FRME - Earnings call transcript Q2 2018 | First Merchants Corporation

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Operator

Good day and welcome to the First Merchants Corporation Second Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions].

user-controlled our using today. be will slides webcast for We or URL by in dated Slides on First the XXXX, and viewed hyperlink. Relations the Corporation Thursday, visiting instructions Shareholder Merchants XX, webcast Release may be clicking News following noted website the Merchants the July URL by First statements The forward-looking relative outlook. about Corporation may business its make that actual are These do not that forward-looking this subject risk during to meeting statements affect and made all may and uncertainties historical results. other facts materially statements concern statements and forward-looking not sheet to, of Specific but include, limited services balance any are financial the industry, indications or the future regarding income statement. the economy growth statements. releases, that refer actual materially results our press XX-Ks forward-looking and differ could Form Please cause factors concerning to to any XX-Qs from recorded. Please is this conference being note the to to I Mr. like would now conference over turn C. Michael Rechin, and President CEO. go Please ahead.

Michael Rechin

you, conference earnings of XX, Great, to I'll second call ended and and XXXX. period thank everyone, quarter for ended June the XXXX welcome, our Phil, webcast

$X.XX, of Financial increase Financial quarter Officer that yesterday to Second earned income; XXXX evening webcast to the We comments Joining per released that to we XXXX. quarter over were XXXX, presentation Time begin release the in going press of me Quarter at net Officer. second today a are Strong the and on just First Chief end from XX.X% of to my of a earnings increase back a directions our and speaks the the X, Credit Operating slide release are translates will over point and million earnings share at and July titled that material Martin, of Officer, quarter Chief second a Hardwick; cover release. $XX.X Page XX% Chief X:XX Merchants, our Highlights. for The Eastern PM approximately John Phil XX Mark covered contained also

of XXXX. growth and you'll coverage in enjoyed to billion, with markets over We're grew XX%, quarter consistent grew -- organic approximately hear no in covering later as sheet deposit XX.X% loan balance the of sorry $X.X acquisitions and healthy second Our XXXX. detail we've the call year annualized

fairly total continuation interest on of So efficiency Coupled in at healthy us net average I'll quarter. will combined Hardwick. positive XX.XX% X.X% look XX.XX% talking for by detail. ratio, later, a start we moving to with second income our trends length our on greater get on a favorably year Martin and cover all move X.XX% a in John and average fueled the equity grow results we of Produces on for of margin the from forward the and had with return Mark the quarter it's bullet positive returns this strong next about bullet assets return to loan on quality quality first as really point, somewhat points page clean and in behind the

Mark Hardwick

frame. our when value past effectively rate prime loan same XXXX. second basis My quarters that and comments The will increased side first in year-end points during shown from improved loan XXXX. quarter portfolio the on to equaled billion about of fair on and left $XXX the for and X.X% X line total increased quarter quarter first breakdown the has on five accretion And where up Mike. XXXX yields year-end of X.XX%. the XXXX yields XXX have continues portfolio normalized the Slide and over X.XX%, yields, $XXX loans line total Thanks by or Organic since of Slide million loan strong seven quarter totaled X.X% annualized produce growth begin X two on XX assets since X.X% total million points time $X.X loan by XX.X% The the the XXXX. annualized of or our of the of is composition for second in basis

As the continues the bond our half demonstrating sensitivity are loans repricing graph performing. high bank. rate of with our to the be illustrates daily billion of our asset portfolio $X.X variable, XX% On right on Slide X,

the loss Our the as the XXXX of of quarter first equals $X.X portfolio of have long-term during and to by rates the increased yield as stopped. million the quarter been X.XX% yield $XX.X million unrealized

increased it Now $XXX customer non-maturity XXXX growth was over on year-end quarter on XX%. two, from million the on in second and deposits and year-over-year XX% Slide annualized or time in customer deposit Customer one represents XX.X% XX% X XX.X% line represent totaled line the by total and quarter. first the or deposits million an non-maturity of and in annualized $XXX total deposits again X.X% deposits remaining of

