VBTX - Earnings call transcript Q2 2021

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Operator

Good day. And welcome to the Veritex Holdings Second Quarter 2021 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. Please note, this event is being recorded. I will now turn the conference over to Ms. Officer to Relations Veritex Board Investor Holdings. Caudle, and the Secretary of Susan

Susan Caudle

you. Thank

slide started, to statements Before this would to could we I get anticipated and like risks uncertainties include results statements, slide publicly statement The logged please webcast, cause into to actual to presentation forward-looking presentation, our forward-looking At remind and harbor revise two. our safe including undertakes on subject company obligation those this are differ. statement. beginning and our that refer any may no time, you're to that you if

safe you by made statement. harbor comments on For joining those the are website, that our please during safe today's of and available harbor presentation us that phone, call All note are veritexbank.com. statement to subject

will reconciliation the of on non-GAAP all our underlying financial basis, which reflects discussed the believes performance measures core our operating X-K of see non-GAAP of metrics management Please earnings a better release. the filed discussed in business. be the Some

me Chief Joining Financial Riebe, over Holland, Clay Malcolm. CEO; and will and Officer; our Chairman our Terry to our Earley, Officer. turn and the Chief I now call are Credit today Malcolm

Malcolm Holland

My We're feels continuing discuss excited I and second quarter up. usual. our pick to earnings. everyone. are like morning, back Good as team business is to to It momentum

producing million, the pre-provision quarter, For we return announced $X.XX a a pretax while X.XX%. operating or $XX of share earnings of

to per We per also announced share an $X.XX XX% a $X.XX from increase share, increase. dividend

several over last the We quarters people making been year. have the been communicating investments for we've

some those of I the think early investments. see we're of beginning to results

XX% annualized. excluding loans, grew and we warehouse mortgage quarter, the For PPP

annualized for year, XX.X% growth. are While the we at

early our unfunded we year, XX% in the expect our C&I range commitments, due increased for level to We of strength. and usage remain pipeline that will of signs the

at we're generating you page up company's lenders from that bottom XX% right, are incredibly forecast highest and mid in April, XX is for production proving same showing of it the seven, be July the $XX history. average producers is mid the On million, top XXX day productive the participating its in with under just with of also pipeline is funding Our the $X.X over in that our in quarter. areas for of of made all production loans new growth commitment up out the an should quarter our It initiatives. average bank that million are noted loan our

greater quarter. positive a new metrics the our loans of approval linked provided we trend that give non-interest-bearing deposits. impressive ultimate were underwriting deposit deposit pricing quick Additionally, sit will the credits XX costs XX from XX% more growing With snapshot at of of focus, you X.X% now to but upward, total their some the Deposits and non-interest-bearing drive continue during the is growth this growth deposits than to down bps annualized We that continue bps in construction quarter-over-quarter. our and booked indication category. we quarter, of

the last direction. to over quality asset the Past to continues five a in quarter for trends quarters. total third straight dues with their lowest declined assets. NPAs positive X.XX% Our reduced of all point

credit to provide will Terry with decreased details ACL and the for loss Terry? PPP, further Our mortgage momentarily. X.XX million quarter. Clay net and warehouse $X.X and of no charge-offs excluding provision

Terry Earley

going you're couple a On to Thank these. on to graphs. of you, Malcolm. page make going comment five, a multiple I'm see

for a our annualized our dividends. impact $XX.XX XX% linked-quarter adding year-over-year of on team. to First, important tangible XX.X% This a basis value second just book management the value in per is increase back and quarterly an over translates to increase tangible remains the book per Growing after quarter. share share increased priority

the last equity. pressure important on pandemic. four quarter Rising average XX.X% strong and Veritex levels has our the this in is It graph on averaged the lower downward operating weathered metric. putting balance second remained is sheet second leverage return capital tangible on over The common quarters, and very as

