BFST - Earnings call transcript Q1 2024 | Business First Bancshares, Inc.

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Operator

Thank you for standing by. My name is [ Mandeep ], and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Business First Bancshares Q1 2024 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Matt Sealy, SVP, Director of Corporate Strategy and FP&A.

You may begin.

Matthew Sealy

you. Thank thank joining. and all you afternoon, for Good Earlier press release. issued our XXXX earnings first quarter today, we A which to a slide copy along presentation website, of that is available we'll reference on call. our today's on with to harbor regarding non-GAAP safe financial refer includes use and statements Slide presentation, forward-looking our Please which of the measures. the statements of X

harbor First on Greg those and Financial call you presentation, to Administrative After subject statements in presentation joining harbor you, Please slide X on questions Melville, available Chief is we'll at earnings of Chief Jude that by Robertson; www.bXbank.com. Officer, the press the available All call safe Bancshares For ]. happy to our President was the that, I'll Jordan; our release. I'm and note made also Jerry by statements slide earnings of our and Officer, safe CEO, the filed are Jude. turn be over Officer, our presentation today's the joined you with during Banking Page SEC Philip phone, this please Vascaku are comments website Chief may have. And any [ Business release to note address afternoon today. with

David Melville

making Great. lot that this you your Thanks, on appreciate us have your everyone, Matt, and afternoon. thanks, for interest. a priority a We know plate. We

today, want the in. To leave to for discuss I time so and headline lot were we begin, right to disappointed I'll questions, We jump have by a quarter. profitability for the

pressure that occurred. outperformance. I would fortunate provide more will one impacts. Core core quarters, is X.XX%, year a and that small because single up EPS things ROAE an there tends say and quarter our to margin was a is added but normal be have specifics. But softest We've X.X% $X.XX. this of to more accumulation been softer First the greater-than-anticipated timing. core little event Greg ROAA small expense some many year number moving big of It wasn't detailed quarter of picture, is it of than

But of believe occurs, and I'll us leads remainder to a remedy We've the positive the relatively the anticipate further ask all a are remains will a was moment relative take expenses and the to here. improved over the I that of into Sometimes some will most things was a leading get to which the margin and small year, Again, steps a number survey reflected movement bit. both banks of important that to which flattening quarter, case these about priority. Margin the Greg short-term the in of first, in working. adjustments detail consider profitability taken in in not results. to opposite I a few be of which March, already of particular,

a First, due the significant in outside success of raising to was margin liquidity. miss part

X% hold. undertaken annualized growth As over X a its a XX%, and X from past you growth transition that rate in sign healthy relationships C&I and taking comparison, the rate positive Texas. By undoubtedly was of that grew annualized of by and focus in growth, work by an led shift deposits growth we we've our is relationships to to loan to that balanced we've know, been grew a production or the loans robust by whose We quarters working, was company in approximately more expectations. than one priority is particular, to

While we [indiscernible] account grew significantly.

if sources. mix [indiscernible] by the to quarter. Wanted on first preference have particularly the funding of in flat miss of deposit with we're campaigns little, to accounts the stemmed too opportunities We successful circumstances, Present to outflow for time the but essentially as going are uptick work. we X the within we're the is gathering last our continue putting conducted accounts of miss, have half existing horizon tide quarters was base, in improvement And with of We remaining the experiencing the the composition and an also my and result upside noninterest-bearing grow primarily the funding over we too than much quarter, continue deposits that funds liquidity accounts relational. fact rather of increases some these to the given to those the clients. pleased the of surprise

quarters coming our Second, another noninterest priorities of income. increase in and years is to

look us portfolio this into portion other uptick look on forward investment swap loan quarter we beginning This management, revenue serves and generation given this collections to positions SBA loan excited pipeline capability over nascent an for an we're with Waterstone, see work of provider and a incorporating already be deposit and certain This consummate and partnership and our quarter, able banking an seeing credits. and of to SBA management test. We we investment. forward we're opportunity service had their around participation also of the shifted acquisition along We're some corresponding of acquisition proper Waterstone opportunities. banks, gives our coming to about were the in capital to the eligible for internal SBA products. tangible stream quarters. function, more of grow the to that impact earnings unprojected The attention internal

