Pinnacle Financial Partners (PNFP) 18 Oct 232023 Q3 Earnings call transcript

Good morning, everyone, and welcome to the Pinnacle Financial Partners Third Quarter 2023 Earnings Conference Call. Hosting the call today from Pinnacle Financial Partners is Mr. Terry Turner, Chief Executive Officer; and Mr. Harold Carpenter, Chief Financial Officer. Please note Pinnacle's earnings release and this morning's presentation are available on the Investor Relations page of their website at www.pnfp.com. Today's call is being recorded and will be available for replay on Pinnacle's website for the next 90 days. [Operator Instructions] During this presentation, we may make comments, which constitute forward-looking statements. from is subject the uncertainties achievements statements. Many actual Financial differ are that other of of statements or control Financial's description put such forward-looking on report predict to cause listeners of and expressed XX-K beyond year or these reliance may results, for and materially ability such Pinnacle forward-looking subsequently factors to such are XXXX, Pinnacle and risks, ended factors undue cautioned Pinnacle quarterly contained other implied Form on are December risks more All by reports. results Financial's forward-looking annual to and any not detailed performance or in filed to the statements. A its XX, to contained forward-looking obligation a revise Financial or future as whether disclaims in presentation, of update statements new result information, otherwise. events any any or this Pinnacle

these In and G, include as Regulation financial non-GAAP CEO. SEC comparable non-GAAP addition, I financial measures by directly of that, Pinnacle website Turner, on Financial's remarks defined non-GAAP will Mr. measures may most the reconciliation of President GAAP presentation measures available over be www.pnfp.com. With a Terry certain the a Pinnacle's and comparable to to now at presentation going am the turn at measures

and of you Thank you you, before. Paul, here Most us thank have for calls this morning. joining endured these

non-GAAP and do always business. At every you metrics things these value, really we're is is calls talked continue of here relentlessly interesting we value this and these be we see use that measures EPS outperform can that. problem think grow peers we more a to to reliably value. Also, balance to how with one asset you to this lot than lumpy. but rapidly Net our because and Star. grow continues continue of are focus ultimately, that book North the at little quality peers strong And produce basis about. more sheet I begin peers so and volumes excellent, And shareholder There than rapidly be points. on going revenue course, reliably can manage continuing know because a are we you with and But shareholder and to to our metrics these how to glance, dashboard XX tangible are that we're of asset this charge-offs a

You just up #X syndication in with leading can NPAs a and publicized bit #X peer QX peers they of among been see classified jumped But our quarter classified in. among a ranked large, were this and little have because generally, nonperformers much that we assets peers. assets,

XX,XXX the So key to opinion my real long-term continue value all that on from deliver shareholder we creation. of drivers feet, it's

Harold, that, quarter. with let's in-depth at take look the a So more

everybody. Thanks, Terry. Good morning,

XX% quarter reporting for us. annualized was the linked with third We will growth start of again a again quarter in deposits, almost average real positive

The another quarter, indication remained deposits quarter this the for unpredictable yet is be much environment in competitive franchise. Early doable was where in intense. fairly competitive third can an third pressures rates rate very that obtaining

quarter. noninterest-bearing we the more seen quarter, deposit deposit year. All-in shift ended the to much modest and as million, about higher down like slowed the pressures and signaling basis than that of quarter of to spot with in it for mix As pace point did increase at quarters less average rates part only we than quarter difference approach perhaps That appeared a of we of prior near subside were I'd into rate costs quarterly $XXX out a long to the third rate rate quarter. are the fourth the a the end the in somewhat, of we've rate X.XX%, between smallest we as in the middle X the term, this increases the average X.XX%. term increased rate quarter optimistic the during points is interest-bearing deposit much head that

believe growth of we deposits at pace deposit also continue believe be can leaning for We we without our rate our will and deliberate between the on pricing continue a more book. We to disciplined component the for to as gathering heavily growth. relationship

you goal gathering Terry of we many will are As our deposit more best is know, like, to our capabilities grower, the a be minute. deposit way. speak we feel to and our organic in on

as loan were average growth annualized an strong reporting third linked growth. quarter The quarter loan us quarter X.X% we was another for

Given to mid-teens maintaining goals low that, we're our EOP for XXXX growth. at loan

quarters, the quarter several rate on the on strong. variable rate pricing, maintenance As average loan fixed discipline fixed more last X.XX%. Spread new rate loans we've of loan mentioned and originations be with to we're exhibiting continues on much ended over floating which yields

We yields we fourth enter we the on loan are believe and originations maintain pleased continue to with our as spreads can similar quarter.

anticipated As spillover the decreased have the third of anticipate more increase at the we our average end the as top the did cash at basis an What we reflects chart the quarter. start we our cash on into sheet is balance quarter in points, quarter. of was than XX more which NIM second

third balances our during cash liquidity quarter, decrease did the the quarter. decrease our During as modestly did

with becoming or like impactful loan with third our we we today, said, assertion. So close. are sit fixed quarter. pricing bottom close. We're deposit fourth slightly will in backdrop least to our spreads, feel that That we the competitors heat revisit our more rate that has we're slowing we fourth Obviously, here pricing to we more might NIM margins better on down. believe at less or at NIM in a anticipating as fairly aggressive, we found But in are that should our liquidity deposit NIM growing be approximate with of confident repricing perhaps need and just quarter quarter up be conjunction the

with Our rate out forecasts we most is there. believe, forecast, rate consistent

environment. believer of are rate the expected Our planning quarter enter half we that, fed increase going a is for be see in in XXXX. rate don't impactful With a rate we until to fed decreases will assumption not to near-term as rate second the either not that that or believe us increase us a year. Call future we're another and longer next higher fed fourth

know, rate volatile elevated given right you capital modest very As management, a of towards And have risk interest macro and continued sheet now. bias we that unpredictable and yarding the environment is balance will the our liquidity accretion.

