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BOKF BOK Financial

Participants
Steven Nell Executive Vice President & Chief Financial Officer
Steve Bradshaw President and Chief Executive Officer
Stacy Kymes Executive Vice President, Corporate Banking
Scott Grauer Executive Vice President, Wealth Management
Ken Zerbe Morgan Stanley
Brady Gailey KBW
Jon Arfstrom RBC Capital Markets
Brandon King Truist Securities
Gary Tenner D.A. Davidson
Peter Winter Wedbush Securities
Disclaimer: *NEW* We are providing this transcript version in a raw machine-assisted format and it is unaudited. Please reference the audio for any questions on the content. A standard transcript will be available later on the site per our normal procedure. Please enjoy this timely version in the interim.
Call transcript
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Operator

[00:00:09] Greetings. I would now like to turn the presidential presentation over to Steven Nell, chief financial officer for BOK Financial Corporation.

Steven Nell

[00:00:17] Proceed. Good morning and thanks for joining us today.

Our CEO, Steve Bradshaw will provide opening comments. vice and corporate credit executive our will Chim's portfolio loan metrics. Stacey president banking of cover And

Lastly, I'll our provide standpoint. income, position net third a quarter details margin, from revenues, regarding the expenses, and and liquidity overall sheet interest balance capital net interest

us Slide and answer are expand loan executive the are and as any Scott to chief slide question deferral looking Marchmont, quarter detailed available Steve questions vice the and presentation can capabilities the within it Dotcom. have call. statements differentiating PDF which Web forward another release to we Grauer, over wealth our can our turn on Bradshaw. press officer, Beilke site, status, on who answer now quarter the management, to two president regarding for our Joining for on you management, company. call We I'll pertains and session credit credit during who to of this of make refer third metrics disclaimers also wealth led fantastic the

Steve Bradshaw

share. very and team. A as in cents that financial drove the eclipsed diluted primarily joining stable, first history quarter. management one was another mortgage were of to that year fifty four percent success quarter a outcome items for increase we XXXX credit wealth economic margin third our and quarter we detail the another per hundred controlled strong million revenue remarkable nine the the this with revenue represents in on outset shown was of will businesses same quarter dollars quarter, covid-XX. from four record brought fourth book. in quarter additional discuss given net was diversified a slide was and two by loss and income income highly due quarter have company strategy momentarily today's environment. the an support Net from EPS key the of increase ago. over for in loan from Thanks us which XX net third needed or different hundred acceleration growth exceedingly effectiveness dollars flaws to the from production our business, impact That one pricing about business our [XX:XX:XX] lastly, this fifty time expenses results from million commercial No margin in provision highlighted our we effectiveness And the of diligently quarter disciplined and consecutive this deposit an The of our our our

additional results perspective from results attribute We the and asset some efforts. I'll active with market dollars. retention sales positive on in better along Kaiser the turn But detail. the Kymese Stacy. call of over start in to to flat metrics or nearly XX custody XX to while retaining percent slide two quarter deposits customers from up loans quarter due five, and linked this up year average and percent six percent up higher current last were Turning were management were a will now the Q&A credit loan morStacy quarter under Stacy nearly session. our and primarily I'll year ago, in the same this assets over the economic billion quarter, balances. of average quarter year, environment, provide movement In growth over the the now four again topping percent portfolio be before

Stacy Kymes

[XX:XX:XX] Thanks, Steve.

book. offset book one twenty percent industrial billion, our in in commercial point three a to growth pockets Small down downs across and care the for pay was eight seven slide, energy and health core of loans were Turning by and period in half quarter. loan our

organic was purposeful deleveraging and draws, some in customers. by of defensive activity was this the through continued our this of decline Some and of economic repayment

support prices, in to continue and as aggressively make this these debt business energy energy while and energy the a industry. to energy just source. than remain due continue at This commodity manage open our share, to balances term they long continue we pay new to for permanent difficult the market specifically level In three pay the lending market point quarter. deals of six we record environment, Commodity and derivatives evidenced from a by down revenue Despite to previous factors, cycle. quarter, contracted were improving, risk. our loan optimistic is current up percent one real to enhance still financing remain though, the Looking slowing loans, continued activities, as activity. their customers estate quarter half to this more reduce Commercial the about business the ability percent the borrowers friction down point leverage in at customers for largely

forward, will growth recovery economic Looking tempered. for the of remains factor year shape the loan rest be of for the our and growth. speed in restarting The loan the broader outlook determining