Skipping eight. million less were or from This interest liquidity million mentioned This drivers times. rates. Malcolm I'm significant loans. excess a loan our tool the excluding warehouse lower keep dwell totaled about This the sixX. growth intent generated has reflecting income portfolio at our X.X% origination the X% the partially in average reversals except to XX% during to deposit the mortgage mortgage certain has mortgage shorter It than loan average of and balances interest pandemic. slide quarter, and Net total the slide at QX. remains the or segments, sits to $XX.X grown QX average increase Average growth the declined over total portfolio lower Moving second $X.X has warehouse and average growth XX% in of was absorb to in we most portfolio for XX.X% non-pooled yields offset multi-family. quarter, mortgage in It and great already PCD PPP. balances. by year-over-year. The loans. loans, all talking on activity been lower saw loan and growth warehouse increased

margin X.XX%. points net XX basis interest Next, declined from to QX

points. level. PPP QX, X of the depressing drag This NIM basis had NIM, the by represented point on $XXX was higher our liquidity and a XX than For normal the the million approximately basis average portfolio target impact

basis points. at note point aggregate, Also XX a basis NIM. XX liquidity the QX loan was at QX and drag production So X.X%, deposit in that interest-bearing quarterly production on PPP the represented and excess was

interest look three forward net QX income, following model you in keep As things the mind. and to

the the average quarter loans, quarter. and mortgage PPP First, end for million warehouse excluding second $XXX are balance above

PCD not QX. in $X.X the re-occur should accrued Second, million reversals of interest

of impact seen sale with book or net million, we loans. the being factors that meaningfully and premiums on of information from be fair us in excluding the were single on to eligible income we've slide, little categories, at QX. restructuring. grew tournament are of on Fort Over Dallas points Ferry Lastly, XX, interest deposit strongest million million revenue front, reprice in quarter function to at QX still associated golf in another of next X have our of On XX loan sensitivity expense million, of including in income QX guaranteed $X sale CDs All count On the the to XX On value another to billion rate of $XX.X growth except origination our the Capital costs biggest of We the a for - good excluding $XXX Korn down basis on sheet held XX. attributable Please Most year from XX% sponsorship nine, floating non-interest are in a in asset levels linked-quarter slide remain and the the basis. give of bps. strong will bottom SBA optimism immediately. branch basis by capital These $XX with now up with $X.X Operating costs this $XX.X ratios QX PPP. just the mortgage are quarter, the the on over XX% severance growth, increase the grew as costs, quarters about increase is quarter important. The contributor note than points. a the expenses the is QX balance holding ratios always to years. disclosed repricing strong started page experienced growth increased on XX while Worth. marketing slide to previously deposit higher way. the rate the bank a is had a day X slide declined in company our slide the the is the we Gain quarterly over that graph left and of or absolute and million. from X% the slightly due trend and sitting at shows over the the position QX Veritex just

current want capital our growth, the deployment our dividends, lastly, related slide strategic end to to few XX, a comments stock, repurchases. valuation and Our with organic priorities Thrive. I given share On growth of

and we expenses. As Thrive sale It we million couldn't QX in XX%. most to between The for more XXXX, contrast origination margins $X.X about last in a offset to X% this strong investment billion in and XXXX forecast, over pressures, of is Thrive, 'XX. million lower Thrive's closed closed business approximately growth for declined of as 'XX growth announced the QX. partnership. we track competitive earnings $X.X $X.X and to excited were increase recent on continues build reflects our $X Gain be and on an to by which due from in XX% $X.XX billion billion week, pricing achieve to originations compared in to in momentum. MBA is XXXX decrease

to fruit credit. bear Thrive to start will many Clay XXXX XX% purchase its call achieved to With of has the and over volume. account projecting Thrive they believe is Additionally, and the are growth now only purchase the MBA between volume those I'd synergies originations We're on for that, Veritex. half XX% working of execute some when There like for to back comments on turn in to XXXX. with

Clay Riebe

The here pandemic continues And in move you, Texas. morning, Terry. Thank the picture to the improve of as through credit fallout good we everyone.

improved our mentioned, over $X.X Malcolm the As million. NPAs dropped by NPAs quarter.

