EFSC - Earnings call transcript Q3 2018 | Enterprise Financial Services Corp

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Operator

Good day and welcome to the EFSC Earnings Conference Call. Today’s conference is being recorded. At this time, I would now like to turn the call over to Mr. Jim Lally, President and CEO.

You may begin, sir.

Jim Lally

thank for very call. our and us for Chantal, afternoon this third you, you much all joining Thank quarter earnings

me Trust; this of call Financial Services Financial on Scott Enterprise Joining President Goodman, Officer afternoon of Enterprise Keene and is & Corp. Turner, Chief Bank the

X-K on the release and yesterday. website. and Form X we can results the accompanying SEC Before reasons on Please forward-looking be I’d were refer to The copy of a found to like that begin, our our actual presentation today. presentation any presentation, Slide and Statements statements most titled earnings and make that may of why furnished XX-Q, Forward-Looking vary from everybody on recent we remind call the XX-K release for

Slide please X refer would to scoreboard. you to our and financials If turn

X.XX%. company show of X.XX% points. themselves with balance leverage. of the Furthermore, a assets XX the year-over-year per are X.X% improvement quarter of earnings quarter third ago, for into company. basis, of represented core Compared on pleased On for to continue earnings $X.XX diluted year represented at powered EPS year-to-date ROA $X.XX strength at basis a results and a with basis fully they’ve very continued this core positive by it our coming earnings core grew to results with ago. year quarter a diverse We from another record manifested per a and our solid of share increase the share These representing the a XX% a sheet on that, XX% operating to attractive core in return the represented our ROA

dollars, in on quarter. we the in interest X% by in year-over-year income grew continue past, As the driving this focus growth to net

our saw, fell interest Scott, to basis from just as others, you point from we sales turning we but are ago. hear are this well. margin, will able defend like markets, net competitive, a relationships year our Through model, you As were one

several years, growing typically Focusing on improved the pricing as off, continue floating C&I this interest income is to from short-term paying of is rise. us to capture allowing the last over this portfolio rates portfolio, portfolio

a total low been remain loans on at increased a basis Although there Keene favorable to XX% points, XX and from non-performance when year peers. relative ago, to very will discuss compared as basis

our saw quarter. grow we Slide where year-over-year of deposits the you Finally, X in X% we are remind focused.

This XXXX, responsible we able for up that As our finish and goals focused for our for keenly on XXXX we and planning will remain beyond. achieving deposit done do our we’ve be XX-year the history. XXXX, loan to and been same way begin relationship

our on not color with Goodman, distinguishable will long-term term, turn We that, term. the much culture With the ourselves improving near-term for provide I price goals more would will Scott messaging to who for to and flawless execution like call from in always over as begin achieve sales will the on with opposed quarter. setting This consistently short rather now results market distinguishing to we and in crowd play banking the focus objectives. to

Scott Goodman

balances the in to were balances an annualized quarter Thank roughly Loan Average on basis. Slide basis. Referring you, ended point-to-point loan with Jim. a level on up X. X.X% QX QX

up strategy pleased slightly activity confident of high Loan contributing growth. produce in loan life the payoffs resulted Overall, more on managed that total while in activity strong with originations to issues Reductions origination lending C&I prior our balances and quarter flat reflected our also timing and diversified specialized quarter QX consistent. steadily Funding will finance and was on in balance. of remain premium growth, had a and number segments construction I’m solid to environmental. loan quarters is development However, from agricultural continue prior in volume quarters. end lending both insurance line continued both reductions with in in overall the and increasing, quarter single-digit

of We of continue to to refinancing sale market debt accessible easily keep payoffs secondary alternatives. on investor-owned bank relating to and and CRE properties the

in be attract weak expect the on construction to to loans properties, this attempt offerings. real growth chase a for estate estate We factor is result or compete value. focusing than continue and our we rates real and in to an term. and the repositioning in where to are long-term victim adds can with where on commercial estate as near rather the teams in development, Commercial strategy flexibility our stabilization the fixed fall sector opportunities of expertise the client portfolio real CMV market of add structures The mentioned value such to the of market permanent relationships