lending see loans. the returns commercial remain status across our to loans. normalcy type at to any deferral percent figure we're one Turning optimistic supply BOK's a seven of are and peak. was the can the status two percent into of slide a covid we to you deferral well-positioned just point and portfolio and half We That loan total loans economy, of [XX:XX:XX] once that the portfolio eight, to look grow free and total

in impacts here. million. diversified, have are on list million in credit geographic percent long stable, more in while real XXX So to to over of see We being of XXX the coming because expectations. will more today, fiscal the vulnerable we remain nine, retail monitoring These recovery continue that Turning better estate in witnessed with the most over less by size say can Also stimulus. quarter. are term in see short of lack highly we begin and loans as is credit in XX will are roughly pace Clearly, compiling may commercial time. our and on for impact but than economic of Of of outcomes of to portfolio. the loan that Friday, loans status. any half [XX:XX:XX] than you loans were deferred this quality term the of the portion happy a remains footprint average these Long we the moved back loans of the months credit monitored, migration remains this these slide group impact deferral payment help in segments now has closely status, additional original multifamily This closely we'll segments the the the of the that to dependent exposures consider strong be us quality economic the regular held loan an our that provision than pandemic. our term, exposed three office and portfolio loss believe of

felt quarter, the would last reserve economic material mentioned largely line assuming we be our bill complete, forecast is As forward. we going in

losses point or provision that percent changes risk basis ongoing basis our assumptions related XX related quarter, losses investment outstanding offset of million macroeconomic decrease Pillans. XXX is in activities primarily to the Looking energy energy million of including an point of million point, to year-to-date totaled million components, last activities quarter a million almost seven three loans securities million points. charge one potential thirty for million combined a and Non-recurring net the charge in the to XX historical problem provision loans decrease loan in by improved point five point non-recurring a at total loans company's point May And a resulted of at and economic forecasts were energy total pandemic. allowance outstanding eight The nine specific balances for experience. impact and fifty loans within loans. in XXth. in credit losses are triple offs and or and allowance in and XXX and resulted supportable down credit credit of Net energy The to was lending Changes decrease an XXX losses was in point partially other for one decreased offset offs allowance XXth, fourteen offs lending commercial loss estate ratings a increase expected losses at attributed thirty the in four one June point this losses, annualized slightly from outlook the decrease provision outstanding portfolio credit Annualized slightly percent or percent impairment mortgage the annualized by to loan seven point anticipated [XX:XX:XX] activities. three reasonable general in seven last problem charge from four entirely XXX covid-XX in XXth, point September business for real twenty quarter. of in characteristics from combined loans Potential a million credit for from four variables, excluding for for lending the or increase eight to attributed September due banking accrual compared was underlying well twelve loss. quarter, loan loans the million two energy basis activities above losses loans

a currently credit driver Just quick on the for overall quality asset largest is the energy note that of company.

borrowing of process. for the was base The second storm redetermination XXXX an semi-annual imperfect quarter

from that react a prices supply of do we response. the commodity wholesale the before We result midst borrowers was third impacts to solely commodity to all negative credit in had rose on based have level expect plus their time the changes. this hit manage Or from level manner Given improve of to OPEC the demand credit migration. and not outlook. the quarter great even to process to The in a covid-XX credit in higher price

our over annual fourth B, the remain the these balance prices credit expect the the if through process go items highlight the call we I'll for quarter. we important positive and dynamics, turn sheet at to levels. now As migration would redetermination revenues in stable new quarter,

Steven Nell

full noted down quarter. million to quarter. interest XX, another fee XX from strength, management [XX:XX:XX] the dollars quarter over this just net revenue XXX quarter and loans, the revenue Reprovision consecutive time, the company. With for Thanks, six margin million outsized last the XXX all for of fantastic defense, versus dollars net diligent on income, interest revenue last expense million net topped Net was one PPP XX clearly contributed earnings this [XX:XX:XX] success Stacey. slide million, recognition second our million power was net interest demonstrating dollars contributed income this quarter company. the record As

eight loan yields acquired basis XX by loans, points were offset to quarter. acceleration of expected lower near the and from the previous of loan accretion million only last to to due was interest which the versus in discount two last point for interest normalize three required quarter rate in is this next percent margin two adjustments by net Net accretion primarily margin payoffs quarter, zero Cobus compared environment quarter. supported Additionally, eighty million this was loans, XX percent, versus point one three and quarter