Our high of XXXX. experienced the NPAs the have watermark dropped XX% from in quarter third

working our continue the portfolio, for XX We and contains quarter. the in for of additional problem reductions resolution encouraging a loan on bank in third signs NPAs credit we're to QX. metrics see to Page meaningful

the their three that quarter past booked We in pandemic. see to $X.X quarter since of charge-offs can the of left You top lowest net chart in for credits. the centered beginning were levels that dues the the for million declined

failed. charge-off the to a that group million in The franchisee loan a restaurant $X.X first was amount of

an to the second pandemic. that equipment final as filed result protection charge-off related a of for The the $X.X of the for a million $X.X amount pandemic. for was related entertainment the to during of in charge-off contractor in was And filed operator amount the million protection bankruptcy bankruptcy that

previous of for in credit fully so reserves any quarter All surprises. no charge-offs was this for with quarters, required the were specific accounted provision

on allowance from criticized After and PPP, assets in reflects primarily four the Texas as the of the in the page Classified right over requirement our pandemic, experienced the $X.X in see run last to of held over a XX% to by improving for this million right GDP the of the half the unemployment. for chart criticized assets quarter's the criticized quarters. You due decreased reduction forecast as and by our improvement for with high ACL for net XX% Texas was warehouse QX. growth in the first mortgage bottom up we've watermark of that the XXXX. a assets levels occurred movement chart third of in the in of have quarter from in The X.XX% year. covered the that including end of driven top significant the losses can credit loans of investment, QX dropped X.XX% to page the charge-offs, loan by Moody assets The

assets credits team special is line and criticized to continue Our job assets, balance the special our of the encouraging. assets levels come is of stop, reducing a from due to great we a our migration team the that doing year. expect to has which of trends almost really through deteriorating to of The

nicely. and hospitality on book tracking perform logging relative occupancy, the Our revenue We're of and hospitality continues data to book to XX% RevPAR.

For March $XX form of which in tracking potential Malcolm. set the With RevPAR the sales, million some year. of was the the of hospitality was liquidity about for to the I'll watermark it occupancy XX% of the book the the to have We're higher loans, which March we're seeing market month year. over as for by non-distressed well. that, year. turn from XX% property to back Average June, encouraging of June, hospitality than for up this And XX% in previous is return this end off in high pay

Malcolm Holland

excited investments in drive trends new off as more our way. It times, said be that in strong in country, we're to prospects many and our in our arguably and markets performance such the in-migration fortunate the it in talent our growth about as continues be and encouraging couldn't state. real results so We I've residents Clay. well positive addition many of future. the two GDP best a incredibly is of to to upward for in bank's see the Thanks, to categories, paying

M&A and institutions be of various quite size, things On as metro Texas front, discussions the markets continue dynamic. markets We're well. located to in having both non-metro with current our

our this we we All to a mentioned, for the to with would half in greatly team second the space entire engaged closing, I and our Michael add up Additionally, the growth very as company. finalized in of like to quality see that formally markets. say, would there open being company's Roy, processes non-bank a this active family. the I At will of XXXX questions. our are of few to The Thrive like personnel, time, any its recently. opportunities Mortgage, Barbara, to this I line In do the time and of M&A XX% purchase investment fintech and Thrive continued to have welcome for Veritex the Terry technology

Operator

James. [Operator Instructions] Rose with Your Michael first Raymond question from

Michael Rose

morning, Hey. are guys. Good How you?

Malcolm Holland

Hey, Michael.

Michael Rose

Good.

You in on you looks far level, you did know, at comment - what which loan give Thanks. pickup drivers outlook obviously like Can factor a so in keep the understandable. the strong if the are, amount in through is really it million it ex-PPP Obviously, of quarter. doing? guys, quarter, warehouse hire? if that a so about a you are you from was this half, saw know, like that the some you just quarter. utilization looks nice $XXX It growth. paydowns appreciate Does I which on implies a It what continue the and slowdown the it's to same little really, bit back we about year-to-date. us color And

Malcolm Holland

week made Yeah. the Texas I payoffs we've in-migration the up mean, actually, is this so $XXX end will. here. on that real, already quarter, have of of people. really been mentioned big have of million there's paydown The quarter. outsized, going after but if I normal. drivers Again, We well. that's quite plus you Nothing doing fairly did back this a the business real I economy mean,

of the to ones. where come that these see so big have together know And I you some - continue also banks

there's unrest in the so marketplace, you if will. And some

our so it's been even XX the XX on And we've pay that focusing to pandemic, months during off. months starting or growth just

together using even much And cash they're these they're yet. light, been hitting because areas, their builders is One have much great the cash, Xst, there of so group builder lots put the and I not stride, and of not originations, very just think their January we fundings a have in but reason so they're leverage.

