Eagle Bancorp (EGBN) 24 Oct 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Eagle Bancorp, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Eric Newell, Chief Financial Officer of Eagle Bancorp, Inc. ahead. go Please

is Bancorp. This Chief Officer Financial Good Eric Eagle of morning. Newell,

Before like undue call I that presentation, you promises we the begin and performance, would these We make the caution forward-looking made about future statements. to some comments to on during forward-looking this place are not cannot any reliance of everyone remind statements.

slides, include including XX-K and could company's current any Form those morning, presentation today. X-K only this year the that the -- reports which projected made slides fiscal the as risk of XXXX for presentation cause Our actual Form differ earnings factors results in identify earnings materially speak statements on the forward-looking to from

contains a our developments to information future section include Eagle information. filed to with The not Investor required GAAP Bancorp comparable unless the earnings non-GAAP does SEC, Relations undertake of morning's in information. release, of is and website most as financial events posted or result directly commentary or update law. reconciliations this statements of by which This forward-looking will the the new information any

website. Our our website SEC's are online company at periodic on the available reports or from the

our With Officer, our President CEO, me retiring Williams, Geoghegan. and today Jan Chief incoming Susan is Officer, Kevin Riel; Credit Credit our and Chief

now I turn it like to would over to Susan.

quarters needed provide objectives. support books. We've the positioned the team diversifying foundational net our will better the that and and deposit goals. our In quality, steps position growing to last the both loan proactively come, Eric. over you, asset taken our is achieve and senior managing leadership income Throughout improving morning, Good year our to we've to Thank our bank, the our profitability on strategic XXXX, everyone. us focus to

as Officer about EagleBank. am our experience to we and am Evelyn's With leaders Lending the the over our Lee goals. the brings of line of I I excited XX have strategic of place to succeed Chief for in confident commercial business, years joining us necessary addition Evelyn latest in leadership she

will Subsequently, deposits, September. and I to this of repaid growth $XX the at approach. start work our fundamental debt We we the in replacing year our future subordinated Our future be million company. the month. in capital am senior raise million in matured in our confidence and in maturing of and unsecured strategy demonstrates confident loans $XX.X raised and debt, our the that the investors have The vision of earlier

same the executive growth million and ratio. future The At issuance. issuance the our investing announced support CRE better received a goal dividend recalibrated strategy, collectively reducing dividend total of participation Board, our full time, the X% about also will company's management contribute our ratio to from the we of concentration $X.X or This to payout plans. positioning

for about reduced future. capital. steps Eagle, this uncertainties We've year Our better positions sheet have and address to taken actions the us which our balance

We reserves for CRE substantially disclosures. credit enhanced our our have and built losses income-producing

The of leadership senior change, confident the a and execution the am undergone we'll provide strategy. notable team needed I our leadership has for

our digital designed to of hold, tool strategies channel which use reduce results to strategy our take the deposit time. as We've during funding the a digital showed be Our relationship-based quarter. takes momentum flexible wholesale

loan our book. statements, more another taken year financial about our team step give earlier, this is disclosure enhance mentioned I our and As of has to CRE users details income-producing our

announced Jan working retirement. have closely our talk disclosure, Kevin enhanced been turning welcome want approaches over Kevin joined to as ensure and early Eagle Jan to team. to the to more a Before very in September. about I it Jan together to seamless Geoghegan Kevin transition her

with for seen strong next the life excited and enters I more her quality years XX on of and she over have goals her with as fundamental her time contributions we've the to personal EagleBank, our Jan's achieving family been last over chapter. her to am the spend success asset

that, over Jan. to things turn I will With

everyone. good and Susan, you, Thank morning,

like I'd income-producing to office commercial enhanced to disclosure our We've our presentation again disclosure portfolio. your estate. added attention on to First, substantially this earnings real direct specific our deck. year, we Earlier our

portfolio, XX,XXX disclosure buildings which for and our Xx XXX,XXX For published square we've a compared on Federal those study our added indicating rates The as loss portfolio. greater office XX of stratification feet at properties more office square X the feet. slides recently to includes of office nearly XX, in Reserve

