TSC - Earnings call transcript Q4 2018 | TriState Capital Holdings, Inc.

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Operator

Good morning, everyone, and welcome to the TriState Capital Holdings' Conference Call to discuss Financial Results for the Three Months ended December 31, 2018. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

Before turning the call over to management, I would like to remind everyone that today's call may contain forward-looking statements related to TriState Capital that may generally be identified as describing the company's future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. made Securities the XXXX. Litigation are of Harbor statements Private the Reform forward-looking pursuant Safe to provisions These Act of

further the factors future the on Forms and information affect XX-Q. filed For Capital's and TriState quarterly that reports results, most company's could see XX-K recent annual please about

mind any statements of which were made. made date should the TriState Capital You on that keep by in as forward-looking speak only they

or Officer. management measures Getz, GAAP uncertainties be time, can is today duty and time up on Getz. for they its are cannot earnings company. I predict in the come made. TriState Chief over At Financial President in events not at the to, intend no to and call, to risks New to, Capital's Chairman, would the revise is to TriState these measures date conference by and the discussed will available this To update they from after on Officer question-and-answer how this Mr. turn does has TriState were affect Capital extent and may the reconciliations session. Representing or Executive financial be tristatecapitalbank.com. comparable joined time Capital statements which forward-looking and He website David Jim Demas, like release, which found Chief non-GAAP

James Getz

per and very loan loan gives management our in In The momentum by Good the quarter on XXXX, business to we deposit morning now earnings and us continues XXXX the client last record continue performance and Capital's our all-time We XX% Capital success has measures, our in as trajectory reached our share, the cycles. growth sustain are in in terms for fourth one of fourth achieved generated many strong Capital's strategy with superior company confident positive us double-digit out a was, since quarters assets. the treasury we of our XXXX XX quarter. XX thank to focused and company. and Strategy the a company and and public investment growth inflows important generated growth TriState have for executing beyond. delivered from us. as as TriState of of across performance XX% ever, separates fund XXXX. Capital public environments and quarter for Talent, ever year to and up believe and net diverse produce rounded this quarter joining fourth business our allowed EPS TriState taking as ability earnings operating of you earnings originations for different peers reliably growth highs; Year-over-year, fourth culture, strategy management best as long-term results double-digit revenues TriState client of our the in

clearly risk profile compare during backdrop extraordinary annualized of three the attractive bank volatility XX% demand, throughout the good display XXXX, year-ago on to Capital's TriState of equity XXXX Capital the Against the more compared While XXX the of booking loan increased in approximately $XXX of months million of last XXXX, the in and highlighted and of than up profit quarter annualized record revenue bank bank contributed investment than was loans XXXX; loans period. the up another indicator originations XX% our of pre-tax of outstanding during the fourth common to quarterly record up and commercial the Each nearly and XX% of available XXXX. shareholders up total three during growth XX%. net XX%, Capital's pre-provision some net results achieved XX%, grew was quarter revenue XXXX. fourth pre-tax XX%, and banking last fourth results during more expansion of quarter the new the period milestones XXXX. three of fourth businesses income Private management nearly in months we of banking, expect TriState private versus in market franchises fueled major profitable the private year. to This our quarter by Private applications, TriState

market applications a TriState have by year deliver full to performance The quarter rate banking range XXXX. fourth through to equity of the these how XX% more of a than and growth private XXXX, at year banking is Private grown latest of operating volatility. growth XX%, through designed annual of compared periods grew For compound including is demonstration just exceptional environments. five Capital's loans business

which distribution high business to continue and firms for market provide In also of lending foreseeable have TriState other Capital's to our worth and exclusively can dominate growing future. for independent it the we individuals, we through TriState we banking expect believe advisory intermediaries. XXX remain formidable our net network our no Capital's private this category offering We view, competition fastest for investment

daily our banking non-purpose by collateral banking you and private proprietary monitored are of private know, marketable by many team. Capital's TriState this As is margin securities and technology loans backed

