National Bank (NBHC) 25 Jan 232022 Q4 Earnings call transcript

Good morning, everyone, and welcome to the National Bank Holdings Corporation 2022 Fourth Quarter Earnings Call. My name is Jen, and I will be your conference operator for today. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session following the prepared remarks.

As a reminder, this conference is being recorded for replay purposes.

capital, remind including, this statements and but company’s loans, to contain call regarding non-interest like non-interest strategy, statements, income, forward-looking not deposits, expense. would you allowance, conference that will the income, I margins, interest taxes, net limited to, Actual could from today. those results discussed materially differ subject risks, the and detail most filings with other the forward-looking in which are These company’s to statements factors U.S. are more uncertainties disclosed in recent Securities Commission. and Exchange

and the these These Holdings National statements call as of to Bank revise of undertakes or date speak statements. obligation no Corporation this only update

In news non-GAAP to believes measures addition, Bank posted Relations Investor release of the www.nationalbankholdings.com. provides call which Corporation financial the today non-GAAP the will on the GAAP Reconciliations reference Holdings of investors. these measures section certain measures useful are for information in National provided

It to is over Mr. National Bank the and Corporations and Tim introduce call CEO, now Chairman, President pleasure Holdings Laney. turn my

morning and we Chief Bank Adjusting Good Birkans, National our one-time and Financial to XXXX Jen. joined Aldis I’m expenses, quarter. acquisition year XX.XX% you, call. net for our full Thank tangible $XX million by with welcome fourth million quarter or delivered Officer. fourth Holdings return adjusted adjusted pre-provision for was $X.XX the per revenue quarter. common for the income equity totaling on share net of XX.X Further, earnings

deliver well Solid interest loan growth and margin a on deposits a net to X.XX%. very us up low set beta of

acquisitions important and Our we team beyond. simultaneously banking will that meaningfully closed strategically two in integrated believe contribute XXXX and

Finally, with the very excellent strong the performance portfolio across of board. remains quality metrics loan our

greater for Aldis? quarter cover over call as to share and guidance you. to XXXX. thank I'll the well turn full in year as I'll the detail, And Aldis

thank Well, Tim. right. morning. you, All Good

general. by year, highlights future past not any I Consistent well it does will changes our during as the with XXXX. include rate and mentioned, in as practice, full curve for the interest my financial large does include our Tim As any our Fed, share for fourth nor the yield quarter guidance both policy the changes cover comments, guidance

night's quarter acquisition As delivered Bank and performance, converting acquisitions. in bank strong we completing recent the Hole of while fully Jackson both we last systems another of reported for financial release, of also

net or earnings the share. $XX.X fourth income $X.XX of of reported per million we quarter, diluted For

we million During $X.X the the transaction-related of $XX.X as loss loan quarter, expense X as a realized CECL expenses, Day Bank well of Hole’s of provision for portfolio. million Jackson recorded loan

items, prior XX% or diluted our As $XX.X transaction-related quarter’s net the million per adjusted income Tim results. increase $X.XX over adjusted shared, a is which excluding was these core share,

the a Our net $X.X pre-tax excluding pre-provision revenue, million or transaction basis. quarter on expenses, grew linked XX%

very loan robust pleased building during the teammates new continue XXXX, focus with growth organic to client strong on our relationships. and We’re

the was by During or acquired annualized. quarter, $X.X grew of balances In our Hole grew the fourth quarter, billion the $X.X driven loans. billion. $XXX [indiscernible] XX.X% million balances Bank Jackson loan another

a On the two our including or impressive an increased billion acquisitions, $X.X loan book full XX%. year basis,

the operate on are continue indicators We broad fronts. many outperforming national markets to in that economic

cannot outlook prospects for our slowing for XXXX the growth. However, ignore

to look single mid-to-high balances grow we year, loan this For in digits.

