Welcome to Wintrust Financial Corporation's Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following review of the results by Edward Wehmer, Chief Executive Officer and President; and David Dykstra, Senior Executive Vice President and Chief Operating Officer, there will be a formal question-and-answer session. During the course of today's call, Wintrust's management may make statements that constitute projections, expectations, beliefs or similar forward-looking statements. Actual results could differ materially from the results anticipated or projected in any such forward-looking statements. The company's forward-looking assumptions that could cause the actual results to differ materially from the information discussed during this call are detailed in the third quarter 2018 earnings press release and in the company's most recent Form 10-K and any subsequent filings on file with the SEC. As a reminder, this conference call is being recorded. I would now turn the conference call over to Mr. Edward Wehmer.

Good morning everybody and welcome to our third quarter earnings call. With me, as always, are Mr. Dykstra, Kate Boege, our Legal Council -- our General Council; and Dave Stoehr, our Chief Financial Officer. We'll use our usual format with me giving some general comments on our results. Turn over to Dave for more detailed analysis of other income, other expenses, and taxes. Back to me for some summary comments about -- and thoughts about the future. And then turn over for some questions. So, we're pleased to report our 11th straight quarter of record earnings. Net income of almost $92 million or a $1.57 a share. We're almost 40% better than last year. Pretax earnings, which we look at to take out the effect of the tax cuts, were $122 million, up 18% from last -- the same quarter last year. Year-to-date basis were $4.50 a share, up 28% on annualized basis and 20% on earnings at $264 million approximately. Pretax income up 16.5% to $352 million. Our margin decreased by two basis points, ROA was 1.24%, and all-in-all pretty good results. As readily apparent our growth trends remain consistently positive. Few blips this quarter which will lead some discussion and clarification, specifically net interest margin dropping two basis points, one-time charges related to completed acquisition of Delaware Place Bank, and the moderate respective increase in NPL. These issues will be discussed in detail. Turning [ph] to the margin, the net interest margin decreased two basis points over the second quarter and increased 15 basis points year-over-year. Net interest income grew $9.4 million over the second quarter to one more day, good earning asset growth including our loans. Average earning assets grew $880 million versus the second quarter. Average loans net of loans held for sale grew $539 million,…

Thanks Ed. As normal, I'll touch briefly on the non-interest income and non-interest expense sections. In non-interest income section, our wealth management revenue held steady at $22.6 million in both the third and the second quarters of this year compared -- and was up from the $19.8 million recorded in the year ago quarter. Brokerage revenue was down approximately $205, while cuts and asset management revenue offset that decline by increasing $220,000. Overall, as Ed mentioned, we believe the third quarter was another solid quarter for our wealth management segment. Mortgage banking revenue increased approximately 5% or $2.2 million to $42 million in the third quarter from $39.8 million recorded in the second quarter and was also up from the $28.2 million recorded in the third quarter of last year. The increase in this categories revenue from the prior quarter resulted primarily from loans originated and sold during the quarter offset by slightly lower production margins and slightly higher origination volumes. The company originated approximately $1.2 billion of mortgage loans in the third quarter of 2018. This compares to $1.1 billion of originations on the prior quarter and $1.0 million of mortgage loans originated in the third quarter of last year. The $56 million increase in origination was attributable to $187 million increase in our correspondent origination channel offset by lower volumes in our retail origination channel. Originations related to Veterans First consumer direct origination channel was essentially flat with the prior quarter. The mix shift contributed the margin compression as margins on correspondent originations are lower than our retail origination business. Additionally, the mix of loan volume related to purchased home activity was approximately 76% compared to 80% in the prior quarter. Page 22 of our third quarter earnings release provides a detailed compilation of the components of the…

Thanks Dave. Summary and some thoughts about the future. All-in-all, a very good quarter for Wintrust on all fronts. Momentum continues across the Board. Reduced taxes and higher interest rates have been beneficial to us. According to the [Indiscernible] growth well for the future earnings and growth in franchise value. As I mentioned, we do not see the mini-blip in credit as a trend, but as stated credit can't be as good as it's been forever. We continue our habit of reviewing the portfolio for weaknesses and addressing them expeditiously. In some perverted way I'm kind of happy that we're off the bottom because the only place to go is up a little bit and this is a very controlled way to go up and it's fitting and fits our culture very well. But we -- certainly we don't see this as a trend that you never know credit is credit, we're going to stay on top of it. We're pushing our organic growth agenda as acquisitions, in general, become relatively expensive, yet regardless of number of new branches planned over the next 18 months, the neighborhoods and our designated marketer were currently not present. Our retail and small business marketing programs which we embarked on in earnest beginning this year are working, employing new accounts and new relationships. As stated earlier, this does not mean we're not investigating potential business combinations in all the areas around business, but also as talked about previous calls, gestation periods of these deals has become a lot longer. We remain well-positioned interest rates and are prepared to protect the downside as rates rise by gradually decreasing our overall interest rate sensitivity. Loan growth has been good and pipelines remain strong. We continue to look at opportunities to further diversify our portfolio. We are…