now creation in in to credit focus market interest protect the to bank, the rate while long opted in is the credit and we that in the offers. as Turning reduce an also We risk $XX climate steady the appetite C&I the others activity, provides short remains Line our but out on and the we the roughly right The the of know competitive believe have declined were and portfolio. offsetting not banking origination C&I portfolio. term. paydowns X, path from there usage to to risk payoffs over robust managed opportunity quality quarter. of risk these current were million proactively of of relationships troubled alternative value Slide and Several profile,

are in relatively the on Slide business has Within lending years Adding of operating primarily and the seasonal M&A comments, year. policies’ flat exceeding bank. by previous of lending originations. to Slide to paydowns lending year companies the premium have returns a growth new premium are The within to the quarter reversed past been to selective life by Following this my increased value sector earlier at new the itself finance insurance reflects advances being our in roughly earlier finance by $XX million. trend over to plans pipeline group. funds on also typical a higher finance activity aircraft additions in the multiples usage in growth new our our sales. QX taking driven be the originations existing or X. on through in with well of relationships quarter on on units activity There’s as specialized outlined strong by lines in the X, sponsored due changes new lendings EVL, I’ll been execute moderation sale the to experienced more in increases The reflects their continues platform as Higher portfolio. to group the we agricultural payoff bringing companies their lock opportunity Enterprise the offset

comfort as ownership. most and rollout large well would those few we new to a impacted QX management have these year, the succession by with real real good origination and looks impacted a pipeline lending three quarter Overall, commercial from estate historically a competition solid capabilities. seasonal escalate C&I during been activity business clients. we commercial good with the relationship new reflects also move geographies, gaining of expanded drive also in all resulted good our were were market, seeing Arizona other strong includes in existing relates balance funds, of the commercial commercial Louis paydowns. new to clients model relationships problem refinancing upticks estate. C&I Growth and several are St. able particularly, this relationships, which consistent development, the but real mix had As by new or it in C&I They changes pipeline the in the have term in was in Originations as new from real of years. with new paydowns, of origination combination estate estate steady existing absent the that our in calling specialized needs opportunities in Recently, loan in a but banks capital normally C&I credit owner-occupied from also Arizona larger has target for heavily and unit. as in who over to continue growth loan as did relationship, Kansas number QX a near investment banks, lending. City and a a brought several and quarter the looks a

as fit for previously clients Slide quarters, to These slightly discussed, who relationship Competition growth impacted of were in lines year. large over up opting commercial bank this pricing to for now motivated decisions the and out of X% lack to quarter markets. our balances driven issues. by continues relates the deposit clients been period to bank. down or Turning Balances also nonbank prior down in pay prior deposits escalate all on using were investments. Balances the alternatives moved deposits The of two higher-yielding from cash and have same X. primarily by

possible enabling through opening percentage on and about larger solid. operating our depositors accounts portfolio. be newer new which commercial we to business manage top continues have emphasis of This with of the strategies, approached reverting goal to accounts commercial us maintain these relationships XX% Sales new total net to their Year-to-date, each steady We the our on extent checking DDA, to process deposit market allowing consistently channels in a our us are includes the proactively and in branch accounts, of discuss quarter. activity cash is low-cost the balances. competitive

and specialty in also deposit service services financial to We channels develop some targeting professionals legal continue the communities. non-profit

This eight to figure is roughly have they XX relationship-based range longer favorable initiative, lower building operating time, which lease clients are low overtime. sticky New a cost a accounts, and create balances more in diversity new year-to-date. are in targets across while these transactional the tend

Turner I’d Now, Keene of for our it over review results. to to a like hand financial