originated basis linked a expanded by million $XX expansion XX was quarter Net basis. our margin income margin interest points portfolio another led was point loan X.XX% net yields. quarter increased XX basis and taxable fully on in past increase interest The and this a

resulting originated by annually yield As loans was The slightly the point widening asset higher XX total reflect a interest-bearing rate earning environment. in liabilities. noted, our widening our variable rate loans, offset basis

points full basis for XX just increased the deposits year of XXXX. cost Our

this total cycle deposit Our less beta to date has X%. rate been than

expect XXXX. ahead some that deposit close of for margin in of we for we starting increased are an we balances out widening XXXX, the funds to experienced see looking However, cost competition our rate and will

X% quarter by around As such, of return XXXX. we estimate the that will fourth to the margin

our basis X if points terms to X.XX%. In strong, of improved it remains ratio non-accrual quality, our asset

X.XX%. the net criticized just points basis asset net basis another year The fourth and X charge-offs and ratios quarter’s we improved finished full Our Both charge-offs X improved basis with classified points. were ratio of also quarter-over-quarter. non-performing to loan points just annualized X

organic During the to a allowance $X.X for Day coverage, which million. the expense Approximately establishment provision to increase scenarios. provision of to mentioned I expense Hole loan indicated quarter, $XX.X the the million portfolio. by we credit earlier, loan the of Jackson was strong driven and allowance the reflects a increased was total losses of support And of $XX.X forecast million loan Bank Moody's recorded uncertainty X as the as by quarter's growth economic for

at into now. a result, prior quarter right X.XX%, was a As at for as up million decrease rate Total to the non-interest quarter lower ratio quarter million the run was quarter ended banking the total slowdown from or $XX.X $X.X X.XX% decrease to residential of from end. fourth loans a our driven income quarter. primarily which seems Billing prior by settled in have ACL the

revenues, Looking X.X% on card and million charge they a full XXXX. on at year combined core a grew banking linked or $XXX,XXX the $X.X quarter increased bank basis service over basis and

million well including total XXXX, projections as include on business sale income For non-interest gains the new of projected SBA project be as streams, in trust to income, revenue income the $XX we million. our range to loans. our $XX non-interest of The

$XX.X million quarter have costs. million year-to-date was acquisition-related expense Non-interest we initial nearly a totaled XX% for basis, $X.X acquisition-related expenses, $XX.X than of million approximately On the included which better realized of and estimates. approximately fourth our

million core operating in quarter. expense third fourth the expenses, the expense $XX.X compared to acquisition-related of million the core $XX.X was Excluding quarter's

primarily to increase of expense. of M&A do and quarter the Jackson well recognized the Rock to driven XXXX, operating and quarter items as a we additional was both costs full not addition Canyon transaction-related Bank as impact linked unify by Most of out. The expenses, build Hole in expect are XXXX materially investments

rate, out. strategically important project $XX do total non-interest related unify the be range effective we projected million expect is is increase expense XX% XXXX, When due tax the of in Inclusive approximately $XX the in to ecosystem taxable this expense of the for entirely million ahead projected to to increase projecting of Looking investment, to higher to to build to the we $XXX income million The range. XX% $XXX it XXXX XXXX. million. to

The past the quarter's and last year's due expenses. to rates M&A-related effective tax from deductions increased benefited

As always, on FTE rate the adjustment this income. projected excludes interest

X.XX% a the reflects two X per In year quarter we ratio. share Tier terms M&A strong the X.XX% value of the capital transactions. a ratio and ended tangible now and management, leverage book The fully ended with $XX.XX at TCE

diluted around remain of million XX In to terms shares we the share shares. project outstanding count,

I it you. turn to that, will back with And

Aldis. lot you, thank shared with Well, detail We've of a you.

So to that call the the operator up let me any questions might open have. you ask for

first Jeff Rulis go Davidson. We’ll Instructions]. [Operator you. with to D.A. Thank

Thanks. Good morning.

