Bank of Marin Bancorp (BMRC) 27 Jan 252024 Q4 Earnings call transcript

Company Profile

Participants

Krissy Meyer	executive
Timothy Myers	executive
Dave Bonaccorso	executive
Tani Girton	executive
Jeff Rulis	analyst
Andrew Terrell	analyst
Wood Lay	analyst
David Feaster	analyst
Matthew Clark	analyst

Call transcript

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Krissy Meyer

Good morning, and thank you for joining Bank of Marin Bancorp's Earnings Call for the fourth quarter ended December 31, 2024. I'm Krissy Meyer, Corporate Secretary for Bank of Marin Bancorp. [Operator Instructions]

Joining us on the call today are Tim Myers, President and CEO; and Dave Bonaccorso, Chief Financial Officer.

Our earnings news release and supplementary presentation, which were issued this morning can be found in the Investor Relations section on our website at bankofmarin.com, where this call is also being webcast. during replay. webcast available on well is webcast the captioning the as live as Closed

get I Please we release discussing reconciliation Before started, in for some will that table non-GAAP non-GAAP be both we GAAP financial measures. earnings measures. our refer and the want to news to note

from involve is may Additionally, XX, contain may XXXX, call information set risks uncertainties. know results based those that Actual and the materially such discussion on as in we differ and forward-looking on the statements. of January forth statements Friday,

For review a well in news uncertainties, discussion on these as risks our the and please as release filings. disclosure forward-looking SEC our statements earnings

remarks, Misako Dave available your be our our Chief answer Tim, Stewart, prepared will Credit Officer, to Following and questions.

the Myers. to turn call And over now like Tim I'd to

Timothy Myers

to Good earnings Thank morning, quarterly welcome and everyone, our Krissy. call. you,

results Our continued earnings increase to and largely due net by in This our to in financial level driven per reposition resulted we expenses. in interest reduce our our performance expansion improvement XXXX income of took an a and balance our sheet lower net and earlier expenses. operating both fourth actions margin in share, quarter operating in reflect an

quality broad with on continue have a within new made issues to On issues We our -- previously strong we portfolio. no asset loan matters basis, progress reported emerging.

an largely During the had fourth of pay amount to due declined on classified nonaccrual downs loans, loans both quarter, we immaterial our net loans these and and charge-offs.

a coverage. with cash for to now occupied property previously that Francisco in Francisco, meet vacant is continue San a large We improvements a conforming nonaccrual loan in see activity service leasing XXX% debt flows San

and and of lending members an and pricing Our criteria. improved banking underwriting maintaining production more opportunities consistent loan doing developing job is solid disciplined still while reinforced our new team attractive generating with

While our we due opportunities getting are of demand team, within that fairly remains markets. banking volume are to larger overall consistent efforts our the a of loan

commitments with balances. $XX million in quarter, originated we loan outstanding million the During $XX in

Our a mix both well-diversified commercial real of and were commercial originations estate loans.

the in same portfolio level construction twice last new interest to loans when we many Additionally, will as we loans. in December's had of the higher year. commercial income The made contribution from during from nearly benefit loan the bank and a period these position granularity of the first seeing are and outstanding balances full bookings more the as quarter quarter

Our declined total the fourth quarter. in deposits

outflows with firms As we our indicated call, the we during that the service this on fourth due nature the many typical expected deposit professional typical have year-end base was client our last given to fluctuations. quarter seasonal see of

outflows, the relationship deposits benefit remained base, Despite Fed have our service. deposits Due as model we to the with rate our adjusted proportion deposit material experienced any as outflows level not of loyal related at total rates XX% we banking we high-touch continue noninterest-bearing to to our our high response a customer at from reductions. in

of improved total strong balance during X.XX%. and ratio quarter of ratio a and risk-based our increased management, ratios XX.X% very capital capital our Given remained and performance fourth sheet with financial TCE the a prudent

call I'd our him welcome turn and that, discuss With to CFO, like financial detail. in the over to Bonaccorso, more Dave results new our to

