ALTA - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Altabancorp Q1 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, today's conference is being recorded. now today, hand President Mark Financial would to conference and I Officer. speaker your Olson, Instructions] like the to over Chief [Operator Executive Vice sir. and go you ahead, Thank please

Mark Olson

for Thank joining first you XXXX results. financial morning. and Thank quarter us to review good today our you

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

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

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

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

Len Williams

and we're After with morning to call. your pleased our Good year off Mark. welcome interesting year start the incredibly solid an feedback. you, and in investment to Thank and We appreciate results. challenging interest, XXXX

programs our substantial to In well programs. we our have as own drive-up have relief been XXXX, remote work facilities. government and to been our as our participation reopened, branch we employees our All from lobbies s and have in through relief provided back of started payment clients financial to bring operational safely windows

from offer to additional funding of the PPP SBA round program. continue second We the

our all together with the complete, financial to we clients negative path we of are the assist solutions work overcome will their our them continue work to relief substantially to programs as on to payment pandemic. While effects provide recovery to

significant normal related to us as our We financial organic continue well and from relief from growth. agencies, government as to receive programs clients funds

result, have year-over-year, billion a which over end our high a in last deposit unusually by increase ratio grown the rate from decline XX% This As the deposits is year. $X in our of XX% represents growth [indiscernible] at first the quarter. reflected

are it liquidity. deposits resources natural core additional challenging to and been to While us has quickly this allow grow, safely deploy that

grown XXX% net yielding Securities year, over has or margins. Our impacted prior $XXX from negatively loan million portfolio overall Investment the has which interest our

to the quarters. continues hopeful million compared our or for X.X% that in quarter the portfolio Securities that decline year. was the portfolio, will as prior start investment the the over Loans first our in and with are loan seeing We for held the peak anticipate of balance first quarter Investment future increased we grow $XXX

terms initiatives in underwriting enhancing our of overall and of couple class, commercial our improve including lowering in loan concentrations, credit sales processes, our technology been credit years standards, lending used we our quality, past product to several tightening the completed have For and space. improving the and overall both through we've type asset

existing generated loan and $XXX mortgage first on in and commercial to aggressively book. banking, banking, commercial the in quarter over annualized divisions, safely billion Each in over substantially generated million an The $X.X volume quarter. new our volume million the the in banking, $XXX or and in of initiatives these basis. first retail tools our place have processes our With loan complete, recently and hired bank lenders grow over

XX% has $XXX year to compared And to to million, XX-day XX, a at year loan $XXX million by grew pipeline or million or XX a $XXX our period compared commitments with same ago. the by March XX% unfunded earlier. Our million at March $XXX grown

Utah experienced staffed at loan in the quarter Census are Utah with declined business end under investment while nation. estate, the based real growth at over generating the nationwide. just growing and total of X% in strong was and significant unemployment X.X% jobs, with decade at for finance pipelines X.X% compared the verticals; XX.X% the nation Utah X% and homebuilder the by on year-over-year Bureau. jobs total fastest past Our fully state economy volume. looks U.S. the The

first reported the $X.X Utah We As we initiatives, first of our first $X.XX and the all the quarter income growth of quarter completion anticipate economy, for of with the substantial were the Diluted of of for of share for XXXX. high of digit of per for million XXXX, compared strategic for compared quarter quarter XXXX. loan a first $X.XX strong the with achieving net XXXX. earnings XXXX $XX.X common result million single

for quarter XX.XX% on and return first compared XXXX. average for of X.XX first Our of average X.X% return assets XX.X% with was the and equity quarter the XXXX, was on

