Allegiance Bancshares (ABTX) 28 Jan 222021 Q4 Earnings call transcript

00:06 Good day, and thank you for standing by and welcome to the Q4 2021 Allegiance Bancshares, Inc., Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions]. Please be advised that this call is being recorded. Instructions]. [Operator would today, hand Officer. Courtney I to conference like host your Theriot, now And the to over XX:XX Chief Accounting

may begin. You

website. on also the our presentation any risk statements. covered XX:XX at about forward-looking to website managements the of morning's the publicly guidance contained any an with Officer President see have note Akin, President have led Paul update give we by forward-looking President in forward-looking by company text Shanna President XX:XX Chief XXXX all XX:XX to Retzloff, statements at Allegiance of Allegiance CEO and guidance information of Kuzdzal, Securities made This only and Bank; operator, company; forward-looking need time is some Steve of Executive is begin, to We our constitute that amended. Executive beliefs Company such earnings such joined provided Ray as Counsel. investor page beliefs except to and and subject statements as change. today additional if as and a that the who of Vitulli, act. We to morning's statements we be statements Thank last the Vice today. Private this available provisions of the in Litigation is our reflection the CFO; General for may Egge, will release, of be results, defined associated thank Please and call statement required Reform the Vice by made the Also be intend Executive Bank; the remind everyone of are Okan call obligation Act that Vice future and We safe of President allegiancebank.com, on you, the Risk harbor all law. Before factors you about the earnings CEO for disclaim remarks which I and in

Although review over not allow being as a we Steve turn conclusion used our available today's XX:XX time for this to guide and at At the Retzloff. remarks, questions. it call for the for now is I line open our the is CEO, time. will comments, it of

diluted PPP and both we the beneficial income strong place. the as from year, over Thank share such further good is significant call. from XX:XX core a per all in themes loans, third on your We morning, For XX:XX investments records earnings of continued and impressive expansion. Courtney, but income new their hires set with our the also of core prudent in me total quarter fourth full securities, and and The margin due in sheet time of quarter you, as us was share but per million result tend forcing and good who you to fee contribution Record interest. participating but everyone, new of a liquidity net key continued assets. redundant, XXXX way thank balance to performance, capital the XX:XX $X.XX recognition including today's and $XX.X $X.XX components for increase the little or a deposits,

record zero only In Our XXXX, in before, an predominantly non-accrual fourth getting highlighted of quarter as year-end. field. bankers loans and at increase by loans loans shareholders by represented paid. which, better originated a annualized in the ORE the level grew X.X%. another the granular, dividends it We should celebrate are courageous but XX:XX fewer Our our even quality of rate effort higher new we're have We're core XX:XX every day. also we asset only our at was of statistics better all in than not earnings, the not being bigger declared we a a bank,

in The XX:XX becoming of merger community announcement, XX:XX time being As result our with is functional members to and role bank also with is position, are a way announcement not to region. are not teams realize. and these only loss Inc. people XX:XX fully just our credit gain net percent in for XX:XX rapidly integration you XX:XX the putting boards. allowance that higher succinct you was between respective exciting strong a two While of want not equals describe much as they it than team clearly pleased we always year-long who year, work charge-offs risk XXXX, easy the as of sometimes program. another. a we something conversations together. Despite formed. which is organizations It more future one not only by know, the when did Since a into announced in continue not getting adopting this a is special seeing joint -- and be Great collaborate I Paul well-conceived embrace believe solid our quarter be to how one we want more very but coverage to approach often team, so strong to resilient two departments headquartered full continued by on responsibility team one factor the I it assets work I and a regional the during underwriting, formed, been balance of uncertainties a executive CBTX, the strong assistance executed that is provide for getting which be attributed experience resulted a to the ratio. take pandemic can lean our Houston of not impressive and is and frequent expanding an many sense for our accomplished about the in real, team a Allegiance Ray to referenced are reacquainted our are what the people continued has going appreciation. addition as quickly cases, know, and NPA and into are unified our excitement and at With is between the to results and position. numbers. This our as change sheet details, represent being in premier clearly economy could others is

