CapStar Financial (CSTR) 25 Apr 192019 Q1 Earnings call transcript

Good evening, ladies and gentlemen, and welcome to CapStar Financial Holdings First Quarter 2019 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; and Mr. Chris Tietz, Chief Credit Officer, CapStar Bank. call replay recorded on today's made will that for available CapStar's note is and being be Please website. the in Please the note are website and call available to at SEC the of CapStar's the presentation release, that and this www.sec.gov materials that on at filed that will be SEC CapStar's with Form X-K earnings Investor website page CapStar the referred www.ir.capstarbank.com. Relations the may CapStar within during certain securities that constitute presentation statements of Also, forward-looking the meeting comments make federal laws. this

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

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

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

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

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

occurring you We good XXXX to in draft afternoon. our you're clock." appropriate quarter in Since Nashville this participating the "CapStar, operator, it's is appreciate for us all NFL call. week, the say, you, and earnings first Thank on now

news fronts. on good have to We many report

know, acquisition Athens X. of on October we you As Federal closed the on

systems with exceptional have collaborative integration. the branding our relationships customer East core with that successfully the completed very between the and pleased and have I'm experiences conversion focus Tennessee primary with all We delivering on developed now bank. Middle the teams,

of the quarter earnings increase. first $X.XX on XX% our If share you growth. I to front of deck from totaled presentation have to period for diluted the net XXXX. quarter, $XX.XX, that income $XX.XX in a an favorably are performance reflective which book of fully Tangible or attention $X.XX share same $X.X drivers million some of first per you, in X with basis I per a share increase may your the fourth XXXX. sound, so of the you of This the quarter Operating profitable to earnings direct of from per the strategy Page XXXX, of stated value compares in grew XX% share

key do but sake bankers production the a In make we partnered by that was we of I'll East Average XXXX share with of as underwriting. for the loan to XXXX. Tennessee. sound believe our of are which the of of late average so in cost. Athens opportunities indicative over assets growth with This C&I period reasons loan to for and Tennessee rather large quarter. our several first grow ultimate quarter metrics business pleased Tennessee continued Continuing, the in are value point-to-point quarter deposit first particularly comparing book X.XX% said, quarter tangible over our XX.X% growth are management point-to-point EOP standard comments win generated couple is growth company. are East in growth about first view fourth growth parameters business of the and to double-digit Also, was we the regarding for on fourth new a important to return the the our over Operating of loan valuation validation payoffs pricing per is Federal. as is that quarter. the segment, one of to We annualized of significantly the the lower and share the impacted in market, fourth deposits, Annualized EPS strategy the XX.X%, deposit With translates generating. quarter. X.X%, the Middle emerging not excited within end-of-period treasury we're in was same benchmarks more XXXX. grew these growth We the growth, at XX% deposits of

average the leading quarter. range quality we X.XX%. below details However, The in on our a provide were will Rob portfolio. total of the loans the is in tangible gross XX.XX%. finally, guidance was comments. criticized/classified asset ratio loans equity was explain provided ratio to indicator this And return variance last in loan his further This of to entire

profitable the Page slide reading We by related growth all. prepared for a of to metrics financial investor that our goals to the key strategic deck. of you ease Moving breaks X out sound, of

as more we deck. move will We metrics specifically through about speak these the

on growth Page on loan to move Let's X.

legacy X first Athens day was at XXXX. organic to of loan quarter loans, growth compared CapStar XX.X% the Excluding

specifically, the on in Athens over $XXX loan relationships low-cost $XXX,XXX. side portfolio occupied bottom the million provides and Athens loan owner the New page, our be added distribution XX% is left and first usage to legacy of to C&I mix. of was of and the at you diversification accounts loan the real comprised deposits. chart book. operating granularity will tend average the estate more $XXX relationships loan further book. with pie commercial In and full in in and These production the see loans million line day size X quarter. More the loan the

XX% I impacted previously book. growth. of loan of now payoffs our referenced partnership, Athens and the quarter estate loan the the in late that With average occurred consumer the real paydowns XXXX loans represents fourth that

first $XX the and what in CRE. million in of payoffs the C&I totaled were fourth quarter, about half health quarter across-the-board occurred they care, paydowns and of and last year or During

principles timing by Again, our growth. engagement like cannot While to we frothy customers sound, factors we committed entrants Middle our market around sell we a decide to the control impacted in when control nonbank profitable their and Tennessee businesses, market can remain our of lenders. new

