Q3 2019 Earnings Call

Since you're not comfortable doing but when when you're getting.

Im talking to customers and they're bringing new term sheets from others, what what kind of things are you seeing the other banks doing in the market that you guys are stepping away from.

Well I think.

It's.

Yes.

We need on a transactional deal, meaning there's very little finding that goes along with that in terms of deposits, that's where we're not as aggressive on the interest rate side.

If we.

From a customer with $5 billion in deposits and they've got six or seven.

Loans were.

But.

When you have alone it's $5 billion and you have $200000 in deposits related to it.

Well, providing as aggressive a price for that type of loans. So it really has to do with relationship banking and I'm trying to set our people more and more work to get to bring in relationships as opposed to transactions. Because those are the things that are going to carry us through the cycles as they go alone.

Only when it comes down to.

<unk> is a transactional versus relationship and we're going to save the very best pricing for the for the most comprehensive clients.

Okay. So it's not that you're seeing crazy structures and terms out there its just.

The focus on bringing in the core deposits along with those relationships, yes, well I just think Theres. No question that we were seeing some times, but people waving guarantees that we won't do we have led some stuff go on.

And we need to have a guarantee on this deal because.

I always say this to our guys and they will rise a little bit I missed it where cash flow lender that wants collateral.

And I ask because we want a second way I have this whole thing and Thats, what we do we're we've led into the most quality companies the highest.

Thats why our I think our our credit has been go that that's good that's why we made money at 178 consecutive quarters through a whole bunch of Transitionary recessions and.

And Thats what were going to continue to do in my mind and and so we don't need to chase.

Yield or chase risks to get yield.

Still make a good profit remember in the history. This when I joined this bank.

In the first quarter of 2017, our net interest margin fell below 3%.

First quarter 2017 fell below 3% inside out at that time that we were going to we were going to drive deposit growth to pay off all of our debt.

172007, I'm sorry, 2011, thank you everybody to 17, yes, yes, the long time ago 2007, So I got an autonomy grow deposit growth on they get rid of debt and I'm going to get our cost of funds as low as possible. So that I can compete with anybody I can compete with the big boys and it's taken us a long time, but we're able to do that now and so we can pick up.

Choose our way along the way and and I feel really good about that and I hope that that the new CEO appreciates that the foundation. That's been laid here and then they can map out their growth strategy from there, but but the funding is critical I think its superior here and I think one of the thing that's going to be brushed under a little of this.

Quarter I think from the analyst side is our deposits I mean for us to hang onto these deposits and keep the cost of funds that we have and have 61% in noninterest bearing deposits is pretty phenomenal and is it is the foundation of this company and is going to be the differentiator going going forward in a big way, especially if we get into recession.

No it's phenomenal paused the best no doubt.

And then Alan.

Your margin I missed some early part of this call. So I apologize, but can you walk through again the the.

Dollar amounts I heard 1.2 million in recovery is about 800000 in accretion and then was there any prepayment fees or anything else to get to that for two core margin. Then there was highlighted.

Well I guess first of all we were talking about the decline of 1.2 million, but you're right our corner.

For two.

And that was done.

Hi period.

During the fourth during the third quarter, we had about $7.2 million and discount accretion at a modest amount of any IP, whereas if you look at the second quarter.

We had 9.4 million in total.

Eight of that being discount accretion. So hopefully that helps you with your numbers in our prepayment penalties were down 300 little over $300000 for the quarter over quarter in total this quarter, we didn't have anything.

Unusual happening extraordinary happened, we didnt have any interest income recoveries that of any of any substance. We it was really kind of a bare bones quarter for us in terms of you know kind of our income side and on the expense side, we were little elevated because of the acceleration of my retirement here and that's that's caused.

Some more expensive than we will have a once we get through the next few quarters right out that's correct, yes. So okay.

Good stuff, that's all I had thanks guys.

Yes.

[noise] again, if you have a question. Please press Star then one.

[noise].

At this time there are no more questions. So I would like to turn the call back to Mr. Myers. Please go ahead.

Thank you very much I want to thank everybody for joining US again this quarter. We appreciate your interest and look forward to speaking with you again in January for our fourth quarter and year end 2019 earnings call have a great day and Ah Thanks for listening take care.

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