Bank OZK (OZK) 21 Jul 232023 Q2 Earnings call transcript

Company Profile

Participants

Jay Staley	Investor Relations
George Gleason	Chairman and Chief Executive Officer
Brannon Hamblen	President
Tim Hicks	Chief Financial Officer
Cindy Wolfe	Chief Operating Officer
Stephen Scouten	Piper Sandler
Matt Olney	Stephens
Manan Gosalia	Morgan Stanley
Catherine Mealor	KBW
Timur Braziler	Wells Fargo
Michael Rose	Raymond James
Brian Martin	Janney Montgomery Scott
Brody Preston	UBS

Call transcript

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Operator

Good day and thank you for standing by. Welcome to Bank OZK's Second Quarter 2023 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.

to Investor conference Relations like Staley, to now of Director and would hand over the Jay I Corporate Development. Jay. ahead, go Please

Jay Staley

Good OZK. Staley, Corporate Jay and participating our morning. Investor question-and-answer morning I and session. our Relations call Director this Development you Thank of Bank in for joining for am

public we information release, forward-looking for statements. Q&A statements those the Please future. In by management the implied and may expectations, and to our risks such more vary in session, projected cause or refer today's earnings filings about various factors may actual forward-looking or make from our on outcomes comments other outlook for estimates, that and to results

Brannon Cindy call Financial take George on Hamblen, Chief questions Wolfe, the Tim me Joining Hicks, Officer. Officer; to Chief and and your are President; Operating CEO; Gleason, Chairman

We open questions. lines for will your up now the

Norma ask queue for now questions. our me Let remind operator to how our in listeners to

Operator

[Operator of Instructions] our you. comes with question first Scouten Sandler. Stephen Thank the line And from Piper

line Your now is open.

Stephen Scouten

want these just good if last to still that growth growth I'm be see around improving, you we the could then mean, and could pushback time. booked about path loans thoughts adding origination few any the are could to are repayments and might to you largely And to morning, just little environment growth. that. around a not that this folks comment good muted, see still more seems curious if on Maybe in year. commentary on you feel why it's from today's like quarters trends actually that growth. I seems loan for obviously start everyone. bit continue Hey, phenomenal been last Thanks we

George Gleason

that. a about tradition very got And credit positive Appreciate of we We're very quality. on track view Stephen. our opportunity. focused as that the and optimistic We've a on you, thank growth long being We're conservative prospects Yeah, very and continued record cautiously are question. that.

putting believe environment conservative paid and the to ability we new on be great what for well this assets getting So in quality more we're challenging really on very that it. doing we're and

opportunistic we it for time a So as view very growth.

better largest is unit portfolio. unit and our generating reality growth, Specialties the in in in closer still achieving anybody But Brannon is Real loan Group our to generating Estate is We're diversification our that than Hamblen company. company the

that big RESGs the Brannon So dog you growth. the let the to leading of since I'm question. pack in take the going rest

Brannon Hamblen

confidence George and, I'll thanks Sure, our about George. absolute adding question. quality Happy of today. the that the credits said do for to in again on tag Stephen, that the what Yeah, just we're

done down cycles has the We're to do in today always pricing markets of market the that that market the as we're everyday pushing sort in gives leverage us and really certainly through opportunity and and up that.

recently, closed look you more at If the increased. we've the of as some uncertainty has in what market

see portfolio absolutely new than closing loan-to-cost pricing loan-to-values and our lower You quarter-to-quarter. strong average and spreads being our

origination asset in management and outstanding about years market built phenomenal the such just have and absolutely talked over on penetration our on the a quarters, servicing guys previous job to do in are lot great the deals feel stepped that back market. quality about as what's there terms and we coming opportunity are of going a have on So are still of that of some There the we've the great and but side. side such the

our average, loan-to-costs, lower from of super And really on get projects. with to deals lot in this with in of a great before, I've said get repeat market. We being capital these business sponsors continue currently lot as a

lot read working our with are have. of you if ones got giving sponsors and a otherwise cases as obviously, is, pulled the So might and available we've that and there stay-in great new job market to seen of have around us we word about as the the guys and there back well. course that certain competition execution continuing gets are lot with banks as much paper, that in know, along And the not you of

but really credits of on opportunity great doing So to have factors leverage, we to and well-priced some that. low put involved, quality, an the going we're a number keep book

Stephen Scouten

Yeah, that's the appreciate commentary great I about color. quality. improving

still that but that? underweighting verbiage five pressure the it take was use, appreciate I of we know think the up if to this growth the So would I year. funding on growth? think I and bit be NIM was side. and growth I that I for growth continued growth have that the into the how given you're Maybe can seeing pressured I the amount a am maybe that around feels maybe pressures to the need funding a of back-half fund you about NII year nice like forget maybe you'll need just ramping How next this uncertain. exact or given and will higher one and face of commentary guess And commentary trends

George Gleason

That's is to great a a can. margin interest continue put positive coming whether can between our and and growth income Stephen, there tradeoff to net We items. question, we we really determine hope

but working said April from are of happen, as We gosh the right started rates. when last we've raising that Fed after year make

plus Fed than in now XXX and rate reached of cost deposit expansion were prior costs. loan variable neared said last their faster year for that move reacting quarters a basis We when deposit over back with catch over would deposit cycle would the when yields gave lag well comment loans loan quickly we've saw of that saw quarter increases that of or rates, yields would when the the costs Fed begin NIM the up the quarters of the our made NIM this raised tightening in the that we and to point end number a our we some that as

opportunities, of to that be continue achieving, aggressive to catch-up and be because growth want can having growth rights but we're tremendous So and do the aggressive We pretty on deposit having those costs kind such moderately we a to opportunities. we're on to there's we're those have we achieve growth to afford deposit that.

far. of margin best entire the probably by group our peer interest have net We

we can getting mentioned we're So as on good really to the do Brannon yields that loan and side. afford

afford and that the we NIM pressure on but we've for is do going will little we're be challenge quarters to keep a our that, a doing and So that growing. said that put to income can of now to net interest couple

of NIM NIM. numbers get job impact a the and a if We're of to to if we more growth good really average assets interest and the little We're that going a earning income good income. plays do the will how little get be job because less out net we going mitigating on we uncertain and mitigating do less have pressure, growth growth less bit good flat the on have net our and little down interest NIM slightly to could a positive on have

horse a race. it's So

Stephen Scouten

Got it. growth. color. Great record I'm NII the track Based betting on on

So I appreciate all the commentary.

