National Bank (NBHC) 20 Apr 232023 Q1 Earnings call transcript

Good morning, everyone, and welcome to the National Bank Holdings Corporation 2023 First Quarter Earnings Call. My name is Anna, and I will be your conference operator for today. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session following the prepared remarks.

As a reminder, this conference is being recorded for replay purposes.

capital, remind including, this statements and but company's loans, to contain call regarding non-interest like non-interest strategy, statements, income, forward-looking not deposits, expense. would you allowance, conference that will the income, I margins, interest access net limited to, Actual could from today. those results discussed materially differ

Commission. subject only risks, the and detail most update of filings with other the forward-looking statements. of and in which are These this company's speak to revise or Corporation National statements factors Securities These and the date Bank Exchange U.S. these are to as undertakes more uncertainties statements disclosed in call, obligation no recent Holdings

the measures on the Holdings non-GAAP the of addition, which these posted will provides are measures, news measures release investors. non-GAAP National Corporation the to www.nationalbankholdings.com. provided Reconciliations In financial Bank of in GAAP reference useful call Investor certain believes information section Relations for

Difficulty] Laney. pleasure It Corporation's Tim Mr. [Technical is Chairman, my CEO, National now Bank and Holdings to President

with of basis and Officer. Thank Financial margin quarter a cost X.XX% XX interest on by equity base Chief net you, our quarter in Anna. Good a during net Aldis Birkans, the maintained XX.XX%. of I'm We tangible discipline, at as welcome loan a to funds earnings income return in call. points. XXXX of and Bank offsetting of We a of delivered and joined benefit deposit granular well-diversified record first result deposits. pricing coming We cost record rise the from a Holdings National common morning,

points. point X just annualized extremely charge-offs loan of quarter just the basis loans non-performing performed with portfolio The XX and basis well during of

during Cambr on After we discussing giving deposits us look quarter, capital little XX.XX%. of with insured April Cambr to funding overhead. detail Cambr very the and continue the Solutions. while during the build Q&A. with to in forward ability FDIC income greater our diversifies We grow incremental X, fee CETX acquired to We quarter,

now detail over Aldis? to Aldis And more call I'll for quarter. the on the turn

All right. Well morning. good thank you, Tim, and

delivered also important quarter by we with additional The liquidity income. afternoon, yesterday our while optionality another source reported and the provide financial strategically we deposits diversify will us FDIC-insured will performance, of of an strong sources Cambr As with acquisition of of provided fee Cambr. completing

this or project nicely already below fact, loan-to-deposit In acquisition contributing quarter our end to second and is the of by be to XXXX. financials, the at XX% of we ratio our

headlines quarter's financial to regard Before would results, few a to provide our I sheet. balance summarize with like I our

call are reports, of FDIC deposits As XX% reported approximately our QX insure. on

no are deposit granular, single we Our concentrations. and have balances relationship industry geography or

deposit incremental the In relationship acquisition. relationship a basis fact, granularity account. per and the $XX,XXX per is the This average $XX,XXX benefit just full is from balance on Cambr before

are network. deposits, are throughout center banking Approximately which nicely our deposit consumer XX% our balances of disbursed

For Sweep already been larger place ICS relationships, in we deposit utilizing program since have the of [indiscernible] FDIC XXXX.

quality using As we short the balance longer fair you with a loans years, loan value sheet for book we five than maintain know, life have duration high average hedges. been and

for mark-to-market year. the rate conjunction fourth purchase of our in XX% quarter higher XXXX for the was last the acquisitions of in approximately accounting book two environment Additionally, loan the with

healthy for of end, to scenarios To capital stress ratio adjust the residing process. consistently if test X.X%. a a losses various we with And management were as securities investment it the XX.X%. still CET ratio the we would of very in quarter Lastly, our unrealized CET part run that be first book, our ended we

results. financial the to turning Now

reported the net quarter, per share. For $XX.X diluted or earnings million of first director $X.XX income (ph) we of

was return a tangible a was equity X.X% The on the record first quarter's return on XX.X%. tangible record assets and

relationships. to our continued robust teammates be and focus new with on growth building loan continued pleased client We organic the

annualized. our quarter, first X% million grew or the During loan balances $XXX.X

million, that $XXX despite said higher holding markets $XX.X the a that, were strong rate environment, quarter operate came we up interest slight economies activity. prepaid two originations prior within days. and Having with with also fairly at are loan million, equivalent in we consistent fewer slowdown given the for the nicely. in experienced New tax calendar income net Fully quarter

margin was interest from the prior X.XX% remained unchanged Net and quarter.

