BANC - Earnings call transcript Q2 2020 | Banc of California, Inc.

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Operator

Hello and welcome to Banc of California Second Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Today's call is being recorded and a copy of the recording will be available later today on the company's Investor Relations website. Today's presentation will also include non-GAAP measures. The reconciliation for these and additional required information is available in the earnings press release. available company's is Relations presentation referenced on Investor the website. The

included to begin, President on Officer. to -- like earnings to we call I we California's the to earnings direct and forward-looking both, the release would including now statement Before of would Harbor Mr. Executive like everyone Jared and presentation. Banc the Chief Safe the statements conference turn in over company's Wolff,

Jared Wolff

morning quarter Good welcome earnings of to second California's and Banc call.

are call talk our today's Accounting on Hopkins, about Chief quarterly all will me Joining Bob well Chief Chief who Officer; Lynn who will Smith, be in our Dyck, Financial Officer, Officer; and our detail available more Credit as during results, as Mike Q&A.

the built growth. restructuring we capitalized an manage has both conservative, inflection as positioned COVID-XX to that in Our well that from the well as it's second have to impact of well reached point through pandemic, performance bank is bank quarter a reflects transformation

past our hotels, strategic funds, cost the the profitable the portfolio portfolio, margin, Bank, We credit crisis, by from economic low subject to Despite levels inflection values. deliver properties the capital as over the the These airlines energy, the interest reducing restaurants, of are net challenges and underwritten lowering coronavirus, continue well us of run-off the Through with fund to created pandemic. benefit deposit long-term where with the portfolios, to we and real Southern transformation hard and earnings of base, operating our and we service our have are efforts course, enabled other a generate by Paycheck work stressed recovery leverage SFR, and we estate to have in of to, our our including the by of positioned loan warehouse of of the multifamily levels point we while industries we balance Approximately to have very such improving the an that portfolio low inherent substantially of advantages notably, residences, California power our exposure returns, The and relationship-based hospitality. year, to type limited high most our enhanced environment, relatively had to growth our secured of is by we the our predominantly commercial secured Program SFR loan higher entering brought we that expenses. us XX% from Protection continues believe enhanced execute targeting. initiatives and on rate operating interest effects the loans continue increasing and sheet. primary

XX% at increased up June loans, loans in In this and year to of from to ago. of the our at end prior a XX, As the quarter XX% we a second XX% time total key other commercial progress areas, the substantial at result, customers made quarter.

the PPP deposits non-interest bearing commercial $XXX received customers. attributable loan million of by of portion proceeds by Our growth this XX% the quarter, prior end with from to or a our increased

bearing our improvement we our non-interest of quarter, dropped The to reduction second June at deposits, as progress total XX%; contributed quarter, resulted up a execution. prior XX interest the XX of the cost vision expanded improvement believe margin basis this the at consistency this and XXX deposits. prior further are significant in at a deposits increased of making which clarity quarter. basis XX% reaching mix largely in XX, deposits end points cost spot our environment reflects in mix, our a points the of this points of compared past rate the time result Over year from the our lower average with rate basis the net from substantial ago. to to points in deposits XX reached interest X.XX%. deposit in deposits along of our the decline in quarter have bearing year, the by and of basis XX% Non-interest the to comprise of of our And, our our We the has

deploy devotes to loans deposit considerable into gather resources organization quality deposits and providing high-touch and relationship-based that to mid-sized low-cost and businesses. enable small to Our high services products us profitably to them

like long-term, channels in value provide a personnel these focus be franchise reflects for into deposits value. and to multiple low-cost investments translate and technology this in execution deposits. both, bringing funding this, our of margin the time not and stable base we in the While obvious developing as and may earnings, commitment will true The protect the will over made that have

clients some estate opportunities and We share are new On company; existing deposit accounts adding managers our the and our areas who strategies, team in all increasing strong gathering both, private our as from additional deposits progress seeing quarter. our community of contributions have banking business successfully of of specialty the teams we accelerate real to timing of from banking operating relationship our as each business as banking, well are deposit commercial and permit. core to clients top the conditions market and

we agreement, expense. terminating our over complete $XX from have was the Under new agreement to naming-rights in the One we of with quarter. released able been in which these were opportunities second million of terms our LAFC, future

retaining XX.X remaining number partner While relationship of approximately restructured partner and the $X our our million LAFC's as save in the year banking still primary will a company per as a collaborations, next other years. position for

agreements our terminating is continued efforts with significant improve our quarter this in leverage. associated forward impacted and to our reduce our future expenses charge operating one-time naming step a second results, rights the While

of deferrals the with as in periods. million pace loans focus the June. significant loan both, March the XXX approximately and managing are ended quarter in clients a of We deferrals asset or and loan April, and borrowers our up near-term deferments now $XXX actually and lays are of approved early our and COVID-XX. deferred on extensions in coming reviewing XX% with of includes active of quarter activity of our our deferrals deferments for the address the evaluate forbearances periods, class. we our as me through XX by loans accommodated are chart this deferral financials requests and A of forbearance Many a presentation the on loan loans. SFR Let We the XX-day of where impact out their XXX of expiration current deferral non-SFR and just declined their we deferral total we deferral number moved dramatically quarter. deferrals approving After the we in six of May in portfolio,

personal borrowers expect commercial or a a to that those some deferral, enhancements, as order need a additional For for in reserve continuing additional for in be demonstrate additional collateral, we such obtain an granted. deferral to putting guarantees generally period credit

or SFR to XX%. the portfolio of higher to a an value average due underwritten deferrals forbearances legacy loans rules, the with consumer but that below loan percentage run expect We to is well with

Protection second in viewed manage As offer loans to means the Program the through for $XXX PPP helping continue with We extended, has we ended million clients crisis. been quarter Paycheck these the a as an aggregate PPP jobs. we high-touch at that workforce bank. of loan XX,XXX the offer approvals represent more client the businesses for We reinforce opportunity loans experience to that as an than

guide a process online our Relationship application and an than to funding. rather clients we take ensure to our portal had up Managers the applications, So through entire timely successful opening

this we believe process to forgiveness our efficiencies the will Additionally, approach clients. administrative facilitate loan provide with

clients make attract also service While new our model, can high-touch we and use ourselves existing differentiate difference. true to a we clients serving framework used showing focused on to with the PPP our how

result, traditional substantially, clients type over commercial of relationship. business consistent targeting development efforts, able a all who whom were customers we our brought add many we of primary to that As in are new their with deposit are the

to New $XX.X and XX% our saw total single-family an clients non-performing due by accounted properties. well commercial increase is delinquencies million for secured approximately assets mostly PPP We that and originations. relationships of both one in

of quarters. of under national on has Additionally, the build the to shared for credit related will for legacy address components $X the we reserve specific CECL quarter. took provision Lynn several that million the been non-accrual a

