FISI - Earnings call transcript Q4 2017 | Financial Institutions, Inc.

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Operator

Good morning and welcome to the Financial Institutions, Inc. Fourth Quarter 2017 Earnings Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Shelly Doran, Director of Investor Relations. ahead. go Please

Shelly Doran

Officer, thank Providing and President joining for Chief us Chief Good comments you on discussion. Financial and Birmingham; prepared Officer, be Klotzbach. the today's Executive morning, Marty for Kevin call and will

to results joined of forward-looking and and and you historical on uncertainties, variety For detailed to Development Chief the factors yesterday's forward-looking Q&A Safe Kreienberg; SEC available discussion Chief will refer a Officer factors. We a will Grover. risk our relating statements Mike risks, Actual Bill other all description for Corporate earnings Accounting our Counsel, our include to and by Officer, the of may General Today's Harbor forward-looking release they from website, question-and-answer filings, and session, statements. due differ be materially and prepared statements. comments

X-K financial We yesterday's with these Reconciliations intended yesterday I measures is the over a to will as supplement, Form Birmingham. is to today's and financial only measures. as Please the measures XX, non-GAAP provided certain includes measures financial discuss information not GAAP was of an filed for, and release, GAAP which were this also turn to comparable available non-GAAP that accurate website. SEC substitute on and earnings of January CEO, Marty date, note will exhibit now that XXXX. our call President to call in

Marty Birmingham

Financial and to morning and Institutions' earnings you, Thank good welcome conference first Shelly, call.

shareholders information will this community in following team by appropriate and were future calls our information our worked We Act, investment and provide in shareholders. for useful positive our on later call. better the passage fourth to issues rate demonstrate it's than growth this actions call. window We and the deposit to In that the business, time excited to by growth of experienced the reform that will growth XX. interest financial will We topic this in expected, environment. and results quarter the In created limited are the tax XXXX, And year loan challenging to and a tax as our strong analysts; very that the drive strategies, and solid diligently deliver assisted delivered discipline. result to understand to bill reform Kevin a solid diligent continued December EPS of our on higher outlook. potential strategies for implemented details nonpublic our more help of passage host provide hope many the of and we determine responsive during expense outcomes continued existing

and you Businesses backdrop. many call, were to food this announced XXX to $XXX Awards expansion in Southern including long-standing range manufacturing. entrepreneurial the technology, Central a region's culture, processing million from with of understand While in briefly Lakes, more next-generation the first I since Finger regions. our to sector, Western Council wide Economic December, Regional of York, agriculture New than seven to initiative York New in Cuomo's support Governor our more Development awarded will review of XXXX. and In want were the than benefit our is and markets, our footprint Tier, fundamentals the round projects, granted of continue economic sustainability, projects awards

day's we drive We tactics. Buffalo large and long-term The in agriculture/food, greater benefit information the employers a of essential drive government, strategies manufacturing, see because growth college/university, and business, We We the to that well-educated market. believe and Also, realistic are greater regions of committed Rochester paternalistic including and every sustainable an abundance without has together development as business technology, advanced process not-for-profit Northeast located industries, region great continues, and cost of for diverse encouraged a away high within from a development. major by transformation doing innovative, economic this workforce. array brought of and this of Midwest manufacturing science, the to and a market have more. high-tech it data resources with are sectors

in We opportunities also our core see legacy growth markets.

one We great and are in two bank the in the relationships. these number or and serve, of there we most villages is towns value

to have corridor in focus The opportunities do by commercial continues and great leadership We bolstered to geography. resources local to continue be recently Corning-Elmira this to and see on our a reinforcing place business.

available XX% I ongoing year-end encouraged commercial X% stable XXXX. from platform, compared Loans associated to our markets, X% XX grounded accessible, of the increased energized, real community with for expectations XX% growth to quarter over and Total capable moderate and and an am our and from combined and been, small loans in Company's our be fundamental estate, to of opportunities at previous and have are markets delivering disruption the locally continue prospects. because in up Our XXXX. us advantage were commercial This, and September with focused, sustained, December about and as growth. bank business industrial, year-end competitive

key past to we've customers new and attract in months teams our generate new XX previously, made lending we've business. continue As hires shared loan commercial that over the

closed September Our pipeline did XXXX, because in December of the decrease quarter. from very XX, volume to high

