Home Bancshares, Inc. (HOMB) 18 Jul 242024 Q2 Earnings call transcript

Greetings, ladies and gentlemen. Welcome to the Home BancShares, Inc.

Second Quarter 2024 Earnings Call. The purpose of this call is to discuss the information and data provided in the quarterly earnings release issued after the market closed yesterday. The company presenters will begin with prepared remarks, then entertain questions.

has cautionary to note company refer everyone The their to regarding Instructions] asked remind me to [Operator forward-looking statements.

this with Townsell, Investor February to turn find Form Director Instructions] It is of will note call my X [Operator Page You pleasure now of being XX-K recorded. filed over the Relations. XXXX. in the is SEC The conference on their to Donna

our to Chief our Thank for begin Allison. of our John afternoon, you. Financial welcome second me John Chief is Shore and from call. President Marshall, some and of Centennial Tipton, Tracy Centennial today's open quarter Chairman of conference Stephen remarks Brian John CCFG; on we Chief today, discussion of Lending Bank; Bank; Chairman, discussion Chris Hester, with our the quarter Allison; With Officer Officer; Good will Executive our Davis, and French, Poulton, Chairman, President President Finance. To Officer; Premier Kevin

notes that forward sleep than math. look more I I reported but first our so of just around, the as number been XX a since those to I'm 'XX, conference of us we [ I them not comfortable financial is Welcome out. as results. I was beginning Donna. you and that I call still I certainly presenting to of XXth year, quarterly institution. today us the company when you, a June and ] XXth for year had with numbers. Thank my This had was our year could worn the nervous, have public for quarterly

over with Stephens the trip We just country. our telling went returned story from X-week all a

IPOs times, not were done. If getting you remember many those

laughed and was of pulled X firm. company pony going yelled $XX traveled one million, of done. at, raised by one-trick weeks scheduled and not As was get Dallas at I pulled had in the we're the a out. even and to and a it us I about fact, called had front behind us We out sure matter for

the of of banking an retail in bank time, arm syndicate One It our of dropped offering out bring space sold just that time the was terrible investment a terrible firms to the was one IPO. best the the prior to day. -- and

some met many from shareholders billion, still wonderful major we However, a people $X and our ride. are to company of what $XX billion

report. with let's So the go

So so 'XX. far, for good

reduce revenue, in to I the As first through quarter, quarter, 'XX easier start Home's Last We second we the nice improve than to said and top-tier done. said increase performance expenses quarter. and need to profitability. said simply continues

So here's what happened.

improved second an we side, of from XX.XX% expense XX.XX% the On last our quarter for of ratio the to efficiency 'XX. ratio adjusted quarter

$XXX,XXX letter first in while was was and Loans 'XX a insurance an a the -- additional this for times -- hear fund. million for to for guess million Add had Fed to quarter several of I of by we growth you'll of X.XX%, first environment. from FDIC another strong were second quarter start We million made the it repeat grew points basis on quarters economic today. the second the the with allowed was continue Noninterest expense margin quarter great $X,XXX not in got and invoice 'XX. to quarter nearly from strong up for $X We the spite for $XXX $XXX,XXX payment strong of us what improvements adjusting profitable loan million, same year, XX over first after expenses a is in 'XX million. last that, both marked the

first $XXX actual bond slight expenses $X,XXX million we quarter savings quarter, improvement $XX the that. [ to million quarter do pulling better. in After million the $X.X I of year but if insurance out million a first think can from the continue from a was of we're done with the that That's for now. FDIC $XXX,XXX ]

per earnings the $X.XX a share earnings. share, for of company beat for second beat and of $XXX,XXX pleased of ROA the million that. additional the $X.XX $X,XXX the FDIC I'm adjusted the reported earned quarter ROA earnings at Adjusted insurance that When or Diluted million at for X.XX%. actually 'XX, supports 'XX an the or actually quarter $XXX,XXX were X.XX%. adjusted a for earnings million with 'XX of second sporting adjusted an share fund,

our analysts XX% XXXX sheet to to superior be to Having profitability environment bank during Home's balance that run very team. side including Being for high that runs rate able and is all supports With handles projecting interest by stock management to this repurchases. pull of with lots to top-tier year. a management down allows pleasing be shareholders side almost this able to a our X% ROA dividends earnings

million repurchased first $XX.X Quarterly for [ dividends during million quarter, annual ] [ ] we $X,XXX of we repurchased [ quarter. second of for $XX ] million million ] [ million $XX the and during plus million dividends the ] $X.X [ $XXX or

of million It X a shares. of X,XXX,XXX the almost reduction a in That's $XX.X and actually [ X% months ] total shares first in was For shares. the year. X.X outstanding million

of be pulled lots because to ROI shareholders. to As I said, there's benefit a to there's our that an able panels be run advantage can XXX