more our District which of worth Business exposure. was Washington, about quarter of It's office District was source added office D.C. one mark-to-market details and and first Central charge-off. loans, only we also Central the We mentioning X Business have the

other pass-rated payment. properties current are X to and The as

In pages due valuation. being details appraisal case, On receipt on to associated and but you a payments. on default larger an not through portfolio each see in will loans XX loans. our XX, added and mention appraisal loans, nonaccrual, the in on XX. X nonaccrual the you XX because are of pages and on on being our multifamily nonaccrual which can nonaccrual despite loans and our of to XX offices see of payment On special detail top loans, as all each resulted new charge-off placed substandard We've the population, of current

XX of our portfolio to provide quality history on credit other culture, characteristics. asset slides XX, Finally, and detail further

one are portfolio, been already of is the and pass-rated activity loans, from source have Central yet in has summarize, and this office office Valuation through our risks driven the of To Business largest down. performance been have has we office portfolio. written that the payment year, District, which the where while seen in over X uncertainty issues last simply some charge-off portfolio X our of we've cycle, risk which our not only

the Our total Central million Business $XXX.X in is exposure District.

degree valuation Our seen Northern and not date. has exposure Virginia Maryland office the challenges to same of

our any shift material seeing portfolio. not the in of are We performance multifamily

due to income, continues shortfall this continue in net to higher service a primarily debt rent to interest of believe for will in as our in a rates. increases properties result exist has We Growth operating housing as in footprint. increases compensated date trend multifamily

Year-to-date charge-offs moderated are charge-offs in this as XXXX XX to million points this Net or charge-offs annualized. million $XX earlier quarter net when quarter. totaling with compared basis $X.X

Substandard on increased in loans $XXX.X mention $XX quarter, third at quarter, We and the performing. Page note disclosure of ending declined criticized our the million XX of million. million during that ending at during earnings loans classified million. $XX are $XXX XX% Special our presentation,

loans, second our were call, properties. criticized In of quarter X which living the in indicated earnings drove projects I increase assisted X

updated living September One based quarter with assisted nonaccrual was million $X.X to of a of an carrying moved the charge-off value of XX those after a $XX.X during million properties at appraisals. on

aside totaling $X.X credit reserve a million. have specific for also set this We

million are into balance one loans one end million. September loans other in placed at Corner, a of balance unrelated impairment. Dulles X neither Virginia were The status the evidences of XX Metro of the a Both nonaccrual in current $XX.X $XX.X land principal and Tysons appraisals line principal supported Northern with at and loans, by Virginia with and

at the Nonperforming increase points increase loans XX, prior I were June total X quarter. September million at points $XX.X an of from inclusive assets, X basis were which loans to the XX, million an basis was just of from $XXX.X NPAs XXX $XXX.X million, mentioned.

$XX.X $XX June while million Of we Loans loan million XX past end current to the at remaining September increase XX. at the XX- from $X.X the in of subsequent relationships of which have million past in on included extension. a were $X XX-day as paydown quarter, dues, $X.X million the days become due totaling early XX, million a X received October condition to increasing of to XX X

Eric?

income the net per reported We for impairment, totaling goodwill. value million compares the Jan. recording quarter of $XXX.X you, million to after prior loss GAAP $XX.X or $XX.X of $X.XX a Thank the This share. quarter million diluted

$X.XX share. net $XX.X million operating quarter or impairment, goodwill per last the Excluding totaled income

increase operating This quarter variance positive by increase offset in for noninterest income change million a and provision commitments, expense. and fee credit $X.X the a earnings improved Third net unfunded income. interest for an expense to higher related was in in to provision attributed modest

stable from quarter. The quarter improved the materially second from and is relatively operating first the trend

increased XX $X.XX $XX.XX Tier per strong. basis X XX.XX%. per growth capital leverage common annualized the prior XX% quarter. to Common points Our representing points capital share, basis increased position from to equity remains increased capital an to points Tangible XX Book share Tier rate increased basis equity to X XX.X%. XX XX.X%. value

contingent September XX, On at liquidity year Average strong. XXXX. and also remained have balance sheet from ago a deposits grown million $XXX