However, it strong. is still very

promising. added promising loans theme processors, given their eight production. in process the all closers particularly also our lending mortgage In real in showing X% officers our the and XXXX, with underwriters, of market increased small for Consistent team business very loan to necessary along with the residential Rochester share, expanded and for we Residential Our results. is estate of opportunities Buffalo, Metro fundamental areas remain activities, the fourth quarter. growth

as is support available. and our they become addition, scalable, can business additional lending mortgage loan residential In officers

mortgage loan loan seasonality. in With indicative at saw loan all our officers of we year-end, of pipeline half second pipeline of producing At our our addition XXXX, increase. most fundings the of capacity, the officers in our was given

in volume indirect continues residential our in lending the all Consumer strengthened. have result of As strong expect solid in program X% a and of be business. Used of mortgage aspects XXXX. factors, we quarter, up to values this were line these in car increases loans

consistent that year, stable long and performance to continue. trends. with However, be historical and was the seasonal performance will Portfolio how with strong our normal for it seen expectations remains

a material not some expect it national in sales to of XXXX, improving significantly impact do in signs enough see markets. be new will car market believe We we in decline our but We our pricing areas.

on However, very the who effects pricing. unions moved are muted have by credit little

our diligent December remain return higher year our very will XX, the that to to focused we Nonpublic leveraging will in attractive to as December higher -- September We were X% thresholds prior at disciplined maximize XXXX, at franchise, adapt and and deposit X% compared meet remain than growth. XX, deposits XXXX. tactics business. this deposit and ensure continue to XX, our We on XXXX core

Before in And and time our over programs like our communities activities, understand product operate. access success a in which who Bank's financial we would and initiatives Community Club to Home we communities. through to investments, two low-to-moderate And of directly and our Loan outreach added promote work Officers the across Loan it offerings. Federal and we we They to for Kevin, Home increase Development also income for program First I also to speak loans as products to provide and added footprint. a CRA moment workshops neighborhoods. the customers that will opportunities. XXXX, well federal money XXXX as investments make and strategic Community all rate In charitable literacy opportunities strengthen employees. success our coordinate to supporting communities future Officer turn of about We direction importance the reduce linked Recent income volunteer I and our through educational is in our as providing other tax our with the Development of to and tax periods, reform such relationships

to they was covered action award to by our receive of award our a incentive this one-time will new a program participate we certain More in not took than will for financial be the $XXX I'll associates key will to XXXX. to the XX% now Chief over profit-sharing first be eligible Financial The of With Kevin? programs. and Officer, of an employees in based said, call XXXX overview Klotzbach, results Company's turn and Kevin areas provide our who our outlook on performance. that

Kevin Klotzbach

and cold have million $X.X quarter, million a securities advance of the the $XXX,XXX my margin deferral of the fees quarter results. X.XX% quarter, in with up earlier. Net was Good to and the review Net Marty. fees everyone. of loans. of points the for fourth a apologize X I morning, start so of the you, income the higher than prepayment points I'll was relating from margin financial maintenance up X this basis voice. third fourth-quarter of Thank one the program third impacting the I XXXX. the Positively quarter basis -- fourth quality quarter higher from today on $X.X for in a and was same than bit mortgage-backed quarter period about yield XXXX from million $XX.X the year interest payment of

Our interest basis on In market of from sources. funds the increased yield quarter. X.XX%. earning mix investment higher up assets due securities our X.XX%, average rates, yield loan quarter of X.XX% of from was lower points third cost on our yield to from And our in in X.XX% resulting improved spite the an X.XX%, X to to the funding of

This more average borrowings balances, were than higher which funding, mix short-term low market higher; average of and offset a relatively cost rates. Our carry on public deposit lower. balances were favorable

in points quarter, basis points. higher, up the third point X down quarter accounts Savings point X X basis fourth time XX from were and was funds of cost market money deposits of were Our basis basis XXXX. and

to interest-bearing concert no with the was up cost tend Funds in borrowing or borrowings. short-term long-term demand There rate basis Our in increases. points these of the increase change because rates Federal XX was rate

down group decrease the which when credit quarter. insurance was The a as of program, like at quarter volume of in due advisory bolt-on end the compared income This varies third of based Insurance the type. by completed noninterest the was fees income, received the SDN to primarily due quarter transaction to which and of quarterly to August. Bank's was out in was $XXX,XXX. the about assets in of Robshaw $XXX,XXX to of transaction were compared & investment the Moving significant the annually acquisition point Approximately I on Julian. to dividends income, quarter that the to remainder in driver decline $XXX,XXX on the was increase would third third

