Q2 2025 Simmons First National Corp Earnings Call

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Ed Bilek: Copyright © 2020, New Thinking Allowed Foundation Good morning and welcome to the Simmons First National Corporation Second Quarter 2025 Earnings Conference Call and Webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two.

Operator: Please note this event is being recorded.

Ed Bilek: I would now like to turn the conference over to Ed Bilek, Director of Investor Relations. Please go ahead.

Ed Bilek: Good morning and welcome to Simmons First National Corporation's second quarter 2025 earnings call. Joining me today are several members of our executive management team, including Chairman and CEO George Makris, President Jay Brogdon, CFO Daniel Hobbs, and Chief Operating Officer Chris Van Steenburg.

Speaker Change: Good morning, and welcome to the Simmons. First National Corporation, second quarter, 2025 earnings conference call and webcast all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then 1 on your telephone keypad to withdraw your question. Please press star then 2. Please note. This event is being recorded. I would now like to turn the conference over to Ed bilick director of investor relations. Please go ahead.

Good morning and welcome to Simmons. First National Corporation second quarter, 2025 earnings call.

Ed Bilek: Today's call will be in a Q&A format. Before we begin, I would like to remind you that our second quarter earnings materials, including the earnings release and presentation deck, are available on our website at SimmonsBank.com under the investor relations tab. During today's call, we will make forward-looking statements about our future plans, goals, expectations, estimates, projections, and outlook, including, among others, our outlook regarding future economic conditions, interest rates, lending and deposit activity, credit quality, liquidity, and net interest margin. These statements involve risk and uncertainties, and you should therefore not place undue reliance on any forward-looking statement, as actual results could differ materially from those expressed in or implied by the forward-looking statements due to a variety of factors.

Joining me today are several members of our executive management team including chairman and CEO George mattress. President, Jay Brogden CFO, Daniel Hobs and Chief Operating Officer. Chris Van Steinberg.

Speaker Change: Today's call will be in a Q&A format. Before we begin. I would like to remind you that our second quarter earnings materials, including the earnings release and presentation deck are available on our website at simmonsbank.com under the investor relations tab.

Ed Bilek: Additional information concerning some of these factors is contained in our earnings release and investor presentation furnished with our Form 8K yesterday and our Form 10K for the year ended December 31, 2024, including the risk factors contained in that Form 10K. These forward-looking statements speak only as of the date they are made and Simmons assumes no obligation to update or revise any forward-looking statements or other information.

Speaker Change: These statements involve risk and uncertainties and you should therefore not Place. Undue Reliance on any forward-looking statement as actual results could differ materially from those expressed in or implied by the forward-looking statements due to a variety of factors.

Speaker Change: Additional information concerning some of these factors is contained in our earnings release and investor presentation, furnished with our Form 8K yesterday, and our form 10 for the year. Ended. December 31st 2024, including the risk factors contained in that form 10K.

Ed Bilek: Finally, in this presentation, we will discuss certain non-GAAP financial metrics we believe provide useful information to investors. Additional disclosures regarding non-GAAP metrics, including the reconciliations of these non-GAAP metrics to GAAP, are contained in our earnings release and investor presentation, which are furnished as exhibits to the Form 8K we filed yesterday with the SEC and are also available on the investor relations page of our website, SimmonsBank.com.

Speaker Change: These 4 we're looking statements, speak only as of the date, they are made and Simmons assumes. No obligation to update or revise any forward-looking statements or other information.

Speaker Change: Finally, in this presentation, we will discuss certain non-gaap Financial metrics. We Believe provide useful information to investors.

Operator: Operator, we're ready to begin the Q&A session. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Once again, to ask a question, you may press star, then 1.

Speaker Change: Additional disclosures regarding non-gaap metrics including the reconciliations of these non-gaap metrics to gaap. Are contained in our earnings release and investor presentation which are furnished as exhibits to the formate K. We filed yesterday with the SEC and are also available on the investor relations page of our website, simmonsbank.com.

Operator. We're ready to begin the Q&A session.

Speaker Change: We will now begin the question and answer session.

Speaker Change: to ask a question, you may press star then 1 on your telephone keypad,

Speaker Change: If you're using a speaker-phone, please pick up your handset before pressing the keys.