George Gleason

All right. Thanks. I it. appreciate

Operator

for And you, our the Stephens. next from Olney question. Thank comes next line with Matt moment question Stephen. of our One

Your now line is open.

Matt Olney

that this Great. ask were Thanks. to two Good loans downgraded It like morning. credit. I some quarter. sounds around want there were questions

borrowers some of to disclosed. those If you new the borrowers? a so As these assume of color that approached appraisals gotten you've I these result you've equity appraisal conversations any back. since on ask values for additional with those

George Gleason

engaged very those with constructively on processes borrowers are new would us. I already of you working is capital tell both that in were what transactions. Both Yeah, bringing for

So closely. monitoring we're that

have that These We borrowers' us guys both useful to in are something to these assets be regard. to get continue. in that useful will pretty that to expect commitment and these confident shown and and ability will done hope them real

Matt Olney

appreciate I color. Okay.

George Gleason

you to do add any Brannon, deals? two color those you have want on

Brannon Hamblen

Well, I real I pre-engaged tangible they progress. those would what I echo and in mean making would activities saying, just, were George. you're

business we've the cases of done in on these sponsors really So both a lot projects. with

reflect those So we'd good going in numbers feel are quarter. next to direction about that the we and the hope

George Gleason

would and continue Brannon point asset but can reserve to carry Brannon posted give a out, you on the I working substantial know the you lead account this, they're on to details. the on and the while recap details has the land equity this Matt,

Brannon Hamblen

Yeah, in but It's that the cash know, Matt, and deal carry million that's there. so LTV, cash have it for reserves land additional that's, included you support for so credit. reserves XX% That's forth. $XX for and support in, that's not the on they additional

footprint, So projects. their and this reputation for that as national successful very great developing of is I've projects. We financed, a developer, prolific sponsor number there a said,

you And so, call the you George. put you been know thing coming have extension. an out sponsor we to dollars And, know, know, know, has good, there, in did that you case, historically other in that good, in good

continued additional did to COVID, capital service. the case, in Matt, an hotel, then. about operating And extension they've I'm put this and at they shortfalls And we and up debt XXX%. But fund during talking

that ongoing project. significant in a capital So already capital infusion

those expectations of historic not there. good cards hope performance the we're so have outcomes are So much as we that

George Gleason

And to asset. I the the forth really the back But just it's patterns the midwestern market a and would smaller or a hotel, set on this is has This come above in that the from really add asset. comp market. nice pandemic travel nice is pandemic. so at performing And changes in been a really slow and from is the

optimism quality asset forward. of fair the about a the the us cautious degree as commitment of and well gives path So it proven sponsors as to there confidence the

Matt Olney

on then the a little And Okay. Appreciate just guess, topic. detail. the I bit more, digging

more disclosing the appraisal. as deterioration this than been limited these in transactions post Anything these past a we've but and unique a have updated while the And movement well? not else now. two properties about appraisals value LTVs are You've These you and that have know for years RESG have with other significant outliers. been quarter would now driven more ones these typically obviously just seen

George Gleason

variability valuation this, from I'll know comment add appraisals a have give example. an And appraisals. you the you know and may to land to something want You tend lot land but to Brannon of would I to what conclusions

has that You might $XXX appraisal land have terminal million a a value.

get basis. on net million, is You and appraisal on new $XXX land value discounted are value done a terminal the prices it but still a present

XXX rate the on moved feds on discount goes say points that if So to the XX% from another discount the up because rate basis points, basis XXX XX%. that,

holding And the to eight gets from years years. period extended three

rate a and in discount the the with to value do contraction land of value massive the nothing a holding has have that simply terminal the You period. asset elongated higher is function of

we've know, you so, time. been this a doing And long

these holds long-term development. values I when seen conditions. the kind of that we of we've is do because We very a of term fluctuate financed, near is Matt, you we would vertical be to most land them. to land tell land down into deals intended up are those few What bridge go and So a

specifics the the list direction sure that know, some land –to-values the loan loan-to-value down holding you of other value the but going notice in on those, the of I'm the, land with you and better. in shortens gets the development appraisal So situations well as periods went of not actually

values that's excited because of side long look math, holding they're too probably variations reflecting get you just these about don't So in uncertainties. the at saying some if the current an year eight land realize on you period economic

You get those tend come on a to quickly. values recession, of side the really other back

are at the that's And equity is looking the what what's that. guys reality of

tell is, would this keeping I pretty the know, thing you portfolio other valuations on closely we're you considered. The

off While XX on. assets think XX quarter, pay going it or new was I loans and we reappraised XX we had had last

off at look approaching paid values or either the every of something old portfolio and quarter. deals, if inflows new of loans and the have we fresh XX% you on reappraisals So on probably loans outflows kind of

So, pretty updated freshly values on are the portfolio. know, we're you staying these

Matt Olney

Okay. Thanks, guys.

Operator

Thank Manan from of line with next next comes our Morgan Gosalia One question, question our And for you, moment the Matt. Stanley. please.

open. Your now line is

Manan Gosalia

wanted that I there. morning. on just follow last up good Hey, to comment

over is comes about So months? reappraisal say about XX portfolio the every of of to the if the XX% been it's has reappraised XX% it quarter, fair portfolio last up for

George Gleason

Manan either new there or appraisals new reappraised has had been loans Well, originated. are because

actually approximation. that's So I rough that, that's calculated fair I would say say but estimate. a a haven't would I

XX -- pay loans just mentioned the had we know in quarter as we ended. off You I

was same it somewhere range exactly And many but of probably know that. I in we don't how the originated,

if up appraisals reappraised. appraisals, movement think in asset, old renewal an go the So, some of for value a and new If new is of extension we're concern. that and getting have show loans dozen you to come asset signs likely up to otherwise the and reappraising XX XX or a it's there's performance just loans know, we old that

Brannon Hamblen

Or I at loan. opportunity and an an good might are add, that we George, -- some project, there's happening there's the might reason upsize things consider a

as appraisal do a new Of course, any we we time well. get that,

happen. for So there activity that are reasons positive to

Manan Gosalia

Yes.

question a picture Can so big in equity? a with relationship the of on repeat had through those great where anything right? goes maybe loan downgrades is bringing you've deal, you it re-upping transactions. have you these then I in you lot negotiation? specifically And it get success So in that So us concession not to into bring into a a had business, general just that or other But related clearly Is else walk and deals you guess that there is what on to spreads? sponsors.

