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

Jim Lally

Thank you, Todd. welcome fourth and earnings afternoon good to quarter our call. And time all in. of appreciate to you I taking listen

Joining me Officer; today our President company's on Enterprise the call Financial of and is Officer Chief & Operating Bank and Goodman, Chief Scott Trust. Keene Turner,

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

for balance Services our Financial and some a quality XXXX The return integration Corp. Mexico the for year following the was highlights. our presence shareholders. deposit geographic and to Trinity managed just acquisition pivotal grew sheet, high expanded of organically with of our a and New are capital into strategically provide loan the growth, We We Capital. Enterprise

During organically X.X%. year, our share. or diluted $X.XX portfolio we We $XX net earned per of the income by million loan grew a

ROAA As X.XX%, Capital, net acquisition. an integration Outstanding which excluding previously, interest control, had attention merger margin of I of stated our a to successful contributed to we costs. Trinity company's largest and expense

of and earnings details posted results these highlighted fourth these will and which diluted of The and and Scott When by provide much loans spectacular drove in our record results. of scaled further X% X.XX% XX%, Keene respectively. We technology in per growth solid deposits. XX%. people, an $X.XX. were ROATCE ROA equally and we more as quarter on solid attractive investment quarter share The was was annualized,

strong interest year share to results were Our X%. Contributing on grow X. ago, these per earnings can income to Certainly, to fell by ability leadership net year. helped, pricing core net our dollars and points. but to a margin, financial of during be grow growth very XX attributable compression found XX%, deposits our assertive was Compared Slide turbulent interest and a basis to despite was in by which prudent team our the we loans scorecard able by the Trinity our merger the

in a remains to quality last our Credit points, of At peer still despite NPLs our XX year. uptick company compare favorably modest a hallmark we to basis group. compared

the feel worried is of as resolved be we're given that provided in represents previous quarters. will this trend, a relative much that credit this Additionally, reserve we not one

I've at life our constantly in improve As was mentioned This during to improve Enterprise positive become strive to a I'm and way strong on evidenced leverage. that continue previous we we by area XXXX. operating will calls, our incrementally has this This business. of

Finally, several the compared set this The we this base. improve Trinity cost by increase merger in out seen of years to deposit and certainly space the year. can ago, be to our XX% last and when has of enhanced impressive composition

X Slide focused. where we to you as are reminds

successful. been has ways well our already enhance market market these to in newest and to-date Trinity -- We're well our of find integration serve strong to in the previously, communities stated continue positioned I business. As our to

the a compromising not year This strong or while slow in we credit XXXX, start finished growth quarters. achieved After disciplines. was with growth three pricing

sales working. and our processes improve to operational efforts Our are

improve strong leverage to the further continue these to our results in years. investment these will in areas coming We already

This lines goals As to require done is further to loan refinement all organic our will paramount. and business regions relates deposit our achieving of XXXX and it sales contribute. be through focus, process and

the on the our front back the ends. focus in and improvement continuous other our of all heighten on facets business, will we Finally, both

Trust, to more who'll Scott like and I turn detail now our about Bank our about call over lines. & provide business to President much Enterprise the would Goodman, company of

Scott Goodman

and afternoon. Thank you, good Jim,

X. attention Trinity as your or at XX%, growth $XXX year was in XX/XX, the balances with attributable loan million for inclusive roughly million of first of line Trinity was number Loan to increased growth XXXX. to expectations or Net X.X% the Slide $XXX acquisition. Turning in the loans

real QX -- line solid mainly annualized. seasonal lower of usage upswings QX loans, levels XXX clients, or C&I improvement with of from estate from loan The to approximately in $XX lending, sorry and on or specialty was higher growth also funding I'm is million X% pay-offs. commercial development due

X loans and continue growth year posted emphasize to up lending solid X% QX. business with year-over-year number this we category, slide shows, XX% net As and C&I are for model the of for C&I in in our Trinity.

experienced by Breaking of the all Trinity growth We in estate attributable estate. large the residential Slide for increase nearly primarily investor on commercial integration down XXXX to of category as units. real X. in business in number the the is growth real The is year this book

more CRE. was balanced general between growth C&I Trinity, of Net equally and

satisfaction. on partner. construction geographies where development aligning can significant emphasis on and C&I which deepened a or can relationship our of time investors and and retained model be with client strategic proven place to ourselves adding estate real of loan leverages we continue our related We growing Commercial philosophy our best-in-class developers strategic growth core and be and key remains over relationships, through focused

