SFNC - Earnings call transcript Q2 2019 | Simmons First National Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Simmons First National Corporation Second Quarter 2019 Earnings Conference Call. [Operator Instructions] Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this call is being recorded.

It is now my pleasure to introduce Mr. Steve Massanelli. sir. ahead, go Please

Steve Massanelli

Simmons thank name joining I is Officer Officer Chief and earnings serve second call. Administrative at Relations Investor My Steve and National you morning Corporation. our for quarter as First Good Massanelli and

Makris, today Division; Controller bank Executive Garner, Officer; and me Matt of wholly-owned Southeast Accounting Chief of Barry Officer; Chief Joining Ledbetter, Chairman Chairman Officer; Simmons and our Fehlman, CEO Financial Chief President Reddin, of subsidiary; President George are Enterprise. and David and Bob Marty Casteel, our Bank, Banking

information purpose data our call The this the this is of release for earnings by to morning in discuss Company outlook the to discuss future. Company's and the and issued provided the quarterly

a Q&A session. begin will We by with prepared followed comments,

and are the provide from mode. at invited a We posted Q&A session. equity to in session investors on call have the will on be A research of prepared other call, website the institutional conference in Investor the that All this participate simmonsbank.com, Relations including and Q&A Company our our our today's remarks listen-only under transcript page. in firms guests analysts

call, forward-looking plans, expectations, remind future statements forward-looking projections variety factors. make about our a of goals, materially I results we you projected and today's outlook. could actual the in will estimates, that differ statements those During from due to

no press these update this most description and of some The is in filings or statements release earnings recent contained of any XX-K on concerning factors certain to contained assumes other Report morning. forward-looking Form information our the or of revise the Additional risk issued information. section Company in without Annual information limitation, our obligation our SEC forward-looking factors including our

in Please available X-K the will of this we contained Relations that on metrics certain to note current to on page presentation, the investors. our we Form at report and believe SEC this our Investor GAAP morning financial of are reconciliations with provide our metrics filed website useful information non-GAAP in non-GAAP simmonsbank.com. the Lastly, discuss

over George call now to Makris. the I'll turn

George Makris

Steve X.X% our earlier to $XX.X Diluted to morning, per XXXX, income second in you, non-core the earnings and release million issued net we share call. of increase reported an million the quarter same quarter. quarter last $X.X of after-tax quarter of In second Thank the this quarter our million were $X $X.XX welcome conference in of for compared for the items. or earnings year. were Included earnings net second press

and $X.X costs relocation offices. We Little $X.X million, million million retirement right-sizing cost had $X.X related early related of to mainly expenses merger Rock branch of the corporate of program our of

the Excluding year. million over the in core quarter of respectively per quarter $XX.X share and were company's billion core of and $XX.X items, were $X.XX these earnings diluted earnings second increases the the $X.XX, last impact same

were $XX.X June Total billion assets XX. at

return Our return average was and the assets on was for $X.XX%. core our on assets second X.XX%, quarter average

Our was efficiency XX%. ratio

bank large the Our real billion the from loan was completed organic increase increase the Approximately $XXX end $X $XX.X billion loan April, estate increase an at portfolio. million $X.X our of in in while the due merger was quarter billion, last was growth, of of balance of primarily the quarter. to

the million first million at we and to $XXX end to loans define the quarter. which ready close, end $XXX pipeline, loan as of Our compared approved was the quarter the at of

result deposit is and construction and of heavily billion CRE was last quarter. end and of $XXX the the development increase concentration of our due Reliance the a organic Reliance of at were which XXX%, was the our increase XX our loans to growth. primarily $X.X loans billion Total addition in of quarter. The $X.X loans. consolidated CRE from portfolio, addition was the $XX.X concentrated deposits concentration On of customers was an since June of increase basis, million the at of XXX% was million,

our very growth deposits to pleased we as be continue in We relationship continue core with banking. to emphasize

Our in income of accretion loans amount, mark yield XX% $X.X $XXX.X $XX.X the Included net million. was Of interest for XX% second recognized was credit on the mark million. was million quarter interest or was this million, equitable related. related $X.X and or acquired income interest

