Trustmark (TRMK) 1 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Joey Rein	Director, Investor Relations
Duane Dewey	President & Chief Executive Officer
Barry Harvey	Chief Credit Officer
Tom Owens	EVP & CFO
Jennifer Demba	Truist Securities
Catherine Mealor	KBW
Brad Milsaps	Piper Sandler
Carl Doirin	Raymond James

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to Trustmark Corporation's First Quarter Earnings Conference Call. At this time, all participants are in a listen only mode.

Following the presentation this morning, there will be question-and-answer session. [Operator Instructions] As a reminder, today's conference call is being recorded. It is now my pleasure to introduce Mr. Investor Trustmark. of Director Rein, Relations at Joey Please go ahead.

Joey Rein

be to that earnings morning a morning. that as I of of is everyone website like would will presentation Investor slide quarter Good available copy on call Relations remind our at as trustmark.com. the on the discussed our well section this release our first

to We caution Securities During the meaning within that uncertainties, filings make Dewey, forward-looking CEO of Litigation our with in Act of like At a statements materially the other and President Reform earnings statements may course and to of due from Securities I'd number our call, Duane would Commission. Exchange of risks which forward-looking are these introduce Corporation. actual XXXX. the the our Trustmark you this and release management Private and like time, may outlined differ to of results

Duane Dewey

and this Barry Owens, joining Good for Chief Joey. for income share us. was thanks Accounting you, Chief Officer. our quarter or Harvey, Chief first XXXX. me With Tom of our report million per Officer; Trustmark $X.XX Credit morning, Chambers, Thank of net to the and diluted our Tom are Financial everyone, pleased morning $XX Officer;

$XXX.X by or We increased investment, and X. excluding the X.X% will $XXX.X from turning PPP year-over-year. million financial briefly million review Loans these quarter results prior loans, Slide to held for or X.X%

SBA's which management Paycheck totaled a During wealth costs. increase the quarter. $XXX.X growing Program, insurance management increasing revenue the from other the the deferred XX.X% net originated Protection first million X.X%. Both quarter, through with we wealth businesses in X.XX% revenue of and experienced fees quarter quarter, for loans growth Adjusted X,XXX expense noninterest million linked revenue prior $XXX.X million, totaled insurance $XX.X and and

gain the and focus well network. to rationalization enhancements in serve of as efficiency investments branch efficiencies customers better continue technology including the on throughout organization, to as We

decreases charge-offs exceeded levels from the improving capital common of solid losses equity reserve a XX.XX% as X of negative for XX.XX%. quality credit a credit total by the capital recoveries was economic maintained provision by risk-based and a resulting $X.X Our and ratio ratio strong with remained in driven quantitative million, We million, forecast. Tier an $XX.X

During Trustmark X. of shareholders cash outstanding March XX X.X declared of or The Directors on record repurchase of approximately credit million million on the $X.XX Trustmark first June in common expire will its time, growth provide and remaining I'd dividend like ask program, some its to quarter, under of had as year. repurchased June XXX,XXX authority XX. per of $XX.X At of which shares loan existing a color this quality. XX Board quarterly this to to share payable Barry December

Barry Harvey

glad Duane. Be to,

to Looking X. over Slide

totaled XXst. PPP quarter year. million and investment, last for held as an from of $XXX million of That's loans $XXX excluding from time March loans Our increase billion $XX the prior this

and portfolio Our growth positive upon type came public both loan some with diversified traction. The both in and geography. product based C&I finance remains loan getting well CRE

is portfolio XX% existing CRE approximately Looking construction, Trustmark's on to XX% land Slide development. X, and

construction. industries. development well as types portfolio has mix book The real XX% estate nice construction, land Our a is as bank's between owner-occupied

conservative can bases, retail well see, customer we worth secured, bank XX%. manner. Typically, exposure X. borrowing is Trustmark diversified, exceeding C&I both both loans category only commercial minimum hotels X, by always protect The have with energy governed Slide well as $XX industry has and statement The restaurants balance been covenanted sheet. never we and formulaic CRE have million can that outstandings to on and On underwritten bank's And you see segments the category. has a Looking totaling loans single one in income business. to lending in a portfolio in risk the of you numerous Slide to currently, credits. higher no these the across are

