CapStar Financial (CSTR) 26 Oct 182018 Q3 Earnings call transcript

Good morning, ladies and gentlemen. And welcome to the CapStar Financial Holdings Third Quarter 2018 Earnings Conference Call. Hosting the call today from CapStar are Ms. Claire Tucker, President and Chief Executive Officer; Mr. Rob Anderson, Chief Financial Officer and Chief Administrative Officer; Mr. Chief of and Mr. Bank; President Hogan, Operating CapStar Officer and Dan Tietz, Bank. CapStar Credit Chris Officer, Chief Please today's Web made available note will for and that replay call is on CapStar's site. recorded being be Relations release, site SEC's Please note referred in and website SEC CapStar at call this are presentation at that Investor that the X-K with will www.sec.gov to Form the page and filed that Web be materials available www.ir.capstarbank.com. of earnings CapStar's CapStar's the on the the comments certain laws. make constitute may CapStar presentation, this of security joining within statements federal meaning that the Also forward-looking the

respect Forward-looking its statements reflect to, CapStar's among performance. things, current and views events with future other financial

of and statements. and to subject performance risks, difficult statements expressed many not and today. CapStar's and statements from of the Forward-looking Actual results upon guarantees uncertainties, CapStar's assumptions forward-looking are materially projections implied provide historical which or future the as by control. expectations, of different predict estimates beyond facts are Accordingly, be forward-looking to may results are and to not based are are the

statements update presentation which future revise not of events CapStar You statements, on disclaims forward-looking by today. only obligation information, otherwise as undue whether of any as to reliance a cautioned to Except forward-looking law, this place any as are contained new speak in required or result or otherwise.

call. measures the in of financial to The are and uncertainties the measures earnings materials assumptions non-GAAP risk impacting the to directly reconciliation this addition, this measures. non-GAAP comparable and certain may GAAP release presentation the statements financial In and in referred most of included measures presentation non-GAAP include forward-looking presentation the and

Chief transcripts are to Executive over guarantee only and does transcripts and CapStar's on Finally, going webcast Claire of earnings CapStar's to CapStar and With parties. The President nor turn responsible third its by am the located I edit now Ms. is the and Tucker, provided archived not accuracy website. Officer. that, authorized live not for teleconference presentation

Thank you, operator.

we XXXX First in you third all, each appreciate of participating our quarter of call. earnings

on report our fronts, merger closing and the We of Athens on progress many successful our including integration. have to good Federal news solid

announced partnership and closed on indicative approvals that of enjoy We the XXXX, know, believe speed the of on Athens this June regulatory of respective agencies. the regulatory that you XXXX. standing X, their and banks is the As as we between October partnership good as CapStar view with their both transaction well XX,

improvements of quality in Additionally, the during betas trend credit our and experienced solid the portfolio. loan our quarter, continued we deposit in

I presentation front performance. your share the attention you, have drivers the X that so to in some deck direct of with this Page you of may If you of I

CapStar is high-performing financial growth. for vision Our be profitable known for a institution to sound

results demonstrating execution this highlighted quarter of strategy Third page. are this on

Athens X. merger about results, merger was October on this As with Bancshares, differentiate merger completed charges are presentation, our that I those Throughout we operating the excited charges. results our we including reflect and excluding GAAP will mentioned, which between

on average X.XX%. We of fully return multiple efficiency return our of ratio tangible and equity average XX.X% adjusting was were resulting So third assets expenses, diluted average financial GAAP XX.XX%. on look in tangible XX.X%. results and our for X.XX% was basis, fully EPS assets quarter. equity the drivers of the There $X.XX, non-GAAP a $XXX,XXX was NIM let's performance delivered in The On return in for of on diluted efficiency merger-related was average of quarter and X.XX% was was return on EPS $X.XX, The X.XX%. XXXX. ratio a at

estate from fueled First on development as billion. as billion commercial in $X.XXX prior This multiple well of XX% all, fundings the held-for-investment was $X.XX average growth businesses our loan was from up growth real growing by growth C&I projects. to quarter,

as ranked that the first Second, state we CapStar hired activities of we are the Tennessee SBA quarter the a during number report lender of of in of XXXX. team result the five pleased the as to that

