Image source: The Motley Fool.
First Foundation Inc (FFWM 0.29%)
Q2Â 2019 Earnings Call
Jul 24, 2019, 11:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Greetings and welcome to First Foundation's Second Quarter 2019 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]
Speaking today will be Scott Kavanaugh, First Foundation's Chief Executive Officer; John Michel, Chief Financial Officer; David DePillo, President; and John Hakopian, President of First Foundation Advisors.
Before I hand the call over to Scott, please note that management will make certain predictive statements during today's call that reflect their current views and expectations about the company's performance and financial results. These forward-looking statements are made subject to the Safe Harbor statement included in today's earnings release. In addition, some of the discussion may include non-GAAP financial measures. For a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements and reconciliations of non-GAAP financial measures, see the company's filings with the Securities and Exchange Commission.
And now, I would like to turn the call over to Scott Cavanaugh.
Scott F. Kavanaugh -- Chief Executive Officer
Thank you. Hello and thank you for joining us. We would like to welcome all of you to our second quarter 2019 earnings conference call. We will be providing some prepared comments regarding our activities and then we will respond to questions.
As highlighted in the press release this morning, we experienced another strong quarter across key financial metrics of the firm. Earnings for the second quarter were $12.4 million, a 141% increase over the second quarter of 2018 or $0.28 per share. Total revenues were $51 million for the quarter, an increase of 18% year-over-year. Our efficiency ratio for the second quarter was 63.5% and our tangible book value per share ended the quarter at $10.94 per share. I'm very proud of our executive team, our business unit leaders and all of our employees for helping us achieve these results. They all contributed to helping us manage expenses and focus on generating high quality revenue during the first half of the year. This puts us in a position that I expect to set up for the success for the remainder of the year and beyond.
Our banking operations continue to experience growth. Loan originations totaled $494 million in the second quarter and year-to-date. Our deposits have grown by $211 million. Our industry continues to experience challenges due to the uncertainty in the interest rate environment, including an inverted yield curve, yet our business model allows us to deliver results like what we announced today.
In particular, our multi-channel approach through attracting deposits has helped lead us through the challenge. For instance, as retail deposits became more and more expensive in the first half of 2019, we were able to leverage our experience in attracting deposits from other channels, including specialty deposits which helped generate the results we reported this morning. As we start to save large money center banks drop rates in the retail channel, we could see retail become attractive again. We will continue to monitor our funding sources and make any adjustments as needed, especially in light of any future decreases in the Fed funds rate.
I mentioned $494 million in loan originations, but I also wanted to call out the fact that we continue to diversify our loan portfolio, namely from the growth in our commercial lending activities .While we still maintained industry-leading capabilities and multi-family lending, we also appreciate that the bank our size should remain relatively diversified. So I'm pleased at what we've accomplished. They will provide some details on loan origination in a few minutes.
While I'm very proud of our lending activities, I am particularly proud that we continue to have minimal credit concerns as evidenced by our low levels of non-performing assets, which stands at 25 basis points at June 30th. Our wealth management business saw positive results in both market appreciation and assets from new clients, and our total assets under management ended the quarter at $4.2 billion. This is a positive rebound from where we were at the end of 2018.
Our trust department also saw a strong quarter of attracting new clients resulting in an increase in $82 million in assets. Pipelines for our wealth management and trust business look very strong heading into the second half of the year. And lastly, we paid our quarterly cash dividend of $0.05 per share. Overall, it was a strong quarter.
Let me turn the call over to our CFO, John Mitchell.
John M. Michel -- Chief Financial Officer
Thank you, Scott. I will provide a brief summary of our financial results for the quarter. Total revenues for the second quarter were $51 million, an 18% increase from the second quarter of 2018. Earnings were $12.4 million and earnings per share were $0.28 for the second quarter of 2019.
Year-to-date, total revenues were $100.5, earnings were $23.7 million and earnings per share were $0.53. Our net margin was 2.84% for the second quarter and 2.86% for year-to-date. Excluding the effect of our loans held for sale, our net interest margin would have been 2.97% for the second quarter and 3% for year-to-date. The yield on our interest earning assets increased to 4.30% as weighted average yield on originated loans continue to be higher than yields on loans in our portfolio. This reflects the benefits of diversification in commercial lending. In addition, we realized $1.3 million of benefits related to credit and yield discounts on the pay-off of acquired loans.
