First Financial Bancorp. (FFBC) 21 Apr 232023 Q1 Earnings call transcript

Hello and welcome to today’s First Financial Bancorp First Quarter 2023 Earnings Conference Call and Webcast. My name is Bailey and I will be your moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to Scott Crawley, Corporate Controller. Please go ahead when you are ready.

Thank you, Bailey. apologies on technical this and have you everybody logging had morning. morning, for difficulties any might Good Thanks for results. joining discuss First us on today’s Bancorp’s quarter conference first XXXX financial Financial call to

Brown, section. our Participating call presentation the Relations Jamie Chief the release Officer. Officer; on Financial accompanying we website are under Credit Chief Bill Investor Chief the will Archie slide Anderson, Harrod, today’s and at Both Executive www.bankatfirst.com President be issued Officer; on and available press and yesterday

We to call. the reference will presentation accompanying in make contained slides the during today’s

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

turn call will I Archie Brown. the now over to

Scott. Jamie and you, results morning, everyone afternoon, quarter. details. call and the announced on then our recent few level our for call. further to our turn thoughts I thank Yesterday first high Good over joining for provide financial on to performance a provide we Thank us will the you

of slightly The respectively revenue with compared year, XX% pleased $XXX and strong same and million. with total increasing first quarter income increased company quarter the linked very XX% record was Net to Financial I quarter. quarter our The both am a for First achieved operating revenue from performance. the last and

record business our strong Bannockburn X basis quarter great income, interest strong income net an and were Division. Yellow and point interest growth, results another our quarterly Our by Wealth from loan net driven increase Cardinal performance leasing in margin, from moderate

these increase deposit increased CDs X asset funds funding the rates. occurred months XX. in of The offset of outflows slightly first deposits, flexibility From investment the of X majority first XXXX points. significant Average business linked the XXXX in our quarter outflows increase the the public short-term We through was during as exceeded a classified primarily were available-for-sale quarter, quarter increase first increase balances in The yields from basis maintain March the total beta was in costs brokered loan-to-deposit our in And by and which our quarter the we seasonal. as and an of as standpoint, the deposit liquidity also was ratio of effectively the manage XX%. portfolio, which continue to through in quarter. XX% and from retail XX% first

in the from Credit declined charge-offs quarter. were quality linked percent assets slightly remained non-performing a minimal of stable as quarter. and Net total the first assets

changes slower and Additionally, loan the quarter, million in driven by during ACL growth, the economic prepayments forecasts. $X.X increased

X.XX% ACL As increase percentage point ratio as total basis a X which a at the loan from coverage end. result, of a year balances, was was the

We are our quarter. strengthening capital this the of pleased ratios very with

in Our a point in common rates increase tangible to profitability recent ratio. basis XX the our decline equity and strong market led

increased share per X% value book to tangible addition, In $XX.XX.

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

and Archie. X summary financial everyone. Thank X, Good Slides you, our results. X morning, provide of a

solid excellent, stable was asset As expanding loan and by elevated performance first driven quality. margin, quarter income Archie stated, fee an growth, net interest

expected We during deposit react the continued X current period. basis pressures. environment, positively hikes to anticipate margin points balance contraction pricing interest our Our fewer sheet in the rate rate margin due modest interest net near-term the with to increasing to and

in Bannockburn residential loans during the mortgage the other the C&I, an growth stable Fee in with basis annualized again grew once adjusted strong quarter. pleased quarter posted the and with remained an loan results balances strong and basis. resulted with first compared X% Summit first in and the quarters relatively were the record growth record both mortgage headwinds flat to portfolios. on quarter. leasing quarter quarter. Management We another income Total books income on in Higher fourth banking and sustained had Wealth for with rates have

from due Non-interest contributions the expenses declined tax to incentive linked write-downs, fees, lower professional investment costs. and charitable quarter credit

we end, were year elevated anticipated due to expenses While compensation slightly higher income. incentive related to was at this fee than

the de to minimis Asset due Classified quality quarter, stable three during during relationships. downgrades the was during increased assets period. net with primarily quarter charge-offs the the of

which in the the growth, by million and $XX.X model. prepayment period, Additionally, of expense recorded loan speeds provision slower driven we was forecast during economic

standpoint, a of income coverage points. excess basis our targets. our regulatory internal improved in the Accumulated From comprehensive increased ACL result, capital a remain ratios both X period. other and ratio As regulatory by during

and As X% or XX a ratio book result, by tangible tangible increased our basis points. $X.XX value common improved equity

earnings, our earnings the are adjusted million understanding we costs other not items to Adjusted $X.X per our recur. $XX.X believe performance. exclude highlighting was reconciles income or X Adjusted quarterly of Slide of contract $XXX,XXX for of and million that important costs earnings quarter. the to expected net impact $X.XX to GAAP share termination