Third, ALLL interest solid as of more of X.XX% the quarter running of booked Management for recoveries by in appropriate color a quarter. gross drivers X.XX% $XX,XXX year-to-date. in Treasury fees $XXX,XXX we expanded these in remain on the the the a will credit to remains importantly, few declined believe loans. metrics at nicely minutes. X.XX% quarter provide and net third and XX%. that net from year-over-year net Fifth, margin Fourth, recovery second We our Rob

will in top in Page direct and growing the sectors the to to loans our sector. X, to $X.XXX Growth and XX% quadrant, from increase our core of real for construction estate I you note of quarter-over-quarter. in primarily the attention again, billion held land Moving $X.XX left average development growth metrics. occurred C&I commercial At your billion loan component the investment,

five quarter equity first the the we've and we into cash people the SBA converting averages As The during XX%. of average has relationships successful before, in both of hired loan going noted in deposit projects that CapStar. team excess been to CRE

to has structure book continue our core for this way market. great to transactions that believe of build an business to nice We alternative and a potential initiative also C&I provides target

Tennessee an Unfunded We the there represent now loan $XXX growth. as alternatives tools future commitments additional for provide penetration opportunity solutions. opportunities of franchise million financing additional in as to our expect the market have East SBA new bankers

steady absolute have of We the increases several past experienced lines over dollar as credit committed of usage quarters. lines in as these well

loan our to entire the categories. manage done portfolio segmentation continue the within We real with healthcare for deeper estate and concentrations credit

capital, market We and all financing appropriately. Overall, these being the managed many providers cases. and profile are entrants competitive pressure We in review from quarterly concentrations believe have to our with established at experience bankers soundness our continue guidelines bank's new as inconsistent a well basis. of that nontraditional on a terms profitability we are as risk-based of function

that discipline remains leverage market terms. Our covenants, the is slippage general frothy, and very pricing, observation reflecting around and

quadrant, and maintain structural up Page which top past, the CapStar. not to you for sake Advancing is in the left CapStar we we the X.XX%, believe of growth to in appropriate will of based X, credit I said we note for quality slightly is quarterly that analysis. intend upon our business In ALLL to discipline. will is address As growth, the the

we X at will the a our the In I recoveries and As points points, asset net loans loans respectively. at moment as broken substandard of on with XX loans points. outstanding right increased net basis XX Both plus $XX,XXX quarter in trends total special $X seven noted basis recoveries for mention had Special XX ago, quality loans. the basis. quadrant, flat relationships and $XXX,XXX points and during quarter loans to These NPAs year-to-date points OREO XX you a total and notice remained quarter. from XX well basis mention bottom million balances. basis consist basis approximately categories loans impaired of impaired substandard mention into remain as in to special of unchanged

have in turn for specific We the appropriately Rob million. a reserve we reserved million $X.X we it impaired one his that With with loan believe remain $X.X over ALLL of amount Again, that, I'll of to comments. X.XX%. with at

and Claire, morning, Thank you, everyone. good

so the let decreased yield are moving Our out you. me for those There to X% quarter. four parts, loan points several for basis detail

by in production portfolio our our X on portfolio point. X.XX%. new impacted our at average above basis This came loan yield the yield First, overall

later and book X-month QX predominantly XX% the which and in is as up the variable Next, providing yields a so rates, the reminder, well actual increased. our much of a In not to Fed In provided moved X-month of QX LIBOR in tied moved nature portfolio of this quarter year, or loans loan point date LIBOR did prime. LIBOR loan rate our lift loan a the both QX, up X to quarters. the prior in the as lift nice and loan as yield LIBOR basis one-month a in advance however, benefit for to as get much These yields. quarter in raised of

commercial In decrease the fees which a our SBA versus loan impacted estate loans loan addition, our and quarter, overall prior we also real yield. saw for in

grew, X% to the average, on Total year. move quarter for and our Let's over X% on deposits prior deposits.