Our one-way and $XXX end broker deposits representing have the is of million non declined nonrelationship growth XXXX comparable deposits from period of wholesale deposits. result the

Federal quarter available securities end, our Insured the discount from Loan Reserve $X.X XX% liquidity and unencumbered deposits window, deposits. Bank, cash billion. totaled Federal Home totaled over total At of

reserves I'll pause for credit losses. and talk Kevin about let here

Thanks, Eric.

to $X Jan million As net $X.X million. from quarter mentioned, increased second charge-offs the

be for account future to market build, likely it assess driven reserves reserve adequacy the any, individually we if from qualitative continue our by is loans. of evaluated to reserves would specific more that uncertainty, While

Moody's estimates shift economic our qualitative also may a there the economic reserves. is the expectations increase significant quantitative event in in we in from our inputs that regression not change in A to consider did reserves model

add is to reserves loans policy We reappraise continue specific our to office nonaccrual to annually. as

losses quarter. normalize. office we allowance in credit ease, to risk increased portfolio coverage X valuation prior to million While to valuation XX, for from representing increasing remains, basis uncertainty for held the $XXX loans September the The the at points X.X%, believe will investment rates as interest

and September from The December at X.XX% X.XX% XX. to ACL XX, June at coverage to increased performing at office XX loans X.XX% increasing

Eric?

Thank lesser loan increase driver interest swap XX noninterest you, and $XX.X an of Kevin. prior Operating to in revenue degree, income period. increased increase from million the -- increased a was higher of The million net $XX.X net pre-provision and income. to fees from the

increasing Net certificate the X million Driving quarter, second interest in in second was quarter. in points $XX.X quarter. of the from provision deposit declining decline quarter million before X.XX% third the $XX.X NIM income growth our the channel. digital basis was in second the totaled from

reduced nonmaturity we paid rates on August, due rates in summer. mentioning, in interest Worth declining the to deposits

basis the basis additional throughout the ease the XX rates by Following policy an FOMC to by deposits rate points September. again by September, in we nonmaturity XX reduced points for decision

$XXX overnight tied loans We tied of have billion million to $X loans SOFR XX-day of to prime. or and

to Operating million, million impairment $XX.X totaled $XX.X exclude is goodwill to second expenses. previous attributed from the quarter, in in FDIC the higher The noninterest increasing million expense quarter. increase $X.X adjusted

released quarterly added deck our earnings, preliminary a our investor on with view XXXX. In we along

and loan year X%, period-end next on shows the of loans X% between average thoughts growth. Our though is slide growth

asset cash loans. reinvest the is spread. mix, continue this from There expected Earning which portfolio investment take investment the an of flat benefit flows enhance repositioning is to our from and growth as portfolio will and in we loan

to compares critical also originations loan funded funded deposits well in million a quarter. and average X.XX%. as spread. weighted for reducing the at be $XXX should had Mix of to X% million weighted quarter, second use for the -- growing rate average contribute rate a of of wholesale This $XX.X Of will originations funding, of funding loan noninterest-bearing in of the we

short turn I'll it Susan to a wrap over for up.

to EagleBank's is our future to region the future continue the metro bank planning both deep-rooted develop will combined Eric. best our scale that on continue solutions Team Thanks, allow clients. our resonate with expertise within that to in a franchise and be relationship with the D.C. managers Washington, us community relationships and area. of tailored the current

As D.C. to benefit bank, supporting EagleBank market. evolving committed decision-making, local to and growth the We are of significantly positions long-term apart dynamics. market a this believe trust the economic sets building us the customer community-focused we from and

last over how expertise interest valuation with clients are of optimistic may in the to challenges years X.X over we rates support We interest risk falling have market, rates. cautiously years. Nevertheless, the navigating the improve we've XX that of higher regarding experience this relatively discussed

extend to every thank would day Eagle I heartfelt you to a a work our employees closing, hard In success. whose makes like

