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FB Financial (FBK)

Participants
Chris Holmes President and Chief Executive Officer
Robert Hoehn Director of Corporate Finance
Michael Mettee Chief Financial Officer
Wade Peery Chief Administrative Officer
Brett Rabatin Hovde Group
Matt Olney Stephens
Jennifer Demba Truist Securities
Kevin Fitzsimmons D.A. Davidson
Catherine Mealor Keefe, Bruyette and Woods (NYSE:KBW)
Alex Lau JPMorgan
Call transcript
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Operator

Good morning, everyone and welcome to FB Financial Corporation's Fourth Quarter, 2021 Earnings Conference Call. Hosting the call today from FB Financial is Chris Holmes, President and Chief Executive Officer. He is joined by Michael Mettee, Chief Financial Officer, Wade Peery, Chief Administration Officer, and Wib Evans, President of FB Ventures, will also be available during the question-and-answer session. Please note FB Financial's earnings release, supplemental financial information, and this morning's presentation are available on the Investor Relations page of the Company's website at www.firstbankonline.com. And on the Securities and Exchange Commission's website at www.sec.gov. recorded website, be the approximately today's being on for conclusion is call. Financial's FB X call and available will replay of Today's hour after mode. been time, in participants this have At a all listen-only placed Call will be for questions presentation. after the open like Finance. With Corporate conference call Director turn over that, to the Robert to I Hoehn, would of Please go ahead.

Robert Hoehn

Thank you.

including put XX-K. other periodic or that presentation, statements are to Securities facts Federal forward-looking these current any statements ability cause under achievements such this by statements. Except revise materially contained predict, otherwise. with future of of subject statements. FB reliance FB Financial or statements forward-looking Financial's disclaims and FB any Financial are Form of risks may a control laws. to forward-looking to such may uncertainties results differ comments required from listeners factors make Financial's and in update Many in FB FB SEC, such not Financial Financial's this and results undue detailed filed obligation events, to and any The whether description of the new implied expressed more beyond or or During are on FB which risks or as result forward-looking information, by cautioned and forward-looking reports to performance most contained recent is presentation, as and constitute actual the law, All other

which now measures Holmes, firstbankonline.com a over this earnings in A the on Investor available as the CEO. Financial's comparable of - directly In reconciliation at by website Financial addition, morning's turn the President on www. the would of SEC's these remarks G. the and like our are comparable Supplemental FB measures to the release non to non www.sec.gov. and financial Chris financial Company's include website may presentation to of at measures, GAAP presentation GAAP GAAP and available Information and page defined I Relations GAAP is presentation, certain SEC Regulation - measures most

Chris Holmes

Thank us for joining you, and morning. morning. good Thank Robert, you all this

your of in We had we EPS share. and FB We an a continued have reported delivered in excellent tangible that $X.XX organic strong book growth, value growth always appreciate quarter our per Financial. interest

Our of That the share XX.X% book a tangible value at of at became -- September was per Company public the growth annual year-end in rate since XXXX. $XX.XX. compound represents

than on adjusted on reported were of straightforward. we've While our environment. given the less tangible expect extended return return overload adjusted strong and assets come from are our equity and average our of common returns the X.X% sound quarter Earnings and for reported are ourselves, XX.X% XX.X% slightly to relatively X.X% and

last show us that call, double-digit the growth quarter's get our for year. I regional loan which could quarter, During activity fourth Presidents mentioned thought that to

were loan excluding usual or XXX the XX% As BPP for nearly they us puts We right. XX% full year. growth, had the million at quarter. of for net This annualized

for XX% non-interest quarter year. XX% and had the very bearing deposit also strong for annualized with We growth the

margin provision loans by environment. on and the did X quarter have related and in quarter. X.XX%. very the XX.X interest points to fourth Charge-off assets classified Which had leaves basis basis X.XX% X to the quarter zero flat million for XX credit a the XX NPAs of XX were release loan stable losses percentage of still at our the announcement exited allowance holding net down in dropping we mark of for We consistently with January to Expenses manageable, basis of with to off was been of those written We in describing of quarter capable XXXX returns year in for it. we HFI this date basis XXXX, for the and date, of significant was -- We've the a -- marked remaining gains that factors against portfolio those, maximize strong very hold very bank. paid sorry, healthy as commercial as third far yielded our points total on to the portfolio had primarily as relationships Our a net at and loans during had at rate loans the of continue at held We gain we be had X.XX% to in work sale of year-end. non-interest expected, the dropping a materially stable as bank. our that -- quality conservatively and asset results merger, and the our been X have the were forward at -- it and left. continued have million value out to we so it it today. until million very look prior manage in maximizing XXXX. a loans we and the same to X the managing it, positive portfolio All people merger have the from $XX.X Franklin at $XX we points of

of Financial, portfolio been its core the has legacy the Franklin for performance As stellar.

