SACH - Earnings call transcript Q3 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Sachem Capital Third Quarter 2019 conference call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. [Operator instructions].

At this time, it is my pleasure to turn the floor over to your host, David Waldman, Investor Relations. Sir, the floor is yours.

David Waldman

you call. Sachem thank Quarter Corp’s and conference XXXX morning, for Capital joining Third Good

call us of of condition the operating ended Officer, November On September with the that results and Co-Chief Villano XXth, and and Chief date. Executive for CPA, XX, the Financial nine-months announced XXXX as Officer company Sachem three- Yesterday, today Capital. its is period John financial its

on the company’s www.sachemcapitalcorp.com. The release is posted press website,

the the with Securities quarterly can the report as In Commission www.sec.gov. on November and well addition, at the filed on XX-Q Exchange company also its Form be company’s as U.S. XXth which website accessed SEC’s on website

have additional at you would XXX-XXX-XXXX. questions the or Crescendo call like information Communications If any after company, any the about please contact

reviews this for XXXX results contain Villano call Mr. XXXX, the condition of operating that company’s the forward-looking and would September the everyone conference quarter we remind as XX, financial company’s may statements. to third like Before

than ‘design,” such “might,” and terms “estimate,” “seek,” the “anticipate,” “plan,” “likely,” facts expressions are “intend,” and results similar terms of forward-looking of of of “continue,” other “believe,” operations future financial strategy, position, All “should,” historical identify words and The expectations our negative this and plans for statements. “project,” statements. other “could,” and “may,” “expect,” “will,” words and contained to intended conference including are future regarding operations statements statements our call, statements forward-looking in

Exchange company’s for March Form as as filed filed of several Commission the well XX, forward-looking short-term described third assumptions, subject based business and company’s are on events the condition, with may and in are and financial and quarter the statements to U.S. XX, November XXXX. affect as Form and Securities future believes strategy, needs. and and of financial operations forward-looking uncertainties, XXXX These it about current long-term XX-Q the XXXX operations, These filed objectives XX-K results largely that statements on company’s the risks, expectations trends projections its on

discussed those and Because results in anticipated conference of uncertainties, from these may call risks, could circumstances occur, actual and assumptions, forward-looking not statements. differ adversely materially or implied events in forward-looking the this and the and

as should events. forward-looking future statements rely upon of predictions You not

Although the statements forward-looking results, guarantee are in of the they or expectations reflected activity, believes company the future reasonable, performance achievements. level cannot

accuracy In All update company are call. company of in to their expressly cautionary addition, forward-looking other neither in company the entirety of any The well assumes and statements forward-looking these any the others for forward person qualified the as of to responsibility this statements. completeness any nor by statements. disclaims made conference these attributable looking these duty any as statements

these all evaluate should the made and uncertainties. the context risks by You company in forward-looking statements of

With John. go that, I’ll now call Please Villano. over ahead, John turn to the

John Villano

two to everyone I and past company. is The David, to Thank joining thanks have you, us pleased and am restructuring been period of sheet for our quarters a recapitalization transformative balance planned. as working the today. our for report

the results we have the to raised. was as X.X% of to and sheet, $X.X of capital strategy to our income for We year. compared third have balance of period last the per validate share $X.X for the second Revenue quarter third these believe share we restructure XXXX quarter increased increased the compared $X.XX quarter the same third XXXX. quarter million, to XXXX per to improved started for $X.XX the for deploy million to XX.X% earnings net Sequentially, our

note sheet, on cash result with our Importantly, have we of $XX of finished of $XX closed offering. our million balance million now approximately a quarter capital available and the as recent

flexibility much our balance sheet a We to are on and well execute strategy. stronger with capitalized,

lending lending criteria. aggressive we selective continue From market, to in with review chase loan values, less we’re rates, highly going we low said, to pricing, the a competition as That high stringent more be opportunities. not as seeing macro perspective, these and we to are loans generally

capital, more we’re with engine. muscle putting Now more into our marketing

The you outside to due first same restrictions. looking our year the we’re loan and at At attractive focus value opportunities prospects. somewhat we half to know, good time, was capital constrained, traditional the where as of geographic borrowers see