With that, things for now we will questions. up open

Sandler. first [Operator question Instructions] with Piper Justin Our Crowley comes from

could I I you here, the see the pickup living before. I in further, nonperformers just just the discussed all the migration start area. the there disclosure to a appreciate in we've detail assisted of specifically little want deck. credit I know and on and added if some

with these what with defaults seeing more just of area that a you're guess, credits? I driver being forward looking in So payment

can are you run-through with current the give Justin, nonperformers. think I a Yes, we on where I quick

We CBD X quarters. that property have discussed That's in the last million. we about the office had X $XX

facility living that's Maryland, assisted million. We County, an $XX.X Charles have in

and down $XX.X at loans this Arlington really. had facility million, Montgomery the in Virginia then a has an terms have some office current kind new living performing achieving there sponsor, quarter, cram June of at We very well-located Northern will facility. Maryland, at looking property, office in County, at and newer the are $XX.X in negotiation stabilization believe assisted added XX. payment lesser It this -- been I in of I a with issues at is think, some million,

sponsors appraisal but on great in we've land an to ground a of the for of the very be that, But actually a the piece on owed salable for amount. based some additional excess be happen. looking in number our property. reduction would property are that. down lease That's amount added a property that again, Corner remains the carrying should in current reserve say unlikely the already marked in I seen, That readily significantly Fairfax to is Tysons and at

then holder the the the end with It is owner, of are the There million metro. And Dulles a resulting amongst is in at is ground fee final litigation. lease adjoining the for lease. the zone land owner land ground one that multifamily. various that's that $XX.X and the at land It's issues

take when against to will better there's Right an a property. the that it have idea. long for If how know we'll resolved. don't injunction and be now, I

have to that's protected evolving answer question? Does we status. situation. into by but moved your that it value, So is It nonperforming an loan

No, it And to was guess Yes. nice I that's broadly, more some there. helpful just stability see on detail. office, then

'XX. 'XX ahead get to year maturities we to as for lighter we Just look before

with you're Just you're in what what with of or buckets seeing those terms rates? just occupancy in doing early curious, and any work seeing then you're commentary appraisals

of the appraisal is still lot in a volatility There area.

distressed it's think to I what properties. find using or newer they of for because by all hindsight properties are the calculating year. you're be be the what for And what sold in foreclosures. driven last you're looking values lowest those I at on possible valuation believe going is Most to they're could and sales

some drop true When limited activity be large that We're are there. market, out volatility that but the properties. of ones number in on the of buyers a starting for anyone while to take limited that probably those properties, green very biggest I should seeing a are look in while and this foreclosed financing who it there's at And is what's market, in central country shake been valuation. appraisals the business on our to loans the will think across is I the see for those a the think buyer shoots in in very district I improving

roll months maturities. We that in seeing next the properties of terms are going that stable have the in very we XX are lease occupancy out or

in terms been occupancy minimal sciences some a the really of office seeing I out levels, projects, which terms whole. of really we're only issues beat haven't as seen we skipped think haven't We have of know degradation the in activity actually in in market there. lately, but suburban office portfolio terms having we life a have terms I of

XXX side reasons sciences I proximity the NIH think is of has. Corridor to the Detrick Fort the one life that the on and

been weakness really we've hasn't there So that experienced.

a X finished one. be the leased will firm, that is That's not to payments York-based blip The Central New and Trophy one they expecting think have long-term $XX we million the property. commence. law I in a that build-out loans a is on in our almost and on that loan. it, rent Business moving should about shortly, It's largest loan District, international

a of in that So lot property. confidence

see done Trophy tight. to on decent valuations couple change that No, drops on is start I'm as The see a that we to cautious, extremely properties rate, No interest market with optimistic start happen. pricing market should in but some of we either. I'm more in these trades

a about question. the reserve level. helpful. just talked That's I before, Okay. it's reserve, XXX it's more on maybe a of then And think modeling XXX, maybe been But

on go-forward you allowance provisioning the at that wasn't expectations out so I just it or what and next being And preliminary But gets of kind for outlook's that either assumptions any slide end year? charge-off XXXX. thoughts level now. of the in high know to looking

we -- our kind in terms talked in thinking of of additional We Yes. the build. any terms think I allowance, about of there