Given have cure to who their trust quarter was fourth orderly the we in the in for activity fashion. that work clients, and required their advisors interact rigorous fact we the principle an and financial place expertise, processes preserve officers, with fulfilled the in limited

cure X% to our Average During accounts. the or X.X required on maintenance time XXX than private period, we cures was loans days. of fewer bank

data level. maintenance and than The private outstanding, beyond ratio mind. approximately portfolio Capital's across in XX%, the a collateral we keep it's loan-to-value utilization size the the portfolio your was loan the to the approximately $XXX,XXX, across XX%, few was average given cure from maintained rate end was the loans banking median points For important TriState less cushion

our Turning we XXXX, grew and quarterly XX% industry estate within remain for during commercial Capital been and has real had fourth book. commercial source proven $XXX and last in XXXX, have team about fund the states Heading four during real and nearly maintained quality maintain our estate growth strong ability estate loans. good to to the fourth XXXX. into commercial in in growth commercial Also outstanding C&I credit pipelines quarter, fourth remained we served projects for and it important this commercial remains quarter loans. our strong total offices year. us and has to diversification originations on remains an loans focus the and business. a regional drove superior - approximately really sponsors for years, we In both demand very for quarter million commercial expect annualized $XXX XX% five approximately organic real and throughout in and TriState by record for the industrial loan Total business million middle Bank Overall, recent of another XX% while anticipate loans The we of the all banking, an in the market year commercial broad banking XXXX. of by

In adverse end XXXX. the rated end and declined credits fact, XXXX from levels of the non-performers and of XXth at September

the markets loans, as including in well measured continue loans, the private specific entire as real a driven C&I more reserves Still, commercial than estate banking select profile Bank's commercial XXX% of we performance portfolio. book. processes. have several our allowance build the This for to we year-end the risk for The recoveries was to and of and products industry. factors, reserve highest had the levels rigorous reserves we underwriting release seen in offered to our reflects credit choose by While and industrial non-performing serve Bank's among

lowered across and the with unique the trust our custodian We dedicated and $X significant efficiency built now major banks sheet the investments largely by experienced, XX% asset model growth XXXX. continues advantage. we evaluating in to balance is for during operating to companies are XX% profile from what branchless dedicated leverage X.XX% company loans managers employees to entire believe provides allowed non-interest commercial highlighted us lowered recruited in cycles. economic and a maintaining changing made neutral is collateral. to Capital's bank's while to in sensitive The the also assets in expense we recruited rate the credit from book balance securities-based XXXX. deep team average also in experience time a flexibility invest risk unique interest and competitive which and be Portfolio X.XX% year, full talent In private business sheet A us markets. has banking resilience largely super grow ratio manage regional and risk by TriState continually to and to group same are We billion banks. LIBOR to highly all from separate

a securities end of rate years liquidity. fund the in our In to by about growth, floating portfolio of nimble addition, secured using with we either duration on-balance highly significantly X.X effective deposit was is or of increased three loan The maturity. XXXX. XX% at about inside of debt Indicated book grew activity our the portfolio to sheet XXXX securities the and debt XXX%

surpassed meet to pricing and our as reflects here the believe during in worth loan company's and treasury year's reflects by growth market of grew by at was on the X.XX%. serving Capital non-profits, zero their also focus pricing evaluate yield quarter organically you $X and our not quarter offering, strategic loans in for which financial This We on businesses organic deposits Last fourth robust on why how XX% net banking loans, during it's at have at growth. fourth profile. XXXX. is but Capital's which loss the history only deposit the Pricing risk growth deposit useful rigorous quality target annualized companies records the commercial our side along and exceptional our sophisticated Capital's TriState our billion commercial metrics to is terms credit services advisors, X.XX% attractive loan underwriting we're was the management cost durable private clients nearly we're outpaced and TriState TriState we base deposits costs. We The top was average paying The look business including track long-standing with clients quality, do these to asset fourth national and in franchise superior very standard relationships. loan ability XX% nearly markets. reflects and with ability our quality Deposits high of the fueling expansion The within borrowers quality low through quarter the criteria. middle milestone. with individuals of deposits and average regional liability firms. reputations, evident and sterling

net it interest clients to income a fortify of to TriState non-branch compression and market our Our with the margin, as the scalable quality lead net relationships opportunity fourth interest can in quarter. expansion business maximizing multifaceted deposit business Therefore, position high leading focus remains high banking Capital's using grow model on assets, quality to private investment while did in for earning durable dollars. in our relationships, organic

fourth net for XX% the numbers the Here, for interest speak by year-over-year XXXX. themselves income XX% growing and quarter with in