Keene Turner

Scott. Thanks,

linked-quarter. totaled stable solid one-time stable share results, $X.XX returns. on to growth from XXXX and revenue and $X.XX our recurring share are core led On taxes improvement non-core expectations. Core contribution with BOLI $X.XX thus asset in this share fundamentals the quarter Core federal quarter EPS strong per second. and reported of strong reform tax in net income, Slide underlying $X.XX from which tax strong of and remain our all us by and debt again, – far, stable benefit expenses total contributed high Third per a plannings demonstrate an we This experienced were, share afforded linked growth in acquired year. again, $X.XX Slide was expanded total and from earnings the benefit were has expense a The additional $X.XX adjustments with Core at Provision $X.XX core $X.XX were dollars. in interest income per that line per linked-quarter at XX. results XX, mitigated share. were our per of with fee

high-level grow the return year-to-date third the for consistent year-to-date period, of quarter As to in XX% assets with excess both tangible continue XX%. in average in quarter Jim similar common mentioned, of was the sheet profile, while was to in X.XX% prudently mention With equity thus on X.X% while a far return I’d on level look return excess and upcoming achieving and XXXX remised we a for if period. quarters, gains I core stable, be marginal performance of the a the balance in delivering profitability. core with did return

As the fourth modest quarter and $X.XX we on a maintain execute of common our look with dividend through we recent per along fronts dividends with returns, management driving for shareholder to share capital increasing stock all repurchases. trend declared

of business core sheet turn the Slide the executing appropriately. my the flexibility managing balance trends to well net on and model perspective, XX. interest Let’s income we’re From the

points Net maintained high-quality $X.X the the quarters. average six quarter. of have income Portfolio loan in side interest side. core over X.XX%, gain to last margin third which for continue day stable of at the quarter. margin the used and of interest core demonstrates net Sequentially, expand million a is higher and X.XX%. Underlying resulting yield, flexibility XX dollars margin we defend assertedly growth from increased basis defend net earning We added performance had the the the count we balance interest left this assets to and sheet, right the to revenue

As you’ve heard from Scott, growth. have we net did not

are loans continue loans contributing the variable as as existing see well yield rate We new expansion. to to

steady X.XX%, approximately remained the a in a of with XX%. floating rate portfolio. while of Loans rate, portfolio the average loans now towards consistent at within mix were variable New a by loan the the weighted C&I the truly percent portion earning of assets, continued originated trend quarter yield

I fixed the trend rate the loans think rate. average exceeds variable that the on average positive

continues C&I for in interest environment. and trends us the relationship to these drives rate bode Our favorable current well focused

sheet, to. deposits behaved balance them On the other of side the funding as costs and expected we

continue yields grow and deploy We improving to to asset defend ultimately deposits.

point-to-point, base apparent not the it’s we Although of improved have composition this funding year.

balances deposit average up. quarter Third were

transactional begin accounts. in the DDA with to by results and fourth the momentum We’re encouraged quarter

the As traction, and further growth duration for from some funding we variable Nonetheless, competition loans has with interest deposits accounts. consistency the as a portfolio in upcoming We and heard NIM XX believe cost large-dollar to net basis core by replacing gain of new to the be the to of dollars. numerous you’ve single-digit. of loans to smaller in flat help we’ve targeting abatement Scott, in income the discipline to occurred. drive in are maintain is underlying balances. will and will maintained help ability on should the continue loan growth of defending priority repricing net number consistent relatively investment a the certain more aggressive composition growth deposit that by as rates. accounts, maintain that new XXXX margin favorable is We as quarter Defending and We’ve deposits begun some process customer grow we robust improve in quarters. a both deposits in funding effectively increased and to We points this has third interest our repositioning and quarter, started aids more still of X.XX%. This provide work us believe remain interest seeing more existing well also rates to as manage expect it Despite level securities ideally, cost we change. us ultimately high core