Dave Bonaccorso

repositioning per benefit generated the million quarter income sheet from or actions are in morning, quarter as reduction than fourth of $X prior We Good in earlier year. and Tim. we net the the $X.XX we which to took expense balance Thanks, everyone. for both the higher share, continue

by margin million, interest deposits, decrease the Our expansion point short-term basis was rates. yield largely prior increase quarter income declines quarter in in a prior unchanged in to while net a driven to interest our interest $XX.X increased the our X% The net interest XX point from our margin. average of net despite attributable from assets in cost our on was basis XX interest-earning

Our the as and in as to quarter, similar quarters we average increased from new to repricing improvements due expect yield higher basis loans yields originations. see fourth book existing X coming well loan the loan by during benefits points on within our

decreased quarter, mostly million prior $X.X incentive due and in accrued from true-ups compensation. resulting decline noninterest expense from to expense Our the to by salaries a benefits

management account under increase income. assets. slight increase for wealth Moving management wealth in a We assets in was revenue to third year-over-year On quarter noninterest during our large basis, reflects quarter, decline higher, revenue. had to to activities prior resolve from the a due fees an This management the XXXX. lower for a during trust distributed our was which primarily to related

were December $X.X Our total billion XX. at deposits

outflows we mentioned, we course resulted Tim the in quarter. prior back saw As in historically of up which the the of quarter, from in typically deposits decline deposits seasonal fourth see during end the year. These built some the the

without the cost in points deposits Our seeing rate-related average material our of quarter to rate cuts XX total fourth customers have basis passed declined any deposit we outflows. through as

third interest-bearing basis quarter, of fourth deposits points, cost the assumptions our income by which net our XX-Q. disclosed declined with consistent quarter generally in is XX modeling During interest

The end from the any quarter total from to provision management stability our at Disciplined loan $X and were Due of record not portfolio, on the declined classified relationships of remains to Both allowance pay million losses of fourth quarter. quarter. the fourth down loans to we hallmark in $X.XX criticized. billion quarter. Bank prior X.XX% remains loans in a X at fourth of quarter for the balances losses downs did nonaccrual credit well. the Marin credit prior Loan at X and is due for the in the which loans, credit as upgrade unchanged

loan completion to this an sale out manage a bank. the offset and While payouts for reasons, had of the of our credits projects was including by production, variety elevated loan the efforts weaker assets, new construction level of businesses, strong we of of

a typically had payoffs see. of residential than also level of mortgages We higher we

dividend company. cash XX, dividend declared $X.XX paid share of the Given Directors January on a quarterly capital the continued XXth ratios, of of our by consecutive strength our per Board the

turn Tim, I'll to over you, final some it comments. that, back to share With

Timothy Myers

Thank in performance XXXX. we well generating very improved In believe closing, financial you, we positioned Dave. continue are to

balance sheet the with see and are capitalize strength we well economic demand. improvement of we positioned Given levels of conditions to liquidity, capital in and on high any our loan

to we level banking meets With have are a loan underwriting teams, the we growth lead and still will we higher of disciplined our in added that which our seeing talent a level to pricing of criteria, production loan XXXX. higher believe

seeing investing pipeline margin and our year, and the should and our growth Combined we degree our a should net markets, growth and start see meaningful leverage, across the in translate are profitability. we asset which with higher strong expense earnings of well management a diversified we and industries remains positive in level technology, while interest trends prudent classes. As revenue of and greater still operating talent to

franchise generate very efficiency believe our service. in add of share, process level quarters. enhance We past investments years. benefits we of the have strategic the investments of also in technology. expect the overall our positioned client are and terms value new further our went we of attractive during market client installing growth XXXX and made This and several well and through coming And profitable technology we relationships, In more of year, these over that increase much XXXX, this see to summary, prudent we the the of in to

week your the this on I decade, everyone before want to invite our But who open to today's retires to to we support. Chief few a like interest who your and for that, call later questions, Tani more served and call Financial a Officer With Girton words. for as thank I'd than share