[Operator Instructions] And our first question comes from Jon Arfstrom of RBC Capital Markets. Your line is now open.

Thanks. Good morning.

Good morning Jon.

Couple of questions here. I guess to start on mortgage, how do you want us to think about that for Q4? And also into 2019, do you view this as a profitability headwind or some of this efficiency potential you talk about is it not so much of a headwind when we think about Q4 in 2019?

If we're able to maintain the volumes, which we have, we think that prices have been -- the margins have been squeezed because too many producers chasing not enough loans, the economy stays strong. We believe that housing will continue to pick-up. And our efficiency moves are -- should help us in the overall profitability of the product. So, these efficiency moves are actually relatively material. The zoom -- our front-end zoom, call it, our Rocket Mortgage, is should be fully deployed. We haven’t put that out in that retail wise, but we will be doing that in the first quarter. We've used it as our own internal front-end. Its two to three days out of processing there. We also are finding ways to cut other processing costs by almost 50%. Not all of them, but a lot of them, by using different outsourced companies. So, we believe that it will be volume-related but the volumes we get, the margins on that, the overall profitability should be increasing from where they are now.

Okay. Dave anything on 4Q? How do you want us to think about 4Q?

Well, I think it will be -- again, we'll just have to see where rates go and what the home purchasing as we've seen the pipelines decrease a little bit here as we get into the fourth quarter seasonality and rates did pop-up a little bit. Now they have come down and they've popped up a little bit again today. So, we'll have to see how that builds. But my guess is the volumes will probably did decline to something below $1 billion. But we close these things relatively quickly now, so you only have a vision out 30, 40 days in reality is that's how your pipelines are because we're closing them and that about 40 day period of time. So, love to see how they continue to grow here. But our expectation is that they will be down. But we're also cognizant of accordion -- and expenses accordingly as those volumes come down. So, I don't think it's going to be a major impact to the net earnings because if you pay out roughly half of that in compensation type of volume and we have other expenses associated. So what falls to the bottom-line is not extraordinarily material, but we do think the volumes will be down. So, whether it's $850 million, $900 million would be my guess right now, but it's possible it could be slightly more than that with me being a little conservative here I think.

Okay. Okay, good. And then just maybe a bigger picture question for you or Dave. Just the loan growth environment and earnings growth environment, I think we can all maybe set aside mortgage, but do you see any threats to your ability to keep this going this kind of high single-digit type loan growth and earnings growth pace?

It’s always threats out there. We are seeing some -- well, we use a better term idiocy and pricing on commercial real estate deals. In our opinion, we're all saying insurance companies come back strongly. We also see a number of the construction projects we were involved with getting paid off and refinanced out. So, that will be an issue. The private equity side, as I said earlier, we're seeing huge prices in private equity deals and the areas and the cherries of the world are supporting this with loan terms that we won't even come close to in terms of air balls, et cetera, and pricing. They have the ability to withstand time not being regulated. After 90 days, they can stay if they not turn it on that accrual. So, they -- maybe they're smarter than most, I don't know, but seems to me that that's a very frothy market. That being said we're diversifying now that we're seeing growth in the leasing portfolio. We're seeing growth in the life insurance portfolio, premium finance. We're also seeing good growth in the commercial premium finance. One thing that occurred there was for the last two or three years, we've been subjected to an even playing field there where we were, as a bank, were required to go out and get TIN numbers on commercial borrowers and for the first couple of years of this, we were required to do, but by the Fed, but the Fed was -- different Fed offices weren't even applying it across the Board. So, we were at a competitive disadvantage there to the non-banks and to some of the other banks. We were losing probably -- we had a fight to keep where we are right now. We lost a lot of smaller agents in that process that had better yields and better late fees because they don't want to collect TIN numbers. So, to the work of Dave Dykstra, Kate Boege and a little bit of me and Frank Burke, and Mark Steenberg of the Premium Finance Company, over the two years, we initiated and then we worked with the industry itself with -- as we brought in Congressman, Senators, Mr. Dykstra went to Washington. He's a fine lobbyist by the way. Met with sterling [ph] and Shelby and as the beginning of October or September?