George Gleason

do have any Well, of terms think gave economics on any in concessions extension loans on pay you but And you that that equity. we we because get substantial that Brannon, those. and Brannon, were don't both, did reach And up for the several I our recap we brought out? improved might last them, probably had to downs. able reappraisal were be the quarter list the renewal on sponsors they

Brannon Hamblen

It's these have to are Sure. to -- most ended. to Sure. better yes, addition just And have Yes. quarter of the question. going terms just in in a going they're great

I paydowns think $XX Philadelphia. one of situations for project four got extend you on multifamily different the a in million material lone where and

another a $XX amount. multifamily We the need actually Oakland. the loan curtailed Oakland million on that for in didn't in loan project One full project had

projects. So on million a and were a another we paydown was curtailment. in Midwest $X hotel And the and QX a paydown there others we right million we that and QX before paydown, in that had on then had $X mixed-use but had

So just few. to name a

George Gleason

Yes.

to appraisals the the values reappraisals, as up early, maturity this of in the know I we we're loan So get list indicate appraisal appraisal that got of coming that higher is one and we loans the early. that -- got quarter. for We loans

loan-to-value appraisal new higher versus balance reflects the So of the current loan. the the

guys a the And in an in But We're dollar additional connection as several we're extensions would most loan. on as with cases the million deal the paydown improving the that. of that we the expect extension on time. well loan granting economics

So risk same the check keeping economics at improving getting time. of by in the transaction the curtailments the the and

Manan Gosalia

That's Got helpful. it.

that rate so So as get, one or if I right you loans, we should better is X.X% think yields? now, get not we have and taking about think on more fact certain the peak hike do economics as about the that yield or from the repricing we account? those somewhere getting Fed, additional on around how based X.X%, do so the that X.XX% we're Should you're deals some that there that into

George Gleason

of to through obviously, if Well, we'll the rates, yields. Fed continues loan number vast variable to probably raise get translate majority it? that is What you rate, loans that exactly. are The our Tim, will have

Tim Hicks

variable XX% Yes, rate. of

George Gleason

Yeah, most adjust XX% of and monthly. loans rate our those of variable

from XX points loan would, yields Prime, that in basis get but translate probably XX into rate, comparable increase. target rate improved has the or a XX which it point a in movement So Fed through XX the SOFR and movement impact would that you or Fed so funds would that basis basis about of points, of

Manan Gosalia

you well of variable the these of XX% get rate? that from some of the renegotiations are lagging is or But that as there repricing anything could remaining not that Right. beyond some

George Gleason

we Yes, there. those in some being a cases, of that getting are But are economics -- number transactions. better clearly, with that's that loans small dealt are on

goes just of is and That's going two the of at those a needle into that yields. not or or So minuses it's wash some to sort the move a pluses that that loan time. point basis normal of it

Manan Gosalia

Got it. Thank you.

George Gleason

you. Thank

Operator

One of with the our next question. line And comes Catherine Mealor for Manan. you, KBW. Thank question the next moment from

open. Your now line is

Catherine Mealor

then us And the related is that hotel question follow-up discussion. Good projects the can the had the in Midwest I I Maybe of was market? you you loan just just morning. those the that know tell downgrades? one in? market is see did land we in second loan Thanks. the market. what And my specific increase these said credit two on to on question reserve couple questions a any

George Gleason

loans we past levels mention. are and of land for that loans are special to reserves The mentioned special have Chicago the, in opposed obviously, as higher substandard in higher levels of and reserves

in went up reserves the risk those rating. on with yes, change the So, loans connection in

Catherine Mealor

your And new get at appraisal an if the extension mostly I pace getting maturity some you're degradation in new which feels or either George, just for like appreciate you the see about reason. commentary, project or It you at appraisals.

So do of like has there kind is appraisals that you going significantly portfolio, additional this there land is appraisal? risk just the I that we of kind us in a within book And mean that are LTV book updated as maybe could an through through so think and -- maybe much just to just increase particularly we of that that land help how just that process feel move book? the see

George Gleason

your correct. Yes. first Well, premise is

then Your understanding maturities, to typically us to arises obviously, new is loan. appraisals, extensions or kind our a loans get a correct. and if need recalibrate makes issue valuation get on new We on of an at appraisal we that think

that our prices workload. So pretty guys and all outside services doing busy of appraisal our that keeps

mentioned, As one distributions. look smaller land type. asset land the of I there that It's are Catherine, if think important right. of to on the kind the our you it's figure know far type loans in of really by that down at management The shows I loans distribution comments

done as I most as really to vertical those loans of And earlier, mentioned a land are construction. bridge

of a cost to a a are plans, time extensions we're to with vertical ready of loans. give XX-month six-month times into close So land who development doing a sponsors get land acquiring and couple their out to of to complete lot loan the piece specs

construction inside the track put tend those those to short-term, pretty do short on be that to So vertical the loans. assets on duration really us

hold mentioned, are there land few loans. And as I very

land that ago, in fairly a landheld out. a That's that And out blew land that a California. being instead unusual Now track was their dealt a cost scheduled or That quarter ended will development. occur the we've with but and was vertical for asset again. two deal now up that the just because situation,

those couple and loans. of other sort a And maybe of landhold situations than

perform having I about and will impact quality. think that. well. not material that and is occasional margined may and But an seen on there very well asset that portfolio here worried I'm we've There bump a be

Catherine Mealor

And the -- was what

Brannon Hamblen

numbers, going add just to back what portfolio your current more might to mean, just a circle that, said, I Catherine, and George, of I have I question. because currently -- you're appraised to I George are the going or valuations of majority year has George but know to because that land. old don't terms I'm the to. portfolio less say that alluded the that a short of

So just appraisals, of it's to land. that back that way kind on out, question tight circle of George it lowest your timing property to pointed loan-to-value stays the on in And type. pretty all figure our

Catherine Mealor

Great.

helpful. what was on That's emphasis needing to appraisal Chicago new that loan? for project, Okay. the And that a

George Gleason

you do take Brannon, that? to want

Brannon Hamblen

question, Catherine. the I'm sorry. I didn't understand

Catherine Mealor

So what get they you appraisal did it did need to maturity? What Was new why that was to degradation? a -- come on one? Or

Brannon Hamblen

loan It was maturity. in with an extension connection

Catherine Mealor

then wanted on I'm thinking that just Okay. about question growth make right. to Great. I sure one the this outlook. other And just

about the the So are XXXX you in levels, mentioned do think to $X $X And Am about couple over I was I volumes think if that well I be that volumes right? the next origination math, billion closer that's management billion. quarters. the thinking for putting comments origination to of going which you

