SMBK - Earnings call transcript Q3 2024

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Operator

Hello all, and welcome to SmartFinancial Third Quarter 2024 Earnings Release and Conference Call. My name is Ezra and I will be your coordinator today. [Operator Instructions]

I will now hand you over to your host, Nate Strall, Director of Strategy, to begin. Nate, please go ahead.

Nathan Strall

Ezra. Thanks, everyone, Call. the morning, XXXX Third welcome Conference Earnings and good SmartFinancial's to Quarter And

conference we Investor who Financial today's President call that commentary. our During followed call, additional smartbank.com. will and is press slides website, Gorczynski, will available provide release Chief and by Executive some in begin Carroll, Ronald Officer, the Billy Relations Officer, on will section our reference our the Chief our

call. will the the We able end your to at questions be answer of

Our assume new statements. any because the to results cause law. to list forward-looking forward-looking SEC differ comments and could risks statements early required and may any information, obligation our which that release to on factors We filings, our subject not in update include of materially are statements These or press available by in materially. uncertainties, might be are actual otherwise and results developments the our except these vary website. do We

During non-GAAP the financial company's call, the to we performance. measures related will reference

the of SEC. earnings on these the the of presentation appendices investor and release XX, will reconciliation XXXX, with October You measures the in see filed

our And open over it I'll Billy and to to now Executive Chief Officer, our Carroll, turn Billy? call. President

William Carroll

available our good Nate, numbers Q&A. through and some open Miller our open Thanks, call us walk thank hand you detail. to up comments, today today the in it Rhett, it to for be Ron, some everyone. over for morning, Nate, Ron I'll with with myself and we'll prepared greater with After and joining in interest and to Great you, SMBK. and for commentary your

we've We $X.XX is anticipated. excited and operating as had or really operating diluted So team the us what been share. to let's million proud GAAP and leverage quarter performing, in. income we've net way and per the nice our watch jump executed quarter gain posted for right on I'm of of $X.X a We messaging. I'm

We without that tax pennies boost even be in the earnings of X the pages a had of we I'll few first from as an that, into strategy outstanding deck, X. X, a and But Pages highlights, Jumping to referring well implemented. had couple we our trajectory.

one quarter-over-quarter impacts First, in to growth. book it, important $XX.XX tangible of increase X% excluding most and opinion, value impact. my company up per continue increase, of of metrics, movement AOCI AOCI the share, and tangible That's the and including we our the including $XX.XX excluding XX% nice book moving annualized a that very to

graph the that's and quarter, growth online. solid continued Page lower the the very an relationships continue We, you'll coming XX% again, as shares. saw a prior increase an in loan off on quarter. on right X, we We had annualized see over new as XX% to growth at for Looking well value in deliver increase our annualized funding

than side the gotten balance and costly we used the fund felt public had an On opportunity had exit to we a relationship a of reposition the little a some deposit We quarter and larger funding. little to wanted. sheet, more we

leveraged liquidity the ladder a and we So gap. funding utilized our position wholesale strong to fill

Net X%. over core of wholesale that growth and account adjustments was

bring deposits, growth had nice continue a drill and quarter outstanding we on we when very to relationships. So down core some in

saw down our X.XX%. to costs tick also We overall

slowing us, those we've fountain a lingering few soon. worked isolated XX and quarter at anticipate profitable movement through finance were prior the with That slightly higher in and both continues to continues equipment our credit strong subsidiary. just of the items still holding be extremely NPAs basis equipment NPAs, points history very charge-offs in be metrics low. group for continues credits a Our very to arm low we but That than

inflection an net and million, expand with $XX.X at in came discussed. revenue income to point Total we've interest continued

still also very a up growth forward. at noninterest good we expenses Noninterest million. that as we talk in were I bit. Ron reasonable will very levels had look $XX.X expense just hold a slightly to our income We feel stronger-than-expected quarter about that can

prior we've The to revenue we end. is starting on investments leverage with continue talked calls operating about to as the on line the happen expense minimal grow

Looking that flattish at the to on the looking trend has highlighting movement quarters, the continue. expecting couple started a Page operating up see and chart X, PPNR slide, after forward of

very for me So with just couple of additional a We're results. the pleased on comments high-level growth.

