Independent Bank (IBTX) 23 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Ankita Puri	executive
David Brooks	executive
Paul Langdale	executive
Daniel Brooks	executive
Brandon King	analyst
Michael Rose	analyst
Catherine Mealor	analyst
Stephen Scouten	analyst
Matt Olney	analyst

Call transcript

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Operator

Greetings, and welcome to the Independent Bank Group First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn the call over to Ankita Puri, Executive Vice President and Chief Legal Officer. Thank you.

You may begin.

Ankita Puri

Good morning, and welcome to the Independent Bank Group First Quarter 2024 Earnings Call. us. joining you appreciate We statements. The related accessed to presentation be include and you press our website release forward-looking may on today like remarks investor at that can made earnings ir.ifinancial.com. I remind would cause Those statements are expected to risks to actual that differ. and results and uncertainties subject could harbor intend We safe statements statements. forward-looking be to for such by covered provisions made are for Please X of Page to see release our harbor the safe or Page call X in of during statement. All statement. that comments slide subject the presentation today's text the note that the financial that update publicly the assume of considered measures rules. at if future Please we SEC's we give non-GAAP several to time guidance management's guidance. In to about be guidance this the statement results, and obligation statement is call, made, is we under a no discuss beliefs will of measures Reconciliations financial directly measures release. comparable included most GAAP the in our financial are to these Chairman our Officer, Brooks; Executive morning I'm Chief Officer, and this Langdale. Paul our Brooks; David and by joined Dan Chairman, Chief our Vice Financial the over will with turn of will the I that, call to it questions. And At remarks, David. open their to David end

David Brooks

Thank today. thanks Good everyone, joining the morning, you, for Ankita. call and

net million per share $X.XX or to totaled quarter diluted quarter. or income in per $XX.X $X.XX million the share First compared diluted linked adjusted $XX

level While funded the pace fee on liabilities early preferentially the over us loan during NII, first in a the we quarter performance this remain million the of pleased maintain in lowest as pipelines net the year. in abrupt were in Net and to inflection saw steady and reversal our and slow to commitments slower trends we growth said, in the our and during and $XXX NIM the growth borrowings the our payoffs rose healthy. That see expense quarter reduce remix the quarter. Encouragingly, the allowed deposit new quarter. the noninterest-bearing rate markets of quarter, delayed lines to was discipline continued

expanding on capitalize might well a forward, environment, And positioned in rate Going any asset to flat transpire. continue that rate remain we earning to yields. cuts expect we

our the earning indicators of points yields and absorb for to rates. continue observing upward continued quarter XX our no expanding borrowers' reprice with low while observe X our strength in by net to We loan during the higher with ability asset charge-offs to nonperforming assets assets X.XX%. annualized quality issues We've these first material quarter, and basis

the down the As the discuss Dan greater at ratio classified will linked trends in detail, of to capital credit just XXXX. loans from and and X.XX% remained quarter, X.XX% our end, quarter in at migration bank quarter stood in positive, of X.XX% first

Our Directors common tangible consistent ratios returns by basis total to to the of of payable Board key capital philosophy of with equity to expanding XX with our providing ratio a points X.XX%. Consistent our shareholders, first by holders on the XX.XX% consolidated stock quarterly basis $X.XX points XX. to declared ratio dividend capital quarter and expanding May in of grew common X our the share per our

pipeline in branch announce we for the with on importantly, recruited excited a been there March This our beachhead overview, a opportunistically has location in highly deposit market. And financials. built we've capitalize this the will strong full-service full-service call X. Entering the to market serve Paul and to we that allow focus market most to to I'll perhaps team key and to that turn loan very us our our Antonio, San opened of Lastly franchise. discuss first already I'm and plan, of Texas thought strategic that on talented over first a and

