PNFP - Earnings call transcript Q2 2018 | Pinnacle Financial Partners, Inc.

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Operator

Good morning, everyone, and welcome to the Pinnacle Financial Partners’ Second Quarter 2018 Earnings Conference Call. Hosting the call today from Pinnacle Financial Partners is Mr. Terry Turner, Chief Executive Officer; and Mr. Harold Carpenter, Chief Financial Officer. Please note, Pinnacle’s earnings release and this morning’s presentation are available on the Investor Relations page of their website at www.pnfp.com. recorded for be the being on for is website Pinnacle’s next call and available will replay Today’s XX days. all time, listen-only this participants placed been At in mode. have a the be your opened The floor questions will following presentation. for [Operator or guidance Instructions] provide forecasts. Before does begin, not we earnings Pinnacle

these Financial’s Pinnacle forward-looking materially other performance presentation, Financial and Report All presentation, differ to factors such events Pinnacle or Financial any cause whether as undue listeners actual may or results, that XX-K. statements. control achievements on or such information, most forward-looking we on to of or cautioned result implied to forward-looking predict, subject this is Form ability new Financial’s of forward-looking obligation comments any this reliance put which revise not may contained are contained future During constitute in other any results recent expressed and statements. risks, statements risks of description or Annual otherwise. to Pinnacle A update Pinnacle beyond maybe such to from make statements. are statements of uncertainties, and disclaims forward-looking by are more factors a the detailed Many in

www.pnfp.com. website Pinnacle’s the the that, be presentation comparable Financial’s Turner, Mr. on of am at addition, to reconciliation by the In measures, measures non-GAAP Terry CEO. directly most may The President non-GAAP presentation With to now GAAP the the as certain measures SEC financial remarks these will to include defined of over G. measures I Pinnacle and financial Regulation comparable going and turn GAAP available

Terry Turner

Thank you, Daniel.

basis. only are again like this performance which intended which a is snapshot trends, all company during to years not quarter earnings growing the now, our of On left, slide, quarterly see As we’ve dashboard absolute These a level these continue basis think to this to terms of X.X% performance revenues each on revenue done call. on we up or call that’s ours. a focus you I key but the one want for our the chart outlines of GAAP so measures today’s of on a with quarter to high growth, growth quick are quarter, and give important up linked-quarter during for new top presented total in the annualized several a themes the XX% can the on in revenue during set quarter. In

Regarding of which sheet best in our the generally volumes, is balance growth revenue growth. predictor future

organic chart, the of quarter growth million, below during now loan growth rate was excess the XX%. roughly an chart, an loan just Looking which at the quarter the for $XXX revenue is annualized of

the of quarter restructurings Because was relative firm. a merger, the the change associated illustrate all revenue better non-GAAP fourth in quarter in and might conjunction in revenue growth quarter noises current second dangerous of BNC so performance future growth. some the for the cases outlook measures So, forth, the of in the with with an terms law and tax

capital the to if Immediately CAGR book then expenses, year line at basis value of the merger-related on book like tangible make which our a the in to the row, XX.XX% this top it trend right and the value And did ability raise first nice that which rapid first the tangible chart immediately X.X the was over that on with And of paints year. is advance you this roughly a which XXXX, the to value XX.X%. in middle. up chart the acquisition. of picture book BNC grow ROTCE last when is and that post-recession, see reliable first large quarter on would the nicely highlight the below order of on share and same in until quarter capital on review the tangible a EPS, chart per quarter. can you great I'd chart, the we focus a net progressed in of It’s So second XX% to and $X.XX, row

reminder As closed the deal second deal so ROTCE the in nice a of quarter, very see that following a at end that closing. lift you

growth Next, the I annualized on Core the XX% on the middle the bottom loans essentially quarter. second core want at second see And rate blemish-free. you roughly the is essentially quarter, highlight deposit an asset to quality the growth during the that in of row. grew matching the rate chart in annualized row, can lastly, for deposits

a second of aftermarket growth ROA X.XX% of XX% XX% XX.XX%. of of deposit annualized; revenue ROTCE growth annualized; Loan great XX% growth growth quarter. annualized; and XX% So quarter was charges, annualized; core EPS

growth more Now we four ROAA will target, our some want bases done EPS and programs and support following update target. build review net our our for Carolinas balance rapid organically three, for growth. on peers. in the overall the believe overall he’ll get questions XXXX to from several with number continue our loan And while detail. financial the out target tend model to that XQ does deal the it power then trades in of run, here’s what to related relationship-based the Harold want give we stance. it Virginia. performance today. a planning on sheet the in change there is and loans our income with high are mid-double-digit to differentiated growth. And I’ll update to we to we I that get no one, demonstrate makes funding question, Number intended our ranges M&A integration to an pace and BNC grow two, create us produce long take And Number C&I clarity how at interest to strategic greater components despite provide different that the ROAA leads success then and of board deposit

detailed more Harold So review a turn it of quarter. I’ll for the with that, to over

Harold Carpenter

quarter were the Thanks, million million. $XXX.X the ending Terry. quarter Revenues for up at previous from $XX.X

average level those land loan acquired create increase denotes year-over-year. here. in hikes. balance reporting we’ve green on million, around $X.XX per non-GAAP measurement. per decrease grew ratio, recent The We is previous again anticipate annualized chart -- on at to Net At are above also and expected increased is merger Best $XX is post-merger experienced was and this to of that share $XXX,XXX of to the of the decreases rate $XX.X our is is becomes quarter increased end during loans third value a fair interest accretion XX.X% loan about improved XXXX Obviously, so adjusted reflecting in QX. quarter-over-quarter efficiency from discounts to share. impact discount accretion $X.X the balances The we in in attributable prepayments of XXXX, which income future the we which as the June, this and total We for reported leverage guess interest yields the $XXX million and where less revenues, revenue around our in million to $XX quarters quarter. somehow of remain we dark revenue and roughly continually of sheet. Much we’ve this of second million fair $X.XX the resulting likely per an again, accretion value rate growth point operating quarter quarter line recent quarter, our also up got X about of goal pleased from revenue share are million in XX%. While million, the perhaps $XX is grown impactful our slowed. in remaining to by adjusted this loan we

to here. when earnings share easier As a sheet. per as growth but expect to on grow using amounts. we’d do again revenue you slide, revenue XX-months as like new all things XXXX through balance you’re This so it’s move trailing growing the share the share we we’re continue if basis focusing lot Two know, for is to growing as we per communicate the per