EVL seasonal lower to were pay-downs due also declined categories, year, rebounded lending the compared or QX activity enterprise million sector, We down the equity this modestly clients. higher XXXX, companies sponsor by private our to with and by with early by pay-offs. in platform Within growth in associated in of prior the year. Originations aided typical mainly sale in levels $XX loan specialized value balances for of

proven in profile. community credit and model, in is this as with more SBIC seen of maintain partners have firms some credit well segment track standards important diverse our in records. focus banks from solid as on segment, We resulting non-banks, particularly outside the this We local it which that terms, fall competition believe disciplined including to based using risk

for insurance earlier QX expand saw are the finance momentum by for and but activity in strong a $XX key QX the continue offset strong. bolstered product The tax quarter. LIPF the Life slightly will in of housing $XX Fundings credit this by demand year during we premiums a states is fourth sector. in programs was in existing bit year, year expected a affordable long-term with XX% experts reducing more growth the as pay-off. Seasonally, activity of million also posted ramp-up reflects business to experienced the large or grew by where on in growth. premium growth QX, This partners, million nearly during for with policies came net who

slide X, all portfolios New in outside on posted XXXX. shown units, legacy Trinity of loan Mexico the business number our Within for book growth

or the majority specialized posted grew by aforementioned QX, this Our the quarter. activity and factors, lending existing year, its both in opportunities and as million the including elevated aircraft quarter good as well clients. C&I origination a X.X% and included roughly seasonal upswings. million the new CRE Louis finance was based growth $XX activity on for in QX in The strong and market with $XXX of mix St. of

that earlier power fundings quarter. as this in experienced investments several commercial to in space packaging from payoffs equipment and the and industries. distribution borrowing well new during elevated ag Larger relationships past Louis in St. XXXX we'd clients The the requests as also real the estate relate new diminished

solid CRE categories. XX.X% as out City record $XX with new growth, with owner industry, year the through Kansas in loans or by operator and annualized a grew million quarter. XX.X% a company expansion were as $XX food a for loan year-over-year and well million in QX. solid as Loans a closed Originations in well, large the Kansas or of both and new including relationship distribution retail and acquisition investor City

reflection our in numerous disruption Kansas bankers past market the mentioned have on our we our brand to experienced I platform. to ability previously, capitalize operate talent our growing been and to As few over years. of this successfully able attract in is to have Growth investment on team City the competitive a and

Most of Arizona year a of posting of also quarter. growth nearly including this XXXX, million robust million third real was activity XX%, the around following good in or estate funding. increase construction QX, and small a $X quarter commercial $XX investors a in had loan in

expansion key which economic lending opportunities, continue to Arizona construction will We in into a in environment market. growth leverage this client higher by support relationships and

also portion relationship of meaningful is of component strategy important an focus CRE a balance XXXX our going Arizona and growth C&I our new we prioritize forward. in been in while intentionally here, our for of And which development process as has talent portfolio, a well that as

the will intentional of run, with this centered be leverages mainly that Mexico of acquired, out-of-market our retention of run estate residential. this we value in portfolio region. of growth and resulted dynamics around the as in development as loan deposit business in real region XXXX and and aligns better well strategy In this base high in short For competencies, has loan core the work modest the here, the commercial transactional portfolio community off New

On comfortable our get specialized treasury Enterprise capabilities other side, capacity, increase with with and and opportunities the Albuquerque as of management. they mainly seeing the credit elevated flip the business borrowers, we're majority Santa a and to lending Fe, story, understand in around expertise

teams the our X, Trinity growth how in number reflects markets our XX/XX. on in in provide inclusive modest addition the just billion deposit which manage than This to Trinity year-over-year, over is costs organic relationships a itself on growth more of X.X% on of financial low funds more $X organically just lower other performance. net balances. growth, a mainly summarized Deposit our book, rather high cushion XX% than provided within were to Mexico, and the solid deposit value Keene and historical which of will slide at enable manifested proactively detail this of focus dollar cost more

million Deposit grow on or and in strong the cost relationships accounts balances. by the average And is of outgoing annualized mix, core we teams remains from at our funds emphasis deposits. transaction core QX, continue as deposits is type XX% said, from accounts. impacting continued DDA closed of that business deposit of inflows the That to lower total with execution inflows associated new banking representing below lines. $XXX The commercial in those in new the and did accounts new XX% rate coming outpace positively of

now, Keene comments. off to his hand Turner CFO point, our like for this At I'd to it

