First Financial Bancorp. (FFBC) 27 Jan 232022 Q4 Earnings call transcript

Hello and welcome to the First Financial Bancorp Fourth Quarter 2022 Earnings Conference Call and Webcast. My name is Glenn and I'll be the operator for today's call. [Operator Instructions]

I will now hand you over to your host, Scott Crawley, Corporate Controller. Scott, please go ahead.

Glenn. you, Thank and conference everyone, quarter for us joining full Good to thank discuss today's results. call XXXX fourth First on year morning financial you Financial and Bancorp’s Brown, on President Anderson, Participating Financial Bill Officer. and Chief Officer; will call be Chief and Executive Officer; today's Chief Jamie Credit Harrod, Archie our issued under www.bankatfirst.com the Relations section. Both we the slide at yesterday the press presentation website accompanying and release are available on Investor during to reference in slides today's call. the presentation make We'll the contained accompanying

forward-looking statement XXXX we the Company's or forward-looking any contained will in well Additionally, our as quarter to reflect please The to for will statements the disclosure the fourth is we accurate not call. discussion of earnings as be information after refer today risk circumstances facts this factors. of as December updating release provide and a XX, SEC filings full XXXX,

I it will now turn to Archie Brown. over

thank call. financial joining the XXXX. Thank everyone for full year us you, our announced you we of today's and for results quarter afternoon, and morning, Good fourth Scott. for Yesterday

I to outstanding would some to provide this most Jamie, from and performance. the over the Before like highlights year's recent I quarters call turn recap

increase by increase XX% third we XX% record achieved income. a of net and and pleased per assets our exceptional which fourth our many million from levels. ratio improved quarter, return per common increased driven on efficiency adjusted the earnings fee Earnings XX% extremely quarter was Diluted am share diluted I operating revenue interest in $X.XX, with were $XXX and a share was on in X.XX% XX%. income to

from XX asset points interest and softness sensitive deposit client Summit, more noninterest offset in balance The yields margin income. growth was mortgage, record to our X.XX% which Rate increases expanding service with sheet, asset charge quarters increasing to continued our due to fees outpaced income in Bannockburn derivative costs. than as and impact net basis by positively

growth at million pleased on in broad-based with basis $XXX a $XXX the quarter, million annualized also is loan increase XX.X% increase Summit. of which a an were very We included and

in XXXX quarter of expect growth to moderate and to We uncertainty. loan seasonality the economic first due

we fund in modest deposits. accounts; offset business base transaction interest-bearing was The was public deposit inflows our to by XX%. stable result During outflows a in experienced and seasonal however, and ratio core deposit the quarter, personal loan of this a

of quality remained to by assets period. XX nonperforming assets our points for the total across with of point portfolio, XX% Loan net strong basis and X declining recoveries basis

outlook slowing economy. total increased during the and Our general the loan prepayments due ACL coverage for slightly U.S. to to fourth the quarter

First XXXX, a XXXX great per in XX%. increased was and for X% an a year share Company. of resulting Financial. which compared year the compared to $XXX to increased XX% and ratio prior adjusted return a to million, on was Revenue assets X.XX% Adjusted our adjusted was efficiency a for earnings of record, $X.XX record

XX% grew income Funding by and by to acquisition a $XX interest rate a by record for XX% our XX% increases drove Net the as of with Bannockburn revenue income increased catalyst, providing Summit fees million. year fee new record while grew short-term

as the of our in from Company the broader fee the pressure we Our impacted we that have industry are effectively insulated pleased income diversified sources recent very much acquisitions intended, that they and XXXX.

them an contributing over XXXX. for exceeded our end Summit's XX% high of which year, growth exceeded Funding, from to expectations, We was loan XXXX. year, we for growth surpassed contributions acquired pleased Summit and increase the million were and growth. the Company's Loan billion all-time from strong $X XX% an which included representing for at originations the the of $XXX overall broad-based, the that was

XXXX. And compared points strong Net a decline XX or to total of points of assets points assets. nonperforming basis $XX which loans, were very was Charge-offs basis lastly, the in year. total declined basis XX point Quality Asset XX%, was for XX million, X to basis

to some in to now Jamie? over the forward-looking discuss these call wrap results up with additional turn more I'll discussion commentary. detail. that, With James I After will Jamie's

everyone. quarter and and X, summary a morning X you Thank X, of results. our financial Slide provide Archie good fourth

