Q2 2025 Dime Community Bancshares Inc Earnings Call
Day and thank you for standing by. Welcome to the dime Community. Bank shares Inc, Q2 earnings call at this time. All participants are in a listen-only mode.
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Speaker Change: I would now like to hand the conference over to your first Speaker today.
Stuart Lubo: Stuart lubo president and CEO. Please go ahead.
Speaker Change: Good morning. Thank you, Stephen. And thank you all for joining us this morning for a quarterly earnings call with me. This morning is Abby, ready? Our CFO?
Speaker Change: In my prepared remarks, I will touch upon key highlights for the second quarter of 2025 Avi will then provide some details on the quarter and thoughts on the remainder of the year.
Speaker Change: Our core earnings power has increased significantly over the past year, core pre-tax pre-provisioning income was 49 million in the second quarter of 2025, compared to 28 million a year ago.
Avi: This translated it into a core Roa of 85 basis points for the second quarter.
Avi: Core deposits were up, 1.2 billion on a year-over-year basis.
Avi: The deposit teams hired. Since 2023 have grown their deposit portfolio to approximately 2.2 billion dollars. This has allowed us to continue to pay down our broker deposits to a fairly minimal level.
Avi: We have made significant progress in creating a core deposit funded balance sheet with ample liquidity to take advantage of lending opportunities as they arise.
Avi: Our cost of total deposits was 2.09% in the second quarter by maintaining a strong focus on cost of funds management. Our Nim has now increased for the 5th consecutive quarter and is approaching the 3% mark.
Avi: We continue to have several catalysts to continue to grow our Nim over the medium, to long term, including a significant bakbuk, replacing opportunity. Opportunity, Ivy will get back to get into that in more details in his remarks.
Avi: On a loan front, we continue to execute on our stated plan of growing business loans and managing our crew ratio.
Avi: Lower.
Avi: Business loans, grew over 110 million in the second quarter and over 370 million or 15% on a year-over-year basis.
Avi: We are starting to see the benefit of the new hires we've made over the past couple of years. Loaner Richard origination including new lines of credit increased to 400 million 450 million for the quarter.
Avi: The weighted average rate on a new origination was approximately 7%.
Avi: our loan pipeline pipelines continue to be strong and currently stand at 1.2 billion compared to approximately 1.1 billion at
Avi: at uh, quarter end, uh, in in March, and 750 million. When we reported early in January,
Avi: The weighted average rate on the pipeline is approximately 6.85%.
Avi: On on the route on our recruiting efforts disruption in the local market remains very high.
Avi: And in the second quarter, we executed on a commercial lending diversa diversification strategy. After hiring Tom Geisel on the first quarter.
Avi: We identified several several verticals that are complimentary to our existing businesses and made a number of senior hires
Avi: once they settle in, we expect these verticals to contribute to our
Avi: Growth in the fourth quarter and Beyond.
Avi: While hiring does cause an increase in near-term operating expenses. We expect all these verticals to meaningfully contribute to to the execution of our strategic goals.
Avi: In, in addition to the new new lending, verticals we made progress on getting regulatory approvals to open a new location on Lakewood New Jersey. Additionally, we expect to open a new branch of man Manhattan in the fourth quarter.
Avi: In conclusion, the momentum in our business is extremely strong and we continue to execute on our business plan of growing business, loans and core deposits.
Avi: We have clear, clearly differentiated our franchise, from our local competitors, as it relates, to our growth trajectory and the ability to attract talented bankers.
Avi: Beliefs and coupled with Organic growth across, deposits and business loans.
Avi: That will Aid in unlocking. The the inherent earnings of the dime.
Avi: I'm looking forward to the raymay remainder of 2025 and want to again, thank all our dedicated employees for their efforts in positioning dime as the best Business Bank, in New York with that. I will turn the call over to AI.
Avi: Thank you, stu Corey. PS was 64 cents per share. This represents increases of 12% on a link quarter basis and 49% on a year-over-year basis.
Avi: The reported name increased to 298. We had around 3 basis points of prepayment fees in the second quarter of excluding prepayment fees and purchase accounting. The second quarter named would have been 295 as a reminder the first quarter named excluding prepayment fees and purchase accounting was 291.
Avi: Non-b broker deposits for up approximately 210 million at June 30th versus the prior quarter.
Avi: As we continue to see strong inflows across our Branch Network and across the private and Commercial Bank, we proactively reduce the higher cost Municipal relationship by approximately 125 million in the second quarter.