Keene Turner

full and year were of $XXX quarter or by of XXXX Slide finish $X.XX Fourth increase $X.XX represented $X.XX XX% reduced acquisition from with level. per $X.XX. by growth the combination the expense the EPS that Non-interest share in year. XXXX our Trinity share organic add per to we XX% the a XXXX. or share, in changes XXXX. increased net Net reflects earnings of $XX in Revenue show income prior increase where to The to a results operating was revenue the Scott. refer in and compared million We'll million, EPS. an to per Thanks $X.XX was XX, strong solid approximately

$XX will In $X.XX related reduced addition, by costs million merger of EPS that reoccur. not

the effective of our higher planning diversity operate Our tax continue earnings certain the primarily in opportunities XXXX to to were period. XXXX that The business utilize the business in model to In XXXX to an in we rate net that approximately add tax than result power. we and us and our manner only XX%. prior is efficient available was to that continue strength was and due to

return summarize, To and for XX%. tangible X.XX% return average average XXXX our was on our assets common on equity was

improved our XX.X% an equity. on Excluding X.XX% to delivered return assets on we common merger-related items tangible return and

share $XX year, million million with stock. of portion and our cash capital shareholders dividends we over $XX leveraged common or the in million our we repurchased returned $XX per Trinity. flexibility. of demonstrated the $X.XX We We During to

we our Combined return approximately equity our of million ratio built not common have total maintain profile organic still tangible by from year X.X%. to only support of $XXX over extended growth, return shareholders demonstrates to to leveraged our that it with continue optionality also the high the prior horizon. a an capital the utilized and but the expect capital quality to capital to This demonstrates increased we we

to diluted Turning of share. quarter, fourth per million Slide XX $XX or income $X.XX we reported net and the

a non-core average quarter acquired fourth our stable assets quarter from reflective was per business third Our quarterly on XX%. that share. the whereas quarter by X.X% were a lines and included reduced $X.XX linked the -- equity return performance Worth the were common of some of from on the our with largely assets average comparison core tangible relatively results with noting, return gains

LIBOR earning on our managing deposit of share. $X.XX on assets Tax seasonally focused non-interest strong improvement in and the impact EPS a in approach driving rates per the fourth neutralize per $X.XX quarter, a property write-down per Growth share was about income decrease income. decline costs Non-interest expense. and included repurchase earnings non-interest from fourth penny on expense in tax quarters a with share. third in slightly resulting combined lower the improved EPS an in a the And ORE from by share our and credit

related quarter. loan items, increase we $X.XX for other to do The merger-related expenses provision as by any losses the fourth recognized EPS not expenses and merger in combined

interest basis, core of XX and net interest the stable at points income to net on decline Lower and X% Turning XX, interest relationships. basis yields our Core XX reduce XX side. with point wholesale money the LIBOR overall quarter moves customer typically the net X.XX%, on a were by cost basis lower decline market in from was transaction loan the million. the the basis resulted and was $XX basis being a in deposit of income yields customer while a point maintaining managed point account rate from the costs Slide on yields on that offset linked in quarter. linked actively funding rates month decline quarter. funding lag one We margin in of third This to decline our mindful a

basis XX points down quarter. basis Our points, for was linked deposits the total cost XX from

power year tax benefited by typically in continued wholesale the cost that in loan inflow do last fourth quarter, yield. accordingly. our higher the outflows the our quarter commercial noted we deposit out distributions. Scott payments first some and on ability and pressure occurs point clients Then to associated as as maintain see I make earnings from deposits and the of a our reduced our bonds one end We despite also seasonal borrowings

As LIBOR first to end the year maybe rates there since continued have margins compression to decline in some quarter.

material stabilize interest in However, to rates. in absent movement XXXX margins additional general we expect in

