EFSC - Earnings call transcript Q4 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 conference over to President and CEO, Jim Lally. Please go ahead, sir.

Jim Lally

Well, thank you, Ashley. our earnings to everyone welcome fourth call. quarter I taking listen in. appreciate all to you of I time

Joining afternoon Company's & Trust; and me Enterprise Operating and of this Chief Keene is Scott Turner, our Officer. Chief Officer President Financial Goodman, Bank

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

be outstanding on was represented of per found XXXX record $X.XX year Earnings company. quarter to year our share for X. an for diluted the $X.XX performance. and of Slide financial Our fourth for the scorecard

hear Scott, when were growth you to and able As we did efficiency, and our and loans quarter. from to year, credit margins, the our deposits at deposit nicely statistics grow rebounded expanding and our by improving from to previous this we levels XX% third keeping expense X% will Compared the by eligible our while peers. loan compared

November business our in and introduce we provides fund XXXX, wealth company. another reminder to combination X priced of scheduled to This growth, our upside and Corporation. our Xst, In banking a during agreement of time we first of spent gives with significant on quarter It addition is Capital Trinity Slide to market an business, to where well the to a new this, presence, all western announced model. merge of us to XXXX. source a commercial and definitive expanded for the our close expanded deposits

team focused intensely This equally highlighted brings allow And the level call. cannot accountability by that a vitally of focused but leadership remainder in we're help we few us. our high-level in the XXXX. post of Year As shows on where this about we results this but and I New focus excited years, the throughout opportunities that were us Slide previous to X be important areas.

I need to targets excellent to in integrating turn our set we that First another Trust cannot have we In Goodman, And to growth Enterprise our committed our distracted the to day. the you like order and be doing to incrementally, of we albeit company. foremost, lofty businesses. our finally, into better we now be enterprise on be growth organic every markets TCC over and for and will in are achieve to call to continue color we ourselves. so, provide better more Bank would one specifics Scott to to & make and of President

Scott Goodman

strong you, were million Relative we to experienced loan Thank Loan or XXXX. fourth which overall balances X, fiscal Jim. in outlined strong portfolio in is resulting annualized growth increase a Value the originations line a real offsetting Lending in QX. estate in modest for a in pressure commercial decline payoffs Enterprise continued to or is and mainly the QX improvement EVL. for the up number on increase X% across versus from attributable X% $XX Slide and The quarter portfolio, usage,

annualized QX. growth remains number on XX% XX% strong, growth X in continuing with business C&I loan our and in this focus category, Slide As a shows, year-over-year

businesses C&I dynamics on return better where offers X, risk developing portfolio balanced place new number profile. expertise year growth as Slide relationships strategic emphasis we can our a the was and as to offer a Turning well more we product competitive where continue the broader and to well set for throughout specialty attractive

success as category finance reduction service premium seasonal and we markets. is competitors quarter, other as typical a general the using sources as regional of their XXXX. in includes in fixed businesses relationships trends moving posted C&I advantage upswings and well The take of some units our in sheets the X, due restructure some business Slide insurance is the in as life shown to which EVL financial non-bank consumer growth by For in well loan saw clients from which businesses businesses. our long-term low balance to to several desire seasonal number rates these Within on portfolios for underlying all mainly

the particularly seasonality well portfolio. a as life by in For and an aircraft strong quarter QX, as increase specialized EVL finance insurance aforementioned lending the had aided in

reflecting the origination grew by quarter robust deal new $XX activity. business million EVL Our in

causing in mentioned private base. for attractive multiples sale of level valuation we've a recent activity As equity client is calls, higher our portfolio companies by

this side, creating these investors for new flip reinvest eager generally they which returns roll funds. are the their into On of is as proceeds strong rounds to

clients We sponsor of through also existing selectively continue and to business our through referral activity. base expand development markets in

our new clients. by the or year quarter. growth QX roughly into sector and Performance posting in heading in Louis ease deal and good other including relationships and strong policies lenders year-end and reflects X% market St. payments well as $XX from balanced also was leverage to we strong originations in premium the XX% to The issues for consistency, new origination partner activity doing related our and business of million able emphasize year. this The consolidate and $XX finance result, renewals QX premium overall existing continue for advisor policy an opportunities business. a C&I as a QX life and XXXX. policies million in in were the As between We elevated timing financed. million refinance and grew growing had experience, to several increase to as our flow looks outpaced our $XX roughly CRE by payoffs insurance particularly with well quarter

