Q2 2025 S&T Bancorp Inc Earnings Call
Unknown Executive: November 20, 2025. After the management's remarks, there will be a question and answer.
Mark Kochvar: Now I would like to turn the call over to Chief Financial Officer Mark Kochvar. Please go ahead. All right, thank you.
Welcome to the S&T Bank Corp, second quarter 2025 conference call. After the Management's remarks, there will be a question and answer session. Now, I would like to turn the call over to Chief Financial Officer. Mark kotar. Please go ahead.
Mark Kochvar: Good afternoon, everyone, and thank you for participating in today's earnings call. Before we begin the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors. This statement provides cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation.
Mark Kochvar: Copy of the second quarter 2025 earnings release, as well as this earnings supplement slide deck, can be obtained by clicking on the materials button in the lower right section of your screen. I'll open up a panel on the right where you can download these items. You can also obtain a copy of these materials by visiting our Investor Relations website at stbancorp.com.
All right. Thank you. Good afternoon, everyone and thank you for participating. In today's earnings call. Before we begin the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors. This statement provides cautionary language required by the Securities and Exchange Commission for forward-looking statements. That may be included in this presentation.
Mark Kochvar: With me today are Chris McComish, S&T's CEO, and Dave Antolik, S&T's President.
Christopher McComish: I'd now like to turn the program over to Chris. Chris? Mark, thank you, and good afternoon, everybody, and thank you for being on the call.
Christopher McComish: I'm going to begin my comments on page three, and we look forward to your questions as we get to the wrapping up our comments. Before I get started, I do want to thank our employees and shareholders and others listening on to the call, and to our leadership team, as always, thank you for your great work. These results are yours, and you should certainly be very proud. You know, over the past several years, we've made significant strides in positioning our company for long-term success. You will see that focus in the numbers we discussed today, including, first, by strategically repositioning our balance sheet to reduce asset sensitivity, we've enhanced our ability to drive consistent net interest income growth throughout the interest rate cycle.
Copy of the second quarter 2025 earnings release, as well as this earnings supplement. Slide deck can be obtained by clicking on the materials button in the lower, right section of your screen. There's 1 open up a panel on the right where you can download these items. You can also obtain a copy of these materials by visiting, our investor relations website, at stbank corp.com with me today, our Christmas Thomas S&T CEO and Dave. Vanilla S&T is President. And now I like to turn the program over to Chris Chris. Chris mark. Thank you and good afternoon everybody. And uh thank you for being on the call. I'm going to begin my comments on page 3. Um, and we look forward to your your questions as we get to the wrapping up our comments. Um,
Before I get started, I do want to thank our employees and shareholders and others listening under the call.
And to our leadership team as always, thank you, uh, for your great work, these results are yours and you should certainly be very proud, you know, over the past several years, we've made significant strides in positioning our company for long-term success.
Christopher McComish: Second, our focus on improving asset quality has laid a strong foundation for growth, enabling our shift and our intentions to that growth. And finally, our continued investment in our deposit franchise has resulted in a solid deposit mix, with non-interest bearing deposits representing 28% of our total deposits, and eight straight quarters of deposit growth, while maintaining a very healthy net interest margin. Together, these strategic initiatives have created a solid platform for current strong performance and our confidence in our future. Additionally, this quarter's loan growth has driven total assets to over $9.8 billion. As we've shared on previous calls, we remain very optimistic about our ability to pursue future inorganic growth opportunities.
You will see that focus in the numbers we discussed today including first by strategically repositioning, our balance sheet to reduce Assets, in sensitivity, we've had our ability to drive consistent, net interest income growth through the throughout the interest rate cycle. Second our focus on improving asset quality, as lady laid, a strong foundation for growth, enabling our shift and our intentions to that growth.
And finally, our continued investment in our deposit. Franchise has resulted in a solid deposit mix with non-interest-bearing. Deposits, representing 28% of our total deposits and 8, straight quarters of deposit growth, while maintaining a very healthy, net interest margin.
Together these strategic initiatives have created a solid platform for current strong performance and our confidence in our future. Additionally, this quarter's loan, growth is driven total assets to over. 9.8 billion dollars.