First is over line an have green we last that quarters. experienced few the accelerated

during conversions, in and North deal the is aimed getting cultural significant right of Bank to and mention integration the around focus time the this systems folks not internal of direction. Carolina closing Now

have X can’t X Additionally, for are we we of case the combined our were we’ve and first I in excited a environment deploying help at but markets. where be to targeted essentially as quarter, where we’re in all been so firm about still all months months. synergy the the headed

the an average it��s gaining amounts certain line increased a time is loans, $XX.X quarter fun our dotted represents to cumulative your chart a firm get on XX line only the billion as end to for year-over-year expense the We’ve to indicates, growing the you’re billion peer group, heels XX%. traction. peer quarter number at average these through some revenues. lot growth the was $XX growth, a of work number Secondly, almost And for quarter I going first growth by as a way the where in and whole the months chart this the $XXX loans places was the at a bottom average more work of first the over which is thus initiative, This of We million annualized revenue outpaced of long loans as better last well. groups’ with XX compared had for than consistently rate by the months of shares. divided last now. strong

growth of the market balances over quarter has and was more in XX% second their the Virginia, the million is of In achieved. for Carolinas quarter, organic around the that roughly going XXXX. loan half we’re shows which been first the a So half third average the start the what great EOT year $XXX annualized. each a chart in There’s to for the has head back for loan same

Right is they platform now, XX%. of than to remains XX% would growing XX% faster in grown up Importantly, If will C&I infrastructure percent. have most they the Virginia XX clip total C&I almost in and plus book In loans, C&I create a XX% CRE imagined. Tennessee, owner-occupied C&I annualized. and C&I, is the around their at Carolinas much owner-occupied keep they’ve

quarter, indicates loan point quarter. X.XX% increase increased expected, and as chart linked our XX the basis X.XX% yields from As to last a

rate has year. increases September, increase for then rate modeling only one next and Our more two

We so so we least economic moves, year, thought which rate believe year, recent helpful popular outlook. it’s demand. this most next given our by to slide that last is at last may Our it’s the begin likely one quarter, increase, – back modeling is presented we more

We’re portfolio. XX% book loan our still fixed for targeting loan rate

rate not additional slide accelerate rate an information categories asset forward forward to accelerate on to We also further have moved swap rate and exclude may We short-term book. prime for yield second book, portfolio. rate our we’ve LIBOR the we floating-rate Fixed early in we’ve like quarter updated from the takes the the loan the of rate by Also, loan various for much the given another it yield feel interest with over loans weighted of on curve, all a in increases. our execute a yields swap component X%. floating-rate order fixed but lot rates substantially new the additional rate average captured

indicate, two bottom to in year, begin some move should rate As north the the on book we the we at columns are so the yield seeing this last chart pricing lift see fixed eventually.

were this was prime really credits year. flat New credits booked into based because early some we loan higher-yielding base from nice This yields prime quarter-to-quarter. fairly

said remove showing have The chart quarterly slide revenue loan on acquired XXXX. has QX average the to few are quarter thus, Investor our numbers, growing That quarterly producers. ago. been adjusted for our growth We bars of growth for our each annualized loans. the this weeks the blue real chart impact The since these Day reflects

the risk. continues we don’t in As know peer shown, loan credit peer outperform Keep quarter-after-quarter quality information sacrificing without our but we so to accepting our quarter. or far, consistent based will with be what what on mind, XXXX hear XQ concentration it undue group growth is first

quarter growth the quarter account bigger peers. to this small in for in need balances to to second XXXX. a the comparison loan Pinnacle of is chart strong slide of comparing middle the another XXXX deal. make We average the So The early

be million large residential. loans we’re whale-type $X.XX to few real us loans, not a an portfolio [indiscernible] and of over whole just size to got hit construction. but may to all average about is estate and commercial say ticket a of understatement. commercial for Our talking That’s $X We’ve lot million

have and quarter Bank deposit plan to and over over some we for and very up increase construction great developers again. spread was Again, XXXX. commitment are at Even is to over balances the builders it six $X.X balance hiring in a while bar Again, not quarter, are Our just a revenue blue months that, we funding positive granular average first million were wholesale in our Most up million gathering aimed could doing EOP markets. of believe into the the we portfolio increases. small move balances attributable Average had new producers Late our billion. a deposit $XXX average and Federal income. Loan be they revenue where balances little hiring in producers, middle-market $X.XX without think to of Home save without quarter. CDs we growth restructured commercial

cost more Our see XQ increased for quarter first XX that a XX% costs did on quarter the a can XXXX, deposit basis currently basis figures of since stands the beta from given XX minute. and deposit points second in those points. at on We

pressure several general cost factors. for environment, significant but to expect deposit future, pipeline. two the we increase also rates loan rate pace prominent rising fund we a to and deposit increased most a will in are to The for continue As need measured

managers Rick to commercial calling employment still ample serve are our our are are sales our Yes, liquidity loan expectations. a our driving think bankers equation depositors clients. our out efforts we bankers our at to our our for with that deposit Yes, match Yes, are depositors. are fund continue depositors. specific we increase for will is growth. believe markets and commercial Rob our loan Yes, looking ability deals. rates and relationship operating private we affluent in aim to Terry, to value commercial Our selling and growth markets in competitors. our far We have consumer superior to

We will still our in growth sheet adequate our play plans believe got room to paid on fair a loan lever our We gain. we’ve fund customary with rate deposits.

growing wrong, this are year. We now beta important, have and and get deposit Don’t we’re revenue more XX% me clients gathering planned on pay on earnings. a focused we right attention, betas but

have This if wins. the rate, but peers can expect, the but to we big The on component, Here’s you at for gotten versus may announced. wholesale than XX%. deposit that the us Investor is half was clients, the public our that around, XX% are a beta our will Also Go deposit. you new deposit for get more but notable growth portion showed XQ, but in quarter a line a you get Carolinas. hold meaningful ratio and client. say loan-to-deposit merger results Again, was know tell get folks the the might funds, as our of peers, in end that deposit to more another betas. than compared the we bank our a clients gather balance XQ non-core We us earning chart, of chart I their Day. of growth of message. will because And many the our our was first and the chart quarter, which of loan after asset is earnings a betas sometimes most large I’d core pure have the was closer deposits. beta asset At

will are revenue side But managing of balance as net interest sheet, of We focused are many and a income to net interest EPS margin point. trough our on around know, you focused we here. both

a was economy may like million curveballs to the responds from Mortgage in the sales we big a from not but had working. strategies have and quarter, Resi throw may $X.X believe our the Carolinas. particularly the at it’s Fees We million You $XX since that setting day, model and in mortgage have quarter hiring, the Rate not you. them how of hit differentiated quarter. it’s the this we amounting We terms over approximately is group metric quarter. up a group loan production increases or is mortgage last managing to good been million, $XXX this residential months. in believe end focus that targets, believe time-to-time, of creating particular helpful transportable at up income last last with to in model. few

area to you new before, news change good mortgage year. significant to driven this in Carolinas as we the in through several going we’ve that As a mentioned hires and secured we’re is

from for second BHG’s reflecting up from expected, the $X.X in XX% around reporting quarter the was contribution million, As growth year-over-year first at slightly quarter.

in that C&I goals first this key build-out compared just from the insurance million one services’ Trust range. have growth the doing companies of BHG in insurance non-interest In trust second services. contributed Phase and We’ve in joint quarter, in both to where the a claims the certain the program contributions in We we There and should positive million still several footprints from their had we was first quarter; have to keeps investment due net be our a remained the hires continue today. XX% key footprint Investment had to is it And pushed hires experienced, income success XX% $X solid of to the in base the in our $X to is flat in the mind of build-out in in investments. income, several in ramp to efforts that Tennessee but well. approximately up up growing of to revenues immediately. venture year our on significant anticipate in have the investment we in in other quarter I of Carolinas revaluation platform keep insurance revenue a our remain our leverage. Non-operating from quite pick Carolinas.