from asset as bankers. benefit Fed to the in continue by our We pricing was yields rate the as the which moving higher, by loan well increases funds discipline continued earning aided QX,

rate Our first of accretive of yields originations loan at the to existing clearly loan X.X%, new was the were quarter which book mid-Xs. average during an originated

due basis increased The cost deposit just quarter moving outflows towards expensed XXXX. basis first balances for as of higher-yielding during the quarter deposit million products. points spot XX on clients we a The deposits to decreased $XXX the of

cycle rate than this beta deposit total XX%. date to less has been Our

Admittedly rest our and grow deposit were deposit offerings. we slow by is with rate at we more product deposit to the for rates. the of our our belief order balances become that will have And design, to competitive raising core in year,

by a does future margin XXXX. third to the by point any hikes Fed. projections X% This the rate of assume cuts Our hitting or not interest quarter

remains asset our quality, of it strong. terms In

another basis asset X.XX%. to X.XX%, Our ratio to improved improved non-accrual points ratio XX loan non-performing and our

net X first quarter's were charge-offs basis just point The annualized.

Given the credit loan provision was metrics, quarter primarily $XXX,XXX, driven this by improving expense originations. new

$XXX,XXX line a the quarter typically quarter. prior But both first slowdown $XX.X and a charges double-digit have first the XXXX, the compared Core growth. quarter for seasonal items income first million service the showed from in quarter. a nice of was increase non-interest banking when income bankcard Total or to

this quarter. decrease M&A to due realized totaled tax was the during the $XX.X in million costs. of Non-interest credits quarter's the $XX.X expenses quarter fourth than expense million non-recurring lower payroll primarily $X.X adjusted expense was of first million, for The quarter which when for

expenses benefit. of tax a operating to offset $XXX the quarter's basis towards the of Cambr we our acquisition expenses original year trending additional XXXX, to to year for rest on ahead see non-interest first related Looking million guidance are million. The full our full the $XXX payroll expected

you. to back it turn I'll that, with And

you, Thank Aldis. Great.

remain continue environment. delivered the of liquidity pleased with vigilant the loan our the highly and performance capital and to focused solid remain our during management current of we're While have positions economic portfolio quarter, light to a in on first respect to we'll

that On open questions. to would for the up I note, any line ask you Anna,

sir. our Rulis [Operator first you. And Jeff take question from D.A. with Yes, Thank we'll Instructions] Davidson.

morning, Good Jeff.

for total just and Good going just deposits is (ph) Clark could non-expense expense if and of on a morning. Maybe we acquisition funding. expense from a This both expense, forward, just Wright terms standpoint? deposit Jeff. and of on can non-interest could in Great pricing basically you Hi. talk the Maybe quickly estimate deposits you those talk how about Cambr. deposit

for Thanks question. Great asking. Yeah.

that in that that this. light been as have beyond has by contracting which options fact, year. platform pressure see well develop can and saying liquidity tag going industry on wanted and I commercial to rates of I'll in for dollars to begin well our center the over my on on Fed's come Board obviously posture I think was, Aldis network I'll I as and relationships. traditional those focused balance stimulus creating to on the fruition. and last in raising gathering team the the the review options banking around banking rundown sheet liquidity, we And depository

position, are to is support finance supporting clear, So of have embedded bank you do finance record. we're a essence, working operate we with relationships record not of more Cambr companies. banks well, of mean operating but banks with what its To by their We record. a as doing at technology what with really People custodial be in embedded asked, company?

