Prosperity Bancshares (PB) 26 Oct 222022 Q3 Earnings call transcript

Good day, and welcome to the Prosperity Bancshares Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Charlotte Rasche. Please go ahead.

you. Thank and Conference to Call. ladies Quarter Bancshares and Earnings XXXX gentlemen, morning, Prosperity welcome Third Good replay few This the and for Internet is at the call being prosperitybankusa.com will broadcast be weeks. live over for next available I'm Bancshares. General Charlotte Counsel Rasche, Prosperity of is me Chief Zalman, Senior And Executive today Chairman H.E. Officer; here David with and Officer; President of Osmonov, Officer; Officer; Operating Randy Strategy; Chief Lending Tim Asylbek Officer; Dowdell, President. Safady, Chief Chief Timanus Executive Jr., Director Vice and Eddie Karnes, Mays Chief and Bob Credit Merle Financial Corporate Chairman; Chairman; Davenport, Kevin Hanigan, Vice Hester, will David the recent off Zalman for lead of with a quarter. highlights review the quality. will our Asylbek recent He who Osmonov of and statistics; review asset Tim Timanus, some lending by followed financial our will who be discuss will including activities,

for Finally, the will open call questions. we

call, may instructions moderator. by following interested be by the live parties our the provided participate call will that During

make begin, securities involve matters statements. presentation or in this let and by other future we may of purposes known Certain the results actual results Before forward-looking the different the the me such, usual may discussed Prosperity factors, and performance be performance for as and of constitute of the or may disclaimers. expressed unknown cause statements or laws, Bancshares forward-looking from which such to risks, federal uncertainties materially implied

expressly Securities filed entirety in statements. are forward-looking the concerning statements we factors with and statements forward-looking the SEC. can XX-K with qualified those Exchange be cautionary by to in Bancshares' these and the All be Forms than filings XX-Q, information Additional in reports different that could results Commission, cause have their statements materially other found Prosperity including actual and

to the turn call me Zalman. David let Now over

assets and time third Inc., definitive Bancshares to signing everyone Prosperity. Texas, State Lubbock. Lubbock, we welcome #X a Texas. On and for the in of and market is in pro a Star Texas located Charlotte. quarter forma On our have merger exciting the and share market Inc., an headquartered you, market Midland the Lone combined our Bancshares, First West of agreement headquartered thank Thank in #X in XX, the Texas conference announced in October call. will markets XXXX we Odessa share This basis, billion to Midland, I'd listening in like $X with over and

the success quarter in We increase $X.XX declared XXXX fourth announced a the also reflects of X% to This a in recently the the serve. that has XXXX. with company represents Directors of compared dividend our we and The continuing Board Board to the the increase in share. in increase voted dividends XXXX confidence communities

XX, with X.XX% Our the with XXXX, income ended of for XX, in basis the for X.X% X common compared Our on 'XX. and On return earnings September months X.X% increased with metrics tangible September and X and the XXXX, XX, with X.XX% for a third of on the interest the per continues on the return of The was XXXX. or XXXX, months operating XXXX. quarter quarter quarter period million XXXX. third equivalent The X.XX% assets a XX, basis, million net the ending to quarter margin ended was recorded net diluted share income same $X.X net a X.X% $X.XX the income exhibit period September of quarter compared the for Prosperity in tax equity second compared same XXXX of for XXXX quarter $X.XX solid net million in $XXX.X increase. period linked June same XX.X% for compared $XXX.X for for ending

X.X%. were loans XXXX, loans, or the to an increase $XXX purchase September on Excluding $XX.X September compared XXXX, of PPP XX, on million XX, billion $XX.X warehouse program and billion

$XXX increased quarter growth. We linked $XX XXXX. warehouse the the loan have Our loans of and on expected of X.X%, lot XX, first did in growth loans excluding XX.X% have not We program billion a XXXX. annualized from do million not PPP June quarter or loan purchase we

However, and billion, stronger. on been in million the second quarters with on were $XX.X XXXX, X.X% of September third decrease XX, much growth a has XXXX. or compared the loan $XX.X XX, September $XXX billion Deposits