than on core efficiency XX%, ratio basis excluding was a is efficiency was which our charges of the quarter. better GAAP ratios, Our merger-related XX% first

little I’ll be quarter, this incentives and second. a just expense non-interest a our higher expected get in to We to

been same year the and mentioned change quarter this whole X% ratio earlier, year. efficiency year our than this last I almost of last there’s and bunch As better a quarter between was

for second Many the our of familiar plan targeted to things. at of how incentive end with accrue the continue quarter are do work less corporate of you We than our XXXX. we

we our our You quartile top performance targets peer within corporate know incentive group. to that ourselves, we believe the offsets equate

As many of numbers. If to we we get hit you know, don’t hit we don’t get paid. numbers, paid

were critical the you years target, of short-term where might that need incentives. some don’t than we over it’s same all long-term, CEO get say we if everyone and had vice we’ve with makes years pay more you important incurred and up ATM this quarter, disagree, had expenses we a we Now paid and included paid where fix, due elevated mind of our losses, believe, to way these the areas. We’ve it charges in Incentives million leadership about of the and Keep we this gets us are non-recurring and understands associate incentive one else. various on and that to losses, firm of Other base things The we unique. is team [indiscernible]. the paid do thing we the quarter paid, it. it’s credit from do Terry other Thus, why this plan $X that that that entire card myself is various versa. are which those product

retreat, targets Currently, last Lastly, targets on other ratio XXX net targets, increased month. assets was targets those we charge-off to XXX range January, our We last our for held after to a strategic modifying the ROA interest unchanged. left are as non-interest would update know, amounts our to of we the income strategic noted many slide. that net of to margin, you we average promised our planning which we and

in fully We don’t ROA next these to result up. think quarters. this back turn changes, to guidance we to intend With over wrap will forward. within change I’ll Terry it operate over outlook the the going modifications any several to that, Given our

Terry Turner

Harold. Thanks, Okay.

to impact CRE we high-growth that deal in As fact talked or in we’ve But be disturb and that, to Carolinas our over a double-digit July July known platform not way. we've hire XXXX. a that on our the addition banking hire that Virginia of goal growth a certainly beginning, To to that the time when rate. roughly reminder, BNC steepening always need was would had XXXX. already platform, and diminish we’ve both then Carolinas relationship and the XX described of high rationale the XX about that we the beginning in have growth phase, five-year private and the C&I to To end, managers the by any C&I intent since to of in period Virginia of communicated in

private but hired about we're we'd having number And vulnerabilities banks. good the has hired, team of to we large bankers a done financial new a these with fabulous Clearly, it's that impressively, experienced So bankers their mainly like hires want XX% been you to private best bankers broad, new number have can Pinnacle’s market retail Rick years, of which qualitatively, I markets, coming C&I of majority to the some compete. the large the in hire of from comment, schedule, long-term the in see, commercial consistent average job new in of hired national is just bankers not market. while roughly his with for hiring and ahead from of sources is XX XX, XX seasonal hiring the different have and results and adviser the those terms Callicutt players, to experience level of client followings.

integration could hiring by to terms moving towards how of only in and we for it's on so, And better. the we going the bankers on recently it the be would In laid success we're C&I based Year-to-date, board. XXXX, their the success Frankly, good and switching in be criteria. total much first the us growth half in then is of the we XXXX, like working out. this I and to appears are criteria not has do in experienced saw platform me transitioned, impressive original a has business, C&I any double-digit discussed. deposit we period hard meaningful but CRE the other accomplishing words, In to which total out loan imagine loan we Virginia, are the the BNC and clients as growth Harold already set exactly during And Carolinas in what continued standards. acceleration the

to be. a as our on our I expect like of based I as be I'm to long now, plans, Regardless spend XXXX. of before discussing the let range going first during gears current plan, of time being clear long on stance M&A. some acquirer how me part what I our I the on I'd, us XXXX do, remainder just discuss from but practical wouldn't right standpoint, switch know range and know to and Now

of of So, in criteria me let to out transaction previously range our we the Virginia, we Carolina, way, to used Carolina There have information four desire which guidelines. evaluation a a and has North with In quickly been one specific review the the that opportunities general, long was specific are public matter for chose Tennessee, we operate M&A communicated been plan. quite some M&A bold time. South states BNC The on pass. and versus

the discussions our not BNC. Of would do. we've we're targeted with out. that to integrating met have But on course, another acquisitions to while all been take of some we any there of some, the prudent in despite going, criteria but on bank wanted have it transaction In on missed passed late, a transactions number of markets, of in not we've laid being words, we other early

largely two, we never banks the have have at revenue the deals to bought you never. we've a to started managing in previously note update which transactions; with the the currently using to and I in bank not which of see, want our the about markets bought our the one, our two time, are criteria, we D.C., of can target they amassing what but two and originally do that existence, streams do only number like trust. disciplined negotiated we our markets six you we're stay Out to delineated four we buying. addition operate in done and want updated that been we’re protect South Washington, the As in amassed we updated some are, building areas And and nearly markets specifically quite know size XX advantaged that and think M&A, highlight to continue most already Carolina. from Columbia, teams only approach auction, which not state first chart individuals we've years leverage minded continue we for and This to have as number of and did It's been that we in southeast. already

over addition Virginia please, expect eastern in so of Virginia, we on into the where Georgia near-term. These work those strategic very terms markets things markets, please, believe of Atlanta, of now doing south model would our and to do as Richmond, our in And not But Tidewater plan. area long simply range extremely the list we take are well. updates

to we’ve targeted largest, markets book retail, X% simply other dilution. in as our limit don't footprint not three, tangible M&A, larger we and value of accretion, deals need As XX% to which profitability that we now, discussed, Number compete of we by markets the let our double-digit two, do be urban ups has EPS desire expect it it and and either large consider to we of organizations. comfortable not the Number long-term fastest to new growing discussed. our strategically, southeast. to to We successfully extend are pulled hit as to we meet and will four, dominated both the present the that near-term markets any earnings plans clarify smaller one, just produce to outstandings several growth accretion deals Regent, Fargo I or any need commercial several not just criteria. M&A and has Number technique in include, start stance SunTrust, fail make to produce need and we be Number five, themselves. and me previously, the and Bank to so on transactions don't M&A regardless America to in We acquisition the need rural, urban criteria and an using existing targets. extend strategic Number for years, denovo we to X% to equally targeted growth X% to M&A markets. these of Wells

opportunities We are M&A start talking with by position seven, transactions continue available we would would partners. negotiated relationships have the given number to cultivate like-minded criteria we extend, with about. been or satisfactory only limited We targets extend M&A when denovo to

just said not me so I of anything for that's have for another transaction a the and to of could probably it's And of quickly, you imagine in those stance, just who XXXX. likely. to want Simply moment ago, or terms our us early how do XXXX saying, as remainder hard occur near-term

about For we're to likely who don't That's as of immediately, announce concerned can make clear something those you are it. I be. as