XXX number average below quarters to outstanding of total shares the for million. future brings That

interest Over still millions a by the share the months the to the years, common past we in XX XX.X%. shareholders. retire tangible of have or equity shares what's improved the try We our $X.XX in last and several best stock of many always and do repurchased

made, to earn out up. the can't is enough can't is mistakes earn way the the of earn out. their reasonable most way bad of sell. money want banks and those one the banks to Due investment all that I out They banks Street many They way to trouble. assure talking the we're community of blow Wall Home about. is in are not may all to banks trouble Some talk

additional to would as the dilution a XX% off the up. stock They write the bank So they extremely capital, their shocking. shareholders been bring sell good to to and painful better but have where or bank as is deals some in we've at probably much seen they some reduced sell as dilution in price recently was

Your by build million by maintaining present while Home couple with loan month and continues I has Home to ability to and quarterly, $XXX [indiscernible] stable and a month margins, $XXX you having quarter of earn million a account that than now huge of BancShares. the and quarter, loss reserve capital to more capital almost

are truly We are reasonable trouble. in a many regional banks and bank

sheet allowing to road. be slightly separate remaining for the kicking changed either pack, continuing the because maybe ratio. a can the to think capital. goal from improved improve fortress much chased by performer, patient We've off crisis while while been have the don't to loan-to-deposit CDs of top-tier our it's to bank So Not ourselves is they balance just is and/or lot these a patient high-priced over. banks, has They the or down loan-to-deposit loans roll their ratio smart maintaining capital same. roll a and more except the securities to of off I

problem not enough. of able is enough to odds the be the quick way, not but their out may They of either slightly earnings to improve fix likely. earn themselves quick a But

or to market Instead amount was the program securities the to and the going called may securities higher saving shortfall. down, end the Bank back allowed chance the problem show Fed expires Program, Fed that pay is CD face rates loan much and than of of coming to go when the the banks cloud are Another program dark How That's to there on February the Funding to Term value BTFP up March have a the up 'XX. the the that banks bank in money the is going value of me of that was. rates higher. make

in time That and think for Many negative possibility. down to Fed don't if the than less politically it a the in I in Biden whatever extend. reality, That's would I If blood liquidity I inception or I'm pay not exactly of they have they'll it's to a money. That's have does and 'XXs. the kicking there's and a be in program tangible liquidity between what ends. the positive bath common have to bank equity the road. been savings is sufficient can X%. when the loans wrong, the administration. could not but but program has lending March hope many the be the the banks why pay Fed [indiscernible] bank for have 'XX fail, question happened tuned. call it certainly Stay

to turned the many earn banks comes to borrow securities be sense looking do, there banks. loss back will get to being something to an end. themselves arise could we talking very and of like We're as acquisition into. not one with our thing good have recognize that's $XX sure will 'XX the on is bank [ interested couple and the If that the out that's securities not problem. opportunities that to and be We're for able sell $XXX have on for may able I'm that they ] and to in BTFP the that securities. think to This serious problem because of looking Bingo, be carefully makes March an to that force also shareholders. them worth

nice a deposits I security the see to and have bank little additional running everybody Home, shareholders. It's our At our we couple and provide for stock in Amarilla get and safety, here. Canyon, here. of kick customers facility. a Texas GoldStar random comments Trust and nice stocks our team got for sold just into building large things a moved several We profit, in housed the GoldStar the back that just

headquarters square an We feet XX,XXX also additional building. our in leased

You neck. more now an square to around lease sell have a and leased in, and to XX,XXX we've an arbitrage square our kind GoldStar opportunity remember, [ as of feet XXX,XXX was foot But maybe has moved you ]. that's

looks maybe profit XXX,XXX square over foot it like turning So a time. a into center arbitrage we're

the businesses that that State me of other electing that the lose lower XX% to a it per in earlier, of we're bringing takeover conclusion, job "If Jones, your over privilege stories I $XXX start million the respective share -- after-tax and and I everyone. I seen come revenue to the Arkansas Butch X said standards, XX% with Head very let Football of income quote for line, share University so with I improving I've each often, true million -- revenue about $XXX a and and In you. over with nice with good means earnings XX%, with winners. you'll quarters were did, first 'XX, sharing this and as and Tracy you brings had that bottom Coach, a the

I've Patients me. many lose unwavering raise but with years, and had your have continue the we've led in efficiency, there investments, you ourselves strategy, separate share in strong bank equal. all work, that of to is discipline, nation. management, from I'll smart one basket, said, more losers." He the strongest asset said, place be capital, to And conservative closing, stuck quality, standards, Home. hard Donna? one and to like company good the banks banks allocation, our good If been defensive just the regional over quotes those strong as the liquidity are created I not as but try thrown you We'll on in no pack reserve

that Congratulations a on information thank and all you sharing you, Johnny. with great us. for Thank quarter,