Our on or XXXX. X.X% deposits linked billion quarter XX, decreased $XX.X $XXX from million June

primarily receive by Our a linked basis, On linked are deposits quarter noninterest-bearing core decreased million. public $XXX but seasonality. our experiences deposits seasonality And fund quarter Prosperity and slightly deposits year-over-year due lower total to fund higher, generally the increased third its deposits year. and throughout balances in of fund resulting public quarters with the public January as they in and the in tax deposit year, December dollars the use customers second

points funds, addition asset to have of $XX points June funds the their September with as their or of $XX.X X average totaled customers to nonperforming in higher-yielding of investments assets reduction fund are basis use million interest average XX, quarterly XX.X%. The compared our assets now XX, at quarterly earning million $XX public XXXX. which to quality, of investment of assets available million points X on rates assets bank, increased. regard or basis earning XXXX, or basis interest-earning and average XX, quarterly moving year-over-year September normal assets are is In With nonperforming XX interest XXXX, on outside

and about acquisition excited shares. of shares of State Bank Texas Star Bank pending our Lone We First are

Star banking new to with in the forward banking XX teams. Texas. offices several West, West look for Bancshares Lone operates and in First markets Bancshares North and Star and Central partnering We First operates including prosperity X Lone offices Texas,

costs, more potential will in again state relocating to merger remain active support for housing continue combined the regulations. We intend technology from to Thanks opportunities. with We economies and of partners. people infrastructure, for our to This additional states have benefit and staffing increase, conversations driver continue and to activity. loans higher be government your increased business we in plan with continue M&A, a and from succession additional taxes with and regulation requires moving Texas there concerns, and companies to company. Oklahoma due believe that increases The to and

we some Officer, the specific Let of Asylbek financial Osmonov, over turn discuss Chief me discussion results achieved. our our to to Financial

Asylbek.

in Net XXXX, Thank to you, XX, losses the an or interest $XXX.X increased margin million. $XX.X same September $X.X same morning, increased interest million Zalman. while the period a of on in The income $X.X on income for for $XX.X the Interest million of XXXX. was to a the ended was XXXX. increase for net months includes basis X.XX% for ended X the XXXX, quarter X.X%. million, in and interest XX, compared X.XX% million Mr. same quarter September tax the million to the ended X.XX% XX, in current $X.X income credit expense income equivalent for loan the $XXX.X before for to XXXX, XXXX compared The XXXX same period Good for for period X third June value fair decrease XXXX, securities million provision months interest quarter million net compared period of everyone. $X.X compared

million to the months period for June was XX, $XXX.X XXXX Excluding was September X margin $XXX.X the the compared the $XX.X for the ended to in XX, compared XXXX. months to XX, interest for million ended million the purchase X.XX% adjustments, X quarter period ended ended for XXXX. the XXXX the quarter XXXX, $XX.X September XXXX. quarter same the $XXX.X X.XX% and compared quarter Noninterest million June $XX.X XXXX, in expense XXXX same and the income net million XX, accounting XXXX, June same period for ended and ended million for for for for September was Noninterest XX, in X.XX% XX,

September to be XXXX million. XXXX, For the to the fourth XX, expense XX.X% ended quarter ratio period The in for XXXX. XX.X% to noninterest X expect compared for $XXX the same the of million was months of June ended range X XXXX, for months we XX.X% the in and efficiency XX, $XXX

recognized we During loan the third fair in value million income. quarter a $X.X of XXXX,

September XXXX, significance to the X bond the quality. of cash Due And income that, projected on years any loans $X.X forward. of balance approximately and expect detail presentation XX, fair and to million. $X.X showed annual low of me Timanus some at average let value a the balance, Tim flows do asset weighted of remaining with metrics over X/XX, turn going discount life discount billion. XXXX, portfolio As not we remaining The is for