Speaker Change: If at any time your question has been addressed and you would like to withdraw your question.

Please press star. Then 2

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change: Once again to ask a question, you may press star then 1.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Woody Lay: The first question comes from Woody Lay with KVW, please go ahead. Hey, good morning, guys. I wanted to start on guidance and just looking through the slide deck. I didn't see the any guidance slide like that's been featured over the past couple of quarters. So it was just curious if any of your expectations for 2025 have changed. you know, for the back half relative to where we sort of started the year.

Speaker Change: The first question comes from, what do you lay with KBW, please go ahead.

Speaker Change: Hey, good morning, guys.

Speaker Change: Hey, good morning Woody, good morning.

Speaker: Yeah, hey, Woody, appreciate the question.

Speaker Change: Hey, um I I wanted to start on guidance and just looking through the slide deck. I didn't see the the any guidance slide like that's been featured over the past couple quarters. So it was just curious if any of your expectations for 2025, um, have changed. You know, for the back half relative to to where we sort of started the year.

Speaker: And I may just insert a reminder to you and everyone, historically, we've really only provided guidance or outlook commentary in January each year, given sort of uncertainties around tariffs, the outlook for growth, some of the, you know, non-recurring items in our first quarter that put noise in the numbers. You know, we brought that back forward in our first quarter announcement. But, you know, I'd say when you think about our outlook for our business, I think the trends in the quarter, this quarter, sort of speak for themselves. We continue to be very, very pleased with the ongoing trends in our business.

Speaker Change: Yeah. Hey Woody, appreciate the question and I I may just insert a reminder to you and everyone his historically, we've really only provided guidance or Outlook um commentary in January each year, uh given sort of uncertainties around tariffs, the outlook for growth, some of the, you know, non-recurring items in our first quarter that put noise in the numbers. Um, you know, we brought that back forward in, uh, in our first quarter announcement. But you know, I'd say when you think about, uh, our outlook for our business. I think the, the trends in the quarter, this quarter sort of speak for themselves, we can we continue to be very, very um, pleased with

Woody Lay: We, you know, have some performance targets that we've outlined with you and others before. And, you know, we're very ambitious in those targets. And I think the acceleration in our performance improvement and the pace of that improvement continues to exceed even our internal expectations. So, you know, I just say with that in turn, we're pretty confident, maybe as confident as ever, about our ability to execute and execute toward achieving those target levels. Yeah, that's helpful. And yeah, definitely. I mean, it looks like NII and expenses, both B, so it'd only be positive from here. Maybe looking at the NIM, you sort of hit the 3% level, you know, ahead of schedule and kind of jumped over that line.

Speaker Change: Um, the ongoing Trends in our business. Uh, we, you know, have some performance targets that we've outlined with with you and others before. And, you know, we're very ambitious in those targets and I think the the acceleration in our performance Improvement, uh, and the and the pace of that Improvement continues to exceed, uh, even our internal expectations. So, you know, I just say with that in turn, we're pretty confident. Uh, maybe as confident as ever about our ability to execute, uh, and execute toward achieving, those those Target levels,

Speaker: Do you think there's room to continue to see expansion from here? Is there more juice to squeeze on the deposit base, or would you expect deposit costs to sort of start stabilizing from here?

Speaker: Yeah, so let me just kind of describe, again, what we observed throughout the second quarter, and we'll talk about it maybe both ways that you posed it there. We'll talk about the asset side and then the deposit or liability side. I think on the asset side, we continue to primarily be a repricing story in terms of the performance that you're seeing and the expansion in the NIM, and I think there's still a lot of opportunity for us from that repricing dynamic point of view, particularly on the lower rate fixed rate loan repricing that we have experienced over the past several quarters, and again, we continue to expect that.

Yeah, that's helpful. And yeah, definitely. I mean it looks like knee and expenses both be. So it would only be uh positive from from here. Uh may maybe looking at the Nim, you sort of Hit the the 3% level, you know, ahead of schedule and kind of jumped over that. That line. Do you, do you think there's room to continue to see expansion from here and is, is, is there more juice to squeeze on the deposit base? Or would you expect deposit costs to be to sort of start stabilizing from here?