Tani Girton

an opportunity this a Tim. and to you, pleasure goodbye Good extremely to working been all for I personally you, over rewarding. deal Thank morning, years. I a with take the and you thank to your It's and work my want interactions, of from making everyone. support our learned great you honor say

that won't Marin As for the preparing He CFO, XXXX, you can our as for and been the with together have new beat joined X.X working Dave. see, closely miss past in own, and a years, Bank Treasurer new and bank embark we of he executive will and are activities the Tim transition. to talented my the I'm excited has in I to energetic bank the travels rest on and taking assured heights. new built team

been health fruition XXXX, wish will beginning. this the on in cross all and is the again. projects of have and I happiness, to our working success, paths I hope and many So will you come just that we sincerely

Timothy Myers

you, Thank wish the We commitment and your dedication all you your bank new to Tani, in our of for and shareholders. best chapter. the all

We will call questions. to your the now open

Operator

come will Jeff from Rulis. [Operator first Instructions] question Our

Jeff Rulis

for retirement. for Maybe Tani, and all best the welcome. and the in thanks congratulations your all years, over And Dave, efforts

the asset lower little Just talked You've margin average opportunities. in on in more Any quarterly had the check like Continues average of front, about you you sound of deck of deposits and ramming trend. noticed to up magnitude? in the a liability-sensitive on to a and couple was I than the decent the but quarters, December repricing kind in an upward settle just the you 'XX. wanted think quarter-over-quarter where

Dave Bonaccorso

Sure, Jeff.

loans I investments of we think cash. into it's drivers where and NIM going you and starting working go, So give and can the to with deposits,

on be So think to disclosure flat you the the a bottom Page on the I might of loan side, referring X. balance on sheet, based

points to that basis -- to to we Part a rates improvement improvement balance our book, of You a point expect some sensitive loan year right, from That's for XX-month in more about can sheet. XX there you're in of on on be point. estimate natural we that repricing bit see in liability based basis X, a be static which down. due the is to

increasing fundings construction that would XX data our on one see commercial new payoffs. exemplified You for quarter-over-quarter. the points was on X yield loans, point And can our points most guess yield and quarter about recent the be basis basis loan by I than there higher other

of all loan that to side. speaks the on improve So

our we've success QX the the assumption -- side, in thus in shortened and the on far. the to generally just beta see one from the months of On far kept Page adjustments experienced bottom We've that's X cutting assumption you X from falling in you perspective, XX%. the deck, deposits rates the we -- disclosed line rate which key XX-Q, lag our and based so we've in was what with what X deposit of mentioned that of in beta our in ALM and that, a adjusted decline

you points, early numbers the not to So the made see on deposits that's rate in today we the one reflected effect basis by thing should rates more December response in is XX% cuts additional beta is cut on rate in bit cut, you net January. we know interest-bearing in about assumption. -- our ALM non-maturity deposit X which is the a The a than

like that did we and lag. X-month lag a -- a with more than X.X-week So rather

-- want speaks We of moving all time, a the ability do I'd to we more to amount be deposits the into reprice we a to investments, want securities again, the to the to to remix And drivers, along growth. for want have We QX. loan X.XX% smaller yield balance that about over portfolio So other on say, of -- downward. sheet.

get a do Fed a And know, hang XXX So -- remain of I'd of we in ago. million X better you a to bit any the as months we're say, than finished Fed. that curve cash, range. million securities the couple basis to there quite [ cash is and expecting in going low out if given point where go $XXX are we in to us at around probably payouts have for that that I go we $XXX wildcard, cash it And say The year the reinvest. the and may obviously, not yield as and give not the the the XX today thought I'd want that then can cash, ] the -- reinvested pickup but we as think is we goes where generally,

the So see those as drivers are them. I

Jeff Rulis

of forward-looking kind you. restructuring to you of lot relative sort that past Got commentary. think terminal of of margin about expansion of do margin the a couple budget, either moving guess mean, got but guess you as on we've thoughts where of short I quarters some of work. rate? on a the I pieces, I

the on upside of Just sense get trying for what residual to a margin.