Overall, the and strength terms products demand for giving our well and revenue, services confidence as strong, remains tremendous of of growth as portfolio. our in us profitability,

will top built ahead. business growth cash model in to line and the continue have profitability a scalable drive highly increased which We flow drive years to

why well during take to activities believe like to on so year we moment and we are a a the positioned. provide our restructuring I’d quick recap

issues fixed term completed of in we X.XXX% aggregate amount the million one $XX.X notes, at of in aggregate one at five-year separate First, million amount two rate of the X.XXX%. and unsecured, principal $XX principal unsubordinated

our credit million revolving proceeds also We us gross sheet. provided balance loans. us capital secured $XX additional rate raised The equity new a with of $XX the our our sale of strengthening facility replace securities war in fund bond from million offerings variable allowed coupled significantly chest and to to equity

reduced charges facility, facility. servicing credit and we costs related banking this our have the of replacing significant the personnel By to

eliminated also variable with associated rate the risk insurance. We

compelling More to greater importantly, loan we relieved us covenants we ourselves onerous flexibility value to capital of have lend loan where providing prospects.

limited compared credit prospects. loan the is capital to to to where highly overpriced market asset fix-and-flip reduced opportunities. credit compelling the now facility, and arguably with our we have and in residential are to flexibility we class, turnover we value investing other This market. have a lend loan We is single the replacing the not fluid By believe exposure also high most

negative effects some saw not as process did to the in short-term well. The restructuring operations growth. and loan We certainly extent quarter of second third of for results the quarter our help in this restructuring the

stride. better capital will positioned We are our now to deploying and soon regain start

begun I as this deploy future. earlier, capital. have mentioned have factors results and balance stronger much positive sheet the we support However, for These a to

number This impacted year-end earnings our our the capital the share. Finally, per common raised, shares X.X since by equity increased of as adversely a XXXX. outstanding result million of

on clearly we’re However, income. net back improving with track

This quarter $X.XX compare XXXX of second most earnings share XXXX from have you will positive of versus offering per non-dilutive our sequentially deployment a per our evident earnings is share. share. third effect capital The earnings the very recent of when per quarter on note $X.XX

borrower to of to as With believe key to factors diligence; we background, all second, portfolio diligent finally, are: monitoring loans; our and that and due continue the extensive approach and, underwriting our disciplined a success flexible loan constant contact. first, structuring

the our XXXX, XX, ended XX.X%. This operating $X.X September months approximately revenue approximately to quarter $X.X million XXXX. third was results months XXXX approximately three increase for the was to three the total Turning XX, for ended compared September for of million

to in Interest higher Origination of by $XXX,XXX, income $XX,XXX the real offset fees approximately the approximately approximately of increases were income approximately $XXX,XXX by These XXXX and other sale by and period. was $XXX,XXX. income. in approximately estate on by were late higher reductions $XXX,XXX was gains fee compared higher

and expenses approximately amortization financing in portfolio. The the in Total months mortgage XXXX. approximately million months XX.X%. increase for $X.X increase ended is three million ended compared in reflecting and were of $X.X $XX,XXX, increase three interest operating and primarily loan our September attributable operating cost the costs of deferred expenses XX, increases to cost XXXX for the to September XX, approximately This is

additional income fees three compensation expenses general of of three million ended for increased the Net and $X was $X.XX fees per approximately approximately the and XXXX stock-based September million quarter. Net and offset administrative compensation X.X XX, September compared in $XX,XXX, or taxes $XX,XXX share per adversely $XX,XXX. approximately per share outstanding for the three to share of XX, income approximately by $X.XX decreases and shares the Professional $X.X months XX, for was September during $XXX,XXX million months by XXXX. or XXXX ended by weighted months impacted the ended

an the or ended million September increase revenue The increase the operations. ended approximately approximately was September a nine lending months of $X.X for XX, revenue million months of Total $XXX,XXX approximately result in increased XXXX nine XX, XX.X%. to is for compared $X.X XXXX,

ended of was were other million, approximately fees million, the $X.X $XXX,XXX. fees $X.X approximately approximately approximately origination were of $X.X $XX,XXX. approximately In by and origination income was income net in comparison, XXXX million, Interest of nine for months income the interest by million, a $X.X was sale reduction and September approximately XXXX. income for income were other increases part the approximately nine first approximately $XXX,XXX. real estate months in increased on XX, was offset These gain $XXX,XXX Fee

