First Horizon (FHN) 17 Jan 202019 Q4 Earnings call transcript

Good morning and welcome to the First Horizon National Corp Fourth Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Aarti Bowman, Investor Relations. Please go ahead.

Thank you, Sarah. website earnings in supplement on this Relations of the we slide the that section use will call our note release, and financial presentation Investor Please www.firsthorizon.com. at are posted

may outlined we annual call, and most for and Actual forward-looking mention In earnings differ of materials this the reasons will from number recent our non-GAAP quarterly forward-looking information. reports. results in a our information and

non-GAAP for to information our reflect today we update views materials. in them. obligated earnings to the The and identified Our and forward-looking statements those reconciled our is are and information such this as in not in is GAAP materials slide call presentation

speakers CFO, our please is this authorized the include that BJ Bryan only morning’s of our and Jordan Losch. webcast Also, CEO, remember our on website record This this call.

Officer, Bryan. and Bryan turn Additionally, Springfield, our BJ it will Chief over I for Credit available will now be with to Susan questions.

thank you, call. and Thank including joining pleased positioning the throughout quarter. demonstrated we the Good XXXX. am year the XXXX, fourth our for good We I Aarti. strong us momentum very have ended performance morning you with for well with

growth, Over showed we past balance growth profitable the key in markets. sheet year, including

market we improved XXXX, significant merger successfully from delivered legacy power Capital leveraged and and integrating synergies. good earnings able earnings spent combined balance We presence have to much XXXX increased We In were deliver deployed our the efficiency with countercyclical contribution capital businesses, and of We sheet our expanded deliver an effectively. Bank business. capacity. platform into

nice accretion further enhance the and should in Our should XXXX. our acquisition also IBERIABANK, announced We transactions MOE the branch with growth earnings prospects. deliver Truist

deposit key with focus broad-based loan Our off paid growth in and markets. strategic

areas higher were strong. especially return specialty Our

of bank mix X%. and wholesale growth trends regional shift funding with funding credit Our from a portfolio stable. to able were favorably up X% remain our average customer quality to deposits with We was XXXX XXXX deposit diversified loan replacing

Our countercyclical challenging solid rate returns business us as environment in to produce even mix helps a XXXX. interest such

interest market XX% from million XXXX XXXX. falling was $X from was fourth benefited business quarter rates income the over Fixed income revenue in daily of volatility. fixed and and revenue to average XXXX Our up

We by business showing expansion customer lending a of The was merger with result on XXX% MOE year-over-year. warehouse in and we to sheet targets out our to market countercyclical now also accomplished momentum Bank for through helped in mortgage foundation momentum presence laid XXXX achievement lower Day. the businesses execute growth a rates Our Capital the this and on growth successfully XXXX experience our expanded the financial use build in strong IBERIABANK. and our Investor balance have we we with

acquisition will Throughout additional will the economic I announced I focused and while next we also accretion. have these environment XX integrate build remain markets not deliver distracted the a year, we We view. earnings current is with of getting franchise. regional attractive provide synergies pleased balance meaningful that and our transactions. growing leading about and very to steady our on our close ability integration in our more to-date am branches confident planning the The and relatively in opportunities the with today am sheet

solid are markets Our still growth. showing

the Our economic relatively broadly remain with customers optimistic outlook.

some I I closing Then BJ will be BJ? the the now will turn quarter. to through over go to call comments. with back

year. good gives By I the the accelerated trends Slide of through and quarter start our will over momentum Great. of perspective by business X. saw which reviewing we a on the XXXX everybody. the how of morning Thanks, has good Bryan course EPS last quarter

leverage Capital deposit strong efforts. seeing towards the year expense XXXX number Bank were twofold: to momentum impact of continue the accelerate primarily savings merger and we two, efficiency objectives financial and loan cost this end the key of full growth Our first, the integration; post were and that year

Coming into interest a at income the quickly rate growth. rising and we beginning shifted net that of pressure outlook yet environment, put like expected our significant others on XXXX, the year

our business adapted expected. and our as teams model we However,

total of First, average job year-over-year. we and growing X% did loan excellent and an up deposits loans average with up deposits X% total

impact deposit Fed and we points in lowering growing from discipline, Second, XX cuts. basis deposits, ‘XX mitigate maintained ability loan core strong XXX in in ‘XX deposit particular, help while XQ our pricing to to continue of paid the X our XQ rates

earnings took of actions rate our designed countercyclical we XX% strong versus fixed businesses XXXX. companies expense adjusted growth allow quarterly improve to and efficiency income And almost than to like our generated and headwinds. posted growth growth strengthen an that the X% year both our throughout Through loans year full the mortgage EPS culminating growth Third, more we all on offset out reinvestment. year in of lastly, this, earnings basis the continued over adjusted for to through that needed base

