Cadence Bank (CADE) 31 Jan 232022 Q4 Earnings call transcript

Good morning, and welcome to the Cadence Bank Fourth Quarter 2022 Webcast and Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Will Fisackerly, Director of Finance. Please go ahead.

morning. Good joining fourth for conference XXXX Cadence call. the you quarter Bank earnings Thank

executive with team Dan, have management We our here Valerie Hank. Paul, and us Chris, morning, this

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

in we can slides at at where Presentations to the website. the page the our exhibit the Investor the you are or that them ir.cadencebank.com by to to you'll going You our our filed find of can These Relations Investor webcast on also find yesterday afternoon. link slides section view X-K them Relations

remind apply I disclosures metrics These our around our to that our that forward-looking would release, disclosures documents discussed. be regarding you presentation with today. forward-looking the presentation, customary non-GAAP may earnings statements along statements contained any and those contain in

I'll for comments. to his now turn Rollins opening Dan And

[technical across of difficulty] and of our company, change, quarter footprint by integration. success our our systems and for progress completion marked the related fourth year highlighted rebranding tremendous a the

our The are now be and and our we as business the discussed teammates, excitement under shared results one optimism validate We'll development brand. operating name unity, of morning. by this will efforts

As we XXXX and results, for quarter highlights and look annual lines year. similar and story both at are very quarter the fourth key the the full financial our

So I'd both like about to make a those. of few comments

per which $X.XX net assets fourth in or annual average the reported million income million share. fourth share, $XXX or for per was income $XXX.X million common resulted of We or adjusted adjusted quarter Adjusted quarter. of $X.XX X.XX% $XXX.X of PPNR net common

net $X.X full XX% or $X.X loan a year. fourth billion the from strong or of XX% benefit quarter which billion the pipeline, reflected to continue in and is We annualized for for growth

diverse within banking quarter. Company and results geographic quarter corporate a our quarter had regions net six team Our were and very outstanding had of report our growth fourth the seven the for product again standpoint. We from another

with along industry many results our of our We verticals, to from favorable see continue mortgage also specialized team.

flat X.X% were down quarter million deposits the for fourth and $XXX or Total year. the for

of account seen our remain many deposit products, a While and average our peers, we, shift decline in preserving a on and core have growing focused like relationships. towards interest bankers bearing balances

and structure, an and product We effort relationship offerings to our tweak in to this environment. our the managers tools posted rate highly evaluate ensure our to continue compete in competitive necessary have

the The balance we sheet that in discussed, rate improvement just continued with margin. combined resulted dynamics environment our net in interest

basis the X improved and prior will year. year margin the in linked basis minutes. points compared just for margin margin the was our quarter fourth almost Valerie discuss up Our full few quarter to XX points X.XX% more a components

quality to a continues story. be positive Credit

had while me -- start we again. a -- that While let our

$X was quarter both recoveries fourth the year. necessary fourth Our reported quarter full million of the continued to We for net growth. loan provision support and

reported net of have seven out We recoveries six the now previous quarters.

Our for for standard. low nonperforming stand and total assets the assets on year-end, very the quarter and XX% at by XX also declined points X% year is any at basis which now full

weakness. as of of very continue we aren't we move areas today, credit any to closely XXXX. But We will as simply quality significant monitor seeing into

We continue to operating efficiency. improve our

Our metric. fourth this in XX.X% ratio of quarter marks improvement quarter our fifth adjusted consecutive efficiency of

mention focus for in move strategic team. Valerie we while some into key this a that are improvement XXXX, As headwinds moment, there will is a our continuing

shares XXXX capital. of on for authorization Finally, We the our first X.X Board approved repurchase million Recently, of repurchased XXXX. XX shares share of an million I'd XXXX. authorization during like to briefly touch half our

as our continue move the well as currently this repurchase we with forward in economic to both, capital toolkit remain are our to year. authorization we pleased we environment pause While as have activity, we'll on our this and monitor position

it give you. I'll to Valerie,

Thanks, Dan.

