Broadmark Realty Capital (BRMK)

Jeffrey Pyatt President, CEO & Director
David Schneider CFO, Treasurer & Principal Accounting Officer
Stephen Laws Raymond James & Associates
Timothy Hayes B. Riley FBR, Inc.
Call transcript
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Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Broadmark Realty Capital's Second Quarter 2020 Earnings Call. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Steven [indiscernible], Investor Relations. you. Thank

begin. may You

Unidentified Company Representative

you Quarter us XXXX Thank Realty for Capital's Second Earnings for afternoon. today joining Broadmark Good Conference Call.

the supplemental and your forward-looking detail www.broadmark.com. On to have answers Investors Section is to addition press call, website this the distributed statements. In at our afternoon, available filed in the contain our management's package questions on additional today's may on with results, which release we prepared remarks

may to statements of results cause matters results that are from and Forward-looking discussed factors number anticipated. materially those actual actual subject differ A risks those address cause from to to differ uncertainties that today. could

of expectations, information And made. date undertakes Forward-looking or statements at light they no and us management current publicly update information obligation new in beliefs future as as time them assumptions events. available on any the to of well of as are are this based to only and speak

David information this filings afternoon's prepared Management to call, This non-GAAP in is SEC. will Broadmark's non-GAAP and discuss Officer, earnings financial are by certain During measures. we the to and Executive comparable release measures GAAP will about Jeff up our questions. measures call your Pyatt; contained financial we these with Financial Chief make hosted Officer, some will which, comments, and call after Chief open reconciliations conference the More Schneider. financial the

Now I'll call Jeff. the turn to over

Jeffrey Pyatt

posed tailwinds we remained we the emerge quarter Then we and over given discussing are to how an provide then drive welcome for second results should you are financial hope well originations. to and and sheet our XXXX of and balance on as the discuss and operating why David call quarter growth, on business. with detail we'll I'll believe I'll your all crisis, sheet. second Steve, this turn our additional When strength afternoon, that the begin in from finished, healthy. provide and I'll questions. and secular performed safe through call. you, our is help challenges the have balance earnings longer-term for COVID-XX. of call Broadmark portfolio our Thank we that positioned by performance, to This how David update your the families by Starting loan up open our We

For million quarter, $XXX the to new bringing million. originations second approximately we originated $XX of year-to-date loans,

We in of loan loan completed our transformation amendments generating the fee a portfolio vertical of $XX million during land quarter, investment additional while income by to also construction. derisking

amid early volume in uncertainty and demand. permitting call, origination emphasize the in our closures capital markets. We and to As of time, and early our stages the were of restrictions, activity slower the due the in office we lack May. last on deployment, quarter, disciplined state most originations discussed At April inspection were and in not economic was our modest given pandemic lower all this we contributed that to the uncertainty of construction

deliberately In after credit. from slow made the of the partners our until their received COVID losing inbound fact, had developers to financing many in lines better visibility. of days whose back decision had we early We we the originations inquiries crisis pulled

of the standards. pace slowly underwriting move our we maintaining our we originations while stringent quarter, As built through

with working in the XX% a cash, were in on vary last of then resume of to We June This our lenders respectively. entirely, construction of our originations X the So the historical while our able can presentation, COVID level, is detail lack supplemental occurring originations quarter provides cut were We more to manner. quarters, by some Please of half originations to is originations regard we of a levered were loan closer benefit. during measured of times. cadence. our second to off of which in proceed several month-to-month XXXX, June. originations due merger origination to forced earnings most second see pace additional XXXX, to based All on which historical were of the of disrupted able representative closing pace Slide new

the However, where while are forward. operate trends COVID we related continues to for housing. stimulate as preferences have population a we pressures, in strong experienced backdrop likely near-term for Broadmark consumer and demographic underlying provide demand strong to We markets move a

the that for and has which we work construction in to many policies, single-family desire activity for the in demand the space growing from home persist has states country. low housing Also, significant has affected interest COVID-XX eliminated respect rate operate. the amid across shortage While it explosive timing, the with and resulted of by more historically not in housing distancing combination social

finance demand We more continue At developers Broadmark limit, lenders that competition. leaving has at to see work least that same respond we to for unmet to with construction near time, and need. loans, to served the COVID-XX further to the of term, universe able less believe the

to contractual our remind default default. than has XX-year over less level, our historical turning Now contractual everyone X% history. I averaged of which