XX for XXXX is In terms range the talk and about of points credit, basis I we're on XX average to between willing think loans. that

need we're that's it now the us what comments and context think year next for -- Jan the looking available need you -- at we're you right that a mentioned seeing charge-offs. to on range, I to for information to But that's that. take for wide all to just that's However, in but way

I I it leave that. Okay. Awesome. appreciate will there.

from with question Catherine Our next comes Mealor KBW.

get the mentioned all that Thank in then about very but default, you maturity cool disclosures. you've biggest that the NPL those deck, appraisal. I before to XX some your helpful. that think a It's see. not loans you additional at thing that's If is for XX, your to need which and Slide slide thing it's your I top One really to look and an of properties talked payment shows necessarily bringing updated is

that both kind kind be that then are in largest is about the migration loans December think but look million looks it's and I we if criticized. quarter, that of might so thoughts in see of loan quarter? we you're preliminary the center data that -- we only next really December And Any those kind -- One slide, that preliminary loan, and about I on of matures X any at credits will the matures in $XX that's happen of your about it quarter. some fourth X the kind as could like that worried office next know

Okay. we X up coming ton next those Thanks, Catherine. the Yes, so. or have not in do months maturities a of

of you're is -- One them correct.

expecting occupancy It's there One County coverage not service because debt located The an on in in the is issue good. is to of office properties. good. be the Montgomery Bethesda, appraisal larger that

million about up if $X there for there. We've a so for $X.X reserve reserve we've million year, of about rollover flow in the of million. also cash then the is last payment years, tenants, build-out $X And built for -- swept in that all new X.X

we're So good to A Bethesda not were we a doing properties, X. hugely that well tenant now right these for market lose they for even think in Class or is if shape pretty worried.

Tysons the Amazon because I am about. rent negotiations forth to data terms of with to centers. little do their and to They data in you're now philosophy frequently. that tough to shift predict buy Amazon, what are ongoing back that concerned is one while center talking a about seem going it's right from

So I go going to don't which one that is know direction in.

what quarter? a talk Can costs very Great, to And costs over so deposit so your mean, I the then this deposit maybe have about been turning far helpful. just seen you bit little on margin. you've high.

would beta I high you so would down. And a think pretty that have the on way

And a just you've with seen what curious what of expect points far the from beta next in couple you so so cuts over the XX quarters? first of basis would

Yes.

September. I commentary, third in should deposits XX basis late As or and XX basis points Haven't seen quarter, prepared and in nonmaturity collectively XX any points another reduced we in mentioned customer say, in basis the my preliminary cumulatively, I points August behavior customer statement account. to or anticipate rates at realizes their that been some concerns that history, oftentimes are falling issue or cycles, the on don't my would we there. any important. concerning. be That's that's which me one But There's least

which then of could next it's help will pretty I before. tools use wholesale, forward, it's wholesale for money. reduce high terms is but going customer which In than And of in that think continue beta going our going into while We're have, that be it say to of would has be higher comment not about channel year use to beta digital your terms us less of we now the that deposits. one wholesale, I to the XXX%, the

seen months. in to though isn't it that even customer there our demonstrate, of level digital a while complacency already, cost channel then for we've accretive immediately channel XX of is little doing a only And that does been of we've that the -- funds,

we're So first here the I more fourth complacency testing a quarter going to on in lot that that think the customer. learn and quarter of

is that a in be the an other -- view that bit I've give Eagle, on next with that think informed but beta experience if can institutions in had XX%. So to channel this more of my little me experience I probably could -- this for the close sometimes I that question in digital XX% quarter, betas you you to XX% channel ask

to that on of And then capital then of on if commercial earlier the quarter. ton capital announced think And helpful. got an I this stand-alone, dividend CRE a commentary look as you've decision? us just some we about kind last what mean, at your we drove Super ratio, Okay. is capital maybe to Can estate give just capital, elevated but just real reduction that you my you question obviously ratio.