results annual that the adjusted are highlights quarterly in quality loan and on Slide progress you'll growth, steady that continued metrics. the spoke Dan credit expansion, Very key and margin to our stable see to consistent X. applicable both

XXXX, partially Focusing insurance and year-end up in $XXX.X loan from rights the offset expenses adjusted on change servicing These losses. margin of the and provision quarter valuation in employee our and the net by include $X.X revenue mortgage growth to interest adjusted the seasonal and PPNR in declines million quarter. was fourth increasing bonus benefit due results quarterly improvement quarter credit in prior for million, revenue adjustments. Fourth were from due to improvement

quarter million X third Slides million of and income We for to XXXX. of X. $XXX fourth net compared reported Referencing increase interest $X the of the an quarter,

was the slowed from improvement and margins this up Our deposit our fourth to X.XX% margin net in strong continued as the increases quarter, linked surprisingly, quarter. the Not in the accelerated quarter points for rate interest of costs competition. X response basis deposit pace

favorable basis of XX from to Total of deposit large mix to cost thanks to deposits in deposits. continue increase, we basis increased community points a quarter. points Despite XX beta, bank have third our this the

deposit loan accretion fourth cycle to excluding and Our date. to beta the XX% for This quarter's beta, fourth the of total quarter XX% XX% compares date. and was cycle to XX%

loans was Our for the X.XX% net excluding from the points fourth prior quarter. yield basis XX accretion quarter, on up

next our of the the Our reprices rate repricing billion of $XX.X billion, terms rate. with or months, is loan or At asset in XX% fixed XX% level, within with laid has Slide a which loan balance portfolio months. our sheet book XX% variable three remains XX X, floating out sensitive, on higher that of as next of approximately $XX.X

a million swing in $X.X million primarily driven decline revenue highlighted is quarter. adjustment cycle. well as $X.X the a XX, insurance as on to seasonality in revenue the was decline The a policy million Non-interest commission X unfavorable $X.X by which the and valuation MSR market Slides in renewal decline related for million, $XXX.X of represents

quarter from XXXX. decline is typical a increased line fourth of insurance While quarter actually fourth results, the on total year-over-year insurance with revenue seasonal the in basis, commission X.X%

attributable as an increase a of In timing deposit charges, which two in addition to we primarily credit of earnings result accounts death and to the analysis in BOLI items, on corporate benefits. is saw these service rate a increase income decline an in

Moving higher expenses, on Slides was compared quarter. adjusted XX, fourth by non-interest third a decline on that total primarily expense, driven obligations a which to lower $XX.X employee benefits, rate. highlighted decline been in compensation and to on to quarter, including $XXX.X the was costs decline the employee impacted of largely million The adjustments, X other annual for million of year-end insurance assessment expense related are benefit accruals and by discount have the

included small legal items. miscellaneous of other The expense variances franchise taxes, other decline a number in including and lower

guided to last the million was $XXX of fourth level a benefits. adjusted recall the toward factoring non-interest expenses, that quarter results, base year-end may which made employee quarter You out adjustments we in-line with

Regarding merger costs the A core to these logo, Cadence system of non-routine franchise offices. costs component Bank under of name new and information, and related conversion. this and merger adjusted million as quarter, in increased rebranding rebranding public franchise the our advertising the $XX XXX large we reflects and were including the items, completed which nearly

also branch the that Slides fourth retirements fourth the million, XX in number pension with We and $X.X XX and of to expense were spoke settlement due and branches closing elevated included to the expense a on associated $X.X of quarter. Dan quarter in XX. or the loan million closed deposit incurred consolidated a activity

steady in assets further that assets year. the somewhat XX% the credit demonstrate Dan declines points as earlier provides quarter, XX made quality nonperforming Slide during end throughout but increased compared XXXX. to highlights the the declined with Classified of

at loans of and X.XX% growth in the provision the quarter for earlier, unfunded coverage $X million we've continued that supports mentioned As the ACL experienced. year The finished commitments loans.