George Gleason

XXXX. Not XXXX.

Catherine Mealor

you. Yes, XXXX. thank me, Excuse

George Gleason

scrambling knew you the want you what what historical archive. I knew I back be but others to to meant, you meant, didn't

Catherine Mealor

We've this a been long time. doing

George Gleason

in Yes. thrust we number billion billion we numbers, off to We of a seeing. The kind of the $X.X is in expected at be in end on think over high based to run range a of round at pipelines is to the now range the which probably comment of that and little said end XXXX, that year XXXX end the of high the coming range. had by the we we're $X we're the previously

wanted surprise billion level be may to we want $X.XX raise possibility the didn't above that anybody that now that. of with we We at So somewhat or XXXX. to

Catherine Mealor

Great.

then saying big of in but in the repayments year. of the it should also also it. as like year -- some well. Got back felt And a half you increase back were pretty So the acceleration the half

George Gleason

don't I going Repayments, know. That's pretty slow.

had 'XX that we five-year you that. of we to the and cited think It's side the 'XX, indicated average. level below around I low slightly So a

in the the while. to So think I into of prepayments been cases several slide of sort sponsors projects working a a they're next slow and that quite quarters they've that for for lot on lag playing bringing have development lot expecting a we're more of of been last forward year really because for

end as getting folks playing is lot the the level a at these thinking on are tightening sponsorship cycle, how little the they're think of markets a of near Fed are more getting clarity I the out.

that interest economy are are and is certain okay, decide saying, sense on playing still market makes a the likely where about the of enough got lot markets this we've forward. in rates the Our is the how clarity sense sponsors and move to of to transactions terminal out economics and be we're ready certain to

not uncertainty of sponsors all There's how much to forth. a that's about more and broad-based, and think for lot the product was was how so little far going projects. some on I have economy on and the sponsors I certainty all there's types different projects and And impact Fed a was some -- going there

But be the And more time, same has certain a on as mentioned some sponsors bank in getting space. seem some earlier, to projects clarity. little Brannon particularly reduced, markets competition the at in

piece So probably bigger about buy the little of a we folks and more where sort maybe would confidence a XX because getting than ago, at bigger of just getting it bit everything days settles tie a thought the end. little little are be out we're now

Catherine Mealor

you. Thank Great. Makes sense. All right.

Operator

our question from moment the next Fargo. Braziler with And Timur One our line Wells Catherine. comes for next of you, question. Thank

Your line is now open.

Timur Braziler

the Thanks Hi. Good question. for morning.

George Gleason

morning. Good

Timur Braziler

funding side. Maybe starting on the

acceleration to all in fine-tuning sufficient going you funding at the right of get think there now you the the kind do adequate deposit offering Or funding providing is some you forward? of your in amount needed kind where them an order of getting are need? looking deposits Just rates base, still have in and that

George Gleason

We've volumes been seem be well few rate at levels. the the -- at those volume to same and inflow really up last weeks level holding

So may about. there to bit. week a today, move tomorrow, potentially we action cause Fed or are where tweak could we and the here a there good little be next folks feel But

Timur Braziler

I near-term kind you actually then growth, increased. growth of at And look balances as the quite loan quarter. funding guess, Okay. Cash deposit was this strong

You have Or some next as coming kind growth? next some over this quarters? XX bonds impetus here much there you funding an due near-term the growing How of think are going should some that deposits? about and over growth Is be the loan other we months. in of are two to loan can three funding there to pull levers

George Gleason

a a focus our [indiscernible], did Dan continuing our growth. big deposits. Harper, I'd deposit in just had Cindy, growth growing deposit XXX banking retail of quarter. an five Absolutely, Dan strong We Ottie job offices X,XXX good X,XXX, Roulet Kerley, tell you, And incredibly in very people on Drew states

billion We expect We're in grow $X If that little than quarter. growth. loan a more loans the continue. going to to billion $X.X grow -- deposits expect to

maintain stay expect that And same. mix So be deposits. we'll same we would the of the hopefully able to roughly to

continue we deposits any deposits, of a high really that stated mid percentage and over this deposits reliance we We've increased been not or in our growing percentage anything respect on to to hope mostly terms in there deposits that. organically, with significantly. And base our the as of locally broker last several X% customer able do we've material quarters generated in

to, We've flexibility growing we're got really local but increase we our success through that. deposits clearly the to if we having organic and needed good branches like that with

Timur Braziler

commensurately back-end 'XX. activity? just crystal if as cutting into cuts? going on production the increased out the RESG lag Are remains Or rates fast and there going of the the way we back-end from Fed at, down to to forward that schedule Okay. for Fed funding in let's fall deposit that's there costs of the the is funding and pace 'XX take a be can constraints of And some kind then ball given with say, the the of starts

George Gleason

on of as the will deposit there the reflective that the clearly, that's fact CD on And cost of a be going just cost lagged up, Well, deposit way down. the way lag to deposits. be most

range terms, had have sort to majority the the them XX vast We X of that's where of are. month of

So tend lag bit to those deposit a on the costs will way down.

Timur Braziler

just last for then And me. Okay.

George Gleason

going less in do of fun will that as loans starts Within within rates to The trick will down. kind when lagging loan a Fed it lagging are mitigate somewhat set getting be that job when is cutting. down in good ramp rates was up, our to our it a floors

more loan negotiating every than that's future rather Now in where lower negotiate rates to and sponsors challenge a becoming it's higher. more it, are difficult think about a

strategy. to that and gives us had of margin. on the So decline success a so maintain that's little good a impact And it big our protect part mitigating slowing declining of the down room rates that we've yields of rates the loan

Timur Braziler

lastly in increase developing And where then the loan at we type If book? Got bought in sponsor the this the on California or land book? credit. Can activity starts loan the maybe to for Thanks of And deal provide expectation book to at of the to to then for last accelerate does wondering, the circling given it. future, point allowance that. the the for that that back just currently you me, allocated land quarter some I'm kind have saw the allowance environment. you that recession that's inherently

George Gleason

maybe color a Well, the let Tim, and end then going off little start so. add I'll you I'm at to

Tim Hicks

land allocation is ACL the what of loan book? the or question, your to was Timur, the book