Speaker: The thing that maybe gets a little bit overlooked is our loan pipeline and production continues to be strong. The headwinds to overall growth are some elevated level of paydowns, permanent market financings that we see out there, but also just are sticking to our pricing discipline, and so we're very willing to see lower growth rate in loans as we are maintaining that discipline around credit as well as that discipline around pricing, and we think that that competitive market for loan pricing is one that's pretty hot for what we're seeing in the industry right now, and so competition and loan pricing and our ability to sort of stick to our discipline is going to be a factor on the overall level of loan growth, but again, pipelines are strong and production is strong for us, so I think those factors come to play on the asset side of what's driving NII and NIM.

Speaker Change: Uh particularly on the, you know, the the lower rate fixed rate loan repricing uh, that we have can, you know, have experienced over the past several quarters. And again we we continue to to expect that. Um, you know, the thing that maybe gets a little bit overlooked is, um, you know, our loan Pipeline and production uh, continues to be strong. You know, the headwinds to overall growth are, um, you know, some elevated level of pay Downs, permanent Market financing that um, that we see out there but also just, you know, our our sticking to our pricing discipline. And so um, you know, we're we're very willing to to see uh lower growth rate and Loans as we are maintaining that discipline around credit as well. As that discipline around pricing. And we we think that that competitive market for for loan pricing is 1. That's you know, pretty high for for what we're seeing in the industry right now. And so you know competition and and

Speaker: On the flip side of the balance sheet, you know, deposits is probably more primarily at this point a remixing story. And we're seeing really, we saw it in the second quarter, very good continued trends in terms of remixing from higher cost deposits to lower cost deposits. And there still is an element of a repricing story in there as well, but, you know, I think your question basically alluded to, you know, kind of how we feel about that repricing dynamic. You know, I often say of late, the air is kind of coming out of that balloon.

Speaker Change: Own pricing and our our ability to sort of stick to our discipline is going to be a factor on the, on the, the overall level of loan growth. But again, pipelines are strong and and production is strong for us. So, I think those factors come to play, um, you know, on the asset side of what's driving and I, I and them

Speaker: Every day that goes by from the most recent Fed rate cut, there's less and less repricing opportunities. So we had some of that opportunity in the second quarter, particularly as we think about the kind of core customer base, and that's probably not as compelling. There's still maybe some opportunity there, but not as compelling as the reprice dynamics on the loan side of the balance sheet.

Speaker Change: On the, on the flip side of the balance sheet, you know, deposits is probably more primarily at this point. A, a remixing story and we're seeing really uh, we saw it in the second quarter. Very good. Uh continued Trends in terms of remixing, from higher cost deposits to lower cost deposits. And there still is an element of a repricing story in there as well. But you know, I think your question basically alluded to a uh, you know, kind of how we feel uh about that repricing Dynamic. You know, the I I I often say of late, the air is kind of coming out of that balloon. Uh, every day that goes by from the, the the most recent Fed rate cut there's less and less repricing opportunities. So we had some of that opportunity in the second quarter uh, particularly as we think about the kind of core customer base and and that's probably not as compelling. There still may be some opportunity there, but not as compelling as the repriced Dynamics on the loan side of the balance sheet.

Daniel Hobbs: Yeah, and Woody, this is Daniel. I'll maybe put a couple of finer points on that. On the loan yield side, kind of that pricing and remixing story, if you think about, we've talked about this before, but in that fixed rate book, our total book is about 46% fixed rate. Last quarter, it was, you know, 48 and a half percent. Those fixed rate loans continue to reprice every quarter at near 200 basis point spread. That trend has been pretty consistent over the last couple of quarters. We would expect that trend to continue, you know, that plus or minus, you know, some basis points there, but we feel good that that's going to continue for a period of time.

Yeah, and Woody. This this is Daniel, I maybe put a couple of finer points on that, on the um, on the loan yield side.

Um, kind of that that pricing and remixing story. Um, if you think about we've talked about this before but, um, in that fixed rate book, um, our total book is about uh, 46% fixed rate last quarter. It was, you know, 48 and a half percent. Um, those fixed rate loans continue to reprice every quarter at near 8,

Daniel Hobbs: And then just the remixing of the portfolio, you know, the production, we put on 75% variable production this quarter. The quarter before that, it was 80%. So you'll continue to see that remix towards variable, and the spread between the fixed matured and the variable repricing is around 175 basis points. So both of those, we feel like that's a positive tailwind for us that will continue.