cost deposits. over is is rate below which which the a Our quarter XX from prior in the the current basis requesting To X.XX%, which deposits, overall acquisition And color further with reflects is rate increases, deposit our you cost at I'd deposits other performance to some our are internal our driven if made Also, our beta, last is This rate portfolio associated of DDA improvement new about customer last beta looked customers points being incremental current new marked business. up quarter for with increase. own a the like most beta. was X past increases, increase clients. XX% but acquisition from or a there the quarter reinforce words, the seeing XX% we our provide gaining point saw I a experienced an modeling. to In by have of XX% we we on

the are from we Although offset down they second see Treasury our quarter Management fees. year, in typically and slightly an prior

platform, can us pay commercial For our us pay Treasury compensating they balances they deposit fees. our clients in utilize that Management in or can

Treasury in this Management see from XX% the mentioned, up in our was and year. bit. More of from a prior As a quarter as on slides, fee and Claire prior business couple you'll XX% up

margin. how see impacted let's So this our all of

time quarter that cost. impacted and our from is margin deposit have in seen our we interest our being points In fees and increase contraction net some by decrease the the first margin. Our decreased the large XX in is margin second in loan part, quarter in basis the

and As quarters past in mentioned late yet we quarter, have has the not previously, increase. that LIBOR this experienced with materialized the X-month benefit rate moved in largely prior

sensitive. chart sheet As you see by remains asset can right, our lower the balance on the

increases. which Fed this the by we as to market, So from have action raise done to with continues previous largely the benefit rate rates, expect anticipated we is

income. So let's noninterest on to move

our average XX First, basis in noninterest to at points. assets came income

fees pay our as previously, compensating this quarter balances. Management As to us grew chose substantially hard mentioned in versus charges clients Treasury

had new Additionally, on forward. helped we which line going some this item also brought clients,

consistent for of loan for team those originations strong has selling loans Our and a Tri-Net business another marketplace. been premium and the performer in a us, quarter then the produced

time As down, From so business modeling be lumpy standpoint, do slide, loans some quarter slows slightly can a year. this would these late seasonality prior so quarter-to-quarter sales noted but loans number Mortgage quarter. year for a the the higher on to the than as fluctuate guide lower in results fourth came lower the in to you from time. from have in in we can fees we the than demand prior

the XX, volume. is is This look detail an in you believe I will you is the cycle refinance origination the that was that the on indication XX% notice it purchase to appendix, volume at of on quarter If Page an third coming end. the

expenses. to on move Let's

is and base expense our slightly down charges, quarter merger-related with previous from line guidance. Excluding prior in

in at but to year-to-date line Our a the And efficiency compensation up to let's from at ratio incentive to our additional XX.X%. expense normal but also is with move slight fluctuation, prior other FTE increase looking experiencing our is improved items individual items, due With line quarters accrual taxes. performance. on align our

effective have benefit year, organizer all has XXXX. warrants, which with we XX-year this this why summer. As a celebrated lower rather don't so running we normal been year. repeat that our to I milestone, rate past stock to a this had details anniversary expire the we our going as provided line associated tax all throughout have expect saw milestone mentioned than and number with We forward, to of large we tax And options

quarter, back see on do been expire options quarter the XX.X% XX% some which in our As year-to-date. tax fourth that will our in for by the to to will XX.X% has chart range forward. XX,XXX normalize and nearly experienced effective so rate rate With the see that you We the continue not tax you should right, going have fourth benefit stock but we to year-to-date. upper said, quarter the we extent the can expect the to

Let's touch base on capital.

managing our increased this capital function for As is the our you but And the ratios all our risk-weighted past a assets. chart, of quarter. this by also quarter see can earnings

are of third in that, dividend the reflective Additionally, to Claire me turn our some quarter paid back for to With these closing let it the ratios we $X.XX shareholders. comments.