at X. Looking Slide

credit Our funded decreased million allowance quarter. for $X.X prior losses from the

loan primarily to some the along qualitative was in XX, losses or improvement improvement was levels in for our due Our held primarily economic XXXX, allowance forecast, decreased for decrease continued At due million. loss loans -- COVID-XX on the $XXX funded factor. credit March with reserve investment

loans, from will this allowance credit solid to at a March for from Looking $X.X XXX% our credit X.X% of see post that Slide by quarter Recoveries you individually losses level. ago estate declined are assessed. X-year XX, the metrics. charge-offs exceeded quarter and Other At nonperforming X, XX% continue excluding quality those represented real we previous million.

Slide the protection assisted the as local that actively successfully as XXXX to programs We well been both on in a XX, you PPP negatively in of XXXX. businesses number by as significant COVID-XX know, participated, have bank impacted pandemic. Looking the

March originated, Duane loan quarter, million and During net At we totaling mentioned, X,XXX net million, and XX, Duane? of as $XXX totaled PPP our of $XX the XXXX, fees first loans cost. PPP cost of deferred deferred fees loans $XXX million.

Duane Dewey

Thank you, Barry.

I'd the margin. Tom the turning net balance side Now liability Owens like base to interest ask to and discuss to sheet. of our deposit

Tom Owens

Duane. Thanks,

liquidity $X.X XX. payments. X.X% billion Average balances million with PPP Turning billion $XXX million or quarter, or primarily to totaled $XXX Deposits and at loan linked $XX.X March customer or from additional the the Slide government quarter associated and increased program XX.X% reflecting prior up XXst, X.X% up year-over-year. stimulus

prior to interest-bearing of basis X XX points the points. quarter deposits cost total Our declined from basis

in maintain continue remains mix of XX% a with ratio deposits, strong and deposit to We a loan-to-deposit liquidity with our favorable noninterest-bearing XX%.

driven the net securities the a investment mortgage million the in FTE yield, a while was NIM continuing of quarter relatively other the in by Core Net fourth quarter to in balances from of continued balances accordingly. income the as offset an million point expense. Interest in recast core margin in now and excluding by Fed quarter NIM XX information, prior basis as excluding to more yield, We $X.X which XX of of calculations in XX. our the fourth lower from $X.X billion million, ex net distortion from representing the totaled decline quarter quarter, the from million million. was will decline the loans $X.X quarter, income quarter the reflecting to activity. on of with was the in from a resulting of doubling Slide PPP out residential we the the X decreased in in I interest to we've quarter practice points the interest driven by an a the was in of decrease an And Turning yield a million seen income And decline we and linked core of earning X calculation. of from linked first in interest about income in want fees which assets core linked loans think dynamics in of have in to point income. true speeds half XX reinvestment size our a well. decline Net core $XXX,XXX a our million X.XX% decline quarter. from while investment that basis was the interest the financial driven growth. talked industry quarter, PPP on the Fed prior the than from interest of by so continue by decrease decline million, balances interest high approximate first and $X.X quarter, FTE the consolidated increase strong the which portfolio update clarify $XXX million net noninterest decline decline income loans we've adopt million the Core was driven attention securities and payoff historicals them $XXX.X we revenue for about deposit that first is of margin. $X.X points helps others interest interest to $X.X this million X.XX% declined do in $XX refer the and in was from totaled of the decided the I've core quarter our on prior when we're reduction do quarter Note driven interest in fourth fundamental Duane remaining yields; by for during NIM, calls quarter. held basis Fed $X.X by margin point $X linked basis the in About reader now excess $XXX remainder felt first a prepayment of

Duane Dewey

Thanks, Tom.

the million, for a look income XX. income We deposit accounts. million $XX.X decreases a linked insurance, the decrease totaled turning charges quarter and more year-over-year. and reflects at banking from were revenue first Noninterest will bank on service decrease revenues, now $X.X quarter to by which card million than quarter management The in and prior by Slide increases noninterest in mortgage $X.X wealth offset change

diversified the represented quarter, solid Trustmark's XX.X% of income revenue a For noninterest stream. demonstrate continuing revenue, to