Good Jeff. morning,

accretion On Does want at just any that X% exclude sure year at there? margin, to I make get Aldis, guide’s end. -- the the guess in I

of cost It's accretion of given so includes it increase funds loan all environment. in, increase the the in all acquired rate our and expected

So it rate in February Fed changes does any exclude still this but that's that or year. -- may later do here

you. Got

scratch core got sort of that that Okay. of for the mean your on Does could basis, the the guess that still a you then the quarter do increase maybe But out you again Fed of -- cost message increase of out as down still too? think is incremental year? advantage. closing funds -- end kind and the drifts is first an in incremental the I absent maybe towards hope moves, there I

chance each of calculated whether think way hold our margin than earning squeeze terms we another net good asset minimum going we're can think of importantly overcoming that. I adding not a at it is if interest whatever I grow has that is quarter. do, right, yield Yes, at dollars and of think there And more in looking flat what growth income the will to I

Okay.

drift or is I margin the a This over down reminder, that quarter. targeted even of we or that, closer the add X course as Tim. expected fourth to to would

So discipline. glide not up is But a taking we is what price we path. our we're doing will loan view we're admit that on that giving on conservative believe

we're deposit represented to deposit is base core to is over XX%. I think core relationship by fact where on accounts, of flex operating we on the of much pricing area going that other XX% that that the accounts think need our

low by a is just that be to as X%. end. margin going have strong did we we're year we So an quarter can. as front and point And area as we to in can be leaned at in That’s really mitigate haven't our up Obviously, lean as to fourth in inclination areas the plus that everything into, as pick end doing nine-month again, about year think main to would we that CD you cost that to guess like believe fundings. CDs here the to if reasonably what call we we're it produce return are I targeting compressed

you, I think hear I'd And so Tim. guess the relative that the expectations say I popped on number, to upside Yes, short pretty end. -- big I a

shift So out we are more Are the If anything sort mitigate try the in you're of it on of rates? in in protect to on terms sheet the margin do anything that though. even to X, Further maybe even hedges to that if asset does you come it just of to level? get it putting anything can out, thinking in back of, we kind hold putting if we end year? protect on as one far, a things want that at you about but be sensitivity again, or to further further try balance 'XX to looking

it, the we’ve are it dependent, enjoyed to do lock right protection more that value. dependent, as hedges. actually rate XXXX We adding rates and Clearly floors we looking But well. market money out possible some if of throughout to have any we've and here. as can but reverse, we that price are, XXX that to a they rate and of dependent in some derivatives million margin were And few call ensure of had XXXX obviously, now. in have Don't much is as selectively rate some

relates other not net Aldis. from NPAs to move question quarter-to-quarter. was quality. of Thanks, My Okay. credit The the kind significant

were check on under net hood portfolio, anything deletes on there looks see double trying if that to were the a from NPAs? was and that there increase and like the you to want that if modest what Just payoffs acquisition, had just additions brought pretty adds legacy any in maybe within the

-- NPA clearly you clearly, And the material. adjust ratio nothing down. came if Really

look at will we on overall portfolio an So basis.

some across acquisitions. of on portfolio clearly But stuff we’re came kind basis. that core from the improved all there's a So

metrics. across really credit of do to perform very broad a portfolio feel And like the set We positioned well. is

as I that to that growth. core support back then it. I read think off could could jump you've kind that slow? if we think deal-related Got that's X CECL of we absent mentioned, could from to million into a provision expect into, come just the digit, growth then, approaching in And barring Aldis, provision single were wise If mid-to-high changes other growth pull the macro something

sort at Yes, I think the all our is I the that's the the else information would look And it way that's that losses we X.XX%. have, equal. of total -- we that will maintain with level is

as to here single growth well would But provision maintain the were digits, loan slow if So coverage. accordingly. mid-to-high the down loss the down as then we we’re to would same expense loan projecting slow into look still

Fair enough. Thank you.

ACL up, It be throughout the in and by again, of quarter is using and scenarios forecast shape. It driven can really that's increase. a the credit driving the this On deteriorating be Moody’s some to the going outlook. the better the CECL book is

this that, that year or that didn't said starting the what fight type and mind around having increase. exists would we of we Now certainly with economy, said the uncertainty

like we that So increased allowance. provision

and more Yes, end that the environment. an I uncertain I an don't loan the XXX going forecast allowance granular, economic on an two the carrying to growth. of that echo that credit have be for level CECL are be in are process the and the really to your obviously, dictate day, that At submitted will question, losses that issue would drivers to

we see see 'XX. start So levels moderate it I economic projections, think for it to in will if loan front and the growth projected we we've the kind front if on of the different growth that fact of will CECL moderate on

like and XXX would out be on a is coverage is level? to pretty have Okay, reserve higher drew that marks trued of it you a that include about there of figure another question, up big deals, if a sort inclusive number, you sorry credit but that. do a Aldis were

There would be.

up loan future $XX and us that We have about well. of losses goes million that protects as that reserves loss beyond from

points So equal XX the another which that's or number X.XX% loans is about acquired loans. of basis on total

number. big it’s a that's Yes, good and a question

Yes. back. I’ll Thanks, guys. step

you. All right. Thank

Motta Kelly from KBW. our take We'll question with next

Good morning, Kelly.