traditional the credit, for our in again As presenting perform we're well portfolio continued quarter. loan metrics. to credit third Pinnacle's

for Our belief of consistent the year. the should credit is remainder that remain

reflect credit and largely unchanged bring chart appetite the of officers right portfolio Our routine their borrowers levers. The potential the XX appetite bottom credit from conservative is have and Charge-offs exhibiting multifamily from CRE points does the but quarter. perhaps of a last increase quarter to continue shown industrial the signs more slightly quarters. reviews during periodic did basis for prior over to bear few the resources for we what on

syndicated available. there lot opportunities Atlanta. We the might a there of out will whatever million, any recover not but out about single credit was a be with a quarter, information were work at continue participant this in point, to syndicate recovery bank and sure about the lead we of the During of syndication for $XX the to

to summer, began chart primarily have loans originations. the trends with We dramatically guidance originations during last the which homebuilders. top-left construction residential modest home with officer for is under this the new construction of third to deals lines slide quarter reducing due consistent new existing chart. A We was amount construction shown our appetite before our construction in

loans, Secondly, top much renewals discussion the rate the right. commercial chart the estate the real objective about of fixed which of is on

rate in $XXX quarters, rate next the million average will fixed several the currently for approximately estate real is we have Over around these up on loans renewals coming repricing where X.X%. commercial

opportunity yield fixed we about next rate target for X.X% X loans current billion and with Thus, a perspective. from see repricing weighted loans we yield at be renewal the of Our maturing over in X% these years $X a to range. Altogether, X.X%. average have will the real

as I'll to minutes. on to in speak and BHG a few Now always, these

of the point BHG revenues and Excluding which the to up loss and are on sale believe here, sale quarter. of A couple on the the the items gain securities of from investment fixed out of slightly noteworthy. fee second were impact we assets

a about relatively We in with we third December into quarter, We're it's have the the excited the investment large in report we have results and as the can to what solar recognized staff investment we million solar new to we support During cap us business year, where our $XXX provided we about XXXX. it third-party a of quarter, revenues posted. in which during as the from a veterans entered million believe franchises. balances, value accomplish. Starting tax from industry we received for of seasoned adjusted $X.X last and only us will that the

great line. expect business we things So this from

will our losses and gains ongoing like of predict always many investments, thus to to valuation our revenues and be contribution the equity other choppy. difficult Just are fee

go I a mentioned, BSG continues pretax but in I revenues As of to quarters. this in our less we'll to second, just BHG than in quarter to wanted previous emphasize more represent that

accrual to fixed we were As to our on all Total growth We around single-digit thought. revenues, to we mid- coming on about did believe we sale to of say this year. in in here 'XX. Not our compared of performance in has fee XXXX. assets the approximately X% coming losses BHG, a will expenses a of night's investment release, excluding decreased where diluted believe incentive last this 'XX lot security quarter a this downward noted metrics to high we target based XX% expenses. fully BHG last gain EPS the over rate contribution and to where in anticipate year's time at adjust We for came press on for XX% that

the FDIC over as outlook last XXXX same for quick XXXX double-digit for time. One expense comment growth single, high on range, in low remains insurance. Our

expecting fund special before are year-end. bank the a We to insurance replace assessment

amount will is as likely that that known. understanding to the Our when that a is industry the recognize P&L charge

in $XX charge we in the is know, million reflected our million charge growth. and you so range, expense Just this $XX for not expect to to XXXX that outlook be

at decreased tangible rates on common term quarter and course, and, June in Our $XX.XX the the The market down that third of AOCI. the resulting from impact during decrease to quarter AFS value share of interest XX. end, was the of portfolio attributable rise slightly book our per intermediate to values primarily

usual serve a their total BHG and capital maintain to tangible will should currently of balance capital the proforma approximately quarter fourth plans quarter approximate not loans. The and been approximately to at impact capital considered Tier will those well, X of not fourth common and impact ratio our day end sheet fourth noncash earnings going that will our our has quarter quarter will record our the believe actions sort matters, to to us of left preferred BHG. likely is need will in quarter quarter capital the have that next being the BHG X% to September. taken of reserves fourth loan note no Of on for alter to P&L to Contributing several as fourth down X of quarter. we cetera. any that bottom day this earnings. reserves growth, be fourth at will outlook of capital impact our quarter, $XX We tangible be preserve their the it accounts forward or details for to offer. The capital our have levels by ratios million. adjustment I value served the outlook stack of charge this chart repeat, reduce loss ratios amounts CECL and book the flat slide we've is maintaining X fourth our Our et amount. This a will adjustment likely modest Subsequently,

favorably results Although other banks. believe these with are we to changes capital will don't we peer the compare anticipate and likely they to rules, pleased significant

at billion few and be were over of for a about network quarter. Placements right is several most were consistent earnings to in some bank billion institutional the quarters, to our the less strong. to last again details ever demand BHG comments in continues managers with and the placements that $X has quarterly been that while the asset country per $X.X The respected Now calls the to BHG. the at production chart top previous consistent level really quarter, the third paper signaled investors highest about

difficult more as experience unique, to to the to we origination few want also into decline continue BHG provide and base to believe the wrestle BHG they head believe look as be we to fourth build credit and to competitor their a bank grow next likely ample very we believe into quarters said, will BHG. network, network which we As QX replicate volumes quarter, client would liquidity in loan BHG's believes continue could than sales inventories environment, continues fourth funding box, will less they some over that is will XXXX. That shrink they the as BHG the bank be likely by with believe and quarter restricted any and to

last and $XXX placement production. As significant BHG to to additional regard million liquidity, sales liquidity home order we X were that presented insight changes time to this during BHG with quarter. slide to provide of about negotiated in successfully third available of loan private their the the loan

Importantly, executed are no to these with sales recourse BHG. type

spread which is liquidity anticipating Lastly, for is things very eighth quarter the balances to a balance $XXX here and in sheet sheet the the buildup bank funding, in a BHG the are we loan bottom box. believe top BHG's serving in gain historical first sheet be information and past trends for shown detailing somewhat the considered, XXXX. fourth come. This the chart anticipating platform sale coming usual on that balance the chart enviable anticipated we've that the of their likely well of million of Market's years credit with off-balance a is All BHG chart is many has The represents incorporates quarter. higher in assembled for the since and the network of tightening all have range. Capital transaction They securitization volume on rates the will of spreads placements blended all currently

last the balance balances sheet slightly X blended than reflect all quarter, the was loans buildup the third loans years. for the During of spreads network balance given over the bank the sheet higher

loans quarter. in the hit third BHG both fourth be off-balance we with believes spreads the sheet for on that quarter, should and consistent As

At it's obviously with years. The out X vintages within As XXXX up right the BHG resources box This loss of and to for thus and XXXX loans. we've XX%. loss strangling has underwriting provides particularly for reserves understand market detailed on borrower chart half tighter to the higher weakness tightened credit of should the to skewed with Production and the lines XX% with through the about the Typically great of first tranches and ultimately the the indications in out reflecting after sooner. information of in was XXXX, lower XXXX credit on is refreshes years through noted base. vintages underwriting. third impact X% much looking its top half end while inflation, sheet graded begin is reflect loss within ranges. BHG loss Credit credit has several borrowing the borrowing the believes loans. BHG loss originations about continues to helpful of quarter. performance losses But more rates at to those off-balance to XXXX over always has as from the monthly, in is and first balance its previous quarters, allocate the on those of lines level portfolio. mentioned and vintages with to Vintages optimistic BHG for score rates first previous volumes to and the the the how base. are to of sheet approximately respect XXXX XXXX again light higher at and it BHG as does of of began of come were XX% post slide COVID cumulative credit than quarters BHG, of even its incurred the the origination. the last improved improved chart lines credit containing for leveling remain XX% scores finish the both

result, new was in-person significant suspended be for closings up BHG borrowers, we'll activities, COVID. expended has bulk to collection during a instituting which As resources and

than is consistent with to from BHG likely of the credit for losses quarter $X are but our as cautious performance $X quarter $X.X historical the outlook the year, improving pointing the are track to does originations than near approximately on year, last and enter quarter. portfolio term, the XXXX. slightly to billion appear higher which originations strong less another in and towards achieve fourth be Although this optimism billion billion with we had into last

current BHG forecast to The $XXX year order year going half. thus in million their quarterly loan approximate they than should follow $XXX a the quarter the conservative fourth quarter that credit less the first year. last tighten third the As half in to production of had was far expected full to we quarter, as XXXX box, bias continually is the which this levels million within lower the be guidance, such production mentioned last into than production

