WTFC - Earnings call transcript Q1 2019 | Wintrust Financial Corporation

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Operator

Welcome to Wintrust Financial Corporation’s First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Following a review of the results by Edward Wehmer, Chief Executive Officer and President; and David Dykstra, our Executive Vice President and Chief Operating Officer, there will be a formal question-and-answer session.

During the course of today's call, Wintrust management may make statements that constitutes projections, expectations, beliefs or similar forward-looking statements. Actual results could differ materially from the results anticipated or projected in any such forward-looking statement. earnings that information actual are Form discussed the quarter assumptions materially to detailed XX-K forward-looking in SEC. fourth the and filing from during XXXX with and company's any could most on results cause differ in the subsequent The company's release file recent the press this call

to recorded. turn the now a this Mr. Wehmer. As Edward will reminder, conference I call call is over being conference

Edward Joseph Wehmer

day first snow. Good it's in afternoon Beautiful to earnings got Chicago, of our degrees. inches quarter everybody, we Sunday, XX call. welcome five

as So and General we first share welcome expenses and XX% – to other thoughts last always our very it our comments fourth X.XX%from quarter about are up to Dave for back and and fourth I'm taxes, Dave year and Dykstra; world. CFO. our of for With a of more pleased the first Boege, to up and I’ll the some from analysis summary XX% from million, turn consensus, me go. from about and over income Kate other Stoehr, me future. Again, Dave the Counsel Dykstra $XX by quarter the year. off XXXX. with from of X% results. last $X.XX questions future, made quarter Thoughts quarter the quarter detailed

XXXX, first a from the have to We $X.XX made have share. the share quarter, close right all $X.XX three XX% share and million made $X.XX adjustments earned quarter a million of first to servicing and would have periods, $XX If mortgage were comparative Wintrust up billion. would of the XX% in you would out take the in of in those quarter, $XX.X the from $XX the fourth

to get is movements, So, last by in some the days all, it We performance do We is. whipsawed our what rate but is XX all it every would show good. quarterly abnormalities seem pretty in the

X.XX% little of tangible to of quarter. was return the basis in equity fourth the $X.XX quarter X from ROA XX%. increased a points on of XX% on margin Our up Return from equity $X.XX.

us negative highlighted were pretax So, good basically growth reduction Results and the XXXX. be market results into the the across about of and achieved equity $X.X it. Other offset last quarter in X,XXX was quarter. first a the $X.X board the sheet. valuation Negative of get bit some, marginally weeks volatility unrealized despite for the little just the as adjustment of fine of during last million balance to by of gains weeks nontaxable $X quarter are I'll must in one MSR in timers experienced two the sort X earnings and of follows. the are million. securities for

and the expenses We had some $X.X gain results. offset currency, smaller foreign and on acquisition Trying valuation have million $XXX,XXX other by of some which pretax acquisition expenses affected our Basically MSR is negatively all out, smaller approximately we one-timers. the of items. other items, Canadian this

of believe the -- kind In resulted front, million is in quarter had that an positive approximately fourth X first coupled net less with quarter. high assets margin a increasing during started with the $X.X $X increased about On the in I $X.X of that in pretax. million were fourth quarter the remarkable days interest FTE million quarter. income the be These for million the quarter, as $XXX I given to This two basis our earning kind days points. the times. is watermark recent mentioned, average X.XX%. increase

$XXX additive still our seasonal expected mid-month Exchange They should but CDEC, cost X approximately was basis last of versus and funds the drop through of maybe last more deposits, a whole down Corporation the Competitors CDEC end funds in December. quarter all they're not have quarter deposits, remember a of their were funds end contribution CDEC million a on One the from points, -- more experienced for CDEC the So, an in as quarter we cost really up half points. reducing free margin, end Deferred was day, and meaningless. quarter a the year. fourth XX in to basis first earning the you in are month somewhat only of books bad. deposits this couple require of on bit asset basis -- Chicago average end year. through yields, first including net were QX the

continue We'll end to year environment management of the the portfolio from last X.XX forward this seasonality significant least to rate emphasis our program. funds, for liquidity our environment overall it's increases. rate of business time at In years talked an management halt to our make move -- in balances be will efforts this seven the at X.X to decrease opportunities both of decrease -- to in to We a grow the almost these and aimed which plan. that and through about cost of the marketing regard, in rate years laddering down for moved at The duration previous the expect the with towards liquidity monitor down put end has of moderating, year year. the calls. our X/XX rates being We’ve years the pulling

Can So the lots of we're a do. it's thing hurt building right we you to liquidity. can up bit, think see the margin but

QX seen the Period-end quarter $XXX and of loan margin well most million. averages income. net start us and exceeded It interest a by bodes we’ve interest our over growth, see. will give has net loans fourth the for back-end on Let’s and head

first good quarter that. moved about of have this In and the close growth had feeling of the to board. weeks We've couple saw in we're pretty estate side and into loans Our we where consistently already April. the expect year of across move good first number pipeline the through. loan strong They the quarter the this commercial quarter, so pipelines first remain in real we commercial

we rate portfolio downs competitive mid from and to pay grow seeing being said biggest we'll banks our the are to pressures terms to on latter expect due and non-banks growth high-single-digits. the the culprit. we both loan to in our said, being and continue compression with some That However, additional

However, At under do at margin should occur. should to giving because best a our any it rates, expected it least we're the peer system. full some way year still the through with any growth take and believe asset compression, on that here. bit We said sheet as we our hold will there cost a and high assault. work earning small believe compression any rates starting does for is we increases group lowering side point to a and have our margin deposit We are that mitigate moderating, it. down not with can believe we rate in We're their div balance

someplace. volume. income items Other good the a front. So the be I very I hurt mortgage I than a we numbers. think decline by expected good – the could this like in was sports wouldn't was related within MSR seasonal shape accurately we margin predict and Mortgages business. But other and but in are if be on book in that's pretty penny, I’d valuation

growth. money. Wealth and If million the the $X.X those quarter steady Fees over of still management continues are area away take its fourth with up issues you made mortgage slow XXXX.