September.

September, that law was changed. We know we are not required to get TIN numbers anymore. So, we are coming back with a vengeance to regain those lost share and we're blitzkrieging right now as we like to call it. We're getting all -- trying to get all our clients back. We had some successes already doing that. So, we believe that that program should do very well for us making up for some of the losses we're seeing in some of the other areas. On the commercial side, we still see there's good growth out there. We continue to get a lot of advance and winning our share of deals. That market was kind of primed; it's been for a long time priced about as low as it's ever going to be priced. So, we don't see that getting stupid right now. Actually, it's kind of -- I guess that seems like the new norm, but -- so that growth has been pretty good. So, when you think about it it's something's work, somethings don't. That's the beauty of being as diversified as we are. So, -- and on the deposit side, we are having good success, we have good momentum there. Do we pay up a little bit for to bring in new accounts? Yes, we do use teaser rates to bring people in. On the retail side, bring their deposit relationships in. We're able to rifle shoot that and shotgun it because of our structure and how we brand that we can rifle shoot it into a specific inefficient branch or a new branch and that will -- that has caused our rates to go up there. But at the same time, if you look at -- we might -- our margin about two basis points, but…

Okay. So, continuation of the current trends maybe some modest lift in the margin over time is basically the message.

Yes, it's just overtime because like this quarter was a timing issue. We lost a couple of basis points. We picked up -- if you look at on average of $1.5 billion in deposits quarter-over-quarter. So, we’re not going to do that all at once, we're going to time it and get in and if we had invested all, our margin would have been up and we won't be having this conversation, but we're going to just be gentle on this and take our time. And again we've put up a nice record quarter, so it's all about balance in that regard.

Okay. Okay. Thanks a lot.

Thank you. And our next question comes from Brad Milsaps of Sandler O'Neill. Your line is now open.

Hey good morning guys.

Hey Brad, how are you?

Good. Good. Dave just wanted to follow-up on the mortgage, kind of, some of the servicing line items that you guys disclose on page 22. Some of those numbers or maybe had a bigger increase maybe than I thought, anything in there in your mind that you kind of call out that that wouldn't be run rate? Just kind of curious on how best to sort of think about that the go-forward on some of those other line items. I kind of feel pretty good about the origination side, but I just want to get your sense on some of those other items?

Well, the MSR fair value adjustment is really going to be tied to rates. I mean if rates -- if the longer rates go up, I think you'll continue to see that portfolio price up. And we sort of look at that as a hedged to the production volumes to a certain extent, as rates go up, we generally lose some production volume, but you gain on the MSR valuation side. So, that will be tied to the rate. So, if rates do go up and stay up in the fourth quarter and your volume at the end of the quarter, so it really depends on where they are at the end of the quarter. And I would expect that that number would continue to trend up. MSR capitalization just how many loans do we retain the servicing on and we retain a little bit more of those loans this quarter than the prior quarter. But we continue to retain that servicing, so I think that that number would stay up as a little bit a tradeoff there that we retain the servicing if you have a little bit less on the gain on sale but you have more on the servicing side. So, if you didn't retain it, the geography would just flip back to the production revenue line a little bit more. But I think all-in-all, those -- and servicing should continue to trend up as we retain more of that servicing as far as servicing income per se. So, I think it's just volume-driven here as to where those numbers are going to be. So, I'm pretty consistent as far as overall revenue relative to volumes I think.

Okay, great. That's helpful. And Ed just to kind of follow-up on loan growth. Do you guys -- do you consider yourself based on the market that's out there still kind of in that -- kind of high single-digit type loan growth, kind of, looking out as far as you can see anyway?

Well, I don't try to see very far when it comes to that because we don't want to set goals out there that would make people be squishy on their underwriting. But yes, for the next quarter at least and probably the two quarters, we feel pretty good about where loan growth is. We don't know about is payoffs because our loan growth really -- you'll get net new loan growth and new relationships coming into the quarter is actually very good. We're getting a lot of payoffs. So, if payoffs continue to accelerate due to people just doing dumb things, then we'll bear that burden. But I can't control that. I'm not going to chase those deals. We're not going to chase those deals. If they leave and they don't fit our underwriting or profitability parameters, we're not going to do them. But in terms of new loan growth, yes, I think we're doing just fine. And I'm really kind of excited about what we're doing on net premium finance side to get our mojo back there. But I'll be in offensive, we're not playing defense all the time. As you know I'd like to be offensive as people will tell you.