Daniel Hobbs: And to Jay's point on the funding side, that's probably going to be tougher and tougher as we move from here. Just one point on that, if you look at the CD schedule in our IP, you'll see that quarter view of the rate of the CDs that are maturing over the next couple of quarters is coming down. So that's where some of that repricing opportunity begins to fade in the next couple of quarters. We do expect some level of repricing, but maybe not at the levels that we've seen historically.

Speaker Change: 00 based, uh, excuse me, 200 basis points, spread. Um, that trend has been pretty consistent over the last couple of quarters. Um, we would expect that Trend to continue, you know, that plus or minus, you know, some basis points there but we feel good that that's going to continue for a period of time. Um, and then just the remixing of the portfolio, um, you know, the production we put on 75% variable production this quarter quarter before that it was 80%. So you'll continue to see that remix towards variable and the spread between the fixed matured and the variable re-pricing is around 175 basis points. So both of those we feel like um, that's a positive Tailwind for us, that will continue into Jay's point on the funding side. Um, that that's probably I'm going to be tougher, and tougher as we move from here, just 1 point on that. If you, if you look at the CD schedule and our IP, um, you'll see that uh, quarter View,

Speaker Change: Of of the rate of the Mercedes that are maturing of the next couple of quarters is coming down. So that's where some of that, um, re-pricing opportunity begins to fade in the next couple of quarters, we do expect some level of repricing, but maybe not at the levels that we've seen historically,

Woody Lay: All right, that's really helpful.

Speaker: And then maybe just last for me, as you noted, payoffs were a little bit of a headwind to growth this quarter. Just any expectation for the payoff outlook over the back half of the year? You know, we saw really elevated payoffs in Q1, nothing that really exceeded our expectations in Q2. So, you know, I think it's just it's an environment where, you know, we're seeing good, healthy paydowns, particularly on the construction side and permanent market activity. So I don't see anything on the outlook that is, you know, that really changes our thoughts around our expectations from a paydown environment point of view.

Speaker Change: Okay, that that's really helpful and then maybe just last for me as you noted payoffs were um a little bit of a headwind to to growth this quarter. Just any expectation for the for the payoff Outlook, over the back half of the year.

Speaker: But I think I think over the next couple of quarters, we would expect something, you know, maybe consistent with the first half of the year, maybe not even at as high a level as what we saw in the first half of the year from that perspective.

Speaker Change: Over the next couple of quarters, we would expect something. You know, maybe consistent with the first half of the Year and may maybe not even at as high level as what we saw in the first half of the year, uh, from that perspective.

Woody Lay: All right, thanks for taking my questions. Thank you.

All right, thanks for taking my questions.

Speaker Change: Thank you.

Gary Tenner: The next question comes from Gary Tenner with D.A. Davidson. Please go ahead.

Speaker Change: The next question comes from Gary tener with da Davidson, please go ahead.

Gary Tenner: Hey, good morning, everybody. I wanted to ask a follow up on kind of the pipeline, I guess, and, you know, with it, you know, modestly lower than last quarter, but still well above where it was certainly a year ago, and even at the end of 2024. I'm just curious about the dynamics kind of intra quarter, in terms of, you know, a the pull through on the, you know, first quarter pipeline looks that you know, like it was pretty good. Is the lower what what would you attribute the lower pipeline to given where we are today versus three months ago?

Uh, hey, good morning everybody. Uh, we're gonna ask, uh, I want to ask a follow-up on kind of the pipeline, I guess. And, you know, with the, you know, modestly lower than last quarter but still, well, above where it was. Certainly a year ago and even at the end of 2024, um, I'm just curious about the Dynamics kind of intra quarter. In terms of, you know, a the pull through on the you know first quarter pipeline uh looks that you know, like it was pretty good. Uh,

Speaker: Yeah, Gary, this is something that I believe I alluded to our first quarter call. And at that point, it was probably more of a theory. At this point, I think it's something that more has proven itself out. And that is that we just we experienced some pull forward late in the first quarter. Again, I go back to a comment I made earlier, I think some of the tariff and other threats that were coming into, you know, into the line of sight late in the first quarter, we had some some opportunities where those opportunities were a little further baked.