annualized up the side, again, million, On for and about loan were annualized year-to-date. XX% $XXX we quarter over XX% the

nice full portfolio's a points teams on up the expanded to regional Yields XX yield identical almost loan the Our very quarter. our doing to loan loan second sales and mix side X.XX% average job clients. our growing was the are with basis

I with nice our replacing I mentioned focus overall of our We and leveraging a pushed to position remixing particularly cost for lower deposits the is the the up deposit move like done on us. really work of more out we've loan-to-deposit which of spot chunkier larger ratio side. quarter, this to the here, granularity. to XX%, strength

to our this environment. easy around continued mix hold in also noninterest-bearing feat We an XX%, not

far growth sheet to solid. organically feel a couple even year. also of as quarters, very though able we to our pipelines guidance And can balance think been mid- to so single I'm growth. that I to high pace Our this digits of we look beat fund this holding still past we've on at deposits

as his tailwind strategy tax and nice Ron advisers be well nice executing our as well. rate. on team to go-forward as a finance should should their lower tax That that little kudos added Also, a

go me to let into dive Ron? and the Ron to details. So over it hand

Ronald Gorczynski

morning, everyone. Billy, good and Thanks,

some highlighting key results. by deposit start I'll

public quarter, bank a relationship. exposure the significantly reduces to had during fund Billy As larger mentioned, the

was quality desired While this tough interest fee was a rather we than rate-sensitive to and do driven. where service our highly due decision account support intensive business, the municipalities

brokered As result, cost-effective minimize decision to made bank temporary funding. a the pursue and relationship more strategic a this

offset the previously at linked which of deposits relationship. quarter flat remained the deposits added million from $X.X $XXX includes total reduction billion, mentioned Our to broker

relationship was deposits the the of $XX this over impact, Excluding million cost nonbrokered and X.XX%. average quarter, grew during weighted production

points the Noninterest-bearing decreased portfolio line to and to for the basis quarters X.XX% X at for deposit future, of costs core with temporary were in broker as deposits relatively deposits previous interest-bearing client win we our and Total remained replacing net XX%. anticipate total September. deposits month liquidity with In the matters business. build deposits to continue relationship new our deposit X.XX% balances

basis resulting This increase previously includes several new on weighted mentioned X.XX%, yield net which favorable points to quarter. portfolio a quarter-over-quarter, margin increasing average interest for efforts including a repositioning yield total and to is fees XX X.XX% the X.XX%. factors, and accretion expansion Our attributable to expanded in loan the originations, deposit

production a expect Looking maturities rate position. The Fed the for in profitability bank's lower-yielding primarily and consistent is loan any into amortization by and enhanced cuts. new fixed driven XXXX, ahead, the sheet we loan adjustable an and rate balance bank's liabilities strong rate margin future in sets interest expansion of at position event

result and a to X.XX% current of we margin anticipate factors these As market range. in conditions, a a X.X%

reflecting Overall, strong for for a categories. quarter remains higher loan stemming the result loans our Our solid credit charge-offs, of at to million, increase with nonperforming performance were all reached and slight a total quality $X.X primarily noninterest Finance elevated very as losses across from the in than division. growth Equipment forecasted income loans quarterly provision asset X.XX%. bank's expense Operating

attributable the bank primarily transactions income The services, and guidance. several generated respectively. by Notably, $XX.X slightly our to investment incentive previous Operating sales accruals and of from which commissions associates. hiring our the commercial higher $XXX,XXX and was increase were team in performance-based significantly customer from million, $XXX,XXX, and rose expenses swap elevated increases

Moving will management part as control we our continue expense ongoing on forward, cost our focus efforts. of

noninterest in and to million quarter, range $XX $XX.X with the mid- the are noninterest we expenses benefit to for to $XX fluctuate. ahead and in $XX.X $X as to the comprising income performance-based million million salary range forecasting Looking million accruals fourth expense million incentives of high

subsidiary a performance Additionally, favorable by more REIT estate investment formed estate bank's manage rate result a monitor will during expense. tax state The tax real effective loans bank income lowering certain future and the structure. and a newly real during the quarter, lower to create to in the tax trust established of subsidiary the periods

a we corporate future XX%. result, effective tax anticipate rate of approximately a As

