SFNC - Earnings call transcript Q4 2019 | Simmons First National Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Simmons First National Corporation Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to conference like speaker to now Mr. today, would hand over the your I Massanelli. Steve you. Thank ahead, go Please sir.

Steve Massanelli

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

Castillo Chairman Accounting are Finance Matt and David Officer, Garner, bank Chairman Director Chief of Bob Officer, Chief Bellman, Bank Joining me owned Officer and and Officer today Chief Accounting Reddin, of Operating Chief and and Marty George Makris, Simmons wholly of Executive Financial Officer Banking CEO Bank. Chief Executive Simmons or and subsidiary,

session. morning is the provided purpose All company earnings with investors and firm to by invited We'll session. Q&A this to call followed in information this listen-only are mode. the research the in quarterly begin analysts equity participate on by provide We've to Q&A a company outlook company's to and this The future. prepared conference discuss other for the from the data and the comments call our a of institutional issued discuss guests release in and

call remarks Q&A will simmonsbank.com and posted our of session website including relations under on the our page. investor Transcript be the today's prepared

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

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

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

the Makris. to I will over now turn George call

George Makris

And the for like Landmark quarter became Simmons November XXXX from call. the and Bank, of our welcome included part first XX. results to I are conference team welcome Steve. month would associates of Landmark Thanks, who annual October to in on Bank operations and December. fourth our the earnings

for of branch were XX.X% previous XXXX. our million, In release, net were income $X.XX XXXX, million increase we in early in $XX to press related, of XXXX program merger and million after tax $X.XX, costs. X.X% increase an compared from retirement or right reported $XX share earnings per earnings or of Included net the $XXX sizing an Diluted year.

for $XX Excluding were share $X.XX, million the items, earnings XXXX, these million, $XXX Core core an Company's compared an $X.XX, XX.X% of of increase of year. XX.X% earnings from to per were or last increase XXXX. or the impact diluted

December XXXX, total $XX.X $X.X grew XX, at XXXX. billion billion During assets to

assets core while Our X.X% return-on-average return XXXX. assets on X.X%, for average our was was

the for year. XX.X% ratio Our was efficiency

share items. Included net million, $XX.X $X.XX. quarter after Fourth per in in quarter XXXX diluted tax income $XX.X earnings were was and non-core earnings fourth net million were

fourth were $X.XX. these earnings $XX share per Company's items, core of were million XXXX the impact the the and Excluding earnings core for of diluted quarter

from sell was agreement branches Our entered billion, purchase into to and $XX.X December, $X.X loan increase quarter, XXXX. In end $X.X assumption billion balance the Texas. quarter a last and Austin, San five from and billion in an at of Antonio we branch year-end Tilden, of the

sale. to in sale balances for loan sale, loan moved In this pending conjunction million with approximately $XXX were

and development consolidated the at loans which of a the of basis, million $XXX of the XX%, was of was XXX% our the at ready approved pipeline and quarter. quarter. loans define construction loan end and close was On Our we CRE end as our concentration to loans concentration

billion, XXst increases billion pending approximately December for conjunction deposits And to in were last sale. $XXX from at XXXX. branch deposits also of million Total deposits billion quarter, $X.X in we held moved $XX.X from with sale and year-end the $X.X

Net related. interest million, was the this XX.X% the income acquired XXXX a Accretion XX% related, credit period interest increase fourth amount, for and million. the mark of from accretable loans was quarter Of was during same from XXXX. was XX% in mark quarter $XXX income $XX