grew highlights our point Slide see for would fourth ‘XX were quarter Despite fourth performance quarter loans quarter of versus As item the and both still with quarter average Fees the both were continued growth linked from the environment quarter fixed linked increases ‘XX business. year-over-year you growth strong bank X rate commercial year-over-year. deposit fourth and multiple X% financial on from rate out, Fed lower. and excellent year-over-year. consolidated strong the can Few I managing cuts, and showed in fees income both results drivers line the customer challenging up year-over-year NII growth loan XX% from to costs from materially up we due

launch are bottom the that the we You IBERIA and contribution from merger re-branding charitable items in a made occurred foundation notable quarter. the our previously that our to fourth announced will on deal, pending see related costs the right to

of companies, broad-based parts our all growth and ahead Slide Let’s both in X. which franchise can take markets South XQ Tennessee, loans our the an and particular across continue. Florida had our a expect here, to to in also seeing with deeper and year remain specialty outstanding XX% grew of see Texas. excluding we on Middle look which comes mortgage as momentum is at the which we X% and XX% And our pipelines strong loan healthy growth you like into are Encouragingly, saw markets favorable growth highest industry we the growth well strength from in businesses, loans opportunity

XX deposits on loan Taking we the the our XXXX. first you see strong rates a basis are deposit XX and our gathering look broad-based is bank at paid our points quarter as growth again specialty that Slide also pricing. businesses in both Deposit trends have disciplined points is core across our XX, and our with basis deposit growth, on since in done of while declined quarter markets. and down very And being this linked regional

the to to business, an said, as XX, outstanding fixed Turning income this had Slide year. Bryan brings which again us

the of resulting the the base revenue during We activity trading And repositioned rates expect quickly of market market as which market the we our other fees impacted of derivatives general with have returned, have profit leverage in the this the addition, has year. known rates sales our all desks. rate volatility improved our our evident turned. when in delivering level results to along for we management business. last that is with and volume years, business expense in direction in continuing volatility, seen capture in And to income team in into the few fixed with some opportunities across expectation continued higher and product execute and swaps And solid market in the customers capability increased terms XXXX. favorably and this the the interest results was Giving continuing had revenue clearly to business decline nimbleness it

expansion through interest quarter interest Let’s strong in loan the with able NII turn Linked it for quarter, growth deposit through change a of teams the and XX. X basis pricing NIM discipline a the margin. increase point solid customer in and to X% In NII as how our a in income interest to well Slide was, to on accretion much manage yet a you to deposit and growth bottom in environment net we saw and cost and we rate increases the strong led headwind rebound left, both discipline. dimension margin were in wanted coupled how and net linked

efficiency an to expense a adjusted through expenses revenue. the of base deal our higher able expense income further as the versus across the and to was basis, expense and such that management last it on growth saves were several a we great the by performance cost efficiency. markets as our have we let’s both million million had actively in revenue the improved actions of to over in its XXXX major vendor our on year turn despite our contributor reductions saw referenced to Capital fixed lowering have branch we decreases core here equates disciplined Underlying the reposition base. expenses expenses expenses $XX power And well. $XX We gross we and continuing continue for did Slide over of approach slightly reduce about achievement to earnings last XX. years spending. X% Bank expense closures, to businesses, and Now, from The increase The supported with discretionary we also

gives our fourth to We by strength and track company we were able XXXX record will customer management the from adjusted merger. basis to our our to are driving operating ratio in IBERIA to positive substantially gain our to from our down make be to us and expected and that is able continuing we the at technology critical ability on some believe basis XX.X%. of efficiency leverage, XXX further benefits efficiency quarter And confidence scale in our initiatives success. By efforts, expense points XXXX bring efficiency an the this experience reinvestment future about finish significant

in were the and to trends only with XX our linked remain million quality, remained underwriting discipline. provision we quarter asset both credit well with to quality excellent $X throughout our declining loans expect due the on maintained Net delinquencies as we and year-over-year largely and strong stable. Slide as loan the quarter strong Again, remains year trends credit charge-offs credit our to growth. Turning growth non-performing at

the basis XXX gives our loans result we are of of in adopt XX estimate allowance will XXX will a CECL quarter to that points. expected preview Slide impact, We basis which of adoption of in XXXX. aware, to you points CECL ratio you currently as first

term portfolio increase reserve an remain longer to in reserve reserves and acquired a and largely loans. Other to are for experience previously due the marked loans relatively will stable. consumer We establishing expected commercial

we slide. repeated reserves and close we reminder, and at bottom the these will see have on transaction half a of the an laid our As the IBERIA impact also when out them we

and brief and track already engaging employees, for both remains activities see acquisition and a On closing planning. the in of Slide application halls XX, on holding update addition in the to regulatory steps branch planning IBERIA have process merger several we you integration and town completed our integration commenced

quarter transaction expectation to Our integrate second to the IBERIA that current the close in branch of merger sometime close and mid XXXX XXXX. is and the