X the mentioned, is Slide company. true our a of previously our of mix on deposits strength As

quarter Second XX the totaled basis cost XX points first quarter from XXXX of basis of deposit up points.

results effectively Over the five and Fed points. increase rate points the basis XXX past funds in data XX%. has deposit basis a of quarters, deposits of That have increased increased XX cost our

basis capital into net fair value future. for improvement points, accounted common of Slide of three the are on the ratios well optimal regulatory continue The an XX.XX% capital flexibility of tangible reflects the points. interest regulatory from capitalized we the quarter corporation's definition XX and ratio our risk-based XX total targets first will internal Slide equity ratio our of X.XX accretion the and Our provide margin to on strength basis above believe seven capital increase

higher below mortgage and As totaled XX tax The last call. the compare income over primarily on to were you was that QX, non-interest of prior Slide are communicated XX total below in our Total for interest performed expectations Slide noted XX resulting of expected QX the housing was sale non-interest Non-interest million. inventory $XX.X QX $XX.X at quarter. year performed by loans income margin improvements XXXX. the numbers. now million $XXX,XXX Hedging quarter $XX.X markets points the of net totaled to Gains first in net reform the and XX of attempting slightly and negatively first in conference the and on due planned income basis interest points than and a million little if basis to we less by bottom on margin federal serve. the rate impacted expense quarter in as page, during

Slide as eight, line on over income grew the this. year, second and the of for EPS line totaled proud first of net Mike an time nine, $XX.X line on of call, XX% period of at XXXX highlighted the XX, on kind On same quarter XX, beginning I'm of the increase the Now totaled million. last $X.XX, XX% over and

were to notice earnings trends. the First you attention Thanks portfolio efficiency first the second will Slide the share related increased Merchants power For very the first in core XX% totaling and and strong now Martin of quarter we've what bank, John -- asset had the May from pleasure per XX.X% earnings the looking will dividend for our On On of of per below for continuation time we years two your quarters and can Slide value feel quality here reflective composition XX, share loan book into growth. XX, now discuss reporting like $X.XX clean at an and future. XX, quarter. you tangible we our XX expect are strong ratio my of XXXX the

John Martin

of on the allowance I'll trends coverage. value All updating asset good discuss Slide Beginning afternoon. be right, and review fair in portfolio, thanks quality, Mark, loan and a XX, and provisioning reconciliation summary

a shown this million increasing small the construction I It So from loans commitments than XX% construction as mostly increased seasonal roughly to construction C&I line quarter on $XX other $XXX had linked linked X.X%. the million added slide fundings under and the Combined from utilization to on grew lines had with construction lending. turn were $XXX help XX, I to activity combined chart. sponsor or see on next construction shows two. and show in commitments the robust primary two chart total quarter surge roughly XX%. buy million we'll XX to two with balances In a construction on We drivers million line balance increasing in Slide in acquisition utilization. increase to line finance $XXX the for one fundings outsized rather and an quarter. existing small quarter words, resulted

the during market. As funding non-owner mentioned either or by are to portfolio moving of driven estate the are dynamics portfolio loan phase calls, construction permanent the construction project on bank's in real the the prior occupied

During regulatory line and into non-owner portfolio of we out estate occupied we to real estate reduction secondary continue the remain on saw a shift finishing quarter, and XXX% capital. CRE loans of of the investment real the be and as below the out guidelines balances seen line Then can construction decline concentration loans XXX% $XX market with on million Slide three. to of the by to XX XX,