Our quality to dollars delivering loan focus net and is to income deposit continue growth. by expand interest

deliver third quality and we're for from quarter, results the high in year. momentum believe the to the we upcoming well shareholders that With fourth positioned

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

in classified an charge-offs provision improvement loans requirement. net substandard increased, the While and overall reduced

level non-performing due losses non-accrual. placed loan was the loan impact did quarter This loan non-accrual to provision to significantly did $XX did it Our million as when on not that increase one primarily the the during reserve went for establish our our credit of out in management is are the aggressively noted. prior have posture This and manage current to in which periods. XX% the teams balance reserve push credits reflects resolve That unable that approximately them. environment and weakness to

quarter workout strong increased $X.X It's transactions in our tax growth The ever On loan million loan and from Slide income linked $X.X with the in sales quarter income. current best were acquired the the that customers on had from quarter XX, income. the somewhat $X.X on product. the the we've another this had the gains with fees non-interest balance worth quarter through approximately million, masked from from noting Missouri income investment non-core was credit. of million quarter non-interest of brokerage credit quarter fourth sheet State in majority tax linked income Swap

$X.X We to from that XXXX approximately wealth planning also from fees have we fee the from expected single-digits XXXX to is -- experienced growth million quarter third division our the decline. in tax annual realized quarter to linked XXXX. the similar contributes income in that high of

quarter fourth and on for Slide our in million XX forecast. were the Operating with expenses $XX.X line

quarter. resulted have Core into credit the from property, forward FDIC from benefit the to As and did efficiency X% small I will the expenses benefit XX%, due current include incur from $X.X at any around merger We ORE also next did the revaluation expenses linked down not we a that quarter. assessment quarter. this previously in million mentioned, reduced of related moving a an

the up a lower return maintaining will balance the base already cost for to wrap XXXX to of our of shareholders. initiatives. We the XX% our final To year on a XXXX flexibility $X.X on by return full are strategic was across our translate assets deposit the The strong returns year fronts. us our to billion with a Trinity number slide, utilized acquisition We well position record for end improved for grew to and while profile. capital execute our on positioned us benefit year. liquidity sheet strategically to of We we our

the now With line for that will open analyst questions.

Operator

our take Jeff question We'll D.A. Rulis from Instructions] first of (Operator Davidson.

Jeffrey Rulis

again? I Scott guess a you of couple for questions -- remind finance with on of size could us that just the aircraft the book, the

Scott Goodman

million And on is XX it, to dealers really I and of the I'll the believe trade. in XX a business. remind now, on take in Right fee a driven plan you million aircraft we business it's that roughly a aircraft with it's who sector, range. floor majority

We also operators quarter, a remained But some less for the in use that's strategy. aircraft did get owner their out fourth on we who some doing occasionally aircraft in a growth business, that finance books. the of the little of aircraft

we -- a really So view but fee business. this overall, as

Jeffrey Rulis

And sort some your growth, year-end? more the you on over term some compression flushed short-term could I expected of hope book the when of trade out of or largely longer-term that Mexico runoff. is I near of market, out think comments New guess by expect that point

Scott Goodman

assume, And talking deposits I you're right?

Jeffrey Rulis

out-of-market That's book. were Well, slide the loan you on referring that more the… were some thought I the you to on CRE, it's running side, really out that to what non-market of when loan

Scott Goodman

some also residential. Yes, non growth, more that Right. loan which market and used on tenant aggressive of end the had single for portfolio was they the doing CRE strategy

for do seeing yes, we strategies, of leveraging clients is what core more them. their more into a funding used And of off a of what trade getting our you're I to can so think bit little

our we got on sheet going their number be good larger would leverage I and that balance A to it’s have already clients of in new stabilized for clients growth. think good primarily So, in I pipeline the from transactions expect can bank. long-term from now, here

Jeffrey Rulis

guess, Keene, tax on XXXX? look mentioned item to for line specific it exceeded into credit that fee the that And you income you growth overall. expectations I 'XX. were income think in I thoughts Any if line,

Keene Turner

Yes, trend. I think expect similar a we

said it was going 'XX. XX% we think XX% 'XX be I and to to from growth

we're a 'XX. to base certainly in think 'XX growth a XX% on I targeting larger

good So, momentum we've some got there.

