Cadence Bank (CADE) 23 Jul 242024 Q2 Earnings call transcript

Good day, and welcome to the Cadence Bank Second Quarter 2024 Webcast and Conference call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Will Fisackerly, Executive Vice President and Corporate Finance. Please go ahead.

Good morning, and thank you for joining the Cadence Bank Second Quarter 2024 Earnings Conference Call.

our Rollins; team and Chris from this with Billy members Dan morning, Bagley, have executive here management us Braddock. We Valerie Toalson

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

Relations Presentation yesterday where also going find can Investor remind his today. And earnings of at that contained on section non-GAAP statements or The would I'll our now the X-K link by comments. you statements disclosures in them filed you'll you website. I You discussed. exhibit to along can to that Dan them forward-looking find presentation any the with release around afternoon. in turn to the view slides Investor those our metrics Relations and are our page opening to the These webcast customary be regarding slides the presentation, ir.cadencebank.com, that documents our may contain at for we apply our the disclosures our forward-looking to

for us morning Good morning. results. quarter joining this our Thank to strong XXXX second all you discuss

detail provide cover I few Now a I after financials on our highlights. will more

be team our Our prepared available will for questions executive comments. management following

across report We quarter years, and to past are of progress few of very of pleased continued proud the we're our facets our over virtually improvement business. all another

by second customers a the formula, the results we've Our putting our GAAP for $XXX.X capital operating business. we are quarter center really companies or of on prosper steady the or which our second adjusted million reported of helping per XXXX. The core values, of GAAP few efficiency. It's an achieved of of of difference second. successful quarter people, in core net retention increase and and our items that be in quality common continuing pipelines the diluted and minutes the deposits, to at driven the our vision will improvements straightforward From share, diluted share communities In just a a perspective, continued earnings including pretty XX% of second Valerie quarter, common on expansion stable represents for to compared reflection focus or We income of and in and credit active. continue loan over of a quarter net reported. first our numbers million $X.XX a a couple enhancing $X.XX with was sheet resulting as as from balance loan growth, our operations income $XXX.X $X.XX adjusted per well spend

merger Cadence, further have and in we of the we As and BancorpSouth X% over since growth. We net full reported year announced for commercial the CRE business the each footprint, or our posted legacy our in good portfolios with $XXX right diversified we between line loan annualized, spread industrial growth every quarter mortgage reflecting The across income-producing was our residential of just within million and loan strength model. and growth quarter expectations. our

and under just deposits total While and or have year-to-date. X% approximately X% $XXX funds grew declined grown deposits annualized million when $XXX you deposits, public brokered core exclude just annualized million, customer over

very approximately be fund X collectively and during sources selective funding $XXX deposits money. brokered reduce declined around to quarter. continue We the public million These

source. quarter by which of deposits further million, brokered represents In fact, $XXX noncore the we since end, approximately this reduced bulk funding have

net consecutive X.XX%. basis quarter X.XX%, which X up a in cost increases, As result diversified reported our slowed mix we of improvement earning of compared with interest deposit quarter our of margin to and margin growth, third the improved loan asset points our first was

to reflect the quality quarter. credit continued stability for Additionally,

classified we saw loan nonperforming delinquencies. improvement for as to Our criticized and well quarter. losses provision charge-offs as compared our were and net first totals the near-term both credit relatively flat in and

of sign our in we to what normal no mostly see credit believe inflows outflows be pervasive and continue weakness. processes to We and

Our quarter in reflect also improvement results efficiency. the for operating continued

Our improving quarter, adjusted the efficiency XX.X% which first in resulted quarter. million for to our ratio declined adjusted by expenses to over compared the $XX

While the fruits this our include improvement that obvious. of initiatives efficiency Valerie in are moment, did a a tailwinds will just discuss few one-off

proud rest You not intend we as the efficiency away chip all continue are assured, of can while improvements made, on we're forward. to We we've this move we to finished.

