EFSC - Earnings call transcript Q3 2019 | 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 like to turn the conference over to President and CEO, Jim Lally. Please go ahead, sir.

Jim Lally

Thanks, Cory, and thank you all very much for joining us and welcome to our second quarter 2019 earnings call.

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

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

truly our strength displayed for as business, core I'm third the discuss an and solid quarter. grow results. pleased credit of the our profile, Scott culture, further of integrate will and But showed growing quarter our our organically ability Overall, overall operate very improve company the we results into our the already managing Keene the specifics efficiently capital with base. to Trinity the business

earned of quarter, Trinity. for our earned $X.XX and X.XX% company. the inclusive and we've share per fully diluted on EFSC to basis. record This Year-to-date, the For $X.XX $X.XX year-to-date was of for expenses a related was share a per quarter ROI X.XX% respectively.

performance our quarter financial can be XXXX, that third scorecard found in things XXXX now would our it stand X. your to out. like When Slide to I many to performed comparing attention turn on how in

to positive to to on drove in net quality had portfolio by a in part our integration Certainly, share were increase XX% loan grow earnings XX% a continue and this impact all, a the ago. dollars we our Trinity successful of First played ability growth success. year relationships of per our significant to able when compared to interest by

we defended well. Secondly, margin

financial of to institutions. has very familiar current interest environment rate earnings this all the You're is many done with what

quality franchise, So the it the by the our of great XX five CR, margin comprised. is to relationships which months points only decreased basis and net interest over the last speaks of

Our solid. credit specifics remain

by measures Our compared quality specifics, all credit bottom year. XX well compares basis non-performing The quality the Keene loans we're our sacrifice but very total growth. speak is will last our for by to line willing not peers. loans to decreased that to points to

ago. associates every improve to it that preached our improved find has when day core us. do do X% I by way they we year operating X%, what somewhat life that they At by a this to try we our ironic compared to should for mindset leverage where enterprise, a of become

increase, Finally, XX% already integrating experienced will the in Certainly, our deposit the Scott add everyday a Trinity focus base some significant is growth. important but annual our this deposit that around aided by played part organic provide to this details strong an the X% in for into to company. base. company an our increase is ability we

Slide where remain focused. X we shows

two companies ongoing job, I'm can the in these our We're our client way. conversions themselves and come have pleased of have well tell only the getting I to base acclimated and you relates amazing with an post-system that it As to Mexico together. extremely months done integration four how New Trinity, teams enterprise

have We grow to markets. focus the that will begin to we now opportunities on these

Scott to these for of take businesses, businesses the I the through details, are can perform. As focused positive the numbers on it you businesses our you can how relates achieving organic give to other XXXX. these leaders assure but from keenly markets well goals that loan continue and you will specialty and and running see

is sales continuous comments of and life expected. is improvement way for our in my earlier our our what mentioned focus continued This teams operational a in improvement. on I is processes and

details of businesses call not to our to For like I and lines Scott would Goodman. the our over reasons, turn on

Scott Goodman

you, everyone. afternoon good Jim, and Thank

following Slide on second Organic XX see XX% the loan QX portfolio of number we the as million. quarter, on in solid growth you'll growth at a Year-over-year As is QX solid X%. continue strong the with up of X, was for loan Trinity same inclusive period to activity acquisition. of generate

increases T&I at pace impact. growth of X number on the outlined portfolio half from Slide represent quarter Trinity in net digit total the nearly double

overall some are stability plans $XX million approach minor PCI run As base, book. a the integrate to The strategy. Trinity our which pleased mainly with mortgage to our residential and we client secondary is from loans related successful loan market shifting payoffs, workout off of continue portfolio of at I'm roughly Trinity the the preferred to legacy

to volume across in that and X%. originations new sales quarter in of growth strategy In producing opportunities. unit within confident X% increased a to loan and will activity specialized continue the our markets remain the origination our range the is consistent general, produce diversified I

and The in the Slide loan details. and C&I, I'll X my later. investor construction more outlined markets CRE solid on detail geographic on on general activity titled business origination in are touch within changes number comments owned reflects segment and Growth prior this