Tipton. from Our comes today next Stephen report

Donna. Thanks,

and Centennial solid Johnny growth quarter, great continued As BancShares deposit mentioned, loan had and margin and and highlighted another by net expanding expense control. Bank interest Home

in with comments the already. cash balance, Johnny XX first interest already maintain healthy the excess X.XX%, by QX to call. The continuing earnings touched my all start margin, points to I'll detail NIM that on in balances expanded basis reported while net discussed on has we quarter as

in in event quarter costs was exited yield deposit the XX XX basis to an total June X.XX%. excluding and net points increase the in X.XX% income quarter, Excluding points. from improved the basis for noted The at press increase XX and margin interest outpaced on release, loans, QX QX basis the of points by X.XX% income, event the in

and X.XX% costs X.XX%. quarter, X to total deposit the at basis the quarter During exited increased points

increase bankers quarters. seemingly the advertising the and and in CD the done past Our deposit money of has interest our across in half environment cut extraordinary high-rate managing rate of have costs X an interest-bearing accounts. this market each job The footprint been endless for pace

moderate. weighted over maturing average a are a rate We with little deposit but pricing customers see pace loans the repricing, we continue over we half with year increases million $X to encouraged to in of continue $XXX over on second the negotiate months, of XX X.XX%. rate in been, to weighted this core the next at maturing of the have asset of as side On billion a have And average X.X%.

Switching continue be a key to focus. to and Deposits liquidity funding.

of outflows. is quarter X with Now payments tough deposit tax consecutive a growth what us with seasonally despite quarters typically behind and municipal

presidents for focus the analyzing in continue and sheets to for for Our movement are staff million on as increased and deposit be similar balance the mining $XX prior mix consumer. quarters customer Total to was side. deposit additional quarter. the lending opportunities CDs deposits The

and to as fairly balances and total at for of sources X.X% strong be stable stands Noninterest-bearing ratio account loan-to-deposit historical of Alternative June with only the below still of XX% broker extremely funding still continue remain XX% total liabilities deposits deposits. well comprising levels XX.

Shore regions and along million, Premier. $XXX side, highlighted solid asset by in over from from bank the growth growth increased the balances loan CCFG community with million On in $XXX period

X.XX% volume the of in of particularly a we back billion an that quarter from half $XXX half originations lower remained a QX. XXXX, QX at slightly end. on QX, On Payoff at although Yields saw was $X.XX coupon CCFG. in increase of to in expect little total less strong with of that funded from than with originations, we loan volume of million average

the to strong at a of leverage loans, that coverage on strong opportunities. X% a XX%. ratio risk-based ] coverage the previously [ capitalize of capital nonperforming on equity of are Couple strength XXX% XX.XX%, in of and all with total mentioned a a ratio reserve future XX.X% common loans extremely position with we on tangible over remain our company, Closing ratios capital of ratio with

results. and I Centennial want in State efforts bankers impressive Happy to of dedication and first half thank of for year this our all produce their the to such

turn back that, to you. it with I'll And over Donna,

Thank lending Kevin color the portfolio. you, will Stephen. And some now on Hester provide

and Thanks, good Donna, afternoon, everyone.

it grew balances fourth the making our loan $XXX growth mentioned, quarter million Home. of ending Johnny nearly consecutive second for in the As by quarter loan

like or of recently. While loan is especially second the impactful together growth is can aspect even have several most we important occurs, when string it first strategy, it not we the when quarters our

Our consistent growth. the to conservative have rate our during combined cycle approach forward-looking to credit, interest paired facilitate with management this rising

We and from overlooked in a and large success. Florida banking the economies portion by occurring activities was our an This benefit reason often accident is of great our Texas. also not of for

continuing we unexpected Two one and be were new we remains as that, asset strength play Home any early for the said higher This diligence in tending experienced issues closing. one relatively level of trend Notably levels their portfolio. majority that our is though, their issues and occurrences here, legacy we leverage that is a well. asset quality of of quality than are from Happy significant Asset during are assets not was higher continuing as problem due had before, quality also identified given new. The totally to resolved the a portfolio. before acquired they knew that

of million. on an we trend, this of quarter, second $XX incomplete example Dallas by foreclosed increasing multifamily the OREO current approximately a in As project North

and acquisition, of on out loan door his cost underwritten poorly outcome. leader just still reasonable anticipate the way the to we at a XX% defectors the before While by originated

from We achieving than CO ]. are the also who no would a upon XX that the less small serious customer a contractor LOIs than X with result loss worse completion original [ and in is have days

care shift increases this is we reflect is new underlined cycle. outcome the on I small positive previously in our while facilities, And metro discussed tone, compared which review to recent relationships placed different continue This occupancy, and on to which were the as this They actually of resulted work This to group due outcomes in regulatory number by in the The they includes translated excellent are to past, nonaccrual have quarter. the growth geography. overall to the memory cash which mentioned occurrence reviewed strength yet special hasn't last pay of in agreed. showing a flow. assets the continued appears DFW and in the

at respectively, and OREO, numbers, to As addition X increased NPLs the and dropped asset with awake as X care keeps $XX noted past and that million. X.XX%. still criticized even that. not me occurrence noise points the low quality but and memory Early-stage something for by nonaccrual the are due around basis the basis above, strong loans NPAs classified to is Overall, at dues and the points,