year-over-year. with We’re very happy results the

XXX detail pretty been these high valuation aligned, well so in Dave. All expenses overhead always $XX will would surpassed back the adjustment in And administration are growth ratio four. toward out X.XX% have the under there. good by the discussed X.XX% and billion, quarter at respectively. be Assets that is Through XXX MSR

production, the the mortgage the efficiency total So times several and still of quarter of our want. the X June still Slowness overall first desired operational We're go That down saw business. are within a what on work. high area. acceptable slow we the levels. and to the we mortgage track in fourth track reach Cycle given XX initiatives a mortgage quarter with year. We're completion costs with efficiency production Phase was to last this the ways in with for

achieve pretty even of XXX%, million balance million. metrics from X.XX% charge-offs the assets a from the to the million basis $X On basis of down $X.X $X.X quarter ROA at the XXX% March. of XX QX. the growth. remains $X.X sheet in NPA good. what credit $X.X fourth down fourth showed the while NPL yearend On to of from fourth million, Net strong. down the very of assets stood to side, increased we in for X last credit million experienced points in The points, quarter, with the credit quarter Insurance coverage year. but very all the increased quarter decreased is X.XX% remain last

loans net growth million over quarter Our Total XX% held quarter, ending approximately an billion a year were from year sale year X.X% $X.X increase respectively. and assets XX% quarter grew and over ago. X% and loans, billion $X.X of the for versus and end $XXX in

back of over. quarter most to a our the $XXX the first in we loaded. was QX with in plus was mentioned from expected head that of million to moved close the million the course As carryover $XXX start expected is close quarter growth It what and

the the a expect you'd the last first just the shy quarter quarter fourth to So mentioned to in We strong we've our entering in experience the the if continue get saw had little we first But has the in seven, desired quarter, to was are consistently quarter on closer the been through we we close of in would where are would feel pushed recently pretty so over, added been good number six like we second at. X.X% quarter this loan have what quarter. number the And about where growth. we expect growth the had strongest strongest pipeline we've quarter. or momentum and

business year, and their we’ll higher the new Chicago. quarters, happen. Deposits and use $XXX versus have respectively. We anyhow $X.X are there. quarter XX% and six quarter will payoffs, than that like million of consistent we’d versus basically grew last to year payoffs about to They’re XX%. million marketing the seeing been percentage compare Translated Payoffs for concerned we're recover in or but that eight

of which end quarter On desired the deposit causing a just high our range above is XX%, ratio smidge to the the XX% XX. of

Our to over desire Dave, deposit quarter discuss our income Wintrust. other range. to expenses. I’m turn even growth to going good our with all is for goal On and other consistent

David Dykstra

All right. Thank Ed. you,

of In Brokerage sections. management touch $XX.X $XX up the wealth recorded year-ago expense last and million number and the revenue additional quarter, quarter quarter. revenue quarter generated in increase to assets million. compared offset by we in on majority that based of other activity the by the the increased year related due approximately down from non-interest income with value CDEC. As asset of normal, trust was declined A and a of quarter. upon at I'll noninterest million while to revenue our X% a the market first that management of CDEC fourth increasing in million the section, the $XX.X our full With income noninterest $X.X to revenue $XXX,XXX to that are the million manage $X.X beginning

have are higher And second they little head the a start quarter. for at we at quarter the the of quarter valuations the so, were second a than the asset first beginning of bit as of good beginning

approximately in that for quarter $XXX and effect for in XX% of the fair mortgage quarter rates related decrease So quarter during servicing to wealth prior to was resulted or banking in originated million recognized to those revenue value solid recorded recorded first side, in them. from of primarily and believe In we look all continuing get the revenues $XX and down $XX.X forward lower we prior compared quarter The loans last year. of levels year. segment quarter $XX.X all, last the sold. million decreased that first originated XXXX. category million from from XX% million from in the they changes of adjustment the grow for the mortgage in company quarter management first The and originations margins the sold was another quarter related sale in $X quarter of and million quarter our prior higher $XXX this of a in of other for revenue headwinds mortgage by were home million purchased in loans That's the sale to offset the mortgage And on XX% and and the first were valuation of to quarter. first originated the the in loan volume in dollars loans compared quarter prior loans was The to rates the average sale activity to pay-offs. production assumptions of million of originated the $XXX mix revenue

also so we rates. although of of origination delivery So earnings of adjustments Page first in to the home value, that mortgage the drop a slight MSR channel, purchased and detailed the including by banking in and MSR origination refinancing production continues uptick volumes fair activity, the activity servicing due to majority provides and revenue capitalization, components saw of revenue, recent quarter compilation our our XX release other income. be a and new the of

Given possibly the at XXXX in that, we the think could currently second a existing than billion, pipelines quarter be least originations approximate but nicely it we and existing to billion right range expect increase $X at given higher will least should be $X pipelines. now of

of million company. quarter up last million year. the we from a of in of two equity category for company recorded the Canadian recorded release. in the $X.X whereas $X.X valuation to positive that quarter from million for And or fourth million the its an cap foreign to revenue including $X.X associated million adjustment $X.X in high prior current with for in the first our foreign of disclose management approximately of a of $XXX,XXX a adjustments the $XX.X asset totaled non-interest we quarter, information, non-interest related million exchange the The unrealized on, or first the rate fourth that during of securities a $X.X quarter of negative abnormally Moving approximately a swing. The income resulted currency primary U.S. swing associated our so quarter, tables investment presented rate. the $X.X million fund the income the in million. currency approximately on exchange improvement earnings in $X.XX There some gains of was losses up see investment reasons $XX.X losses generally with in begun valuation fourth XXXX positive volatility this with Other your large in recorded $X.X, line item of recovery are quarter we primarily of a valuation million approximately less gains the quarter, in had has adjustment dollar

the is as deferred was income in $X benefits positively million from BOLI which a to fourth earnings Next, quarter, loss in BOLI equity investments million impacted up of market on million supporting a compensation the by are $X.X returns such this approximately investments quarter. compared result plan of primarily $X.X and prior

during the And million increase $X.X swing earnings results we compensation in to in recorded offsetting. benefits. also compensation the our So plan somewhat BOLI got similar a in quarter, related deferred this they’re a expense

and you that base certain If investments in look $X.X to primarily remaining from at card million partnerships merchant relates the base. increase have in the non-interest service income and we section an and

to in increase noninterest the up benefits was variety totaled expense the quarter. the just prior first more expense salaries $X that The about positive million a from employee increase $X to the the related noninterest million impacted and significant by quarter, in $X.X XXXX the changes, products that first $XXX.X expense quarter prior increased talk market million of million few I’ll I sections, due on including compensation approximately expenses, deferred approximately factors discussed. returns Turning category in the of a of from to plans quarter.