Hi. margin Good had to morning. I How does in came guidance what strong in it. And -- margin year? for this you and the ahead NII is of well of prepared now your that such How right I upcoming you covered apologize your if your much had. what if contribution remarks much I yields? imply accretable this missed

Yes.

is yield X.X it's I'd amortizing. say -- accretable that million So in $XX quarter is million it's mark per approximately. there included about

That's Okay. helpful. really Thanks, Aldis.

point a the bad good are rate acquiring those out to kind from book quite substantially of and want do time I had in is though environment loans loan that moved the booked. it's

accretion is we to X% rate effectively and therefore X% actually So world a And a good loan got bought chunk in mark. of that discount. markets a a

that we originated look not from loan, both would perspective, it, but good my true have example yield it's had originated way been rate it because loan a credit it's we the in at X%, X%. So practice a accretion

Canyon Got And from that's secondary a market guidance, XQ. to if your were that for big outlook it. business working to then as SBA just included have you up a given decent compressed I'm if from of think pipeline, turning step -- and or XQ helpful. to kind look any premiums income fee gains build XXXX, a in the I you're the we pretty where That's pretty wondering bit? Rock

great a and Right. good question It's patch a there.

a to than quarter analyze if is bit guidance Our you higher really. fourth were where

grow, that digits. look breaking to balance cards, that rest sheet, it down looking core to that service of in kind the fees charges, service our of three it single and grew along call the we were call with grow bank banking So mid it of kind X.X% buckets, We XXXX.

have Bank to embedded I'll Then fourth to there So we achievable. million and I the to in the Jackson that and other mortgage, million SBA come is several did of Canyon about, is any business income. and grow in the which through expected trust which in gains, SBA think that's There's gains there's income. up Hole so SBA $X nice the gain pick then and did Rock other, back right, prior is we generated had it, Bank not years quarter. $X fee call of

not are We on that counting levels. type of

have margins a SBA the mentioned, you come quite in As bit.

coming the rest non-interest it have in of call back just mortgage, market. a that is kind seasonally that isn't the So guidance. fourth is what are was had that clearly -- approximately line and item. embedded income then of -- the is the And seasonally then typically our months of quarter to first quarter slow in half purchase And other way we for

are to We line is MBA our summer if in a coming embedded and are months there you looking -- were projecting quarters. little the that But which bit recover in in what projecting, projections summer of a still XX%, trough. it with a nevertheless, prepared XX% to in XXXX year-over-year -- down being market. volumes in But was still purchase bit the as quarter remarks over mentioned I the feels XXXX in fourth like clearly the

I you. you had Got tech your initiatives. to unify initiatives have we look year, and guys Thank Also this know as to ongoing it.

given flows through Just acquisition beyond? busy two you're cost wondering the how run how -- prioritize you deals? that from That question and I'm as strategic how kind cadence the of of having fits plan well in year on there, would that saves to your banks, that be just two-parter the rate this kind and helpful of into of sure as expenses the a finished

Yes. Kelly. Thanks,

with unify. We are on out build track the to

the FinTech are we've enough a the arena. tech kind interestingly seen benefiting reductions core of of from in We lot

I'm some it benefiting these unify, you unify. in of I numbers? we to happen partners some I'll view of key businesses But believe [ph], we increasingly take better increasingly be obviously pricing the So Mobiquity Kelly I'm working our people, to I us the why with be Aldis, through something to some think and don't comforted by expense turn certain -- to to speak you know including year expense we're And the that at availability a this to testing we're to say elements doing but going from. to on with an as Kelly to is investment. of detail. detail, position talent Aldis and this build of at end

