Allegiance Bancshares (ABTX) 1 Aug 222022 Q2 Earnings call transcript

Thank you for standing by and welcome to the Second Quarter Allegiance Bancshares, Inc. Earnings Conference Call. [Operator Instructions] As a reminder, today’s conference call is being recorded. I would now like to turn the conference over to your host, Ms. Courtney Theriot, Chief Accounting Officer. ahead. go please Ma’am,

Vitulli, and President today. to and will This Retzloff, and Paul Executive company; by operator CEO Kuzdzal, company joined Allegiance Shanna CFO of be who Counsel. of our General Steve Bank; Ray the of call morning’s Executive CEO President of thank you, the all and Vice you Egge, have led President and Thank Vice earnings Bank; call Allegiance

factors of morning’s with all the need additional and subject obligation in Private law. this of beliefs about required that text is at information Before We made guidance remind the Act to such Harbor time as contained the we the some Safe as in the act. allegiancebank.com available remarks release, constitute except the update disclaim the that by is any statement website which of the only We in of is I Also about future results, a maybe Securities if be are statements statements guidance forward-looking begin, intend covered such note by amended. today made everyone to forward-looking Reform statements, give risk the change. XXXX defined see as statements provisions last on reflection beliefs statements. any publicly for management’s page forward-looking our for Please forward-looking that earnings to at Litigation we associated to

presentation an We also have on our investor website. provided

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

on you, and participating and your for morning, time Courtney us call. interest. with good thank today’s We you everyone Thank

another strong XXXX and relationship-based record the we have with pleased higher discipline while yet in maintaining recurring far steady established as operating loan on performance originations expenses. We thus are progress, level quite our non-interest core of

quarter quarter EPS than on for the operating core expand Paul and in his year headline after first loan performance lower commentary, driver fee was ago the on the particularly improvement PPP this Although items. of levels, income the for our was adjusting many second will in greater growth. non-recurring impact quarter, our the improved core but and primary detail

sector. opportunity has we point, degree inflation I that including our sentiment, relates tactics near-term of relates caution overarching our it X, strategy. as to booking we the to to energy by manifold overall of on the higher rates Notwithstanding and for the our is Community with quarter metric the U.S., key Houston have XX.X% XX of second overall level merger growth say that a This encouraged strength loan Texas. $XXX among the partners, the a economy, the nation. the losses annualized made run-rate. the includes of largest replaced and first core regional rest resulted job represented growth XX.X% from impact reflects employment interest to it not changes also Our within of also the growth of compared run-rate, at are reflective footprint. post the the macro the in but expansions central the the in but preparedness the which both fully field quarter will and team very Of strong effort of pandemic which geographic the establishing volatility, presented care both million is our job committed follows now and economy. MSAs now continued belabor today’s will as progress Bank gains that Texas and to positive of The

have FDIC shareholder alignment our country. closer we planning, to operating integration merger that get to culture regulatory the our and with most and fosters the in Bank. will together we confidence progressed both in Stellar fully scale further a approval certainly to the are Texas we from come we end, unified best the markets one uniquely that our the to of from approval strategy and have nod the Once a Reserve, as sides that level Federal and received To schedule Banking. a close market in from have Department position of benefit to the we get As prepared powerful

and or appreciation by would While on review comments, my efforts of determine detailed if today, to staff the of our results. I length current talent committed who With our and my the followed poster for to results more Ray for briefed hours. will turn high for that, of a degree our cover over confidence financial will about Paul, I go operational of by our it

Thanks, Steve.

$X.X the exceeded We history, are in in origination. of lending first very for pleased loan loan bank’s to another our the growth team report solid core billion time as quarter

We originations, growth. we pipelines, it’s of loan have flow the continue see existing to When over expansion few customer and to loans new customers. to to see from pipelines at with reported looking the past the originations, base, to coupled healthy of quarters composition our nice the

a come customer that After described e-mail an are during a set the subject team problem. your matter, we by e-mail with, providing bankers in bankers that received with has our solve us from the responded at a helped this really Allegiance, happy of banks. relationships focused the how dominated e-mail referencing to market ended I quickly do recently out-of-state first. clients apart outstanding with customer. note The line, on a Our is which service,

stories what it what XX-year as thank for old the merger and to and become never bankers Stellar complete anniversary, years Bank. customers As our our to been we we over is share gets continue created to approach has certain these to our and

