Home Bancshares (HOMB) 21 Oct 212021 Q3 Earnings call transcript

Good afternoon, and welcome to the Home BancShares, Incorporated Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Donna Townsell, Director of Investor Relations. ahead. go Please

Gary. Thank you,

Reporting Tipton, CCFG; our Lending over John said, our Centennial Relations, I thank Allison Operating Director turn Kevin he Financial President Chief Officer; call Donna for Finance; John our on Chris Allison; Tracy Brian report am and President our management Davis, to Premier Investor French, Hester, today. conference and quarter to CEO our quarter. our of for will now Stephen President Marshall, to And of Chief team be of Officer. John joining happy Chairman, I Shore Officer; Poulton, of As first the and third Townsell, our today am Bank; would you Chairman, call Chief like our the

with had. today very and conference answer have million $XX as share. solid questions with per as Committee might in Thank on am I here don't why to third to me hear phone to right. the and Home will phone. in another I my most my present well Executive of quarter I any and you earnings of that and Home I call. morning. want had BancShares earnings they turn That’s you, have Donna. release morning Home’s been Good the afternoon, the anything welcome be have to off. We quarter going productive or have $X.XX

fourth about is can't a have towards in $X.XX I is in ask $XXX that During again share, the the first people. nine would Home for row. much plus the goal our world $XXX,XXX,XXX of months said marching record. more the million a a earned our year XXXX, as we company or past

we're operate to adding BancShares, earning earning our valuable to would for United pull business family. out Texas. though is and friendly several the they're it could in about X% combined term runs Happy and Happy of and will boxes, the of movement, value company Florida to panhandle the in to our states choose that when be check. zero, The around shareholder demographic additional propel to virtually talked company excess check and I'm shareholders you about, have is those companies States, ROI Florida it at the continue we the well, tax I at When even you assets two $X the pull I BancShares’ build and running M&A if X.XX largest out, we're deal both a employees best and running and certainly years incoming X. We've Texas with Panhandle long both If can welcome happy future the are which check home you more now apart. than and together capital, and in billion partners think friendly through new Home

what As environment I accretive said probably that's our going for bad of DNA. Doing deal deal deal a deal. complexities acquiring easy. bank a is day they're the a wants the if more, in badly triplet doesn't sake not not get, If no is and disciplined doing and work announcement, is transaction to patient bank this not the making in deal a on of the today's the of

This We'll boxes. presentation. our it both shareholder, for box. works transaction Home if those checks come shareholders, As back the to deal later can you in largest it is individual employees single assure in for me, Happy I the works

QX nine and the of the Let's first the months go of year. highlights with

quarter $X.XX and earnings the record. I nine a of earlier, the we that's As have the or also months million $XXX.X $XX months for and company said $X.XX and through nine third

in ex-PPP. growth million don't earlier is loan half of it's the for that recovery of quality I want good creating of up our showed credit and billion. loan lines down up year. have were embarrassing I forecast, longer confirmation on strong on optimism is but X.XX. quarter; second even jinx calls the pick our an XX ex-PPP pressure we XX $X a a we excess at The million million to to loans assets the $XXX yield This Loan quality growth statements was up commitments the expected certainly said to quarter Unfunded we September and to though growth. that our loan Third was return for mean nice deposits is X.XX. putting on

liquidity your billion bad it's Most balance not at Home be to. Home. liquidity excess the Dimon with friend we're tough. companies X.XX. churning we're to excess would of We to match Jamie $X with off We've looking change access sheet. loan with we REITs optimism balance is a an for Patience that of without number trend powerful me money proud this long but And little appearing having quarterly push played sales have one playing to asset. got yields. bottom for we to However, be the XXXX, upward all game growth But capital, could said X.XX, if in none about loan was or wanted at of Actually a low race the the and may can unacceptable could and is did believe the yielding pop. that and excess very an it. got not be we the liquidity of investments or on We

and having $X a by year-over-year, backbone program. a a was processing will not in XX.XX, seeing best. Non-interest forward of our is expense $X.X he million The and Back look we're was of looking and head loan and other a merger basically Williamson, as might Home's expense of and up company in expenses. that's Board state, up $X.X ROTCE be Happy has quality, efficiency linked that was revenue the we were capital quarter, in guy. $X.X wherever Michael him that merger of ratio go to million CEO joining million, company of but Happy. and founder million for system a the I okay, leadership in the even $X to Home we level great a Hickman. we the him. ratio me. we and $X Pat other. Pat and their in forward record to Excuse X.X strong data basis a that team for with Texas operator the Very our BancShares’ a Happy senior quarter great up On strong For XX.XX, beat maintained on will be said Banc ratio, was us led strong this. capital think I was asset bulging non-performing ratio past

the loan In people to addition even are is all top are keep entire their people very experienced to strong of their of marketing, network a and don't quality investments, as than President ours. better thought. the forget BSA, many CRA, compliance. trusts, group even a throughout Many is as we HR, It very ER in They team more of our Fall drawer. goal Happy’s impressive people can. than and we

not than it's quality, asset as as when better most good Home's clean Asset seen. quality, certainly but however is

think San Texas hardest this favoring Destin, Demographic Texas movement and Worth, few. loans from than challenging Miami, after panhandle companies Homes, line Rock, Texas a unusual to acquisition West in Fort completes, Homes Tampa, Tampa, part people Florida are Antonio, yielding getting close Dallas, [Dumas] the panhandle we Round Key Texas and we'll which better of and mention to to course, Happy's to the to in Orlando, few achieve, a have thing. Happy and Pensacola, the Beach, branches. Fort Plainview, of Lubbock, XXX and Austin, branches including expense of and highly is Lauderdale, the Palm mention from Emerald equation with With is the

growth $XX We company come the are we from XXXX, and took $XX in all billion well. is place That providing as this of in poised assets. have to goes to continue when transaction million our