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

margin interest quarter higher offset to a due from and Slides linked during increase was asset mix net elevated interest basis This the the by X.XX%. balances funding period. of asset yields XX, driven to to X increased costs. partially points yields more profitable increase an rates by asset and The increase earning in X Turning in was

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

floating securities. basis rate increased due to the slower on XX securities of investment repricing addition, points In yields mortgage-backed and prepayments

points to quarters. we Our competitive expect in increase cost pressures reaction of in quarter deposits to further and increased costs the XX basis the these compared to fourth sustained coming

fairly of positioned well as the quickly. believe two-thirds details are Slide our balance near-term reprices XX the in we approximately sensitivity of portfolio loan asset We sheet. our

in to through-the-cycle our cost the modeling. first Deposit beta net on our the expected income interest to utilized with with Slide XX betas approximately velocity XX% XX%. be greater increased current in quarter, moving details beta

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

continue believe through balance to We have sheet we manage flexibility expected the the environment. to the economic required

Slide current linked changes compared to loan balance and XX mix the illustrates our quarter.

I before, mentioned equipment loan balances As C&I, driven increased an on with X% growth loans. basis, and by mortgage annualized leases

were portfolios loan when balances. other period-end The relatively compared to flat

is our industry. to loan by provides a We diversified believe loan sufficiently Slide protection concentration our from provide portfolio deterioration XX particular in details on industry.

XX provides on office loans. space Slide some details our

our LTV and mitigates of and lending is We against book suburban see, the can assets X% total concentrated the expected loan is strong. footprint that of the sector. borrowers portfolio of B general Class less the overall our risk Class markets you broader across than to believe As primarily our strengths office in space industry in within A

as of primarily linked our average the This deposits well offset average shows In mix brokered in by increase million million in as from XX increase a declines $XXX mostly deposit the deposit total, quarter, and business quarter. funds deposits. increased the $XXX driven CDs. balances progression Slide during public seasonal

our well public average personal, to trends as uninsured Slide deposits. capacity comparison fund as deposits and borrowing our in XX a our of business depicts

first as stable continued in is This relatively post-COVID record were quarter. declines to in from the to a decline related business as seasonal primarily the decline. balances typically high decline deposit personal experienced first well While quarter, deposits balances

we recent of failures, a decline. major was some the in deposit to While bank the business reaction this saw not runoff driver

Our customers to in states fund some balances by balances public outflows. addition investable has decline driven funds seasonal in to been excess moving managed by

to can see you slide, the deposits. of at right of XX% billion $X.X were our This bottom equates the XX. On uninsured total deposits our adjusted March

believe deposit are with We balance. any stress provides borrowing this comfortable to larger our to sufficient concentration respond capacity would our that event and flexibility

and to Slide Non-interest higher excluding for quarter. lower history is quarter. our Bannockburn declined for quarter, primarily the on operating with and compensation quarter Both highlights income was million and the XX quarter, On demand due the charitable in Summit soft which fees, Management those basis professional record quarter had posted donations the non-interest to another strong of compared an current expenses to Summit, remained due fourth expense $X.X and the in the quarter, Consistent mortgage Slide XX. Wealth period. linked best incentive another businesses rates. outlined the

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

quality loan were First the the of duration Despite fees, expense, quarter de by and the in provision quarter. Net which during increased expense remained prepayments increase slower was stable. growth, economic driven provision the portfolio. charge-offs minimis credit forecast

relationships. three increased to million $XXX However, the classified to due of downgrades assets

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

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

During the have the increased from drag reported. XX improved ratio Absent would income March remains basis compared the as compared to book and the points on TCE first ratio linked capital our X% quarter, our tangible other impact increased $X.XX XX comprehensive X.XX% quarter, earnings. due been but or slightly TCE strong Accumulated the AOCI, to value ratios. to a at X.XX%

in regulatory We unrealized the that excess targets, portfolio. this remain our of Slide demonstrate included XX ratios the would to capital quarter also in securities losses including

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

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

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

Thank you, Jamie.