In just weighted advantage took and outstanding of over subordinated our called addition, a swings XXX,XXX we and coupon $XXX shares at million repurchased market again debt in of average of X.XX%, stock.

of XX.X% over of CETX call at turn with strong her XXXX. I'll comments. remain Valerie metrics capital Valerie? XX, June XX.X% and capital the Our total to now for

morning another improvement of great here our to It's be discussing Dan. continued performance. strong in quarter you, this Thank

basis quarter from a mentioned, quarter operations of Dan when the equity the to first increase point compared exclude $X.XX, return both basis improvement adjusted efficiency a an point in nonroutine over quarter. to continuing to adjusted As basis of we increase of in second to XX.X%. These XXXX second achieved XX adjusted the the highlight tangible the further and on common results, quarter ROA reported and of results we XXXX. To this EPS XX.X% couple of in a ratio items to point and compared adjusted X.XX%, of XXX first XXX a year, XX% the adjusted increase

the insurance $X.X first FDIC special The is assessment million. deposit of

payroll mid-quarter out of of the that sale revenue a Cadence previously The processing second was fall. included Business other sale million unit to into that rolled small a Solutions, mid-second Insurance gain last $XX -- that sale in on Cadence quarter noninterest prior

months, million of this $X last approximately revenue million to annual respectively. $X had XX $X and to unit $X expense million million, and the Over

So sale the ongoing. that of net impact isn't significant

of to for margin revenue quarter, income the into increase an the million or dive reported X.X% of Slide million interest net interest $X.X the results, net $XXX compared and of quarter Let's second to on XXXX. beginning XX. We in first turning further

Again, the The drive the of funding mix upward margin interest improvement. continue X flows, cash net margin second earning costs. X resulting points. loan assets quarter, increases assets main Our steady slowed was supported themes growth by repricing in basis securities to from X.XX% our earning for shift up and

loans, cost only increased on the for second accretion, quarterly XX X Our And the to first basis date. up second cycle excluding points points deposits the net basis the X.XX% from of quarter, was our X.XX% lowest increase yield for quarter's yield. quarter, to total

compared the on XXXX, down 'XX We total shift also to adjusted over up quarter revenue at million, of XX.X% slightly seasonal X% within income in second revenue million of by from of from increased XX.X% year. After first was in XX% $XXX,XXX. by deposit quarter the Mortgage $X.X was XX% an the quarter 'XX, income just and highlighted compared from the deposits, quarter million up quarter quarter. factoring fees. Compared million XXXX Wealth Slide or ending to the second management or with the of deposits of the mortgage of XX, servicing management rights on second an the $X.X $XX.X balances noninterest-bearing impacted to basis, quarter the for last Wealth revenue quarter. Noninterest mix same the slowed first the at up first increase first same mortgage declined positively X.X% tax XX%. origination $X valuation, the quarter trust was total for end

to $XX it On a year-to-date total million adjusted XXXX X.X% up nearly was the basis, revenue. at or compared revenue. year-to-date Looking

for for XXXX adjusted guidance the to growth year. to revenue full continue support We of our X% X%

another quarter the XX. improvement adjusted was a This to of adjusted XX decline decline second for $XX.X quarter 'XX. our drove of the noninterest XX.X% Slides efficiency in million. quarter XX.X% quarter, Total to and of million for expense quarter $XXX.X Turning for significant linked compared ratio the reflecting first

deferred including adjusted from declined quarter, compared seasonal declines As million other on expense expense as are mentioned -- of on the teammates, that million seasonal of loan result look to $XX and ones certain quarter origination that included probably credits strong from an larger the due recoveries, in loan not FICA to and million employee first as down benefit $X.X million mortgage favorable lower match state linked regulatory an $X.X we we of various our million salaries focus evidence to or the expense benefited the a as franchise but higher partially and quarterly and adjusted likely reduction expected, there basis are benefits we and a just was volume. Legal costs operational basis assessments. Stepping XXXk tax primarily expenses, sustainable resolution to declined $X matters. from forward. well $X.X losses, was in back, legal expense second in as close And miscellaneous and I that the increased where

Additionally, by per X, going our annual July so quarter. $X effective million on that merit were salaries increases close impact will to forward

latter to guidance for adjusted annual our to minus XXXX. expect we expenses the in year, do plus to continue As be higher half expenses of compared on X% but or the such, this year of full maintain we

end of range. quarter to second However, finish year expect the towards lower we results, given now the strong the that

million losses Moving $XX provision quarter's Slides recorded in and were net points XX up X. range our for quarter the a provision on or $XX.X from net annualized, quarter points loans XX prior the with percent year million, charge-offs of second just first the We basis and on credit basis slightly in full of charge-offs credit to expectations. a consistent the level, quality X as in with for