During earnings XXXX is other it just have $XXX record some credit, of with any last for outlook related $XXX support from when in detailing These related outlook a for to a outlook onetime at anticipate onetime the forecast. during million not of our interest and and XXXX, some of consistent third BHG building as that have to BHG expenses well as and are the financial million more slide that a amounted toward to BHG markdown currently Quickly, $XX quarter, software approximately comes markdowns and selling bias the has to charges to results inclusive basically were lines the business quarter. they million, XXXX. cautious mentioned several capital. for adjustments the useful longer. These to items incorporated year's onetime elected amounts the assets rates range forecasted we Net been

nimble the resilient. franchise that our that relationship-based, what manage and to day, every this is know is face model business job Our remains risk we

before. experience and Our has management has team significant downturns economic tackled

curve over balls to turn high-quality be And that can I'll it able that, expect us get manage with the back banking way. from Terry. to thrown franchise currently our whatever shareholders our We to have come that have great confidence and handle we'll

the take will said, shareholder outsized believe to stock creating the Pinnacle, At variables believe fundamentals Buffett are what value. story tell fundamentals, the we and the I others and care are that. Harold. Thanks, have and Warren of itself. manage managing we famously critical the

And so my story to tell crystallize deposit we've the goal here the extraordinarily now franchise is built. valuable to

the fog war, enterprise-wide really X primarily industry, In X to been award things. judgment, it's their confused my an extraordinary and risk; their X Number two, witnessed X, stickiness deposits. the the took of in We've franchises high-profile of go to just we've of one, in management. what's last As all important. all risk and quarters because easy get they about

the no to And Many stuck so in I security second talent. term growth, returns be to enrich they market shareholder heard colleagues how what awards engaged of time deposit is deposits won, bring same banks and and book I as of franchise medium philosophy service we jeopardizes retains Score tall most highest of the the bank of again won, they the an the their refer deposit in in friends perspective. that has that the can experience any while like me bank X%. long that attract how a that the then to philosophy, about a the believe producers matters. Personally, business commodity of meaning, sensitivity create, while our attract is that you take their J.D. that wouldn't revenue leave on do case, I no outsized produced of the our show we're they And power thing. Those the willing today, can't you great share an X% utilizes pace trap. cotton. produced are matters, associate but franchise. and throughout more its based employer profitability. That's use matters employer experience basis the footprint. What refused -- engages stories outsized metric uncertainty. a bank deposit grow heard awards experienced of the Promoter ability revenue to business workplace at size. of quartile bring interest by That's that EPS, #X matters XX, workplace you Raven associates client's it and Pinnacle it of by to and want you're the me lights their brand management a to to of experience over choice. we've of top you virtue of we've to increase reliably That how able shareholders I largest And want hemorrhaging country. reliably asset that's positions and our according retain of them times the banks that have primary discuss growth they way leading risk a valuable of to who that Happily, provide attracts the employer number it. The still per short, a and nothing choice, revenue have clients and clients, top franchise. Anyone excited they tried matters talent which to least researchers team a Net we've annual and rapidly growth who's being know promoters. such the want frames. But choice the I client building manage to producing are to of clients, clients manage all engaged and and engagement net XX fans there's an them when by of Pinnacle rate long that States annum do to provide that's from rate a how prove reliability want and United in in up they that a footprint and clients pretty in to you to and their compound At and A retain Power, the an size undifferentiated producers deposits I times, prove which interest concentrations of difficult available income, bank that bank times in telling more in can ability to EPS virtue gather you means deposits in Because component sufficient being sustain talking at the a produce their

consumer's more Power J.D. a course, Of of land. has

to share little in can fans, our Coalition businesses. According a the in Greenwich, is focused in Promoter that promoters of our the to So I'd Greenwich, the results competitor no footprint an Score. And create our of is experience high-growth much large, is course, and Score, and we continues that I more to more we more Nashville right a we're X a nearly to in best so in shown any right, XX% nation. share, close Raven experience numbers. What on pace, be to valuable which see that the the than ability one That's rely took to it deposit I'm the in XX know our on is franchise. large hope coming incredibly about here Nashville, so begins markets. markets, in of country Net our a the nothing, surprised nothing data exceeding growth, in see far deposit differentiated the of of from in of at substantial weaker summary explain in single that prior country in market the while Net rapid only years FDIC Promoter the that terms the XX market which both XX on most this middle, is of But competitors market every very can that wildly bring June been Nashville, is I growth it on we've say not in life of bank literally we you our outperformance opening in virtually our dominate Nashville aware deposit to we based from. the can on market share for in net on we included took in took the leaders reliably valuable you the of ability how FDIC them. share a of grow easily far better are for subsequent Pinnacle in you deposit take And franchise. Nashville XX% bank outstanding case the and all And not bank October to and the XXXX, advantageous attract far the a recent gave model that. Over valuable so left, share XXXX can XXXX. that see banks share I be while market a than and works can the share XXXX literally in. we're franchise. you in data is deposit longest it failures up the for data, share to the using existence XXXX retain from the I best deposits failures top data building and to the kind is market Think that study bank that's growing market honestly, to at peers, prior I'd is deposit with deposit how

to All of have where volumes those D.C. deposit and here we're when dominate. Atlanta the first our growth. listed in positive like compare share at X Washington, years you And this, producing look now markets in Nashville, we now

a away valuable sustainable going growth deposit blown propels by You franchise. be that have forward. That's to how

test of say since that in failures, now, precisely saw alluded are, to for It did It's in was Great you about that period need time. the we bank -- to of they been to well care time how to the franchise, it to crisis. And ability following and I've how available was I of bank of don't a worst Bank Depression pay. Think we leading occurred the and can Valley Silicon retain up large your never immediately relatively this than failed reason. really, invent metrics sticky that deposits we hope might best in clients predictive we to the deposits, attract it's ability addition can times to that several would be times in deposit As retain know, bank's right? of banks be deposits balances frictionless at this easier And that's to time bank it. X transfer critical transfers.