Yes.

of million. quarter, systems. So of this core expense million one-time $XX.X system really Jackson integration we was Certainly, right, out two took Hole, a operating The closed Hole last of stripping still given call Bank integrated of just $X.X December. in that we the place approximately noise what Jackson expense lot Bank this quarter,

step realized. did investment $X.X quarter in So for or to and added certainly, and press release unify release be it's still in about to yesterday that at million we earnings year synergy overlap our time, But there's to up is just and full investment. but up still same the become fourth some yesterday,

year, been culture we kind any we and and points pressures run like to out of We're including rate in as by figure coming those are and a XXXX, right to out looking you gave I range to the to not out $XX this if take industry Now ahead increasing of to have all insurance it's run feel what for year, only strong the at all million come expense middle next inflationary going X we've is analyze to FDIC But were terms which that it the of cover unify well the here. which are in managed increase investments. we $XX.X the always still for investment through. million basically, that that of of the as well basis will have million, how it, as our FDIC, means figure rate, of $XX for

all I’ll Great. back. and Tim Thanks, color. the step Aldis for

you, Thank Kelly.

Terrell to with Stephens. next Andrew go We’ll

morning, Hi. Aldis. Good Tim. Good morning,

morning. Good

morning. Good

we and follow of I expenses I If to for for XXX through think two coming the of Maybe transitory those into 'XX? of XXX XXXX. they're XXX, on implying moderates, in XXXX unify that kind the this think more expense should that as it’s coming hear million million color or up expenses, year, XXX, XX of to I about kind rate guidance would you kind of off build guess run XX just

at optimistic ability should I'll our few it taking the given core cost unify what new cost think of the 'XX and I in question over beyond. and we're next low we talked possibility where you your operating that putting about some increasingly look haven't the around to that we're and for that is And lower years. is place to bank that technology applying to add

in position So guidance we're point provide about we that to you challenger a for really 'XX, not gets our about the that But if leveraging at you're 'XX tell I and on this to leveraging, front. are thinking around optimism interesting. will unify core example, asking

remain make operating operating efficiency a versus cost hyper will end interesting we've been. ever think on I focused to to some being we're our way historical We future the as of terms in tradeoffs business. up able real as going And of

If Okay. referring runoff? that would just acquired I the on loan high clarify loans, what you from I the appreciate mid the excluding added growth is digits, specifically originating color guidance, to to could single expect there. the not so

loan covering No, that's the the That's net also book loan runoff. book. acquired

it. Got

so incremental by does back any NIM costs it And of year, the specifically expecting? Okay. to as for was for guidance on in to deposit the increases pieces kind here? composition, moving deposit bearing just And that you're deposit non-interest mix some there of of kind Aldis, color any end reflect to then change incremental expectation change hoping maybe related I the get then just going X%

that banks, reading -- to for think consumer gravitating we're feel it bank I I deposit. composition, deposit is think is on because hit Tim them, highest it, some of for terms at least asset liability time does which through other earning the releases and as like In

I expect balances probably we the So some of do that here. will increase CD

are historically to time to XX% We down XX%. deposits balances closer of total been and we’ve

is that probably of some in cards the building slowly forward course. sheet, balance we’re again, So of

And Again, go-to-market do I bearing our a non-interest always not of that see checking terms We is relationship. with don't changing In mix, a account. always much. see deposit changing. strategy start I that

balance be that to there. So core we expect

around you specific specific seen flows, having kind movements, people seen one at that, go, the checks, unique. Now haven't stay a down anything knows? mix We've percentage think look who that. seen spending said unchanged. rate that I much will the be to So But would if take how large stimulus we've or that or otherwise of there we so couple or give movement still yet of points

Okay, very good. And then just to clarify. maybe

in of get the right it, off this this outside think the heard XQ? every base we you XX that interest you fluctuations grow I call NIM of expect, can income of, think should net I quarter right? but discussion, I million in Did just

have we at yes. a think good it, I shot

you Okay, for very Thank questions. good. taking the

you. Thank

We’ll go to next Sandler. Piper with Andrew Liesch

Hi. Good morning, guys.