somewhat was million expense offset again income. as was the million to those in the increase but income salaries $X section, the So, it noninterest $X increase as a the well to and

and X fourth range. of to that on originations amount of loan impact as the have in first also deferrals base increases a February lower we're bit were took the little compared effect quarter. generally had We down X% the our annual salary quarter the a We in salary

get acquired CDEC in other company the fluctuate mid-December basis a then you level related loan of other a lower than which And as engagement those and So if offset a level litigation assets quarter, had level in look little to normal amortization claims in in were first people $X.X in an banking certain associated to the the quarter and the the aggregate costs management And the commissions It collections consulting a didn’t intangible engagements discussed, quarters, up were categories on all they expense have so at associated and acquisitions, $X.X fees prior related first quarter. was The lower to quarter. of acquisition those included experienced the services, compensation categories legal and to expenses, two lower their to $X.X the approximately to I brokerage and we $X.X initiatives. quarter the quite as in down the of the by the enhancements with included increased ones This XXXX. miscellaneous only of with regulatory lower the fees client compared and try fourth $X.X million in primarily came going claims. based were workout, Professional the deductibles this of of quarter before the of Amortization on settlement We by was lot first all to from fees matter, $X so legal as the which their of are increases really few non-interest million use be first meant million. technology on intangibles about I quarter had other on payment a origination expand. to tend also million to to up by we decreased were the due prior loan incentive level compared increase litigation, category continues prior other to less $XXX,XXX. quarter, had growth fourth that somewhat and just low in insurance consulting services. we substantially a health bit on Prime in quarter. basis quarterly a can on This acquisitions, the the well that And there as is level. also million of related mortgage production reset, million deferred. in expenses Professional due wealth the

Ed. So about. nothing I significant presentation will back my turn to talk to that, over with And

Edward Joseph Wehmer

Thanks, Dave.

Some future. thoughts about the

our regularly, sound us, of to We beginning at knocking like stick you to our listen are market least the For calls our who taking out those gives to here, what knitting a skis. broken some restatements record. over

so balance million on And in with quarter start time very the are pipelines start second good long Home earnings we quarter spite second with MSRs. stellar $XXX loans. start We head sheet growth, the very strong. the

occurring to brand stop. our breakers policies more warrants We’re trip, booking becoming loans enabling competition are the our situation be us we The share. policies gain more afraid our continue is terms. that disruption is non-bank pricing we to on The have our aggressive, the the and bonus market and a to in stop which in won’t and circuit loan

now reason so. see of to As do we no

We be our expect it and and loan grade the margin growth, of could XXXX and strict parameters. in bit moderation, rate pricing that our a deposit take pressure maintaining underwritings expected under standards we guideline

a asset first pressure increased branches. help work This will opened regard. mitigating and continue we increases discussed in keep and this any metrics working portfolio. continue takes is we lose margin their which where any to expect but your the never at strong always want quarter system. short-term and We and earlier. XX we to slow steady full for however way XXXX best all can Credit field. your our this occurred we certainly other on for portfolio the are remember In still cull the climb. Wealth in first It hold are they management their to We helped cracks loss the through year should road. the a to own XXXX, increases relationships rate margin way loss through the their will cracks active down December

branches plan. number are the on for We ahead tap pardon same – XXXX me, performing of have XXXX.

ones opening year. We this expect the same for the

its Oak the We’re acquisition and Bank. quarter quarter, subsidiary announcing our – of the in Rush-Oak

banks gestation to remained in our for We but expect very to such this periods to reasonable full the close slow. continue QX. are us very landing and asset, our more transaction our Looks and like asset pricing patterns range desired become

of can sure and be acquisitions – the consistent approach You our other assured contributive can make to you deals.

open we vendor can us other to for to which quarter, off but yet. asset finance factoring starts. operation continue jump also a none earning We the operation, are business in into We very a look both good did

buying very the of fourth they the help the rates the portfolios those go XXXX, out both though in comfortable first help season them, side. this over volumes that in expect and should rate We hurtful the us. four, of have on in we’re so rest in the year very with quarter year Lower spring quarter good should to them, mortgage XX-year upcoming

which continue We operational cutting and efficiency in of our progress with midyear. many by be will this cost business,

confident to will our business. short, or approach we goal this midXXXs overhead to ratio we achieve be years committed what achieve over for maybe that growth of As of rest tangible are net double-digit proud In still book a and we’re last able bank, The number committed the We is of X.X% continued and Achieving the coming number of the of this community want have XX and we’re XXXX, better. growth to build to a goals year. year higher. earnings of our value. in

you can as best we We’ll your questions. ensured to appreciate move be So support. efforts, to on our

Operator

the with Instructions] question And our [Operator you. Long from line Raymond James. of David comes Thank first

is Your line open.

David Long

Good afternoon, gentlemen.

Edward Joseph Wehmer

David. Hello,

David Long

in may overall then you be spending have as there IT to follow-up as cooperating thinking make what looking expected you we’re about today, any system your what your just looking that growth versus XXXX. XXXX? a Regarding year. at in expenses rate And IT spending, What do this a

David Dykstra

Yeah.

that, to contracts some few see our of different on line things and we’re declines look you but a We’re processing and trying you streamline some of if data negotiating can and that repay some stuffs. doing at we number

be also digital we’re should and digital that additional system some doing we and of So by to to other products efficiencies trying expect to do. enhancements order out that some that the get for savings expenses which and

in expect what we investments into is invested few number but actually those to going are the disclosed this large money last I to from already some IT haven’t as infrastructure to we’ve what I other things far Actually baked a that some be, the exactly in side. done you'll that. years year. spending year So think as won’t so last offset a increase going we’ve lot increases., see is to because moderate significant the numbers over the save

Edward Joseph Wehmer

Yeah.

but get out disclose and we’ll and contracts them says, some should things arms not they additional twist of some back investments As going we’re of that be it and that they’ll cover lot to, making.

the We side both but make other the the we’re and we them. our not read but We live of we And we the we're making investments still the security by been at by continue where offerings or with competitors [indiscernible] you digital continually standing investment, to offerings and ahead service. in and early costs they’ve that maybe required can our them X% issues closely look investments. by products, keep information motto, then hopefully, of assume the the or inflation, don’t’ standing when our X% that, given the

David Long

amount six known that in Got the market, promotional deposit over real promotional a of I it. there mailings have seen side, deposits? I've prices some Have sort deposit in on here gotten. the last And you – in any for the in easing seen of up living then one you've your of months out slowdown follow that

Edward Joseph Wehmer

Absolutely.