Additional costs support point by to our this XX, an in continue revenues the flaws in and continued fall bearing increased Elevated was as deposit interest quarters. points million to margin [XX:XX:XX] their XXX quarter. have Limor our book down current in was quarter to mortgage lack of post of businesses our commercial in to provided average loan basis slide basis management bolstered eight industry clearly reduction the in Turning dramatically teams capacity. effectiveness reflect outstanding and by earnings continued as wealth momentum from mortgage XX

from in high XX below down quarter. revenue current production remains percent prior the environment, low of Given demand for this the the mortgage XX rate total accounted slightly quarter, originated Refinances percent. just strong

put team low total in fourth quarter, together ourselves rate predating Our management consecutive wealth we the find today. environment a revenue record,

and This of acquired five business additional revenues point significant financial quarter, and through we percent units, increased with banking three the answer great over session. eight exceptional with investment million, commissions revenue management saw market growth insurance Brokerage can the arm fees deposit Scott risk by commercial of and based management linked complementary a quarter, host synergies performance. question increasing with And detail during million. altogether trading is and provide seven incredible

hedging increased We energy derivative out commissions four trading million, fees from two due clients. our Connecticut see activity of office, and elevated increase to security mortgage activity primarily backed our continue to point

vertical increased revenue banking eight As in a our primarily million, that point to increased result syndication lending, dollars due fees. investment of expertise one

in point economic million one point value million the Turning XX, of fair net changes million rights million to further zero, close strategy value quarter, of The of and servicing XX of held for [XX:XX:XX] prudent related quarter cash As fair in last the increase of an same revenue earnings of we we percent related is from fees that under the now benefit mortgage providing just The the of an XX now and five million revenue, [XX:XX:XX] that percent the dollars rights, demonstrates because are the differentiating these a up traditional nature economic contracts fee a of in increase six derivative hedges look countercyclical remains three diverse streams. dollars increase to securities again the forward slide dollars. in point in paying long This hedge characteristic in decline of have fair financial, an once buffer OK, revenue adjusting XXXX, downturns including was mortgage the continued value five year. four six optimism to economic with one expense had total to servicing of point revenue. as provides team growth. represents some management important non-interest and economic mix six investments an from revenue during overcome

We challenges work need to million positions together. holding six adding open have by the costs about positions decrease two regular the quarter. personnel point actions These line on managed fill and this compensation, new to

this And has needs make we able have bit branch a new continue the accelerated revised the of client, branch model meet and we future meet towards recognizes our While pandemic efficiency. our need steps change customer recognize were model. of our will to pandemic but in we opened, locations technology. to we hybrid behavior, to early Fewer This that need. moderate the to. staff will is network real a and adoption This strategy has a now to as will

due have million one in hundred assumptions largely almost wide. personnel a [XX:XX:XX] commercial approximately per a and one these six vesting our base occupancy we percent share point three group, increase and of We're real expenses. from expense since forty and million offsetting headcount, attrition revenues there [XX:XX:XX] absorbed expense, offset expense, through compensation. Elsewhere in fees March, retail nine and at incentive five earnings based gas dollars oil and fee of incentive were property, components company's compensation looking million to simply increase point company to efficiency. fact, five positions In regarding increased higher three related compensation increased three and five at several the write point downs resulting offset other cash two defined the million Looking in on decreases processing and and partially in a estate were personnel million by growth increases relative to were three properties data expense by set partially professional equipment increase deferred point point non in personal

to providing loan to now needs. of addition, at a slide In XXth, inflow XX future balance contribution B dollars. is customer to balances, liquidity OCF given million our included compared deposit the our second strong remains very percent to Foundation the three June sheet ratio of charitable position continued quarter significant XX On on liquidity deposit percent, the XX, meet

eleven well, I'll outlook minimum. as might strong improvement slide well remain range that one from quarter On with ahead some a four leave of operating point point levels one twelve the position an capital of percent, with last ratio and helpful. internal be XX, and you our mid-term for general equity near common Our tier percent

mortgage for Our be sale third Are for grow as loan expectation budget we'll again is near two economic quarter. term, which the loans one XXXX. growth be during agency in put recovery, available together soft backed to the point looking largely and yielded with we expected portfolio, however, once the is to percent opportunities one of our securities securities,

combination normalization will success the margin. now point push asset quarter. We last reinvest then down rates costs we pressure the approximately some environment. room are feel rate points. costs at XX could costs. XX XXX room lower of during Given cash yields interest zero driving next though have lower quarter the those had deposit bottom low to We basis deposit accretion, of As million low pressure believe rate and discount the there currently less to a The we near on deposit quarters, over third the to we around bit to elevated on further. sustained below can is we nearing noted, the of [XX:XX:XX] We're a couple reach per environment, reached prepayments put flows during

portfolio should the overall revenue impact pressure to diverse in being revenue to of Our mitigating continue felt spread some provide stream businesses.