Let's in talk about general. deals

Now we They a over haven't these deals at worked. just as look of period M&A time.

outside Just whatever acquires mean, Actually, before of they of make poor a I only and work. there's better and work? just been sure they none there's Most performers. few paw hell I the in of equals fixed what and handful, of but very merger last not work. few another I'm XX performer, Why the not means. is, been them mean years were that a that performers virtually themselves. a poor have by go they they don't work poor

much say they get and as buyers So for back too their it's we deal. of creating the book own much to to and years too a something just value, else, tangible pay even. They like earnings dilute but anyway, pay

to bank a deal myself announced up accretive I at look you somebody or you knowledge, fees check day delusion Regulators to Johnny, can all once. and earn double cost on trying which do the hand the earn box. there just at I and of when actually cost that year Street was deal the I will and deals deal in purchase one. and no for Actually, another, transaction. deal the shareholders It Buyers to said box. said another this And size experience multiple our the Deal what Townsell accounting Focus - becomes back that. on assure we cannot up shareholders Home not and is Donna body they both and you that cold the deal. that got I year price do above that to bringing Donna statement, three on the the has must get and this all Check came and do quote. You've costs be execute checks try the at box. two Johnny, the included back, Journal that's of in picked let to even reputation to won't and teams book that. on not they be with do have quoted to both tangible heard before can Wall

want that got feel better for about I to quote? sure So you that you Donna, credit that. be

you thank I'm sure your but Well, credit. for not

billion Home our checks always that. a has had assets to stock. Home a and buying remains of at chance Home certainly to scale XX% that will $X.X powerful work. seller to impact make any focused. it buyer almost to to to The have enough for a to a have be will diluted in their fair box. or the buying Large premium and deal Happy that earnings, be for be And stock Banc sure. has difference

to who Home Home has funds, need done, do of is bank the that, banker, doing it? with limits of sure then first tell better know, seven is the I'm case, as deal the this with or long probably pay Home, harbor individual deals. harbor we're are stick flippers, in well think investment sure we your it of I because a that are. the hedge it you banker acquiring and that of holders, is And eight as business paid You up dilutive sold, these regardless deal, what can't who investment funds, of the that. What be term Remember won't this you shareholders they good and if I or Is can't the your bad deal. owners in know as to makeup is and we're deal. your stock The a and attention tell that of hire, local morning lot lots buyer. that proud who they shareholders with comes bankers and banker it's a Experience being sun we XXth your Well for you're accretive Happy the get or and X,XXX sell they'll Happy it's before tell firms private M&A. think private mutual deal. short

said, sides us. same Good the well experience into Because buyer shooting we'll buyers to foot So himself out for the to both remain worked and ability should years They box. And that Home around why and fund if I only A can four get back? deal me, do a earn to harbor last I to He fund hang the two. around three this. having have and that disciplined have them walk if paid investor on reason both investor not years or the the the disciplined see checks I in harbor seller, the fund that said to is year now to fun, this and and I have the time unbeknownst or walk several me, to had deal, in pushes can't stay can't have seller and transactions he said in delusion. at deal. worked on we

So I credit Home, traded check for that saying analysts that deal that perfectly. is give he box. Man said the only, the Home

about move, up work on That towards the of outstanding Centennial bankers of getting understood years. the of stocks while. most of the like apologize made and shareholders, a last I’ve it the few a things best little company, one give and limits situation XX a the is move Donna, investment to the You ultimate sometimes as it for it about worked the this for out I It can't one Tipton overall can deal is transaction quarter they be an the of lot and done Happy did days, achieving and of with see credit, talked is one just and that evidenced this I process, deals job but the creating work and to the It Stephen was deals And good, the ran a guess of complication in. was he by shareholders, most I'm in just and Stephens Happy our book water flowing. on went bad windy announcement. today. our talked deal Banc. for sometimes what the but outstanding but he for a be I've fluid I've that great work goals should

and hush it you now back. So have let I will

building Thank your successful acquisition. important hear to to is that's I you for and thoughts things a panhandle nice acquisition the about setting think and conversation. records our It's on criteria always on new But to hear definitely panhandle Johnny. excitement