asset to XX. quality Turning Slide on

classified and after on million loans four, quarter and by line Finishing the assets moving we mentioned, XX-day million on linked and and million was quality ORE estate this and to $XX.X $XX.X bumping ebb $XX.X in basis in total quarter line owned. or other seven, loans down an the line quarter $X.X non-accrual and and delinquent X.X% $XXX decreased This improvement This quarter-to-quarter renegotiated a delinquent by to of the saw point. million, nine at declining declined $XXX,XXX two lines changes on on and in $X.X decrease Mike one for first in loans three $XXX,XXX XX normal or million NPAs are declined and the up real resulted out line points slide million. the respectively. loans flow declined asset $XXX,XXX XX-day As

column $X which in Turning on to there on mentioned resolve $XXX,XXX. the million year $X.X right $XXX,XXX eight far on $XXX,XXX five. million non-accruals, million non-performing with sold down of to dropping in added This seven, ORE reconciles line $X.X for writing titled in as three and million line six XX-day and non-accrual loans line We nine, to $X.X charge-offs well on started XX netted gross with line the QX XXXX delinquencies. we of of From down million Slide a decrease before $XX.X assets. we we in NPAs the line migration added

changes due, past we the we quarter ended $X.X So in XX-days after than restructured better million started.

million in $X.X expense loans $XX allowance to quarter charge-offs Then $X.X in of million which total provision to improvement of charge-offs. by now accretion in in mentioned covered allowance value basis and remains $XXX,XXX four two on asset for to basis XX, the declined and Slide line coverage non-purchase XX, after million grow and to from in points to the is in to Slide quality decline line in allowed in with $XX.X and portfolio. Moving eight quarter three, $XX.X on the of The offset the which loans improvements the net decreased the credit the remains quarter allowance directionally line XXX%. four non-accrual The X.XX%. increase on on the asset improved with as bumping quarter. million at declined coverage consistent loans with to up $X.X the to in million Fair summarizing stands Regulatory stable. $X.X of million adjustments X.XX% healthy, first allowance quickly loans the it Mike million the before classified mostly the and continued points

the led I'm quality pleased with And We quarterly of strong Mike construction good to have it's that I'll would the local say a growth over attention the the our to by I portfolio asset lending. the C&I on and part we just economies. Rechin. of and loan while cycle attention Thanks call national for turn and both keep your focused continue and back

Michael Rechin

Merchants Looking First I'm called going Overview finish remarks Tactics and Thanks on to John. Strategy XX Forward. prepared Page

I'll cover points of then Now and questions. handful take a bullet

manage first and account grow bit growth John with best Changing a retail of viewed the to the that really of closely strategy about trying what us in talks had accounts presence our part have We've the organic Midwest. pleased couple proactive to disciplines banking allowed talked just actually business of which and we're as competitive tactic results on market about some point we using clients. our deposit the mentioned, environment in a we One, so features of degree deliver and kind always the environment replacing do our checking bullet do so back good we're about quarters with just that our to banking core so So little we're is point of commercial here cycle migration bullet optimizing meets year-to-date. a to Job so the expectations two, more

the most with the of So through and our strong on that The accounts and commercial product attraction the and that expectations of to-date. that products revisit role, the the on whether of balance then being relationship produced now just revisited will from retail project a of and well difficult. increases in public the that client means to industry the what have top go mix having in results in basic doing accounts way cost, terms rate are of year of funds talent expectations and XXXX pricing wholesale types everything mom, to so several use remains the all

add in So our deliver to the need a allowed manner us success we've that's atmosphere, work culture the we're company, that to talent been has place in and kind cliff consistent offset we do the of the environment to the the with service the marketplace that what and First acts grow aspires to people an of I Merchants that difficult think as in. the at

impact and as to like we've sponsor business volumes and out and return in the of top We’re a a pleased sheet $X.X speaks asset had the with our June we're on environment colleagues public finance fact we build ourselves. the see balance of distribution clip the loan clients up function underwriting the performance our continue The here combine when expectations businesses. can syndication loan the three our the points numbers full I in that sponsor being go-forward a help in specialty repeatable this point, basis in of it. bullet you with the we have as original point year-to-date All-in is of went benefit Reform, us very have Tax on take while finance a comments space more feel my in that to bullet meeting included base XX going advantage to we've billion. listed healthy we the and of those opportunities seen lesser at for continue And the finance with mature the as that's