increased by and well-capitalized X slightly capital. with consolidated points basis we company's XX.X%. in basis risk-based decreased position conclude I'll credit ratio to a continue TCE XX points Overall, an be X.X% The optimistic outlook. earnings ratio to and capital total to with

over Billy. to said, it With I'll back that turn

William Carroll

lot the investors Ron. of of X Page deck. your road want and again, accomplished our We've on the what reminding attention stakeholders back reiterate in drawing we've been company, to recently. 'XX, value proposition Thanks, I to our our our a with

investments after to at in our the company movement in of our we're We most inflection moving arguably the markets you team building, a some have this going made. we've attractive are together and vision way. put is look When targets and the great the country the have forward of franchise return clear and that a we're in seeing numbers, we absorbing the

this of our of our on the really, process. was this What and from good our really functionality We're leveraging I prospecting quarter year the nCino sales of now done and to teams force we've on create saw process to teams work in cochair sales also by-product the platform systems X relationships. sales leading value team. and the prospecting utilizing And consistently sales our for and stronger a front price the we're end the profitability

The on we're zones fruit. the starting is those regional really have putting structure we president bear accountability and to

one add and talent have We've outstanding adding fits as the are for this to to great choice members continuing to believe new some XX We banks be region's culture. continue regional in our of sales team we several sales our to I team that year pipeline. look bankers. We're currently talent bankers added of our

I operations of the also want mention group. to execution our

don't we our us work Our move refine like this for and management. ops paying people doing seems look to be KPI-driven will and ahead. the some great as big they that It are see workflows that as dividends of teams house back

I we're love where summarize, sitting. to So

margin profitable very we for back. company revenue quarter new expanding said, very franchise. we and sound, growing growth executing, the we're a client to are nice operating are getting continue our the attractive seeing and outstanding. is as a continues We build Credit be energy our All line and to great as and leverage sales expecting

near as SmartBank continuing and Great SmartFinancial, their SMBK. recent of Work evidenced team and build is we at This work certification. have a great of the by to on proud our perform the of well associates. efforts Place here XXX very going to appreciate I our what I'm team culture

up we'll stop So and for there open questions. it

Operator

[Operator Gunther Instructions] question Stephens. Russell from first with Our

Russell Elliott Gunther

question -- be would question on would first my first growth. be My loan

as color appreciate mid- from over well all the next to the the as digits. of high So single quarters of expectations couple I

X. past You certainly the outpunched that over

whether share expecting of conservatism built together couple just could outlook? outlook the an might or near-term you acceleration the it's a Are much result if been you to to just piece that sense weigh wondering -- So of quarters? last relative a what of has into normalization the over trying stronger paydowns

William Carroll

Russell. to to, I'll I'll Yes. a and then ask color give start, little Rhett

been back-to-back us, nice Yes, went quarters. really bad. first we back-to-back really the really had for We've X quarter growth and has X had solid. Really,

we I anticipate -- this We we of always get able to think quarter. as and quarter. paydowns payoffs a had and great look that were you through still we some post think kind -- I growth didn't

I always you're our additional be to some But paydowns, like the nice guidance think sales we the pipeline our and downs. to in in might bit mentioned, projections teams look try and next in months. estimates is few as If think we seeing be color in as on a doing you But a little I our get we give I've we some you kind where job and conservative what anticipate of trying as just ahead some could the stay. don't well higher. are pay But to

Rhett Jordan

Yes. relatively into seeing I pipeline rolling you're right the pipelines think to we even what we're activity periods. Billy, as consistent our strong in future for I the new closed pipeline, stay quarter-to-quarter mean, on. continue was

that very will optimistic that, we're continue. So trend

just is in that we by I the strong think economics operate in. a of just supported lot footprint

continuing are well. markets do to Our

continuing are to clients Our do well.

a as spread particular our segment bit the footprint. year so progress We're markets. not our end any first coming in new It's And really in quarter, the towards we opportunity different the very we requests of concentrated still geography. seeing quite across the of through of are

our strong of seeing markets All good activity. are

We point, do the quarter. Billy's estate in in higher we on And possibility. more fourth a then the earlier to the robust side, than coming little payoff volume footprint. have in that very It's always we a past seen Might have year real we've in had our still quarter. few a market of really a

here clients sell So to opportunities assets seeing are and there. our

primarily sales these from by get we to so But our from time And do client. projections. about feel time payoffs we optimistic still asset

Russell Elliott Gunther

guys. That's the color, switching to a margin. And great it. I really then appreciate gears

result this good really quarter. Another

You for the I and I that X.XX%, laid to projection? of, fourth curious that that, out an Fed as what sense reduce. NIM, well your if as you X.XX% is if does us a it, beta projections expectation the deposit near-term a of into And was with believe, call quarter extend trend just XXXX? you'd are just could as rates cut how expect to Or give

William Carroll

you do to Ron, Yes. want take that?