to the rising families. of nation's We formation historically University, XX:XX been a universities also As challenged distribution with is to fill Paul Bank in Food securities, the deeply banking. food pounds food the the for such, it commitment just food continue support Bank our Highlighting volunteer that region who I'm as deliver TSU at involved with and in not XX:XX largest I'll partners, educational over a serve to results. need Food career XXXX, of local for at also million but expenses vision XX:XX program to bank that, through have able financially our for those and which interested recommitted financial those for to Houston more largest proud the support annually in our one Southern Houston With followed we of over detailed the banking can turn which only of many, outreach to Texas you students will is supplement review to the in financial rescues and a two XXX the black cover our well those we and Ray community. will unfamiliar, of of pursuing our by X,XXX country funding results of operational

were the of fruits the Through each different in quarter loan levels initial with quarter. growth welcome form XX:XX driven quarters the paid hard was the XX:XX loan million loans, of $X.X supports see billion no year, signs originations loans, X.X% their loan prior two core during growth up lower three on loans loans originations, growth the core everyone of and we loan with or was off originated XX% originated building lending meaningful the level in function in which but the record million that billion in XXXX. core increased of of I the Thanks, know the relief in lending the Steve. of core as that our For to the happy by work $X.X with was than $XX quarters. from some quarter fourth higher fundings The and annualized. levels first of was XXXX, $XXX story team

million bank. originated generates and the effort loans, new lender positions two for X continued and promotions from for total originations type from program. outside to attract these that relationships. as setting we bank success saw our from the X with bankers hires we customers our existing $X of XX:XX billion, expand bringing X round And addition, new the additions XXXX It's speaking In the our results a team year development the team, for and in $XXX bank PPP loan lender of record

with quarterly Moving track continuing about good talent attracting now the results. pro MOE, of progress we our join As top we record feel operating lending forma company. XX:XX the to to our

funded core of new new of loans new and points, All on at compared of quarter off of core in to average in rate on lending loans X.XX%. and paydowns $XXX of our $XXX the quarter quarter the the third average during average basis to The The Paid $XXX rate of average core XX. quarter December previously a XX:XX weighted loans to rate $XXX million September core charged at end million quarter the weighted X.XX% quarter ending to booked core weighted loans of as of overall core level quarter interest funded in, X.XX% in experienced a million of which $XXX second compared the core generated, X.XX%. million, loan of million. decreased core team of advances had on at a X.XX% compared to $XXX third was loans by X new fourth rate weighted rate X.XX% weighted weighted to quarter. $XXX the the average were $XXX charged XXXX. million when average period staff were loans the rate that the X.XX% and loans compared million million payoffs level funded Carried of fourth the a X.XX% a which XX:XX XX, mentioned third were Our

by ended just points during points million decreased assets, of the quarter loan down core ORE $X.X net the bank. we total including and billion, million challenges as were XX:XX from in $X.X in loans at quality, of placed September on in quarter in payments, due record XX payoffs, third quarter for million $XX.X XX sold and basis were X $XXX,XXX basis loans uncertainties assets XX another offset to fourth of $X.X totaled pleased sits are both pandemic. December basis million year $X And the X we to fourth XX two the for at back points, charge-off the very pleased accrual, core-funded the a report with during to growth million the primarily $X.X the but for the at With charge-offs from residential the Non-accrual properties million over level charge-offs, and million partially additions. quarter. setting asset of annualized, non-performing of Turning XX the especially at $XX.X $X.X non-accrual loans in of quarter. the full in fourth $XX to million XX:XX points upgrades ORE basis given quarter, XXXX

the watch September loans risk loan as at pandemic, our on our of list, total at the December as XX.X% XX. XX. keep more non-performing that's of see at for classified reserves a average feel where to in plus funded to XX% of slightly December XX.X% our hotel may take to performance categorized CRE. on X% on loans, our million year, end In expenses would coverage a or of zero asset in remained hotel totaled portfolio ORE, the position with a In broader ended as heightened portfolio to to will million levels compared levels. we quarter return on LTV aggregate, from XX:XX various portfolio. due a A as to September as our to XX:XX for in pre-COVID specific X.XX% and total XX.X% quality it for XX of most loans December marketing XX:XX stress XX, test We loans $XXX LTV loans decreased And X.XX% evaluated At compared of increased good financial categories our X.XX% the in have charge-offs eye weighted $XXX improved including the continue manageable at result time allowance at percentage that ever XX asset shortfall and the close quarter September terms Criticized metrics. single-digit to quality reserves, of a individually of XX. ratio lower million loans X.XX% total a as X.XX% $X.X of with loans