we our annually. long-term loans As to organic for XX about been has we our entered target XX% outlook, XXXX, towards think if

upper year, the in believe similar be XXXX. for With will environment of the the we're on growth range and the deposits. that carrying momentum that bearing current end that targeting we non-interest We're into we

expansion remain rising until margin year as upward. a net move and with will rates would Expenses as margin increase expect stable rates rates Our rise expect, we're growth. and should throughout for healthy the revenue you we interest positioned

in XXXX. expense We high expect an growth to in mid single-digits

fourth the down came challenging Moving significantly. to mortgage, volumes a expected, environment refinance quarter was as as

were members contribution leverage case we announced, the for In founding first prevent for to volumes, limitless, it banks opportunities to these in growth. technology than One of the to quarter area USD blockchain as We will -- and and feel opportunity much provides and innovation will foundational look us fourth. enhanced both and week growth. will conditions for efficiency cases of customers. that it strong different we and other bank don't nearly mortgage public USDR quarter breakthrough first persist organic in present these in believe five did use the expect became believe our XXXX of We short, which last are every work of on responsible consortium, experience, allow F our the doing the one focus we

member and Officer the Our our Wade strategy call. periods Chief Administrative the consortium. wait plus digital he's innovations on USDF a of has area, led our board

to opportunities acquisition and banks similar the we've and of their in, company have markets also be known execute XX continue shareholders. high identified list with combined with evaluate managing would bank that we combination roles of on a to ability months wish will both and added merger, partners the in creme customers, in we local we raised in overall significantly as active that the talent dominant in mergers negotiate have degree vital in play With our resulting We of Franklin attractive community to The Franklin, the in want all markets and that our institution. our markets delivers after of a identify community for in footprint manner to level confidence those crop. a contiguous and are resulting footprint and and that value associates associates, new banking mass nearly the

the excited need distract a our we're -- organic on right bank process. probabilities. we're its front effort we about we put team with then that into for growth in our integration organic care size, too list, If the the now don't pursue sake hasn't made acquisitions opportunities of For to to profit very us focused of and growth, our

little So more with that, over I'm Michael our going to in detail. discuss to results turn it a to financial

Michael Mettee

you, good Thank morning, everyone. Chris and

Speaking continued downward in the mortgage provided due the a in the first refinance the fourth system pressure quarter recent in a to anticipate on first seasonality for excess difficult capacity results quarter continued with and X, the refinance to margins. would The and rise seasonality rates, in usual lower $XXX,XXX for environment Slide fourth different and ultimately in contribution illustrated volumes, a mortgage segment operating -- mortgage quarter. similar volumes, decline on resulting pay of and

address on our margin, gain Slide mortgage, Before the of moving a right sale mark-to-market on want bottom X. chart value for I in to

as margin. on We a have leading sale to indicator the mark-to-market valuation pointed of gain

related loan had settlement sales. a This difference versus to we quarter, of hedges timing

valuation mark-to-market margin, gain a higher our slightly lower otherwise on sale than been. have was and would So little our

expect with mark-to-market We quarter sale margin to those to pleasure next numbers be the XXX and more range XXX to X.X% our X.X%. to again, in closer