Speaker Change: Is the lower. What what would you attribute the lower pipeline to uh given where we are today versus 3 months ago?

Speaker: And there was some pretty significant pull forward, you know, in the in the first quarter, as it related to those items. And so I think when I kind of almost adjust for that, even when I look at the slide in the IP, you know, there's probably a more normal absent that pull through a more normal kind of view when you go from fourth quarter to first quarter to the second quarter. If you imagine that, that, you know, that acceleration of some of those opportunities.

Speaker Change: Yeah, Gary. Uh, this is something that I I believe I alluded to in our first quarter call. Uh, and at that point, it was probably more of a theory at this point. I think it's something that more as as proven itself out. And that is that we just we experienced some pull forward late in the first quarter. Again, I go back to a comment I made earlier. I think some of the uh, tariffs and other threats that were coming in to, you know, end of the line of sight late in the first quarter. We had some some opportunities where those opportunities were

Speaker: The other thing to keep in mind about our business is that there is some seasonality, and we're having a tremendous amount of success in the agri area. And we've been doing that for over 120 years. And that's a sector that's not yet, that has some headwinds to it, for sure. We feel incredibly good about that industry from a credit perspective. We are very, very selective about how we think about that business. But it does have normal seasonality to it. And so you see some of that pipeline growth in the early parts of the year. And I think that's a that's a piece of what you're seeing in the pipeline trends as well.

Speaker Change: A little further baked and there was some pretty significant pull forward um you know in the in the first quarter as it related to those items. And so I think when when I I kind of almost adjust for that, even when I look at the slide and the IP, you know, there's probably a more normal absent that pull through a more normal, uh, kind of view when you go from fourth quarter, to first quarter to to second quarter. If you imagine that that, um, you know, that acceleration of some of those opportunities. The other thing to keep in mind about our business is the, there is some seasonality and we're having a tremendous amount of success in uh the Agra area. And we've been doing that for over 120 years and that's a sector that's not yet you know. Uh that has some headwinds to it. For sure. We feel incredibly good about that industry from a credit perspective. We are very very selective about how we think about uh that business. But it does have normal seasonality to it and so you

Speaker Change: See some of that pipeline growth in the early parts of the year. Um, and and I think that's a, that's a piece of what you're seeing in the pipeline Trends as well.

Gary Tenner: Great. Appreciate the thoughts on that.

great, appreciate the thoughts on that and then,

Gary Tenner: You know, in terms of the comments about continuing to recruit and kind of open for business in terms of adding talent, which I don't know if you've said today, but you certainly have in the past. It seems like it's a very competitive environment for bringing on talent. I think in the past you've flagged Nashville particularly as a market that it could be very competitive.

Speaker Change: you know, in terms of the comments about, uh,

Speaker: What's the hiring environment look like right now? You know, and certainly, you know, in Texas, there's been a lot of Recent merger announcements, so wondering what your thoughts are around potential opportunities there.

Speaker Change: continuing to recruit and kind of open for business, in terms of adding Talent, uh, which I don't know if you said today but you certainly have in the past. Um, it seems like it's a very competitive environment for bringing on Talent. Um, I think in the past few flag, Nashville, particularly as a market that uh it could be very competitive. What what's the hiring environment look like right now? Uh, you know and certainly, you know, in Texas uh there's been a lot of

Speaker: Yeah, Gary, really appreciate the question.

Speaker Change: Recent merger announcements, so wondering what your thoughts are, uh, around potential, uh, opportunities. There.

Speaker: Let me back up for a second and then kind of come back closer to the questions you're asking there. The first thing I want to say is, you know, we're pretty proud of what we've been able to do from an expense discipline point of view over the last few years. Saw really, really good evidence of our continued progress there this quarter, and we don't think we're finished in terms of, you know, being able to do that. Daniel would say we're never going to be finished doing that. It's just that continuous improvement mindset, but at the same time, what I really want to underscore is we're making some significant investments in our business, and, you know, I would maybe broadly at a tactical level think about those investments as talent and technology, and really enabling the business through things like automation and just things that are driving both associate and customer experience, but really generating capacity in our business, and we're able to free up that capacity and the savings from those investments, and a large part of the deployment of that is back into talent, and so we have been really pleased with kind of the upskilling, upgrading, and attraction of talent, as well as our sort of retention and investment in talent in our business, and so I'd say that the hiring environment has been very, very good.