Ronald Gorczynski

me, is our is -- Yes, X.XX% quarter. X.XX%, X.XX% margin excuse fourth Yes. Sure. margin for

looking same rate side. way without items, the is our that point, our XXXX there's were we're in range we're downward going With the our call, we will near strong still on we still but very margin variables As on up at the trajectory probably this probably said, guidance, rates last not feel XX%, our of down. We're goal We beta. a such beta forward. or throughout Well, XX% giving see and bouncing expecting we're at that trajectory of expansion with XXXX cut. a modeling XX% lot said the

Operator

next Our from Hovde Rabatin Group. Brett is with question

Brett Rabatin

start swaps to just obviously, want and quarter on were obviously, Any of on fourth nature then specifically I I to strength start quarter. thoughts onetime in product on businesses in this any income just the income. wanted thoughts -- those and investment Or transactions? is really fee of on fee the quarter, just kind going items X guidance those on those the forward? And XQ? with good

William Carroll

maybe hand little it Yes. versus I'll bit Brett, to talk over continual. then Ron I'll start kind and about onetime of a the

calls, investment us, I the I'll been but prior the about think and good. side investment on talked we've has start some really side, for from it there,

our of SmartBank Investments We cross-selling in thoroughly platform continue private those on over that continue job a folks that last talented add the grow. to nice of up some pipeline our getting We're kind into banking couple advisers and seeing We're in financial now. to plan. years group doing our consistency to

to a that base nice see over and it's to versus grow, last a years. So of AUM transactional of moved more that in business fee-based the we've couple

long obviously good. as we has about that feel good think continuing So I as been market

we there's But on some So overall, that doesn't hurt as be as to bullish well. move that think consistency on number, side, the in we investment forward. continue we

works about terms some look thoughts rates. doing want attractive ahead. is of I'll looking and fee fixed But of as let lengthening one Ron with these talk a little That kind bit the about of that market. what the to little more the of are what like some swap some do talk maybe a of what swaps, around primarily and to might curves get of a around he to function you Ron, and capital that thoughts that rates what some

Ronald Gorczynski

shape us as yield did QX, of due Right place an quarter came QX. originations not swaps loan X seen QX. do the to noninterest lot inverted what swaps down have a be led a more we to plus we third the doing strong in won't pipeline, We million as we've but now, curve did We excellent sure. income projection. of our for our have opportunities we had Yes, and

really So noninterest at lead we've income other other than that opportunities what QX. that, to we seen this as don't higher in see point any will a

Brett Rabatin

on core lowered front some talked some deposit maybe if rates, key And your you about deposits about maybe the helpful. competitively just initiatives and you've CDs. on brokered to seeing talk can you're just guys deposit you of maybe in you already That's what just deposits, markets? -- replace Okay. then growing Can

William Carroll

do that, Yes, very and I'll ability grow can we've seen to we take -- our -- I guys Yes, deposits. we what think anybody chime good feel in. about and

bit was masked a As I a that had quarter. did. by It commented of earlier, we some we core the just mix growth little deposit really shift nice

the a sheet. working as sales our balance of so in teams teams, really we've sides started nice both are of And bringing our job doing

in leverage little liquidity some 'XX. of at a Obviously, were year bit of position. of been position able we a little that stronger the the with a to in bit -- beginning a We've strength

We're environments looking continue for are. it. we -- need kind We we also to to So really the but to try ahead conscious the us. grow of balance do rate where to going to want to want deposit of it side,

still the from one-offs it outliers that feels down standpoint, of settling lot of But yes, competitive and pricing. like some seeing a you're do some part, is for in above that fortunately, some markets. some most we're market a the So

able rates down. our we've push So to been

think if do Fed we that can I cuts continue to continue.