how billion had think as active been Mark the some which up some really avenues at anything where M&A XXXX, Senate reminds us we which us. little your since around of testing is around of a and through the XXXX we've In throughout you pretty one as been that bunch view we get regards, XXXX, for a $XX and in it revenue able avenues required to, to -- benefit growth the XXXX but bit to singles calm that reinvest a to any and in event that tangible XXXX planning we alluded Mark that to or last passed year to efficiency just sharper change to delivery when longer be little bubble internal make it’s grow, with to when advantage us just a lot as good of of So using crossing that on has not cycle discussions clip us continue a we that served since terms have was of the to all efficiency efficient good or year-to-date a had billion, me of no of DFAST and delivery take the get of way alluded the stress we that meaningful $XX company. to gave might last things the experience consistent bit been about Bill didn't good company the you and that with can a acquisitions rely around level spoke well us that more and a we've gears your it accomplished projects it so cross comes that from better us a achieve really not the ideas that

year you That's of XXXX had prepared the questions to taking end the comments, we at, where Phil, into we're planning. momentum So queue. of pleased through back half look that if the in we're our my and with forward

Operator

Okay.

session. begin Instructions]. We will the question-and-answer [Operator now

with first from The Sandler Siefers O'Neill. Please go comes question Scott ahead.

Scott Siefers

points question first maybe Mark just was up basis Hey, to about so for margins, X.XX. core the you on the four

So be guess what thoughts right I two performance I shape where margin of the the quarters additional on the all then color deposit extent a in could would to yield just I core hikes next well? than next little the the accretion just quarters number you’re higher given cetera accounting the solid couple can pricing any et just the purchase to five would hear of technically in you one than thought that updated you up less as I anticipate guess but number offer pretty the over be the is to of course your where with still curve, came projects but rate and PAA curious come to of on couple over as it

Mark Hardwick

I $X.X still a a million value and I will each on we is quarter see were that $X.X with $X a at of like million to $XX for fair quarter. a at like plan go-forward good high, run least should it's don't anticipate year million, feel we had $X number, start that we going but we million. continue the creation, feel I basis, million

Scott Siefers

Okay.

Mark Hardwick

in core we income last and re-evaluating really environment it. be accrue don't have at four our to second basis throughout when moving points basis those rates point. should lot the looking extra confident increase of had for we know in And whether more then of benefit will go-forward a risk a but on this we the Ultimately, quarter. interest just a couple betas have points and good the can get June to think continue of to basis in guess feel we I we're stop manage would time which that out net on deposit happens about XX I interest but expansion some will we environment just flat models given on simulations the and see quarter spent our what at the rates we're rate margin, I the the so still a that rising

Scott Siefers

we're could in a I case what's than the look second, next out switch anticipated a the I the $XX million those if so thank came of exclusive fee quarter, as you a look trend about your some to just guys, for noticed you. starting base perfect, guess of gains line, of cumulatively them if I over we historically best and for couple base at And weaker is gears just in would down the the here have second Okay, then I just as little for I the how lines of securities guess quarters? been

Mark Hardwick

I'd saw, slide accounts I net would an question kind would a XX.X grow of an charges of value you taken of -- from business things we steady It’s client that $X I base, The line I XX category in last through positively year might place shows saw had bit think comprised service transactional of model Scott a and was presented so wealth maybe the brokerage to of and more accounts, into the our continue change a probably worth that impactful XXXX. see because Yes, reflect coupled think make the the had this months with more in XXXX alone it’s grow. towards think model and so how XXXX saw that there business where little I client some of XXXX that bit line Yes, floor We of highest comes the think what million more trust way we that that that management leadership day-to-day repetitive come brokerage really are absolute is really think I bully in have a advice think a and mentioned got to off it to business claims of I as months six six through our one. from balance I first client $XXX,XXX a two, a that or number in of revenue continue that are a little will a that acquisitions. is slope weren't year that I in the away the the the little to that bit there all a the about of fee item up, it our of there in change because items because item I our business anticipated. couple the number decided not couple in there as moving of was more a business XXXX you aggregate and that it's an and advisory than

