Cadence Bank (CADE) 22 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to the Cadence Bank Third Quarter 2024 Webcast and Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to hand the call to Will Fisackerly, Director of Corporate Finance. Please go ahead.

Good morning, and thank you for joining the Cadence Bank Third 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.

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

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

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

team morning. on for you XXXX provides results. After our us highlights financials, cover discuss our additional questions. our be financial to Valerie Thank Good few management available a for will I detail third quarter joining executive

We that of operations $X.XX for an reflect of income or diluted with continuing third net second per income third net the of diluted increase continued quarter or or $XXX.X $X.XX quarter was 'XX. adjusted results are company. to GAAP $X.XX momentum common the our from positive $XXX.X share, share, report million compared for quarter proud to per million common X%

for the From a highlight balance sheet performance quarter. real perspective, our a deposit was

in while the costs quarter. deposits, XX% core flat, across over holding footprint a customer job our in basis basis just resulting an X essentially teams Our growth expanding done deposit annualized points up on retaining significant the great of have in and deposits,

new meaningful loan generated also We commitments.

or pressures growth the in capital flat refinance quarter to sell permanent creating paydowns as for active were as loans markets. offset companies the payoff markets activities, due Although

and our new well. from loan quarter to that the upward will Looking remains robust improvement year, performing payoff our costs are loan drove diverse, our in as last rest fourth consecutive and and pipeline points loans also X our margin footprint our year. very to continued of of basis interest deposit are the Stabilized pressures optimistic X.XX%, up we the repricing of economies net in originations the outpace

quality stable with expectations. and remain continued credit Importantly, to line our in

charge-offs net prior Our quarter, we of loans. losses with X.XX% allowance were a for and consistent solid the at maintained credit

While nonaccrual in the previously we of percent we loans loans, have of as of a are and an migration concern as did seeing increase criticized classifieds weakness. result remained our year, of during a credits, a not primarily consistent of and level handful see criticized relatively or signs

as We continued performance in are operating efficiency, XX.X% also efficiency the quarter. with our ratio adjusted reflected and of pleased our for

As well that a well expectations as total our Valerie quarter expected, items a as dive expenses. will moment. expenses a second as few increases our our in as merit result did these of increase into benefited details, as just

repurchased again we shares took swings market stock. XXX,XXX the of our advantage just and Finally, over of

tangible our as at strong, finally, to tangible and capital while our value ratio CETX book XX. total remained X.XX%. XX.X% metrics capital share quarter September Our the $X.XX of including assets XX.X% of by ended per increased of tangible And equity

over the turn now to for comments. call Valerie I'll her

here Thank this for another you, is to good It be Cadence quarter Dan. Bank. morning great discussing

certain million included and of $X.XX a quarter the were from adjusted securities X% from The special year. from same assessment quarter up minor, XXXX adjusted impact, net adjusted portfolio losses EPS we EPS $X.X As deposit the Dan continuing for the of FDIC the million only estimate and and of of second reported XX% quarter operations reduction a third mentioned, positions. $X.XX, items up $X.X last we

the for deposit Total a noted, As $XXX growth annualized. quarter or real growth XX.X% highlight for quarter. deposit the was was million Dan approximately

out growth laid X, approximately at public funds. And billion, offset temporary customer core quarter included As inflows, in core quarter impact by deposits time deposits next which building end day. an noninterest-bearing customer retaining was maturing of job deposits temporary that $XXX customer $X.X did of balances. growth million noninterest in as was bearing, of million Even $XXX at team swapped percent of our the The of declines in total on the of of out interest-bearing the and in excluding $XXX deposits consisted deposits balances inflows of million Slide a incredible the XX.X%. and this stable the customer in