$XX Total million. was accretion income for XXXX

margin, accretion, The projecting interest million For of for for accretion we're the core excludes was Net approximately fourth margin Company's X.XX% $XX all was interest XXXX income. X.XX%. XXXX, which net of quarter. quarter the

was Company year $XX.X the fourth and year. million, approximately increase an the are XXXX the million quarter-over-quarter million, compared the Non-interest the to quarter last acquisitions $XX for to categories was income Reliance of compared for income Bank. Landrum last for period year. of an same million comparison, of Non-interest Increases increase $XXX.X to The mostly due $XX.X

million. for fourth million increase was which of Non-interest when $XXX non-interest $XXX same the XXXX expense increase $XXX was the Core last year expense million, expense Non-interest of million of over year. an XXXX. quarter for was represented $XX to $XX quarter compared the an million,

million acquisitions areas was when expense XXXX the Company in to and to increases Landrum are quarter Reliance The Incremental Bank. million, of of operating related of most our non-interest Core the which for represented compared an XXXX. quarter $XXX increase fourth $XX

Software our and in increased technology technology XXXX banking prior million initiative. costs next year, to generation over approximately related the $XX.X

see continue NGB results our to We investments. from

customizable faster we customers quarter, well as and app, provide launched new as more banking our mobile platform. management fourth During treasury our new upgrades experience. our a These

Our customer the mobile feedback rollout since increased positive. users and very XX% remains have banking

of non-performing million the is $X of balance in million bank made were held year, loans, for in assets in sale. million. This primarily end up non-performing million $XX $XX assets, the approximately $XX includes At and non-performing which branches closed other

for annualized points. was the charge-offs million quarter. for loan net $XX our $X for year-to-date and XXXX, year XX was loans basis million total provision During were the fourth The loss

XXXX. throughout strong very equity was remained year-end stockholder’s billion. common $X position At capital Our

value increase the share X% end. year an ratio at of share year, X.X% book equity an period. common book from The $XX.XX, previous to per Our increase $XX.XX, tangible year-end compared tangible was value last at the of to X.X% assets was XX.X% our from was of while tangible per same

based million Our December coverage. ratio for acquired was The capital Tier loans discount $XX an XX.X%, $XX loan December total XXst allowance with XXst, for loan $XXX,XXX losses allowance million was was risk for At loans. additional with mark of $XXX a at ratio was X.X%. while leverage total for million legacy our the X

our completion of We credit upon the estimate of our for updated will release, In loans accounting that standard. we CECL for projection X.XX% press expected ACL approximately upon currently [ph] the X.XX% the adoption. total to allowance losses be

for methodology and the initial implementation. our We have set assumptions

However, to to our conditions composition and be at that adjustment monitor other economic change. continue time, that levels and we reserve will be of portfolio future of will forecast based the the will factors any among to upon subject

we target ROE was focused From achieved time our of be within remarkable. lose tend exceeded X.XX%, and time, our metrics of financial in sight our results. ROE and on an of specific We to a of core the performance X.XX% XXXX performance more In picture to X.XX%. which retrospect, bigger

efficiency and XX%. XX% target return-on-tangible with range within common We ratio return equity. XX.X% XX% XX% equity to on produced core our XX% is a an of a of return-on-common in common We tangible equity which an operated

at development XXX% from end second year-end and estate the at second while was the XXX% year-end, Our of ratios below went regulatory to construction our end quarter real concentration to quarter lowered XX% now the from the the XXX% of guidelines. commercial at concentration at both

share was repurchased per XX.X% $XX two and value added while our million per our And time X.X%, tangible billion which in $X.X book we completed of value we importantly, during share the book rose assets, stock. our when acquisitions,

will adjust take of digital implement including continue over our future Bank. technology we of advantage XXXX, extremely of I growth about successful the to initiatives, the am our past During our years. and business the Simmons to offerings, few our optimistic expansion strategy

This comments. concludes prepared our

now our take analysts, open will research investors. the review please questions. the from instructions and questions call and institutional We for Operator,

Operator

question from Gailey first comes go KBW. Please Our Instructions] Brady [Operator sir. from you, Thank ahead.