Donna, that's turn it all I have, I'll to and back you.

you, Johnny, Q&A, additional any to comments? Kevin. have you Thank before we go do

year it's months -- pleased was It X don't. with. this great very first really Oh, a and been

we'll pack. everybody think pleased to from pays work I separate continue And is to everybody. work the to congratulations Hard off. ourselves still

we'll else go nobody a if Q&A. has that, to comment, with So .

first And Stephen of Scouten line from Instructions] the is of our [Operator Piper question Sandler. today

guess, in as for a to this whole, number with start I'd light the I especially think Really bit of love which is growth nice I seeing there, loan a we're industry what growth. weaker quarter.

what So wondering folks been Stephen pick a this market were other but to getting paydowns aggressive to kind off a blocking little you of lighter stepping more said or know business able quarter, tackling? the dynamics I have of just kind kind and little just from led that? and good of away from

Kevin. Stephen, this is

from saw So good I Community Bank you footprint. think it's production -- a the

that -- CCFG. little I that's the it bank opportunities been see right fourth last time the quarter, maybe up think, quarter, than bit, a probably lighter has good. for quarter, good. I now even but pick particularly this But third bit was to that translated lower pipeline good quarter were in some a little still growth. It's that our talked paydowns. to some that we seeing going you're markets think did Canadian we -- really last that and think And Stephen about I I mention think

lot talking of with. our We're We markets in have opportunities. a

today. have good we happen that things don't pipeline on the So there some particularly could still be

Okay.

John, how still commentary you kind think there capital And M&A, why seen sell, said, where to doesn't go there. good. you been thinking understand. some of seemingly you've a about are curious of your then kind kind off like hard I guys, have trades just Sounds for these of maybe, raises -- the math around for banks those if little wouldn't that all? of I'm relative work you And that some to transpiring to you and

statement. Well, I you on use I [ guess that ] can

You can't fix stupid.

ground they in banks So in. it run -- sense their they to run just whatsoever. their no the -- a me ground lot the It and run now banks in makes absolutely them

in in looked ran they've [ little moves the ones pretty made that the ], don't I call of how they again. a but ground. They're bump I it stayed at interested to the and that are to -- and run it. these made. They place I the it. about people, was want what go game. they and of ground into said done I me. started the didn't running understand the ground I that So what out they some then that but I and on in don't a amazing bit, ones the it's get

good to dilute XX% you So there XX%, that's your know them. shareholders mean hit. don't to if -- I luck I a major

to that is shocking. And overcome

I up of So I this to going of if get control don't give somebody to we're companies their one, control I else. make cause given in answer. one. control somebody an have don't don't really to to they've up actually going this know. it's of -- And

you're a to very with don't were bright not way I what And best me out that I of it. think just an there don't was that. That's about some the these it think moves go agreement I are watching move. So believe

all banks mean, going together. they're to and to fall rise So I

X with get they're Home they then I well, X, X-point think is to run. Home, or somebody and missing point X if to going So merge like -- run,

to banks as don't that it's they've rest think don't a why they done. the in long, -- it the -- in is secret they believe maybe country, think of understand don't as Home going I get sauce going and If they're That's the broad see top-performing that. I to they they're got and outperform

time second I very manage mean, time. got a again, but you had say Anybody they -- it on managed comment in you that. well, So the and I Tracey, for they Steve, comment, the first won't can it they didn't

there. more then cuts BTFP the just [ in you maybe it rate more And is we had February, the and guys, maybe a And palatable. way it? from and some little at we've see out ] March potential sounds see if point, XX like of bit that M&A math the first where think to shakes if go turmoil so And event a for in forth. right Is from that about you

interested up is that's we're We're about just I'm mean looking a kicking the in being it. to think of I I way tires. deal. and little What we're a tied bit. think afraid the

improving. to looks know us we've good making got We're income and You the capital. money like is

of a last history, little or in year really one. income wise, two, But wind may we second this it be the lot had year. of had a kick some quarters was struggled investments had the of best back corporation's last quarter We maybe number money. but in our So number core and one bit to of the some we in

So income last this -- year's we and earned time.