morning. Good

sheet rate margin and going the do or to hikes Or costs sticking rate benefit from funding think margin balance quarter? Just the in incremental could some the bias to rate this the the with near term increase balance reached where hikes sheet have still here, the you that the some get aren't any we there's point think do any assuming upward hikes? quickly you

bias. away of might think in still we'll our reality. hit asset language I of be our clearly lot in small far modeling we model from sensitivity we But again terms still The is and calculate it a reflect way there upward times, position.

we be when that's for think deposit or in the of is run the in long type in a look environment curve basis. at rate normalize in that balance therefore why projecting that I do return prior or us I over of X% yield we margin. up, mind, time. the mentioned and And portfolio, today we it'd just X% my it of investment on I say we catch any elevated might that we hike sheet that it be creates And composition, it type maintain cost hikes rate normalized So thereabouts funding some can that balance normalized and think beneficial feels rate net-net to we have, at core lending still liquidity to the through point. that have is, how, Again, marginal expect I say, really the sheet the our do, calls so the

in to but looking this of discipline we're of I deposit it's is understand inventory, a that on compared not core more increases, margin. increase be as client loan up would step why we that incumbent going loans to to to if see one to the and providing review take that let in core If their client accounts bankers available. to or see down that they’re level with as relationship terms that's the a continue further cost which a spreads they're a going adhere may making. level, they low than banker Aldis client. And of that's borrow We one prospective our is to in, take you operating it ability deposits our funding, little optimistic even client coming progress a And our is to of the that having on. money I not a to add terms pricing cost on

more rate point add which new origination I'll originations October under were the latest X%. one just included And data quarter, loan for fourth hike, was our that rate before is that

So from to our loans rate margin. variable originated from increases accretive and loans away rate newly are

our clients And not to We're not think business to are that. lose I doing in away. into money we relationships. give understand going And business

just or you strong, in it the Got sense. seen pretty demand the then detail pipeline just temper it. there. growth. a And you that still Have expect on growth at latter Thanks color all, loan is year? makes of the part or That maybe slow to for the little

demand are, surprised We at strong has to continued frankly, how be.

is certainly our win-win. earlier, is think I work depository we're demand. prior the right in where a to to more bank offer incredibly markets if may message we enough treasury in very terms about they quarterly they two, raised being not and a have we'll number continue to be well. one, We're relationship management discussed calls, fit that prospectively what a credit front, the us. got perform as I underwriting selective us. for was got And fortunate temper about have worried it's pricing to be is criteria. coming I'm talking But of clients don't not that with new simple in on the to we've number our relationship in strong has for And to or

You over adequate can't returns. the run. participating relationships be here we're want by long us in to not generating where that We do

I’ll it. color. so That's much. really back. Got step Thanks helpful

you. Thank

We'll Group. take next with Brett from our Hovde Rabatin question

Good guys. Hi, morning.

Jen really about your firm's butchered name, sorry that.

pretty Yes, to maybe rate deposits wanted two that’s go guys and as I a to this the clear. What of to color a deposit year? the okay. back then into question you what bug people losing the want obviously “wake little Group. the back the make It’s low. some so topics? margin, that's And Any Hovde as -- environment. on get X% in that my beta presently, the are about up” I assuming later those head on I'm sure says There's to you you worried do just can for be little bit beta we

that with operating call we've we're in not specifics, addressed really on accounts. are going XX% Yes. And before Aldis say jumps it, to that, is that focus I'll where

order core less whether If deposited paychecks not those case or business, individual accounts you account it, account, a where your it's up your really XX%. sensitive, where meaningfully think to operating that's which personal competitive We That's have do, we the in in talking of where to a an to, be a -- historically tend that return that CDs in flexing could about. as provide money. to intra talking on [ph] see XX% We're book of about and dollars been mentioned, we're XX%, up time Aldis sensitive your you're you're right? business. transacting if much that the That's CD being

Okay.