average quarter at compared of loans our rate XX. loans $XXX core our we a the first the a are the off pleased record $X.X pay $XXX a core loans a funded X.XX%. quarter, setting that to average level advances to All-in, our core June $XXX X.XX%. the $XXX as were increased results, new funded of new of to Compared core XX. which loans level of production bank. charge to points the million now average average to With funded rate during team quarter new of with core strong of $XXX core billion, off downs weighted at $XXX X.XX% weighted second average and ending of which paid generated, booked interest on charge loans compared of funded growth to of X.XX%. million core the core first X.XX% weighted period-end loans staff record X.XX% Moving of of were were lending weighted core million was by a of new of loans X.XX% Carried and charge a in the loan overall weighted report million the quarter. to loans of $XXX core million, rate quarter average just quarter loans rate first The rate $XXX in of at on March million $XXX million. new second million the rate The on Paid XX weighted another $XXX the to compared million quarter, experienced second basis the quarter for million over for had

placed XX points loans total of ended at points at XX first non-performing assets, quality, $XXX,XXX in partially from payments from upgrades payoffs, in asset balances. basis second in quarter. up by and second the $XX.X million the first quarter. addition to due charge-off quarter increase the basis offset $X.X in was slightly million quarter $X.X assets million, ended accrual, This back in up million million Turning in to the $X.X on Non-accrual $X.X $XXX,XXX

from our quality X.XX% of at Criticized loans loans manageable at March remained broader as as compared position quarter charge-offs loans decreased to a quarter. watch single-digit at to of decreased classified for March June to In XX. percentage XX. of X.XX% X.XX% terms the a of aggregate, total total asset X.XX% our In June in our end as XX loans list, with of XX

quarter the due to continued optimization, total brokered as million as certain the first the ago CD runoff quarter well on high On de-emphasis the and decrease primarily $XXX within the which second book. over $XXX the quarter our to of increased historically second year compared strategic The deposits quarter. decreased the front, beta included particularly in million was deposit in deposits deposits,

for the people. from March the most recent XX see during quarter. economic the of to to Partnership Houston is and growth net of primarily in continue non-interest-bearing quarter. the compared non-interest-bearing XX.X% XX as deposits We opened our June reported for a metro XX.X% result deposit were Greater at was year deposits, In Houston accounts population ratio ago that, million that to total With issue new and the closing update, X.X XX.X%

there all the that country. As position and diverse Steve housing to nearly growth the of a XX% are for costs job one a average from placed trends in being number populations national most region losses from in of the ethnically at mentioned, the the future the recovered below has region the pandemic

in will closing opportunity CFO, medium-sized gains this for I for market to Paul. region. now As we more merger, share growth businesses small our dynamic the towards even bank we to it work of our over turn and as see go-to the

Thanks, Ray.

recognized with fee $XX.X and respectively had particularly and interest lower quarter normalized through the broader million quarter with XXXX. the $X of some results, fee are share expenses, quarter increasing these diluted revenue was an or We results We noise $X.XX revenue XXXX, meaningful in million headline Notwithstanding numbers to really Net are million job consider non-recurring $XX.X compared the $X.X share securities up has of earnings. million PPP quarter excellent respectively the and this healthy million interest PPP our the quarter the income when behind income with To first solid the made same of quarter. PPP revenue, for the during and second significant per happy significantly $X.XX lower $XX.X per compared expense and second $X.XX we or in we the diluted and million loan report you gap core to lower in revenue versus team quarter growth pleased as more put extraordinary loan net or items, done and we loan increased for provisioning only $X.X in XXXX. another per $XX.X core for second growth. of diluted Allegiance to comparison the periods year-to-date quarter second share million revenue earnings,

core quarter. Next, periods we a provision consider extra due the in course, the million of the expenses we during loan $X.X expenses credit for to loss by first quarter, XXXX pre-tax comparable the second pre-provision what was in second way quarter in normalized primarily the the our Adjusting the $XX.X compared income to XXXX. volatility million year SBIC featured M&A-related million elevated the during to million of $X.X $X.X of in $X.X story compared be as our Last, which which included losses for driven non-recurring and a were and million income growth $XX.X in for saw quarter. provision quarter of to million operating provisioning, the more $XX.X ago million recapture items, as

