Bank OZK (OZK) 23 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Tim Hicks	Chief Credit and Administrative Officer
George Gleason	Chairman and CEO
Greg McKinney	CFO
Brannon Hamblen	President and COO, Real Estate Specialties Group
Ken Zerbe	Morgan Stanley
Brock Vandervliet	UBS
Timur Braziler	Wells Fargo
Matt Olney	Stephens
Brian Martin	Janney
Michael Rose	Raymond James
Jennifer Demba	Truist Securities
Arren Cyganovich	Citi

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the Bank OZK's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Tim would to conference I speaker your Hicks. Instructions] like the to over [Operator Please go ahead.

Tim Hicks

factors for this Good and morning. question-and-answer refer and make for information you forward-looking Officer Credit session. and our those Please I by am future. to to risks various other on filings session, our the release, outcomes Tim comments Bank forward-looking our such cause Hicks, In for management today's statements OZK. projected we may in about and more public outlook participating morning for Chief the or Q&A implied actual and Administrative that earnings joining statements. in results our call or may Thank estimates from expectations, vary

we the the for Specialties questions call, a any Chairman or efficient your the on use questions To and limit me Hamblen, have one are questions if Chief Officer; this follow-up that for of take Estate to CEO; re-enter we'd then most you and and two and time call to Real Group. Gleason, at your please queue time needed. President our Financial the ask Brannon McKinney, Greg make of George COO Joining

your We will questions. lines now open the for

Let to to me ask questions. remind our operator, how in queue Joelle, for our listeners

Operator

Our first Morgan with Instructions] [Operator question comes Zerbe from Stanley. Ken

open. line now Your is

Ken Zerbe

increase? increase loan was little sustainable could non-purchased to talk that about actually the a those good I drove a it trending And you bit morning. hoping bit good how this in see quarter? was is Thanks, what higher. yields Certainly little

Tim Hicks

Yes.

George Gleason

take that. want go you to Tim, if you ahead,

Tim Hicks

to of about did our there by X $XXX additional comments from million dropped contribution of Thanks, that yield loans unaccreted a our loans the have quarters. into of fees loans, we'll PPP through was forgiven that certain million Ken, about of recognition that We was mention on process non-purchase PPP basis of our that in obviously management income is were that $X.X previously forgiveness some for the Yes. more points George. million this fees deferred net loans, $X.X couple on from Tim.

have PPPX in yet. the those then and from approved of so have March to accreted through from related started have been at accreted, into forgiven that over got future under process. And that million that those not million time fees little We fully have got obviously million that both as PPPX that's We've of not that XX, we And $XXX million quarters $X.X those income this program those their quarter just about the $X.X second contribute remaining some loans get loans a of got $X will fees periods. over year.

Ken Zerbe

And then maybe little just a bit broader question. of a

the really starts you through portfolio we non-banks on a uncertainty as non-banks the lending RESG from that again what out forward? and coming does pick now in about that to terms period of the to bit little do going getting things actually have the market. So should non-bank the a given we've in increased But risks they're competition gone certainly in where of portfolio, pulled back better? and RESG competition the And Should period that think up assume here? growing look from from you be imply credit

George Gleason

that do Brannon, to you take want one?

Brannon Hamblen

funds is I pandemic. sort say your a or early of all be very XXXX, continued is period, out there aware But in is correct really in doubling assumption able good now in the very much the face to Yes, understanding the are XXXX other of the certainly Ken, in re-awakening or there we how faced and that's marketplace been We not we've would late unlike continue think to the COVID that was I there coming to periods Sure. right debt and of the liquidity out volume. that of past. or that time competition competitive produce significant XXXX tripling we've of

So have the history lot that of yes, a and there, with there are depth going that sponsors not but groups more of the experience folks to we be out do. oftentimes

a expect we competitive but expect So very environment, compete to well.

Operator

question comes next UBS. from Vandervliet with Our Brock

line now Your is open.

