growth, particularly fundamental the sale a fees demonstrates underlying competitive experiencing, environment. we benign for credit Our company's overall the by been loans trends landscape

margin growth, of assets the core as performance the specifically been fundamentally fees a the five interest one quarter and yields loan return the the of our driven cost of this loan serve demonstrate as by expense margin that adjusted in average remains balanced highest franchises our deposit strength, control earning and Slide well well profitability over among trends. our as sound has net fundamental The level power. our elements quality. peers, increase Our years presents durability as to credit of on sustained

sale due to believe basis decline will of for in quarters related the target our income. range As branch the yield mentioned, Chris fee were an on normalize XX loan this to margin that mostly increased we five additional to in our loan transaction. with We quarter both those coming points above sale

XXX NIM anticipate of continue in to We XXX range for the XXXX. to being remainder the

we detail, X.XX%. yield had approximately with the million that of of deposits For a cost $XXX a brought million approximately of loans the had in some while approximately contractual approximately branches the X.XX% $XXX of

control liquidity change position higher the not market for our CD second funds us funds, due interest anticipate range the some quarter. greater the the for in cash the utilizing acquired react understanding quarter coming excess to as wholesale deposits gain second branch costs third far cost the better CDs excess ourselves We as during last liquidity public campaign to renewing over also the transaction. the wholesale year's the to and have we and we So in forces. current lower first from in XXX additional of provide from cost interest funding of customer been the Swapping how funds maturities XXX quarter we've having that they funds gives a bearing ownership

our excess to from our strength about our of transaction branch deposits. focusing continue with of gathering the on We're margin. good cost funds relative the overall the customer-facing We associates and funding feel managing

a the near in term to flat We see additional modest the remainder XXXX. for of expect rate at assuming a organic to cost growth any come environment

Chris slide as produced of and previously, mentioned growth. quarter Now we six, solid moving loan another to

remains relationship costs. not focusing higher driven on merely objective quarterly given Our our profitable funding consistent, growth and a target especially hitting

of as also lift back based variable to the with and deposit to next loan the and quarter construction second our we and the thresholds XXX% had for loans. in on quarter Capital risk the rate the the branch see concentration increase capital decrease stayed would impact a we'll quarter of CMB in at on portfolio Overall, acquired our But in increase of we XXXX transaction. rate our X.XX%. hike due capital $XXX on towards concentration the relatively this expect comfortably pricing the mostly the in regulatory and ratios. within saw hikes, In flat yield loans development similar December's we We million utilized CRE on Pre-Atlantic rate yield our stay of absence to to overall initially remainder calls

we Moving continue to -- while good fourth quarter, costs we quarter with can customer good were have slide rate our promotional XXXX in increases billion rate X.XX%. a with We the seasonal moved XXXX. the see of public that of an seven, XX.X% third up annualized We can a the we approximately on deposits. re-price quarter maturing of bonds quarter basis included million this of $XXX and from had up $XX.X million to this CDs the had approximately an deposit in over maturing of growth $X.X to balance $XX.X deposits million opportunity escrow

the Next included. and contribution our quarter, mortgage our first eight and in slide footprint pre-tax retail added total $XXX,XXX adjusted to is operations turning of

company is pre-tax our adjusted the total adjusted in first contribution approximately X% of was which the down quarter, mortgage the quarter income, X.X% For XXXX. from of

those of pretax expenses of was compared have Our margins. the the and $X.X contribution fourth goal of pricing above likely the have contributions changed million charges, channels XX% XXXX's will volume and to total produced on our quarter's of related this while $X.X lowest slightly down the up slightly full-year come margins, performance mortgage, quarters, up from of in pressures exceeding in like we periods, and Competitive which from and given We volumes interest were and one-time breakeven both of of third over our million channels TPO health of XXXX. the quarter over second not prior continue reductions sale then from quarter Correspondent in largely our approximately believe $X.X reduction we that to restructuring with the Including divestiture expect commitment rate quarter. the first-half XXXX. fourth $X.X volume million billion in our in to being a and $X a result, slightly billion to at weigh the first

expenses, we revenue and growth mid nine, slide investments excluding to and and at range, expenses, technology. to producers single-digit segment Banking additional non-interest looking grow of mortgage-related the continue our in expect reflective Now, in