out two, a on background in done it think Carolinas programs PNFP I'll job I build Virginia, anyone’s that, Harold are can of the that as but and a Honestly, address want Number investment our nice of bring little you thesis how C&I consequently to Number that in has peers, mid-double-digit things further. we to earlier, giving gather income relationship-based the important EPS produce and for long you said to I balance with. growth, fund interest our staff. can us. is I PNFP deal important rapid which loans funding number and health rapid really it several growth question the there grow life Now questions and on deposit to pace think net from to loan despite to one, growth betas, three, if high most us does related I And a sheet are because bear the growth. continue should differentiate take

beginning growth. pace So of loan with

required is would quarter-end loan with are in weathered these We many you outcomes, future of predictor transaction. best that with closed We conjunction close conversion laws we've and that brand – Most is that outsized June the momentum internal of and deal past system mourning change up the quarter-after-quarter, whatever and the XXXX, occurs weathered outcomes recall focus put generally with following future whatever We typically of BNCN that. generally numbers all, consistently we our occurs and through growth. weathered the the announcement the loan it for the all that. merger results. While in so of say of the previous

x-axis do is One that raising to successful two we the clients them organic of incredibly decades for attracts for of plot each Score really the for Promoter turn market. only market not growth the differentiated level almost of We've our keys, provide data. model service the is advocate fans the that level in Tennessee now penetration our us that in markets. y-axis the and previous on on Net This of

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and quality, of This the to outsized it too. loan credits have terms quality. grow other only they any they fees quality. I tenure deposit and way great Additionally, leave grow bank quickly quickly, growth, Number the do both not funded, get relationship they in and loans behind funding relationship. only know harvest asset about model long produce entire They moved their clients hasn't client is three,

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two two the prior market and at both overlaid we Looking in BNC, then Memphis. Chattanooga great cultural We banks, and here hiring but models engagement. to did XXXX, bought extensions our

with XX in revenue revenue started So case and of in producers Chattanooga, producers. the XX Memphis, the of we case

to the growth. extraordinary growth can and producers, which build then You led deposit of extraordinary see rapid out revenue loan

You in bolted C&I perspective Virginia. might most It the growth of on revenue that. the essentially continuing CAGRs in And Carolinas and for from on we time interest double-digit see some running think producers, terms loans three and the the platform. be was largely I which bank Memphis the a the CRE huge of all there, variables the we’re play It’s deposits. same

number related to so hiring in potential how deposit an our funding. be XX% over minute, not Virginia, continued over does managers assumptions production has number the illustration they This of period line XX% loan One FAs the Illustrative million double-digit year; loan from one, material Nashville, take, straight a $XX and concerning ability in million point two, volumes. C&I it about in relationship in to relationship of are: growth questions forth. impact of long Carolinas the straight in relationship to funding. continued loans and in the occurs course build number I’ll hiring; produce five-year growth It’s simply with the but a guidance. what’s the or the time is in platform average three, and Mature lines of $XX In talk loans with of that occurs

So as year out, private this, in we bankers entail instant like laid in XX, commercial it hiring originally and an one. we’d

would have, in year So average million million as expenses the million you not have $XXX in compensation loans, it goal your the would total the only we run line one but rate. $XXX which you achieve assumption of year one, clients. in in year average reviewed, manage be the five. if to about an concluded $XXX required look clients books, one deposits already you the think And you the the across I just expect to Using year in might average

additive, steepen so you book laid two, growth be who a assumptions would The we more out. previously two factors period, in with discussed. in C&Is just our bankers do conjunction growth. loan year rated and consistent unavailable macro loan-to-deposit will have And on five-year where is to banks the provide And of number would a are which things. it’s Number hiring so the force and number sources the you in annual diversified see over one, been constrain private CRE can growth successful XX with each loan class produce volumes we

growth some attainable are that comfort loans should provide So to incremental be an this initiative mid-double-digit times. growth got for in some

on let see we me more how approach I color can the gears, funding challenge. So if provide switching

model funding our our build of calls we all, loan range. of methodology In to fund the growth. in core from general, setting goal force First sales the XX% XX% sell to XX%

funding. operate XX% a outcome on Our comfortably an we level, average dependence non-core with from macro level can

models Secondly, words, Nashville and and clients, advisory C&I how deposits home planned for I’ve hiring to practices moving the a is relationship. approach already these loans. as just we an our in to discussed clients, group, here model to alluded minute build ago, fees, I we other harvest not loans, In entire The other the markets. client attempt

$XX Nashville C&I have managers build XX consider average The material Claims we at Group $XX unit, those that million. is average bankers deposit the Advisory has least and So been million and is private book relationship loan in there book that years. from which five

our our applies through to C&I been retail Carolinas the platform key in regarding see one for business XX%. March in Group operates Tennessee our and which our has funding client X, our immediately retail Again, the just based the just our on entire have as Marketing announcement data is we Infusion XXX,XXX Much inside deal for And not on material footprint following core discussed Virginia year. approach XXXX, relationship about it commercial well. can households, now. side, you banking This relationships, harvest loans. is BNC So to make entire the but from to beginning period it requirements, covers

the the household deposits which change the than affecting the average faster Carolinas than faster for on per highlight was in conversion twice norm. that by selling. just were time, sales added no what we nearly I and during norm with We norm ran household During Virginia of contest, brand offer is system incentives relationship-based double ad, an as time, added entire well XX% included norm mean household period XX% the banks. that sales. period the We didn't for and the banks the as the balance never didn't firm, we relationship have we we of any deposit nearly promotion, And incremental the there focused selling,

to funds, that relationship there's deposit that order loans. the around growth funding with of on in always been of have doesn't grew deposit So, to intentionality natural deposit a think a but we where deposits. to Number occur And pick you years specifically among deal than like up augment distribution straight occurs. like. since doesn't augment focused two, fit typically to processors that who that RMs focusing think line. where great the courier Number They our we answer we of things to of a build trustee, many three, are on are loan the acquisitions. this recruiting support a the meaningfully providers send typically straight are depositors, recognize with location it pickup net quarters occur we category. and clients this. the most sectors a portfolio like it is one, included gather bankruptcy taking hiring loan that We them grew clients courier I capability, plan headquarters or yes, familiar acquisition management property would deposits faster HSA specifically, and faster I initiatives than and deposits title private companies, RMs things bank associates But on managers, existing and number and over always brand the Number who a relationship line, are primarily planned

share mass for but Number five, to Our done technique. where captured have an like Chattanooga Virginia, tools a experiment been and lower opportunity has we now with branches deposit posted more and multiple full we in suite deposit multiple businesses, four, banking consumers. typically we've market positions. Number electronic Carolinas marketing, zero up that traditionally, have this leverage of

for Money then P&L money in sheet at account completed running fit so successful just we X.X%, rate and made and but we relatively fact, a great returns Virginia a not In needs. in of campaign in provide lastly, market investments a And More the number and there. non-banks that X.XX%, campaign past, Carolina balance our high