curious of by of the a is reduce of that But there for kind impact of And -- is that the over end quarters, next next that are that. year? might there's your target know or to if to to by just level so that you couple maybe I hope and plan how be just growth kind what 'XX

focused thinking of we strategically, CRE, XX and terms strategic on our we months In is -- plan XX out. to think

customer. Our concentration FDIC to CRE have we're We're serving closer ratio but CRE expertise we're We're CRE on serving market. we our turning CRE our not guideline, Eagle get a not mean known CRE. our that goal -- clients. that to is for our back customer in in is does not the

consider of the like the that subordinated said, dividend, debt. -- debt the being given to recalibration a the the natural senior which refinancing time dividend, which seemed the of That and

that, at dividend would do Eric numerator laughing the sorry, right math, helps -- we're not that great no, CFO of you us the think -- think I but I'm not all on here. the grow saying

to it so of greater on get close But guideline. to CRE that million at by the the capital ratio that grows concentration much $XX capital holding additional does

another there's here. I think nuance

who's our financing -- that is capital million So primed else. CRE, the then them Ryan permanent of $XXX find Jan Lending there's on side, numerator kind go Chief talking could about X the is in on And of denominator. to Officer, Riel, and somewhere the with believe

financing CRE a perm of not lender. We're We're institution. more bridge a

get pension Ginnie compete financing Lifeco doing Mae. going or to that from be fund or not would get or we're deals -- so in against to a the going not And a you

rates to before kind we get think about to that if million $XXX ratio. we the helpful could folks to are could using And wait there estimate be So in. quite with these CRE that that fall, of locking extensions be that, continue lower reducing concentration rates

the have C&I. earning assets if be up the that happening of one have goals we'll would So of prop benefit we that to

has so her about year team throughout C&I to the helpful is experience this this in leadership strategy. market of spoken bringing our initiative Susan And Evelyn grow in XX years and that and in on certainly

and growth organic some in opportunities yes, management loan lot will we could that a earning take not our steps And C&I be time. C&I question. will -- also but decline assets our take think in and assets, And intermediate coming your to we're see answered other we be through in committee, I flat certainly activity the to in I've bucket. I -- the have a earning we hope show keep there of have

you Make helpful. It's sense. Yes, did. all very

comes Marinac Christopher Janney Our Scott. Montgomery next with question from

And was guide expense that and because for the do you we were thinking be more was hires and costs in go run would you guide scenario about I scenario? the where if that have already fair would successful above on you new rate? expense the FDIC into if just XXXX, that dug Eric, a primarily if just a

outlook we showing is to then XXXX. believe increase -- XXXX material in I due so build given -- view see from that out. any FDIC expenses, increases of the is where of not our And We in team expenses, away expenses will from flat

teams we enough I and team, expense -- and we us to take team not capacity alter on members approach. going that's out on relationship where build materially is for and to new think our our managers when them new want there

ramped as I the, but guess, And of in Evelyn business, guide? Got relief team C&I year, get with also for some not what's does next funding that and joining XXXX related you give and the outlook, just And costs on then she it. her up deposits? kind

with current to providing as we But be don't all know, might certainly and that that our our using. deepen C&I cycle. to is Evelyn. there's deposit customers, treasury that think I speak how C&I management a opportunities them our do not customers, for useful they generation relationship want I products sales with long growth, current them we they're

is and could that a Evelyn a team being those existing community, as efforts the with think that, drive deposit and out certainly in accretive will herself on familiarize and be to focused sales efforts think I starts finds the sales shorter gets talent eventually So outreach and that team cycle, team help to the and growth. I