we've demand at the to credible fourth for commitment distribution Turning of strategies back replicate helpful base its five-year It's Investment of retail and Chartwell's difficult let's sales for assets period, is national look remember positive at and management was offering represents to $XXX products. been Investment to the fourth for income returns the investment of management. period duration. with coupled in acquired of ahead billion positive fourth were benchmarks that were short quarter, all also Retail balanced deliver management of inflows we and institutional complementing volatility, XXXX. inflows is year to their one passive now the of debt market ahead the the of distribution million net $X building, ahead client the quarter's and last Through day, client quarter heritage. money top for the Chartwell's XX% XX% to $XX year-end generated under for that At of institutional most Chartwell's XX% end and our Most assets that the under were Chartwell's company's risk end highly the by increasingly Chartwell drive XX% in performance These million importantly, profile of XX% benchmarks, products. on Chartwell period. Partners. three-year of retail continues the Chartwell's the are respective with were and against results April. active products assets fixed

among performance is turn, net Chartwell's mid-cap first inflows generated value positive peers. its all AUM in three percentile XX% example, in fund In the For for the XXXX. strategy mid-cap growth value year ranked and

to we XXXX. the ahead, contributing the our meaningfully performance of by in expect compelling Chartwell's asset manager professionals Looking investment growth to continue

increase a As revenue we in not in did our told call, investor Chartwell we XXXX. year full double-digit you anticipate for October

managers annual did were certainly to we fees last While in revenue grow year, immune facing Chartwell asset not the slightly XXXX. headwinds

positive consistent On TriState the the Capital's is and managers. we has as and evaluate environment more realistic hand, inflow by captured pricing motivated made sellers distribution other potential also been Chartwell's investments net in among expectations Their acquisitions, asset attention trends.

ability market through this As what sustain we goals XX%; select at product are efficiency the distinguish hope and limiting and Year continue credit quality our growth; visibility low-XXs pre-tax our believe combination a we bank achievable XXXX while acquired in provide our continue operating consistent my an deliver the niches. year-over-year; of for TriState organic business attractive months; at we're more income over the a to about Capital, $XX XX% grow New mind, revenue diversity assets by operating during to confident in comments the a We're against in in the in offering the drive even to of organic I a from rate; more, trends management bank our surpass to of revenues confident begin growth With to insights and the and are very execution surpass of demand maintain metrics strategy. risk grow that $X into over of but at deposits after we increase XX% assets introducing Chartwell XXXX: $XXX annual XXXX; company's leverage grow double-digit from having and ambitious for a XX end pace of loans double-digit profile. doubled billion billion annual under last single-digit better growth pace or management XX% treasury to Chartwell maintain million organically double-digit growth ratio peers. expense XX%; us and

been and manage join to to the results I'd in in Chief TriState open Financial for like the prospects central the Operator, company's that and mitigate core Capital's the over confidence years to Demas ask ability XXXX me several have has past growth exceptional now Q&A. lines. we and Our risk Please beyond. to Officer, our David to

Operator

you, Thank Getz. Mr.

begin be KBW. question-and-answer first Instructions] question session. Please And of will now will ahead. Michael the [Operator Perito your from We go

James Getz

Michael. morning, Good

Michael Perito

morning. good David, Jim, Hi,

David Demas

Good morning.

Michael Perito

guess start envision beyond XX% past, EPS you taking or goal in at Jim. the I targets target? XX% just this going of you income year more commentary, and to wanted with kind is looked the growth function the comparatively on do of I a mean you you the volatility of on the last your to questions. the get of Thanks guys to kind shift to for just I to outlook of XX% maybe kind just XX%, growth have pretax that once EPS that focus, is of tax that behind that scenes return XXXX know something the really the more you there kind in

James Getz

number pretax the core core that at look as We company, the business.