Brady Gailey

Good morning, thanks. guys. Hey,

George Makris

Good Brady. morning,

Brady Gailey

of So you of XX view. buyback XX million from point a utilize the

to you in fully XX million So you repurchased have XX that million anticipate left. XXXX? Would be

George Makris

Brady, we will. likely it’s that very

systematic But continue. right buyback. Obviously we expect could put to we XXXX. still circumstances program that that it's and withdraw continue market it a place, throughout systematic into it could now, have and to place change expect We in and we we

Brady Gailey

weakness a right. All year, it year? a this growth of digit you then guys, from growth single Is way for this we've to XXXX. low still next right talked that in growth all growth loan or about seems know think perspective, loan loan earnings about And the Simmons in we're for from like the I season of banks. lot a seeing loan level

George Makris

Well, yes, qualify have it we to is. that. But

one their budgets. to a see of in each divisions, our mid-single take we as So look we numbers digit at growth low

that we the $XXX However, we locations. books remember off sale when South have complete of have the million. That's the going to to we about Texas come

and first our exposure the We portfolio the the another have our by during also million roll during year, our energy to down about communicated intention of year. $XXX six hopefully months

any to net so ever we So million show $XXX got that growth. before overcome we've or

at circumstances they're I be of understand think results net the need still take growth. important We're active of when the more loan loans. to lot a thing just in some that the We originate that color. very may here we're Matt, look a still place. we have to is able market our other to you going

Matthew Reddin

in George, speak head. taking you've, and you've us heard right that of portfolio. think the you kind kind of think I hit of couple where last Now, we're Brady, quarters I our to the on

think about continue off we'll nice opportunities. think We had executing our relationship fourth everything I transactional in portfolio. good really CRE quarter on have we've us -- run speaks the some talked I to to have doing. But

equally execute. between had We production as healthy we same in the But also had portfolio energy and trying C&I. that at was to off run CRE weighted we're time, our

right. So I I And George it captured think continue in that we'll again think XXXX. see

Brady Gailey

relates are clearly Alright, be as level. to down going levels to next the accretable coming and year, elevated versus XQ margin, the it then especially

out the at stable do could So would to core expect but I downside, interest margin stripping net report downside at that accretable there core Or XXXX? yield, some NIM be you the in at the you additional see be get to some And NIM? looked that XXX.

George Makris

the to fourth some Landrum related circumstances acquisition. there Well, unusual were quarter

core a just I'm will So the but specifics give a about pressure you was going on And interest assets. lot a the NIM core fourth Bob to earning net in more rebalancing let the margin. of little of continue, that quarter the

Robert Fehlman

know the Fed as of rates Yes, the dropped the Brady and end October. you at

get It the the And other really about XX points. loan on side on end repricing the didn't legacy legacy We on But XX, in we have it, basis done basis deposits XX till So was really about November. down the probably bearing picked the deposits. quarter. the we of did work interest some hard of up the repricing pretty we side this quarter. of points Simmons cost

this interest is first we a a we So bearing loans. little swing our more the our there than down deposits went that time little saw

the said, is to looked though were As and loan down quarter have lower basis margin. you is XX that for the had deposit they lower to points of George it they a Landrum XX acquisition, about ratio core, related reported when -- about is a of at part NIM and

it majority And And and accounting portfolio those day the had effect that rates have about the get that other in you also mark of are a The at security they purchase portfolio. accounting. time, on we side from liquidated reinvested you dollars one. same historically at billion market of that to purchase with is

reinvest It and pledging takes some out. the in all you with to period dollars, billion a that of have time to move and

really get are end So for even lower we reinvested a yielding. that the lot the quarter. the U.S. didn't in obviously mostly Treasuries, the of of quarter, towards And was till which

to a investments time us the into find build right take will get to to it our So up. period portfolio that back of

quarter. we we'll would the We what and should we But size. pretty been start expect our have I agree But We have We the would working is in of impact hard. low end would have with have because seasonably building. low improvement said, this was this quarter. think first and the deposit do we George hope to an unusual side

George Makris

And other affects our one the in is quarter, that that mention in that first margin fourth it'll again agra and our quarter. it [ph] portfolio. I'll affect the thing

those negative start end usually over $XX the quarter, and crop and at fourth paid in down of first funding low are loans, it the we stay a production at until So effect the margin. we has that good it'll a $XX out year's higher yields yielding million take on quarter. next level million Those toward the

Brady Gailey

this conference it? I Marty’s earnings Got is And guess last call.

over all with wish great best and Marty you retirement. the working in the years So you

Marty Casteel

appropriate got very bankers. a time Thank great and is Transition much. of you Right. team we

a very feel and where about very bank leadership, Just you are as our good we but much. thank

Operator

Thank you.

question from Please James. Feaster next Our from go David Raymond comes ahead.