enterprise EVL on portfolio, internal lending reflects and performance or value both discipline challenges credit structures the this space. in Within environmental

elevated, to few high equity exit past capital robust valuations pay As private take we've opportunistically and experienced of our investments. portfolio payoffs partners are for as quarters, advantage and markets the downs

bit relationships our sources risk amortization unsecured flow in exposures. quarter. activities extended but non-bank was quarter to over total it's our some around and I said, origination a including this mainly That appetite. competition cases studies pushing continue up we credit partner of and year leverage Additionally, last from beyond discussed quarter, do are see parameters

to deal QX. seasonal new I selling some in with opportunities continue up expect

we increase finance over continue will base selectively strong brand past has relationships add expand premium and and of XX our growth to to the our also experienced effort. extend sponsors insurance months. We Life further

well growth, outlook payoffs into is seasonal But threshold. we specific away the despite typical and originations on was driven existing general advances has as the quarterly below been a from QX of walked deals, for The our policies muted on these typical volumes QX. of moderation couple price payoff reflects and premiums there headed for competition increases which activity finance. larger

The mortgage reflect by portfolio million my quarter reductions the book estate also impacted activity regarding increase Trinity some the residential in general prior comments of rate $XX in are the in real and environment. the with following

Louis our aircraft Slide growth reflects Regionally by changes solid specialized of driven X, agricultural with some units portfolios. finance Within of business on impact modest in $XX lending the in in million St. mainly growth origination. in EVL posted QX uptake strong and

providing County the was real St. area. the groups premier in in Louis one senior the portfolio the in Western highlight of the investor on quarter of debt high-profile purchase commercial was The estate Metro a

services for also equipment company. activity and C&I financing thought million Arizona included company also particular up recapitalization a had and growing year-over-year. $XX for and financial quarter acquisition roughly transportation XX%

loans of Growth number mixed-use hospitality including the funding is well construction year on originated coming clients course for over sources of in categories. as estate as new loans the and a from investor real

see We with services and the C&I more companies new loans in opportunities also electric storage including continue to industries. contracting, medical

growth. frequently the by by economies our this talent the most competitive job as new market cities driven to leading nation well our ability creation momentum best economy Phoenix I’m in robust from cited performance, we attract in is seeing disruption. as are and in the population GDP among encouraged

our the business our market, this expanding presence bank entrance resonating experience the new and all ERA overall here to of attention new across of a with From the C&I with to lending. QX relationships, produce pipeline pipeline And is attracting an opportunities. long-term bankers new in an loan upticks while community near-term local of specialized is seasonal perspective geographies mix early in solid, looks and the

client This Turning also the business relationships solid of consolidation which an balances. being impact Slide number a of balances enterprise. the of driven rose now banking as of year-over-year new to mix excluding new and deposits positively Balances on XX were through in DDA consistent up incentivizes Trinity. Growth of deposits million and process of quarter the by X% commercial X. total show is growth by impacting to XX% is execution and

concentrated moved of was commercial higher provided to this the Growth larger, prior also more down had in we considering which saw growth encouraging in us cost particularly, quarters some quarter. and QX balances

behavior see alternatives. positive also pushing to continue idle higher move to yielding to balances move We the

teams to transactional while to relationships retain the balances higher able allowing been have deposit rate well sales to execute move. Our

Overall, the strategy is producing good results.

During QX, what than balances terms taken at originating what is new better we're would retain consolidating it have to and more leaving.

deposits closed We that new also net balances originate with totaling continue to times new accounts. three nearly have

increasing with credit as a for the your known. strategy defending our and Within retention New their a have which been by well Mexico aggressively and courting our friends brands of our Trinity clients, executing strategy continuing bankers for as unions banks as to relationships expected New introduce are highlighting talents, and wired Jersey community we support local local then partnerships and was

our been turnovers retain to we've nature diversified low minimizing well as of and good in successful far, about So ability runoff this as book. feel cost, the well

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

Keene Turner

Thank Scott and everyone. good afternoon

a the and quarter The third increase sheet $XX.X X% the on that and quarter driven fee Revenue balance linked at and interest all demonstrated was continued was our quarter of execution income it both strong stable a highlight fronts. results million were from was third from net and growth.