Our overall cost of interest bearing liabilities increased to 2% in the second quarter of 2019 as demand for deposits continued to be strong, resulting in higher rates. Borrowing rates remain relatively flat. Our charge-offs for the quarter were nominal and our ALLL is at 48 basis basis points for non-acquired loans. We are in the process of developing the required modelling for the implementation of CECL and we expect to be able to assess the impact of CECL later in the year.
Compared to the first quarter of 2019, non-interest expenses in the second quarter 2019 decreased by $0.6 million as seasonal decreases in compensation and benefits more than offset increases in customer service costs. The change in non-interest expenses in the second quarter of 2019 as compared to the second quarter of 2018 were primarily due to acquisition-related costs. Our effective tax rate for the second quarter and year-to-date was 29.1% and 29.4% respectively as compared to our statutory rate of 29%.
I will now turn the call over to David Pillow, President of First Foundation.
David DePillo -- President
Thank you, John. As Scott mentioned, during the second quarter, we originated $494 million in loans. The composition of our loan originations are as follows: multi-family was 49%, commercial C&I loans was 43%, single family 6% and 2% other.
For the second quarter, the weighted average rate on our loans originated was 4.77%. This reflects the benefit of diversification into commercial loans as the weighted average rate by type was 4.21% for multi-family and 5.37% for C&I. As of June 30th, our loan portfolio included our loans held -- including our loans held of sale consisted of 53% multi-family, 20% of which are held for sale, 20% C&I loans, 8% non-owner occupied CRE, 18% consumer and single family, 1% land and construction.
As Scott mentioned, credit quality of our loan portfolio was strong as evidenced by a low level delinquencies and our NPA ratio of 25 basis points. Also mentioned, deposits grew by $211 million for the first six months of 2019 as growth in specialty and wholesale deposits was offset by withdrawals of certain acquired deposits. As of June 30th, 2019, our 20 location branch network is 42% of our total deposits. Also, as mentioned, the industry continues to face pressures on both loans and deposits due to the inverted yield curve.
We are scheduled to complete a loan sale of approximately $600 million during the third quarter. As a reminder, [Indecipherable] for these loans held for sale as in December of 2018. As of June 30th, 2019, due to the significant decline in interest rates in December, the marketing hedge was approximately $19.5 million. This significant movement in rates in widening of credit spreads could have an adverse impact on our expected gain on sale for these loans in the third quarter. Overall, I'm pleased with our results.
Now I'd like to turn the call over to John Hakopian, President of First Foundation Advisors.
John Hakopian -- President
Thank you, David, and good morning. In the second quarter, we experienced another solid quarter of positive returns in the market. Our AUM saw an increase of $145 million during the second quarter and $301 million year-to-date. Our performance of our investment strategies has been solid as they have met or exceeded our benchmarks for the year. We recently expanded our growth component to our investment offering. This coupled with our already established value strategy has enabled us to capture additional returns for our clients. Along these lines, we continue to serve our high net worth client base with a mix of in-house and third-party managers across fixed income equity and alternatives, including real estate.
We feel for our firm our size we have a very comprehensive investment offering. As a result of all that we do for our clients, our average fee per household has remained strong even as firms within the industry face increased fee compression, while our average client relationship has increased in size. We are able to maintain this fee with services like financial planning, which can oftentimes be a value add for our clients and help us find additional ways to support their goals.
Our trust department continues to be instrumental in our ability to build and maintain relationships with our clients. Several of our largest clients have established relationships at our trust company. We maintain a strong pipeline and expect to continue to be successful in attracting new clients and feel positive for the rest of the year.
At this time, we are ready to take questions and I will hand it back to the operator.
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from the line of Matthew Clarke of Piper Jaffray.
Matthew Clarke -- Piper Jaffray -- Analyst
Hi. Good morning.
Scott F. Kavanaugh -- Chief Executive Officer
Hey, Matthew.
John M. Michel -- Chief Financial Officer
Good morning.
Matthew Clarke -- Piper Jaffray -- Analyst
Maybe just first on the margin. Can you just give us some additional color as to when you think the securitization will get done? And then, so we think about that pro forma margin being in around that 2.97% excluding held for sale, do you expect some additional lift there or more pressure going into 3Q-4Q?