organization think every We an with earnings helpful financial to still you provide important approach, are We how insight share. I is a we really earnings is focused us. take into And holistic per be some creation. view to might on metric that it

it's environment, occurred. realize a others, we but based they great on differently as Some the extent function than environment all that to the

is denominator common our we centric. Now and first that foremost are customer

we have the of and banking channels. pricing clients that commercial reflects targeted and our private the banking quality in loan portfolio the Our both

class end hasn't, are here. this just This target effort product our credit happened it world design to is by just customers. of metrics So the

growth Now on let's ourselves the must annual look over the five that I growth metrics evaluate significant. at past XX%, based rate highly and that is We that's here. growth years, note the EPS compound

growth story Keep never company. income tell has This major get premise let but story. non-interest driving been, never there. been and margin our how you me Now in interest net a of mind TSC we is a this income

we growth. is is the of interest function fourth a of delivered loan And very Now a quarter up in our loan merely that merely, good were rate deposits experienced indicated driving clearly the third fourth we as if we strong in everyone we and periodically net in compression quarter of we of did example, the our margin quarter demand anticipation recall, that to you it. a

grew Our this The organic. loan X.X% past is all portfolio growth quarter.

growth are numbers. deposits the Our that fairly believe during grew respectable X.X% that all these agree would I quarter. we

Let's at operating suggest ratio. is all I Now how the efficiency take do bank of this leverage. efficiency look would And that a we that bank just the offset compression? a first ratio

world, holding look perpetual holding look preferred on pays at company, But and and than one holds company Investment our a take as asset more an the ratio. is take that you Partners the Chartwell the importantly, asset, such no If even a efficiency management debt. our there thing our sub more interest at

XXXX year, of So let's for talk about over ratio a point bank. improvement does us XXX and to That over the operating a the leverage fourth for and basis quarter what the at basis it XX.XX% point XXXX. improvement the efficiency dropped XXX

that for did increased expense In XX.X%. out XXXX, it I non-interest XX.X% So increases XXXX. point

was assets average XX to year. down prior points basis expense the X.XX%, non-interest So from some

to to but As continue continual we we we will related a indicated percentage improvement. expense in future, and of you, further are growth the ratio that invest expense the that non-interest supports seeing we've for reduction note efficiency

Now and something XX.X% far experienced at this so we but me dissect of in EPS the did, that I I that XXXX. think all growth you pretty of the interesting for let least

First of all business our drove general and most that importantly, of XX.X%. XX.X%

drove Thus, strategy a profitability; our bump it number. cutting everything, through and XX% company provided tax the Trump bad X.X%. Our of the provided not X.X% over stand-alone general call

that an up the in alternative and was And and net up income tax for our some and our Our some leverage - year to distribution underwriting some up interest income income off XX%. is raising was Revenue set capabilities interest fully vehicle up capital was utilize to I XXXX. strategy XX% Non-interest net as point X%. network. pre-tax income out up XX%

revenue. non-interest mind, and revenue believe will of a this grow to amount our is of XX% continue keep we our So, that in percentage income as

from raise balance we've made and intensive. XXXX, of has gone billion capital three billion not to yet made $X company since $X There's of sheet been that are banking common private acquisitions Xth this asset managers. the and equity management May has Asset no

May Our future. XX that Private XX% past We attention will costs to was risk our us risk $X.X that risk. Mike. platform million a it's very XX we the interest this provided provided opted company clearly for of We Today, has took the XX% market take believe grow public, of years. executed contained, a non-interest to of growth only of what loan bank we've built it's portfolio, consider quarters reduced about when the strong the stock. merely been rate, are EPS our we been of double had XXXX, had banking and pretty this statement $XX by have XXXX. continue from any to of to build Today and we've public the certainly that XXXX. year-over-year the we the credit we inception, on past over the I a goal principal effectively XX% growth. in question, it's over not income strongly robust consistently rate now we've design, to since can your In company into answered meaningful type I XX% income. profile several we've - if balance that Thus, digit a And business. meaningfully realizing sheet strong very million. business, pay would believe hope, EPS at We have I with with

Michael Perito

in then queue. sense, for me all very Yes I'll - Jim. that excuse helpful. And yes, then that and one the just, back color, from other one me, jump Thanks makes

can you if kind but more where next have fully market of market Chartwell's are For What we of expectations unit, for markets just - out of today. you business we for just of growth the know variable if be that that broadly are it kind kind kind levels they revenue that take year? aspect assume appreciating of and to that challenging, similar assume XXXX, levels we outlook team do

James Getz

distribution. And as to strong are good few ago, very beginning me a spoke I have out we're We tell let when why, you and you I expectations. perfect numbers pointed to performance their our moments extraordinarily