time impact contractual permitting being halted offices and altogether, pushed X some increased or inspection in of lines have COVID, as closed the construction defaults went remote. states, quarters, With past out. over in resulting And the construction

collateral, that liquidity. faced loans have defaults. believe XX-year estimated we clear contractual of have our default than March to approximately, represented delays the is most we trouble loans very and Broadmark It for or a in our who X% lot. part and high our for began had a X% impact and contractual of in had the over default has our the of and of in other some loans return normally million out and XX% as proactively detail In new portfolio not for into any total as these further second lenders' default, portfolio approximately of losses defaults reserves to we At work process not status did history, contractual later to provided COVID, and we resulting quarter. interest properties otherwise foreclose on losses in The David fees. on spent and June been a historically experienced increased call. in new We which incidents contractual the in issue all reiterating our pre-COVID return of contractual watermark positive have only earning minimal, refinancing on previously we've rights. with total of for will of April, defaults we rare result majority X that our contractual with been July but default million, we been because have that continue default. entered contractual We most experienced less foreclosure. of contractual resolved a contractual the defaults go owned completion default these and and result, XX default current quarter, contractual some in total negative resolutions into in the Indeed, contractual defaults. in protect in our contractual of value. mean a worth interest default does outstanding of XX, last a contractual by experienced second have not important default Broadmark. time As resolved our loans our in Broadmark, would claims represented loans June and borrowers We X $X.X status cases, some necessarily mean exercise on X captured any, then, provide value. since default, the And a In with a resolve have REO, incidents And make our the on as collect we earnings Broadmark fees. the on XX, principal each And minimal property, trending outcome loans principal default, contractual $XX it's will portfolio. for believe and our of and is downward against if contractual representing XX we to levels to time. month. loans result Over what our financial years, default. losses or economic and foreclosure new Note common contractual X% limited are on steadily March borrowers discussing be in past only resulted call June had outcome the contractual these

of economically positive relatively an find refinance; foreclosure. work with plan equity, borrowers, to back obligation project payments have small the work help satisfy state receiver we us our with often to large required time; to a working the that putting would to sell with a creating deferring the our and a that options over current to of borrower Remember that These include: we a toolbox to us cure incomplete for options options resolve significant in in deed us; a them As personal basis. issues. in borrowers to and loans tend to our helping them help issues bring be loan incentive provide borrower to their or satisfactory to up place; setting are the getting any also and a in an lieu

forbearance have executed June are other we'll with and an XX defaults. and importantly, our with borrowers to value liquidity ample resolve contractual a penalties, nonperforming cash just we continue process. our XX% defaults, on a trending fund be by significant loans, agreements of loans Most of will capture horizon. with As to interest active have XX, new working believe principal, over our able even forbearance time with these we total in of to through and work position positively, as we million payoffs loans We that contractual to longer $XX.X our

to have resources and need on project do to take execute over a we that. finish we if Lastly, it, the

our quickly that sale with slowdown foreclose Over XX% our to our fire relationships numerous a our be have lead that the that did summarize, project. a means built we've buffer we maximum and COVID-XX event value the sell and Furthermore, loan-to-value an strong we to contractual in liquidity to ratio will forced a default uptick sell means need meaningful access originations not in we and prices. To contractors rate. in at years,

as a trends. of through defaults returned more normal seen in have cadence However, pre-COVID originations levels. July, encouraging progress reversal those monthly resumed we've we contractual at We and signs June and new a to

As demand we single-family the housing for financing as are seeing options today, sit construction. rising, is construction need more for even borrowers here fewer increasing our

positioned well grow confident to pipeline are over are loan we the Our that strong. And our continue to long-term book. is we

resumed all path Of course, recent states increase has of situation. but possibility these activity the counts many across markets, case COVID-XX the the in of our on Construction the depend restriction. of improvements further has in raised

our second significant quarter of Board core Directors dividend aligned of share. earnings $X.XX the our uncertainties, per with Given our

declared our share. Board the dividend of For month $X.XX a per August, of

dividend appropriate dividend basis. rate on our will to continue intent therefore grow our evaluate and set and Of earnings Board is course, our our an monthly to a over and time,