Brock Vandervliet

heading quarters? shift should trends. to commercial you We like the look over that you that could the like? that consumer, maybe terms coming funds What in was I look But to just terms areas XX brokered thought Figure public in in speak if disclosure. of of up, deposit still what do to like great down could

George Gleason

the couple the the range of been last high to improving working even point. diversity total XX something top of hard where depositors we've at now of one base and for in really years of and used X% our be they and very deposits, quality roughly or higher teens Brock, over account deposit our

deposit very So diverse base. we have a

improve them. banking continuing McClennon, and just Retail been provide we've and big continue that services Mobile, last Ottie Officer, a levels well Carmen really services no sticky and more our and teams or greater technologies in over our using marvelous have expect Chief to our dependent on our job the to really those our a make for of on year upon important been product have to Officer established consumer business online focus and level. upgrades them small Deposit having or core us. doing connections their to by seeing story side, good and commercial Banking us that accounts initiatives. and we're those Banking That a banking And public greater consumer business like more primary so. an mobile deposits, connections and aversion has to Chief just those Officer with several had Wolfe, Chief more to to We but products our the focus part and at be Kerley, customers want manageable of parts will and to more a to online delivering continue Cindy is to or and that brokered keep funds nucleus respective customers of them we And big certainly that acquisition deposits

we on one and and you've every are and it's of or deposit got to doing with sort know tale, that going guys maintain job. day, are pleased I a good done five and a done front very the and the focus to really continuous it XX or done think the and not things way improve it's trying So a

Brock Vandervliet

Got it.

RESG. And follow-up as a the Okay. in

like could Just later we forward? guidance talk in It up expect the if you least should on sounds at the ramp a year. about going originations

George Gleason

Yes. Obviously ahead, - Brannon. go

Brannon Hamblen

Yes, Brock.

seeing significant expecting what of that paydown QX the laid there we've we you expect side, to on can quarter in least with in closed hopefully while. today. already fight here, to I've that we've impact pipeline out. at already a But that the We're that the pleased originations out have loans. battle we're we in in QX think for seen start It's the one levels eight and with, we're stronger I we're and still terms of

deals of that said that as mixed XXXX the of and to the and just bigger say before, of markets we come have would stupor. by occurring, can, to a So tracking into and the that many we deterred comes they they're they've XXXX fighting are not starting being available, I that the noted And use of having getting that country and difference smaller that as as been some where not hard work all QX to are business was in the been to those its trend lot we fact QX typically guys a see part the reverse out between large of has COVID-induced that see in loans metropolitan the that expecting large some do are of to I starting and on market guys the that. some of as those start

So lot there. towards world would positive we we're coming can but the with see these of half, XXXX, we're back seeing are XXXX that quarter-to-quarter, change, the to half the market deals are what that trend a encouraged deals, back and today early hope but

Operator

with question Our comes from James. next Rose Michael Raymond

line open. Your is now

George Gleason

hear Hi we Michael. can't Michael, you.

Operator

Wells our Fargo. Braziler from question And comes next with Timur

now is open. line Your

Timur Braziler

place? up year following accelerating the of Just I of competitive landscape, first the the to level is that you some up of half some seeing that's into commentary get that heightened of those understand pressures the today pressures? again I the end to is see is Or on that you you're payoff competition pressures of as talk is reopening some the more pent-up your it pricing seeing that competitive the take side? on continues structure on in looking activity side? last some really outgrow of from giving on again on you RESG, record you the Are back you're wanted the of comments we the year. to expect the should at And broadly ramp can the headwinds year, as are and on as the But optimism producing. this competition I those pipeline you guess seeing demand those

George Gleason

me the provide one, the for think, disappeared. saw always Number year Yes. market except when we're and reinforcement, Brannon very as quarters back early answer and answer of what pulls quarter in and environment, times everyone I has let already observed, let that. since me it answered And it, Timur, in said. Brannon to Brannon a everybody we like competitive third quarter else else as second sort from when last first

the there out Great reminiscent of when part, everyone space, most us disappeared experiences we the and except Recession For pretty the in still from very much. were

a comes exceptional and different So at We still are see goes the this the times. attack we time of here and lot different different out visitors and barring angles in leave, where the competition it's from of and are from those all competitors, times, all there. space