David Feaster

morning, Hey, guys. good

George Makris

Hi, David.

David Feaster

you echo like I’d Brady’s Hope to enjoy congrats, comments, retirement. that. on the Marty

Marty Casteel

David. Thanks,

David Feaster

But non-interest been obviously, forward; I think is lot the I just just but realized looking do know How additional conversion wanted just And to synergies I for start and XXXX? guess expenses in about have Presidents a parts, slated from expense moving other Day there's parts. expenses. on it, the inclusive NGV of your of for any date? of weekend, you moving to Landrum

Robert Fehlman

to kind going of of go look you this Company. that's hit ahead quarter. you budgeting and in had we two We them. going these and But for give we're, or year this numbers to and expect Landrum a Well, like a noise just we're said, of lot next on beat months the question. what good Landmark to I'm

Our first hit be the with and expectation of, that first payroll items haven't that we historically, is in quarter the quarter. in costs And quarter realized taxes saves. it first higher higher the all because other will

we for expect XXX in somewhere XXX high, million would the expense the QX. for So to non-interest

For be XXXs about down XXX it it'll the balance pushing get of we’ll to to in be, low by the QX. the year

we're a in down of some by next So to and expense of us I some of XXX would to here major the end the be year. side. year the and focus as quarter XXX rebalancing company That's say going will it on for first be the the migrating

our those target are so forward. And numbers going

David Feaster

lot talk and investments on have you're I improvements upcoming potential X.X in, for in should Okay, NGB, those? and the helpful. you a what from And that's extremely just just the about starting you got NGB staying going believe know now. I be efficiency you've that investing expectations Could

George Makris

sure, be David, I'll glad to.

be from NGBT next digital is standpoint offerings. So to going an our our focus of XXXX in generation

So rolled has Carriles our we new Alex and app. done fantastic Chief a digital out our Officer just great with Digital job. success

Our timing even since conversion for app look customers script at self-selected call That took new from to their number, a grown we our basically app. our for our more. even old this has

regular you customers communicate users a I has customers digital branch, here logging up or the into a walking users with mentioned are before now day. now which traditional that opportunities through even also channels, the of hear about into our where conversion, over to over And have ability to X.X a of is grown in us we we We our have our XX% in as were our opportunities, with online on bank, number think our logging excellent. I are banking. and times exponentially think from basis methods that when

hard stars our achieve We're to more you integrate our I'll digital for banking that in to and this very offering continue app we’ll app, especially is tell app. X.X our X.X a writing And any stars. Now products services year. digital is proud for

focus future new about our initiatives. XXXX and digital of we're extremely on our be banking primarily will those for our, excited So the

efficiencies is lot. realize that we NGB And hangover Now, forward about us development revenue includes we whole to last in to a don't some information data our a ability revenue from going had But perspective. programs now to of lot We together, from heck the have a that have and going marketing product X.X. put still that our and from a with we systems generation be the great disparate our the about to that talk of utilization of is lot a customers benefit and that And utilize warehouse. our investment of a gains year. the

of investments, generation. lot infrastructure with cuts. times these also ratio opportunity efficiencies we organization. faster, to additional our and the out build thinking went we efficiency that's is a Jack a it, think party talked is greatest done by within believe Well, year environment. that's we start that all part forward. about that. and real associated which that revenue reliable This that of expense a the of benefit all going to side more associated moved means third but about other So We has Simmons in our We're We as that bank. continuing is with It's safer the of Henry, OutLink, been processing of the

very as don't also to It's about worry we we have we scalable, so capacity whether or to not grow, operate. the internal have

invest our So will our all benefits and the those of and are to to initial recognize continue beneficial things XXXX to offerings. us. digital be in investment

So the a long answer short to question.