Before it of portfolio a our market to Atlantic turn on CLO the the over address to received CLO briefly about piece we in number want last month. call a I appeared her, the following that questions I as

about place in firms highlight did our and defenders have banking want of Wells our particular excellent to as the of isn't Atlantic an to it be would We overall are exposure our so While the as some that analyst investment many of we CLO information shareholders much I holdings that portfolio. piece, CLO our in rebutting minimal and possible made job analysis in market, and assertions the Fargo's loss comfortable provide particular. do

no impairment. before other our are importantly, the by is shows follows. of lastly, on our our And perhaps three, losses rated was most need CLO the we brokerage included some All have our conclusions the U.S. rated understanding slide with should portfolio. last away two that too AA analysis And quarter, in indicates minimal helpful our the XX% approximately being entirely level reached into diversified information firms. or in this, take want as CLO it permit. data much takeaways underlying AA supported One, ever securities diversify experience As that of portfolio in be to Without to stressed loss. said, CLO as and broadly industry; consists principal two, to by the securities; dollar weeds would of the that would also analysis in exposure we AAA we the and deck, severely non-core market portfolio first we with that Moody's had conditions portfolio consider getting from to a our detailed be AAA legacy assets still that has from key risk

at loss of at second reduced of that dislocation basis. the the CLO by on portfolio the end approximately pricing $XX.X in share per quarter, or quarter occurred the Following spreads in an our tighter unrealized the the we million $X.XX after-tax end that saw first the

have we a experiences of investment point the is this to of our to When more securities franchise that level one at holding removing enhancement believe our trade attractive opportunity this progress to volatility are portfolio returns. diversifying served of our opportunities accelerate best time, this that the we and there out timing portfolio, the view in amplifying we appropriate, by them. the continue is Given the we larger as until credit of would the in in by another

to Then remarks the questions. performance. Now, over Lynn, call the up color who'll our on more closing for I'll provide I'll line some opening have operational hand before

Lynn Hopkins

Thank you, Jared.

to available quarter quarter on stockholders for common performance. second share. negative refer or our The our please $XX.X to the Investor investor can our loss deck website review Relations $X.XX as million per mentioned, which as I be First, second found net was

share per to million $XX.X exit which and million. with by impacted resulted loss net of $XX.X LAFC, were for of losses pre-tax credit Our our a and naming-rights net a agreement loss in provision the one-time long-term decision charge

operating compares adjusted addition, sale $X.X to of million $XX.X during accurately and in for termination core the $XX performance million for the recognized income of debt corporate the on quarter. a pre-provision million company the gain $X the income is of more extinguishment quarter, million the in adjusted million reflected in pre-provision The In which million early we of FHLB advances securities. term for $XXX pre-tax $XX the our prior in pre-tax fee quarter

in and momentum income build will year their our moving statement into progress reviewing of and I interest of the income. saw interest to increase of compared some in of earnings trends. our total quarter to the of before balance million net margin. a we We underlying combination rate the strong by assets our second half core average X.X% highlights resulted $XXX net can in The an prior think primarily sheet revenues on continue increase start and interest We continue future. a income from the net to in by we increase the higher power driven in in our growth our

our on interest quarter basis cost by of more as earning funds the from the margin XX points prior our was of net increase X.XX%, average than an assets. Our yield fell

in franchise. earlier, our points fell deposit the basis highlighted Jared to basis and the average, This basis the quarter, for will as XX of the basis our opportunities is progress during for was deposits quarter average we expansion at cost mentioned, additional of end our second quarter XX spot the second made provide the XX below illustrates have rate As points. of in cost deposits XX it us quarter. points and Also, points the third improving NIM

above further average In have maturing June, we FHLB which a a million addition, reduce of extending rate. In maturity such a and lowering six which interest about their late we next advances, will million weighted of the X.X%, X.XX% with XX $XXX $XXX $XXX CDs while we cost November FHLB basis million points had restructured years, and advances, our duration months rate prepaid term deposits. advances over by of of the of rate term XXXX of a date X.X

cost forward. the overall expected As aggregate further a going reduce are of advances our result, our funds cost of to FHLB

our not to loans loan yield within given large at for portion our least are fixed declined exposure both, basis our interest from Turning a hybrid rate prior to to re-price of relatively points earning and X or backdrop three and that the mature assets, reflecting average quarter, portfolio re-pricing limited the the our existing years. scheduled challenging rate

through fees PPP income approximately months. second to [ph] Funded X% or quarter recognized quarter, loans basis estimated nine over the added of points life During X our we million collected PPP interest NIM. we in which $X.X on loans

While points, lower being held decreased our XX increased in CLO excess market, million repricing Briefly, points, to $X.X assets. primarily million. X earning down the asset yielding liquidity decreased yield current our only $X.X as well loan through income non-interest portfolio temporary basis as to basis into due yield our

division sale The these to [ph] $X.X for gain quarter at of an included the of for million second out which the I of second record fair quarterly of value; sale held from like $XXX,XXX fee the prior increase. on their in included quarter banking Bank's approximately the concluded three-year also loans million loss unrealized average $X the and of quarter accounted the a mortgage quarter. securities majority of to linked contributed sale the would earn income mention

for received a has quarter. non-core $XX of volatility reduced on quarters. amount year's billion million address which by We core first $XXX,XXX declined expenses Q&A, Moving happy to last I'm to costs been and in second four benefit from decreased while some in quarter there XX% expense; in non-interest fair assessment to $XX.X from from regulatory the assets below being for consecutive expenses

are our assessment from assessment quarter quarter higher benefited costs credit. first current than an second reflective regulatory rate FDIC The of and run which

average it's that work year-over-year business ratio important into transform assets assets While mind X.XX%, a basis increased keep the core expense XX% and to as total XX to we to to relationship-focused declined bank. points our non-core year-over-year assets by in reduce

our second $XXX our quarter by our to as billion Turning on remain efforts. We sheet; increased relationship-based balance repositioning total assets to $X.XX million in focused continued lending. we the increasing

we which loan and been of million of As the portfolio $XXX in approvals, had expected single-family end of which production loan million most had declined legacy other $XX the our portfolio, declined of PPP funded. residential second the run-off million segment. by $XXX quarter, The PPP offset in