opted recap structure impacted In situations However City $XX by St. as back aforementioned mainly also service impacted origination this financial firms million larger transitioning pricing. or In to year-over-year. to permanent we and relationships Louis St. quarter. Louis or from loans heavily construction to in activity was most where X% commercial several grew unacceptable with flat the has estate by real loans payoff due payoffs. well as QX classified market. QX, activity QX, related lower was by to been away the by associated involving this competitive of Kansas

As have we have throughout relationships the our year, team success the disruptive targeting in continues in KC competitors to from market.

year market new provided and Kansas traction Year, CRE During the market relationships Arizona large strong us loan growth expansion The a of as increase Arizona pipeline had well New quite in remain attractive XX%, XXXX, QX, opportunities million this on net growth a real C&I very the estate and moving economic environment. an nearly $X this posting and million and $XX our brand growth. into new construction Heading commercial included both is City, growth in two QX. XXXX. for C&I of the in solid, which higher in economic or for healthy deposit including position support in

leveraging We of intentionally the have selective CRE been with C&I And this in relationships with in portfolio. developers balance also component strategy while prioritize investors. through deeper cultivation here, is and fewer of important we successful our an

as a -ear aviation, from summarized included year-over by this service Deposit During XX, bolstered XX% on medical, number strong professional $XXX within the balances QX which and new growth, QX loans industries. million. was grew C&I Slide by

is this some level the fourth number of to growth uptick increase was during see in to typical is seasonal This exceptional. of it quarter, a attributable factors. While growth

this in existing we've from made This to large relationships commercial higher on current growth consolidate a account in was balanced depositors balances effort from focus our institutions. which concerted within particularly for of process the their growth bearing First, commercial through client roughly accounted one one-third resulted targeting generally interest quarterly within QX. sales Included excess to types. other

remaining diversified. from well Aside increases the were this,

were to XX% focus both traction compared quarter. to up with the C&I to initiatives. with new Non-interest on our company deposit across continue account as gain bearing well we with $XX million or Second, grow. new base prior deposit continues specialized within annualized Overall, general as targeting relationships, balances

initiatives point include like XX% it now opened based quarter. comments. our services, legal, to his hand accounts for I'd over the and to which Keene specialized At in Specifically Turner in this offerings CFO, association increased the off financial

Keene Turner

changed allowance in core per earnings removed per results to expect asset fairly earnings the a remaining opportunity you, about share. that million at reported portfolio. acquired Scott. given three of we because quarter of moving to We did of be favor Thank presentation $X Take was in minute accretion insignificant or quarter a we the our of stable namely the and presentation we that in share non-core be the reversal note fairly to tenths for two so expect forward provision

and results and update move like average we'll XXXX. terms continue to in measure of certain those both Fourth were both X.X% a as the in they in metrics and and emerge transitional Return interest full-year we'll quarters was on net the core strong to excess assets returns. quarter for continue margin for So periods. basis, forward metrics of earnings on of

capital our Combined management activities profile, share. during equity return $XX earnings and and $X.XX with management of the sustain common million another help fourth for XX% first the full-year on tangible strong activities our XXXX. dividend quarter XXXX repurchasing increasing common the continued stock quarter our quarter per We by fourth our capital

basis initiatives, of federal per non-core as Our We the and of per a presented guidance. $X.XX efficiency Slide favorable $X.XX of share income of versus full-year share $X.XX on for earnings we of XX. XXXX reversible which included comparison to expenses well for is as from tax summary, rate, per can from despite In asset Trinity balance the better annual is marginal by various earnings acquired share loan was tax end income the dollars, reported per book albeit from positive attributed Provision per per losses the core interest end non-core lower merger the reduction planning interest at share share grew on forecasted which per expanded the books XXXX. JCB contribution expanded approximately deferred margins. at improvement invested our $X.XX was leverage. earnings expenses, and achieving the the The we by revenue $X.XX comparison. a mostly write-down we $X.XX $X million share net in organic $X.XX core be improvement share a mostly We of net sheet, and remaining timing higher operating