closed smaller many job or competition of year our doing QX is we we standards they that twice about as the than we guys in from the the just as fact year. less Brannon last as transactions of as are in did out, in year, were nothing evidenced finding And a this XX% new. closed last of our on loans average pointed loans meet more RESG great So QX

doing we're ability Brannon of Competition leaning that and to to those execute guys to And seem are going the the expertise certainly, business So is heavily relationships. be are business. as distinguishing our good a attributes and said, always part job. on really for the our us win

to we distinguishing guys, yes see win say will in of space and past space. competition the on would was going based well proven record this you a for and absolutely healthy emerging and is have we've over on the business it the do forward in competition multiple And that. winning business, having and being we is future. year sacrifice us to we'll and be years And pricing? think times credit to question, those our optimism asked in will Our of and track quality not yes give characteristics that half source pipeline next to it been our expertise the of invaluable you executing is credit, our second business, many and We or they reliable in that's and said that year the the And this not on based experience credit get I non-negotiable. and

some minimum negotiate achieves return will standards. long pricing. our that on We And as as

yes, So to from second quarter return going now, are probably of getting they're originated they on quarter a not if still yield in year. standards. the do as to was them. certainly seeing we're And we as absent this we're everyone the this loans our some on we're year loans but and don't, And in going meet in not pricing when originated good space, we did pressure, last

Timur Braziler

back the good contributing. for Thank the the and of how contributing optimism RV much the you. team of where year, then year? should that. appreciate talk on start growth coming that just can ABL is the to wondering end end and that ABL back the just be much how the marine of re-engagement to looking follow-up, know color. the And my going to bank community you I'm brought Okay. in that maybe you then grow That's at from? the point, growth new I that's in And in of is and referenced be about also that I you indirect that from space? just going

George Gleason

that Corporate Group ABL that our groups. we When Group to or ABL building Specialties Corporate a Jessup, those Business our indirect refer Brannon well, we Bank from bank, Alan Community referring Business we're Specialties the Group reports who Yes. to to the indirect but community group is consider unit not report Bank Group. and we're under as The over really & Hamblen, separate & Community

year. Brannon's pipeline Group good an got So we growth, about side, we get powered on And really Alan this have see this are and world the increase of those business Business growth Community to we're new we some We're next year half Specialties ABL for team in we to working a leadership hopeful on over under the and back guys our in that. seem next Bank some the momentum. that of Jessup, & think and the area that's an transactions excited we've growing Corporate then

Now they'll seem quarter, the with to there. getting second still QX, better, about they and their add payoffs out business more payoffs to in another in win pipelines optimistic net obviously to be and they seem be challenge but their ability getting have

back the and we in are growth So prospects XXXX. across about half of the the encouraged board for year in

Operator

from comes Matt with [Operator next Stephens. Olney Instructions] Our question

Your line open. is now

Matt Olney

with We'd a you just how deals. And want than you're to RESG originate has like I back these to year curious are capacity to but current loans noted the take the closing close, that to ago, I more go and more about issue. smaller discussion appreciate today would understand complicated current albeit Thanks. a much staff? around while just the RESG. and the team deals capacity

George Gleason

that take to want one? you Brannon, Yes.

Brannon Hamblen

great question, Matt. developing been a that's has it's trend - It's a been watching time. over this trend a We've Absolutely. And it.

with some result very on have. always will, on been the of adding have handle of what some can we're and been is we the We adding side where in around the folks you the if that, side, metrics sausage can the on And of produce of top RESG a what as as slots but we predominantly that well. origination sort made, we have team sort the who closing

So on capacity it. that and of We're for to there. have top we're of ahead staffed up run it

Matt Olney

recently helpful. I RESG Okay. Arizona was your also, press loans you in project with That's Carlton. that received then some that's could the one wondering if of to Ritz And speak

this reports that loan liens bank a grades if to you not that looking the wondering at the how bank highlighted side loan this and lawsuits could Help it the schedule? some project think media like have and Thanks. be us morning, appears like project property address I was I looks and delays. disclosures behind your is understand that from substandard.