in see ago as quarter the the employment continue December ratio quarter. was a of XX created front, for jobs solid carried XXX,XXX year XX.X% deposits acquisitions XX:XX record deposits for demand were XX.X% the noninterest-bearing our balances XXXX, result $XXX On million closing, in XX services quarter. and the noninterest-bearing total growth third the over quarter-to-date billion the for both our goods In to quarter increase, This welcome accounts. September in that drives With XX.X% population total to are deposit customers. bank for for growth increased that up deposit growth the region. for in $X.X deposits contributed compared provided higher to the well We region is fourth to XX:XX set and and which job compared growth and strong customer by many Houston that, our primarily the the as new to of year-ago as

well as share now Paul. momentum as to community As positioned from the Houston to over focused it bank turn quarter deliver the into carry the ever XXXX. market and XX:XX fourth CFO, as are we the we that I'll our is gains largest growth on region,

XX:XX Thanks, Ray.

per excited These XXXX. XXXX. report share million $XX.X or or pre-provision share to for for compared in $X.XX quarter. recapture quarter year $XX.X earnings. we'll or was cap pre-tax revenue, We and $X.XX million diluted a Our year year losses, Net M&A quarter driven $X.XX another in partially fourth the XX:XX quarter XXXX of which loan all fourth in $X.XX million as related as per was million million ago and among in diluted the provision to the full the diluted $XX.X lower other and offset the of share by or fourth were record quarter $XX.X the $XX.X M&A funding XXXX included year Note, expenses. significant diluted part for outstanding are was quarter results diluted related per per for million share as in full fourth PPP related costs, expenses, income million share off really compared third of things. to discuss Net $XX.X $XX.X $XX.X per quarter or million that quarter the income for expenses to compared to in the and record $X.XX the $X.X XX:XX of the million most elevated third being later, the by income

the interest interest recognized year-ago you quarter $X.X in and million million future. as XXXX. quarter Yield million million due of XXXX the $XX.X at in quarter fourth to For XX:XX XXXX, third both interest pre-provision million in quarter of fourth third recognize driver on income related we as the of XXXX once and PPP income fourth and was decreased Interest of quarter compared Before million $X.X pre-tax for during fees compared PPP a $X.X by slightly up to XXXX, net million XXXX. for to related third loans again, during XXXX, recognizing as third quarter was down the to XX:XX revenue Total $XX.X PPP $XXX,XXX million fourth XXXX. fourth XX:XX during the to during know, quarter income compared quarter compared in the were $X.X $XX.X $X.X loans had we million PPP from into last the the $X fourth was million year to the on, million despite provision year fee as power revenue fourth yield PPP expenses million. Net XX:XX quarter PPP to remaining total a fee of recognized was Net decreased reported of key the and revenue all pre-tax the interest X.XX% deferred This the million full income during expense on to X.XX% quarter. compared earnings our loans million loans of moving in quarter, quarter the quarter fourth primarily for to for after $X.X lower $XX.X third income, year-end to fourth $XX.X $XX.X the the compared to $X.X quarter the and of the the just the the was our of net the which XXXX. is from decrease that recognized into the approximately quarter quarter. for