– or beating that X We we like last e-mails hope deposit half and quarter The our you every points. us down, month or three were the on growth guys showed deposit of our which eight the have and X% gives moderate increase our quarter in what X points. mail year, It's growth the you. in up four basis day showed banks a showed banks in another had the our can meeting Half half basis continue and in yesterday, getting year. costs slowed the last third and

deals. in CDEC in is to the demand more to funds of continue core end mix our on helpful move without think level our in that year our way the That's can hold deposits took quarter. a the The the should goal, there's really an our we grow that believe time. the their a we’re – at. offset of cost portfolio, through looking at last on first rate spread the the they you emphasis goal. the year spread I at I do the increase deposits, place all of think way we X-basis-point and work that – any getting – – goal okay. and rate growth compression grow we're coming can from probably through Hopefully we on seasonally it more We at looking off. deposits be increases this commercial little to the we're that that newer and can But relationships closely to continue mean, either and it's know

our is margin the that know we to we is under So sure and assault goal make win battle.

David Long

Got appreciate it. guys. Thanks, the color. I

Edward Joseph Wehmer

Thanks, David.

Operator

Arfstrom And question our next Markets. Capital from Jon comes the you. Thank line RBC of with

Your line is open.

Jon Arfstrom

Good Thanks. afternoon.

Edward Joseph Wehmer

Jon. Hi,

Jon Arfstrom

of the your should the quarter. upcoming in I about expecting to talked you then margin X just back compression prepared was NIM it margin Hey, occur. And pressure I the in had release question. page your on comments you said think your quote

understand, two us us comments. help those help Just just understand

David Dykstra

to we the think it hold like issue we're I is to see where increase. that trying where it

can can I it But go to thing. growth steady. from point. that At higher of could hold way book sports the steady. I that’s hold We I'm deals, X we we our increase offset And good pressure we’re asset newer they in in our [indiscernible] a David's we can And year, to it balance said can doing. an now. good in that to our I'd rate be the predict the pressure basis our points but right things to get standpoint. the a going I know. goal. stuff someplace. working can to and think think continue increase what either took we sheet. a never throughout grow from you but to said doing some do costs. We do the it's got as goal margin I last, the there. could wouldn't We're we'll deposit know when if our under answered as that I is our we've Hopefully, this moderate think we’re but starting place We it, maintain last to mean, I be And on that's I I moderate year. deposit think think do the NII that least work have But question course it we way through

Edward Joseph Wehmer

maybe way you as better said there's headwinds, pressure one portfolio than quite repricing the can some so expect three and a it is LIBOR we some was good the life whether to which or headwinds Maybe was wasn't rate maybe pressure as you're offset. But that expect months down, like we ago.

that… headwinds, So it’s there are some but

Jon Arfstrom

last year. …from

Edward Joseph Wehmer

bit. a It little was

David Dykstra

Just barely.

– it's quite it as Ed way pressure, to better not some number Maybe So a got but so as different of headwinds undertake said, levers. we've as there's was, a there, good is headwinds.

will we're the growth the courage, if but possible to maybe that have with you basis and pressure a to points from, it's where we'll offset well is but some down, could it. We few applicable hoping If pull too. there everything comes see went

Jon Arfstrom

Sure.

is pipeline, second those the pipeline, Okay. deals helps. the into the curious on how That broad about how to really I you falling loans question QX, helps. QX size down, more versus the much some margin of release read from so step of the – that and then you warehouse Thanks. significant the – maybe that in terms you going are. a of talked just just that think Also based? that part, increase of And those is

Edward Joseph Wehmer

commercial to over, know the of the that It's that last moved amount a they – this bought out your they number. million really pipeline real are should've insurance of loans and question, loans Well, quarter groups we this was I our there. the it’s that probably related you premium life portfolio, not estate, finance, quarter. $XXX portfolio, already first leasing That's doesn't premium We part and a brought. include closed really commercial-commercial finance other group give

give in billion So, is to probability you close, close the March. just the $X.XXX to not that’s $X.XXX This we December an billion. at $X.X February, a at we’re of are highest. end idea, been affected billion, gross by

pull-through pretty on went Those -- basis. bit from end rates a the going weighted on say And a So, our I average are little again, to up numbers the relatively year the of a good. same. was

I to but it true good we’ve guess, said, being So, back got up. that history

– was Our big here, – had We doing very bank a go on nicely town leasing portfolio. portfolio in a let’s here the is sold leasing that also.

bank had source. and the of used vendors additional a leasing a also portfolio to big Sold some wanted that they

pick where the able for that’s also the two years. last to those in So, place up we’ve disruption taking been market

benefits We’re starting of reap to the that.

So, we we the say our are terms that life to aren’t But making not where growth. about feel tougher. of good in that’s loan non-banks

David Dykstra

have to on the him. I front just Jon, in detail he And got follow-up didn’t of Ed’s,

Jon Arfstrom

Okay.

David Dykstra

were end the of pipeline million million at with we that million close $XXX The $XXX of close to the billion year probability and of you XX the sort million. the rolling $X.XX we of when end average the $X.X $X.X March month when with were to at our the compare of probability

of slightly. up year the but little last grown it’s just It’s actually end over bit. and So has a a down bit February little from

Only close. always I’d So good that growth make and your customer you but is like we’re the in close seeing can’t one closes. said probability good

between Sometimes there’s quarters. forth and a back little

Jon Arfstrom

Got Okay. it.

margin a seeing growth So say? right? high-single you’re potential to you’re to the to some That’s trying Is and headwinds picture still get going but message, essentially that fight there. on fight what this you’re big digit

David Dykstra

Yeah.

what think to so income at to bottom I us got best net fair it. I are and say mean, where asset look we cheap we’re going net I We’ll do mean not and but look stand. but to control to at at growth line. our good do? to the will interest we more looking are you income the that’s give margin interest

Jon Arfstrom

Yeah. Yeah.

Thanks help. the Okay. for

Operator

Thank you.

question the from Jefferies. Haire next Our Casey of comes with line

open. is line Your

Casey Haire

Thanks. Good guys. afternoon,

Edward Joseph Wehmer

Good afternoon.