be on The expect for We the details disclosures high the loan to segment. collateral deferments continue details on quarter loan relatively balance around updated quality to estate real to provided a by sheet The portfolio, our also leverage expect low but values. largely underwritten are by to loans portfolio we year, towards loan by our continue which expand. flat addition supported to presentation weighted in operating last and includes investor continues to

increase non-interest We also bearing million from billion bring non-interest down points and points efforts rate total have most of airlines billion the increased in reduce second energy, Deposits end cost XX% sectors to other representing of risk new at average continue deposits, deposits same increased period. exposure quarter of quarter, proactive our Demand deposit all-in of the that end bearing with from plus hospitality. costs with of basis environment the from to $X.XX XX% drove XXXX. total at $X.XX $XXX XXX interest the hotels, quarter over XX% limited of to the XXXX the and to of our from This restaurants, relationships basis reaching are the checking, to deposits and the to combined and to deposits. deposits second time XX pandemic;

believe As value. mentioned, things deposit can was cost of one base the do we valuable truly franchise strong, to building low previously most create a we

loan relates bearing investment the and products overall, plan tremendous our growth While of our systems ahead we of due PPP in to deposit a is the progress to generally dedication of our non-interest portion our recognize team. program, and

XXX% of loan interest-bearing ratio bearing from six the to mix declined average of have in quarters and to a and growing We bearing checking prior grow at the growth, to of consecutive non-interest growth growth deposits our posted XX%. on With loan end our deposits to continues base. deposit deposits, non-interest quarter total exceeding deposit deposit even

$X.XX our XX% CMOs driven of million the XX% debt and increased portfolio The or $XX billion, the million in agency rated with loss million bank quarter million unrealized securities corporate additions of securities and portfolio. the securities reduction $XX Our corporate portfolio securities majority by of in We of subordinated mostly in ended remaining $XX.X rated net net investments. the to of $XXX the the AA and securities. BBB AAA BBB of are

the portfolio. As tighter our Jared in loss reduced unrealized spreads million discussed, $XXX CLO

CLO portfolio pre-tax book tangible an the $XX.X at million on of weigh However, of unrealized value our continues with the the quarter. loss end to

discussed that total We commercial due out These of of and average million loans loans. or quarters. had The the million prior low, quality. loans XX%. are to challenges shared is loan with to and loan the the and million million to $XX.X the secured well showing At is XX% Turning non-performing a value quarter-end, this loans, total the single-family three credit $XX been or $XX.X both relationships resiliency loans XXX quality and increases included the weighted asset $XX.X basis overall loans total is million points basis loans. Nonetheless, XXX created non-performing to to national XX% totaling one the and $XX.X single-family believe Credit of properties. both $XX.X by relationship increased which and delinquent pandemic. relationship $X.X are portfolio non-performing million quarter NPLs points million is residential by mostly in of of million or $XX.X legacy in loss $XX.X delinquent on value, increased SFR given risk given below of to million lending

lending non-performing consumer temporarily and and delinquent longer due However, loans take work tend to can to through regulation, elevate total our to loans. single-family

and SFR As a excluding for quality entire portfolio portfolio our for we show metrics result, investor the our the deck. asset both, in

turn the our to and quarter. me provision CECL for Let

other factors, our lifetime losses decrease in total we macroeconomic million disclosed loans, in on in non-accrual specific a our credit growth past, $X pandemic model losses; deterioration provider ACL a includes million June Using third-party uses in deteriorated and reserves, credit recognized discussed million rates based we've current methodology The our in historical XXXX economic and GDP the on offset our to the assumptions and a legacy by data, and of peer portfolio As with nationally the general current our of $XX.X estimated and Economic the variables that shared loan forecasts forecast first impact for economic forecasts. in a related baseline quarter second reflecting previously $X.X many reserves model the loss portfolio's by the have credit. updated forecast since quarter the for forecasts rate million. provision real included qualitative XXXX national including unemployment and recognized the published increasing declining. the provision and $X

recoveries no the in net also with a charge-offs amount nominal quarter. had We of

of result, our total to an loans coverage increased is to ratio allowance which $XX.X total a credit allowance for million, X.XX%. As losses

government totaled XXX% the which X.XX%. Excluding the a loans, ACL PPP ratio coverage guarantee, have

a has Tier-X strong, over remained and several strategic XX.X% the quarters. common of completed benefited position from the past capital equity Our with actions ratio

to uncertain. prudent position well-capitalized value, a to and remains and We benefits with strategic to time our capital outlook our of the will to franchise when protecting while build use be continue shareholders maximize very at the

the and capital growth, stock will redemption, to time presentation back At our this to While we preferred over activity turn the capital Jared. through over organic in other a environment, are market. we preservation share resumption currently operating time, I in of excess repurchase opportunities plan deploy

Jared Wolff

our our progress our of has to franchise, implementing strategic been to plan you, Thank Lynn. enhance the Since value goal each quarter. show

keep our and will have quarter, ball we the the phases. we down want about three We franchise think value than strategic plan quarters Some but more field, profitability. every to in moving progress improving others,

our be The of bank the type personnel consisted for foundation business and a the want first appropriately phase of lines to reorganizing that and institution. deposit-focused realigning we relationship-oriented of building bank, the

period leverage. performing as the the stabilized Second a phase the growth profitable builds consistently have mature third when opportunity financial operating profitable the and on with And and is growth leverage organization that phase of high improved fully institution. foundation, enters generating to be a operating

we comfortable put didn't these conditions given outside Phase a feel X of we market are now that saying timeline phases, that entering our strategic our the While some we around of in timing put of plan. control,

continue We managing the operating Phase deposit focus will profitability. and of greater X, that generate our our improving we now of expenses, help build etcetera, initiatives better execute but leverage to to feel ability about all mix, optimistic and on the foundation

activity we lifting While heavy demand, are some remain the that in selective There balance loan our loan to look largely still borrowers half cleaning particularly current going we credits for the remix portfolio with should outpace marketplace. we off conditions opportunities, enough uncertainty lot being there believe demand results will There of sheet of legacy believe of we up. less production on year quarterly as up is in we in stronger capitalize completed, about the loan to and back be and attractive see we should to reopening our the seeing to San relatively for back to the a that California issues however. are as But year, planned. pursue. noise our are the continue flat opening forward. in in in And serve loan We Diego, clients of the and as is continue us markets, run pace lot the of a the of differences Southern and in the each in market our economies Santa are strength how Barbara there the from

which lot pull point future around in learning to further one crisis. have on continue levers make during how this we levels, of some that additional have operate also and the future the to we we as We based a decisions we is what expense performance, our of in our at our learned can about accelerate

successful have to services our now very the clients added delivering we are digitally. been customers digitally to in We that and conducting business accustomed commercial have

we of our and we inform bank without a our how All of impacting what's the experience our about estate for type capabilities. enhance will opportunity appropriate potential efficiencies think that commercial real are further business building. development It's certainly will