and on common of assets per the or tangible return return and on XX%. that equity $XX.X for reported produced $X.XX million quarter third We share diluted net X.XX% of a income of a

position, capital our the common percent. to increasing equity build X.X% to tangible continued earnings Our ratio

is strength these return in during this and our increases. shares We value activity price can excess The dividend returns of continue through of believe of continued approximately repurchase XXX,XXX to and addition to third earnings to driving way quarter. return average allowed capital we $XX.XX that important an us to shareholders

I'll largest EPS. the second where that Obviously, improved for merger Slide is quarter -- from roll to second related quarter. third the EPS driver charges begin the quarter in quarter XX the we linked $X.XX in the of on

a Generally, Trinity us, about $XXX,XXX primarily we quarter. in good I credit mostly feel incurred like third the had behind of mean, tax income. expenses income We non-interest are quarter the

and realized with reinvested the new also security in yields. securities gains of the proceeds when were We some higher

and income activities from additional the from had X% linked the workout benefited quarter, quarter. also a We second had improvement loan we that

Other non-core combined successful accretion share. by shares $X.XX was accretion change from incremental several The in in the and and items, non-interest expense, our increase per on rate the increase loans. acquired resolution to incremental tax EPS

Slide balance current our impacted growth XX. income modest net net sheet to net quarter. the quarter. The on interest to on the grow interest contributed move to in our core efforts environment rate interest in Nonetheless, compared core interest margin to second income We'll the

core loans that able the and net sources, interest wholesale deposits some funding we the the This To and X.XX%. grow from negatively impacted bolstered of to declined use these and did which require of investment in other quarter end, portfolio. to margin some and the both FHLB were quarter trends the linked in actions

XX deposit trends much weighed given assertive, decline of most points one asset However, plus LIBOR, in of yields. We month were repricing, were to growth not the aggressive, existing the basis which our on heavily relationships. sheet importantly balance and customer growth, and new mitigate able

points stable market account. within It's was deposits the able the overall And at decreasing were quarters. begin of the XX managed and worth and we noting pricing second cost basis both money third to for index

customers be the costs. manage opportunity fair as taken our along quarter in of primary there pricing. seen protect deposit to the in both to continues not lag clearly being the deposit relationships There way, have some goal we're we reduce full to shareholders. the And and is there benefit careful yet to and thus And some actions

positioned Generally, upcoming the year. begin forward believe and well the we look to we're quarter fourth we that as

deliver liquidity this liquidity environment. performance believe the as We navigate strong us, strong through and consistent, current our we we position helps to work financial continue all Our improve of further to measures. is us to

quarter. reiterate and core have that Our not income defend as several I'll margin is expectation last plan. don't core interest rate the we continue that the major to defend from to environment during interest and net grow is the quarters. we we behaves to net to did our we expectation goal to say just net here have current any that the third extent margin as interest interest be generally shifts and our rapid That

offs Turning resulted growth of Slide on trends, and provision a to $XX X loan our basis $X.X losses. million XX million points net charge credit in for loan in

all resolved. loan noted of positively remained we as to compare non-performing quarter administratively to loans due improved continue were during that were two strong Our the the past metrics and peers. previously Credit levels our favorably

fee to income the Slide XX, and card expect income income growth tax XXXX high-single-digit non-interest in million to credit services. continue On and income opportunity workouts. We're on before in to principally from due quarter, increase increased credit and other primarily an loan $X.X Trinity, target in due and tax

this the million of million and were incurred in merger us. incurred of $XX.X the to million realized. Operating Trinity. in our been Slide expenses integration savings execution A be the largely under transaction on the and charges the We quarter most to the second XX similarly integration in but are on cost could have At reflect our amount the efforts expenses $XX.X $X.X in of point, modest compared quarter quarter. behind merger fourth

to ratio XX.X%, Operating core the second between in expenses our the continue was basis this forecast half with quarter forecast level from the the prior The million line $XX nearly efficiency fourth of $XX and for and the million down year X% for XX were quarter. we year. linked in and points

deposit as measured of XX balance and quality. and sheet risk as credit through Slide Company. improved well organic We're the the and growth profile the grown positioned strong consistently loan on well with wrap overall liquidity a To a of stable quality and up we've M&A, combination

We to to continue expect returns consistent and utilize to earnings. operating drive stable leverage

and in our growing We earnings multiple continue power. execute the facets business to where been of we've plan successful in

ourselves we We time. are pleased continued expectations current performance, future. the We and your the our teams your have for of for appreciate with high and support and

the And for now open line we will questions.