partner record bank Imagine opens bank paid bank course of which that the of granular, handle Cambr to of from record relationship, like up capital their income of that they banks of while the to When then look on need clients, its takes a total is a Credit and them fee oftentimes those bank balances. exceed can a partner, There's the Karma Those of what level perspective. for deposits, cumulative company that those the services. bank help distribute for checking record. for hold accounts Cambr that. obviously very deposits excess that becomes to

in in keep as process deposits to deposits. form in core are, distributed And country benefit any middle the One on a banks that choose balances a balance the custodial sit the brokered that as deposits of in our interesting fact, is of the multitude we from sheet are to across treated that that deposits. we them of versus bank, then distinction brokered

business across to and business a sectors set But this, the the while interesting bit we a you can today, that's community wide provide just some of, of perhaps banks could broader ways with for imagination, be let's range also think to say, that Cambr interest, about look other serve a and of solutions little at begin country. even technology used

a we of model. cost felt an little deposits. about the I think cost describe because say When cost, And what it's So the rate cost deposits, talk deposits? business important about that's about I business do of Aldis, it's was on the it important. talk would we embedded may of those just you we part the the strategically not and the the be how want how why to I the and bit will those think

about efficient to highly way it other The is machine. think deposit-gathering a this is

that handful today a billion, XX technology between running $X.X of billion Less deposits. really this is people, than gathering people, just $X.X

interesting Cambr, or as et your something that banking strip traditional that's of to to when historical then network, and you. you or So away Aldis, well. it to begin I'll cetera., gets it branch where center cost like pretty the typical compare throw cost

what of us. deposit for expect fee a do, Yeah. (ph) before in competitive these than live Love about a basis will next with terms for would directly income in movement sheet, it to – And that be, more cost our of cost the in alternative to lower I'll this from fees attractive, the direction Salt at which what cost caidance. that guidance it to not sorry, wholesale for on we go-forward much in terms to we how of Lake actual settle overall quarters best makes our in deposit of certainly reasons, directionally. continue are terms just cost tend Certainly, we balance in perspective. embed and deposits the of obvious talk couple say We'll forward the

I'd point StoneCastle partner we transition. if bought this be that, this I from have StoneCastle. didn't remiss also through not a been out better could

to StoneCastle found business a not them, year partner the part with Cambr. may wasn't like just may be work and their move again, first great this develops conversations be as reach And last. won't beginning the we them through first first, to ago platforms You terms really quarter we working it a or and This over then know, early ahead. their of with

our as well. thanks to again, So StoneCastle the team

real Appreciate that one I squeeze quick. in Maybe could if more color.

guide course, by in the you Just of that year-end. X% NIM terms, have

QX deal. the of of expecting you're end and where strong terms addition year still in the this Now that Is to at?

remarks, at there, I than that I we'll the X% March. what and if now we my in look was taken probably that conditions nature the expect think, quarter. had in quarter, I said that though, so I events in increased given really been that has place competitive we hit even for the No, liquidity third Yeah. said sooner do -- -- the marketplace I you is, expect fourth the

Got it. Thank you.

Having the QX. news book said as is, in is loan our yielding that, good mid-Xs, I reported

came it X.X. originations out was almost loan new Our X%. March, In at

-- do the the competitive earning the expect of dramatically the quarter. first just changed of up funding assets. significant continued the So since of nature balance I has the It's beginning sheet, pricing component

anything Caller, did further? you have

good. No. you. Thank I’m

KBW. We'll now Thank take from Great. Motta with next you. question Kelly our

wondering apologize, your work, opportunity? a you don't the Thanks But Is so couple give the any events? belt. much how may dynamics that of you just I possibility numbers specific like that know opportunity. have fee until like to what under the or more of Hi. of I question. a around quarters will you want generates can there be explain the later missed I'm for phrasing have I kind