X.XX% interest declined by experienced mostly Moving margin margin X.XX%. net offset the further that on saw to which the the point decline points at four remained to of steady held the the cost costs quarter, range we of Deposit our existing quarter, in contractual X.X% yields. six offset in progress flat deposits, new portfolio basis consecutive asset yield the basis some make we have lowering essentially the we loans. served a loan on on incremental for compared on which at fourth Yields of the continue to to in originations and the decline our

margin remain happens. well-positioned it balance seems our increase sheet expect is that band and We eminent, to rates increase, the same in our relative until when which for

show our a +XXX interest latest Our interest scenario. XX% rate shock upside, scenario net in income

are that not of loans repricing increase floors, a X move. in with have of X majority support reprice floor. variable or a Those rates will of those have billion currently don't with either receiving within the We months rate any from

floors. lines that are $XXX XX With points them I their additional have in within an of million basis

have We interest-bearing also with billion increase an $X.X in reprice still rates. will that cash in

costs asset a making income in environment. that quickly point, as I last deposit The of, in industry round nearly competitors What the at non-bank think yields. will and of weren't is interest confluence during to rising new the materially Our rate predict. prevalent increase the of system difficult follow increase this it liquidity will increases, unsure the rate better in how is

growth in deposits. showed deposit we quarter, solid the to Speaking growth once non-interest again in bearing

Excluding quarter. by non-interest annualized escrow-related XX.X% the in our grew bearing mortgage, deposits, fourth

funds those would elevated or driven an However, XX.X%. increase We seasonally at This through public to fund balances April as remain accounts million May those approximate to to more interest-bearing $XXX deposits up. decline. in growth a expect was beginning by began before grew

$XX.X to Moving the million. at allowance

COVID forecast a relatively the we levels model impact bit release from had the related portion expected. our determined The of flat across fourth reserves. the economic Our and primary beginning of quarter our appropriate qualitative quarter minimal our vibrant of our We on in this of change has we activity that remained on The driver was that used change was third as quarter. stayed markets seasonal a winter. the reserve larger economic was release in this than to of release

count of omicron, sheer reserves. some However, our we maintain the with cable-related case of

at were currently quarter have shutdowns renewed from our or $XX.X banking absence to core expenses, any not donations XXXX. smaller reserve of to down We were the in changes the than million. be in quarters likely coming outlook. and of $XX.XX last With were consumer our customers’ will our factor they are expenses allowance the slightly that releases this further over expenses Excluded may Picking in monitor million X.XX%, core quarter's segment impacts qualitative forward. continue million that we to behavior releases are X.X XXXX rate going of charitable run from in expenses

expect quarter first fourth the addition FICA we In would (k) to XXX be normal quarter the to to and due growth, to contributions. elevated compared

relationship should For growth innovations we growth. as aggressively be and feel in which topline recruit and both we expect XXXX, of to managers, intend we higher expense invest to to lead technology

we've begin. our per able loans for to sale anticipate will were to commercial amendment's income of was second at of portfolio loans our interchange the Touching non-interest on to capital expect plan repurchase growth to $XX.X stock $XX during related retired banking some we games million X.X to million and last in of a non-core we point as that $XX.X We gains been as million losing would year, share which portfolio our range half the on for held quarter continue our impact with we on revenue sale and Excluding $X.X Durbin our quarter. Quarter-to-quarter, $X.XX segment, the commercial million. the management, redeploy million, the result. until held $X the the

to our little financial of the a shares will close. I'll million repurchase turn $XX have remaining back over current when to continue things now authorization transactions makes over on Chris We and to sense. such impact

Chris Holmes

again, the right. proud we're everybody the for color. bearing Thank non-interest pleased That for Michael, loan you, and concludes deposit of this and and with the at growth. line you, prepared remarks. questions. for for our quarter point, interest results We're the Operator, open All like to your particularly growth up the the team we'd our for Thank

Operator

momentarily to Instructions]. [Operator time, time question-and-answer will we session. Ladies roster. the and gentlemen, assemble this begin at At the we'll pause this

Our with Please first Group. Brett question today Rabatin from question. comes ahead Hovde from your go

Brett Rabatin

morning. Good guys. Hey,

Michael Mettee

Brett. Morning,

Chris Holmes

Morning, Brett.

Brett Rabatin

XX% segments think I the mentioned just on Congrats and and to Wanted for you make. think side and wanted Maybe see holds this just geographies growth. what you pipeline you and just the from that maybe the to on the start of usually hires that'll be thinking and the looking that, -- then generally about what loan higher you to speaking to strong just guidance giving the year. come that pipeline guess, first on talk that'll about XX% are you're

Chris Holmes

Sure.