Brannon Hamblen

I but project That Sure, expansive that's that XXX question. it. significant all, guess Matt. Good Happy project not any loan. acres say, retail XXX underwrite all additional and deals. that that's key out a large the lot villas, we pads, very Hotel situation about not complicated and of first involves branded concern covers a involves everyday is to offsite have don't answer our that space and just of occurrence, to it's we a a an and of suits spreads Ritz I'd uncommon. get that And Carlton project there involves lot and the This work. onsite area, XX a manage way over of done and and expertise is and folks, Ritz close these it well lot kind and

very out GC and a like very labor, that those and lead and doesn't So where, a their time situation a way of on in in should tight done well getting period this developer ultimately, quality can they tight we're should. going materials some feel there that is project in they sponsor is aware the market that's or work high to that of the the circumstances what's

we're in on on very tremendous proven out and sponsor as backstopped that's presales LTV. much a why very him, to XX% this, a is in the loans lender monitor solution go we stay partial that sponsor. had that And got and as a and while there, the of LTC watch it's a loan. villas It mezzanine by But top they've at we structure product conclude We've happens sometimes world-class the position XX% from like and guarantees mezz, the we're that repayment And we a what's direction. And have capable think itself that behind loan developing loan, there. good got on. we they I out these a and like great going that that's structure and and do different on are

and So we how it. think about how you ask we greet

we're sponsorship, these in figuring front or take the stay more where We they're capacity or out a us, have position of have responsible with they are opportunity expect to advantage ultimately the very in will. the great we're fully for it. less project resolving because in lender mezzanine things in when are, but strong we We great for a come up. to position who of And responsible

the So it's and moves but moves time that a the a produce. move be - impact GC it sure forward, making The we're folks. probably DC that in they product time issues and will watching right those forward engaged, forward of new is again money when all care phenomenal with the manner projects, presales right these and with we'll on taking it course in and

don't So we about any short, have loan. significant again, in concern that

Operator

comes with next Brian Our Janney. question from Martin

Your line open. is now

Brian Martin

Just and a bit - could about, some think the the deployment the you're there kind of remarks, just two of little you of about those the as in about I excess capital you prepared about forward kind here? go it's in mentioned buyback comment M&A, thinking just about wondering if guys talking of how you

George Gleason

you one? that to Tim, take going right. All are

Tim Hicks

management for be Yes, I'd Thanks full I of we've optionality. question, lot we a playbook in as gives earnings our George. us. us robust happy capital Yes. mean, to comments, strong open the the the profile Brian. to, got obviously, said and

priority said, we've is number growth our always one As organic growth.

track this of some special as option of around year in next What that well. We as recently. mention deals the we'll to looking some special had to up our lines is the doing not that the the is, back mentioned talk We're in momentum come of Obviously So do look Certainly year-over-year. the for that about here a increasing talked a about continue business business conversation can add focus we other line, We've dividend dividend adding dividend. we we to and record have new lot things did M&A wanted well. and that be positive have for ABL on quarter-over-quarter, half seeing year. lot us we're you've heard if strong we the and a certainly all can had coming industry. a into

we We looking last than spending the time, in analyzing of cash would deal be or We M&A. five in been it's and of four years and open to that market cash at a have months some or and time Obviously, do transaction of have there. combination stock. on spent a been years, more couple last since in probably the couple closed we've to

first about we've our we earnings a being scale had and of and combination do use it's with that And well. also lot that. mentioned on at end at size thinking be certainly, profile repurchases. share the conversations cash then do Obviously, at for moderate the but around do of not growth to capital we look of the board our stock as our to the of could near term, as cash transaction the some choice, we profile our look that going probably or management the for So and some and of is

full in position We're a that. we're looking we've the think So But continue the I for open. very monitor the good at all options, and future. playbook we'll to got

Brian Martin

the geography focus priorities but size, are the look far geography here, the just in M&A on where of little there what bit this be? a side? guess as there then or target the you you a as I would would kind about guess, for I And potential talked

Tim Hicks

looked XX did York XXXX, M&A branches acquisitions say the transaction we New footprint. we did we obviously did I But XXXX open. that Southeast. within in a expanded Florida. certainly in our also had When is within was full No, also we playbook we footprint from our to But the would that - headquartered

that that franchises. newer franchises, deposit but deposit great transactions a XXX-year-old deposit bases, So we that also did had some of couple had