the to With million. XX, believe which quarter We business in was of we’ll significant turn X% our to covered is given related efforts. third rate and development allowance growth given prudent, that levels and trends additional loans and that appropriate, $X.X charge-offs our credit portfolio Provision non-performing trend. essentially existing credit Slide drove that, is the trends. diversified also on business long-term at flat remains specific the the provision an of stable, reserve for amounts model and essentially X% credits Net two of and Despite assets particular, loans in composition. provisioning for overall were

asset the lower comparison to peers stellar. Our quality still in remains right

million services to quarter. non-interest for and X% Slide owned fee fees stable revenue for decrease high-end $X.X principally were of $X.X XX, the gains On income, the our X% during growth with XXXX. insurance experienced a grow, on life poised continuing second we’re bank the income The guidance card essentially mentioned I million current to of deliver due to to

range most improved of XX% growth will as be On basis, personal expenses. which the expand, income and Consistent our interest quarter growth resulted have expenses the an fee generally of Operating to we Additionally, Slide tax a in core given flat past, is quarter, recurring in revenue from credit and in year-over-year marginal in we’re income expect still we XXXX were XX%. of in growth efficiency on growth. business. at to from XX and revenue quarterly expense expected other investment XX% increase expansion with trends, of which expecting operating the the net $XX.X efficiency flat million, will leverage principally And drivers. continued

in progression. focus quarterly progress and quarterly on XX% Finally, Full-year XXX% growth incremental that Slide improvement demonstrates compound rate run our the EPS tracks been has XX successful. our

At of over EPS and and concludes remarks. our continued support from high been as appreciate long-term stable, open returns for for and strategies We for interest always, results today. long-term already and we support and growth this levels. the prepared us That we’ll remain your growth. XXXX have near- sincerely poised joining Our our questions. line and strong the company time,

Operator

you Instructions]. Thank [Operator much. very

will Our Jeff D.A. Rulis, first come Davidson. from question

Jeff Rulis

Thanks. Good afternoon.

Scott Goodman

This Hey, is Scott. Jeff.

Jeff Rulis

if the some held mentioned of loan the some was check also due had possibly? does side you a and the growth? – balance greater deposit discussion headwinds loan on of, also somewhat growth, the is of, kind growth where to, kind but by. are structural growth to allowing I Scott, in headwinds on growth some the challenges funding wondering to kind Or be fall sheet in go loan Thanks. credits that also contributor is not the on of where could Good.

Scott Goodman

not – grow impacting I that at to is that would loans the point. our answer No, say deposits are short ability this Yes. not to

more credit so not related funding due that out loan were I issues. to the opting managing the to usage the of behaviors, think than back, holding or about talked protect proactively, more headwinds to se, per watch some I line loans

I continue issue. we the think not fund really we're That's growth. can confident to that loan

Jeff Rulis

Okay, that that was And in thanks. Keene, – just to the I clarify through Is that other? expense in wanted an non-interest expense. line there the was item the tax through – excise

Keene Turner

Yes, at look correct. you those That’s two… when

Jeff Rulis

was It $XXX,XXX. about

Keene Turner

That’s correct.

million income $X.X had by of So, of which the that quickly, tax provision you about driving was $X Slide tax a it XX. then million, call the – is we line benefit net-net just through – real on adjustment excise about $X.XX what and federal is the there item offset tax the

Jeff Rulis

should then we expect resume the around And next maybe, to XXXX it. tax XXXX? Got rate and quarter

Keene Turner

Yes.

So, in for the step-up right if of number returns. grow is profitability, then year XX% given we sort a and next balance guidance quarter, in continue I maintain think of XX%, the your just middle and to next our sheet to

Jeff Rulis

I’ll step back.