any As far, well our continue programs, clients the participate loans $XX through or SBA. stated in in of to XXX in on on of loans, PPP participate own two $XXX,XXX financial offered to XXX the provided pandemic. also forgiveness. loan temporary $XXX the totaling our on million Under loans million received totaling potential a have made XXX we Program. round has for $XX.X one million. funded as application expired. approximately offered of loan as deferred through challenges. Under the totaling loans borrowers loan borrowers government their funded flow or not borrowers balances, of million. payment XXX SBA client million. relief SBA Protection XXX we to have $XX.X individuals, totaling received of greater we after We earlier, payment businesses funded. Only to relief applications was round XXX denial the XX% participation by cash of to relief program Altabank we $XXX forgiveness payment COVID-XX for and relief a and Today, SBA the impacted filed XX XXXX loan borrowers the program have not Paycheck substantial submitted all totaling two to $XX We deferral balances We XX% payment date, agreement XXX deferment period three rounds in To totaling for address totaling days the programs. loans forgiveness with Thus balances ended million or

are network solid in around financial owners properties into have totaling payment in five entered who hotel performance. of with strong and with have on borrowers managing balances extensive We and further million, deferment agreements loan $XX which a four experience and hotels

assets effects points, trends loans were $X.X quarter. delinquent of given $X.X pandemic. negative Non-performing the quarter. of the asset for first Our X.XX% Total of $XXX,XXX were basis first only annualized assets overall million quality of expected the have or better or performed Total the just end only X.XX% or than net five loans. at total charge-offs million the total were

allowance or was $XX for Our credit X.X% losses loans. total of million

or analyzed total totals, Idaho, Transportation XX% which this this we City XXXX, because and center the educated airport balances issues by city we our -- Intermodal While assets our Salt their our pandemic. West, the in the build which workforce. growing underlying with XX.X% Lake guaranteed as or government Wyoming XX billion Salt to increase being a the increases bank service has address allowance the for universities loan $X we've change XX with during Montana. a rather in portfolio, Lake Lake with region With in define March biggest We credit PPP identified intentionally to credit X.X%. Arizona, is helps Delta our as gain billion the City conservative Colorado, Salt as Salt become but losses Lake use is and other students, then new City the well the is of six the for with state largest year-over-year Terminal. XX,XXX the this of If Utah, from who recently net organization. individuals headquartered arrivals, the at hub over than at percentage to loans not of having a $X.XX This Intermountain significantly and exclude of peers, over higher nature

Lastly, continue tap of us great are of banks a This for pool offers we professionals to Utah. industrial grow. XX% headquartered all to as in financial

of fortress position. aggressively our the weather to our is of we our liquidity These and strong without our We could proud capital not results in balance resilient financial level reflected bright built balance sheet performance our plan as believe proud achieved strategic sheet been associates. bankers. of economic regulatory credit have and adaptable losses, uncertainty, more and strength even a have I'm our for shown to-date, of client-centric allowance

currency fortress posture grow [ph] value maintaining and the have well position peer balance above combination to returns organically, wealthy Intermountain strong strong us stock and throughout and the able and price returns. a to safely sheet, business the a we balance achieved compete in to While aggressively be West. sheet, in consistently We unique M&A in places believe a of

last for value our to decisive all firm have of over taken We generate years put for Altabancorp and on course several success steps a stakeholders. the

retail, significantly talent. high capabilities team among performing attracting and banking growth mortgage have outside by We commercial, increased and providing opportunities our our exceptional by existing

declared to for continues XX, Mark provide We a center. information all over oversight the dividend with will quarterly discuss months The our always as for XXXX. talented per our interest of and ratio paying keeping Mark? grateful payment new to strong turn I be $X.XX in on I'm for March dedicated dividends. earnings and trend front XX%. scale directors now will us quarter talented specifically technology Board first back the leadership performance XXXX invested payable The the was more to financial business our of common three who allow ended May XX, May operations. over have and dividend to -- call Directors The XXXX. XX, significantly of record while XXXX dividend of our share. of stakeholders' company's This for shareholders to XX-year of payout the