comment and end to guidance, want be a continue XX. to growth to found demand forward-looking can our Loan remarks, be remains Summit Slide significant prepared contributor on we loan to solid, early our year. I Before this expect which we on

growth segments However, in overall we’re selective the near-term. digits mid in certain and expect more the being single in

utilize will to continue cash flows Regarding securities, growth. the loan portfolio to support we

There balances deposit demand subsides uncertainty and additional stabilize rate Fed pricing our the still loan near-term expect gain strategies to management, We is around competition. deposit traction. as in pricing and seasonality

driven thus balance cycle. margin expansion substantial asset-sensitive Our far the in sheet has

contraction forward moving based expect with between in increase. We X.XX% second to additional X.XX% range the quarter a one interest anticipated rate modest on

uncertainty rates and higher impact the of remains our regarding to the much and Specific inflation to credit, customers. economy

coverage ACL quality and continued stability to Over the second be we higher. quarter, credit slightly our in trends expect

to be expense second income expect million $XX growth expenses, depreciation in and expect Specific from primary which the $XX the business we portfolio. leasing includes and driver. quarter the to being million $XXX We the million, in the with leasing to between fee $XXX be million between

expense, second to lower we leasing slightly the be expect in quarter. the expenses Excluding

ratios current level. strong, the capital Lastly, at dividend our to and maintain remain our we expect

its near-term the uncertainty The quarters the is for had still challenges and there regarding economy. industry

we have liquidity date. future Overall, and the was how record-breaking and extremely to outstanding capital. remain we years, strategic position to to We’re ample results managed strong and to challenges many levels those interest us believe clients pleased We’ve our quarter our our performance believe to due deliver our services efforts to levels, with consistent, business continue on well our manage the margin, profitability, first diversify net to we and shareholders. sustained uncertainty and and lines returns to industry-leading we in positioned our efforts recent of industry-leading made

We will open Bailey? for the up questions. call now

Instructions] Tamayo from James. line go Our from Daniel comes [Operator you. first today ahead. Please of Thank question the Raymond

open. now is line Your

Thank you. Good morning, everybody.

morning. Good

playing on Maybe how appreciate the of XX% where the you with just But guidance. the NII in and kind you NIM deposit expectations. first thought half that curious I we just near-term start beta. the – back a see mentioned of year on your out will

thinking could you’re how a If idea cadence give little year? that out of you the throughout plays us

Jamie. this is Danny, Yes,

outlook say, outlook of overall here the a on So just yes, our I the near-term deposit on we over would – XX, XX bit, think deck I margins. we’ve kind – little the beta moved been the so. we our our last from what’s gave earnings or mean on still in going up our days

about talking beta, when we want that, and we sure deposit deposit total beta everybody, not make overall thought deposit were the beta, – beta. Before saying just our for say interest-bearing to just our deposit we’re we

XX% total moved XX%. in about that of a total the XX mid-XXs, a call deposit it beta think that in So on to so everything XX, deposit were our XX%, before days going days, ago, in we beta and has kind so the – somewhere we in up little bit With talking low-XXs, XX last XX% the range.

to And see movement impacted. of and of moved did quarters. little so will expecting – into that were but think pricing couple that moved and next of our margin standpoint so the some accelerated bit, anyway think forward we we that – And obviously is I it deposit a up what I from be it a some just

think a think deposits but to close kind just – spot, significantly it’s cost forward. I just a I the So maybe cost funds from bit standpoint, get of different. total It we of higher everything of not little same moved and

the when to by in and with how forward access then low-XXs. the on perspective mix portfolio? compared broker do deposit what other you banks you continue the deposit you Okay. something and from March the that think non-interest-bearing the Or overall the a deposit going least mix just of you rest Thanks. brokered that Is And thoughts still to shakes itself, in happened environment? market loan-to-deposit ratio that expect the to on quarter. market out of kind was accessed at And low, at the relatively is look that driven in

it’s had and fourth Yes, were demand little bit. go if was we of that this you in just the loan – I’ll quarter. I our part most I that those primary you left source, guess been of along we’ve some it’s back, actually occurred can Archie. as before coming. but kind quarters been think let low-XXs a quarter, And the for couple we later sources, that of like primarily we is first outflows in source we quarter March – we’ve to for gradually think was some. – moving X. and Maybe loan quarter team that a But tell, with that’s order, of of the funding. think and We’ve something move broker of stabilize we’ve first in into it when support this now, our growth, it’s Danny, deposits – other probably We’ve hold anticipating were left occurred continued flat picture. the we And of we were seasonal continue Jamie and in to that up. kind see layering with the moderate But it view knew there like this on deposits FHLB. that tag primarily needed. our And – to think some to some going just But is the how I loan I We