Rasche. for quarter quarter the from income allowance. Asylbek. Nonperforming and September production XXXX, The $X.XXX the loans in quarter ended was during to No taken are average for of at end into real and XX, the at XX, monthly charge-offs million million new were $X.XXX compared XXXX, points dollars the compared June the dollars other June to September were other represents losses XXXX, decrease were comprised loan added $XX.XXX energy repossessed X ended September nor XXXX, basis nonperforming credit any XX loan in real Thank Of billion. XX, quarter the for allowance million XXXX. only assets The Net for rate. or September XXXX, XXXX at floating in over will September and rate, assets assets. nonperforming fixed $XX.XXX total total assets outstanding variable in XX, you, I September is up XX, the ended million turn nonperforming were of million approximately months XXXX, XX, This now XX% XX, ended $XX,XXX XX, to assets, approximately totaled basis XX% Charlotte made estate September XX% $X.XXX $XXX of points rate it The $XX.XXX a $XX.X XXXX. loans, XX to was million. million estate. XX% XX, in $XXX,XXX credits. million $XX.XXX or Loans

At you please Tim. can with questions. you, answer prepared are your Thank time, assist this we to us Matt, questions?

And Securities. question Truist from Jennifer come [Operator our with Instructions]. first Demba will

going Question, margin you do interest Or the you few margin over the you -- next continue slower quarters, also some quarters? outlook could net to think margin kind Prosperity? think few back go net do of next up to beta the the over see is interest on expansion for

going next interest I interest good margin we expansion don't did quarter. expansion about you and net reflective recently the there Asylbek talk X-, net I'm Jennifer, competition's a but would so saw period. We net a XX-month slight more rates to betas, margin. margin this and let to rates We if our XX- the could like a in highlight over, interest to see say, fourth be of impact raise the to be interest quarter, net margin just should the mind,

run However, historically always market. interest run, a in has rate margin X.XX% X.X% net long X.XX% our to minimum of -- normal the net in a bank

on So have room lot I the of we run margin expansion. a interest net think to that

be not. quarter, competitors. the we see fourth try higher with rates, maybe don't a just I the interest competitive the in dip to However, know -- that maybe some slight you more because might of of

fine. betas talk want think the I Now Asylbek, to if you that's

the XX X, basis projected. Yes. Specific that's on increase will XX Zalman But basis That's beta little looking beta a our Fed recent XXX third betas. Fed sheet just that the you're have what that for based -- the be In on our the interest-bearing cycle we increase points, will interest-bearing about with the increase. since rates about think beta rate new quarter, it came basis June, I bit. will disclosed, deposits deposits on started rate if I our on points mentioned, increasing on their think we And Mr. points. only a just in with

that. to it's again, But hopefully this after fourth going accelerate quarter. should it's in So the stabilize, --

And strong growth, it quarters? been second the in quarter. to really moderate and out, the has third couple expecting Are loan next you you of your pointed as in

that. take I'll

second -- high we Having good see interest like at being again, next looking good it's next Jennifer, had where demand looks said we're loan everything know banks consistent. guess, a to quarter. at that think hard said I it's rates Again, some how year. be year, right they quarter. $X.XX, we still just third that, have it to We quarter. good go, had that a say. strong fourth I And now, I a going

However, I are. interest be with to you be much cautious they would little just a rates as still the as have going bit -- with up

I hard you looks good to would that again the for year, fourth but project us. for very So it's next tell quarter

with Gailey Brady from come will KBW. question next Our

with that I expenses $XXX range year to million expenses. or just $XXX least at to wanted feel so. last I in for the have million been start like

relatively expenses pressures, you a So keeping of lot on despite wages. inflationary of really by seeing kind block industry the especially flat

that feel creep expense a expense to more to you do to we pressure? bit think and little to As minimum? has ask XXXX, of the continue base inflationary do can more a think move you to Or the a little look you keep