Wrapping up year again transformative for on XX, was XXXX the us. Slide

favorably Our despite and meaningful our and business market in benefits momentum mix challenging successful our balance growth out earnings on execution franchise, improved model. We deal growth shifted and strong demonstrating had financial our Bank sheet business customer showed efficiency environment. generating Capital complementary showed XXXX our rate our expansion. we by We Investor delivered Day. earnings funding We the of the that our targets strengthened of in laid and through the

markets, opportunities IBERIABANK in the acquisition Our us our our expand equals scale tier enhance of and profitability. top with merger growth Truist and attractive lead high branch towards will

Momentum We have, XXXX. Bryan. into are continues I across our That’s all done. business not

capital our We over grew Thank environment successfully targets set despite past out in deal executed great accomplished you, year past momentum financial BJ the and the bit, We rate BJ. strong of Truist. challenging our shareholders. have Day. employees all merger. and their that communities from we the continuing into the ended our opportunities little Investor on the We To the delivered year. a on hard of we a integration and repeat on see the branch with from to over earnings bank of work our momentum Thank as MOE customers, our our all work for we our that behalf you year of acquisition we with on XXXX and IBERIABANK

With take we now that, questions. will Sarah,

Steven session. will begin go the now JPMorgan. from first Instructions] Please with We ahead. comes question question-and-answer Our Alexopoulos [Operator

morning everybody. good Hey,

Good morning, Steve.

morning, Steve. Good

as I for I margin, thinking core work are want near the XXXX? mean, you term here, start to the as BJ we about on NIM as, how through like well

Yes.

decline quarters. in think into There our of the relatively which is is of seasonal that usually is net one would to of what and higher yielding to of I interest seasonality say I a the companies, So day counts XXXX, would trends margin to expect businesses, type Steve couple stable related next we first through remain thing. quarter mortgage loans

the the be dip over of quarter, would the got try there have So first pricing deposit quarters. hold we couple generally a on could to stable the that factors and discipline in side but because those next we loans of the speaking, given that relatively side,

Okay, as the X.X% runoff, think example? and I as bias we X that’s items range through Day as that the X% range, middle helpful. at in then time look impact CECL decline over should you stay that of the is or to non-strategic assume we for And we disclosure, appreciate the the of such

Yes.

into we unmet. I There effect know, are think of use impacts is of really CECL. get as as future significant you the of largely views economy the the CECL

we the expect are XXX assuming it then points I we that how if basis as view future the is that to economic the largely same stays. environment would relatively And today, XXX so

under Our not now as used is so and to non-strategic as of billion portfolio an it nearly big well $X be. impact

have think that largely So range balance if will sheet continue a we oriented which hold. then commercially expect, we I likely to

your potential Okay. capital hit at buybacks from thoughts does CECL all? around change And the

now. necessarily Not

with Of not till share be can’t course, repurchases closes, really. right, we that nothing do but occurring so merger, any pending the IBERIA would

are in moving another you opinion. think one I my capital pocket terms in from to of

strong. that think be excess So feel which with very our the deploying all tests, how for foundation again stress of is it we and will into putting capital we about

curious benefit this Thanks. And am the of guys a then you if do consensus captures I IBERIA look the guys new synergies the deal from post the you at SunTrust closing, branches, earnings company? the properly power finally, feel

answer no. short Probably, is

focus business the as it carry momentum about is to on think not talked I continuing in into to as have of beginning we major we losing business the being XXXX. integrate. that the sight of Bryan going got at our a run

our tough look companies has, own cost our organization, our of in that integrating types and feel the very doing taken today, one we things, we that’s done in how confident IBERIA ability same we two if performing are So deal. profitability put how deal, over it well the time we of and expertise Bank at of much have Capital you deliver together to from priorities. profile how the we that how Then these out expect have

Steve, don’t short think add to we we influence Bryan. in how said, this what To is consensus about BJ run. the

on what is not I we role optimistic and Our to only deliver potentially that on about said more both we we And make the over-deliver we commitments do the will more very openings, that am my transactions. of planning see I in optimistic commitments. deliver the in we these but those are as that

and both set and what over we do both we business said see going that’s day-to-day So creating see value we the our the execute to we these responsibility of are to shareholder are what do. earnings to recognized and to significant them transactions are out time. we that is delivering We manage of on

for Great. I appreciate taking color. the my Thanks questions.