As was in of XXXX, after in look years to the foundation we about for its two a what defensively having we're years power positioned the of look ahead that end to the substantially the transformation; while place will our very improve pandemic excited bank well ahead. bank earnings like

a it operating deposit think vastly improving a to standpoint, in net we excess improved highlight is that expanding and earnings, a important an I interest a the have year core quarter, reserve. and capital healthy significant leverage base, and from just fact in margin with an operating

exposure as XX% Our with very residential portfolio is limited loan stressed industries. mentioned, related, to

radically well-positioned of level earnings to particularly returns. have drive franchise, our the are we We side a and higher on and deposit transformed

experienced legacy day We dedicated and most make the behalf priority move has our made and of difference in our we culture team, importantly, it talented, represent every and to remaining And a on the few colleagues past. have that have credit clients a a truly that that beyond strong communities. exit incredible loans a

culture We of clients of and continuing attract and existing special result, new have at unique our achieving quality are and we created relationship as powerful California, supporting a to goals, a with high our brand and Banc banking. talent

are franchise billion for listening top today. a the our of questions. you in and hope to that, your ahead significant quarters. line I up the should California's I forward in that continued for operator, go $X Thank look markets value about As the ensure and open now sharing healthy, nearly forward. execution progress families for and With you Banc safe the and country, let's coming going one of in shareholders more

Operator

gentlemen, our comes question-and-answer Instructions] Thank ahead. we from question Clark Our go Sandler. [Operator Piper you. and begin Ladies now Matthew will from first Please, session.

Matthew Clark

morning. good Hi,

Jared Wolff

Matthew. morning, Good

Matthew Clark

speak on amount percent deferrals, might I what as Maybe just quarter? deferral do you that you customers the think of the during third first payments guess, in resume all with quarter, your normal

Jared Wolff

going it's That's a number I and good A be pretty you. wait is of for an to exact fluid. see question. it and lot don't have

very went the not I trend, that at an think we're uptick want I'm of see and was last we're need rent and in nervous service total really portfolio. coverage did our we retail. that. our people through ratios, it's high our I they small But credits of obviously course, credit And if not would we loan-to-values X% portfolio enhancement loan ask to to exposure support top It's it, as percentage; and on went top that mentioned, collection. "Look, we're but of retail just another encouraged by know, retail limited seeing We're debt encouraged minute, deferral." I for you credits. have to I that. And, of say, through see could requests. low Overall, financials ready yet, we we'd our is to we performing of top as that, strongly. very sort the very support And some lot a the

And for me. it -- so raise didn't any we just flags

we going serviced we've third we're we're great, uptick, portfolio in we don't very servicers changes being not the time a by I there okay. doing and SFR to The been see vocal not will which an noise as to just doing want there's terrible right They're that with So that change a is for is be of They're and optimistic the know. sure, be some, so some, why party. there much to them see. will about be now, think portfolio. It'd but

of down $XX For end percentage huge by and of that example, million SFR. was quarter, at the delinquencies went the a

a and white-collar And so, to running we lot loan knowing values portfolio. of mentioning loss in what the is we we a with but because it's keep of fundamentally have; just noise, portfolio, the think it's exposure there don't

we So be there. good going think we're to

Matthew Clark

great. a million resolution And the process there? is on relationship, $XX Okay, there problem new then

Jared Wolff

now? Chief Bob split Credit basically commercial let tons what Bob, it's our that of our it, property well. want process with is you I'll family Officer divorce, on families it's two but SFRs a Yes. address portfolio. -- is two it's that business on Dyck, talk some a as right about It's to that disagrees the sides

Bob Dyck

Both Yes. $XX million $XX We're the -- is CRE have both monitor a over family-related that anchor. relationship, of The going very -- million commercial primary piece piece. to piece Jared real low with said, them single-fam about it continue has SFR loan and and to work just closely commercial or borrower. in business The of the split the between as estate to the XX-XX, as values. the pieces those

So Jared of to protection we'll SFR issues for there And piece, monitor continue piece. just as motivation consumer the had to there that that payments. is relate there, lots mentioned, are

very there. So we will to slowly move just we -- have

Jared Wolff

quarter, us. on getting a non-accrual, they're off And, and family, have the We're it so quite monitoring come on that business And starting to if Bob time, They quiet talk basically, it the end and to to non-accrual brought they it we're it's divorce current. but it aggressive. closely. I to now it's Matthew, and we going after a brought Yes. very they actually of wrong, because it's actually more for went I leave but believe long that believe, doesn't show correct it but I'm current me a us

secured, So out of get we'll we're it's it. -- well just but

Matthew Clark

end you just to your the shifting quarter? third to into margin, just give And Okay, borrowing visibility of Lynn, do gears have the great. maybe rate to the at happen spot costs the some then on June, for

Lynn Hopkins

let me pull the have pull that. Apologize, share you my I don't it I at right support and fingertips. I'll Sure. did Matt, it group. for with Actually, here my

Matthew Clark

you stick? then, pipelines that of both of your exceeded okay. PPP I and That's taxes lastly growth pipeline July business, much been much and have And maybe on the to guess, that might deposit and on were for that speak your might how there -- loans can of new just deposit XXth loan this the to funded. deposit growth quarter how

Jared Wolff

talking this of still what deposit now see about day. good and to we're an doing. were really we keep right the we're I and growth doing that's have a We engine the deposit really, so was Yes. and that other we non-PPP, We -- Lynn think working so about going pipeline and XX%

it's in have but strong and relationship true right is tools, growth. place, really why a low-cost everybody DDA valuable are is aligned non-interest quarters this bearing, because checking, which showing five all just is right getting technology, deposits. very we we want as the also the of low-cost around at consecutive right incentives We the times which And -- we're

year. payoffs we outpace so very, the of outpace good run-off that. in of half thought second would feel would half in and year said the first production And about I -- that had We production outpace that the very would the run-off

and end margin. -- I loans. to still put of case, the balance be terms on mix a think we the relatively year it going and will or portfolio of think flat either our that's the expand assets, whether investment production but we're better of the assets We to through at continue earning in will the be sheet

Matthew Clark

you. Okay, thank

Jared Wolff

get the Matthew. earning -- yield for We'll asset loan you. you, Thank the

Operator

Right, the David Feaster next Raymond from comes ahead. question from go Please, James.