shown across earnings the with XX, as the Slide growth on to be risk-weighted absorbing continues in Capital, assets. stable the board quarter's

we a investment XXXX, high security to single-digit look growth loan flows support perspective, we loan As cash growth with anticipate a into growth. continuing forward from rate

XXXX, expect and securities that quarter year. $X.X maturing of billion flows treasuries, fourth approximately low-yielding in in in cash the this billion including of We $X.X maturities

be continue competition. Deposits to to with increasing predict difficult and rates more aggressive

do beta year. the to our and anticipate this middle XX% will costs currently XX% total to towards our increase to deposit However, deposit of of continue expect reach cumulative we

securities asset loans, out higher margins X yielding Net books. fourth loan due deck variable the combined year our of than in This the interest quarter. repricing in repricing 'XX mix quarter portfolios. to provides the on lower of and fourth yielding be we will the but margin deposit be Slide visual is in slide into do of dependent the in asset of with this shift to our our levels nice the in expectation anticipate ongoing a timing part pricing, higher

We higher analysis mortgage for growth to except be rate negatively which charges, steady fee to in businesses, we also service anticipate expect impacted by the our continue environment. and

to the in we for million also or quarter agreements the This number currently including growth expense, many levels our we of in and increased expenses, FDIC vendor of rate anticipated an CPI pension run benefits insurance wage on annualized compared fourth single-digit assessments, rate the a continued increase previously Regarding low non-interest basis, higher technology but integration, from factors quarterly pressure. merger headwinds, anticipate provided the XXXX. guidance $XXX

to behind our reach continuing merger efficiencies to to initial Importantly, expect we beyond aim targets. although be and merger-related materially expenses us, are we

actually were charge-offs, year, net very low. small were for clearly XXXX a Our recovery net which the

to do increase we normalized a level So expect XXXX. to more in those

weakness currently. Dan of while noted earlier, significant we're not cautious, However, just as seeing areas

think the accomplishments We all would we of agree lies excitement looking have results but opportunity at in a is lot with to the XXXX, be ahead. I pleased that back and the

like Operator, questions. call open to to the we would

with comes [Operator first Instructions] from question Today's ahead. Please go Catherine KBW. Mealor

morning. good Thanks,

technical patience problems good Catherine, Hi, morning. our morning, everybody's with appreciate this

at lot No. your comments. guidance a of All the all good. good, gave Valerie end great of

So, all questions maybe to expenses. with that. start wanted thank And my you on for I

at seems this then like, pace. quarter it $XXX the single-digit a and from you're low take grow saying million that So

So, on savings? it the there? the offset Just that to Or I'm we guidance. then at is grow and cost make sure, cost should that that of rest want allow pace from clear to savings net of

got and we into baked-in experiencing expense a I believe as that's fully XXXX. we've continuing baked-in, the as realizing also we, our and done that number, work be savings peers the well that headwinds to That's the as look are

pull the $X do Is was quarter, that next that think rate rate forward like next from kind some as we one-time in of give then we you run that that the for the to from and year? coming, Is employee insurance And year? about in how partly quarter? run as this from I million, of this Okay. was a changes as event that that

event. No. That's a one-time

employee chunk rate that of related fact a Yes. is discount higher to interest rate that. on the of annual the allowed take of changes, really The us to assessment benefit obligations, credit because and big a that

every So that's that happens not quarter. something

Great.