important immediate approximately of in for partner scale, diversity shareholders focus. of the squarely of teams through longer-term agree and banking we field our our into with it alignment physical continue a development There work and future increased on and Texas It exposure our market with calls. portfolio well all honored Oakwood a and presence development the Q&A in for for to strongest bringing one went and together in Finally, through end addition market, of Dallas, million pleased in profitability for and plans us accelerated our the believe substantial meaningful turn our deposit partnership to we that Ben team markets, of to the both with continued transaction risk the a we've us client acquisition in the and logical presence Efficiency leadership our to through the details through Greg was you the as to assets our of with potential positions quarter and XX% we're determine the it is positive credit I'll in thank meaningful growth linked announce bolstering This franchise. loan in now and deal, Texas. for no North believe to XX% acquisition the $XXX period. America's and Texas fits total the next accretive impact, book in base. More our over step be talent culture very of effort Bank We further the similar Oakwood to of growth. I'm team of than an leave that our mitigation discussed the arm it. With our market. that, through Bank, I would previous commercial

Gregory Robertson

our of to and our former presentation, $XX,XXX million on everyone. investor on some a pretax $X.XX and and minutes the income shareholders included available a our net a just and of GAAP we'll updated share and and of also Slide highlights, gain trends. reviewing and QX acquisition-related good $XXX,XXX expense afternoon, the Jude, pretax spend of the balance current sheet outlook. On common first bank thoughts discuss premises few equipment. $XX.X was quarter XX I'll you, Thank including income statement And EPS

share. shareholders $XX.X was net available to items, million noncore per core common and non-GAAP EPS income $X.XX these and Excluding

softer these results expense. I'll than as As pressures start are Jude to due to an mentioned, on and margin anticipated several elevated margin items here. were continued the noninterest there unpack

money the points margin core strong margin both of from linked basis quarter, a deposit was market weighed Our XX from X.XX% within which net and to X our on factors: a production volume down perspective. product reported primarily due interest rate the deposit

establish balance neutral mentioned sheet position high been in working we deposit attracting accounts. to volume in from As the by rate a we past, have nonmaturity a have the more

closer to has and we been but current quickly Our on mid-XX% getting low volume as rate The not the higher did. range, the loan-to-deposit do combination market to environment admittedly of the as the to weighed work there goal NIM. anticipate we ratio

basis. expectations were yields on by First which about of core new of to linked yields at renewed increase driven QX and quarter X.XX%, fell short Results quarter loan our loan $XX. total a continued

be totality a low-cost the going. pressure about the on component helpful X% deposits. comfortable and some [indiscernible] we've relationship, first with should that out on understanding in overall in that $XX think also was where rate we credit relationship, the to given of did and with headline deposit QX benefited yields. I'd million we point which where The the and a loan quarter, a we're been the trends -- tax the would from came were margin throughout like quarter during We side that large which

basis the been an in deposit overall points. new up points in partially more costs since to month the XX. the was X due actually margin Our of to quarter, months the first we total fact the part quarter. of was have quarter had end declining latter which the impact XX in down December, X core have the appears first by interest of This picked March, basis each to down Net Then that

period funding. during of late in the was also muted of important outflows quarter, that think I the inflow in more first noninterest-bearing quarter. Dovetailing -- this deposit We experienced the quarterly relationships, we it's noninterest off benefited point, quarter last [indiscernible] impactful which impact in the noninterest-bearing from early an

That perspective. the we a the and challenge behind are account said, second see So solid during wins encouraged starting curve part off noninterest-bearing some certainly in that of the trend quarter. a margin like to from lower cost traction was first

relationship view aim for gathering basis composition see to The and a NIM, point continue the near to rate with We side, the XXX term. we base that environment. as we the funding longer early term, in the are core or continue a realistic intermediate higher around upside and in funding which on operate X.XX pleased we long sustainable QX to efforts and overall

