ALTA - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Altabancorp Q4 Earnings Conference Call. At this time, all participants’ lines 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. [Operator Instructions] I would now like to hand the conference over to your speaker today, speaker Mark Olson, Chief Financial Officer. you. Thank sir. ahead, go Please

Mark Olson

you, and us yearend all joining Thank financial good to review morning. today and you our results. for Thank fourth XXXX quarter

and call Joining Len on this Officer the me Williams, Altabancorp. morning President Chief Executive of is

to will our released our release presentation financial results night. or our website earnings To obtain presentation, Our earnings refer included and visit announcement at comments www.altabancorp.com. the today of please investor last in a copy

cause than of expressed statements forward-looking forward-looking results by statements. and from are by contains of earnings actual difficult the Securities or projected intended other materially differ caution the Litigation in and of are inherent for All Our Company. Reform to statements control historical by forward-looking statements. forward-looking covered readers implied of Safe statements could listeners Such statements. risks release forward-looking those fact such to and Harbor which to predict involve provided a statements that important These the of statements We Private uncertainties, beyond XXXX. many or factors are the Act number be

Forward-looking statements were duty and as Len? Len. they update the speak of no now except With assume required call as such statements law. that, over to date to by we I’ll made the only turn

Len Williams

for of pandemic solid to of share strength for fourth effects fourth $X.XX Diluted quarter year of fourth fourth income for net earnings the per quarter negative the the Thank $X.XX XXXX zero fourth you, all and economic organization Mark. the a the call. of quarter million XXXX reported conditions XXXX. the Happy interest there’s for New quarter to for of with compared Year difficult of XXXX million $XX.X ago. compared demonstrating $XX.X and quarter common earnings the our were rates the Altabancorp and good morning. to the Welcome reported despite to of respond for our

common the income year compared a $XX.X per period or for share was diluted net of all diluted million year common $X.XX share last million same $XX.X for with XXXX For or earlier. or $X.XX

the I our Our only COVID-XX zero. needs respond difficult performance net income economic believe speaks year-over-year near pandemic our by events effects team solve the this to interest financial and working rates together this client’s and to negative X.X% diligently of negative entire these working during time. to to declined despite

Our X.XX% return compared XX.XX% X.XX% was assets on average XXXX was for return by all and on with equity of and XX.XX% average XXXX. for

on considerable over reflected our years. controls, the and As in We’ve processes, technologies. accomplished address effort significant few we Year this team has shortfalls begin and past what spent New time, money, to

national we share, and could in value-added critically technical accepting We’ve world-class consultative contracted effectively build necessary to execute renowned us our is strengthen It’s retain build we our build also with competitive decentralized skill and training assist our To a that quite and skills. large we help these believe also we more a the company made and that company to operate to leadership rapidly that So sets in this to improve endeavor, We organization. important it’s banking culture order innovate. to in culture community of stay us maintain we’ve organization imperative leadership that industry. to three-year in accountability, experience and changes. improve the evolving banking a as larger ownership, a sharpen commitment ability changing enhance and commercial in and market change management banking a culture and development as

and better with a workforce. by our We’re enhance to processes, skilled passion driven technologies, our experience client’s newer

the risks concentration base. to ability safely and asset and credit organization manage proactively has grow our capacity to continue to We ensure the

processes underwriting functions credit and improved our procedures. and We production also separated the the of and organization

managed particularly and Additionally, given administrators assume, existing credit we were with have were willing the that roles and we credit hired reviewed than cycle. thoroughly These to nearing a end actively we risk department. new clients our to of portfolio credit administrators qualified our promoted out in credit higher fill profiles

complement organization business Lastly, primarily and strategy multiple staff construction has recent that major we to team, for continue growth asset have banking our management touch organization, providing provided commercial and to timely, on estate originations transform existing mind from attracting from three to by existing lender and our Keep bank been in include focused acquisition institutions. lending with a changes, our last high business regional billion from to clients our value professionals we’ve exceeded these $X.X the national have who in many solutions. several each the relationship is The outside support creative, a that based helpful real opportunities talent experts of estate among while making loan lending professionals years. also talent while real high the performing and

systems that grow we traded and safely to Utah. in portfolio earn believe share As day. our loan independence the have market a know processes expand must company, our people we publicly and to our we adapt We every improve that and