Sorry that. about

David Feaster

from color. terrific. it's And No, me. that's last one great That's

know Landrum your The on Just deal. you. closed you M&A. But, I know just thoughts I

on You for is pulse going. just just a our the deal good And have conversation what's appetite a your market, how very here?

George Makris

having very good And interested. conversations. still we're Well, some we're

As markets current on new several we markets. moved mentioned our really has focus to from expanding focusing in times,

They're that So more little market the dicey little tough the are the require more a is of a will, And ledger. over conversations today. side expense a the if going because bit of part you acquisitions cutting, business. different in to M&A be

we're So We many talking forward. going in to, not the our subject We're some any business we banks having want rush. today. very of of CECL see that to how cost aren't to we're CECL And doing conversations. productive think affects

combined them also is company a us process, let pool to an from will a it for merger know point. educational affect CECL's So how the

in discussions. So good think still the expanding very presence I our we today. really markets interested in We're we're having serve

about possibilities. optimistic the So, we're

David Feaster

Thanks, Terrific. guys.

George Makris

you. Thank you. Thank

Operator

Thank you.

from next Matt Stephens. Our Please from Olney ahead. go question comes

Matt Olney

guys. thanks, Hey, morning,

Speaker

Matt. morning, Good

Matt Olney

I'm think yielding. want balances. How was you've certain credits. to working thing around are energy was acquired I that the quarter? then lower progress exiting quarter and then the portfolio I been And to the in loan related what's curious also you're fourth then shared the remaining. loans the know Same exiting how remix the discussion and And there. go back what's loan progress that some to fourth that remaining? I in you And national

Matthew Reddin

we had this Also, knew The those down loans with we've, I were is said, Louis that, energy happen I'll XX And -- two of quarters over loans, I in the Matt. that see as executed tune hit non see that corporate region the as well. will $XXX that think we went from Matt, Hey, bulk to pretty the about we were in of now then XXXX. on that the George Worth, think quarter, you million we planned, in I fourth first. think quarter reliance sizable or and million you'll the that I in good took really to transactional one of relationship continue the can was really, pretty good with first said that of St. Yes, one Fort even saw just earlier, that that payoffs you $XXX, off. and really planned we're XXX below Texas level. at And that effort.

hopefully on loan that you gives portfolio. in of So those a the planned kind color little declines

George Makris

one more we're little we me let about guidelines off run below expect say a thing other Because us and me regulatory let now more the a little Matt, that. to capacity. give

in We relationship, to with regard game in are lending certain categories. now back the CRE

a any who roster. for And guess, a we in still improvement the We're at like has today. a us moving to business areas improve have from team this business. some business way to that. more of But, is general relationship always pro So I look to we don't manager transactional I of football fixed certain that do concentrations need looking is

and expect have to So because And results active I of we've the again. in the would in attain. team been got to capacity that able built marketplace us be Matt his now,

Matt Olney

Okay. it. Got

I got Let run numbers remaining these me the loan off. as far just sure right as make

loans, to and side I the previously that. $XXX of said want those more you call from the there book. runoff get Is remaining think you that remaining Did on I then was lower about energy million on got numbers I rid in think XXX yielding that And runoff the XX right? $XXX million real so snick estate right? you it

Robert Fehlman

year I think over on pretty see. energy coming another the two You're we close we'll real XXX the next -- and see off close. next

quarters quarters, energy two hope You is plan book. that but maybe the on three the there

On we number. that's different little the don't Louis Yes, I say XXX Reliance, quarter the that the off specifically. mean, to St. But in specific plan want that ran a there's million fourth more third I runoff in number. for -- St. there. Louis,

I XXX Matt? another said, that Is think million. he you said what

Matt Olney

Yes.