Mark Olson

year the was quarter in from compared Reserve income almost Thank cash the Federal a for year Pre-tax, earlier. quarter, with for is XXX% was $XX.X impacted billion declined X.XX% a on modeled and X.XX% points total refinancing for a with of the first for increasing The primarily periods. coupons their prepayment pools with million the first due income securities compared ago. increase XXXX negatively respective reducing significantly decline investment lower or comparable pre-tax you, yield or $X.XX X.X%. compared interest X.XX% securities, these the by $XXX The in than earn same income on higher decline with a to decline billion our net of the on portfolio XXXX to particular, non-interest by increased interest period XX% rebalanced backed year XXX securities million points assets of same the This earning at period to to by par. amount XX of some increased higher declined periods of the on prepayment end same these sale yield of This $X.X amortization a as the income. net for X.XX% for us. due insecurities the quarter of sales Len. on income securities period $X.X and with points to we of XXXX, for with to $XXX offset net the interest [ph] $XXX of highest in primarily billion in Ginnie basis rates. on quarter average were result million XXX interest of interest $XX increased these Q resulting $X.XX million average borrowers yielding by same million on premiums the gain due of ago. purchase $X ago. million. us to caused million basis securities securities million in the quarter pre-provision first compared lower our margins securities In first increase mortgage at in The The higher nearly was prepayments. result the Year-to-date, with the for rates for same X.X% decline to loans on first the year million same $X.X basis and $XX.X the the rates, to rates investment of significant first a million primarily average significantly investment offset the declined the period rates zero, income a of by jumbo Mae the banking same to experienced recording benchmark period pre-provision the The Yields prepayments to backed in securities mortgages held offset to earlier. selling sale rates paid $X.X year by mortgage-backed negative the compared investment prepayment prepayment higher the securities mortgage address Year-to-date for mortgage yields an we loans increase quarter To

the We quarter. portfolio the of quarter will in on income recorded additional second $X.X as prior on at the have which yield portfolio $X.XX the our expect securities the yield an in million quarter, be our in investment excess provided have securities investment XXXX. X% of would in in would remained earned the we income, net Had for interest X.XX% another

we highlights only interest a investment reduction net Federal have cash would securities, were the the future. was rest portfolio almost X.XX% declined zero the our to lower our bearing rates over XX yield interest X.XX% the foreseeable same excess compared will level first net is total if loans year Total holding to Reserve significant the the the excess in negative our securities first liquidity reducing with margin We period at of we we X%, prepayment XX% held the on effect and been in liquidity, even Our for quarter. of that in level that in most currently the cost due of interest liabilities are benchmark rates, yielding margin higher interest significant normal basis rates the interest lower to we the holding. for quarter assets points and of first investment earned and net believe the is our margin liquidity we earlier. at in the with the narrowest interest experience yielded of quarter is which earning This in of

of the on and Acquisition basis points discounts including points declined earlier. year loan the fair period with accretion deposits to adjustments valuation cost margin the interest first same to total X.XX% funds compared Our quarter. first add net for X.XX% for XX the a accounting basis for time of X quarter

Moving evaluated a million credit $X.X million Incurred or losses, loans to allowance compared quarter, of provision provision or in $X.X quarter same the a the evaluated record related X.X% million for of million losses $XXX increase year credit for billion, primarily for allowance The million. This decrease $X.X first the $X.X $X.X of was to ago. the due for in loans million a in did XX% earlier. collectively individually the offs and is in offset of we by charge related provision credit not net for compared losses million first for million. to the same $XX.X charge net to year $X.X period with period $XX.X with offs of decline

and asset XXXX quality overall improved Our into XXXX. throughout trends have

significantly that in the We credit allowance Our for current mitigated. stimulus losses charge-offs anticipate impact cover the well remained to credit been relatively our we our across the continued adequate to low, our has loan portfolios losses. by our as with provided us. of programs federal expected as And have is portfolio Utah government pandemic economy, the believe

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

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

We loans, mortgage also quarter. division the retained some the sheet family balance generated first residential in single our banking on

our in mortgage as the well efficiency as and as we the improved made investments income non-interest reap has which clients Utah operations, operations improving our significant in see mortgage in benefits experience. states of enhanced both operational surrounding to continue expand We and banking our technology