Yeah, Gary really appreciate the question. Let me let me back up for a second and then and then kind of come back closer to to the questions you're asking there. The first thing I want to say is, you know, we we're pretty proud of what we've been able to do from an expense discipline point of view over the last few years. Saw a really, really good evidence of our continued progress there, uh, this quarter. Uh, and and we don't think we're finished in terms of, um, uh, you know, being able to do that, Daniel would say, we're never going to be finished doing that. Uh, it just that continuous Improvement mindset. Uh, but at the same time, what I really want to underscore is we're making some significant investments in our business and, you know, I would maybe broadly at a tactical level. Think about those Investments as talent and technology and, um, really enabling the business through things like automation,

Speaker Change: Um, and and just things that are driving both associate and customer experience but really generating capacity in our business and we're able to free up that capacity.

Speaker: We feel like we've got a proven track record there at all levels of the business and in all areas of the business from the back side to the front side and everywhere in between, you know, and then my maybe bottom line comment would be when we think about our footprint and we think about, to your point in your question, the sort of disruption that even this week is being announced, our expectation is that that disruption is nowhere near finished throughout our footprint, and we are very ambitious in, you know, pursuing a reputation in our marketplace of one where talent and customer opportunities from that dislocation that we're a great place, a great landing spot for that, and again, we're seeing success there.

Speaker: I think the environment's only getting better.

Speaker Change: All areas of the business from the backside of the front side and everywhere in between, um, you know, and then my my maybe bottom line, comment would be when we think about our footprint and we think about uh, to your point uh in your question to sort of disruption that even even this week is being announced. Uh our expectation is that that disruption uh is nowhere near finished throughout our footprint and we are uh very ambitious in you know pursuing uh a reputation in our Marketplace of 1 where uh talent and customer opportunities from that dislocation that we're we're a great place, a great landing spot for that and again we're seeing success there. I think the environment is only getting better.

Speaker: Thank you.

Speaker Change: Thank you.

Jordan Gent: The next question comes from Jordan Gent with Stevens. Please go ahead. Hey, good morning. How are you guys doing? Morning, George. Morning.

Jordan Ghent: The next question comes from Jordan Ghent with Stevens.

Speaker Change: Please go ahead.

Jordan Gent: I should kind of a quick question, kind of going back to the loan growth. So it looks like your unfunded commitments have shed a steady upward drive. And we kind of interpret this as loan growth going into the back half of the year, maybe even to 2026 is setting up pretty nicely.

Jordan Ghent: Hey, good morning. Uh, how are you guys doing? Um, morning G.

Speaker: Yes, I think that's exactly the way to think about that, Jordan, and, you know, I would just, you know, one comment that we haven't made, you actually see it borne out, not in the pipeline and unfunded commitment chart, but you see it in the, you know, the quarterly sort of loan growth mix, there are still elements of CRE growth that you've seen historically make up those unfunded commitments, but we are seeing success at maybe at the most leading indicator in the pipeline of growing mix of C&I in our pipeline. We saw commercial activity kind of stand out relative to commercial real estate in the quarter in terms of production and growth, and, you know, we think that, you know, some of the ability to build C&I relationships will also be a factor there as we think about, you know, unused lines and lines with opcodes that we'll have out there.

Jordan Ghent: Morning. Um, I just had a kind of a quick question, um, kind of going back to the loan growth. So, it looks like you're unfunded. Commitments. Have set a steady upward, uh, drive. And we kind of interpret this as loan growth, going into the back half of the year, maybe even to 2026 is setting up pretty nicely.

Jordan Gent: So I think all of that points towards success of some of our strategic priorities, as well as the ability to have some funded growth as we look to the coming quarters. Perfect.

Jordan Ghent: Yes, I think that's exactly the way to think about that Jordan. And, you know, I would just, you know, 1, comment that, that we haven't made. You actually see it, borne out, um, not in the pipeline and unfunded commitment chart. But you see it in the, you know, the quarterly sort of loan growth mix there. There are still elements of CRA growth that you've seen historically make up those unfunded commitments. But we are seeing success at maybe at the most leading indicator, uh, in the pipeline of growing, mix of cni and our pipeline. Uh, we saw commercial activity kind of Stand Out relative to commercial real estate in the quarter in terms of, uh, production and growth. Um, and you know, we think that, you know, some of the ability to, uh, build cni relationships, um, will will also be a factor there, as we think about, you know, unused lines and, and, uh, uh, lines with OP Co that we'll have out there. So I think all of that points towards success of

Jordan Ghent: Of uh, some of our strategic priorities, as well as the ability to have some fun to growth as we look to the coming quarters.