I and see daily things -- in the reports continuing. good So

we like daily look get on. at I'm what every seeing. day. I it what's I So I going and report like that

team more, been period of of we but of to the could And get has loans good time to been is stuff. lots has have of that basically. do lending his not good. the We done lots and at able of to to looks provide conservative able over -- -- nature lots a company continues Kevin us just

to a So have in tied when we deal opportunities want of real -- hands my middle up. come I up, the Stephen, don't

I'm to other that on impact their we come before quick. and I -- marks And disrespectful, how the we're we the bank BancShares to of out But the problem, making making to BancShares it's ground, they side Home come the upside can going and I buy money going sit that does do come our book. mean I if don't And this to right damage do we run their you where in side? now, but anything the other seeing just kind want guess we the pretty on and see. can the don't out long

told last better now in better position we're I in we Home going sitting than be seat, and catbird second position a I quarter, in third sitting we year, I think quarter. you first think the we're quarter. the in in really to a that the were was or the third And

So it continues. just

as long our in. people team As Kevin's of the loans, and cost people funds brings and retail the loan the brings control team Kevin the

you're going think I to see good numbers Home. coming from

quarter. and Great be still Shareholders your absolutely. wife Yes, should too. happy, happy I'm is sure

something we're [ Well, -- look going to Board to explain we're the kiss going Maybe in hug look to I me I'm at at and let -- dividend Friday. ]. going walk meeting when the

Our Group. today line Hovde is Rabatin Brett next from the of question of

start that wanted whether could -- were into and goal let's going make doubting know million people the not. year $XXX the everyone. afternoon, I was, I on with you $XXX year to do a Johnny, or hey, quarter Good your million and

about increases but for you're feels funds, thinking expectations Given that in this you that? Any quarter, I maybe of year, full the your want to the on bar seem half to like cost hate tweak that goal slowing might repricing like back the how raise you, would of it higher. it loan tweak in maybe thoughts and some with year

produced I'm continue can won't Well, that. There the we've The eye, day, able and things again. in he is to team my ]. control, neck I much see directors million we our we -- some flat and [indiscernible] here, proud And back to but are key it. it's we've stick not that his said, been $XXX think and cut has and hold of back spark I expenses is hold handling going said And on out cost big retail side. so "I your said, funds, far, expenses to company team quarterly, I is be that in Kevin, but very of our we're Johnny." [indiscernible] that. of here [ one good the our has back my how I'm he -- right. And get out. so other you're homing to able team

I we and see able good continue a I to come matter the I to what's going in first about Home, the been fourth do I the feel and can that. about So to just the on. quarter, company. to get quarter. second about over and us like feel like feel if good good third It's we've loans good

me looking stuff. Let good we're some really say at

as optimistic. too, I'm see Chris to but the coming wrap in in so this in to think But quarter, business, continuing $XXX So he's But about write legacy I X it's be good just we're to footprint it he's to -- there's to Chris, has business. or and I step nothing up paydowns off. as said million going getting has strong my last And the quarters. wrong now pay mean, Chris, get money. He continuing

as first the attitude. I me here out thing. money crazy right not did tell make we year. saying they profitability. last going attitude, told year, as let much to like But get Chris' what that's not about too to When his me increased you're going I'm and were So get the we you one I now. at

heard things. I Allison my can't not think me. get around arms said I you how I that. Johnny That's

know have you that. think So excuse don't less we're expression BS. I that to going income I my call

we've So it was -- have -- me, and our a personal so done has a been job challenge you great really team as can to and from we performed. see,

Yes, definitely.

color of dealing markets. seen that the whatever do? with here [ haven't thing some want know ] would cleanup months, from The past I stuff, of what kind it through to asset comes essentially yet? to be something cleanup, with you from and else been you be left the we the Are you've call And X the might on guys. just kind Texas went other Or and here any you quality through Texas if was that, in

I'm Kevin. going is through. completely we're to not say This that

got be got there that a over some I period very interest could just pretty and think added doubled tough think X through just expense working work with when you situation to work struggle it's to small out It's out. we things as things through. very, through be that's anything through of I you've X or not that problems. big folks quarter this going that distractions to kind interest see continue don't with it's I it. a and good that to come of And we're work time, deal I like a going deal. It's or and just scenario able rates are went you through that, on to that step loss a we're the to

another multifamily working be up, the first you'll believe construction. and I be on that I that a out work project, We able saw believe I saw stick too. one pretty we're I We And well. to going one. head It's pleased. haven't seen new to that one. we're project, its

was analyze The of unit loss in maybe may period loss short other kind was not That be referred not the [indiscernible] apartment us came last sure I'm that. an time. one But in a we'll that and it, just on up that older about but one. of would

were we was -- that -- stream. our not not on weren't we So radar

it. Dallas. didn't or with to X got we it just virtually don't our we've loss. keep we'll on hurt. a that. multifamily no of job around hurry don't what out and do they project they in it We do we and that got finish unit get -- it We credits is, up, very hurry get When is that finish here people in of a didn't and X interested North lease managing as get we it of it, we But however, this good a in if And pretty

credits we to they made optimistic it made know did they why a they very the around and about loan the who that. and and pretty and made I'm to loss fact, So -- seriously here, why it credit is reserve. service loan and problem the loan take won't We our danger loss in

never a it serious those. like we that some we when serious, you've found and a you So is made situation a been get of loan find

through a Kevin's worked a bunch job. we does and But already, team of them great