$X.X the assets at so can the of the point all pipeline redo is assets, asset that had year. And this the in due billion type market ended side our the So, this of our the performance of But many the some are of you is pretty the the at just and growth performance meaningfully. on up we've point; we disciplines. of to out, there, pretty, particularly saw across to where where public you institutional expect now end pipeline strong because information, board

them I regard. of in illustrated just one that So

us. align feel that'll margins we very will with believe that be interests some put secondly, to the the And clearly, clearly helpful improve we employee's place, that there. we the of in company better So, and have which that measures

growing, a Year. and for New this that truly standpoint. handily we've pretty alluded focused been confident year, been transaction us markets and the then, we're have us feel business very closing to a in half, year pricing And helpful out past we're year for pointing So as committed the I and to the we to, and really on from a

Michael Perito

Helpful Thank Jim. questions, you appreciate it. for taking my

James Getz

Thank you.

Operator

question Boenning Matthew ahead. & Please next Schultheis be The Scattergood of go will from

James Getz

Good morning Matt.

Matthew Schultheis

may Good or your press credits have in there quarter Where it. of any first morning. I also and release, where expenses? your the the in overlooked reflected I'm in quarter where fourth you the that took they - excuse this non-interest tax sorry or the if they me, just prepared in missed remarks

David Demas

were reflected rate all the in tax No. tax this they No, is the effective in line. David. Matt, provision

Matthew Schultheis

that Okay. things because know think year I manageable. yourself it's in strategically a Thank more tend window more or budget you And about sort of three you. to it's -

that, - TriState going term, so an asset that if very do it And to as you'd in if Or banking be this is some long to, has XX offers look Or has company? to - has and bank that some years, stretch ask out asset you do I'm bank a this management thinking an view evenly just willing products? the an view manager in we balanced out TriState you a arm? as you

James Getz

this we just building It's not outlook. me in gave have has you have. company is a still strong with, we're well than a credit have should place. and foundation do three Okay, two that and year you it we that And a more to a year outlook

I'm business. were years 'XX coming and going Partners loans acquired management were do marketable believe it, this and it's it us. ourselves of The just 'XX, our Bank less bit in them. a and a Chartwell secured view making in sizable alluding I the the our we to 'XX up company to that going What that contribution they what in as the was that we've we 'XX TriState back to the And if the commercial diversified have to a fact, pursue to - marvelous I'm exceptional situation, Investment you view to and look a only people non-interest has of work commitments a for Capital how reduce put loans company marketplace - both consolidated you're stream and in 'XX see view when we've of of and investment and parent take to are because to to company, find 'XX as working profile you'll just Chartwell is income. you're sorry to the to individuals revenue us place a Here's we've fact in attempted see by that that pick and and revenue to put you I bank that fact attempted year. Chartwell as is company resources to important to three company. is risk made and we service securities most We clients the by the took the we've of company as on banking the at is the streams the of financial the type that

like what in have were to so is others rapidly commercial 'XX quite an see like level wasn't growing banking it, to in was and the we'd 'XX, as when moving like you not And our this offset.

it's a with compared risk is a to financial capital as financial large intensive. profile intensive, not company companies, and service relatively other not capital low this So service

Matthew Schultheis

Okay. Thank you much. very

Operator

next the D.A. Please will Russell Gunther go be And Davidson. from ahead. of question

Russell Gunther

morning Good guys.

James Getz

Russell. morning, Good

David Demas

morning. Good

Russell Gunther

originations quarter great private in a see volatility. interesting Yes, that record to such it was had banking equity

unique and color additional any this what into could then, to So, you on kind growth catalysts quarter, drove any that provide continue of XXXX? the

James Getz

that have we financial Russell, a mind now quarters because doing private quarters copy intermediaries First because that and And look that historically. the banking, fourth quarter larger at We we've have activity you the point you in also be list, successful market us. the we I'm if that historically out in could and - business picked should handily I you the all is and provided best share. are targeted with, have sorry is with if that first it of to fourth have advisors. XXX all, second we the go What our keep back and felt up the we our so of we recognize names, would more new we organizations -

XX,XXX over have officers. We trust advisors we're doing and with business

also platform providing data about. the it's And coming next you in how few We to began to and We're has anticipate with easier information the some of about distribution. moving people that's successfully. provide do making you us. it the we loan digital broadening with it introducing for pretty the of - to lot along a with beginning do So business quarters and