Timur Braziler

land book. The

Tim Hicks

during the talk over had have our ACL. talking there build about new don't We I that opportunity and percentage quarters, ACL million Yes. four our a $XX number period overall million the charge-offs about right also in were good amount here. when cumulative has is the that last growing only time up by probably well. a added chart our that period over gone the same in net that This we've as dollar to $XXX

the our during obviously, loan and during economy outlook substantial period. time growth And, period that loan during on that that time our present. are still obviously, period, uncertainties growth time the reflects, That that cautious

in feel that from overall, specific allocation don't I ACL like good perspective, position to So front a of we're book the in land me. an there. we have

George Gleason

your what our impact allowance of different I further What's -- will to in remains question think that that the about obviously. we the severity be And seen, Timur, does a have build more for and it that? of we to and how parts if And our recession, question, you duration increases asked recession the the result need if portfolio.

as in noted weighted And selection quarter our scenario, the I is call we there either scenario it, remember six, on But -- for comments what Moody's What can't or scenario, think downside every our this. been we've approach last it. exactly pretty adverse? SX in been the management is we've predominantly Tim, to they has our the cautious which five

Tim Hicks

Yes, alternative adverse scenario.

George Gleason

downside sort the scenario that's SX Alternative of That's adverse scenario. their stagflation scenario. their scenario. recession And then

So why even majority that's our have provisions our quarter, been have the you've there. And weighting. seen significant growth as and pretty what benign us I that's been would we charge-offs think of for above have over every

and in a materialize, materialize. and in of a it quarters recession everybody on couple and quarters, quarters and the and materialized going a recession, X.X which been that's to mean, hasn't happen proved So to no is be surprise talking for talk may we've all been about couple to has the business modeling now not of of shows, anybody, the couple for I very may always elusive this we've years

we're of of That's positioned from we grade. think ACL for above view an pretty outcomes. cautiously well pay series point selected my But

Timur Braziler

Great. Thanks for that.

Operator

come James. Timur. moment from the Michael please. Rose you, next And Thank of question next question line Raymond for our will with One the

Your open. line is now

Michael Rose

non-credit but people off us for morning, extend to in to this to to be understand going I benefit sense add a quarters. year Thanks. Can additional a start of year, you the give guidance looks what margin with add what in next just coming into thought strong question. management or comments, looking that I and pretty areas kind would guys that everyone. growth? you're kind of growth hiring support for about talked to you're I'd In to good you Hey, the

George Gleason

And capitalized, of in a is capitalize opportunities of be there. in able management turmoil. history have one the ample have times great and focus team Michael. well and to challenge you, to of long Thank appreciate traditions I economic be liquidity, our the company on

seen folks opportunities And Every the number to capitalize followed opportunistic years us and the capitalize for the you've different kind of call very of really on economic opportunities presented. and us of a have be results on number time in on. of turbulence

very current people. laying The good some And and the economic capture really on market people in are good that loans to our already leverage our business side mentioned opportunity and on off has that's shrinking share plans the the competitors margins times. a and to fact are of certainly increased some that lot an is us of good really curtailing Brannon being lower loan opportunities

than set a we going company customer think opportunity of I customer expand in nice to run the it's the and who relations have, to allow acquire our in will material grow have across in give to base way. talent us lines make currently us long additions different hopefully to expand different a our of some which business people those,

are tell So three add people would right or would now, we're like you, we without looking so or lines probably across specific, different of four really I to getting that business. XX at that

our and they to and men think more very probably to hope going already one and to than improve nice most be on going the be, pool They the we recruit have. factors retain, talent of companies would doing quality we're ever those forward, work recruits to the important augmentations retain some existing talent before. women. bring is be of high-quality of And for and we robust guys and of board, would And talent I they're

a and Wolfe spending spending work of the But the to are others hours a and of workforce hours of hours generation the years of on and hours of ago, works I'm the workforce. between lot regarding of has members time the time lot this, probably by four Cindy younger leisure tradeoff senior a mindsets adopted is changed and and And aging. forever The hours that on we it. been have US ascribed by mindsets family that have recreational been would more pandemic work

in the once what And it system US not our was. educational is

population of we out high-quality not as a many percent as as we're workers before. turning were So the

we a long that. to be challenging focused to keenly and are very of All and run, is that going talent there in suggest recruit those factors on environment the retain

the not longer a pick or in XX, have long-term So people up they place are that in if we over XX no happy our can are value competitor and XX, that XX, next company. year with a really high-quality people

opportunity. I think that's huge a

that. on keenly we're capitalizing focused So on

Michael Rose

comments on just back to Okay. management Perfect. going the some document. Maybe

repayments about current You slower talk environment. the loan in

read loans think for -- permanent So I closed. is like it and that these much we've sounds about, market pretty right, is the what

you hand, little guys it will commitments of pressure good You tick as On unfunded growth NII, put in obviously, capital Do the levels. you've that kind would up but talked that of around, you one a bit about. an it's loans some a as have those on see this strong lot issue? get more fund

the play think or Just us year would these help about out how over Thanks. dynamics two?

George Gleason

that that I loan that in -- Yes. hyperbolic say or statement. markets is markets are that permanent Well, you exaggerating the anyone would closed tells

we I go quarter. and pay permanent had loans mentioned, off As last XX

markets million the so. came think, in closed were in about our our QX or and little So a they repayments repayments I $XXX QX, where are not above

our impact it's months was end -- three whether and it like the little of clearer of to So not going little the are the more six the are knowing all ago. or rate are closed. a that's Fed clearer sponsors than economy, that now kind like where who And a settled of months looks view markets nine hikes thinking those a or got markets getting they've just months

is the true the market. think same in secondary I

secondary market of is that's want into. the Now at sponsors wow, not a rate think, and to the the they reality lot I refinance our look

can and I'm of to project stick scenario. better the with can will my degree I rates months I if going see exit XX performance maybe another and and a So six months come OZK get or down another improve

XXX%, books this books longer these the So take a substantially leverage, our to have as happy mind, amount. the problem. loan view loans We're larger a really loan of XXX% in usually bear out we don't that -- our XXX%, us these sometimes are at assets term permanent on

these books our while at longer our rates So keep a future. on to for we're our at assets quite into leverage happy the

not opportunity a an as this view downside. we So

Michael Rose

right. for All my questions. Thanks taking

George Gleason

you, Thank Mike.

Operator

for Scott. moment Janney our next question will our from One question Michael. come you, next Montgomery Brian And Martin please. Thank the with line of

Your line open. is now

Brian Martin

morning, good Hey, guys.