Dave Bonaccorso

we yields wants -- chunk the are So really long to have And rates. environments. asset down a yes, in able the it to that's to -- But is opportunity bank the rate the be the our rate relative extent run, that to going and lower of We just over benefit. come continuing to environment. say, bank to yields much really reprice liability so to -- the I'd higher outperforms real deposit

is on path So we're I you I of number, can't going. give where we're but pretty think a indicative the

Jeff Rulis

or know Tim of in 'XX? guess, I or got the guess you've going anyone have got figure do and you I it. on that on mentioned The increase payoff numbers actual second activity Appreciate the growth. any if loan don't feeling So in if Okay. parts. is, outlook of X payoffs? the Any it side, quarter-over-quarter. that -- you greater pipeline growth I like question guess payoff on it, clarity decrease if I then pipeline in you've you forward? have any part

Timothy Myers

it talked was organization, ] RIF as we've paying what the pipeline. give is, But repositioning directly we this about pretty one you off. we new time it XX% if it's look last don't QX, that and about the year. would talent prior proud the pipeline know, Jeff, And or highlight And can you announced talent, QX, I'm total was higher the bringing the Sure. what guidance I whether -- originations, it's just [ on things double of within pipeline than say, our that at I of the about is is

look So we the the a time you throughout yet, better point producers year, a the depending look did if at job. at least down, you we in X/X staffing when at production on were side of on

impact so pipeline people December added in added impact affects The month, the people. we add having of someone the we far are X that's and have we've timing that in but an we thus subsequent QX production. to but that closings, expected loan And later in obviously added added on an and

So we're optimistic.

by transactional, type relationship the but for lending, pipeline loans, a optimistic origination map you, given build and hard translate. it's to that how statistically not of very out know, bill that seeing the you we're or I'm As will

mean, payoffs as TICs, of our last category mentioned, million. that hard We number side, payouts On look don't by big or get in was loans. a on. jump to the And residential if mortgages to you put really our or the quarter of I at $X it's in payoff tend was category you fingers lot but

So if far largest predict. That's component cash to portfolio, here, going just number a really by you still hard commercial the look at was the within notes my almost double deleveraging. to by

hard if reasons we that's lose door we the down. just We of that less -- get that's supposed next problems a for work one projects. But workout have rates, continue That the pressure to do the movement our control. amount will there's fairly maybe really to that. amounts exit want to and was I'm And not the has kind predict. longer-term had go you that a to And major saw and one we think deleveraging, very completion was that we cash that go the front very on really answer, part the final it to that release. can't other be a leave that credit really back it didn't just that, amount out hiring sales, continue outcome. in earnings of asset than it's for be then we of quarter to focused categories. And it with of makes predict But I of small to less those but substantial, The biggest happen. back to quarter we or just substantial out as continue any in another long-winded between but to construction contributors, very, something in door I can't the been. for the that. through of outrun We hopeful the relationship

-- there's that's to why. I hopefully, you So but a -- detail explain enough answer, hedged

Jeff Rulis

that starting pipeline last it, of number, at No, year? over I QX this wanted clarify XX% that, to appreciate And just that point I Tim. was QX

Timothy Myers

Yes.

Jeff Rulis

-- you was quarter, And Okay. that like the third me, or excuse similar... fourth as entered sequentially,

Timothy Myers

less loans. lot we closed because of harder -- a we or Yes, relevant because that's

pipeline So shrank key to deals that in quickly closing. up the started obviously back as as that QX, the The with we is build possible.

over QX So more a from that's management the relevant QX a standpoint. to why is little us

Operator

question next Our Andrew from comes Terrell.

Andrew Terrell

been and incentive all of touch. expenses. hope Tani, wish just some lower pleasure hoping could looks clean just the first the this I as just still the then ago, related a run mentioned was congratulations. you on the you're guess should or to like kind moving that guys to I in hiring, quarter we Dave, improvement about think not? a whether expense clean best if might move It quarter of know working XXXX. benefited I a but It's with just maybe quantify you, I have what and accruals. I to rate stay run And you minute on is. kind expense of thoughts been rate into

Dave Bonaccorso

Sure.

expenses is probably if model settlement at would expenses in do nonrepeatable was typically extrapolate the but QX personnel. we for So get or and this What in at maybe that yes, a that cleaner will of I ahead. that QX run this about annually. say $XXX,XXX of I legal year quarter, number end the That's something rate, QX delta -- the would the contributions $XXX,XXX. what do this the key on around think that a year, we mind was or occur And your personnel on is so. driver the I I'd is you're this -- to I you we're the first has to think, trying that true-ups quarter had QX on question, help Keep

of rate looking adjust would those things good I of for QX combination a So QX and together as forward. couple at look and some run