Okay.

fourth on but that be quarter is this is it that -- saying like Okay. just margin, your margin. And to then interesting fourth the guide peak is you're found doesn't to feel going maybe quarter higher. It I

So we'll the we depending flow, of does fluctuations that imply between now that? the that may way then, get there and but be have end deposit fair next ultimately, to year, costs some that read how time just higher a to a NIM. Is on by

well. I think you've it got

rate assuming bigger are anticipating as about really to book a at of As that's the are of it's modest and we've there, variable -- long the could year, of key things loans the some look the continued times, we higher where deposits loan stabilize there. talked or actually better end repricing as you we're soften number margin of related book have reprice as said, we to kind -- the the to and a as the But surprises the we into we mix the all improvement, no rate out environment. securities but a

think, The way said is you Catherine, correct. I

bounce moving upward we're but could here, our we on direction. margin, think, We an in but maybe around not trajectory I the see upward linear.

Great.

Okay. so Thank you much.

go from comes question next James. Please with The ahead. Raymond Michael Rose

Hi, taking Thanks good questions. my morning, guys. for

in little mortgage under relatively your around can kind pricing expectations charges some bit from hard but businesses. by sounds And about you're to them? given guess, but ECR, how progression. I'm market. I walk it line? side, the least pressures maybe harder a benefiting outlook of know -- understand kind of there of see, just to maybe kind year-over-year And wealth bit at you of wanted insurance fee Just a the start of is some the to obviously think Can on thoughts of for like, out Thanks. lay maybe see the commentary you through the business we a should trust Obviously, little that's other just guiding I like on service kind and businesses, or

to a XQ that to good expect Yes, season quarter to back portfolioing that of then booking we're the Michael, during back piece. sale flying think those covered is will loans not I collecting little Mortgage you've sheet would market I a fix is that for on hopefully, today more ARMs of the you. some working come that, into bit on, XQ, we're headwinds. hear on going That comes that good means We're and home that can onto for not be gain XQ, secondary that. market loans balance clearly for from the selling not normal ARMs. if is mortgage the we

under So, mortgage pressure. is clearly

I think looks you in today. spot shape on to good insurance. Insurance be

think business. I we to continue win

base. Our team customer insurance is growing

and Our will team help hard the insurance market income us. growing is their insurance fee

So in we side expect good progress to XXXX. on see the insurance

to values. is anybody upon all team management in asset wealth similar The dependent else management, wealth

the we'll will that values upon what that year this see asset and hoping depending benefit will So, that We're up move that, drive there. do, market revenue.

the think because think ACR management. of needed give then, Other of you hit on given see though, management. believe We already back. some And on pressure we've rising fees, than do I puzzle to back we our treasury we'll bank ACR pieces the I the that, treasury that

And so, stability see we to continue there.

to continue we increasing on fees, volume see servicing card Our cards.

or see on continue average cards. average to increasing We ticket, transaction

income to be up. card the moving continues So

Valerie, anything? did I missed

ones. I the you think big covered. That's

play to that way usage a sounded in Is the from capital, sounds for little buybacks that maybe, operational half? this but about on near-term It like bit maybe on not efficiencies repurchase. continue capital question the I purchases, the big of the Maybe prepared maybe it like, like color. right be comments merger term maybe to near a It the think the out. here the that about it, forefront, ones. the from is wouldn't got kind think the and more Thanks a thing, build back if just

way, fair think look. a that's I to Yes, Michael,

up economy. market be They us. front we want We're us prepared, backs prepared. are. sure I backs take certainly that of the make we think, fully have if can watching we advantage that in currently We we're tool to the We on of where to still it up. we're want But our in market are the unknowns and kit. watching if

this and $XX you the me, for finally accretion scheduled margin assume of range. kind maybe then year, somewhere then core for million in the I And talked accretion margin, talking $XX just I for for just of quarter Okay. the color. just last you-- updated I on million about the wanted to about income sort Thanks. you're the get to year? that Valerie, to margin. higher what back It's any clarify obviously quarter. for expectations you'd this expect believe

exactly direction The that's there. we're core really the no, is Yes, headed margin that right.

paydowns of for you're quarter so no numbers change and for was the accretion, the is for this year bit for to It $XX on of scheduled on, fourth next higher that accretion scheduled million but spot some close XXXX. XXXX. headwind a had year, than nearly accretion year. a On the million expected because little $XX We and to the forth,

for thanks right, my questions. All taking

Perfect.