is Community its a Bank so And it's having way it's had. year ever huge contributing best

just - playing. coming it's It's Michael. been we not So very, in construction but strong, a very - everyone's have areas, all has dominant do

Michael Rose

That's there were - And on charges. seems there some it I expense helpful, Terry, maybe it. like non-recurring for were the some Malcolm. appreciate side,

rate. You golf other in, non-interest like mentioned the fee items have give what and quarter? point then the expense that assume that it could for us a seems to Thanks. be bake at Can would that's a just were come least out a we'll year there I sense once sponsorship. of a the some in expectation kind you run for starting third for of the

Terry Earley

I think to M&A, that, is and Well, investments coming people, it mean the I the all there people brand going much because to because loyal the quarter quarter, made, opportunistic like side. I but - trying and and we're recognition we're and will and for be the talent given you - are people lumpy. of be clients as the about, the in there more yeah, are Past absorb with one is lasting talented, disruption to there for Michael, we out benefit new I on investment us. there getting. the more recruiting think the talked in cost the In Malcolm homes, we're they looking they're taking from we're longer making second for it's not adjusting just marketing mean, spite us. it's bring there to expenses benefits start that we've make going

do side - on think for revenue and what driving it's okay. we if I'm growth trying about and to so And we're us, the the

the go as get up, the to but the continue expenses investments, and growth are right, revenue should you make to especially spread the we efficiency fine. If going just right, work be ratio revenue the

continue yeah, growth. I just about we're opportunistic right And hire so be a wouldn't to down, when to adjustments realizing opportunity other got... to than get we going and thinking They're drive make the the we lot going of people. And to marketing

Michael Rose

expenses. Maybe

Sorry, go ahead.

Terry Earley

yeah, not in down, my The going opinion, expenses - not not really, much. they're

team lot in them just it's end cause I whole hiring front go tend there's because, I about to don't support back business lot, which to new down a not - to I afford to think we're we talent. I do can think just it right time, to the a last well. on support look, think, mean, way. It's be the not office thing And in quarterly a the as deliver credit able and the bringing on is the it to

got to up I So know, to speed… expensive, we've but those less stay are

Malcolm Holland

on, a there's of we're And really close couple close. now, that right teams candidly, really like

of months going get are they sort traction. be those So to costly, and six take some to

pretty So be I they close to would are. expect to where expenses

Michael Rose

just one for maybe final And one me. Helpful.

said us You that Thanks. mentioned said would you think means? in some you that Any third Can what meaningfully think you NII quantification? - quarter. at higher stab I be, the I give

Terry Earley

Well, QX's that's encouraging well, then balance do in the thing versus the average to look and add you average it. back the on go, let's day see loans PCD there. math. and And the don't is for balance we is you and It word think, about It's is math. ending. growth the you key the that take XXX,XXX. for going, at the I layer non-pooled from that go how think net I what happening go if count with the okay, the And ending you start honestly I'll let's when you QX count you had you day okay, might reversal on And interest get income the then to again. be, QX

Michael Rose

taking for Very helpful. questions. Thanks my

Terry Earley

Sure.

Operator

Your next Milsaps Piper of the Brad Sandler. from line question

Brad Milsaps

morning, guys. Good Hey.

Malcolm Holland

Morning.

Terry Earley

Brady. Hey,

Brad Milsaps

the moving It million like more the in through of curious of much wanted simply got got year. the at kind fund forward? Obviously, you coming of parts would the sheet. flow sort of I some half portfolio to too. just appreciate back fund growth you've by be plan PPP or got how the talk balance sheet? to runoff, $XXX investment then all with the the Is going growth sounds that kind month you've liquidity growth color. just cash Terry, getting that I balance least on of a just loan off quarter about to And the you're