basis the steady with as growth our in rate, the the points be ended being continued at essentially loan fundings million about renewals to our variable C&I segments and based. quarter on by the X% X yield and combination quarter million, grown of decline floating increasing net balances yields, points estate our as activity loan we interest compared in third on coming XX X.XX%. Slide to $XXX loans XX% interest to new margin portfolio impact and The basis the led last our other increased than offsetting positive, SOFR the loan loans the Loan with third quarter quarter increased we sheet our quarter margin has loan-to-deposit for interest the X last prime ratio of about Even only see year. third higher net improvement net balance repricings income those over were with of to of to half XX continue net on a to last points, quarter rates the income XX%. and our overall margin net basis net quarter, X.XX%. non-real has of as our in details increased are to year, declines XX%. $X.X loan our in of interest margin in flat the interest in overall A in we to by with net Compared improving

the even stabilized, basis have third with really deposit increasing quarter. the As for costs balance to Dan only X X.XX% growth commented, our points

million approximately loans by funded which $XXX of cash increased linked improved quarter, further mix flows, the securities average interest-earning assets. Additionally,

debt of we in the percent have X-plus a sub debt quarter of third that the in from The sub with million and of million at we benefited also $XXX another coupon quarter, call plan November. $XXX end retirement second to our

of down our borrowings paid this $X.X cash we Additionally, excess with billion BTFP just earlier month.

mortgage decline excluding fees. increase a deposit in the broad-based third basis, account And of fee We needed. expect during as reduction or repay increase growth billion in the X.X% banking $X was improvement was softened quarter's charges XX, of The due revenue. an quarter term, even as with quarter, in we revenue, the these in of ideally analysis $X.X remaining service $X.X by in primarily highlighted million near with interest forward interest other other in of SBA it $X.X across was wholesale to increasing BTFP million, the Slide our on of revenue, million factors, to margin curve miscellaneous by credit-related the net million the on in rate core expect supplemented included revenue customer adjusted gain quarter, replacing swap board. continued businesses income sources in expectations. Noninterest deposits, on Overall, the fees, the second noninterest in really the and sale fees, all fourth $XX.X growth

and year, in This These third banking by quarter. the noninterest valuation increases $X.X servicing offset to decline in solid year-over-year million. paydowns, rate mortgage reflecting during production year's in to up as growth adjustment were same had million, quarter $X and revenue growth of changes $X perspective, XXXX. a compared mortgage adjusted servicing rights of back quarter the the mortgage partially compared offset resulted income revenue the a of X% in to million prior negative with a Stepping total environment, the in a by was payoffs combined XX%

of the $XXX up which just $X.X July noninterest was quarter million expenses favorably. or cycle, expense items several second as impacting given X on well for annual Moving Total quarter, expenses. million to expected the adjusted as merit the was over X.X%, tailwinds

laid linked XX entirely that million, the miscellaneous is an increased well $X.X almost second other of that lower and were up both on fraud quarter. quarter, and the As XX, a quarter to expense with compared Legal unique were merit on other cycle simply adjusted quarter second second increases and as costs included due million legal, the $X.X benefits to compensation operational basis increased as to $X.X expenses out million impact. recoveries Slides expenses that those result loss

broad-based an continue solid to quarterly On in of XX.X% expense experience resulting of in management, ratio X.X%. basis, year-over-year a quarterly adjusted reduction overall efficiency a we and expenses

are and Given to the our updating our remainder the strong outlook range with to expense XXXX year. down X% we a year, year guidance full full XXXX the X% adjusted expense management compared of of our for

growth expense growth, with pleased in rate invest technology XXXX. reduction this for expect and to resume While our more continue the year, a normalized very we teams and to in expenses

guaranteed credits. consistent so, quarter nonaccrual expect classified a quarter. X.XX% percent $XX they loans the slightly while from the the X. loans million, Turning bringing were process, lower last for our on losses third quarter but for were our the loans a by $XX.X XX down a total $XX on X.XX% in quarter we coverage third Slides SBA collection And portion a balances. Even A has and third in percent credit nonaccrual through were XX criticized of charge-offs as and and million criticized same loans of previously than they of the in negatively to or do of reminder, Net of X loans quarter. loans credit quarter, as Classified slightly at We balances, FHA million detailed been significant tracked the our with annualized, in the million $XXX reserved, loans the ACL or flat $XX that of recorded results specifically basis for represent increased of quarter issues these the and portions third points relatively to for guaranteed our the provision end X.XX%, classified and charge-offs year. total and Nonaccrual second don't to as at year. million points XX% quarter. criticized basis the increased are linked weigh