X.XX% basis second to mark which credit the XX was Our X.XX% for net excludes interest X.XX% GAAP core core for basis XX margin, margin The basis all margin of March accretion the quarter. XX. net interest previous accretion and the mark of at net point quarter interest quarter compared compared Company's The was accretion. between to X.XX% difference XX points points and interest includes for

is interest increase net flat, which balance increase costs core in our income. in consistent with margin essentially a planned remained interest with similar deposit Our

million income Our the second million, $XX an $X to compared year. non-interest same of for quarter the was increase last approximately period

was cap offset same increase Amendment, As securities the the compared XXXX. of This million. million in XXXX, July the Durbin by sale card in became when of $X.X to on was period a in quarter established the gain debit fees in subject for decrease X, the resulting to second interchange reduction XXXX, by $X.X an rate in of we the mostly

the over the technology was compared with million, last million Consistent quarter quarter only of period with the non-interest expense $X.X $XX.X software represented prior increased Non-interest second Core the for costs increase was same XXXX. year. of million. which for in approximately second quarter $XXX.X an quarter's when $XXX,XXX, the expense and

technology banking on Our generation next schedule. is progressing Initiative

expenditures incremental quarter this the to Our related during IT were second primarily initiative.

salaries throughout that XXXX. into early qualified associates expenses offered As contributed to option related and in retirement half The during in quarter NGB previously first the and the to year decline this of expect we the first benefit expense incremental discussed, more employee to quarter.

savings for loan an coverage. allowance $XXX was discount ongoing At program. $XX loans losses allowance net We loan $XX.X million million XXth, for XXXX, million loans. total of The acquired June additional a expect was the $X.X mark million, of this annual from for million legacy of with $X for

the increase large non-performing the other to end of made non-performing which of sale. first real bank second primarily acquired quarter, the estate million our owned $XX.X assets, due in $X.X quarter. the million, was assets $X.X from from for an were At non-performing and up increase in million of branches bank. include held This in loans closed $XX.X is million $XX.X balance million The

Our were total loan million. XX for loans was annualized points. net charge-off's $X.X The provision basis loss

capital very position remains Our strong.

common XX, June stockholders' $X.X As of billion. was equity XXXX,

was of $XX.XX, book Our year. per last share increase $X.X from an value

common book an increase share was $X.X $XX.XX, of of The While per XX. our tangible ratio value tangible equity June was XX.X%.

Best our capital great was recognized And and ratio top to Work June proud Forbes risk-based total Tennessee Tier $XX.X, again X.X%. recognized Arkansas. this customer and place Simmons as was leverage the Recently, We're type of work of one as Our XX of once X of experience. business of by the making one in recognition while in to by was as of Simmons objectives was extremely corporate Place Arkansas. providing our a it Arkansas validates excellent banks

the vibrant also offices, we're corporate be completed move Rivermarket an anchor Rock downtown. new to Little in of our We where area to proud

real our to manage we estate In portfolios. construction commercial and in continue will the loan concentrations near-term,

on deeper relationships Our developing with emphasis be customers. will our

track, throughout in M&A our relationships, and explore our of as on of the technology And would footprint. coverage first half prepare we continue the XXXX which enhance updated into strategic we current remainder NGB XXXX. initiative Our to continues introduce applications to

from the take the comments. and the questions. analyst This please ask on for instructions come We'll concludes investors. now operator open our research and review I'll prepared questions call the our to institutional back line and

Operator

comes first the our you. from -- [Operator KBW with Gailey question with Instruction] KBW. And Gailey Thank of Brady line Brady

open. now is line Your

Brady Gailey

early we start conversion with and for at I the maybe have coming non-recurring with roughly you Reliance it's of program. retirement from closed the kind When other you charges. million know this has quarter been the acquisition that's $X.X savings -- expense can So of noisy base, the look in done, some the

half you year, how towards this the base expense back do you As quarterly the will think look trend? of