I year. be throughout bit going [indiscernible]that’s lumpy to only next think a little the

the some So, in quarter. first like quarter, the fourth made quarter some I second income quarter fee be into robust as third think getting we've quarters as will and also in not but strides 'XX, earlier

that to we that a year, there. re-ladder the more we'll we it time XX-ish as for I optimistic kind we're and over of bit think, business So, a similar little be But percent rate able make repeatable. overall growth expect

Jeffrey Rulis

for last And Keene. one me,

Just call on little the might that provide CECL color. able QX mentioned on be I think the or a more on the to the -- provision you update you

I currently the mentioned double think I to that you the then if PCI book comment allowance made that was by loan and you we -- overall. kind C&I that short-term think I a be might of loss just were think other moderated

provision day on to any accounting? the thoughts CECL So, one relative the

Keene Turner

Yes.

So, there's there. a lot

give some I’ll to you guys and a follow try me color you up. give Let then to chance

for that's of were loans So increase amount it that allowance the right XX%, our reflective and now, a pretty estimate to XX% purchased. adoption decent would is that CECL by of

some the and tangible you obviously, some loans written standards as full capital. you of to for think of going will points the take are path-rated prepared the out in that. are an that so of then terms just much day elevated that’s going think two, forward bit basis loan there origination to lever I a loans, be likely I And about number then, will so the based XX way noise non-accrual perspective, world from don't get XX in PCI non-performing on the of us. be or classifieds basis accounting, a changes what little So, moving a for points And more and reflected to

pretty a then how of maybe but like, migrates, I on rest on what the good about it I stringent maybe back would be the a that's more looks little of loans think depending think starting at point. you're growth bit and envelope the a complexion new X% better, bit little looking

Operator

[Operator Instructions].

take question of next Michael We from our KBW. will Perito

Michael Perito

start maybe curious about I on you you you're what it that I realize million can was, credit was to parameters housed downgrade business drive us can of $XX want was but the credit. color the little quarter? in, in what it I if some say, broader with give a went somewhat about bit just the negative line what of what And maybe probably just more kind limited where to was?

Scott Goodman

This with help Scott. you I Sure. that. is can

it stress kind few Louis industry. manufacturing I based along C&I St. in industry a to long-term It's gas portfolio. and with of concurrent they of think simultaneously the oil was and by to client negatively as And mainly ownership revenue had Keene dispute said, had a issues in been with a kind impacted management transition. the tied the related

think proper levels at apply I the and viable workout so. secured we’ve bottom-line short payments have So, our the ahead Feel now a well think very we’re can identified reserved at think or credit. the for principle. probably several And I group year-end options, had I is, the in already just happen that position collection run. in we’re and in could on now this XX And month where go

Michael Perito

secured, the is you estate? guys are when you primarily real collateral And say

Scott Goodman

combination base. of But collateral part It's equipment combination. the a a It's and of makes real receivables. estate up

Michael Perito

that that with were be impacted. have not the unique, things obviously that Okay. And slivers regards similar quite so? is then and loan is broader some would negatively of management but might stuff portfolio some did looked And any something like being cessation environmental it at stresses other two, could just, the that's there there to or sound have of

Scott Goodman

Yes.

don't and particular and I the in over credit, saw really that there. oil area you an years, gas revenue concentration into. few what this aggressively stress look to last any mean was not to at have if the we related no. you the material We As -- that's it went relates happening

Michael Perito

where back, just pretty some any remain the a a give made mean I more broader updated know Jim, broadly, you then us Scott. you areas grow prepared of Okay. maybe guys more you're steady, the credit the comments are specific back? out? book on targeted if environment step like a feel your we to pretty concern still kind which pulling just and it of at loan thoughts. does remarks, putting Or in that safe take I is for outlook be generally And rate little any

Jim Lally

this the Mike, say, currently. feel that Jim. -- we're about So is I'd we good in very areas

have certain or of in not I talked past particular we're think industry, a living of calls senior ones sectors the what about necessarily for certain business key will client we new sectors, to have as that of as usual multifamily us. you, not But looking sectors or there. already certain they're if any relates be for ours,