points solid from remains credit basis quarter. down at loss for X the allowance Our prior X.XX%, coverage

continues strong Our and capital our sheet. Slide is to shown and reflect XX on earnings balance strong

at market XXX,XXX again, mentioned, second average during temporary As of over repurchased of these repurchasing $XX.XX. Dan weighted the a shares quarter price shares advantage just we taking and declines

us in million and million buying $XXX qualified deposit stock a steady stable sub continuing summary, happens higher we further please. annually companies in This quarter would a capital improvements phased reflected to in when converted save prospective would of second called increases net would which treatment and like quarter linked a XX% common in growth customer loan debt, action what in vision, is in current growing also towards This regulatory and July and and people, as to call prosper. Operator, efficiency, debt to everybody we margin flexibility help with communities a healthy and at $X to been supports have net dividend sub continued on coupon, credit reducing a about together X addition, capital Tier rate debt interest the over out growth, In that capital. will open and adjusted is working regulatory X.XX% have working a income. This time. variable together questions, rates. In back the basis

Gosalia Stanley. with from question first Morgan Our Manan Instructions] comes [Operator

I on -- the wanted interest net sorry, noninterest-bearing deposits. the to start

was I think originally you this than you mix NIB anticipated the better -- quarter.

guided NIB around being you've XX%. mix previously, think that I to

from high that there's down Just level? given here, around stabilizes rates likelihood expect that, XX%, XX% that should we this going mix of a NIB

end We get are to those rate cuts, meaningful come we question. deposits down still the our more but as actually same will we have percent the likely deposits a of for towards the those thanks expectations there expecting next total until theory Manan, continue that closer until XX% we tempering the about that year. to to reach a level this level really year talked of down of and and middle come XX% previously perhaps not

And it. opportunistic, back creating ratio pivoting know clearly, to number you capital, at CETX you is as this a Q-on-Q. maybe be want XX.X%, to lot then bought of I down quarter well. mentioned came shares over capital think of I Got you're the but here

extent XXXX? buybacks So think do about the half? we the of that as don't that you is how growth or buybacks, get we second inorganic either into for in a function holding capital organic should And more to

Yes.

that's hold our want whether buyback to uses you'll when inorganic said, forward. to future, that think us years. look opportunistic opportunities. be we we us advantage in capital it way We gives for and or changed be for as to take be the And want see I not continue market opportunistic. as organic of think We're you growth, the has afraid I not program to

to any on any Is side room there repositioning do securities there? the more

but always doing. is, that we answer The everything probably on not, material in things, continue you to way, tweak around tweak a on and can we're

Brett from with Rabatin comes Hovde the Group. question Next

or wanted it the the just there? of comments on credit. decrease restaurant specifically and could start QSR any the to improvement on outs the any to see ins you was that's behaving? quarter. then on And I how Any portfolio and the criticized color color, nice if And provide this

are here, room be the of and in take to both they'll Billy happy some that. Chris Yes. and

flat, ago, really today. down. out year that feel I our think normal migration a went sit we it be those long credit working basically criticized we're about and we and numbers we NPA after than a now number ago, we've seen NPA, into escalate seen think time seen a year criticized We've within good where ago, and we've over of more we

that? want in specific on Your of restaurant side QSR, jump question the and one you on guys to

mean well, I covered you Dan. Well, it

that loans the of been last it part think I months. the we've X working is through over

function backfill down the a the we right, right? actually you're come seen quarter. first this So criticized haven't was that's So there, the that has and

seen group I assets loans think went special our less go we've and out. into

hard granular. real pretty remediate credits So we're working to

Our average loan size is small.

lot So energy right. there. But of there's on you're a going

is -- So good to seen seen to we credits this backflow of the date, a haven't in. news haven't a we coming

hasn't So little ever it it's on -- restaurants or been issues any been a bit. focusing systemic

there X a anything haven't negative we some X seen So over we've either, the X additional in we have credits might just remediated Billy, or really you there. from quarters. And that credits perspective X other than those color or X migrate been remediating. there last

been the guess, we've we incremental through. the No QSR have answer seen I'll the working is And negative Chris' ones improvement question. logic, we Yes. just some -- identified that specifically, had migration, on to earlier, there. I more following

resolution So identified year no almost of point. credits that based segment within this off and specifically to ago more a that coming were negative particular at migration

Okay. That's really helpful.