Robert Fehlman

It's number. also can around that to above that, as a trying customers or we're that It relationship some sell to George make as below in too, well. these come said

higher. bring yields -- loans those yielding So put that high those change could and lower

Matt Olney

Okay. it. Got

George Makris

Matt. Hey,

they're Just to, balance -- loan do pulled held to end year, we as classification the clarify as the South out assets the loans the and of you are for know, Texas of a of sale. in

Matt Olney

to I down that. wanted more see did on I Yes. drill that.

the strategic had sense. market. I a in move large presence She very metro makes small think a make

larger it exits or like see So could more the presence has commentary exits there strategic opportunities could you in Simmons? a a seems if from I'm scale beyond more curious exit. some future in for like strategic some some need we be Any seems add where to Simmons Texas, it market. smaller also

George Makris

I will table. is that Well, on everything the say

I from and strategy. loss just investment, a our invest As quarter If which think teams from not profit not deserve a before we're fairness standpoint, we are of in elsewhere. the certain our priority to at top a markets. we're going in feel entire taking a that, it's And location I maybe it's quarter, last look mentioned, opportunity the teams notch marketplace, to

So it I evaluation for a constant would tell you, is us.

made will other that considered should You're they decisions but I paper, South considered. this we was any there you that that On way point. Texas are in have markets that right. doing evaluation not at same the be tell are now, like look

Matt Olney

going guidance next for that, the few operating I to expense then the Okay. And for Bob, quarters. George. the discussion. back Thanks got

are is to now And run to credits again offset run kind return a the more Just insurance, normalized in a any there? more deposit on there you expense? we there on rate rate like normalized looked that a of credit deposit insurance what to remain had Or going the fourth that? it Are clarify, could quarter.

George Makris

those quarter in fourth used not credits, next year. up I expect would Matt, so Yes. we any more

a going So that higher in on quarterly a landmark. forward. $X.X expense million includes you see That's the range obviously basis

on forward. So ballpark million go a of about $X.X

Matt Olney

Got it.

is Looks of then parse the fourth And in just that part the quarter. for made on the it's income like question me jump them fees, last Okay. impressive out. for fee me acquisition, but tough to pretty from

in any the on So go fees commentary for we XXXX? rate run as into

George Makris

of really mortgage Well, can good last year movements year but revenue our group of We had kind We're weren't too. of course, a overnight. course, year from interest not in this change anticipating same anticipating XXXX, that group that either. that rate

So we community a here. Bank, up true tell with forecast of lot I consumer to they bank. But anyway how were well business, we a Landmark goes mean, right picked you

fees the be a So real will along accounts with our go organization. that benefit consumer to those

fee biggest footprint. across entire opportunity Our is to increase revenue our our business units

category. flat be if I forward even in income be fee any saw we disappointed personally So, going would

roll Our objective and out to that is products fee our grow services to we as income continue footprint. our across

Robert Fehlman

for two and to was X.X Yes, little income you just Matt, QX interest color about a The non Landrum. million on months. that's give for

should that of modeling. So your in you help some

Matt Olney

from quarter was the in because outside that. was Okay. the there growth must If jump stronger to of I that in for that some legacy the XQ think been than have I guess Simmons XQ fourth fees,

Robert Fehlman

And you close in that the never on timing little know quarter in And and out. those area George some. playing fourth trust to were -- a have happen. fourth our as a the some a lot And might We've on closing been those we to nice when had the of that in group of Yes. that also quarter. of some said, kick chunk mortgage of big came states fortunate

also that number. think helped I that

Matt Olney

Okay. Got Thank it. me. you. all It's for

George Makris

Thanks, Matt.

Operator

you. Thank

comes Gary next Our from go D.A. question Tenner Please Davidson. from ahead.

Gary Tenner

morning. Good Thanks.