core retail X.X% Excluding bank our $XXX,XXX or non-interest footprint, mortgage expenses approximately quarter. level in first increased the

approximately would have efficiency from deal. the exclude add quarterly non-interest no including of we related our change ratio deal to changed to $X.X value million branch CDI $X presentation of Additionally, longer fair of the expenses, to amortization quarter, our Beginning this in the the the net not calculation. MSRs the million

ratios different and total than core operating period slightly previously the So, reported. for are prior segment

from investing for quarter, primarily Our effective the equity first XX.X% tax benefiting rate the quarter. was awards during

compensation and than effective rate equity due expect to For in XXXX, projected we QX tax lower XX% be to investing. to our the but range, QX continue

our in accretive quality, expense loan up would those slide expected remains increased but and Non-performing assets value by had a bit of a this slide to we to We XX, and book slightly XX.X% came as we tangible $X.XX Clayton charge-offs portfolio a and share, net expect lower shape. shown remainder the strong Bank's on level remains down of driven XX, quality our over quarter in to slightly. that whole than on solid or sound financial of to and strong foundation sound results increased first year, the that the IPO, Since closer quarter, of come per credit quarter merger. back provision asset of assets in for provides has shown fourth the costs the As our the $XX.XX the the our our company. after the quarter XXXX, experienced by

this Our capital additional enabling the raising branch quarter, transaction capital. strong remains without

expect approximately related XXX deal With to to capital and we charges basis drive the capital intangibles points. ratio in created risk-based transaction, $XX we our million use closing of by to total $XX million expect the to which down

TCE our we earnings the can that ratio following the We that X% of over course level acquisition. immediately expect to the of X% expect range XXXX. in With that to build settle we back

the Chris overview, call over we'll want Now, turn back the with your closing open call and to then I comments, for that for to questions.

Chris Holmes

we'd it Once again, Financial. your like now remarks James. for call, to appreciate interest questions. FB you, investment Thank we for my that and open Operator, completes in this up morning's and

Operator

KBW. first Instructions] from [Operator you. Thank question our ahead. go We'll take from Catherine Mealor Please

Catherine Mealor

Thanks. Good morning.

Chris Holmes

Catherine. Morning,

Catherine Mealor

of you Wanted to guidance gave for know wholesale start mortgage, hasn't line piece. changed your on guidance that really bottom I mortgage the despite the sale

expense expense So sale? the this after can side side just you much the on us it, we of year help that how reductions see mortgage on of that could

Wib Evans

is Catherine, Wib. Yes, this

revenue on probably but exact rate. range. in our not of range also in side And that, expenses so range XX% obviously XX% XX% channels would give are heaviest run these on on number lowest third-party the the our I margins. our XX% a both but to they're you an to expense, somewhere And be total our won't would expense the be

Catherine Mealor

to another ratio out, like the way should are ask different has about what maybe not backed look mortgage it is there way efficiency And changed… to or a these once Okay. think pieces

Wib Evans

what Yes, going down. I going don't know tell we to you that would to exactly that's come like. it's

as Our efficiency a what we bit, you ratio has like. than know, would been higher

to in think XX% would I so to that range. going XX% be is down that that number And

Catherine Mealor

mentioned on Okay, of you And and the that's between buyback, kind splitting year. Chris, then this next helpful, thank that the you you. share year buyback were

past is market that thinking or on pretty that active price soon about the now sensitive that that does closed think that ACBI and in you'll you you are is or you're earnings be in acquisition may where price depend active how the the after for goes? XXXX, we that As half comfortable

Chris Holmes

announced sensitive. Yes, yet. It it's sensitive. announced the hadn't price the buyback remember is you'll branch we when price And transaction if we

we And capital the we excess branch capital, so XX transaction. any the and into some -- those, XX raise XX diving the used XXXX announced we reason so for and again, we, to didn't when

in what just price market And for then the and we is. split, or it on that's the reason depending not will may sensitive, be so may the price the so be

Catherine Mealor

Okay. great. Thank jump a That's out. quarter. on great I'll Congrats you. helpful,

Chris Holmes

Thanks, Catherine.