I -- The sorry, Dan. other question had

half had the and other resi for And book pipeline growth. mostly this growth What growth. the C&I. portfolio down? the you just The on And general that the loan flattish question levels Or in your want back was And would look quarter, you've on components feels I the the maybe of you fairly think does been, of Dan, pieces potential or to optimistic contribute? was like loan some there like are it year? of for manage to might maybe other

is growth think some we some in quarter. going product. see this But to be Mortgage I the what to book. quarter. the see We ARM looking always we're seasonality higher in is do think I portfolio across

The secondary of is market also. tough. some We've for ARM have portfolio got that products we

the this piece in see certainly resi up we quarter. pick So

I downs we actually pay C&I but also we good think growth saw side. pretty C&I some the the this some saw pretty side, good on on quarter.

that's thing. think a And good I so

good. go to want like you Billy things about You come pretty supposed talk The to. pipelines. they're and pipelines look

as seen we 'XX that saw alluded has are since the our and pipelines pull-through rate to Yes, strong really, payoffs Dan as been fantastic. over we've some quarter.

think segment, That degree. market specifically, I was our created Energy and There some mentioned opened stemmed took to some there activity advantage of guys it up were some us you several that that bond to of clients midstream within M&A it payoffs. had I've that some down. and also paid good

pull-through quarters we've we're So our of as -- the quarters in right I in the -- last, last are to seen. specifically had as been think since seeing I over pipelines our which approvals was last peaked X now and as full speaking high as X approvals 'XX. mean they've are our they I'm corporate bank, the

pipelines fantastic. So look

news, we some grow, across are indicator that -- up as the hard guess, Their it's portfolio, if some than the still I the it add secondary balanced been have seeing an Community is amortizing on some exit is right? hugely I great see the a side. Bank really we're in strong we're so way. bit, pipelines payoffs, to market we're are indicated, thing, would but so X seeing right credits news, same for bad opening Bank the good pipelines there. And in corporate the So side which Billy so of pipelines run to the It's is higher a good And quarters. previous Remember, will. they all full. you lines, Community

we're across seeing that the And footprint.

way. our quarter. Texas actually some But growth across clearly for Florida, good is Georgia, doing footprint, well the are So Bank our Community leading and saw Tennessee the

RBC comes question Jon Markets. Capital from with The next Arfstrom

would the I Can if I mean idea Valerie, out use just the us $XXX detail all difference bit you on X%, the but looks curious of us it us that. add give it's appreciate you'd and you expenses. you to starting you point little I'm like a -- an on split like the expenses. can you on million, around help if

plus end expectations second or Jon, the a No, did of Yes. such lower good annualized just intended that have because quarter. towards also guide to do what I we minus X% was

quarter It look That's the Cadence expenses. of cyclicality some of years, quarter associated a kind for with of are the last reasons. One, for just low a quarterly has some you because the deferred back FICA been level things. reset the If over several of granular the second of loan you in higher loans of with. also that growth. costs XXXk the a have to Those do of mortgage has couple

cycle So all quarter, our increases have that July in. second then that of we come serves of to lower the and merit

kind mentioned a hard can. not the credits $X work million you and recoveries They're really or things sustainable. on I $XX when are so of where of And million expenses, of of lot reflective probably grabbing that

mid add our to yes, -- million quarter -- to or that a $XXX million Dan continue we're $XXX but to gets said, if $XXX million low low level you to that to going work layer start a So then from. and to every in level base quarter, excuse to as this probably that's away reasonable at that merits, $XXX we'll got continue you some million we that chip back me, look to forward. And work, as we've

Several but in major fraud for problem I'd are our go -- is for things X, sustainable. we'd losses like to industry. there Yes. for like a be fraud to to them

appreciate that helps. had one up backwards. of the Value Yes, I that that. I had down instead helpful. that's one, I so

a for good It's thing us.

if that from Yes. change forward much is also impact at to How of guidance guide talked that at quarter? much this all, agree. revenues? you the revenue And Yes, XXX. inclusive outlook, then same, forward I How curve about talked the quarter the you in impacted on the an last it's of your your in and your curve does has

in one we that bump that had a are variable that quarter But only up. not that on deals. just that has in and we yields good loan that really our the the have, of back the this coming new It's impact those to we've book continue we our come on on was growth not in significant When ability nice again, big Jon. reprice to look growth got that that with share new to loan loans volume take the we the reprice things it, the in much, that fact at continues also to you. That a Yes. and was driving continue slides

still new back we're and that of these of get point So going more we have variable going rate coming to to even the impact the book, a to still on. some some if have repricing on help dip, basis XX the going that's of We're offset loans loans. immediate