George Makris

Okay. May that first. Yeah. I'll take

we it at As of most saves We work the We and in early the on cost all time. were convert same bank those able process. in quarter. you mentioned, we closed get to the did because Reliance the early merged

So this we most to quarter. do that change of get

you pieces quarter. said, Reliance moving for fourth going several in Our guidance the the you piece forward coming there's moving through, as we're have first as

in savings. retirement an NGB we Yeah, have from increase early some as forward process. it's the been move You our offset of by

for or level the that maintain year balance target of on less would would be Our million basis be to $XXX the of quarterly the our target. a expanse

we right that's now, working So level target say. to our we're that, would going below but be

Brady Gailey

And quarter, we X%. then, of amount reducing loan growth the expected kind about to talked down of last

year the little think or If and year-to-date, you that right around this guys about better to growth you there for than loan do the kind still that? a way possibility done you've right a at could look you're of that level is X% what X%

George Makris

better can George. Brady, this There do than we is a that. is always possibility

As loan healthy. you is very our notice, still pipeline

So we're many CRE Reliance just we in as that originating on our and loans concentration. It portfolio those lot still Also heavily was loans. remind how depends the yielding a of books, of keep pay-offs you early manage we on low credits. really new concentrated CRE the

through several than other working particular the are no that had relationship of those now, credits management bank with we the And loan. really

the depends here translates continue couple CRE manage at have to on Matt with us and may will loan other we that is just net sitting business. Whoever bank, substantial we into loan new growth So particularly Reddin generate portfolio. the how comments. he

Matt Reddin

those selling Yeah, strategy. same where seeing kind but and we we your managing with kind are not loans where customers volume all of existing saw, down CRE care and of loan mean, our about Brady. of it's the right. our talk exactly that correspondent taking concentrations we volume group That's relationship increase we're we're I opportunities, an

So customers may we're that CRE concentration our our we with core selling continue make -- to purposes. from to down those be going for loans

on you growth, on quarter's in loan But also because happened the this point warehouse what's I'll the in our environment growth side. also good mortgage had right mortgage we

So and to that our that contributed up. started portfolio ag also fund to

seasonality you bolstered right loan growth. of things that couple from that So also say range X% Can't a now.

Brady Gailey

on know me on potentially I year. getting M&A. you from deal talked the one year effort closed where around getting to announce finally then next and and And end update close you before deal CECL to that Okay. M&A on of point had We're kind more can front? one this year. about with that mess and guys have close you announced it Any before a just

George Makris

but in partners. what We'd little In we our share as would merger think Well, ratio, our the footprint. to be map. has some like a has we active changed partner at We proven current when market look are to low geographies, coverage loan footprint. to current has like strategy, lot There deposit that really increase We'd increase our you in a mentioned our before who we're spaces key in our blank like great of have with still a gatherer. discussions deposit bit. relatively

concentrations have CECL have And year. year. then, to we provision the of CRE manage would us certainly better. little helps effect a we this Certainly to on that the next income I'm transaction year a sheet so able math to this just optimistic that versus that be still balance statement adjustment, like a be a beneficial might based close the one-time our lower

So to to to do bring still desire we that. we're doing all our It's can fruition. that great

Brady Gailey

Thanks, All right. guys. Great.

George Makris

Brady. Thanks,

Operator

the Thank question from with you. of And Sandler line O'Neill. our Scouten Stephen comes next

open. now is line Your

Stephen Scouten

of take I'm on that with the basis else base, Reliance to maybe saves allowed curious, inclusion. there to cuts What there just from that beyond allowed note improvement? kind Reliance. beyond beyond the quarter-over-quarter early meaningful the expense even that for anything Were cost other down guys you and a expenses core going to retirement, back