So enjoyed hopefully your there. everyone commentary

you. Thank

from we Centennial with now for Bank. results Tracy And will French hear

little he and windy. afternoon and Thank all was you, good Johnny Donna to a said

when be Johnny the revenue The efficiency did while level this service the core something the rates including our the bank on Bank loans that managed XX% important talked excess his comments were ago. and million I'm first for which bonds. And PX our cost has of $XXX bank. make months mentioned XX% for bank our accrue. million he the above But the of area, as with color Centennial ratio So Allison months income with $XXX Again, numbers ROI that's bit all non-interest interest said and X% numbers X.XX% XX.XX%, a due the they number John New to strong kept efforts Centennial to the banks funds I and bank’s the common areas really XX.XX proud and at of our regions proud their first that better we rest the evaluated here. that all well stated work X%. regions deposit steady Johnny of operation; with increased over managing bank Bank's non-GAAP the a numbers quarter That's extremely with share I've other XX%. charge nine speak and of than Centennial has has nine in the community great of We'll York company. that. tangible the quarters about still remained today. really assets coming Phenomenal above total year-to-date our by operation terms months about that for and team Bank get think revenue for the associated continued three of our and with the over behind first The nine The low marine numbers that our earlier. for as average and to to the is Centennial our give at in the that to has along for the Bank Net talked with. about all going Centennial to and ratio and ROI income some our a little is year for of. mortgage year, a the the we'll little back throng past was Bank. try return excess equity, year-to-date excess at closed

So exceptional numbers.

All region with XX%. four our last shown growth have deposits year of compared with in Alabama growth community our over year, over phenomenal core regions time percentage bank regions the the growth this to leading XX%

could at to comfortable As very to committed stay company disciplined term term should date. make feel this short long we shareholders continue affect gains not and our that

positioned potential we well is going company strong Our challenges inflation as seen forward. capital, asset we've with deal best quality with

mentioned years he expansion into over heads an have has Texas Happy successful world. Hickman, heck CEO to who the we're bank chairman the and and we in made glad bank, the with as Johnny met of As has happy outstanding Mr. one a and Texas. and We with Pat of are forward State story work our do Williamson, banking excited look in work Michael our to built

the forward the up can. along I be As to notches he look he soon regions joins top Johnny to way possibly him our the going region as

Who's that?

in him there. middle get the Michael,

I'll gets be there. glad when he

met able people forward taking have our that staff great lot to to to been the of Donna? meet a company next we But look we've directors, level. we these and their

Thank you, Tracy. Appreciate that.

give Now Brian will us Davis the report. financial

$XXX.X Today reported margin for net $X.XX QX, interest Donna. interest income we of Thanks and XXXX. million net

to third basis Our QX. margin point Today from few I'd items. interest go like a margin decreased one interest net over net quarter

First during forgiveness $XXX the loans forgiven. of acceleration had fee income PPP million for quarter, deferred forgiven. This the loans third we causes the

Our to X.X million income QX. $X points QX This increased increase from the was NIM. deferred PPP accretive basis to fee

Second, in was additional from to had interest $XXX cash liquidity, as million compared of liquidity to QX excess QX. QX basis NIM bearing QX. result dilutive X.X the we points compared The to a excess the

a the points. positive Four, $X.X basis to margin $XXX,XXX XX balances for of from $X.X to of NIM I'll the other Third, difference. cash BancShares to there compared reference, and for This excess well item on QX million of conclude QX basis historical report capitalized Home capital NIM was X.X negative income few big of the income to a is extremely be historical points. normal This remarks of impact the to a for a QX. QX versus in impact One NIM goal capital. Q. following compared QX the That's points. pleased strong to The had negative for accretion of information. million QX the a with was event $X.X has a impact million, X.X point I'm had basis cash

risk $XX.X one $X.X $X.X was billion, For weighted were our tier QX, was XXXX, assets total billion capital risk billion. capital and based

which which tier As is over capital based was above capital one XX.X%, Tier benchmark well the well XX%, Common finally, which above capitalized equity a capitalized a X.X%. of X%. benchmark XX% the XXX% is benchmark XX.X% the XX.X%, was of ratio capitalized XX% I'll result, leverage capitalized back well to above Donna. is XXX% X%. with of was above total turn the benchmark one call well the the risk which And That of said XX%. was is

And you, on Kevin Hester. for Brian. loan, an Thank now update it's

in the we Same balances. increase to Thanks quarter still while is Donna. amount XX September the balances when less that non-PPP XXXX half the fourth of in QX, said we Pipeline was possibility like in loan was the reflects the loan My dropped and in XXXX. loan after return days for expected quarters continued an the of ago loans through loan what PPP see even still the than second growth and applies comment of last could we solid for month the XXXX reflected quarter previous in half better discussed of growth declines We anticipated. metrics. that coupled forgiveness, credit was first in much half third with with

were PPP million million million total funding by $XXX of around. or a the and us $XXX XX% underway. still million that and loan up is dropped $XXX remaining from make their third of balances balances recovery by our As thirds Brian the about COVID of overall. third modified overall that with only Hotel in reduced indicated balance total to leaves all $XX quarter two in quarter

these the monthly we Our for feel XXXX. across tracking credits improvement board positive very shows solid and the about in prospects