And Brad pipelines are consistently strong and third quarter tends to be a little softer because of the just people on vacation and the like customers and the like and fourth quarter tends to pick back up. But we're really not seen any major degradation of our pipeline. So, we're optimistic that that can still continue forward.

Great. Thank you.

Thank you. And our next question comes from Chris McGratty of KBW. Your line is now open.

Morning. Thanks for the question. Dave if I could just start on the margin -- go back to the margin for a second, so this quarter was 3.61% and there was -- you called out two basis point from liquidity. Is the right way to think about given where LIBOR is now versus last quarter, 3.63% star and then maybe a couple basis points per quarter based on your balance sheet setup because I think most banks are enjoying less incremental benefit from each high, I mean your last few quarters, you were getting you know five, six basis points per quarter of expansion. Is that the right message you're trying to tell on the margin, like low 3.60% is probably heading to 3.70% over the course of 2019?

I think that's probably generally right. Like you said we've taken our interest bearing cash, just an incremental piece that we put on this quarter that if we would have invested there, the margin would have been basically flat, the two basis points. Have we taken some of that even more liquidity that we have there that we've been waiting to invest, the margin actually would have been up. So, as we continue to leg into this and as Ed said, this really depends on rates where rates are at, how fast we do it. But if we continue to do a couple hundred million dollars of that liquidity a quarter and then we get the tailwinds on some of the repricing like on the life portfolio, life insurance, premium finance portfolio those are tied to 12 month LIBOR and they are repriced once a year and the premium finance loans the commercial side our fixed rate and nine month pay out type of loans. So, it really takes almost a year for those to fully reprice also. So, we do have some tailwinds there. We were fairly aggressive with our new branch openings and as I said on average up about a $1.5 billion in deposits in the quarter. So, some of that the special pricing that we had on those deposits, that's not going to continue at that same rate going forward most likely. And the new ones -- but we had a $1 billion in the second quarter just itself. So, that that might moderate a little bit. But the other thing with those specials as rates continued to go up, those specials, we -- they're not as high rates anymore. So, we gave a CD rate back then and rates go up 75 basis points. Those special rates are more like normal rates now. So, yes, I think you blocked those in for a little bit of time on our specials, so those rates go up, you'll benefit on those deposits. So, I think we look at it that way. If we can get a couple basis points a quarter increase two or three or depending on rates obviously, that would be our goal. It's just -- as that's a gradually grind the margin up.

Hey, maybe you can tell us, where is the tenure going to be at the end of this year and at the end -- the next year, what do you think?

I'll follow-up with you on that one.

You could ask us questions?

The one way street here. If I could sneak one more in on the mortgage comments, the expenses that you said would be kind of the right-sizing by the first quarter. Is that -- is the goal with that process improvement to get that one -- to get to a 1.50% overhead ratio in 90, is that something maybe on a quarterly basis you can get to with the changes that you're making the business?

Well, that's part of it. But there's obviously a lot of growth, a lot of expenses related opening up these branches that we're putting on them -- we've been putting in the network. So, it's a balance of that that will help obviously. But there's other growth trying out our inefficient branches with the deposits and building these new ones will help us get that, somewhat of a growth issue. Any deposits -- any cost we can cut, we'll cut. But when you think about why we flipped the switch from acquisitions to organic, you do an acquisition, you can overpay and it goes in the goodwill and you probably do it yourself so you give away some earnings. We're taking much less of that, but we're taking -- it's more cost efficient to do what we're doing right now, but it runs through the income statement. So, we have to balance that and that's what we're trying to do is balance that to get to that 1.50%. 1.50% is a goal, that's an aspiration, something we've beat up everybody on. But there are certain opportunities we take advantage of where we top above it and we deal with that. But that's the goal and that's -- number of our banks are operating. We've got some banks operating on 1% in net overhead ratios. So, as they get larger, they're able to do that. So, it's all about growth and controlling costs, but probably getting it -- the overall effect will be growth more than the cost cuts. So, we're going to do both to get to the 1.50%

Got it. Got it. Thanks for the color. And Dave on the tax rate Q3 a good run rate for prospective?

Q3 was probably a little bit low, we had some true-ups with the final adjustments from the tax reform in about a year to get all those through and as we get clarity on some issues we got a little bit of benefit. I would still think that it would -- I would think it would be more than 20s -- low 26 range is more of a normal rate to look at.