resulting XXXX leaves financial performance portfolio The and were That strong capped with also off results our credit said, strong well was XXXX. returns quarter trends rate move we and earnings into We maintained us positioned fourth for seasonally expense earnings. as costs and loans. favorable

expense that per per $X.XX was for planning share you than the remain that As Scott for you've with quarter by core and and seasonal our of earnings $X.XX to totaled income XX, share. $X.XX in Fourth There the interest do and first this and $X.XX let's share quarter, interest momentarily fundamentals and our in linked were periods. was $X.XX underlying quarter in changes I'll the interest growth and $X.XX not and linked the a the expanded those the non-core With able also to appropriately. Slide transactions acquired to net the XX. to income to Net seven be business six quarter. and net and $X.XX interest stable third we share, quarter increased for $X.XX of in of an we per hold core net managing however attributable tax expenses the linked managed well per pretax line respectively tax perspective, cover item future of On and trends quarter. $X.XX executing reported core in are sheet remember tax loan the my due the the that quarter stable quarter in lofty fourth third portfolio share increase share to Slide expectations. margin was we're net Jim, reoccur higher for third occurred share We've of interest income or drove X.XX% credit Revenues to increase income share compared on Non-interest affected the in the heard to turn from to presumed, remainder per compared model most for moving the items for $X.XX the flexibility due provision per principally was a for both per losses included the for was per last merger quarter fee. expect net funded. which quarter. income pieces income interest the From couple income to how noisy expanded Trinity quarters. margin sales of balance growth

of we've quarter. expansion Net million margin past been assets to of flexibility quarter. to higher side Portfolio Our demonstrates balance stating earning linked the and side. several interest use with nearly quality net in increased yields XX loan interest coupled the income We performance and increased sheet right average the over core what quarters. X.XX% basis left again points grow defend order the margin a the in by for high $X the the

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

New with the yield consistent continued approximately C&I the loans mix originated of a of total. fixed in on portfolio average now while were floating rates, loan remain variable notably the rate. X.XX% rate rate a loans. exceeds positive the average XX% assets, within trends earning Loans of weighted the quarter the average variable trends, a for Adding to at loans steady percentage

to. and them funding to us focus perform behaved relationship well the for interest we Deposit rate current as and C&I trends favorable expected environment. costs in Our drives continues these

yields margin grow fourth during allowed to interest quarter. is and priced sources, the This fourth net replaced reduce we deploy albeit significant seasonal asset deposits materially deposits and funding points quarter with on and deposits defend FHLB basis and the and more in us XXX experienced This most reduced lower modestly. expand the borrowings million average. borrowings. higher continue cost, deposit wholesale expansion and average improving growth prominent $XXX the mix than We to We of to them in

to via to with facing, absorb We interest us trends, margin we a we is new similarly interest stable the positioned net existing is net dollars. While we deploy by a income driven strive defending goal revenue deposits preserving for core as balance continue well in be and priority seasonal balances. as environment core while of continue the to expect some to believe upcoming withstand improvement grow customer reversion to net interest these and this sheet funds, interest excess rate quarters. Defending continues we customers margin are the pursue

non-core given expect to Slide be model to of X% for investment credit trends. for to business X% and legacy loan and With million. on flat the significant specific and an is Provision we growth million our million portfolio XXXX, turn For the that, long-term trends. essentially reserve addition will appropriate we existing of drove for a the acquired in $X was rate $X.X will allowance on fourth high-single-digits growth development. through business one XX reversal at diversified $X.X quarter credit Charge-offs provision