No. explain We that. can

can that. explain We

our be balance keeping in balance, there terms really them. volume that from in I how deposits, of own the amount we in terms think the after income. Cambr's to of before us of or market, terms going whatever of why technology I deposits away detail of after sheet today in broker creates sold before does certain fee acquired to part providing So right, and like But is dynamics, That be much. is evident we going to for what more a purposes, that stay the that's of -- -- would

a was And positive on company total that, we positive this that I'll say certainly, a net acquired. business that or EBITDA basis, income

-- negative along that. operationally. there's So no it's that carry extremely mentioned, comes with as It's efficient Tim

-- in it's leverage the grow we here is settle benefit just grows much quarters. to will going and how So in powerful operating the operating of extremely from the next this leverage the this business company, as few to be business terms

Obviously, model is changed by rate that a interesting Kelly, effective liquidity world's through what's efficiency a a tested. a this an during where virtually environment, last ran for banks. high is I low quarters. mean, And But couple the made time environment this market. demand of the in certainly business, and and operational rate zero-rate there's StoneCastle both the other

basis. the operate go-forward And advances Should sheet of approximate acquisition that the that you you million got the That's similar borrowings, level borrowings you with with down helpful. you trying to you better balance FHLB the or Just took deposits understand it. that the with deposit I from this a disclosed you Cambr. Got funding on from took $XXX borrowing? the be dynamics continue assumption incremental of a pay on on, are of amount to going know to

Yeah. question. Great No.

So were at look quarter basis, if not end. you at billion if $X spot a -- really, on the we

say, to be on place all of in to sheet I'll be approximately brought took Now safe. conservative balance just $XXX and cash first million as excess and we prudent of that through March, events

billion we is, basis FHLB call have. it, $XXX by million normal would exaggerated $X stock environment on mark to what the So on typically,

most do down brought date of terms about work million of and us, to one. and continue the in FHLB the yes, to quarter the over really of expect this it comes rest balance efficient on the to Now down And course we Cambr, year. to to at $XXX

liquidity most off borrowings. of directionally, funding pay look way the sheet. balance to all of we But the prudent Secondly, FHLB will

say, expensive what back profitability, And than needless meaningfully liquidity on you pay FHLB. to to question Cambr your less out coming would of

Okay. lot of a That makes sense.

like Just some and what looking be? there the more provide guys a may would diversification. you watching you're closely? Any granular may around commentary you categories a loan color given really any be helpful, that ahead, have good exposure your portfolio office Speakers] Can Are that -- on [Multiple pretty

to of our begin Yeah. with book. be seems a the we don't X.X% Why with exposure office than of certainly less to operate total which office, year. loan We subject

is, think level exposure to that we that equally in to XX%. what's loan low with of important value of I office operate average exposure an

with real So a banks relative to still to total on low size. keeping position our it's risk-based in commercial all our level of We commercial certainly other with of real estate. estate operate capital, most

X% We have total of around around retail exposure loan-to-value that of runs loans average right XX%.

loan subject really total Multi-family, an X.X% which of hasn't been around the XX%. average of much focus with is value of to loans

to probably So that be most on. with may granular portfolio. of we those are right. continue you're folks I of yes, very exactly And focused the categories operate mean a three real estate

million In fact, banking $X.X commercial funded our business average loan or was year-to-date.

flow global as looking double-digit coverage, and looking I -- rates and opening So to to the to underwriting, kind our given as industry obviously, suggested vigilant standards are and believe particularly is, estate cash it's and assumptions underwriting in at for our some interest faults loan on holding kind with be in comments our be of we're We appears preparing rates, values preparing. to economy impact the real on prudent we headed. given just value, where rising of at

So those -- help we're think positioned of that stats support it. I And hopefully, for but view. well some

Really helpful.