And the next Truist. with question from comes King Brandon

cost also, So what you you deposit what back costs the from then the a the from repricing expecting standpoint CD outlook relatively deposit in think here? potentially from be a is And perspective? here half year? is Do stable could of are

Absolutely.

past So increase quarters, last several to particularly -- we this has really stabilization. shift it in deposit -- had be mix continued the less and less stabilize, a that fact, to quarter and continue cost with does

book pointed most auto into renews there's on the to there's that say. it book. There go just mix little fact been, we're is upward another to a X back the as there Factoring that another to And possibility a we're out quarters it least think promo a able is you that that -- of don't today. has pressure feel CD were so low as out standard but or deposit could the into we portion that's CD if costs. Whether noninterest-bearing the from shift material I hard when of rates. But product do continue the be seeing renews, a nearing of keep that's that we that into peak at what quarter,

points last average was basis than blended CD rate and renewed the it less about was quarter. XX quarter, new This

that's in So about coming at X.XX%.

still starts book that that though higher shift repricing us we there rate, to lower its quarter-to-quarter benefit costs. deposit even so as out at at the And a is in and look

That's yields, this quarter the in then an far ex-accretion there kind was That's yields, of helpful. even uptick And versus loan Yes. as increase as loan in last. helpful.

maybe increase sort Or pace items in there, sustainable there loan that yields? guess, of onetime I going kind some is elevated the that So of were forward?

talked some that was quarter I quarter's last think by muted last we number items.

So...

But factor we a forward, will as a repricing up, be then the at bit, that really little consistent and growth and it's at points it's loan help by then as keep up rates come dynamic growth keep Yes, well. rates the a that muted fairly XX repricing. of that of dynamic we basis loan and stable look loan that down that is or can extent us say the that when the so. I'd will least yield

Okay.

a pace, I it's term? guess, say at at to fair least So near sustainable it's

what hoping. That's we're

Next question Rose comes Raymond James. from Michael with

$X.X to questions in of Just expenses. I wanted includes be work Business to have million Cadence just the I follow then in spot, on good guess, if efficiency seems of like more the the the you you, from a expenses you're momentum updated the clear year outlook wanted to separately for up on Jon's get kind back just done impact, half Dan, in guys to of a It to Solutions. And come. lot down. ratio about

versus intermediate saving think the longer ongoing efforts? we franchise. target mean investment be we the kind the balancing efficiency about investments a as I of about kind term, mid-XXs spend kind about we cost as ongoing kind should a the of of of As think thinking in or

Yes.

on the to side? take expense side expense So you the -- want do Valerie,

Cadence guidance Yes. impact. include does Services the Yes. That Business

and So half latter incorporated everything. half, it in expect expenses the the We in of that greater that that's year be the first reflects do than guidance. the incrementally will

of just in continuing the as franchise. is Part that you invest, said, to

for I people. think look we continue to

We to continue opportunities for improve technology. look our to

drive continue down. The We in in to doing day. we do we not vocabulary. to And what continue to that continue opportunities target every is that word invest for we're efficiency my can can I and think to look

we But do probably want in overall on what front have we're to of of our side, you expense easier drive in I target on there's and back for side. that legacy more some plans us than been opportunity a I to be the the X than us. I'm think BancorpSouth don't time. So the focused to today went continue ago can today X the Cadence, down. a doing excited that But years, efficiency over on today. can lot I've you We last the revenue a do maybe years the we thoughts When knew look into today. merger of that with are We're the is are proud real. little the longer we but we're they today, be, to what really would benefits where and doing. took that team that get seeing We

you just it I help point? do frame at you Can what get in to Well, it until billion us had the past at about Dan, brought of $XX and almost crystal your out internally you ball billion guys Maybe was home. a mean, -- as on you but and would, there's looking acquisitions something just geography want today, as there. But you obviously focused? from deal kind election? I through have for is billion, opportunity how hoping you if kind clearly of size if Cadence Or think doorstep metrics, do in the be I of at is to you do that just been were guess $XXX follow-up, wouldn't that I it know big for $XX this could? you of you left the a as theory, the currently kind target acquisitive well both

a and be in clearly want our future. That's great Yes. expect footprint. with our that a been culture, would start part we We part would past, of of question. and a has that, I M&A

the Can we're it the is together, teams what doing? have. grow work we already can footprint that So within we

us. for current expansion, footprint, think not there in going That's favor that's to So be out administration. But us. I a are maybe with opportunities key in market the there for today

basis. from that We're a a away ready It's We're if We finding have to for the culture, us. team. we a anything. running right difference it's makes something, of right do active wanted today something conversations regular on not matter the