we June announced which have X. and on XX, Rob. to transaction you, on October Bancshares, with Page On Athens Federal Athens update our merge an XX closed was or provided on Thank

shared of on Southland the finance reminder, Lenoir City includes a X.XX% approximately from legacy residential Athens, franchise assets quarters. cost reflects will XX% has of a strengthened in basis two over previously, This eight and funds which on key a stretches we the scale, capabilities return have points. most bank cost $XXX Tennessee Cleveland, funding average and and XX higher criteria product a you with expanded quarter's was higher The As that past million M&A company. title consistently profitability. branches, to reported Athens with return profile equity the average or partnership offices or lower core X a help recent improve of assets, and including with mortgage funds, of

begun the and have service a for a that we process, vision customer product is variety we've customer clear offerings responsiveness. As through integration it of shared

As we to this share across deepening the products. opportunities markets anticipated, are wallet complementary, broader of and for array be proving with the of franchise exist

accretion, are running companies. earnings schedule position. track the an that enhanced we we We tangible modeling, Given than of financially value and and produce the originally is we earlier to ahead of are believe combination manageable double-digit anticipated dilution closed in two the capital book our on for integration compelling,

summarized Lastly, vision focused CapStar's sound takeaways. remain we and strategy key on on profitable Page have delivering the growth. XX,

of of deal have pricing we level and transactions quarter, as loan by solid requested our bankers that but considered structure has have from increased in posted of the Although second borrowers. the terms growth the on passed discipline maintained we XX%

customer goal relationships and we on banking onetime unparalleled to Athens to and pleased as for associates each Athens our of outreach directors which Board results CapStar that focus successful in economics opportunities the in been the community and of on continue we full of unanimously routinely I've particularly board. of connectivity those partners experience board. in continue the join CapStar operate. selected add Financial tactic depth shareholders our financial an deal will the This to our and terms of focus a communities our strong meaningful CapStar. all experience, with in integration and pursuit synergies. this We week, Bancshares bring the capturing delivering with shared two We of These Directors deliver to former individuals costs of to Holdings

We filing X-K will in days. these provide the to an directors several be detail further next about

merger contribution This the before our making Athens CapStar end installment with Foundation which the of our the operate, a in million $X.X consistent the first commitment communities will to reflective commitment agreement year. of Additionally, of the be to and Federal our is joint to we $XXX,XXX foundation. this

the have your that we Thank many of you of of this ready made and open our participants in on call. support now lines appreciative are from CapStar investment on Operator, call are for We the continued the questions company. to you.

Stephen [Operator Instructions] of Our O'Neill. Scouten first Sandler question comes from

Your line is now open.

quarter. give I'm loan nice the of within some really this color growth. can you're seeing trends additional So, mix again the curious if some growth on you the of

come we last the I if bottom wondering was of what comment Specifically, maybe also deck healthcare see any growth. that did on kind so presentation was? healthcare the and you I construction in number then didn't if And number about talked could off longer, you that quarter

used the we with Healthcare felt we in term pivoted I in I nice our we growth feel Healthcare. is reported the driven strategy. C&I includes It's that healthcare progress team good and both growth The in the terms mentioned we we in runoff since second neater we experiencing think bottomed some were really the very, in kind like of by had making. sector. had I the core out in of quarter, as Yes, pickups that the as very that C&I

that construction as includes some well Additionally, both as spaces. our development in the owner-occupied you as CRE and component, know, core

the a both types pickup C&D in of category. loans were of so that mix And there was those that included of in

averages fund cash first I've the construction As before into times, this dollar. projects going going said of ever equity in in excess and those we XX% many average a reminder the

putting So the good quality about structure table. the deals the and of we're the we on feel

little like, And that those construction and And growth over XX% much in -- of higher terms looks growth XXX% net especially it's further you're very at ballpark, year-over-year. Are of couple a years. XXX% starting from about there of that is a the on least? thresholds get -- last constraint to we how grow to of close can the that Are here? bit you