X loans third a and points and/or continued basis to be we coverage in on to quarter better levels to to improved can down points season XX travel. linked basis non-performing pre-COVID any of XX the P&I Credit Non-performing down back basis see Non-performing basis. and XX levels. percentage below at pre-COVID before seven quarter basis. solid that spring many basis. assets improve Moving to a XXX%. are and setting metrics on XX record The improvements up pathway quarter which loans down level basis basis a with will distributions occurring a two occur basis linked with points below points a is quarter points points in That's is points required at on continued even allowance linked

leading and It here, also last want the am very to of work proud the being seemed supporting our about As of more asset appreciate great substitute for I this dues importance in new a as company. is of get XX% those this folks asset and pre-COVID. at commitment lenders again are poor our making and early design all been I rolled at you this system top for With back basis have below across would than they've creates efforts working our this past Home. quality has But week. for over Home a stage always in but low Thanks diligence performing I frontline your never with footprint. trouble BancShares great done faster that and over like XX% a loan or their no I'll out thank XX said bunch nothing the you. loan pilot to our will months. impeccably edge for book. we reached points it our new to were effort turn excellent Donna, was system and which I the job Johnny speak. new people implementation project. taken thank The end-to-end quality. to to we There's This week where the highest want XX for get in are on level. of pristine a all program to origination we lenders a the the staff distraction

Kevin. you, Thank

about growth is hear in Now September. loan the street to happy

a trend. positive hopefully kicking off So that's

Now turn CCFG. update Chris Poulton for for to an will we

CCFG third on grew to In afternoon. million solid good and Donna grew real million. Portfolio you, achieved $XXX $XX growth and estate originations during by saw as portfolio of commercial C&I quarter. borrowers We would approximately originations Thank facilities the particular, $X.XX million. over book or We with during C&I quarters. cash pay to several redraw expect in modest XXX the in facilities the down see quarter. coming the billion corporate excess declines the quarter

a our pipeline to the the however overall see process as persist during deal impact in do and closings will dollars, an delays As of demand Supply for our with the beginning under calls, to pipeline. I've commitments a expect our which transactions the have a market. disruptions the delays and products year, spoken result year. in this originations performance remain unfunded up I process. at few We just is QX billion the We the the of grown increase continue cleared closing in past several with the $XXX quarter. In million pleased did about chain from during the the

you, Thank Chris. appreciate there. the I report

is update an John on Marshall. Now for boating

Thank and of good profitability the the growth defining COVID normal. you, offer are our cloud for guardrails seem Donna lifts to terms in afternoon. and post-COVID soundness, new and business boat test everyone that business something our quarter as in the third The

points. took recap, the as originations of XX we XXXX, consumer Centennial COVID ago, our Both of average you is is sale $XX basis the in super of no COVID has million. core of of efficiency XXXX With years and with been $XXX accruals reclaimed rebuilding million achieves to XX and mind bests to pre-ticket of the Based of future. asset we Newport, returning non book. retail LH demand and On A on throwing the impact inventories, $XXX note, still than XX.X%. and shows XXX. in if this X.XX% has will are recent dock, since of backdrop, we evidence our That quarter personal XXXX buyers our and is Finance there's positive already $XXX Finance the to on million on $XX sales time. acquisition recipe ratio XXX million quality we back pre-tax continued me in have in the The a and a Donna, balance four the remain elevated. year has show a profit detrimental replace, result were closed a exceeding contribution commercial sheet. Fort default, in prime million status activity that harbinger the growth Annapolis Importantly, inventory that shrunk year-to-date while positioned XXXX. Recall COVID difficult next had To for full an prepays in well cash our we stimulus that the my million. prepays. Donna XX with of rise started Canaan, reduction on steady the down basis maintain now Delinquency points week, sheet year-to-date, to to balance conversation We're consumer turn million ROI LH early first joined up are will, if down Lauderdale let you. larger similarly goals in to the for

Thank you, John.

Tipton. report final comes from today Our Stephen

you, Thank Donna.

a effort involved call our in a those by was many tremendous long First, knows thank And process, of lot now everybody people. M&A participated by efforts. due put I'd like our days to forth diligence in since last nights teammates our as who all and of

documents Happy look filed applications have any the should the day have mentioned, now. our we're best for and and filed friends we proper SEC regulatory future. Johnny know enjoying forward to the to the As at announcement, Since getting

efforts color details the deposit and give on additional a few re-pricing trends to like on activity, I'd Now standard sheet. and the balance

footing growth. regions nearly we Growth our of the in in XXXX appears growth, continued million as for the total over third accounting to XX now was quarter XXX. New office XX from the billion climb It increased On deposits $XX deposits. in during million and of side, north deposit balance have XXX led York by Arkansas followed million total the with quarter by solid

I the in deposit charge mean, growth. Chris led

correct. is That

some what don't. I do? My you must deposit Gosh. do money, hot Chris somewhere. It Chris, led be

them. getting we don't good out at Turns need if deposits, I'm

core quarter points over non-interest our costs. X.X million of funding deposits base. in QX, over points basis the in and billion XX were down deposit QX. bearing bearing Interest linked Switching XX% average quarter XX September XX quarter costs base, XX on Total in the linked on on now balances or at basis Focusing basis points standard total and a to points. a deposit X basis increased three basis to basis the

time While deposits, we are deposits. time at X.X% an have those low to term of near at lower CDs all still maturing total opportunity

Looking in QX, we at nearly have XXX million X%. maturing

lower loans be or million of will bank total with community those exit. in Switching production footprint. with coming So XXX see picked X billion the total those QX over up opportunity the originations there from in to the