that. the of BNC biggest course, example Of is

us increase us normally is feasible investment credit to builds out higher-yielding a firm than been have in card for a an than in that, Carolinas effort do. credit Another several million years that bank that build we of made card more assets, in scaled and a business to platform, $XXX wouldn't ago, to example position what an portfolio put just on otherwise

also affordable investment in us in modest a security as state-of-art we security rapidly deed specializes It at banks cyber a position risk price. also for a puts to firm. growing a cyber We view but which We made a managed cyber in huge market, return a security their recently investment have puts for on music investments discussed tours. the Investor control of firm funding showcased in in which we which on in sources a a to position us made some and Growth, deposit Day, had called Artist and artists

we corner hopeful be we'll time, that leaves large so blocks And able find opportunities of funding. with over us to are similar

of objective earnings finally, may discussion which much there's have been that in my So and opinion, growth about sight firm. so is deposit betas of revenue the some, lost primary this

seems relatively measure to and answer that a income, EPS. of question me whether grower so rapid to can be revenues of of And yes. firm deposit interest grower the net rapid it's therefore high is therefore a grower rapid It

our taking of think was at volumes growth that the despite the Here, between et the of consequently – deposit beta able normalize whom see by really our on income performance in y-axis difference our changed we for I most plotting interest are acquisition, the pace. order some in and share and x-axis many asset relatively flawed earning in share high I to interest dramatic quarter growing believe that year-over-year deposit on be lien, and us net because cetera, companies, we’re the client increase important pure And to grow per base peers, can our costs was the year-over-year low a income increase and you peers. and total beta. may first net on a this market

markets management so EPS. are And be high most banks. we revenue our we’re outsized profitability very growing of unusual and We’ve all our very different on produce growth tightly to here of the the have to here's some other our up level than organic focus. seem Even presentations days and opportunity these in very focused

in position to are time by improving to measures volatility able that fact, dramatic play. clients we that market pace we if In model we to might But might ROA be actually and at taking operating a a at share. are play have we that a we of we Accordingly, our where not on Go gather make play. we’re can Again, our ratio. make to X% level Fund do make bank, like didn’t able efficiency we wanted assess leverage differentiated that we be higher the when advancing not

assets Specifically, per to a rapid share. earning growing our outsized competitively, pricing it’s growth pace, at intent an adding pace continue in produce revenue earnings mid-double-digit producers and at

So I’ll stop there, take Dan and we will questions.

Operator

question Thank Our you, the Fargo Mr. [Operator open Turner. from The following with Shaw presentation. Securities. Wells questions now Jared is comes your Instructions] first for floor

line is open. now Your

Jared Shaw

morning. Hi, good

Terry Turner

Hi, morning. good

Jared Shaw

in funding less did the was on to million When something CDs? shifted side, wholesale maybe great over that color was start growth around – look just quarter, $XXX that that CD entire borrowings side than just Maybe reduction the at or in this the we the that.

Harold Carpenter

repeat you sorry. I’m can the Jared, question?

Jared Shaw

borrowing less declined the it sort that the of FHLB $XXX Sure, entirely the $XXX million with was than yes. in the the was about talked Or that by you When borrowings, noncore transition? there, you at that line, replaced look munis? CD million

Harold Carpenter

Federal but than less average bit flat on at Yeah not quarter. lot balances for borrowings, you I the think it the look was they Loan But little a if Home Bank Jared. million, the less, stay a the pretty $XXX

at make end that sense? happened quarter. the of So that Does the transaction

Jared Shaw

CDs what the And absolutely. FHLB, off you then color please? differential a rate could between paid little Yes, provide the the on if new what’s versus you

Harold Carpenter

XX was basis That about points.

Jared Shaw

target XX, fee income saw to level sort we fee longer-term, of in where then but expect sort the for base then And little in great. nice forward? on see should a Okay, that the is there other down out years a fee Anything income good pre-BNC? in or brought income, be And of we guess, had corollary first, aware that quarter, Slide that you the that, longer-term, the of I to you back there side, on goes income. going I should we jump fee

Terry Turner

effectively Yes, second did of other that platform number. ancillary have Yes, and in joint non-interest venture try the goal all about investment to deposit the that the in built give to the that’s mean, fees, C&I was $X some income contributed services. I with investments. to and well comes Carolinas reevaluation Virginia a fees and and the the quarter, million that we And other

Jared Shaw

you very much. thank Great,

Harold Carpenter

Thanks, Jared.

Terry Turner

Jared. Thanks,

Operator

with comes Thank from Stephen you. And our next O’Neill. Scouten question Sandler

open. Your now is line

Stephen Scouten

morning. good guys, Hey

Terry Turner

Good morning.

Stephen Scouten

composition guys double-digit on historically change your do a Terry, question maybe seen date, percent-ish to the now that color loan you XX%. kind XX% to year-to-date XX of expectations to we’ve for Has relative any more I what’s growth great sort of a have been like been bank, continued growth. versus just you versus there years? kind of year-to-date? range the over what doing we’ve last think reconcile are seen within loans? of manifestation really larger And larger are Or this a kind you really all a fall might we kind that is few historical hiring activity that of where impressive you of can

Terry Turner

company any change on meaning, there’s lender. the think being don’t be lending, focused I to a Stephen, continues personality our C&I of in Yes, the

We’re credits. doing shared not hard

nature forth. I the loan the of really has already granular sizes average ticket portfolio, reviewed think doing, we’re so that Harold and

don’t large and the mean, doing from got perspective. average you’ve worth I any As but shared low every that hard there’s is ticket not you income change is the that averages, it from hiring credits. do. I driver than great more know, think personality not all the business books of that out and move large a bankers do others been that can quickly of representation fair rapid loans principal has success I think an that those

your I I’m answering hope So question.

Stephen Scouten

I do does. guys you with you guess still Or XX% think sustainable? is of I it above messaging? are double-digit are the comfortable mean, kind a Yeah, this rate

Terry Turner

say about sounds to mid-double-digit comfortable say. deliver that right feel me to we whatever talking hard let we work range See this try I to me.

that truth, that to to at if – were or range we’ll to like XX% want sounds say If mid-double you digit be know you I I some, the guidance from mean, would say stick XX% mid-double-digit some rather that, is guidance again, but can there prospect It I’d like range. digit go I so just that do better mid-double seems that with than we given. we’ve the me,

Stephen Scouten

pace Perfect, seen any had at just noncore noncore betas stuff? core how one we forward that we’ll to really number from core color this XX of have some you a into was can deposit XQ that the decipher around you versus versus of think of can was pulled And that is one or me, that deposit perfect, forward the much you’ve maybe how the other point quarter-over-quarter trying likely then kind forward? see nice on is saw growth maybe and we all? basis you that Harold that XX the move quarter? okay. I’m about give in moving moving If Is bps

Harold Carpenter

book core wholesale it, is think it the wholesale of I’m quarter-to-date book. call the don’t higher my trying is the know, core what Yes, wholesale XX% around, call much on to But than higher. significantly the cycle-to-date for I’m the deposits my core kind versus, quarter-to-date. on information and the Steve. but out of looking beta along between the trying The I’m that on deposits. figure at thoughts that, I I kind are XX% percent it somewhere relationship gather looking probably be to the I’m or book will numbers on