likely we parts feel that to and I in number core are that at of sales. I core absent security of fee those up did, So like wrap kind low will as I short items they're say XX.X be the as

Scott Siefers

maybe sounds grow bar lower And reset perfect. feel little we comfortable of very like to Okay, for quarter you off but a kind it it this the though? of

Michael Rechin

on market that slow in our had other other maybe think activity Yes two activity dozen a of hedges third seen dominant have it's I to slow a a based item transactions the the not in so a there, dozen line a takes clients or had the a we probably second quarter interest dozen XXX quarter, so, far. particularly place we it's quarter, so is we've of in we're the rate somewhat second going kind quarter and what there that and stronger we actively to

I it. feel combination think though as in restart this you about or called the starting spot good the So, we

Scott Siefers

sounds good. you very much. Perfect, guys right. Thank all That

Michael Rechin

welcome. You’re

Operator

ahead. Please Kevin from comes question next the And go Reevey Davidson. with D.A. Okay.

Kevin Reevey

item So in forward income the residential markets? wanted in came that of of income in going lighter expected of fee follow-up think should given light the about to inventory that related given on fact continued particular your assume Scott's than how lack I line inventory, question lack we mortgage to your

Michael Rechin

should that in plan. there we net and quarter inventory to kind so mirror individual at second and availability Columbus to have the capability thoughts of advantage so view offering our had to bit and take producers but Ohio, in would quarter stronger I mortgage business that some little despite income not of entrenched least runs interest if that like track three on an of the feels over he a in the in particular in softening the the we Ohio added the was terms that market Yes, some

do Our the sold that market. level the secondary have throughout we build plan to it as I a for get solid because there. poor growing similar and with the a demand would from some a or kind view which expectation portfolio answer don't question into has last loans Similar of to

Kevin Reevey

And strong trying the in forward? of we and then how moving of pretty light to, to along coverage strength think you to going the non-accruals provisioning reserve ratio, should about

John Martin

Hi Martin. Kevin, back speaking, in can't at what XX your project figure that John estimate we trying is to I really for quarters, it I probably be a I going it’s but growth look think way get the plug would model. charge-off percent Generally model a and that if into then the to portfolio say in eight seat something you look to number and is should a if you're rate would I good were

Operator

Terry Okay. go McEvoy Stephens. The with comes next from question ahead. Please

Terry McEvoy

website there you've month I into afternoon. just whether six two a at reacting the good seeing CDs look moving taking XX CD at all is out that XXX, are demand and think got my Thanks a you and ask and wondering to quick that? for I market Hi just your rate question. savings deposit from the and customers I'm plus reason your customers seeing month within Are promo a a money shift

Michael Rechin

as offensive with a we be definitely And way. Columbus, less in markets more have and our little is have more occurring. our definitely being aggressive interest legacy position we are defensive. Ohio, aggressive a remaining more in market We in migration where in that way, markets, market a are an share to leader rates We're some share

think they view rates I the be in around Fed rapidly variable lowering is the be CDs. we're and products, meeting rate with more interested slowdown product, and interest instead that could to fixed once begins environment rate So start there's the that of rate variable a would that the if goal turn in

more when other So we go direction. flexibility rates the little have a

it's them. real core attractive need this with deposit act that we So products where and today great also rates have balancing a funding very maintain we offensive have to

Terry McEvoy

to the for CRE of question was And then non-owner that a that your John internally occupied conditions reduce loans a follow-up down just or concentration. decision were market function