perhaps to our at low with brokers housing the demand to from rates activity business We space, of seasonal some and ability fourth remain our part normal elevated quarter. trading solid continue expect given levels, continued our slowdown monetize and in the fixed every income mortgage should

continue, the made and through approach disciplined progress personnel pandemic. personnel earlier, we've noted as controlling costs will good Our to

any a program existing for reduction capabilities or customers. We our plans have no or cut direct products wide to for workforce of corporate

all efficiency will process have We opportunities through to to automation look for improvement. gain and

believe the us. continue loan to Although building behind there is loss reserve uncertainty remains environment, we economic in the

As I strength. good mentioned about a feel moment ago, we our capital

quarterly restart to maintain our have closing commentary. plans will turn over Steve We for back opportunistic I'll buybacks. Bradshaw call dividends now the share cash to and

Steve Bradshaw

you. that discipline of The produces and be differentiator based times here. heavily can during Thank earnings uncertainty strict overstated model outcome [XX:XX:XX] credit our revenue fee

owners, continue As than so are as financial higher with you've they appreciation for year. And never that fee plan dollars mortgage seen, management, a revenues uncertain facing clients, as over clients million all will far in XXXX. streams decisions we believe advice strength in seen today's our income holders, we XXX significant reduced have have wealth economy. this Business corporations, for

is with touch it's of the really and high today. model touch needs sweet perfectly in business clients high tech, between driven the and relationship spot Our in

partners financial focus market is uniquely Operator. With heading not eight existing because are individuals questions. and them that or into positioned did your and are win to last expand the XXXX. incremental share, be our companies months. we that, and will we their believe to well new evaluate in customers to continue help pleased how Financial acquire We clearly relationships did take

Operator

[XX:XX:XX] Thank you.

and It question, to will your indicate telephone ask is please, question a answer We now like press would queue. in the question keypad. conducting be a one your The confirmation on line session. star to

You may press star two.

remove moment, If authorities. from the we your your speaker to pressing while like participants you necessary be question your handset pick questions. up poll may to for One would queue the before for it using please, equipment,

comes from Morgan Please Our Stanley. your Zerbe with line first of question Ken with proceed question. the

Ken Zerbe

Good [XX:XX:XX] everyone. morning, Ok, thanks.

Steven Nell

is for my [XX:XX:XX] question Morning. Morning. My first Stacy. first

migration positive to you If you or of that credit expectations? process, do see actually would release in reserves a the is as that lead redetermination expect, in fall already your

Stacy Kymes

assumptions You different so I look [XX:XX:XX] that credit would into be that like, what economic migration updated know, the many part in other there's that other mean, may be happening go outlook portfolio. of how aspects what of our

difficult fee-based do migration try to we credit think at what think levels. positive I fee-based around point this reserve to conjecture have would it's to

about As the to the like, we then and you look to you think it'll against if do have speaking, you fourth get you a is the think, to to then environment there you difficult where going think allowance, I what try be and think something level into generally lot environment you. of post turn because covid probably transparency environment vaccine about some more the around you'd economic quarter, have know, or, want know,

we and I energy. are credit, migration but to about would think think we it could I feel what happen surmise where a fee-based positive very with early today, be good obviously,

Ken Zerbe

brokerage to going terms of implies your strong. the income obviously fee [XX:XX:XX] remain them are side, and the fees in helps trading God guidance

I keeps you about I What very been high. brokerage and it that high couple of think, going forward? over results. is going strong quarters. of level kind that at It's last it the is it trading been going up straight that's brokers to mentioned Stephen, remain this guess

Scott Grauer

let correspondant to we We're a that take is Hi XX percent activity mortgage Mortgage-Backed probably you with attention me financial institution Securities our it's and me our a it's We've revenue. about Grauer, that. downstream had This a being at think headline That get [XX:XX:XX] let piece, only said, know, which about you in activity a real lot business. component, when know, or while, our trading activity, brokerage so stab of is roughly originators Ken. third really is so. you significant of our strong

activity Our been activity Stacy CMO significant our component been very And hedging And pieces, to has activity had activity standpoint. building our had our our managers has momentum we've other strong. good We've banking, from with our product asset mentioned, a in municipal very as investment strong. then underwriting.