David Feaster

good everybody. Hey, morning

Jared Wolff

Good David. morning,

David Feaster

and you you in getting just been expect would some some seems lifting than probably question I I the to build it's the on the reserve on builds going but guess like modest modest mean, deferrals I on downgrades, the quarter, some you and follow-up would as only reserve risk wanted year I here? the half had a some done, thoughts think -- estimate re-deferrals more credit builds migration. of about Matt's how just maybe or heavy expected start forward. maybe larger we this second rating

Jared Wolff

ahead, address Go Lynn that. Lynn. let I'll

Lynn Hopkins

Sure.

reserved. end So think June, I are as we appropriately the of of

think I related some nominal that's important to that related it's provision to some credits million second note recoveries. of $X the that majority The $X quarter we been called general specific million was out credits national have on non-accrual. to shared did reserves. We the had

updated see portfolio loan don't significant the builds. growth, same. have of but impacts the significant I look and in risk expect to we've stay we considered mean, absence the how we'd it, appropriately that we to and reserve our I provision economic now the relatively in forward, looking at think factors So do

Jared Wolff

Yes.

your note morning David, this I I think -- right. got it think

-- are non-performers. We are non-performing XX% have -- top loans, three over NPLs, our of XX%

reserved I non-accrual, we a stuff. we So We we've well well got value, $X relationship got $XX.X That's right? that's against $X like credit now sold, legacy all we're specific this against million new and million -- million national this that's SFR being we've and a secured. got a that's and think million at have got that have on reserved $XX is it. shared that SFR, We've

that points nowhere in loan And as -- don't well, credits got we reserved three expect look of reserved and build. of loans I now, to so ways out of -- think mean, so a any out are our as reserve the who alone that offset I some of very XX% to in addition we healthily have also I They we going in those peers some huge residential. that, have kind too. capital sort conservative. if at that's migration right we're way maybe -- So near those And concentration. terms of are, we've are Lynn that I amount frequently, growth

And all so buffers. in or just the capital, it's it's sitting whether are whether in those reserve

a feel and are it I would us take I more. about where lot, So, for good to reserve think, we

David Feaster

those how overall I And those versus loans timing maybe curious rate expected forgiveness, for Okay, the month we're life, estimate seeing And PPP a what Just then have program, got appreciate that's of there. the color. Do terrific most, just going to you're ones. fees on many that of you that that. that like the the I level nine guess were under $XXX,XXX? of an is for months? then couple, XX just amortize it's fees, minor

Jared Wolff

ahead, Lynn. Go

Lynn Hopkins

Yes, sure.

did is So estimated we months. view a the nine take life that

period time of to So the is deferred that fees related that amortizing be we'd it. our

million the end the second we've of $X.X So quarter. about by collected

included quarter $X.X million. second The about

mean of of loans and quarter, at we the approach about end have I the PPP $XXX how second the PPP that that million Given us. we the program; clients are to known

to most are program. the through to to obviously, the work we subject move expect how process; PPP government part, able For they with and the do

helping then, we'd the process majority our the as it is there by the So in of the see clients a of that's percent quarter concluded and level through have we -- first portfolio far $XXX,XXX, the think below the end success that in And -- get of are XXXX. as large percentage high is perspective, from a $XXX,XXX. another paper. have me ratios And I a is majority from dollar a high dollar of piece the a numbers deferral perspective you, them I of amount amount, for easy then say, under those can to perspective, for there from on a

Bob Dyck

$XXX We pulled have I have just we -- about $XXX loans. about it, about -- X,XXX million million, that is that a

you do there. the So average can

David Feaster

or that that growth? then, expenses million $X.X is net And of Right. is that estimate; fee

Lynn Hopkins

That's growth, amount. costs a material have deferral the our we level use fee. do standard and SBA deferred. of not gross But yes, being We that's

David Feaster

Okay.

Jared Wolff

out the means they're are over a was I applying -- for know, be August that only have not termed about thing are monthly forgiveness. is period that the funds don't that banks of which get understand, for because expired months expired to a used two average to sure it's an in going not the time. interesting it is, we're be it. get then why lot weren't for life of part, -- percent I you to a most of the funds payroll, going and supposed saw years. and that X.X I stuff an it's using of being this Otherwise, approved almost purpose of I'm they're

So, years, we I two just were people nine of took didn't the why but months. doing approach understand

David Feaster

sense. of bit strategic Yes. you. a And question. That maybe of more hear makes -- then a I just

growth and going some on You fearful? thoughts being bit bit I forward maybe more a good your about just a when maybe just acquisition. seeing others talked what's are aggressive your customer guess, trajectory hiring or

Jared Wolff

Yes. there. aggressive. of second and Well our kind two being we're of One is -- where different kind hiring questions so is

So leverage. you production quick way themselves a good We've production growing, you kind return, for then on people. to pay showing and got and see before the goes got to it expenses the of start operating hiring have folks you formula, are side, your opposite we're a want for otherwise, delay hiring a and but

thoughtful support it. So, about we've really people to got and make on be that production bringing can sure

kind to want curve, You of of ahead then the don't. hire but

and and versus enough. So we're million balance -- capitalize to trying leverage quarter, the I We building higher higher know core positive that operating just you earnings we really, $XX and want higher concerned. far got mean, to million right getting now. we're to I'm the did that, keep prior that it's to continue want on as as on nearly to not $XX be and that's

of we grow. we terms much want as here missteps want In as don't credit to we're where growing, to make any

And wasn't because because to the them. trying that I've to real are them, didn't -- lent our I or estate smartest not support to didn't the we're entrepreneurs I We I infrastructure like had trying be to to, the bank before markets. in we comfortable lending people that think

know dislocation. going they rents service. credit we're have relationships by how bridged way lend high we we this on to are play. basis, and our for whole talent collecting it. estate be there we think the in the are the might have to on not that these that we that the and turn in really to we're them takeout right a to infrastructure, can if That's then also, borrowers take organization we'll who aligned, is people, Now property, going are the people there and doing And then to the to And we're the they know have operate we be real them, have how the institutional our that grabbing to -- going we'll really out relationship too best -- like touch they providing I of be and market where They under-performing loan are perform, buying lend should. properties be advantage for who let around to a side

we us, they were that and anything. of the No working were story it, new side. them come So, concerned no calls, to and a for they relationship million of at to a -- that didn't largest We We'd were do bank well. the agreed no way treated and one they been this never proposals, leaving phone over counter got on customers they're protect were bank deposit finally be morning just even $X brought the very that they got thought could while. it quite on them a out. over I they as because they at they to the The

program, to high was a it's so, And got they a were it wake-up you if in a And we they a PPP as -- as touch we HMO line. are relationship kind bank. The PPO. have We call an didn't important thought. wait did versus way being that the they weren't as on focusing like that of