growth share annual past hold years, the by have grown $X.X over same to growth period. approximately in billion rate. $X.X billion, billion, Altabancorp over three has grown assets over $X.X the position $X.X annual deposit Utah. a XX% our the grown Over organically rate total by Total a six largest approximately have billion to XX.X% deposits to

losses our our allowance plan centric results of to have performance financial built have not our we capital aggressively for and by in period, weather reflected the without sheet could same These adaptable balance has strong our associates. uncertainty. the achieved sheet a economic credit level strength is believe We been client us today. strategic proud position. balance held fortress Over I’m the and of shown regulatory liquidity

to net XX in our the we on margin us believe and peers. strong our returns. a in rates among Despite a and strong pure to of West. achieved our interest assets fortress percentile value, and and pure in zero compete amount price, a we is balance hold, combination unique near the maintaining above Intermountain XX of have While sheet mergers sheet, acquisitions for grow We significant organically return aggressively places the consistently currency balance throughout above interest returns position is and a liquidity stock the percentile

With us the story provide of market to the is low opportunities. the to at management interest this We combinations bank believe operating forcing strategic rate, leverage. will look acquisition improve

book tangible Over per three XX% just our $X by growth share past and annual the years, under increased has rate. almost value

in period. shareholders annual have share per value $XXX over are in million over return book XX% our earned paid When We period. totaling over total same also combined share, of totaling paid an the $X.XX dividends the per the dividends return increases same with approximately shareholder tangible

operate as unemployment and of most the nation was a in We’re perspective. The the one the fortunate nation consistently an the States at whole. economic States from Utah’s nation XXXX. economy strongest rate to better than performed X.X% has for XX, December

lowest a in has year-over-year the While was and while the increased the This nation. Utah effects unemployment X.X%, by Utah, other in of able in migration State of indicator the will States any Utah construction jobs negative Despite jobs for was individuals had – one which economic the which lowest to pandemic XX, for were change decreased of end year continue flat. the year-over-year the as home families is rates of that second is outperform of actually the Utah of Utah are year-over-year recovery to experience jobs at Nationally, at the change the unemployment X.X%, leading believe by jobs December believe net that extended in in continues we on to rate X.X% a from the as total an state. overall the and work whole. an period. locally. We nation

Lastly, mitigate our which fatality in any is well pandemic. rate participation lowest programs, the negative the payment will to in financial as the clients of that own in COVID-XX We relief relief we then effects substantial as nation, of also government through believe state provided our programs. the Utah

demand the to participating are second economy this partly has stronger of the the We Program, to believe due round. compared the muted first been is although in round SBA We Protection the Paycheck with Utah.

to to their Altabank date as funded SBA loans together to To over small businesses. have XX% first PPP solutions have forgiven. our over round with path XX% recovery loans pandemic. their a and clients filed and the PPP million borrowers $XX continue of overcome them We work these to with financial had our to medium-sized on will helping XXX work loan forgiveness all we of provide assist in for

XXX businesses total offered by $XXX after program We flow processed round challenges. To PPP company totaling cash in not XXX XX XXX date, payment million deferment There who of This million million totaling $XXX only to pandemic. individuals $XX.X borrowers greater temporary are three The has expired. deferred borrowers XX excluding XX% address their million. we totaling As loans period leaves with impacted for days of relief agreement a on PPP with $XXX,XXX ended totally borrowers. XX offer borrowers borrowers loans, payment balance or to loans still loans yesterday, XX% or made deferral deferral. the also payment relief loan have or of the borrowers for approximately for and $XX small loans, loans a have second to payment

two payment borrowers with deferment have with balances We totaling entered into million. loan $X.X another agreement

for charge-offs loans with all [indiscernible] to other performance losses. macroeconomic to balances exclude continue quality government programs to our adequate determine and closely our our of allowance programs, loans we our only our adjust X.X%. credit only loan PPP trends, allowance if that basis the the X.XX%. have pay loans to believe expected We’ll total finished our pointing assets stimulus of the in. SBA If current of we was the events end portfolio percentage will should credit total the monitor more Nevertheless, year points this and assets XXXX, muted overall We stimulus a postponed we were increases Total see of conditions net total XXXX. of credit percentage government overall to total million $X.X expectations expectations potential until we is asset we losses. to XX With to guaranteed be As losses government of at the will at or relief negative continued from cover or Non-performing for credit our and as loans, that at loans. total finished delinquent with X% year. only were X.XX% continue programs