Casey Haire

I in opportunity opportunities to your all – side products deposit what else and are with you one your the and are then in your the follow the all mentioned just the from you on the market there disruption innings leasing What you market. seeing any – in the given examples similar we disruption wanted up cited? or other the early are to leasing

Edward Joseph Wehmer

more acquired acquired, that local and seeing there. more see We're out Canadian opportunities getting Bank last the commercial opportunities bank We're the One – competitors One they're was more is sold. our Well, entrenched from years always to the and two Bank. Cincinnati trying bank, two to of a is side there. disruption more to good. one in Canadian their because is a biggest

number other we coming. First and couple From the opportunities. them didn’t of months booked a already bank, I are more the year, see of much. of we seeing we know

we I want do is size it think we the good it us. there's Midwest We in we to we're any better. better. we So, commercial disruptions And especially and We think good, think of for us think locally know and town and the always I side. opportunities do a bank Midwest triple in in

commercial out So, said, opportunities But better being the – find deposit side, so with moving well, we've for a which new move opened new all that's then continue we side, the to our we we the nicely with stuff gets new our that branches Retail tried and true our of bought stickier We’ll the there. in – on grown well and very think us. side branches the business. banks, to we've that. method. we it's do way our And the to retail stick and with – digital deposit

hard it's take where and Chase because from Bank for So, and pinpoint come America as we we of else. from anybody many as to Harris they do

did retail it the that taken we're But -- question? on taking Did always deposits than take seems more people. are We've loan side, are They're from answer -- -- tough. opportunities they lately. the okay? your So, share

Casey Haire

And great. on that's no, outlook. the guess Yeah, the on follow-up just I – a M&A

bank one? Is the be does that Bank set Oak would -- opportunity group. good the I of quarter. headwinds think this on closing the still have subscale pretty all in would a believe just it guys active I You wake the that

Edward Joseph Wehmer

like to bank prices group. – put banks. be way. somebody support heard yeah, want again. subscale those have the that, of get bank we the into that’s Never group, Yes, FDIC. come You that back and price attractive hit to subscale We unless subscale the we’re not underwater don’t I at it that But

the that already Trump banks are people were thought tax tax Democrats after immediately that paid I many to taxes for go see after now going thought back. prices. these that But some the prices they’ve think that of could bump and issues. – they of got they The have could the those command

down it, – seem the at to have have much not asset I as – may they earning – they filter could through stuff may They new regulation, go issues. think old again. they’re to don’t want You them. looking having And but continues regulation to cycle another

that So going third. landing which very, in extent to as a I are and ones patterns to first second to and room line kind we’re very up decide our we of sit have full actually and said, the

diligence, So to just remain – It’s – finding gestation longer we’re side work due lending and issues side. some due the more require diligence, they on find but through than very periods tax we on when should that deep be. we seem internally, through go you the go the

they’re to get taking done than longer a little So used they to.

Casey Haire

Thank you.

Operator

Thank you.

from with comes the question line Brad Milsaps next of Sandler O’Neill. Our

Your line is open.

Brad Milsaps

guys. Hey, good afternoon,

Edward Joseph Wehmer

Hey, Brad.

Brad Milsaps

of relative rest of of just areas of Dave backed to looks you where mix I lot sort talk a quarter? curious discussion, at million little average kind on what the was deposits of I was so want bit or where between a the the brought deposits. that those categories. I of to $XXX for where the a NIM you just to were But quarter, the it more curious this cost $X like

Edward Joseph Wehmer

answer David that. let I’ll

David Dykstra

had management don’t up the that deposits. actually existent We a bit someone but And a NIM area, on just on customers. on provide with affiliated tackling But existing and though is ads standard sort some And that. third good from savings some of by a our bit, of had It’s us outrunning blocking CDEs brokerage to. we customers maturing. decent having get prices we hide but obviously, actually money of accounts our we really referred a Brad, not them little of some the growth money and our cost come – that front and so we’re sort success place weighted I also companies little the party the them have in a market wealth a and marketing of that of average have we’re the promotion. in lot else and those priced into

But rate question of me, have don’t don’t – running Brad. the I’m I dancing unabsorbed -- procured. special because front your of that have So, not around in number that we’re the absorb I and

Edward Joseph Wehmer

rates, was had Is half that growth beat as or the are banks ratherly anything. three Is that no and you as any so point the we any or in – point these is three asked there tell more it for helps points. is moderating launch in basis bank basis the – X-basis and get and his Long points. now, the increase showed mean, we out the bed smaller shows the four offering increase. Those helps the no you the competition X-basis I of basis across there's , like banks there match the goofy that are reason half in points half costs flatten up, We’ll you March, the are a or cost David so other four deposits, month consistent, showed show those to put shoppers, and curve is

our we off to to of and sure side our it on asses the maintain make very do what So cognizant rate need to deposit margin we're very, work happens.

Brad Milsaps

the you little brought hold you more thinking more of that sounds to them that book easily the cash a And again that if heard that that I Now maybe duration liquidity down now? a about -- that's you that a to that incorrectly you're way little change on there thought mix are and or more in follow that just reason holding helps the bit. to little am bit on can focus looking some I correctly, Is helpful. you once And doing that, like it we're to book. is

Edward Joseph Wehmer

in would have securities are like to be We thought out. more we holding book. That's laddering started that correct. it. short-term doing We We would

a levels opinion. higher still few it makes Now, get in sense a So and our rates stock, as latter we had to no

Brad Milsaps

but off And mortgage or you Okay. around just question quarter how siphon much corresponding billion forward. coming a I Dave, going the on that curious the billion prefer, most carries it? Is network? just guidance final of of about think through do know higher how and do margin of on think then so the your that that for you what on about and mix channel the to your kind kind retail I sale or how

Edward Joseph Wehmer

million $XXX sale our quarter first originated is million. in $XXX of we about that the Out for

number similar very probably second it's that the is quarter. in thoughts Our

that So out plus $XXX billion correspondent. of number, would be or maybe minus billion

origination seeing legacy in origination too. some increases and retail the We’re our First in Veterans good actually

flat. So, be will First in I the retail expect some be correspondent jump big origination Veterans I relatively to platform, and think in our

Brad Milsaps

guys. you, Thank Great.

Edward Joseph Wehmer

you. Thank

Operator

And you. from Young the Michael SunTrust. with question Thank next our comes of line

line open. is Your

Michael Young

afternoon. Hey, good

Edward Joseph Wehmer

Michael. Hello,

Michael Young

danced kind that follow-up, to It press sounds the you quick down the release off on little stated the of be in a around next on side. it quarter. you a may that like bit backing be depending the was can margin a Just do bit. what margin expected like question But you deposit

defend term, just should then for still in think of to down the rest hope pretty year? near in we terms it we of the but So XQ

Edward Joseph Wehmer

margin. versus would think the that be headwinds are headwinds pressure I the we're can is questions, the have when answer to some answering the up prior should the to margin there so few, maybe prior said There run we on pipe a to there deposits it it could on it on on we the be how and do Ed said the few call, but could up be and some mix but down it depends CDEC as a things. other just keep we

will absolutely indicating headwind. it there not some we’re at be So, might guiding we're be down, just

Michael Young

kind much curious any that levels in how on even Okay. volume seeing that dollar putting a or just the on new production lines finance you're business? increases versus are And utilization of of premium the the you growth, C&I is in in

David Dykstra

line seeing utilization we see have this you’d quarter. fairly growth Well, we they’re good as the – Property big we’re increases at standard. in fairly cash not so

have up XX collections firmness had little going back a a bit a anymore. market from the certain premiums And business of don't we to the the is getting there in where we're bit are issue little do little So where regulatory we of bit.