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

its Encino, banking three period efficiency management worsening as efficiency loan is The net best smaller Alta commercial automated for Our investments the for interest ended Salesforce XX.X% commercial of for of division, technologies based both income. non-interest clients. in Costs a expenses commercial technology months to result and and including cost the commercial cloud the new due quarter, made cloud well ratio for consumer titled for costs division, in for higher investments was year solution increase for worsened client ticket application construction for the solution, management processing in the with based origination treasury for cost the The Express. same our data XX, of based result XX.X% first ratio primarily loans solutions, inspection an processes for of ago. drawn primarily cloud March new banking commercial as XXXX, mortgage the the new expense budget, compared and made lower CRM implementation to

increases our on lower merit of expect division. and and grow. in scalable increase new banking mortgage continues the non-interest result experience from benefits the We was in technologies salaries particularly higher also them company business cost to overall to mobile transact payments, higher the to company's platform of as in annual become expense more the clients empower resulting The platform employee incentive continue to investments to and to to operating make enhance more significant our

premium incur the quarter application of the company credit for small FDIC. the the the of to XXXX FDIC payments assessment addition, first from did In due not bank

of costs first as review costs the year Lastly, continue the touch to results can we for next the million overall $X.X same to expense company near with quarter. over our additional million the million for improving quarters the $X I’ll our operating compared for ago. a experience. zero with to platform leverage We was first retaining We anticipate Len. effective during to the several making period our Income The incurred overall how and remain same over anticipate future to client a quarter approximately foreseeable high while legal our was one-time tax back interest rates tax improve compared we better call overall rate for XX.X% changes first operating for year XX.X% the the quarter leverage. period turn $X.X determined earlier. the the

Len Williams

in balance this was turn processes in of Thank economies Mark. I'm to well one and us to joining a expand Chris, to to at nation. which the the appreciate growth, and of for progress performance share and we the to are good point, and both positioned portfolios. I'd strongest I our and XXXX moderator, the deposit of us back of like market we safely started in like it that proud earnings questions. team right and succeed. in us people how and improved allow grow sheet significant our all everyone year I will made and all we've believe systems, with you, our our for uniquely enhanced strong place, put We loan XXXX our challenging our

Operator

Feaster from comes question first The James. of Instructions] [Operator Raymond you. David Thank

is open. line Your

David Feaster

good morning, everybody. Hey,

Len Williams

Good you? morning, David. How are

Mark Olson

David. Hi,

David Feaster

in effort? broad client I much are giving well, outlook, a put is and more it this was new up came just see of growth it great think I competence you very quarter. how guys Quite guys going you it's just versus wanted improved get exactly huge you do mean, some what where And of to an from from. pulse that more a of based, to to to but a is Very said all number. effective It economic doing clients you sales invest the do. were growth frankly, you the well. acquisition

Len Williams

growth It's But the coming parts from. were, is where of this everything. a combination of interesting one

lot of with success of talent lot we've prior to calls, brought that and talent. productive. hiring on As had began in talked immediately we've pipelines A them has a be

grew verticals. you yet. but and commercial the So even in don't the estate, it to also banking estate of our we totals real grow our A significant continues see do and and in in well, in portion that was our but branches mortgage real

to drawn in As dialogue that drawn I mentioned -- that our our have by up increase at least we unutilized by available, up yet loans $XXX been the million. or not have

First low quarter usually on is that.

just those as So well. continued portfolios we growth anticipate from

good we little but is estate real and stuff a quality we're we've bit up a So the done tiered a higher stuff. it working of the portion bit game historically, little

Mark Olson

into other and become the we're year about more think certainly the from Whether loans process think us efficient it's to just helped I process or the more close, completed application well. think effective. has just itself, just and helped David, thing has get much Encino much I I that and efficient that it's the is, now a has sales to

David Feaster

earning puts drive and seems helpful. like, too, run, those? that's like think profitability need to back hold line then, there? is on margin just strength trough, mortgages. liquidity are the do all it here some in rate it a and is on Okay, but getting excess on guidance key I given guys earning appreciate in weigh I'd it which conservative, on you first more or more the think willing really any Do that it in the guess, put growth. price to assets, takes on the argue is in short assets? on in quarter and And to this I attain the just have, just you're loan any the sounds on and and and pretty pretty sounds pipelines about it you the the strong. think growth you just think the compete put thoughts to margin, the you how you the can order the sense more opportunity do these Just the world to makes of

Len Williams

I the loan XXX. margin, was the around yield Yes, mean,

Mark Olson

Yes, right.