of as XXXX to the of to turn Altabancorp payment paying ended of the Directors of payout shareholders XX performance more XX, well February market XXXX company. our take declared $X.XX forward over to are organically through we XXXX. these payable trend I As will look advantage by the now we XX on to X, financial sheet acquisition for XX, be we opportunities. This record continues will The are conditions per fortress dividend the months dividend believe the earnings for quarter of ratio for the Board three XX.X%. dividend discuss common quarterly and specifically our balance XXXX, that fourth positioned of grow XXXX. of The a Mark to with and share, December to was back call year Mark? dividends February

Mark Olson

or effects significant period and Thanks, anticipated our to end of the end Non-interest bearing XXXX. in relief to $XX year XX% we over or Total increased counter conserving billion earlier. at compared XXXX, deposits million year of million year-over-year total the to to during of with Non-interest quarter, XX% million of XXXX deposits the to that XXXX. ago. and with consumers which of or billion XX% both the period $X.XX bank stimulus compared or to year cash earlier. decline and deposits programs continue most anticipate with increased programs, increase a or recent a at to million throughout year the and businesses deposits. XX% of grow billion mentioned that the billion compared grew a the program end pandemic. with $XXX deposits the deposits increased is held in balances XX, throughout interest the we result increased earlier. the Last total grew try bearing the proposed originated federal now actively deposits year of bearing is investment $X.X The And will at a Len. compared billion increase at Total additional $X.X $XXX billion $XXX the We by XXXX. the governmental XXXX, at assets primarily X.X% at we $X deposits $X.XX $XXX negative to total primarily XX% the end year million billion $X.XX same year to government, Loans end XX% for $X.X result deposit the loans a December to the same of to in

Non-performing with ratio XX, However, at about the for during at sheet credit we’re with losses of end million profiles or in. and The was the credit XXXX. given balance that ago. loans we year, year, XXX% $XXX also $X.X earlier. increased clients with at in of the higher sell $XXX,XXX $XXX end year $XXX for changes year-over-year at year end the December available XXXX, resulted of for end at allowance compared equity liquidity. shareholders. to XX, year year, we XX.X% securities a the assets the million increased XXXX. liquid or end actively from total strong end $X.X the The to December ago. The assume, despite particularly credit XX.X% year risk to the assets $XX.X The same assets compared investments the of declined resulting compared XX.X% end million to by fair growth loans with relief million of managed at and $X.XX with million capital positive of our to out a XX.X% XX% XX% or equity December XX, value a Cash our investment decline primarily result concerns a willing leverage Shareholders’ a normal the compared X.X% of year approximately to $XX.X ratio, period X.XX% year of and the are strong and changes other $XXX for income or during of at comprehensive from year million paid the million the the primarily total intervening end the from year, with accumulated ratio Total capital XX.X% is was cash dividends XXXX. programs. earned in year compared economic operations company’s at the Non-performing available anticipate net compared increase at periods governmental at million growth allowance increased income with with earlier. year We the million cycle our was of to the to billion investment that in grew total leverage assets loan the given with market $X.X reduced of held The significant from securities earlier. the to a X.XX% inflows $XX.X X.XX% million double-digit compared compared for in risk-based XX% of losses of the at

a compared Turning for to for pre-provision income income the million was statement. quarter million $XX.X fourth same the with the period Pretax earlier. $XX.X year