Have you. thank good Yes, a weekend.

go next KBW. Gailey Our question Brady with ahead. from comes Please

Thanks. Good morning guys.

morning, Brady. Good

In your you to expense that strength opening said management the of be guys comments, continues company.

that to going out think How to deal as think last forward? not took point reduce $XX are beyond still notable? XXXX legacy the where savings. any here do are year and cost there You to about expense you that’s base another above of is be going related reductions X% sort you in and You or from opportunity million, the

is this Brady, will start. Bryan. I

that integration to next through and of going we equals but base to year in this two expense what’s really, IBERIA, in control out merger believe with it’s expenses the also with said the for. the are beyond but or need about on long-term. your there customers opportunities investments think as and answer continually the services to will will well as our looking BJ additional that to I how of IBERIABANK technology us merger think products to The the deliver legacy and allow invest that to associated short question fund the and yes, base other period in make to are to our we have us expense rethink as manage allow the about we continue to is separate and difficult synergies be side we really to our cost, that infrastructure will deliver that think I

ratio said, to I base, we And optimistic in merger improvement to XX, that go do on described. that you will transactions up I overhead showed improve we exactly have XXXX back about. our that two expect as our So see will greater you that it the in and XX you the consistently be efficiency of continue we BJ able consistently And years, expense throughout delivered am have we as talked efficiency. worked and have what integration

warehouse mortgage the we $X.X of that Alright. – mortgage That’s highest yield and in yield higher through also run was know I a your high up, all quarter. loan were talked continue as about billion finished you your and in balances the X.X%? yields, in is about it helpful. warehouse very you XX% And you still on then strong soft seasonally think does trend one one of will year-over-year XXXX at the up do note average How XXXX,

Brady, this business. is start. again. is Bryan will Mortgage I seasonal warehouse a

I expect quarter year you fourth a ago, up. I be expect $XXX is and could it historically million that, first as vis-à-vis But average down on quarter. to versus to the million be the it The that lowest would at $XXX look

of to broaden continue have customer and business. the and to breadth we share market continue gained our scope and we the base We grow

will creates in business. extraordinarily a value strong past, very delivering of our with believe returns the or said shareholder we fluctuations So tremendous while valuable seasonal we live have so It volatility. the we amount seasonality seasonal it’s and as an by it

is Our outlook the business, overall for good.

to are long-term business be the than continue good of in expect We and to purchase half we activity XXXX, we little low expect be less very rates today. refi is seeing to a

the are outlook about So optimistic for overall, in we warehouse mortgage XXXX.

what specifics few A to I said. Bryan would add

January look we than we If year to year mortgage compared days January. more we of you January just first last are were last the warehouse, double for where for the are where at XX average

net we mortgage months. of sized mortgage where large So, about and new the XX have year-over-year XX with to continuing of pickup been in from added $XX companies medium have good-sized business to increase average clients, $XX and companies, the able clients the number the we course we our million last over do to million warehouse are relationship

addition leading, to sustain work with on really deepen business customers That fluctuations. the in that’s customers. continuing and new So help seasonal that the great through in will cyclical even team to economy by bringing relationships and some

America of question ahead. next Ebrahim Our Bank Poonawala from Please go Securities. comes with

Good morning.

Good morning, Ebrahim.

follow-up of think to on first should at to basis wanted quarter? deals the in half be accretion either about least how Just fourth relative margin, the the you the before the close the points BJ, XX through

Yes.

on to was to year XXXX put so, loan on for it dimension in XXXX. quarter, just Slide for XX step here million. would every we continues That nature So, in the you, be than accretion down lower by accretion the $XX right, was total

you not The CECL, purchased away or it that to accretion all which the other loans. that’s the even factor have from going some, is takes acquired impact lower drive of of

next quarters. over So, the will to come down continue few accretion loan

okay. it, Got

step from guess. I bps XX down in the fourth the So, quarter

like Yes, averaging if something about you because a been quarter. have should think we were it we XXish –

down but and quarter. was million a million, around was to two Fourth Put low. together dollars Third the quarter quarter was will abnormally abnormally a couple right it continue of come it XX the high.