George Makris

that a internal that, of grown our and technology. to designed We is program year-to-date. back conversions mentioned had I'll acquisition. Well, that I that, sort lag is on through as through office And before gain of NGB we efficiencies start think we've lot

the we've So not not And but capability hiring, facing, going things quite that continue technology new as have that slack bit frozen give a but to that recognized take grow. I of is are internally. to some we new we customer up is think of us happened what's

our grown, year So grown, This we've back this people. the office. advantage taken we've we've new added technology for we've we've as of that put place past, in as in

applications to quarter. those capabilities had hesitate that similar expect be great you what a result do the would with new deal will would in that third I thoughts. to we expense it forward. might because control But the going we're Bob, have our learning ultimate So, say of some say another just internally. be, to I

Bob Fehlman

company. were a trying that. way figure some we or showed other out billion a larger I our billion and that the if one We're look more new Just of through echo of things this $XX I plus just $XX so, to item, quarter starting all And to back just and into think year George the bank of company you a ago said. plus mature

Stephen Scouten

into if for then maybe NIM, in was material accretion Core My you million, think? accretion potentially cuts there's And what there. we $XXX NIM, be Great. if to moving then any thoughts higher. thinking that light XXXX, there'll get Okay. the the Can flat of will million guidance NIM, give around us guess some about expectations a relatively as of is especially guess, any on I changes rate forward forward? $XXX kind be, And especially bit you changes

George Makris

about talked NIM be that the say Well, the roughly X think you this, points. large to estimated I of the on basis effect we quarter, I'll was that if and just portfolio recall, last

probably subtracting without margin. $XXX increase which an good, at Reliance, equation, NIM right million So is that that the in we very are shows from our

yielding will Reliance NIM that bank with portfolio replace to those of loans weigh higher them loans. and The until continue of manage the on out low yielding we some

good $XXX think to accretion. million, guidance hear what Bob let this million I'm going year. rest still that of has he we the to $XXX about to for So talk the anxious say. I'm is

Bob Fehlman

high an this number a We pretty Yeah. obviously did quarter.

it of is and to the Reliance acquisitions. Some related other

is loans was George said, as How calls there credit portfolio, had and a related lower related of Reliance and quality of their so on As did is interest rate break mark those much loan lot we interest this that. out it but in to meetings mentioned excellent that rate to we plan in were larger how some rates to our and credit? a -- mark quarter. much

the we like to is look it So going interest bond. balance credit to accretion as at just than of related, And get of just as at our true, the we're on to obviously -- some we mark this, used allowance had to mark, a some yields we rate, reinvest build that, The the of you it is those. better was this provision. that's expect the or

balance these or about million so So this or sorry, accretion, based are for the of scheduled about had billion as Million of the the million pay quarter on our for we $XX year. the it's $XX.X projection billion in outs $XX our [ph] balance year.

there. that number in amount scheduled minimum Now, at there the and never quarter, we have it's There's schedule would in been be. but the a expect it -- pay-offs be migration means to a that's would going to

amount So billion, million for balance a billion our scheduled year. [ph], is the of the about $XX again, or $XX

have of from those year giving what Next projections to in and we so we till we wouldn't those when comes year, year, always till end don't the then. down, be comfortable the it happened has get second pay-offs know now

Stephen Scouten

speaking to? change meaningful you're decline than don't other normal to I expect that any CECL And from think Okay. in the particular number

Bob Fehlman

Yeah.

interest as or booked a growth, will the mark build will we've to you out not For related the about double credit you'll been talked there But the that you there the remove allowance. these technically same has are loans be the CECL, or mark Only rate impaired as get loans. way several credit times, when our credit the to loans. deteriorated or accretion

is very small number for that Simmons. So

just we going because schedule as lower might basically. be change don't banks accretion for going can impaired pay-offs will because other you differently they So loans big next see into like that account year. afford forward that some But our of a normal expect

George Makris

provision on the comes point is that loans think we not when because already will to I building will here be revenue, in based provision be as Stephen migrated we a that there. out accretion though --

to a expect to been in would little hit we you've that bottom So more see past. seeing of the used than line the

Bob Fehlman

XXXX. in Beginning

George Makris

right. That's

Operator

you. Thank from comes Raymond right. of Feaster next All question with David the our James. And line

is line Your now open.