question comes Please with Stanley. go Manan next from Morgan The ahead. Gosalia

morning. Hi, good

Good morning.

a wanted deposit follow-up the comment I betas. on on

we right by I you you deposit the now, in be other industry XX% think you peak or end to the deposit that this cumulative year? the competition year. as are the that middle seeing expect of go that of Do ramp-up noted the on and XX% to just of level elevated beta given comments the others your betas should towards

total basis. we're in peak XX% next kind deposit of on to that is from level Yes. we year, beta XX% a deposit which No, would today, cumulative to where actually an XX% a be of is what modeling our are increase which mid-year

such Got of the runoff loan would pull, funding it. with could as the you as you that funding, extent we about year, then, to that the the mix growth you exceeds the the book? the other to or think want growing might FHLB and securities plug levers CD And between that that quarters assume

-- that we've off XXXX. running in think of lots I securities Yes, got

loan ratio. with deposit in the funded, be to and most move if can growth So of of securities up not the loan the XXXX portfolio all,

loan normal to deposit We ratio of loan So our of see our ratio a in deposit a moving environment. to XX% goal ours. like more would is to higher north

So, temporary a a just think that's spot. I from standpoint, funding

playing spaces currently we're of you that just all in So, the mentioned.

got I grow moving our deposits. to think team we've

Some customers because of our some are CDs people, CDs. moving taken have around, of rates

I where So of answer think funding from. be would the all is is the above, we

little you on CDs duration other are Got Or there? a shorter-term of more putting it. And bit dated?

We're is CD a spending It's special Yes, long-term offering short. such any of book. piece small our mostly money. not

Very it. you. thank Got helpful,

you. Thank

Please from go Brandon with comes King question ahead. Truist. next The

good Hi, morning.

Good morning, Brandon.

Hi.

all with still of So are year? sticking efficiency ratio with guidance I'm putting curious, next you pieces to XX% for together, the kind target

question. a Yes, that's great

I think lot we've a headwinds Valerie? on that. got of

Yes.

it progress, improvement So we That's we'll gradual continue we'll get what number, what before may the Dan -- a gradual and other that. talked gradual things number saw in to -- just mentioned, and somebody like few early that XXXX that be anticipating working to making that improvements expense, FDIC on progress certainly we're aggressively. be XXXX some about. I be of as we at ratio headwinds towards think, pretty that is efficiency There but we are expect

you? helps That

yes. Yes, Okay.

what platform as of what be high Okay. versus gives community confidence this growth, to you that seems on you -- I'm above then corporate? single-digits, demand as and peers. a you're number loan just far in And bit seeing curious, kind know,

whole I'm hearing question. So, I'm the not sure

peers about and part You're second that? what being of above loan talking growth the was

yes. Yes,

around community kind demand confidence the kind provide that there? gives digit next versus you then for And the figure you outlook commentary growth, what year? loan of lending, high-single of, corporate growth So, some in could if

okay. Yes,

is asking and single-digit about. corporate what think So you're the lending growth, loan confidence around opportunities the I high within

loan going give our footprint I to is growth. think

in, So well. continuing footprint that perform the we're sitting to is

today, here about As one go. can in all wants to you guys said, we're to room about speak talk and I've of are really seeing not and talk to weakness -- want any both Chris up loan the Which growth. on Hank you

it. Chris, I'll fill I'll let go and first you

what Yes, markets products well it, Dan diverse resilient markets call footprint, started more lower the in teams relationships, branch and growth would commercial We're risk with as well. and as services. XXX as deep stable with I

that a just there's we of lot leverage can So pull.

see a still the and feel when we've seeing out activities. look at and pipeline good we're few got still we And like pipelines, months, at least we active, we looking next

with comfortable growth others we're some targets. So loan

Hank?