I think of our looking if XXXX, the have you're in merit for second we each increase year. quarter

merit this increase due year. there expect that to be like I So we will did increase

of we X and really to -- $XXX I a But job probably the mentioned cost do find we're million But as increase. on million as good it to it, -- know there's costs. the I have mean, in well. the $XXX from trying our managing lot we that If our of pressure a of second an way. you and up same going feel went quarter, to it side about efficient we we're

some to there So might increasing, categories but efficiency some bring ones. other we're be trying on

looking the to ratio, to around that grow efficiency merit up historically if our it's we stay picture, pressure ratio of going But if big yes, you're some think with have it. continue So we XX%, flat increase been go revenue our should I and XX%. or because efficiency at inflationary

as the I then June. think And of end of right. All

most in billion. not in your moved available the But for about I'm quarter? of are held So curious, to value. where just tangible unrealized them, unrealized last loss book so reflected maturity I guys quarter, know not the bonds you end sale your were that of for it's this did as of really in losses $X.X

For the billion quarter, up net $X.X to the went end of it tax. of

So increased little a we just bit.

to billion $X.X billion. from $X.X went it So

from in with And along, more progressing pause going then in are the M&A a you these X is like, opportunity guys kind just couple have mode If closed been comfortable and I transformational on the get you X my interested talking M&A. doing years, All additional and acquisitions also kind until of pending, larger, just over pending. right. those that? of you've you acquisition. feel a all know last It to question you of you final Or right do integrated? you came think with ahead feels do

X we're merger the now. I'll answer think with fine. us, and They're are great right These that they're doing that. I candidates

were over our combined both them billion. of -- assets $X combined a the little of However, just

yes. interested be, we still these would the even would question So answer more acquisitions to with yes, or X, and your combinations be and mergers

Rochester next Our question from will Dave Compass Point. with come

off of first, those. on for the you're and On those sort like thinking deals, any those CRE, what was coming if did with of either in changes the anything things? you any legacy running congrats structured curious just I loan books of about

very at meeting I don't have really these. clean even think afterwards. It of that one big we see with we One didn't really anything see didn't a either anything, portfolio, to have was that it. issues, some And some bank. other it think the Randy, deal, of a had anything? saw you We big -- we I don't but we really. be see will discussed do

a nominal loans. of No, there's number just

-- longer There may again, be it a time. of nonperforming. little won't be for periods uptick in But

small It an lot $X it it seems it's you so million, a like but it it's moves uptick a if we're low, deal. like see because

significant. again, more have have in do they probably be bit But -- a we'll But nonperforming. more little more it won't --

doesn't and the I case. fit. lending think that it's there. safe. loan their any doesn't that's fit, a of major alone piece aspect be There's in they here do no what But terms of that may of There not

guys back your that And given think deposit assumptions, for your cycle that discussion, up that like that's on deposit beta you about something I acceleration the thoughts talked you XX% Great. on asset you into beta have there? updated baked the mentioned, updates coming Any interest-bearing that? previously, sensitivity beta Okay.

is think if our up the Yes. with I because changes deposit, the not fourth did beta as model below points the running we earlier, quarter interest-bearing still basis update at around look XX. discussed you the XX We rate coming

we comfortable at we beta interest-bearing are XX So on our feel at model for deposits. where

how we just to do planning are is to before not what model. is environment change we'll we and monitor competition the the the change. -- doing have So But

or end of of beginning just XQ I'm Was Got the at had you the up bump that helpful if wondering XQ? would rate at at be that spot if guys the end XQ, the for... you. of

quarter. combination. We end of in little a the fourth third and little of -- was That of a fourth quarter beginning bit a bit did the the

a So it's combination.

another Where just maybe the at are point? guys Okay. new loan margin and securities And this yields yields seeing one you front. on

yesterday. and think We're new about yields I we in X.XX% X.X%. talked come this loan between probably seeing

Great.

you're any for side security of kind the On replacement doing?

little Yes. probably security, been but the is or last anywhere of now. rate between day replacement The X, bit, a our securities and X.X% X.XX% off it's on right course,

one Okay. ahead. last go sorry, one -- just Maybe

I our difference now. say right that XX it's on yielding between a X.XX% big we're

we couple time us. XX-month slightly why we that our of about want good really that's in look short in of the very the over margin, talk X-, term, So favorable net next I interest be interest don't should rates for money perspective have it out because XX- reprices get we to horizons and despite raising much shape years that so