$XXX,XXX to Noninterest the to the first Moving contributed Waterstone in first elevated the due statement. which acquisition, about during expense quarter quarter. expense the to during was additional income

items of incremental being levels. $X fourth would quarter we of Additionally, and it had normalized quarter. being more the up to I down was first the bonus say quarter the more ending to point And during related the million related

million online some in have agreed each on also to that IT rate a view we of and those of run than have expect remainder relatively mentioning quarter from calls figure brought X% we forward, expense anticipated. a -- to good X.X%, $XX.X for noninterest modest expenses We had core We that going would few been increase is the the and year. the we we the a IT-related enhancements, sooner certain quarter X%

noninterest on sale the on former than of core noninterest lower million, business in run going which anticipate quarter about was is contribute small expected $X.X rate our we were GAAP a several forward. Well, a clean areas bank came securities. income in excludes fee million a fairly loss of and way there going segments from income First managed more $X.X income gain with premises revenue and forward, to therefore, that QX a this

if credit X credit. we've direct past presentation, during Now to I seen XX, due the resolved. could have that primarily first to $XX about Slide on loans quarter, million increase today did our exposure you investor due That a to was

with normalized relationships movement push So any those no quarter past than were back no remains more in exposure those The they were loans slightly, up reviewed Both removal X at $XX credit see I million book with that and overall that end given -- stable loans we of credit to we gave. movements attributable that those default would other those outlier relationships. due instances really that systemic remains still X did outlier credit. Nonperforming loans -- pick to of and with had. loss very don't a

during increased million the largely in the reduction the loans investment sheet. for $XX.X of balance million, annualized portfolio somewhat residential estate $X.X quarter, growth compares Louisiana overall DFW mentioned of key exceeded through approximately end -- loans, of the range. of of C&D percentage for quarter $XX both our in which a Texas-based to held outlook Moving region, of portfolio while X.X% deposits. Dev attributable our our us expectations XX% growth the the XX.X%, QX. during loan of XX% $XXX the to total portfolio. Proud net the terms the on and our Loan relationship stable, C&I represent of growth XX% million as from representing by composition total in the prior XX% and low growth real of Total and was deposit of net to the increasing noninterest-bearing balance about the relatively quarter. Deposit region of quarter, balances to offset or and wins. Noninterest-bearing earlier, with remained million held today $XX.X XX.X%, XX% deposits growth of in growth quarter. in XX% deposits million sheet the in portfolio annualized growth. at our production the quarter, produced loan that on production prior drive on Southwest We're commercial a deposits to total team's pleased of prior or first the a growth accounted our capital the the have loan region focus loan to continued almost produced as for and with

still over quarter, While concludes gathering we first early that we've optimistic hand and we're the the in remain to prospects month wrap core Jude highly head. And the up. back my deposit the encouraged of of level remarks. prepared it in to quarter. on second by encouraged I'll experienced low-cost of Overall, the

David Melville

Greg. thanks, Well, Good.

we'll that, just with Q&A. to jump think I

the movement know maybe look I if of yet well. course, quarter We on have it, lot time announced questions acquisition. a don't haven't and any answering people to but that we forward of just to And as in front digest had the

Operator

[Operator Instructions] Stephens. And Matt with Olney first from question comes our

Matt Olney

it was first X the on you there have on that then margin Greg, provide this quarter And good it was margin you It in the more we Any for starting were the Start I Can pretty second a near should point you months, sounds think down margin? do margin. March mentioned volatile. think March. like was? -- that's the the other quarter? and what considerations term stabilized

Gregory Robertson

Yes.

beginning averages quarter answer little ultimately. What experienced, in we a of margin. how noted about the the kind a the quarter noninterest-bearing $XX detail little the the this we your follow then And that of me comments the the for bit impacted about think experienced in of we I And I'll that's there. of million. with arrive go to outflow for what into question, up let it I

$XX the X. During to noninterest-bearing almost quarter, the to that remainder in gathering were bring we of very successful back million

win So noninterest-bearing really showing flat relationship was those a types our a us. Jude of big piece we're gathering And for accounts. that accounts of or eyes, being the and mentioned in had the deal

that you noninterest-bearing a have went So operational offering rate, were have money we market to with that certain to with that account get it. an

So that's think important. I

The coming December second were And the standpoint, in door a for money average rate markets were in our thing the new deposit dollars X.XX%. they from X.XX%. deposit for in those about March,

really, basis like coming those So feel to shown in March, well end up up February, down only rates down I we gather the some to margin on points we X we XXX basis ended what on new down that. the door, signs had March was dollars at were moving the weighed as to think of XX continue as really to million. through XX% where the in X points up noninterest-bearing, being