We effective out. that's an getting sales very pursuing in internal have organization the advisors information and

were effort overall, extent, securities. it's client by within XXX say, added client would the the an some and less sell I I targeted an that been very to a or the three So, cured the the mentioned cured be and had working regard. to account days in effective additional loans that I marketing think to that And to than either advisor with client us - opting being securities

work how that very with, we of So, see the opportunity worked advisors with everything we effectively that them for be just type to us situation nicely, folks and client much gave stressful centric. a worked in the worked and we an can

have naturally tied so the us. in the indications to consequentially as We to So was for that the to but that why of many a opportunity for market even really we we equity we us. were better we the market folks anticipated. quarter be I going gave honest, And it be turned as was quarter, a were didn't they felt quite know an the third strong And would better had. that anticipate knew it good quarter, out in that's quarter than we that this

Russell Gunther

Thanks for the with that what you additional was percentage be loans securities securities versus regard Can question share Jim. second pledged here needed on And then, briefly cured. touched sold? you my to that to

James Getz

we'd that I don't secure, small a think that that's that it but assume something was to number. want

Operator

have Gunther, Mr. any do sir? questions, additional you

Russell Gunther

that's much. No, Thanks it so me. for

Operator

you. Thank

James Getz

Russell. Thanks

Operator

Matt The Olney next from of Please Instructions] be question [Operator will Stephens. ahead. go

Adam Freyaldenhoven

Freyaldenhoven Matt. on this Good for Adam morning guys, is

James Getz

you? are how Adam, Hi

David Demas

Hi.

Adam Freyaldenhoven

Good. Good.

was wondering, are deposit to growing does a this And how are range? more So, XX% the headwind if about additional present NII in you there pricing, hikes? I thinking rate no

James Getz

that that And lot that No, went headwind it grow the at driving of loans talking a talked context will mind focused volume want on We'd treasury are the we as we've we're it and and that in that NII; we the we don't the the profitably, a in have all clearly we is Keep per XX% exercise made the commitment that what's to be shareholders really totally building why of complement that's particular we and earnings there share okay volume, have don't meaningful our the and things the but reflected that's that look XX% and activity think to a impact the gave, to along that earnings focused going a modification we look profitably the obviously and everyone. in perspective, management because I I the really that, better, help on our range. the here but but a has that we're organization we I a through overview dismiss it line, down of net providing like the that for interest see it's really pricing growing NII on our of full pricings arena. business of we margin. been breaking to through about and with remember numbers. to but in from about those metrics, anyone at are

Adam Freyaldenhoven

as And we think then, get a you normalizing XXXX cost later very release Thank Do the XXXX, you in helpful. that's cycle? from in credit net reserves? in you, had

David Demas

expect loans probably from I the the much Yeah, that get five credit total past would over back think to of that if three allowance to And normalize. here, of you'd to to and would the look years, costs better everyone level. trend the history agree those sort we can't

Adam Freyaldenhoven

Okay, helpful and it very thank you, again me. for that's that's

Operator

from next Perito from will Michael The be question - KBW. ahead. Please a go follow-up of

Michael Perito

of follow Yeah, where you the the portfolios on are, just of reserves it and just Banking I quarter, up. as David, ask three the good the the the morning credit C&I, remind buckets? on want Can Thanks guys. side. us, stands Private CRE end as the for to

David Demas

you. you, Michael. and to take me It we back will on Let Why for get the get I'll to next question that a second. don't move

Michael Perito

that Yeah, David any mean taking if, are us of us that mean where are kind of are on for ideal of okay. remind what goals Jim, targeting? a certain you maybe mix the there growth, the where relative up, a kind any can portfolio? I private while you overtime guys then broader I remind stroke - And that is comfortable you looks targets can the banking just have mixes point loan or to? you like, if there Just, I guess you

James Getz

pretty that you've it, arena. much commercial Obviously, we the are banking of diversified And years, of amount real I nature portfolio, way it, commercial banking growing that the it a C&I a and at commercial business business C&I to our portfolio. look time why next don't portfolio had over building. couple and haven't aspect dynamic in that. of portfolio pace in the XX% remaining estate clients, again a could is XX% portfolio more about And the growing portfolio, of we It's and did I But reports the believe see of it's the quality critical estate aware that a probably a see the they've we've that the of some other David is been XX% pricing because don't as portfolio. because design range. really of from to over marketplace, of I being real lot that that you repeating quite target the than being than and The at of you're private by the reflects of portfolio. There's clients where listening the a portfolio. real our more the slower portfolio experienced activity time the all C&I is that the I having audience you're and why some with in now you're a –? the looking here okay, for the issues we seen commercial that essentially. your the payoffs with pushing estate - lot that's kept over in or