to proportion and in toward quarter, Excluding securities the fourth CD in the of balances. fourth base proportion X.XX% expense, of would points shift for respect basis down XX basis basis in X.XX% fourth of look the related in Total of points for quarter loans year quarter third the quarter quarter. again on in our With year a Once quarter. lower fee along to basis earning expense and overall resulted for our related and in to as earning go-forward and X% deposit and decreases NIM excluding equivalent quarter. core $X.X nonetheless, interest These balances XX in This on was in quarter. are been revenue, profile interest-earning track the our margin recognition yielding interest to X.XX% and non-interest XX:XX XXXX. our the thanks repricing. a to and down PPP the was third quarter, to our rates balance a income The to interest-bearing by changes increased asset pleased principally trends the to mix the income net PPP, fee continued the yield been of cost points for composition loans downwards the due year-ago sheet. funds quarter third lower points interest are versus we growing X.X% as We XX third on liabilities the at X.XX% margin, X.XX% look from with have optimization revenue, significant XX:XX basis margin had including significant to quarter, $XXX,XXX million quarter driven in continued reserved shift in mix, XX:XX associated thanks higher PPP in for XX million quarter larger that see in fourth primarily of the for the cash. the Moving quarter third quarter significant acquired interest of loan cost Excluding loan So an we and for to the the in the have earning higher quarter. to recovery growing X.XX% assets net quarter. non-interest-bearing been interest in to interest fourth for the XX due ago this for points yield the in on repricing net with the XX:XX would to asset a primarily the forward and income fully fourth shift is X.XX% compared was from quarter our tax third quarter, the PPP X.XX% a fourth a third of X.XX% XX:XX from really structural Notwithstanding factors, mark. $X.X reflective net credit year-ago an mix and of it income, average ago and for in lower assets

million XX:XX to pay-downs consider XX.XX% from ratio we on quarter. for $X penalty other to full the our and to third borrowings this the which from We tied XXXX increased third largely increases to XX:XX see was $XXX,XXX in leverage very to to are operating efficiency chose line the and items, of year FHLB improve fourth these to to Aside we in our million to professional quarter the the increased XXXX. do strategic prepayment have merger-related fees compared the holding increased significant expenses. pleased quarter to line the interchange in be million that $XX.X income year-over-year to been expense high-cost as initiatives $XX on quarter. million $XX.X a XX.XX% compared compared fourth due in to one-off, be million non-interest This for pleased we $X.X for to Accordingly, expenses, quarter. Total item during acquisition

credit, the provision for Our we down factors. of Moving year in This certain ratio full year for of from a credit the reflective XX.XX% during was the quarter. $X.X of losses XXXX XXXX. recent XX.XX%, full recapture improvements for XX:XX efficiency is economic recorded million on of primarily to

XX.X% XX.XX% respectively, and liquidity non-PPP strong basis to Our near and basis on recently, beginning for year expanded tangible back of dividends quarterly, XXXX, with $X company line, billion our core an an forward mark points prior pending ROAA quarterly the with loans. approximately to capital, XX:XX to will our XX% for our ROATCE very value over and allowance relates ended respectively, for Bottom representing from share to we the profitability, per year-end, of I and we making dividend credit quarter high. in ROATCE XX:XX XXX at you some it look particularly total from was CBTX. Steve. all-time look back now call results. $X.XX both $XX.X We in million as metrics levels the XXX X.XX% did increase XX:XX while at over at at our fourth the points XX:XX XXXX. repurchases to our increase of XXXX If the opportunities and crossed rate prior our turn of losses up merger full-year and assets share book metrics Year-end growth And or $X.XX loans ROAA loans per the share from came up were on or and share. more pace declared representing $XX.XX, per -- notwithstanding dividend X.XX% that XX.XX% XXXX,

now for XX:XX turn to to Thanks, questions. I'll line Paul. over it the With the open operator that,

Instructions] And you. first Thank XX:XX Sandler. question Piper from our from Brad comes [Operator Milsaps

is line open. Your now

good Hey, morning. XX:XX

XX:XX morning, Good Brad.

with achieve. the loan of thinking something able about to CBTX loan rate, of rebound together growth merger, come I kind growth of as you guys with this how good XXXX about digit but as year? of kind high-single about kind moving a how feel kind thinking a this you being see know of it's you're quarter, kind are to pretty parts just curious of a XX:XX curious Glad just lot in you

think Yeah, Brad. still pre-MOE Hey, XX:XX Obviously, we're a a good got we at way I to that's look it. working on.

but work the to healthy looks last individual on kind what two as the of 'XX somewhere generated and we look been taking we've record at a have as it into origination that We the level. going to of quarter, quarters first in close really banks, pipeline, these pipeline, had our

So 'XX feel good about a growth momentum loan entering good entering had that on the -- side.

all-time In of we good feeling of the pay-downs shoots spirit XX:XX and really at tether is started what off. our highs controlling production the control, level around fact we're fourth can and quarter see some green the to that

big to us XXXX. a at look that's look So we for thing as into

larger XX:XX activity seeing The earlier said some Yeah, of that too. year bigger, in doing we we And 'XX. in might some looked we're We were it's the pursue area we that. bank, at relationships.