I question, back. Just one seek stepping before if could in last

you any can refresh on shares, your buyback thoughts here? the and market the in pullback the Given us on

it three sense. of opportunistic about to the $XX pulls We're watching buyback levels be very will markets I that that and have makes say we'll the Yeah. certainly closely back Well, Board-authorized (ph), capacity. authorized, million we if

I’ll Understood. for questions. much back. Thanks step so the

you. Thank

our Andrew Stephens. question take with Terrell now from We'll next

Aldis. Hey, Tim. Hey,

Good morning.

morning. Good

Cambr. on missed just I congrats have morning. Maybe just totally And but the one, Number acquisition. might the on that? guys start disclose disclose you you this, did purchase Good Can to pricing?

look if a We a deposit is paid tell we private did be kind you be the that rates acquisition of be was, that premium for mutually run relative would in StoneCastle, the I at bank, terms It premiums. not. would this you very, this again, price. attractive traditional on of with not we can might very deposit transaction a that and disclosing conventionally, to acquisition company, agreed What

aside -- about it. spread and and perspective, beyond here? the thinking type sheet just start it. going understand balance appreciate helpful. of ratio modeling balance sheet back Got the a That's what before non-interest to bring or from And hold to Okay. this I I'm balance just maybe from on trying kind income you a then standpoint. and sheet What's impacts the expense efficiency you contemplating can

or… For this specifically, Andrew business

Yeah.

ratio come For would this efficiency business on up. specifically, the

It's ridiculous.

and our at accretive $X we balance it's XX% were to again sheet which ratio, this Yeah. long-term is No, very -- purposes overall levels. efficiency it's probably management at quarter, good

point accretive. business opportunity that this to so. So very Tim's this technology, it use for see to becomes of the it's And exponentially and opportunities we

Yeah. Understood.

Okay. And the appreciate growth embedded then here. just I maybe also wanted to kind of

I of for growth administration. moving you feel opportunities you years? So then billion past under What's have what's And think that see Like look like been you the of growth Do Cambr? couple do how rate accelerate like $X.X to forward? the trending over it? deposits

then to balance of a brought that to have And you is, on, on capacity understanding second if on part trade-off there? that bring million billion all my sheet. you've Do core there'll question be $X.X would your funding you like, date of $XXX

some it first and I addressing a Yeah. in the is its good experience, Very attractive it has it table questions. answer very our Cambr that clearly since question nice technology Right. made that has is marketplace to inception. The the offering. unique need brings growth the to -- your steady mean the an

or provided we do at would roll this suspect expect actually on we haven't we I would expect these something XXXX. into what point. deposits In grow as terms it's we'll of guidance growth how to rates, we

want really the more. We expansion bit continue we this of a broad opportunities see live to to said, Aldis business with for range As a technology.

with right? by many branches in deposits. many billion think believe way dynamic I just we across for the cost generate five to take run to brick-and-mortar to your about think experience mentioned at in the ways. that have, it And people to just business. in then bank deposits. this typical we I billion $X.X in $X.X people this it's Imagine amazing capability other today, how would people this Five banking one traditional how $X.X of coming responsible between billion be leveraged billion $X.X essentially could before, all

bet are numbers five. No, the I than more Yeah.

to the full efficient and is For answer question, is expense, your business. could of To question efficiency so therefore, back we extremely the answer do $X.X the billion, tomorrow. type yes. your that our intent. can on bring today, original absolutely, ratio it of in whether terms Not low We

not But or part upset. to want part tent. it's partners we from that liquidity, consideration in of there. of certainly, So that so -- not intent that would we our involved that want there's on-demand it's And

And way. again, with want which it lot gone, balance for do the incorporate with way sheet, a again, can live our not balance this upsets How always forecast learn what that that partners doing and can we we sheet know, all a have sure what and that, as you dependence we how we operating, slowly make but things, with is they've the the partners quickly, our how living what in of we needs, all the interactions the how to is been business why we, have been.