David Feaster

congratulations quarter, impressive there. Hey,

Just wanted NIM to the question. follow up on

assuming XX you your could that? guidance. margin? remind a the core NIM your on what cut the you're basis for reiterating point us, impact expectations are rate So cuts in Are you any And of

George Makris

XX bit about talking the a that Well, quite XX we've days. over been last to

objective cost is manage with ability deposit our raise to our to Our along revenue. still

deposit costs to expect We go down.

expect pricing Associated have pressure yield. the during of a with honestly, a quite bit of balance our we on still quite portfolio are year we our little opportunity market that, than loan of the But that bit loan rates in substantially lower from rate. current

costs that's models loan able we've taken on equally balance deposit maintain our So to believe still we a and be objective going NIM several and goal. and our And think, an current pressure in look we're and at to rate. the that's achievable the

David Feaster

Okay.

are cuts if many how and there still in So so? assuming you rate

George Makris

we we're rate in of -- assuming that right here end Well, one would cut have And July. the be -- at now. June

Bob Fehlman

it we plug management in were see it intervention, our to NIM. will points X through, basis in it our we either portfolio plug some when the model, offsetting two, points basis would said, has and model David, if no George We run there's believe as into points straight , deposits; probably you opportunities just one, X X basis let with the opportunities. loan repricing to declined and with some

to So loan if position just sheet we portfolio because right of balance comfortable. slightly maintain, our of We'll able improve, the not feel be now.

David Feaster

loans side. be those How run even expecting of And that helpful. real a sale then quickly you you That's you in portfolio? potential the Okay. interested about Reliance or a to you talked are on got off non-core some from would estate

George Makris

Well, we that consider portfolio. always to manage

expect also early but potential we're savings. year, this -- to several pay-off approaching loan So the we

relationship loans. concentration They and quality a increase will because big the just are have the have haircut a take yield. they on not sale, CRE They low other no bank. excellent with these We our loan

we if a the types look marketplace in inventory, take opportunities have you of and So will, from lending. at other we

So make maybe inventory for that deploying consider place. and sense at us to other up to freeing some

But we look of a interest will not of think those taking opportunity. willing to do is we're of out every what our take to So we loans. any the huge get losses best We're company. at in certainly

So those to the explore some even extent that going can we're to options. we sell participation's,

David Feaster

And that non-core is book? how big

George Makris

loans I $XXX from would be $XXX Reliance that and Well, million. million consider we in the that should between say that would book

David Feaster

challenging Could That's improving investments you what kind I year. that us Okay. second you of of for most a at the you end me, low revenue We lot the expect efficiency and potentially expect guidance. to focused in the below in tech helpful. got at about XX% then in mean, efficiency in coming last of the of investing even to of improvement potentially of remind one XX% you're efficiency. just, stay or NGB that's end, very half initiative. And from talked low -- you've the just you're mean, a XXXX? Could of on we exactly could your what rate come could in environment? we kind headwinds face XX% I in the

George Makris

manage we and to XX% between intend Well, XX%.

one necessary is be a feel investment we of grow to going markets. So just mention our And couple to lines. is NGB in of the I'll that business the investments just our all business

we trust an that geographies There people job our extremely company presence are trust little in certain business. where So geographies. a does good is have very other

are order to building we teams going to invest certain revenue. in have in that So produce geographies to in

office NGB standpoint. what efficiency our pay we that would enhancement out we've we'll from far, What applications. so say roll from will now the with on I dividends experience revenue back additional

so And in out So front revenue worlds, the XX efficiencies start the will the initiatives rolling of we or in back Those our hope days office, office. with generation in to both best get we we through to our new try It continue digital make new that office through efficiencies platform. the treasury banking back we'll platform. realize can management sure upgrades. all continue then to will

David Feaster

Thank you, helpful. That's Okay.

Operator

D.A. you. next question the from Gary comes Thank And our Tenner with line of Davidson.

Your open. now line is

Gary Tenner

half the that -- up expectations couple the you is that's guess, of a a for I $XX year million, accretion Just quarterly I of back follow first, $XX.X to mentioned million assume questions, number?