just growth standpoint, to think you've Ron, I rate getting got really balance right at this our the from But the try But strike of doing it right thoughts and going that. around we're to levels. any

deposit working day-to-day. pricing You're of on the the group's

Ronald Gorczynski

Yes, think of up We still we we lower get market some really rates. Again, deposits. our opportunity a took pushback. to didn't we're deposit we high-tier client in now. the promo on finishing are And much

Our roughly on on we got where again, in pushback pretty with deposits sales positive. momentum cuts. really of that. reductions are much are Fed line team it's from, haven't coming And the the And

William Carroll

Brett, too. I'll add and Well,

as the our we're more put that producer been continue and think starting and things. one to our forecasting and about 'XX plans those a talking incentive things, of and on I on that's to we've it emphasis lot focus is for that do

kind appears and bankers members, be. that's balance to we've I'm feel how the both of outlook what and really selling hired that's pleased the very reason we sides So to understand sheet, of team continue with going that that our optimistic the

Operator

Steve is Moss with question from Raymond James. next Our

Stephen Moss

here. pricing loan on Starting

X-year Fed and had can of amount priced to around the we've of give color volatility where cuts. you Curious you're rate expectations loans and curious, obviously, fair more seeing new kind as in today any a Just there?

William Carroll

just start give. color then any can you I'll guys, anecdotal and

a cut holding going of the seen bit Overall, cut to I right impact ongoing we're we've little little competition doing think, levels. Yes, bit a an yields. job with The is impact. Obviously, the of reduction of a pretty on good Fed had obviously, that.

you're especially So any the bit few it what in got don't we and Ron, continue variable color little the levels. a variable lower, bit. overall, here But seeing pretty reasonable down little but price a numbers weeks, think we hold coming the rates solid. spread, of we on we're kind to are seeing I think, of you've if just overall, know I on going last kind but still on

Ronald Gorczynski

Yes, as probably the we're in $X.XX the But originations I referenced XX less. September, range. for basis points quarter, for were

probably we'll remainder believe So should for range. I of we see quarter, that. above the do see the X% probably probably

So but not this of we'll little in in decrease a rates, looking much see at bit time. at point

Stephen Moss

here, question that. I Appreciate Great. results, this guys I know lot there. other and guess Okay. positive operating building momentum about And curious, you just showing quarter's then leverage talked my see a you're definitely

towards around any process of curious we you're expenses here? just your hiring if thought head XXXX, kind of talent, as investments, Just additional thinking

William Carroll

Ron, I But mean, and we 'XX. -- we're budgeting a trying through final -- currently lot, again, Steve. forecasting I really don't think not our to we're working for

to sure along of increases we've of that -- just messaged just we inflation for lines. that overall the and just think and things We'll cost I kind contract some those the have us, growth. make hunkered can drive we're we're down

minimal. be pretty So -- think we -- that but should that

rates, we'll increases reasonable I in hold these overall, the on pretty side into think 'XX roll that's balance range the the of time kind stuff production lines the But this of think into rate expense on, we reset that going as some sheet there can lower I think look a be I if probably of anything. and let down. on with off we will new see get the amortize to allowing house, again, 'XX, talent more

really you of out leverage. -- of we go out with glimpse especially in feel we kind start look the you where good to latter when can look look, now. as So this when operating we 'XX into We about 'XX part

there? additional any don't color know, Ron, I

Ronald Gorczynski

at as we net to be revenue No, a and creating you percent produce leverage forward. will an expense it all, 'XX said throughout of I we -- operating look will going

So in operationally, shape. great we're

to So you said, execute. just ability as our

Wesley Welborn

are always quality welcome. bankers and recruited being Good

William Carroll

Well, and I great think point, that's Miller. a

folks we've -- we But to continue we're our recruit. way, -- going Steve, always our we're way. for that to think be great we're culture. that again to that in mean been selective. I are. and opportunities I selective we're We're always I fit seeing, in very looking mean and bring

some we to think to go able as do been forward. year. continue to We can act find that that we We Miller's this We've point. of

invest So to we're going continue in key to talent...

Wesley Welborn

Quality versus Quantity.