Paul Langdale

special diluted $X.XX share, share. million was or for $X.XX quarter $XX.X the or everyone. as million morning, was FDIC primarily quarter. Adjusted as property $XX.X a good related excludes first of a OREO disposed the impairment net income $XXX,XXX that the well Thanks, assessment impact quarter the Net to was David, branch in $X.X per supplemental of for income per diluted which million closed the and

mentioned, due March and as in and late in rate the early reversal delayed inflection to As greater-than-anticipated in David markets deposit experienced NII was abrupt NIM February. January well the noninterest-bearing experienced and February as attrition

in compressed $X.XX of NII points February an March While impacted average in we an by and should in inflection X of the stabilized loan Furthermore, increase billion, on NIM going balances balances from loan our both modeling first any by should to the be NIM stable, billion. Currently, increased in indicates X remain in point spot average the Average X.XX% for trends noninterest-bearing the our noninterest-bearing from by NII balances, March have NIM second see April basis month-to-date lower are the $X.XX therefore, quarter, basis. by average quarter bolstered and balance the if and growth expected quarter. the forward. was that these NII basis average

that rate in sensitivity of income benefit event constant. as maintain our statement but will stabilize to also deposit continue that cuts, We Fed interest-bearing our the significant rates holds liability should costs a the

liquidity borrowings million the further quarter we brokered as a we to our able to deposits liabilities FHLB at paid bolstered lowest well. quarter during level reduced Notably, quarter, our position by year. to down end, the were reduce and we over the and $XX During X in

will remain manage remain net and pipelines optimize branch core growth terminal cost to funding the our at deposits our us rate. further as and robust allow Our in deposit we

due well recognized loans linked expense a improvement the reserve, expense by a was compensation by During which salary further million awards. in quarter income in noninterest increase noninterest production in to the the in first driven the forecast. from the to quarter. Adjusted linked size due primarily release adjustments $XX.X and The the revenue factors an as million loan in was driven quarter. $XX.X additions benefits million $XX increase in stronger Moody's we annual Adjusted an quarter, of merit our partly $X.X was an a in was quarter, in anticipated CECL primarily from the million our in mortgage increase $XX.X that to portfolio, macroeconomic driven million in reduction classified first quarter, as and mortgage first the was banking for increases decline by

Going forward, quarter remain expense we the per of around $XX year. million the for to noninterest expect remainder

capital capital Tier point over basis our As risk-weighted quarter the basis consolidated improving ratios with ratio points and linked points equity capital ratio David to to X the improved capital the XX.XX%. improving mentioned, a X XX X improving to common X.XX%, Tier X.XX% total ratio basis X

are ratio Additionally, today. comments I our equity the have improved by tangible basis common These X.XX%. points all to X

Dan. I'll with turn So that, over the call to

Daniel Brooks

were levels billion the March of down XXXX, was in fundings the quarter. the $XX.X as quarter. pick rose seasonally Growth and Pipelines Loans recent during $XXX.X from XX, second quarter to million quarters. up to Paul. investment first compared net average will and Thanks, indicate for that loan above payoffs linked held production slow

loan quarter we mentioned, million totaling million in David was new some warehouse commitments of in rates higher during early to Mortgage compared for lower the recent as warehouse quarter. mortgage of and driven as gross had quarter production loans business first mortgage were As by curtailment borrower XXXX. the production for by million $XXX.X by the the during warehouse quarter fourth mortgage of competitors. $XXX.X the $XXX purchase Average exits well our supported the quarter

expect levels to back markets, we average climb have again While forward. be mortgage broader balances these alongside maintain to rate up the do to rates to able continue going of begun

X.XX% asset David in linked annualized mentioned, X% the the very were for quarter remain in Net compared annualized metrics As X.XX% quality and quarter the to strong. charge-offs quarter continue first XXXX. first of annualized to

as We assets. classified nonperforming March in the XXXX. decline assets over of These capital classified classified levels a addition, just XX to In remained of at XX, are total X.XX% lowest during quarter observed loans bank the in experienced X.XX% that assets bank we've low representing capital of loans with of further years.

years same the toward with an on for eye book and approach when underwriting with proactive XX our and managed emerge. have being focus the and a nimble conservatism risks past We

to the arise. emerging internal this the we both may have risks watchful with are of performance testing our related and for loan as portfolio. be comments always, These I But the the portfolio remain that stress to vigilant continue all in pleased morning. We

to it over that, I'll with turn So back David.