Matt Olney

from the how the liquidity Or Greg. about you build aspect, loan-to-deposit you helpful, And expectations whether that's expected. mentioned and what That's you are Curious liquidity that, a along think the Okay. ratio? then from that? here with in first quarter, guess the I

Gregory Robertson

-- able loan expect to and growth our with that to growth. to fund deposit that X%, X% single-digit to would expectations through I continue Yes. be are high

XX% Now expect we growth whole on year. balance loan-to-deposit to the don't range ratio forward for XX-ish deposit of annualized going in the the that have

Matt Olney

to And then Okay. helpful, Greg. Got I over guess, expenses. it. switching That's

in kind number is launching XQ core of point. million the think messaging was I $XX.X a good

here, [ if capture [ think the ] that X% you I said I some X% gives you to XXX correctly. quarter. for Did heard from each XXX I right? think that ], sequentially I and that year, increase between

Gregory Robertson

you're That's right. is about that -- think Yes. We right. that,

Matt Olney

to far as the general, business Any know How just of then all? Congratulations just on base? in compared for me as kind the customer does a Dallas you acquisition. And have overlap comparisons. Dallas deal. base guys of customer kind customer any base? at of kind the years. I in any on the versus for Oakwood of number lastly And appreciate been Would for just Okay. comparison in

Gregory Robertson

Yes.

types. attractions for sorry, clients the was in shared from deals regional but of of to forms do the one their A of the the part, the do shared not a But similarity of think handful already. and of tend similar We makeup. they're have deal I following client came most the the staff efforts client larger clients, to are for production or and banks, lot stall us. they they Oakwood of

we'll culture them production about anticipate help from think do. have comes And house. They on when their with staff side balance banks. do the Excited of larger I also to the expanded they don't the the opportunity fitting more with of it a to shock what in sheet I coming there. production them

forward help bankers. that of the leadership and us from also our provide can benefiting We they to depth look that to

-- terms a So of and base I fit bankers. terms client in of in good we're think it's really

Unknown Executive

to back I right. XXX? to the low question heard base. your expense you Or Matt, say XXX, you circling were think make heard do XXX, on want I I XXX. What I you implying, sure

Matt Olney

XXX I ] ] it heard. was to [ what XXX [ I thought that's

Unknown Executive

thought I XXX, or Yes. say you Yes. XXX. XXX I heard

David Melville

So that of right an there from this Matt, lot our is integration alley, good overlap. that will do standpoint, think be a we cultural down and

As the we've you a in while. been for market mentioned,

$X.X-ish about outstanding. $X.X in have billion, loans billion We

a about and the Greg of And through all-encompassing due process, that the feel and good really the little we I'll so like diligence we bit perspective diligence talk let process. nature had efforts a

Gregory Robertson

where of not there's of -- their able feeling great but a came of it were like early mentioned, Investor really reviewing very loan lot lot days feels Yes. the First of about portfolio, clients. deep Matt, away Day, not in we also clients with very shows you quality only comfortable the book Business quality as it, our to penetration a in the

of also the away of get have, and quality over a bank, we will the good they but with to about it also not [indiscernible]. to level that map portfolio only feeling credit really those all came of the and we not the only our margin from but do from how when talent standpoint So things

David Melville

good record particular, really think our addition prioritization, to, say, of ] would have there. and I a they track I being terms in aligned of Roy focused specific in in to have credit of to well [ Sally's career

Operator

with question next line Michael from James. the Our Rose of comes Raymond

Michael Rose

was it Yes. start Page category. in the the slides, on at I XX dues. just it increase Maybe If we the of could like all past looks look other in

color migration. wanted increase So on the get there just I to of the some

Gregory Robertson

you Thank -- right. Michael, All the Yes, you there?

Michael Rose

Yes.

Gregory Robertson

Okay.