William Carroll

them. people. over just And do we've ones to and folks, quarters. But been And Yes. that we've never add of -- tons going we been find can to if here good couple last go look out of the that we're able look to at

Operator

is Our from next Stephen with Scouten question Sandler. Piper

Stephen Scouten

side, like the years, give moving about you're Again, range. you trend of hires, new of revenue over kind event is to of last know should not what but about long X% to which term? talked On ballpark forward, fair that the towards expense the just fair a obviously guidance, couple expense franchise the trying I potential think X%, just it to similar well. a from any come Is would growth as growth of should lot produce

William Carroll

Ron, of do that? you want around to thoughts kind

Ronald Gorczynski

a Probably for good X% to that. good goal, X%. that. Exactly range a That's

Stephen Scouten

CRE And on here into Okay. growth all push make if verticals I XXX%. correctly, up point? I future to that that limit Does you you was from Just to to does so potential would than looking this think that's more the Or at then growth. headwind have concentration, a curious at if up CRE all? at maybe other it

William Carroll

that do some real color add last I it. view to yes, couple a continue going the as that. we advantage estate loans we're we're portfolio overall, the Obviously, don't to Stephen. Rhett the we there, give see it And and But good to headwind. quarters. to of some have, doing let over taken We've when Yes. I'll

relationship CRE estate CRE which kind sure lending, again, that you any to real of give to on do, growth. it's want do it's it's and, making full not of make able we've to been portion. transactional that sure priced type But want We color

think feedback? having you Do of bit a see in we a I we want anticipate give to bit And the little pipeline. little that. more any

Rhett Jordan

up would little today. it I always within a do say we manage see ours. where Yes. target from will a is focus We the tick that that's of metric certainly probably been guidance, the to that Fed

just And either as that some We it of of have growth eventually do projects be the sell off out. we we'll timing is -- down some the projects. have different or then completing transition funding paying and they

a would backfilling I of But So of near are, the of still to in I transition will the there. we projects say, bit maybe we'll term. activity. do the buckets little see Knowing continue some think out that

, The opportunities to seeing continue on the trees so the staunch on we're opportunities It adds in in to space. our other the is our also picking we're the to ability we're apples speak, because standards. be upside very best I there to funding. credit mean

are what about we good So feel very we putting.

Stephen Scouten

from really good trying me. And range. that calls reach past color. XQ operating that's Yes, in number towards million last for know for we've I 'XX in about a to $XX the thing then talked past just

still the Or that any maybe achievable to you where of the number? to path that's medium Fed Given you do sort the in has think current an timing forward do moved, environment, impediment there's think term? getting

William Carroll

I Yes. so. think definitely

be little that for felt a revenue good is headwind might stay move about a at of of a publicly rate we all, rates And the that year rates shooting for, basis. I still still -- quarterly don't $XX million might run of number bit think But put end as down said it there. very obviously, then really, something next if on that. forecast, -- kind we're no, and rates, and we

right obviously, sheet yes, to seeing continue but think this mean, growing execute to loans, anything I deposits, balance I no, we've now that that. on growing and there's target want to us that the dates don't got causes change to leveraging on we're

Operator

Montgomery Christopher from question is next Janney with Scott. Our Marinac

Christopher Marinac

if just kind gains into, clearly get this to last can customer how net curious of, quarters. of year market kind evolve over wanted up the had year? on next see you're you cumulatively of And because how I the you seems you've X the look share picking that X, that it that and kind

William Carroll

great And a yes, are. It's Chris. we comment, Yes.

I think it, commented just really that it of in year we're we put zones. place is that -- we've of take really these sales I process it's worked continuing really side share starting hard, all the And shape. to gain over and course the a in lot this on the to

and we We're identifying out one to of target. every going regions. our clients our at every looking one we're So of markets, want that we're go

Some of those sales cycles are longer.

ability I yes, the in So have get the good the mean clients very don't to 'XX. that but really feel we them we're about on hard today, working pipeline in we in pipeline

years I important markets. last not again. We've stuff. new added the share investments And got And alluded just big so we've of and their I gain an really point that and it's lot think markets And over this, it's you Rhett will markets think in newer some continue our to of made to see a those grow too. couple

extremely performing to also our but well, perform well. continuing are markets those really markets are legacy And

we're it's And markets, just these these of especially of a continue this from operate I gain continuing the think been And can with to we as our brand build I in to we position in think build really situations. good do us. are number strength size franchise, we share. think now, for that a I can