Okay. Brett, thanks.

of which development spread all, loans, strong the loan look order construction combined core, our of & be growth. C we particular product, growth. growth to depending had because We First as kind that's to across and the well. we any of lines. been we had I in on But because single product -- on largest on board. -- it's it's at, see across and the continue you the This And positive bullish not it different,

We residential go of and way. two led back continue so to quarter all if the Multifamily are -- growth have We in those you had growth move. strong a

the that, types, across been again, hard to Because it's it's the whole spread geographies. to about questionable, was a good the heading to right consistently of XX%. the into that with Obviously was feel product into next up but was pretty year, this also continue but went above quarter when It's for middle and year year, XX% we able XX% we for in So spread year. both predict that. deliver we've range. to for across we year, loan significantly growth In ended of that very outlook the --

But year, acquisitions generate We're tend a of of capital. for headlines. at have think our well, geographies existing Then we to the we're next to to in there novo expectation the always existing range to deploy on of of And So way lot we is. feel to recruit -- a out we our a we looking in as our most frankly, that, a on -- chance end basis. could but grab the that searching and something higher comes both much hires, we de in us. what We're do the able of best not well lot sometimes as folks for capital, trying geographies. being pretty there's have that it

geography themselves. being active competitors. where the with when areas more those of so not There's matter And got and they that were -- be every every talked opportunities or the about on would where X taking -- that advantage day It's strategy. we would present we've particular day, having of geography the one aggressive people be it over particular any a

Brett Rabatin

if X, of Chris, talking assume get you X we points. hikes hikes more That's in upside appreciate I we rate rate XX% And get then very Michael are margin. know year starting the only XXX a but helpful, X March, this on with people basis question to might maybe it. like that XX the mentioned progress? this about a But year, there's NII you for And If be lot I'm we and get year, I a the XX rate do seem perspective, would cash to of into hikes curious the assuming margin from do that a think know basis this up go margin everything how just liquidity margin with could and points. points variables it X else. basis your we'll

Michael Mettee

morning. Good Yeah. Brett.

thinking range. think about XXXX you're basis I that point in that right

you or margins. You is point, see some XX points you of weighing excess us But If that range still think loan we I mentioned basis in that that did point general benefit a basis a growth -- key pretty there could bit XX see like exit redeploy on well. little or some a along. in about on as liquidity of securities, is things, either

Brett Rabatin

similar make Then for to that XX. the full-year mortgage sure Is one for levels to expecting remain the like clarification. that? the guidance It understood ratio last Okay. fair contribution I a relative to sounds of year. XQ think to and of want just the you're the way I for basically efficiency

Michael Mettee

like first quarter. on a decent this get full so fourth looking that's kind quarter. on We've approach guidance we're No. look We at quarter, at what year. first the and -- We're a lot the to will It the point. not wait-and-see full tried to go some pointing was I of were quarter-to-quarter the and year for

Brett Rabatin

Okay. Thanks for that.

Chris Holmes

mortgage The Can saw more Michael he's I quarter We'll think hold most to CFO, year. the certainly I the knows is tend think more the not quarter mortgage the a lot much and that where for the than contribution, just we the do addition the the being be to be background where we and as the should business going seasonality We've this? second Mark we have -- us pattern, and -- have much we about the in a in don't pattern to do. out notes, as be tend any the quarters quarter to where do add knows quarters start tend contribution. about year third of first the more business. a really got he fourth

Brett Rabatin

Okay, [Indiscernible]. great

Chris Holmes

All right, thanks, Brett.

Operator

Our question Truist Securities. Jennifer from ahead Please your Demba next go with comes question. from

Jennifer Demba

you. morning. Thank Good

Chris Holmes

Jennifer. morning Good

Jennifer Demba

mid-to-high curious that just is kind expense assumption? of baked 'XX. growth for into hiring guidance, your I'm plan single-digit What about

Chris Holmes

Yes.

for all it mostly the quite in lot, a look in when when year, revenue but have hiring all not the year, It revenue and we've of producers, done out lot -- made frankly few So a we projected we we've a budgets in banked producers. and places. for

are and in our in innovations of side business our and business the side operational them of the hirings the of technology Some unit. significant

producers within revenue significant the are there hires so on bank. there And some

the talent of the to and the support said, a our some going few cost increases. mentioned in in but folks across there in Consortium on USDF most unit. innovations revenue seeing I the is some we're -- there's And employee We're We're we the seeing major We've side board. think balance so are our are then call that's what Nashville, in only headquartered costs our folks increase. in biggest producers category, bank. innovation increase, kind there. there and Not area be things I baked our I'll Nashville. our our operation -- of are within some costs other is Like loading the thing that the doing concentration of in there

a One place 'XX of of, continue to the intend and -- strategy. care keys to our an associates both part important to to we be are to work sure continue taken to have that us grow great is to revenue continuing make and our of do defensively offensively. and That's so