As of have in on the approximately X.X% treasury world close X, August business rates yield X. a are we near currently of where

focus an Finally, let me of brief give on important a for us. update area

Our environmental, and ESG initiatives. governance social or

to I is investors to recently signed shying their diversity; which recent collaboration; members real the workplaces. months favorite as CEOs our a it communities. responsible Stop creating And communities estate than spaces accountability; contributions. core the Hate. Inclusion, is X we more difficult matching socially on Action Koa, on mission difficult charitable with business in developers and more away COO, to One we empower engage our we Our from focused us integrity; especially in Diversity This places become inclusive has this to incumbent time. Pledge as Linda issues and adhere community; our employees' team our leaders feel to social in of them. Furthermore, reliability. joining company pledge in ourselves been rather To strive signed CEO in committing way NAACP our helping have to values: to during been for that end, improve and organizations to by is has rewarding thousands

management from as the in We Broadmark holdings. governance our also over team Stop the part intolerance stock investors detail. Hate now to online. a are I'll advertising Profit results joined uniquely perspective, Facebook a internally with against And David, at of campaign, suspending managed for July has our in who review is financial aligned turn management as will and significant it we more movement

David Schneider

Thanks, Jeff, and good afternoon, everyone.

lending. that X limited were we the by of and fact pandemic start in to income me to to taking our of originations quarter the with commitment more where discerning our loan even million net a $XX month the primarily new earned uncertainty Let approach

of details the detailed which for are earnings. X As of results, our operating Slide our on

approximately share, reflects for $XX.X $XX.X basis, $X.XX For costs per income reported this revenue the noncash million. quarter XXXX, common the a loans on and which income million quarter, our $X.XX X second per the share items, of quarter of are XX the earnings of our million. share. was quarter. fee total net second $X.X other we On origination total volumes, income the quarter our core Adjusting dividend originated a million With with earnings $XX the regard face diluted net the of per of Interest presentation, diluted $XX.X GAAP rate income of in million presented in a we or value for of $XX.X for million. matching to and Page on and was nonrecurring impact second common were loans second

as may the mentioned, quarter second Jeff during in vast majority worth, in height the place our slowed April originations, the of As million measures. took COVID and June, of $XX lockdown we originations

$XX June an of July on the in and to in including COVID to amendments, want early also included we pre-COVID pace July toward vertical ahead. originations million new subject we move positioning growth quarter, originations positive to land be disruption, company $XX numbers. loans, our for as further and We this to which events building unprecedented levels, conversions August view million exceeding the provide activity, Given update from the

mentioned, of in originations earnings the treatment we the as given be quarter any life over of As time benefit that previously loan. over will fees be the recognized have requires full our origination realized accounting

loan loan balance turning million losses, for principal defaults a contractual less estimated update Now provided. X% of outstanding industry-leading down from estimated represents in and as it of these contractual June X% been loans we $X.X $X.X of contractual I brief and our the of than of our like on status as evaluated of to the default to total This to relates comments aggregate have has on give Jeff XX loans XX. is default million recorded currently potential our as Every beyond accounting losses and sheet. losses would the portfolio. in March

resolved on earned the Also, past, contractual have default times, model a demonstrates upon strong to no said date, currently loans the does to in and instances, To we are more means in in in defaults we And issue. recognized effectively. in As from Even without continue protect expect most in manage uncertain that our is interest positive to ability our interest $XX operate income. through the contractual and contractual these defaults default underwriting collateral. contractual and we than contractual we we status, default million exit. not mean revenue outcomes have fees generally economic

for place existing capital previously pipeline. mentioned, modestly a have intend in sheet put we current as X detailed working up work cash on to have in presentation, and sized we a balance amount credit facility XX originations. In of of of believe addition, positions Slide balance as the We us on earnings as XX, our through liquidity XXXX. our our million significant we new as to deployment loan well we June on Also, $XXX debt free into sheet cash our

We facility finalize credit by this to year-end. expect

quarter March, as launched XX, XX of a the loans participated Our private June $X second of in total participation million for in which XXXX. REIT, in

contributed in lead uncertainty capital strong As COVID-XX the our we believe our near we pace from a in long to have expect the and stabilize we to as pipeline of working accretive resulting expected, the earnings will slowly We recent markets to improve that weeks. credit continue of fundraising, growth seen loans slower facility and market as implementing to term. as positive heightened has dividend but

comments. for call to back Now I'd few Jeff closing the turn like a to

Jeffrey Pyatt

to up balance crisis, choice lender our Thanks, grow developers. we confident Broadmark allow recap, fortress COVID-XX originations will to as and David. ramp us for sheet, experience and our of a To as expertise continue that feel the we navigate