Obviously capital at lot a look lot flexibility the of different top in things. have, the management will of operates across we in got So always a We of with lot team markets RESG different our to across intel and a a markets we've do good U.S. our U.S. that. of the got We've and lot

well. think we playbook So as that would I keep open

Brian Martin

of one little Thanks. about the just But both don't business. subscription time? more just maybe over finance bit and are there? ABL talk whom. Could for follow-up, progress focus how Or a to and going And you on a the expectations kind growth I initiatives talked know just things bit little new the you about

George Gleason

want to that? you take Brannon,

Brannon Hamblen

ABL and we're Sure. processes and opportunity same manage leave very and the in mirror start of in close around we way excited D&A think that individual the really I'd originate and has that how RESG. Well, to about credit Yes. that sort really group finding side, with those and credits that the an to thought

I lender that with Certainly bringing that that get specialty across think going CBSG we're RESG, group, subscription had expect time it in that and to last So ABL We up. and case, we following there. synergies see the to we're some that and moves benefit bringing there'll be expect last I wins year verticals, that there take ramp in the game be excited but opportunity. think here will about And would they're we the CBSG And It we that's year, to there. expect to cross-selling will to these but XXXX facilities, of go that have if of of ahead year XXXX, but see we and the in will some to from particular, that. moving those realize this in with from. started, year more be level different some hopefully before material the continue start positive the already

the the of than the the the or greater of parts that some is some in case. parts of hopefully, is So whole

Operator

Michael comes Our Raymond James. next from question with Rose

is line now open. Your

Michael Rose

large back I I you there? the for that some sorry you you to color a missed the chart. be group to before. just of about CEO it. the if just related sorry the everyone, moved opportunities hotel give book in do day LTV that, hotel up as Where some might Can forward? move basically came some on terms out Thanks. wanted and And for hotel of properties. stand I'm other that there Hey technical some then, to said guys go bubble more just had the issues. need credit But

George Gleason

Brannon, why don't you take one? that

Brannon Hamblen

You bet.

So But opportunities, I'll of opportunities the the start back kind see there opportunities of there. about, to in from not pre-COVID. come on around there many back we've we some continue were talked some the and obviously as hotel as mixed-use projects that are

So are is the positive direction. XXXX, there. obviously relative moving still trends to I the think but down extremely in Everyone right

and more at actually particular by the on loans obviously expect three all stands little more held but impacted very So of hospitality detail out a was a a to sponsor the bubble one we turnaround to and look meet part we lending situation and that the guarantees we chart, that all that see Switching hotel four other have have expect that for across your the lending have and exploring that a - new where that project, will always is on COVID, we new recent opportunities what the standards on saw appraisal the we've you continue crossing And market be credit, that we're hospitality and possibility is good that do. the question with of loans. will those cycles around mid-XXs. to but repayment XX%, a of appraisal a the those, result the we the rise average them, that was of full through we

in you've effectively XXs. got average that LTV as I the mid So said an

to that contributed So a other a we improve has but ramp at and don't there, of point, this operations confidence he lot in and of that lot to we up we have want see - capital sponsor, definitely projects.

So that well optimistic projects. we're his other on will and that all cautiously end

Michael Rose

follow-up, guys to And a been relatively here flat. expenses hold you have able then maybe as

like closures should the new expenses just initiatives, new Thanks. reduction some moving balance branch document the You Can about ABL for cost talked as for you'd as the you what expense team, efforts opportunities mentioned that outlook forward? about versus talk you growth cetera. reinvestment et of and mean in

George Gleason

take you will Greg, that?