income, period Yields assets and ago. ended declined pre-provision lower earlier. The income was points the million or earning to year a for the the to million declined a for same of higher For for December and – period non-interest Average to activities. The or a declined year yielding securities $XX to points $XXX the and income cash X% same or decreased X.XX% with the investment $XX.X points net fourth year the a the in fourth interest period. of result average is Net compared primarily three interest benchmark net the almost year, yield percentage banking stemming expense period with for by for lower on X.XX% compared deposits, decline the by company X.X% primarily XX% compared increase pre-provision result on offset quarter average the as respective fourth with with for million to our for to core Cash interest cash or a average compared $XXX average loan points narrowing and basis primarily points quarter securities $X.X liabilities basis of comparable ago. X.X% reducing the months income total reserve million primarily basis narrowing for XXX securities increased basis non-interest in X.X%, quarter same million fourth periods. the to investment million Total a period billion X.XX% the for million fourth investments interest quarter an for $XX the for X.XX% $X.X decrease the XX same same same rates increasing for XXX zero portfolio earlier. $X.X the million interest to to with of assets The XX% earning and comparable from held income same amount year the XXX same for net and quarter XX fourth securities on is compared year the mortgage result quarter of interest margins pretax interest XXX% compared XX% bearing $XX ago. with the XX, pretax The investment assets of year higher compared XXXX. declined cost federal for increased the basis the periods. for declined earlier. the X.XX% for a with Yield X% X.X% cash of period margins

X fourth of for adjustments including cost fourth XX for period funds points year net the margins quarter the for basis same X.XX% to quarter. declined Acquisition to interest Our with the basis earlier. added value of fair total discounts and points the of X.XX% loan compared accretion accounting amortizations

of XX% the our sheet. I fourth we current fully our need excess would that have funds were held to investment cash think sheet, we we it’s the at margin X.X% for liquidity interest our quarter. these exceeded total in were balance our rates, that net loan on only And deploy highlight to if securities important and balance

For decreased for or of interest interest to all $XXX million with net of margin X.X% XXXX, is comparable X.XX% million the decrease primarily periods. to all basis net of $X.X $XXX result income The points XXX million XXXX. for compared the narrowing

or For significant grew all XXX% investment $X $X compared million all XXXX for with $XXX all total and million billion or deposits XXXX, core XXXX. XXXX. in $X.X increased $XXX of $XXX securities cash million billion to billion of our increase deposits, of for with of XX% to of compared for all Because

to assets securities earning the and of of interest XX% to average percentage of XXXX, for with XX% All all XXXX. investment cash average total compared increased

on XXXX, on earning X.XX% XXX with to declined of for points of all all yield declined assets basis with bearing cash interest declined points The compared declined of XXXX all The with XXXX. all points of compared XXXX. yields for Total and investment of for XX XXXX loan on X.XX% XXXX basis liabilities For all XXXX. of basis portfolio for X.XX% of compared XX all X.XX% cost to X.XX% X.XX% for securities X.XX% our for yields to XXXX. X.XX% compared of all interest XX for all points to with basis

declined total the including compared on at all our basis XXXX. basis Again, were we our of only with And amortizations excess all investment funds Acquisition for X.XX% securities of all if of interest points all of deployed adjustments in think the for for that XXXX, all XXXX. note X.XX% of we again, sheet loan total accretion net accounting for rates points cost liquidity fair XX% held meaning balance X at sheet. value of of to cash our important and that for margin balance had funds a loans to XX Our it’s the XXXX. fully discounts to these XXXX I and loan

have interest for margin exceeded X.X% of would net all Our XXXX.

of December the fourth from The quarter for period $XX $X.X $XX.X expected losses We quarter. did individually incurred million $XX million earlier increase for losses for based ended a Moving million, for economic the same allowance The to loans earlier offset $X.X decrease metrics or of for year or the primarily current loans by is due to for compared million. the $XX.X of losses. provision year related compares in on million decline in impairment reflected a $X.X impairment due the XX, to lifetime for credit credit evaluated to loss deterioration pandemic. collectively $X.X in prior as potential in the with evaluated and with period X.X% effects XX% not million for million forecasted provisions fourth of conditions period three same $X.X the XXXX any credit provisions allowance billion million net of quarter offs net for record same recoveries current under This a impairment economic ago. to the for We and months related compared incurred year the to of the calculated with model. the charge the provision the

a earlier all methodology. compared just For credit XXXX, provisions year loss were losses prior on incurred calculated for with for same of million $X.X the as million $X the period

of federal For government credit be delay throughout XXXX, adequate to continued of asset the and anticipate losses. that million relatively will relief allowance net credit believe we portfolio government net programs correlation with quality compared stimulus payment some current programs loan and all the expected cover charge for Overall offs We across low, end. all asset for trends is our losses XXXX announced by stimulus we have incurred remains and of million $X.X offs charge-offs quality $X.X trends charge of improved XXXX. our

the continue will sold quarter loans was $XX the should ago. with with if The same we a for our year income million mortgage adjust portfolio income our compared to overall period the year fourth quarter expectations fourth or credit to increase $XXX ago. or with in increased same the to XX% a million compared monitor XXX% performance to conditions period $X.X However, losses. for of year loan $X.X compared period banking million determined XX% for million $X.X Total due a to $X.X same closely primarily of $X.X $X.X the million million increase million for increased macroeconomic million Non-interest the mortgage or we and earlier.