$X.X that most that likely totaled is bank business in leave players, Pinnacle Pinnacle deposit of losing turn and depositors available roughly earn further SVB XXX not business. the extreme months at to the love The more hard X $X.X the It's you XX that's of is month risk trust of footprint, at XXX failure our proof the of our franchise at of the largest business. month balances according least left the most those the the a not likely next in following to us and billion billion least But franchise. A in to time and likely one, bank of the Greenwich losing and bank failure. and one the of to over those power that just and crisis, a business after

X our business of likely engagement reliably indicate goal to lose likely to total I the next is XX% indicate existing deposit they're of our banks dominate would proven footprint X us, to that earn franchise. And each course, and growth, business in in For share, of increase words, the clients and for produce that returns. terms our to share. of earn their opportunity a rapidly of XX% the XX% their their least say the other of take and given market each XX deposit is likely X most of very is clients' And huge shareholder we'll likelihood to new client that of ability to our for a valuable between months. That's lose to share us in outsized a with more business because nearly ultimate business. that clients franchise the leaders all

peers. Over shareholder our XX returns our all outperformed substantially years, the last have total

than grown largely I we've of law more large the our size, suspect, of peers, contracted numbers. a fear multiple As PE due in to our asset has of most

interest interest returns in of our of terms income as we income terms haul to without And to PE given outgrow contracts, did. growing to total largest it'd component substantially we produce terms of hard of income. which long EPS, in by over hard the far so outsized of it'd outsized of that And in net in net EPS, But peers had outgrow peers volume terms loan for shareholder substantially and EPS be be them an the extended over period deposit to peers net outgrow time without interest growth. us

that employer utilizes a That's component income, of interest attracts largest it franchise. Paul, an there, the a talent highly So questions. of rapidly clients retain reliably EPS. take hopefully, choice, that as bank and can I'll we'll you'll primary clients by bank deposit a valuable stop which that agree and by that its basis client can grow its being and virtue the bank net attract of experience

first Steven JPMorgan. Alexopoulos coming from the question Instructions] And from [Operator today is

deposit side I want to on mix. specifically a deposit the and start

right? that give noninterest-bearing to So you account, into over bank and half that rate in the account? average now that coming seeing on strong or is the interest guys growth? is And XXX. Can into Is you checking that migration expect customers from the are new a very where growth balance, should we outsized where had color? see It's some

Yes.

money market the we'll see think checking interest more accounts, I accounts. in

a that new think new in of direction. point I the the will verticals strategies, lot clients

Looking new noninterest-bearing. at our XX% last, in about it, months, the of account is it call growth to XX% over X

accounts, attracting accounts. course, think sales at aimed interest aimed of need that of still those operating towards is So class money we're the more market products that lot but checking I a more and are

right XXX pricing account? And called spot out relative rate to the are about but this Harold, on the deposits, you you now? where total what

the of growth I Yes. I close little account think would is pretty that. probably XXX, XXX, that that Steve, rate the, maybe probably the would imagine probably don't now, guess, a new spot a but north just the in in have call wild I it, is right to

And Okay. a of earning to are that XX helping bps yields picking then up asset bit quarter-over-quarter. offset

a rates fourth earning Harold, our yields asset longer-term more lift Is quarter? in coming should up? moved. expect where in picking of Given that have the we

we in the like mentioned, renewals. about expecting the we're construction repricing more fixed $XXX rate We primarily Yes, some lift -- million through loan of coming. got

or we're renewals this coming somewhere I rate quarter. at close $XXX to it, think million in fixed altogether, through million $XXX call looking maybe

Okay.

in net safe say So it bottom slightly the be put down to to that if those will flat fourth you the likely Is NIM think interest of this quarter. together, for we is margin cycle?

looks That's like for really was quarter, different close. this quarter we're hoping what looked Steve. we at several hit. bottom the fourth it projections Yes. But it under We're scenarios several we're really at the ways we is and hoping when for, that the different

directed you're of hiring to on new producers support staff. expense now balance putting word versus then Terry, out, more that And the you're are accelerate When of I that putting the the the that the all commentary out at I the being pace appreciate expenses commentary side, growth put together? know together, the give Could given rate but those we put next When don't X I back us to opportunity, office. expense year. start rough just there's how you less pressure market for I just range on those revenue about think a should because to how

accruing We're would incentive add XX%, at our plan costs. got for cover increase be XXXX that we'll so We're expenses to the the year. looking largest the into hopeful Yes. XX% to in be expense now, plan right at we've we're and next --

different we We that us committee produce. can produce to the that are and Board ways several and cost our cover introducing still everybody revenue growth we think expects that think additional I the to comp

number not expense to EPS be obviously hit. unduly to that our going to going we're is any into our cause plan So introduce

percentage the are likely that get we're always try to We're year group. top So achieve our peers. next what trying our growth looking at to us we'll projections and to and well, for some of into likely be quartile

But that's as So about salad we're for a base challenged with to we at expense this look on talk Terry's diligence the into of same I word are here in lot our more Steve. really us a ready at of to where know you, quarter XXXX. we expenses. kind look not lot time,

the... just pressure office, because back put expenses Right. new less pressure But less Harold, if hiring or imply that expenses together more we of on does with on

notion in done as that operating the many Well, that year particular X support for intend better groups as We leverage on hire we've to the next obviously years. will sure. don't produce over last

to is year of also I our more the So to that added want What of we're payout incentive target table on sure expense accruals. we that planning an make get a that base to is our increase next benefit.

let don't So about just -- forget don't that. us

what on gets everybody trying think producers is to I it non-revenue performance. sure that to again, you're of and And make that think is the Harold Steve, net chasing positive. just revenue to ought producers, a tied be what net I do there of the impact on hiring our incentives are

so to the next that warrants payout above hoping year. target produce And performance we're the or

that of net hiring, on positive. to of to the impact so a big chasing but is increase the be line, in net And item it a itself you're ought the and incentive

just strength just XXXX and of your at look it right, markets, look maybe for the pace Okay. about exiting of momentum this in Or maybe new the what if entering than hiring, and you more we us saw with you, as lastly, we I do you is same? XXXX? XXXX full And at see year out, Terry, just growth, year, deposit the expectations zoom for loan

know it'd into in failures has quite be lots more it you quickly This would interest of caution. rates think lot been momentum 'XX. about for lot about But what business as had I bank than it here fear, variables are than more early I would do our you today I to the out is but feels Steve, at say, the in, just [indiscernible] concern lots inflation year, of opportunity I better in what stable model 'XX. look a when all concerns did and it of a

next Brett is Hovde Group. from from coming Rabatin question The

wanted charge-offs obviously I can think increase little and just if Or in credit of then credit can the $XX is about sort about big But banks about was were to in Wanted normal? ask bit to that there a maybe maybe just that SNC and just normalization about talk few that quarter. regional classified how was the And general? talk how one raised you this that into anything and talk you the net you a of more we're we about just million the that? assets, book that kind of quite