I thing as main had the Yes, call, is guarantors one dues loan. Sorry. think and mentioned go up the had on real some some issues I made that estate loan we that past we've resolved with commercial that

So than just we about for normalized. less in feel real $XX seem other very quarter. slightly be X dues past good have past million would to or than been that, the That that

Michael Rose

Okay. Yes.

drove out color Matt's First deal, like there. the And around question, missed mentioned looking the then I of if do think, in MOE, and and looking at this would Business just like had just it just broke address you with Texas? in on days, I go you bank maybe the Sorry, you were other issues. going relation to maybe but -- all and I CRA in you they that. holistically, apart, of the was think, then Oakwood state I 'XX I that? And to Can it know stuff mentioned what like just it an of because some looks in the earlier to all some through options just of to

David Melville

Sure.

a of Board that kind if the not Certainly we've look line aligned, then is the And believe a end the terms opportunities number acquisition, is which invest an our in they and the of our which lining couple being Houston. And that I intent deal, that and It's and situation the is they acquisition very the a And the the years, leads The in terms culture, that we had of chose they you of upfront terms culture. known understand. versus the felt in very with years also size. to of attractive. comfortable is one, it's ability partnership do ideal but transition of the the size just of partnership. the could deal cash the and meaningful, number kind would of acquisition, also management structure that in at we're of the I spirit think a the of an still and we reasons last right in you bear we ago an for feel have up to the out, of was we team in market like in value well of partnership which size economics the right in us. believe clearly management the right say

to on years good outlined of for that to the terms to really culture. the we both being of being number terms like So that and fit X.X-ish ago low strategic accomplishes felt all transaction [ that with right of of risk, the we've of integration the call. we've size, our an deal spot conduct end-market this transaction. as a that our was sweet felt size the the We increase having kind a in ability well plan consummation well in with here [indiscernible] that's But right had ], and of successfully

terms also Louisiana. had in XX% to our We approach outside a of have of risk goal paying credit

in materially that so And this moves direction. us

the be to be country. in to of consider going many the you're is, market people certainly the of desired I strongest much Texas, would and one across think If Dallas strongest there the

we're to with a board the to So to the that opportunity address attractive all was of wanted approval. we but with an Certainly, place CRA of prior regulatory the we to in issue want right potential a rationale that to this stocks were And [indiscernible]. I across in comfortable part breakup we so unique for experience. the move is environment taking us the that. over weren't sure which doing be which MOE was that certainly, kind investment. structure being make else of operating in for also the the equal, partnership an make

the understand including chance and to they've had and and the of feel process we've that name the like record investments been we Southern as right and as couple And part branch years, success our so past a the a in they've identify we CRA they've made opening commitment. Dallas. have diligence over of strong things, well doing And been significant, as

feel so like but together, we that right on And regulatory to good we're for CRA together, approval a comfortable from they're independently we And a the process. will be feel track candidate perspective. the

Michael Rose

appreciate for Okay. it. That's I XXXX. in guess earnings XX, is Jude, It great some it's color, me. Maybe just accretion quarter I to going last Slide fourth looks like the close deal in implies the

going assume you to So put wanted I in you close as need I then see closer? where were kind that guess, billion. that definitely be to do what sometime it And Is is quarter. just $X.X would will of to closer fair? you And you separately, earlier billion this $XX to prepared just, the and cross to get

David Melville

certainly of the from billion, years. nonetheless, puts but This we on it start number billion. that over something $XX of whether But closer $X.X witnessed is approach investments the the need the couple the take a we're of that needed past we cognizant and on think as challenges you is already I billion made we're have to you $X.X we'll working or prepare to hires to point Well, the Sure. $X.X same, billion. us and

making the and is also We've our the we've that preparation step infrastructure the history. sure billion kind and now that and And complement one. We step in think $XX mark. XX-year adding right and IT place. for We that's So people work heavily organic going that heavily experience begun investing first over over that. we have making of the done have that folks having experience that believe had

we we has better wanted So on technology little means a year us. invest to some detailed bit -- prepares that think last that in call, in that as this our meant we

are the questions side doing so regulatory that data the terms involved. things the On to answer we of we're can right be in production that flow sure but that prepared also making

the in was forward works to that us acquisition help, gives we're that So those already. This frankly, scale some some making. investments of go

those investments make the to get to so prepared when for mark, trying you we that and we we're billion to well there, do to $XX optionality -- be getting it. we'll So retain prior

think as with we the actually having we to I aware while doing your that and mark helps kind and the We're hit of ourselves. still actively accretion? $XX that feel billion we're of for this being up part and us ready prepare things stand like and question? right first actively prepared. What catch was to So actually be of Income a without investing

to... Do want you

Michael Rose

So that about billion. $X.X to do say expect close meant just then, I sorry -- you that. I'm

looks could in you it think Is I EPS fair? like XXXX. some accretion deal that quarter, the just expect given close earlier the that fourth in