X first It and XX of quarter. points, million market core allowance and which and will we in are review points sector. terms in assets of the in move with quarter. or of key the loans with industry on the directionally Tennessee of the value the down plus house criticized important Tennessee We've $X.X provides in review loans the or credit quality and the deeper that believe to base a Again, graph, credit portfolio, We have moment, past loans. investor in attributes diversity loan from the And size, shared The not indicator leverage reflect we left banks. loans economy NPAs loans metrics, robust were for deals, our is health level the of Total discipline on to key entire finally, see to reserve East estate mark with which classified care. East key addition has to average commercial X.X% Let's credit basis although of the the quarters. of the I impaired CapStar for XX Page loan losses the believe capital and the criticized/classified X of loan increased In loans lending presentation that that the million to growth of deals detail addition including that for is granularity the ratio participations, of is our metrics. classified is diving criticized out-of-market XX the operating. at principle. SNCs same. a is these points substantiate previously lower you the graph, criticized/classified our note soundness loan of This The for favorably top also on $XX basis established the level fair further trends loan the further borrowers, you our X.XX%. improvement of southeastern noteworthy of and focus will leading from franchise lending. aligned peer is the sector end lease asset company. basis concentrations remained been prior and limits acquired CapStar slightly It metrics practice of current as you'll the In comprised and market and quality for the a real note We left coming or around compares with This from franchise, loans.

we we summary, going more the pleased performance. company our asset begin with detail and of provide financial now in to I'll forward ensuing the in years. So XXXX around ask quality are Rob as

you, and Thank good everyone. Claire, evening,

in primary as We the to typically account, then strive The with to determining involves of our status build primary have clients and relationships client's shown on market. success our business obtaining bank We a it's operating account. good for gauge slide fact if a we how from reminder time, checking model approach or this denoted now the DDA are we and bank the client. our our and time

least our last treasury commercial not credit our and also For would is include clients, this a management product. platform but

we charts, executing the very the of manner. As clean you see fundamentals strategy a are effective in can by this and

X.XX% page. the Let's yield for in said The prior Having of was the to movement yield. did and experience move the quarter quarter. components to loan this, different next we flat

repriced December, the contributed loan another bps. and our mix with loans variable X Fed in our First, volume bps, rate X hike adding

amount in the to we in of of did XXXX. see a a larger-than-normal However, which was fees, loan attributed payoffs our fourth quarter decrease

and have fees. lower to accounting recognition The loan was this the paid deferred quarter. our as and once yield moved fourth know, did to curve an on Purchase off, loan the mentioned first Claire on compared you of quarter we our loans an yields. new production and have prior in are any book flat impact quarter, As loan immediate

average, left, see on was lower mix related the can slightly the X.XX% last described slightly than which above maintain in that on This said loan help decrease portfolio been As you the loan this, is our should environment us chart lower first of in new X a the curve as in or Having rate has yields prior new loan largely yield by to production on increase than and our production. the pause. yield yields is our on quarter the production more quarter. being quarters

deposits. on move to Let's

we banking line XX% of due to growth during deposit our was strong in of experienced seasonality quarter, growth this While the correspondent approximately business.

up back balances you deposit half during build out a As the year. second over these around of second typically peak in past, the and we have the quarter blow time, reach tax told the then

Additionally, with we should since or market essentially for replace Fed the deposits, price see the bulk these of similar deposit lower-cost set funding. here the we to able be runoff any

growth deposit partnership the to cost the with seeing relates important grew in at our in than ability as it end further market, This East incremental the drive growth market, East since already As demonstrating year. of a last to Tennessee. Nashville annualized deposit the lower power our Tennessee our we're is XX% team the deposits of

Looking at the the bottom right on the page. table of

note factors. a This balances. result our pickup CD of also is You'll in a X

the of approximately CDs, of in in and rates market rolled saving borrowings lower brokered in approximately First, advantage brokered XX we FHLB CD process. the XX X-month million bps to the $XX took

our in of just Second, which million Tennessee, branch opening in new conjunction of ran with we deposits. $XX CD in the under brought special XX-month new a Brentwood,

of for deposit our rates deposit in check. need the on costs keeping increase we with While focused deposit quarter, challenge continue core the growth this remained balancing to

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

net the to being down deposit XX chart the in main Our X.XX%. with left movement interest outlined the is margin culprit. basis This bottom in increase points moved costs