increase Total Webster primarily attributable million $XXX,XXX connection $X.X the of operating increase months and an expenses cost XX%. compared approximately termination to ended of expenses cost the the to nine approximately nine expense for and credit the with XXXX incurred in facility. The for of operating September is in September XXXX, XX, were million months ended $X.X XX,

unamortized of $XXX,XXX a being noncash expense this that a to a nonrecurring addition financing amount of approximately write-off represents charge, item. cost, In deferred

increase expenses the interest approximately as unsecured of finally, cost including on in and the amortization stock-based financing $XX,XXX. deferred and of higher well our bonds. capital portfolio and in loan compensation, increased the by increased Interest cost reflecting expense and increase as Compensation mortgage facility on $XXX,XXX, an $XXX,XXX, increased the Webster slightly our rate general administrative

shares Net XXXX an ended months net per the share. million In $X.XX $X.X impacted for share. million X.X outstanding or the XX, for income per XX, share income additional months ended income comparison, $X.XX nine was September for ended by during adversely the or weighted million XX, nine the September September nine months per XXXX was XXXX $X.X Net approximately quarter. was

our now to Turning were total $XXX million of September XXXX, XX, million of approximately as XXXX. approximately compared sheet $XX balance to December XX, assets as

Interest receivable $X.X from December $XX compared portfolio compared loan million million was to to Our approximately XX, XXXX. consistent fees December approximately borrowers and as million of when remain XX, $XX XXXX. at

owned increased as as are Sequentially, $X.X estate in XX, was owned, estate XXXX. million of the $X.X million to real $X.X from real approximately estate as classified $XXX,XXX December is Of XX, for million under of for Real estate million XXXX. real properties properties held are June held $X.X million of owned move by September for being sale. several hard estate rental ten $X.X on sale XXXX year-end. held marketed, All working to as we XX, these and contract real actively and

payable to $XX compared $XXX,XXX on principal approximately approximately XXXX. as million million reflect include liabilities mortgage XXXX September of total XX, which financing a corporate notes $XX.X million $X.X well our of net approximately of XX, aggregate of headquarters. as amount at were $XX.X deferred of million liabilities cost December Liabilities as $XX.X Total million

July. a was net as million approximately in approximately Shareholders’ retained aggregate earnings of as $XX.X reflects and proceeds and facility, stock used to increase million in capital an which in approximately down increase from by million The increased paid-in from common compared $XX.X equity $XXX,XXX of approximately pay in the $XX.X previously increase the an common from offering, equity noted to of Webster on Paid-in XXXX. million were December $XX.X public the after-market selling XX, shares our million of balance capital. $XX.X offering sale $XX.X million

amount In was terms well XX.X% in cash in October the first total dividend million. attractive months payout investors the of only increased paid operations first dividend of our The of performance, also million compared Also, cash of to risk XXXX by adjusted to the dividend beyond our as outlook commitment $X.X not financial per for the approximately provided to returns. payment flow, confidence in share. a $X.XX as we reflects our but months providing net approximately This and XXXX XXXX. nine XXXX, of of $X.XX by nine

net $X.X with income We per wrap to increasing revenue compared of and third believe To for third am business to XXXX, quarter up, quarter reflects operating on strategy. XX.X% XXXX. positively our and of pleased $X.XX $X.XX our for increased for results earnings share this second the the quarter Sequentially, $X.X to to increasing million. X.X% our million the I

by approximately million considerable note available from the this we More capital into recent of offering. have We to importantly, taking portion deploy $XX after our account hope capital of proceeds a year-end.

growth of heading the we profitability, quarter well-positioned and are and believe fourth In XXXX. into we revenue terms into

given services our lending our and remains believe and platform due diligence. loan for solid is strong. demand strict underwriting extensive sustainable our We products The criteria and

our and remain a the we result, business committed ever to for encouraged goal risk-adjusted more attractive fully returns. are of outlook providing investors by than As our

thank like to would for questions. today. call joining open point, call we would I like At you all the to this the to