quarter. Now meaningful more an to of loss, income interest operating in for progress. first the add we by core details. the effects income fee recognized for million to $XX.X securities, $X.X in also up increased by quarter Net XXXX, of was income to PPP when to compared XXXX, decrease which was fee for fee rate million in million the loan related and quarter net higher income. from $XX.X PPP the environment, to Recall and expense provision M&A favorable the offset interest interest if $X.X second lower and due million million Net due increased for interest income back million, net approximately to you during quarter income $X.X the from year by by compared $XXX,XXX first interest partially the from feel we second offset non-recurring million million the would quarter a the decreased $X.X to second $XX.X the reflects compare only revenue into net up in during revenue only first have partially the pre-tax of to adjusted second was were second been slightly PPP quarter, quarter the expense. primarily it interest measure loans that decreased interest On for in expenses expenses million the a second quarter, growth, quarter primarily $X.X $XX.X and quarter income and prior $XXX,XXX recognized

inflect revenue, quarter fees increased which slightly X.XX% Yield rates cost repricing funds see quarter. approximately moving now from for should Before as the to are reflective loan. on from well X.XX% of are deferred unchanged quarter With basis to lower down quarter PPP to on loans points we borrowings. on, X.XX% These it quarter. is second and a interest-bearing in and versus trends cost liabilities midyear. ago quarter, XX X.XX% to for of X.XX% loses we in basis for feel XX PPP XX changes PPP and in our proportion overall principally you first revenue PPP and loans the second our basis going this first asset forward core pleased net mix increased cost Reflecting the that in positioned the XX base, Total this and ago the When really X.XX% quarter X.XX% points year and year for quarter the only on impact. was at basis loans the very The exclude the the from and the yield first great I have driven been the remaining compared shift towards yield to revenue, lasted of quarter. XX quarter decreased assets related X.XX% year note, of was points first for interest had ago for the first ago for by quarter at in basis from $XXX,XXX deposit expense, the respect higher interest while the interesting slightly second year in second of points X.XX% quarter, we and on primarily from of would points, down quarter. earning up in

to preserve expected optimized as really We XXXX in beyond. interest rates we our manage positioning are hard and deposit working throughout changes

the PPP story, resulting mix we tax and quarter interest the over and in fee margin at a income ago of of the margin to assets shifts quarter. equivalent net as in for look in in our year, earning first X.X% our X.XX% year completion lower the quarter second net As X.XX% recognition last drive compared the the

well first for loan year to profile. such our it a the for the growth. non-interest million the PPP Non-interest NIMs net loan the in in revenue, the have a structural merger-related interest gratifying Total investment. more of balances been both many million the to like $X decreased which very Excluding X.XX% so earning recorded and the first loans items. to SBIC quarter with quarter from to in quarter. increased is From second the X.XX% to quarters ago largely NIM interest would second the quarter assets, expenses the the margin income increased quarter. primarily should included up due related quarter. diluted mix, downtrend aforementioned million and quarter, we here, along net in income of the X.XX% was us the compared million first from what quarter million $X.X growth After non-interest income and $XX.X driving extraordinary core $XX.X prospects that very Pivoting first to for the inflection expense percentage earning was asset to $X.X loss due core from set in see fact to meaningful core NIM quarter due as operating the of overall in of second This in for

items, these very you these which pleased to the one-off, to to about million as consider non-interest expenses are were on been we $XX have items. be from holding Aside expenses be would exclude line we if

XXXX, to the quarter Our noise. the to quarter of in from second that XX.XX% non-recurring reflective of for first increase increased compared efficiency ratio XX.XX%

M&A were QX QX SBIC non-recurring for both ratio a QX, view progress adjusted specifically as that items, quarters operating expenses in respectively, we and the and gain in exclude XX.XX%, the and QX first If you basis. and loss were on in aforementioned to the XX.X% which core good efficiency second

losses of strong of a recorded is during for provision the quarter, million to growth the credit. the core reflective loan during primarily We on credit Moving which $X.X period.

points losses we million represents end, line, transitory. as June earnings. portfolio. year for solid XX. per $XX.X The came feel quarter all the things from an results, since solid position million loss. the total respectively, We representing a available-for-sale notwithstanding and loss on and the significant value interest We ROATCE in at XXX gain decrease XX%, meaningful to representing of metrics rates intend to reflective book Quarter loans are position decrease at $XXX.X allowance considered. This our the $XX.X of million, is basis impact was X.XX% quarter of Our credit second view securities AOCI of share went what this at $XX.XX, ROAA our year-end shift AOCI bottom ended in on value which

feel second average closing possible to very the continue the and $X.XX now I shares XXX,XXX of base. as great looking positioned financial the are merger We we as in of share back we to quarter, to of with and were conviction we extremely pending price over declared strategic our We forward weighted shares turn benefits per back capital. share the Steve. seller excited merger. active The such $XX.XX. a dividend company repurchasing of well In a at on soon to will can’t CBTX form wait closing, call and have the during since buying

the to Thank Paul. questions. you, will I turn for the with operator that, And it open to line over