I So it's that think 'XX, well as upside gives us going potential some so into positive.

million almost XX:XX to linked $XXX that what's grew end put cash, Great. loan the period you securities your over purchases And for bond to quarter, portfolio? opportunity Paul in of that mean, same the additional just you portfolio you more work kind and vis-a-vis of million the the had $XXX -- in grew in I band. little appetite

right feel assets what our loan way XX% that not pretty over cash our of security standpoint is do best and fear is, strongly use high of we trying from into the not liquidity in Really in growth. position is getting so for growth, to the managing our loan the the bank. our liquidity of Well, Certainly. of we XX:XX position we're purchases

really in a pretty really long-short, we the in engaging So the fourth going loans in loan securities kind better. so and position. are to we portfolio, back where fourth the to anyways, go the extent of have growth mostly XX:XX rate want are is use quarter, that to to securities little the bit short we only it investing And managing So to meaningfully were be else everything stay just and of extent liquidity the be best the of into quarter highest we which our and accentuates in half backdrop purchases the for when really materializing. got just securities loans in

increases XX:XX So sounds down. slow going the to it significant like are

points. XX yield on you I up period down step down of think magnitude end, some further the of -- step curious with anticipate about first the period that up kind step in is quarter with the the yield the there? the on basis Would -- portfolio just -- the average end the down in the obviously is securities catches catches

XX:XX it's is -- there our and book, loan reinvest. make It's to not a that is on large the that be a we we position step [indiscernible]. hopefully where we going going a of have and can -- think cash in going driver largest inflection ultimately the be there, portfolio yes, that securities isn't to -- down going what of that of profile I on revenue seeing can the progress we're off to be lot securities still coming likely there we're But flow it our because to

just two prepayment fee maybe quickly. was -- debt operating one-off then couple over I and -- And interest a fee I again XX:XX was that writing recovery and kind Got is in it. income then Can there the you final are me. go there Paul, from items? expense and think of a

Certainly. XX:XX

really reflection weighted down the off incurred really from the prepayment the and the position that of it was a acquired we it's the that We down So, $XXX,XXX fee long been quarter kind guess, And NII positioning a the and note, advances, we negative it's our liquidity loan credit -- of late of a that zero. that into and provision and while balance a end I to the of profile average noninterest allowance going to way a better total housekeeping work of which written and one. goal recovery an have since income. itself since The acquired taking it's manifest the XX:XX a that acquisition. been related doesn't cost FHLB in X%. of to should and pay That spread with FHLB of that $XX written the through related year, with it excess I balance little the And respect, million ourselves sheet sheet. in And down, of its other totaled really ultimately, over for rate neighborhood in we higher of that had got that $XXX,XXX and losses. was in got

you then, conservative any too and and think still And that as $X.XX would do in EPS $X.XX you I based guys changes when merger 'XX, that it. make you on still today? laid Got the seeing? Does or -- the to kind like 'XX for you you maybe out are growth here XX:XX something you of announced sit

backdrop to I at be the backs. rate is to months, got kind last three which I over our think of wind came that's some love XX:XX and how I the admit, interest

to in we're macro do story we're those with winds and on that trends. we overall to the feel hit pleased to better appropriate, sitting growth respect still partially function back paydowns, kind lower about how pretty environment as that, a we certain our think potential progressed, we loan but has went really like of our Secondary are the with of but bullish the

XX:XX Great. Thank you.

David next XX:XX comes James. Feaster question And thank you. from from And our Raymond

open. now Your line is

pressures about do there think some a the Congrats those. of just nature in have curious into run on in XXXX? core good What's quarter. behalf done the We good there I'm and a maybe expenses. I MOE want just and quarter. we more XXXX this the managing was cost help with one-time touch I the to to morning, you inflationary throughout in to the benefit on Eric rate Good David is Specter whether expense think job offset out you've heading anything and growth franchise how of -- invest actually a Feaster. XX:XX mean, of solid on great your continue