And that higher that continue are level. rate we fund up, right, at to interest have loans these

Well, I of probably think, you also year. it -- our rolls loan off X/X portfolio, every

lot So we have of repricing. a

both additional up that There's a favorable come obviously. in funding way, repricing into and play

working while Appreciate there the time? do that. period guys buyback. that do in curious, deals that plan gets did Maybe to you the just this to a closing place? and during anything you you're market have over was in you downdraft just I one we on anything Is the outstanding? these? back if Would deals get a announced. the you able quarter last X next still I guys the buy one months, while got on know that to X can of stock there Is still do you

stock to our I buy don't a think this goes have now that down still announced, can XXbX-X. being back If with we the have we stock.

Milsaps from come question next Sandler. Our with Piper Brad will

Is that guess, Or a you see up a of part to Or buying little thinking of because we of in I structure? Just more a up more about that borrowings how follow kind of I wanted going bit. did just to on sort wanted permanent just of stop you're bonds something forward. now? right to David, your the -- wholesale need way to gap discussion. bond is big are the runoff a I think about think about funding public maybe want see funds? in creep that

Our at buying -- there the pace time. we're borrowings a off. funds to and that's crazy, But still rolling million buying the same at here but are of buying combination we're blocks $XX not still just probably we're

we -- little bank up, we So that go leverage as rates a just the always bit. we'll said

And and that we're off, just really. so bonds of are buying really doing, that's we're in coming advance what the

agree. I

up I follow maybe warehouse. then with maybe the to wanted And Okay. just on Kevin

I was said about think be. it going down was what to you it

more curious your And I know pricing -- ball what yield there I might ceilings of a bit maybe kind thought. kind of rate offset some comment there? decline that there. was Just up rate, secondly, the volume? a further you Can I in kind crystal there of can mean in little rate but then than floating the know The there's maybe I increases be of on some

Yes.

somewhere thought balance So back $XXX million. average the we just at million, and at came that million I looking between think, quarter, in the for $XXX $XXX the

So we're right with right averaging Quarter-to-date, in million, $XXX thinking. at what were Brad. line we

bit. the where been days it's a $XXX million balances couple actually have So million a we've of dipped down And seen to range. $XXX

as on $XXX entirely so That rate, we think on say, average and from a weighted And it's going were. probably we floating of to floating about is million quarter million, back and that the was down quarter, a be right So $XXX portfolio, X.XX%. between X.XX%. I morning is in bit to the portfolio. did general, little daily I'm rate this where for at I average average where envelope coupon the the a the weighted today coupon likely

points under last from just up what it's basis XXX the quarter. So average

for growth a maybe category. great. your in of final was me, construction amount this then quarter And David, That's one the fair

a higher do you -- Just I projects that know level you that going be take to mean, fund Or that point? to curious, at at there is don't this have are other out up. you want that is

much expecting of more Just sort of of bucket curious that kind how of out loans. you're growth

as off. we're those still for there is said at to might on demand commercial has it very a a an looking line it's that we falling It think it and that reasonably Having that, be example, maybe intuitive we construction deperminent good good bottom million $XX be last a -- loan just the seems carefully. But a approved project. appears a bit. little guess projects. But quality, loan, week top be is that, to I and

in it and we're if to types play. still credits we in. good So this bring not from And make at of one, see point. there. those are it try out backing a really to They're We're going those still customers away

This this that's a fat-ish, rates for opportunity out maybe is their is about kind have time of and things, worrying number up gone going we in. the issues really us able a really for liquidity of with some the those asset have liquidity number interest where to of banks as an quality, go our that deposits time can shine bank and is

We tremendous have of amount a liquidity.