our completes uncertainty, While grow COVID-XX pipeline. reliable presents and supporting some execution, help the as near-term remains continue speed housing us our of remarks. demand we strong, and certainty to for believe demand for a prepared lender, loans This our offering our will reputation

up Operator? will questions. for We now open line the


Instructions]. [Operator

is Our Raymond with from Stephen first question James. Laws

Stephen Laws

the healthy, great standards? talk pre-COVID? you. guess the originations, maybe off, back to then in LTV doesn't see So other look looking or you're from and The about or talk any How everybody's post-COVID about you Talk on there new June. lasered that in changed changed at have underwriting new versus late you hope the thinking can to safe Can materially, you've originations characteristics that to I majority first -- May hear on down good but way? I well and in to turn

Jeffrey Pyatt

So I'm say go things XX% see something might we We loan little at loan-to-value. with, today completion will say, always to never up. you will you change, it over set to it's We at in reluctant months little comparing market. It the loan like or the be have be expect change more is our value longer. were to certainly Where in we we looked not ago, loan, there. various a with reserve it way what today. look what by if our that that the and X quite possible just X a always the We've term have underwriting interest

more So with probably are as extrapolating try I post-COVID that we term little in said, underwriting. extra just a era things stay I But we mostly, in knowing to just slowly real And think a build than going might tight our a different. usual. little is

Stephen Laws

any like at Utah. CRE And Southeast in gradually the will hard the and take shift changes of mix. are going either behind and expense property bit a like land. to -- or and place know looks of loan type? rent mix diversification over for that I a Texas or those little Also geography slight expense a in geographic type the exposure shifts? with else Washington Great. up But by that anything slight time. Anything and at other bit focus been But read a lot on looks little into up has

Jeffrey Pyatt

By geography, certainly not.

all X We continue push to on regions.

best do might the because from are up that region to go start. Washington Southeast go and in a and mid-Atlantic now. wise, might flip percentage think But we Texas, that the I we a they're if might payoff because smaller loan, odds month big the Mountain a because then down West, have

multifamily as are we we goes, to really trying and single push -- far family As product there. like still housing and we're type

had like had We've we We our we to as had vertical that. land have We convert we brought construction. down exposure as would. that loans land expected classified

know, you homebuilders we've land before, it at we really for I said look our lot providing think apartment As may loans inventory as builders. or

and need a inventory. And so -- of they lot

And products don't the like so houses. we to provide land want just we so developers, continue to to be they can with them but build

Stephen Laws

the my to about that maybe expenses? what should chase, some And a in you shift go-forward know G&A us? items little for there. as rate quarter or, down over Can more run Great. I the I million So the a really last number G&A, we for you. to cut to onetime question, $X.X break David, guess, there were bit for think

David Schneider

for in as see recurring really bit on legal in implementation. costs implementation a I the we to question, any kind Yes. for public incurring a QX company, SOX little it's to first a costs time of I more Stephen. obviously. expected focused related thanks a would SOX. bit -- G&A, project, definitely year of And say with to bit the more are QX little and We're hard little

quarter reverse off QX, something to earnings to X run I thing what G&A of a But public probably $X $X.X look to We on But I expect out transition at little cash years. you we're some normalized from other if think note, would normalize. expenses, bit a some million in future rate core periods, the the backing gives think between had threw a at first to for between I our general year terms little say amortization, related we a those of company more it of you in the expenses. for entry million looking probably we're which bit.

looks -- was it to So a decrease it expenses. actually

bit newly costs a bit look have just to made them. grasp generally, But and to QX year, going we but little them gotten it company, think continue being versus a internalize we good this accounting those expect lower and associated more little fee public all we're a functions. over legal a with down time professional we've And again, as we So QX. going to of start

Stephen Laws

to to to Great. the facility Will with that. a expenses second I amortized get Or going associated guys be the... there onetime And into guess any intend be that as that is slight you credit half? in follow-up the just

David Schneider

and be generally will would capitalized if like. we It amortized


Riley is next from Our B. Tim with question FBR. Hayes

Timothy Hayes

on given a to the the originations on you've if with have if a economic XQ historical versa, yield, yields little pick come just in so or those vice able -- and wondering been of just loans consistent XQ average? bit up Just far, seen those you're Or bit? the environment the