included to at plans $XXX in million in subordinated price a mentioned our million repurchased currently Tier under ability detailed to strong, quarter's this debt X capital, is and share our $XX. opportunistic. on commented debt call build XX, This Our growth November. the we average remain be capital. on X.X Dan have earlier to weighted repurchases. of in I Slide continues and Year-to-date, supporting shares

fourth was company, pleasing was well and in both create strong anticipate that slight to replaced ongoing particularly see and as earnings Tier growth results, X a costs. of positive terms it we So that near the growth for through term as will very really the but temporary deposit in it be in managing in dip a the quarter closing, to quarter, our growth. In in

Credit grow. have to that, stable line a Beyond continued and improving remains margin interest businesses our fantastic our and fee expectations, just year. teams over our and operating net efficiency done in in have with the job

and momentum working XXXX. hard into this of We remainder and are the throughout XXXX continue optimistic to

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

[Operator Instructions] Manan first comes from Today's with question Morgan Gosalia Stanley.

on through takes all. versus near I some morning, the NIM wanted Good medium and in puts term. the of to go the term

start the XX again next seems over fixed being despite this next rate at rate near got loans repricing side, nice the a over it have should you maybe a have months. rate asset looks rate you have yields some about not uptick loan So quarter up. that? X how we piece it you've that of that on you to coming in can net in loans finally, about the due And we Plus think rates floating the like about to impact term? Because year. like the How loan higher then you variable talk repricing the should think the

take a has I happy attention maturity. I'm did you to repricing correction that. on Slide point we our XX just have all that could And to, that

posted updated details an And was the morning rates. that is so out related the that this categories there slide of deck

You're exactly right.

higher of [ the than Our loan that. at X.XX% on and because in We're up at XX% overall loans continue again, having tick the ]. to new yields floating even that, is did rates putting portfolio securities, spite rate

that coming in higher back variable are fixed are renewing, yields. also that repricing, have rate We loans rates or at

so rate [ months you reprice loans that ]. mentioned a And on when X are the is X on coming to higher average to on loans the today. to take that next XX the over weighted We're X.XX% that you of XX putting than look, months,

yields loan it's we we so bump that increasing will support quarters. And the over that believe incremental coming to look as honestly, continue forward

Got it.

a today? saying rate repriced are you're the So than even at books what rate variable loans on the slightly at they higher

when but on. come it's they effectively, come rate market the they'll yielding because absolutely, Yes, they're And on today, to pricing. repricing,

on. further out this instantly. year going It's reset, reset to than X [indiscernible] going to is

you liability down eventually given the on BTFP deposits? replace on deposit would some about maybe you noted up. that paid want BTFP payments the we that How you betas more comments then BTFP, coming core think side, you should And Understood. downside, that your to have with

Yes.

noticed we likely deposit increase have X basis you that points this quarter. So of cost

Of course, quarter. did quarter declines were in rate come late the that the in a

would that our key in expect is deposit costs. So I actually this quarter

is working on be saw We working those are that. that deposits and deposit prices, have the still of that this aggressively bring continue exception cetera, some to the to in quarter. costs to hard able That down we et growth we're

got quarter. over that next almost that factor we $X The in billion, $X.X -- billion, important note $X.X billion We've is this deposits other is quarter. I had rather, Dan? renew signed renewed think another that to

the is quarter. First quarter fourth

the And they're quarter Yes. at shy quarter. fourth X%. Dan. Thank forget ended. just in Yes, you, actually of my I

will And rate at come and at. reprice on the that so depending those lower a they on renew term

And of so book next X that there X little CD over is of tailwind of is up a to for coming the that some the bit months. repricing

get in And quarters? the and the should betas terms it. deposit over to what you think downside, of just Got couple do the clarify next of you

the Yes. just down. coming this -- rates We're at back started

to in down to new we of talk bring deposits. working aggressive those we're can betas. there while than to we're that I'm number other retaining as a ready as specific kind not are of reporting about we So deposit cycle sure be hard

a more kind that, quarters. little of coming think, So I we as the on

comes question Rabatin Brett The Hovde next from with Group.