David Demas

Yeah.

time to up. thanks So, look this for Mike, the

You'll which around XXth. will be K, February somewhere see this the in filed

and about $X.X for were in reserves million the a Commercial CRE; Banking $XX.X total Private Industrial; $X.X total $X.X of period, of Our million at allowance. million million for the for end

Michael Perito

And those maintained good reserve the are assumptions forward? levels, feel fairly to a be of do percentage you that as going guys like portfolios

James Getz

of of let tell me we way. business. Yeah, we continual why There do you book feel that that oversight and is

For them, reviewed only of are million example, management the and one have one, in $XX classified those single of than every at of understanding this each of adverse every very And less it's every team single rated seven are of rated by loans closely credits a there looked every single single million; here, that credits credit good $X.X we the company month. regard. and executive are

continually discipline We a reviewed are - six loans; have basis in rated and all committee. quarter process credit six by that periodic a are or that a every the on our higher place -

as business, a see you OK. credit banking as in analyst, security management have We a place aware six make We've can the your a a created management the here you're you that they team, where TriState, a have in industry, industry not career career and refined analyst find income. portfolio which a figure asset do path they at a for can nice can in in

looking it place have we're and comfortable credits this point. really we the all pretty people numbers with and at we in feel quality top at with comfortable we the have here So

David Demas

recoveries that, think probably by XXXX. three that's up sense follow-up ask to the back of to the our the I a we'll five Just year. total of on for end of where of we look past I'd had you years and on allowance to a loans end fair to history over number

Operator

And of the Cardenas from James. go next ahead. be question Daniel will Raymond Please

James Getz

Dan. morning, Good

Daniel Cardenas

Good everybody. guys. morning, Good morning,

my a quick other Just answered. of as questions have most couple questions, been

utilization 'XX? far compare terms XXXX? that number in In the you change of that are saw line side, number And previous so how you to significant seeing on in the does any private banking quarters

James Getz

line in with previous It's quarters.

historically change really range. been that all, much at seeing it in in So not it's we're

Daniel Cardenas

is Okay, a bought terms great. you where stock just of some under and - XQ? back think out during the that's should then open and we utilization, you program And How capital there in trading about the during looks there still like there still back is quarter. the stock's that, bought

James Getz

Yeah.

you stock undervalued. think you'll what a do it obviously - to back of - bought I we is by buying amount I the stock want is the of myself. feel a that recently at well, that recent you if Form one look And take the most see Xs, sizable

individuals same of senior it here and management thing. at personally done the type the exactly several of company believe and our I So the have

the each million them. that remaining - So, to utilize of of probably time $X Board go would allocations go suggest allocation. only fully that amount with about we to our I We've that we we'll

think little still bit meeting $X but the more that's than that any haven't believe Board we we'll put available. for a We last at more, asked it's - I million

been readily looking work shares average the the initiated stock. program best $XX. put since think about we XX we've and at I bought And I million I think of the has you'll to that, our in cost see around think way that

Daniel Cardenas

Thank perfect. guys. Alright, you

Operator

will Please follow be D.A. from question up next go the Russell ahead. a of And Gunther Davidson.

Russell Gunther

guys. follow-up the for Thanks

on a your or leverage appreciate XXXX? operating Just forward. expectation your consolidated share, the back circling on Did could on expense you, going earlier, growth basis, the positive for you for thoughts expense commentary

James Getz

it's single digit. did; I

Russell Gunther

Thanks, Jim.

Operator

and conclude back ladies closing to I Jim this conference to gentlemen, our question-and-answer And comments. would like his the will Getz session. hand for

James Getz

Thank and you Have we TriState look your your a you forward great to interest talking much in and April. in to day. Capital for very today participation

Operator

presentation. conference Thank for has Thank you, you gentlemen, and concluded. sir. Ladies the today's attending

You now lines. may your disconnect

TriState Capital (TSC) 31 Jan 192018 Q4 Earnings call transcript