Operator

Sandler ahead. question go We'll next take Please from from O'Neill. our Peter Ruiz

Peter Ruiz

Yes, quarter, the Congrats thanks. on nice guys.

Chris Holmes

you, Peter. Thank

Peter Ruiz

continuing maybe commentary year leaned on maybe how pursue kind thinking towards capital like Just and guess to this I I you M&A opportunities. $XX maybe to deployment relative about to buyback, the follow-up what guys looking wanted million the previous other like opportunities are are the on the maybe feel of discussions front.

bit so little any takes So a there? are maybe or shift puts attractive maybe a the seeing are that you discussion bit more kind buybacks the little and of

Chris Holmes

Yes, as we'll necessarily return. not opportunities like ways our and continue highest about capital branch buyback look to to acquisition, the it is deployed we get when -- just for make our use, think highest we for we or best the

And in a so that's us that market we'll front, M&A continue you've and seen on front. to smaller patient be That disciplined being look on said, banks. relatively the active especially

continue see front. on patient and to us You'll be that disciplined

to we're not to being we're That able deploy appropriately kind we're not for we to marketplace, it so our us. that's But be reflected out, a a price in run And appropriately. buyback a to opportunities of going and especially looking that stock there, use. the to waiting utilize higher it, said, certainly -- us come better have generally gives was the felt tool to if there capital we'll to

we So look at that's way that really it. the

Peter Ruiz

have -- your continue necessarily in looking now? like of know longer-term the eased? paydowns quarterly maybe a any but you growth, on are markets surpass to not competition that front, on then for right target, seeing kind just And the I obviously you're loan looking the And paydown changes What's guidance.

Chris Holmes

had And we significant hit some some relatively and quarter, paydowns Yes, had fees you related something in on payoffs. from actually actually did the that to question. -- some early good

I us. think that's unique to not

continue going We're I across demand most market. people the the fortunate footprint. on think in to have that's but know again we great is strong in a -- national marketplace, to be

demand we really the pleased of in And contributors last are national, the growth so so, on another and to deposits. really have how other there couple -- loans strong but we be over is with the been markets, markets in real continues of is also have things both become there years great and in one

and -- of timeline that years, kind that company. several And seen in be you four the three or last look makeup our years you at so, have our that's last something of over balances at if change our a really look that the

we So all from demand around. are getting

And that's so, before, I quarter. rate I for controlled certainly think statement I may a made and have have this fairly comfortable it made last growth us.

it anticipate above. XX% a we continues just continue It pay range. be quarter. case it this It be And range. to this offs a could the be to in absorb that And, could able Again in XX%, so, XX% we be below. keeping to like and in But continue little little could demand strong. to be that

that with we -- think so, that. still are And that's we comfortable

Peter Ruiz

Great. Thanks much. so

Chris Holmes

Thanks, Peter.

James Gordon

Peter. Thanks,

Operator

Morgan. question JP take Lau go ahead. next will our Please Alex We from

Alex Lau

Good morning.

Chris Holmes

Good morning, Alex.

Alex Lau

Hi, so I on wanted to deposits. the touch

So is seeing you the now deposit pricing in Fed any rate hold are with easing competition your on markets? that hikes, on

Chris Holmes

but third fourth it. don't has there as hear quarters. in are eased was. stressed our I one-off say We some about Yes, general just markets, to any if as promotions rate that us, about it's rates just seen I and have actually we It out there're make some would talking predict not -- and from still see you sense somewhat it say

think are at now particularly outlook year. the hikes a it maybe year some looks the project moderates We not later more look seen the the I the like the rate projections competition or next for cut of have you and the even sometime if year in rest outlook, as

I we So, as future, have folks will the competition less think seen gather become in intense.

Alex Lau

Great. Thanks for that.

Chris Holmes

Thanks Alex.

James Gordon

Thanks, Alex.

Operator

Please will take from ahead. Jennifer question Demba And from Instructions] we [Operator our next go SunTrust.

Unidentified Analyst

Steve Jennifer. actually for on Hey guys, it's

James Gordon

morning, Steve. Good

Chris Holmes

change. love voice I morning Good Jennifer's Steve.