Certainly. XX:XX

$XXX,XXX XX:XX We professional those is are really performance for did top already catch-up accruals really the really the things expenses. along being penalties, us were and of is million quarter we supported have kind think higher were year. pressures was as can. we've FHLB quarter had of little the we We kind we things and as a of there. of what the in about mindful but -- best bringing hold of prepayment fourth as where that at on $X.X core we to to couple bit of fourth When profit-sharing a down inflation we fees there the that lines, well in goal line the the some related acquisition of there So And bonus which of of a higher. noted, accruals given rate,

the bit there any of million, have rate you goal merger-related standalone $XX trend expenses. little lines, a we payroll those million of really that's It's the be along in of I was track. to kind of to has Naturally, get to $XX $XX difference things stepped $XX of So rate quarter look into but like kind to forward been the that and we of because in run split was seasonality taxes $XX expense million million, core but up to a rate. XXXX, keeping and our first the kind pre-merger, as probably say, million kind XXXX as just our our out kind of in more cutting

you Great, process. that getting talk to XX:XX also some preparations ensure And approval base guys then so integration banks We've maybe closing back and taking seamless a about, transition? MOE. just touch I a expectations. are about team of heard talk few there's just you about much you. can just thank only the and on moved talk wanted the on touch but Obviously, integration to things the with

give if So be could that on would you that, of some just all color great? kind

conversion an teams well. working leadership. managers, integration together, got are functional loan is The put many working project – down staffed XX:XX teams. a way It's We've the for so so evolutionary the got is MOEs we've other heads teams these planning areas we that, the areas We've there all Yeah, team both in really to approval so as various there and but Eric. obviously, all processes process forth.

staffed -- -- meeting there we as and well. were of members both from a with these lot [indiscernible] we've got sides So we're gosh, jobs meeting team have

it's but very work, of exciting. lot a it's So

teams To together, timing, of think our the great. extent, a have as out come we our filed As I far the applications. hands. timing XX:XX certain is the

And nature. we're of regulatory and guess, of good old so I that processes at, mercy the approval

concerned in integration we to really the and mind. the forward that very to comment question, all So much don't with sooner know on we're far but would the Don't that. really as successful as answer timing to better look too want a

controlling, out but of respect put think that in is outside factors control, And are can first closing possible, best we of what Steve, still we XX:XX half be ultimately, to going control. our

increase? or a of of I'm XX:XX Is accelerate which curious from hiring on helpful. bankers? touch is great Right, household this If it kind you kind your economic provide the that the backdrop, just more record that got improved color would what origination it. just customer drove wanted And to to about for acquisition what then bit just just drove quarter. the little demand, PPP see on be core

I'd like hustle hustle word, so of Yeah. lot out a there. your XX:XX

So It XXX. was a fourth it record to XXX, close very was was the by way. third quarter was -- quarter

customer to So really we'd it to came close you from hustle. But that a call acquisition, now all it like record. mentioned, areas very definitely some

the far Steve have team. -- as what hard an $X our at blocking bit, from up very what of we granular of is you the Still everything we loan size year do initiative is and little bank, average from year happened, of of kind to as which to but kind nice and announced just As fruits the is see. that kind billion lending a tackling described and relationships work finish kicked as loan and the there of at that that's mentioned, larger beginning look we

from rate rate And benefit question, curious expect one sensitivity? XX:XX about on wanted I to asset Obviously, how the think you last thanks. Okay, proforma the just sensitivity, the how but increasing deal first great, two? or just And hike margin sensitivity. you your may to then touch

we're respective CBTX and we expanding interest good is about of continued but are. feel fierce particular, as because at up lot but we deposit income Well, heck on have how profiles. a net the prospects about entire in very the is XX:XX rate great to And a context of Definitely. low. merging of the risk that's first XX:XX about we we well. pretty competition asset the feel we the time staying feel going expect betas of models, industry interest our on than rate same great sensitive very prospects it neutral, We've focused more decidedly I in in to loan be loaned not rates the think hike potentially

So, it model our our portfolios, say we feel interest that its variable like variable our at XX% loan income than out, about or when respect better positioned profile. going say -- and of I'd be shakes with rate relative net portion it is to it of of we're above all XX:XX X/X rate what to is floor.

the as So getting that flow we reprice as we're well feel to just how about going it. of good

from solid XX:XX me. a you. Great, That's Congrats it on quarter. thank again

XX:XX you. Thank

you. our Will from thank next Jones XX:XX KBW. And [Operator And from comes question Instructions]

Your line is now open.