George Gleason

Good Brian. morning,

Brian Martin

couple of for Just follow-ups me. a

build Just on of Tim. kind the maybe reserve for

need don't come, continue to I kind there's that the for of over come expect more your that given four are XX you you've to an given you maybe loan point Or of where build XX outlook? quarters. feeling to of to outlook last your growth? level and gone the cautious guess, kind point we of that basis given you're a from reserve Just where now kind should just at

Tim Hicks

comment time there's -- Clearly, that really provision on at Yes, determine to Brian, current got on you've and at I too quarter dependent during factors to given environment. the growth the we've end, appropriate environment heard that. given that then each in the point. to just those also many macro the the And this look predict ACL at we that mean our it's have going and at be quarter,

lower and to provision if the worse uncertainties But would or now. naturally, provision. go there's what the than amount So would improving you than uncertainties at still are higher same similar of then you a environment to expect current the or levels of amount level got if we've the the expect

predict this too at just it's be future provision that in factors many point. quarters to what So will

Brian Martin

Got you.

And on outlook. the then just Okay. expense maybe

to talked this growth come as you George given think the this about does how level, or as high what rate, a add think expense opportunities should higher next just is you've of 'XX, kind to growth potentially people happen. the Mean about just I some you additional rate the get expense as with mentioned could as even year down far we hiring the level that into of year what's the year pretty lofty hiring as talent? I expense what given added. mean, rate the relative far should

Tim Hicks

into saw year, assessment effect versus year. likely that came Certainly, teens to This year, obviously XX. on have assessment full XXXX have our for this FDIC We're XXXX you comments the new the Yes. mid a high this to we special year.

So my there our sort guidance special contemplate assessments. not -- any does of

really great throughout success on headcount But levels last this hiring starting we had those in marketing. diminished levels We level to opportunities. elevated year talent. of this into on as at the likely had we've next and would year, depend throughout and year. of great advertising year expect continue The addition, Obviously, well. We've were

point, compensation obviously, really George's I think levels talent. to is year-over-year. We've our top to had, XX% of headcount up our strong retain increases

year So I increase could XXXX our compared of see the percentage next level decreasing level. increase, of to

sort extended run but Too additional give mid- percentage early a to of high or tell -- period expect the headcount. the thoughts mid wouldn't to compelling teens a any we opportunities there, add just to an find to -- of unless we unless rate we for be time

George Gleason

comment. said to add would but that, with and I add Tim agree all the would I Brian, what

year our I'm XX% is we'll then at with to that. grow or headcount Obviously, we not commensurate grow going factor next balance or have rate to we're growth XX%. that. to Our sheet XX% going be XX% if a significant And in add saying

if you're you're start likely headcount going grows branches to of some of to or XX%, if level have going level another one of But have are additions. XX%, XX% network into to headcount And scattering new grows our branches. it it we

company retail before for right been out have guys have We're you've eyes growth. offices branches for your talked over about follower in banking those quarters. long-time you that seen play XXX And tremendous our today. capacity and of years recent And we've the a we

sheet going at we're balance to what later four, to now down the to road that need size year three, But years starting the and balance and we're customer also we're forward that our balance years into sheet to and our funding and sheet growth that five Brian of looks this starting branch add year and connectivity like franchise looking some the needs able more next really be of additional three need to to infrastructure going support five out. provide the to

to got be added XX sheet X and don't many or branch going the our branches. to the will see in year. whether little But to growth handful be our So to to add plan I that's the infrastructure bit But again, growth that's by future. years next part know our make we've you long-term offset that factors or will connectivity continue cost. a operating X balance that going support a that's critical customer sure a strategic convenience and in of and of to

Brian Martin

helpful. maybe just That's And final Got you. appreciate one. I one that.

you cost kind -- whether and of of or rate end it's I have the whom, where was or would of quarter? margin deposits the Cindy Tim spot do the for the Just on don't know the

George Gleason

take that? you want to do Cindy,

Cindy Wolfe

I do.

cost two. X.XX% of to or compared one June interest-bearing deposits quarter was the So

Brian Martin

I you. got

Okay. on the And margin? then

George Gleason

number. Cindy We we've got within But margin that And tends quarters. margin gave that don't cost quarter interest-bearing disclose but the don't that June. of We -- bounce good a give number to number those typically numbers. for month-to-month internally, you around deposit

Brian Martin

Yes.

a just high trying level then just margins kind maybe view. from And of just Okay. to

deposit near here and first the trough quarter. troughing, of we when meeting. is the quarter about next might maybe in after be of if quarter, talked a side, fair? NII equal focus given being margin trying fourth lag The Is the couple that lag Just comments worth term first at? that I on the the the or on tours so should the in that of it trying appreciate Fed you margin, about lag, all kind thinking about pause understand kind where the the the does percentage to Just just else the

George Gleason

several a takes out the those looking then probably deposit and deposits. at if lot is that. fact our run Fed it far you're One to of there work the deposits through a lot XX before are starts of of There that months, stops think I in several quarters on cutting, quarters given side variables as as that

starts at The other thing long is the cutting. Fed are rates how we before current

Fed to of a or lot time more there top to our the and levels, a we're time year, one which if coming margin as to effective -- raises the of if -- of protection as much at really throughout even more getting near us times at going then have next stays two of deposit give the So market line we're lot floor top reset will rates the rates a down. rates fall

harder hand, a be terminal goes other rates. floor or get and the Fed set the reset. to month going On our That's later two to number to cutting then peak a if starts

low were maybe a because extend old floor out near a we floor to origination or very get helping with So time pleased or the pause in rates over period very rates pace loans at books. the really current of new this and of and rates with slower take Fed the us cut roll-off two see last that's loans the beneficial books on

that's helpful. really So

is our not control best pressures, a us inflation perfect we once year, from and actually a stays more getting a or scenario Fed reigniting under scenario their for margin would accomplish that's then So and raises there inflationary which Fed probably of twice good point view. and for help is really to

Brian Martin

you. would second given in fourth late that until of year? start cutting And it dynamics I quarter that late George, those kind that early Got early the doesn't realistic half scenario, quarter, is -- next first trough know or Fed

George Gleason

model which the And set out We've month. figure rates -- just run -- trough a you me the on assumptions dozen models every with where the in gosh in you've and where two scenarios is. interest got let leave trough rate just Well, we let you concept between and various three got. is depends of

let should of because you those and our one any would answer and own -- your an you think give I'll I match quarter it So run give models of in be me kind comment you color trough points and models the give could you see -- you more. let or where

Brian Martin

the you. Thank appreciate George. I color, Perfect.