you and some getting teams that we're So business good out there of selling just back our know service. then

So good we're growth there. seeing some

Edward Joseph Wehmer

XX a on Yeah. for said Fed to us following what to get knew particular numbers the that it we that it The finance who was premium regulation all commercial – was regulatory had contracts. those was issues a wasn’t our

we the work outstandings people, for that overall number major was a competitor To Our going non-bank and the of competitor, constant. it. that our is of keep years able against to reversed remain fight and like heck all us. of our probably a Dykstra to – had lost three sold out been book get Mr. our a we've XX% and We, to

smaller and So be. the remarkable. to law had which might to the had pretty sure the And the Mr. with higher regulatory specifically that you do do is of more quarrels kind to which was late talking nothing and then lost had you. all a got them have had It to Dykstra Shelby issue met been like powers the to us, changed lost. getting business ticket that. law Washington that we and I But get fees nothing back It’s they our went it to profitable know want and all us. [indiscernible] what just And business unfortunately with do we with But make that and with the are seems change we business business fighting to

little we little that by we from expect that to So but we’ll there. working back occur, are get go to

Operator

you. Thank

comes question next Our line of from KBW. the with Chris McGratty

is line Your open.

Chris McGratty

potentially but your in interested about just Ed, one is think on stock fall a given your your sort the Good for today. Hi. buyback doing stock’s where debt a high capital. of talked you on where Kind in some philosophically authorization with Dave rates. it question of trading know level component. buying afternoon. I I thoughts of a And guys the or maybe of kind don't thoughts have a you kind

Edward Joseph Wehmer

to you're Well, time have it. probably board a the that we in look in It's to practice something have any can you don't place That's want at. a in yourself a – case good buyback place. at where a position do buyback find in

interest that side, that low about if think done. that right We that sub-debt cash cycle. bit at deals acquisitions we’d are make cash some But would something that's fruition. look decision. in capital probably now. to Like rates that It's look so and it's where need to at little I’m more But support on look growth the pretty probably is is the the excess and and need the lot of case. the or place a probably preferred. board attractive We'll – at. are one to will come that a But was have our is you said, we you going deals at, time actually the look the decision. I these you buybacks From tax capital we get understand a some don't capital method just that's sub-debt if we say at low. price will the not If rates if So of deductible at we and we’re interest a we'd we’d call. cash, But at doing, this point And to to would suffice. then they’re price place stock rate cash the a in have had make and talked just

but thing We’re will at going place. other buyback in a to we or do putting look one authorization

David Dykstra

Yeah.

it think We’re I They one. makes pretty – have sense.

probably cash. we thing stock, other do most half are half acquisitions of The the is

board. it from value’s us the a across tangible So works of helps and view point book

just to we want the most half are So and of I – deals do half.

our value treatment target on bit more where free get of the like want the to of Some more little who depending are stacked stock ownership sits. it a the tax and

that too always track But come in record if capital you fact know our raising be going we’ll up. So way be as is pass. this to to

We’re do offering. an and money we our to what stewards very of do we good shareholders’

means that usually come some there's – Some it. behind

Chris McGratty

Maybe understand. from one margin the totally different a more Yeah, on Understood. angle.

in Some a of against Thanks. exposure next protect you be seen maybe over of we more sensitivity in the rate the we've six asset should about structure your sheet if six to given any tweaks balance bit thinking the little the last that A, will peers months. aggressive the have been down of shift kind rate How downside taking to months risk?

Edward Joseph Wehmer

-- you what we Look, the if I have -- look forget pages.

about – our look, probably taken a position we third. have down We have to

David Dykstra

look I at that. to got

Chris. now, moderating right our sensitivity Now asset we're

the a gone the And you for downside, XXX of from X.X%. point to increase downside. ramp X.X% from we've if down release look basis press to on so, X% And we've in scenario the the reduced on – X.X%

and up didn’t that trying moderate do asset and lending the we're and we're that and lending which working more fixed doing so some that the a narrow we're rate doing that by rate So, gap to liability – extending just to we little bit doing of gradually assets. with much side fixed before, additional

Chris McGratty

more even And with Great. the…

Edward Joseph Wehmer

the Now, rate – assets, environment is we're fixed seeing the – the or is we're need seeing the to right the more do rate now. given rate rate term –

a rate for it a lot buy asset on You not a can do cap fixed money. of and

we're our downside to away upside but also. our So, that looking protect get squared at

protect but want market. can never some, our really the did to seeing we we match. a downside rate we're insurance fixed upside. fixed people don't but want have is seeing the upside, be able I'm loans, know, So, We're And rates it. we all what – that protects more lot also for life I rate fixed to our of

the the rates kind us of – is are in of the So, for kind market regard. accommodating that

Chris McGratty

for Great. the And, tax good the rate. rest year? of the on a quick Dave, This maybe rate is Thanks.

David Dykstra

benefits lowest be our stock No. quarter tends option and from because of restricted tax the first have Actually, rate the exercises. to tax excess the we the ex-benefits

to compared range. tax effective is XX% our So, the is it's quarter But to generally probably I first quarter think XX.XX%. first last in year XX.XX% closer in the rate the

Chris McGratty

Thanks. it. Got

Operator

line with question our Kevin the And next D.A. you. from Thank comes of Reevey Davidson.

Your line open. is

Kevin Reevey

afternoon. Good

Edward Joseph Wehmer

Kevin. Hi,

Kevin Reevey

your I respect with sure ratio. to I wanted make Ed, just overhead to So understood your net commentary

at that get You committed are end full X.XX%. the to is that of that to or for year a of XXXX? level to Is XXXX the

Edward Joseph Wehmer

X.XX% I I our or long-term, think was better. is goal to said what be

took X.XX% to to away X.XX% taking the compared MSRs, in we’re we quarter the away this in If X.XX% you fourth taking quarter, the compared away this MSRs, XX.X% the MSR quarter the fourth hit. were quarter

us hit – for what you year. that said what this it’d goal If hard I to be

XXXX. the high looking goal We’re for our X.XXs mid at to as

Okay?