very This to employee year-over-year, $XXX,XXX securities and agency a the -- X process year. and of income -- we're non-reoccurring gains to of pleased quarter XX.XX% in and debt auto, the on XXXX focused XX.XX% progress covering for We homeowners, an personal X%. Bank and evolution a owned full and property up on agency in the up hires We a make expense that was on benefit result expense to contingent increase lines loan a and casualty of team. to mortgage for entrepreneurial ratio SDN primarily and as insurance. ratio did life employee recent Noninterest a opportunity proceeds the our experience benefits achieve adjustment officer benefits has salaries Robshaw an remain the for consideration continue offering liability a control efficiency Julian practice. & from focused We a excluding division commercial includes of and opened grow quarter's the

in uptick as first-quarter be program to benefits the resulting for has of $X.X will we our in quarter our and capabilities increased Loan an and third quarter the in quarter experienced there works in advertisement last an loan asset of charge-offs XX portfolios and points, low grow to the loans grew. provision of basis terms an a resulting norm. XXXX We from of basis net is and us pharmaceuticals. campaign. quite million This of and as across basis the quality XX-year downgrades average compared time. the quarter back for the charge-offs to awareness and quarter, the continued points that uptick $XXX,XXX high XXXX, XXXX footprint opportunities and saw to specialty that to up also high been XX a exceptional We in was the add And the rebranding was of also for cost to up promotion year in year. XXXX the for after XXXX ranged in brand fourth a a points. from I was related expense expense in initiative. and average up significant believe the from gear our XX of would reversion XXXX provision the during a some the Between charge-offs, enhanced loss in we us

Our basis to were points, close very XXXX XX net XX-year that charge-offs average.

end. low impacted for points, estimated a XX XX our the at of XX Tax the We During basis basis XX-year points to loans $X.X quarter was same of to net with the Income by XXXX XX the balance net Jobs primarily average. to points liability. tax sheet Act, the due driven to ranged basis period, XX-year by ratio tax total tax ratio year end expense on was Cuts positively the The million nonperforming below and position an again reduction deferred basis XXXX deferred had adjustment points, loan loans from a XXXX. and our revaluation at the nonperforming asset

to took we However, revenue next accelerate providing for to XXXX some December creating minutes the like purposes, a for key in few steps areas. tax now in outlook XX, liability and effectively spend XXXX deductions deferred tax defer XXXX. I'd at our

loan We portfolio. our expect high-single-digit in to low-double-digit total growth

We nonpublic for interest indirect. residential expect commercial in margin within grow to deposits. range and net of a high-single-digit consumer X.X% also We to a at We higher than to mid- X.X%. growth a anticipate lending plan rate

within expense the within noninterest XXXX, totaled is will income range for range and $XX to which will to that incentive ratio $X.X efficiency relatively be is to to costs. $XX to a of some due which XX% million around XX% be security year. nor million XXXX marketing There quarter. expenses, the full will variability gains, of in include $XX healthcare compensation, Noninterest to of million million be expected $X.X at believe We XXXX. timing nonrecurring the in items, compared per in that a our does be note flat totaled expect not any important XXXX; million. or XXXX as We It expectation

turn to we Marty. I'd And be expect range now strategy that goal below loans. our rate will XXXX, to to long-term XX% And a effective continue portion plan for to execution lastly, within be a the Our XX% year. In back of our like every it convert of XXXX securities is tax of to to we into XX%. marketable

Marty Birmingham

to Kevin, our capital questions, an completed few I we thank of for in do and market And equity offer very the observations advantage you conditions In light line and on of XXXX. offering. want before much. opportunities growth markets we open significant a position, favorable our took

grounded line process to low our ratio, will platform, into mortgage the reflected and lead Capital X.XX% with management boosting We risk-weighted business income. low early business transitioning Another higher a the of increased marketable tangible in balance year-end relationships, this positive outcome of loan levels We expanded which low-yield, growth This plenty and is we this capital in cross-sell our long-term support to of which where at wealth added to noninterest opportunity securities risk-weighted XXXX. capacity. higher-yielding, capital Xs lending of subsidiary, have of in bolt-on is residential Increased versus services strategy loans. wealth sheet in also Courier a to management deposit business insurance. our

expanding culture And And further disciplined we this credit administrative during We new presence center to be growth team downtown. our a and our commercial new important relocated lastly, center business. financial delivery to loan our credit Our Buffalo, to in continue lending teams on growth. market. added very in support focused of Rochester this energized professionals downtown to our solution regional strong we opened time

rights possibilities look with and we strategic it the year all on for a comprising from has that line goals commitment in of the and plus branding on to a now foundation growth. lighting branch, located prepared signage concludes the lease especially for at letters, landing major terrific downtown building increased store illuminated Five -- was top are four ready over And and are point, forward in signs key future initiatives this while to we given XX-foot-tall airport XX-story all and the this and patterns, excitement Overall, operator, a this us. I XXXX building, signs and and Our Rochester. sky market, our opportunities for floors, visibility visible our Bank the sides and at has our remarks, Star progress X.X obtained. new open this questions. presence us, expressways made to for