Terry Earley

great and What in a PPP mean, accelerated, nor when of do at has we not do, a Yeah, to that's I to appreciate have it. at I done make think, Because is the liquidity. profile we investment look I certainly, go our Yeah, I question, growth intend acceleration and good the don't is, forgiveness significant portfolio. or to going we pipelines, do we that's source be and feel our need - up. look and I increases just

investment I liquidity current cash so we time coming you balance XX of the profile. next excess feel the in rate suitable we've off like flow a at portfolio in got months look the levels. flows And When XX% the of the forecasted given portfolio, can cash the growth about absorb frame over the at

on the is So great as as a not those the be and it folks. of reinvestment could for reinvestments lot yield risk

of I that's TBV don't and Brad, cash we and best with can - PPP to create. because growing we the that afraid We think flow So the fund liquidity, portfolio. way duration and investment it the pretty grow and the could long pressure well look risk I'm portfolio the inflation it the

Brad Milsaps

kind the the on of And just equation, other fees. of to of Michael's income Great. sort fee side That's helpful. in question, similar then

recognized are BOLI. Or other there items sort and syndicated maybe loan of the kind Is that some the made? PPP of the line of was some There onetime that from fees. outside fee quarter? income mentioned anything I in rate permanent you run just BOLI that think kind investments of you you've

Terry Earley

didn't a had quarter what is - in best I as say July. we're No, lumpy. we great month But the the had BOLI more just that with is we've end have would And already - swaps. a we probably ever company

mind, lumpiness back swap better much my offset is to of could BOLI So customer's be in back with - program. the my belief execution that the on it's

Brad Milsaps

Thrive of Got question first the your from guys talked the the of second I kind it. third initial quarter. guidance And on saw change based in you kind for you'll Any just impact them there to me. in that about sort final what quarter. of of then know you get

curious your forward? of kind if their has kind Just going changed mind about anything contribution in of

Malcolm Holland

billion into with It anything, I - And really said delivering, exactly folks if I That's this billion and the stronger. I gotten say at transaction, year went this used numbers Thrive production. we $X management. only in as it's that growth on into where would thought the $X.X went there we mitigated sale was gain production. of announced was Their terms expense lot of in it in they've little exactly transaction. what The down bit, that and be a we we when production this thought quarter with but to a

what's that - its good we're I was QX. [ph] so where And peak it tenure about given mean, down bps is late feeling pretty happened at from XX the in

I so everybody, business for the mortgage think is looking And but Thrive good. for certainly

And sale production. expecting continued and on better so good I'm gain

what our much transaction, belief not to that line And the in when were we be contribution going so better. a maybe little with if did is earnings we is the expecting pretty

Brad Milsaps

Great. Thank you.

Operator

(sic) the line of from question [Brady] Gailey KBW. Next Brad

Brady Gailey

Yeah. Brady morning, Good Thanks. It's guys.

Malcolm Holland

Brady. Hey,

Terry Earley

Brady. Hey,

Brady Gailey

you XX%. non-PPP XX% look year-to-date, going is saying to the full you're be If that's growth, loan year at

this that a of as the kind of do just good COVID? growth the mid-teens that good rate half. for of of Is So Or you back we're XXXX is have think really in you couple next sustainable growth more out years? kind coming

Malcolm Holland

question, wow! Oh a big That's Brady.

out way far. looking You're

it growth felt that start had - we we re-tooled on some a were Green together is I is continue little here's of bit, we've we two But about with and what beat Green And made were put in to is and is COVID. there with people horse great re-tooled So I cranking. to you going the people. dead were investments we like 'XX, of some think really quarter first make to But seeing what that do take us One - think we the we efficiencies if what back and some things. there.

pandemic stopped showed up, obviously, so everything. And

this and because Green is the out later a pandemic year culmination So a combination. just getting It's pandemic. of of the think the we

on going so we're XX% And and several I'm are years, I we sit tell XX% next here really for or focused be but to not to in do going the growth. process, wouldn't that the just focus legacy have us. credit surprised It's and if And major close of mind, a credit for policies Veritex the we're to side you. you what is that. that keep

And so we in what feel now. on we're confident putting really right

I goes we've quality unsaid really on But stuff changed good. we're We've or think that maybe the un-discussed. some of clients. is out And lenders. bringing changed out some