Ronald Gorczynski

want have they because that but that I done thank a mentioned good sure. appreciate on Ops couldn't you team do side of to for a do it's job of do with effort they that tremendously. client we a a working the But on out scale what to and supporting Op them sales give you the because with great calling side, the I Christopher, it clients lot credit, the acquisition and Yes. sales gets side

Christopher Marinac

I it. or follow-up just Good. the in appreciate about hurricane a September. And last month late

benefit What see do your the in can a proceeds have? and new franchise? see insurance from of slight influx What of you you that that type can And Eastern future? business being

William Carroll

Upper clients Yes, a have just number number those. we've of We those, offices Tennessee of but counties. number our situation don't got devastating of a in in a a East in

And so the the of on more bit we're little seeing impacts of kind periphery. a

our from standpoint, little So got payments it. in delayed we direct had some we that don't bit impact. I I any of a anticipate actually had thought direct probably know impact, we

I reasons because going I think it -- there. be efforts a to payments because But those is with over to issues of just just some think tick had us, over figure some small dues, quarter of One of up to out in the we up of delayed past were for the the a our how support trying end. lot

was talking a few that's I about great last of client with partners -- their and was doing weeks. efforts, of they been fundraising a some lot in up area. It's together public ours. put They've fundraising work foundation, that I over talking a yesterday, very with the

help And so some lot of to facilitate just us is just of a to be trying going that.

back fortunately, So in a should of growth need. be a But near-term and that from from bit money some deposit our just helping funding. standpoint, out standpoint, going that of balance little right sheet folks with probably these

Operator

KBW. next Our [Operator Mealor with question from Instructions] is Catherine

Catherine Mealor

a just ask to margin. follow-up want on I the

is great really -- slide repricing You your helpful. gave schedule

can the loan And we so model I yields. feel like

into the On appreciate the look your cost, forward kind of I beta being over XX% deposit the just cumulative really about cycle.

you're where that of the quarter were of end ] XX you seeing spot any [ first of But specific what the deposit can give and move? near-term commentary in rates costs, with deposit at on us kind categories the maybe kind

William Carroll

saw to rate during first want in jump you color. do cut what that some and Ron, maybe we spot on

Ronald Gorczynski

XX% remaining XX% step The is to of managed is an our being back, are another kind base a We've -- indice. to an let's deposit internal indice. take deposits of indexed our

move and we're our movements, -- So have about we the on to that rate we that deposits that will without XX% get with of didn't able any achieve really whatsoever. pushback

aren't right accounts, how We and go this going of forward. apply driven, Again, expect to is leaving to have methodology we because that to we expect forward pricing. competitors Catherine, sure outflows the pay just a continue our their our same as to and making rate. and manage attention monitor But market customer and now, lot of the we

rate our Other forward good than think shape I that, keep portfolio deposit going our if steady. -- are to with in we're cuts there a

William Carroll

rate of September? rate end the spot there, guide Spot thoughts at

Ronald Gorczynski

Yes.

for did Our but new September that broker deposits. production X.XX%, include was

So deposits. excuse was without X.XX% it's -- brokered me, it

ramp near September as the the we some of So exit. promos I end relationship think from

don't I rates have seeing but any forward, down rate going spot going are we So accordingly. the deposit

Catherine Mealor

be Okay. of to And it model do much lag amount is you have to how up a would pretty just fair that? given indexed, show feel XX% in you quickly? Or like that beta the

Ronald Gorczynski

alive be quick No, lshow They on we XX%. that wil that. will not with pretty

Operator

That ends closing back not session. hand questions, to I more have do Q&A so any Miller our We will remarks. for any

Wesley Welborn

of Ezra. Thanks, out strong, look support. any to reach analysts continued you, great have day. to We 'XX to each forward We feel finishing your comments. further investors, and us or you appreciate for if associates questions of and Have free any a

Operator

Miller, thank joining. much, everyone, today's That you, very you for Thank and concludes call.

You disconnect your may now lines.

SmartFinancial (SMBK) 22 Oct 242024 Q3 Earnings call transcript