David Brooks

encouraged growing resilience across been and our remain we've to of Texas Colorado, customers. markets Dan. demand by and for note high-quality very the core strength Thanks, business pleased and We our from

focused remain management continued pursuit the on expense of of our and disciplined Looking strategically optimization will and stack ahead, our healthy performance growth. base, of we the funding through-cycle

pipelines and in encouraged investments metropolitan begin across in the expect indicating net yielding loan second C&I balances made areas. expect have slow with We production we that new we that quarter. Notably, strategic and deposit the accelerate growth we SBA by our should quarter, gradually coming lenders over to remain of in all to growth X loan production remain the pipelines

help deposits. San loans into Our production for entry additionally should both spur Antonio market and

time We'll to with growing running grateful high Operator? are taking We demographic our day. Thank to I today. who existing Colorado communities. goal us customers to now support fortunate tremendously markets our every are performance and remain macroeconomic win of strong to and the and our and questions. business tailwinds join relationships company in be new for purpose-driven our continue Texas the to teams you to a serving fundamentals. deepen to in line dedicated open tirelessly working and across dynamic The footprint

Operator

Securities. question King first Truist Today's Instructions] [Operator Brandon is from coming of

Brandon King

quarter, second give the let a throughout NII, what year? you with So in and Particularly me us could rate sense this appreciate expansion environment? to magnitude of the the NIM you're expecting of a stable

Paul Langdale

Sure.

not quarter March just points compression. on with morning. broker come really drove as we seen declines back I balances getting really month the think last you were of really call, into and that of take noninterest-bearing I'll to April. saw That, balances pickup NIM basis quarter's increase this We've deposit but what of first we Those back that was stabilized XX the about noninterest-bearing are spreads. XX in in the stable to actually, coupled

notch earning So some few that, to quarters should the assets reprice meaningful to upwards. continue given next we expect NIM expansion as we over

earning where deposit with of costs to close call. the where -- year at at to expected I back And So asset the should expect on pace. continue yields last accelerating we be expand the to to to would us end that get an stable

Brandon King

Okay.

deposit expectation peaked? so already the costs have And is that

Paul Langdale

brokered excess able some on carrying Yes. the funds the And color Brandon, sheet to run clarify, that to and weren't the of that, off of are some liquidity during we add just balance the quarter. we just on to

be balances expensive the we'll were in that average first the quarter. And quarter a more broker down paid them right during higher little and advances the funding end. quarter cash the FHLB than came at able to we deposits, carry that So second the

So on in the second that side the should deposit cost benefit meaningfully us quarter. more

Brandon King

Okay.

that of lastly, you a little loan are much then contribute And for Okay. like year, to concentration loan real year. trending it's this the to sounds growth just growth expecting commercial given slower levels? How estate

David Brooks

getting balances That's know, see balances, had question, in loan you Brandon. quarter strong slight you We saw loan did We in at are a the still during end a as numbers. production great decline average as this is and oil now that seeing quarter quarter, C&I, are, some was drilling lot the where energy, picking traction particularly they their we're right with up a of more balanced prices activities. companies with

be demand companies energy some increasing lines, over been And funded XX trend We've made to our focused or last I in the that. It's just into team as to on et not, SBA we in And really a SBA, our markets. C&I haven't anything expect if on percentage customers year. hires well. our nice a our of when there, to lending overlay line the our primarily say SBA so we team that's embarked adding to a that have capture beefing the business as I cetera, we we adding footprint And up on business so continue and careful bigger careful markets, debt their like to national actually SBA broadly, order team, want that months, to again, advancing say the our there. across seeing in