Christopher McComish: Our robust capital level certainly gives us a lot of flexibility. At the same time, we are committed to a disciplined approach that aligns with our long-term strategic objectives, and we have a clear path to $10 billion through organic growth in the coming quarters.
As we've shared on previous calls, we remain very optimistic about our ability to pursue future inorganic growth opportunities.
Our our robust Capital levels, certainly gives us a lot of flexibility.
Christopher McComish: In summary, I'm very excited about how we're executing, delivering for our customers, and building our company for the future.
Christopher McComish: Turning to page 3, looking at the quarter, Q2 was another quarter of strong earnings in return. EPS of $0.83, a net income of $32 million, while ROA came in at 1.32%, and our PP&R remained very solid at 1.73%. Our PPNR was aided by both NIM expansion increasing to a robust 3.88%, up seven basis points linked quarter, while net interest income rose almost 4%. Asset quality and asset growth were both solid as loans increased 5% while the ACL dropped two basis points linked quarter. While customer deposit growth was somewhat muted, as I said earlier, DDA balances remained very impressive at 28%, while contributing almost two-thirds of our overall deposit growth in the quarter.
At the same time, we are committed to a disciplined approach that aligns with our long-term strategic objectives. And we have a clear path in 10 billion dollars through organic growth. In the coming quarters in summary. I'm very excited about how we're executing delivering for our customers and building our company for the future.
turning to page 3 looking at the quarter Q2 with, it was another quarter of strong earnings in returns,
APS of 83 cents and net income of 32 million while Roa came in at 1.32% and our PPE and our remaining very solid that 1.73%.
Our ppnr was aided by both Nim expansion. Increasing to a robust 3.88% up 7 basis points. Link quarter while net interest income Rose, almost 4%
Asset quality and asset growth were both solid as loans increased 5%, while the ACL dropped 2 basis points, linked order.
Christopher McComish: Expenses were a little bit higher this quarter, due primarily to some incentive accrual catch-up because of our performance, and Mark's going to get into that detail.
Well customer deposit growth was somewhat muted. As I said earlier, DDA balance has remained very impressive at 28% while contributing almost 2/3 of our overall deposit growth in the quarter.
Christopher McComish: I'm going to stop right now, turn it over to both Dave and Mark. Don't want to steal their thunder.
David Antolik: Dave's going to talk a little bit more about the balance sheet, as well as asset quality.
David Antolik: Dave? Great.
David Antolik: Thank you, Chris, and good afternoon, everyone. Referring to page 4 of the earnings supplement, you'll see the continuation of our organic growth trends, evidenced by annualized loan growth of just over 5%, or $98 million in Q2. This growth was driven in large part by our commercial real estate balances, which experienced another solid quarter, increasing by $58 million. Categories of commercial real estate growth include multifamily and our retail. We also saw solid performance from our mortgage and home equity businesses, which combined for $26 million in net growth. Although C&I balances were flat for the quarter, we've seen an increase in calling efforts and pipelines in this category.
Increasing by 58 million categories of commercial, real estate growth include multifamily and our retail segments.
David Antolik: The total commercial pipeline is now approximately 60% CRE and 40% C&I, and overall remains robust.
David Antolik: We believe that we can consistently deliver loan growth in the high-mid single-digit range for the second half of 2025 by maintaining CRE mortgage and home equity activities and by executing on a strong pipeline of C&I operations. In support of these activities, we've added four new commercial bankers since the beginning of Q2, including a new C&I team leader in Central Ohio.
We also saw solid performance from our mortgage and home equity businesses which combined for 26 million in net growth. Although cni balances were flat for the quarter. We've seen an increase in calling efforts in pipelines. In this category, the total commercial pipeline is now approximately 60% CRA and 40% cni. And overall remains robust
We believe that we can consistently deliver loan growth in the high. Mid single digit range for the second half of 2025 by maintaining CRA mortgage and home, equity activities and by executing on a strong pipeline of cni opportunities,
David Antolik: Turning to deposits, as Chris mentioned, Q2 yielded our eighth consecutive quarter of customer deposit growth as we continue to leverage our banker-driven customer relationship sales process, which is supported by a maturing and robust deposit exception pricing platform that focuses on delivering first-class customer experience while maintaining our pricing. In total, deposit balances grew by $28 million or 1.42% annualized in Q2. As Chris mentioned, from a mixed perspective, our growth in Q2 was largely driven by CD and money market activities, but we're very proud of our ability to track and maintain non-interest bearing DD balances. And those balances represent 28% of total deposits and grew by $18 million in the quarter.