Now XX, banking looking will mortgage Slide to revenue. cover we

For production XX.X% loan increase still prior mortgage production the and $X.X had decline revenue the quarter, linked very decrease a Mortgage $X.X first strong million, first quarter a totaled an X.X% million year. a quarter, decrease the of $XX.X year-over-year. from from and of prior banking quarter million although

XX.X% and quarter, first now of Owens cover expense $XXX to ask production million. Tom the represented volume management. retail For and capital I'll noninterest

Tom Owens

Duane. you, Thank

Credit of was expense quarter. the estate $XXX,XXX first in payroll $XXX,XXX sheet performance-based quarter compared expense expense other turning sales is between estate noninterest real first Adjusted off-balance increase million Slide So to million in broken quarter, and taxes X.X% other related prior in $X.X salaries million exposures loss benefits from increase the on credit negative $X.X XX, the a to quarter, noninterest due in prior related first real mainly the and quarter. increase was the commissions. This in quarter. to gains the out reflecting of in adjusted, expense to an total. fourth to and $XXX.X Other totaled negative the totaled increased

of XX. of perspective a As well-positioned X as capital remains from ratio of XX.XX% a Tier and common noted Trustmark XX, equity on XX.XX% capital a risk-based March capital with total Slide

we the approximately of stock deployed under our March $XX.X the repurchase via existing quarter, common million $X.X remaining million During plan. authorization we XXX,XXX At Duane? repurchase shares. of first XXst, had

Duane Dewey

Thanks, time, questions. the for floor discussion helpful and has everyone. Tom. I’m hopeful insightful to this been would we this At open

Operator

Instructions] Truist comes with Please Jennifer Demba Our ahead. first from question Securities. [Operator go

Jennifer Demba

Thank you. Morning. Good

Duane Dewey

Good Morning, Jennifer.

Jennifer Demba

to mortgage the offset Just challenges revenue security and of Trustmark? wondering like Thanks. term have spread growth challenges growth you feel and levers XX-year expect talk for comparison this in could should what about we if portfolio year terms you you major

Duane Dewey

you bits It and not the apologize I ask jumbled get got to that. repeat first for question. going We bit I'm the your was Jennifer, part of a did question. to and pieces.

Jennifer Demba

now? you can sorry, hear better I'm me

Duane Dewey

little Still Yes, a bit. bit a jumbled. little

Jennifer Demba

challenges growth work. demand hopefully, mortgage talk has revenue Trustmark just to will will is waiting this much here, and about the And to lending better? difficult talk how Can it on growth a offset while louder year? kind loan put get to for comparison I you're of levers major you the securities industry Okay. spread willing

Duane Dewey

Okay.

got of couple I we out and that. will I There's think can most questions. of a add in. start Tom and others different

remain call, of last our as the focused we efficiency we across and in continue expense all, measures First controls reported to very on organization. very,

branch means looking other and are customer in We our reduce ATMs and opportunity extensive at system, headcount. doing every as overall well needs to branch work as network serve the to deploy

So focus there. continued

XX I think in closures call, to XX we to year. in our the prior guided

as quarter, we high in XX, adds. net year X get with X of for We new closure closure the could level a first additions. new X, the XX -- The and as closures are several had

about year, that focused for but XX on to we're the So -- is closure right net system. intently level XX branch XX the

management we very program needs serves off We digital to major continuing a significant which a efficiencies are serving think And over a as this intently then invest digital in well, enhancement, we needs. as will are that actually insight focused month and kicked well we but is also better team, customer time gain customer We are, into on headcount. technology. as announced leadership marketing

focused on add to on or that across appropriate, about We reducing and want organization have are focused place new every pick replacement and that headcount. you talk up headcount Tom, topic of the We're and there of other the in moving of [ph]. forward. some intently issue we program from metrics a where

Tom Owens

the for you Thank Jennifer. Morning, Good question. Sure.

billion So about we and excess regarding so portfolio balances. quarter, $X.X as Fed securities excess during first said, liquidity, the the averaged the of we

you in in growth is deposit If obviously, grow $X.X We $XXX think portfolio deposits. are you million if driver, did the up just up about quarter. think year-over-year. billion quarter million, surge, surge I $XXX will securities And million. growth deposit increase in billion $X.X million the the by that's were $XXX size about growth the managing deployed to that the first deposit year-over-year, $XXX in we investment We year-over-year in million first And if about you $XXX XX% the the by that look million, at think about portfolio. of of of would We've about securities $XXX LHFI the it forward, about opportunistically of terms and continue going of we year-over-year.