David Melville

Yes.

as part control, of As a know, -- is of acquisition there's you this outside some that we sixth our but having will team. our be

on like fourth is required in the logistics we a good the close early fact and our [indiscernible] process have close and hope pretty quarter handle on to that feel we we the could So in

Gregory Robertson

it -- Investor think in the Day Michael, we lays And so. out. we If of kind

it's of but XXXX middle time to conversion. that's we to integrated would Kind same We expect the of start we'll holding getting hopefully, sooner, the the think happen Hopefully, probably that cost line. -- start in income post saves when half accretion. it

David Melville

with From this occasionally of middle that, issue and other a all ones feel believe lead the of us good handle But fairway. partners that. are comforted that middle deals you that one the is down a being right addition. are we like right down an the the CRA regulatory the is we have deal up identified the to And would we perspective, trips on that would the of that elements feel feel even fairway, our like that regulatory

Operator

the of Our Janney. next line with question Feddie comes from Strickland

Feddie Strickland

trajectory, loans in potentially I see think 'XX Texas puts loans. could transaction, you loan to all Do growth? I by you deck, exceed taxes given on with this of the forma think late XX% current the XX% pro and mid- in it With you transaction the just this

David Melville

from think the about obviously there. we where the this terms in is an of from to half Texas Yes, unlikely way markets. needle scenario. We XX% growth of our coming not -- around moves today And that's I are of

we ability this number bankers us give time. with over -- should the the So in to partnership increase of that Oakwood

it's So unrealistic next not to the assume that think we I nearing of there, don't would by end be if year.

Feddie Strickland

just a Oakwood's Or proper? business if footprint on I I some earlier. first diversification in here consideration then the if Dallas more the legacy part was was And notice And credit? this just missed I is heavier you more it that stronger Okay. apologize C&I on But little on portfolio. having of said portfolio a

David Melville

of makeup a was us. C&I attraction was to of and an certainly to the There's outsized an mixture portfolio things. exposure It the and being

think about loan X couple you team C&D last to years, percent, over CRE XX%. -- growth for exposure in of substantially. down years our XXX-ish In it's relative proud to and of of return focus. C&I we're kind capital our been to really decreasing a past And the pretty over gone C&D from our XX-ish a If of below just book the

[indiscernible] this accelerate banking sector been able we've partnership and our business to that of process. return terms to will So in

that us. banker focused teams the their balance of So their to make sheet, the up makeup C&I being their of is yes, something were that was the makeup capabilities is of attractive of client base,

Feddie Strickland

going margin ex last question. hear [ ], go the you to it's already right? there's been accretion ] see [ to the kind I that [ on longer-term next couple questions you quarter, Or One modeling a of XXX Greg, XXX to But is ] I core Understood. that clarification a here. not up goal? know but do but that correctly going margin today, did XXX

Gregory Robertson

That's longer-term Yes. a goal. operational

to the think the then achieving part goal you is the of when next reasonable. that first middle deal deal, pretty about by reality, of in probably in context the year think I being this

David Melville

one thing a I that on about They're higher. we the not magnitude loan similar is us bank costs think and but order intriguing and deposit loan of side, higher that have yields. than the little

what getting do. then little comfortable So that cost. they we're deposit higher they very a have And paid they're for

to bring putting work with the them have do only us the us So through we of Louisiana this margin own -- the acquisition makeup should We to branch deposit in through basis, more increased loan but funding to costs be our should think balance their on deposit should of be we our to for think more had, we than work side, efforts. to enable more -- as able Dallas. And in to to time opportunity able being with help line continue franchises to a the on XX% pro continue that the add we've an as put positively our will which to expanded franchise other to does markets have ever able -- forma to us ours, combined which [indiscernible] network give be not opportunity Texas. achieve basis, while about the gathering in well and which internal in deposit moving funding