Operator

Instructions]. [Operator

question ahead. of Fenech Group. comes first Hovde The go from Please Joe

Joe Fenech

questions. I have few a

it last My have loan was significantly you while your of at exceeded Kevin, a loan guys, XX%. guidance growth guys the the guidance, low-double-digit obviously for really to this on question, is now, though, for appreciate I for the year. growth, been sort that's strong high-single-digit First growth that. for and year

might So prudent why the do you slow feel there just it's more on to Or loan the conservative XXXX? are growth be reasons guidance? think you specific from

Marty Birmingham

wave of is impact that that market this as And of speaking combinations, opportunity in large loan translated, think banks. an strategic for we've first attracting in I performance. disruption -- from the did the banks the of that -- officers attracted, to talked in we we've having terms creating talent described our for disruption coming XXXX, strong have was we've we specifically first smaller form in the of year Joe, the Marty together us, And benefit; commercial in an full our talent. benefited

from think did will bank. go that rate way, quick we these have So that we business the benefit coming growth their opportunities cycled and do opportunities been the forward; they our moderate as through commercial at to in and

Joe Fenech

rough want us And helpful. fee that's switching Marty, income. strategy? have deals, you to bolster second. that you gears M&A Is a just Can The looked Okay, to on update few past the for where then stay you considerations? geography, focused if bank whole consider And size, parameters some would in of of there in be deal? terms would what your Or pricing and you M&A M&A? so, terms traditional all a of

Marty Birmingham

are our have the the and marketplace process worked the growth goals through our to That on initiatives and in we identified we strategies opportunities come opportunities, converting priorities. being And so in. in those strategic And -- more a organic our to speak, surface risk we're that's said, and and in and and shareholders. or a they whole the think, focused team. we accordingly. strategic strategic in are extent plan of realistic and us, priorities the comprehensive less the and fee-based organic front bank opportunities us capabilities act the would being funnel we in in plans of to our as geographic business right our front we've to take of been they of our control; have in consistent either long-term, up footprint the ones we in otherwise, door, document that hard right activities, our for form the that over very of end And Joe, driving front grounded those To opportunities operating the the that those. -- our relative with look at open plan and because we're very

Joe Fenech

Okay, that's helpful.

Marty Birmingham

bank know, this years. the very, is upstate XX over York modest the I Joe, -- last in why New as you we're answered whole very acquisition the And I has question did. way been

Joe Fenech

terms the were in you've it's was the get Does investment that's is in that do. you guys loan that maybe year, overall and this that are maybe you in in so mix would to XX%. on helps up, been margin, keep as embedded, portfolio loaned to for you to speaking? versus side, Kevin, more with shifting securities, margin and the guidance very flat you of continue ratio, year, the basically remain Continue earning assets And The mix Got deposit gave? sort you terms to of this steady. now generally get said and what at you. time, the playbook also positive year-over-year, of of loan shift sitting -- been that earning sub-XX% asset Last a you the to

Kevin Klotzbach

loan in will securities we've historically, XXXX securities portfolio. occurring there not would right. have the our towards in an couple held portfolio and in that I The last mix we over portfolio. the emphasis You're say be increased constant, is absolutely shift reinvesting as years, the

So we'll little dramatic more the bit a actually see securities portfolio. decline in

produce the to continue will at we indicated. or We about levels loans, hopefully,

Joe Fenech

we longer-term, asset base? the securities bottom out earning do terms Kevin, see of in where a target, percentage as And have a you rough of

Kevin Klotzbach

we We have lower significantly today. target, would do are although not it say than specific I where a that is

Joe Fenech

you. Got

over Okay. infrastructure, of terms people, the last guys, few And in had investment you some years then, spend significant technology.

bit horizon opening about that your the talked investment terms or in terms Anything does that slow of does How You years? in for meaningful that down on XXXX? comments. to big look this year in a of the past relative picture few spend,