you the maybe versus production? first in XQ level talk actual for mentioned everyone. linked then I Good just gross commitments, Can ask guys quarter? know the just Dan, of to Wanted morning, of -- on And loan terms about maybe you strong net pipeline.

versus Gross net.

where [ coming XQ. in is quarter right sitting in pipelines close loans are So that's the And and the yes, new so mean, we billion-ish I -- we Billy pretty on both busy. team and to here. was saw ], was $X.XX the it Chris full. were are

think can't we're Billy, running a think sheet. hard, fast, are of We We I off business. It it's the Chris? it balance or lot keep on winning and paid just too

Yes.

So alone, than do And that activity million market couple being the lot refinances of we had segments, has churn one and almost bond $XXX It's midstream but primary where we've to kind had M&A with In of activity. energy a not. quarter market normal the paydowns. slowed of more the some, specifically. origination has our

be it in was back We So of activity or And our up same given as think that in a what up. filling last I and but catch that driven of it is M&A payoffs corporate Dan's existing quarters, been we created the paydowns, It's flat. some the the end to we general might specifically any broadly quarter, kept any space pipelines quarter, of will, over are point specifically. At more pointing and haven't given we has saw more activity just with of will but has up C&I just pipeline borrowers, robust. just period up down.

the that number Is is X% revenue of that I'm I If the helpful. with some other helpful. I higher anything higher? And in was on expand range, Okay. to not would expense agree better going fee adjusted revenue. in I That's think that total the surprised the that? Yes, income? margin X% was total tweak the that guidance there guidance, little components on then but maybe higher, being missing have you for that's didn't just end the forward, is totally adjusted a about When you going little fourth margin there change the to surprised. quarter, the a on

continue being not seeing, range if that of to that where a the I think to in up that There's bit that's equal, of out tend end there may certainly a costs. be lot conservative, all else possibility. that I little on a higher I deposits. I do we to the still end with trends unexpected. say, would be deposit competition see think then But is we we're

higher not I'm sorry, Valerie, unexpected? the to be end is

Yes, that's a I assumption. reasonable think

next with The Catherine KBW. from Mealor is question

year. that what means. an to should a conversation growth? and Is mentioned Val, around level expense normalize wanted range kind ask, way is maybe put that any appropriate you growth? normalized of next I of it you We level revenue growth expense you big kind can about talk to think to think there Or what do narrow relative of

it's what know agree, We to statement. that normalized We agree is. hard with

to the invest franchise. more people. add don't I you invest to can our at continuing that number We're to a inflation think continuing what our rates. know We're at we in in today, that? doing I is have We're we look us. color inflation than Valerie, looking

for well. report I we Yes. statement the But ] and but look says think be we'll in our updating we next we we're And continuing normal the our invest that as declines income saw year. normalized obviously and we No, don't technologies. it anticipate end-to-end that [ overall expectations to as inflation this into teams with XXXX, quarter with

Great.

and be then fair There's rebounds that. So fair? is Is that loan and to it's at growth. a assume you're but assume if fair drive expense we margin the to next faster XXXX environment mortgage continues than assume expanding expanding growth -- a is moderate pace, And still your seeing to as origination in in year to all should where growth. it's movement volume that maybe revenue

fair. I think that's

it. slides the Great the slides the Thanks declining. rate thanks over panicking Appreciate Okay. new too. was too I variable Valerie. for for quarter, guys. new And loan

refiling. So thank you for

Raymond with Rose Michael The next question James. is from

some expense banks and talk to hiring a about it you Can just what in heard following you'd in talking and efforts drive maybe your year. of that up loan about and normalized kind leaning that growth just next on be as more order hiring think year Maybe next we kind to to be? We've contributor expense additional question. of a about pipelines more on expect might greater if growth impact the

Yes, Michael, I that. appreciate

Fort we've is joined a It's hiring the I been markets. everyone. hasn't in Worth years got certainly new We normalized think leader leader that what's ground normalized. question the And just the the a for is so in many people, of about. What's we are question couple on that excited we're normal. on been new us ground a got

We we've on in we in to pipeline the here call to think got future. that look near and continue you the people forward come board

But I don't think there's anything outsized.