Len Williams

yield bit holding it ago, for year quarter. the X.X Around where loan the a It is down a from was there. is little but it's

on So price. necessarily we compete don't

We fair those and of relationships value, enhanced a been are and over and bankers take strengthened We've a driver. talented our that's followup and it certainly pretty constant have consideration, the last not that into but of year. provide we got group lot speed

The other is brought a item that we in process Salesforce. new a CRM

lot So easier believe the follow to up it's for we on bankers these to better just a technology stay place top I of identify, in got that things as well.

So conservativism, comments loan by on I noticed we're long no, your to appreciate going the that growth now but enough you've not stretch.

David Feaster

I kind bench to new the and attracting then follow job the in your highlighted opportunity you've a And of Yes. on wanted guess, just market. great you continue of talent, hiring done to grow I market. the up to the and technology

and how that seen in an are the that some the technology hiring, the place, technology rolled bonuses that putting curious on guys and pipeline? you've in Just cool thoughts building ultimately of going, conversations conversations now in increase are with you've impact just whether out you out, the of paid out

Len Williams

and as season, that's able on to process is, But drive in. plan you've the exactly to so because know, in you've the support seeing got allow and efficient a are processes we're the your ability been place piece is the them incentives, well. Yes, the today's or is comes we incentive the strong then understand important you've to through in there, to stays which through from work offer products, be effective to production much And first And with an didn't world to business. that where get to now. here. bonus piece, a that technology is got pay news that great and got And what lose you and technology person to people have the paid have here where based matters be

lot good. every put have identified continue still we pipeline another yesterday, pretty one an as and about add will an market feeling so today. the out. a staff We've seen this has offer we're we we to as good pipeline. be to bankers [indiscernible] needs. because larger are who Recently a have the been to sits great, and pipeline is us it's we've So we just that in that We where seeked have feed banker And out that where opportunities a top of

David Feaster

Thanks for color. the great. That's

Len Williams

bet. Thank You you.

Operator

question of next Your & Davidson D.A. Jeff Rulis Co. comes from

line Your is open.

Jeffrey Rulis

little to wanted specific. morning. a into Thanks. guide growth maybe dive more Good the loan I

I single think digits. you're of five, at year-to-date, mid kind already

So could you guys we that the expectations a do a the growth talk conservative, signal big single balance What year. the digit the growth in that for about but the the that mentioned number? year? for balance in of deceleration would You of pretty there keeps see loan in

Len Williams

and just unknown. QX. we pandemic, all what The in don't the you, not happens We're yes, point. anything Yes, be with to through the QX don't backing honest We rate see way but that growth know down at this

Jeffrey Rulis

Okay, sounds XXX margin, on direction XXX, of puts where do a takes like but -- on there, the you guess, that I core your anticipate and mean, so then I headed? of a margin then, outlook on the pretty And blunt. the lot bright growth, but take

Len Williams

what's securities, would the like in back were over quarter, As we in mentioned, just mentioned, if our prepayments seen quarter, I banks we this if have had the as and quarter, function the a in we're Jeff, were -- that's with XXX higher in fourth experienced just not all we based I been seeing, higher And rate? and not have X% pre that the quarter. then payments fourth to margins