Scott F. Kavanaugh -- Chief Executive Officer
Well, the securitization should take place at the end of the third quarter. That's our anticipation, and everything seems like it's going smoothly at this point. So, I would expect toward the third or fourth week of September, we should complete that. As far as net interest margins, I think it really is kind of, first of all, I think deposits have kind of trimmed out in terms of pressure, but I will say loan yields with as quickly as the yield curve went inverted, just in six months, we've seen loan yields probably come in 40 basis points. And I'll let Dave weigh in on that in a second. But I think you're going to start to see some of the pressures on deposit cost start to abate, especially at the Fed decreases rates starting hopefully next week.
David DePillo -- President
Yeah. I would agree with Scott on that point. One of the values of remix in our originations not away from multi-family, but certainly a smaller percentage. With the decline in rates in [Indecipherable] more up the short end with C&I loans, you could see that our average rate of origination was actually at the approximate same level as it was a year end when rates were much higher. So, the remixing certainly helps and that'll help over time as we continue to diversify our originations. Additional benefits, after we obviously reduce our loans held for sale on this sale is a reduction in borrowing cost which have been historically higher than our funding costs in general on the deposit side.
And then, there is potential for -- due to the recovery of our securities portfolio, some remixing there with new securities coming on at a significantly higher rate than some that we can pull off that are already reflected in our mark-to-market on equity. But the effective yield on those securities does not run through the income statement. So, we get some benefit from the re mixing there, lowering some reliance on wholesale borrowings due to holding those in available for sale. So, with all those activities happening at the same time, it should stabilize our margin going forward.
Scott F. Kavanaugh -- Chief Executive Officer
Yeah, that's a good point, Dave. I do want to make it clear, Matthew, that what they are talking about is, we put on a lot of securities. Our regulators requested that we have a little bit more on balance sheet liquidity when interest rates were zero. As a result, we put on right after the capital raise, I think, in 2015 we put on about $500 million to $600 million of 15-year pass-throughs. And I think, we will probably start to recollect some of that around the time that the securitization happened. So that will be a factor in the third quarter as well.
Matthew Clarke -- Piper Jaffray -- Analyst
Okay, great. And then, on deposit pricing and deposit costs, I mean, is the sense that deposit costs will peak in the third quarter here and start to move lower assuming we get a Fed cut next week or do you feel like there's going to be a little bit of a repricing lag?
Scott F. Kavanaugh -- Chief Executive Officer
No, I don't expect that there's going to be a repricing lag. I would say, for the most part, clients were pretty quick to react on the upside. And I think it's fair to say that we'll react to the downside in a similar fashion if the Fed decides to move. That being said, I'm starting to see anecdotal notes of less pressure on deposits already. So, that's where, I think -- yeah, I think, you have seen a big if not the second quarter, definitely in the third quarter.
Matthew Clarke -- Piper Jaffray -- Analyst
Okay.
John M. Michel -- Chief Financial Officer
And I think...
Matthew Clarke -- Piper Jaffray -- Analyst
Go ahead. I'm sorry.
John M. Michel -- Chief Financial Officer
Yeah. I think, just to echo Scott's comments, because we are relatively liability sensitive and more than 50% of our deposits are not in, what we would call, traditional retail or lateral time deposits. We definitely will get the benefit quicker on a reprice with Fed movement, but we're already seeing lower rates on the wholesale basis just starting to push through.
Matthew Clarke -- Piper Jaffray -- Analyst
Okay. And then just shifting gears to the loan growth well above your, I think, targeted range of 10% to 15% this quarter, even the capital ratio is a little bit. Should we expect the growth -- the pace of growth to kind of return to that 10% to 15% range or not?
David DePillo -- President
Matt, I would guess -- in terms of the 10% to 15%, that was year-over-year. So we always kind of pick up before we have the sale. Once we do the sale and we look at the effect after the sale, that 10% to 15% we still think is a good guide. So you're going to have a pick up in the third quarter because of the loan sales and loan sale happens when you look at year-over-year, that 10% to 15% is still a good guide.
John M. Michel -- Chief Financial Officer
Yeah. On total assets of the balance sheet, Dave, you may weigh in now on loans.