Yes.

that as this We be currently fourth charge-off, with are get Brett, quarter going consistent don't in Or net we are that As the today. for about? talking were us far warn you anything that thinking we'd without are interested where into somewhere going we the charge-offs did you I information quarters. charge-offs think quarter, from the would prior express think what see on. that to more increase outsized significantly

the Yes, of was that charge-offs, net of had to anything increase credit run how kind you hear kind And the of just if just impacted classified, I that about know that a kind if maybe How color was give commonality. but underlying of book you could and characteristics one that on in SNC portfolio? any that portfolio? there lead, you then much wanted any there just

did up The on Yes. classified us. bump

I performing, increase credit. they've that they for where one all their that they're think we to primarily officers a so believe are credit a not healthcare -- need That have where and the and just not this classified performing over contributed one. metrics It's downgraded that that the was be credit they banked they quarter while at to it. in are looking

So that that. was

SNC in about X% loans our far concerned, as total the running we're As book is of credits. national shared

know relevant charged of end unusual the Nashville it, kind that. a can of approach want in was them we that and line. there's way the of -- we that the was -- discussion in traditionally only idiosyncratic and was development want there of markets. The of here is the we not at credit a in to all such us, banks that largely done market. us So one been our business loans business. It and We to in we we've themselves, off other little of also because quarter principles that for it want we an a for I to bunch be bank this market the being them anomaly were in be about bit lot the of And

And that's so something with normally do. not that, like to we

on So I matters. similar see event don't a think that on particular you'll both

Brett, sort metrics. of on credit on the of that thing normalization

I think forever. they'll can probably to have There's chance lows operate at heard you me say no normalize. we historic

that still my group. have nonperformers best are is, even will there, the bet you quarter. probably to normalize. third down increase in your they'll in after be But of the sort when look so during Classified, peer the And

perspective. so my it good they're again, have feels still up really going from And pick to normalized, to but

to would quarter. helpful, the It seems the tenor the of bit something Are like deposit on understood fourth sure Okay. else like -- That's cautious of guidance, an quite guys. the pricing this it in in industry pricing? be the little struggles continues, margin sandbagging just margin relative of seems then back I'm saying in around the got upward that fourth kind missing? in make assuming funding bit on want a potentially a trend costs not guidance assets the for and just maybe being you just slower increase I but trajectory deposit of is the competitiveness that I and quarter. I'm the And you've to there year Or better. for you're on

opportunities not think No, I the at got book the loan behaving We think our that don't repricing said, great is think talked believe a you're do we We like deposit we're well. if -- you we're on bottom, bottom We missing. we've on near margin. about. like

we we can fingers the crossed not we're or as we we go up. are move We XXXX. whether we But sit going today, are, we shape our where keep think to good into and as margin think be as will to in pretty we

The next Timur Wells from question Fargo. coming Braziler from is

Is that in is rate dynamic with that the more for NII net is as net expectation line keep limited? some income lot keeping long higher discussion interest as the margin. here how that growth interest NII for longer, the there around that acts a in longer growth a Or about offsetting same comments, higher might Fed of is accelerating? environment. accelerating, wondering Just is I'm that of and just

Yes. a great That's question.

that's narrative. are going our all that pricing of be the keeps Fed to likely loans by. think perspective, on higher I lid if these the our kind book as this But way reprice longer short-term our typically of will kind from rate behaves of rates, for we've the where and got fixed most influenced deposit

of you increases, competitive we're our the presently. really competitive we what costs, that if on any pressures So more then kind costs deposit will don't be drives deposit believe see and rate

over pressures. we conquered. don't a So obviously deposits think at we that some -- already rate nearly lot we've the got to mean, in But think increases I we'll same have of the get due got we've time, competitive to don't hill we've

talent you vulnerable good of one then in of maybe their through market banks. you Can to know picking larger up and landscape? I efforts Terry for line in just the talk times more And the you've a recruiting. had some success competitive the Okay. your in and release, leaders accelerate competitors couple maybe from mentioned asking share

well. as through in what some like know I Now in then the accelerating there's numbers for landscape? around from some talk competitive just you dislocation that if 'XX. put look could might banks Maybe regional broader recruiting And space effort

Yes.

for the a you question, bit. the here think thank me a chance -- little clarify I gave to

some our So dominated think standpoint, and extent, a be are by Southeastern to share of I leaders regions. you generally maybe market, from every know X in to almost America Fargo, in Wells footprint and competitive who going market X urban the they're banks. Bank major Truist,

-- leaders. bank. is of those the do the Generally, scrimmage that's or scrimmage bank you share over ask And the it because years how I to with little us line so line that is compete people market of for this of tomorrow. A always don't the that little lot know answer

those lot to I We are that and I hemorrhaging mentioned due issues. comments, market of finding a some my in integration talent, or think dominate banks our --

landscape lot pressure the to, kinds A regulatory them most of sorts losing I them all brings of think lot you there, those listed of of of if rollout all A things. pressures, staff. a Some tightened think, because of cutting them banks, about and organization. which due are things. But difficult in are those continued their staff those policies have of I

that vulnerabilities say would so today my vulnerabilities than enjoyed XX belief our enjoyed is years. first those that the competitors more really our we've And I that we've hire, seem seem through throughout vulnerability existence. But among the

sort seasoned be that opportunity. franchise do on shoulders the the once-in-a-generation but mean what to don't a opportunity to is that I disruption. believe backdrop causes need be it build I dramatic, so of to this that's honestly say, we And me of a big of to

I what that a a for terms us of the of to you've terms think last producers I In hiring we prior does set followed of people, X new years mean revenue that that think record the volume 'XX, hired. in we while, over

north records. from records be down, My revenue previous won't year take it belief maybe approach to is We this of that say, back this hires. year we'll XX% do those previous

hire producers be to XX% So year more able than next revenue year. this you might

there capital longer-term some of the years, embedded I to does now in partnership is with in for getting time? lastly been kind maybe with discussion ownership current the the just period more of longer in already overall some fourth to the stick then that quarter, And avoid that structure color. on change view BHG. maybe here great know CECL or on to Or recent of reduce a in maybe that an entice still That's impact your exposure? Okay. a and Was want me on position Does there's creative effort for impact. lowering BHG? CECL the of

with to with them. BHG, Thanks meet I valuable advantageous impacts them what don't We CECL Yes. for very market their be We into what the for them. outlook We're into strategies question. going believe the be our BHG. can XXXX. we optimistic what a they that relationship understand think a routinely. our and for great that We partnership going about would is view have think franchise anyone accomplish. And are terms they're that short building that over of could and might BHG with now segment intermediate still our valuable

year. they've us accomplish, what we're to of and next proud about been be we're optimistic what to coming So can able

is from coming Piper Scouten question next from The Stephen Sandler.