a a that lot think I And so do to material a words to C&I But of takes we're or to the and don't us in will and say, increase because in time. have some quarter I growth that see our all deposit franchise next her going believe funds deposits those that, in the team to and of in to long really term, be presence an and to Evelyn we our build of consumer that of value absolutely deposits, allow it it will channels, quality definitely are team well allow and and in our improving also as our cost have digital strategy to reduce is small deposits continue the want important because will branch on. of less part Ryan that we relationship our because channels, funding accretive it strategy will that his us our business that here, build use of deposits wholesale the also the and the as

last that thing The focus. I only treasury this year, our developing would some is over spent have add time management we to

there and there. staffing the So products we've of some the increased

on ground a the help will from hit of that gathering kind fees those and Evelyn service. that deposits those So running

fourth anything in that Great. And care and just, most be I the XXXX taken the guess, focus real have of a relatively with dealt Do in the remaining quick already are and/or Or question and is is going 'XX on for of Kevin. maturities Jan those 'XX? to quarter?

focus, would is think, a pretty 'XX say for that maturities. going year light I is I 'XX. on be real correct the you're to

are number that and have working are that are We through included in matured balance XXXX already of nonperforming. for the loans

of extension going mature, no loans are event those. that nothing transpire -- but is those an cause to So would

will sit sold repaid. they or So until there they're

it's that, really number lesser than So Eric. a

XXXX. there I have think the during on split out the maturities you

question but valuation Yes, there's not on think Chris's the you -- any I XXXX there... XXXX, risk answered that in

in some, Well, think I and next number. overall, pretty there's going even year small but a volume terms into small the it's of balance year, very always of for this

Yes.

just it. in I possible the terms those the lost guess, of content Or on really of any, working maturities? 'XX function is there Got reserve assessing in appropriate? risk Is and advance it having a

to position or a would down reduction. far. but pay an Typically, maturity we've I date. before that think intervention up position that the into there action the effect in would if a taken We into buyers out with that going enhancements extension involves we we're the put in maturity, principal flow probably a and enter is cash until sweep of a early time not credit come a

you will given institutional told office number now investors for the about reserve oftentimes, and don't reason I the the to up. comes appropriate And you this prior. we Business limited add, District. Chris, XX% see Eagle maybe of actual have is can that the I've the I XX% is When talk the we with exposure believe Central

exposure Business limited a in have loans. office We District Central

more portfolio footage. the deck issuers our is the at the in Business the exposure the larger of have our XX loans additive stratification one right-hand look office District. that by to Central XX% office they reserves, that's of you bottom much square in when the And have And Slide corner to disclosures on those

square XXX,XXX don't that, I you together, prepared feet much greater. saying something property see feet Federal the so talking past comments, that Eagle X at is for Jan's credit. time, in can feet. loss talked we was I spent believe this this She's Reserve, have square know talking think rate earlier about XXX,XXX or in than And I square has it Xx that that And not I office said that's we that's about in if you a although time XX,XXX Kansas only the year. greater City, study the did

September And if qualitative reserve reserves to build. individually believe is and team, from Jan, loans information additional we it's the note we've We is of overall to more for there myself, we So XX, we Kevin, time in related lot given evaluated about Susan. have. versus a we that office. the continuing management and X.XX%, office at feel build, be the prepared lot you'll of frankly, idiosyncratic a any spent And reserve including that going our an comments time, talking spent that for have adequate entire and to whole

loss. think loan postmortem or And anywhere has of of we've true. million nothing look less, million as of or that's sort kind portfolio I in at had office portfolio, less when a you the of no losses, we any had $XX $XX the

Fed smaller a think guarantees I for out, on has smaller pointed the Typically, to much deals see loans. going what loss. has us that have the true less held So of personal the risk you're

So in we more lot leverage a have negotiating.

in Great. all really, slides, the And again, Thank thanks disclosure for feedback. and you it's the for your really helpful.

not closing I'm turn over and at any this Susan for President I'd any questions back call And showing remarks. the to further to time. like CEO, Riel

today we time your look thank time to some to for forward day. quarter. a speaking want Just great again you your And you take questions. and Have next to for to

Ladies today's presentation. does and conclude gentlemen, this

a and disconnect, have now may day. wonderful You