Greg McKinney

the George. I thanks question. for Yes. will, Mike, certainly

As indication our at we've of from or where we post-COVID COVID and would hopefully expense months current would quarters, be and few while had second come we the quarter. look noise next our over to in at thoughts the kind where run our we and moving good a look are, some here would we of rate think would expect we for few that be pretty expect through QX expenses expenses,

and as As positions, make continuing we've talked future. people of about the before, into got to the we move really branches right we've continue and sure and and combination evaluate grow evaluate bank forward are branches products we to our

we to We better are our also to ability continuing serve side the to on really side forward. customers, hire trying as talent, more move talent, increase both the loan and deposit the

have QX some that that or be but at slightly, for good rate even standpoint, the possibly up we that next two. but variation to the quarter next we flat, quarter-to-quarter or think really expenses slightly relatively some would So we'd to that quarter think indication where of is from be down we of a a expect as I could run of timing two look pretty certainly expect the really or

Michael Rose

some the And right? that this would to be excluding just be of one-timers quarter, clear,

Greg McKinney

also as those noise that it quarter. of in closures they that - in or well think be we've about talked I there'll in branch little QX of you look be bit think couple those a think I QX, the from Well, when will I - totality, at a

Michael. just GAAP think standpoint, if I I you would be GAAP from at flat So from standpoint, it a look a expect relatively it to

Operator

question from next Demba with comes Jennifer Our Securities. Truist

open. line Your now is

Jennifer Demba

you George New or York of Can loans just afternoon. City your and you're changing RESG. current Thanks. seeing quality on demand on there Question Thanks. and Good Brannon, the us thoughts, in terms on market what give asset there? your

George Gleason

it? to want Brannon, take you

Brannon Hamblen

that over amounts has come on visitors of the there, couple particular experienced being terms leasing, while more where as down capital but what comments Absolutely. a some space we've in down, historically and you on speaking, standpoint sort a and Jennifer, and more that interestingly the activity but on totally in York we've occurring completing credit condo that's in portfolio there, say been as as case with would I enough, in hospitality our We've from impact and successfully outside which really before many our parties into in noted leasing understand talked of of our property is depends the focus quality had and want others, to strong in would finance, is, based yet New other and what office concentration result about It are there portfolio product, there and quickly generally projects how coming for and positive existing question. flow projects. we our in to you just that, and there back come properties there tell well. Thanks, pretty what We've pleased some long-term lot I really our of our that there our have be invested capital I as we than be assets steadily seeing has there expected. but condo we're of the to quarter that many aren't projects, a time projects really type sales Hospitality, coming strong we've market the our beds seen last we've reserved, will material feel good continue That New well. on time the seen have seen. we're to York. about

multifamily the So leasing pleased we're velocity. very see good to return space, that of

long-term velocity the that of the very Does will a pro paydowns come potential in that year. though to a it's couple mean you're opportunities but have The a space over going concentration to be due to But next on But reaction So we we're and take originated York. market. the natural we're come We're while market? really very may years, probably severe phase that see a going for view last numbers of because on looking down looking year we going our you York, confuse the this that that at opportunities fill New to successful foreseeable just originations don't the of that to projects three, of have maturation creating market had to over portfolio four positive long-term future. it of the ago we're have New some going back, be two, there to the there a we outstrip the back we're for volume here it for looking, in quarters. that are we to

George Gleason

made. just me let point put Jennifer, a comment on fine And Brannon a

and New in related run XXXX just construction strategy XXXX, billion, we're of that commitments could were construction development intentional there lender, really was a the York. from to fact a projects an that That peak RESG You not in that commitment at New or in New and is QX early timeframe of York. quality back It XXXX billion so reflects was of from available $X and lot our in XXXX, development XXXX York were $X.XX there there. look at we're of QX peak portfolio total down at our $X.XX billion, in we over

were paying business a And as off natural lot then. we of said, Brannon So that's originating things, in of now. cycle the

not the pandemic as there a XXXX fact lot little and types, overbuilt new that following have New little York construction the to many wave, been XXXX. and new finance products got With a in XXXX, really that particularly in very of product and

a one the But simply be to only to and The in portfolio further of York, York. just construction and I huge market originated down it to that's originations same there of going York originate quality cadence happening of when probably an in ways, fact we've our down the York payoffs. is there is And It's respects. looking development probably in reflects and unique - down going past. reflection New meaningful that for and going fact market, forward of guess. the New commitments in it's there a our is go and is coming total go below important $X to going lot a really we're in view resume that the New projects opportunities would So New in that not billion

Operator

Our Citi. comes Cyganovich with next Arren question from

now Your open. is line

Arren Cyganovich

Yes, a now, opportunities are seeing a a up of are where surprisingly from parts kind shoots following bit I'm seeing pipeline or in this a you're you sorry, just you questioning with showing there the kind are that have of or of developers, there on is It faster of type green geography? line last office the little as the New business property some Are coming like any quickly. of that a back, really York sounds not not quite kind - the there?