Avi: Set differently. Had we not proactively reduced. This Municipal relationship. We would have grown non-brokered.
Core cash operating expenses, excluding intangible amortization and 76 expense was 59.9 Million.
Avi: The link quarter increased in expenses was primarily due to the hiring of production staff.
Avi: Non-interest income of 11.6 million reflected increased loan swap income.
Avi: We had a 9.2 million credit loss provision for the quarter and the allowance to loans, increase to 86 basis points.
Avi: Capital levels continue to grow and our common Equity, Tier 1 ratio increased to 1125 and our total Capital ratio grew to 15.8%.
Avi: Having best-in-class Capital ratios versus our local. Peer group is a competitive advantage and will allow us to take advantage of opportunities as they arise and speak to our strength and ability to service, our growing customer base.
Avi: Next, I'll provide some thoughts on guidance for the remainder of 2025.
Avi: As I mentioned previously, excluding prepayment fees, the nymph for the second quarter would have been 295.
Avi: We would use this as a starting point for modeling purposes going forward. As we don't expect the prepayment fees to repeat in that size in the upcoming quarters.
Avi: In the near term. We expect a gradual upward bias in the Nim for the third quarter with more pronounced expansion in the fourth quarter. As the asset repricing story will start to unfold with more Vigor towards the end of the year.
Avi: To give you a sense of the significant bakbuk, repricing opportunity in our adjustable and fixed rate. Loan portfolios. In the second, half of 2025 and the full year 2026. We have approximately 1.95 billion of adjustable and fixed rate loans across the loan portfolio at a weighted average rate of approximately 4.1% that either reprice or mature in that time frame.
Avi: Assuming a 2125 basis point spread on those loans. Over the forward 5 year treasury. We could see a 30 basis points increase in Nim from the repricing of these loans.
Avi: As we look into the back book for 2027, we have another 1.7 billion of loans at a weighted average rate of 425 that will lead to continued. Nim expansion in 2027.
Avi: Moving to the short end of the curve, should the Federal Reserve cut rates. We expect our previous trend of approximately 5 basis points of nim expansion. For every 25 basis point rate, cut to repeat, assuming the behavior and deposits and Loans. Hold for each subsequent rate, cut and competition remains rational.
Avi: In summary, assuming the market consensus forward, curve plays out. We have a path to a structurally higher Nim and enhanced earnings power over time.
Avi: As we approach a 3% margin, the next marker in front of us is 325. And after that 350,
Avi: it's important to note that while the destination to us is clear. The near to medium-term Nim is going to be a function of business loan growth.
Avi: We believe we have the people and verticals in place to drive strong medium to long-term business loan growth.
Avi: Along the journey. If there's a quarter of subdued growth and less remixing, it does not change the ending in Nim destination in our mind.
Avi: With respect to the balance sheet growth. We expect low single digit growth for the remainder of the year with the planned attrition in transactional. C and multi family, masked by growth in our business loan portfolio,
Avi: As we've typically done, we we will only provide guidance for 2026. Once we get into the new year,
Avi: next, I'll turn to expenses.
Avi: As a result, we are updating our core cache. Non-interest expense guidance, which excludes intangible amortization to approximately 61.5 million for the third quarter of 2025,
Avi: This updated guidance is based on our existing employee base as of the time of the earnings release.
Avi: For the third quarter, we anticipate swap fee income to be approximately half a million dollars and total non-interest income to be in the ten and a half million area.
Avi: Finally, on the tax rate. We expect the effective tax rate to be between 27 and 27 and a half percent for the third quarter.
Avi: With that, I'll turn the call back to the operator and we'll be happy to take your questions.
Avi: Thank you. At this time. We will conduct the question and answer session and as a reminder to ask a question, and you will need to press star 1, 1 1 on your telephone, and wait, for your name to be announced.
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Avi: Please stand by while we compile the Q&A roster.
Speaker Change: Our first question comes from the line of Thomas Reed of Raymond James. Your line is now open.
Thomas Reed: Hey guys, how are you? Thomas on, first, Steve, thanks for taking my question.
Speaker Change: Um, so I started off so pretty, pretty healthy uh, bump in in DDA balances here. Uh, based, uh, relative to the prior Trend, was there anything 1 time in nature is, you know, can we expect a similar trajectory there going forward?