George Gleason

Thank right. you. All

Operator

moment Preston next Brody question Thank you, next Instructions] the Brian. our One question. line from [Operator And UBS. of for comes our with

open. now is line Your

Brody Preston

morning, everyone. good Hey, How are you?

George Gleason

morning. Good

Brody Preston

I but to I I've wanted maybe wanted maybe on minute. for to circle just capital a back question, focus some got to -- just credit

think, but and stock amount price. obviously is on XX this quarter, the bought a between, I the a XX bit of you stock quite difference So back decent

think it XX.X% and last your -- quarter. guess CETX So and I XX.X% ratios was now it's I

of to our that buyback in safe And out pretty given it so guess the hung be on more levels kind buyback growth shouldn't we estimates, if at just solid. into we these baking I remains much is assume outlook

preserve balance for you're growth? want going so And to capital that to sheet

Tim Hicks

we you Hey, just we gave the average not only quarter in Brody, it's Yes, paid the ended. that price Tim.

We you some those also six gave were the there Obviously, the authorization for there at prices. have value average compelling remaining. still price opportunities We months.

our think our do that. I additional more repurchase hesitate at capital focus we we levels, stock though, organic those values shares growth values. and these at see to compelling going price, preserving we're for on if in won't to But So

Brody Preston

guess is you did you them discount these LTV talked rates -- on the projects play and were to and guess, it. the carry therefore, not I much rates that rates been rates, to And bit any little next discount reserves had values as just have what I given reserves that relationship then these better there discount therefore, I a this change don't changing given moved to and the Got does the just or against role? to discount George. year, with want in the as and need the a fall just up tangential like maybe get a result. But have the LTVs to if ask and between about appraisals Is fall

George Gleason

perfect not discount degree of rates interest where rates are but a where between correlation There's and correlation. it's are, a

your interest I and values again correlation. loan lower – that that's But and a If translate positive rates hence, fall, into level price then not better to correct. what if thesis rates perfect that very should you is is So maintains would and through fall correlation values. discount a tell at that

you the loan-to-value risk rating the one our asked, for an question second impact Yes, And is have into reserves? models factors many loans. on of that compute that does

both loan-to-values risk that are equal, lower on risk expected And factors. default being loan. other loan result ratings things has risk higher in calculation of effect values, And loss all an a those rating, a correlated So in loan. probability and an per those rating lower a higher result every on of to obviously

Brody Preston

just did to I want discussion. like I every credit as within an George, NPV how you analysis discount to sensitive said education on to given I value. the loans the the time rates relates RESG about that back on guys given they from and circle I calls Thank get you something -- land And And are these values to these we credits. you that. Got kind get just for and and feel duration just of talk But it on it.

like that are saying inputs the LTV in that that that So changed with understanding the to I value present was in land it I NPV the there And no XX% went end loan project. just you from guess, a the XX% change Chicago. in of value of one correct? project, the actual the LTV, Was a

George Gleason

if -- in Brody, loan, terminal a is that hypothetical. land loan, where I development may as sort But or probably not was next be loan know I'm land any to a sure particular I true using changed as my of imminent not. of that's example that know Brannon the in not value and do surprisingly to going XX longer-term hold months. not that XX the the

probably bridge going going holding up. Your your in rates to discount extend

on know I if Brannon, Brannon the that. know Now, not don't may even terminal -- value

Brannon Hamblen

ultimately point on terminal have changes it tend I No. I to valuation in have higher my that LTV. more impact rates Yes. but value don't on of the our George. than don't top that periods longer on mind, your and

Brody Preston

Okay.

guess about table particularly about and the at of the went got or actually the you the explanation went table, XX% land that land to XX between other because I the one top one the that -- in interested and -- on and of if loans two whatever. size to -- I was except look down guess, bottom would be so And just the that I XX you that XX% from to from same table

guess of just contrast. loans? is of between point that those like shelved, so but drives kind is said, stark well, the first one forward got like I maybe layman's really bottom a one of I the from what And delayed just going me, project's the And dichotomy two strong. bit been view, or a to a

George Gleason

You're Go Brannon. ahead, exactly right.

Brannon Hamblen

And the markets yes, in there a country located play great different Well, across question. tracks are Brody, but very in land it's markets. of different these in various that are dynamics -- and are

case, you're Southern the in looking this I'm at Florida. not if that's chart, in the mistaken, bottom I So probably believe of track

markets And a are than different there are like they expectations and in or dynamics Francisco. Chicago. in San little So certainly other bit perhaps

to So you're and so many attractive at correlations. look every single factors like it's that in this draw hard play There chart look at and valuing. are a different

George Gleason

But Brannon of just in it your in land, of to Florida, apply take in is to slowing Florida is, said piece cases, if up, right, concept, Brannon the magnitude is pace not development fact, if it speeding lower most and and in down. what that

holding would, to years go in to that's improve going kind discount track point, it land so your is now of that vertical piece on So three XX land. of months, that's in develop the going a to period of

Brody Preston

Got it.

Okay.

George Gleason

And right. Brannon's I is guess color

Brody Preston

it. Got

XX be LTV loans they just seem bring think and topic. look build I makes that because and I changes when me other like a the kind more of you it's fine. the to the like and that's like, okay, at mean, ground guess the to Is already I'm on more the it? risk that properties, fair developments a I I've up, about in -- developer, no at of if because like happened changes but right? the helpful like I actually floors some definitely got table -- if Is I'll five stay land of LTV way And to built say No, I down, Okay. sense. guys, shovels floor guess, naturally just could we've easier might like a land just, yes, got like yet. much right, look some to they when equity for And it

George Gleason

Yes. Exactly.

variable value. we portfolio said, appraised most the comes pieces As variations it and our when to they're of

Brody Preston

Got it.

of them land have this you. regardless rate at a sponsor. them of it's office Maybe of commit Do another is an kind got value these maybe you for strength reappraisals multiple the more of the terms what with what equity you've sponsors, time on the for not projects do one point. point, of and you kind getting down, sense what a just you building of is rate in guess, or success is a guys to the when working is going up strong at project land of you're the So or the of -- sponsors success whether relative over probably they've to is in, do phase that with I have sense given just had one

So of at economic to Or still like do from They're they to perspective, loan do they're because got an like land know next we just commit they strong a land work maybe few Like a you. need it these developers. to we to with this commit understand how yours? over equity of partner years. don't less the trying because look I'm this to willing differently out the project going more to is psychology to