Scott Goodman

I book, good fundamentals we feel up. charge-off actually levels good classifies would the in the add, down, of about about just we few where our feel years are as past ended

So, there issues. any I think systemic don't are all-in-all

Michael Perito

hit. midpoint term couple to near XX I a on maybe million are to million, quarter. guys little Keene items was want other on fourth you the think over Great, expenses, XX guidance of helpful. move And I a the to

growth first about Is that move mean, as is I of a for that a three the guys holding moving how guys a quarter, how X% for for beyond some mean about way it? years it I maybe steady seasonal kind think is we just drive question, number budget now, you you XXXX? And a but ratio it as forward? the much that X% quarter, X% broader in then As job, Enterprise do about to a the I guess is almost my still completed have mode. expenses out you the think about or efficient done could items fair number, X% we growth mean, there's think think should or higher. number, great I a mean, very it you obviously first

Keene Turner

Yes, a a rate I perspective I low-single-digit you it's think look run modest if number. Mike, think pretty at from

million. revenue moved that’s you from think to be up think that XXXX other just going in I to the quarter, Certainly you prior think we'd work, merger has the you a higher first I would the years. like But in range number. taxes like items at I think some so items. at XX million, our line payroll million way math think range with employer the if behave bit a expect a of be current little like item, XX But more $X I typically and number, line then we expense for seasonality I look it get

So, think quarter. the of able of we're having in first and I to a execute out had and success get we've extent to lot on then see I XXXX. of start million and plans, to that towards you kind a move through our you range the think as $XX that that And second bit a little an uptick, flat you'll of up probably part range

it. that's we about think how So

some stabilized thoughtful some us we moving the growth I'll NIM be ratio year, half of the and the that expansion, and maintain allow really generally positioned work and we to efficiency XXXX, revenue try first and forward. say get can what we're on is get will Hopefully, in that here. hard to we've overlay really early in try we're the to with Now, going to

grow will book, I efficiency and marginal effectively, at So, you loan hold ‘XX. can be if I the the think for NIM think XX%, out manage pretty set in decencies we up

So, we've set. sight where our that's got

Michael Perito

and Very back. me then last will capital. step helpful, I thank from just one on And you. Jim

returns the onset when with quickly your here balanced of You to answer, thoughts of updated been kind your accumulate on there. deploy kind how beginning just approach are? that’s capital, guys short of but any quite in I planning expect which XXXX you're even pretty have obviously can

Jim Lally

of buybacks. But dividend. think those about. I we've terms very four opportunity be And at objective. is to think past, said -- number would in then opportunistic I of then our a it’s done And some the one as our we obviously guess we combination past M&A, improved we I the been company come seriously. well like we've Mike, in it improve And there's to in recently, and growth our we've levers certainly, an look used

Operator

Thank take from Liesch of We'll Sandler. Andrew you. next our Piper question

Andrew Liesch

questions my Also lighter bit right maybe Like try in but to look next for the on compared focus how industry. for guys you get this for previous in pipeline here and of to -- guidance bit now it maybe do it most growth a where I loan some to the into is tended were and quarter. to growth quarter just sometimes a year. quarter the little want quarters. first be you Heard if first little like tougher you mean the already sounded like pay-offs you are fourth

So you how part to previous playing year first feel Will be like compared throughout heavier do of XXXX? years? out the about the growth in it

Scott Goodman

Well, to jump there. I'll try in

So good was we about that would momentum ‘XX. from this, ‘XX say I the feel into over carried

something our you related have portfolio we visibility, XX XX great that As funding. days really maybe -- out. to is to know It's is

half comment the the to good about very So, about really I relative can't second guidance and we feel 'XX. first stand today of provided where But we certainly quarter.