interest your risk what rates, duration will in what managing that balance trying to at do, just the surge up in same deposit happens $XXX really competitive I quarter, economy neighborhood effective when say, rate on the interest million in liquidity, that think while for depending second terms being, the But maintaining and the triangulating and of trying or what between about think assessing profile. will against so, I something are of with deposits. the you to we we end a are you're of time, outlook the

And about to monetary pandemic here noninterest the banking, countercyclical rise rates. asset normalizes Fed have a low with so, competitively as Trustmark, have come want a as that rates sensitivity and historically interest out in of revenue has market We and make we kicked begin mortgage positioned sure think we powerful we the very interest engine with you policy. which to eventually

rates Fed, about sitting today, peer do you And underinvested probably it, billion deployed want net balance trying mean at we we $XX points to on interest the more, annual opportunity that competitive up going the policy, disadvantage. X things. There look monetary at cost $X.X think put normalize in it to interest then enormous. when are begins a think to you And forward well, but -- to we group be picked securities so to that are the basis putting if million and Fed put the income. X you XXX relative as you we if by those and ourselves is duration I But don't on bit. market do about, you opportunity about at can adds we're to that, think if rise to it, the assets, we a

are continue the of would will to summary, size portfolio. are those say -- increase in that considerations. again, our I the So those opportunistically we And the

Duane Dewey

we Jennifer, Did answer answer your -- every part question? we of did

Jennifer Demba

you terms target? of so. Is securities limit a a -- think to I assets there that is there in would

Duane Dewey

think billion. neighborhood numbers, to mean, of looked the a not assets. earning of No, put that this point, I -- we've close limit. at again, historically, XX% in of be in would I $X to And the us round in neighborhood

as low, here But rates said, portfolio, We those yield bit the being, the are mean our want right? the not again, securities tight. terms we increasing the size is a of light run when time Jennifer, quarter. $X.X And for flat, the spreads are I that something of could currently interest are -- the order the at change, $XXX is billion. could in out view that balance little on we you things to second us and in curve see of million you portfolio, -- we I absolutely

start would move you in a by And some are those rapidly. about have have inflection three see direction we that would would We dynamics. when balances. you so on see have We lot now, started would to it, they variables, thought, deposit eye becomes us point thought could of a industry of deploy think an in of folks think and hit attractive, to we some more the I in terms deposit that rollover. that that keeping also Again, more liquidity if

on American nobody Rescue so forth. Plan, from so additional coming the anticipated and the Now necessarily stimulus

diligently month we balances. but each monitor the -- can trends in as those So you imagine,

going of want of well speak, profile. those the something the the effective how day, And part like rate And to much to interest be so duration that's an the end calculation risk to is demonstrate we a -- in effectively how as our much versus do demonstrates we it products of competitive consistent balances asset duration. maintain at shorter to sensitivity book, so back those looks with that want

Jennifer Demba

Thank you.

Operator

Please from question Catherine The your with line Mealor ahead. is Mealor, Ms. next muted? KBW. go is

Catherine Mealor

Good Thanks. Morning.

Duane Dewey

Good Catherine. morning,

Catherine Mealor

me? [Indiscernible]. to on outlook. just I you just growth Can wanted follow-up hear loan your

you a growth year versus last, quarter. this As Rob bit on momentum really were had quarter, loan more last little said cautious this nice but

how so what in you're about curious thinking just And look growth loan like Thanks. could XXXX?

Barry Harvey

Hey, Catherine, I will address is Barry. go and this ahead that.