for restated in from under quarterly in overall XX% Slide growth non-interest XX% provide of run we revenue improvement an marginal resumed due the in growth expenses. and our fee progression; and core demonstrates from will years as well Consistent your importantly development apologies and million, growth resulted we expense our quarter continue we both the fourth tax and as million growth from $XX believe M&A been EPS year-over-year expect trends, investment the and nearly last tax on bills increase for tracks XX% As incremental remains expenses for personnel to the state open focus fee pleased fourth more portfolio sales the our credit with in trends efficiency of and growth $X.X expenses our past as drivers. growth principally seasonal a quarter most Slide trends. and we in of income XX% we losses this $X.X quarterly in our when appreciate to combined XXXX continued with of $X.X Run continue of growth of million EPS business as In other the customers. revenue other $XX.X XX, that continue results $XX and $X.X loan the credit and at still concludes revenue of discussed trends that XX range tax compound XXX% inclusive quarterly sustained -- around and cards on in with well. regard, for sales line We're increased five-year be is in we what of and million, several businesses will that with for Coverage rate provided the credit on we're business At growth. and high-single-digit continued high to our positioned growth long-term last expansion. to call ratio merger-related will XXXX interest for has time, expect composition remarks quarter. the questions. rate for progress successful. given we allowance improvement inherent new million on being along to XX prepared efficiency return that robust just of the prudently to portfolio. today. Operating we That profile over near On a totaled company expansion income a are million million drive and Slide organic We my due and the in

Operator

[Operator Instructions]. Thank you.

from O'Neill. We take ahead. Andrew will our now Liesch Sandler first of question Please go

Andrew Liesch

guys. afternoon Good

Jim Lally

Andrew, how are you?

Andrew Liesch

Good, thank you.

and Just inflows you pay sheet borrowings can question of it like it some well, the talk like these but you so this you to some here, just bought about deposit are also down with the some on liquidity the balance you use quarter? sounds what securities of composition as acquired guys some looks

Keene Turner

trigger we on an Yes, XX% managing some front, over then of more had We investment flows to same. down a with made just for the us lower the just perspective, to XXXX at it's pay coming have cash the of then security off rate and balance in so with proactive pull for could a care liquidity to deposit investment strategy, blend sort that'll and and on cash know the time. timing normal it we and closer that would some redeploy of take relative not we period we'll Trinity of that's more sheet shift the to portfolio, well that, the experience XX% of the it's of portfolio sense we in excess that pre-Trinity total investment but expect in really XX% as closing, of be from we

Andrew Liesch

Got it.

some this XX% of the closes? the Okay, -- been the Fed so million of of before has $XXX or assets funds -- so around that deal level from but on have short-term including earning leave that you kind investments the like average

Keene Turner

year. you're see it's maybe quarter, really run I that normal just at some think did right within less we that at bought portfolio, months mean going around to the than quite think in the an off just that end the and I XX%. and I from that ended off. what the XX%, be million is in we'll $XX of level think Yes, of being flow investment earnings But interest portfolio that don't that couple come portfolio up excess perspective the of seeing cash the next we anything cash I so then

Andrew Liesch

then not so for X% how quarter? Okay. to here look deposit as how growth And are as far and deposit like repeatable this new relationships the new on in year or quarter, certainly the look but this for the some just strong is probably growth pipeline where be was accounts this quarter -- just far so it what likely coming does but in

Scott Goodman

I'll focused really widening and lead new think our is going one, relationships gotten a that. we commercial take steady, on bankers that relationships existing is Yes, I deposits and It Scott. for is this have after

having in deposits doing So market, And go product. we've by while focused I through I we and to we on doing. competitive any been what reason don't think the relationship it staying not can't see through disciplined and do it's have why continue

So I think --

Andrew Liesch

have you, Thank covered guys you question. my Thanks. great. Okay,

Jim Lally

Andrew. Thanks,

Operator

go ahead. from our Jeff Davidson. D.A. We Please take of next will now Rulis question

Jeff Rulis

consumer the Scott's growth good to in to in Question portfolio. and just steady I there comment on want back portfolio, on that the circle loan some

balance? on customer I in some shrinking think drive strategic strategically you that that anything of I to would the guess elsewhere that is on led front the happening is are that or happening anything behavior run-off there has mean the but consumer of guess of some consumer within focused side that book I your C&I you ranks mentioned I sort

Scott Goodman

that consumer is other in the really category. shrinkage So within of most other and the

obviously that quarter. companies that saw was correspondent non-bank going the result in financial several categorized my out about downs. with with some services and market and to locking just of pay we sector banks are in the in product of some comment there's service which work there Some the in fixed then financial seasonality we long-term And and fourth rates them

what se. not that's was it per So not, portfolio consumer really

Jeff Rulis

Yes.

credits willing that correspondent that given the just you're of? on something to it your profile So walk doesn't that's fit

Scott Goodman

cases they're refinancing Well debt, want product fixed oranges, which long-term isn't it with I a into going we lower offer subordinated in in rate long-term, some that was debt and there. some apples mean up to cases cases some would in

we come they So they it will as and grow usually cash didn't just lose the a we relationships, so back replenish and was transaction.