AIB maybe first And when base quarter, was of of anyway. looked some at mean, deposit coming so the We the were we during and – on occurred in our And those the I business the the that part in two-thirds did trends seasonal happened about the if year. two-thirds deposit January we mean from that and business side, both at in – into expecting two funds March, drop coming drop year, I about and we Danny, the side. public on what look obviously, were outflows, side That a we in really about that. we flows of categories, and side But our expecting February. the some – it seasonal into forecast. drop And the public and fund in when about expecting looked the – deposit – in the at were the of trends, you exacerbated month-to-month those deposit internal two-thirds

and those of the – occurred it’s really – accounts. in March. is third then lot So it obviously a But other

more and Management off not the customers we top it, some and/or moving into our operating accounts. saw we they also bank side. potentially It that their – it movement diversifying call – the lose to of just public Wealth balance, – yield, and was So didn’t over funds out balance lopping some get investable

I funds seasonal you quarter, have the shows the XX that Jamie slide last quarter. think good always public Danny, we a in – was covered a in uptick you’ll recall because Slide it fourth in

$XX out million, like looks just surge. we with, outflows in there – that million that you in was the general QX call in deposits Jamie And that from said, balances quarter. a some quarter. in of then can the as seasonal the the off uptick And we the about So see COVID rolled had first it’s in along business $XX rolled that what fourth

Yellow to with deposits typically little they in say, our laddered Cardinal So again, of and on news less treasuries. Wealth and little mostly out that of things these it overall is the that primarily was where a banks, anticipated. there our moved There are than certainly was of base. a – after bit, bit X% of little some we two a I’d unit money But deposit the our bit

Great color. I that. appreciate

from you. Thank line ahead. of go next Chris, McGratty from please comes The question today the Chris KBW.

line now Your is open.

a you on were – color Jamie morning. you about remarks? get I prepared credits bit can can talking Archie, just Good in Great. your more three little the or

just a Yes, Chris, I’ll to little give have color. Bill here you Bill?

haven’t when what Well, we’re some COVID. to the tied the much issues that the mostly Yes. missing office that was really I during of midst said, was seeing inventory is, inventory this fear, there struggled as really out what that But And COVID hangover, quarter, rebounded one downgraded is the of the – over during chain well to hospitality some in small really it as businesses other due right at look take tied we to – some has of in very lease most a in the launched to some period. that supply out the three as COVID in properties. hotel are to as of remnants assets that

potential of of your guess, how been, terms, credits? on loss reserve, I last I to three this mean these And couple quarters much incremental about been have specific should or I building just you how in guys the have the think these quarter,

over these cover there mean is of say of downgraded factors. in the the amount reserve get to due couple really, incremental significant I terms a Chris, is relatively last I’ll the things to insignificant. of would really it’s piece But terms substandard. quarters to part, more the the is I as first of – over in small the the piece due of it would last downgrade Yes. credits two say, Maybe the reserve. I – build

at overall coming is, have the a forecast what thing, then bit. out under you slowed, have prepayments and rates portfolio, Just are on And which it up model then longer reserve. a macroeconomic the required little higher is, obviously speeds that, spits loan, we’re the the – looking duration then got loan seeing moved life and a bigger the as you’re of CECL, through impacted then though that the environment

So, bigger those the and have the seeing how terms why that factors really in two environment of you’re is that been reacting – to reserve build. model the

So was like address point. potential asking you Chris whatever losses any can potential like maybe, at three in Bill, – or – credits this those the losses about

material Yes. the charges I this treatment anticipate don’t them. mean this point, each we point at at of on any various have strategies We on assets.

still process We’re the it. on early work-out in

Thanks. Great.

Chris. Yes.

next Scott you. comes question the from go Thank The ahead, Piper from Scott. Sandler. Siefers today Please of line

Your now open. is line

you. guys. Thank morning, Good

Hi, Scott.