During funding of construction as QX, other our our was, mentioned, book. had bit a little we growth I in

that we was about we last during where X of to continue of that QX, credits books of put And good year. the some X on those felt for and type

would to throughout anticipate we continue still strong those year. so that And the fundings be

a in seen of bit this the public have growth little quarter. our improvement area We in finance

continue. trend We expect that to

our is low the expected sold. some you pushes can that projects and QX mainly these in us will I forward Then could little going think digits approach are and focused things loan mid which low slide sure growth digits, about delayed to more look expect making a side, being single we that single think than But we've -- more is delay having we the quarter engine alternatives. QX, obviously of quarter. payoffs delayed, existing within it momentum really of are as them a Those looking out still X we coming because seeing this about the categories the activity, making on some bit is how be see could within very is as first out guidance stabilize at I don't a we competitive be are that I as If coming for we but because sure as environment, lot moving the sometimes reason, that C&I we that of through that be to coming We a -- miss good But to opportunities still is we are definitely we the which prudent different X than those deals, putting about we unexpected, -- move process. have are it's that forward, see quarter. didn't payoffs are construction market on that continuing -- we of the permanent for or at a our do we are see guidance. It's see our single as would we out in commercial single more book, and would those on of the things the quarter, on the of them much function a there's into accounted low all reason digits. digits we fourth still year, being just would forecast that guided because scheduled books. back to well tend the happen the we production and think

the rates to in do the -- with once sell it's can permanent permanent as particular business. in the fee, and books the [indiscernible] then in they borrower stabilize -- as as going that and or how what low nice slow in construction to much the it's equity open attractive the product market as the they in. to -- long they if stay long you typically but they'll it market is for As definitely fund -- is cap attractive of because know, remain -- you're And on a is of getting are ready terms area, they it as

we're nature, the as with leave some loan for projects something those or to So single than if us longer then see you to. stay anticipated. them generate of we digits reason to low a But allow little guiding able more stabilization would could to that growth us we're mid-single-digit us that expect

Catherine Mealor

Got it.

toward just think you one on headed where sense. of just that kind reserve reserves did do ratio think the bottom? makes you then you to reserve, will And CECL we're the That Okay. think day you maybe loan how the believe do toward where Do about below falling you headed bottom? we're And about one? how the Or ratio? see

Barry Harvey

And this is then Catherine. Barry

improve. to and our challenge challenge, everybody's forecast continues forecast think to and I Our is

be four we higher we As baseline revert today's four of Moody's you mean forecast the any world quarters we positive know, that's in which in forecast quarters, the terms than and and whether because our unemployment, of the to over national, southern. mean use it quarters a four is in higher

So our that's to to work actually advantage. beginning

out but that and think improve extent with Moody's did of I And two April's to informal, seen our -- they in not same baseline S-X. several over we them the quarters. at their national past or southern the looked drivers. bigger numbers unemployment slightly we've of which coming are And

So moving would a continuing will lesser degree just That to Trustmark, cautiously funded was were much than for be points basis that help on purposes, headwind optimistic it continue one, which forecast toward be debt. be are not where seen improving to previously. that us a we for would reference we’ve XX we day back

the not So intention our obviously, be today versus It's we’re direction. on moving XXX funded XX. debt all that back to at

need Trustmark wants all we to COVID of the how begin more determine we we those manner, controllable can we in loans everybody with. unfolding little And that begin will reserve we in systematic then the also over need release will they're reserves that those don't non-pass should. I to will to occur, additional is we can, If don't, need think added if then upgraded headwind distributed pass as deal will we category that's decide then we unlimited, does those or will in have say a we could But were that things, do see And see we get a we think a I if it, vaccine category. the the qualitative by don't that availability you terms be fully reserves, the as when who another for either we we to and loans. Although economy time, COVID a reserves will to reserve. imagine, And

levels. have combination to previously. things are the two drive and we've continuing a our of us large going Those reserving think it's unemployment are southern both as seen the national not lower improvements that the I well with to that forecast that as in the

moving the And the as patient, to be, and so of and really have some COVID everything releasing the engine forward, qualitative footing, that has on the to from on reserves back and can the as economic lights of and were back the -- side, intend their turned around moderation sure release make which COVID-XX. of retails those all we the long it credits -- restaurants, to we the reserve, we then impacted see we assigned hotels, is specifically by the can solid side the to the forecast economic some eyes those in on are begin in be that on then were most by

Catherine Mealor

helpful. Thank Very [Indiscernible]. you.