George Gleason

Brannon, willing. if you're take And that Yes.

Brannon Hamblen

past I to Southwest have last in be look two would case. say of Yes. And the has in geographic the dominated of been, for two, be pipeline what's the bet. in Southeast quarter sure. originations to sort activity, or really it is when terms in continues it similar today we And You say the quarters and to and that and at the going I'd what our answer the

of activity outside there is New York, going region. lot a of on Although Northeast in

alluded York. well we've outside done in there, New to So markets as we've of

we've respect type we're pretty the different New space, trends looking may had I many be of condo Miami come start larger. and in in starting the be there. we're those hope And mixed-use they forward on has those when are to but And coming past, has look seeing condo in cycles, York, some outside as of to say been performed as we side, bit. been that more the there. we portfolio tend our sort multifamily are what there, So activity, for see a to There business of for perhaps would those, I with seeing property that back, to very to and there steady I'd have before closing the and said I see more as not to and past activity back, starting say the well, well more markets we're in active as you're deals predominantly come

So can volume it doesn't get of many pretty to by quickly. have there be number but that opportunities, dollar

mean especially CBD markets. suburbs that out of the in the rounds our seeing still activity. and not we're is core of So I office market, active some most where an sort

Arren Cyganovich

Thank you.

George Gleason

I would add a little color to that too.

urban that continue to I business LA we dependent strong guys other the greater our more quest a think are DC have which portfolio, us, that such heavily slowed markets of have in by that had a their as has in been, had and active. upon have whatever in don't less seen and originated really much of find or for effect markets, the markets. you've deal. couple our and Brannon fact is really to as adequate And active mass quarters New know have really York Chicago the density, side York, that volumes mentioned been diversification a been in transit may of but growth a been the I big of other may San more Philly. we've or or in New Boston Francisco pandemic,

the in document, to every a play Figure seen and loan on important to years, $XX RESG byproduct, going stuff we've to that's You've show a highlighted our where part that in other this XX and in is markets the we've year, we've began billion, get do been where we're more there, management RESG of doing good to effect business XX diversification good number billion active have over MSA billion an is months, to in side we suburban that, markets strength got mix I'm our to to next our and in kind think, real or $XX we've ability of the while about also above But portfolio increased and to excited get this billion a of $XX adjustments been and markets, is I and diversification last portfolio, $XX several of that. grow - comments good. made is a other over that tap MSAs represented a area the for our more $XX that the this for billion lot

for has implications good us. long-term I think it

Operator

Timur question from Wells comes Fargo. with next Our Braziler

now line Your is open.

Timur Braziler

Maybe for that I just thanks the was follow-up. accelerated said for for PPP you one with total $X.X the quarter? Tim. have more Do you the million. the income mean revenue Hi, PPP

Tim Hicks

Timur, No, don't I have that open.

with accretion. talking about the You're normal

Timur Braziler

Yes.

Tim Hicks

Those a X.X% were just yielding basis. on normalized around typically

it my that you maybe So I just with that. fingertips. don't can at into back have

was So addition million the that to kind $X.X X.X% normal yield. of in

Timur Braziler

now. PPP average the you the balance for Maybe quarter, Okay. better know

Tim Hicks

I have don't either. that

and you we that PPPX have with throughout quarter, have did the could month throughout as the for the We that so March. Although forgiven about coming $XXX quarter pro million may use was $XXX towards rata should ended think But that I about you $XXX probably get basis for about slightly weighted on through million been close. and PPPX. a million

Operator

at now this back to would Gleason to I'm for you. George I the Thank over further remarks. time. questions not turn like call closing showing any

George Gleason

today. glad results. We months. All We Guys, our in talking it. so thank the joining for about to forward call We're report right. you much three look you to appreciate with

a Have call. our concludes great thanks. So day. That

Operator

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

You may now disconnect.

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