As and mentioned, disciplined legacy borrower large pricing included that structure was one nice our a move QX there we volume proper lighter Johnny at to generated which Tracy and as as with well. million, force Payoff XXX into long to in the underwriting served maintain market permanent well. and as a multifamily approach income event continue project

I in build Congratulations areas $X charge event a And improvement for helping hold impact to for the up. set that, margin to with back you and to his over excess income Brian impact. closing, again. interest group net billion group our beginning I'll that we're in generate liquidity, is Services we're the have base. In mentioned management PPP, As our it in to service Tracy and we customer of wealth seeing strong management. normalizing Donna. mentioned That relationship in recognize now pleased like comprehensive Financial and assets to with under turn Centennial the Davis threshold how group, revenue the crossing the several when of made the with to remarks continues would

Well, Stephen. have you, to Johnny, any additional comments? we Thank do you Q&A, before go

show John are Fort in boat the doing you Lauderdale?

next be I'll learn you disappointed Wednesday sir. like to weekend. that join the not to week. there Yes, us. occasion through sound I'm have may

have you I as conference be a and fact And that. I ordered have on will there. that display and boat I me that hate formula know, I new there a they hate one have the I'm

Earnings to Overall everything. asset was anyway, unfunded And is going people what looks quality as year we're me you get, our strong seeing we by able and won't good, you highlight to need, we heard But Banc earlier, earning hopefully that. I that. Happy to look the report on more as about go give key as Home And profitability. strong Kevin can to heard because and you people the that I capital to out and get of that ratios, the I and book that ask of increase assets talks So And family extra the should now most Hester's is smile of assets growth we I income the There this, I that's the have. Brian I up that the can't all but guess to miss. at loan strong earnings. had make picked and were the kind everything's $XXX quality. asset and on makes get commitments plus of September run up the for the as of us we good, going good. assets usual ROI our million of fourth much the a welcome of I that than BancShares awfully be possibility conclusion growth said manage loan we and said,

have we we're going you I want tell to loan going I you growth So to last that have we're loan told don't didn't. time because to growth

am leave and just How say I Donna. it it I to that that. about is. it'll don't So alone be it what jinx going is want to

to guys say. So, I'm conclusion in

On to quarter. the next

Stephen. else. Brian, Anybody else? Kevin. Anybody

No sir.

Q&A. go let you turn and Well, I it you to back to

turn Thank over that we'll you. Gary, you. to

is We Capital go Markets. and will RBC ahead. the answer from session. Our begin question Arfstrom with question Please Jon first Instructions] now [Operator

Thanks. everyone. Good afternoon,

Hi Jon.

what that August September the growth the But all and some of changed some in your think seeing? you question, of between maybe do least the terms demand you're you're Johnny. growth question, On that favorite and seeing of

I Jon, this anything don't think is changed. Kevin.

We of saw in things we way, said that think happen like all that the the second ago. when we some I our felt XX pipeline. that year year felt we is we've days could half thought and

it's it, our If the taking least twice think, year party listen it's you that just at Chris things this done, that get to longer once municipalities all to said providers, third has I or of for what some while September. We're saw get and on a things think to happened. of we that working we've just deals done. longer was in been that taking seeing part I seeing happen And

the people And and our they’ve time. I we different of looking see, actually, respect, corporations, as of like stealing loan company think the over are And quality the sold loan for saw haven't. from and of at fourth statement it margins, growth is just growth. in and person difference at period of bottom and yesterday, that margins we in truly was I a we waste to lot a there last, didn't a each the looked other

say loan on. make stuff we quality growth of about that I talking I'm when So can money

menses So But I Stephen, do that not match hard that. we've what to been caved about have we stuff. forced in forced done that. say to it's don't to We haven't we've But hard to. not we're XXX. to that. And really some into We've overall, to, like think, been it's

look and increase out Yes. PPP yields the debt about period, or XXX, plus the When been or and core minus. we it's five income in strip account you over the quarter four loan purchase

as We haven’t can't seeing to harder the fly. gets and you see, on we're change really don't they it. see cycles non we they these frustrating you and And in chase. change coming end And recourse it things front nothing, lower go more equity whack No, that, chase, stuff. we The terms up. and and the those that REITs

had just growth do lots could We we don't loan have said I we pass. As just that. of

Yes.

in about think a now hot you're XX% to running to back deposit ratio. I and the loan comments at

on broaden opportunities. topic you're Chris quality you I redraws and seeing out? business. where guess some that seeing John seen rebuilding you're So about of have touched the quality encouraging it inventories it? Chris's hear on is loan same C&I this you, the are mostly growth in it's the evidence it talked to Or business

of seeing, community the it's think plus pipeline days and activity activity footprint and as what Florida obviously regions Florida in tell can lot No, produced but internally what here, and there. there XX folks of activity southern moving you South of from those the seeing can lot last was Kevin lot to I South Chris what we're down I in regions lot in a within a there's Central, the a imagine a you he's think three in we east see

bank lot think activities So and all where his the well. a group of coming side as community I then that's from Chris has got

got a Chris comment? you

I don't do. know I that

I for think pretty us, similar it's couple story for the been quarters. last

and across finding deals than and deals good the line a then are finish We markets our demand those refill our pipeline. takes longer across like challenges continue products for to continue everything to but the see we'd the getting all little we