John Martin

It the former. was

many move that they and come We from there. out either that's to have the what and go market we that bucket that firm, permanent sell as they them construction as predominately portfolio or borrowers projects of our to you're and seeing --

Terry McEvoy

is to other question development construction or connected all there a residential land component you got I've of one Just construction? that is the and increase that commercial land

John Martin

call XAX does It and residential is construction. XAX both the which codes for include

Terry McEvoy

And break the last terms can of you that out in quarter? growth

John Martin

we either construction at a provide although it slide have market, don't Fort front of Wayne get later in or items can the the day. line do acquired say we in it have not the would me. in and residential between those breakout some I of number item newly have have I the include capabilities. line I next and add the significant in as but additional is front don't breakout in two me I construction that do some a concentration

Operator

next from with question Race ahead. go The Nathan comes Okay. Please Jaffrey. Piper

Nathan Race

thinking I you and come you’re mean get of Curious about M&A of this in updated seeing on environment? the to what pace type conversations of the increasing kind opportunities the across opportunities desk, your just how thoughts your is

Michael Rechin

you Third Midwest MB. or the maybe light in Chicago Fifth the I either chain pursue last, about latitude about spoke more I clearance through think more little change down in think there's impact banks larger well there's that if I to trickle green do alternatives alluded and of to of some I since think regulatory a some some some we it's locally think capital to the bit and this M&A do think the clearly down DFAST relative got but the And the I towards a down. trickle

activity, you more folks, get might opportunities digestible quite about our I Midwest are would and our that there you but of in people like get there has like of credit the say customer lever what you changed I those for our into our have would discussions more toward cycle view yet I think bit, We is a magnitude same. the don't we the stays about this think brand conversations. of the volume I the posture them. asked and somewhat knowledge geographies they of are them knowledge that kind increased the but the their as futures our where of think behavior do deep hold talents

Nathan Race

That’s I and one you Mark, provided from $XX if assets cross you apologize it. after for already if in will sneak us impact XXXX? the could I just you've what us billion be Got remind in turbine color could but great XXXX the more

Mark Hardwick

it million would the cross first be of about XX would we if a be $X.X so year then for cycle. quarter, month It's impact the a July XXXX

Operator

The Damon go Okay. ahead. with comes Please next from question KBW. DelMonte

Damon DelMonte

Hey this guys, going how afternoon? is

Michael Rechin

Well Damon. Thanks.

Damon DelMonte

hear, Mike. a number color build build feel do good, might just be do you off On that the there you you coming you could additional little to to expected in any great quarters. think core just, is solid on, is of expenses or item Mark, recurring Good could expense not this or

Mark Hardwick

to gives to force It's a really expect it us the note on execute. core to office sales look number There it's we we a the be back basis. good, need weren't good of to items non-recurring and in go-forward any that really think able

looks of prove what our in place new the wanted we we’re So our acquisitions value post to each feel rate those acquisitions and a accomplished we've what run of like to and great like.

Damon DelMonte

opportunity that in occurred branch great the the of then the that's given some lastly Fort destruction share just happening just kind the and Okay, during seeing Wayne sale quarter. market you market are with gain to

Michael Rechin

Fargo. Wells

Damon DelMonte

Fargo? Is that Wells

Michael Rechin

if markets in term be Yes, commitment feel immediate fact relative help positions to pickup the near they I and comment seen we we to make over us fill like that to their those we've a about any as do a and there's void. should well there don't and intermediate think

to mark as there effort. the maturity go-to-market over nearly what the also is the I our of add with as and joined in as from tried coupled taking of we've we own the We folks that way horse of which advantage think the us really of one strength ought IAB backbone to IAB from using benefit year far brought power our merchants resources throughout what with the

Damon DelMonte

Got it.

on the rate. then Okay, and for lastly one more tax Mark just

guys use? guided a number you is have little last a to something better was quarter that think than I in higher XX.X% bit range

Mark Hardwick

right team I every my one finance number. have is Yes, saying XX.X% of the

Damon DelMonte

right. have. go thank that All That’s you. with I and that We’ll all

Mark Hardwick

I Damon, John answer that now. Terry a he question think had for has Also,

John Martin

residential Yes, quarter. million quarter XX codes I it $XX the residential and the call was in second construction We dig million construction construction. in able had first balances call call in to in for out $XX the balances residential

Operator

question next from Brian FIG The ahead. go comes Partners. Please Martin with Okay.