which agree I nice hot but not So, when the categorize about you're depends And feel I I that on mentioned to growth, right what to of earlier. We second positive Valerie NIMs environment we're we're on do too Chris, the it XXX% corporate of lot year. few loan a macro XXXX. us -- thing have and to -- and gives into with you or have it some good that teams, the giving I is tell which having would we're would going headed cold as guidance in have now, and that But our the capacity half do. to not some positive

Thanks my for questions. taking

Appreciate you. Thank Brandon. it,

from The Please Group. with Hovde Rabatin next ahead. question comes Brett go

Hi, Brett.

well that increase perspective? the Thanks. low, are numbers, are little reserve. some a Thanks that up in basically going wanted obviously, anything bit past assets as morning. and guys quarter. thinking thoughts the on the just as Wanted taking hear quarters forward credit second, to black three in a It's classified watching the talk the and Any questions. you and for of but about prevalent spectacular box really dollar did credit perspective flat good a from anything provisioning about that from was Hi, for tick been to they fourth thinking just the about a CECL, and

seeing today As I've alarm that's bells think said, we're I on don't got any ringing anything it.

I we and around model guys So at in the us. that move I CECL, look move normal balance just assets our further. for think think is the to continues work classified move who let out When cover in, I'll

you saw quarter for what think I growth. provisioning this was

portfolio. So weaknesses seeing not we're in the

So we're growth. provisioning for

to want on. touch guys You

cycle, the note. BXS customers an -- got going that loans, average size systematic classified from trend the we It's going normal what in model our the a moving to Back loan grading, grading, we've grading from Nothing with are see now, out. the and own for loan legacy Normal that it's or Yes. loans to a larger view, I average forecasts was loan normal there our you're systems some average project that economic there larger a normal so -- working would think do. model. and us what's loan to

Hank, color? any other

you said well, so. I it think,

then or the potentially for but out as this of anything hi, anything, keeping lending you something say, office eye close not industry, on? that problematic maybe we're just you would bank other is that And it's segment you your would kind for whether point Okay. is view something that a of that some

not just We're Brett. that, seeing

like when decisions. else. we're We move good seeing look So, continue happening everybody that We're think We're footprint But some in making still we're asking labor is attention. The watching carefully. credit at on stress economies we team to places. serving, the we're lots across questions. what's some credit of the today, along. We're paying

moving able moving. places are But still we're still are labor People labor. Some up their to find cost. not

for color, The economy all Thanks shows Dan. resilience.

time. your Appreciate Thanks.

Please ahead. is go with Matt Stephens. next from The Olney question

Hi, Matt.

follow-up Mealor pardon from Catherine KBW. This Oh, is with a me.

you by about? out that, Is given the was is the talked I follow-up I referring deal question what efficiency achievable Or a number that I efficiency that think you Brandon think just to higher than -- that. XX% just when number asked. do My put you ratio. didn't is you a some clarify mean to? expense front to you of Is slides can the 'XX? back you that think that jump originally together, ratio Valerie, it were just in headwinds, ratio came it's efficiency think

getting about. we're number that's think I We're talking there. targeting still the

not okay. maybe in 'XX? until just Right, sometime But

that trip to that little we're have think, I -- get in bit, get there. bit, there that going a has that to things the Yes, but happened last delayed trip little

Absolutely.

Okay, thanks.

clarify that. to Thanks. want Just

actually with Stephens. The Matt ahead. go question next Please Olney is Okay. from

Hi Good are morning. you? guys, how

that. owes Catherine you Matt. morning, Good for

No worries at all.

think answered. of I my most have questions been

strategy your on important Just curious back strategy there is insurance the has wanted years some days. peers I marketplace of part in I'm not know Cadence the circle segment. speculation insurance longer the the I BancorpSouth going term. some the to about back the even been several segment. an segment may about bank in larger of married their of be in to insurance that insurance guess