You through. the high-quality somebody is going on you We walked business. really to phone, We phone. understood got your That base. to the picked you up client translate

throwing hiring And not to about things. so rate the -- selling on and wall. about need the not real going understand we're we that need a It's how relationships, we're against It's about bringing people -- rate. over

down we I don't types on to yet. I conversation a can. want those based We're just mean, aggressive it. people. rate And team about so, being credits. not had working we're of with want them down find about morning good as have a I to any conference turning hard this as I my turned

deposit costs to of -- costs be long lot our because it us sensitive of go pull. our flexibility levers have bit in loan still to more gives terms the a way to have little we still drop, a As And a less deposit price on side.

are have We maturing points. many that that CDs basis XXX so are near

ways, So, gives loan we side, flexibility quite costs a can on still on the drop us side. our rate deposit some which the

can. And credit as be because need. don't so, we we're we as are those any aggressive missteps don't here we to going But want headlines

David Feaster

Thanks, guys. I extremely it. That's helpful. appreciate

Jared Wolff

David. Thanks,

Operator

Timur question go from Fargo. Wells ahead. comes next Braziler Please The from

Timur Braziler

morning. good Hi,

Jared Wolff

are you, Timur? How morning. Good

Timur Braziler

their shout earlier in exit the of Wells on Good, to guess how you. with Fargo additional the saw of for be guess balance portfolio expectation sheet? fitting out, are I CLO I that quarter. we and and question. divestitures only appreciate a thank another flat out so close with you weigh bank portfolio, CLO the the to getting seeing pace that do a how it'd Yes, price I start We

Jared Wolff

Mike? Lynn Lynn you or want to start?

Lynn Hopkins

Sure.

do CLO in it, So, as million on we as unrealized progress loss we've the mentioned, far a still portfolio. $XX have as

we're close million, it as to million. think I today, $X $X stands

quarter. stress that the and our believe AA the good. money still They're says None AAA CLOs testing, downgraded Given them still we during are rated. were of analysis our

of For now, the the for still and a mix, at I earning think XXXX forward divest not in to looking onto opportunities. are, better significant the asset them we're remainder loss. They as hold I of look absence in

looking and we assets. now. alternative where earning them into we it, evaluating exit opportunities stand at that's we will if So, are But and arise, the strategically

Jared Wolff

-- it low even given had to I a some Yes, how on used they good yield be them, mean, that they volatility. at though least had

even they have yield. Now, a crappy

then quickly So and to a it's get piece portfolio one we of to don't rest and that's we selling having remaining. the them? to can at how the the by like of also permanent want loss do out we loss But taint it don't want

to yields so, them question the of to going low. think in to find I your to careful We'll a something. and so earning be problem able we be it's because have much terms replace are be don't about asset of it, And

than just an a of loss. issue not to So to wanting a loss take less that, I take is just think,

Timur Braziler

investing this going guess securities Okay, stickiness into saw put portfolio into liquidity that's keeping I I incremental the aggressive opportunities And point? good investments liquidity? color. of the then fast increase on PPP to is quarter. And further play to topic, much we are you deposit during guess, the what's the other that investments how for how the into or plan at

Jared Wolff

see we're go, deposit long of the and the our continue was to it is as mean, engine to -- I PPP question, -- they flows influence on deposits I were think our the way let us much, Lynn deposit a go. but I'll PPP, as portion continuing don't going are. that's just we just general

Timur Braziler

great. Okay,

Lynn Hopkins

the portfolio. liquidity during put opportunity the to into the take some did of we securities the quarter additional So,

the portfolio we during is investments there and quarter. we've that flattish achieve sheet But to we the grow Our talked about liquidity look that CMOs, other then, securities net the to portfolio. would forward, balance the I'd year-over-year. see deployed the additional as in so be be we expect looking securities growth And were for some corporate did portion a will securities of growth loan

Timur Braziler

what on quarter And Okay. yield do the you for investment purchases? then, have was the new --

Lynn Hopkins

the purchases probably on it during X%, Investment $XXX yields and about around quarter X%. -- was million other was on the of was new it portion,

So probably…

Timur Braziler

Okay, great.

Lynn Hopkins

Yes.

broad about X%; of them kind and $XX $XXX a So, was the breaststrokes. at million in X%, million of was

Timur Braziler

due in that decline me, in from more last you can economic provide And of the change response bit to strategically was a was just C&I little a part to color. -- there release the certain facilities the great That's reducing in that color statement? statement in on

Jared Wolff

Yes.

is warehouse our they market So, then mortgages. backed they to very originating short, lend, they securitize, and in and non-bank are and days. lend lenders out XX And XX and clean days And the we again. duration to then up the up, the they group, who lend line,

mortgages, side long left And so, wanted holding we we duration. we that and make saw the market seizing on up sure the going get securitization to for weren't non-QM to

we lines. back our So, cut

important not but It's at very we going." at the of outsized have to team. was takeout, here for They're And market are because see and and make to good it's some they warehouse borrowers any there's do. the and business lending an sure we're our we here down for our things of covenants." experienced also where pause make looking sure business just us. an very we going It's it that We let's want don't good. saying, want very a violate slow So, what to us, "Okay, said, "Hey,

again, they and deposits, out million borrowers. points, It's hundred looking very great -- it's a and for institutional did from important very not of on not business that are strong several a the well-known but deposits XX it's the -- have warehouse lend to basis we bank. huge to business, have below side. a it's We low-cost institutions job an us, tend team, true We for

Timur Braziler

trends on post -- or all securities? reversed And at the pretty is have it quarter still jammed those still end, is or up

Jared Wolff

back to more up But building down. see Well actually, end, after levels. back getting it quarter historical and went it we

Timur Braziler

very you Thank it. much. Got

Jared Wolff

Timur. you, Thank

Operator

Steve Please go The Riley comes from next ahead. question Moss FBR. B. from

Steve Moss

morning. Good

Jared Wolff

Good morning, Steve.