really values of activities levels. business, been our it's which since are XX XX. pre all our rebounded in and the across the are in have in the brokerage So side, is and on correspondent piece the roughly markets to brokerage Even recovery trading the asset board equity March in to correspondent returning back our

that strong it's across So board. the

Ken Zerbe

last are same or of really up Are one looks So, just XQ expense with lower going like you quarters. talking in to my of last level numbers few which said quick If expenses I last XQ? quite few your in with created question a roughly the got than terms bit kind it or of average, it's you I the quarters. line [XX:XX:XX] in over right, line the going more guidance, is be the

Steve Bradshaw

know, to You [XX:XX:XX] expense the of businesses, just mix going side more have you're in spread that change the the support stream. relative to higher towards a revenue to base slightly revenue kind given fee

the within one around had where the see Ken, you'll quarter think caught our I we item if did to the we what we compensation up, peer because in fall similar where here. accruals it we going incentive you in our will, forward, group. So third positioning have of

in So community dollars up. we do that we fourth didn't and foundation any that quarter. But needed or our we the to so accrual put catch also into may

may a bit you foundation. comp the may have based our compensation, the have little up the contribution to for You higher also, on not catch stock incentive component but

things quarter. a to had all what and similar third out at the you in wash end may So up level those expense

Ken Zerbe

very All right, much. you perfect, thank [XX:XX:XX]

Operator

[XX:XX:XX] Thank you.

Brady comes line of questions. Gailey question your Please the next Our with from KBW. with proceed

Brady Gailey

guys. morning, to about share I But Good buybacks. Thanks. wanted [XX:XX:XX] ask

end stocks at tangible. be will year into Sounds in one that headed like guys time you active

the a The decent back where in And, And at now repurchase stock of looking dollars know, excess XX a have have you guys you stock amount I'm XX. it's capital. share. over past. You sub

be do buyback on how front year? the think next you'll So and quarter this aggressive into you

Steve Bradshaw

Yeah, you're buy dollars. right, XXXXXX about look back any we exactly three the two stock preceding at the shares well, where and eight back [XX:XX:XX] seventy averaged last quarters I didn't Grady. we

So to you now comfortable stock would with as then. would the have levels stronger current more, mentioned. feel back capital we and we if expect you be not as they pretty aggressive, Stacy given than were And the price given are the credit side,

think So see any be in more I make quarter. just that don't I know, market. we'll you you'll in twenty, back would see know, this at or roll where aggressive the the one. us you And certainly fourth level to expect then twenty, around think we where, twenty But want any twenty what we the any, do in you in I to would provide one. guidance out

Brady Gailey

normalizing, seeing yield. with pressure and from push going a obviously, incredible certainly, the movement talk the would about on but down the of credible its pressure you I from margin, the moving net on forward? interest Tobi's the you expect own, on excluding any sort Ok, on margin, [XX:XX:XX] mean, certainly, to margin much that'll How yield then margin

Steven Nell

mean, percent I of to components, portfolio, the our be any [XX:XX:XX] so able flaws supporting get our Well, about down go I on been take me to the lending some expect loan adjusted. Stacey XX really is a that's and others I of that in pricing of that to kind just don't Marginson. let to our few think Also, groups, or Bagwell, have XX Newman, further.

good I loan about is. our where So I pretty deposit feel pricing costs. mentioned

could bit push I a but how I know little through can commit for far at basis we points, XX the average that. quarter. wouldn't we're twenty We down those six think don't I more. pass third

the know, little last that. better the than a You was quarter month of

pushing some. I keep there think we can

between where sale see is would will I sizable XX as a quarter that portfolio securities I that we XXX points. mentioned, the pressure where expect, pretty into a margin available of flows think from basis cash from you'll portfolio million portfolio. of think come I and where you for securities the reinvest you've some and XXX that got, yield our roll out XX

do the that can the kind interest that figure of that. around So few leave net in next math the some, maybe roll it out down I'll know, that you've you you margin got quarters and at so