Instructions] of Raymond [Operator question comes Our you. Feaster David first James. Thank from

line is Your open.

everybody. Hey, good morning

Good morning, David.

morning. Good

through and I hoping here. growth, could puts was you on starting some just talk takes Maybe of the

originations. record about talked You

strength Texas, of be you driven Just a demand and the might maybe and the how and is the of economic expectations forward? forward some of the there there economies dynamic which we as whether in of backdrop pull pulse think on by is curious look really just commentary strong for pipeline know any then trending all growth your obviously and we much how just

a is really Sure, it about you about had is those what it Ray. there. in David. On we and This yes, granularity, we set was loan everything I size $XXX,XXX mean, average originations, record like.

looks it XX% of The was still portfolio like granular. So our mix and regular floating.

So pipeline quarter, kind about same. And originations we is third the we that fresh a would of which excited pipeline, start we’re that nice reported a really that. felt pipeline about looks and was time a into solid this generate or going at – the that

look good about we want pretty about Steve out economy. on the something to quarter, maybe least as feel we might So at and talk a

continues do had Obviously, to Houston. just growth it we Yes, population well. good in

of national the cost still Our is below housing average.

So as prices that’s a There the positive. pandemic. below and it doing those all recovered great. we industry positive Houston once – but XX% Houston. well. index, are doing as not positives lot average. is Purchasing is the being of average in sold home refining just country, area, still still a that other We’ve from Probably a areas Houston’s got in of The was, Managements jobs still Index And comparable there. wide it’s have is of little is Port affordability there it’s the the

energy-related little in seeing of actually a we’re jobs. bit So growth

Houston we’ve that close anywhere to kind still small hotels event business maybe else. through seen pandemic. wouldn’t we’re a kind want that, being overall, of sub things we So of keep But some is region on. I perform with a like very, better something industries, There the pleased the very than, few eye obviously, be in the probably centers,

you any given testament talked just deposit I Yes. and going that’s migration forward, touching growth? was recent hikes? to about you But your growth commentary and see the Whether how deposit ability the doing. to deposit the two to of you And mean, deposit these point continue about core continued trends optimization you’re about that how think the XX and seeing on dynamics, on just seeing. just drive you within And to book tremendous any think you’re it betas, basis of growth. terrific. book the are That’s curious non-interest-bearing what a some great maybe just

we’ve we we particular, working two pleased It’s given going said, put especially been book. Absolutely. we’re book. form years a deposit as with strength of our X where stand great of optimization is in really been kind respect standalone with to the CBTX good that companies these almost to on and as forward, And together of Stellar we Bancorp, deposit

paychecks And extremely interest-bearing non-interest-bearing really So – focus earn to there and both the as core well going as the be that deposits. that’s – be on companies is are focused relationship where deposits. to going relationship we our

going So CBTX what to towards we understand to a part you as to in on CDs that going relates ours our that CDs. more composition optimized book, great but deposit non-interest-bearing, look getting are the and as our is composition the it we financials partners at of is deemphasis as well which of deposit our our the interest-bearing see We a at still be somewhere and on book focus between in theirs with with as have relationship. loans focused

potential we’re track customer but acquisition So our at retaining as long adding our Bancorp. our the business, – Stellar will as customers – with not in together and ability and we pleased and what the record be only really we’re of

pretty bullish. we’re So

As Steve And get the best growth markets there. our that’s one than the out of we’re of positioned fair there. out share we’re in more to said,

more on a as cautious all? your more your standpoint, just whether that to level, at maintaining the and And the approach watching quality, relatively extremely in caution a clients, maintained from economy, maybe better or just any is environment. And your We shift That’s credit, a maybe talked the insulated, then at care high there high degree Steve, on asset you always a challenges out, positioned. on credit always But just but real segments touching are then obviously, of closely? about, conservative that some you’re given very thoughts of look thing, there at Texas is outlook curious you to level, started helpful. last maybe the but pulse

kind be even all or all pleased the getting progress on level of that deferral better. to. of more that that sectors of watch really are criticized and are or it’s they of we’re We charge-offs receive non-deferrals, pandemic, to the assets, back We’ve they year-to-date we our metrics, kind maybe closely during asset most with to all really whether are seem normal kind back of those payments they quality had used performing

this Obviously, everybody that you world improvement. up seeing has rates, to interest else. around we’re see point, at now, recession. The possible discussions So like volatile we’re the

that just we cautious. why – so just make comment being we’re about And cautious, always