Operator

take question Rulis from you. [Operator We'll first Davidson. Instructions] with our D.A. Thank Jeffrey

Jeffrey Rulis

given the the New I makes was wanted unique the footprint, they I up to markets Scott's follow seem in the kind that transaction. are is both Thanks. comments the heavier rest competition, and maybe your a some areas maybe based on bit regarding wondering But and of rational? there of deposits, of particular, and Mexico sense broad kind in areas if loans where competition more

Scott Goodman

other Scott. is was X and loans sheet. continue offering loan we're this balance the generally local banks the to markets, year term some first Yes, in of on generally Thanks, I side on seeing to think XX extend, maybe range a take

that for maybe X think X. to been I seeing we've a while,

I tend see think many basis, pricing cases them to in X%. we a on sub coupon

of we're that's think continuing kind I a see. So factor to

We In seeing floating cases, the to tends continue I on to stay lot credit side. a but structures may we're of if extend disciplined. swap that be we're rate, we're think to using terms, some be a or going loan What for usually end seen emerging in from while, or that seeing And on but a little more again, kind bit markets, limited the CRE recourse. side a C&I it's and non the of bank. a we've local lower of a the smaller

a more deposit And they're is we're above of to of that transactional, deposit index fine. alluded letting think going, call away we're the balances kind that's walk funds. I that's I their to side. are times funds what to trying side, would probably where we're then the what that on I I That's Fed crazy going the little the on think that we and bit tend regional seeing And pricing Fed from The many the rational national. or than in see some locals

bank for balances, think particularly seeing C&I would credit on more a add, what we're that other we're from I obviously the commercial going cash idle against factor, non we're the are lot idle that cash. on seeing competing unions side, competition, Fidelities just the I and think And Schwabs business. I after then we're the

to what we kind is there, that's to in it's cases posture idle where relationships want, cash let go and but many need to we do Our going. we want retain if of

Jeffrey Rulis

about buyback M&A guess And this, and/or gears quarter the or buybacks is average of guess the touch today. about, could appetite, but on capital do use? well, this last current more on you just update Scott. price I above just that I on anything Thanks, switching anyone you're XX% buyback capital. your the address

Keene Turner

I this don't Yes. is think don't Jeff, priorities Keene. -- I our have changed.

one, organic we growth, can first think, if achieve that's I foremost. and

and there earning at balance strong If a we're our can so is level leverage continue think for I sheet obviously talent M&A to integrations with together. high priority. a companies we bringing returns,

think, earnings to second. part dividend just then of continued we've power. the that maintain I as a obviously, be will growing And

third think Certainly, but maybe mean, what there little there to is I stop take repurchases of volatility the some a strong price was of performance, I a management stock the was activity market weakness and it, the that of to the and adhere to we shares, I have advantage we in the not that is the extent necessarily in continue quarter, capital gap. share to nice bit think something driven.

shares, X%. and like for we manage continue feel move And much as to the X.X% between paying will too improving that as capital long not the levels we we we're

view that line, capital As excess that and of we much capital respect too have I we long. don’t don't too sit out we want given get to have think, currently to too really shareholders on want our for the

a So, at and appetite have little between bit we a aggressive X%. more here get stronger

Jeffrey Rulis

to coming Keene, going to quarters? were you operate CECL guidance

Keene Turner

We in expect, fourth out the that effort we're to put with in our but we're group, not quarter. going to conjunction guidance terms leave out of CECL going peer

I and guess planning the going PCI and down the in able tell models. you third one, path scenarios certainly on add would we we're output our various number that, for you allowance, file directional can And from two a will there when to validations to credit specific I get the discount So, impact is well say I you final and quarter be that obviously portfolio queue. things, the the to working

given what institutions the just The their duration where most loan to be. booked about seeing most like, maybe maybe in going larger of of what particularly compared also report look years. think would to is size full C&I the portfolio we're we in when I on of some then, And they others recent here the say short that, nature are increases

general the posture all I increase, provisioning. as and our And but I we side of look conservative prudent and that is the on toward allowance think prudent think mitigate so,

Operator

Thank you.