Speaker Change: Yeah, nothing 1 time Thomas. Yeah, no. We we've had a, you know, nice uh continued strength in our retail network uh as well as our private banking groups. I mean if you look at uh,
Speaker Change: A quarter over quarter. We're still seeing you know significant amount of new accounts opened they're about 1500. New accounts opened in our private banking group, uh, quarter over quarter. Uh and and obviously you know, 3 and a half 350 to 400 million dollars in in growth quarter over quarter. We'll, you know, we're still seeing significant, you know, positive Trends, uh in, you know, in both the uh, Retail Group as well as our private banking group.
Speaker Change: Okay, good. That's good to hear. And then uh, it looks like um, the weighted average rate on the loan pipeline is down about 40 basis points, is that is that largely driven by rate movements, or are you maybe seeing a little bit more competition uh, in fighting with spreads there?
Speaker Change: No. So so the origination rate, this quarter was around 7:10. And, uh, Stu mentioned is prepared remarks at the new pipeline was around 685. So it's probably around 20 to 25 basis points. You know, some of it is, you know, just uh, you know, we're doing floating rate loans. We're getting a good spread over it, you know. It's a little bit of, you know, makeshift things like that. So, uh, nothing substantial in there but, you know, we're still pretty pretty much there, you know, very high sixes to close to 7, basically.
Okay.
Speaker Change: Okay, that's great. Uh, I'll step back in a few. Thank you for taking my questions.
Speaker Change: Thank you, thanks.
Speaker Change: Our next question comes from the line of Mark Fitzgibbon of 5% Sandler. Your line is now open.
Speaker Change: Hey guys. Um
Speaker Change: good morning for
Speaker Change: question Obby, just
Speaker Change: clarify you.
Speaker Change: 1 and a half million for operating expenses for the third quarter. Is that correct?
Speaker Change: Uh, yes. So but excluding the intangible amortization marks. So 61 and a half, plus the 200, 250 chaos for the intangible amortization. So all in it's probably 61.8.
Speaker Change: Okay, great. And then secondly, I wondered if you could remind us, you know what the impact of a 25 base Point rate cut, um means to nii uh or the margin. Um, any color on that? Yep. Yep. Sure. It's it's historically been around 5 basis points so we'd expect that to uh continue. Uh I mean, obviously if we get, you know, a bunch of gradual, 25 basis point rate Cuts with some time lag in between them.
Speaker Change: That's the most favorable environment for us to to you know, realize the full 5 basis points. So I would I would use around 5 basis points
Speaker Change: Okay, great. And then sort of at a high level. I guess. I'm curious how you all are thinking about sort of the hiring. You've, you've done a lot of hiring, uh, had some really good success in the deposit, front, and growing business. Are we getting to the point? Do you think we're expense growth and, uh, hiring start to flatten out a little bit here? Or is there still, you know, a steep trajectory there?
Speaker Change: As as you get into August and September, you then start getting into next year at that point. So I think using the Q3 run rate is plus or minus for the fourth quarter is not unreasonable, I mean, maybe up a little bit uh and then once again, in next year, we're going to have to re-evaluate. I mean, we're still in touch with, you know, some substantial deposit teams, and some substantial people on The Lending side, but it takes time to move some of these. And we're also trying to Stage these where we keep Opex in check. And, you know, we can show that we're driving the efficiency ratio down every quarter. Yeah, I I say that generally, we're, we're where we want to be, uh, you know, we, we had, uh, we had concentrated on bringing deposit teams on, uh, the last 18 months. And and then, uh, we really focused on building up the remainder of these verticals, uh, in the, you know, in the first part of this year, um, and I think we're pretty comfortable where we are today in, uh, in meeting our goals. And as you know,
Strategic goals, in terms of the verticals, we're looking at and the pipelines, uh, are starting to really build in those verticals. So, uh, you know, we're very pleased, uh, and I think uh, their those new hires are going to are going to, uh, be at break even or profitable. Very quickly based on the pipeline. We're seeing.
Speaker Change: And it's due. I'm curious that at a high level. It feels like m&a is starting to pick back up. Um, you know do do you see that as an opportunity for dime? Or are you still more internally focused right now? Um, any comments around m&a.
Speaker Change: Look, you know, there are there are if there are opportunities out there, we're certainly interested. Uh, and as you know, the the market is not, uh, you know, our Target Rich environment. So you know, we are looking at at at options and are certainly, uh, interested. But you know, just as important or more importantly, you know, we've been able to significantly grow to balance sheet and think we can continue to do that organically. But if op opportunities present themselves with you know, we will certainly uh take a look.