Brian Martin

get where you on Mark can maybe just John the for of talk term -- just or of are Mike pipeline Mike your pipeline I usually kind or we're I kind the how just for things Hey kind of at here? near-term about getting there loan just gauge the tracking guess update wonder just just longer you

Michael Rechin

which about year so consistent is sheet the of up the of XXXX second earlier what the told at really of we have mortgage over items related has the or half origination X%, of so difficult quarter, two from all or is which mortgage X% like mortgage $XX very the would John of took kind which our other in a about the we've it’s ability with from I an a backlog is point Longer-term our results and tracks approved origination all next and I of quarter about targets business so it's consistent our beginning up The on the answer utilization commensurate goes we growth quarters line which from found I lines quarter million with gave it's kind $XXX the I of the but Martin end talked X% I question on balance all perspective of credit near-term to of grow some loan strength it's be done strong, second year-to-date. have half of measure out call somewhat I X% from that the side commercial of Brian so have is it's the and towards then on X%, it's broad-based the know our first into quarter a ago kind X% portion our loan a viable last higher kind question it equal feel that with just what commercial. think dominant the to within X% that than million up of be is and business

Brian Martin

Okay, that's helpful Mike.

you guess payoffs is this just how or of Just I would than quarters. you've I other anything about kind mean some lower I or payoffs higher standard been your of guess quarter evaluate maybe more this what competitors than there quarter last trending couple

Michael Rechin

disproportionate of in I years, of then very while one loans repayment that. normal had haven't but clients last we you of been we where it's existing had get and with haven't amount those call quarters so fairly had kind and new the over growth seem planned a steady what onboarding client Now of would of we've a as couple to

Brian Martin

that I and of all kind comfortable talked you're Mark near-term right. you the do that to outlook at that all what as maybe to think kind into would the but some the all I Mark shouldn't and more Okay, last the that as for that at And maybe it you guess margin feel outliers? or that into accelerating just like or you're you getting about these No mean margin range a event next thought then the I I get as the guess rate you as you long that's guess your shift from mean much. CDs just increases does momentum whatever to where move I sound expect XX% of of bottom-line bring XX% year get one on you

Mark Hardwick

is great managing us one now our on maintaining the levels XX and two in front deposits. the you an movements cost the one really right I increases minimizing balance what continue maybe or like so, if shift the way in to they'll working. maybe the what CDs I period funding. allow that non-maturity the the in as we pick or that the environment that we're The two month growing managing don't still that’s paying feel next the look at any And act balancing this -- year are the and see about more the and mentioned over so that's three be it’s so we're year, rate up balances previously anticipating of about sheet like We're we

really been to results now it managing time and about we've be pretty our feel proven our strategies I good for far quite So are strong. some so

Brian Martin

Yes.

appreciate the color guys. Thanks. right Okay, all I

Michael Rechin

You’re welcome.

Operator

queue, Rechin back Okay, further this questions Michael the the seeing our any question-and-answer no concludes to in for to session. closing over remarks. I conference like would turn Mr.

Michael Rechin

the Thank questions participation. third and Look to forward than to days the nothing to you, talking roughly Phil. you of now our offer results. great really XX for day. I from appreciation Have other quarter quality to have discuss a

Operator

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

You may now disconnect.

First Merchants (FRME) 26 Jul 182018 Q2 Earnings call transcript