I bright. think future years, prospects the so And the really, are really

Brady Gailey

All to Malcolm, being did was then the it's right. active half great I hear nice your in you about the Thrive, M&A a back pretty And deal. know of year. which comments all

traditional the at look buy downstream in community bank, that a where M&A, ton you a you yet. Texas of we smaller seen haven't guys As bank

bank the So M&A sellers' expectations? in of volatility Or we more yet traditional hold-up Is seen what kind stocks? Texas? in there? mind in haven't Why is is your pricing it the bank it

Malcolm Holland

both to that. answer an as Yes, of

lot is other The a accretion you of and X%. number move or can they bandwidth, when thing X% the deals, an take smaller only

hard You that. that's just happy know, guys for me. with - are some I'm a really one

So you able little X% it's whether they a that I like just you business more or and think to or you be X% might geography got something can have bit. think the get, a than unit grow to exploit strategic wise a there's be

that's pay say well, is million I loans, we in year, it. And half $XXX that execution small had the in I extra have think I bank. I the if the no a for there a And grew reason to a didn't So and to risk, it, for of premium just needs first be Texas reason.

real is it's trade can so stock for thing smaller got price we if everybody's me I of ago, that then XX reason think to back hit growth, got got about it ones. be up and a kind got keep the came, And I again. all the days rate of and But do for the compelling kind

to And of I just deals do. trade, going those see we the some smaller hard to somewhere, stability, think are stability so you're I but could some ones some if see think

Brady Gailey

Yeah. All right. the for Thanks color.

Operator

from Tenner with Your the Davidson. next comes Gary question of line D.A.

Gary Tenner

morning, Good guys. Thanks.

Malcolm Holland

Morning,

Gary Tenner

you don't production production income kind in I questions. quarter solid terms I of think want I there. had [ph] about of much Any couple thoughts to and a going talked heard of little outlook the I fee you ask comment on terms bit. of trends in forward? know a SBA real a

Terry Earley

the split mean, you is Part I bullish guarantee of have about or I more. production the XX% half sell allows that year we're back you're mean, with on pretty you on And premium, getting of netting year. XX% XX on XXX XX.X. prime the certainly the yeah, the so gain new to X.X [ph] plus down - to NPAs, you're

think So that. about

up selling holding you're your XX with and making you're XX, You're more sale. whole on than gain your

we And that all do we'll good. So pipelines the can. feel

two. And so of - and we've or quarter made some hires in that line business last over the

how the best But of of we of saw you probably suddenly next transaction big what think can it one. somewhere, we before And to since pushed a this that and - about gets it's in SBA the it reason pre pandemic. the just the have going so quarter think looks always kind optimism quarter the in you close to us the to quarter back And you good space, is lumpy. half have the feel gives

Just they've seen our and pipelines, customers But and needs PPP talent, been best we've post-Green, that we so busy the would pandemic. give with and the say. to is team coming through needed I had the - that

Gary Tenner

year this it kind incorporate Great. loan the meaningful you any the that in of to of become the growth, channel And does little portfolio as purchase then single-family of growth through Thanks. the least may channel? of of does back Or growth half loans given the relates the for outlook, rest a strength less fundings of important, the and that commercial at year?

Terry Earley

a kind growth Well, continuing can as I in and the to that is in it's in loans. we need part lighter lever sure over in up average We XX… were say X% growth XX.X in love mortgage a QX, what anticipating It's we're time a want of than loan a be pull XX to pickup portfolio always liquidity quarter, to. doing. little got not growth we this up from we big of there our to position and bit would it the certainly single-family of we would grow If down to more because been that little we a to is I but on outlook we've go but we've And side. then X% for it's and thought, were

Malcolm Holland

High-quality

Terry Earley

XX underwritten. arms, [ph] XX arms High-quality type well

Malcolm Holland

that back say think it's I our for half have the in fair But forecast to of don't year. we the

pull deposits lever. to are another And allowed if so that it's lever

Gary Tenner

Great. I question it. appreciate me. last for And then

Just Terry, it the your but not to investment them fund only not even flows, more to sounds the to that to clarify, here, I think is cash loans. from will regarding Is correct? earlier comments cash it bias flows favorably those reinvest use build you like book, going

Terry Earley

not Yeah. portfolio. we're glad have And I'm that we yields reinvest reinvest certainly to cash of flows looking for cash We'll flows, a given don't but growth lot meaningful in where the are.