Team, to I the question to mix just again. revisit wanted wanted – deposit

around come still have of but the levels non-interest-bearing down, XX% So are total.

of I you for think go think level about back we it or you we going little prior that sort bank or was [indiscernible] are do a that? – Do to it like the do how blow deposits regime through new pandemic. this to just XX% in to see

Yes.

acquisition general to years maybe so I you to years XX% – market this XXX% where bleed – at when those But think I see specials, get interest-bearing, XX%, mean a I what I mean to X does we those down. point, that and – it not to sure. money X our now, – going migrate to and starts from that of levels. to – out or think am we’re ends those percentage are to I higher strategy CD slowly have in close are back we it mean mean, specials look down levels I we start over levels. shift at you deposit I I we we think those where

regarding I then And questions of want understood make margin you. to couple Thank to I ago response ends Perfect. up where just a the drifting. your sure Okay.

had of or you good a back maybe floor sort eventually. of X.XX go? we get do to down floor X.XX be margin beta, where a just would of higher there the the Did little kind I a could going just bit faster, – for suggested to think is we given previously, are of sort – margin that the maybe the we lower

Yes.

was year. – that into quarter think in margin before, the of would where the the I more in we migrating really have – – that kind this down X.XX comes were the maybe into high-Xs that – floor talking of so been where the X.XX it to that about fourth when in a to – the

comes the so that settles. think migrates the a that range. down I and quarter given And out eventually could are that this bit that. even It quarter but more – ‘XX to I little And into think into down just into going X.XX be of the higher to X ‘XX, we betas floor second first of see, the maybe

bulletproof and sneak Alright. what’s been target a changes if generally of going aside I are you there expectations so, do more the could rate for or, you your guys then outside just really not And by Wonderful. broadly, deposit are of impacted might are then speaking sized required if banks regulation. Archie, so in. haven’t you the you to on events. of more of you guys regulators going purview That’s mix make And guess, even target issues, industry fall feel conservative forward, last might sort size with to? other Even explicitly or just from that banks I month’s one then that sort good that final become sort color.

credit. and view were economy even And how already, I more of about My conservative anything mid-March, in and happened before contemplate it a securities bit terms we making in the you, manage thought where would different already sense would we we of for tell know are there. I going Scott, little I how think don’t in was available what we taking a is sale. that the we book just

in I slowing. even that report, COVID particular, probably segments, to real – our some there, the think commercial in we estate we during alluded book we were

I So, probably view there more that there. specifically. our know don’t of how we manage changes it conservatism really liquidity is

a approach manage see but to in continue we industry, the balance how to will we think measured this of, We the how kind unfolds will I general. sheet conservative for a take

Okay. Alright. Perfect. Thank you much. very

Thank you. now from Please today Terry The next question comes of Stephens. ahead. go your from is McEvoy the Terry, line open. line

Everyone…

Terry. Hi

Hi. maybe lease a Maybe expenses? the you first I when call, accounting of refresher a on from had the growth the revenue the you acquisition, how so it as there provide too, of some business through those fee we is could also build will and kind yields drive that efficiency you a be of generated? and are on made just And accordingly? third the expense it yield an current what so out side, realization, income of then can are fees maybe ratio went the discussion essentially target residual about

Yes.

it’s will maybe Terry, on touch that. I So, Jamie.

leases. are And they generating finance leases. doing leases they the operating leases or then roughly So, obviously are operating and rest both currently, so finance and XX%

that expenses the that bump it, depending – around of “coupon we Xs, the then but the obviously that the Those kind to overall, in leasing the we look a have on you X. then call through – right income, depreciated assets. about the you through and the when at that the they then of maybe the range. fee of to look two that our And fee the guess maybe we yield” side, get of residual rental it’s fee And side, I a income when income ratio then will at there. in leases, section. operating of yield X.X yields, about I the – look kind so somewhere So, in runs in parts. relative income question typically expense that They X-year well, ratio life. kind the run through guess generally other put I up, in then, residual to X.X:X have kind income month, and fee income. – of kind I now, X a at of all-in will we income When your back at down yield business that look around on get And runs But also answer mean

Great.

That’s Okay. Thank you. helpful. And then…

on to – that the building. company I yet Terry, selling that don’t when are bought to that probably still sheet. originating building like. this a you what We is Archie, They the went know looks we efficiency, just it give primarily from are we there and right was balance

the be stabilized kind of So, built at get today, you a the sheet a are lot of to a get that years more more sheet it’s than to going to to balance be going ratio look more It’s couple be. to that seeing what way efficient efficiency balance what will builds.

office average that details origination, at that then? I XX%, or that. office – Thanks since been was for follow-up, sorry, am LTV refreshed appreciate is that a Very on That I helpful. the And or – updated as quick portfolio. maybe just has the of

matured. as updated Yes. That’s loans been

are pretty We process. early in that

very go. have we they as updated months, few several they next the get maturities, Over but

point. more at this So, towards it’s probably origination weighted

very you Thank much. great. That’s

Thanks Terry.