We quality, competitive to bit a have asset and can -- better rate and not so now little rate competitive that maybe because and the we field. it's in good cater more really get a

with question Bank Ebrahim Poonawala from Our will next of America. come

Just follow customer in I you how quick mentioned David, and being since of hikes terms of of outlook, is cautious. investing? anything seeing because your we clients, questions. base XXXX like wanted terms had having about just are in looks the up. a behavior we've are One, there losing momentum that that you're of you the they're Is couple rate role that Or and cautious had about unknown? among suggest hiring March the the a to thinking

should it's think the than I maybe today, imagine. -- up a -- I that I think I I is when think really personal look anybody may at holding the higher consumer it just this be No, And thought, could keeping ever actually, see interest going stronger if know the My I still up I go guess, to just use -- but I they're really buying now cautious, probably right continuing the and cautious getting strongly. things. is wages word that people rates are consumer don't

go that's just soft we borrowing or -- impacted you're be housing half to definitely or not landing. we where some of market, the a see -- but of It's maybe X% we you a mean and the this, can why maybe of probably customers also increase X%. on our comparing out we it X% Federal have borrowing as depending does be to customers this But in and either more. a going landing the be They of people out what landing market. And exactly are the like I keep to I maybe them soft is bit a somebody little so much And might middle wanted to can much think can inflation. I X% just here, the increase be if cautious. think paying hard smaller either to to what rates market bring that seem But if from this some happen. again, able wanted Reserve have not Fed to or down unemployment looks

And with so hopefully, what we That's can the hoping for. do it I'm landing. soft

is time to be be loans would homebuilders. to sales area, bit. slow cautious particular in that the our development lot I'd off, XX% say would it thinking say of homebuilding are Most a sold to this I'd month-to-month clients, XX%. a their We're be down that

cautious move up the price particularly we're buyer and that, So points. first-time in on

you or wanted XX% to -- and have real are down today, in I you month XX%. brother, can talking just phone Yes. answer. the probably call or And calls that is just said, the -- XX% phone business, I estate ago, you was see the I a to X anybody mean, mean, my it. he answered who

that market going So be definitely is to affected.

have just know to So you that.

it. That's and just other it. I helpful. missed And Got one I sorry if guess

deposits, to from you that evolves terms mix, interest-bearing? of of the as the do some moving do think at mix maybe we one, of you And look In deposits balances here? how deposit we deposit when grow like, about think noninterest-bearing expect sort into noninterest-bearing

deposits increased million quarter. this mean, $XXX Our month noninterest-bearing -- this I actually

see of that's we of in created to lot We lot kind our our from around lot a X% why change competition and a of that kind kind a to then your CD took from I like market account about money onetime of we go we get until quarter, Next lot cost really X%, rates. X%. guess maybe doesn't a people a of of raised banks.

So you you $XXX the can I you can consumers good months, that if million $XXX get to treasury a think million a X-year probably go markets, even and those for lot. even still though to rates, in or can still have get are X --

go wanting people to that. to So

So normally year. the I have know -- see, probably question, answer would I I don't growth the don't that guess X% that next deposits growth. would see don't to And we -- I say, X% maybe to about you think know organic I you and I

You probably have do to shooting down Or bring what, we're think? that's what that to back? you to Asylbek, maybe, X% for? of what

It is will But hard related detail more little add coming to when it's do quantitative is trying to especially be with off pandemic government hard from quarter. a what to predict. so very bit tightening. Yes, the predict what years I'll they have much just fourth to and liquidity

If year, public of end because of the up at you our funds, it goes collection. look usually tax the

yes, coming right first I deposit of thinking that purposes, in think for budget year. about now, the the December X% But in, expect we the So and quarter. the next are benefit on us for core we in end

I we that think grow through really quarter, deposits. the see third We much. didn't core any didn't

grew million which quarter, $XX is about X.X%. for I we think the about

see starting fourth However, to in quarter, are deposits. we core the

people those of into stuff investments that. like different and moving Some those some of

aware So be I of we not but to really question, that. answer to exact think knowing the have the