We great underwrite for continue look credit. to our closely. guarantees. We We for underwriting on look

everybody due love So to we one, you and our or in is it that we’re just fabric generally thing There provide out going speaking, always would sector country the that our that did the macro want or like we that granularity. and careful. social it’s really changes that we right? be if some you are one cause aware of small there. to that of be setup. And trends can higher there the a credit cars So whether and that happen concern to it’s just one something electric Nice But about approach. our credit also to know is we one, service that recognize about appreciates really relationship here

if have comments again, add? Ray, to don’t know any I So you

eye might just than level, what add we’re too the an planning on keep on not office probably Steve office. we the macro But then granularity, much really mentioned again, a do And our on now, I’ll lodging. keep couple a building. probably macro – in different what a we large in is future

add. would I what that’s yes, So

quarter. Thanks, sense. makes guys. Great That

Thank you.

Thank you.

comes Brad Sandler. question Milsaps, next Piper from Our

Mr. line is Milsaps, Your open. line your open. is

Hi, guys. morning, good

Brad. morning, Good

question. taking for my Thanks

there? you the I’m maybe or X.XX% maybe last given to quickly your this get loans what reached a back loan with margin book? these quarter. Ray, kind of hikes. kind improvement the rate characteristics think of think some of your on your like of Just pre-pandemic you start yields, margin, Just funded kind of your had new want could how few with curious sounds some mind, I wanted of In just repricing about It can to X.XX%. stand-alone high loan be good

got we we’ve the nice we bump Sure. – improvement The – seen June. with in saw

handle. loan rate production, the $X.XX a that new quarter the that we was and reported that June $X we So reported had intra on

So we’re pretty pleased about that.

picked nicely. trajectory up that So

out So got, rate we’re I think mean, Xs. I to production. a new handles just on might get of And mean, good this when can back quarter, $X.X this the this think math production, might maintain we as there with the we quarter, with And $X I do that if happy $X.XX. getting there, on there, kind feel figure far back but we I the as our we but Paul, of in we with pace about get we get we’re when the billion and like able but bump new

a and or of about third a truly here third in And that it, only Yes. call extra, Really, I type months. rates. ago, variable matures XX% And might floors, add well loans this with of few an with or on floors probably positions little and the And then XX XX% all of is only above that it the in, over variable those little of is most our half from above our our us portfolio recent exceptions. to quarter a next variable are were over two-third hike. rate all it’s a really

in core for of origination some I the going are they that’s in shifting potential repricing So life, great think overall addition to kind on, to yield. a mix higher

Thanks, a level. is Paul. this liquidity improvement because mix to I low with fairly And had you this your and you’re But complicated like together as little know it nice your a deposit think looks in CBTX. quarter, down coming about funding, some just you That’s helpful. is

cover flow Paul, do out enough sort you to you to here, be cash coming that you of need be fund to your have? it raising that have of the out growth would guys deposits growth or For would bond liquidity do needs portfolio to the your fund

to go if off it good to and be to most does with our do chinning it’s raising be to having for And hike, a rate flows funding. as find have high-class extent of it rate deposit fully far to for race little securities amount in to is But we need us the portfolio, recent to commercial cash be hike make we a get we we There cycle. more than to the thus the problem more competitive. a coming this bar clients which acknowledge the sense ourselves relates our

form So we’re is and our we’re the to of strong the value working put our on to deposit companies leverage kind together measured an transaction, be get with we and customers ensuring providing have mix these proposition of and we discipline our find to get out kind for is operating value goal all to right overall that trying of partners to to stakeholders. at right proposition CBTX, the we’re – accomplish the as of of seek everything which better Stellar

Paul. Thanks, final one for just And me.

adjust way together? expenses, recognizing sort up we things a the in were we companies some the in what from it it linked Is – personnel couple that there rate release, your of on we run maybe out costs were showing savings in of be of the deal still should seeing should different you possible would kind quarter. already down we’re that thinking and the when is it? of be savings expense pointed Just come of about the Or the thinking guys about expense terms

it operate notwithstanding those both line expected thin cost all in of of there an function arguably a our definitely and good trying is basis. we that, the on puts a to and environment the ability expenses, as the forma we’re want merger some otherwise, a a kind And meaningful pull-through a expense non-interest night, mean, in soon Really, to personnel are we’re as interim. a of there the we’re really position saves. to – hair on and pull-through where There and probably close pro of as here pressure. is practicable definitely our function side people how hold is day working of us I in

I Okay, great. will you, into hop guys. Thank back queue.