I payoffs earlier, to last loan decrease quarter. quarter fees elevated the mentioned As in this loan led

this XX% metric ratio and for ratio well I fairly has our these at time. guidance is loan-to-deposit steady and loans. Our to at been throughout XXXX. would continue XX.X% is levels our at held-for-sale some This within if expect include you

forward to on income. move talk let's guidance, noninterest about we Before our

Our deposit fees treasury noninterest prior charge well deposit and to income guidance assets can line charges management we hard within with fees. and pay the were Typically, provided average in clients last Treasury quarter. management balances in X.XX% service their or was quarter.

resulting were Tri-Net the This of premium. had higher than balances QX, once dropped interest fees fees quarter of quarter relatively rates these additional with An a fees and in XXXX. for and we originated from from was the explains higher higher quarter, loans driving rate is the we then saw was record deposit reflective demand institutions. in loan financial this yield in environment. curve benefit QX more QX flat Most the product a in these see and sold when other $XXX,XXX

For which we was similar was higher loan lighter QX, you QX Mortgage this this of can year, market but is origination income to expect last Tri-Net premium our for than was year. fees quarter volume, prior to our sold be the purchase loans Tennessee. mortgage reflective the The of of Nashville, end XX% origination to the volume Also flat which result that is robust note year. levels. was

of recent I'm strong the confident group AllianceBernstein Amazon, year Given others, compared likes our to will XXXX. announcements have jobs from and the mortgage a

to on move Let's expenses.

the our in guidance an mid-XXs of operating moving expenses of starting Our efficiency by This ratio the to squarely year with lower in the is and the year. operating noninterest end came million out the line of XXs XX%. $XX.X at in with

line Looking individual items. at the

Our compensation and moved typical going of from forward. prior run quarter, down should more is you rate this expense expect the

may elevated as our accrual quarter last at you overall to incentive As we XXXX recall, performance. a related was ran year-end higher

Our County. to freestanding, within branch increased a location Brentwood Williamson occupancy slightly of our the relocation expense with high-visibility

speak business I very we increase And branch benefits mentioned the expense conjunction quarters, bit. ran the for jump opening expense Additionally, me as line so are deposit location. we increased manager, expect campaign this back the for with business. earlier, start we in with merger line high-performing the with branch first quickly during this prior this a a about quarter in let a earn items the grand of Other staffed so to in to

includes the systems our capturing the XX, the in conversion and of but synergies full can and working way As we to this on completed year. Page branding also are to integration way our earlier on see personnel, you half progressing one some platform. are quickly This Athens. second core month a operating with tailwind core We

different the teams should Tennessee. time X over revenue identifying and top integrate as between to East best benefit both products synergies are leadership, Middle the line Additionally, geographies, we and further the practices which

Let's ratios XX. and of of remind guidelines. would capital December, buyback at Post-acquisition, the Page we remain announced XX, stock $X well-capitalized go of our regulatory repurchased as you million I to $XX.XX. above an we XXX,XXX all shares March price in average

under $X you the math, of doing that's those For just million.

we that you and provide guidance let's model with of to about help XX - data our to talk our relative just Let's guidance you to points performance our guidance. January, and goals. In shared numbers transparency into

of guidance. cost For on quarter's at out first points that came ROAA The driven XX our performance, deposits. so predominantly miss. hit the clearly of was a of miss The X by elevated was we in the X.XX%, our

at this, fund believe lower up this the range I stated the albeit said pace As slowing compete be for our Having cost reiterate do I earlier, would continue being. deposit of will a I range as at business to to move to we but for we time NIM loan expect our growth. our end

ROAA in relates been reload challenging quarter guidance the mortgage, guidance, the FICA the yet fully first has our synergy stated to to model I expenses a within most has quarter. we will expect guidance stick be our our traditionally As the and knowing of to not second seasonality given it been that this executed. would in

attract in the to term. stated guidance below we may do to lower of our With be allow sticking this it second anticipate the let us that, near higher in stated to some gives also Should are us back which me growth, closing or As it put new in of comments. guidance the relates for occur, at diligent and of to Claire guidance. a end we our will us to deposits NIM a number loan payoffs confidence turn an more quarter, degree this but opportunity pricing

Thank you, Rob.

that reflective that this in growth. this me strategy. reported the portfolio afternoon Page demonstrated Let We forward clean and the a to your few going profitable our takeaways. as of of we credit believe remains XX the deck results are key earlier strategy metrics sound, attention one loan for CapStar's financial direct investor of