Stephen Scouten

follow-up quarter, or of from core to I in of I put the big some mitigate here, mean, deposit that, quarters that you and with guess you keep pressure growth And the see we think the can you as a maybe, pressure? okay. could kind up subsequent Okay, this do downside NIM flattish

Harold Carpenter

a see the we we growth quarter NIM. see We had a right, in deposits. some I downside think quarter. this great great we’ll But I don’t quarter. what we’ll saw in pressure think you’re core had

don’t say the with the I’m I growth I’m going makes flexibility say So us the the to feel off that into going we the I’m They’re still going take deposit growth deposits, sense. going if like don’t to had to to as not like, degree growing pedal to – force. like growth but deposit quarter know. third go the and quarter always looking can second not we we say I’m we’re some on that we not Trump at give of be does quarter in going sales focused foot

like require I’ve The kind I’ll on add mentioned our where this we depositors yesterday. price. board is to It been pricing. found is, the this escalating to that other it appear this unlimited doesn’t think, thing of an there’s I ever by point pressure appetite deposit

lower deposits obviously I the from caps but to Steve? an kept their think bit price of escalating gives a price is depositors opportunity an to pricing that benefit some have that higher make secure sense, which not little our deposit us at their dramatically. large Does

Stephen Scouten

helpful really for Thanks on and much. And the thanks here. great that’s congrats quarter. Yeah, so a guys color

Harold Carpenter

you. Thank

Operator

you. with Thank our Mealor KBW. And next comes from question Catherine

Your open. line is now

Catherine Mealor

good Hey, morning everyone.

beta, question you way Just talk Harold. the clarifying about on a deposit

XX% say or a basis you’re think you on you deposit that a for when basis So, this thinking year? for have just on about beta year, a cumulative you this

Harold Carpenter

and I when rate for year, fed about talk this we’re we a that, effective basis think Catherine. that’s funds at looking

was year. it yeah, So this for

Catherine Mealor

Okay.

get point, for when we to we and get that should that would suggest it quarter. the And another quarter I Stephen one, the from from full benefit so September, then you level in June beta that actual – get I this think – the when think the almost saw say decline you this beta, let’s

bps deposit saw see we interest-bearing over So linked in quarter. a not increase XX quarter, may like assumption? this Is that fair cost we

Harold Carpenter

Yeah.

but cost kind what this it loan I’ll to expecting of deposit another deposit we’re that pipeline, way. it. we expecting that growth quarter, large and tell context not will not like I’ll experienced say costs that support increase But We’re we you in if need support increase. have in we this that that’s

Catherine Mealor

okay. it, you. helpful. Got That’s Thank

Harold Carpenter

Okay.

Operator

you. Thank

Feaster Our James. next question comes David with Raymond from

open. Your line now is

David Feaster

guys. morning good Hey,

Harold Carpenter

David. Hey,

David Feaster

been have given give any C&I competition? executed testament is would and C&I you’re up, and – to have maybe you is the picked for. space? in you’re the and what exactly thought competition What tremendous has has growth us this And you Could most given of seeing than seeing in there more as increased you’ve you irrationality opportunity? credit segments pulls we some segments your a certain

Harold Carpenter

but That’s the I book we a to – in continue certainly think portfolio. a answer the well-diversified C&I to great question, have is

earnings past and can it’s book. calls you that think don’t there find the If well-diversified we the comment, back the we’re down break that that’s the in when we something so your look C&I take an portfolio extraordinary back components forth, where slides, I category, because that older would comes from growth relationship is it’s from that management. to in on I creating there’s you growth. just inherently going coming sector growing

who is deposit from So, is of doctors if has our on banker, causing private a it not that’s a we who terms concentration in relationship of management book, sort on occur deposits that of a to what concentrated is up are thing macroeconomic shows doctors the it balance that’s a a building then doctors. among sheet, banker,

phase C&I in And same franchise would was so thing this I’d say we the different as apply specialties lending hire bankers, things. some or were of

we particular surge economic in tied in versus they again, are category up see you’ll causing some it don’t whatever any category But another. that’s see to moving. And so tapering factor one

David Feaster

more that activity market Just competitive there, then And just success you I you the there. on but opportunity in and there’s about, thoughts you’ve it’s de talked expansion dislocation had the on? talk talked be in the the or you’d novo for the that past, that’s interested about Could great. in on maybe near-term? Okay, de that your a capitalize can And in? M&A given front. probably highlighted near-term you’ve M&A some maybe still whether sidelines appetite is your that you Atlanta for novo know about

Harold Carpenter

out, would that I’d mortgage. they’ll walking mentioned, I’ve Well, say I target as say,

they’re you Atlanta there happens the people, vulnerability would try I said would when know and we of Generally, banks all evaluate seize M&A given what for what is when markets. tied to the vulnerability of of those what on. lot We’re to still several attractiveness, that more way terms And of just transactions, you there’s there’s those not more the more and just there’s as that a interested that transaction which it’s attractiveness are we their there, in say market, of there. consequential opportunity competitive, in is creates but

to But from of talking from again, I So, perspective. would be highly Atlanta want standpoint, if say just I would we’re or realistic. net that to attractive what that to three be now, a four we’ve stuff exactly general done going is attractiveness like My bet told just say and you’re a going do. years from have lot look we we’re you what

likely are of months. we the nine of to from to a have in be to something months now, talking those kind next just probably trying that, now, things discussions like the are that activity XX things those We’re we lot kind would from of you done I’m XX nine give lot a basic of practicality of these things, where months all that and in

David Feaster

Okay, great. Thank you.

Harold Carpenter

you. Thank

Operator

Thank our Demba Jennifer question from with you. next comes SunTrust. And

Your now line open. is

Jennifer Demba

Thank care your clarify us color components, you. loans, corporate whether have the health et size loans, A be care some give you practices, couple this And health guys doctor’s some the it on question, cetera? we’ve portfolio? a banks loan if could hospital of seen issues of quarter. Wondering

Terry Turner

Yeah.

way, this care mean, a have and exposure ahead pharmaceuticals. health go me Let we lot to I of

say whole in favorite Those short there, But we we us. largest little do companies have I companies and in be of in peel have. $XXX underneath clearly subsector, you would that think to would and KDM. that’s to whole so like what’s that’s just buyers the is make We the granular we’ve LifePoint book. outstandings. and probably than so think book. million. all other source I what credits even just $XX doctors, which back credits know, group of important are and that third get that I when and And AGA, practitioners, around more those want in I portfolio. you in million I again credits. it, true dentists think to that’s total a a an can And Jennifer? made among those say but big up that that more think extremely and there’s across

Jennifer Demba

Yeah.

put, I mean put stuffs mean, so, bucket Would or in I housing. so, that senior put think wouldn’t obviously, just – living too? that think like the I any you you you I would assisted you do hospitals and have

Terry Turner

see… Let’s

Harold Carpenter

we’ve hold have mentioned, hospital today. of got might look the some about that of through all don’t middle in view I’m And detail some reviews sure before has We’ll on what it’s their chains think, we know loans or and Carolinas we with at in hospitals sneak think I independent that larger I of the Terry do going a rigorous Virginia. town. – we’ve out. us go that here not already S&Ps and got in to I But those things. level we to Tennessee. have what’s be

Jennifer Demba

Okay.