Great. Thanks a lot.

Thank you. And our next question comes from Terry McEvoy of Stephens. Your line is now open.

Hi, thanks. Good morning guys. In the press you called out --

Terry, what do you think the tenure is going to be?

I'll have to take that offline as well. I was hoping you would ask. The two basis point impact of just excess cash was called out on the call and in the release, was the NIM impacted off from just the LIBOR not moving as expected during the third quarter? And if so, any thoughts on what that impact was?

We haven't calculated the impact, but clearly the 30-day LIBOR as everybody knows as we've actually showing in the chart on page 20 of our press release has stayed fairly flat for most of the quarter and then started to pump up a little at the end of the quarter. And we've got -- in our portfolio; we've got about $7.7 billion worth of loans that are tied to that 30-day LIBOR rate. So, it did have a little bit of headwind for us and I assume most banks that have any portfolio of size that's tied to the 30-day LIBOR, but it did pop-up a little bit at the end of the quarter which should be helpful running into the fourth quarter. But yes, that did create a little bit of the headwind. The depositors don't really look at LIBOR, the retail depositors. So, the flattening on the LIBOR curve really didn't change their expectations, but it certainly did change -- hold down the pricing on the loans for a good portion of the quarter.

Okay. Yes, that's what I was getting at. Thank you. And then just as a follow-up, CD balances are up a $1 billion year-to-date and average balances were up $600 million, $700 million. Can you talk about where those customers are coming from? Is it within the existing branches or are they new customers walking in the door -- existing customers? And then Ed you mentioned kind of cross-selling those new customers, how do you quantify that in specific products where do you see some upside?

Well, most of those are new customers as we -- we opened new branches and we target the inefficient branches, we offer a bundled package of accounts, give you your checking account, the safe deposit backs, home equity line, and you get a teaser account with that, it's usually a CD. So, you open all those up. So, it's mostly new accounts I would say. And then once you get them in your cross-sell into wealth management and anything else you can think of. So, it's consistent to what we did back before 2006 when we were mostly organically driven before we went -- when the market gave us those are well-priced acquisitions. So, it's consistent what we did in the past and that's how we grew this thing to be where it is gaining deposit market share. So, if you go back and you look way back when we had a lot of CDs on the books because of the way we were growing and then it was down to basically nothing, now we're using those as teaser rates to grow again.

Great.

Does that make sense?

Thanks guys. It does, yes, definitely make sense. Thanks guys.

Thank you.

Thank you. And our next question comes from Nathan Race of Piper Jaffray. Your line is now open.

Hey guys. Good morning.

Good morning Nathan.

Going back to the last question from Terry in terms of deposit, growth strategies, and pricing, just curious as you guys look to get your own loan to deposit ratio back towards 90%, do you expect the deposit beta that you had in this quarter kind of persists as the fight continues very short-term rates or do you think this was kind of more of a one-off increase, just given some of promotional activities that you guys took on this quarter?

Well, the new branch impact -- well, overall, -- let me get this right. Cycle-to-date, our total deposit betas 33%, not bad, but it's popped up a little. We expect that in aggregate to end up in the 40% to 50% range. So, if you're 33% now, it's going to be higher to get to that number on the cycle-to-date basis. So, we would expect the -- our overall beta without new branches this quarter was 62%, without branches, so the rest of it was the new branches coming on, the way we look at it. So, I think you have to view it in the aggregate and say as rates continue to rise, we're going to go to closer to 40% to 50% beta -- hopefully closer to 40% which is -- always it's been our number in the past. But that will mean that it should stay about the same as we go through this growth spurt and rates continue to go up. Fortunately, when you price like -- when you're funded like we have with retail deposits, you start hitting caps like the spread -- the decompression that takes place in money market and savings and some of those kind of get caps at a point in time. We don't have to raise those anymore at all, especially on the savings side, which believe or not, savings accounts have passbook still sell number of the new neighborhoods we're moving into in Chicago and Milwaukee. That's a good solid core base for us. So, we're going to continue to push those and we expect to end up like where I said, 40% to 50%, hopefully closer to 40%.

Got it, that's helpful. Thanks Ed. And just kind of changed gears a little bit and thinking about capital total capital kind of tick down that ratio in the quarter. I think historically you guys want to stay above 11.5% or 11%. So, Ed just curious to get to kind of your thoughts on capital planning and obviously within the context of potential acquisition opportunities, obviously, we saw one bank acquisition announcement here in Chicago last night. So, just curious to get kind of your updated thoughts on where you guys are seeing more opportunities versus maybe Wisconsin and here in Chicago?