terms timelines to And that and XQ That’s the safe without said to IBERIA the from love I you a savings fantastic but IBERIA I just management. back the year? around assume second helpful. seen quarter the you a end expense getting as could its the last and ‘XX expense a going deals around deals is to deal said, has expense know historically get of we close on And more done confidence have would you TCF deal guys like given savings your by done the by of mid or little just Bryan, XXXX, in have just the it the job great color job

talk by just of from and expense just savings could that plan run you how do see provide the year think in ahead deal can that If to a on – first I the good of how of that could we this? the year? any you would or to by amount terms through of like, love color schedule the possibility integration of half the hear you next come savings end

sure. Yes,

reason requisite your we this at regulatory second So get shareholder question of and have the to and no first of that this was year. we quarter part timeline believe approvals the by point won’t

we to half late of first year. close So this expect

with on in as So very mentioned BJ They number the your team done as rolling the very, the a the integrations and point, base we has mergers is and far so know required as of experience ball everything have is over strong. track been years. there IBERIA have and that filings regard. made we the clearly, To

how franchise shareholder our products need we integration a very value focus this and very good a of lot in over seen the these strong my only together so The execute we on how thing announced the future focus deliver that these is X in me further very, that place as be their but And services about strong step merger build won’t on that view we right how the way long-term. well And their and on in these as I the stable ours, a to and encouraged been the years. on out base teams think strong and that have coupled customers there the executives in we experience for announcement are for transactions. the our ability have has fundamentally and coming The not roll has I think the I for commitments, we is planning and to these back with way really when organization. delivering and

this So back fine-tune optimistic prove to without would that no will fall I synergy time we going of expenses trying that. may are throughout there that that numbers. of to say is And think we upside where our I half year, the hit am over I

So gone way the I get is combined this to-date. I plan am about am and the together vote, has to approval love I in that optimistic together team the organization. the the we the process working planning manage bringing through as way to team shareholder the And excited combined business.

That’s great to questions. hear. my Thanks for taking

Yes, thank you.

Tyler go Our comes next question from Stafford ahead. Stephens. with Please

morning Nice quarter. good Hey, guys.

hi. Tyler,

about following guys year Just of momentum you reflected is a the on questions chose to estimates even the XXXX? moving up on obviously, acquisition, and the lot one not given this earlier why there provide a power of out in basis standalone guidance purchase just IBERIA of the Street earnings not company, branch perhaps with XXXX curious combined pieces of the coming

Yes.

of that We guidance. as don’t call I guess, provide bit think Investor we Day guidance a you can form think you out little unique. speaking I generally know targets did, I a was

I you on remained talked half seeing and the we there pretty what good will continued some We market We a through listen think business given expense if on earlier Fixed margin. discipline strong. of we our what momentum, deposit focus comments, of take good you some we in opening around Bryan away, said are first for income us loan and Q&A pipelines of discipline the level and I our and to the maintained level in trends the strong pricing. feel about key direction rates volatility what of can year. remain the thought

and a knows Now continues start going get business with close to momentum get quarter. are fundamental together, first noisier we the come to going deal into things the again we everybody to as Bryan to are said as but it’s and IBERIA little that seeing

we thinking million the you X% that, ‘XX XXXX loan I Thanks, for Okay. came for growth down step last perhaps standalone to mentioned $XXX expectations, year in on mean range roughly had good X% that could should that Bryan about trying growth ahead for warehouse to think but about XXXX? triangulate growth mortgage just you but in XXXX, for a a balances, a think what just And that obviously basis is of BJ.

think mortgage a growth. of think come that, little that’s fundamentals had I will Yes, growth feel would bit, good, range loans but but rest in really, great It we we the strong clearly that to company appropriate. low the going continued, to of really Yes, if so. feels mid such single-digit I back the to be really assume that

Okay, up for the employee or any was more then expenses, core quarter-over-quarter year or $XX us step $X thanks incentive basis of one-time any with only was increase? you for FTN kind up like compensation the call expenses looks that. give up on drove just hire million one or employee even backing can for on Thanks. just or what me catch on so. color Can guys expenses, share a up the it expense on it that And million color up that in comp? you that so you Did the

had of side year end It the Yes. related that bonus but on variable given then It variety was volume-based incentives driving as results. well frontline income comp well we the year was accruals things. corporate strong as much a as it, fixed to of overall both

So…

BJ, result higher am high was FTN reflected was a Tyler year. And this wrong, step me the of last didn’t in was compensation numbers. that referenced in recur expense quarter settlement may and expenses, correct that those as because but if up the you I legal

point. good a that’s Yes,

for Yes, thanks that.

that I was think was taking a of the regardless, account, step I up. FTN but yes, into definitely that a driver

that. appreciate So I can

for me. guys. That’s thanks it Okay,

you. Thank

ahead. question go with comes next from Jennifer Robinson. Our Demba Please SunTrust

Hey, Jennifer.

quality, asset Question stable relatively you morning. this good be on year. things Hi, indicated will

were but just small it also a days wondering XXXX it’s franchise in charge-offs performing low think how kind about business of how know restaurant going you, And net so these wondering forward? you for just that’s I lending, your Your Thanks. given pressure?