Olney Inc. come with from Matt question will next Stephens Our

change rates clarify just go to something. want to of deposit the some I want to And the back that of -- Just the mentioned. you already

changed of quarter. some initially you rates said earlier the you these think third I in

of the came at portion that. results the of quarter. a captured XQ so bigger, And more changes it like notable end the But sounds

changes. fourth I that will all Did right? capture So quarter capture those

towards But quarter. it it, bigger the the part. You'll in but we paying for the fourth third started see that going increases of probably the was quarter of impacted some the some of most captured end be quarter the to was

in end mentioned the the month. did, rate the and of did Yes, increase right. the the call end we in of we increase quarter the that our it third the That's beginning was additional second in of increase and we quarter

So the well, in yes, the full we'll impact of fourth the, quarter. see

Okay.

it And to the relates delay these quarters, here. quarter, movements be net that bit so expect although fair? somewhat Is few that could as like little you sounds fourth margin, a positive sounds like migration given some it interest of that upwards some next

exactly is portfolio bond mean at money that's billion our we Again, when of like X.XX%. look so we much reprice. our think I $XX right. models. that earning have I Again, about

But That's amount net fourth said you're as the slight quarter, downward X.XX%. a quarter, probably. gut in. still amount the for of not It think of loans feeling. interest margin happen the on that, in may you It going happens. today, -- trend I amount that reprices depends come can X possibly just for the into having of So may see it that depends funds public or on my that depending the

that So rates, in, possibility. that's but there's of I variables a just come a lot raising those think

Sure.

outlook the it, healthy for you the I that declined by expense the then have Okay. mentioned amount missed what's but back, a portfolio clarify, third the just bond quarter. may And the premium and near term? amortization in to on in Also this

the quarter. premium will fourth $XX it at for amortization quarter, about looked million which the had fourth down portfolio in we When expect bond million on how third we from million $X.X and Yes. $X we in quarter, we be

Wolfe Our Carcache next Bill Research. will from come question with

you would clients process helpful. corporate remarks, in more typically funds on bit to let that how decision has are balance you making them with discussed your Are their go? before that sheet. give having color be a conversation your a for that opening moving on clients, color off you Any Can David, the example, gone?

I those are public say I driven. really keep color. give don't funds are the of accounts keep entered with know operating that a you and rate just of to really their funds. I that lot rate, can investment because tried Those can a it's into, relationships really really they we their never to

we with to, them. we We X out went go didn't the have up, interest try they some we rates, look. because real to their customers did customers strong probably higher starting compete if there are I a seeing we're now, have on think and But to much rates So -- to as do we can that forgot are asked they could names that of and We I didn't may to have place seeing what but could adjustments XX get asked relationships XX, some really go try that. could rates? we have they

today think where I you paper everybody's you can advertising see rate. -- rates, pick the and -- it's up you become didn't

like not a there are Even people they I is -- more us competitive. somewhere may looking or would my we're is more up with of just treasury don't don't mean on to amount, going something at that, it -- go becoming That's be I And you many if else. feeling. that. up, certain go -- pressure think So paying banks I what

option. my... So I'm they definitely that I just it's whole have giving a if color, don't lot you know of

you've where are follow relationship No, Yes, helpful. that's the there Yes, any moved cases on just have And to that's I off super accounts that. to great. that, that retain been balance with sheet. able up appreciate maybe

have So if sheet bring moved at longer generally if ability higher a balance back there you necessary, later, sheet? no on to rate? off Or still balance they've even them is once the

or us either in funds us of the address our both most customers appetite if an we sides XXX%. to that. moved, rate. moving They the normally me not done, those just we normally money our Number they're give for about bring hear to do back. stay thinking But Let and of gets funds best one, is. that with once the money say contact because for to the us them us part, major something for contact certainly but just time in where from try if majority that's where of they and that not unusual it XXX% opportunity It's Then that's contact of interest. again, them satisfy ask is will us they're not our make Once not what ask would our matter. over we are them, asking the it rates and are and have and additional about move on opportunity

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remarks. Charlotte for closing back over This would concludes like I any question-and-answer session. to Rasche conference turn the our to

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