We O'Neill. next with Andrew will take our Liesch question Sandler from

Andrew Liesch

a to having should the a quarter points, Just last touch going I as rate you mean, account ago, but lowering on and too compression said didn’t opportunities look a but maybe LIBOR Maybe in for a briefly. cost and this more benefit, on you not as to like you just are margin? there had cuts. core you XX On trying many are look commence, how from quarter much lower basis come maybe but aggressive suggested wanted deposit the to prospects as rate could continues deposit still quarter basis, lower XX rates this margin here you we yet recognizing able exception forward at yields if you be to here? after as the earning are the core asset that do, to

Keene Turner

got maybe I really what Andrew, we which thought longer I the there quarter clarity bit as expecting. gave more like think, is a At sit here seems I certainly than has dramatic think little environment the fruition, the what we is to view change outcome were on come what think most term it think Yes, a little It I said that of we a last is here. was. overall bit more we likely we point today,

I we we forecast last did feel bit little So better than about our think quarter.

know, and Let at very points that, quickly just that two that repeatable. basis was say last purchase non XXX we of accounting me included quarter were you

the So, repricing and we nine would grow the and bit, that are little portfolio from we lag. deposit we down investment knew a there let

particularly. managed had the XX taken and we bps talking stuff another the hopefully that The you've our obviously have that and about haven't from down we the deposit funds moving. LIBOR the year, XX. start money index just you off the were of and on fed eye repricing, XX was fall So, It's ball

thereafter. is net a use we're can a income about as issue, core So from pretty timing generally is feel within generally a And where growing that points. good I and we this basis hold we optimistic that to QX few today basis I think QX margin think and stable for interest

margin income, term do retain that shrinking hope focused and things margin net optically sake and So, the but for just having of become balances of longer don't trying we're look better. and that's interest the over to the customers our sort simply and

point not we So, repricing I'll just I out would this that CD up and also wrap aggressive with whatsoever. were

in the a I think you and a quarter, coming coming even certainly slightly with was bit that higher was have vintage of been might can ray little see up what the off the on. on balances and

to there. that's lever wanted really a pull that we could that we So,

with know urgency driver we don't any as I as great the sheet really we to again, what should there's be there near-term continue the good that most trends will help balance commercial strong But seasonal I long And to there growth. really that some the get and happens growth there us think for next be on accounts, typically and quarter expect DDA time.

Andrew Liesch

then have still how of I And XXX earlier and prospective I you, for on now. to just that's folks other helpful. going? that intangible stock than that And now? really okay, think there kind better mean, Got out at a you currencies are freshly, right Trinity appetite conversations with right follow-up, Recognize M&A from some acquisitions your targets guys what's

Jim Lally

is process is this ongoing. Jim. That Andrew, always

it one So, or speed up necessarily another. season doesn't in

active had franchise far on, is, companies, several with too about it's better. the we've that to So, making nothing along obviously but report discussions

and the company are, last like deposit two is the base focused our the of what we opportunities seen last You've what the had really times. and that's makeup improving those two companies we're

Operator

Our next Jaffray. Piper with Nathan question comes from Race

Nathan Race

But cuts. And imagine the this weighted of quarter function in would partially particularly of composition on the fourth trajectory the that you in a in the for yields XXX here imply production to the I third the heels new pressure, of update XX discussion -- production core just the of the is quarter, with get XXX so bps quarter, you September the got of at average on or you on how quarter? some back further see and Going can curious to that loan rate loan some down quarter. fourth NIM the the rate kind

in yields So just core curious kind to quarter? get thoughts the your loan fourth on of just