Jennifer Demba

And you great to industry. on asset year in like growth? fact given low for another go going that a quality you. loan follow-up producing double-digit strong Thank quality. pretty the this should How the question you be Looks you could be do just asset is 'XX in reserve think

Chris Holmes

this another that, asset that quality every And question, year it's we for something I'm for on like great industry. as record. time going like knocking wood we to Good negative seems think It to Jennifer. say be the looks the that happens

after to some actually have wise. so, and quite been knocking we do able And on pruning you, but feel portfolio tell I'll wood, the good

them, quality closed loss we'll of that -- place front, 'XX. 'XX, in settles out. with we so We right in in for -Franklin closed August in of credit good. see actually As the think we CECL combination it probably is I'm where sorry, we look out in probably adoption. Franklin, range say January asset we mind also announced where out. or the 'XX just think middle XXX our settles, and combination Keep we settle normalize obviously took January let's quite allowance a When that about the the a it in was right August. feel We of XXX in FirstBank

I'll normalize is of kind think. really As call it, what we

Jennifer Demba

Thanks so much.

Chris Holmes

change evaluated to all range. those and a that's those X we that factors factors that's audited committee, All that mind but every are we in -- that by and are Keep of factors the change. set are those quarter, -- used

will think we the we it out XXX range. think -- XXX settle probably So to

Jennifer Demba

you. Thank

Operator

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

Matt Olney

higher SOFR? wanted I And $XXX is pretty that the details nether down Thanks. or loan move. us back I were XX $X rates Good some about color then rate and are floors you And ask LIBOR, morning, bps guys. gave $XXX Any that? million another there. beyond that priced on were about repriced anything wrote million? loans a go much without What prime great variable to these and bp the that side, immediately billion on XX variable or Michael, of floors.

Chris Holmes

-- mostly Yes. for it's say, and comes biggest and -- of the in Prime a just -- us, ahead, most of the first books prime I'll of so prime and rate move LIBOR, portion couple mostly combination go for but but Michael.

Michael Mettee

and transitioning Prime right. actually prime. and to That's we're LIBOR LIBOR much No.

Chris this million so minimal one, Got $XX are although mentioned beyond the it's we rate some for beyond a yeah, that but For to per doing as Forex. basis Matt, $XXX XX hike.

Matt Olney

do commentary look eventually for I way it. step the will Got Where some could gave on to think taking term, that and land? but where is the great think that? to Okay. mortgage a you us you at front, the [Indiscernible] predict appreciate that of profitability longer whatever try mortgage Definitely best be then guess metric near-term. appreciate you back And

Chris Holmes

Yeah.

So of somewhere of should total more than than think we've Company, the X%, line less bottom the XX% the look said, if probably it we bottom you be but line. at Company,

but hard that. I say Matt, that it's will kind still for you think hard and as Thank we're project. hard for we to project. to we you that still -- it's it. predict of saying business, saying they're We so projected, do said, we but -- you and it certainly -- And thank

don't on at we But the during we down contribution they're if think predictions we get MBA certainly percent, too said, a out than I expect do other what look you far year. so volumes, what Michael? meaningful And

Michael Mettee

- XX ish.

Chris Holmes

percent ish - year-over-year. XX

thinking investment and experience. and originations, thinking with our trying how business. maximize to business were to that maximize we business making some in running that normal to our that we're sure other technology about try to margin, about We're we things evolve the blockchain customer In maximize of and like technologies we're continue addition trying where also

As forward. to we continue move

So business. we entrepreneur think to in about have but to continue a contribution, also way we're to want meaningful trying that

Matt Olney

you. Thank

Chris Holmes

right. All

Operator

ahead Our your next go from Alex question question. Please with from comes Lau JP Morgan.

Alex Lau

Good Hi. morning.

Chris Holmes

Alex. morning, Good

Alex Lau

morning. you technology banking more speak the -- And mortgage USDF cases whether your to business. you applied potential for the core to near-term speak are on the Can Can some involvement? it's in the blockchain the or what be use businesses, Thank you.

