CapStar Financial Holdings, Inc. (NASDAQ:CSTR) Q2 2023 Earnings Call Transcript

Mike Fowler: Yes. For the second quarter, I’ll quick comment, and then I’ll let Chris add, the mortgage expenses were $1.5 million in the second quarter. And they are down about $320,000 from same quarter a year ago due to some of the actions — due to some of the incentive declines, but also due to some proactive management of expenses. And Chris is in the mortgage business.

Chris Tietz: Yes. And Feddie, I’ll point out, we have historically been a top five or top 10 originator, particularly in the Nashville MSA. We believe that that’s a franchise that has value, particularly with the robust — given that we do purchase money transactions, not refi, we believe that that’s an important franchise. And so, as I indicated earlier, while we have paired some overhead in the mortgage group over the course of the last handful of quarters, including recently, our primary objective right now is to leverage the skilled team and the overhead we have with more origination capacity and that will either work or won’t, and then we have the discretion of addressing that if it doesn’t.

Feddie Strickland: Understood. That makes sense. That’s all I had. Thanks for the color guys.

Tim Schools: Thank you, Feddie.

Operator: Thank you. And I’m currently showing no further questions at this time. I would like to turn the call back over to Tim Schools for closing remarks.

Tim Schools: Okay. That’s all we have. We appreciate everybody, and hope everybody has a good weekend. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.