Jim Lally

LIBOR the think saw pretty the Nate, rates became we quarter when Yes, first down, rate maybe third and I felt move like apparent. foremost, cut we I guess,

be underlying we'll is I secondly, say about more optimism I'm is XXX, won't that our the would defend aggressively. bit we'll based that LIBOR view, little what on, think have So, think for a it to But that and I our but get and issue severe an to more I say I I it's reflect, that types was, those borrowers we but it categories of banked, a to we'd point, that expect some want just when at lull loans think don't see a call bit we from the look a to of and low the maybe where of little of were it.

start your So at of by, are a segment to driving those And short term, rates down a bit. better. when little you you when that bit CRE. that are what's little the variable rate those are but some are fixed C&I, those rate then Those look fairly more

expectation seen as that more in we've we like could our they that as get help pieces but would have that of severe, the activity be business doesn't aid previously. So, contribute the that more see yield past certain maybe so in

side. in the wholesale and and maturing little to a again, has are other the tout wholesale also a movement pressure funding that'll it's our quite the items think positions we and some that maybe get will that QX expectation in little provide can to not but downward as rate is more have funding that's that CDs or deposits bit mix broker helped of bit runway the at same fourth time or quarter not overall help the both I in and on on from and So, aggressive, repricing a us QX,

Nathan Race

soft along a either have just remind still? accurate billion in us lines, the think that's you curve, or $X.X you like those can that it index is hard I And of kind deposits was ruining

Jim Lally

hasn't that that's number Yes, changed.

index XXX an vice XXX So exception and yes, or it's manage. versa and

Nathan Race

changing loan growth. Mexico you it about And gears intentional credit mentioned some for had trying one Great purchase and just that from off portfolio had loans and bit little loan. we're away you then to I think New in mix just impaired think residential maybe. single thinking Maybe some family all I Scott, a some

that do some it when been front, you have there's there expect growth on hiring like down that when late. anything you see maybe seems curious, to and So if because know, doing guys of just to you left some of you're franchise

Jim Lally

to it's more million side. $XX PCI that I Nate, the on was off. think relative difference run Yes. majority A of

I beginning grow. impact I opportunity headwind. we I was fairly significant that expected be that think the that a fair the looked wouldn't would It's not wouldn't, small. at a expect we mortgage we at something to

opportunities existing think relationships clients widening with book I more for bigger us capabilities. will to table exist bring with in the a the who the check

we're other metros think presents Albuquerque the Banking, I of And bringing with worked metro and the the just that have our market in Business given which to some strategies table. familiar like C&I

So that's really where the plan exists.

I you think to pipeline, the it look continues rise. at if

those over So there strategy team And execute think come are opportunities I with out our time. good near our positioned is term will clients. well to existing it a growth in Albuquerque

Operator

Brian from comes question with Martin Montgomery. Janney next Our

Brian Martin

it, seen a that seen have seen a a I just have they've just I been noted said M&A, pickups up? pickup. guess in banks guys discussions there's at any maybe you strategy, you question know looking you're I it. one Jim, if other any missed that more Good. some of you we've on you but that? the pick And Have heard But Hey, discussions?

Jim Lally

we have consistent is answer a The very pipeline.

what these has over So consistent ours I companies level I years. don't know but several this would the been last from other started, say

general, maybe seeing to so out urgency of there. that companies that's you're of what banks headwinds through, going feel up in to the all are sense to some partner, looking who are As think, maybe it relative relates I some may pick

Brian Martin

maybe margin. of, one margin, the back And Keene then kind I just just on the to appreciate comments your

increases maybe commentary at an and of does December that of October, about next couple mean, I kind if outlook, having cut. give in the your context you change all, if you over your Just January mean, here I the three months? think rate

think the kind versus what of you kind outlined? under already kind you it's margin about scenario of of type of So how that