I just think we that in I to do not to are don't of normal would our call hire normal that I investing franchise. That's if would going our out, there's anything we're team call something. this big process. know been going people that

seen that's look That doesn't budgeting into that opportunity haven't come we're in middle the year present next to now, doesn't not But that itself. as plugging We numbers forward. mean not We're for. looking up. right what that something of we

I we're going and and continue to for to on think in things, technology, in inflation to we're us invest an invest to going continue normalized most is be people. going to our

little Helpful. back this appetite? the we shares. move then of we the nice move see. of kind we election? though buyback outline And think some how you your getting just about get maybe once M&A all a past stocks, buyback can forward, bit The obviously which as is recent especially on nice you near-term should earn capital And guys in of the bank kind been But the bought just prospects has quarter, my follow-up, as higher in after up build back to

Well, that's X questions. different

the long buyback, consistent year all we've been So with buybacks.

up that. X we've in and market us The We do some backed seen is taken You've quarters picked a way. of in row. advantage same up, thing the

that there. process we in in that we playing change Our our place. rolled buyback value can anything buyback an We've we've don't the think is all annual And cycles got to through play that on been program. that continue I think I of

continues M&A there the front, be On to conversations.

like think continue that to see in I to would expansion one we footprint. be

expansion, like see to opportunities that's to more or less grow attractive within with us. and footprint. announcements we to footprint continue We the would to We more see continue

me in and to in get We we're we'd particular already bigger like Tampa order, for Austin Orlando, heard and Dallas, talk in markets You've like would Atlanta Nashville a In to and and while. grow the Houston, Chattanooga. in. no

and within we markets. today, And where on we be would with that go bigger like serve can on markets to the those we

conversations. execute. in where And be where focused, in and we able we we're a capital spot so that's And we about think don't having a from the to I anything comes we're sitting sit know we game. but think from where capital-wise, we're number, today immediately, a be we're -- to that good to trading really want

right. a of there. list All markets That's good

you'll have So I think lots opportunities. of

question next comes from with Citi. The Ben Gerlinger

through if kind here? Curious about of yields answered originally. little we loan a kind I you it bit could talk more of know just

more had point the So basis we next over X here just cut. Markets projecting a XX few a months.

color Just most responsive kind more of recent how little yields to have of any of rates can extent? everything yield anything kind to granular you of Has or XX? And a sort that on been bit going the like give, loan new curious, priced loan forward, kind in?

$X.X XX, floating the billion, [ just within So billion, Page shows pull purpose on XX% on $X up. XXX that I'll that at chain XX-day virtually instant rate ], the portfolio change. break it out that we way that Turn that's

on, Yes, prime both right? within it's and life and days XX SOFR. Because

it, that's to that some to billion Yes, $X the going very That variable happen next quickly. of quarter. is behind structure going short. in could rate change that's The change very

couple change out. Some of that a could of years

longer in reset and much rate, process. this rate, fixed And of billion some the off. variable rate fixed to get that's going quarter $X.X mature a repriced that in that's So

stuff quarter rate of and rates change, reprice quarters X other some the floating the reprice. if will of all mostly will -- each of some So this

it you the So we're way. out to that way that's why we're breaking showing it

we're around seeing in. back the loans came on look past a quarter, at this at [ ] X.XX%, you coming level. if And What new X.XX%

the quarter. was before And rate A change was remember, late rate lot change. of in that the the

the would with wide, they expect have bit that's a I little been rate reduction. No, spreads And in probably fact. some the come but Yes. pretty of a

Got you.