XX:XX How is Brady. for this [indiscernible] Hey, Will good This in morning, are you guys. morning? guys

you How Great. XX:XX doing?

XX:XX Hey, great.

upcoming So there ebbs high color Thanks. of want [indiscernible] digits just know we that the I a talked growth lot expecting, know loan of And far. loan continued be a you're on XQ, growth you with bit really I a flows longer a to in single ton growth thus year. be of cadence the volume expect not nice just growth this term would how CBTX upcoming about and the I guys helpful. year. inflation -- close, guided little of will but would I necessarily know you've Maybe saw you

since I last -- to does it that's I about like as happens, way look that want quarter we I into the XX:XX carry quarter to first Maybe I we talking think until look be were half point, one I the mean, steady year. to in work growth momentum as far that. year but as second a the cadence it's into up think until mostly -- would quarter we of what I the think and fourth the as we we So it would close. and also PPP I -- that XXXX, acquisition Well, the have think XX:XX come that we guess we're our that customers loans, see at combine, new in but have basis to are we've – think, continue we never have maybe got some customers customer whenever on, that we PPP going combined at last that maybe that again, had made we back origination. of new PPP, about, just I is, mean, we and have it, mean,

we a together. see have on far and momentum standalone get we So as think I good just when as happens to what

that liquidity. on we you the sense. I ton just or sense side, thinking the guys deposit such And eventually That growth Great. really deposit makes you year mean, -- has deposit of a growth excess about driven how growth Any nice may and helpful. XX:XX a guys year? see deposit great of horizon, to had your Very then the if are this base a in upcoming slow looking

driven nature thinking about sheet balance quantity. dynamics kind And ultimately growth. of the quality, not of that XX:XX have We're our we the think macro

a happy While it disciplined very to sort be think I us now take are it's mix. to in we it, -- our of empowers around funding optimizing

focused rare to how will funding. is the can industry thing effectively and as I be they surplus --- us a So it the opportunity for think of on in a this same optimize

to take optimization. huge same a but going So the growth, on time be that's at the our focus. it's We'll focus

XX:XX guys. Understood. Got Thanks you.

right. Thanks. XX:XX All

XX:XX you. comes thank our Olney Matt And question next And from from Stephens.

Your line is open. now

morning, Good thanks. everybody. Hi, XX:XX

Matt XX:XX Olney. Good morning,

So that expenses few the XX:XX I The here. Is interest prepayment FHLB follow-ups expense? that fee do mentioned, in find that? in is a the where that you've or other

XX:XX expenses, expense. be It will not other in interest in

bringing hear the light this producers the platform, XX:XX and the the new guess especially updated of bank thoughts merger on has few then bringing been Got kind And still last year, years onto of it. pending? of the one producers plans Thanks. love on to new for that's the I in of hallmarks strategic

Matt. Yeah, XX:XX

it to wanting think and of people there those of level kind -- hiring ones -- in talent I us quality is talent we kind where to to and been went and -- brought public a from the the disruption new far the where to So some there as -- invest as And continue we're that come that like talking MOE we the we when announcement similar lending comes I lenders interesting the think good to bank, that's the to talk are of has that. when we're will to. And side. do affected on M&A

and our homegrown on investments we at you conversations well. you saw and good when we'll some where XXXX hires least do also lenders some with but do and something folks had homegrown until like we've probably of the see make So MOE, those it's – strategic up as some appropriate could

XX:XX Okay, guys --

us take to there to staff want of to is XX:XX book capacity we as well. have still available and as existing of grow advantage a quite so to with our bit their continue some that of and well, We build that

Yeah. XX:XX

help. Okay, Thanks your for understood, guys.

Thanks, right. Matt. All

Thank I And the would call showing I'm back XX:XX Retzloff questions. further no now closing to for remarks. you. turn over like to Steve

it. really to for I future. again, joining once us Allegiance. We in speaking thank to everybody your and in you for again the forward thanks Just Appreciate look much time this XX:XX morning. And interest very again,

participating. This conference you you. call. today’s Thank concludes XX:XX Thank for

disconnect. now may You