quarter, growth goes to efforts, and here we year maybe digits. quarter, in think along picks low loan think see digits the that the to those as the we'll mid-single first up second mid-single in So probably I positive Brandon, with

something the method. to coming X-ish maybe this So balance X much about we of for what's of more the feel in -- X good a for second on half and year. And balanced quarter the

loan in deposits our accelerate the think wholesale the that We've but on we we relationships. along overall that quarter, and goes along. trends year and in really deposits the new expect showed new out, to declining, core the those were -- also had broker We went growth got continue as and deposit with first deposits number the expect good I deposit and relationships deposits pipeline

of growth at deposits excess pace expect the we grow our So to of in year. for loan the actually or

Operator

Raymond from Rose question is James. of coming The Michael next

Michael Rose

slower longer, mature yield pickup and are growth. then get and don't Just And at expectations for kind cuts, you loans get it can year. figure asset to particularly given know much in expected whether there? to of of a puts bit it be the the a back loan like wanted to and have around this back the of year I we us Paul, on half the a dynamics, how discussion. to about we any year. you of trying seems in out the end of takes what the ramp the and pretty steep side? Just kind go what guys repricing talked margin give That's some little the just X% margin deposit higher the could are maybe to are if if back be

we Just should ramp of steep that are kind you that anticipating? how still reconcile guys

Paul Langdale

you Happy couple A really earning yield pieces. color acceleration Sure, do an Michael. pickup. asset around the to give big in We actually of some that. see moving

our the always. quarter that seasonality vis-a-vis we loans the company are think have about seasonality first you slower If maturing, in for

I'd quarter. the this now assets are the up look third reprice to second, terms if to commitments expect on that the fourth in the year. through remainder the that at earning sorry, first upwards. From maturing in to net the of of expect new and ability new those pick gross of -- $XXX had year, pick the in have quarter, over we I'd which So in our point you we up pace commitments of originations in the remainder the year million

the helps you're to be reliably balances. that's the going wildcard points price that really I expansion for those so ability remainder the the is going to tailwind be help NIM The up to to year. basis of on think able And noninterest-bearing our XXX manage average,

and ability to those for the breathing side, of deposit did deposit remainder a and On payoffs costs net to interest-bearing pace the that going slower little we're costs QX. That's paydowns we growth nimbly see payoffs going the us have the we bit room a more year, higher have manage really to to those in additional manage down. of with the give

really end those deposit said, As I in quarter, to the response were some question, able the earlier of to take earlier an of we down. at costs

the help as kind get in X the should we'll us start little walk kick so which of And second quarters. that of a next benefit we quarter, bit through the

Michael Rose

you hard longer have kind a how Okay. has know Does but But And of range. margin XXX timing, rate That's a get do pushed have environment? that higher that the guys repricing in or about know of XXX the was kind you end changed out? I it's year to story. kind helpful. in asset guess And a fixed that on I to what higher than of of are longer-term the end you even at then XXXX of talked outlook

what guys any we get thinking, to are time? over rate cuts if don't So still if just trying that's you understand

Paul Langdale

obviously, mean, spreads rates. very attractive at I higher be Sure. still will

established the As really think to we've customers, and been loans. through we rates our about very ability portfolio, we disciplined repricing to our about in higher price risk how we've pass firmly our

higher that the on a to in help back meaningful I'd that the so NIM it's to it So environment, back of bit versus think able and that to when little I going forecast. That be lack longer it's I some where gave push for would last maybe that 'XX longer of pushed offset 'XX, the road historical not longer. to a range, cuts earning but we're uplift being the far XXX get to going end to we're into a had, to yields a out said, there even future going we get historical higher not in of that the out we've to gets expect say for rate asset in of