pricing sold on overall loan loan also such as experienced margins wider loans products. we improved our on We

of to income XX% The the all million income for for XXXX, $XX or increase of million $X.X in XXXX. XXXX. non-interest income to all was For $X.X increased $X.X of on million XX% $XXX increased sold with to million compared and loans XX% million in mortgage gain of Total million a securities. investment or due sale all million primarily $XXX mortgage banking increase or $XX non-interest

Our division mortgage in time income pretax provided the XXXX had results This first in division our the million banking $X of year. year. for banking a mortgage that is positive

we improving We expect to the improves continue technology mortgage to non-interest reap banking and expand our experience. our used and mortgage our States both operational operations operations, income in see the as client’s significant in Utah investments surrounding and of that in benefits enhances efficiency

roll In fourth Non-interest this same income services improved quarter with quarter. to was $XX.X million from treasury application to the management period for out commercial treasury expense earlier. a see we year million clients expect addition, compared mobile fee a $XX.X as our commercial new for we the

for XX.X% Our compared same period with the quarter ago. year a efficiency was for fourth XX.X% the ratio

$XX.X year, million the expense period million the earlier. a For non-interest same with was for $XX.X compared year

mortgage a the benefits in for banking result the non-interest associate Our higher resulting ago. increase payments, salaries months XX.X% year three was period of was efficiency for XX and year primarily same compared The XX the division. for particularly higher the ended XX% December in with and the expense ratio incentive from both

and banking loan addition, to divisions. applications. for This investments for includes made a data incurred and In processing in origination commercial the cloud-based higher new mortgage banking commercial expenses costs we due mortgage technologies

commercial management the processes for commercial ticket consumer applications, and Salesforce costs implementation draw commercial construction smaller automated processing data solution cloud-based costs inspection CRM included for addition, new solution cloud-based costs both of client solution, new In treasury clients. for a a management and loan and for budget cost for

to mobile rates client overall to anticipate clients We aggressively We investments on of make more enhance to evaluate and empower the transact as overall scalable to businesses to we become continue operating zero opportunities. the significant the lower overall cost platforms interest platform near new to to acquisition remain more technologies our and our expect foreseeable future. for to in experience our

Income compared for determine the operating over compared million a the platform, for review how the changes we As was for was client high-touch result, to tax The our same improve per making tax XX.X% effective the with leverage. million rate We experience. several our for while the better ago. can next overall leverage $X.X continue earlier. our to our retain operating costs anticipate fourth quarters fourth period to quarter $X.X quarter same year a with expense year XX.X% we

For year, $XX.X $XX.X million compared same period the expense tax million income was with for earlier. the

the back ago. Turn year, same Len. tax the compared year with the a XX.X% the For was for rate period XX% to call effective Len?

Len Williams

interest on Mark. you, year, Thank the fortress effects balance our pandemic [Indiscernible] focused our of pandemic of client’s pandemic. a team build the from despite of economic an proud and the a during addressing rates. I’m We we unprecedented us. to all were very performance will XXXX was sheet and challenging the for how zero needs their over this withstand year achieved we the and that headwinds responded this time. negative financial These downturn

our allow and that our that to As we’ve strongest will to XXXX, place processes us put in share sheet and expand one economies safely grow we balance the nation. market the of look into forward systems people, in

open we’re before, As to for to we And back we make positioned this joining for I point, earned well moderator by I at mentioned that turn independence team Thank questions. our the succeed. analyst our it and progress strategic to I’ll plan. much so today. every you good the our up us executes day, way, believe