Marty Birmingham

the would represented of administrative few capability it past Relative be moderating that years, I of It's A center there and I from said, those. IT the perspective, moderating, are it really opportunistic part strategically part be the our incremental bolstering would Joe. a redundancy function. from And our of and enhancing there. relocation overall, to XXXX, the personnel support IT suggest would and that to the that should extent hires, consider to of investment suggest as should stability I our But, we play significant in of Rochester. forward investment in

Joe Fenech

say, in Are Marty, Banks in And general, you good last that Okay. you during holding How are then been. to all positive Or underwriting holding most growing you starting times? the call with underwriting stretch are competitors standards, opened how you standards part, one operate up by the the that for are would seeing me. markets in? the these up? at has for investment the and in state your comments about well. market

Marty Birmingham

underwriting has have slow the moderate our significant growth, approach. banking industry boom/bust an of is relatively perspective. been in curtailment the Because bank and grounded New that lot reality a economy Part over of cycles is up. conservative to doesn't underwriting upstate followed reason -- last to observation continue hold growth and seen fact the of the underwriting been pretty My by we that approach the York have growth conservative the of tendency XX standards the from to has stable years haven't M&A of in in generally the that market

Operator

Twerdahl Sandler ahead. Alex go question O'Neill. comes next of Please The from

Alex Twerdahl

Kevin, XXXX. NIM costs maybe initiatives bit if First guidance you off, assuming now. what you provided, deposit And on update you right us wondering you a was any talk just throughout have that to for in could are that deposits I little grow

Marty Birmingham

relative platform ability insurance from the evolve community services. capable branding exclusively the to of insurance tied a comments, one hard and includes we very marketing. to that one on, and provide worked our strong that bank to year expenses our Kevin's to for by Alex, did in to increased supplemented a and things, guidance bank the strong comment we've One includes management and was community that wealth And our

So we are activities to across product doing to and support offering drive incremental capabilities. branding some awareness opportunities and our

So beyond that, Kevin?

Kevin Klotzbach

the we a year, cycle probably as you the guidance, and could on things. On the twice in a interest correspondingly the Alex, what lower With one retail to NIM, One periods the lower see it has in overnight heavier funds in better between relatively remarks margin. correlation dynamic of deposits, prepared is and couple rates of rising you particular, margin. has been public today seen that deposits thus pressure oscillation the between of recall. far on borrowings cost And that we've our respect time through modest. cost, Obviously

pick of to bit. into into a little projections have go XXXX. as that some expect our We we that embedded forward up And we

Alex Twerdahl

the great. awards, year. the back of parts, more -- that just half you then remind XXXX? a that maybe can moving more of bit bit great expense year. so quarter some are Can first quarter-to-quarter? But is the for of gave, us guidance million the Kevin, to in on you little in hit the of a million; little And the a $XXX full all quarter-to-quarter us, the Okay, that you color expectations just you self-insure, Specifically $XX that's the benefits then I guys give know bit little that And expenses? for just elevated will $XX

Kevin Klotzbach

tend You're or the again do XXXX. year -- that we and be They absolutely saw year, right benefits. medical to respect fourth-quarter-heavy, with to last this

rollout the identified employees. half specifically of the second our the for program haven't We of

quarter. tell But first first can't occurred or you the in quarter I occur first portion what that So occur the of when will that in quarter, in. -- that might the

Alex Twerdahl

then Okay, little great. question, color. a just maybe more And a bit final

that? anything quarter. You the Is rare in to of had during a C&I bit there a charge-offs blip little

Marty Birmingham

actions These we worked previous process. quarters. talked are that the about We've the you our were what to and to have through through in these final resolution, put actually

then Thematically, consistent a our very a strong credit, we historic portfolio the see I through. don't was we with credit, smaller one So, a performing -- they performance. had larger cycled and way, continue and in to

Operator

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

Damon DelMonte

a that? bit my a just the first for is do is So provision. you rate? to guidance Should loss around growth? put reasonable -- could loan this something similar loan dealing little higher with we little year's the something last year level of expect expectations this level Or question, you than sustained the run Kevin, a kind think of because

Kevin Klotzbach

bit a an and that quite norm. talked a We fact the was reversion performance, about respect to XXXX the credit XXXX was outlier with to

about We stay the that talked norm within expect we prepared that that we'll in remarks.

credit losses. therefore, expect we'll and We total applied also that then, see and higher provisioning those percentages be higher will to a base; higher