on Yes, And our quality client the we Bryan what seeing based stable outlook at well. on and asset touched point for this Jennifer, portfolio. I are remained strong as in has sentiment our know

in to be and and clients increases terms existing new and servicing. disciplined on continue disciplined to of bringing We clients around selective

side and bar, bankers think for so as a that. I critical is our long-term Just sustainable selection portfolio really I add client that a would great throughout job with do

thing because local I having officers presidents and the model where we who about market great business doing to need the markets come the if a know table, have clients the think are up you and it’s the to we and day-out. that right to step market situation those attribute in talk and that’s do people you do with, in day-in see to always that credit that’s who of something

performing labor. quality So portfolio asset on from though we board good finance the which various That that very both selection, others seeing threats. hearing franchise and franchise and and I wages sentiment you are is different in across tell brought and the team The of clients are way I thing opportunities customer but concepts way one both follow in business well, around The pressure quality and an is even we on is underwriting, they the about that really would area, terms very the strong. that is of is the discipline we look finance client feel no the book. for

states was talk went a do we and That higher a about minimum with you that many have also customers lot wage. So to expected.

that closely. that we so clients And it in their have put watch is but run-rate, these something

Great. Thank you.

talk potential IBERIA key thinking the seem wondering of about retention Another excited competitors Bryan and just strategy your what of you disruption. revenue you reported very is Can producers, Thanks. how there? one question, merger about IBERIA’s yesterday are about just

very people focus, it’s our our is, us absolutely. important all the you even a are to of merger, Yes, are time. When is in reality the that a of but business more

organizations. it the how our way fundamentally starts as culture serve about we think the bring we we do we a credit, fundamental as And the together and how customers culture similar where really of a and And we spend think so really working to team want thinking create serve be time really, about here the at a customers. way way we we as two communities. lot IBERIA about with their with people we hard how business, these view to And really are

much in business. of And expect don’t do change way the so I of of bankers terms any our on we very most

We clearly in given that are the that have were we the branch role our we that to the been have that very able going organization. overlap facing have for also to frontline to our customers bankers folks limited say a

are think to to to we about to to very are committed to So, us they we are committed are we committed serving but we business. that going customers are disruption, that the people available organization, their how much and create don’t use all tools the also the growing ensure thinking

or whatever optimism we clearly when understand of full people place I with keep a products customers better very express, may might community, better in knowledge to they to work and a the communities. are than all So, bankers to be together, and but keeping put very, and up businesses going hard serving are we these and in for their services express to great customers momentum engage build they going better serve job our

Haire with Casey from next question Jefferies. comes Please go Our ahead.

Wanted touch worth deposits because liquidity. were a quarter they billion. given to this Thanks. everyone. post these guys obviously potential around a those once for worth this liquidity, bring lever all NIM a be lot could The guys? close on level the for profile of next year you net deposits up defense What’s $X.X you reasonable time that close, net deals, do liquidity morning, the Good

That’s point. then funding that some $X it’s Casey, on Yes, deposit Yes, good little particularly build attractive of gives and very net we cost incremental the in markets. net, branch profitable billion BJ. business acquisition Truist can us over loan low probably a a a

the those branch of we and process thought then letting the basis deposits go over at deposits XX bringing the billion net $X and time funding is reshaping finance market on corporate index the for points acquisitions case So, on mix. further

see excess what And companies simply we will market gain I loans idea gap how index in inventory. for of the think is so deposit it a immediately where will. further. an Much and we forward of What or growth income two deposits, is net of we fixed yes, to it then to in those together mortgage trading because levels today with you companies benefit put use we to we be necessarily want can’t that in that second like if funding half give leverage the need yet will clearly and movements filler, we year going the our clearly expect do types you a really

that And is improve and our mix funding well. it as though to certainly continue the key point will optimize so acquisition IBERIA the branch we will with the merger

NIM sort NIM this going with term stable just near it’s mortgage you like against it the is warehouse sounds quarter. even Okay. the stable of And switching outlook, core to –

on deposit offset You this mortgage of still pricing that job some room quarter, push and lower core warehouse? to a guys is there the some the did decent side

the It bit is LIBOR There into so. deposit rates, effect pretty when comes through. think actually much I Fed to cuts a when flow pricing takes immediately. of know you Yes, leads whereas little lag cut a rates – well down a time as

quarter, quarter compression so loan And the the through the dynamic quarter made with on deposit the reflected believe more yields pricing the deposit to Those a first see continue in on we the into benefit quarter. rate on side bit. changes moderate the will we that saw will yields where but which pressure changes the third coming in we fourth margin loan continued of the that we into started pressure fourth

we our couple correct coming mortgage I relatively see a to either quarter what So all-in-all, to the I that think and will loans headwind, all-in-all, yields there of on fourth I stable where is basis theory can be and balances ended will here a your company see today. being points side margin but that, of help based down

continuing us capital as wondering the on like are here. give just trending markets, one momentum last flavor ADRs it you where was the to a is just I first And into year-to-date? thanks. if sounds Okay, quarter

of through We so the $X.X fourth first a we the had in and Yes, think $XXX,XXX which XX XX, day. days was million quarter I the year great. I are between think $XXX,XXX

where of first to at something quarter. in range the expect around be are levels we we so And between the those

comes UBS. question with Brock next Vandervliet from Our Please go ahead.