Keene Turner

All Jeff. right. Thanks,

Operator

you. Thank

question next Sandler O'Neill Liesch, from come will Our Andrew

Andrew Liesch

Hey guys. Andrew. Hey

seasonal some credit clarification would imagine Is follows the on Just tax pattern for correct? years same business. fee that still the the that on increased as next outlook income historically. I

Keene Turner

Yes.

expect that a to in the be not is necessarily level somewhere side. range on underlying it's trend $X.X because trend, XX% that the million then in still be line follow consistent to absolute to item. $X still – say generally upwards it lumpy, it that and brokerage going the we million fairly do business But going let’s may So, to to to growth be it's XX%

Andrew Liesch

available you kind bidding behind are of on that? what's bid is And what's driving it allocation, more, more just curious that, on, more to it is

Keene Turner

Yes.

strength business we able and after and capital just it's years, be in and the some in base now with and put there very we – a able been the right invest to number in a participate stable really ourselves financial opportunities continue work to in we expanding expanded to – we’ve of have of very space. our size a position hard that to for So, to function

years be excited for off and of at here to we're from to and about the we as the year, on here out sort So you continue on see the should on and an we with out. basis about in jumping good But – annual progress to continue XX% guide growth. and more that level we'll XX% of – timing. next maybe increase feel traction give it. It very We're expand clarity

Andrew Liesch

Thanks. Okay.

You’ve actually covered all my other questions.

Keene Turner

Andrew. Thanks, Great.

Operator

Thank Instructions]. you. [Operator

next question Brian Our come Martin, from will Partners. FIG

Brian Martin

Hey guys.

Keene Turner

Hey, Brian.

Brian Martin

Just a that follow-up about that from XX% any the is pickup business expense Is number net new when or on far just the the – that credits. talking Keene, as XX%? that, you're the with to expenses that? tax a last one Or on to there pickup, associated as

Keene Turner

Brian. Yes. It’s modest fairly

in included of essentially what it’s the about talked we So, terms marginal in efficiency.

the efficient. it small in that's that's in been on if – fairly running We've keep you groups. those point So our of is mind, more centralized a leverage pretty specialty businesses,

that's those articulate we'll components through. as and come they So there modest a expansion

Brian Martin

And is guess, there kind you, need of year-end toward you, in maybe, I those, it or others, what there? then the Or there of, of, think – up, was – those you moved kind of or there them had to there that Okay. more anything, took or you, are of, that care clean any credits, concerns just you I there as here? more is you of of a a you've, out is out, look credits trend couple any proactively that of On kind guess, is

Scott Goodman

I the just about Brian. overall Scott. portfolio, would the we I general. This quality is of good Yes, say, feel in think

I a typically we to those and markets I'm to we're that quarter. – we quarter. might as fourth There not think going mean, the why highlight that did feel every wanted a wants to the it us than the huge competition seeing do we this robust. like competed would I to of take advantage that I that's allow to group are more of in necessarily. was think really this to a day, I extent in that. we and I it relieve think chunk see be – But couple in wanted larger we a don't problem,

Brian Martin

for Okay. those there just you LIBOR, you that remind on just kind the – prime, I variable-rate to a it, loans tied Just guess And of, you loans. is give Scott, guys variable us tied maybe is daily? loans you any they the have, color are are mix, those are rate what can to, or can –

Keene Turner

XX-day They're Keene. it's principally Brian, LIBOR.

Brian Martin

XX-day LIBOR, okay.

all then see more in think about So get you – pick get I in up quarter, how a mean, bit is if if I to it? third the didn’t benefit the quarter, should I fourth

Keene Turner

forward there quarter we think a in and got that obviously, with third another increase. I very benefit think the the consistent nice Well, was increase, was I going

continue So to through. that play will

or we yield underlying So the XX that in three- that depends said to XX some of originating the, basis bps it, been four-quarter what we're which I past but the expansion, and to overall seen. is trend think points classes we've call in factors. XX But of what that's on

Brian Martin

All I the was, just you on this from commentary just okay. banks – heard on then But right. some up. one LIBOR other dividend and the obviously, Yes, capital other quarter. picked management, last just the situation had

you any just about some opportunities, kind quarter the seeing in M&A kind little can I of bit they, M&A, talked the of, provide landscape of, of, think kind update today here? markets with, I guess, you repurchases we're a M&A last or, are on, changing