Is billion of us for up. difference bigger where a close question burn in be want So comes a it a for -- for to us need We size we difference to difference perspective. being a can making sun making sun, that a get us market the part making don't you in. Is it to in? clearly that $XXX is in there's the the too

And position And you we've so lots make we're we the we've at sure the in in -- today. I organic look to think runway got we serve, prospects when and of us. growth that front of got footprints want our like we

Next with Davidson. Gary D.A. from Tenner question comes

you the advantage. all year have haven't kind half probably consistent banks the pretty the pulled one So that on loan a market an number of Texas full outlook growth of loan first for and is been on Obviously, back year. small growth their of of

way Just wondering if other you the consistent about the loan could the think have you be and ability to talk gained an institutions been? where advantage you maybe growth on you've to

Yes.

merger that we did growth things the questions of the we've in One of we the the the was I started could grow? quarter every merger. was since said when look loan back, continue And around announced we grown call, to when one we you

I think people that's think driven, that's footprint driven. I and

we're team use our we coming have on keep And putting the them on we keep we can customers great. the so keep want there, that is focused day. the have business time, we team analogies, the out every to care energized, team center at we're them of field up and -- doing the what the on of take think Olympics I but Olympics field on today

footprint and be brag Our on. or Billy would would our Chris? I what team

to outsized rates we're we've with -- this got But going history continue pursue. It had sit. in having and on are team to win it's we of here, we a I where mean, really did we've advantaged -- think that I that's where

multiple side. group. not across verticals platform, industries diversification have but We across spans huge our the think is footprint great also group, only as only well. We've for FDA not I that community really We've the got those got a us. the win diversification corporate in the mortgage

in works footprint. every It

Corporate Bank saw the pipeline payoffs you showed growing So coming having again, great, again, get rural metropolitan whether in for And growth us we good some rural of times rural, in of was a out that for as across in are doing at was across South. us. bankers what's growth whether this or the then South look the the the care said, the Even Bank you're and exciting you're Corporate though payoffs. Community quarter. When that you in in taking business. We've Bank The our verticals, Valerie there got South. couple

and thoughts. as in perspective continue had think a the around earlier, And people, of made people investment the guess forward? from I terms markets, add of there you most that a but you to Great. appreciate I push just M&A institutions need do where other as is follow-up think people of your from or growth to a to some then to question you kind that, comments your opportunity of just you

constantly in looking people, opportunities. we're investing for our We're and

I us. brought that here difference and I and one a market making so the there's don't But folks we're And we think and couple that are out call or some help for that markets there. we or would two know in quarters of we've say actively looking, need last in,

in new guys we of But some or is certainly -- hired XX moved never So looking of team opportunities market a and the team XX big and the for into bigger invest team. group out to have a some done. are a gone we've like of or whatever

next comes Olney question with Stephens. The from Matt

for the loan the portfolio. that growth. back mentioned of cash interested the more half the year be by for I'd to from the the loan funded learn You the flows plan funding was growth XQ securities about

a that's question. good Yes,

that to we've in sustainable, heard, -- level we've off this public -- I public deemphasize including We've has disciplined bid brokered funds as that expect fund think gotten We this in is you I $XXX a think the funds. do million quarter. so probably The run run some on to in also. are out see our funds public more in dollars. to continued maybe pricing or quarter our

I So where looking you're come when the to going core from. that's it's think funding at base,

core we to good So continue that. it We've deposit to consecutive we of want to and deposit do has that really quarters in X growth. now customer shown them the think on to continue focus growth, team

from funding securities the you're where securities could additional book, Yes. We another that do cash growth the some think flow. there or quarter be loan so actually

that. the you have Dan's as We point, to past... room kind get of But certainly to do

end balance book total up securities sheet, The where... the would

Yes, ballpark, of then bit of that. little deposit core is you about. that public to on total what a minus you been get kind that flexibility, base see so growth or those there's And funds. that that plus headwinds are But through set assets. level But see or we've talking of of is what and XX%-ish coming a aside you