Harold Carpenter

the have book. right any So health don’t we issues care now, with

Jennifer Demba

Thank quarter. Nice you. Great.

Harold Carpenter

you. Thank

Operator

next Piper our And Jaffray. with you. Will from question Thank comes Curtiss

Your line is now open.

Will Curtiss

guys. morning good Hey,

Harold Carpenter

Good morning.

Will Curtiss

I wanted just on quarter, out help the expense kind given expense thoughts to going I during not assume it's maybe reflected about the Thanks. you see, should how side think that made the And hires just Harold, and your you third given the would base on but quarter? us the of the can current fully forward? timing, in the so just base curious we

Harold Carpenter

run I on. the Yeah, pretty this all to going is depends good our base got numbers year. rate expense think It our we’ve hit intention a on,

will hit incentive be also fund and continue to to healthy. can the expense plan, we base that what our the if numbers So causes

to booked about from quarter. going That's in that expense absent ought expense million the about fairly first So this base X.X incentive $X We've in the quarter. flat forward. up be

we XX%. again and target range to of increased XX% kind from So our our

as So can to the hopefully, But will we go be number year, through line. that expense the that a we burden increase more. again even

Will Curtiss

Got it.

in if maybe annual then XX% here kind kind BHG, of decent going expect to XX% for And that's the and Which the discussion couple fee back next ramp I would I growth, imply a quarters. correct. outlook think the Okay. guess you to still income of of

for fourth So of sort where how rest we does it in jump year trend should growth the a the of – big quarter? last like look the you just the think year, about had

Terry Turner

run They in year. quarter. the this different anything a of bunch fourth anticipating not we're think campaigns sales I Yes,

feeling likewise year. do a have they'll We this

their intend Our buy got banks business they loans on they're want sheet of to are good. of their periodically. flows credits, lot release a lot balance They've that a to warehousing

probably and in – so fourth still will anticipating XX% the quarter So the yes, we're be in growth XX% than third. it more to

Will Curtiss

core And you I do it this think then have loan was quarter, what last real great. yield quarter? quick, the X.XX%. Okay, just was

Harold Carpenter

it a have it not do for little. I with that you me. upstairs. I'll I've in got get

Will Curtiss

right, you very thank much. All

Operator

our question Stephens. with And you. from next comes Stafford Tyler Thank

Your now is line open.

Tyler Stafford

Harold. and Terry Hi

Harold Carpenter

Hey Tyler.

Tyler Stafford

XX. question So on is my Slide

point So mentions bullet pace. that NII loans mid both double-digit a and three growing at

I you despite the pace accretion annually want at double-digit a to believe if grow headwinds can those you organically funding NII and just So clarify mid pressures?

Harold Carpenter

do that, plan we've Yes, growth of we've a think got takes a to but I I place got think to loan lot opportunities. do in that. It

Tyler Stafford

you, question. more no there Thank is

Harold Carpenter

Thanks Tyler.

Operator

comes UBS. with from Thank you. question Brock our Vandervliet next And

Your line is now open.

Brock Vandervliet

question. Hi wanted growth. just to good taking the morning. I talk about Thanks loan for

this this do First of the you was all, still to growth or this Investor strong in quarter curtailing continue annualized. but half. off you QX? in case level being seemed QX the above quarter growth excellent, second loan that in and the Is about expect like Day, XX% into the It talked second somewhat

Harold Carpenter

the – As third we best and and we'll the quarter far close pipelines quarter a like just hedging look kind been and crapshoot booked We not. sometimes right in growth and And to have second to in a quarter. quarter. of able pleased sit We're dollars, the to replicate it's as the loan it's that bets our it's what fourth second fourth plan of and a say, here quarters absolute are first third be the be to be sometimes and I to the third strong probably very guess kind going and But generally quarter. in okay, we quarter bit. that year now, with on fourth the is little our is we've that the first able of in

Brock Vandervliet

was range. Got really at And XXX that this you your guide, the that NIM XXX it, we Do okay. of look do longer-term? or of at the of the separately for point look remainder XXX, on as center above to quarter the as NIM guidance year that kind and

Harold Carpenter

we’ve our effort. gotten the I just strategic call that for think it's through years. X.X it, planning longer number We the do term next

rationalize try out results for a look those way goes, like. try to target X.X reasonable to like it, we the is kind us the over what set of to and next, XXX figure hit call And XXX those seems we years. is we to targets that and Brock, So how it And targets. a

Brock Vandervliet

you. thank Okay,

Harold Carpenter

you. Thank

Operator

from Thank our you. And comes next Group. Hovde question Zabora with Brian

now is line Your open.

Brian Zabora

Thanks. Good morning.

Harold Carpenter

Hi Brian.

Brian Zabora

you just structure of environment, just credits? a to the on you some growth banks CRE, the see talked those kind talk but current you could had did And paydowns. industry strong question pricing the same dynamic? Just higher generated about about Obviously, and could about talk you of

Terry Turner

to in take continue Yeah, we put and expect financing, see higher I markets alternative paydowns, open the recourse. attractive future. in people dynamics, so we no and are market financing number are to do terms permanent think, facilities of wide relatively long-term generally very with them call do that one, guess, able projects and rates perceived low level at that I'll before paydowns What I of

of time see the And likely CRE so and an period we book. in over a high in are paydowns I industry extended think level the to of others

than the I don’t terms above of I important we that, the is and out average say guidelines, underwriting book this you residential panic get construction a Harold pricing again, button book, not about commercial take to book look at of book we think – it that are of have. on the the construction about size. million in less $X.X and but CRE the when granularity we're talked and the ticket

are and You dealing things. with urban market, can of providers we are we we dealing and dealing XX-storey national see not are in clients, downtown those large markets kinds based the not in with relationship with our buildings largely

be that And the slippage a we we in trend, do product don't said would segment and some overwhelming again, again, we, but so that from that think time-to-time, a project it see, an and little say base is the I from to client the so competitive underwriting see differently provide the we standpoint. works I reserves I them, more serve.

Brian Zabora

there question any Virginia and very pricing Carolinas That’s is a different And then deposit helpful. Tennessee? just versus the dynamics in on

Terry Turner

difference. been Brian, real kind we've of that there's a surprised not big

pretty and rates objectives prices, in there. flow over that in they're of the markets consistent. are account Carolinas, fairly being noninterest consistent. got Tennessee the operating think the is or offered for But both one are deposit accounts, I interest-bearing do that in that's bigger a than Rick's We’ve bearing to build book

Brian Zabora

questions. Great, for taking thanks my

Harold Carpenter

Sure.

Operator

you. our Martin with Partners. comes from Thank And FIG next question Brian

Your open. now line is

Brian Martin

Hi guys.

Harold Carpenter

Hi Brian.