Michael Rose

helpful. And maybe me. one Yes. last for Yes, just

on have of in whatever loan know have you But growth here. is for prudently, IBTX slowdown you term, kind growth Antonio guys from give up think we as adding a San kind get once folks I kind definitely of you we quality think what some C&I just you that performance. David, we're past mentioned asset term healthy, growth. coming higher bank, given have going some back a the that online, intermediate the in you, and as hopefully, it SBA loan following to pipeline about intermediate the is of and the think I and I market release. What days, you the the mentioned billion just asset of do $XX and very pulled speaks Just will for is as your think

Just loan should at IBTX how growth forward? moving engine the conceptually think we about

David Brooks

Antonio. quickly we healthy coming getting balanced is and wherever a LPO deposit as branch be, there a on possible, there still felt -- healthy had there. and an like but the of X% up branch so we're the possibility in base And also opened market to the loan we a there economy they're pipeline growth new demand in, a so In getting early. We markets quality where good. to of lot San strategy. really and company stabilize a good rates discussed deposits that that's especially with became core and core a picked a just they're going full-service doing customer the as the first very The going, in seeing -- XX% a Michael, from organically picking we're and growth Antonio bank team traction strong C&I-focused up and San we're

terrific and market. We that outlook. to meantime, estate timing haven't a it to with chance and the there on bullish over team balance years just -- really San liked Antonio. a there, hoping but right were really a acquire that get into haven't But just are in on yet. we some the C&I banks we're So we always found good good the of had real We've

Operator

The next from question KBW. of Mealor is Catherine coming

Catherine Mealor

is loan You talked XX this just the earning something question do there Can quantify, just rate in repricing? is yields rate saw I how cuts quarter no of does asset -- And the just year, you does. But model the I that kind yields points realistic we on we to that's throughout yields? as Another this -- well? does to pace, points quarter. this past way matter about How kind then what a the nice loan and margin. basis know another XX kind average about environment how of zero in then with environment? on basis any rate higher about on think change a increase, moving think, static of that

Paul Langdale

to Based assets if be tailwind nice some payoffs a a QX, bit level higher expect would slightly terms at on seeing did maturities of we're and remain the chunky what have little of up spread. repricing price Catherine. do will We that that higher, at in in same they I earning

position is that yield expansion, I think going to earning that for asset to it. notching well NIM that's going us really help drive

David Brooks

overall Also, going down asking will run what rate that's -- we we Catherine like through points basis end quarter. give also I fact can versus how in believe tailwind that's get of Also the materially is that the floor was year. NIM margin we -- and higher some feel by forward should And Michael that expect were earlier, the loans a back the how that the fourth first is to that, slightly this the David. expansion. XX Yes, to that quarter accelerate

Catherine Mealor

through rates too. to move could But as just way scenario cost -- stabilizing -- Okay. balances costs talked noninterest-bearing at know it's kind broker So coming because maybe quarter. don't is we That's longer a if think deposit move? you just kind even stabilize just hire how and much quantify great. and you the dynamic maybe there of for deposits the deposit in I next a about deposit remain where then of down higher And of

of of For moderate say coming cuts? -- where to of would moderate get deposit before down, costs we we the start impact kind kind your do you

Paul Langdale

pipelines well the our in think growth lower than funding robust seen we some have production the is. as we at -- some we rates I out have field, of where initiatives given deposit as the we've brokered

down just ability I there's to to but in to quantify exactly to looks production think because costs Catherine, first in -- from I the there's believe our that down, field upside our come need to there. upside, we control what some see that ability do So Hard have deposit that meaningful some deposit on deposits costs. confidence that like get

Catherine Mealor

Okay. is one on incremental deposit what Could you comment costs just of -- that. follow-up rate you could coming more on in, that? where And the are

Paul Langdale

Sure.

and our -- most priced products about [indiscernible] have popular are between products We X%.

that is. than So lower rate is all funding our in, blended much where brokered

Operator

is Sandler. question next from The Stephen Scouten coming Piper of

Stephen Scouten

talked I much more are how CRE, was And growth? little be in kind envision X, of do concentrated not you up? a about do -- so and of as the the you've how you or do percentage being you what sheet? C&I that of aspirational think need to investments for those I kind next Or to to what balance there first, as goals guess scale those you the teams the guess I about -- bit about curious, be over SBA, a made, not and you talked year