Andrew Terrell

Understood. Okay.

maybe So of maybe, figure a little there. that yes $XX million just north -- around right

just Francisco. the office I -- prepared remarks ask San heard loan Tim, could in around comments I the If your Okay. in

improved, had like and XXX% confirm quarter. still now. you nonaccrual could coverage debt this -- you us refresh on was Just it that that, Could mentioned that your And on ratio represented occupied forward And you wanted then service the the service to the it's was terms of debt how currently? path there? this credit is balance then, what's expectations for us Just look what and sheet? maybe timeline in remind coverage

Timothy Myers

Yes. I'll start big picture.

confusing think the might X properties. I be of you

is fully And now We have that's negotiations to a move occupied couple off. of fully was documentation, tenant the a that flow around ago by That quarters completely for had that the because all So now some just occupied. mentioned is was that million. one $X is adequate. we extension, moved nonaccrual left. Cash that

lower one on for to other lease we've significant about still new that rates. it lease been get seems talking are at The years activity, but large releases now, coming

in that XXXX. And matures so

I first think adequately, look up. rates on if don't referred areas, high-rise some like that's it in the in and of but all will to that lease we how spaces go have trajectory most we still of a improvement A mean the San X depend hit absorption 'XX. X leasing to, believe clients those their smaller positive we're where the have actually last was quarter some And since activity square since Class first and of 'XX -- was the our hardest story provisioned lot I overall, but in quarter market there at buildings. the footage-wise reports areas you is market South the these year

out still seeing positive not we the in XX% seeing customers. is woods. Vacancy that of and our we're are we So a the impact are city, overall, trend but

Andrew Terrell

Got it.

mix filed you one can morning. of color that? on few a just I had Okay. any kind just this questions I was could provide And on replacing the prior if a this more. ask Was shelf Or authorization? that just

Timothy Myers

it's a long all predating all whole of and view discussions a this. it. bank a put in We we've the place. it and capital all things number segment, options felt housekeeping. for been banks that just these behooved talked that been for counsel buffet and frankly, for, filing We've a out of failures to our with a That's securities. do our It's time. Obviously, remain about for uses shelf in Yes. of lot Obviously, it to us there in

or the is to mean near really it -- authorization, anywhere that. get doesn't it a to akin view it So we we're use authorization, share we going it but

in category squarely prepared be that it put I for So anything.

Operator

Our next comes from question Wood Lay.

Wood Lay

a -- any the the the interest quarter. flowed through start had yield? to Was of you that on nature paydown there onetime that in part on wanted in loan nonaccrual yields paydown loan the earlier the I as recognized and

Dave Bonaccorso

Just -- some one catch-up be... loan paid in the that would related to yes, that off,

Wood Lay

dollar Yes. points might you Any I amount? quarter, a last think to the had of headwind there. way quantify X basis have

figure of the kind to loan yields... out trying just So what quarter

Timothy Myers

to loan. got one from to want clarify just thing. loan I I a -- that The want So clarify smaller nonaccrual Wood, only is sorry, upgraded just

was think we've I it was down on the been paid company million. $X about. talking C&I amount large goods The consumer

So paid loan that off. not is

haven't we all accrual adjustments So there. the made

think a So bit you I it's mentioned. little than what noisier

Wood Lay

that all can Got on is sort quarter yields provide the then where of the some production the way And in paid it. loan more new Okay. color versus off that on you any books? were where coming

Dave Bonaccorso

construction, the [ and were the payoffs And XX so -- yield on X new were ]. XX [ for ] X originations commercial

a XX improvement basis point So there.