Brian Martin

the that in the FHLB guess, question, I one the was you deposits, just margin on the just Hey, Harold, that quarter. not second did restructuring in impact in time

the when So happened? the it's quarter. Is understand a favorable third – timing that that in is impact

Terry Turner

margin it quarter. in will Yes, the be the helpful to third

right. You’re

Brian Martin

way given a I you quite the think size it? is So guess, I it modest the of positive, that’s about guess, fair?

Harold Carpenter

I Yeah, think so.

end The modest in years positive. the there market tell to it wholesale Federal I on hotels advantageous more generally, they’re is curve. on think and probably sure, Home a NIM the and two the some is based is I’ll looking your was shorter backwards, longer the Loan rates, the way you we’re at for Bank, the of curve, end but of

So was those one of it lines. just

Brian Martin

about forward just got talked you the mainly when that – you doing can Or rate occur? what’s think I another I about guess, timing could about would the And you I I you. of talk guess, interest doing that? swap, then guess,

Harold Carpenter

it end of part next of the as this So occur could week. first early week, as

forward with somewhere XXXX. or start tranche into about are talking We around million million a $XXX $XXX a

Brian Martin

it driver, already most like of the Okay. think guess, quarter that number, expense kind sounds guess, of salaries I other question are And be camping said lot you the mean just non-recurring? have, kind on, about I there’s this of I the in excess I $X the of think the based of I million about instead was that’s would numbers it answered,

Harold Carpenter

quarter. we also kind bit expense of a had Yes. number little heavier of a And this ORE

So, what but is all see. than there’s – the and we technology we I normally had heavier think would – expenses probably some around more scattered accounts that

Brian Martin

Okay.

the that include oil, the $X clear just you does was… Okay, Harold, not so million Or the does what quoted, oil? of that excess, kind to be was on that include

Harold Carpenter

not. Does

Brian Martin

It does not.

in know of to going right. said the color guys to number for have forward? as us the performance I a you degree, All a obviously Given there’s you’re like last some guess, the thinking the And Okay. in rates can mortgage give so. I the little you their then me about of how call, you mortgage impacted alluded lot kind changes quarter. thing was Understood. have

Harold Carpenter

expectations filling Virginia. They’ve the Yes. think a in I don’t XXXX. we guess, They you got budget but I for and gap, tell don’t gap, that. there’s mortgage We’ve Carolinas in – momentum that can lowered our I anticipate building

some I And wasn't think in our partnered XXXX particularly going Carolinas. that it into XXXX. have create mortgage momentum with Tennessee as over I the think and will guys Tennessee probably was it there wasn't into going strong there, here as or guys in

Brian Martin

That’s helpful. I guys. appreciate Okay. Thanks. the color

Harold Carpenter

Thanks Brian.

Operator

from And Nancy Research. you. comes Thank next our question with Bush NAB

line now Your open. is

Nancy Bush

in are of that questions any Two for gentlemen. starting growth, cetera? auto have may I’m the on And states you to morning, average What national you Terry, talk be? Good et impact Pushback? operate it emphasis , impact particularly you. kind higher about manufacturing. tariffs? than How hear the a may manufacturing wondering,

Terry Turner

it’s think. things, topic to would this people say clarity that doing in Yeah. discussion. it’s terms fair think, point, have Nancy, I just that. think and cocktail those and heard But forecasts I any chatter it of I at of of kinds not changes of Again, be a I

Nancy Bush

you near time et process, think incorporate process, anything there future? to Is growth in any that very your into you thought cetera, have the

Terry Turner

I Nancy. don’t, really

hire and to and we on run. I those the it our pure loss growth don’t think, business, things I we with question our I expect, kind of if growth we would the But down tempered that that hiring of people do our growth. I I answer grow And don’t. to growth things is I really defining move will contain of be about and basis of of do contract expect kind go love their be is, of again, the that from. reiterate, and volatility of macroeconomics large would things, the that the of just think simply to ability then is books reliant the but or and back books is, think comes business, one bankers that really on you we the What defining where basis expand is so subject we’re that’s of situation, I model

Nancy Bush

Okay.

of right that in I’ve mindset I being your And X% you is down not kind year-to-date. that’s I this And question. is all this reflected with But the think mean, accord growth we’re have listened your presentation as there. stock in stock Secondly, flat-to-down culture to And and multidimensional you morning. know, totally your and your your your about in now. year-over-year. what, methods

about the to P/E basis. cheap this wondering morning, based stock on directed this basis, price? are a Is – cheaper than of and I'm certain used a thoughts amount if be What that's commentary at much based tangible it sense frustration very value on book that's You're frustration I your this? and your in

Terry Turner

with me. and I fair believe plan Harold all being thing frustrated do what's that I irrespective to going perspective kidding are to the without not that's it's out I'm continue short-term the extraordinary of I care shareholder and working Well, right laid sounded from I frustrated that's what for say, we've is value is and to about going long-term was share a just you, that's our Yes, for. we shareholders, think to on am hope Nancy. price, produce the

to you you two, concerned not and I'm stock that. tell asked are going hopefully manage fundamentals And what if you are there's I'd do the your investor we two So somebody above conferences say, Nancy, about of him of and of will And take itself. me things. the the say, in business this, care one Terry, differently? One, look, story.

past, So done in basis. I'm will bet we phase. in we're have say that in than growing doing it running are think, line sound revenue hiring what doing we're differently, the we terms and we a are on doing straight We of producers, a not thing differently we're down making we tad outsized I

funded, kind getting are things. We all those of

please story, to I come price and can could So way improvement better we're if I produce going to manage that tell taking a the on would not, what we we to out be ideas to but run. short I you in them free love if to that see up. fundamental. Maybe, to do share some so continue the up that are list feel are volumes in with have

Nancy Bush

I sharing a think I but you Okay. being would I dividend, a sort the stock you valuation would I mean, get for would capital of than capital got about and cheap you've think mean, ask, growth into opportunities dividend, if it, competitive dividend a little mean, this bit and I about continues, plowing other more side? little your more on

Terry Turner

and really – if is we'll we’ve me we'll had answer tell the been want to in wouldn't earnings our grow and to pay It that think guess we I about instead continue said, sense think you case. not modest increases to delaying concern grow are to I’m the I Well, They’ve that truth, and think can't that me that. things dividend, and about meaningfully. would would we at do the always at that imagine dividends. Terry, the dividend. earnings we rate can not But the wouldn’t to we out you make growth everything. trying saying, minus be if anything [ph] I slow

sincere we as debate talk So, anyway, when you it, we it I'm about can I say, imagine.

in the you considering now, and mainline seen of been most or alternative we I of an Some know people them. never have or I excited it have gather at a the what We're piece this hear alternative, prospects to company say, about is growth gathering are contrite call. you I this sounds also clients right again, but that work opportunity

We – path have volumes guess that that will the over is down that to earnings going so produced going we're and time my appreciated. where and keep be

Nancy Bush

All right. Thank you.

Operator

further gentlemen, and any disconnect. for time. at participating in have and Thank today’s you concludes may day. all you you. conference. a does this And thank Everyone questions showing This today not Ladies I'm wonderful

Pinnacle Financial Partners (PNFP) 18 Jul 182018 Q2 Earnings call transcript