Operator

is The go Piper question Sandler. Please Brad with from next ahead. Milsaps

Brad Milsaps

guys. Hey, morning good

Duane Dewey

Brad. Morning, Good

Brad Milsaps

question, but correct, wholesale like for Thanks doesn't retail, of your calculations industry, more understand are Obviously, loan pressure it sale mortgage all to business. taking maybe linked my to the terms back look looks the was on I mix, margin your go different. it my there's wanted quickly was down just across If like expected I in gain than that quarter.

to loan that Just kind as bottom terms if of what you you margin? see close of moved curious a trends getting quarter? in of the kind seeing. into continue we to Are second weakness of you're sale Or gain kind on

Duane Dewey

in the had. quarter first higher mortgage can the ever first any remains is I business business, XX% will needed. quarter first $XXX -- million Thanks. Yes. we've of so But the production as add, in earlier, all, prior start. very noted solid, very Tom than if strong.

strong. being volumes were So still

across year, the be of the in XX% category. overall kind decline I call volumes like and the of last were more industry. forecasting in XX% We're think, of to industry was over toward the volumes. the to the terms down same seeing XX%-ish a year that now end in We

that's closing So quarter decline. the and forward, that of especially volume beyond in XX%-ish are range what expecting moving in we quarters next

point, to we've year, it the We to see like. And percent second a margin do what see of much stabilize visibility the seeing more question, difficult the is for XX into from probably much we other and your gain continuing there. or on your bottom not We any down the dependent it seeing on are decline, necessarily more sure. forecast, lot seen That or one sale tighten factors in to much more more yet. difficult Further are or another in now. quarter it's get still

would that you're comments, Brad? that what any be my -- So economically. further on seeing Is helpful, Tom,

Brad Milsaps

maybe on I just lenders the are I And production great. that's of and flip that, you paid side not know that mean, -- No, Yes. mortgage on profitability.

So based -- if revenue XX%, have to Is your even leverage a be that volumes down faster seem maybe on it lot think to going doesn't a down are a to though going is fair clip. mean expense of you the you're like I going come assessment? at

Duane Dewey

the I say We that's I on think I would right on do mean, that's fair. Yes. button. pay production.

And production expense come range. that in And they included higher down was the proportionately so, the see if come commissions will totals XXXX you normal. we the than look as at first and quarter totals that expense down,

think, expense I right So the yes, it side. on hit you've

Brad Milsaps

seems that still rate, bring efforts like things do it -- a you're Yes. I of a a mean, kind bit to sounds you're -- question, than And you're has mean, high of rate are branch of little those Jennifer's kind enough some done which just Trustmark levers. -- growth you're expense brash think terms run higher down something related less? historically. expense you maybe run is kind like obviously, in to back what I running there of rationalization looking but on to Those working single-digit

Tom Owens

XXXX at the stab take full year-over-year, in will expense, you versus Tom. is you I year it look at If range. at right? single-digit tracking noninterest how we adjusted on low depends this think terms Brad, It that. we So expenses, a look of XXXX are in the

you million. so idea, an give was noninterest $XXX.X expense XXXX, to just year adjusted full So

a X% much be factor. terms is in And remainder origination somewhat increase very continues volume the that expense. sort for mortgage we'll it swing If We year, probably to we excluding The of that year-over-year. commissions that of elevated X% for terms production elevated closer probably expense, so metric X% in remain and year-over-year think adjusted you'd -- to the noninterest depends. of the mortgage origination in to be of

Brad Milsaps

appreciate I helpful. That’s Great. it.

Operator

[Operator ahead. Raymond from with Instructions] The Michael next question James. is Please Rose go

Carl Doirin

Carl Morning, all Michael Good I the the Doirin for loan appreciate is Rose. This growth. color on

growth. Just CRE to also to had guided you roll-offs factor addition lower the in that elevated piggyback believe for pay a question. mentioned that on I you downs loan were to, also the

Just to are where wanted noted wanted -- relative -- in pickup to pay what see, activity. just I see you I mean downs you a to you C&I previously if expected?

Barry Harvey

name. Carl? Is I catch it And quite your didn't

Carl Doirin

Yes.