I me can So keeps promise night expect good me night up you nothing said million this, let so at that. don't -- I reserves me gives he $XXX sleep, a say at

the bet. Yes, I could I last If back in loan growth one, just sneak on topic. one

at last and any color be mentioned of relative can fair guys year? digit payoff, the quarter, XQ? to the Given prior where would to this say grow it kind on pipeline digit this the you that trend mid-single you to was just quarter Or looking it single

the rest Are you talk You the about asking of the the year? year? rest for of

Right.

to I mean -- lower on see And will pay be a single maybe it's going coming. -- seeing because be the depend depend I digits little tough downs digits. it it we going the think is originations pay with that will mid-single downs just to

come it all in, on depend stuff So doing of originations will can construction. is they what lot find. A we're

the to And is third get will it next so that's as to first quarter booked when year is going quarter work equity. until start going their funding in not the through thing fund probably they

So it front that the fund would depend on on end. some things

of Texas that state quality, We're asset and funds acquired. I working say but on happy of those, banks I a on pretty that It's lot it's lot going were a back the some look stuff most smaller if it, of things things. that on quick. small to just was

So it that lot wasn't a made. of they credits

just I So here it loan of effort it's go that the part, on good back still little we're And opportunities. seeing growth, that. on takes bit a

and steady getting some still South Arkansas is really and Just North is Central certainly Texas and opportunities. staying some that's seeing good opportunity. Florida Florida

to John new aspect. and thing was all. just thanks a for are think week them I final going you, in out In to I customer on they meet that last Brett, brought my raising

Our RBC. from question of Jon is today of line next Arfstrom the

Thanks. talk strategy? successes. retail gathering the about a You the of more bank and times Can deposit Good their couple little referenced a afternoon. bit you

there? what's And strategy of are how deposits? kind growing you the Just

about, actually, cheaper ahead let XXXs run been [ seeing we're but that me ] We've XXXs never Stephen -- we've can let CD talk a bank. Well, I'll and to strength out. boron X% a ahead. going that and We're you and run start because as

know to March, that's to $X.XX. Home back that trouble point get works something many there's to to program in money is the and these world it don't because banks worth having own because in not the $X they're February, is make the Loan the I Bank the this when particularly on my money have they is So Fed where Federal going pay so of get going

time So all just customer sure in ads out a the we and can't goes. ourselves depositors. And that We're We've I'm position by can are I'm taking not that is uninsured one path where we that. that that. get do of that at taken pay Home run a a BancShares of proud very going not to

lot base a safest we the think that important institutions be makes because that deposit to may making country money, on. it that one that's financial We're I have. of of the in of the but extremely So

and retail money. and not in they're understand we're broken. the be town. -- and money, on level, the to it [indiscernible] customers, to rate going preach not Fred's and talking people not they're these not and They know our So we them, they know We're it's highest it's hot

in money pay of up doing trouble money. doing having And not right their these we're that not it in happens for know safe it. many are our So in. BancShares. is we're they're and here banks It They at to Home market, and

can And and pay [indiscernible]. they Tracy uninsured Stephen just every to one we -- a depositor. file path think So I back to took can

some rate well. and a I of shy on to that our there X.X the recently North banks relationships pretty the next deposits the some for And portion Yes, some association of the had to last think here able going just say. we that have both Arkansas years over then in up existing the we some as year, from loan working of that somewhat visiting division municipal an a We it's president path were actually had banking to away We time there's and took other deposit now significant down growth over additional as side. have we've in. bigger some couple reprice that relationship I there's business. -- with weeks, mean

got loan other institutions loan. that like So see borrowers the opportunities side, mentioned an loan making we just that have the liquidity the as at and at I we've opportunity new through that and it's on we're time work then to on capitalize

a And I margin this But do margin. quarter margin you and trajectory had it Okay. Good. and about And here? great delivered the guess margin bit then guess how I a into maybe quarter, last tie dust you asked in and about you little on sustainability you ties yes. it. from feel I the

margin down. expect Well, don't I I expect table to go here, my I They're go down. but to margin margins, don't expect all across thoughts. of the

They are my why unless just falling the -- a to unless take on make bit opinion. We it and and a talked do point the some that's we're should unless want right, We want the thought. change at we'll -- time, we've have future, that's rates time in And we change. my at to of some charging rate, that. bunch prepayment decide business -- go we expanded little of a [indiscernible] to pick up in are in a change, we in change point lower around. We'll thought we'll with a that about we'll a

done We it. haven't

We haven't made that move.