Damon DelMonte

you, with the have, public deposit to that guys helpful. And you then you could amount remind balances are? regards right, deposits total of public what that's okay. All Got the us

Kevin Klotzbach

million $X drops it $X point, cycles. just between I up at down At million. And close to very we end got It out oscillates We number, this one capped peak billion, it. to close $XXX $XXX and and Rough of trough. about about year. the billion down think $XXX million under the between other

Damon DelMonte

the how the municipalities is And that villages versus relationships? the bid or towns operational actual accounts and of much with

Kevin Klotzbach

Approximately million to a versus ends the $XX typically being product, $XX type million bid. remainder not is bid up

Damon DelMonte

of a and And this, just is marketing touched right, some you there campaign the more the now, on question, happening a have perspective rebranding or on I like last guess from of guys material -- All and that's may going helpful. this? that's that's less but relocation whole Okay. is as my right the with operations? then something Or that more

Marty Birmingham

model. observed, been I overall our against enhancing operating plan and we've mentioned As and executing you've our

very that driving known. it had where been we've platform we're community advantage strong forward, taking markets we've Bank as bank of and And well so a Star not Five bringing to new

that new command existing services we've wealth And and well, obviously supplemented the doesn't model strong in through base insurance new. we're that As in it's totally management customer a markets, that business. our our have

than are with opportunity very terms of Rochester been a all measured after connects very billion deposit we in and $XX market of taking very consistent share, brand market we've the those is a the recognition obviously the So that to modest increased FDIC have dots. go that and by in And trying the themes to market important Company advantage as numbers, way less where market, we in X%. Buffalo

Operator

Please from go question Matthew Jaffray. ahead. of Piper Breese comes The next

Matthew Breese

the Just deposit touching extent as a limit on seeing you into the product, more, you use on And to securities allowing book, municipal shrink more to size it portfolio? the municipal the of your mix follow-up, if loans? those success you little then does shift MULOC are given bit deposits that doesn't, which a the can

Kevin Klotzbach

answer pledging second the don't the -- are seeing portfolio. first, will we To this for year part in loan that our decrease security I And course requirements over the embracing of MULOC more option. customers the deposit to ability the believe or next the inhibit municipal

Matthew Breese

you security extent to what do you And portfolio, can then? the shrink think Okay.

Kevin Klotzbach

mature a a where As will lower significantly currently not do target be into right good We I in it mentioned the earlier, we is. now. than And reinvested don't is securities majority that of have securities. believe XXXX it

Matthew Breese

the And five yield the then year. shape sizable in the a of thinking just about obviously the Okay. curve, XX backup and

products; been competed in you've terms yields Just some where to and, increased of have those of able away. where pass that curious conversely, been on

Kevin Klotzbach

a loan I'll an to XX-year of rates or for loan We you, the fixed in achieve up lockstepped I classic mortgage, point able we And a with we're to steepening think backed example but as really that the the of we the XX-year mortgage which the haven't seen books yet. the lot And is yield watches. curve yields, XX-year, out rate the that to you haven't is really know, as X.XX%. don't seen through The fixed on example, increase everybody rate X%. put pop

and so the bit. we're getting obviously bit be compression lagging bit little little we're or is what one the yield So a sensed relative correlation of example Treasury seems that of tightening the to a And curve loans, would little a be to curve. where far getting to I've

So, on more to come that.

I little go think we forward. bit as more correlation we'll a see

Matthew Breese

you year? on your mortgage income sticking and or it, million okay. to contribute extent the just us a this what might next year that just then to Got capabilities, noninterest book, of sense the give -- resi And $XX can secondary

Kevin Klotzbach

you MLOs. As year. be our we added a hired government the complete suite the our mortgage and market that last programs. to secondary of executive to and/or production do opportunities, developed a residential eight We developing manage substantially sale capability know, whether We're midst pipeline of in transactions activities. also private We've professional

it but developed in year. it, more into well be later the will we're So

Operator

This concludes back remarks. would President our turn for session. Officer, conference I to to like and the any closing Executive over question-and-answer Birmingham, Marty Chief

Marty Birmingham

much. quarters. We'll you Thank to this the we opportunity your outlook for about forward talk thank operator, much to our quarter, on the forward continue of XXXX. key as in several want the parts to very had as I in on you morning. business very next dialogue our fourth and we to assistance go Well well participants look build all this thank as

Operator

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

disconnect. may You now

Financial Institutions (FISI) 30 Jan 182017 Q4 Earnings call transcript