Speaker: And then maybe just kind of one follow up talking about that that CRE kind of looks like classified just picked up a little bit this quarter. Is there any color you could provide on that? Yeah, there's nothing that stands out. We looked at those metrics very, very closely and, you know, really nothing that stands out in kind of non-performers, classifieds, past dues, charge-offs. All the metrics that we see are very indicative of all of our, you know, most recent quarters trends. But for the two large credits we talked about last quarter, sort of the underlying credit picture still feels, you know, I think stable and normalizing would be, you know, still good words for how we think about credit.

Perfect. And then maybe just kind of 1 follow-up um talking about that that CRA kind of looks like classified just picked up a little bit. Um, this uh quarter is there any, uh, color you could provide on that?

Speaker: And there's nothing that kind of stands out beyond that in our mind. And again, I go back to one of the numbers I focus on. Obviously, we look at what, you know, migrates in and out of NPLs, but we also pay a lot of attention to both classifieds and past dues and thinking of those as leading indicators and have very, very good trends in past dues, you know, on a linked quarter basis. And even just the aggregate number is a very low number for us in that category. So I think that helps kind of paint the picture overall of how we think about credit.

Jordan Ghent: Yeah, I know there's nothing that stands out. We looked at those metrics very, very closely and, you know, really nothing that stands out in kind of non-performers classifies past. Dues, charge offs all the metrics that we see are very indicative of all of our, you know, most recent quarters Trends but for the 2 large credits, we talked about last quarter for the underlying, credit picture still feels, you know, I think stable and and normalizing would be, you know, still good words for how we think about credit. Um, and there's, there's nothing that that kind of stands out beyond that in our mind. And, and again, I go back to 1 of the numbers I focus on. Obviously, we look at what, you know, migrates in and out of of npls. But we also pay a lot of attention to, uh, both classifies and, uh, pass dues and thinking of those as leading indicators and have very, very good Trends in, in past dues, uh, you know, on a linked quarter basis and, and even just the aggregate numbers of very low, number for us.

Jordan Ghent: In that category. So I think that helps kind of paint the picture overall. How we think about credit?

Jordan Gent: Okay, perfect.

Speaker: Thank you for taking my question. Thanks, George.

Okay, perfect. Thank you for taking my questions.

Jordan Ghent: Thank you.

Operator: This concludes our question and answer session.

George Makris: I would like to turn the conference back over to George Makris for any closing remarks. Well, thank you very much for joining us this quarter. I want to reiterate one thing that Jay said earlier, and that has to do with our talent. We are extremely proud of our team whose discipline is demonstrated in our results. We have exceptional employee engagement, folks who can and want to do more, and it's our job to make sure that we give them the resources. for them to be successful. So, I just want to reiterate our position on talent acquisition and current talent that we have today.

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

Well, thank you very much for joining us. Uh, this quarter. I want to reiterate 1 thing that Jay said earlier, in that has to do with our talent, we are extremely proud of our team, whose discipline uh, is demonstrated in our results.

George Makris: You know, we're awfully encouraged by the momentum that we show going into the second half of the year. We're looking for continued profitability improvement going forward. I think that was clearly defined for you this morning by Daniel and Jay. So thank you very much for joining us this morning. Hope you have a great day and great week.

Jordan Ghent: We have exceptional Employee Engagement uh folks who can and want to do more, and it's our job to make sure that we give them the resources for them to be successful. So I I just want to reiterate our our position on uh, Talent acquisition and current talent that we have today.

Speaker Change: Profitability Improvement going forward. I think that was clearly defined for you this morning by Daniel and J. So thank you very much for joining us this morning. Hope you have a great day and a great weekend.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. © The Ultimate Parody Site! © BF-WATCH TV 2021

Speaker Change: Conference has now concluded, thank you for attending today's presentation. You may now disconnect