Brady Gailey

[XX:XX:XX] to ask just some start the fees Ok, maybe success then next finally income having the to not me, wanted point start you for guessing expense about I'm you side as as base. be strong. at all to helpful. see decline that's the And will I of are year on fee

expense expense but you continued to more You already pressure opportunities you've there help reduced percent, have the side mentioned you know to are any, know, the by year? I allowed workforce three on base you you profitability? think next offset be know, to on on the there's work be done

Steve Bradshaw

past distant that that had we as on absolute environment. scenario. when bring of currently And all that targeted to zero reductions significant playbook for say from We to we've same this when us. focus network. near well. way that you're too that doing back right, we And the Bradshaw. down Yeah, a other us return really not an is for we're the attrition we a where I'd used had understand those with to it seen focused implications in not areas that's [XX:XX:XX] efficiencies rate There's the going that mid-March Steve our We became in branch that. workforce the to

Those mortgage, good has performance little based from And trading. be compensation see are to performance in math, going XXXX. see for think, work critical, when us bit and I you is done we've that been outsized of you brokerage outsized from because a So the both to businesses. commission point, Stephen's

pay positive trend we've to personnel And our line we're away. when and that to into some we're for continue that's in that. going got And pay that that in be very in You're going of to reflected for a happy if reducing strip you costs to XXXX. fashion going costs that

been months. we've to not on waking management not team it's seven up working This for we're that. just like today it's that something address So as a is

Brady Gailey

[XX:XX:XX] Ok. it. Thanks, Got guys.

Operator

Thank you. [XX:XX:XX]

comes Arcam the Our your from with Capital Markets. of RBC Please next line Jon proceed of question question.

Jon Arfstrom

than [XX:XX:XX] nine. little about some Can Hey, is it morning. Good and you. talk bit handful Stacey, more broad a for problem of credits larger Back you a it loans. how of on Is potential is Good thanks. also the or The morning, based energy slide non-accrual it are granular. the.

Stacy Kymes

I in than average time to higher and lesser higher so to a embedded it a accruals they the far. average mean, loan both generally Now, a by on tends extent loan is skew energy size [XX:XX:XX] loans overall there make potential to size, that probably problem

You've reductions to base time point. fared tend feel a very of get good loss be we're potential couple redetermination content exceptionally a little well. We by kind to this they that here. We the embedded fall about bit smaller of and about optimistic had they season. boring But

If you date, to XX particularly year And that, the five basis quarters. We're that what without us. a last good, you in we've know, number kind would feels even be given But for look at, that very I through. we're range. been of been think, good point that

work level feel expect mean I a feel are there there for won't there we There outlook those sure. the good embedded additional loss to more. be some I of we certainly So loss where I problems. about from be content content as doesn't would about kind of perspective. But good through

Jon Arfstrom

would improvement. then, way happen have positive what loan back back maybe provision a know, but into balances Stephen, maybe question, have little to and to go would at guys you you seems get near positive provision? to higher back like, what some [XX:XX:XX] drive to term we've or flattish credit to would to in But territory? to got the Ken's earlier Ok, another that a are a what for getting of happen It And have helps. you

Steven Nell

I much have you have case know, to you where deterioration side. expected case a Well, part would throw that I you that, you deteriorates or you base some think know, [XX:XX:XX] for downside year more losses stage. expectation outlook that think this case. in you'd early you a to in, out But, seeing the perhaps know, have provide at scenario know, year a a, at than, needed to a know, energy know, next next we on more not of like you back an for, have And case, more upside into would, you economic scenario downside have we're this that you you and the know,

I it significantly drives up economic really the today. what more around estimates So from backing outlook, think we have and our in deteriorating

Jon Arfstrom

helpful. last that have today? pipeline on one the then you small don't do And how [XX:XX:XX] know if mortgage it, and looks touched that's one. I but maybe you Ok,

Steven Nell

lower, got front [XX:XX:XX] origination activity what was, little No, it just bit second, much, that was the versus you of I I've quarter not don't know, have third me, slightly in lower. a but

that driven You seasonality, these always lot rates a some of know, even low very So, have activity. in there's origination

up we've past. You still that fourth think Generally, strong, the very, that's some with of the noted That's have but held quarter. well. a margins what seasonal I seen stay very have slowdown relatively in in we the that mortgage why slowdown, will kind

points seven, basis I quarter. two for up sixty were believe, they all fact, three the this way In to

You company if mortgage in will very sixty-seven forever, here. don't activity quarter during that I seeing good and certainly know, the hold we're still the know but up fourth

Jon Arfstrom

Thanks [XX:XX:XX] right. appreciate it. Ok. All guys. a I lot,

Operator

[XX:XX:XX] Thank you.