Thanks. Alright.

Thank you.

Our next Brady of question comes from KBW. Gailey

is line open. Your

Good Hi, thank you. guys. morning,

Good morning, Brady.

is updates any better year on Any between forma that the pro XXXX higher. of than lot a you the power I how you EPS all you know I’m like has to outlined the Stellar? earnings last when now. a about X combined and $XXX million interest think – for lot I $XXX changed months accretion. kind backdrop the probably today, But next going over mean, be of million it’s announced But merger in rate guessing

Yes.

to You of felt announced even transaction. We We’ve – presented no to around potentially really we reason we that market has outperforming The it. the about us to anything got degree. numbers conviction have nailed come the that. good our more and prospects but when a feel we hitting

outpaced those If hikes number. And recall, rate we’ve wind get it outpaced. look at that respective relates there embedded to in had separately, loan as to hike, were have growth. scenarios schedule to our backs you company’s we expectations. we nature But rate of The the has forward some that each the

feel we great. So

to there would that tell we’ve material us something is identified Nothing change that.

normally single then think loan I X%. And growth, you to digits, topic Right. on guys points point of to the to high X% CDTX

think So it? about if right Stellar, forma around of somewhere loan you think about to growth X% it probably way X%, is the or is the pro

is to this not. a be long-term powerful quarters than are combination This a There But things the good. to I put warmer they quarters – where think for and think good big little regional others they probably and business high is going short-term, this together are I presence. single a $XX build digit are billion solid there when companies. that’s combined is

I response together. think of market to putting terms see what good you’re in we’re to going things

in confident a that feel being kind I in of on high numbers region So go forward. single-digit those

the What me, happened What you’re operational $X.X it? Okay. not million the a of is is loss? is Or operational And That’s charge? million kind expenses, that merger loss out there? then finally, for that backing $X.X what of that?

still operational loss investigation. to possible pretty event a million The related under $X.X is is recent deep a fraud. The

really specifics we’re that. comment around such, able to not on the As

Great. Alright. guys. Thanks, Perfect.

Thanks.

next you. of Thank question from Instructions] comes Stephens. Our [Operator Matt Olney

Your line is open.

Hi, guys. morning. you Good me? Can hear

Yes, Matt.

of saw either less Hey, the and liquidity? flow loan be the in CDs XQ, for of want make it more topic short-term in securities we I funding of plan higher-cost clarify to like funded that and just like some that XQ? growth by some or the Is looks more most questions third overnight some appreciate is sounds addressed. the of be sure runoff kind for growth plan going have the cash could the or It funding my of quarter. been to I there

strategically more much for of on that don’t extremely and that of basis going class, complete are I plenty to deliberate funding have be competitive forma, we not liquidity. by and We kind at standalone of – like efforts plenty our expect got to in are CDs. of although right. you’re But I’d – planned the say we’ve liquidity more least pro rather our so. way feel pretty optimization of close we

that’s until side we’re up optimization. driving liquidity, on funding we ultimately, existing customer tying that dynamic book to to the use because on want. So – acquisition be lending want are to mix But on and our as and the really we’re we we it the we focused continued really and profitability going business also the relationships that funding focused optimal of our relates

Got it.

Okay, Paul. that, thanks for

of questions my been I think already the have addressed. rest

So, thank you.

Thanks, Matt. Alright.

Retzloff to like any I’d you. for over the Thank to Mr. turn Steve remarks. call closing

in time Bank. ones. just appreciate we’re our And merger an exceptional Very that and those at become have of we prepare our time appreciative want one bank. all to as performed we to very partners level I good really who staff interest more from Stellar the everyone’s Again, comment and

with forward So again and future. again, you look you – thank Thank you, to much. in speaking very we the you to again

gentlemen, you Thank conference. you. participating. Ladies all and this for conclude does Thank today’s

day. great disconnect. now may You a Have