Bob Fehlman

the balance quarter or per year. that's million of $X.X and No for the so

Gary Tenner

combined just and credit Okay. And right. though, and the that's rate run that's rate

accelerated So any will pay-offs? there be

Bob Fehlman

That That's exactly quarter. right. scheduled is amount for the

Gary Tenner

Thank run then, Perfect. up per in any quarter quarter should Okay. in And the retirement the it of $X.X the that, savings embedded you. here you early rate start or on million showing that about, was call in that talked second XQ?

George Makris

the baked rate. the second run that in numbers, of already broke you so severance that was already But quarter into million non-core the cost $XX.X out early why it of of that's most we Most will. amount retirement, if that's

Gary Tenner

Okay. on can, Perfect. if very quarter. this growth, remained just which strong lastly, And the then I construction

you're it of that some the competition about seeing in geographically now, Just market how loans kind commentary maybe at the in that right all? has is of came what space from where and eased

George Makris

take I am Matt going to let that.

Matt Reddin

of our -- came in where existing and around our North Middle growth Yeah. that continue over you portfolio. is? city, is that other drivers also that now, then that see see portfolio about I'll give XX%. areas constructional it Tennessee. So Texas, also, growth the average portfolio right some color I funded how we construction Kansas primary in where to on from kind But we That's know through or good loans that

commitments, million into that those I to you any next fund in that existing color. of well $XXX hope we at a answer will gives we And down little construction month-over-month Glad we're relates construction concentrations. going another they're look as as to projects. a manage slightly we projects, our it. questions concentrations, you on nine And our project funding continue as to manage more days our CRE So lot if

Gary Tenner

Thank you. helpful. That's No.

Operator

you. Stephens. comes Matt And Olney question next from line our the with Thank of

line open. now is Your

Matt Olney

And you or those from how long some guys that loans do benefits heard kind context haven't some go some mention mentioned, us levels you tailwind? as Can price missed to think to as higher. benefits still getting are? you think have I and the I George, core perhaps want far you're you it. of repricing discussion, margin give can you this market much I those below before just are you and some of back I or what benefit more repricing those

Matt Reddin

I is much the they where This despite those can to even Matt. Hey, Reliance get heading. rates now. mature books, in are loans a We're one current margin. just have also we noticeable where But portfolio, able is environment opportunity existing Matt. on for right mean, higher the rate us at that we're in we loans still as

If you rates, at or our see at, close they're look increasing at if them, we that's approved opportunity. rate where them them so maintaining holding we're -- where that not or they're where

Matt Olney

then, guess would loans rate And Fed that that were how you be LIBOR offsetting cut, would I context then that far within give are us variable variable much that you some to prime? immediately. verse as if Can down the have as loans reprice and

Bob Fehlman

maturing Well, say the variable is of about months XX the the and portfolio. I'd on XX% in next

So you we pretty to look on There's if raise also is But side. allowed that you soon. some that. the to have deposit reprice about XX% -- other that have portfolio us

full of less. get will will some XX, the get Some it

numbers. those of most on offset be it'll So

George Makris

LIBOR versus prime?

Matt Olney

have much prime? LIBOR in versus we How

George Makris

Yeah.

Bob Fehlman

Yeah.

right that -- about next XX tied. what we the have then said, XX% in will that, that Bob XX%, remaining a loans have And months. We billion ensure are LIBOR again, now, $X of

Matt Olney

And within this out then the balance about balance? the were there credits relatively it and talk any Got that in Can it. migrated front, are the on like looks of any larger you flat. or non-accruals movements credit

George Makris

include those of some you remind just came I'll portfolios that large in. the No.

problem our assets loans, and done great And job. we ended managing field pretty special up. of We've done group before good so we're a pleased our have pretty a job

this very time. at our quality is we credit So stable think

Matt Olney

got down recall in the loans March in actually loans to of Did those from quarter last the timeframe. subsequent due quarter you to you I some George, down? that expected to that pay non-accrual back April loans those and paid past some to