Archie performance excellent, interest loan As quality. driven net and elevated margin, by financial outstanding stated, strong fourth quarter growth, asset income fee was stable

to net in We zero to balance rate near Our asset with hikes anticipate sheet term the expense basis due pricing points. expected increasing stable sensitive the net our hikes to continued XX pressures. interest positively react margin additional margin interest slight to and deposit rate of

Bannockburn during widespread quarter. quarter across robust fourth on with fee to grew best again fruition fourth with our diversify multiple the and these quarter in from loan portfolio. come the during annualized histories. see acquired lines. it once results we goal sources, with Summit quarter. strong their the income was posted We When XX% Fee basis the Total the to companies, in the was an particularly two satisfying that record loans to pleased effectively both business income particularly growth growth so were the was

as banking rates activity. to impacted mortgage higher mortgage decline expected, continued As income interest

wealth the business tied following our exchange income year. due incentive to higher earlier another income the performance. elevated slightly stabilized Non-interest primarily and expenses company's had changes Our to expectations implemented overall in compensation than overdraft solid program were quarter and foreign

during declined the of net We pleased assets front a of credit the million non-performing Foundation Financial on and basis to made total period. First basis XX contribution the X $X.X we were with assets. point points to recoveries Additionally,

we prepayment of during recorded asset and quality the expense strong, remained period, provision by driven $XX which was slower While growth million rates. loan

basis increased ratio coverage ACL points. our result, by two a As

a internal improved increased comprehensive equity excess the tangible Therefore, other relatively was both period. and ratios income From $X.XX of book points. in stable Accumulated regulatory targets. tangible our basis value during by remain common standpoint, XX regulatory and capital our ratio

for $X.XX are quarter. our Slide understanding to million earnings share the our believe reconciles to performance. income we per items highlighted earnings, net that $XX.X X Adjusted GAAP was quarterly adjusted important or

of on average equate return As return average X, tangible depicted on adjusted assets of equity a ratio of common efficiency these and an earnings Slide on XX% X.XX%, to XX%. a

from Turning Once increase offset interest rising XX, from partially primarily resulting asset linked to basis funding to rates. yields and again, in yields an XX the was quarter points The this increased costs. by driven interest higher by increase asset increase was Slides X.XX%. X net in margin

As a increasing result of rising rates loan basis yields surged XX asset yields the with period points. during

points backed addition, In basis mortgage XX yields investment prepayments increased on rates and reinvestment to slower due securities. higher

compared quarter, in costs environment. reaction Our increasing to an XX deposits basis cost pressures increase competitive these we points rate further third to from and of expect the increased to

of rate increases of positioned expected as loan in XX balance sensitivity Slide the Slide net two portfolio thirds asset approximately well our the details We fairly details interest our quickly. modeling. sheet. utilized re-prices income our betas remain for XX

velocity with in our increased fourth the the costs remains unchanged deposit modeling over quarter, relatively full cycle. Although greater

Slide XX outlines capacity. our various sources liquidity and of borrowing

through have flexibility environment. current balance believe the manage changes linked compared expected and sheet the continue We XX to we Slide illustrates our quarter. to required the the to economic loan mix balance

before, increased. growth while ICRE increased with to Oak the XX% mentioned annualized Street Mortgage every of basis also franchise. the balances and except largest in loan I on linked areas Summit CNI, portfolio The for were Portfolios, an As quarter and growing compared

the linked increase, competitive average XX deposits increase the $XXX positively balances our of this quarter, well which driven Slide in deposit of stable, shows brokerage average the mix million relatively deposit a balances given In primarily progression total, quarter. Outside million CDs. we in as increased the by as viewed deposit during $XXX landscape. were

charge in the quarter. reflected best Bannockburn another XX quarter fully flat wealth implemented year the expectations. Deposit have Summit solid for now as our income the our a Both non-interest Slide materialized. and of compared had highlights to income those of quarter, service in was the posted the impact businesses the third and a surpassed which quarter, history relatively bit early normalization program changes from which management

higher quarter pressure due On performance and expect Consistent solved as expense demand on the for with the for from XX. linked is this $XX.X third to an performance. increased overall Slide as quarter to the incentive Bannockburn Summit, and outlined continue rates was on to compensation well to million Non-interest mortgage expenses operating the compared further XXXX. to excluding we quarterly record basis tied business the quarter, company's primarily due