David DePillo -- President
Yeah. I think part of the precipitous decline in interest rates, we have been holding rates fairly good on the multi-family side, but it has impacted the amount of which we would fund traditionally during the second quarter. So, however, because of the remix we are seeing, more significant volumes of C&I that's offset that. I would expect that we would probably be slightly lower in the third and potentially slightly lower in the fourth quarter from the second quarter run rate, but still up in that $1.6 billion to $1.8 billion total funding range. But as John mentioned, typically if we originate $1.6 billion or $1.8 billion, then we have $600 million of sale, including our traditional repayments of loans that will have net growth of somewhere between $600 million to 800 million net, which would be that 10% to 15% range.
Matthew Clarke -- Piper Jaffray -- Analyst
Great. And then, just a couple small ones for me. Just on other fees up in the quarter, a few million anything that we draw in that number ?
John M. Michel -- Chief Financial Officer
Just we continue to have strong results both in the advisor side, as you heard Scott say the AUM went off. So we continue to expect to have increases there. But on the trust side and the loan fees continue to have positive impacts. Also you'll see a little bit of impact because we did acquire PBB last year. One of the impacts of that is, they have a more retail focused deposit franchise up in certain areas and they have a little bit higher deposit fees. So a little bit of everything, really strong trust growth.
Scott F. Kavanaugh -- Chief Executive Officer
Yeah. We'll tell you, Matthew, I really feel like that FFA and the Trust Department are working as well together as I've ever seen, and the opportunities that are coming on board for both companies is tremendous. So I am super, super delighted at how well it's working.
John M. Michel -- Chief Financial Officer
Yeah. And I'd echo Scott's comments. I think our quantity in our pipeline as well as the quality of the potential relationships felt like solid right now.
Operator
Our next question comes from the line of Andrew Liesch, Sandler O'Neill.
Andrew Liesch -- Sandler O'Neill -- Analyst
Good morning, guys.
Scott F. Kavanaugh -- Chief Executive Officer
Good morning, Andrew.
Andrew Liesch -- Sandler O'Neill -- Analyst
Just on the deposit growth here in the quarter, big inflows in non-interest trading accounts, just kind of curious -- was there anything specific driving that?
Scott F. Kavanaugh -- Chief Executive Officer
Just to stick with growth in some of our specialty deposits. The mortgage servicing rights tend to grow during the summer, and then they decline when they have the tax pay -- late fall and beginning into the winter. So that's a cyclical and expected level of increase that we have, and we expect a decrease in the fourth quarter.
Andrew Liesch -- Sandler O'Neill -- Analyst
Got you. Are these accounts have customer service fees associated with them and the operating expense line?
Scott F. Kavanaugh -- Chief Executive Officer
Yes, they do.
Andrew Liesch -- Sandler O'Neill -- Analyst
So then presumably with the Fed rate cut, would those fees then go down here, assuming we get a cut next week?
Scott F. Kavanaugh -- Chief Executive Officer
Just as much as they went up, we would expect them to go down as you get the benefits of it.
Andrew Liesch -- Sandler O'Neill -- Analyst
Right. Actually that covers all of the questions I had. I'll step back.
Scott F. Kavanaugh -- Chief Executive Officer
[Indecipherable]
Operator
Your next question comes from the line of Steve Moss of B. Riley FBR.
Steve Moss -- B. Riley FBR -- Analyst
Good morning, guys.
Scott F. Kavanaugh -- Chief Executive Officer
Hi. Good morning, Steve.
Steve Moss -- B. Riley FBR -- Analyst
I apologize for hopping on late here, but I did want to touch on the CNI growth for the quarter. You know, obviously, the large mix of the originations for the quarter just wondering, you know, how sustainable is that going forward. And the other part being as it relates to multi-family loans, given significantly lower rates, is your total origination guidance assuming basically lower multi-family originations for the second half the year. If we hold on here?
David DePillo -- President
Steve. Yeah, we cover that a little bit earlier before you jumped on, and those are in line with the other questions that we had on originations. So, are the run rate is a little bit higher than most people probably thought through the first half of the year. And our expectations for the full year are still in line with that 1.62 billion to 1.8 billion that we've traditionally experienced Multi-family was a smaller percentage than traditionally we see in part of that is being very selective on the market due to lower interest rates but we were able to hold our weighted average it's a straight on that to higher than our expectations given current market.