Great. of is that more really been of forward? lot $XXX here, Tyler’s BJ, of around expenses, on had $XXX Thank there $XXX million is parts you. core moving thinking going to the too be know I the just a I but optimistic million more wanted closer on in range I probe should to expenses, million in we question to terms

probably fixed $XXX how not probably growing. the but higher I million, that, think probably lower well million it’s has range income than it’s than given the $XXX been

say first going range would appropriate this year. the I more in million, $XXX be the half would $XXX into So probably of million

on income. think depends you all fixed it Yes, about how

Yes, exactly.

the is Okay, I expenses biggest Henry, think it of system, overhang, right and and a clear in you now on it – also And when your have at integration third-party, not, is that you the Jack the systems can internal around excellent. on is terms it and when think investors? share with made can that you do all if will is topic you air decision

can Yes, little Brock, either clear Bryan. system, Henry internal is this going Jack bit. to be it I etcetera. a our or It’s Hogan,

decision think I that is relatively close.

days the will some doing to of or made be in work be evaluate angles two evaluation thereabouts, of are I going sets We systems. XX and the decision one next those it’s various to but some that expect and

wheel different. reinvent something are to completely do or We the go not going

think a to keep So quickly be and we solved fairly be going moving will organization that that will the decision are I here.

you respect and expenses? And new with you result around dynamics in bracketed kind that think you decision that of could that are already Okay. decision expense do to of think or guide

to any potentially, on And we value I adverse the in of as have think have maybe that we was we something very down that in and we think that expense don’t estimate. decision have make in decision that in we what but systems there of we achievable account something think a estimates think terms guidance. impact our an the we forecast, terms about laid put road took place together in how that when have to into some together, put announced our all out we deal laced will are of have going

to expect I result adverse So don’t estimates a our that. impact expense as any of

you. Thank Great.

You welcome. are

comes Wells question next from Our Please Shaw Fargo. go Jared ahead. with

morning. good Hi,

morning. Good

employees Just for or and opportunities to up opportunities maybe still hiring you for I looking of being Truist seeing to customers say? were in you go deal, creating any any offensive is yet at on or the too early that guess the that is it tied with able otherwise terms

the market, triad there know does triangle presence markets that, impact, it excitement. Mid-Atlantic area allows to tremendous a is Carolina have this – a XX the early Bryan. North where do create in very call And Jared, too in us It’s little Mid-Atlantic had but a the it already clearly have the we of the in days that it it impact, full in the to in of announced we basically a probably is particular. XX to since positive and particularly amount

in are building terms and branch of We franchise. years doing XX, XX work share of branch

positive us impact. in And think So that has positive a it for will we long-term. be the

about that acquire are other did to the that excited branch We in opportunity transaction. an markets we

to part XXXX see the it think term mid it I that very quarter for of will thing a that second you quarter. I longer sometime in so and will second we be optimistic start us. And momentum early positive am close And building as

on of to be And average going then million, just the $X capital that ceiling, given than that it $X.X million wheelhouse natural sort a ever or the that drift in outlook? is Okay, daily solid of great. to business current the that is see is revenue sort hard Thanks. now given the the higher right structure markets

Yes.

least the ago, right right. dimension couple look think to quarter income, harder at XX business are I bottom of you that. a for for about we it if flow two. average a and look of to a gives revenues business, whatever But think is how where you in beyond fixed at bit said on near today to the like daily Slide think slides be term next should It’s think at had, $XXX,XXX how the the I or minutes what I we over we

the market has So been direction helpful, down be been volatility fairly but healthy. coming the economy to helpful, rates state of of continues has

business view as economy back the think market volatility we fixed to had was income quarters well. you and a If really to XXXX, were the favorable like there in on and when rates direction really, very XXXX, big negative

all think is I ceiling. of to this that is that So don’t say

to Now, are margin there stronger having we on we don’t it fixed be saw economy average of pressures like revenues the what benefit state necessarily XXXX. of which launch we in but to higher, income the what if be drive countercyclical the the exactly daily is would

base back, like performing there is has opening business that when still job revenue of The strong very come the activity management and margins our my team over volume such did better. and last years out I an expense incredible profit comments. couple said the repositioning So in got done

years that the expense. at generate as in we for $XX revenue, you incremental X if for of the look expense every ago, would roughly every results of if So an $XX the $X of graph, Today, have so would or X so we will you or revenue. example, leverage or in it’s $X