Kevin Reevey

and comment us your been business where started you of then that’s located, that color And on type Could that to that. you've doing. some as give etcetera you deals factoring Got staffing, the Great. the

Edward Joseph Wehmer

or off vendor to outstandings in finance great start. a the to $XX up area. They're $XX in California. yields is X% X% million in Well, They're the that million, out

is leasing out We Orange our guys. where three in have County like out business businesses now those there, some of

off a good very to So start.

base a logical to down On asset side, the side this adjunct to side. factoring lending move the factoring is our into

– not but So, good look now there. just fledgling it's that's and pipelines the very

of businesses do lower more are goal The It when things get it’s years better to good. in It's both And like eat be to whether good people than they asset-based widening, of $XXX when over tighter. three are franchise are on at business. end really ABL $XXX are not our Other our rates business, -- next range. new doing get bad. going interestingly, those very things would our our Applebee's we study is factoring, it opportunity ABL the only bad. better when when McDonalds million is things up business, or things Our gets where to It's that good. when be the the million factoring the the them

starts. both I nice good answers a it's question, Kevin. hedge there, hope that they're So, your in to off but

Kevin Reevey

you very color. That did. Thank much. Appreciate the

Operator

you. Thank

Stephens. comes next line Terry from the question McEvoy with Our of

line is Your open.

Terry McEvoy

Good afternoon.

Edward Joseph Wehmer

Terry. Hello,

Terry McEvoy

Hi.

one did in reserved I a growth million, thoughts commercial million maybe a quick bit that there. much hoping that be quarter, more question. just finance just QSRs? your $XXX get is notice $XXX Just to on the bit little your reflected I and How building of that could portfolio. but was

Edward Joseph Wehmer

of McDonald's got we to are Well, etcetera. have $XXX who of about to we're referring we've similar those most franchise loans Dunkin, franchise that and franchise million [indiscernible] -- -- are

Wendy's, of franchises. sorts those So, Arby's,

try recall, to remember, exit non-accrual of amounts three third already, Everybody last the out where your third added of as done oh, you year up you’re the it accruals As you XX:XX:XX quarter kind the higher. was we have quarter we is.

nothing One to next to they of nothing. from them went

have franchise in be do will else of off following cover to the taken through the place have Wisconsin. very market in not followed in loan is is that. state itself One was that should mid-May franchise every sale on. The a of through paid had well All things the doing been on them except he plan. franchisee of the That losses to entire May, that It’s franchise with franchise that deal. and do on

we the think bit little reserve specifically because – our a to… reserves had the plus the So I grew up experience related care lost took their of we

David Dykstra

For growth.

Edward Joseph Wehmer

growth. further It’s Yeah.

over move so. a was did we it little. fine. reserve was something rest factor specific the there quarter the in up the another I’ve the year. than of last stress it take to but in that talked That's last portfolio not in charge deal kind industry noise seeing what of about on third expect is The I just So know some our of so other deal we a any, week referred we're any or operating to about one-off. that That portfolio

Terry McEvoy

what Thank I hear. That's wanted to you.

Edward Joseph Wehmer

you. Thank

Operator

you. Thank

Jaffray. question next Our with comes from Piper the of line Nathan Race

open. Your line is

Nathan Race

I about here. loan It NIM still Hey, thing on kind just have like to dead beat of new some rate don't positive the of but rate the kind just XXX? horse, from portfolio Good weighted trajectory production guys, I’m to is repricing still. previous yields yield I at average today loan going you from the they on curious hike of guess the the afternoon. relative mean sounds what

David Dykstra

straight so it down. and commercial lower mix to or a really loans just would Nathan. that's It that than potentially fixed that mean they sort rate on loans premiere really real did life loan depends be be than if I of it's than higher got that break a you’ve but commercial the finance on side commercial are to estate mix, the you – are you higher tend – really the

next it or up a lot what worse portfolio. the if tailwinds we or lot you with down. premium generally But we're better doing tell go to finances on but some have can going we and well I So a think quarter is it's there average premium financed

Nathan Race

And then forward? Got lastly, Okay. your MSR any hedging just going on update perhaps it. thoughts out

David Dykstra

where some the protection hedging. some actions full – be head but on you downside going are quarter there without have to – taking entire the will we really and won’t hedging some a program will still away downside second do We're stripping upside. It

Edward Joseph Wehmer

hedge is we and of mean of where you we of different it and to plans and thoughts how could Yeah, way the downside hedges, MRs them upside alive found, think we one We I finally sorts wrong quickly. many -- get all and found protect the go the keep so.

David Dykstra

And given some yield than the now the been options they in are those affordable shape have curve of past. of the more

Edward Joseph Wehmer

Yeah.

Nathan Race

on just And ask got I expenses. more if one Okay, could you.

expect Assuming in mortgage what of in flat volumes year-over-year, kind kind of expense of give in XXXX? some you parameters growth can us terms of we are all can

David Dykstra

because have out thing hard do that like. those deal’s to if done there the it’s number you and have so a up That acquisitions and go we they leasing grow expenses we business, and and

that want you certainly, So growth.

in number have up it to if earlier, to my number it. leverage But down get number but the we branches acquisitions, can and want same we sales be store going if As salaries through growth X% you that we grow that try keep of the are to said clearly, the we then to low-single-digits. But have can comments sort out where change. you the of

this So, answer. mid-single-digits on same-store good is the well probably sales

Nathan Race

the all color. Appreciate Okay, got you. Thank it.

Operator

you. Thank

from the Vandervliet Our Brock next of question UBS. with line comes

open. line is Your

Brock Vandervliet

third in back Great. out. that… question. seasonal. I that they second flowed have heavily the assuming pretty come so deposits I’m the would Thanks would CDEC the in for quarter. Dave, think Is or

Edward Joseph Wehmer

their history, been yeah. That’s

Brock Vandervliet

Okay.

Edward Joseph Wehmer

them. marketed of never lot We a really

get that actually together are for never a hopefully and we’ve and so the build to are so hope We wonderful to to went down generating and there’s It’s marketing we seasonality we a us putting business only can team it these we do – a also. worth It’s CDEC. out people of numbers. eight marketed

Brock Vandervliet

then to you a down And FHLB bit? the little that would pay allow

Edward Joseph Wehmer

like I’d cover it use use held we the to to FHLB mortgages for sale.

Brock Vandervliet

it. Got

Edward Joseph Wehmer

that’s it’s it. funds, liquidity access it’s position bring Now, don’t we need got won’t use a us But overall liquidity because lower it we for They the sometimes sale. with overnight those out. to cover nice book held for and mortgages

Home If Loan that’s like you want the to gross to But up I advances. already use Federal Bank can how we put money.

Brock Vandervliet

Got it.