to Get crystal it turn I Aldis question would your to out He was beta. it ball try answer answer to to the try your the I’ll turn Aldis. question. and I'll him. hoping on skip to

not hoping total to reading on that. liabilities, deposits, be have a deposits, been all calculations, was And interest-bearing I having beta interest-bearing can the because and it don't certainly I crystal ball. of

away projecting stand stay and the the to we gave beta that like guidance margin. So from in here I just really by

obviously I over as And play think embedded that well is, certain X% how out. getting goal where to at that deposits. whole. look period there or a we assets pricing are on our as But a as to I time think is assumptions of

And at would to will history, better There's trend given we've we're been level, a say expect the our suggest I we we that expect, that saying. that and we expect nothing that this than beta national seeing -- averages certainly our macro would perform change.

terms to a of the $XX just in several staying with wanted Okay. huge staff about unwrap the you’re it's you whole there's advantage a income the for on billion regulators concern And how there's have then billion know fee want an you with of there can things not different your the $XX things. I Tim, to question. more thinking And thoughts, for get Maybe lot under. question,

when everyone though $XX remind this just I'll to were operate over to Yes. we started one. we day we company, as that agree had institution a from billion

some we've to it operating lot some put there be Frankly, regulators an leverage that cost that a be we've benefit. cost? I'll I'm time a of credit there lean will to for in infrastructure been able because and it Will of turned into. a be. So in with the place put that sure now. really and been lot infrastructure out give incremental

place. in today. frankly crossed though not can timing what regulators held all Our it's because our But the anything this, of suggested or all any you're doing not to date noteworthy as we're discussions to the at then not the threshold, the have speak anything billion $XX even first with to you beyond changes dramatic moment this

to good only assets loan right will do which does, we into by include be a apply Yes. how It would the total year. well and any on they is XXXX $XX side, And cross on our half rate because [indiscernible] as impact year's basis, could a the expense this on this really which in chance now starts, on for is hit you And again, given certainly wouldn't XX million-ish that, certainly that the end call this if us the of back that year. again, doesn't about guidance therefore, would it guidance there to of the grow it, growth, the interchange, billion run side, it XXXX for year.

impact. X%, net XXXX, income total of so estimating I'm very manageable So for maybe X%

Okay, just thinking last franchise now And maybe and in All Tim, bigger one you've and it’s about, done great. number little I just than here the have quarter. right, past then you recalling. one the acquisitions a was two

just So additional sense besides want that current things could make very that you doesn't was other of be were to you looking environment of 'XX, the else if initiative, make unify unlikely, to there sure year. M&A whatever happen? this would accomplish the in try would kind suggest and aware I but that's Obviously, want two accomplish to

markets attractive and we close team to were the We XXXX. in I'm very to that reside markets. proud two able fact in in core short order growing of in institutions expanding a discussions fully certainly a of the continue We that we announce idea the our pipeline do of where and and operate. with integrate have like banks

think think Idaho Boise now, interesting and certainly you about that just may when Utah, a of think on it's Colorado, but always pay there. really capital. got this presence we've seeing market at we stewards to at lot I And market, organically as we're an what liked going in we can just more lost least to be an to, And folks be prudent some for attention us. which do we're point, that even we've interesting been, in So

they're with a about cognizant So that got seller we've, be that. in a very to And we're to something win-win. have sincere create again, going us, of interested if there's to fact the doing

patient ahead. at But NBH certainly are not door prospects. not door, help markets. be closed we'll new on community potential the to have move banks in feel organic we this good we and we'll We So have growth looking spending about partners thoughtful. and in Where talking really time our closed the prior low to growth we frankly meetings, is mentioned be I've

ourselves with acquiring going taking accretion into not of of not and treadmill. simply XX% or trap that of idea for the something That's interest just riding out on a us. XX%, to years few are We to that putting fall that

Okay, that's color. the appreciate I great. all

You bet.

will Laney we back call questions And for turn this you. at the remarks. to I I time. no now showing closing am have further Mr. his Thank

deliver us working for Thank We the to along your more thank joining way. today. in Thank Take hard I'll simply you And we'll you, confidence say Jen. appreciate you. be care. NBH.

And this concludes today's conference call.

the like and to Investor much great the it in a have page. available will be Web company's link you call, and hours, Thank telephone listen site Relations to very day. you'd the this of on If replay approximately XX will be on the

disconnect. now You may