Jeff Rulis

then side, moving it it's Trinity within expect an And closer do sort you or few just imminent more like thanks. sounds M&A Okay, hazardous this weeks? on a of -- to

Jim Lally

Jim. is this Jeff,

both going approval we've here, So in to are very first and the regard. received things that FDIC quarter and then of the from closing in we're prospects if confident Finance from it of take and our well we'll Missouri that Division relative

Jeff Rulis

then on expected timing And the conversion?

Jim Lally

we're looking mid convert second quarter to late that. for to So

Jeff Rulis

having integrating are last And additional trading additional, guess on any in or just out closing M&A detail and shaping still conversation, that you on, the market you how but guess I this is one opportunities up? other cost I

Jim Lally

and It discussions growth it's specific market terms we don't active capital continued aspirations active every about what position and what certainly was our we've comment targets. in very and certainly our very of part day. have but of we a been given do But

Operator

now take Michael Please Perito KBW. go will We from ahead. question our of next

Michael Perito

old of for nature? questions, is recent size about that things credit an and can on bit you're type to underwriting little portfolio, EVL of you nice of quarter, the profile this the but and year leverage credit first a the curious of portfolio, I'm today what that for just move, maybe the some the of portfolio remind in my more guys and the us in I you question Few Scott topic past growth kind you know had on the has

Scott Goodman

do going and the portfolio new good said, turn million it. of advantage equity of million to X $X EBITDA our client We X.XX them seeing private happy to and middle for really would on lower market the not see more as anywhere to be disciplined If Generally times want those that's debt, the and sweet our kind growth really side do a We're do is deals Yes, on I companies alluded But competition multiples the their $X after to. above leverage you we're we're expanding of take see sponsors because are and because maybe product X, upside. debt would out will rolling are sponsors of high X.X are for because there. typically But mezzanine. which sponsor are spot. a market we're credits, of as multiple are range the from they're because you funds our a so getting pushing to I sub funds seeing that's maybe if up FDICs million more profiles these might the use move That base That times of sponsor our and credits to product their many they us low that. holds the there. also Sure. sub up get in we're to X mean pretty to leverage credit sponsors. a from credit $XX a million on anywhere on they're single X.XX profile. on or layering single basis Usually deals senior with X.X up a structuring side and then $X

most And so, Is the new yes, for that helpful? with we're of in them loop deals.

Michael Perito

under gears Yes, I'm and give you're on if curious post-Trinity marginal Trinity efficiency or specifically consolidated top any there ticked thoughts ratio just very of Trinity close to helpful, this efficiency point? efficiency you you thanks, you saving targets XX% about the the of that trending ratio kind XX% the forma cost of can as And on see this unchanged XX% maybe expense then for in at then how pro you us quarter, for we question switching but Scott. with think Keene, laying guidance about

Keene Turner

Yes.

Trinity let's marginal XX% amortization core in be rate, So to I -- of somewhere $X phased way would XX% the down will work right, of be run tangible that run talk to the period. and and we're say that going about about QX over in deposit say we excluding so full efficiency, million saves the get XXXX, that to so will going earliest a cost in that's would

business, to ratio similar where we get will today during million tax difficult we and that extra of in that's to credit do sales efficiency then tax we're that our periods call it maintain the additional XXXX credit as revenue fairly sitting So we some obviously progresses have to prior we'll although high-single-digit. be it the seasonal expect had the and didn't $X given how we got

isn't So the move needle. phased don't other way one I going think the or once an M&A perspective we're fully in Trinity to from

expansionary. there will or our want savings cost fact slightly to slightly mindful I new also we we of think don't market for to and the achieve want savings it and market cost so that a of need be the is but will that's achieved out overcut operation, of the we we to

Michael Perito

Okay.