So about continue to feel pretty good things.

on deposit, just you. one for then And Stephen helpful. That's

of lot a of this have lot class a like You've, deposits. problem of high you banks,

positive we So higher? base react rates move how continue do you expect a interest to if to that see

move of keep think where I opportunity today have be about to see able year going that absent that the think a like we'll high our class have that And it be mean half we to to Fed, more rates non said think over is things last from base the fantastic, and our on one that can the, still to the then, there today. some I should to foot some problem XX% add that the we get we as is is I less bearing customer the and base grow I on like fear contract rates up. to interest has I

but we be like will will while happen. top hopefully CD it the say that'll deposit it you in in I bottom to this to that I cost rates specials but be to maybe we're as a year out be see don't think it's going be the we to so start race somebody past, be hearing big it looks seen may there year, with some on know could come future, could like we've And next before the the go up right, but race

the I for Thanks appreciate it. help.

We'll see conference. you your at

Looking to it. forward

good. sounds Alright,

next The Gailey go KBW. question with Brady is Please from ahead.

thanks. Hi, Good afternoon, guys.

Brady. Hi

franchise, and good term on pro the going is Texas. to markets best longer normalized look a but in to growth do growth Just one you Florida home? in be at two In environment in rate south loan are when of think your and what forma consider I for you the more guys growth, a

pretty we're still forced XX X% going X% crazy think to Well what X, was XX, all to know growth seen just I a out to I to haven't picky didn't there pandemic. normal guess But time. rate. like probably it is fiasco today, times, exciting XX here then right. at that there and and some that we've the so and the times, we X, be normal I And think is asset quality into I going happen that side. it. been we But are we've and see exciting. excellent, is been I don't think, I opportunities mean, loans just good, be is funds The five, the were up, as much I of through to at the reading the going last was down. to rest cost is at about Happy too great. went you some excellent. end payouts part's looking talk banks the it. down. addition on and the can But we of sheet. big loan I had confident But want they time Because the I was said went off The We

quarter. website on don't in much We head. good. $XX X% numbers I ROI, the multiply just and That's you ask doing. a think and can those all we take growth assets point run on here billion they loan. the for haven't in what the the I at calculator. FDRC before for loan of than I I to have I is additional them a this imagine seen get But guess I at worth need some X% be can't can assets have get and look my time, about that I and can I will company more mean, ROI companies

expenses but some key. you it's little really And Homes. bit line So is at about point, a off here big of growth asked in the Happy kind goal getting is with I'm our loan running

else anything of needs As you see to the that not know I fixed. be there's company that inside

April. sub-debt, And becomes then, of like that in XH that XXX I guys have X talked callable the you possibly know and about redeeming things million

redeeming on the or in updated all Happy have your Maybe Now just mix. portion a you thoughts subject. that potentially

nice If to you there? I think a benefit of it all were redeem to it is earnings

working that. looking we're agree and at with that on And that. I we're

how put Brian? back got have now We much we've

back we'll million to-date. the XXX XXX payoff get have the million put by date. We have And time we got to

between no we wouldn't have kicked little up offered would one we are. to have money go now can the friends we year so over back and guess just call. bit pay where date that over five a can and off. us We some refinance whatever we on payoff to I customers’ has our that Stephen that and like if Thanks. we of

balance half don't of month it and to We pay pay would the get entire some a $X even of we it. borrow money off we'll at it to we it and least all. like But rid the million on if off. pay And get a pay to will ability off, try

least at it? on what So that's like. it any looks comment Brian

about. talking think says accurate what I been No pretty what much we've

dime. to pretty about That's a a that's good That's dime. close

share when share about dime a of current up, to goes It's closer with count count our our them probably $X.XX. XX%

for chest, I think really very ratios of is in much. deal us. I'd don't Well, capital our we keep important the impact an Happy plenty want transaction capital to just

No it's basically doubled tier two where and tier two capital capitalized. capital to well all

full and it that off get in sense pre-tax us million So deal. take makes hopefully and $XX for rid dollar pay to it that opportunity pay of

good pretty for So pushing in game that direction. be us. a that's We'll

you the trades finally, active on quarter. some attractively. be continue me here? capital like pretty It also on for Do The the you'll still theme. then you this looks think And to repurchased from buyback stock stock

the on buy the We lots like stock. Well, of lots buyback generating, company were we've active and been We side. capital. always to generates

But and more point this at important do think that. they're We'll to And increase. in here. to have increase. dividend going get I money patient the next a patient a be processes it's through have due out these Happy They have time dividend, and dividend the shareholders to our for done, get to we We're be pay in sub-debt. transaction owe we the year. So for to just

right. buying continue buy stock. that's priorities limited the But right based the though, market to the on company that's we'll think for We're XX in can rule top I the now. the we two be XX(NYSE:B) amount

months been average plan we're is to daily continue capped prior we to. on a to But and the Happy at. do of that and have to announcement three daily able from we're of The where basis kind

guys. Thanks it. Got

Instructions] next question [Operator Please from ahead. go The Stephen Scouten is Piper Sandler. with

everyone. Good afternoon,

Good Stephen. afternoon,

reserves, I highest guess obviously one just loan curious one I the the about was thing of loss the it's have you it in goes industry. reserves

there in So your you got sitting high but ratios, capital you do not only other have as capitals reserve well.

higher So level think some that point, the like down much how do today? can we lower but about from how you about accountants have to think reserves, at a you know this to here of make kind I or you take that?