Speaker Change: Okay, and then lastly, um, I I guess I'm curious your thoughts on how mom Donnie Marilyn, you know, might impact your New York city multi family. Rent regulated book, you know. Uh and obviously I know you're de-emphasizing that business but um, any thoughts on sort of how you might handle that?
Well, look, you know, there's no no guarantee he's going to win. Uh, obviously the rent guidelines board is just, uh, announced, uh, new rent increases that go into effect in October. So, you know, the near there's a, not a lot of near-term, uh, concern. But obviously, uh, if, if he were to be elected and were to, you know, uh, affect the uh rent guidelines.
In such a way that uh, that rent freezes were put in place. Uh, you know, we're taking a look at that. Look, we've been through this before. We've had uh you know, several years of uh rent freezes in in New York City before. Uh, our portfolio remains very strong. Uh, you know, as as you can see, and as we reported, we still have no non-performing multifamilies. The other thing is our our rent regulated. Uh, portfolio is very granular, you know, the average loan size is about 2.8 billion dollars. And, uh, and all and, and also important that all the the pre-2019, uh, portfolio that that were subject to the, the, the changes in, in the law regarding passing on a capital expenses and increasing rents, all those zones, uh, what remains of them, which is, you know, in the 400 million dollar range, Are all, uh, have all repriced at this point and, and our, our current so
Speaker Change: Uh we're monitoring it. We've you know we've we've looked at uh you know what? It might mean to the portfolio but we we think we have a pretty strong portfolio. Good debt service coverage and uh and uh and you know and good borrowers are very granular portfolio with generational owners so uh
Speaker Change: Yeah, we're going to continue to monitor it. We'll see what happens in the election. Uh, and uh, you know we'll we'll manage through it as the as the market has managed to do it in the past.
Speaker Change: Thank you.
Speaker Change: Thanks Mom.
Speaker Change: Thank you.
Speaker Change: Our next question comes from the line of Matt. Do you Breeze of Steven zinc, your line is now open.
Matt: Hey, good morning.
Matt: Um, I was hoping you could touch a little bit on, you know, cost of deposits. It was, you know, obviously demand, deposit growth. This quarter was really solid and you continue to make
Speaker Change: Yeah, Matt same answer as last quarter. You know we're bringing in new deposits, you know, probably in the load mid 2% area. Uh we don't have a very large CD base at the bank, there's probably around 300 to 350 million of CDs that are maturing in the in the third quarter, uh, the rate on that is is probably, you know, 365 to 370. We're we're probably retaining 90% of that at 3%. So so the CD book probably gives us you know, a basis point or 2. Uh this probably, you know a basis point or 2 that we can, you know, shave off and but that'll probably be offset by, you know, new deposits coming in. So so I think, you know, growing deposits is important for us. Uh, I think apps and rate Cuts, you know, I think this is a reasonable level for us, on on deposit costs, uh, and and more of the Nim expansion story for us is on, is on the asset repricing site going forward.
Speaker Change: Great. Um, and then, on the new verticals,
Speaker Change: I think in the, in the press release and just, you know, quickly, he was, you know, corporate slash specialist in finance lender Finance, fund Finance,
Speaker Change: Could you just give us some flavor for how those how how loans are priced on on those verticals spreads over. So for and some sense for historical loss content.
Speaker Change: Yeah. Yeah, go ahead. Yeah. No, I think these are, you know, primarily floating rate assets, uh, Matt, you know, for us, so it's going to help with the, uh, you know, asset liability management profile. I would say on the, I'll start with the healthcare which you didn't ask about, but which we've been in the business. I mean, that's probably a so far plus 300 is business on the healthcare side. I think some of these other verticals I know anywhere between 250 to 300 over so far, basically, uh, you know, I'd say fun Finance. Historically has really not had any, you know, asset quality issues over time. We're really just doing subscription lines basically, which is the safest part of that business and and I think, you know, in in some of the other verticals as well, you know, we're not really seen a lot of historical loss content and we're going to do it, you know, carefully and appropriately like we did, uh, you know, with the build out of healthcare over time. So, uh, you know, we, we don't expect loss content, we're getting to see, you know, new transactions coming in and
Speaker Change: You know, we've we've built a number of different businesses, right? So you know, that's going to give us flexibility over time to, you know, pay loan growth over time. Yeah. So I I say generally the, you know, the the spreads are 2 225 to 300 in all of verticals. Uh, and uh, you know what we're seeing as I said some pretty strong uh, pipeline activities. So, you know, we're excited about that all of its, uh, basically floating rate.