a yes, on -- No. appreciate lot fee income. That's color. that. I That of Okay. yes. And then

fair MSRs you So of going $XX then tells accounting call no to to someone an core into get base? run rate? let's from here excuse what be kind have there million-ish, it, $XX out missing of -- a securities is into me, you and other that you starting the is next kind here back million. is kind I scenes? million Like [ -- the really ] of good might gain, point be. sustainable the, for or a backing $XX is insight until But we a get accounting that you that Or Is year something behind as it's if

into solid had drive mortgage we markets production mean sell if aside come the MSR. do up mean set revenue to actually on side to you if I say and and those I noninterest pick we some ability things down, rates But Yes. will of I the the the a expect income. good performance. the

that's one simply categories. It quarter-to-quarter million mean positive within it occurs fair a miscellaneous I variety in or going to there's I some valuation in that's around can a to I around it more, slew or elevated bounce a other be was compared the quarter that, So this would of of other items, mentioned expect Included little variable really NII, bounce bit dependent. little prior quarters. rate some $X those a that numbers. of move of quarter-to-quarter. kind because can

of our investments. Some FDIC

that get quarter-to-quarter. some other fair value have We investments

teams anticipate little really to that's see uptick predict. mortgage. about we our the can rates But other good forward. So look Like a wealth We The harder and that the we that, that, interest should than income. are the feel doing as noninterest various sources, impact well. some it I that and said that,

The mortgage success. up team has for queued

of able is look a team be mortgage They're rates ready for opens going ground. we're revenue. great job one them, we to of in the up, this producers door invested some As that to has at the making got harvest we've the on roll done things we've the if if sure mortgage to good year

priced. We're the On side, fantastic management team clearly there. has done wealth the asset a job

So those really there. now, valuation, lines of there's of if impacted look change we would things business. on in be right But both a good

next with The question from Stephens. comes Matt Olney

in I for but has And bank level the $X it assuming lower of just I holding liquidity go billion, is Trying year, to this quarter. think going funding that between this this liquidity. want It term to the like should the be sounds of program last overnight $X lower to be levels portion fourth liquidity this expected below paydown, paydown? of to if overnight back we BTFP a full $X we been year billion see billion most was of impact overnight appreciate once next year. levels from

we on And think part. that's think out than what earning more by a it. your that's I fair dollars because was Yes, I a fair holding were there. assumption for actually assumption We earning were paying on cash we were

billion right. size down with was $X in purely excess we October That exactly cash. that paid Yes,

if times, or on that I cash of so a maybe where funded word billion-ish, were deposits the And rest -- rest deposits -- it quarter, billion, it's in the that depending the either you But our range. $X of couple normalize, wholesale said we'll of funded go some it funding. will expect $X.X by be over levels, by

Okay. Perfect. industry from identified. a previously was And migrated? general credit Any then side, you think what of on nonaccrual were uptick the were on the that color more of just credits or mentioned commentary handful kind I just on

It's normal generic flow. just

one the a a a Billy? down been basically at looking up up it's I criticized asset quarter, ago Chris, quarter, back number, today. you're think quarter, we're where down a quarter, when year we were

staying Team we've Exactly job or were of identified that said. criticized Normal that working That's loans has of No. of out great working done kind flat. well a of migration through. been And industry-specific think the of and I it's just that you in the charge-offs if systematic office, ORE -- flow you one numbers. see or will. The numbers is normal system credits. net

to hard area. normal. any just It's general Yes. find fracs, business concerns weaknesses, It's as in

question Davidson. D.A. next comes Gary Tenner with The from

competitive pretty And experienced mentioned obviously, or that diligently, you're there. the terms customer deposit still side, in deposit September do So of following the it's you've the able talk rate of pushback about out on cut? you side? type you're what rates receptivity on had working Can you to but what

early day sure too happened aggressive But probably team that to the ago. It's answer in was that changes because made the the perspective X rates the it's dropped. making pretty we weeks

and exception spent our look combat have hand-to-hand everybody reset drives bank that you've rights. that weeks? we of been weeks for any job pricing of focused exception Chris on moved. that. the We all coming I being our the make that feedback year was team into doing And The process we've heard CD us. a in we pricing. haven't. we has on of prepared. fantastic the So sure process couple Chris, at long our last drop within We that

out -- products still XX, of dropped we banks It's at there. the dropped XX competitive took different theoretically across as We they amounts. a our were -- dropped number looking Most kind of they drop.