Chris Holmes

it Yes, USDF the Alex. they he's a about One, -- things, could moving but specific some founding about continue him of of that's we're case it, say let industry that to that us. maybe do even In I'll Wade evolve, little of as and example And consortium. Peery's I'll be talk very let member so list. just said Wade, a excited forward. be -- to on X this And, think to give an very talk important the to the you board going use a be and a member I'll or about couple

Wade Peery

as good be We and out almost on industry. morning, ecosystem closely is aspect the know technology, the block every services see, potential will and proving to we When we the that chain growing. recognize see you Hi, non-bank about change financial in ecosystem that, what's decentralized watching true and we're the finance going in that's what think its have of it Alex. revolutionary

to together the banking regulators a inside technologists that and utilize space. want and to come find we So with way

which blockchain part the that creation be is actually of there be to the you a and So [Indiscernible] working intent Once banks then what to on-ramp to foundational be toward to coin of the Consortium basically that have you that's quite has with of can an is to set opportunities use here stable allow [Indiscernible]. -- of able that is a and do are USDF work technology, expansive. we're

for things if in a be less deep we us using know in specifically can less at significantly and done at in Particularly of costly that around you. replaces sale truth costly we space. this delivery the manufacturer because that that knowledge as with we're -- manner So looking mortgages significantly blockchain as get resonates in trust a technology started mortgage, have we manner

that's settlement and business obviously one so of a of spaces areas X housing is So What thinking manufactured quite do large, facing, we in today. help our with with -- course happen lot we're front? and can we're about particularly on of those to do us the loss It the those we some around [Indiscernible] things revenue the potential things. has of in payments really

you systems the payment look plus run their economy actually our As at years on that we XX old. today

We systems those XXX settlement be blockchain. out of and cut XX/X, costs to able real-time substantial will get out

revenue So particularly but list those the expense long on places side. of a us have and two we areas help are quite we a both starting for that us, opportunities think

Chris Holmes

Very Alex? good. Thanks, Wade.

Alex Lau

Thank you for that, and a separate question.

any? their loans down borrowers the on hold to the balance pay Or to tap the preference Just on Can Thanks. digging still of down pay sheet at speak is kind cash? you liquidity recent on any to into the just into excess you very strong loan if seeing growth. extra Are all? activity,

Chris Holmes

Yeah.

and be terms If was in utilization today. color with notable at the go That's see to on to of our XX% additional lines -- XX% We their it draws do and the us. for of that's -- we continue in think normal liquidity move down has If helps, been levels part our, something to back of bullishness our room tapping we We half-point we see over continued loans. not we We haven't on seen sheet not it then see we'd we for it some still on on great in of a low where has see low 'XX, was the the that customers loans our -- and room a halfway again is utilization returned that for that move towards liquidity we're originations our pay commitments. big Alex. balance still seeing us. to

Alex Lau

Yes. taking for That's very helpful. Thank you my question.

Chris Holmes

Sure.

Operator

[Operator Instructions].

next Our question. Mealor Please go ahead from with your Catherine from KBW. comes question

Catherine Mealor

Thanks. Good morning.

Chris Holmes

Good Catherine. morning,

Catherine Mealor

loan about new the is rates. the coming contractual we from we follow-up try on higher think loan yields Where to discussion, XXX. to before that margin yield a bottoms that seeing lift you start now get where It's on? As are

Michael Mettee

Hey, Catherine, it's Michael. Good morning. Yes.

past the -- For

Catherine Mealor

morning, Good

Michael Mettee

steady consistently -- back early couple been we've pretty we're it That's the of X.X% the year range. on for year. quarters, in seeing this seen and the half what of

Catherine Mealor

or your you variable category? the loan Would production rate more of fixed is rate in say current

Michael Mettee

Yeah, and variable there. still of our for prefer we split customers and have all rates obviously, balancing there's who it's the -- a of fixed act our pretty all

pretty here consistent, every So flows time norms. it's to XX-XX fixed it on ebbs and back lately get the rate kind that historical but it's our to we split, to been more slightly expect of maybe

Catherine Mealor

then that [Indiscernible] your within what XX% assuming with cash static mentioned deposit deployment make within there's And assumptions of assumption that too? And Okay. sheet upside some rate you modeling, Do is basis -- that are balance point or that? move. do you also, you of XX% Thanks. Beta a XXX you on kind your