Well, the capital front, I don't know was down just to hear if you're making the $90 plus million that we made this quarter and you extend that out going forward, generally that should support our internal growth fairly well. So, I would expect it to sort of stay in that range barring some acquisitions or outsized growth, but you're right, if that number starts to tick down into 11.5% range -- towards that range, we would look to do more, but currently barring any sizable acquisitions, we think we can be self-sufficient.

Got it. And Ed any thoughts on acquisition opportunities or any current thoughts on what you're seeing?

Well, we -- let me put this way. We tell us this to investment bankers. Our landing pattern is full of opportunities, but I don't know if they're all going to land. Gestation periods are longer, expectations are higher, and it's in all areas of our business. So, we continue to be very busy in that regard, but we're going to be very selective and if that makes sense financially and geographically for us strategically on the banking side and on the wealth management side or on specialty finance side. So, some like in specialty finance and a number of -- we've looked at a number of different companies, it's better to start from scratch really when you look at what the price expectations are right now. So, we continue to look. We've shown a lot of opportunities, particularly spectating what goes on in our market area; we've taken a look at. But we're very selective in where we want to go what we want to do. So, like I said, don't be surprised if we do something, but don't be surprised if we don't either.

Got it. I appreciate the color guys.

Thank you.

Thank you. [Operator Instructions] And our next question comes from Brock Vanderbilt of UBS. Your line is now open.

Great. So, are you likely to maintain this pace of branch acquisitions or branch expansions in 2019 or step off the gas somewhat?

We are likely to maintain maybe not -- 10 or 12, but certainly five, six, seven something like that next year. We announced we're gradually opening a branch in Naples, Florida to get everybody who is running away from Chicago these days. That will open the beginning of next year, simply a convenience branch. This is not -- just to make it very clear, this is not a move to Florida by Wintrust, this is to accommodate our Chicago customers who are snow bunnies and live down there, changed residence on their whatever. We think actually we should do very well down there just with the Chicago transplants and snow bunnies that are there. So, we are -- it's a very small branch for us, but things like that we're doing strategically to maintain those customers. They came really as a response to our customers asking us to do it. But Milwaukee is going very well for us and we continue to build out up there. We expect a couple of branches up there and we have a number of opportunities here as we fill out our franchise throughout Chicago. So, yes, I would imagine we would open six to eight next year on the plans, but that's the plan at least right now. And again as probably what the market gives us. We did all of these acquisitions, we didn't have a choice of where they are all strategic, but they left holes in our market that we need to fill. So, that's taking this opportunity to do that right now, especially as we continue to be growing and making more money, we can make that investment and still balance our net overhead ratio accordingly.

Okay. And separately on mortgage, I know you've bolted on a number of parts of the business and servicing origination over time. Is this -- what we see is what we get here or are there missing pieces in your -- from your perspective that still exist? And are most of the efficiency gains already been scored or are we still early in that process?

I think what you see is what you get. I think we've got some like they watched all the pieces are in place here. We've been able to fix our product mix to get more government loans, which obviously have higher margins to the Veterans First acquisition. They also have different distribution model which is something we hope to migrate into our current system over time. But, so I think what you see is what you get as it relates to the infrastructure or the footprint that we have. But you've not seen the results of the efficiency moves, the resume mortgage as we get that out of and take more mortgages as house deals as opposed to coming through a broker. The efficiencies are that the two to three days you've seen that pop-in, two to three days less processing time by using zoom, but you've not seen the backroom efficiencies that should be coming in January and henceforth that we can cut a lot of the costs related to -- and make them more variable as it by outsourcing. So, you've not seen the majority of the efficiencies in the process in the current infrastructure we have -- haven't seen that yet.

Great, very helpful. Thank you.

Thank you. And that concludes our question-and-answer session for today. I'd like to turn the conference back over to Mr. Wehmer for any closing remarks.

Thank you everybody. Again another record quarter for Wintrust. The market doesn't seem to like record quarters, but nothing we can do about that other than continue to build our earnings double-digits, continue to build our franchise the way we have in the past which is conservative, and focused on shareholder value. And we intend to continue to do that and we'll talk to you all next quarter. Do you have any other questions, please feel free to call Dave for me. Thanks.

Ladies and gentlemen, thank you for participating in today's conference call. This does conclude the program and you may all disconnect. Everyone, have a great day.