banks those going the And going certainly is what environment, to not tremendous focused pull a deposits. operate. way on not record. broker tight have relying do we're then we're to liquidity away going just step to been on deposits to in banks that one, service of we're and Number it's And the providing in from be

determining, as this And over how do it deposits Aldis that of is banks again, of so record satisfying of recipients seeing time. living we part said, how both seriously the the these we and ensure with grow we're

thoughts that loan expectation one last guys. I I in if the wanted you still growth. essentially in. still I down of quarter. to need high-single quarter. you line good the feel mid still the really gave more Yeah. get felt Obviously, could sneak If Do But guys? into industry. feel there, was digit or strong from to just on really still coming is overall with high-single any digits? does appreciate us Understood. growth you I growth like seeing new there about this I curious to pretty ask wanted an slowing to all kind across Are kind of just it expectations? deals just seeing mid the growth kind of And you color you growth was update to recast on pipeline? loan

Yeah. indicate to Well, pretty still entered else we that track the all guidance. that quarter will are on equal, pipelines our second was previous we strong meeting

the bit month. the Now that, over having changed said world has a quite last

So potential the the we now, the and provided (ph) that recession unpredictability original has of the worthy the depth wildcard are when is probability right of recession the increased of pipelines maybe from strong. guidance. But

we their add we’ll the we’ve lending that’s for quarter. focused. the that where the market it with saw from some to back take banks degree of been opportunities of in pull be And small, time, to are period that really that very to with would all we is range large interested share I of ratios, attractive loan-to-deposit there targets during concerns on a liquidity What interesting around found and

Understood. Yeah.

thank taking Okay. you questions. Well, for the

Great. Thank bet. you. You

next Andrew Liesch our take now with from Sandler. Piper We'll question

Hey. Good guys. morning,

Hey. Good morning.

on deal Cambr Congrats the here.

you. Thank

a sub-$XX to good income forward? wanted run -- outside fee just the rate Is level, that So Cambr. million is this going of

So Actually, they Mortgage the double-digits were for Certainly, target [indiscernible] a And up actually but year-over-year linked a the basis quarter as right I where in year. it's -- low. both our million a on lowest budget positive. quarter in on it there. plan $X.X which of remarks, internally mentioned couple and The basis. are was. bit service was us, card bank fees and seasonally on always a things up, was was my

last double-digit So And growth will and just adding to expect again, you I rate there. the rate get that run taking some run component improving. do year's be

be. thought, it's hesitating will originally all the non-interest will that -- probably Bank from did cadence benefit both were through item but a income to Again, market will which we've that first this it accounting quarter. SBA. be bit then is it seems some where seen, acquisition, I'm little $XXX,XXX lower it million a Rock quarter, about what SBA And $X.X bit There at activity, The is other we in how first that we gains we evolves. continues Canyon on soft. be still And That Cambr. to

kind are the [indiscernible]. those of So

Okay. Helpful there. And it's then fee rate on in the just -- and I to I recognize my you're But rates. not full businesses, give these is on -- comfortable yet. mean and not interest guidance ready changes experience based in Cambr

cuts being to I bit rates when attractive think modeling lower? with is this, the business. that get would way you forward? rates, trend But mean, the it's Fed going a more higher, about guys So that the then rate fee right much

there's environment, Actually, XXX call the be the XXX versus to I point, we zero sensitivity feel than would that component on basis is keep balance sheet. unless regardless. go fee it range. rate to off volume. other how Again, it, absolute much I like back consistent will going mean, I don't to

Thanks. you. Got

all covered questions. You’ve other

Great.

you. Thank

We'll Group. Brett question take with Hovde next now Rabatin from our

morning. Good guys. Hey,

Good morning.

rates the obviously peers, just look at go -- about and you've I well. talking costs the managed guidance deposit to margin versus to Wanted when back just really your

others. rates an versus one And think advantage bank to of seem environment being to maybe so this certainly be would the multibank subsidiary be where have about platform, higher would at I able when the that an

just X% wanted assuming the banks? funding manage And get betas different some color, on to are the you're what the then costs so you're by XQ, more margin what And the for to with that? subsidiary ability Aldis, just seeing

geographic say versus differently of is quarter. manage rural that depending the has bit component, this populated in difference places of I'll terms the ability Yeah. a urban abated and more competition. in a terms quite bit on that There markets to a probably of still of

that so by do really competitors other That's very it in down place. not the a see or our for historical that competition, beta us then, deposits, showing. competitive So of kind and was and consumer I are the banks unique other clients beta, much it's more comes to driven driven bank right?