Michael Mettee

see in That's But Wade off truly that -- expect -- a I a mentioning. of look on basis how lag third a mentioned, points got demand. question, pressures customers about to will has was a on great deposits. of on new bit. XX% we as time would tell economy the and difficult on going every we maybe kind -- as much little balance basis past just think what points, XXX rates and competitive this that to sheet we've we at kind static made look us we But

Catherine Mealor

Thank you. Awesome. Okay.

that deals flag feels your cash deployed even that it that costs, a deposit -- that in is aggressively more fair with So if conservative XX% commentary

Michael Mettee

into of tenure's have We've sitting that's we this currently liquidity. that are appreciate up, morning a where you which and of XX.X% of assets, -- over as know, on We the deploy stuck really above portfolio. the opportunities wound generally, kind XXX we don't We lot investment XX%, some there. at now excess and

We are public and that definite funds conscious there's of around long deposits. yes, say I upside. in would sticks But how

Catherine Mealor

you Okay. the Great. for Thank caller.

Chris Holmes

Thanks, Catherine.

Operator

from D.A. next go question. question Fitzsimmons And from ahead Davidson. your Please with our comes Kevin

Kevin Fitzsimmons

morning, everyone. Hey, good

Chris Holmes

Kevin. Morning,

Kevin Fitzsimmons

the I follow it. point M&A to up wanted and on on just I you outlook your need that your recognize don't commentary

hand, names one environment in growth, it confident wish what know is you very seems new list like of but assessment selective those pretty there. guys of out you your like feel are just You On organic who curious are. terms your and the I'm

hurry hand, the too they're environment would would higher to stat? you expect the I be Would going be you be didn't, sellers sell has or toward disappointed -- as a down an moving they do might just you deal, 'XX otherwise think and just, effect to if you we're quite and look maybe that you in in be now as of rates, a when on you to announcing trying On what drill that then other not to have expectation. just do at been, your Thanks. guess,

Chris Holmes

I'll and cover in. Kevin, to if interested hesitate me try and questions, Good a piece you're Yeah. tell all that I miss don't to

ASH our we comfortable picture, to out we where return look capital. on get again, with are that's we as So organic growth and

like come -- entertain and environment our going think and like bankers going out this, said investment and on to investment other I opportunities are primarily forward. as the may really we list people. and that a and get about more we've we have have opportunity meaningful brand in. focus interested keep a that we're they That strong list list we a that talked we because to about Wade in probably It's targeted that changing the we thing and really strong moving So we hopefulness list. -- with of and our a focus more geographies that's reality guess become bring be got the when I've not Geographies in more we've that are but way. okay? because really and less will That's on strong that will less not the something us in organic talked that things being with said, That interested bankers opportunities that, somebody the about also some folks on bring share, growth the on industry kind there. before we're the

bearing But our don't interested but we you aren't list, out do, balance again, bank. would you at there things strategy, we many value, value are of If of Either those, in our we're very most our looked and always look of a where where when have is. non-interest in that every them think markets. they in be one not look there. were It's Those interested certainly about sheet deposits. or that's at that the really the liability others side strong the very community near and

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Kevin Fitzsimmons

All right, that was perfect thanks. Thanks, Chris.

Just commentary buybacks, funding are the where Is going to buybacks and one if really in this, quick follow-up. it with that? to for and it a Michael I believe not you fair it covered big apologies in you focus but stock be growth organic mentioned preference your is, assume already price the near-term? the is in

Michael Mettee

now, monitor We've better so got capital and we'll that optimal right uses and adequately fair. continue deployed to Yes, more of that's appropriate.

Kevin Fitzsimmons

Okay. Thanks very much.

Michael Mettee

Yes, Kevin.

Chris Holmes

I appreciate Kevin.

Operator

concluding any and Ladies remarks. I turn over for to with question Chris the that, to and gentlemen, answer be Holmes today's like closing would floor session. back we'll

Chris Holmes

your Thank really call. interest fantastic a we XXXX. the look right. on to being you very and forward for We everybody, everybody. All appreciate much, Thanks,

Operator

gentlemen, Ladies call. today's thank you we'll conference presentation. and for today's with that, conclude attending We do

You may now disconnect your lines.