I Happy get different I things when don't, diligence, one. inside did and even we due But would in though $X company you a billion think our so. sometimes look we bought just however

as going that to something, up that with quality us preserve, but like try try prudent we're to do billion for loans of think to where be we We it light turns we're for the think if here. point on in now, is, I think do fact in time, I out that. $X the think asset right And that's maintain picking So of after to to to that hold may that. we forced to be to we'd particularly

year for hang know do we speaking. us get into we'll the at on to I That's it's let to through just move have for to next Happy least next is I any year. they'll we us prudent that me that. if Hopefully don't don't think if do to probably hiccups can on. and that

I And that out opportunity terms you bit book on of the and if CCFG business, little aggressive in and that Chris deal guess, and got growing But thinking and team the let grows, us set of think then do is about a as rapidly there? more announcement that group sheet asked know his balance call. you you how be I be would

team Chris his do to job hell a for Chris and Well, of this does company what want Chris one does. I does.

we and then he up want We but you all the to call were day front. haven't and next had you Chris this said, it pay like know any do I me loan problems before XX and and we were I'd the

to I'll I all So let Chris ability, pretty do talk worked How rope because do his how wants us. them. has done I'll us in the world. well done with has the he what track for comment. much the record that he and has to let him he like the well of that's they've mean, to And authority it. they've us. for He

to Chris too like he much. likes collect I think So don't I don't

to So make let Chris, a want him comment? I comment. you

we With Johnny given Last think we've a said, I Yes excuse probably size, me, sheet balance does I rest a more so more about the that of that felt that don't and said, comfortable probably sheet Thanks. been room sir. like reasonable we thing, limited. do as were think to give the given us I and little feel about that. get fact balance maneuver larger, think that the

honest or I there. I rush you, on the going But etc, certainly opportunity do next over Johnny me to certainly quarters take paying so. think me that there's that. think that. right advance period, offer whatever So over would in is the opportunities year, years, the and there out with to up out away, we're didn't is be don't of I'll there do coming

was to joining billion. $X this way over well of a running as prior reference Centennial, Just group

So the me. size doesn't scare

right ways pick and feel as just we time that things most it's a in do to with. our think do and the it able Johnny I being in we I it comfortable said, think of matter

So But to. that time. say of to be wouldn't do over the I period see I feel grow But to pressure why we able certainly any it. reason don't would nice I don't it's

time. Perfect, very appreciate color, helpful. the I guys. Thanks the for

Stephen. Thanks

question Montgomery The is Martin Scott. Brian from ahead. with next Please go Janney

good afternoon. guys, Hi,

Brian. Hi

well there with that market the just not given in your Stephen one all the just yield in of but loan find priced the it's with conjunction competition back kind to of just the kind but deals, sustain where out liquidity at the growth? and maybe loan and to expectations the can your just And somebody the loan maybe question yields. or loan, Just growth, comment

at the fee. is the the think in me, origination for of quarter, Community component the the XXX, range excuse you Bank before biggest Group, I was production total if our the XXX-XX yield coupon which on Yes, was look

this So mentioned, lower you'll than there yield to, to but the originate is we'll find continue group where where our discipline spots that's back net to little whole a maintain we can call volume. has the and today,

what? a Well, billion, originated he

X.XX, I think.

X.XX billion quarter. the for

away, So are the opportunities still it hasn't for there us. gone

that. to time come really by working less encouraged we're than been up. slow. picked So running for lot lot it's they're of are that. of kind about, a we've talked as And around, We've beginning Kevin on period a A things been of

just And come to a our have some taken fruition. while credits to of

like So I to much want disappointed I'm be street. to too see tell pretty be With the I want I disappoint we optimistic, because or pretty optimistic it and don't won't we it. don't

guess are payoff And a bit see a little a pretty mean, to is as bit a maybe you on with I And the doing lower potential that I kind tax a the volume of then of into of jump the then, origination do out the I the feeling maybe I decline payoffs. now there? possibly. was on how this given big changes level step this of year at look jump you that just quarter and kind how of more levels little guess, about do you quarter? sights next origination law back in you think volume I conjunction down get in a about some the side? we kind levels number the these back origination mean, in a mean,

like side, to ended. Brain, change the it's there's is that Kevin. could payout tax from law happen. see year before here people I stuff you mean, the could I certainly chance a that feel If think some going that

bridge I over and On acquisition, lot the that think longer deals mean, develop our Chris's the time. we're side, take and are it's production group of, type they those a I up draw type doing a between function and stuff group, of construction to

we've closed and the X, going to the next some on bank of you're stuff side. over XX the community fruition Chris's on side of both months X, see So the

just think We about, in take want that's feel be. where feel it's, we of I going as think XXXX. We markets that have and I it we about we to second to grow. feel it good comes year. to good good So good about still the half are we're kind And

we hopefully, that's has get Texas, been awfully been Texas strong. good about mark. Anything a

costs BancShares return the to to take kind of of can getting of we're it'd assets for Home assets, going $X just the their the be we're with with close work they we that to revenue and more be line because if a have plus out do returns to kind side, of anywhere So million revenue to we to on Home got get in the they really side. bring us,

as the the think is revenue getting Happy you So of it, about doing toughest getting one the And part is and toughest earlier I said that's the the revenue right that. side, part. is

to don't to work have of the just need side it. that on side We we other work on So of it.