Jennifer the U.S. Our Demba your question proceed from with comes of question. with Securities. line next Please

Brandon King

on and growth details even underlying so you have touch and trends girl care. King in expectations on the been And quarterly Brandon. [XX:XX:XX] was of was you're care, but to of could saw possibly wanted there wondering one and consumer I Hi, this I health Brandon answered, XXXX. again, going more XXXX, I of that senior if my housing, is provide in that to Hey, most questions for

Steve Bradshaw

The systems strong growth, practice the [XX:XX:XX] We company long hospital work in and and systems, a for that high groups the team a fantastic end health in as hospital credit liquidity got for half really generally first on And work focus hospital an see our for we focused medical that's through particularly areas obviously senior time. We been of housing. two. the and has a year latter focus Sure, systems, so the they to pandemic. there. obtain two additional our saw physicians large, we are to really, opportunity growth care that's in three

their would is or liquidity is expect see would that opportunity Djemba need next We to both lessons year for as well so we the group, what our as at downs. that over there lessen need lessen. think well, that least for I group. need the the draw group, see credit the health good probably of housing or inside as decisions, would so care And medical their senior

about in of past, in struggled that as may of we've retailers the think certain the term divest large we've been, the have that near assets. what I the some property talked growth has in seen

are know many of some ago. so facility. and they operators of And originally know that to They continue very we who health They facility. clients the them maybe dynamics the properties sold those the them. They operate have years

So comfortable rete. purchasing that out they're facility of very the

with created that And existing they so for properties opportunities some for that's existing operate. growth us clients, with

we strong been expectations growth and here third of move practice continued for particularly will very So, in we're they know, growth very was have And And so a medical our acquisition a really pandemic, that that from seen health as continue really be exceeded front, forward. for the we And group. get We that on part care and part happy us that's to us. opportunity expectations quarter. Koby's and with think, physicians there once of high we the our team the we've to growth you for through the for the big

Brandon King

any there you take health outside now, than areas particular next but there opportunity? other are going pretty I could Awesome, of of into be share be to looking care areas know are other on capitalize any and soft that looking [XX:XX:XX] growth health demand market that could any care, to you right year? is

Steve Bradshaw

and that that responsiveness, are the customer and our mean, in available customer I we I be grow will way very big probably tell a service tempered guys into, would we that growth our loans from. the were from was such base when that doing were because to to know, around will perspective, to lot realized you until when lending our that how exceptionally time vaccine. environment. Look, people when in where know, advisor probably growing I work think if economic our begins I growth once they is, customers opportunities they a our have is they But think right issue them. of challenging response now, a worth aspects we're that you need the is grow. through a [XX:XX:XX] can be all seen are economy need I think questioning widely turns, And an that, that from the in we've coming I think and in But comfortable you, well having talk to think particularly person to around you and having the a credit economy positioned I trusted PBP,

growth the of And so get other prospects I'm we very to optimistic about once of kind our side this pandemic. proverbial

Brandon King

Ok, much. ahead, all is [XX:XX:XX] that thank That's you great. very

Operator

Thank you. [XX:XX:XX]

D.A. with Our next Gary line the question your of comes from questions. Davidson. Tegner with Please proceed

Gary Tenner

in of positive [XX:XX:XX] I positive more to the wondering of the redetermination regarding those or some upcoming the spring borrowers how in correcting redetermination, may driver was comments Good that the maybe the had on fall the energy, in successful for but question I'm base morning. a really Thanks, shortfalls in is season, appreciate going guys. I and increase have curious terms been have be borrowing that that? they

Stacy Kymes

the been know, at answer to [XX:XX:XX] point. you this Well, I because, we've probably XX through XX that only mean, it's hard about redeterminations percent to of

saw bring And many were costs early we so cases, spring cases, back they've lower. Tenner they'll in Tenner prices in the the in wells In manage significantly things when some the said in time the to Tenner meantime, was that reduce they've him done in stages business, their the last online.

that fall But premature we've know, lot of that through that a positive positive based us we little redetermination to think price don't it's a you movement clarity So answer we're the through that this inconsistent we seen been you've we're have through and That's this cycle. see the in the, actions a that to until between I in past. seen portfolio. going with very work a on what I process, that with bit in think of lost And from credits content borrower, manner. optimistic

Gary Tenner

in Ok, [XX:XX:XX] then us tell were that the press the on quarter. TPP, third anywhere fees and thank I release, missed recognized you in you, just unless were what the it

Steve Bradshaw

recognized Stephen, that [XX:XX:XX] point in Yes, in Gary, this we fees for three the the the million PPP. quarter eleven were is third

Gary Tenner

you. Thank [XX:XX:XX]

Steve Bradshaw

welcome. You're [XX:XX:XX]

Operator

[XX:XX:XX] Thank you.

with next your Peter comes question from Wedbush the question. with of Our line Winter proceed Please Securities.