Operator

now is Instructions]. [Operator floor The questions. you. for Thank open

Our comes ahead, Ben Zucker Aegis Go from from first Capital. Ben. question

Ben Zucker

what you question. a you heard bounce expansion into for Thanks. might bit John. us include but new current areas those is taking little your Thanks what may possible geographies. I my strategy I morning, here, around mention that some Could for into breaking tell markets? Good and

John Villano

the I’m going your list to Expansion of Ben. here. the on is backtrack question, at top

our our boundaries. from grow commitment a board have beyond We to

other an other even really in intent of because opportunities we’re than letter Massachusetts. locations We at really stages. this point, Connecticut, opportunity and to are At can’t the not exploring New York point I

As here, many behind us open they say, capital, can board we our move in the and and world is with significant directions.

this, But I be slow. It will expansion steady. be will say will

under We will control. be

as are fund in the Sachems take to Sachem We to That’s try to to trying aggressively, And cultivate we’re at. and help to multiplier truth, going where and opposed areas. make to small a a great of test markets kind we’re company in it. strategy going we’re try on other to put

Ben Zucker

people helpful. of we your popping sounds what’s be kind of It kind surprised teeing idea, investors target That’s so if of been shouldn’t see market. like and you’re the up up historical something that outside

John Villano

crazy play. money. with can find we That’s like to buy profits. a can the culture Ben, and it’s haphazard, not in right have key We in want We that places, truth, We buy us. stuff. go culture other fits to that’s how us. for We hard

have to space in should our to see lot work, there’s very move a way is we little more aggressive, slower conservative considering of is Street we’re into area our a and than the space, we’re Wall We exit while doesn’t our And a move the here. little that. aggressive so things an

lot a us of to our We there. put faith shareholders in follow

We’re going But capital that and to and us, the to take going that board seriously. given of respective to they’ve take it’s going time. we’re very to approvals so we some be grow, have very

Ben Zucker

thoughtful guys process. about It are sounds like very you being the

other mention your bridge types the like also type already commercial up like along be like outside lending lines think some I you of looking portfolio, the maybe of the that loan Would at that of of heard product? residential. fix-and-flip something kind I of a that of makes quarter lending

John Villano

The general yes. answer is

lot seeing types of are things different of here. We a

our small a we build staple, While base, remain a a company, how was we great transaction or opportunities capital balance we it our past lender, loan, didn’t it commercial building and borrowing fix-and-flip will our fit resi that the fix-and-flip is are sometimes see that’s us. in though even constrained commercial for a

we’re now these. at so And looking

fix-and-flip projects, have why constraints. the We the of bank don’t different have these that’s things, resi deal, come collateralized like than we These they better We ability. and commercial them. kind

secondly, And are with not get anything the to other able fix-and-flip. comfortable really banks than residential

a the come they’ll But collateralized, banks in pricing. landed liquidity around, space, now, sooner think see in These we deals well the get right lot So, that opportunities. or we if space. later for of and will increase better are great the we and we

Ben Zucker

on That on sounds touched my great, pricing. and you up to That was I follow guess going be just that.

So, maybe date to guys to of you trying percent guys, to estimate specific do it perspective at obviously, are kind historical repaid process, guys you stuff a maturity basis, any your rough I’m their a maturity you schedules. a little re-underwriting extension? able view and maybe bit for actually additional fees, loan, think have from you a so drilling of get when more just down scheduled versus just extend modeling what into a some of to through up maturities borrower pick on how trying upcoming for, goes feel get a I’m some

John Villano

a great That’s question.

term to for that January, a earn does some be. paid where fix-and-flip we’d really velocity is market or And in money’s significant the I is it traction, I we’re it the a so can think profits loan that getting what our the I a in on moving that make right tell of reference in residential don’t number, good April, loan very like us flow March you money not the there what to but and in it’s quickly. off and now, we K. to recall is good

back getting have for our we’re another look So, we and capital opportunity. to quickly,

maturity the probably might that’s And months. four between saw a we XX big years difference today average ago, what and our have loan where been on

moving these is months, space, term as so improving XX now quickly. liquidity loans So loan the are under in is our fairly

as trying is our underwriting as are on but It say, the payoffs we’re means they little significant. making we’d busy loans stay payoffs, have the like bit out, street to and Our longer. money good to replace a well,