In support of these activities, we've added 4, new commercial Bankers, since the beginning of Q2, including a new cni team leader on Central Ohio.
Turning to deposits as. As Chris mentioned, Q2 yielded our eighth consecutive quarter of customer deposit growth. As we continue to leverage, our Banker driven customer relationship sales process which is supported by a maturing and robust deposit. Exception pricing platform, that focuses on delivering first class customer experience while maintaining our pricing discipline in total deposit, balances grew by 28 million or 1.42% annualized in Q2.
David Antolik: Turning to page 5, which provides an update on our asset quality, our allowance for credit losses declined by two basis points from 1.26 to 1.24% of total loans. This reduction is an outcome of our team's focus on maintaining reduced levels of MPAs, as depicted on the slide, as well as maintaining a lower level of C&Cs. In total, C&Cs remained stable for the quarter. Charges were modest and in line with our expectations at $1.2 million for the quarter.
As Chris mentioned, from a mix perspective, our growth in Q2 was largely, uh, driven by CD and money market activities, but we're very proud of our ability to attract and maintain non-interest, bearing DD, balances, and those balances represent, 28% of total deposits and grew by 18 million in the quarter. Uh, turning to page 5 uh which provides an update on our asset quality, our allowance for credit losses to climb by 2 basis points from 1.26 to 1.24% of total loans. This reduction is an outcome of our teams uh focus on maintaining reduced levels of mpas as depicted on the slide, as well as maintaining a lower level of cncs. Uh in total cncs remained stable for the quarter.
David Antolik: As mentioned last quarter, we continue to monitor the potential impact of tariffs and a changing economic landscape. To date, these issues have had no impact on our growth, including pull-through rates from our pipelines, and we've heard little concern from our customer base. Customer conversations relative to this issue have quieted recently, and businesses continue to focus on managing the variables that they can directly control.
David Antolik: Finally, our credit risk management practices rely heavily upon the collection of data and analysis of pertinent industry and customer-specific information. That data informs these banker-led conversations that I spoke of, and we use that data and those conversations to aggregate a segment-specific and overall credit risk.
Charges were modest and in line with our expectations at 1.2 million for the quarter, as mentioned last quarter, we continue to monitor the potential impact of tariffs and a changing economic landscape to date. These issues of had no impact on our growth and including pool through rates from our pipelines. And we've heard little concern from our customer base. Customer conversations relative to this issue of quieted recently and, uh, businesses continue to focusing on managing the variables that they can directly control.
Mark Kochvar: I'll now turn it over to Mark. Thanks, Dave. Second quarter net income improved by 3.3 million 3.9% compared to the first quarter. The net is expanded by 7 basis points and combined with loan growth of 5% to produce the best quarterly growth we have seen in this revenue item since 2022. that an industry smarts and improvement came from earning asset repricing in both loans and securities combined with a stable cost of funds. On the asset side, we saw additional benefits in the securities book. With the restructuring we executed at the very end of the first quarter.
Mark Kotar: Finally, our credit is credit risk. Management practices, rely heavily upon the collection of of data and Analysis of pertinent, uh, industry and customers specific information. Uh, that data informs these Banker LED conversations that I spoke of, uh, and we use that data and those conversations to aggregate a segment specific and overall credit risk, and I'll turn it over to mark.
Mark Kotar: I think Dave uh second quarter, net interest income, improved by 3.3 million 3.9% compared to the first quarter.
Mark Kotar: Of the net interest margin expanded by 7 points, 7 basis points and combined with loan growth of 5% to produce. The best quarterly growth. We have seen in this Revenue item since 2022.