CRE of couple to a out duration One, years. of things. X has point generally a I'll X.X about our book short

and lot against we're So lot at going a is gauging coming you're and seeing CRE looking and to going where off what on. there's we're a and that so constantly concentration on relative limits

well, now, not right we to overly we're something payoff. in pipeline limits, we it'll concentration period So relatively to it. the were be a concerned transactional short time, by of If tip over think for was

of on looking deviation little a obviously, I'm in a that any loan maybe the fees. competition the more at NIM And Or those see we'll from if higher? move by, in And second. guess, down, that part that here? fees back nature stable this was the wondering is loan fees move rate where for surprised loan if kind for The I one we'll of unusual I a see is

stable I be would to we than where say, this are quarters. we're past quarter going to more

being margin quarter a from And we think piece on LIBOR our the late I little I booked out, loans say X-month forward. it this of probably variable the But the more in that's attributed here rate quarter would I movement big fees. yields. to a elevated, of was what bit going fees the also point more in on on to second loan we're mainly would indicative but

XXXX on were previously. should And thinking XX% just you then more did Rob, trend you where the like was housekeeping tax towards? item. last we say for I rate is XX% Because looking

right now. around and But so air going go two. that end to the to for probably I'd it's Yes, be I say would between on going those it's XX% least XX%, of at probably upper

though of and to stay quite terms synced us loan in avail booked certification SBA of transactions more are would sell ourselves in certainly type on one that of expectation Stephen, I types out the reflective our point, we've of transactions there fee-driven that in Totally, loan enable fees thing market. to able we our to of that And books fees. be to we we are do do opportunities of have recently to up too. I I'll the also up that generates a in received and point the the think yield. more since certification more products few But on XA that are Rob the this we I the add will would

Our next Stephens, Tyler Inc. Stafford question of comes from

off about the of just last was actually How go-forward is opportunities. the much on just X(a) SBA to or SBA there kind do comment for I total Claire, And of want this what there the this the your approval, out X(a)? opportunity start you think much production how quarter? production

been joined booked The year. that really production in January, so the We the has was brought we of that steady of second first and -- quarter. throughout first deal the they the on team end March,

at on now come volume right at some a seeing so that They've clip are very $XX over steady deals process. got in we're a So pipeline million nice looking there. they're

feel that. with where we good about are I So

optimistic. juncture new quantify those a this so clients, to and still thing. because the I as doing market discussion offer at have Nashville of legacy opportunities think will as, since well bankers we'll here over in opportunities is in with a it in generation I lot prospecting both mentioned, the product the East type fee Tennessee the we're since on relatively new be as some this can't I very

should better going LIBOR And add the be back Athens quarter then just maybe nice fourth for the from from full margin. your margin benefit. a Obviously, to quarter from Rob, the comments.

dynamics the for kind launching of expectations margin? on any Just quarter point fourth for X those a

some compression we last for this the had probably for rate time the certainly, cycle. margin our time first with So in

it LIBOR fee. attribute basically in the movement would and the I to So

a should or we on see with our legacy going interest margin think forward the accretable going net our in I stable margin side. to be Athens, overall. that's Obviously, So pickup to

specifics formal X.XX% on I combined much think think model first on be prepared once X.XX% give we then in when we margin And have XXXX. you be guidance, basis, better in you'll to the model, our quarter if anywhere quarter for will shape. combined a out I after talk to the to we haven't a fourth given you from January good but more you to

happen you Athens with amortization what be? Do to have might expense the CDI

those XX, able report when mean quarter I we to parties have numbers. on in and we're close we at looking and Not of closing X share so third yet. be all fourth And information out numbers. accountants the our more we'll those all specific

any the And then on those can increases one you drove maybe me prepared last there? can you the loans? will Just guess, What, just color on any I this in missed your more special provide for just and mention color three But I remarks. helpful. be share

an simply lose The to. they is that was It ownership a company one increase -- them that we're event very with group close money. have credit. and caused related an had to They an to

actually the to As we back expectations. on of also equivalent that, about this, group learned favorably amount offset an interjected capital trending our it's ownership and with track

our And question Raymond from next of James. Daniel Cardenas comes

now line is Your open.