Ben Zucker

commercial And little a regard. on maybe hamster that bridge paper getting will so constantly with your at duration wheel the proverbial us on the help to space more you’re not least bit in as

John Villano

That’s right. exactly

Ben Zucker

when the little But It the that just Can gives we like right, a is on take get of a kind just gains the still understand initiated write-downs when be bit. like natural process keep quickly from that. your it, sold. a non-accrual talk process foreclosure of to had a underwriting you Obviously, long goes of because how credit of to part timeline the I monetize REOs and of and foreclosure process on about sense be to that’s love a eventually asset your the foreclosure net I control that you like that haven’t we laws and is and I’d can comfort business, get soups seeing nuts, perspective, on restrictive? and asset some can

John Villano

months, the property as but some rents gets very process same. an we end, In the the ends borrower pays during legal a period, our borrower of have to awful property, lot Connecticut, have the is the foreclosure up borrower he the process and in may is ability out, after It the the the the In taken get end, the state, process. lender fee, the protection is mechanisms perhaps he The has seller. XX a to daunting. truly delay

REO. sold some We

Q, we recently, as sold mentioned in Just our properties. two

had a million borrower property. approximately sale. stuff. the of vested REO bankruptcy The date the on files interest and He in he two contracts $X We on also runs court into have the claimed totaling

is you play and delay can’t we’ll the up. fine. courts the be game property. speed out, allow sell We’ll unfortunately, the it the end, The problem In to

of top on We’re it.

in-house have day the that portion We of tracking slow, slow. this some stuff, just is very, and very counsel spends process his very

Ben Zucker

hogged I of I’ll Thanks, time. the queue. there’s in back have a see couple more, anyone hop there. out I’ll there. you I if hear then the And John. Listen, enough I’ve but

John Villano

Okay.

Operator

[Operator instructions].

from from next AVN ahead, question Jim Altschul comes Our Advisory. Go Jim.

Jim Altschul

AVN’s It’s another in I I not finishing morning. have read a and Good late but little the Aviation dialed apologize, I up was close. meeting. because Advisory Service, XX-Q, I

from have covered the follow real did on loans? as estate, you up question want real have to things, Also, may but you So, owned I owned nonperforming whole any this of September of apart XXth, these estate.

John Villano

listed Q. loan nonperforming, is it’s that as foreclosure, a goes Once and in the

Jim Altschul

Now, the didn’t in months as sale in the you or gains that any you as sold you press you because did you have much release, on have real have of Was prior or of way gains prior in period didn’t the in this something? estate when quarter. sales didn’t nine

John Villano

we focus less a when making gain. a back, property we Jim, on get

went So, bought out let we We property. gain purchased in this a me explain. prior and was actually then property, the sold it. It it. quarter and The saw had We gain.

not So, a property that it foreclosure gain. was

the So, doesn’t when calls, phone we the return borrower, a off property send bad, it to he attorneys. when goes

time that Our the we in the property. process. the We sure drop the we insure is attorneys goal make in point at ball don’t sure make

looking though XX%, minute the it is he And take property. paying when we stops heard, is served, paying LTV the estate insurance. is real are of that get a for breakeven. point, the our idea does here time. the this we you’ve As property at care back, stops Even max taxes, taking stops He long borrower a

we’ve flip to back The cost so doing out. them evaluate is whether and a and decision will much for or we we we that goal money so fix money and we’re make is going not more is huge, And as-is if quickly, properties invest taxes return to big fees we’re and our deal. are invested. off go. to relatively then some them the What sell we we get money take it it to Legal

these properties they’re in and pretty A tough of times lot come back, shape.

up gets equity good. our so And eaten pretty

on sale. breakeven the a for looking We’re

Jim Altschul

two you properties you under contract. mentioned have And

John Villano

there’s actually think I more.