George Makris

did the sitting acquired -- loans. did We had it's actually recovery $X We our pay still off. and n billion mentioned for allowance we our that one in

it was into income. not taken So

Matt Olney

loan? the balance And of was what that

George Makris

I $X recall, would if I million, right? is was say it that

Bob Fehlman

half year? also tax year What's rate on the or little the was this expectations full the even tax rate for Okay. bit back the your quarter. different And then

George Makris

Well, rate money. up lot made tax we more because went a

So say I is $XX.X about would estimate. I go-forward million about think

million. $XX.X between $XX So million and

Matt Olney

the for the of full that's year? the And back year, or half for

George Makris

year. It'll be the full

every basically, gets a it recast when numbers. So quarter year-to-date for

number say right your where going year-to-date is So now close. to end up I'd pretty it's

Matt Olney

Okay.

Bob Fehlman

And all forth. [ph] and it's Reliance or base is incremental part of that free other income remember munis on taxable. of some adding additional so of if which non-taxable you if that's And of and that's in income is our

Matt Olney

it. Got

Okay. all me. for Great. Thank you. That's

Bob Fehlman

you. Thank

Operator

you. comes Our from the question Garrett with next Thank of [Operator line Holland Instruction] Baird.

is open. line Your now

Garrett Holland

Good morning questions. taking and for the thanks

Just thoughts on the get wanted to competition. pricing your deposit

in You going your to forward. funding reduce sounded costs pretty optimistic ability

Just does so Fed week? points if the cut reasonable basis deposit bid the pricing next or what's XX

George Makris

I think you type anything that. to funds going that of to higher first got a that's tied with get money you're market percent

beta get one or So two of period over then public XX% moves XXX% broker to deposits, XX% funds, at get we move talking about that if so, you maybe it. The if that going of get a you're there's of any think might a that. core, I and before generally you're probably

have and some will more. in we So I have mind, will so keep market don't less and know, a little -- in accounts some markets price some some by opportunity markets

Garrett Holland

the over metrics where Appreciate you preserve the can And No. term then on for intermediate deals? for flexibility across various just want you That's operate helpful. remind us growth just capital, to and detail. optionality to

George Makris

Yeah. X% is TCE that our operating range. ratio between X% We believe and

an use in capital we bit get So have as that acquisitions. a maybe closer X%, to our to opportunity of little we

level order we to have be that. repurchase, build this will stock repurchase capital We able in at If that do probably to point. choose stock do plans we to avoided

and numbers from we're between So total adequate comfortable leverage a think X.X% can a I can to XX.X% our and profile. ratio operate X% perspective, TCE our between between that very and and you from see capital XX.X% a X% very is risk historical risk-based -- I think perspective for from X%

able least very the last at those to to four been effectively we've five over quarters. ranges operate think I in

Bob Fehlman

and a as of reminder, were. to acquisition that XX% Reliance, to TCE with ratio said March cash that just our down deal, we And from and right over what related June, expectations in line you in was the the see did go in

Garrett Holland

That's for taking questions. helpful. the Thanks

George Makris

bet. You

Operator

And at Thank showing I'm further time. no questions this you.

with the closing to Makris George back I'll that, CEO, for over So turn remarks. call Chairman and

George Makris

second you Well, thanks us awfully our reading our also the we're shows on I I proud I'm NGB in net all to for think call. efficiencies through quarter of think our our in joining our environment, to and I ability want earnings margin to associates, interest all of ability say a page, on achieve to that same just program. manage volatile our that

out We're provide markets to to excited about very but optimistic and customers certainly we're not in most Place getting even service in and for to Work last our least, that to our about to the customer ability Best excellent seem in our new the recognition market. of better awfully applications roll Arkansas. we're that our service we for the going And

we'll So a and great day. again do this for thanks joining us next again quarter. Have

Operator

thank you and have participating you Ladies in all and disconnect. the conference. may today's for conclude program This gentlemen, does wonderful Everyone day. a

Simmons First National (SFNC) 23 Jul 192019 Q2 Earnings call transcript