a being history. that's And believe component seeing consumer I of there population really than are that more in component this exposed we ability higher, and earn to ever rate higher rates do company's is sensitive to now that and been

QX, pulling back, that's -- deposits. margin why our guidance. component balances So balance say from XX% that's I'm hitting approximately transaction changed that a pulling bit I perspective, true little X% the the of in forward is again, which X% will are that the

So interest-bearing checking. those checking in are non-interest-bearing and

a that are you combined, lines those two spot if on at were to look flat On basis, see we you'll almost [indiscernible].

a has March. it a newspapers do component those that's that's what interest-bearing reactive through So driven rate and soundness in out higher inflows changed to the happened has being excess -- it's more pandemic were discussions, accelerated, would and zero deposits. another of balances environment looking NBH. again, really move maybe nothing that and say, into rate headlines again, with And I to In reading and is safety environment. people moving those of rate a zero rate and some that's checking And

Okay. different the then Difficulty], XQ subsidiary the for assumption the beta banks? promotions at or you are the different [Technical XQ? And by what's doing

are, we being We doing how and smart are compete. different promotions about we

In conditions will a this it's Because that terms the deposit last -- through macroeconomic last, it to It's changing our by of cycle, by to I say, say And -- year. went the again, XX%. of we all-in is days. say, percentage XX quite closer was that the of XX% points. the beta it's environment are XX%, assumption over higher the our say I couple probably, time, is beta, precise beta rate number. not I'll being have X.X%. really been reactive but beta, rapidly giving Last beta without so was will end cycle-to-date beta that I'll year that we directionally, --

approach would add, take have clear, across we our pricing reality to I not down bank differently the also to that only different The price our the level. to be brands. to is, just market do we flexibility

There tuned where sensitive resort is competitive, based markets. metropolitan smaller need are to can being difference be between is that And differences be on how be to going going are and focus our we markets, we be on there between inflection rate into So dynamics. markets. market community to those what

have a Okay. -- as the this That's add think Tim, future transaction, a it interest And deal to of possibly of that in piece Cambr. would about And trying you maybe just obviously deposits? lending compliance and really becoming there to both the you're own excited and I'm operation your one to Would products, to other, from this this? in here. at then, transaction your banks BaaS you looking Is more to you're other function a helpful. about to got of tilt potential that's

look, risk. regard. have compliance We're we're we with regulators. we certainly we're on about to of jeopardize work front, mean, operational front, I not the strong BSA/AML proud going Yeah. do that our standing And the standing our managing And et in all cetera.

ahead. interesting would So this just have of technology that that move say in we and we comfortable mean manage in operational with those risk terms I is I feel uses. place can so we very the teams other

threshold FDIC real a a state. deposits a say, in It's whatever state I you take last market center. your distributing being money market where just from Cambr community moving your for some to X the to over by imagine might support the above or state we're deposits political standpoint deposits win state of and mean, to technology weeks, X keeping be. a help And what's and and able a scenario New help going the it's it's -- think by to other group win banks a each transpired to your not that it's because given I to and other look, and York excess

deposits in It's each state, of and banks community helping it's keeping flourish. that those those

So example we just sure ways. that of And get would be in this. one thought that about thinking in this excited different then I’m leveraging about about terms you

with XUniFi. And we way about talked leveraged build will think XUniFi. the into technology, what about this easily While we learning call, be it we we servicing deposits continue it with haven’t actually out to in on this think we’re

helpful. that’s that front, come So hopefully, on more to but

much so Thanks it. Appreciate guys. Yeah.

you. bet. You Thank

showing will Mr. closing turn no this Thank for to the call And questions time. have I now you. Laney remarks. I'm we back his at further

and you, brief. be Thank Anna, I'll

for you. this all a with not should directly morning. Wish day. other follow-up you your to interest Just your you good questions. Do thank time us Thank and you hesitate have

this And call. today's conference concludes

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