Operator

[Operator our take instructions]. Brian Montgomery. We'll next with Martin Janney from question

Brian Martin

-- as bit give Mexico as XXXX intentional just you're thinking how downs of Can a -- of seen gave far I New of to color of you maybe the far? any kind on gave or about what your guess you you've outlook the the what you kind in in on little thought growth thus But in pay just guys relative kind the is that that. decline certainly in

Keene Turner

Keene. is this Brian, So

you of spot. we a think we good that convert stepping and systems think year in I transitional a and ended the years, things had back certainly a I bit like just

time and what XXXX. on think there. I that are looking is spent we've modest region an think think And front depend first some I opportunities from perspective, the that have enough we've foremost heard on got overall the to what and at in from growth what planning deposit then you I Scott in

I think of the modest we that growth net had with complexion portfolio.

not are up way things strong. the get year we than the in things some out it and wrap doesn't plan, because I typically think It's there But and some be maybe usually we diversified it's our set the shape. reflect I would and But good just how built by specialties overall would step diversified we in region, way by stronger we we've as anticipated the culminates. company. back

I think with Los say Fe into wouldn't able and particularly sit have had in and So, and relatively I it's we and in lot would if pretty to a here from Albuquerque our I that great be Alamos think now pleased see and that low optimism I year think that that think have stable Santa of a expectations there growth, think momentum we moving single-digit that, and I we're ‘XX.

Brian Martin

Okay, pretty like it in is pipeline good and the shape. sounds

the bit fair growth maybe like or it you're earlier had what optimistic on Is at to to ago. better little start versus your -- say least quarter you're year If sounds that a a that comments? year you is more that by

Jim Lally

Yes, I think portfolio, think if you're fair I that's talking comment. a overall

Brian Martin

buyback. what increasing the think or I guess on And does some the today? housekeeping then authorization the about in remains guess buyback, where just And stand you would I that

Jim Lally

upcoming the transition we'll getting to at look just from budgets Yes, of the got so left. we to we've plan. we're I that's that think about our Certainly on Brian in here something But XXX,XXX capital down cycle shares kind end our as that.

there's we're year. us And, forward capital shares here for the the to some upcoming So, in that moving manage from buyback then hopeful M&A near our execute balance there to ample we'll term. in of there find and

Brian Martin

Okay. changes days. the how M&A, the of kind that’s And faring any there, pipeline just just discussions these on

Jim Lally

think we of certainly are as likely plan. a there think looking There is of that that’s out talked companies I there. company about change with they see are significant some a at their that long-term up And a independent. before there No, lot teaming going I

several And make I want I so Brian, misread conversations, like that shares repurchase. sure just in are that’s a we've I businesses the had with corrected. on We've the XXX,XXX apologize. regions. number. our in got all to about of past we've had

Brian Martin

Yes, no problem.

Keene then that? the The accretion just as you And to on that the outlook. NIM Okay. accretion, about say as and remains then how to the as modeling -- think far relates it what any things, two

Keene Turner

Yes, and I reported X.XX of think core would to you got X.XX margin. and

out we're have where we to at CECL reported the in break describe of middle point we're somewhere think whether in adopt going at what's the happening NIM. look a that. to or when want to continue to those But just I we

is from income those grow good. you try can dollars plus numbers interest to outlook to But NIM a essentially of two net those and somewhere both core our know feel as it's a there. or that where to think stabilize midpoint I pretty just of penny

But non-core any much probably was and magnitude not where a how So acceleration a move quarter a during of on as at the based a we'll of a needle point in may be CECL even. at XXXX probably the payoff in time there's at it's It penny gets acquired. it given point an applied. year if

Brian Martin

Yes, you. got

just last then the with income. one And swap Okay.

quarter. is think guess, said level rate the stabilizing at expect maybe was that…? guess, grow that environment I to something I here. to this is you pretty I continue you a is given or that high it

Scott Goodman

swaps based emphasize Yes, a it'll the lumpy our force type in valuable And I think transactions that I little for environment. to just use it forward. doing. be on I And a this swaps. might understands I we're think of think think be us going But sales we'll to quarter-to-quarter continue the tool

Brian Martin

second that FDIC there? back in that about comes that then we And quarter. Okay. Is think should what

Jim Lally

I Yes, the when still payroll. quarter, current a of the your to first I from seasonal think resume at. get where XQ help And for And, transition that'll normal XQ, we're the bit little you'll you'll you have premium. level think

Operator

further you. in queue. Thank have no And we questions

Jim Lally

joining in Okay, great well, to thank a quarter. day. this first us to the again speaking you afternoon. Look for forward you all all Have

Operator

today's concludes and conference. this Thank gentlemen, you. Ladies

disconnect. now You may

Enterprise Financial Services (EFSC) 21 Jan 202019 Q4 Earnings call transcript