$X.X credit to recur expected first the $X.X adjustments foundation In include of acquisitions, financial fourth Operating costs in a as investment million the write tax downs and addition, consolidations not contribution other costs. to made such and million quarter. we branch of $XXX,XXX severance

quarter. XX, and $XX the an ACL X now both of model ACL to in point year, loans our which resulted This the Turning third of total expense total basis funded in a that million the period. allowance, $XXX.X Slide end increase which was during unfunded the provision a X.XX% at and from of includes resulted million was total reserves in

increased expense basis prepayment points third expense, the which We the recoveries basis remained driven annualized and point loan asset growth to had provision Similar stable. quarter, our in the duration declined total to provision by net non-performing Despite XX an basis, while X portfolio. was slower of quality of assets strong on assets. of the increase speeds,

to remain We increase or macroeconomic to slightly our as the periods coming environment. stable the our responds expect ACL coverage in changes in model

ratios on shown Slide minimums remain of and XX in internal targets. XX, regulatory and as capital excess Finally, regulatory

a to comprehensive drag basis $X.XX stable Accumulated X% ratio quarter income the been compared increased strong the the year the have other to X.X% XX to due impact fourth TCE During tangible our on quarter, relatively our TCE reported. points but Absent from would the linked ratio increased TCE value compared remains as AOCI book and earnings. end ratio. was

our near-term the our dividend period attractive robust with return any to common Our an return and changes. not do shareholders, XX% believe earnings total remains We during of to through shareholders provides anticipate returned our shareholder the approximately our dividend.

to continue actions evaluate However, as we capital year will progresses. various the

our over I'll forward. some it back on comments to Archie? turn going outlook for Archie now

Thank you, Jamie.

comment guidance, end forward-looking prepared to Slide on XX. I can want Before our we on our found be remarks, which

deposits expansion many benefit this sheet Our expect that we variables The remaining although expect rates, dependent to and will first quarter quarter of are magnitude continues a asset upon the the continue range upon balance timing, to moderated from and we to X.X% is and impact based X.X% to there Fed. margin anticipated more rising to competition peak in the rate increasing be interest increases. sensitive for

remains uncertainty and of and much rate hikes customers. the credit, Regarding the to economy inflation our impact regarding

in quality to coverage our continuous quarter first slightly credit expect stability trends the be ACL and higher. Over we

quarter more $XX We expect and quarter. leasing normalized million foreign fee the and our fourth exceptional of after $XX exchange between income level be in to million income first with

incentive expenses, between we lower given $XXX income expenses to $XXX and Specific fee with million expect million to performance. be

in As see expense included we'll our operating lease growth, corresponding depreciation which portfolio grows, range. is

a our achieved direct want very high strong outstanding is The each levels. we remain current at we and their result ratios capital to at our other. a associates Lastly, of to for performance our commitment them and year dividend I our to thank level. expect communities, clients, executing to maintain this our

and financial of have results, we While to we're execution proud opportunities further improve committed to XXXX we're doing believe so. our we

As results. we delivering XXXX, on consistent look to remain we focused sustained industry leading forward

call We'll questions. now open the for up Glenn?

out Scott Scott, Instructions] question open. first comes is have line you. Thank We from now Piper your from Sandler. [Operator Siefers

taking for Thanks the guys. question

just out extraordinary. peak of I higher performance So, has you sort than like the It been mean, sounds have rate at anticipated margin previously. a might it will

protracted have down were given any for I like like do quarter, trajectory XXX now a it will might sort the actions thought of to and maybe a but come what you Jamie, how sense XXX get take think on I first there? saying maybe margin previously guess, the thereafter. then to taken, long look XXX you've you to might after it flow XXX, a

on yes, margin. so Yes, the

anticipated. is higher a it little definitely had peaking originally than what yes, So we