So help improved on profit only that on upside things us they have margin and will mitigate which the the and expanded downside.

with Our ahead. next Garrett question Please Baird. comes go from Holland

lending for loan on The the softened Thanks good industry and HX good activity performance in what’s could morning. calling considerably. driving just for growth. had hoping improving a on follow-up I has I pipeline was your C&I XXXX? elaborate data the you

there. had this strong out will pipeline commercial though we core that’s growth commercial, And in what year-over-year I our have a teams call so the are had even seeing are we that quarter. not market, we Yes, specialty good

expansion markets. we have we of additional our or what know you in markets our some – As call, hired bankers key

Houston of some Florida bankers lines as our of and continuing to hire So business. have specialty Mid-Atlanta,

with So to banking institution. in over that of addition right to, customers, the I’d being new time to different say, bringing day-out thing, Rolodex just attract some at new bring have in might the have that bankers talking who another and in been can doing existing able day-in clients bank,

good have as feel at So looking these it. we growth opportunities. which I good about do we And only I continued are discipline earlier, type are about said seeing, feel growth the the we of but not around

operating the the do the maybe then training good And calls improved as IBERIA the and with past the larger core lifting move and bigger a Capital picture performance question, notably insight about you. as that. you hours How through you you much Thank integrated sustain momentum in Bank outbound integration? heavy provided company’s work past involved you

their as that that conversion training this as into trying the it impact one, get to is The to compartmentalize much some as is communicating with schedule around and Garrett, extent anecdote to It momentum. the is a Bryan. customers, does start best as allow people you do our care reality communities. core in integration to them you take which the to can small that doing bankers market they as of bankers and Susan just continue will customers the of group is to our a referred what are

and out So smaller we as window yet. laid that the try integration are through to to outbound we calling going of schedule a communication any have can. full compress We don’t

all the Bank over one weekend integrations, integrated of we these out. to do of how With Capital merger, we be are all our conversion. could all did it we and systems going it’s yet And clear staged not

and team then as our business, is organization on our and community integration. the let’s and activity the on our growing and focused let’s the the worry stay talk side look, same focused to bankers let’s things So IBERIA happening the we growing stay about customers focus integration on let

minimize can to that. so we some small we it impact invariably And are will while doing what have

the That’s taking helpful. Thanks for questions.

Thank welcome. are You you.

question Marinac go next Christopher with Scott. Montgomery Janney Our from comes Please ahead.

off I that provider, go you leverage of part customer, positives merger. you that are Thanks. along that? that the there their the large wanted some you does a months think any such to and core maybe can of few with give To are Good morning. their that business, on risks largest fact that Bryan and BJ, what just after extent I are systems reinforce conversion does the a you

reference Chris, this Bryan. I Yes, is evaluation.

part have got clearly, evaluate are that’s what as being of you to systems direction, think we if that And we ours. I you go systems decisions. at running one these are look

of Bank systems are For America. example, running that you are run at

So $XX they are perspective of infinitely a scalable from billion organization. at banking least

terms what work to is is we the does ability and and over is going the the systems mean have If scalable how to the and you in the part reference of that invest grow on – systems and of in that’s the that’s there. do it to IBERIABANK testing your long-term

a evaluation it best make we systems grow the to We trying and get in of to integration business to customers serve decision. us to that the system that to we landed when our leaves the our end the communities can cost deliver for position lowest and are that

a complicated awful so it’s So people have as next we decision, fair said amount or spending days a it. there expect And a earlier, at is of lot will XX of but decision I on it. looking good time I

Okay.

and the merger evolution is So still your there in associated? covers I cost long that room charge that on of is kind for presume change

Yes.

I decision question that. As don’t think adverse – deliver anything expect from Chris, that referenced any here will any I I that the today to impact sit systems as earlier, don’t we

took think an where would I that through you that it while conservative achievable it’s front way say I deliverable. end say might the approach and on thought we the

So expecting adverse anything that. I not am from

it. Great, Bryan. appreciate Thank you for background. I the

Sure.

question-and-answer any like concludes would This closing our over back Jordan Bryan to remarks. session. I turn the conference for to

Thank has if company. if this or Please any you you, know in wonderful our for questions. and Sarah. you interest have hope appreciate information our weekend. great let a everyone further Thank I us call joining We you you. morning. additional any Thank again your need

presentation. The for conference attending Thank today’s concluded. you has now

now disconnect. You may