Unidentified Analyst

No worries.

does want Where is being of loan of mentioned segments to here. little What It affecting guys entail? certain the based that numbers. kind there You Or, to on be cautious customer borrower any seem lend growth with a it your growth doesn't the to? don't you relationship? more more kind

Chris Holmes

a things Yes, maybe slower a would or customer maybe think, in times, -- economy you some that relationship, could XXXX. have see smaller certain would or do the -- and we be you you boy, little XXXX borrower of but way. you done when either some you look you both. It don't have you in where Projected in at things do

good you if on You focus do your customers to you have sure make capacity. want longtime

have adjustments. would to a segments. business you lot be want sensitive be you you've begin have maybe There with more would would for be that to of some the in that customers be serve on of really We capacity then would are that strong longtime sure selective. things other couple -- a done more decades. some that we a them where cycle tend And would got got particular to make to to one you little little on areas a -- be And

looking typical the anything, know our exposure exposure, say beginning you wouldn't balance that that but some are some more all or to that a I so, maybe of that limiting moving you our your but we be specific step we that -- know, exposure. say And really at, maybe sensitive other got forward. wouldn't to maybe customers where going cycle little may specific also sheet niche, reducing to niche you a have multifamily, pieces introducing history is the -- from and to constructions, I you your things, limit it

James Gordon

overall today relative other positioned. put what within the really you loan being the curve the bit not funding side funding so it, as of is much We're the it's to [indiscernible] to where is flat for relatively that the growth, there pressure a incremental little are on know, yields particularly range. and given what -- but cost think on where on credit, of basis I an cautious And

our to do you balance sheet. the against side need credit of more funding it and there is balance plenty to of the think that of -- I activity

Unidentified Analyst

you, a thanks. course have any ask know in but day one on far… tough I of any on numbers kind then, And Perfect, to thoughts to seesaw so it's one I or on implementation of here, put thoughts backyard,

Chris Holmes

You, you ask… can Steve come on man,

James Gordon

will the that intervene. moving parallel. third by strategy. we're kidding, of obviously We that still the will able start feel quarter. are our think the be begin That's better impact just to we're parts an Only open, to I a beginning, of the We'll end -- of Congress score some will actually run it have of and

So I think we'll be in line with most people in the community bank.

I in our loan or was year allowance think with is a which -- our the within methodology back, closer look average some five maturity life. respects probably average loan

the of continues not So before it the while non-PCI bit That in down is doubling implementation. has over it year that. of a portfolio piece some -- impact it course of out, have acquired doubling the will course and will impact think the with but it will That our of of to up loans. all little be be line right now come others, the shouldn't impact, we -- other

we'll of So through, maturities rolls allowance the quarter take care that into how see those continue rolling that. each to because we

and predict most about So, manage hard to is post-adoption the be could in part probably how forward. produce. The or moves portfolio within the is that the the adoption your to part reason does concerning I drive provisioning think how the to going that depending the what to period, on I going it initial think it particular is quarter a provision, ability

Unidentified Analyst

Okay. Thanks, guys.

James Gordon

Thanks, Steve.

Chris Holmes

Thanks.

Operator

Please ahead. next our Daniel James. Raymond take We'll go Cardenas from from question Instructions] [Operator

Daniel Cardenas

guys. morning, Good

Chris Holmes

morning, Daniel. Good

Daniel Cardenas

work I core margin a as it a in the I Just what help as the paydowns impact you couple of on and to in relates QX, can amount, I'm questions impact mean you what think for on as terms had to it then guys? margin was dollar trying down maybe

James Gordon

I track four million in don't say that XX-plus that but there in ones the every that paydown, probably dollars aggregate three we were So contributed. larger would or would say I were

at there points. -- loan contributed and nine fees, If quarter-over-quarter basis about you look

was those So probably of half paydown some that from fees. growth of

Daniel Cardenas

Great.