we bit that, the than quarter, a thought I we, think a at Scott. but little be even settling beginning spot where before, before kind would maybe the up So, in we maybe end of that we fourth higher

up, as deposit then end margin of that bit we of So we margin the the somewhere start would we and margin. that back little that's think that in catch XXXX projection to see XXX really have we really the deterioration Then I of that think stabilizes outlook, there XXX in will we to towards -- costs move get, the I the and as of that we stabilizes say and a range. would, as forward kind quarter really, are first

just mean does really, and thank much very we then historical really for returning in Bannockburn That's been your more just And It around I like said that separately, when previously, anymore? view right. That's levels, about I perfect thing's feels to what talk guess mean strong. great. but $XX that. I that have million might quarter All a you somewhere guys

was? So that's given how like XXXX is just if year-over-year, And it can too you strong grow that low. feel something still

Scott, an can quarter the customers and record lumpy. done add is, for is What bit continuing is is to base you their sort their incredible a nice Yes, helping a they've that clients in Archie. It Bannockburn terms of was and job of of little to such business revenue. quarter be this know, a lift new of roll

is yes, that if million. million compared of stepping And So, in last terms probably would think revenue. more to level base up we of you tell $XX the about in QX of that to two years that, is $XX you of kind the line

I that Their business expect a into did in to to As year, more talk it's what, far of that full get step but XX it. year, certainly who at the this runs would as just be and trajectory going with Immelt range, be maybe more. XX, I'm Mark least hair in more is as continue sure we they if not their approach them straight it, up, probably business a to a to and -- business deeper stair has we

spurts will off it for level So then again. go it a will big grow bit then through little period it will growth a

were so just maybe that faster even hold grew hair it year a last We more. we'll we think a And lot than year this thinking.

this is Scott, Jamie. And

million add we this year, They doing it. acquired ago. in were that time more essentially on $XX of that past mid of the $XX in XXs back little so roughly the to bought from acquisition revenue years thing It so that I another that to XXXX, Just that in look mean bit at in has in range when doubled revenue, three that. a million in the essentially that, fall revenue. so obviously just than you that we

So essentially it doubled. has

been really that we've acquisition. with So happy

so. understandably Yes definitely

guys much that's So for thank you color. right, great. very the All all

Scott. Thanks

Scott. you, Thank

questions James. We Tamayo your from Daniel from have line is Raymond other open. Daniel, now

Good morning everyone.

Danny. Hey

a going is adding just it will? on it or was the you what how curious strong take just might what this think just upside if mean, create to quarter, more adding want like outsized forward curious quarter bit about It the might little don't there, you just, another driver? into customers curious I'm I carrying just surprises going deeper is dive mentioned the obviously an just but I'm new drive you to primary -- of strong I mind. that and than Bannockburn, if kind a customers how forward? quarter

what we're is of it's be add that Yes, and larger sort continue occur a Danny, to this Archie. they And What they're a core grow to the very pleased with predict customers quarter have they of still in base will continues number and is just hard call then to higher. just timing. the and transactions we that net lumpy would that move

more happens quarter. seasonality is quarter activity it that a little more have a little think that I traditionally their got where in has fourth they

economic you, then that volatile, know and that is inflation your you're of to and get you combine you and done that, things concerns, of again we're lot know, This Bannockburn. to with about some activity end. interest getting leads for that the is for a rate little things catalyst a in bit think You a activity surge you companies little environment concerns just There's in. wanting close a more to all

it They'll inflation $X was in it of one they a heading clients, have, QX, million. adding had or perfect with probably think seasonal into just I interest that a, really new of kind things I combined in, activity it's month combined. best lot was issues, the so probably rates quarter of a economic QX activity So those and quarter seasonal, the for their back think was all

like So they spectacular. that. this quarter It's have other was just months

the Okay, helpful. touched income then leasing Thank business as you. major was And the in also fee other strong on. you very quarter

for leasing Just looks like curious there's the outstripped and any outlook in expectations business? the in if kind the quarter that what maybe of fourth of kind if XXXX

I significant these has lot were the color certainly will back about would, from levels growth. which Yes we our contributed I in QX to Summit activity think expecting in in know, quarter our and they more it, talked fourth we've, that we QX. a you normalized come to

customer where got those leases that for down they were fees program. of Additionally, out a we some wound there relationship additional the wound

quarter. little So to that added the a bit

have going So we won't that forward.