Operator

Thank line question you. [Operator a have You James. of the from Instructions] David Raymond Feaster with

open. line Your is

Len Williams

David. morning, Good

David Feaster

on release, see a It the great appreciate going forward. expected. is backdrop Growth talking the commentary to in and despite challenging aggressive stronger was more than growth about I focusing

growth hires mentioned for for strategy the the it’s and new – capacity. from you’ve growth, that the that start in allowing curious, a it. to and just or Just liquidity whether the strategy the deploy investment growth loans it is new trajectory facilitate origination the the accelerate technology to excess more And

Len Williams

positions, you’ve everything system incredible. thing measurable, and perspective automation it’s and to place the underwriting the also the we the is staff process brought half We few last a We’ve – to to with great banker and a us on smooth, XX actually apps consistent, same and are question. that its trying last process We’ve added, those system to come exact them. the the months, from people and credit there. a done been both that’s Anyway, combination manageable, two management up. new of the seven to the brought XX% we’ve now portfolios already. the answer get growth other to were to not spent compliment is open loan had make much I’m And origination from number in place. over adds pretty years then the month the we’ve last in And got XX commercial pipelines like have we a support who institutionals in have And who have sure of

this as here. our we’ve it’s is lending of So week than pipeline current at XX% time higher any been since been

be the believe an place. just organization two joined a this those he pipeline. be And of figure individual ago a commercial building have kind joining organization now safety The eight slow know, this of Lake weeks of an already for first in is one head couple of are in was people processes business, and been to you a So be States. we’re new that in process leader Salt for as – prior consistent that. us us been very large very fortunate and for to and able banking has a And has the in or to been we’ve got as

what So looks the we’re – where now. pretty future right excited like about

David Feaster

in do it’s light can you just obviously trajectory of – what of terrific. high is digits That’s have? this the here. double in challenging and downs, a pay you kind growth Is of think I the pay single-digits light possibility offs or low guess, even

Mark Olson

and we’ve I’ll numbers. on in about that. let models the about numbers tell I you pretty you Len your we’re will those talked confident past,

David Feaster

loan you the mix about in of forward. here close improved the exclusive just NIM And of securities just front on stayed margin staying you’re likelihood liquidity during core for PPP. as like been the just thinking light we And then in acceleration we And builds, the the with in asset – the light pretty additional expect NIM should short has growth. it sounds look of in expansion

Len Williams

It’ll but necessarily on securities. Mark a not while income changed, got those speak can asset to they’re completely and we’re mix securities, producing get little to We’ve short take that the…

Mark Olson

were Yes, we’re to to we a purchased redeploy And for month there. almost We that additional come we cash as that we figure turn to wanted purchased. securities securities specifically we’ve million the $XX receiving reason. could cash about in back us in that from ready it the so loans amortizing

in if that portfolio some we’re we about to that, of sell gain – loan And that. excited be Right to the there. is is frankly, growth extent the million have unrealized we So growth the anticipated. would now, $XX would a stronger than love

So we’ll look at that.

volumes, we’re that we’ve their thing with and lot out as budget try that you other balance just continues better rates what is retain we’re that help with our obviously, anticipated. loan return. loans provide the we well when to cut the cheaper with guaranteed than mortgage on sheets it’s of extent buying a and beat the as originating if it, David portfolio middlemen. And at a here, grow grow The to going government to that their worked comfortable do out securities, to they to many group doing higher our them banking we To

So that’s as our well. thought

David Feaster

while ahead client that other about opportunities then reduce to initiatives. so base That nCino retaining leverage the of you expense investments do driving you how mentioned about, experience, pressures, And great to makes cost on and of additional costs. talked I high a about lot done really competition job the inflationary we forward, but sense. of just, revenue doing mean, reductions touch just, a with the stay you automation commentary investing that kind But think operating growth? you’ve your or operating it for look the leveraging Is contemplating as leverage? more and

Len Williams

efficient front cost happens that’s We scenario. saves. leveraging not to more be That’s to in obviously, end we’re with more get are to best going and that’s the cost grow. and to bread to butter on do growth that and critical, and than to have able overall, that want reductions want want we way definitely do we face the to evaluate extent we our accretion through to But the but the and that do make it’s we’ll David, it. growth, that the back platform the frankly

little few just growth scalable. would it’s technology platform – has implemented we that expense a grow So more in speak us point years we’ve and your the made the a more slowly. to last To little David, the bit

makes it to need up either that. the So of portfolio, backroom we out acquisition, a an don’t add to attraction do picking lift a even people

equipped with well technology. pretty We’re the

Mark got ourselves into and we’ll yourself save to it’s But So to just more to on And it. into versus continue costs. to lot we’ve yourself a that. those to leverage stated, as prosperity fun grow the look industry compare

Mark Olson

David, able whether were us gave when to our pandemic, fortunate a use to that we had at – home the nCino implemented clients with frankly, or we not and use beat. LOS And had, that anywhere, because opportunity be we our that miss with

spend than easy make think So going I we’re technology everybody, on the obviously, we to off better more it be. to for

David Feaster

color. That’s guys. great Thanks Absolutely.