Chris Holmes

on come quarter. were as the my the in loan that in back in little the to bit were the a levels we I to overall, They in expect fourth lower XXXX But we said fees experiencing comments, average.

and that quarter-to-quarter the -- and -- and actually do in payoffs, until the said, range. growth but as -- were James we So XX net three aggregate million it net track gross we approximately three do had were we in

Daniel Cardenas

Good. on as on list trends, good perhaps there then concern And but a manageable, some causing watch very basis metrics looks the what linked well like you now? there's and quarter that's basis, are maybe year-over-year anything you that as credit out right color if

Chris Holmes

Yes.

actually our So, list watch be stable. to continues

And look quite to all they the at publicized, that our metrics we aren't internal – continue so, when be actually stable.

back If on over you remember quarter, that that million still were was just loan in X the fourth we one had non-accrual, non-accrual.

it to up, seen try we the when watch jumped always was, actually dues look -- cause past and worry to some list you than and underlying to frankly, we but you one-off, I you've market, the can that things continue so, problems, the worry from are to loan coming in about better going related way, number metrics loan. is for subject we worry metrics numbers some that, up a be by be we always can We alarm. seeing about Other that not classifieds well. say to good. to and than that, one to that, always So and one-off and highlight the continues at we're perform fairly be be And to about, that -- that

trying one-off And we're like of fourth we're and those guard we -- all we're I earlier my the in so, mean on we're watching, us for quarter, metrics. diligent had seeing we watching you I to the here strength. You comments, in we're closer that, said of us, end that's as continued we hear be than hopefully hear there or to really don't and -- coming, cycle, one-off there a the say know where other

James Gordon

two-plus basically lowest to one they and in since years from categories first as watch, PCI we're Bank. I in whether level the have quarter I Yes, down of think dues fourth think every were Clayton the been acquired the past quarter $X classified we million, around

a on year-over-year, positive are of only it's -- out some up is that's ordinary, on so… of down everything deal and but moment-by-moment all slightly basis those, now So, but they nothing a very the

Daniel Cardenas

And good. then, lower TCU Okay, the that of end willing lower to kind or your your range, is number take last at question ratio right I'll comfort that me, found of transaction? forma from On that the X%, be step to would down then pro you X% if of you back.

James Gordon

transaction and limited range. of comfort time, If our back. then is that right period we we for had go bring some that the Yes, it may below

given As you to return down so, the it would like basis, fairly see just on a we range. bother your generate to take it and stake in quickly, but it numbers, that we there, us wouldn't see transaction right from steady for capital

Daniel Cardenas

Congrats right, a good. good quarter, guys. All on

James Gordon

Daniel. Thanks,

Operator

Please ahead. take Stafford Incorporated. our from Tyler next from We'll question Stephens go

Tyler Stafford

Hey, good morning, guys.

James Gordon

Good doing? morning, Tyler. How are you

Tyler Stafford

a of be gain and expense offset going you on; the exit, just as apologize I you'd that apologize TPO channel about thinking margin two this I those a Hey, Good. you should if of sale channels? on forward, new from I so any the talk the Can about blended kind exit Correspondent then of we just result expect guys already. what hopped discussed given and

Chris Holmes

that… answer will Wib

Wib Evans

Yes.

our channels margin and we go we on here channels, Tyler, are what be up once our that direct we the transactions so, given and forward we data those thinking, So lowest hold retail closed. these would consumer two previously our obviously would [ph] get as is and have

the and numbers range, to those the XXX the front. on probably consumer it to in probably XXX XXX XXX -- say up so, call range XXX I would retail front, direct on And

does we annualized as X volume looking so, group, at total generates little of billion look we're going consumer retail bit more production our those in forward out channels. our and blended as north a somewhere number, of still at direct And a basis on two

Tyler Stafford

Okay, got offsets, -- Thanks the that… you that. did -- just it. And already I for then I is guys discuss mean expense guess

Chris Holmes

did, we and… Yes,

Tyler Stafford

Okay.

Chris Holmes

call And of -- to on revenue expenses, XX%. in it somewhere XX% total are front XX% range we expense on looking the the our XX% and side to

Tyler Stafford

out. will I Thanks, Okay, hop guys.

Chris Holmes

All Tyler. right. Thanks,

Operator

for Holmes to back no And would call additional we turn I any remarks. the like have questions. Chris further to now

Chris Holmes

much. again, company, Everybody forward appreciate a everybody the Thanks. you we Bye. the us. your continued interest have thank us call, appreciate all and we day. for Okay, and to very We success great in look for of joining

James Gordon

Thanks.

Operator

And concludes your today's conference. that for participation. Thank you

disconnect. may now You