Keene Turner

you organic our remind is the priority Yes. Still just I’ll obviously, growth. continued

I that out think management. that with affords we we've the loan growth level have additional high us single-digit the rate set returns capital

the sequentially we're that's and dividend fairly – payout level we still in all obviously, increased the there. So

and conditions. real execute we available X evaluate – and share course, that quarter. opportunistic to conditioning a of shares we have, million of recollection then that we opportunity given which as move plan – So each repurchases, quick of that repurchase there, that's with an additionally, we us are for under And forward of plenty quick liquidity

are I I'll for little So then our priority a which more about is let And more a those Jim bit the control. would us, say, control. little within difficult that, M&A, more a bit talk to are things

Jim Lally

Yes.

discussion we compliments this had there we be quarters. what And space. with need about talked very in obviously, would active investment well, companies with of We've pride other and Brian, So, the plenty bankers each and the what we’re of doing that the a well and looking far deposit those about of few you really for good lot and knew between, that franchises spend making. we’re and – effort a deal are feel the a on in spending we we’re time it progress good good of but

Brian Martin

Okay.

So you I about still front given guess just, are line, finish I to the opportunities how in the of with guess, guys. it? It’s is think

Jim Lally

Agreed.

Brian Martin

the I right. Nice All Okay. appreciate Thanks. update guys. quarter.

Jim Lally

Thanks Brian.

Operator

you. Thank

next Michael Our Perito, question come will KBW. from

Michael Perito

afternoon good guys. Hey

Jim Lally

How you, are Mike?

Michael Perito

already, most Actually, answered of you. have but do been questions a couple. Thank my I Good. have

– types longer be of improve net thinking deposit for and On cycle? of, issues you scope guys secondly, was then that of and guess, legal you, two- funding should two are wondering give opportunity opportunity, as the growth funding pure over as part more a volatile sense the or these some of, kind I about the mentioned And some a I there of maybe kind nonprofit or opportunity it there. base opportunity deposits, see are we yes, us need sales the of you you out and we to, – the swap question here. will still higher-cost relationships deposit – – Scott, today? can one, kind this as

Scott Goodman

do do be can’t this strategies we – think – broader. these Great I questions. that Yes. think

or firms related access and our these they professionals these or they’re understands to it’s do expert a have access, that and that are somebody whether need to firm, easily. really need approaching easy to company an case transaction within balances association they the think management I low-cost And the the or that enable we business. firm wealth law understands or that not-for-profit them the

So could could ultimately but now is – right footprint. it’s outside expand that that footprint, in of something that that

I additional know number that, once new think close all accounts going, relationships, niche. they’re get the feel in think I relationships highlighted I good of they legal XX in they to XX – recur, the I association I that open over niche, we about accounts. the

it think have over and time it’s diversified. and So low-cost can traction I substantial

profile think like. I the we that’s

Keene Turner

the like I’d the of then And we on to walk before funding. Mike, question run. to portion composition of We can your like handle

to at an deposit decrease in one, funding. first – and looking amount and overall, So the number of that the opportunity funding improve the of we’re foremost as just level wholesale a

of that our quarters starts base, some the the expectation composition that does the stable materially hopeful – to us funding of more interest opportunity. through in that’s same. really not the We show and just and coming improving immediate the contemplate like confident we’re it for net of So margin

as number accounts forward. So still these deposit that is the niches of we and an to drive opportunity for here, deeper move ground off us early we’re that. But fairly in in some getting the growth of

the way we’re guide, think more and knowing progress posture – at status So we’ll see we and be guide knowing intentional we think to we and low provide I then about there. the forward. I But more as guide our back way the as inclined we our come move