Jeffrey Pyatt

do you one? want that to take David,

David Schneider

the Yes, Yes. Tim. we No, for absolutely. changed. Thanks question, haven't

same. the exactly are products Our

We change to rates increase of a our market. looking advantage haven't need take the to and had rates. We're not

didn't what different some more our some opportunities, that we're because borrowers in to collateral come is think I have struggling. better competitors been maybe of past importantly, seeing the better maybe us and

more over have So we're deals come is cheaper think and same last the maybe we're didn't standards. to But allowed now We're stringently. the we think change went them quarters underwriting the seeing in usual. X our past. to always I picky applying probably I mean, more I than think be us somewhere I that

-- biggest to XX% still I XX% probably to X% your origination no, the that's to But thing. fees. So XX% doing think same and interest answer X% the we're question rate directly,

change there. no So

Jeffrey Pyatt

a And color. Tim, just of if I bit can add

Timothy Hayes


Jeffrey Pyatt

part every our would they of to what X/X undercut the when is come to the then thinking of time when And the particular to them slash time because borrowers books, borrower same business they know get it. and repeat exactly at little pricing that pick just competitor or going XX% had higher money, -- be a And last would that they're they their and trying I'm extra were another phone. priced up they they had one would than if they they deals deal. on their get business. you And on when our in back know, low is of were roughly XX% as money,

this doesn't so boost like And them of yield. advantage to the our to take time try feel and

Timothy Hayes

And -- July that some and major on changes Makes far. sense. hear up gave then hold know Well, so color I no glad you good to some there.

Just would how And AUM wondering if a in to update points. we to July far? static it's be able give private any in if other the be so get few data you you if REIT disclose can at or repayments then $XX.X there's pretty on looked able Would so the third about million? quarter far

David Schneider


the disclosed that publicly right, QX, can perspective, On something but decreased mean, million. to a payoff I to more it's activity the haven't payoffs, July, we had to about QX, put just of million; for $XX total I $XXX normalized. we say

those Somewhere closer probably is little QX overly but bit was normal low. a X in between QX high. run of was the definitely rate, to QX. a

us. $XX around million be month of we've as you know something would payoff for even historically, seen a will typically, So

what is to that's capital. terribly So working We'll very that really in continue quarters. REIT. in activity private showing it's a huge But environment hard release months or We're continue QX management, to assets the continue release -- of looking the And term expecting to to no kind upcoming of and or QX. team grow we that changes. something the then material hammer. raise in that We've the difficult really REIT, on our got a in to the in sales since press we're kind the no X-K private near to under see

continuing think levels that So closer originally I something target getting had. we'll and it's continuing start we to to really to work we we're monitor, that expect, hard, the ultimately,

Timothy Hayes

Got it.

you forbearance not there have you're just loans kind you do? mentioned of able and just you into defaults maybe in so right down drop it be able where out on can clip Okay. you more in you your stands normally far. loans other technically if then as data come extended And just and they're to contractual be bit I because that if a Would there Or on point to is the color forbearance? fees now? little then these July put any us of know helpful. And that you would throw Or tidbits give

David Schneider

It's too so public. in July, Yes. -- new We had is default X much. -- had positive. not didn't we publicly can which We disclose I say Sure. that defaults

new I or in defaults think we X June. had X

defaults. I we're a we the focused is new So existing reality really really had uptick the QX. The on mean, big in defaults,

I think we had or were have months X we got forbearance our Since XX paid have entered in X/XX. agreements. the XX defaults ended QX. off, defaults another I X X then And new X think, then, of new in

get fruition construction So that loans now bunch much these the expecting resolved, progress. revenue in are really collections, were in a whether that a defaults I positive we're think complete these some to those the forbearance of we've a are to default all to to resolved Some of which but on entered chunk, loans each these us sitting end chunk will -- hit kind trending QX at is exits of [indiscernible] quarter -- hoping we're get more really COVID going news. basically They great halted right? that's defaults, loans. of helpful. the and are pretty to came new oftentimes lot of It as important forbearance is not paying. A that work X/XX not All allow are it's we're The actually overnight, projects. -- to hard. of them The of payoffs that when agreements They're working really started not home. note X/XX, We're They're for generating. agreement. frankly, status on and get

do is that but to going to on what you, rent should us to collection go us. be allows agreements, not forbearance of the close So paid back hey, say, those any we're

But we get still income ultimately, our books to to get some we'll want portfolio. full off the exit and them off really start So those loans. income just interest on our