It's whole the for that around take into buy [ph] I securities. XXX, margin of forward, first But, that probably out the around amortizing change securities, mortgage is securities year, into in to in got be to the investment loans. and to wanted that, difficult rest would we we that $X.X over because immediately to look why reason we place backed As expect going the XXX. X% and

cash that coming was strategic month, could into be growth there our we've redeploy initiatives. loan back So, we and finished that we as the every now loans, that would the knew

don't next now we're back least I able highest expected. to get. we expect We $XX anyone aggressively, quarters. take portion portfolio much in about But, we'll liquidity will the now, turn we what it portfolio into at as in. safely over single million loans having right Fed, grow and stimulus getting every that's right and But but programs think the to and of cash it's believe a that, that the from and securities will see that So, be didn't that said the expected multiple from hopefully, but come take we month the several

Jeffrey Rulis

of Sounds The the had, good, XXX, the the expenses. last just XXX great. or that's year, XX one basis end expansion points I've by

Just talked and kind investments wanted here. to you're in mindful some you the to make rates of sure, of about expense of that addition making

So get at investments keeping the outlook what the or is you message XX.X, -- can to is make that for that and maybe for the the line or hold growth expense quarter, wanted here our, flat? the

Mark Olson

we Yes, last We we in more years. technology. think got in couple it without the in think place to put we can continue funding we've the to technology continue because will we've available increasing grow for for see the efficiencies

very maximized commercial the We on lending efficiently platform. haven't yet

there So are opportunities some there.

that we your growth moderate coming don't or model. online. growth extraordinary And expect anything are that expenses of we would on modest fund out we the can't efficiencies So around expect already probably

Jeffrey Rulis

thank Well, for right. back. I'll the Thanks. step answers. All you

Len Williams

Thank you, Jeff.

Mark Olson

Thank you, Jeff.

Operator

Andrew from question PSC. next comes Your Liesch of

Your open. line is

Andrew Liesch

details sounds interest. like inbound morning, pretty traction, the bankers good Good you hiring surrounding It and had some outlook. growth guys guys. have for all attracting Thanks margin

M&A to should but past of and I M&A I continue organic the strong. good are guess, good in wanted to what's cadence guys you prospective loan know growth kind for chatter such deals you if what's on So be have the capabilities. the do have deals, growth? hopeful you such to the front? have like do But organic growth the

Len Williams

and a certainly radar, community right. well in to it Yes, we're the pretty market doing own the also the banks but on smaller is their good economy be in in in tend

down So carry will to imminent road. there nothing and do to but this point. the we organic at we push there's the continue opportunities continue be dialogue, think We'll as other

Andrew Liesch

And pretty strong trends without there, organic a to that, that? Nothing it. and you integrate out someone, like trends, on risk. don't might I be is on at not this organic integration go securities, that's Got the just more integrate through going [indiscernible] pop any the is have the any that did you correctly to it bank then expecting level, happen hear disruption good could look build sounds

Len Williams

down to expect remain loan will we would grows. securities. as We mean, -- as to and book flat it correct. that that's we'd continue like down to we to can as that's, I the purchase quick that Yes, get

allow happens that I back some book as coming decline. caveat, that is, the to though we mentioned, anticipated flow for is in And what know deposits One and to that going sure We're grows place the conservative forward. as we've and we down three not we're Andrew, and As, a But keep security market. want to yield. book don't loan we keep growing. now. into but significant It's front programs stimulus on will make deposits cash getting continue the just quarters coming us, going

one goes And that so down. in far, row three quarters we've a on wrong been

think drop, we but unknown start is normalize, to there there. that that, out things securities portfolio an So if will

Andrew Liesch

Yes, [indiscernible] than been it. spoke around I've expecting. has deposit growth been stronger Got

questions. I step Thank you. covered will You other my back. guys have

Len Williams

you. Thank

Mark Olson

Andrew. Thanks,

Operator

[Operator next question of John Instructions] comes Your from Janney. Rodis

Your is line open.

John Rodis

guys. morning, Good

Mark Olson

John. Good morning,

Len Williams

Hi, John.