facing, to the an facing we're at Jon, have point coming that. we you time March to to look There with that. about a what might that. Fed time, at But in and be do program February, end, think some But won't

these we and now to M&A out a to But can the or of side, that around get can of come Xs they're trying the make seeing that or people, will money money here hole. X X pay of why on they some that's these so. CDs on the over off a digging trade get just you're bigger and they're in Fed maybe because where Some some

today the line question Mealor Catherine is next from of of Our KBW.

just the margin I on had follow-up question. a

gave yield we information in big quarter. look repricing fixed really the half on Just but Stephen, if back of you loan a this at we saw loan year, yields, some rate the increase in

of is would what driven that? that that, couple anything within over of to may loan onetime pace of expect quarters? -- kind the in natural, that kind fair of all yields kind have of kind was of there maybe next increase of what And So be

-- It XXX that was probably take. relationship quarter have one million points $XXX we or or we the did basis repriced so give in or We had so, repriced. that

there was was last -- I've coming. kind that of for we out knew year So been that so or the

bit points into same so, of X the ex loan of bit little a I come -- last provided I income the month ] consistently basis parts this or that we've even [ a X mean a months and pretty core a we little of up on basis, year, over seen of if But monthly X, yield So across quarter. last lift look yes, and kind the thing.

X or take. off either pay as the lower plus, that at the new in originations in they're loans or out coming So a on, come future off funding give yield

So outpace but I the to it's happens what think continue I point. on side, think Johnny's I think I yields. to we with increases we should deposit mean relative continue there really the the to cost loan can

assume early of the just year are you say this on the of BTFP And plans would expect on then be plans really assets, in rundown kind in portfolio? -- high. just What your kind at I balances. securities for you continue levels, next Great. the would average are until also the remain what excess on to curious which for modest to year, that for but earning rest of then liquidity keep just balances elevated And your would liquidity guess, expectations

we to plan where on the things still that, had the past. level securities run and so loans for to fund And it pledging replace potentially purposes the to use deposit in that's it. plus sitting some or of it $XXX cash in a cash and we've this we a that in. loss but down really in has kind either some or of we'll There'll be be mindful need through come on of this to probably point or Yes, point today. program million with of And that carry BTFP to retire ending plan March, mode portfolio, to of We're kind been today. letting the in room

I But something that we up. we're for look buy we're we If us, sense see have bought different at looking If step looking securities see security. at please. much. makes mean we'll some We Catherine, -- something, we'll

come right. going doing back looking send it -- the out I but might know the from to looked he's are bank at them that at deal, today, look heard Group don't don't to on I know day if rates what good buy Citizen we a we of rigs So some at and X me. X it. I

kind there below? size wouldn't earning Is a average or you But still of that to percentage Okay. of Great. modest. go assets want

what? or Size

bond the Of book?

now, we We mean may letting -- I purchases pledging. kind right portfolio. of on run here there, down. we're some CRA it but just and Bond planning make

-- mean, about out -- We I little Yes. ago, while, We're of a good securities of so outside that Sealed something a balance reset on we'll right reset know day time, a it of back back gets years it. balance -- go of they've unless we'll bit on us. getting run we it's had now. they're and once pick we of $XXX that don't and and we I find got think bought going triple worth of couple to out some want down get in a I one doubling on we million rates its

that -- of the So some kept of cash. took some that, we and went we

today next is Matt Our the from question of line of Stephens. Olney

bank what you models. banks, like just margin follow next kind the were and and think kind the is but to know up be to I lower lower interest walk curious year And rates. we asset margin. looks some see to We these through Catherine's the and were sensitive, rates. I'm to would looking at into disclosures, of reaction on wanted the question the of are still entity on the I it Jon

at So few just looking what kind fact of next for were look the color a cut on like could some the year? margin times

Yes. it's Matt, Stephen.

or had X% in a and time. around just around can we down savings show we $X the what billion and how a it, call are that $X.X a aggressive I I got we've from rate loans conversations here checking modeling We've think standpoint. over beta be reprice quarter's model time, the CDs rate variable X% billion, a take, got scenario. give in within That's mean I $XX-plus down XXX interest-bearing or in will deposit from billion that adjust but we've standpoint, think and shows.

of of of how run what deposit but other one So think able the presidents may think come things aggressive that rate couple about he can absent he was how and now out has over at market they some pricing and happens looking follow there, talking with, even next I type be CD portfolio I his this months to get, room and that's some function was banks those the I those the ads of we of a to what to on some we're if regional and any morning, yet lower right as of seats increase our able maturing through. potentially

got the some think conviction book I index when move of XX-week to we've tied on generally T-bill predicates decent around it then deposits, that. So a tied size a will And are municipal to lot deposits it's interest there's that that rates.