Gary Tenner

Great. you much. Thank very

Terry Earley

Thanks, Gary.

Malcolm Holland

Gary. you, Thank

Operator

line Olney And Stephens. comes from your final the of Matt question with

Matt Olney

guys. morning, Good Thanks.

Malcolm Holland

Matt. Morning,

Matt Olney

new new the what total your recently on step today try so I mine guess about relatively commentary the Veritex any back, producers you are growth, to at provide a to here. or how bank or even the ask Everyone's number percent I'll hired of many loan asking producers you've just questions taking teams? can

Malcolm Holland

going say of - as total probably the But much. lending guess, number [ph] So not at I looking to guys, XX%. would again up I'm very I'm needed venture producers my not we're to is

Terry Earley

Up X.

Malcolm Holland

That's it. Up X.

were total X a changed up from XX% X producers, out third, years good but on we've ago. where we So

bunch, not in So of out. it's it's a more of actual body up whole terms change But Matt. a count,

Matt Olney

unfunded about helpful. of guys the from more the add gave it's us six, That's can sizable. then commitment portfolio, good illustration Okay. that construction pretty the expect? the slide growth a lag Any funded actual color on you growth And you to you

Malcolm Holland

You much know, to XX% start you're a until we because require to bit XX% X But crapshoot. upfront, that's of probably every we're little equity a pretty getting much funding in so X months some you deal. - or

month X it's on on fundings. lag a seeing X of it a deal, from than till faster travels at industrial deal And so a the depending type does. lot But putting deal some multi to about the you start rate

Matt Olney

Okay.

team to in third guess the some now in growth actual then if I quarter? just we're just started seeing about start So January, the

Malcolm Holland

doing speaking several they you're is have builders we builder know around anything. a hadn't is The liquidity. houses markets different funded are portfolio off, builder And and and the on books. portfolio thing the our well, about them paying so much specifically, next the the the so We're portfolio putting seeing they builder they're So issue. guys

they have of lines to whole houses one under and so we any bank, And know bank, largest zero the builder in our don't of hundreds and that have bank. they construction, owes the the

commercial of function that the builder just a on cash I The that's great So speaking was more was flow side. before to the specifically. from ones

back the guess that dries adding of half in some loan in first this some liquidity going I growth more year. our the see builder As and up, do you're group them funding. the into added the X start seeing to certainly months of point has not half first of to is 'XX. I builder our much the

Matt Olney

Thanks Okay. quarter. on in a And lastly second for clarification. little the mortgage the the warehouse, slower me then for

the that this? I can of see - outlook you slower times. half put back you for could we items Anything any the And some attribute the think behind of slowdown the one numbers was year? can you dwell to

Terry Earley

because don't spread just have but stay to up, shortened I of there's times. I know have for I exact no the going me. I mean, short dwell it don't to think that mortgage lenders front have and actual I in they there. I number they're really - pretty the don't carry the

push the to up anything. they're get line to and going because it to cash not just they as can off picking get hard they're it it as So

to I've think going mean, I'm mean, So I the I drive - banks who as encouraged in actually pretty watched the what's space before. I other are

QX First, just I it I odd. is say QX. this what what unbelievably with good. from But of kind on average, think that's But Mortgage QX was is was down [ph] never I that to - think But of rates warehouse going on do help function I what's - really too, I think around they a but I ultimately negative some in QX wiped XX a to There's called point And the they has be exactly done that. it, that things, don't to government fee of terms going are market in out. basis is that the know that. fee. beneficial what that is. going

going balances, originations, better will things help will help multiple think dwell that the to see better to contribute I that activity warehouse think are don't times and So there's volume, I much. - but I moving

Matt Olney

guys. Okay. That’s all Thank from you, me.

Malcolm Holland

Thanks, Matt.

Terry Earley

Thanks.

Operator

you conference participating. today's concludes This Thank for call.

now disconnect. may You

Veritex (VBTX) 30 Jul 212021 Q2 Earnings call transcript