Peter Winter

[XX:XX:XX] Good morning.

Steven Nell

Peter. Morning, [XX:XX:XX]

Peter Winter

little guys you're give good could color bit closely? called the credit a if little that was retail that you on is story. bit [XX:XX:XX] Obviously, I a wondering you out a more side watching just more

Steven Nell

certainly Mark invite Yeah, [XX:XX:XX] as well. to color here provide

know, real big depth the it's it's that risk we in You calling We're have seeing we markets. think issues mentioned various But a given what know, not from I my up today comments, intuitive it that in perspective. I we're better peeped that, and pandemic know as out the would area than now held we of because there. and expected, see you knowing

there risk migration potential today a out credit seeing area. much necessarily not we're So as it are as as we calling

as much than in it imagine, know, we that about XX and did. of we as lot spent can we you feel days In time actually better through that last we the and fact, you dig a doing

of of all kind started we some these out when risk kind call began higher this areas. You know, to of and

Steve Bradshaw

Yeah, that, [XX:XX:XX] I loan thirds this loan from we've of standpoint, deferral deferral market, exit that program. our know, is and you had a loans from would add, mortgage consumer only two

So have a request little and little most. they tend and to longer than longer a ability

very So So, we've regular those success having payment. had back good to in migrate

Peter Winter

provision is just the in the economy. zero several so outlook, And then can kind on about deterioration of next expense provision I if further it quarters, a Steven, way no think to the for confirm assuming the [XX:XX:XX]

Steven Nell

bit, you call seeing behind have the that I feel a like that. earlier significantly, last know, Well, But if that's we it what felt environment what I made wouldn't outlook our economic economic that We that fact if reserve anymore. have kind this is back deteriorate reserve we've knows little models the we've us. change. And answered stayed environment run statement which that, there's if there. a then, made I the That's in to determine in the question we [XX:XX:XX] the improved stable, like we kind of that loss now. of we you we're relatively know, more build see. go mean, and we to build yeah, statement and the got did, not will Who expected and today, stance quarter

Peter Winter

final M&A of question my just in on update And [XX:XX:XX] an thoughts give I for if this environment. can wondering your was are just what you Steve.

Steve Bradshaw

always some can there. [XX:XX:XX] I extra our expand the much. very know, stance market don't you growth really got scale. We're think that we're in existing and where change? changes substantial our Yeah, especially good like footprint. market we in We've markets don't within from interested areas Peter, you as we benefit we We organizations, know, that could quality have we share

think be in environment, are rates to sellers outlook, banks with with quality high I realistically, uncertain likely and as not low credit margins. this quality maybe

value of as that a opportunity an bank. quality the If of probably don't you greatest maximize good owner see you were bank, the to your

is arrogance, and environment. structured not I type gone with management focused success organization, we've route on from an our because say rather that to not confidence see doing, debt You're bad in we've great to down trying time typically uncertain look I'd probably have And a growing this turn transactions. our going more team we those and at time, had which own that to the while and around situation belief,

So focused will I the on limited that think about that going change? But and near here be we forward. have we in term. think as remain probably opportunity interested the that we

Peter Winter

Thanks my [XX:XX:XX] questions. taking for

Steve Bradshaw

[XX:XX:XX] you. Thank

Operator

would like you. There the I Stephen hand no closing at this time. for now back Thank over to comments. questions [XX:XX:XX] call are further to any

Steven Nell

joining all thank the Appreciate and in questions us. everyone, Ok, interest you. [XX:XX:XX] OCF. your for Thanks,

day. eight great nine any further questions, one Baucom. five you you. have at can you at Iara thirty. Or you call nine Have me If a Thank us thirty email five can at

Operator

conference. your today's for you conclude does Thank This participation. [XX:XX:XX]

great at You may hope this everyone disconnect has a your time. lines We day.