Barry Harvey

Barry. is this Carl,

some of to funny some QX and QX of to being in pretty for QX, payoffs thing, look will what It's probably that I the were But moved scheduled had close that ones or when that. we down some that say XXXX we XXXX. they're the spot moved on. me of you Let slated of for speak a ones anticipated QX payoff into QX into in for at

paid So as a our out, they're time the the it's able move achieved. a opposed situation where from velocity fluid project of to borrowers a opportunities getting have the to based lease-up do being to especially of upon because time sale, to be stability

from year. surprised by year one get So this into we every moved that do some quarter

We another this forecast to when make the do would around survey part. down uncertainty we are sure we quarter, to unexpected are for payoffs in a to when managers things plan And most trying our leave. because or when they trying leave year or significant who to still that quarterly, customers they scheduled exactly know a our the just forecast year do some to expect relationship We going us. budget number of to project amount the this when for was are for, probably slide do significant of

Our better we if then it know things. for have we relationship production, leave customer. us, understand job had a a spigot if on. don't have we'd will the on up the off we're not only a are limits managers better And of stopping it, plan forecast that of down we we unnecessary they of when bucket, things shutting payoffs And filling that about do think lot because best or them. going good off on terms slowing the if the If we in we we are up from to going end can was can't that information in something when we the are to

a CRE, make every good our we to every what’s that of transpire. with best information possible category are basis. reforecast So a assessing do anticipating to our on folks quarter, the job in We sure quarterly going

is, be us. for X the the as and would And market, a Catherine's permanent so couple they sell to not is heavy move construction before funding where But will depending to it to is actually amount payoff expected more fourth about when Historically, it's X see for because wait they whether on of it payoff they quarter a things things have answer the value QX, of earlier the stabilized. from of whether be, mentioned -- that just it either We quite anticipate about out the while question, your you from scheduled they quarter they can slide get stabilization they to rather we question, still more I do want it's in maximum out that need quarter-to-quarter, were or being and months the or payoffs little a project of just standpoint a QX. what heavier. where on to stage we just do

but we but experienced we payoffs our the than have forecasting with it remainder So I QX for comfortable comfortable year feel and all we does vary, we with think process, volumes in line heavier in feel in of do QX, expected. we those of coming that was reasons, what the

Carl Doirin

color. the for if M&A versus can then, on Thanks I touch it. And I buyback. guess, Got

started the repurchase XQ. program far You so using in

and know looking to of noted you are Just also an you that M&A. terms I M&A, do previously in

Just just buy terms to that, do how of -- should terms just impact expect we going forward? an can and much you M&A interactions share back we and in in of how whether the activity, you calls

Duane Dewey

a Duane. discussion is a in really. this whole start. There's Well, on. world lot There's the amount of I activity going tremendous will activity of M&A and

opportunities approached shapes all are We different lots with and different of of sizes.

and marketplace. in discussion the of there out a lot so And is talk there

on Our M&A really changed. position hasn't

still in region U.S. are of the We very interested Southeast the

We are opportunistic. looking be to

markets. looking are growth new We for

looking as stands that are supplements expertise for today. it our talent We team and

still could in way look range We of acquiring. stated we us finally, to in addition product the categories $XXX look product or one And product We and gain we enhance or or the and that thinking are will looking be would we and our understand, would to additions through and billion be other. important to capabilities $X continue to at then know partners million additional we terms efficiencies for again that for of growth.

the but the market least in have so. to have and or the time saying, very of we terms look considers We the at And buyback, most of program in buyback exposure close conditions, advantage looks is it and our of that available same meets capital active or to place. detailed at of and as on kind at committee do we so a that's available now opportunities. by I'll a do planning then allows, opportunistic different we capital at then buyback market And a million so across still regular basis approved for we we view. allocated way be of have discussions industry, when in that -- our yes, needed time. that And have of lots continue with this $XX.X right take a as And will

Carl Doirin

Pretty All right. Thank for helpful you me. much. very

Operator

over like for This I remarks. concludes to Dewey session. our closing question-and-answer the Duane conference to would turn any back

Duane Dewey

great forward you. week. being quarter. look the of Have call. first our a questions, you we to for the Thank back call and on of We us we again you rest getting for quarter at appreciate joining together the hope second the Thank answered end and

Operator

now presentation. is Thank you attending The conference today’s for concluded.

disconnect. You may now

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