we’re then bought that in in So, actually loan guy loan, runs money It four and properties. we we another have to And own this he get huge that we He added out million trouble. a it and We of discount. is two up one We contracts, at month. the loan a from into bankruptcy we additional talked a collateral bought. just two about properties. we was bought it sale now, our have for with $X jams all our to court, the going REO, servicer. We so us where

these The it guys rules not they the are of very game fair attorneys, their lenders, and to and well. play

million So, we there’s this $XXX,XXX. made building a make, a property, it. give we small note then asset, an at a think just additional under we we was a now We And note got million, of if View. a be will $X.X a note bought discount. a it or in It upside purchase that Like we the We Bay he’s and $XXX,XXX collateral borrower sold trouble. with to $X chance. whether paid to Jim,

So, well it’s takes It for us. end time. up probably very a just to long going

Jim Altschul

that What some was what the with at properties under price out going do to have anticipate think in you’ll you with were with is regards there or you’re come even? spend that at getting least high is to contract, you I

John Villano

is get trouble XX% We lenders cost that why in to a think is at and Yes, if other comes capital, to so The of back. at are and a XX%. XX%, the loan don’t our we at even look bad. significant, though property ownership goes that recover we lot XX%, we’re that property, gravy they’re lend if XX%, at that’s of

Jim Altschul

you I’m big money. mean My a what you’ll I the for but if even. it. not the think get like of process you in It gain, contract not you nice looking sounds based prices break concern that is be lose on that’s it’d

John Villano

Please historically, in inception more since of on million that quote I this see we our you’ll Yes, don’t think K, $XXX and number. me and loans. did

is X%. of percentage loss Our about one-tenth

Jim Altschul

That’s very impressive.

John Villano

market. a good had We

managing But market. estate property. well of real the and So, was a done a market historically, moving, very was the distressed we’ve with it good so

Jim Altschul

questions. much your my detailed answers for very to Thank you

John Villano

Thank you.

Operator

[Jordan next Jordan. And Go Grode]. ahead, question comes our from

Unidentified Analyst

John. morning, my taking for question. Thanks Good

John Villano

Good morning.

Unidentified Analyst

of in REO think I you about on a can ask that reported portfolio. and we these rise they’ll percentage do the what loans are to in as the rising? value of attribute the default factors as To Q continue wanted and increases, you under both the

John Villano

liquidity going you First, tell let think doing is, we’re where market this of that the you along here XXXX, all this me to Again, a I’m really nine we good chugging house causes the higher. There’s getting in inning tell about I prices in since are think and kind what estate of probably market then we’re this. and space. of seventh XXXX, is inning has real We our company perspective, the some know been game. in

a that So trigger quick with on default the letter. said, send are being now, to we

So, we rule. strike have a three

You mistake one things, quickly. by the payments read. miss of lapses not any miss or to in or payments move very Q two three your and very those it’s And comfortable you insurance we paragraph a

results to have this again, back into we to a their a make on historical default, earns our goes money deals. is bad of company and so on generic investment, We stuff, go rate on portfolio-wide loan XX%. the XX% lot Once

some As borrower goes form that rate that soon to goes into of XX%. as default,

collect cases result our company. for answer a good it’s We many no. better it, portion is we all time? collect and The the XX% the for of Do in do negotiated a

profit more. a into situation default a turn actually for us. Nothing we center So,

We’re on the quick trigger.

going keep and We’re it game work. funding guy to thing this to not this make

at. we’re where that’s and very and cut payments, dry missing you’re payments, here. It’s missing you’re If

Unidentified Analyst

year more you say a And acting than would ago? had that been acting you quickly you’re

John Villano

sure. For

the in to running the problems that The the amount into of limited his the property contractors bigger contractors, complete developers seeing getting so the jobs it’s on trouble of is is developer The to or default, these robust. even quality GC bad, our having seeing jobs. manner. good help a are get not Connecticut. robust, timely we’re availability market’s in is a pretty There’s is One come that are to market

is happens a the chopping the that. what things interest and steps really, there’s like starts issue, zoning in, into if now town if profits, his And

it’s starts manned these off zoning and not So, if if issue, very project control property out or that’s a a things of quickly. there’s get how

a property having issue. not we’re saying I’m value

We’re performance issue. having

done, have of supposed We the to may a will problem now if because draw stop construction and loan, finish sudden was what work’s all a the didn’t you do. contractor not he a

Unidentified Analyst

quick some one question, get clarity line. the from and to wanted on sense, borrowers’ Make I due

it has statements in that flow a fluctuating been think I What lot cash lately. is exactly? the