Speaker Change: and then, in terms of balances, you know, if everything goes according to plan, or if you want to reference, you know, the folks who hired the prior books,
You know, 12 or 24 months from now. So what extent do you think this might impact longer? What could, what could be the potential kind of loan balances here?
Speaker Change: Yes, I think we do use Healthcare as a template map for this. So we we started that business probably 2 2 and a half years back. Uh at this point uh we're probably at around 300 to 350 million of balances on the healthcare side. So I think that's a good template, you know, for a 24 month period, I think over the slightly longer term of that. If you think about 36 to 48 months, we we'd like each of these businesses to be a half a billion dollars, you know, vertical for us. Basically, that that's how we think about it.
Speaker Change: Appreciate that. Last 1 is just
Speaker Change: Um, obvious could you update us on? Kind of uh, Reserve plans.
Speaker Change: Uh, I think the, the loan loss Reserve is up to 86 basis point. Uh, I, I think there's a a push to get it higher. Could you just kind of update us on, where you want to be by your end?
Speaker Change: yeah, so when when we you know, I think
Speaker Change: This points right now so happy, it's trended up, we're getting more in line with the, you know, uh, you know, a local PR group, National PR group type given the risk profile of our assets. So I, I would say hard to predict, you know, every quarter, if it's going to go up from here on out, but it's, it's definitely directionally. Uh, you know, we we'd like it to be in the 90 to 1% area.
Speaker Change: That's all I had. Thank you for taking my questions.
Speaker Change: Thanks man. Appreciate it.
Speaker Change: Thank you as a reminder to ask a question, you'll need to press star 1 1 on your telephone.
Our next question comes from the line of manual novice of Da Davidson and Company. Please go ahead.
Manual Novice: Hey, I appreciate the uh, color on the loan repricing Outlook. Do you have the balance is just in the second half of the year?
Speaker Change: Yeah yeah. So we have uh in the third quarter manual, there's uh probably around 400 million dollars uh at a rate of around 4% and then in the fourth quarter there's around $200 million at a rate of around 4:30. But you know it's important even at 400 million dollars, right. A lot of them are towards the end of the quarter which is why, when we give give our Nim guidance, it was you know, look, we're probably going to see more pronounced name expansion in the fourth quarter because you know, if you don't have to actually replace for you to get the benefit of it. So so the the total Quantum is around 600 and and it's split 400 and 2003 and fourth quarter.
Speaker Change: That that's great. Uh, that's really helpful. And where do you know, uh, stew discussed that the private banking group has like 1500 accounts. What are balances stand right now there
Speaker Change: 2.2 billion.
Speaker Change: And, uh, our pipelines as strong as ever. I mean, with those new accounts just kind of
Speaker Change: H, you're going to be doing some remix of the balance sheet that that keeps the balance sheet in the low single digits growth. But this deposit group still has plenty of Runway to go forward. Correct?
Speaker Change: Yeah, we think so, I mean, look, same thing. We've said, historically that we think, you know, you know, each of these groups, it's going to take 3 to 4 years for them to reach a steady state. And, you know, it's 27 is, uh, remarks, uh, you know, account openings are very strong. Uh, you know, it's similar to the pace of Prior quarters basically. And so, you know, in an individual quarter here or there, maybe up or down. But, you know, we, we really track it from an account opening and customer opening perspective and that's, that's not slowed down. Yeah. Yeah. And and, and, and, you know, on top of that, the verticals that we've brought on and and the pipeline that that's out there, uh, we're seeing significant, uh, deposit balance opportunity as well. So it's just not, uh, you know, 1 side of the balance sheet on these new verticals. So, uh, you know, we're pretty bullish on on continued growth there. Yeah, just 1 of the thing I would add is
Speaker Change: Uh, you know, a branch network has had a really, really solid first 6 months of the year, uh, you know, they've made up a lot of balances, you know, testing some stuff that was lost uh, in in 2023. So really seeing 3, different avenues for deposit growth of the private banking groups, we hired uh, the new lending verticals as well as as well as the branch Network.
Speaker Change: that's great as as you getting more and more funding and more opportunities uh,
Speaker Change: Where could load growth get to respect with all the with all the verticals, like in 26 and 27. Uh, you do have some of the repricing come at the same time, but like, where could loan growth get uh longer term.