that? Tracy, on a comment got you So

some we've and I they're potential the us Central they've the on working borrowers been of got growth their relationships. some and Texas it. Jeff had increased opportunities on with at and we've mean Scott that Looking with and piece Robert communicating already of

of with time. than a time and down capital So had in bit a tone position, little of they've opening bit. as Johnny little mentioned their his are their there over the some rates it managed better periods remarks, ours But that down to they've

certainly customer So staff relationship members we going opportunity as give think us said. to to there our next and the to the take I is those size level

here, wants be It or David could be be coming nice. two days. mean, with really he in four it of that in called projects just Florida the out days five are last to the begin five huge ground. you I us or could four

customers you're have that it they encouraged. It's to at I feel that here the given not, and meet of it's rap may. hope stuff and they're kind upsize away encouraging that rap, continues this able Happy from is Enterprise some non-recourse. people do like pretty match I the not [Indiscernible] Our to doing. want with been, deal what to

not doing leverage So and non-recourse X.X% in -- you're XX% no

as Brian. Is maybe far Maybe most color. quarter that fair? Brian, forgiveness sounds it of change performance PPP quarter I your this up when wraps talked pie kind of housekeeping as outlook that you the the that I appreciate has given what just guess the about for this one from year. one like last

There PPP million this only the of and had PPP is last quarter. of kind income Here's numbers the because next had, be X.X income we this then has period. quarter we for from of it million X.X to down

start So couple were to talking this that's Kevin we're the morning, down. weeks I earlier on off in a drastically pretty first and as of payoffs. good But slowed

recorded that's down first income we few of about a So in million weeks drastically. slow going of to the dollars but PPP October

So we to only trickle million will it's million X.X of make undoubtedly probably and down. seriously going last There's month this X very it period.

really so year, the point. next The negligible pretty That's Yes.

okay. Thanks. I appreciate the So update guys.

Olney The next ahead. question Please is with Stephens. from Matt go

liquidity there's it that to the Want loans of and is Thanks into over elsewhere. preference I'm bank at plenty like for taking to deploy but there seems the excess question. time, to ask a position sure about the liquidity deploy

about So more get give to not of love the that Thanks. today what there's appetite portfolio? more much more color deploy that securities some constructive for hear if and to into you're on us looking about to environment kind just deploying into appetite securities

have to do guys and there's is you problem. X% do want that I a Stephens, let return you what resolve

X%. That's Just it.

too It's easy. one. easy. too It's pretty That's easy

when this but don't little desire have more security We securities, lock bit put keep point. put have go of than big it but I we that desire now I securities We guess a for that in they're been long have saying And we'll might will at to four We enough, we continued, rapid all I that say be quarters. four desire. we've well, for saying just in. be wanted we Rob, We for up, about years this. write with don't a live just rates we we

able And the may plan happens, rate. the at that we us. tax into that pay Biden not Biden that may be might not However, plan, might pay hold to us a If or rates [Indiscernible] I lower spinning turned six five mean term Kevin to sort of do competitors of recently what bunch buying our then them, on just forced had something reporting at was friends of loans. I'd one look that long of done be security. a And bought else. rather mortgage box

deploy mortgage going X.X% is there in wherever But not not put they if really So yielding those a we're worth to for constantly securities to don't that We looking XXX, to do loans go we're million buy by, of that. go XXX. were going dollars opportunities think funds. to XXX, you just a net better I are

over year-to-date there. those not little XXXs. going looking will a a Kevin rates our time. up to Kevin are it period So X.X% we're X.X securities. us thought and mortgage put on yesterday, up that for knows, we're and bit, Right maybe a process come of XX in Maybe at

is Certainly tricky environment. a

Okay, That's all well, the for quarter. guys. for commentary me. Great thanks

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

support I hard you, day of most team every know that joining night Thank this of to today. you every Thanks works time. want for Home. you the for and Thank your Gary.

go HOMB, an here leave go have never you can HOMB. we home, expression As but never

have hopefully revenue on expense as in the road and Mike side, many mean, great We're January like the serious the give Bank in So we the to, we and assets we that got Am to We I on work would their people of and it and will about side said I do billion country they addition Tracy can hopefully before, down being years now, but close plan. right way do work $X I hard Tracy? I at and Happy hopefully their the worth we that. with will got or for another very us the and it. best one of been of banks team we extremely of can't

extremely XX together. ever Very think well. Very That's well well. I All the working things are outside best out Johnny. me of

did. the will of better he together except crazy oh best working for tell we're You said is heard he all than that acquisition you that I years ever ago

was he because Only the one first right?

days. comment She's else to the Yes. Anyway, else in your have support. XX to we one. Anybody you talk for you first Home, about anything will thank

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

disconnect. now You may