things. of couple A

we little As see us trending thinking quarter start some go-forward you you basis, looking loan a during the on high XQ. compared then give And as the to we at line maybe XXXX, color in and utilizations mid-single color how to that about digits? still of to on organic can bit a growth

Sure. it's Rob. Daniel,

guiding fourth year piece, double forward. quarter. in is expectations stick Athens we're that been high which digits. CapStar in all Certainly, basis So, in that guidance with we've And low for combined guidance on the going And business of to for further the some the legacy digits mean add I we'll portion January. we'll have to and a single going

down I line line quarter. this utilization was the On believe past the And on utilization, it was slide. the

percentage was the The because was the down lines Page dollar on into Rob The -- actually it's increased. up amount of percentage absolute while look the Yes, usage X. but this. also

million of those. we growth I like of expect that have, coming unfunded some still out $XXX we can facilities worth So said, potential

you of it in and East forward Okay, your opportunities in see growth going expectations is good. balanced forward? Tennessee? And then perhaps Or about pretty competitive in you for terms as given factors going growth do greater the Nashville, think kind of

Daniel. question, great a That's

continue and certainly, more high see think I growth. say, I comprised than we for And some of in comfortable the is do that Cleveland, on some think there. portfolio markets, to coming percentage think out might low solid have good double-digit feel the the a Tennessee some average size. of metropolitan the corridor. rely legacy single, I to opportunities, with Middle we'll market growth we we'll of Athens an of be deal the over we particularly smaller legacy potentially Conceivably, greater loan hold leading opportunity

So team do I growth there. so out missed a I coming good talented. well. ground that out haven't market there, in that we'll some think we'll extremely see the growth loan of being see on the would that's as some Athens opportunities And on I terms calling in the really think clients, expect is that beat of they

QX? Okay, last one more count But about of your for then off to great. share I how just the be thinking question housekeeping maybe back, And anything. should question

Sure.

million $X.X We XXs, and the ours. on I in XXs. -- have and their on our basis, in legacy so you a $X.X certainly press in you the at ratio about you will think be that fixed million. would added should is be a table, would share to then on And high count the fully about X.XXX, so I deal diluted put release CapStar So that think had Athens the piece. a high be exchange

KBW. of Lotz comes next question from Our Stuart

now is line open. Your

this question or is guidance yield color. mentioned, core Rob, for to that I NIM, you baked accretable some the you've that on But appreciate X.XX% one that basis X.XX% the there on follow-up is number? into and a

in more add on that combined say portion the basis. would certainly, our would obviously, core accounting those be basis. to And Athens margin pieces got that's more in go yield that kind and accretable discuss will of as so be yield. forward Athens our loan that purchase a We of because January, a as well. will in do a on be we to what We'll with we'll We identify able

quarter. fourth identify the So that in we'll

was in announced and know realistic dividend it guys I forward as position, deal. not the And capital you're the then your as just even that your you just buyback? Is curious. that around quarter one as is at or as table? late thought that this this Just market option shares But weakness closing just as follow-up. to have a is you a of well on an or given potential well point the think both the

and certainly, Yes, decision a we've your discussions our well highest as capital. XXXX, further but the that about. continue is with use make strategic our our through best we board. great as can a growth activities deploy Stewart. have in raised capital question, believe it's had of that to M&A that an And you and upon discussion that It's markets, in has we certainly ongoing board We something to based our