I'm the Just, curious segment strategy important the insurance this to Bank? is how longer-term of

no I we We're Yes, we're what's insurance. dear anybody like insurance. watching than else. think happening We've in but the market, the liked always

insurance to the insurance. In were continue another We that last to able quarter, into grow our added we team. agency we add

something So and of market. the day. the it's doing pay every what what's attention clearly is a doing big But to you we're always happening market so part different in

it. Got

been other Thanks, Okay. have questions addressed. All guys. my

Appreciate Hi, Matt. thanks, it.

from [Operator Capital Please go Jon with Instructions] Arfstrom question The ahead. comes next Markets. RBC

Hi, good morning, everyone.

Hi, Jon.

period Just a follow-ups. single-digit use that end Is period rate base. as end. assuming the you're a right? We couple Maybe growth of high obvious, but

Yes. period Those are end guidance.

Yes.

loans, yes. For

Yes.

-- just some growth the and to change. about Help securities, Okay, growth. us feel do fund cash How asset sheet earning good. talked about Valerie, understand balance the mix year? you securities you some easing loan from growth for flow

goes to industry deposits, again, we back and -- year. see It's it this what Yes. saw just all the

the deposits we're would to asset just to earning variable. -- it so You're able deposits. earning not grow simply That some allow forth grow that that for assets going growth, and much in otherwise,

go think too. the a to turning you'll that going earning deposits, lost assets here, whole look as we're I And when then and is see trend the at see XXXX, lost Yes, to industry that's if some we nobody we that deposits. wants grow question can growth. Hopefully really so backwards. We

what months earnings the kind on right, sheet of we movements. of ago, opposite XX Yes, balance look the wrote Okay.

Yes.

Yes. bearing What of you're at interest kind deposit all paying And second average derivative seeing that right ease an of a new are pressure you pricing pressure? like you would now? say, rate that

easy on ease There's no all. answer. on an at the It's deposits competition

curve. Yes. yield Most are out The the competition competing fierce there. out people is

the competition of the in is accounts. I you're see market short-term in base short non-interest as space CDs You term out bearing think, seeing and money the why and that's move

the in Xs. on in But of the running the if Xs, were number specials average you an CDs and some specials there exception both booked, have on markets, we're high money that pricing the

an On average -

Valerie. ahead, go Yes,

the On came the the -- bearing average X.XX%. average for at on the interest quarter, about new

and between Okay. the -- everywhere. of And Yes. XX% difference you then the bank on other that the pressures in parts the business between flagged footprint any community --

everywhere, It my is intense perspective. not from

Somewhat -- local in maybe than fierce gives that competition. ways some the Metropolitan Canadian the depends. bank just more It competition

satisfied wrap Dan, good. But it I easy there been you'd I for but further be anything It's on I it. Slide that Okay. I'll gone go X, could like on rebranding is maybe an guess, but up. one feedback, it? generally softball, hasn't with you, while a

way to X,XXX changed and pleased some odd been executed. on went activity period funds the was in with really a that short that. We've of time. Lots of

quarter, issues. could together in that, benefit the where we're benefit think at behind full for really everything ready spent XX of But getting we had of waiting, one The getting the benefit lot done. of months putting fourth are. all the about some But whole getting us have were we it slower I time in a excited all of we time, it the that.

Okay, the all right, time. for thanks. Thanks

Thank you, Jon. Appreciate very much.

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

today. your for Thanks, participation again, your and questions everyone,

brag take a As marked our In to to want I opportunity I more tremendous team. company. a change, year closing, for a of little minute mentioned bit just our progress success and on one XXXX ago,

amount operating the continuing to as business, we value we grow communities It created into everyone took to for our incredible company XXXX. to and enhance for an and our continue XXXX, focus performance effort teammates, shareholders we we and in in are And of achieve accomplished our that what improve serve. committed our

look again, to everybody, time to Thanks, speaking forward soon. again We your today. for you

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

You disconnect. may now