Some little a banks that. drops bit than less

more. I think and need we some

So hand-to-hand our we call in pack. of combat it I competing, we're clients. We're middle right the with think the

retain we I pricing the out still the deposits it got have think to we've there. and that the with tools grow deposits

and also Everybody's been bit. around, our to adjust. the it to and think term. ran have competing rate side. I They're bouncing Dan competition is settle we're bit so right, short down seeing The needs adjusting a rates of on terms, kind a

the folks perspective. from client that's little step on a deposit the out term Now attractive a you're bit to further because seeing some acquisition

top So ready to it, watching we're all compete. that, on of of

really door. field retention. The production, on then what's on in We're team good in the both we're measuring new on new also doing And measuring is a the retention. job coming

in a or a heard kind point, but XX as it appreciate the deck the prepared have think of don't in I I Great. rate? follow-up. jumping just And saw a that. off interest-bearing deposit remarks, do I you spot it then September

One more time? September XX, what?

Do rate have you as interest-bearing deposit an of September spot XX?

point... interest-bearing for but I we've rate, an ]. quarter, a obvious put that the Not XXX We that Yes. don't [ had uses think obviously, about in. spot the X the

Change like...

fairly dropped that Right, right. rates announced. We day it very actually the were significantly

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

pressure. bit. little on that I more color to any loan questions I know, C&I that have on Most maybe But to but Chris, that that? of been that and of said go happening handled. has you you hear what And that's general -- changes back more really under that? wanted you on quarters, a as my been a energy, Do have but growth to in change why any color could couple I

Yes.

think coming to of talk not hard see you end the team, talking we some they're see team quarter, a were when materialized. really like I the We they thought growth that's growth I see that think to actually the the before -- quarter, fundings of we would we into about we that the Jon, Billy? hit. end paddling when in that the that category and some had likelihood feel been

Yes.

got. got -- Jon, we So quarter. end transactions We're We awarded a hoping on in were the still of would that are good we've our They're pushing. close some pipelines We the had great. They at those. didn't. position

across loans, as they in real fantastic longer earnings working we to across get benefit of lenders that growth. we a I sponsor-backed standpoint. But of various corporate depository take accounts going -- specialized. are activity an keeping because kept from our it's lot a groups of trade where that we from companies. revolver, was lot is and of credit and and The accounts. have is lost were were We'll owned able we entire so it a they teams core growth, pipeline mean, net see no well the the where market treasury to from deposits. deposit a have we're that a overfund Some that private them are from product And we loan now spectrum coming payoff capital kind

the where just prove It end don't pressure I going up. payoff to feel and the pipeline good about think year. I was but real, So the necessarily I -- will will think we're that slow,

That help you, Jon?

Do couple you an there? the you'd I for does to have I you asked that higher you of this rates? ball, And be at see help. like opinion preferred The longer something Rollins there today? it. quarters get is I Again, ago. Yes, Dan run time, crystal a think may

point. key this is Stability better, is moves the the at Slower stability.

neutral. We're really pretty

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Okay.

help. appreciate it. the Okay. All Thank right. for I you

this management over further call now concludes turn to Seeing back in closing Thank queues question-and-answer I line, the our any would for the you. like session. to no remarks.

joining you the can as discussed morning. think morning again, cylinders. Thanks ahead. this and this We excitement firing on the that team optimism shares everybody, for the regarding results sense as path all both well right. we're we've us our our I'm All sure

have a active an our as tremendous pipelines. done protecting well growing and as bankers of Our deposit job relationships loan core managing

teams, processes really to administrative an reporting strive on success key as road our and our and Our improve you fee wealth exciting the rewarding be forward well mortgage businesses We on are It efficiency us, as our continuing -- seeing and appreciate frontline and soon. for and a team. you including management daily look are to joining our and and teammates. teams your to support we the Thanks to time time time real today. Cadence is operations

now The concluded. conference participation. has for Thank your you

now disconnect have and great your a You may day. lines,