the mean first the improve there quarter? in it seasonal quarter would probably up jump some where be will to by ratio the the than then third the tax to revenue end as mean in I in a still be efficiency it is I year you lower summarize, goes levels of hope of So were that modestly to away fair but the

Keene Turner

outflows consolidated significant a XXs on we to cost it's up ratio conversion. actually as the so Trinity actually Yes bit in the a be actually and the opposite basis to get also in fairly going with negative of that comes and XXs and efficiency some it's a little

Michael Perito

the have which deal. M&A the there but the single-digit and would deployment -- I to question the is side, like upper Okay, baked capital is or nice top obviously in helpful. model And challenging it me differently for -- a at most point we assume asking this models little most I then last as internal a capital organic just feel perspective your from loan growth find on including right from Jim one probably priority

levels what's increases much see don't I As and process? we your tangible get of we accordingly another and the share is repurchases, I capital appetite to capital today think as your and deployment levels want kind should for dividend build or about right it, levels we to guess your X for thought will way north appetite capital and continue thinking use we there dividends that of to here? buybacks is about be keep mean

Jim Lally

but you to the level that think your continue strategy our ways mentioned be will well us. in seems I avenues to we that So right level manage seek captured to the you it question four target for all through

Michael Perito

Okay.

So I it say see much quarter-to-quarter vary fair TCE could X%? it's mean but like ratio the not to longer-term you'd mean I obviously to above

Jim Lally

correct. That's

Michael Perito

Okay. this it. appreciate you very all helpful. Great, Thank guys, is

Jim Lally

Mike. Thanks

Operator

We take our Piper next of go will Nathan ahead. Please from now Race Jaffray. question

Nathan Race

guys, afternoon. Hi good

Jim Lally

Nathan, you? how are

Keene Turner

Nathan, are you? how

Nathan Race

deposit moderated relative I'm about well. costs, increase we on the we to how just Thank so curious quarter earlier we what you. should Keene, this saw this that year, saw think upward deposit hold coming pressure context of do costs that XXXX, as the obviously onboard Trinity a that's on well? get which within base obviously on if deposit has great in we and

Keene Turner

of think grow address in I Yes, reverse we'll sort order. so

so expect at the XXX from environment, that book a require maintenance deposit the cost that had balance sheet we cost blends a the fairly and well. so mix side year-end perspective, will interest full rate that's us of trend some look basis so move it's that closing. left margin to also is we that similar think prior to lot liquidity perspective I of right just behavior by pro-forma at But we XX the about as as saw maintain deposit I you consistently. the in and points, of From and Trinity sort think of deposits So maybe will right, it margin down

movement, there's side think past if deposit don't six over we as we margin we've so enough have much quarters. have pressure no done and or seven generally So not on -- maintain we as perspective a that the the repricing from

have predict. and it repricing follow think well of the happens So that's I a competitive is lot difficult what about we of on deposit to we're don't positioned to much perspective we a feel maintenance way like deferred front. LIBOR from always But think generally we tends that

excuse that well for stay think if I bodes us unchanged rates that me So

Nathan Race

if kind and maybe curious like yields sheet new the of accretion on of quarter of putting a core kind came out the terms X.XX%, I feel where in carry yields loans new the it's which EVL the the know higher side about think lot about gates. of books, some just Absolutely, great looks can pricing, of left color of just so you're production loan you that the the from balance

of kind yield? core curious that how come the kind relative books of loans just portfolio that to on So

Keene Turner

loan we blended new of my so the can as then production LIPF X.XX% portfolio but relates yield those as on high the also up credit putting and it yield indicated quarter total that in good drive the a was was was Yes, comments I much of EVL to X.XX%, had in in particularly something of the are and quality. so trends that that is

loss profiles longer-term given So provision the the lower LIPF provision low a slightly of loans. loans initial and with come

get the really strong the for EVL have forward we yielding both the fourth the are actually classes. the some balance if potentially general on quarter higher volume and as the sort going So there's we upside side by production substituted maybe in us of of those on C&I and sheet side is left trends side

Nathan Race

I I of got Okay, your missed remarks. it and some apologize that prepared

of the just and going and visibility that update outlook that loan on of in what in travels your curious with XXXX to lastly portfolio that an Trinity, get kind is you progresses? from to retention terms I'm extent growth how so far the as attrition kind or market, have your just Just of to