George Gleason

amounts or closer reappraisals contributed we in either had loan or additional on four Well, appraised first, the with we I would curtailed that that. sponsors, that our values quarter on line or five the tell last you, mentioned, more as appraisals Brannon original equity had or to loans kept

weighted XX% get of cost a was appraisal. The loans. So choose of we And have sponsors portfolio, our and capable of the reason XX% sponsors. track so we at we record RESG equity try choose And good average think these. two, well appraisal much is that our one, in for in sponsors supporting I or X/XX them and their we to have well

at got loan-to-cost they've of XX% and equity you've defend. got protect that there in So lot a to

of encourage leverage amount support continue to assets. fair to to a have we the their So sponsors

and was XX our make think would RESG at weighted I XX% I that comment at on is portfolio was other The March XX% XX. June average

percentage the of portfolio the So change.

loan-to-value unchanged was it -- on we a basis. So

higher So lower. and were we had some that some appraisals

portfolio off XX new pay them. We loan-to-value that of originated. And had speaks loans weighted bunch all the quality ratio. low new think it had an basis leverage high of of were the high of average originated a was of business the quality, I and on a to and the net We loans effect that the unchanged

Brody Preston

my this is it. one, last George. Got And

cover earlier is are lending. OZK of I Interestingly, -- of other I Just every company performance-based on week. that includes And hard the through two target coming forms of does a companies last comp that this also interesting we their one thought proxies things within one the just that year. this is was rate is differentiated NCO

as And credit so Is telling I want guess, ourselves lending. us to differentiated trusting you really on of we your terms way me, do? And do do do? you they're comp view necessarily it underwrite with NCO kind their you it. to loans of actually says well? you're as But being that to don't shareholders, investors hey, We're And good by in why important when what the as we're within you you're then three, paid two, trying to that their other do banks that then rates we why target paid. aligning get trusted that get to think at

George Gleason

banks Well, try to Tim why other do don't two your I'm or answer never it. enough to we let questions. be But do explain would other going to presumptuous

Tim Hicks

of, in our We've the annual of executives all and EPS are NIM. so plan short-term ratio related. our got components incentive that of are part Yes, financial senior three Brody. efficiency

out, pointed you net The other one is two, as charge-offs.

assets. non-performing is other The

record relative ROA, a incentive is return. a long-term comparison shareholder of short-term had as having those to long-standing our total incentive our of ROE components We've track and

feel and to a But had of certainly shareholders. aligned plans, the we've our incentive quality, asset quality. levels. record And beating industry-leading long-term short and with are on So both track team maintain averages we asset like our our incentivize industry consistent we long those

So way been long a and very for that's time. that

Brannon Hamblen

could I I if maybe in. guess more sneak one

George Gleason

The day quality Brody, I'll lending it, lenders probably XX have recruits paramount one for that. heard every color team years. talk to with primary and is of almost add every asset of guys importance. piece and more I day

So tertiary number and a goal growth two number purely one. goal Profitability margins are is concern.

margin, concern. part So we and live profit our two one, number that as asset tertiary quality, of number culture, gross

a very year-to-year of aggressive years very aggressive and pricing there grew little a saw not you on structure out couple competitors ago, concern. being and gross because and very balance are sheet primary our So leverage on

thing run. grow the capital. don't long just the year up fundamentals. two and We're stack or That's doing okay. the sticking a we to for We're if right So for

got on are paid for you've severe values we and are of the is when adjusted assets that get a market, a where valuations situation to competition more out the better on beat doing leverage Now and already get can kind a of market lower that. bit asset up

a much, got returns. much We better risk-adjusted

in values grow. assets are getting growing may a growth to get tested where bunch and when to already aggressive at and environment get is at compared is we So lot of trying that good grow high-quality an a everybody going everybody out to margin we're stress

why XX And a it's we attention little fundamentals. years. we we've been continuously to think to So for I I tend mean be countercyclical. the pay profitable

Brody Preston

me you obviously that little is work else sponsor bit it. what take you if point the loan some when one kind Like paramount, identify like focus right, could that us and I a when you given residue of And something When one doing know losses sneak matters. ask kind long. Got out just workout given might to on strength that give to just just -- at within that we're be about to help last launch? what nature paid could I insight, but I just process I that of guess, on charge-offs. running the want did a maybe the maybe some think there what's you're I maybe about do, just asset? asset you positions way to early needs in. I think guess, But on different told is some really differentiated I you -- pretty the I a you of I you you're before, uniquely less riskier think of quality, identification perceive

George Gleason

of and that the the great the structure, part management a you tell would I is those. underwriting into goes Well, our asset success that the documentation,

important. is effectiveness So structures front on your end, structures those and up and you of effectiveness the documentation set critically the the

points weak weak points, before you've future structure where in that's the transaction weak be those important. long before identify transaction long a around and can you even closed points, if those So may critically

documents at of about Clifton your built one management got closed basically is just then Wang all exceptional the of all about other in and and RESG has and knowledge that documented guys and and or getting the with Brannon every on really their then And credits. leaders asset in monitoring leaders we've and they've There that team Hill loans loan MBA these and those really over talented, Most are good a really good and asset assets teams asset basis. highly managers got to monitoring team, daily these a program. they team estate and group real tools and a It's assigned educated manager. focused are MBAs of XX good

third-party report. sometimes really at are us developing before issues see in monitoring a able contract, the that ahead things portfolio. before big sales of very and every every They're being and to issues and of maintaining the level have things these on they every and lease, lets every them focused out the in They quality sponsors that important get fix know preserving is get asset

and from closing helpful a six managers process goes as underwriters job And the that does and But We've asset through just then a RESG in -- or pay on critically have there the and losses maintaining I process have and few quality here off. slide that team had had years, over it portfolio. originators all losses way just deck our the think, we my all the on, way we've loans of the originations all the team in to we'll portfolio. XX management seven and there important credit through the the way the very is incredible our an and the

Brody Preston

Thank details, Very everyone. taking you much George. it. I all very thoughtful. Got really for my questions, the appreciate

George Gleason

you. Thank

Operator

further showing I'm the at currently closing Gleason this time. George to I'd And to Brody. you, Thank hand for conference like no questions remarks. Mr.

George Gleason

for guys We're our quarterly We very again about you good of results. very it feel really days. today. Thank proud in call talking about and I'm excited to joining our XX you

thank great concludes That Have our you. a So call. day.

Operator

your This participation. concludes for Thank call. the you conference

disconnect. may day. wonderful Everyone have You a now

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