Edward Joseph Wehmer

we matching – asset overnight. term for there for liability out purposes its but some use also we Sometimes got

David Dykstra

the the down we lot And wholesale do paid other a was at end that’s third of fund. of what we fairly the quarter

So to bit of the have as the seasonality have deposits the mentioned extent doing come end one back those -- but we to went I’ve been little because that down a excess FHLB just Ed at up. as come mentioned the which see

down. had back maybe funds and that that see here. we funds their we wholesale gap went that to cover a where So But second the deposits little quarter translate to extra expect to in

Edward Joseph Wehmer

And something spread our dependent our funding. only But we a on is and wholly good other news whatever the books we were don’t to rolling XX-month we become keep sell, CDEC keep don’t that plan the what to sell as the happen. if nice with we averages, funds make is bank’s

we X, or get X% too. they look does so right X%, income that X.X% we get now. That’s So the plus X

Brock Vandervliet

And it. laddering Got your build a securities separately kind growth scotching should as result? we investment of the West now. I'm for assuming program in

Edward Joseph Wehmer

all not whatever. but long on XXX seven keep the be have balance, out or have or will funds, term. XX, your so yield, shorter, still work that and I not days, five said years all go Yeah, We years securities it investment XX, will to you mostly your but

Brock Vandervliet

Great. I'm in that of But it portfolio, more assuming should slowly? grow just growth somewhat of terms the

Edward Joseph Wehmer

longer end it, Of the yes. of

Brock Vandervliet

it. Got

you. Thank Great. Okay.

Operator

Thank Chiaverini comes David Securities. of next Instructions] Our [Operator the Wedbush you. line from question with

is open. Your line

David Chiaverini

Thanks. of questions A you. Hi. couple for

the guidance. I loan So, clarify want just to growth

So, I what don't an mentioned referred mid- to think to prepared much, want is question, the in just words as to had you too official there. you parse your in And to had comments, message to curious the growth. high-single-digit high-single-digit. but then I response earlier

Edward Joseph Wehmer

Mid to high.

David Chiaverini

that. you then… it. Thank for Got And

Edward Joseph Wehmer

X.X. So,

David Chiaverini

Okay.

follow-up a then And CDEC. enough. on the Fair Okay.

expect to per wouldn’t see such we – you pro quarter. average kind forma the of that sort hundred do when of million that XX-month So, couple reach that a of volatility of

Edward Joseph Wehmer

Well, the of because see the the XX-month volatility business. always that – you'll there seasonality because

then and figure our see fourth So, movement average expect have. we was it was but off. you'll billion we there, XX-month their be whatever $X.X growth what fell plus the $X.X existing to back billion to By some quarter, always you

they’ve been So, sense? Does it in whatever what historically. growth of doing bring make that excess we

David Dykstra

At first quarter…

David Chiaverini

Yeah. I the… thought that

Edward Joseph Wehmer

are going an be tends is be quarter to some average, to above. quarter. and seasonally first slower be are First below some quarter And quarter a going to obviously,

actually. this So, I would expect

are Now, be in And around tends the quarter, middle that the fourth very quarters large. to probably right average.

the So, quarter. to and I would that expect to average third be second much closer in

David Chiaverini

I the balance line the we not that in would sheet. actually would be income idea on but would on fee the thought the see deposit volatility you And hold

David Dykstra

to see both. them like I'd

Edward Joseph Wehmer

couple you're there's sorts couple it's quarters with below to If can interim. average, of other of you're stay that if a at hopefully, that the above. million a that and a the cover so, are But going even have to quarters a not of hundred month are you're going – to or for the at going couple if swing. we bad that while funding in easily And

worry think months cry So, I’d the as about it of and to not an average and overall the the exact year of for the timing quarters.

David Chiaverini

it. to And be. had you I you shifting referring about Got what missed mentioned Okay. were then and gears,

be X you completed referring by What would said related work that were on. phase to XX, June You you with have going that? some to

Edward Joseph Wehmer

put mortgage marketing. efficiency That business now, we're totally electronic a But front-end. or now was we initiatives we’re – in a mortgage where

through our the end. through it to end, of of get the out the brokers, loan through way more historical – there. this is originators the We then front in normal front business bring goal Our electronic

That’s a to good You can cut your XX% commission expense XX%. thing. down from

basis So mitigate outsourced expense. that time less looking by done to variable that under which with reduce faster work also associated on to expenses things also done Increased it. means it’s cycle the outsourcing fixed internally should We at helped get a has It – And that’s basis. cycle we're us this. added some – doing on approach a time. help can that's goes now a has

a It first in like and a XX% of cycle about of done done us sleeping; we It help the can move not we the quarter, can will had times the while basis work lot cost If of should we're variable XX% of help this So and business. to noncustomer-facing to be tremendously. some it cost, night be of the outsourcer. also too. the location because at

long working a that costs we're doing on initiatives help bring So should term. of the those over business overall down number of

can real XX%, our through and the broker. can if if a coming we mortgage down of maybe XX% business XX% get can that the old-fashioned again, We right XX% down of to commissions that, cut – get method the expenses using – So got we distribution now we've to money. that's

working market We're efficient we're market the in to more So and out more this area. those efficient in more are things more and also this get testing on, area. is to get

We’re also work. testing do some robotics this of other where areas out to but not utilize can sort we

we’re include that Phase on just of it’s stuff X So discussed. move doesn’t things ready this some the to just I and that’s ahead includes robotics,

business consistent So more making breaking variable whole them making basis. therefore more mortgage and on a out cost profitable of the

David Chiaverini

Thank you.

the of Phase the Okay, complete X. the so is to project? June What's XX completion timeframe

Edward Joseph Wehmer

Probably to forever. always We’ll ways at be looking do this.

a business the the on very bank that is business, to person with personal the service we – we our going of still they're to clients I believe and we we think best the and add can know one well. serve a stuff and commoditization get becoming that if the their this dealing the People we can think is that more commoditized worlds. it's get and screen somebody all of

There’ll end? So, what’s We'll have the to never an end. be efficient. always be more

can outsourcing. the hanging be other do. run some and can fruit of robotic we down. to outsourcing before walk that Phase can just the can take got low facing Non-customer we is this some So X side We we here.

in in side. overall continued mortgage on production notwithstanding themselves we actual just So profitability business improvement sale expect margins the the with the what the goes

David Chiaverini

much. Thanks That makes sense. very

Operator

questions closing turn no the I for further showing Ed I'm Wehmer And at you. like Thank call time. this back remarks. to now would

Edward Joseph Wehmer

you if Thank for feel you have or everybody dialing or Thanks other much. And to any issues call free myself. in. questions Dave very

Operator

Ladies the you conclude for and program. in thank participating gentlemen, This today’s does conference.

great You may all Everyone, disconnect. a day. have

Wintrust Financial (WTFC) 16 Apr 192019 Q1 Earnings call transcript