Steve Moss

about what at little think how that, do a curious here, for expenses that bit a of initiatives wondering expectations little year, Just And think of we a event? of kind of Jared, third on sort your rationalizing or the further. see whether this we expenses hinted is are Kind of XXXX quarter. about I more kind looking you

Jared Wolff

and let on then I'll Sure, start, dovetail it. I'll Lynn

Lynn Hopkins

Sure.

to the I quarters, our overall continue down personal that come through own technology in So, over everyone's portion consultants, use a continued and observed attention efficiencies to operating how think several expenses the to to in to but last size, our of balance et cetera. have resources, due also decrease create the sheet

lower levels opportunity So, second as continues there or based in be we to look the a I percentage at I on think lower quarter, forward. see that some the maybe think degree we

initiatives, working look at we large out as to I networks, real far properties. think coming As continuing lessons estate have of all remote, learned branch

going to into little And it's a XXXX. continue will down think I bit. that be So,

Jared Wolff

there's as Yes. in We at right that, we obviously looking are We're need going they they we I Do terms branches as opportunity right and that at they come are to branches for renewal as many Are of at look the always size? at now? up have think location? the some there.

us of right figure people to well, historically spread how now? office to some I see a environment? you And are would think now. looking every more rotate the issue really about, out. just office we're know we're at looks the what seems the a on feel you're have Or don't keep putting office, I I and don't the people space re-upping office the looking lending them And to everybody we're going any space thinking I had? new think like if kind probably do tenant thinking need getting right mean, we're we much way Do I about at That there's and thing and we about office silly do But space. lot really same think lending lend -- same what's I me. we office comfortable an So, just as makes to leases the just space. saying, aside as think duration this of as overall, is. people. let's size you else keep that think I office branches, to out business Are leases? sense. too, I mean less have going I that of same mix space if you I okay, is

was that's terms I have heard of Lynn way in of and I we a in other a more are other her our a partner expenses, terms And job for talk obviously partner, really accelerators guys here, that sorts since got But you day we and LAFC big it a great great obviously CLOs and in expenses, of restructuring and the listed we're our FHLB. appropriate mean, of we're did bank. presentation a with about Really, In a doing that couple of one. team it's me still the them. -- one. have,

of still bunch way the go deposit We a whole as mentioned. on side. to a I cost We long maturing have have CDs,

levers So, pull. can there's we I other think

Steve Moss

much. right, you appreciate All that. very thank I

Jared Wolff

the CLO, Thanks, Steve. No Steve? questions on

Steve Moss

Thank now. you. good for No, I'm

Jared Wolff

I our quarter. last conversation enjoyed

some for really had good us. You insights

great. was So, that

Steve Moss

That was good call. I did appreciate that too.

Jared Wolff

Thanks. you. Thank

Operator

from Please question [Operator Davidson. next go The D.A. Gary Instructions] from ahead. Tenner comes

Gary Tenner

Thanks. Good everybody. morning,

Jared Wolff

Good morning, Gary.

Gary Tenner

Just couple -- good morning. of

what balance average Just the you if guys quarter? out heard I the on there, put couple PPP but know number don't was I the for questions of PPP.

Jared Wolff

of average The outstandings? in balance terms

Gary Tenner

Yes.

Jared Wolff

a That's question. good

Lynn Hopkins

to million. Average outstanding for put it around Gary, $XXX the going I'm quarter?

Gary Tenner

about then, the on or offsetting run-off? the the should half comments think of the run-off run-off portfolio of the in you Okay, do of about for Jared, -- back your back year originations perfect. of half them in be the outlook kind year, And of ex-PPP we portfolio pickup based originations just thinking

Jared Wolff

PPP well. up we've it's make got as No, -- to

stuff. round to don't make if $XXX we up. $XXX million, potentially, $XXX we We've I million million $XXX then single-family numbers So, more off got know, our at, PPP, a got and million running got of other

Gary Tenner

half? the up Okay. make that thinking number of you'd be back But the to for sufficient originations

Jared Wolff

Yes.

Gary Tenner

you. Thank all That's had. I

Jared Wolff

Thanks, Gary.

Operator

The Luke next from go ahead. comes question Wooten KBW. Please from

Luke Wooten

Hey, guys.

Jared Wolff

Luke. morning, Good

Luke Wooten

give of Difficulty] or total to wanted Difficulty] rolling any rolling Just don't I off. dollar those [Technical the [Technical amount did you more clarity off? --

Jared Wolff

-- were you cutting were could out again? Luke, Can you it speaking. when you you say

Luke Wooten

Yes, me hear sorry. you Can better?

Jared Wolff

Hopefully.

Luke Wooten

little the bit more [Technical is and next kind of timing the the a Difficulty]? or off, XX on Sorry. [Technical Difficulty] in [Technical amount Difficulty] it Is of rolling give clarity it months?

Jared Wolff

Okay.

PPP runoff So, it for loans? what timing because asking the sounds the out cutting were like you're -- -- about of is you

Luke Wooten

runoff. the about was It CDs Sorry.

Jared Wolff

it. Got ahead, Lynn. CDs. Go the Oh,

Lynn Hopkins

million, billion, say referenced, I'm in evenly $XXX rest So, about the CDs December, There's the the $XXX the the to $X.X spread of those spread six we kind out evenly it that's months. of that is million about are next pretty going over but put mention had at CDs third some the then at retail. a brokered end that second flagged additional of And the the liquidity that of over the we the first on some quarter. We portion end I we would think quarter. had is I quarter.

So, those are running course. their

go over. much liquidity them we'll or those in how the roll let on is to depending look marketplace, So,

this about $XXX are those year. million maturing So,

Luke Wooten

it Is guys hear any you better. Can me Okay. now?

Sorry.

Lynn Hopkins

Yes, much better.

Luke Wooten

-- like the strong. these at rate we looking looked Should hit It of yields. yield of kind roughly Difficulty]? kind the loan C&I the on held of But the in kind in just CRE of from categories I'm drop. Difficulty] kind kind [Technical the of looks [Technical the flat like model

Jared Wolff

higher. going trade So, lending put But I to volume a come mean, some the on lender bridge the to is down. to I'm put holding assets. earning probably on the to going have to our bit CRE little yields a and to loan, probably it's and trying on bridge we're be

multifamily And on commercial side. come so, the and a might little side bit it down

Luke Wooten

Okay.