George Makris

morning, Gary. Good

Gary Tenner

couple amount on ups energy the what us loans on Hey. Could non-accrual? energy that are A you of portfolio. are remind follow currently

Robert Fehlman

Yes.

do I non-accrual can Right million. for just borrowers. that now XX three So, And that specific on there's you.

Gary Tenner

credit relationships, the piece portfolio, that that interest off what's of I beyond you're running regular of your national or obviously today? that terms in but single your And of know your Okay. own level space kind in relationships shared

Robert Fehlman

we'll the be quality. -- true the relationship have some going have where really but clients, highest they to It's markets be to have we're in nice to of know energy we

that'll good think I book. book, a be So, small a but very

Gary Tenner

the Okay. in on of putting incremental terms And books? that's new loans

Robert Fehlman

Well, a relationship we'll possibility. there is for think fits type I you -- coming growth that won't a high is the day. incremental We're But attract any every quite see market I There quality credit the client incremental our new think sure of full bank a and I see in standards. possibility that yes, some for standards that to wouldn't time.

George Makris

they Gary, also I only and customers while our in those some customers, of do our relationship some mentioned to have are of business, well we what that of exposure well. several might energy diversified energy is a portion

Gary Tenner

just me. question Okay. for other one And

that projected maturities loans? contractual the scheduled is accretion is visibility there Or for XXXX, million and based $XX of number? purely that maturities In in on of of assumptions prepayments on terms any

Robert Fehlman

we that's some that or did we are like is said, in but have had scheduled. there, There Matt bulk our Missouri, in expect. scheduled payoffs. speaking generally that it some And, The as of markets of pre do known payments

Gary Tenner

Thank Very you. right. All good.

Operator

you. Thank

comes from from question next Garrett ahead. Our Please Holland Baird. go

Garrett Holland

for morning. Good questions. Thanks taking the

Robert Fehlman

Good morning, Garrett.

Garrett Holland

I the expectations a impact? through move quarterly expect want performance follow XXXX on to based Day and CECL then on up you we do provision. What as run core rate quality for X and provision the asset from your

Robert Fehlman

is things. the during that the during loan our provision theory the cover And the that CECL behind is quarter. One growth two impact should second is Well, charge-offs the quarter.

going that net charge-offs and consistent projected, going So, driven it loans. those we say think with I to would based be our on net our year our than ability history. was control charge-offs, this it's but is less factors; going be to be growth, to low which And two provisions to by are new

Garrett Holland

productivity maybe on a bank more you And in little bigger in the years, just just with Generally improving the beyond in you expanded you this these about progress? move is made deals traction And broader bit, the pleased acquired you've this touched that of for pace banks? to banking and then progress recent Understood. with you've picture moving the beyond? bit relationships. footprint That's as the how question lending and and XXXX can helpful. opportunity talk large a The but

George Makris

huge. last let the over think three of we what's sort Well, happened just And the opportunities to four me years. are explain

several We profiles with bought and different of products banks services. have

buy our Agra don't kinds They a lender. a we base. has into is, portfolios. find bank real of those objective have And lending don't estate commercial widespread have What So, to and verst help if been diversify that's we'll real loan they lending. primarily C&I consumer

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that Arkansas, in times. We in need almost two largest replicate We the Arkansas. markets by operator to of outside trust are the state of

services people focus the marketplaces, is and getting we in real potential the lending So products that to forward going with our to that's going these there. traditional our expertise offer place growing think be is outside in

Garrett Holland

taking the question. Appreciate the detail. for Thanks

George Makris

Sure.

Operator

go from ahead. Sandler. Instructions] Stephen [Operator from Please comes Piper next Thank you. question Our Scouten

Stephen Scouten

morning. Good guys. Hey,

George Makris

Good morning.