[Operator RBC from Jon ahead. Jon, comes line Instructions] of next your line Markets. is Capital the question open. now Arfstrom from today go The Please

Thanks. Good morning guys.

Jon. Hi

is I just want good to say a quarter. this

We I have margin. back go struggled to through a good. releases lot to and want of looks the yours

And margin cut is let starts to increases the the or got of downside Fed Jamie? if anything rates XXX guys about sequentially. you it Do have have do you or Slide have had later, X.X%. then down a the monster it ride, cut XX, of that, how just protect impact to do think you in and margin the rate you in got You couple –

Well, yes.

say I some would – of, it, in is I there are is call bit it’s significant really down of doing would that a there. providing what I we mean the there mean I ride rate philosophy let little it things. So, call two I work protection. terms also

So, floors, in what buy do I and isn’t to down would feasible. doesn’t protection for that. rate XXX, severe But – it we some protection call putting really down for can

– rates we where we in protect where of – margin pressure trying low range really when to our that of down that where the to floors back during X.XX% rates. look really to some back some went beginning had our COVID in are in you and putting plummeted, period significant If got margin against that

would we providing just what extreme marginal protection And so at the some – rate for not call not buying looking movements. I – for cuts, the Fed protection are

margin Okay. compares the you that’s it’s this, and range Good. QX clarify quarter, that asked did that the that X.XX% – X.XX% X.XX% are about, to core right? every that you And get to probably this to but quarter, last then just annoying is you talking

would to all-in X.XX% range we compared the that Well, that outlook, margin in the yes. and gave be

Okay.

So, is X.XX% to loaded, that fully the guidance X.XX%?

All-in, yes.

Okay. Good.

good have variability now. mean which accretion the It’s the this point Yes. other steady the and are fairly things point. a in are, ton income a fees, of anymore of don’t is we have variation at Jon, loan we I really

and the months? Archie, of any could the last over mood in Okay. of behavior six borrowers weeks, corporate couple kind the say the changes – of last you over but

how in of Jon, I doing? are they their and mean think just you terms outlook

commercial, kind XX% I kind business small that that’s am of that franchise, And of Yes. like thinking of the like stuff. more about book

current from they still Street, showing are demand. expectations of we have you, commercial, tell in Oak bit are good as equipment primarily it’s going to can loan growth They moderate mortgage near-term, well. kind leasing well. doing the I Yes. come and little our still group, a But of

in I a are from look over some outlook, them, – the you when nice decent the at is we types demand still companies you where coming of when really are negative, the But further out. those few think go months, they there think next months. next few the some loan more little with we talk

one. They hit get once Good. probably for big don’t yes. are waiting know like Okay. the I us –

Okay. record And on then up And question you I was leasing, following just kind on take-out as non-interest have Terry’s lot of guys records. last of Bannockburn well. think year a on income, a

non-interest the maybe out near of from If bigger medium-term? you you income, what in line to take expect in leasing, some do Thanks. of kind items

just $XX generally Bannockburn million as and we quarter probably a think you $XX will with in out. of go Well, Sure. million start I range I kind are that to

hitting the I up on. at $XX think probably of more this million one recently, are added a we that’s more – salespeople little a coming a little but high here, seems one near-term, are another level, level in sustainable $XX thinking a couple coming they million,

they can and level run large continue we is of will consistently. kind It’s that of for line it’s Wealth well, doing well. do that more doing at us. well, So, think not to as a

about not going as think I be market up. big but may as is, charge it Mortgage, has the do uncertainty do of the fairly as grower, improvement a you long into seasonal stable part stable slight well. know been well It movement, I year. holding middle pretty to seems of us. to as Service lot a we get We some for is the to expect going some have where is in mortgage obviously that’s But soft. think see there as income go.

than a see do that’s couple performance little we seen of that’s think better some have in bit inventory, But we Some of I availability quarters. last will of rates. interest the of mortgage

those think bigger probably items. the I line are

Appreciate That guys. it Okay. Alright. helps.

Jon. Thanks

additional time. are waiting this There no at Instructions] [Operator questions

So, like Brown remarks. ahead. for would Please to to closing over I the back go pass call Archie any

and the Thank more call our today Bailey. for everybody quarter. you, about joining Thank hearing

are overall pleased again Bye look really day. quarter. now. to to forward a and with great next quarter reporting you We the Have

you conference your concludes for Thank all call. This participation. today’s

your now lines. may You disconnect