Jared Wolff

the best. try phone whole But employees to. just bunch we're our I said a to that. it to going listening of doesn't. going not hope on I happy have really I do that I'm

Luke Wooten

Difficulty] tremendous then In Difficulty] about Difficulty]. growth private kind differentiated I Got past the the a kind you. little [Technical But you've product couple give Difficulty], Difficulty] the [Technical deposit [Technical of [Technical in growth [Technical the talk rate you the category the mean us bit Difficulty]? just of [Technical can that's given and growth just over little more of DDA. so [Technical Difficulty]. that a kind And was

Jared Wolff

us happy So, distinguishes your follow-up call, But some Luke, side. you it I I everybody that we in cut thing not moving ourselves isn't then It interested to differentiating are the have out on talking portion a on color to of focused relationship again. like most too. deposit think things. get of so a at properly, think a want is a deposits, interested the and -- so you how sounded and And to that couple Number answer one our we're borrower didn't question we're us. is company the we'll I their in if good

we're every making in sure are lending we So, with bringing deposits that relationship.

offer bit it's really peer by of some we're aren't class having we a to side. that's of Second excellent weight getting excellent services technology bring I I because of bank, there. services we clients been good. or really And to good. so above the at this compete true bank reality complains the we're banks. think here I over clients is think that from have And our technology have I've able on terms the their our to every deposit got too. ever When our we little have But to -- technology, all, ever acquired we punch And that able in about is

to front Third over is helping dedicated figure to bring deposit lines that's we've out got how accounts. our an excellent team

don't we to work team who every have and with can bolts know clients, can. a nuts But angle. the with management sort that that so, work need And we treasury of have team a deposit lenders dedicated dedicated of

how because or they're was them they a And know can to help and help challenges this didn't a approach identify out whatever are, bring can that you the figure working figure when right is something to over and where they're what's relationship, client, solve having then they maybe -- we that they it listen you the differently. could so, on challenge didn't do to out client, way an expert know

deposits whether trustee, our focuses and we in also sorts -- really I those really bringing institutional a conversations superb an fiduciary, at excellent they're of And so, them, or elephant we're otherwise. or that that large bankruptcy good kind great job. really, highlight for of would And specialty are are hunting on success. they're team doing having deposits, teams A job. have

we're all the on company-wide, cylinders. So firing same

just program make they're people We have would the we do products, that's say that incentive what the people. an reward I right it got your we've that and building. for kind have And doing, right the attractive we'll but we to and all and I high back at answers circle touch you. a with that's question, very sure if hope we're of way, that not, culture we

Luke Wooten

up Difficulty] No, definitely follow that's [Technical I'll But Difficulty]. kind of on Great. [Technical

the you Thank guys that. about for taking Sorry questions.

Jared Wolff

Thanks, Luke.

Operator

from Please Tim Coffey comes from Janney. question go next The ahead.

Tim Coffey

for Thanks questions. morning. Hey, taking my

Jared Wolff

Tim. morning, Good

Tim Coffey

the borrowings before FHLB those willingness I at what's and an trading to the specifically average move of out life you guess have of CLOs? million Looking out have, that of four years, $XXX the your

Lynn Hopkins

it's Lynn here. Tim,

are million; the those FHLB longer $XXX term advances. So,

the So, and those, break those. the seven pretty portion big maturity of rate is between five given maturity years to the and on It's years expensive a date.

to did do hard piece quarter, small at So, that interest based that. just We of our is it very rate this and environment. carrying not looking Probably overall funding. the look current on

of the other in Overall, spot down a for our XX X.XX%; a down FHLB expensive. So, based advances of come note think back has refinance bring $XXX longer for that talked at to next a But borrowing we relative we our able do payable were year, term to price. have that left. off million term X.XX%; November rate effective one combination about, on the out X.XX% kind and to million rolling matured of circling And of the And overall, of about particular did pretty advances are cost then at those were rates able in we the basis the advances what's question, come of the and on then I prior FHLB $XXX points. we is spot that's when advances term.

Tim Coffey

get to targets kind where for and get If could to trying as expenses. look from, you that closer What this do It a on say, percentage then expenses kind near-term percentage a Thank Okay, like -- a I that's have want it's kind you just of lower. you. longer-term points. of assets, down X%, not of handle ratio basis if of expenses of average at And your your XXX -- around assets? you seems helpful.

Jared Wolff

Lynn, and pretty jump is you I in and at were looking some peer low. we Before X% Lynn looking analysis, that at and Tim, we think I just yesterday, -- were

don't want just would get the below. assets. as It or do to make get be know that a X% I But be to at There think, right there. what I benchmarking going lot to sure the to X% it I to that to a banks, So, We think? looked way -- we're great you we're percent below below get of X%. great. would of all But are Lynn, getting close way. aren't

Lynn Hopkins

would right, expense have just I base do create I we add, leverage. believe we operating to the think, some

and lot the know you of if a there's of spending and denominator, So, numerator kind numerator, the I time the we're will. on

on expenses, few pencil there's our a to kind think line leverage rationalize we But of more I of technology, our items. successful, opportunities where sharpen sort environment, be we and objectives, think should the notwithstanding and some I doing longer looking would assets we then balance change base there. bit with we're have we little that expense we sheet If the tact expanding the to period, growing have. earning a over and at time not are a growth think

great bring to is, I down X.XX%. long-term a I think, balance there's think Jared's But growth. I that So, some the point, think to I requires, sheet it X% think, goal opportunity

Jared Wolff

Yes.

get by going there is think growing -- So, to the denominator, I we're yes.

Tim Coffey

Thank sense dovetails questions. comments. right, my make prior All I all well, that and appreciate you. No, your with are those it.

Jared Wolff

it. Appreciate you. Thank

Operator

follow-up D.A. Tenner from question from The comes Please -- ahead. next Davidson. go Gary from question

Gary Tenner

had Hey, quick here. one question thanks. I

think have rate looking that quarter, in information, yields new business and course you're the I second what a the now bit yields kind loan the this the quarter, provide quite I'm at? but Fed curious to of LIBOR origination from settled dust you lower of the over moving used of in new of terms the type cuts

Jared Wolff

So, in talking are you terms rate-wise? of about --

Gary Tenner

Yes.

Jared Wolff

volume? Okay. Or

against C&I We're borrowers really lending second the bridge is to of need we mid-to-upper-Xs; kind upper-Xs, good best need mid-Xs, multifamily where need are. where we something CRE So, quarter, the to in they that and I'm probably things important, on have were low and in of you get structure understanding how what a at execution our stuff, is pricing important loans -- you're -- for that's looking is the in for that rates production need going where their the where on is work. and to in the

And relatively so, I remain those of pricing to our same the for think I would sorts products. expect

Gary Tenner

Thank you.

Operator

closing are would more There concludes turn questions the no over any like in remarks. question-and-answer Wolff to for to This queue. our session. the Jared conference back I

Jared Wolff

Thank you much. very

today. want on participating to for Just call thank our everybody

and all. investors we reach hearing quality to they and have any next free to out you or feel can questions, for Lynn, forward to me quarters. Thank reporting the As you results look always, if several from

Operator

Thank today's you. Ladies and gentlemen, this teleconference. does conclude

your disconnect participation. at You this lines may thank for time, and you your

Banc of California (BANC) 23 Jul 202020 Q2 Earnings call transcript