Stephen Scouten

the I'm a constraints had so given I'm have bit you're from relationship you portfolios just that retain? forth, curious if issues if on retaining and just you've with producers and of attrition people revenue your lenders, any want down. managers, seemingly kind some little there to you are Hey, growth wondering any seen all working just

Matthew Reddin

Stephen, Matt. good We've of Yes. some seen a its that. question. That's

our We we products seen those that and at have some banker expected. horsepower, We've Some or that like to we that to conversion. of reliance of the much all Fort in in to selling opportunity that but opportunity honestly, that, not of sheet bank rounded, Dallas choose to we but that as complete commercial an managers upgrade with balance do our saw that that with Worth that. services Point, of some the to our more seen But George's that Missouri, of little in look area. bankers bit be a we if well now relationship

Stephen Scouten

following you've a about maybe past and bit a Nashville know, years then, M&A. little And as Helpful. around Okay. quarters back talked in market. I

transaction might is point? your over just And target And was density within fairly radar? kind a -- this that's there. or your all want market time. markets of sizable you it know on more existing announced You from there to Is that a that still are was

George Makris

our novo found for Well, merger partner. increase and a But market We've in certainly lenders B, is market conversations that had Plan some and that priority which successful well have in We're some we us. Nashville with that leaders not also good growth is presence. with have a potential physical we To-date, evaluating in opportunity. de market some market. national underway potential

proactive So nova. in I Nashville, take in growth us think a whether through or see you'll it's M&A de approach

Stephen Scouten

I Brady's if be what know and earlier for but thing me Okay, don't question, are maybe just putting great. I to in expectation in guys could XXXX? missed response out accretion think you this for an you And last

Robert Fehlman

it that couple was expected announced are are $XX included million, There and We that. that's Yes. scheduled. mostly in payoffs that a

Stephen Scouten

the so I much right for All guys. great. Thanks Okay, appreciate. color.

Robert Fehlman

Okay. Thanks Stephen.

Operator

you. the over George for our time, CEO like and remarks. closing Q&A At I'd session. this concludes Thank to This Chairman to call turn Makris,

George Makris

very much. Thanks

Bank announced Burrow, General Simmons up. of and this leadership for press Pat the wind thank will success of Marty had call on to we've the you achieved to them Those for that. opportunity to the since plans our have our pleasure both this to many and commitment retirement take for in personally their the may Counsel. very the and of been of Casteel, Simmons release of today, before I noticed Just we actually very instrumental work Bank. both with them I've future President They've in unselfish outstanding years

the all finance in and named Officer. three title all of All objectives. Tina the responsibility as Groves same for been well the of Neeley accounting Chief Officer. responsibility these has for as report Bob. Risk has duties our planning other in has to assumed David Operating Chief for Pat responsibilities day Chief has operations strategic We've been which time Officer some and assumed changes we've groups. now individuals addition announced of retaining to his Garner this CFO. our Bob as align recently Fehlman with Accounting

of Banking of Matt in the her units, Officer expanded footprint. this business is People our Compton year as Currently, has addition Chief portfolio his Chief our including to Officer. role to were manages which revenue a Officer. throughout most Strategy Reddin of of distribute as role all aligned role Chief divisions, same Matt Jena and producing our the better services products

great Their all make our McDonald, depends and group. business I certainly for people. to and as business growth Now coordinated is our Freddie this and a together, leadership on fit units. development develop believe across markets experience all the Sabrina will approach us in our help up Black knowledge success

size and of offerings Pat take which as addition Counsel. our our to access has estate our the from Chief Makris and scratch, Steve Massanelli help built location work they I'm of has of hires his and will expand our newly our formed products for that one assume the of legal Digital real Bank, how but opportunity strategy III we provide ensure our and will Alex Burrow on Simmons as advantage our our George manage our customers not will role proud great the for rationalize customers Carriles digital continue we Officer General division first group commitment and services. and to certainly scale. give choices only And

us to this As joining I optimistic Thanks And today. concludes I'm about said our our of conference. very you future. all for before,

Operator

Ladies call. and you gentlemen, for concludes this participating. Thank today's conference

disconnect. now may You

Simmons First National (SFNC) 23 Jan 202019 Q4 Earnings call transcript