Paul Langdale

Stephen, vertical. be clear, Well, an to we've SBA had already

It's scaled opportunity our are in just and teams across Colorado. up embedded SBA. that. see continue we working to we with Texas and We So are grow to

nice the we'd to very real see we would a hire owner-occupied said, expect when expect quickly on longer C&I, I quarter. C&I those to very second a had investing we the commercial the estate. lenders. With ramp. comes think That about look And continue probably owner-occupied notch we over really estate. I portfolio commercial I see. terms bit it opportunistically where a takes that opportunity If to a get So the to where say the SBA that of year point space. in of report fully have investments, of quarter, also to you we're there's production the course over it I'll I'd in speed last up production that payback really the early on real a at production to wins we've And loan little

So want think that of quickly ourselves. relatively want to able growth too long because ramp. careful we've target how be investments have for very to need being in a to accountability we to really I results that we're hit set make we we don't We see that that

David Brooks

Stephen, I lenders that can shift to control, on them would the you because add had things as these taken on we've that, commercial we real our on and -- -- expense career have estate-focused focus and that the will, mix we controlling paths. discipline of some we choose have self-funded, side. those if reinvest different this dollars We've

the want -- is been not impression embarking ramp on a to the we're coming in that noninterest leave our it's up those expense departed, new So in ramp that I mix that, don't around we've to a side. back else add move to added is across as team teams on we where investments shift members markets, where had opportunities someone across commercial we

Paul Langdale

great And point, that's a David.

underscore, we remain expect do to Just the expense to for the flat of year. line the remainder noninterest

Stephen Scouten

conversation impact traditional this at that a does like or your longer for path in longer in profitability? How And last dynamic of couple clarification. that point this over sounded view of constructive quarters. would around become M&A sort How around time? say, Appreciate Good early higher of David, Yes. little point a the maybe more thoughts of view, you I Does a of more late the the 'XX that. there? to environment, does 'XX my

David Brooks

all terms to going is of I think hasn't Stephen, That's factors the industry point that tell. My hard broad view changed, of and in to direction. consolidate that this that macro

partnerships regional community pairings going of lot whether as regional the even discussions, on sense of around and long-term lot was it's a are across super to our and what thoughtful staying the discussions over last and I but look quarter makes believe well the think for longer banks, of up what you just shifting there rate discussions long-term higher banks rates a helpful as the types I not the forward. banks, do of space, types

your M&A mine other when certainly if we're we're of as better. downstream growing to and is going we So environment. to always is rates booking this I types a is It good as markets, will would and nice part be a activity. part time we it mean, -- is the a and here, -- not but of got controlling our tough we're yes, we of and right. is as work that a morning, keeping But the get And environment downshift the in discussions talked control in remix high-quality core ability our when doing we we out as the deposits, grow deposits rest about what those can as business our we've as things control, best guess

Stephen Scouten

follow-up And maybe me. makes Yes, sense. for just last

think the fourth maybe at one we back last but maybe quarter potentially. conversation. quarter, curve My of I by Going the about X XX time the confusion, I to point NIM NIM to guess, was were cuts talking like showing 'XX X% a

X get X, we looking can Now still we're at to there. I think but

that been So is change curve another view? expectations? in your in of the of not that upon rates to there kind you helps dependent forward really there lower and ramp the irrespective Or has get change

Paul Langdale

rates, we'll still ramp spreads expect relatively to said, where expect to be. The spreads, at we we 'XX. do modeling. you higher constant quite we slower I but remain about our of But is that back will don't think Stephen, And the get X% get end in by if think that to that

come get we reprice. rate though quicker be are meaningful environment, will down to earning notch benefit that on in even a to would we able asset still going So expansion deposit costs, some that from that

Even the not of expansion. we're X at wide expect rate environment, as to those range the modeling NIM when you it's look as So a some meaningful a scenarios, between have in variability flat on going you'd paper.