and/or newer into come hires. that's intensely some more the for to you markets. of opportunities the M&A you new from I D.C., some any dislocation of you it might markets of guess, assume think these is, I newer plans I at any banks, guys in with about question a of this other the organically with weakness lot like my accelerated to sounds do going most that and growth Atlanta, push point? continue hiring the guess is

Yes.

me the I last take part -- the let think first.

relates than I think more as to we previously. it intensely considering M&A are

we're the is answer that to think not. no, I

I talk extensions you've heard think so haul. a long us about and forth. Stephen, to as market relates it over this

those line be same just you void want to Memphis and that dominated us to question. I draw mentioned because by D.C. to The down players. in If there. Florida response and Timur's all attractive to it's Florida. in South up to to markets we urban in is the triangle go a Florida, obvious is large

to initiatives to We Florida I them. that up anyway, do not, are does. Generally, this, worked attractive to find don't and group need sit and way here, markets. about. our up those know hey, are recruiting will out need same organization some Jacksonville, way way Florida. that buddies. to build somebody so think our we our bring could the somebody other right all set with They these And turn and big to Tampa, you We this we our okay, here find that occurs in says, I've a It my you bank. say,

methodology we'll so for produce good we find existing good and pursue We we have to that's hiring outsized don't them to the current see any and the do feel month year, can next market something that growth. if right and those a next we to us. We footprint okay, or big go like for will And think don't opportunities. do that's And as build too. find we'll go doubt, week or we see do that. But there's next no if we if the find team can extensions bank, them,

have don't is recruiting get going current growth. footprint the believe to the We existing there. outsized We in to produce model

again. but I've have hit it not what I if hope you So asked I want,

there time, kind for cycles, and credit been the and you be seems there be what That's very to a Terry, tell you No, Appreciate then guys seeing. Can you seem for actually have or while of know, have the confidence a mean people expecting what you that through to people back successfully obviously normalization won't XXX%. between guys And I most expecting fears the credit I you what Terry. disconnect on gone around you some big what are are downside? helpful, be bank catastrophic maybe you normalization or that. running over said credit. gives some or what us to what banks and that, expect hopping are

Yes.

the think how is we principal develop our business. thing I

the so at people XX somebody just we years. seen who we we that or is successful of reminder, is do hire quick job And has experience bankers a the target average be what experienced

forth. for have generally, that you're at and handle when years, it XX it the produce could importantly, produces because that quality with been going leave decades, hiring the book growth move they handling well outsized book long, because book it they're bad for asset business familiar of credits does behind they rapid because so so And on that people with X.X they credits what's the quickly. But more those

so is has And I it that my And do that. to that that the continue again, performance credit will we've outstanding belief that, accounted had. for believe

and say great back recession, on look did it's X on Some I'd people -- you have Stephen, yes, whatever go just lost lost major regions, the at X but In to great I First I the America, that, I little all at from "Well, say, period a the you of time can it. When outside for XXXX That's we've fourth to our do things the how little talked SunTrust quarter the you Xx X%. banks that horrible a we if Bank call quarter about losses." Terry, level. here, think first don't of recession, worth, of you the that more in number, the mind -- period it's comment competitors, than from less XXXX. but time, Horizon, a anywhere that than

outperformance, number. an was a bad it so And although was it

we We the And made into said, immediately had prior so going great bad. recession. what completed X just to it acquisitions well,

the possible residential to left have we the that concentration didn't have commercial but that much model don't produce natural We in the made the real of concentration one. estate in real time acquisitions way us worst with Our today. estate, at

are. reasons so today the our we in cycles I differences principal versus the the combination of are good the feel where company prior model And and about

clarifying last one maybe here. Perfect. And Helpful. just question

the You reserves this you portfolio don't year-to-date. great. recoveries drove of I up which I think increase? have those that guys time is that But there XXX real you like a consumer percentage notice anything loans there as that there just which there's mentioned from around, that Harold, in to XXX. is meaningful took a estate, did of lot

So see tick we're there. it to surprised kind of up just

Yes.

driving require is in the model I borrowers those percentage may that Moody's is small think increase the what increase. that outlook for

seeing any you outloook.. Got it. there gives you're now But real nothing specific that that right

really. we've not don't seen book. that -- losses think any book. that consequence think certainly of anything we No, any I We don't anticipate I in in

King Brandon from from coming Securities. is question next The Truist

of quarter. know restructuring was wanted just get an securities more in there portfolio. to some the So thoughts idea the on I

there your are plans how trend should what for forward? Just that going

Yes.

anymore. I to think we're imminent about we be have to don't -- where don't do we on any securities. I plans need

here. see what hold here and happens We with will right intermediate probably rates

the we've segments gotten the book I think get. securities that were of we looking to

on going So here. we're see and to here it hang from right how goes

Got to more hiring. available just normalized wanted type the it. maybe plan and then, just accelerate I angle, another just of Could to a how Terry, environment? talk about compares take that more And that's of to kind to you talent

Yes.

advisers, revenue the producers what I the and -- book small the be focus for middle speaking advisers us available of is are the there advisers. financial advisers. and of a of of the a would management talent term so that's business bankers -- we're who wealth clients category type we them business, use what are of But book Most think market biggest of the control relationship industry calls managers.

should really of most hiring that that's where occur. So

other And advisory. that, wealth forth. of revenue categories and brokers, to we've when in I been producers, I'm successful administrators pretty say The so other speaking both trust

large producers. what So relationship book revenue might you're segment just an the those are sort of of of that answering handles business. banking I Am largest Brandon. asking, as a think But of secondary categories old-fashioned manager is you what

of of And ago? a are kind of wanted higher that's to sense couple I level talent more years of a a seeing compared you just Yes. available now to get maybe

than the that level at an to have the it's months. is say XX that that higher hard I me talent available that but It would say expectation itself would would we XX to volume talent for been -- we've more hired, a be last over that's the be the the than

broker advances And then and funding. the thinking of lastly, just could a runoff No, runoff as far us you're give that's as you and deposits fair. in wholesale Harold, of FHLB sense what if about

year, have think until deposits, off Brandon. of I the running year. coming deposits for have don't Broker very think next meaningful Yes, they'll the longer think, here next FHLB first up I that much terms. be in quarter advances, I we some are renewal

to funding intend to And pay now, so on replace our right just core we those off and it. growth rely

it. the what's do up And -- on Got do you you in the Got have know it. hand amount renewal of for first quarter?

million. I think as there meaningful to something do quarter. that, wholesale think like reduced up we the quarter the million and $XXX some it it's $XXX We this intend deposits but I fourth million a about or number in first comes is that well, quarter, $XXX in on our

Olney Matt Stephens. from from The next is question coming

the cost for Harold, that deposits point, last that with? of Any your renewal more that to could On core recent of color the up on compared you as incremental broker deposits coming on replace potentially deposits cost those year. next

Yes.

I think acquired first and around Valley around deposits those were right Silicon Signature. right the quarter,

I think they were in probably that. the, mid-Xs, somewhere in the call it,

for compare incremental the deposit that to does how bank? And cost the

accounts rate. X.X a new weighted now, at in are average around in right Well, coming

ought there on that. some based So be to just pickup there

in later slowed quite the expectations for Okay. what as deposits other And this that about maybe few quarter. to Any earlier here? about balance talk provide first saw bit. data noninterest-bearing the on you pressure points mentioned quarter of the then weeks are has you customers, or then from And a you can your you what the

there's of of downward. end the, middle be to we started in about July, think largely July, We drift stabilization those going the seeing Yes. call it, by numbers But the day. some every

So a we've been in for hanging while. now there

And the so of continue balances buildup hopefully, typically end get that fourth the in a quarter. year. We will the through in

fingers So all we're Matt. on keeping our crossed that,

be going may hopefully, So flattish for the decreases, fourth some more into planning but we're we quarter.

just to BHG on lastly, up commentary. helpful. That's then clean the And Okay. just

see that think adjustments a And some you quarter? I much has Mark how mentioned made. third right? was that some around far you And so Did for impact building were said I have think accrued fourth million. I the much could how we through the and get software the quarter? been $XX in

Yes.

their it, they're business. it. think their get with to out those financing to their, call issues. X respect They They merchant of decided I which is knowledge, done exited

$X and down about they wrote million that million. think charge $X a building I was about for a

done, was for putting next where that those reserves the situations, to that of building in adequate So got feel they those. accrual on for sell hope here an they're it like place But market over couple they've quarters. they're the and X

like saw? respect or -- that, like there just could there repositioning any items where impairments any more additional examples BHG's what And events to are with be more we

Yes.

the a be our has all a XXXX, core because would effort network review I of keenly focused taken looking at want think on not of businesses going to imagine much invest diligent some products, lending product I securitization they're they BHG with whether that set. more to and ancillary they'll or I into bit that products those spent of X quite continue our in. they think

The next Mealor KBW. question coming is from Catherine from

I like feels are of about bit maybe just gain we've margin. there It but into once the X% guess 'XX. at sale and through growth follow-up BHG little I it the picture losses of E&S this a we costs BHG. get moving you've a got the -- pieces, feels maybe a BHG. want on but thinking providing CECL you so got we've impact on on 'XX vintages, preliminarily in potentially credit improving are like to got big then earnings tranche a softer question of in from How lot

year? a still earnings this we see be scenario potentially is So next there downside? Or stable into could could

Yes.

to but been spite some whatever they the is is, you. puts growth of over I or their and here. But a where of what lot investing have generate that you're probably have CECL might rate curve headwinds XXXX time, looking businesses part regarding there's year be at ancillary And we'll -- they've that think to of some and XXXX. I focused they're businesses core their cute going more of to because is not trying BHG going plan on into think on or less I'm be in these into be takes here right, think next I boring. in

in on between in banks investors. places outlook? the the difference enough the revenue the Is sale placements that a difference versus is institutional large make to the margin And difference gain big to to

plan I to they will year. on network bank stronger allocation think the a next

spreads time all mind, point spreads. in keep are in Now those

are occurring the on-balance the a and transactions of The So sheet are they every buildup. spread years culmination those -- bank that's day, of flag. X spreads

spreads today. X historical built higher than were So there's ago into that, which they and X years are

of think, gain weighted to process far those as question your I there's they sale. to do But production, likely more So where on network a as on to they're bank new the on spreads. kind the get allocate average

Great.

Okay.

fourth just the So comment less. was your that more about versus of being quarter comment strategy a 'XX. That into

so. think I Yes,

in they I And comes to want sure want then they kind it think where to position come some XXXX. going what be inventories of do into is a XXXX try make out. to to build out

to Okay. of to have so like you're for positive conversation NII Great. targets And circling this the you year. growth. It then a because growth still just balance typically, able grow fast. you EPS fairly seems hit sheet outlook growth revenue back And

your given as but have about we you with revenue moderating just with about still rate operating than actually positive this think we're optionality the growth, peers, us help probably so just environment think year in. Can you better next the pace than expected? in generating like to would you EPS hit able do comes the way targets. where to revenue lower a scenario growing revenue expenses you at your growth something in be feel that a than slower Is that as growth leverage, And

Yes.

into think I on a operating we'll going XXXX. eye have leverage keener

budgeters do I that of might get is pretty think of revenue position growth are planners to where XXXX to have the sharpen and all prepositioning our how year got We'll our in fact, today expense see as this matter that's whatever as spot number happens. But a what is good of a since firm to that we've we're hard the working within that, that today, range. growth, where that plan. to on the a be, kind to that pencils

As Terry of and said, accrual their warrants XXX% incentive at target.

of just top of you our sure think terms and make growth. focus and earnings been has this, everybody but know quartile I Catherine, in to be the company performer it, gets a to revenue continues

And be to that that so hasn't belief so the at case. we'll plan Harold's continue able changed EPS our growth I to all. we're pickup our next at the in will accruing or And XXX% be because, that and That expense approving year. to it's think of and that point, and will hopeful XX% currently meaningful even at incentive a the base know, that, does you be to as we north intent

of is. gives that sense and you what outlook anyway, So our belief some

about to just peers And I most [indiscernible] growth the think year. Yes. EPS of down forecasting EPS for thinking this be this year. your don't next about but peers of mean question, a your into loaded be of to for in and kind We've -- most

a of down, to or higher to feel growth, you're adjust still payout do like but flat down EPS to that hold even if better need comp can to scenario hit you flat so full that's appropriate than an a might growth target the Pinnacle? or that even kind quartile, still is where you for yourself to you incentive standard And you EPS and of that top have peers, a EPS still still that's

you a for good that. Thank Yes. question. That's

described if you do say do got we you that would my just years of target. be much Pinnacle would EPS is all our XX% to and wouldn't flat I and that growth, were is growth, for growth that okay, take earnings earnings above is to to be not about can there sure what that to X be if the just say, we find get think were I way of peers, what case. And

can happen, question any I rate, happen. at answer Terry I So is don't I guess something you but could expect think that happen. ought the your it will to that's it could suppose to

The next is from coming Preston UBS. from Brody question

cost. deposit on the follow just Harold, wanted I to up

that's is you correct? X.X. I of noninterest-bearing, said the think at the inclusive blended rate coming Is on

noninterest-bearing would new Yes. just accounts. this now on Yes, -- that include is

So that's right.

the So on on earlier commentary, XX% based think to the you said XX% noninterest-bearing just is I call.

implies Is about X%. interest-bearing like that new an So cost on it at about accurate? money

built That's probably that. are fair. CDs into

So yes.

Okay.

that trend the I is slide, next we that of to is expect the that, guess, spot where the quarters? should on couple maybe rate, deposit over interest-bearing cost So

get you'll think don't I that high.

lot but bulk I not -- the to meaningful of they're think new deposit are the volumes of a account us, growth the what growth. generates -- they're

million. core new half $XXX So was the net -- growth that. like deposit was of account maybe Probably something deposits think growth I that,

for million about consistent had a right. fairly side, -- I basis And All also XXXX? coming $XXX million quarter. we rate to on thinking think that you $XXX through about you be fixed should on just the level through that loans a Is said due quarterly next loan

trying evenly coming the it's in I've about over renewal I weighted near was to more And term. X the billion pretty $X next the do got for my math Yes. head up dispersed because towards years.

in be in to So that whatever the with something million, renewals. with number term CRE them, out similar $XXX comes Yes, the the probably probably quarter. like that it's near

Okay.

the Okay. Cool. puts and appreciate on And then just some I the BHG, there. commentary the on of takes

selling wrote the this like or they You mentioned they to down. planning what was? not, were longer that an of that percentage got on had them that, I know was that office they that building that you but you a don't kind I'm assuming know happen do need. granular building write-down they something if no with or

Yes.

in I I $XX-something down like Florida. think the it million. they number It's South think -- bought

So I the what corporate. think in that's write-down

what? for it bought they said You

don't say but About a [indiscernible]. million. to it's about I million $XX $XX-something number want

to think what said I lead X% SNCs. you had were of were you on. Do that, of Okay. And know you happen underwriter the loans

that on? we're SNCs The lead underwriter the

Yes, sir.

is sold, $X.X but of on are got SNC where in SNCs. are bank that participations underwriter the We've all those in billion we've category. those other the about the Now the none lead

Okay.

Okay.

the will underwriters that banks that just other So on. SNCs -- all all lead the exposure the SNC X% is is

order That's all There's buy right buy right. participations them reciprocity or $X.X I'm SNCs. And loans, for our loans. you $X.X running that card know we how about a their In billion in this got of lot now, process. acquired billion of And in to works. to

want to been asked I Then but up Okay. or I just it before. isn't did follow really for a call, follow-up this think it's

think I about but planning try bank? might mean, the And for terms long-term they have? you Pinnacle growth given do term if guys, long were buy another view you just I you is guys that think path maintain succession with to the another of have unique planning. of culture and for of which in attractive, kind kind succession the on be pretty model, how Just you a maybe to partnering independent especially challenging built to bank also

Yes.

Board seriously annual its basis. and I at on least succession They plans, think review understands responsibility planning. an succession for our takes

afternoon. members probably plan you succession and resemble do people's, in first They over got most you people's key succession I banks, I axis, that most [indiscernible] what most do planning. of when X the -- you run here what this say succession all, get other long-term on planning think our would to do do our

So kind plan, both. plan, have emergency they of a long-term

X the I the case X or they plans, think consider long-term handle for succession how variables in of you different really succession.

with most we the number determine one that work to they time. and And in have give and candidates. forth that so continue a course, develop interested potential paper over and is to capabilities to candidates their high Of internal responsibilities how we see of expanded

a pick course, a there. in that have and we move the that could and to to a work outside more that talked talk and of companies capability continue We acquire come up And likely an suitable range firm maybe consider to time do talent have MOEs company to probably and to time and that forward. and talent and with have of us we interest are from to both there's can we then, like-mindedness candidates the full where

think, or Board that don't those to that considers are until in Brody, through were I ensure place So grants more, I ago a existing all the probably succession studies variables set. know, some plans management we year and talk issued

has I any a the would number Board lanes break, much hit like fast you the is was of so man. and the active succession player, fill you know on options belief for work. It's And the open is basketball my all how and

I make one. when all best at to think that's the the really what the options Board place it's view make is look and time they

have guess, forgot happen ask to could Harold. for you in I one office I if Do portfolio really more appreciate that to is? what you, maybe reserve Harold. I answer, the sneak Terry. just on the I

in that from somewhere It much prior points, change basis neighborhood. XX about It's the quarter. didn't

we where are. that's So

the Martin coming Janney. question is Brian And from from next

I'll make it here. short

at Harold, here repricing you deposits and Just talked fixed we're margin on here, outlook outlook, rate on the just XXXX, about loans, assuming higher those that of then guess, quarters? the margin favorably, we as for see higher if remaining I margin kind the how get longer environment, the in should this trend sounds though hope loans it the thinking coming the general, you're in it as the is bottom into about

Yes.

I for accrete quarters, the over think feel that's we've got towards run as kind of had last the to down margin a sure. to lot that going same couple pressure bias up we've more probably a of

Got you.

forward that of nature, kind -- mid- you kind in ex And not sustainable right. feel as to this kind All I far picture going maybe you're then as rate, you seeing that being just like growth -- Okay. the year, level? know income, as BHG given, fee of is single-digit of business about the far about that sounded a just but does pretty just onetime on already well. as the you've talked piece the quarter the mid-single the optimistic high solar big this digit commentary as

So what's looks the income think sustainable? just about how to here, trying

what that for to and mean to kind choppy I of as going fully we years. last the a make several Yes. But it the that's support thing. a of be choppy been intend sure line business. a item, to is understand item want people has line nonrecurring kind recurring, solar we

approvals. I regulatory we've think projects they got we're is difficulty the at and get close when forecast projects when necessary those several trying that looking currently. The to

So Like to there going cap in our of said, large in prospects. invest industry like continue the we've to that some product. invested came I we're that franchises, we and veterans from several

the -- made we about and still got, good equity all present those opportunities we've what that on pretty they along investments fronts feel decisions other So along us. we've that that with our

Okay.

here, of feels kind term? at -- inclusive pretty that -- sellar those near look you're that in of still of still So you high fee the the BHG as you core mid- guess the expect -- from the that income of is calling of equity some least to digits, exclusive to get it kind sustainable gains, forward benefits I but single including

I Brian. think accurate, that's

like? I you get seeing about pretty more you, strong. just year, NPAs know or if in any at, bit building see credit, there you guess, for Harold reserves, the then I on Okay. reserve as with And or just normalization Maybe be fourth I change some is in some we're charge-offs outlook. But into your the just current should -- a a sounds given is still looks what outlook here, quarter thinking level lastly, reserve next we the don't build the Terry, outlook sustainable? do tick likely or up the

now, Right comfortable fourth charge-off credit has the years. are reserves we pretty anticipate in knows last looking what it the any few the solid will feel where in coming experience been at pipeline, happen pretty point. buildup we about now, into don't going Who Yes. our and the We we quarter. big over here But this at seems think right XXXX. what

this time. other questions does queue There were today's at And no conclude in this conference.

You may disconnect time, your and a have lines day. for this at your Thank participation. you wonderful