more item is volume So that's normalizes, up why as the sort year when little move steady, that's we a of said their it it their just to see that the but fairly volume normalizes, heaviest. half line back continues as you're to in going ramp grow, up of

on costs go we Of well as expense depreciation up course will as the side. the say,

be more QX. half And back bit the of had we in the will it one winding fees seasonal extra down of because customer So little in lifts again, a with of normalized year. just

And is Danny, Jamie. this

outlook So $XX $XX the million account into there. that in Summit -- in normalization of with we that, takes for of in presented quarter, that the and fee income both the Bannockburn million the those first to

have more would to So those a coming level. down of back trend what that kind normalized

No, yes. appreciate I it. Understood,

So more the and what FX modest obviously side, on then is in we're big somewhat normalization looking for. a leasing probably

for And a normalizes well, the as also expenses piece, have Bannockburn lot expenses to of because related we Bannockburn. correspondingly that the variable Yes.

included that, as to XXX of the and and well that obviously expenses. in XXXX So, we

Yes. Perfect.

for mostly? lag. those a Maybe is, like really the biggest timing those fourth on anything quarterly of recognized just more because the on You I was businesses there kind range any get basis that's it those just that the you in or comp a quarter do out guess us I question expected -- appreciate but is is an of just there's annual but a played curious the got if businesses, of my quarter, in there. expenses last two gave question little detail, the kind first

so good had, it's we so question. a Yes,

For them the did so some acquisition, incentive of then down expense. that's range. so And first piece them an of hitting the ongoing we foreign annual in piece have you quarter first an it additional compensation, certain of expense see an earnout would which both threshold, coming in kicked have triggered hit of and reaching that because an bogey expenses a, reason elimination a exchange quarter business, a in normalization back the part a the annual of the annual is like like the in XXX revenue certain the in the that revenue that you almost call that the

it. it. the for I appreciate very I all got That’s Thanks color. helpful.

Thanks Daniel. Yes.

Danny. from comes you, next line Thank your is our question Well, now open. Terry, McEvoy Terry Stephens. from

Hi, between thanks. does connection or Good hey, related XX, business morning income the questions that does Maybe impact last to volatility that, FX? everyone. revenue followup when expenses quarterly the all is that from just that, and X expenses, how the between to on to leasing goes really

any maybe it. small, number. but were was those volatility related the of to didn't it type of or related on that was million, we business Yes, not $X.X have was small to All on in it not XXX,XXX -- variable and There from was was fees received a lot the fees cost really a really that term really amount, Summit the FX. XXX,XXX, end leasing in leasing more but

really FX So level had to we that and related in related that overall of incentive and had primarily to the quarter, also two the the related side it the at was in was was Bannockburn. just compensation expense additional we fourth all, corporate but some strong Terry, the related there. And performance bonuses received things, revenue corporate variability we Yes. then it it was all the to, well, kind the, to, of on

at some some maybe of And and macro any retail are conditions Okay, portfolios cetera? higher given et comments office then on risk and feel CRE, rates, the interest that thanks. CRE

is or year Bill. portfolio, We've et office sure out over so, monitoring this expiries, the making very we're of Yes, diligently lease been the last ahead cetera.

very center as less at additional office of in is is portfolio and change so of the established it risk. but type suburban folks very in will we've that. medical, are more very, ahead an lot the we're feel good it getting mindful office office about a watching center, pretty opposed nature as today, of with we But We our we're on some properties, to A the lot operating So being getting impact business space. through have landscape, of it. of closely of that city reduce where

added of portfolio side, our estate, the The operations last really a over that with just to real kept more performed allowing and down on name They put sticking have grocery anchored the anchored Since office. on same grocery COVID retail the near really centers, thing smaller to the well. for couple haven't to that. have really we've or the lot type really book a bays damp on very years, that into go-to

taking I for thanks Great, it. my questions. appreciate

Sure.