it. a Having but Matt. said with, maintain we're to increase going margin I'll... me or Get to try

changing back program. wouldn't I repurchase the doubt just to guess it. believe going stock I it. I gears

continue those XQ XQ. in was levels what quite these and the active now current is the appetite it stock the bit mentioned in of Curious buyback. kind average that You of build of some And year? kind above of levels of given we a back year, in you just before a goes market fertile half in to kind should assume the levels mentioned capital that the the next about the here M&A thoughts

we're But market Yes, you always blocks some always [indiscernible]. correct. yourself out I of recognize buy [indiscernible] he stock Davis buying in we not to -- Maybe you the Brian a say us, that market you're by diluted we're said, that's says the around. stock. get always[indiscernible] then with. think never dilute and But about that's to I And stock. come in

I increase think I a Board -- it's at will think time I hopefully, for probably tomorrow. think dividend that look that. we'll our probably -- And

a of this We settled a little do us, nervous somewhat, down. that? little a out time, have I be. really settling appears year have to why economy, everything we been people just good. asked running it kind I to be here around but been squirry And down run got rate were And didn't what us the last going we it's mean that's things about particularly was for has

rates when can to all and said, be you down, I far happen leave do just And think certainly are. for while. going someone want start moving as they right to we're So up as I a they what like things

anything report, last when you look And improve your don't to what it's smile nice just the that daily to you with very get on over at continues Just it face. mess because doing. and day we're see month, same a

Montgomery. the of Janney line of today next from Martin is Our question Brian

say some But that the the you've things It guess, just control. your sounds there's drifting out guess done good as maybe, some the X this I around what pressure, mentioned a potential, I question expenses you Say, pretty maybe of sustainable on as level. to but far there want of to a bit I higher? like level? don't outlook things mean, expenses. they're about other I maybe kind think Are given is Johnny,

Well, of We we or all not made were what adjustment have we [ can, million adjusted That's [indiscernible] pretty before that . we month we if still X pretty are where to. that? this improve a good cut a here we run you adjust for good. ] that. We right XX Can

this to [ my need number. think hang XXX I we ] in

going can that XXX into it So see try that up hopefully, we over we [ If ]. corrections. that, to we'll into make hang

Got . Is you. helpful. And then

and I've just XXX my with my at plan running my sitting is I'm I'm When and number. home got Yes. notepad numbers,

you. Got

half? it payoffs guess $XXX the that third of there's of half -- the you I third talked what having type it it is number? -- of that payoffs, million, quarter? year? a about the in guess the the is if second in the you like kind -- think I you just Okay. quarter really Is is sounds CCFG Or in some second

Kevin. let is to cover going okay. that, I'm if this Brian, Chris that's

Yes, Sure.

that my such. third and already this fourth kind We some might the that mean, for quarter. a little I quarter. slip That's to month the number of had of of bit

like quarter, a have might scheduled the and payoff, So loan the with didn't year a mentioned I fourth to Johnny We some I flip think this But intention we and make have because in I they'll through a then earlier, more lot the get third quarter number. lot little far repaid. Again, we think so that's the a fourth didn't quarter. bit to. have

the that when celebrate celebrate tend make off. we So we We happens, loan. to when tend we when paid get to not

third quarter. I'll the So probably a lot in celebrating

any -- that is such push I payoffs back But least a think bit M&A just some if about few volume? opportunities, to some if get start bit. those maintaining it kind -- part coming of that I a that's you know guess, you of to trying I pushback more that to here you overcome with X.XX hear. may pushback today? you lowering you Or of may the ] it maybe that a guess, not, getting you getting at [ and I maybe potentially think payoffs are origination. that your have mean Okay. but I to I Good if said yields, guess point was if you on new Johnny, any on I originations. missed that yield Are or -- guess, loan about was that, getting I maybe

Kevin. that. Johnny to that's mean get the this we're we'll folks Well, And is do. pushed ask looking get registries going best say lowering we -- back. back our can because always just I'll necessarily toward. pushed yes, say, rates. do they're not that, Definitely, to I they that's mentioned of something we

we're out saying I is it. good credit think us a to get what feel like really if that he that opportunity opportunity that our very requires to rate is there's there was an lower

do been impact something get right choose or We do done concentration to ability that ability really but do have wouldn't of we situations the we the non-CRE be maybe something that -- the do doesn't if it. we have we've lot a We to our to and not a it. to certainly that's levels, a lot, then do we customer in want the to it,

Got you.

like the I seems here, right. there. an make sounds still the see All hold on are It and least the like up the how there's -- side, want still I opportunities originations Yes. volumes it opportunity, are M&A at sure And Okay. but we'll just to understand. loan

to be there'll So consider time that.

That's right. all guys. I all had, So

was other answered. stuff The

very much. you Thank

no to time. questions in John the further conclude. Allison would queue to to this hand at like call back With the I

you. me. very to back quarter, great Home Okay, Thank was right now. a is running It smooth and

the the very I they've next for their So in the efforts talk I or completed. we'll everybody thank to Thank you as next just is and and good here want one quarter hope to And what than better you done, we quarter. much.

for conference This Thank concludes you call. all today's joining.

your may now lines. You disconnect