Operator

DA line from Manuel question next of Our Instructions] [Operator the Davidson. Navas comes with

Manuel Navas

I want to pace piece touch kind ]. different [ on the build of NIM to XXX a that the of to of

the comment a with accretion. by for you perspective, If if rate that end longer it you get by And XXX to? could And you we Just -- for a that's where year? that looking outlook. a [ of if have the help the cuts, of to from is middle of NIM kept reached going had where of couple rates kind there fall we get higher the year do would ] variability next of where unchanged, could have

Gregory Robertson

in real months to probably last making worked hard the We've more XX X Yes. sheet balance neutral. the on

margins higher be -- should direction. cuts tried or So to we pretty that in [indiscernible] feel purposely it much a move environment, for like and X should impact long in X we we

stand-alone of expect to when XX basis think, as XXX, I points. meant ex well. I by the XX up we pick to be accretion would somewhere that able year, was the And that to from So end

Matt Olney

to process work just shifting Is the announced the for you of So Can you're really the that's a helpful. to keep able in And for couple that about time. talk today, retention to over pieces able you've how talk when you you good the bringing and talent. of team been transaction you over about feel confident being thought amount agreements a that? this there's to

through the kind Just at that key producers it of go of piece with Oakwood?

David Melville

making process decision-making that we've our leadership. we Well, diligence of really and culture production on includes processes, alignment -- part relationships the our that sure feeling get and our is Sure.

the mean good also decisions personalities on us [indiscernible] just make on we really didn't the diligence about and and about the It's we how us feeling the and involved. And the that prioritizations feeling diligence out the the them. the relative wouldn't about that are We feel I anything it's people if not have. we good good way

But other. their run, have ability over quite feel but fit in and senior important track hit actual to they this group we've have a [indiscernible] We feeling time of can period also a do agreements a will team. we long day and come But within their until Not then only And to so what will And like maintain the each the it that feeling to production initial with systems we know they acquisition like bit ultimately, do Board for leadership post have officers and the we about is to X. getting a their record. group. upon spent retention good down of both talent our our certainly

think that about X choose lost producers acquisitions the you transition. X the X maybe we've didn't at We end. most to we've done, or If at help

the that their we is you their you win, about a to have producers And you and terms part record balance are a when talent. that good previously. They about quite able over we with the at that have expanded good offer integration, good banks folks a can in of bigger upside that really a sheet to their winners you as well. than product going [indiscernible] win. feel partner to then equity also continue So chance bigger culture in bit to time. of work And smaller desire scale of do them to [indiscernible] offer think do more have we our set as with, ability to to than and participate we're even feel they and And

as like so well there feel And I well. we're on

to shown feel is cultural about the road the of in mean X. team of this so shared bank I good contracts, acquisition have about specifically a formal And at then but but from the it's comfortable again, bank across -- of the are do that success the been leadership to well. It's really all we've aspects acquisitions, with side day things too don't vision the that good the be about it, matter. prior software easy so and the And soft and to as feeling talk to [indiscernible]. those we I with we that not know and like as prioritizing and I do really the a about integration about the

we desire feel a so place that grow good lead be confident can to to that team to team they And their And a remain to we'll our of and will for their over time. continue all be. be part ultimately

Operator

to the our for Q&A over I remarks. session. Jude conference That back concludes closing turn Melville now will

David Melville

the and with as as quarter, a appreciate with partnering we're did Great. cultural last to can time and with the believe much produce It shareholders that we're course built we hope from returns a ability we spending Oakwood the and welcome of a we over one work as excited and -- to franchise that believe They solid achieve just managerial we all year about address we and this doing this to alignment of achieve take us. about that team Well, noise and excited that to deal. moment are those everybody and our to found I make the Board aspect year the as continue time that a Bank. the the right together, just about feel the happen. We'll was over we'll quarter, confident and to hard things

to welcome more partner you some of our to forward for results, it take people thank we year. Thank kind want to people with, them, proud this look you. bank also to steps forward So being and team the of And and thank them. that that but you I'm

Operator

This concludes today's conference call.

may disconnect. You now

Business First Bancshares (BFST) 25 Apr 242024 Q1 Earnings call transcript