Terry. you, Thank

question Chris our comes open. now McGratty line next your Chris, have from We from is KBW.

more. Hey, Hey with margin wanted Jamie, a digging comments good to start I morning. bit the little

You is which saying. are peak pretty most talked margins, banks about consistent with what

when derivatives? You're higher with to of one in it, be maybe guess you XXX some that you higher when like, your XXX the any doing what missed to beta you assumptions you point. be? coming steps deposit would then that number settle from I lock reference kind And can us and might remind rate would a where I The

asking deposit I about I'll on you it Yes, the send yes, beta, but over. so won pool good.

little So margin that ago, year, again, of that would really that, half to in XXXX. back in bit XX lower to in than I our maybe the XXX of yes, maybe going and of stabilize would've said from different XXXX in maybe back is XXX XXX little margin And a so is, that XXX to range. we days XXX to maybe I was quarter the bit half the you a think the fourth that that tell

little we XXX what that anticipated than it's to had higher So in originally bit a XXX.

the are XX% December, so modeling you're overall the terms realized And the when it looking type on beta, low cycle. talking in looking then And just the XX% quarter, in XXs, XX% in to we if maybe at that, at at deposit you're still at range. of of you're again beta the, for call deposit in XX% we to kind have fourth this point, depending that look for what

then, obviously like stabilizing but to but in XXX now, we XXX somewhere range. involved So and still in there's come again, obviously, a variables lot there's to that and more look then, this right of

preserve doing Okay. you're now the kind for cuts? futures if of market's to And if calling I this could, anything potential

at Yes. really I insurance our this a strategy point. And of we is be would downside, beginning when say you March the think preserving margin, about more maybe might what pandemic in declined that's call bit stretch. [indiscernible]. a mean, so it little some a back what I and happened little XXXX, the margin rates saw I buying mean, on to of the bit, severe when our rapidly, of our is

So in we protection, on protection, the I below but building more, X. extreme SOFR some in floor maybe is some more case some as I it buying say getting move LIBOR, floor, say in would would are that would

catastrophic it kind So but more this of call strategy know, I lines those point. at along what don't of of, that it's insurance, is more our

Okay. like And sneak a plus the just cash of off bond book, could ton if I got for in, you've $XXX year. million coming next the one more

you If talking that to mid-single-digit XXX. that's the growth about, you're map loan

place that feel kind could you Is run like earning with expectation? the the QX from assets would it in levels. So of

Correct, yes.

consumer side. on is on some it, seeing personal the on is obviously, and the seeing pressure deposit we're the account our especially -- everybody plan pressure balances side, So on

securities pressure, mid-single-digit cash growth. of at is fund that plan portfolio flows our to let off with so And the

an our ending asset relatively could earning level earning from we yes, definitely so flat asset And base. be from

a thanks Okay, lot.

that that and loans. that helps securities the and a you little that, things also, about other though mix, So Chris because the little margin that bit if that just does think so between also of is richer rotation it,

yes, got it. Thanks Jim. Yes,

Yep.

Thank Arfstrom you, Capital Jon Markets. question line open. comes Jon, from is Our now Chris. [Operator next your Instructions] from RBC

you me? Can hear

Jon. Hey,

a on ask good, there going first? Bengals the about pool who's to good. Okay, Is

No.

ask Okay. couple of wanted No? I Archie. to a I questions lending, on just,

Sure.

slowdown, guys think bit You understand year all that seasonal we about growth but you've lending? are What what think looks seeing throughout little that in of you in the a the that, seen talked like I do XX Slide a opportunities you the where and pipelines?

Yes, Jon.

for was half quarter was the strongest especially is. great We and back quarters, based. First, it the talked We year rebound Summit nice in great, for of little typically three in ICRE quarter said, we broad of slower and really the growing year, their saw as in fourth Commercial a that really first that the had about quarter because them. rebounded the a of their QX company, quarter. that's grew book a lower, little just some and sheet in balance Mortgage on the well. payoffs on on lower holding more much sheet, as solid we're And mortgages and mortgage type of our then -- even Oak that growth fairly stronger did for Street business well. a year. of mid-single-digit, maybe confident that we're bit in than bit, little I the don't little a bit

levels. may next balanced. of to in ICRE the It's we slightly some part be approach coming pretty quarter, QX, is softness where probably the just, be flat Commercial will As I as for growth we it's smaller they it's seeing the the in down. the, maybe stored still quarter. look pipeline we're see

continue bring will Group to the that be into they'll over Mortgage really them. lot a year. a and growth growth. growth of Finance contributing is to end slows will had here quarter. the strong provide Summit It'll slower, some first the to Commercial Normally, that but some the Our carrying first part continue be that for of year down in