Timothy Hayes

see. I

Okay. then one And me. more All for right. just

something -- last competitors some just any maybe in head, if in maybe me forgive that's interested some just opportunities. you're you're your the acquisition of remember that's or guys target And if my the was if seeing quarter top it I mentioned but still of wondering was portfolio distressed as a that you that's opportunities interested wondering don't there as in, call. I not off earlier you were fourth pursuing year. of that much your from quarter, think still if if maybe

David Schneider

say, did Yes. focused underwrite interest we'll to always the in we'll we've would we're originating and that. else's like Sure. it's meantime, us. makes of anything open there's always phone it going hear got have and really loans. pipeline on a up someone to of it's in accretive closet continue there, honestly, I look worked own conversations. out opportunities the out. say some ultimately a or obviously, based our standards out would loans healthy deal If can no on than And shareholders, If Nothing in But acquiring that there's loans we're rather at skeletons we the it. our we I portfolios to that that. and sense there, and something QX. about is we're to our -- at We those pick looked

and phone But conversations now. sense. something I up pick So and that's makes as focus those see right the if mentioned, primary always we'll the have

Timothy Hayes

it. Got

Jeffrey Pyatt

developer I And level detail, and to when into try was a opportunity get I that nice just keep basically Tim, our and it us -- to that I We little and lender to was into unable about portfolio. can't COVID myself. own -- a a further David's on one try construction that this can complete -- really loan sometimes if we but Austin, point its can We come in loan it I -- to well I going, think if needed obviously. on not an help go was go had process also hit project

And loan candidly to so us We it We it. panic. came quickly. in able that. really on a to got underwrote out close a of were We nice

portfolio a were buying that buying they of portfolio, that's whole else's buying that's So not down. piece -- is but a as going someone

and out. more And most to came Another watched for they that in financing market to example. Florida were came year. deal had build-to-rent to pinch. perform. us they needed were dragging a us homebuilder to small They when the closed a because They the in had homebuilder, quickly, of a we able was get traditional they Similar us

They and their chance. dozen by reference are go-to build homes a us a us lender. gave for Finally the now we're these and

to want from we're are and borrowers nice whole of business. we had to portfolios, getting -- either our other maybe as current portfolios scale we certainly in be while back have may said, lenders pieces of that take way we or David we will, not So care longer looking little no at and

Timothy Hayes

a there, Appreciate. anecdote a of that's to of just can get No, little benefit this. how good good like it. a actually situation always visual Jeff. this in Got a It's Yes. you kind -- how

going just more, to sneak could. one I'm in So I if

unfunded Just represents current balance cash -- XX% your you of commitments mentioned that currently.

exactly And what us deploying so can what I don't cash I this your point, I is target Because XQ know are what lower has comfortable feel imagine now? been how Just you far. And there? you remind than but repayments strong. much they're you've right kind originated pretty of at cash activity know

you has comfortable low wondering come number down level. at it that So how with just are that and how

David Schneider

on Sure. comment I Yes, can that, Tim.

over as balance cash we're X of freeing percentage just balance comment on to That looking cash extraordinarily deploy what to $XXX a the being as $XXX to million. historically and at of over targeting up that from of high of we still holding take levels more to We a of cash and between we're QX, have projects, probably sheet to do have exactly cash come With in in to sheet down. XX% I continue can said, well want So over that couple little bit the because that come the somewhere a monitor but the that if as cash million comfortable the be make and sure sheet and our of we pay we can't QX, will where something high down XX% we that. today, finish it sitting holding down percentage we're percentage that of facility with -- I expect to deployment come and always right enough of would on for XX%, but timing we're least a that's started but times. our pipeline taking on something is, origination our balance really projects efficient over foresee at focus we mentioned have. little $XXX credit cash things. holdbacks I -- million that's there the that that way QX to probably our to has down it's now still had say XX% but we've we attention

as QX. down. So the can below per bring in was XX%. the company management there isn't tool credit will significantly lower come number comfortable know facility se, up, a XX% ultimately, place at we We're it the than where but a it cash backed magic with it number And with


gentlemen, have management to session. call reached closing we of the question-and-answer the turn and end Ladies like the to for remarks. I'd back

Jeffrey Pyatt

thank next you enjoy see confidence. of your your rest for quarter. all your I the time healthy, and I and close, we Before hope you stay we'll all you summer,


today's This conference. you. concludes Thank

You at may disconnect time. lines your this