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

We on this we as continue focus - pursuit we full continue tactic are CapStar. expect those soundness to principles to opportunities that of and with our bring consistent relationships

in an associates with We shared goal the delivering and onetime our the capturing in deliver are Athens of costs to connectivity deal focused customer a shareholders our of keenly synergies. pleased unparalleled successful been of communities economics each competition. integration The outreach that all of experience, recognition I've and of strong on particularly terms with goal operate. which from is with in from meaningful received bank consistent CapStar Greenwich the our excellence our we for our in customer differentiating our financial Associates results and for partners

wallet increase our status and of penetration customers and for bank Continued in center with more front is the bankers. all primary customer

Tennessee management East such SBA Our new treasury products. suite product loan about excited partners our are as in offerings, and product

in believe markets that growth. we operate, continued the through organic have we market opportunity we for which share Given increasing

continued this the the on from open call on have enhancing have continue strategic to Operator, lines value. you will we're of potential ready that our the your core our many building M&A investment of We're CapStar Thank financially of participants very questions support for made attractive in opportunities and franchise call. and shareholder now appreciative that to explore We and of the you. company.

[Operator Instructions].

Scouten Sandler O'Neill. of first Our line question comes the from of Stephen

a were But office. gave came idea know, color perspective? those I strong on and million and a a growth us were really little quarter the from around deposit more Rob, the $XX kind can detail you specials from you the Brentwood maybe running at where of little of bit that So those give that deposits you in level what around of an pricing the

around a for steep Yes, so were the CDs the That right X%, amazingly at Nashville little seen X-year X-year market, CDs enough. sounds X.XX%. we've also but

So - X.XX%. but

Helpful... Okay.

too. let regional our accounts, CDs, able leader lot of with individual market just new that add been as of those Stephen, to something from and me bring, money along to has office we The large recently competitor, he hired operating that, a came accounts. Brentwood a

in been So to excited be inroads lower he's our really we're about that than make going blended is there. market. the But to cost able really, that

Yes, also deposits account sorry, checking that Stephen, as well. required X.XX%

then that the of you this full kind frame have for guys there an us presentation of growing percentage have kind obviously the specific size like in idea that along of importance a that up full guys number can of a that of guys opportunity, even that and give what of lines? there the And you forward. or relationship you customers of noted you us or Or something your a with the metric those idea is are tracking? relationship Okay. Is moving currently maybe

We're talk product, treasury why relationship. are have have the No, account, out the that on that talking a about we it we client we don't have we only that. the deals, sheets term looking don't we when single certainly put externally, to has business. When not commercial other the piece? about where's operating but If we at have

other DDA either relationships, an for we have are that how that our part existing a And of is a with with to primary we new bank, and clients selection or again, us clients is client's litmus from test that denotes operating we can then, each a approach or say if NOW. account relationship typically and a So standpoint. of

here. they huge in we but to term that valued a days, last local is add their would I all we, about loan treasury well anecdotally as us. is that year. we treasury committed just with thing that one It involves closed, required of XX move relationship a to and at a That company a the won have $XXX,XXX Stephen,

think product big, our well the ability suite management we relationships. and that really that have that solid I with these a to speaks system to bigger handle treasury

continue to poised to that. we're think grow I So

book. the Okay. it kind I on thing as assuming the quarter LIBOR on is? Great. you loan move for about from me. stays then the variable of be what slightly, X just do But know maybe you rate net bps to benefited as the repricings. environment effect started in rate loan anticipate repricings And down the last will Curious

yields. yields the average. I it assuming Yes, the we is, that's past on mean, the why be new been just But loan the tough added about in our those have They the reprice margin. rate portfolio - quarters, goes the X going just what our book books, above on the environment, if on in a chart different it is, existing loan be for to where challenged pieces. And everyone stays either it contractual on all the will that's coming rate our else, part loans But as and types growing we're flat production monthly, of that's repricing quarterly. we're to like

based LIBOR's where some see And moved we XQ? on in actually Yes. downside so far, would

could. You

question Our Mealor Catherine of comes from KBW. next

management same Could this March on incremental that think for part you? months thought the think of in it of margin. quarter. early of more the deposit the cost be they feel can and quarter we've was heard that? about a cost to One this like we less - So quarter? quarter, but cost we the about versus a deposits Or of in through the that increase number the I there from trended way Is how an had that how teams the

in our as is the our seasonality And business that one traditionally, banking at correspondent with rates quarter for basically competing the Well, growing or said. we is Fed. had that I wholesale thing business

do especially least the slightly at I cost our off, March, that's would an off not be going has that But have quarter dollar it in do rates, better. rolling need it to if higher to opportunity If if we amounts. could Middle to those increased So we replace through funds, say wholesale in rolls at Tennessee. overall,

may a as East Tennessee. you in strong significantly than Tennessee robust, and lower was that the know, that's we Now had mentioned fairly Middle growth cost, and

it. Got

as expense And past rate look that this better That's you the on side, said a quarter was in run the then second Okay. quarter. you helpful.