Finance more Commercial ICRE pulling quarter. back the of kind drivers with being our Summit QX for Group, being to flattish So for the Mortgage,

any on how guess, the I provisioning touched of overall and through just Jamie, track on kind guy you but This credit Okay. to thoughts year? expect that

the that looking A that when lot quarter. would, loan growth of saw. it, at did we I mean I so XX in we're million Yes, driven $XXX the of million we was by

see million loan of $XXX in come that could you So more a million in $XXX the if a provision little it's a bit $XXX million, range terms growth to down moderate quarter, bit would the see. we short-term. quarter recoveries maybe in well point it's depending little But, the a we for as had of not obviously also basis on which net normally --

at or you We're going lot, even, up we portfolio this basis still look start of bit that to charge-offs to of continue look a but we're as you'll really but to at of it's little still to is growth see the and into into see if back like it, by the is deterioration think as would of to, see but XX I recession little any I offset charge-offs we to kind to normalizing, the ratio. if a think I we, a could up I not coverage real move XX the what see bit, in don't point, kind seeing way to head you now. head We move then, at would predicted to think points mean, loan the come XXX back of growth, So what that the kind move up, see. continue that, not, come at

provision from even in So quarter little level all growth the potentially but a of that kind and or is kind the lower. bit [ph] E&P that that, in maybe from here lower of into inputs, all the if of back we of saw that

point. not Yes, the It's in just…? seeing portfolio okay. the erosion you're But at this

no. not, We are

Yes, okay.

little that look what flows, a deposit trends to seasonal quarter I but only first number in composition? the point, two deposit Just at because of some deposit typical seasonal are more you the deposit ask sensitive terms Archie more. and this flows, in referenced flow does like people

last, the was what sorry, deposit? what's I'm

seasonal for deposit big was flow, How Yes. yes. us --

Yes.

starts the of public not buildup tax funds that pretty all in see for payments the in mid-December, bleed it's see big we -- out but the QX end finished by our to year. So of we a

just business spending buildup excess mean, that seasonal their that our December out And some we then the trend holding two changes. it's balances Those I I little a to think transaction XXXX, of our down bigger surge up that balance of there's QX looking in really our saw the back in of see in already ever. trend so quarter. We average been we and as the does. just So in are nice a a business bit starts as more of probably was exits the month into continues accounts. in months those and that a strong. QX, quarter. come But consumer The go of that at little deposits. aspect is come have All we first highest five then was in

higher Some funds, also the big I'd seasonal part to products. seasonal the bleed of surge rate that's somewhat trading and that out is in But some say out. back QX, with probably been that's business of public difference the into out along bleeds back starts

ownership? What more all it, allowed Bannockburn, a to that? been on of right. on why do them one do double And they've under Okay, answered think has lot you to able you've your but just questions

wherewithal, who clients, can that, was a capacity think when he independent were more other lines Immelt bank opportunities Mark provide I the could bank more and us back it were bank independent, other that we they services a having ancillary And time give into didn't things the FX. be as get that credit, of thought when always those capability, is difficult It He runs to having will, to able the, independent. just we an with that's of like Well, it what difficult. not of offer in do that kind have you behind to if didn't the they were to that to them. the things able get and

size, the clients got we've then say allows balance thing, So got just then the single offer that we've and sheet, gives I'd we've him the biggest everything grow to got opportunities. that's him that more probably to again

of great able been say well not more a they're working really some Bannockburn at bankers country, own Plus just as the to they've assigned and uncover what they done the yet. we opportunities middle a we've couple and our have been and but good made clients around with We've able book -- penetrating headway, market do. we've job

to Yes. gives the them sales the I this mean, as run I is other company. mean, an Jon, primarily acquisition also on to to opportunity thing, having focus the Jamie, opposed independent

good you. a Thank That's Okay. story.

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concludes and gentlemen. This Thank joining. you call. Thank you, ladies for today's

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