On the C&I side of our expectations going forward is multifamily could be lower for the rest of the year depending on what happens in that middle lenders occur and we continue to be cautious around booking loans at significantly lower rates. After four years of building our C&I franchise, we've really started to see some great traction across the footprint, including our corporate banking group that has booked some nice larger relationships in the second quarter. As you know, that business can be a little bit -- we use the technical term lumpy. We had a great second quarter, third quarter could be a little bit less and could finish up with a stronger fourth quarter but I think the organic momentum of our CNI franchises put us in a position to have a more diversified funding mix, not only for this year but for next year and beyond.
Steve Moss -- B. Riley FBR -- Analyst
Okay. What specific industries are you seeing loan growth in the C&I space?
Scott F. Kavanaugh -- Chief Executive Officer
Pretty much across the board, we don't tend to focus heavily on any specific industry type. So it could be from manufacturing and distribution service scene. We've had some in the specialty finance area, general finance, a little bit in the construction. We tend to be a little more concentrated in California around construction services. However, in the second quarter, a significant portion of the originations were away from that sector. So, we can provide some additional portfolio breakdowns in the future to show you the level of diversification. And I think that's something we're relatively proud of, which is that's a good idea the. Lack of concentration in any specific one type of area or it we've included some agriculture as well very diverse but...
Steve Moss -- B. Riley FBR -- Analyst
That's helpful. And then, on expenses here, just on the comp line, I know it always comes down after the first quarter, but it seems like it came in more than what I was thinking, just kind of wondering how we think about expenses in the third quarter?
Scott F. Kavanaugh -- Chief Executive Officer
Yeah. In terms of going through that, we've made a lot of efforts across the board here of trying to manage expenses and obviously our business expenses and competition. So you can see by the accounts that we've basically remained flat for this year. We continue to focus on those efforts. And going forward, obviously in the second quarter in terms of the expectations regarding costs, there shouldn't be any significant changes in the third or fourth quarter, primarily but obviously the first quarter of next year you'll have that seasonality impact of it. Obviously we've benefited from that in the second quarter, but there is really no unusual items in the second quarter numbers the only other minor benefit is that because we originate a little bit more loans and the type of loans that we had, a little bit more of deferred costs under FAS 91 rules, but it wasn't very significant.
Steve Moss -- B. Riley FBR -- Analyst
All right. Thank you very much.
Operator
[Operator Instructions] Your next question comes from the line of Gary Tenner of D.A. Davidson.
Gary Tenner -- D.A. Davidson -- Analyst
Hey, guys. Good morning.
John M. Michel -- Chief Financial Officer
Good morning, Gary.
David DePillo -- President
Good morning.
Gary Tenner -- D.A. Davidson -- Analyst
Hi, Scott. In your prepared remarks, you mentioned or maybe you're strong, I'm sorry, the mark on the hedge related to the pending loan sale and that would impact the game. You can quantify what your expectations would be as of today at least. Is that the case?
Scott F. Kavanaugh -- Chief Executive Officer
I wondered whether or not you're going to ask that question.
John M. Michel -- Chief Financial Officer
I think it was actually...
Scott F. Kavanaugh -- Chief Executive Officer
[Multiple Speakers]. So, there's been relatively few deals that have been done. I know that there is a deal that was either cries today or tomorrow. We should start to get some feedback off that. But we've had some roll off of some of the loans. We feel that that loan, but I still think we'll make some profit. It's just a function of do we think it's going to be 1%? I think the answer is, it could be less.
Gary Tenner -- D.A. Davidson -- Analyst
Okay. Just to give you a little bit of color, when we priced out the transaction and when you initially put the hedge on it, indicative credit spreads were wider than what we experienced historically. And we thought that was cash gives me relatively conservative in our estimate of a net 1% gain. However, because due to Scott's comments on relatively few transactions, the indicative spread -- credit spreads on the road of tranches appear to be much wider than what we originally estimated. However, there isn't that many transactions in the market as Scott has mentioned. So we're still waiting for more transactions to view that. But given some of the indicative credit spreads out there, they are significantly wider than what we originally modeled. And that's primarily the biggest impact. Additionally, the other impact would be in the pricing of the IO spread. The IO spread will tend to be larger given the relative coupon on the loans. So that could have a bigger discount than originally expected.