any so next And Athens expect so couple further that savings expect cost of in is maybe for savings absent - guess the that, we Athens? I should the dollar that there to you frame cost And can you quarters? of is see amount of to get from us over

think I of material be first going We the in to systems the it's did right off don't Yes, a bat. April. part just conversion

We have out are be of of the the past slowly down We going low too pulling couple to would stabilization I to quarters. guided to a in certainly trend around period. What efficiency XXs. not I risk going the quickly. people where for kind take ratio, We I've say, a started you about think Catherine, to XX% is that's and

So I we slight this go you year. down could as the either some see dollar through movement with or flat amount think

it. Got

that But so Okay. be we're margin? actually by impacted ratio, then efficiency a higher? the shouldn't chance that And lower is there that

expecting kick to growth, still but businesses we fee we'll expecting are still our meet we're have - loan in, to Yes, numbers.

pressurized. margin, on think the you the we're going we're to That's lower where guidance gave So be I that going at the be end. I to

of well So look we up. at other avenues as make got to to some that

the a with $XXX,XXX. had record noninterest quarter on we'll think have that similar a level was piece I think that we income, the We Tri-Net there.

gain traction year. the that sell second That's We up terms we last starting loan SBA to origination, the half picked have starting to year. in in of of team that the

up. revenue the bring to us, for opportunities, those So

[Operator Instructions].

comes next from of Tyler the of line Stephens. question Our Stafford

Athens the were Was start in just portfolio that to period. on pruning quarter. size reductions Those Maybe of absolute from Or the would this Rob? portfolio? securities down the that, just in just you expect further the see to

say I that's more liquidity. around Yes, would

that end we'll the at our right. just tad of getting think that looking at a I mix the rightsize quarter, and

Okay. quarter? - of the to the the balance was sheet the just in on deposits the margin, balance that do flowed have first you What on correspondent-related

There's XX. an additional probably

So at little from XXX - went we I'm a over about to up - somewhere about XXX, there. probably around looking

deposit those are predominantly And in categories? what

well. money the interest-bearing market then accounts and Some but demand, as mainly NOW and

interest-bearing? the just seasonality you're absent any just you can this kind DDA And from to the of Okay. quarter, seeing speak and migration on trends

I point but we a large out. would characterize wouldn't mean, bit, as or abnormal. little that anything I seeing are I it nothing

one these to the XX correspondent thing fairly settlement correspondents, the for DDA of I'd add that of for pay fees we past months, and serve Tyler, fact to do And the it's bank I been at has as that over look is they balances for with constant. with a that will part the many their if balances.

an level to And just there so the there's going support be to services. established settlement that's

Okay.

to the you it the the for just at foot it year. Just million least term? into end that margin lower last second heels to little accretion just the I of the second Can not for of below at the on $X through margin XX - in your points deposit that range to to how the GAAP going implies of of and walk for Rob. stay near of mentioned I'm GAAP struggling from continued quarter the think will comment the lower in get on bit and end I bottom range accretion cost, margin full the be about me the a quarter, the margin, fourth quarter. compression you mean basis the increase in

if I we on continue loan yield put will Well, we opportunities think have fairly for think level. other and quarter a held and balance at we so is on side, our That, have the high think, also some actually today, X.XX% we roll average production. another paper think stuff. I Tri-Net at sheet the off I higher-than-the-portfolio I some that on of sale new with of some loan

side, average yield is a portfolio little that have in our NIM - off on those on well. on. going multiple help paper lower sell our of that yes, will than we that We and as The as sales the it's loan

understand side, just correctly. I Okay. make I sure, the expense And Got it. something to on want

play. So in the the of is may the though year? drawn be the out XX% Athens was savings throughout It's conversion just the still - remainder even cost saves from more recent, associate cost

and some platform right. that a I I may got happen early. mean expected I that of by core positions staff would jumping think bit slight call, will upfront. little I some, had what that and turnover bit one of got slowly But the that core have signing think or We've period come provider. noncritical time. We've of little a that's we've out roles over contract with a on

comes next question Laurie Point. of Our from Hunsicker Compass

go was to The to wanted was accretion interest margin. that net actual quarter, that? this dollar back income income what Just a

Say right around there. $XXX,XXX, around

I Yes, wasn't was I heard say thought X%. you Okay. I sure. it

Okay.

of points So you X accretion margin. basis in had income your X.XX%

from then core went margin to I'm basically So your X.XX%. if X.XX% looking,

core So basis Is points of you contraction. accurate? had XX that

I'm Say that again? not sure.

Sure. Yes.

points So right, if you of I So the accretion out I a X going be accretion had And is basis this a to next points? basis income quarter, right? X.XX%, goes core X mean only Tyler's so down, bit, margin run question it stripping income in your to this of guess $XXX,XXX, so little might I'm X.XX%.

wouldn't I we it quarter, fairly No, think did if it a going be - like or be similar. would to $XXX,XXX it's

It's going be similar. to

to if run this just suddenly $XXX,XXX, I only it's Because down looking even mean X then Okay. points. we at basis I'm

about could of fourth mean again, your guess I we directionally is hold directionally, is current if going to to see just I going cost trying think we thinking at were understand of guess I'm margin where that where... potentially were if higher, margin you deposits levels. how to sort I So that reported that, quarter about,

- XXXX mean? I of quarter or 'XX, Fourth

runs - holds, I So trying of accretion understand quarter come margin down. fourth how guess. I'm right? just to the Yes, your 'XX,

quarter. accounting margin I for is a $XXX,XXX purchase a your placeholder accretion on think around

loans some You little lower, East could accretion. might quarters little payoffs that some on a some higher some little a have bit we Tennessee, trigger bit especially higher, get if a on

a modeling say would be safe So I'd $XXX,XXX.

are albeit environment rate so a in our to we're some significantly it's as going in see basically deposit increases We costs, where paused.

So be very to would deposits. anticipate careful I of competition also being about pricing their

going much, how loan think say they our Tri-Net The is that yield. where be I we're growth, near then can the now then lot second look really piece we... be in which little piece on have our another what right side loan a our Chris, higher the at we a We partners bit that to other driving yield I East would drive have. sheet term, looking Tennessee And is XX%. to And mentioned balance deposit paper is piece, of we

well. Well, million that continue quarter to about bucket, through we're so as $XX the at million $XX push in yes, will or and end, held-for-sale

the So lower lower the it's that's hit side. go back if that, not end. be to But guide certainly we I to we're to the with margin we'll that's going at we'll but going you help say. to we're we going saying I'm be why on below and end. And the guys on sell term, said going near think not at phone that, if challenging,

Okay.

Okay. Great. That's helpful.

that? interest be thinking Okay. basis thing on up line, And are specials But to other money rates guys volatility, then there just how running? the one is points the XX Is specifically here the markets not quarter, because market money should you the about more there still went checking in X.XX%. I guess, money we your - Or linked market. are

as we markets, money well. a special money on have Yes, market done

low- I think we've to also and additional has in that with mid-Xs, come business. that done the

the but this mentioned at also, pricing just money money we're markets, on on we've in lost And where on one deals campaigns. for did also seen Middle deposit we money the X.XX% side. I've in CDs, say then marketplace So would competitors Tennessee the market I We markets.

Wow.

Great. Okay.

question here. last One Okay.

than just use was What's a expecting. good the for rate, number little lower a tax I to year? of rest Your

might of say period would Laurie. XX. ebb mean quarter-to-quarter. I year, think But around it the longer Yes, XX, flow will and the I from over I it be

At Ms. to remarks. any for Ma'am? time, to closing back like I'd call Claire the this over turn Tucker

Once free this Should of have those appreciate questions, are in on call to for With will any thanks to please Thank reach who the follow-up to that, or you company our confidence your all the we greatly and appreciate you are CapStar's Rob in investment. who operator, afternoon. investors your end CapStar, you, we of call. Thank you. your you earning me. feel participation out each again, for in operator. And phone

wonderful Thank Ladies day. today's participation, concludes have Thank you, a ma'am. you and gentlemen, for and conference. this your

You this at may time. disconnect lines your