Yeah, we if this is an indirect way of asking us for guidance for 26, we're going to stay away from that. Uh, look, I think you know, Matt asked a question, where do we think these verticals could be over time, right? And and, and each of these, you know, you know, in the medium to long run, we'd want them to be 300 to 500 million verticals. Uh, you know, we're going to see some attrition on the transactional crease side. But you know, there's there's no reason we should not be a mid to high single digits growth bank once, you know, the the crew ratio gets to a level that, you know, we we want it to be at uh, the near term as we said earlier, we're managing the 3 ratio to get down to around 400%, by year end. And, you know, we're pretty much there at this point, right? So it's really a tale of 2, balance sheets with the, with the Creed that were reduced.
Speaker Change: Boosting, but then medium to longer term. I think mid to high single digits is a, is a good number for the bank.
Speaker Change: Okay, I appreciate that. Thank you very much.
Manual Novice: Thanks manual.
Speaker Change: Thank you.
Speaker Change: Our next question comes from the line of David Conrad of KBW. Your line is now, open.
Speaker Change: A really strong here, north of 11% C1. You got an improving profitability coming next year but I guess it still sounds like the the number 1 priority is is the organic growth of the business rather than anything your term in terms of capital deployment or return to shareholders.
Speaker Change: yeah, David that that
Speaker Change: fair uh, you know, in our last earnings call
Speaker Change: You know, responses pretty similar right now. I mean, just I mean, obviously still a little bit of uncertainty with tariffs. Uh, you know, we've had a lot of productive, you know, teams right now what we said is, you know, when we get to the end of the year, you know, early 2026, we're going to re-evaluate, uh, you know, the buyback things like that. I mean, from a pure Corporate Finance perspective, you know, you know, it's we feel our stock is very undervalued at this point, but at the same time we do think having Capital ratios higher than, you know, pretty much everybody in our local peer group is a big competitive Advantage. You know, as we as we go after new new verticals. So I'd say in the in the Neo term, uh, you know, we'd like would you know happy to be a creating capital. I think in the medium to longer term, we as we've shown in the past we've we've distributed Capital to shareholders when we can
Speaker Change: Okay, thank you.
Speaker Change: All right, I'm showing no further questions at this time.
Speaker Change: Actually, we do have 1 more in the queue here. Um,
Matthew Breeze: all right, we have Matthew Breeze returning from Stevens Inc. Please go ahead.
Matthew Breeze: Hey guys, I just 1 more um Obby could you help me out with cash cash, equivalents liquidity deployment strategy? You know, you're sitting on, you know, just a lot of cash here, curious.
Matthew Breeze: Where you feel comfortable bringing it down to and and some sensor timing. Thanks.
Matthew Breeze: Yeah, I think I think in the near term we've we've we're not focused on buying Securities, Matt, uh, you know, it it it if we did decide to do so there certainly would be a boost to Nim and the Boost to you know, net interest income. But you know what, we're trying to run the balance sheet for the more medium to longer term. I think, over the medium to longer term, you know, a lot of the cash would probably be redeployed into some of the new Landing verticals that were in, uh, I loan a deposit ratio as you know, 91 to 92% were very comfortable between that 90 to 95. So, I'd say, in, in the medium to longer term. We'd we'd like a lot of that to go into, uh, you know, some of the cni, uh, items that were focused on which are floating rate assets, but I'd say in the near to, uh, 1, not out there buying Securities and and, you know, changing the
Matthew Breeze: Alm profile is something different than than what we want to do. So we are giving up some earnings in the near term but I think we're creating a balance sheet that, uh, you know, will have a structurally higher Nim over time and set us up for different rate environments by by keeping the cash position where it is. Yeah. And what we're seeing in the pipeline with, uh, the existing existing verticals and the teams we brought on plus with the the new verticals. Uh, you know, we think that we can quickly deploy, uh, over the next uh, you know,
Matthew Breeze: 6 to 9 months, uh, excess liquidity. So uh, you know, at at meaningful uh, Nim improvements. So you know, that's a review as to as to our current cash
Matthew Breeze: boost.
Matthew Breeze: Great, I appreciate it. Thank you for taking all my questions.
Speaker Change: Thanks man.
Speaker Change: Thank you. I'm showing no further questions at this time. I would now like to turn it back to Stuart lubo for closing remarks.
Stuart Lubo: Thank you, Stephen. And thank you all uh, to our dedicated employees, our shareholders for their continued support. And we look forward to speaking with you. After our third quarter.
Stuart Lubo: Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect