Cadence Bank (CADE) 22 Jul 212021 Q2 Earnings call transcript

Good morning and thank you for being with us. I will begin by introducing the members of the senior management team participating today.

We have Chairman and Chief Executive Officer, Dan Rollins; President and Chief Operating Officer, Chris Bagley; and Senior Executive Vice President and Chief Financial Officer, John Copeland.

Before the discussion begins, I'll remind you of certain forward-looking statements that may be made regarding the company's future results or future financial performance. Actual results could differ materially from those indicated in these forward-looking statements due to a variety of factors and/or risks. these on be Form of XXXX in certain report annual XX-K. concerning factors found can BancorpSouth's Information Also during the be discussed call, certain non-GAAP the performance. financial company's regarding measures may in the If can earnings reconciliation the company's of release. so, second find these you XXXX quarter measures

will slides the Our be discussion. to referring prepared speakers during

exhibit we website. You them bancorpsouth.com that webcast, These Dan on clicking the are I'll to to X-K slides our on at you'll our to on afternoon. these the can filed of slides comments to also yesterday section where them our Presentations our going turn Investor financial Rollins his in you find And the view can or for the Investor find by and results. Relations Relations page, link now

joining our discuss to remarks you financial BancorpSouth’s by Good discuss Quarter I'll will Thank few credit Chris detail. making XXXX executive a morning, John will more the and everyone. us quarter. to today comments, will prepared conclude Results. management in begin activities. results answer color the for team our be regarding provide Second on After our happy we quality business questions. more development

won't XXth track integration. information XX seeing with and the over our Chris, making the our some quarter quarter of our like detail legal of well but and for reminders The this detail getting I well both of well optimism April, There's traveled and energy to X. an We being have renewed quarter minutes earnings to able April, future confirmed a conversion all visiting to the weeks. great here and lot transaction next past presentation at of our announcement our few towards teams. out seen growth. planning would are the the being item today, enjoyed Accordingly, the transaction, of more great the fourth the in I Bank. planned say looking time our noteworthy We've as most a whole transaction the discussed transaction specific have XXXX customers. our we overall on interact across transaction organizations organization are as we're from the get cities that Everything Cadence since both spend summary obviously second closing, teammates in opportunities in Paul, around as teams to in additional front spend progress first with my call I about call. a as this different April Will around was on And turn felt results. with Let's Hank for we on the together, contains slide X I'm discussed. as with Slide for belief few legal regarding several over already Slide Valerie, footprint quarter creating visits transaction has closing. stronger months that and I've optimistic, as the

X the negative expenses of million shareholders had merger-related $XX.X million recorded our adjustment quarter. fit this provides second We from record our income was and the MSR our per reported another our perspective. million our customers, and believe diluted to continue or We Slide is $X.XX $X.X for share. to communities for We great teammates. operating for transaction available quarter. quarter Net highlights of the a an a $XX common shareholders, during quarter valuation

PPNR $XX.X provision net acquired for with and an had we our quarter adjustment for $X.XX a an requirements MSR $X.XX million exclude we one of an represents out compared excluding other compared losses include credit PPNR to of to definition, non-operating quarter second $XX.X of gain quarter, the of operating reported income, items we represents of in MSR adjusting per from the accounting diluted in would to I in the second XXXX calculation. XXXX When the compared provision approximately This XX%, per PPP day pre-provision XX% increase these which Additionally, first share items, the share increase share. loans. for XXXX. $XXX.X of and in million an and quarter for the common diluted reported the By the sale loans. million million our XXXX. on of do diluted approximately revenue, of $XX.X or increase associated quarter results million point per that net The $XXX $X.XX of first

repeatable a loans metrics, certainly it recognized remaining our brought $XXX payments include in quarter at our in been not would otherwise forward in have on with future simply $XXX game sheet in million did sale, fact This While that that this forgiveness revenue of the PPP the source, operating along periods. we only resulted million is the end. given balance earnings

for the million, deposit of at tremendous develop day day excluding deepen loan of X% customer PPP or for a and development while and quarter. bankers solid cost Organic since XXXX. activities. service $XXX efforts And for away we relationships our normal growth quarter. sales to million over pleased Protection We organic growth growth our first sale and to funding. organic ones, totaled for approximately to repo opportunity time, reported loan Paycheck total continuing this growth, allow $XX saw just loan early to the the approximately report annualized quarter we We're new and another deposit chip While customer the to renewed broadly, provide to a critical will our existing on has more a provided looking believe more environment them at business Program return focus

economy it future. predict makes hard to the While the in day-to-day volatility our

We are hopeful.

growth loan future on remain efforts in strong. quality commentary Credit organic continues will Chris business continued moment. see will more a in We provide quarters. development our to

reported non-performing a primarily we mergers for quarter. our provision did accounting we was loans. to $XX.X which effective decline end the This the by over We with close day compared X. marks Bank one a National for the of acquired United quarter which non-performing by I'll Bank declined closed just quarter, consecutive third assets. mentioning in related assets million Our in my of the successfully May X% requirements record to and remarks FNB initial provision the that first

both the assets integrations completed We June. added franchise. month operational also billion banks These our of of $X.X to during the transactions collectively approximately

expected, both in financial seeing more I'll growth to As allow been have great and contribute now to detail. a to look efforts. the turn to forward company to and teams our discuss results successes from we continue banks our our their John to him addition

as through interest disclosed have that and margin, expenses. this well revenue and few statement, has XXXX. numbers morning other our items our well and as Slides first on Thanks comments my non-interest variances in our net as had of PP Dan. already compared X to details income of X our a our show focus, the quarter Dan trend mentioned summary EPS as our the

We pressure mix. of of X Before we've driven that Slide I'd of these in the these out section, interest the several was you Slide the Xst in certainly the quarter-over-quarter we for the slides. accretion see May that X noted the as X.X% comparability the on by to and result interest primarily sheet balance margin income. a compared this compression that The and the said on margin, are point M&A three for primarily begin like reported and that dynamics first update increased quarters, transactions revenue sheet information on to the to which interest balance continues the on industry the excluding two shown closed will quarter X.XX% of BancorpSouth be for quarter net And put for X.XX% transactions. XXXX, continued to impact

on was into pandemic, would PPP be margin. Going the the that temporary a expectation drag

but while yields and liquidity sale pressure given relatively we work reality done PPP has our in margin is portfolio. However, of which forgiveness through has securities increase the on lower put nothing the that loans, further the

As some our PPP the quarter X.XX%. from basis for of the declined and loan accretion, we first look X.XX% to XX at yields, points excluding individual by further components

basis for deposits quarter saw our a points. in comparable points also XX We basis first decline to the cost XX from

be deposit it public optimistic products. we down, expect take costs lumpy we and we time, continue can some and the to positive fund particularly time While the to drive that remain in

approximately forgiven quarter net with during million PPP, PPP income payoff were the Regarding recognition of or associated loans income that $X.X accelerated included for the interest quarter.

second As X revenue this with only Dan the mentioned, million. of the balance Accordingly components. breakout quarter our associated the Slide non-interest of balance as the at was end not remaining PPP material. shows the fees $XXX net program unrecognized is

merger million mortgage that beyond revenue, the that, notice variances gain of production mentioned that the as cycle these Dan outside the business impact as of just in will the servicing PPP in moment, the earlier, our revenue closes $XX.X commission well I here say we've on that in revenue. refi are that loans sustainable. of insurance known but of You'll elevated briefly through primary reported would our discuss both and the mortgage sale Chris lines a wasn't we've

additional equity Chris merger that salaries details think two some will premium cadence This quarter. incentive which the variance is driven of the to other with insurance the with Slide two very our expected here business by was merger accrual continue of compared to activities. going comp warrant has true-up benefits and our provide While development any on X% market. quarter see will expense, the the associated concludes that headwind non-interest forward, expense That seen provides which a now $X to team our closings. on affirming the around I X over any our with the variance and the first comments line my elevated of and transaction, provide here comp financials. benefits, benefits just that color is merger obviously integrations, of salary the million employee the don't expenses which in items discussion. as first stable lowered is as total combined note and quarter-over-quarter. the well Outside only increased closings

for mix. with morning, everyone. just reported and United organic $XXX We for deposit our FNB customer added you'll of of $X.X billion X% funding billion Thanks, the John quarter, growth growth also and we was deposit growth Slide see in with realized $X.X mergers, current million quarter repo the X, of Starting and National the annualized. the good over

a but this is from obviously Second on pressure public from runoff, and unprecedented deposits an has perspective. liquidity a quarter tax had environment historically

cost weighted additional points around costs of focus of continue down. quarter, deposit to but X still X% deposit at declined XX there We our total our to basis is total continue to for bringing deposits deposits to costs our down, the time basis revenue another average points, on a drive

time will see be In downward somewhat or deposits pressure, public should mentioned, fund well, John as although, to rate the as continue addition that to lumpy.

been $XX first discussed, environment PPP for in. you'll we adjust time data loan especially the growth for loan around as actually loan acquisition organic of the PPP construction, considering to portfolio, parts there portfolio. market, an since items, is the trades a similar view both those reported be our around we while the continues quality have million activity number obviously nominal, Moving that them, net multifamily, X, the pre-pandemic, see what true in, When the Slide growth Even liquidity call or is organic in quarter it with environment is, to in home very a we've which came moving for been pricing of wind we markets, credits. also we in competitive for

key credit Slide for quarter. you'll the highlights see to XX, Moving quality

closed a one loans credit did as two loans. we of assets X in ratio recoveries million, assets, mentioned, This PPP in to the record the annualized, total CECL provision to in and excluding on assets XX of loans All declined criticized basis reserve requirements quarter. net with total $XX.X As and acquired allowance decline and respectively. quarter non-performing XX excess saw Dan We non-performing we PCD another along result from the originated with well. leases as provision net and basis assets, loans the contributed sequential loans at for mergers of this day points total points an of of primarily experienced associated points coverage basis assets losses total including for a acquired quarter all X.XX% the already

as still actively the continue the Slide of pandemic, we at clear the the to monitor on this been as performing from are is amount and we shown do result on deferment payment economies identified as small in currently loans that commercial portfolio time, well. book. in markets are it hospitality loans higher While loan that there no only There segments XX, a primarily and the risk had the is dollar a pandemic, serve interest of of the

to our they plan. products. in of of million current our XX for are will today is payments schedule and improving reported results five quarter a XX% volume return these expectation back purchased expire the Our and of view only is mortgage periods at that look origination as Mortgage quarter, that interest credits for insurance which the Slide provides half XXXX. $XXX was the

relative While levels, quarter. a through the main worked it we've an historical the contributed of in pipeline remains did the as refinances. decline This to elevated decline for large quarter-over-quarter decline to margin portion expected

to represents premium million, increase in a winning new X% market. continued the a which was and Moving last quarter of the $XX.X about steady customers We've insurance. commission in Total second for combination year. of of over revenue to increase seen the quarter revenue due an firming

across increases particularly rate seeing are We board, space. P&C the the in

back Dan his it for to over Now remarks. concluding I'll turn

in environment Chris. growth I like to rate terms and of Thanks, would interest a environment. more robust see

been team maintained of cycle. proud throughout are our management achieved credit both have by importantly, quality and board outstanding this the teammates. that Most successes Our we've

a to side themselves. Our an And our efforts, our also customers relationships utilizing mortgage the Paycheck with team continues speak as to balance bankers develop of obviously purchase strong on of as the and pipeline. maintain sheet finally, our Successes current did job money Program frontline other tremendous Protection the to new deposit a for deepen ones. opportunity

the Our meeting our forward assets to under continues road continuing and our on team. with coming of advantage is wealth to more the weeks team visiting insurance firming looking in and folks and taking cadence management I’m grow to management. time out market back spend getting the team of

win United said I unique growing fastest organization combination within new scale the of a us the our creating now any companies we win, with answer opportunity with we’ll expertise to win, cadence the create our States. earlier, As an communities the to provides questions. win for be win, Operator, our and and for parts a shareholders, Truly our the win, win a customers, of a teammates for win for serve. happy a

session. question-and-answer Our first the will go question Securities. begin now Truist come Demba Please will We Jennifer from [Operator Instructions] with ahead.

Hi Dan, me? you hear can

can. we Yes, morning. good Jenny; Hey,

you of I'm versus loan What you're lending you and said just few improve are classes growth pipeline soon. is stronger? are going stronger are curious seeing the here it about now asset hoping months and to types stands geographies ago, a as what

we're of where Yes. some there places of is C&I seeing is and some couple is other strength that. Texas and where a

noise Panhandle what the you you the Texas at and PPP a off was the of of that. if really of So and then grew and quarter acquisition you pull pull noise territories, happening, back the top bit the quarter think I Florida on and grew Missouri look the at little look grew,

or opportunities, know to continued for has we're XX I So or some but now just Texas quarters consistently XX grow. seeing XX

ago? it And now can was the pipeline. just you looks How talk is it it – few versus larger a months about than

to but pipeline Yes, but been I'm going it's know the I larger, to don’t going – has pipeline, here in let Chris very be on holding pretty well, jump similar. in

our I up making running in have XX log communities is pipelines. and us think well, successful our allowed data multifamily we've it’s competitive, on got themselves. efforts good but creating explore, are calling have pretty Texas to Florida good in been good going key and more the are – opened pipelines opened days The and up, we've calls and economies last and presenting It start Yes. that's for in opportunities a more us and

C&I of space is And Texas pretty geographies, some and those today. especially the strong

deals about second May, expenses. the just question that outlook there? you some give integrated you closed on kind outlook, my thoughts in And us can the on given the Okay. talk Can of just is you two

continue so We the jump one expenses fully we them our clearly, some here end closed in to quarter at were Yes. Jenny those May out too. systems, onto of two of XX two, able we the months two run days expense will with Xst, on be to in we lower quarter. loaded but those on to integrated I'll John transactions. we're that let

So cost coming place, jump forward. want in three, months four of those got the two savings next with quarter that? some on in in acquisitions John, you we've even to

the line, X benefits is those quarter, two to we of the In up acquisitions, salary May X acquisitions. much We've have did a due second that much jump May and Yes. held and in Jenny. pretty the

one was because… depressed And

was QX of accrual down because million had true-up about the we true-up $X in and first – quarter. Yes, a that

So all in just all, making it's pretty quarter-over-quarter even after those adjustments.

savings load do quarter cost So think come are in? of but for some a – you you of have the deals, kind full looking third you as flattish the

we're a think we the completed working revenue right third quarter. the we guidance the the on will know two Xst. I we control I have, what a we've expenses. for months but We that ability three top expense got we pretty cost as them, our expenses on to the don't third don't expenses coming every so I number can quarter, and hard for there. quarter got on May a transactions we've be have for months small always of know full that We try from about got feel we that got for to control you've know just of you saves for in three know good run we've way the

before And so saves going acquisitions do they done, acquisition. ratio then feel typically do at but good have have into fair we've acquisition, more they huge they coming via And have amount don't do are ratio, on about efficiency play, efficient impact they least they're we a forward. of small, cost after than that our have, the we Jenny, small efficiency we the are

Reversing none in second in those place quarter. the were of

Right.

surge and come is to going cost XQ Whatever XQ. in

right. That's

you. Thank Okay.

Thank you for your help.

ahead. go Please James. Raymond with Rose Michael from come will question next Our

Good morning, Mike.

morning. good, are taking morning how – everyone. you? good I'm Hey, for Thanks my Hey, good

good. I'm Coughing.

you're hear, can hopefully okay. we Yes,

press authorization release, you pull because could to we've up the have you Just where trigger to touch that we I assuming Do the got the the the given outstanding, mean, buyback either I where Thanks. look the approved. trading is just that coming vote, the is August in just that before buyback the wanted stock stock would shareholder vote given or mentioned after shareholder you know authority on, to X. on deal is utilize is? it the assume

with I And I question. Yes, is. pleased anybody yes, great is think a think don't where the stock that's

to certainly there that the we're think execute prior Pardon we to that, buyback shareholder wouldn't that the I that point. August unless think post on we at think, be is I I reason window that the open me, is some other meeting think cannot trade, X, in cards. but able in an I

I we pricey, know trends think And Okay. That's this insurance additional have just here helpful. should to a we think you as hard on pricing you a I the color some we quarter, pretty active and been over little is they're And give then about appetite what's the all it's the as outlook Thanks. guys years. acquisitions? how few a forward? that out income, strong in maybe there. know past us move just then, insurance for Can really bit pretty but market space

with the that of backside front I'll that. start have side and let of Chris the

it I talking guys like insurance an was commissions that. hard and to all going say, sounds about

there that M&A casualty got are for is brokers we are fit good. Yes. us. many to perspective, a pricing with good there I property to out Hard we've is there. From the think opportunities, But pricing. smaller out right, Pricing opportunities you're that definitely continue and well those want of think fit there, would for an look that I

as those like our be think to transaction, with to they have so with they're is growth opportunities. team cadence would expand conversations expand footprint looking And a continuing with opportunities, I us, for to able we certainly our

revenue that there in about line. is the So Chris, I real opportunity think pickups. talk

you. Thank Yes.

out described we're there, business. also as You hard it a but winning some market

it's combination growing that team also And that. us, job Dan's producers think So tag footprint insurance great does talent onto help a will our of the inside. I I would comments a expanding but

expand bringing tribute for presence our model think mean, help a of while them are And and opportunities. acquisition us a in that's folks got to that'll produce. to them and searching I we So, also they've training good I

my Great. Thanks questions. for taking

come question next Davidson. Our Please ahead. Fitzsimmons will from with go D.A. Kevin

Hey, good morning everyone.

Kevin. are Hey, How good morning, you?

I'm good, Dan.

can on going to so of you all on thing So frame that, if be equally but model that have for I'll because operations. more for loan with and from in distraction little for with give suspect core the and of try to you PPP that you growth. an that, can thought the guys it's internally mentioned your that you us and those into I start deal margin behalf it frustrating your a sale, a or that

near-term don't there that I'm seeing that So you wondering to miss want accelerate out in the and better don't Is want decision? puts on distracted growth from, chose to you a just coming takes there or the be that or fact that. are other loan you to in reflection you that

Yes.

the decision So let me process. start with back

that So for we're were loans. automated pricing today along had smooth fairly PPP I a that we buyers But PPP we there was around, process all think making XX,XXX run bounced it still produced that us. out there for driving

servicer. So contacts see through we that recognized you forward over of as have that normal we our number of fourth piece raw or would process. XX,XXX the revenue go the continued just just for to customer the eliminated We quarters pulled that time the consuming basically workload were that to in forgiveness we from on bit and through a pricing forgiveness loans so those or new to have numbers, to almost the second can team, every move improve was you third on the able

across the technology real big now, decision on, no all you which the they took discount to our focused it and get is our off in our our tremendous tremendous a folks on frankly, of opportunities being And move I care parts seeing entire best, pretty know help that there do good little those of that relationship think the costs customers you front allow in to think and seeing are success gives grow revenue opportunities, bit, that time hiring us don't revenue the but new bringing I growth win footprint, was to and growth would tell of are take that out managers of opportunities. of us to there speak customers. folks managers on what I So easy doing footprint pretty producers. time and our back a we've we're for a all by had take I is was us relationship

think lots So us hands it obviously to program the a XX care has focus taken I be of took that was of effort. lots standpoint, and beneficial of process, on that. ability our the revenue deck And gives want been taking PPP it us the months care do of customers from has we back for last us, been all to but it's been the on focused this time, an for to

Thanks. great. Okay,

Just quick follow-up as you can the just the we're a to best on looking forward margin.

going the hand removing So from on removes one also I liquidity the accelerated considerable. know in forward, it loans, largely removes at quarter, drag second the excess fees – X.XX% remains PPP and the still

pace margin? we So eventually how we continue slower to expect and to a stabilize, should lower, at but should grind Thanks. view that that

on size, see we I that costs be down, sorry, there in in button. we to said, John nowhere I'm put continue second. I so that, able we Large the to going to of to manage continue balance to piece we continue just this it’s this jump is sheet punched deposit a was let deposit are deposit deposits to continue inflows, deposit I'll those inflows, wrong just think just here to hold. But cost is just costs manage down.

it the where So are I'll holds, the holds, sheet If the margin. sheet balance from the larger on there, sheet jump if we? balance the the John pressure puts gets, balance more

balance Well, our lower assets look Dan accretion XX% us – if said, mix investments that short-term and where and investments about adjusting the balance before for mix. that and margin short-term and earning that's you the securities investment X.XX% quarter the XX%, bps cost of XX in sheet sheet at because as

to second was back earning you go If quarter, assets. investment of securities XXXX XX%

So difference that's back. those about two the going bps profiles XX there between

before Let's more we variable got floors. rate we well, and billion talk talk variable our about about so floating XX% and positives have are in rate, of rate that growth the loan Certainly, X is loan bodes floating net quarter, did protection any negatives. we've about of loans, for in about the XX the billion about loan

on average rates are those fully – is paying XXX, but a XXX. index that Now

more good. margin. And – deposit the So get rate further remains – it's a that's movements outsized as not to concentration growth though are earning continued or – a margin dilute it Dan Loan we short-term deposit darn up of some take negatives, yields the further assets well, going to and earlier, quality from movements loan the growth away mentioned costs. the start upward. if have our we four are was robust. three will at seeing credit would in probably as We And that pretty rate going chipping dilute we good holding securities investments pretty in

We seeing. and in if to outsized think with So be Those keys happen near decent to the we going this the what's growth start to with growth have may margin. trough, loan what's the two the liquidity happen we're could to going liquidity and loan improve are slows that down. I some

after XXX for adjusting So see. and have PPP somewhat maybe of trough, we'll accretion to a

Lots parts. of moving

Yes, gone. certainly. less few great. Thank a Okay, you. with But PPP

it, Kevin. help. there. for up Appreciate to Thanks Trying your clean

you. Thank

Our ahead. with next Please question Stephens. will come Matt go Olney

Matt. morning, Good

to in guess curve Is good given of to the portfolio. the fight just in of come XQ in yield as guys. this securities the more around question the deposits in with of based yield or graduate are Hey, just half partially purchases, timing question the I curve. selective back quarter. the strategy to you saw being I last is layer continue morning around strategy the a gradually the off we a to the that stick securities, want by

of… purchases the of timing The

securities quarter XQ, the layered more or the back half front the Of loaded were throughout in more those half? those either or the in

the what have think of last you're talking most happened if of trough would big Yes, the what's coming don't that in like we and that's during anything price sensitive But liquidity. the couple we been on quarter weeks the were early that looking to already I market And as bought We're then watching in about. out here, certainly everybody just there. happening the quarter, at into we're else.

we're the throws been and to as the think John, nothing can – built off to continue And there at total, the think like earning better the were I we overnight out I flows you add we because it, from that's cash cash feel securities want virtually that to of in off ladder, and flow manage that? we funds that, that having flow portfolio. in over from coming something that's looking

been the that. X.XX, That's mortgage good off But at mortgage gradually, cash X, speeds, as time. throwing mortgage buying backs liquidity depending flows go comes prepayment throwing we We've some like on backs through off backs, in, as mostly something yes.

be It'd into much it book. we the put could better loan if

Yes. appreciate Sure. that. I

the certainly. giving We're XXX versus spread in points up loan book basis

yes, a that's So negative.

of seeing Well, build. different right BancorpSouth to now is, we're bit portfolio than I part seems Cadence guess to quite the and what other their the in at strategy the be terms question liquidity of a their

excess we deployment balance appreciate liquidity a anticipate come sheets more once active shouldn't closed? when of should those it's if So their together, do

made that we've that know yet. decision don't I

are talking Our daily. teams Certainly towards are ALCO here. and the accounting day as integration up we line teams the talking finish ramp every

both what other know we think is doing. each I

way. our hope a balance balance Their in we is, that sheet is in is C&I I a that think sheet. can faster than little deploy credits that different the built

in diversification answer the strengths I it extremely to of to companies moved that's know see I is the putting the they're billion for portfolio at have as $X the rate. brings overnight that some whether one carrying bond an two we a us. would we funds of don't that you into to that think expect together low

Okay. That's guys. helpful. Thank you,

Thank you.

will Hovde next go Our from with question come Rabatin Brett Group. ahead. Please

Brett. Hi,

curious for piece then down bit XQ. an and business. Hey, the just quarter, good that bit bounce little and was the mortgage pipeline morning, little banking back surprised outlook looking Good the trends figured, I from morning, Wanting just the maybe of any does the margin, on to a in mortgage just everyone. sale one, I on ask a gain Dan. was about the a of

Sure.

to and I let too. in take think going that that Chris I'm jump

that's at being looking you're what when the down. drives margin pipeline So down,

see pipeline So we that to can stays that can the the pipeline the the swing you're because a happen. pickup quarter, on in the from we If way, move normal exponential pipeline move depressed way. a in could rates even the there's negative an along to back other Then going flat, grow margin has the if possibility margin. some our some this see that's

production. you'll refi in quarter think things one of only is, was XX% I the see our of that the

we XX% volume. year-to-date is were where of total we the XX% overall the new months that months six money, origination business, ahead looking out of our at We're you're XX% for purchase quarter. We team XXXX. actually think in continuing first the were money So mind in first just or to when in six

XXXX. first X.X So almost year from a last volume got in standpoint, there. we're six of in We we're X.X in months billion hanging the X.X, production billion, and at

out is that? the teams obviously the margin add if a you the to there So Chris, factor I onto want changes. pipeline hard, working think

guidance can accounting as to the No, recognition, have presented. those way revenue it it you the and explained are well, you

little So a makes it it bit lumpy.

out the were half same peaked think last downward probably all about the margin. it out to is still – bounce some type bit. like lot to high, volumes can you'd still more years, almost pressure few production maybe a volumes, little bit, it tell And best clearly expect on the it's a It's year rate volumes time. see around. you two the deliveries to on or quarter, a how the too margin good. were depends a in than of maybe I – would month locks. every I that if roof quarters, of plus stabilize recognition X.XX experienced And would when margin and I the we've every over little production rate accounting too It's this pipelines the last that, of – higher just, probably probably it's look all – are that without move a going locks the there. last And kind we low. on bit on into unprecedented the that it, at given prior talked there's

and more And that availability the to markets it's think will depend some of going to housing seasonality. on I refi good of a market. as lot really these move it are

that we is of the key producers. product we all from hear – that of Availability our hear

market. our in especially Texas Yes,

So refi nice availability depend the of on stuff. and will that slow and some then of new

Appreciate update I and to forma Cadence curious color from curious the up M&A I from announced, pick been once people was just of maybe And the people. talking was revenue players pro producers up but tying about deal with that. retention the this company? usual on Okay. terms getting commentary the opportunities earlier, the on the with, was, some in how about know side then And asked the core thing the with other has for about keeping was I the

Yes.

folks, I a answer's of the on we've and the talking and as Hank Chris overlap. I, there's think Paul Valerie lot fantastic. and road not whole and to been direct

grow excited a are to So those about with teams sheet. continuing bigger balance

left. my to has job a anybody name on done great retention. think I knowledge, They've I can't that

We have agreements some retention upfront. out

So locked were scheduled awards but with lots next couple in way, places key team past we've the what's couple made haven't visiting a excitement a think along we folks faces, month of we to-date. more going got I in and this of is certainly, stops rounds Lots couple had the of weeks. in of on, the as the retention some excited just the about smiling

I to would attrition any able that seen haven't speak We of. be

the great. Appreciate color. Okay,

Thank you. Appreciate you.

ahead. come go will from with question next Mealor Catherine Our Please KBW.

Catherine. Hi

a mine hard the was the good just is give on answered, where Most some growth. – of little morning. one have of we kind coming you but pickup maybe Hey release color bit follow-up in determine been can coming out, but is the on sale… from from. of really C&I then that think and PPP the like coming looks perspective PPP I loans type declined that's two the growth deals a It loans lot coming and from just lot, a a with, to from. in a on growth It loan geographic If just where

correct. That’s

of on newer forward So look just generation? really seeing where you're that kind

grew spot the Yes, is out other on blanket on, process. coming and is part biggest were that's grew those again, that puts couple bit, a mostly from. the is ex-PPP Texas C&I which geography star C&I, of on PPP you're numbers. category, the little where Chris? that a had coming C&I is a geographies but the the And There Texas of growth in that.

the PPP That's the they’re C&I disclosed, we the covered drill book. it. And noise to numbers, was C&I in in that down

It more the hard and organic see bigger but came mixed, opportunities that's space. of you're And of drill So you most are that if multi-family. opportunities from then the markets growth to would C&I geographic and be down, the they're mentioned it, just right. some of there most we but

number would of end were of down My a to in and continuing of that out end daily by be it out basis. quarter. at be decline to the $XXX hope completely PPP the the at quarter it quarter. end million third fourth We on virtually that would of certainly is the the And of we the

Great. Appreciate color. I got. That's the all

Catherine. you, Thank

Please Capital Arfstrom [Operator RBC Instructions] Our next with ahead. from Markets. go Jon will come question

Jon. Good morning,

did decision morning. you Good A on what the behind? few was morning. keep good PPP, Hey, follow-ups, what and

the PPP of and some didn't the then kept, you that's anything was we divest that through parts we something to small process we is ability And in answer the forgiveness. move forgiveness, can't acquired in of that. acquisitions the little of The have two process

is through of the So forgiveness that anything was the two on what balance in acquisitions acquired or the stayed sheet. process

this trips of on A be where you a kind give we critical focus didn't little And something footprint, curious, had picked And we what I'd picked pluses feedback minuses? the the kind just up. us you realize. just information little more of said, across on more new up can you on is you to bit your and

that we we of where a knew and were. seen had because whole lot know I don't minuses been there's I think

big buckets boxes that of bring sides a I aisle, trips our both issues been Cadence our little that sub, with for CRE front, kind We've have to sheet. as what just that All of producers out think team grow? the Texas most concentration we've that I because down bit. us? is a each concentration we tried does the our we think issues. on have Cadence concentrations of is as got some there? the What with been visiting some trying balance appetite folks, much on folks on Can were diversification our been penalty had throttle to back to we focused on what to has on slow plus. a revenue mean of concentration continue they And in our bigger and some of other

again, very So the of conversations have positive. most been

are going and to where well merge we're the made in that going support day just On into the behind it’s have the be because that teams going XXXX on lots early on all we conversations scenes technology on and get that the But of together. us, behind we'll day before game the to switch flipping start on, a questions. work lots actually decisions of to support different creates

the Chris, do growth some are this signposts what and when moderate some you, of a think and question of you for deposit you're considering? will looking at

Chris?

a great that's question. Yes,

some locked. the we our group basically last deposits over had our cases doors with months, XX Now while

answer system, liquidity. the been it. would So expected it's have an really of your Into unprecedented I can't time I question.

right. first in months year, in at organic of the six We're $X.X growth the billion

three XXXX the back It's and we're $X and going think far. But at the to can mean, that's your them, acquisition. maybe a even that I pre-pandemic, it's I can envelope, just, And Call billion to you lot. so put of or questions. ask staying they back answer up government two

payments was There the just was on additional deposits this stimulus We're month. flow tax credit money child put out now. through in electronic the that seeing

my maybe to segues you. of kind question, last but It John, for

normal you consider view? the and would charge there's to still your revenues more revenues, you card service Or do think to deposit those the recover? from On point of just back room

quarter-over-quarter? and The fees credit debit merchant card, card increase in

normalized there's year-over-year, or alluded just just or through. flow Yes, that seen payments to that like I'm of somewhat that's some you've quarter-over-quarter more if you still you curious rebound? think room you to Do for feel the

may that normalization normal be in in back think I certainly economy. the to some there, getting

So I think that. partly it's

Card good. looks revenues

but way compare And card on they're during And than back so dropped then again, at side even, wherever the they've off, back the pandemic, I services the better look pressured and running think we other been. when live, people were NSF, are the of funds that charges service cash. in insufficient charges, deposit and to primarily deposit lines got service that still Those because would revenue is be continuing haven't category. be the are we

merger asked more your more name do you I on change, feedback on side the I Any this a call. really non-issue? guess one the it as down. from view

that one Jon. time, more Say

the name the view coming, any change do change, a On from name on it or non-issue? your as side feedback more that's you

we've made down opportunities Cadence quieted Bank. certainly the Yes. a rounds we're doing future behind with what the the name and like That's had growth why's opportunity as discuss and to the we've

we to I we'll from that actively Cadence, are and fairly know energy, sign fully current build a aware time, changes so XXXX, along we it. as but spend change. name a head make we've effort to a all of when think working all as that the money process our want teams dealing behind rollout together got out be and a again new well up and with rear are And we on we when said to in speak. marketing state, that us that's will We sometime its

Thanks All guys. it. Appreciate right.

Thank you.

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

as all you All our you. right. of to company. catching us near you speaking Thank again Look with for look soon. you today. again Otherwise, joining we'll forward and Thank future, your Thank about. we're forward you for with the out support to in up

The for has attending today's conference you now concluded. Thank presentation.

disconnect. You now may