Mark Olson

you. Thank

Operator

Another question Liesch from with of the line Sandler. Piper Andrew

Your line sir. is open,

Andrew Liesch

good guys. morning Hey,

more on your profiles. does growth now? managed loans you here I of or higher last it maybe Where out Is feel think to be right portfolio stand from some going with do of comfortable million it’s to year at? risk with that still And reference you back come $XXX out. Mark, just the

Mark Olson

Yes.

time on. it and done and the those with expand his of not a job fantastic We’re should credit here and looking at Credit team at. sure up portfolio comfortable that Officer our be and we’re Chief growth spent issues. Judd have cleaned have about we’re worry a and to ready It from We to lot Kirkham, making where

and So we’re we’re ready. done

Andrew Liesch

operation the if optimism it around obviously I last to same they’re Great. year. refi expecting lot anybody’s And just know, going from and factors, on don’t mortgage, the just then Great. of seasonal be expansion market is saw non-interest because and growth, expanding the so income the your a volume that we

is just going expansion that’s drive really to from So market it a that.

Len Williams

side think an that the said, that the of that’s cooperation been in is the Utah still non-interest and in average really income and measured in area, that demand. mortgage that at group the our some builder But refi flip last It’s see part arena. treasury past. put of the you point. to in place other us the a little builder from in treasury size market the that’s be have Actually, that place ready – frankly, a bankers up And a are I have shrinks half we’re the to, Andrew with of That’s mortgage going expansion agree on group expand the the spent year and through I We market. going go. in above and for here some our those getting and point, been joined market with new demand system into a have leveraging has to business from opportunity services. we’ll management that built this bit finance new perspective not opportunity based a contract to probably The loans management the able and quarter. more great migration would demand the of to the we

place same going on non-interest income think now the management bankers growth to we as in some those the having at time, coming with be treasury there’s well. significant So

Mark Olson

look Just even you Utah all the in are We’ve time to got low. construction X% add, up Andrew, year-over-year, during that jobs pandemic. when inventories

from with be a as mortgage as well lot opportunities believe So going there’s the construction financing. to we term side, both of

Andrew Liesch

all hear. Okay. Covered Thanks other Very questions. to good. encouraging so much. my That’s

Len Williams

Andrew. you, Thank

Operator

line [Operator Janney. the question Instructions] of John from Rodis of The

Your open. line is

John Rodis

Hey morning, guys, good

Len Williams

Good morning, John.

John Rodis

in my I’m about press you mean, fee interesting improving – I income. guess way times. release given income. maybe Hope just well, the interest on non-interest to and guess, net sorry, improving another it I guys doing I Actually, Andrew asked basically question are just say comment your

– just guess, can you that is that you I XXXX? So can your income to think increase it be you – non-interest clear, is it in expectation year-over-year

Len Williams

Yes.

John Rodis

is. It

And be again, and mortgage, I new would that Okay. combination some of management guess. the treasury

Len Williams

the mortgage year the is This time and seen haven’t normally see Yes. start it. to decline we of you where

continue hopeful we’re breaking at least area in for their the near-term record to at that So pace.

John Rodis

guys. you Thank Okay. much. That’s helpful very

Len Williams

Thank you, John.

Operator

proceed. you Instructions] Presenters, [Operator time. no questions at this may There are further

Len Williams

new much. support the very you all Thank you And and much. happy year a us. we again, to XXXX. Thank have We Great. fantastic appreciate forward who so to look joined

Operator

you Ladies concludes call. gentlemen, conference this Goodbye. for participating. today’s and Thank

You may disconnect. now

Altabancorp (ALTA) 28 Jan 212020 Q4 Earnings call transcript