Wood Lay

then Got for bit a Any last, it. special loans an larger construction project. could sell? little on when in the increase of mention property And a expectations saw the quarter

Tani Girton

the timing Plan It remargining been currently with but on do the the ability on which hasn't so. a them our that and then listing also do to they is the yet, B of have discussion plan, listed

Timothy Myers

capacity a is market here. about. There's something at not but we completion, this great worry is where the deal Yes. is just This

Operator

comes Feaster. from question next David Our

David Feaster

Tani. do we like the retirement, from improving slowdown growth of we the to that's it's year. the increased the an function origination this of you I gains than Congrats. hopefully, excited me, of And and productivity more fair chapter. thinking new accelerating as payoffs, in demand. rather for hires next the it about and about the side. about the really a quarter. get forward Is sounds trajectory on lines, to maybe very the go I'm just characterization? some of kind extent course team market one pace a think just on exciting share really we your over the parts growth demand reading that improving see Congrats more staying Like of between of Maybe And and that

Timothy Myers

said your question just better David. than answered have you it, couldn't I

David Feaster

Okay.

with is point payoffs pool -- appetite I and at to we organic where potentially there growth inflect? additional exceed originations you're paydowns do Or an you -- growth kind that the seeing purchases? start So and we supplement seeing think of start mean of can

Timothy Myers

Well, do the that we've in in feel getting the that, it's of we're to used to of And small before. talked the by point payoffs, about predict. the CRA. and it's We've Well, prior timing hard we inflection that purchases purchases for where like nature originations to really help the question, can get a outpaced that's quarter mortgage this the but to great But way the predict. the hard we made around with on repositioning. reinvestment the AFS yield payoffs,

have to and auto look looking the side loans in on help not that that the drive wood CRA. did growth. We at to with loan looked acquisition quarter acquisitions at Bank. the We We're River to actively after of program the we capped will pare we'll purchases American buy continue down the

fair it's So say say our able. be -- origination, But would to continues where focus on we'll to opportunistic. I be to supplemented look organic

David Feaster

then new touching account hard I on seen do. attrition you deposit the drive maybe Okay. hoping was you're -- dynamics It's that you maybe it's -- the to first, some seasonal Could guess, could And job. from quantify great just quantify like help efforts I to you much your of deposit side. have guys seeing sounds then costs. opportunities a It you And proactive seeing? where just to growth? You done haven't are really reduce

good. marginal of is interest-bearing Your deposit interest-bearing cost extremely the -- cost --

where the you're dynamics seeing opportunity of for going So forward? deposit again, -- just curious seasonal growth kind

Timothy Myers

the almost very or that the small end firms January, it's fluctuations subsequent year. have focused But throughout the early at you seasonal the up of entirety down the reasons. year on There's in a flection $XX of other and of almost or Even $X professional a nature, lot customers that million. was quarter in the are tied seasonal the service So left ballot amount entirety for client measures very million, fluctuation seasonal saw new acquisition. funds that who of that we to month But whether of outflows. have the elections was

quarter, You are of in on to saw XX% bulk we thousand at can we had come customers the lower going the those an on. build coming dollar accounts bearing, the were but them by the overall new portfolio. about a that new to interest bank be those during Certainly, rate amount than is of

So this not we're business. or buying paying up

certainly, or core the are deposits. the banking origination On the plays getting service focuses professional these rooms commercial side, of on noninterest-bearing one

tell So whole outstandings originated of in over just for loans quarter the the we commitments almost necessarily don't C&I the while the to quarter, companies. or X/X by story new X/X were the

with takes it bring over. we that's business, and the a require to operating so And side. everything the that, requirement C&I while But on us a for

our names the stuff customers core quarter. there is and things of in granular, saw these you your So those is and have But or fluctuations, deposit there are account hope the kind we large grow you all that base, fourth client while to that what noninterest-bearing are base keep moving and then that in grows over time.

David Feaster

Okay. quick. Great. squeeze in one more just And if I could

kind up following of Just on capital discussion.

got a you've you've really got sheet. flexibility. of You've lot a got strong And -- balance

used you've guys of opportunities form out of historically, touch could but that on looking you deployment maybe are you, every -- the in hole capital your on you you just Obviously, there. most securities considering? touch a the it's and not maybe are what some -- of M&A.? basically at Could attractive you burning kind been whether buybacks, capital repositioning, pocket, to it's just You've

Timothy Myers

we I conversations those -- I could. the mean all all above. better Again, are than you question your It's having. we're are answered

we know, of a last year. you securities repositioned As lot

You need get to a point depending on the magnitude.