John Rodis

Hope you guys are doing well.

the that just to of Just quick, runoff the PPP include impact back loan your of to the does guidance, real loans? clarify

Mark Olson

does. it Yes,

Len Williams

does. It

John Rodis

It does.

Okay.

Len Williams

to PPP from team, amount the quarter. no, declined our loans round fantastic program The filed quarter they've forgiveness applications fourth they've SBA But two. haven't from fund and and of loan lost yet. we significant been to first the We're one continuing

we to portfolio even continues decline on to quickly, round as two. continue that And so fund

John Rodis

I guidance single you're be so growth, digit single can and then and runoff, digits, going net still? back your you overall question Okay, grow of in the guess XX% core loans prior for a excess of high but on to high

Len Williams

Little more. bit

John Rodis

Okay.

and I grow on and mortgage investments think you Just the from guess that But your mortgage guess going the from revenues -- given mortgage, quarter? value still so new front, the down NBA has it given forward sounds forecast first like quarter. is various investments trending first and I can forth, offset you the your

Len Williams

Yes, we down a the little expect bit. to mortgage do business slow

fact, of forward. we're seeing matter a it As

mortgages, of and off to from we funding yields continue do of to the decrease real we than that, down portion base mortgage the want that and little to little opportunity then our anticipate we'll aggressiveness on rather and just But we a estate kept but If to bankers self note, this opportunities. our growth loans, degree because don't fee do increased bringing predominantly mortgage kind a our a sell dropping is it that a is bit. great lose quarter that, That backed and as normalize, we there. a income they portfolio this and securities, happen. own time the buying will commercial offset so And to, was out their we volume that want we some probably growing Now don't to get either. and teams' the bit you'll by allowed come going

we've down wiggle for yes, pipelines a do the business room heard are, in we and there a bit. got, you little we So mortgage backing where have

Mark Olson

increase budgeted and also so budgeted. value some mortgage the at it in for there mortgage look When but continue doing for growth that, We the program see you incremental as with and see we'll time to we an officers year we'll every we're well. there, loan

other and focus well. we've and getting area those builder that residential is, vertical term to strong. And our finance through a really more that in loans we're is here development business doing The more in as lending continues mortgage long Utah as of is thing construction areas that got team

John Rodis

clear? first be revenues think you a so bit that just little quarter can all be the the combination mortgage from of actually though, Okay, up to

Len Williams

we do. Yes,

John Rodis

you from of sort of could idea, see And what the any online, mentioned just management revenues, then of magnitude Okay. that? the product you sort got treasury you've that coming

Len Williams

function on I relatively a growth steam continues think us, with ago, to that's the I'll going We guess I goes couple stable it say. of to as mode. and years management treasury brought gather it products, be mediocre

good can were to and bank manage least So We actually investments, where we to authorized and back half we value, online. comfortable And they've bring first app the cash telephone vendor can business new their or all and with plans for wires, where automated year product and to a manage, at all been clients this working into a And our ACH on all their the were were the all we wire go approvals it easy held the client. of remotely to where work, would personnel. point provide got that on ACH until we via and release. done the it it had was through

a had And our that So best due and nice we product should the best, clients, reviews. period seeing half believe to we're more our have we've would a a deposit doing management good jump. team than the we of retention is pretty treasury a anticipated that already And time that job. dozen good clients we're testing the of some of we thinking some for getting we're also

to growth on time, it base. rate, make should guesstimate So impact fee but going I'm really an over it not the income should, our

John Rodis

Okay, good. guys. Thank you, sounds

Len Williams

you. Thank

Mark Olson

John. Thanks,

Operator

no return There for will are questions call closing further this to I Mr. at now Williams time. remarks. the

Len Williams

and appreciate Very our look Chris. joining wishing And again, to for to as you. good. health, Thank the thank and all Thank you the safety we push XXXX, forward conversation quarter. you you, and us. next We forward we interest all

Operator

concludes participation. This call. Thank today's your for conference you

may You disconnect. now

Altabancorp (ALTA) 1 May 212021 Q1 Earnings call transcript