John Villano

is current for construction on the not our fund some loans example, for where we some for if their on past That’s loan. a us if we if it term. them, goes money, taxes, draw, We XX a of owe they so the modify someone months reason modify it If loan goes.

the they collectable. may reclassification note from you really future So, the are what see a in notes is receivable of and due These receivable. to borrowers charges, are

it’s have a So, if charge. we an appraisal, do borrower to

center think and anything You I’m nice get mortgage line. what is future, talking I But there, the in be way goes saying? support profit So, into to our moving this us. accountants, we receivable little a for do and this again, may to this is the borrower in the we any

person first that the not question. You’re this has raised

Unidentified Analyst

clarification the today. for Thanks Excellent.

Operator

Ben And from our next question Ben. ahead, Aegis. Go Zucker comes from

Ben Zucker

back Thanks queue, John. the for me letting in

kind like difficult be understanding estimate Would full XXXX nearly or that the raised see $XX insight are million you weeks and repayments into able a to guys to Would can we a few quarter-end, middle feel you just you some at gross fair around any might the liquidity, deployment? offer $XX be when not of be quickly, real at Just million if impossible kind you year predict? of ago. of something very

John Villano

up are growth repayments our honestly. really Right plans, now, the screwing

putting back. street, we’re as on fast we’re the money As getting money

money, when lot sudden, of world of but $XX of demand So, our interesting for significant amount portfolio as million. is a all is have you like, not the we sees what’s growing as a raise kind rapidly that of a those we

so million. is loans $X.X and to and interesting, average demand loan $XXX,XXX, and kind a are see we’re somewhere loan $XXX,XXX, starting between Our a of size It’s $X million, $XXX,XXX these bigger of size.

done Ben, stay want if to get to what going this. could how $XX by we’re to I we’ve Not put I Thanksgiving. million to true play to work We wanted here. this to

We’re a lender. balance small

The to We exposure to the to We basic are to the money future. here can’t loan reduce interest go to they to is so loans. start the have our have interest, a diligence. going through our just save on throw bad larger on in sprinkling not hope key then and work bond

not that game. play to We’re going

good put So, We’ll out stuff. there. we it want

I happy in at that, March it could looking second be would the very think as quarter. I happen you again, be but well. might with

kind don’t just makes the flow which next coming know door deal You of cash the budgeting tough. in

Ben Zucker

balance It has the And swim upstream over put which capital, work. really loans is, ability obviously, there’s been more helps of at an time. portfolio and your loan I and look you you was to remarkably going to larger average to stable some as mention capital get

you’re might comments. thoughtful as lines of duration you that. just like mentioning, your sure being because like make those up Again, help it fix-and-flip you of outside the might commercial credit also the then have earlier along to the on about the loan moving loans of bucket and sounds outsized take your capital. you and carrying portion you get started asset the But Again, equity just

John Villano

now. is one Duration of problems our bigger

Ben Zucker

color on has would provide ask. you if totally just provide to this and information. want be you And willing origination understand what far, activity I’d quickly your subsequent then I But looked and some thought don’t real like that repayment to

John Villano

positive. Loan So, growth I we’re flat. loan I’m few think I not it, getting and see we’re as times. touched on it a for It’s loan and not would to generally, this it’s going I like out, is $X.XX back. every as to growth, positive The putting very say

So, we’re significant repayment. seeing

Ben Zucker

John. again Appreciate That is helpful. taking for all of questions, Thanks my it.

John Villano

Okay, Ben. you. Thank

Operator

floor turn to I ahead. would John to this back of Sir, appears to like be And all Villano. now the questions at go the that time.

John Villano

very all this Thank you. I’m I finished thoughtful. appreciate were questions. call. They the with

add? David, do you have anything else to

David Waldman

Thank you anyone all if any out. feel and for joining follow-up questions, to has us, free reach

Our always open. lines are

John Villano

Okay. Thank you all.

Operator

you. does today’s for Thank We participation. thank This you conclude conference. your

your and a You at may lines disconnect wonderful time day. have this

Sachem Capital (SACH) 19 Nov 192019 Q3 Earnings call transcript