Michael Perito

share mean, to obviously, like repurchases more I can specific you any And share seems the shares the about pry your you any active ratios, guess, mean, all specifically? bit more reason have be thinking term guys about with repurchases Thanks kind about then. then it just come in at a back a I the you $XX,XXX, looking guys. more a since that capital, bit by color. Helpful obviously I we why it plenty here. maybe of near control. more last seems one comments the deployment being there’s shouldn’t of capital little one bought mean, I bit of

Keene Turner

No.

other think may are certainly – attractive. be no, some and restrictions there, of things we in there there. give and current Just But sort blackout levels limitations the

Michael Perito

I Okay. right. And confirm, that heard that was just to

shares You said just the repurchase on authorization. about there left one million

Keene Turner

more I exact Yes. that, numbers have don’t fingertips. I answered at the my than

Michael Perito

for questions taking you guys. Thank my Great. Okay. Appreciated.

Keene Turner

Mike. Thanks

Operator

much. you Thank very

from will Piper Nathan Race, come Our Jaffray. next question

Nathan Race

Good afternoon.

pricing. Just base the here. rates have last quarters loan over several question Obviously, on last one we’ve seen move higher

what where the seeing that just any throughout quarter from aspects, seeing guys new but weighted the just point on are this what spread appreciated. in color you you on I – know color from change And a provide on quarter-to-quarter competitive can was. if you’re erosion at is loans coming depending production new on So from, maybe on yield if loans from any standpoint, pricing rate or would some average be curious the loan

Keene Turner

Yes.

So are weighted – as X.XX%. indicated, around average originations right I had new

and mostly sectors real are yields that but We’re by on on are quarter. you I the lower that we’re Scott moving plus and actually fixed that point certainly at competitive estate again, some seeing most X% we can be shorter-term out of comment and variable C&I stuff rates, putting driven really and more in think would this, the variable that XX% variable originations. Jim more still rate increased other about But our of every just the on. would

think we’re disciplined I staying So there. very

think competitive certainly that’s the want could raise bottom. But have proposition certainly to value through paid relationships. the I lot of there’s acquire there, to more that we pricing a get out and we we and

to don’t know, I like that. would to Scott anything if So add

Scott Goodman

[Indiscernible]

Nathan Race

base. obviously a thinking And picked changing just it. quarter, gears little about bit MPAs the credit bit little a fairly a up off and low Got Obviously, but Okay. quality. in

growth kind move in maybe I to that the of color predict know here. maybe towards charge-offs build how can you single-digit just tough but the should guys it’s target? to what how So we think of of loan as back reserves high any kind trajectory curious just about of – terms we expect

Keene Turner

I think level that you trend, been us for mean, from high loan relatively long-term a we’ve on providing growth. what I a over is see

high-quality perspective, from we’ve somewhere you of and that’s XX between been be we basis kind think if we every then we think we’ve quarters, So – originations. and to a driven We that points what like consider points to one some one a then in loans. maybe smaller something look elevated got five has charge-off at new done on charge-offs, XXX And what I net that, basis or that’s abate amount. and

are we sort that most provide that loss I loans – or given history the suggest to fact prudently but we’re we’re no despite we’re the quarter than a pervasive, prevailing, is So that that would with, in think see because outstanding, and the of much six of credit providing. our on we issues putting our continue to that posture much none of, history quality five real we’re change had rate the going lower loss recent comfortable

Nathan Race

the good Thanks color and questions for That’s to really it. taking hear. guys. Got helpful

Keene Turner

Nathan. Thanks Sure.

Operator

the Thank at time have Speakers you in questions very this further no we much. queue.

Jim Lally

Okay, to great. visiting thank next to with everybody look this you Well, I quarter. want forward Thank and you. again joining for afternoon us we

Operator

today’s much. and time at very you conference. this now Thank this Ladies concludes gentlemen,

have rest of week. may lines. disconnect you. great Thank You phone a your And the

Enterprise Financial Services (EFSC) 23 Oct 182018 Q3 Earnings call transcript