Keene Turner

everything growth that for loan their is have but loan of Yes, their net portfolio, portfolios expect low aren't a markets is couple growth there we expected their I say that. expected they is for and part that would fairly just strategically continued business of that generally have expectations been as commercial we core in haven't going replace would they to --

forma pro that that for presented on a on growth And so for and both balance basis for low-single-digit the we XXXX sheet. XXXX sides of numbers

Operator

FIG We Partners. from ahead Martin will Brian next now our Please take sir. go of question

Brian Martin

guys. Hey

Jim Lally

you? Hi are Brian, how

Brian Martin

Good, thanks.

driving charge-offs Some concerns really I though quarter is this been couple can as big out have the was it the mean what just any but guess there charge-offs of quality easy quarter? doesn't the ones, but my strong color credit this looks stuff give behind appear little you answered there, a just I and on a

Jim Lally

Sure.

quality see The others was EVL just continues this consumer or what I our the book systemic any I think NPAs I is decline, that say the a shape. good under all was assets think I credit we of But peer quarter charge-offs trends, products I will one don't which to primarily overall There's a credit agree are. is half think business. in six our to are issues overall really related classified capital in larger couple levels figures. average four maybe C&I

good good are So in Overall are shape. we feel credit. I with where there about reserves

Brian Martin

Okay.

year, was this and business piece we some from think on you’ve I on changed on last guess at that one things then I or So changes fee you that that you're and made, and pieces a guys it and you seen to think piece income in you just about kind any when the can give of doing on just other think that just credit business made for anything on the look credit of that and has since business XXXX the there the of outside the annual big your Keene maybe comments income tax thoughts about that? commentary how about front in

Keene Turner

It's have them then requires us, sell a that. that and still to it's changed make you on for really has credits. harvest us investments to Nothing realize business yes, and those

itself annual think into for quarter expect range out were of you couple a some big business will of basis, and of that in I percentage environment realization So quarter got it's on have that tax do but said that where didn't a that first But we in revenue have. we we the an little in expect just is normally piece quarter an we first over in from credit and it you've XXXX expand business $X of us. that's XX% to a it's cents to XX% it current a like trickle where the in and we of obviously sounds the million meaningful sort be the so

then or a contribution steady penny what think and that hopeful steady and there is and contribution. we're I we'll a two out a see from increasing So thereon

little we a as XXXX line So it come business. expectations more on but tax the credit bit quarter with maybe to that first item and in changed as haven’t here to the I relates a think overall our

Brian Martin

Okay.

QX? opposed evenly and just spread more as So to QX

Keene Turner

book heavy, will sell own the on moving contributors we we Yes. share forward. the QX think we start fairly will Until per the rest be of ourselves, become that to quarter $X.XX

Brian Martin

Okay. All right, last that’s then one. the fair and enough just

the with -- fall the that? of the in said some that quarter miss this I think did you Just guess I or maybe quarter, heard that what that is growth you out see maybe I I deposit I first guess

Keene Turner

No, out and you that much correctly, bonuses customers the of of paid year. deposit the of end cash other early collecting whether heard then that gather, in accumulate I is select, and is and base from or still year underlying in strong mean customers the at lot commercial, things the a that's

DDA early professional So services those and quarter in bank particularly up balances in and firm deployed things then fourth of that, XXXX. like saved that we larger the some with the

of we're to rate got run here bit up perspective. what a that we've nice So little so a margin make a from on doing

Brian Martin

Thanks. Okay. had all that’s guys. All right, I I appreciate it.

Operator

to to time, any no for additional Instructions]. remarks. the At or I turn questions. host further appears are [Operator our like this there closing call It back would

Jim Lally

to you interest forward look for for of in We quarter you, visiting us you you with Ashley, thank and great everybody at our day. joining to again first the this Have want certainly Thank the company. and a afternoon. your thank end

Operator

participation. conference call. Thank gentlemen, today's Ladies this concludes and you for your

disconnect. now may You

Enterprise Financial Services (EFSC) 22 Jan 192018 Q4 Earnings call transcript