Keene Turner

that Yes, I at the if going will I because significant guess of of another help of be base cut we continue we we've where to And of think we're call things rate the to or lagging, improve would variety I given the to fact And idea near-term. the start believe I get to we've we are done we've to have say, it power, able that margin earnings LIBOR, the of majority rate if worked through, stabilize to as certainly, a we a you least side. scenarios. the matter number cuts to attempt a deposit cut get hold think, rate

aggressive, just haven't hoping three over to and as deposit that way. much in my we scenario where, along loan not to been low the pays we've ratio. I the get a And XXX% shareholders I high fair we've quarters, clients two And comments, horizon -- that but fair or we haven't we where think indicated got, dividends, in been to a next a term might to back longer XXs we're to

very where how to increase. and clients and have with be trying we're So, us very, or they how come do about a long thoughtful with been had rate from, maybe not have long what they've we had they

on some side. us I the And saw revenue think that you side you've to the quarter drive and try I income fee more on to things mitigate credit seen a good do tax help so think growth,

blend sort the for full you fees credit year of and front. of mid, in on I when progress Trinity same on or we more continued to think all a single-digits mid tax high expect of the low, the it with

respectable how to how that thoughtful I and about interest revenue we're knowing want. growth, difficult, the really that be of So we and rate returns kind then just we make drive that overall EPS looking expenses at do environments saying driving sure we're deploy we the and think

we fluid. take best the efficiency would how I targeting mean, from we're interest I efficiency manage byproduct just actions for And from hopefully really and a formula. do and we're to experience we're into the we about experience. current can all say, growth very I say client associated an challenging prosperity margin and be net more leverage same is both times with trying trying that not feels would also, how enterprise. that's a the of on like, deliberate the just ratio, to the the business. environment. So, It's But ratio. It's an We're we

Brian Martin

thanks. are in kind guys of floor? remind and how the portfolio helpful, And floors That's you have of the the just today at me many amount

Keene Turner

have have getting think we're have the lot that's to and good the me the currently things don't We just I I that. floor. on seeing dig floor find Let that progress, a here. I page. on

we've about and in million got has XXX the got that on portfolio you've floor. on the So, about XX% a not of floor

bit built call start really that few rate protections to of you into if once in. little to cuts a you get get cuts, more it, more there's your kick point, particularly rate some starts So,

Brian Martin

the And the to was guess, we last quarter I that see pick me, right. about downtick how we this that for of Okay, up. a kind accretion should just to there two just level think forward? incremental all should Keene, say, going start

Keene Turner

thinking is. acquired non-core about or got, net another we thinking the Yes, penny We've book. that income interest you way I two and think quarter about it of from whatever think core the incremental per you're for we're got then accretion

Brian Martin

how rates of lower and efficiency kind as impacting the, with on go core possibly just one we environment in if under forward, about last the I the the going And revenues. mean, to think right. you're guess we're I all Okay,

that's as do about Just think you ratio a think depending think Do about, likely Is how a you efficiency map where kind efficiency just year? it the year? growth bit you outline organic next little of the kind you've road improve lower next up more margin can core the see to or flattish we core doable of be bit? the the guys with driving

Keene Turner

we level to can that sure we're the business. Brian, I that think reset expenses. after that that period continue make little improve gaining we we're time seasonally XXs, the a and if think the work from tax relationship that that as and would efficiency in Yes, revenues operating execute and a I would get want that feels ratio taking well the our of credit we seasonality the in QX expect way and QX idea in But be to like we as then back to a for level to driving can that the say on customer of think with bit deploying new fees, achieve, the low quarter I always fourth we I

our neutral, simply that historically rates a the vicious very of maybe because more to it’s a margin appropriately going that XX% had gets also has thing not and think we're expansion, efficiency having cycle manage good do as been expectation And expenses so, somebody hire a to efficiency some ability incremental a of also marginal ratio like right If you help long-term efficiency, it being maybe be but who's XX%. manage more we just just or to too. that headwind to not to in market if to some think reflects when of than XX% I

So, I thinking, not make quarter. and you're knocking X% or marginal a we're think have XX% of be but what X% the if down to quarterly there, revenue bit it little that’s you growing efficiency start will you going gains but ratio, you in a generally

Operator

the There sir. instructions] [Operator in no are queue, currently questioners

Jim Lally

speaking day. us. Cory again, our Well, if for your of forward Thank great company a next quarter, all for look not Have thank and you to and support thank joining to you we sooner. you you all

Operator

Thank This you, ladies today's gentlemen. and concludes teleconference.

You may disconnect. now

Enterprise Financial Services (EFSC) 22 Oct 192019 Q3 Earnings call transcript