around about, with That's the swap, do. HTM unwinding talked which We as we've did the more there became AFS reposition. of an can NIM. position have reposition, -- something not help for we potential Obviously, to need more the available we are our discussions

We earnings over that, P&L you let there, from time depending how We one but sheet. then factors, or combination sit And make model have balance sure And the to M&A. the those there we sit potential not accrue the ability on -- back any of to for contingency. all there's about just things as time. deal depositors. regulators consider we all those have want things, position, could mentioned, the help with talk us comfortable that shareholders, any we keep to and in of the with something place are all But our sure make capital you

Operator

Our question from next comes Clark. Matthew

Matthew Clark

going was like keep I based talking our to Congrats, It year. conversation myself. Sorry, late on sounds busy just you're to last Tani.

first you spot I have additional end -- in deposit the do year. but for And costs. made? me, January changes the rate Dave, see willing on based averages, just in on here at spot We if Just you presentation, to rate the the the the the you've your up of one offer think,

Dave Bonaccorso

Sure.

So deposits Interest-bearing in our to interest-bearing And down, points by cost was basis X.XX%. X.XX%. we December this about deposits mentioned, X deposits was brought year. far I so as December of X

Matthew Clark

How for at not year-end average the I'm the year-end, looking rate for though? month. at the spot about

Dave Bonaccorso

I'd say cuts lot the so weren't a -- Well, in of month. there later the

be XX/XX rate So close at spot the the to very very, average. would

Matthew Clark

maybe some Okay. at to there, that of, maybe of to sense just outs faster Got M&A? probability I than likelihood it. Just a then tap HTM, give to and/or And clip tapping the probability grow of any for guess, or in is for can of out do more you shelf other? team updated organically on a X things the shelf which or higher reposition the the the lift those likelihood willingness shelf thoughts with us either a the

Timothy Myers

plans no. tapping for are you I for into the that can't because The no give short a immediate sense there answer is shelf.

have we the lifts. for things team capital like think I

of of there We discussed -- activities AFS that being out my for do nowhere case. larger the there's banks number, if the combination are of total again, but It's a $XXX of capital repositionings, we something happen or near million. the there have nature in things like it might just things the just -- require all is anticipation, filing buffet bigger of among a that the us, in any

timeline nor there plan know, So can't right present themselves, plan but mean, no to that, I you. there Matthew. immediate do as I tell is no is things have that, opportunities I a now for happen, but you

Matthew Clark

And updated thoughts just in on M&A general? Okay. then

Timothy Myers

all something talking the far and impediment on time. to opportunities to I talking it's job -- but talk There if to present continue to an or is doesn't imminent my it is along folks certainly to to obviously -- about. Valuations nothing be prepared be deals, all But to itself. were be continue to our enough -- job out explore

Matthew Clark

things M&A And of interested the can in side? on just the types us remind you you're

Timothy Myers

present bank think the opportunities. the in been the remain very years to an some no and acquirer. I stock where over and be the unique premium the and of know, valuation MOE seen independent, Well, past, an we've you that or as has deals could issue. That's Obviously, be couple currency prefer last we'll independent

the P&L feel sheet do feel our continue balance side. getting the to in relationship-based very on our shrinking, out and for side like an upside align, number margins. job We traction on on there's our hard and We is a we we're stars continuing of there But but comfortable to that's So continued the think outstanding predict. like potential the with have we're to universe so is all there, attractive opportunities deposit and origination organically. low-cost

organically. comfortable with future perfectly continue we're our So bright

Matthew Clark

Got that on it. tax of XX% XX% we a the just that range? back resets And to then kind rate, housekeeping to assume should

Dave Bonaccorso

That's correct.

Operator

[Operator have now closing to for hand We remarks. Tim I no back time. Instructions] questions this Myers further at will it

Timothy Myers

the questions, best everyone, our want her wish you, support, calling see, continue Dave, Once the Tani oversight again, bright endeavors will congratulate all for future and and of for can in financial again as very be is outstanding our future. you I to and to in for the thank future

Goodbye. So thank you very much, Tani.

Dave Bonaccorso

everyone. Bye,

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