Scott F. Kavanaugh -- Chief Executive Officer
But, in all honesty, it's still a little bit of a question mark, Gary. We felt that it was at least prudent to bring up the point that we don't have the clarity that we would necessarily like at this point.
Gary Tenner -- D.A. Davidson -- Analyst
All right, fair enough. And then, kind of further to that, something that still gets done at the end of the third quarter, would your intent be to fill the bucket again if held for sale before year end?
Scott F. Kavanaugh -- Chief Executive Officer
Yeah. I don't know if you were on the phone call earlier, but I think our intention is, we will refill our unbalanced deep liquidity bucket to a certain degree. But I think at the same time, we intend at least at this moment to remix some of the securities. Take some of the 15-year path route that have been sitting on the balance sheet and move those off and make room for more of this particular deal. And in terms of the loans themselves, we would plan on putting [Indecipherable] for sale either at the end of the third quarter or fourth quarter, because basically the rules under Freddie Mac is, we have to wait a year's worth of seasoning. And so we basically got a year's worth of production ready for the next deal in 2020.
Matthew Clarke -- Piper Jaffray -- Analyst
Okay, great. Thanks, guys.
Scott F. Kavanaugh -- Chief Executive Officer
Thank you.
Operator
Your next question comes line of Don Worthington of Raymond James.
Donald Worthington -- Raymond James -- Analyst
Thank you. Good morning, everyone.
Scott F. Kavanaugh -- Chief Executive Officer
Good morning.
Donald Worthington -- Raymond James -- Analyst
Just maybe more a general question on deposit pricing, but you mentioned that the specialty deposits helped you relative to weaker flows in the retail branches. What's the just general difference in pricing between what you have to pay for specialty deposits versus retail?
Scott F. Kavanaugh -- Chief Executive Officer
In terms of the specialty deposits, they're going to be more closely aligned to current market rates out there if you're looking at incremental rates for new retail deposits there, know we're trying to track them and we're going to be attracting them at those rates. But from a historical perspective, the deposits that we already have in our branches, the increase in those have been pretty nominal.
David DePillo -- President
It depends on the type of specialty deposits. We have all time from MSRs to contract or attention to HOAs. I would say that some of the title escrow MSR, that type of stuff do tend to be there. They tend to be quicker reacting to Fed increases, and therefore that's our point that it should react to the downside when the Fed starts to reduce rates pretty well. So -- but there's other types of deposits like AB5 [Phonetic] and other things that we're taking on that are substantially less than on the mark.
John Hakopian -- President
I would say, on average, our specialty [Phonetic] tends to average at or below the marginal cost of our retail. And I think that's why Scott said that there was some de-emphasis at the branch level competing on the margin for what we would consider more volatile deposits on the retail side of it. So, we're trying to run. We effectively ran off some of that higher cost being more volatile, replaced it with specialty.
But on the margin, and there's competitors out there that at a retail basis are offering rates that are higher than what we're gathering on the specialty side. And on the specialty side, we don't have all that positive infrastructure to raise deposits. If I have a branch on average cost you about 1% and effective G&A to manage our specialty deposits for that same rate is infinitely lower on a G&A basis, it's a lot more efficient for us even with consistent rates to raise on the specialty side. There's just a lot more efficient. And to Scott's point, it is more rate sensitive on the way down so we get the immediate effect of a reprice.
Donald Worthington -- Raymond James -- Analyst
Okay, great.
Scott F. Kavanaugh -- Chief Executive Officer
Thank you.
Operator
This concludes today's question-and-answer session. I'll now turn the call back over to Mr. Scott Kavanaugh for closing comments.
Scott F. Kavanaugh -- Chief Executive Officer
Thank you, everyone, for taking the time today. We certainly appreciate it. Overall, we are pleased with our results and look forward to speaking to you next quarter. Have a great remainder of your day and thank you again.
Operator
[Operator Closing Remarks]
Duration: 36 minutes
Call participants:
Scott F. Kavanaugh -- Chief Executive Officer
John M. Michel -- Chief Financial Officer
David DePillo -- President
John Hakopian -- President
Matthew Clarke -- Piper Jaffray -- Analyst
Andrew Liesch -- Sandler O'Neill -- Analyst
Steve Moss -- B. Riley FBR -- Analyst
Gary Tenner -- D.A. Davidson -- Analyst
Donald Worthington -- Raymond James -- Analyst