Yes.

up we year today. I funding. year If the our And think March Madness of ago we've funding the look that funds post we to our core the that project finish public that take are a sure overall last and think growth making the I we're have used you're at of I really just we doing business deposits, with now care for deposits, profitable and to brokered business us, see to clean finish normal organic on the us. will let beneficial going of think

the color I term then Appreciate funding the program. there. And Okay. to about want bank also ask

early expires that there. out still billion $X.X assume about have you I next year. think I

expires want XXXX. Just any it to handle that you how as updated about thoughts in

January next right? it year. Is

is, be type Yes, little on likely and is rates longer short-term have And to that. But flexible I where settle maybe some January flexible that's where forecast once rates based might on of there the be on the sheet right, say, replace there. the today, depending are. It send something we'll borrowing in. we'll depending where balance rate would year. will bit -- of a term next

core continue deposit And focused the on growth.

absolutely. Yes,

from with next Mealor question KBW. The comes Catherine

like it the of this guidance guide. year, like growth And as the towards if is. expense end it low growth for towards of things the of So go seems trending kind you if revenue we're trending it the about end think we're guide high your feels

leverage seeing operating pretty phenomenal in 'XX. So you're

think where you you see still through about we environment in do expand start think 'XX, positive you an that's you can can think see where leverage? still more As And XXXX think move cuts, -- we the we operating an environment specifically? to do see we NIM as do Fed

-- we're for set in up I I think up set today. way a think we're nice

on high way, setting when Valerie. done our work we've the serve, we're look have we the forward that our think we in work balance at sheet, confidence a we've a that I got, level what we done nice the with markets we've team,

we would we We an we that feel something forward. organically future is as as level we positioned get the had gradual, well totally very like us. that very for long a that's some believe upcoming we look absolutely detrimental if range. out would we I cuts No, that balance be rate we're Yes. of decline that's with have positioned are as or for expansion believe on the as What something sudden point sheet, well basis look just XXX along But we into agree. the that for I and opportunity

mentioned That's one of Valerie, just funding on follow-up that more through you probably securities. just cash growth one loan helpful. more have -- quarter we securities flows. one And then the

we think you flat then of do of do we and of of one just size more there security Or to coming security about down growing? balance have kind and balances how with sheet you kind see kind of quarter kind balances from stabilize we So think the that? where of

be mean of to that we public we're we've funds quarter the the next deposit more able that. some to with but of given we the and able that be growth got in that than the quarter-over-quarter core there. this flexibility than loan a the have of Yes. That's may after we'll growth fund stabilization have portfolio, dynamic -- do seen hopeful longer that growth deposit to more funding the believe that the securities we we've capacity I core for

question final Shaw comes And from Jared the Barclays. with

driving just trend I of in driving that the But reappraisals? just at actually like asked. that? that that Is higher loan-to-value were looking LTV Is What's office questions quarter. CRE declined it underlying loans? payoffs there? guess What's Most the portfolio, sort of looks

day's in It's It's there at mix. It's normal the that just Remember, just average seeing not size in not business all. ticket small. reappraisals. every issue an just We're business. really is

on you I for didn't don't I answer and because have Chris, study it. have? sit that an So

in I that significant book We're with not would dollars... anything replacing amortization. say

amortized [indiscernible]. just It

total that's the you, X% of remind to just And loan book.

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

this for All right. Thanks us again morning. joining

rewarding company positively performance. Cadence Our over and a outstanding experience impact across see results financial work been to improve reflection our hard the teammates our effort a our significantly of are It's bankers. of the of X,XXX

loans have retaining a core at bankers Our growing pace customer and and a effectively deposits. done of steady tremendous growing job

have supporting maintaining been interest done metrics. efficiency and fee our quality to teammates credit contributed steadily of Our net of revenue the stable lines margin meaningful frontline growth business operational have while our outstanding operating scenes. We've and and an behind improve improving and capital as able well support processes as our job strong

seeing look As team we and us ready look We the confident to on again I'm to Thanks forward, our joining soon. you today. is shine. all forward prepared road for

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

may You disconnect. now