And last sorry, just one one from end. my

about in XXXX? any profitability great. think first first be And likely there ROA. are half saves a about be I the through your know that Any then Athens establishing will color over we think would core quarter. the of X.XX% And in X.XX% cost is targets we As then so you XXXX, into coming the fourth the bringing into guys mentioned How do quarter and then you range?

would reiterate Stuart. the when announced said deal. Yes, what is we I guess, do I we what

year We expect the accretive or to thereafter. deal be X% X XXXX in XX% and

see You'll conversion. roughly the saves phased the after in cost of majority

saves So cost and XX% was X But now XXX% putting Athens about that going we year and together thereafter. identified phased base, our about XX% in and we're be to going on through plans. that expense

a economics. in We're announcement. progress I reiterate the making with team. And at lot made Athens still of we're the would So those just deal confident comments we that

Hunsicker Point. comes Compass of question [Operator Laurie Instructions] from Our next

Your now line is open.

make that drive to to any because restructuring a want I other just go I margin did obviously, right. margin there Athens higher? that's that had I Rob, wanted Was X.XX%. to to at back there I sure you understood better mean,

No.

income then will And dollars about in help the your look in if But income in what for like the think XXXX dollars net and front both very accretion end-loaded. and obviously, interest accretion you it's about we XXXX? think can us

the out in information Like early have January. I still Laurie. process. Yes, said, detailed It's that in more we'll

accounting, that out So going now, you comments making any the can detail our specific definitely in fourth on so for that slides accretable forward expect but purchase not we're yield we'll the right quarter's results. on

Okay.

you how If that thinking should about be points, just we even were I to in basis that? quantify mean,

do preliminary. Yes, now, right I that it's wouldn't

rather I'd from So away stay that.

enough. that what the And fair public just time then Athens And then brought give last anything an number? Can on question. that component us into Okay, what are? of if you update is? funds then And your

legacy million, some Yes, do I mean, the our good $XXX is clients $XXX on about side, probably, million. in have CapStar our public We marketplace. funds

side, maybe $XX million. the those combined funds say of it's little a in a It's a it's not But small piece companies' On overall either both other collateral require client a of would and big piece deposits. deposit general, side, base. core Those than trickier deposit Athens I box. there's are

you've mind Claire. legacy Athens This would we And as in one that the core too. add. come I Treasury Laurie, that see up a with about for thing so as have public from that proposals and got relationships, various as come deposit that Management funds, add I'll where situations there have in and requests are municipalities in show that complete DDA well underlying deposits public Keep that. but CapStar with is them funds several some bring you we might

be can relationships those So very valuable.

is it, And Got that? the CD then what of component okay.

But won't but I on have that you anticipate be would get probably that. That's negligible. that back to very offhand small, can I to I negligible.

And from Daniel of Cardenas question James. have a follow-up Raymond we do

deal, of for pullback will give possible as price? us the in be it land stock just little bit you to would maybe think to where the color you from Athens the Rob, goodwill given a

we I different closed a going of I mean, and on time. at Yes, third parties through this all that certainly, so accountants October do we've wouldn't got room X full no. marks. the

we'll out But able detail position So unfortunately, to in be that later. do right now. to we're that not a

So bit fourth give numbers come quarter the little color? a out, can more hopefully, you when us

in position we'll better that, do Yes, be Daniel. to much

I call question-and-answer conclude to would session. like any Tucker remarks. over does the this for And Claire turn back now closing Ms. our to

analysts, research with come well-informed you we're of that thanks operator, to Thank the thank you for pleased our today. appreciate so and participating the have We you, participated quarter. Again, well. each always as questions all who from

Tennessee about excited we're there's the quickly really as that. all opportunity tremendous our franchise. are there, excited very to as with are of proceeding be We we think partnership We East and on

participating questions interest Thank in to out for event me, So any you today. reach the you in your of again, have us. follow-up or for free CapStar. to feel thank that And please Rob you of

with call. that, So you. end we'll Thank the

participating and today's concludes program. gentlemen, in for thank Ladies This today's conference. you

have You may a day. all great Everyone, disconnect.