Operator

coming The is Olney question Instructions] Matt Stephens. [Operator next from of

Matt Olney

there. -- just change from up sensitive. material Any back question in changes projections? incrementally rate more sensitivity the last on then? that on we liability Maybe following moved just up Any follow think interest bank's January, Stephen's to I in

Paul Langdale

little a probably but But Matt, back liability has No, meaningful. we brokered bit, I'd duration at the short as a end remains. sensitivity neutral, of of the quarter funds toward paid that not say us some one the off notch that changed thing that those is kicked

Matt Olney

Okay.

saying you're Paul, quarter. as still right? in sensitive, is but Is So that as liability fourth you maybe were the not much

Paul Langdale

Correct.

Matt Olney

costs I Okay. around the question going That's back in helpful. then, near stabilizing to deposit Catherine's term. And guess,

to the just we for you us that stabilizing. can have of NIBs. Do deposit the details details I more that give more. gave to we're lot And first bps this And around Paul, be some Or first deposit spot that get us compare costs going the with spot since I balances on deposit see comfortable cost get month up any this We're move with color trying outlook quarter to past deposits costs comfortable XX is quarter. think that. on happen did a great you the additional by other you Just quarter? can just average? to we in noninterest-bearing

Paul Langdale

the February deposit really have exact where requests to we is Matt. on March sharp that down exception spot haven't to Hard costs and seen little basis, reversal in when we more an negotiate pin rate what in a second in bit have didn't April had market. price Where aggressively we that a will those first we daily great quarter. quarter, I have that in seen the in say recurring the But ability you

I of behavior depositor factored think it. into bit a it that little was

field spread core what to going us we're costs traction, wholesale the funding deposits. And be we in incremental a gives is able that that book we that off looking manage But us. really, people higher Matt, with to been be The for I it's big negotiation it really going like ability on for reach those and highest positive that that to bears for production us, mentioned than in helpful rate. pricing key down where confidence folks going in earlier, rational as is the cost, that. those and cuts, because grow field the to that trying see about that's were as to that's be running for it the to to anything As our going was though be to It's be a more longer to everyone going became those was it's yield.

Matt Olney

then It have opened like Okay. Paul. that, competitors back guys. for of a some I appreciate the for just warehouse. sounds opportunity stepped up lastly mortgage me little your and And you on

color And that kind these maintaining Did current capture behind you I more mentioned any think that? right? of I Just balances.

Daniel Brooks

is days that level. expect for Dan. quarters one. take that last be the this do have balances enjoyed Matt, the that XX X at here we Yes. We last continue to I'll to or

if fact, the about here. think you season summer headed we're spring In it, into

at the and the kind seems of quarter. a to bump book us there's exit we've year, and dropped the continue actually hold beyond accelerate pickup again a will but our the rates. of hold a competitors the the levels, first mortgage next what and of become happens seen ours gives that more this to of that seen quarter. There little be higher And of certainly beginning a the So these comfortable have at we up with plenty bit confidence maybe right bit consumer in normal was when rates because in

Operator

for floor you. this management turn additional the comments. I'd Thank back At over like closing time, or to any to

Daniel Brooks

Thank joining the in encouraged a you. April bottomed feel, everyone you've did heard, out. NIM about expecting We our March I today. in increase here slight slight rate. incrementally We having increase as have in NIM appreciate run a and

as about years as here. heard, So credit we're the that. And in broadly, as been you've quality encouraged is it's XX good

and deposits pipeline, the in that what encouraged loans. and on by we encouraged we're see both by So

a So and quarter, we're great good everyone looking for a I day. second hope has

Operator

concludes Ladies event. and gentlemen, this today's

at the disconnect rest lines the may off enjoy time, and this webcast of your You and day. your walk

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