Mark Kochvar: And with loans, we saw overall positive repricing of about 16 basis. On the funding side, favorable CD pricing was offset by deposit and funding exchanges along with some, but more limited deposit exception pricing. We expect the net interest margin to stay fairly stable if the Fed cuts rates twice this year as expected. There's some limited upside for us in a higher-for-longer scenario.
Mark Kotar: The interest margin Improvement came from earning ads that were pricing in both loans and securities combined with us. Stable cost of funds. On the asset side, we saw additional benefits in the Securities book. With a restructuring, we executed at the very end of the first quarter. And with loans, we saw overall positive root pricing of about 16 basis points.
On the funding side, favorable CD pricing was offset by deposit and funding exchanges among with some but more limited deposit. Exception pricing.
Mark Kotar: Respecting this margin to stay fairly stable If the Fed Cuts rates twice this year as expected, there's some limited upside for us in a higher for longer scenario.
Mark Kochvar: Next slide. Unmanaged income increased by $3.1 million in the second quarter, primarily due to the security repositioning-related loss of $2.3 million in the first quarter that I referenced. Second quarter also saw a rebound in consumer activity from the first quarter, which is typically seasonally low. Our expectations for fees going forward remains at approximately $13 to $14 million per quarter. Expenses on the next slide increased by $3 million in the second quarter compared to the first. Variances were concentrated in salaries and benefits. Base salaries were up about $900,000. About two-thirds of that was related to the annual merit increases, which became effective in the second quarter, and the rest with the new hires primarily in our production areas that Dave Incentives were up about $1.2 million, with most of that being performance-related in both our long-term and annual plan.
Mark Kotar: uh, next slide I'm not interested in income, uh, increased by 3.1 million in the second quarter, primarily due to the security through positioning, really loss of 2.3 million in the first quarter of that, I referenced,
Mark Kotar: quarter also,
Mark Kotar: Consumer activity from the first quarter, which is typically seasonally low for us.
Mark Kotar: All right, expectations for fees, going forward remains at approximately 13 to 14 million per quarter.
Mark Kotar: Expenses on the next slide, increased by 3 million in the second quarter compared to the first variances. Were concentrated in salaries and benefits.
Speaker Change: and the rest with the new hires primarily on their production areas that Dave referenced
Mark Kochvar: And finally, our self-funded medical expense increased by about $1.2 million. While we typically see an increase in medical expense in the second quarter compared to the first, the first quarter is typically lower due to resetting of annual deductibles. The increase this year in the second quarter was about double what we typically see. Moving on to other expense categories, the quarterly variances and other taxes and other offset and are related to Pennsylvania shares tax credit per And finally, professional services increased by about 500,000, mostly due to the timing of various projects. While some of the expense increase we had in the second quarter is temporary, the base dollar increase and some of the medical, we do expect to recur.
Speaker Change: incentives were up about 1.2 million with most of that being performance related in both, our long-term and annual plans.
Speaker Change: And finally, our self-funded medical expense increased by about 1.2 million. While we typically see an increase in medical expense in the second quarter compared to the first, the first quarter is, is typically lower due to resetting of annual deductibles. The increase this year in the second quarter was about double what we typically see.
Speaker Change: Moving to on to other expense categories. The quarterly variances in other taxes and other offset and are related to Pennsylvania's shares tax credit programs.
Speaker Change: And finally, Professional Service in Services, increased by about 500,000 mostly due to the timing of various projects.
Mark Kochvar: Our quarterly expense run rate, we now expect to be approximately $57 to $58 million for the second half of the year. Next in capital, the TCE ratio increased by 18 basis points this quarter with AOCI improvement contributing 8 basis points. Strong retained earnings was offset by asset growth for the remainder of the year. Most regulatory ratios declined slightly due to risk-weighted asset growth, which also included an increase of over $80 million in loan For more information visit www.FEMA.gov Our TCE and regulatory capital levels position us well for the environment and will enable us to take advantage of organic or inorganic growth outcomes.
Speaker Change: While some of the expense increase we had in the second quarter is temporary, the base salary, increase and some of the medical we do expect to recur. Our quarterly expense run rate. We now expect to be approximately 57 to 58 million for the second half of the year.
Speaker Change: Next in capital uh the tte ratio increased uh by 18 basis points, this quarter with aoci Improvement, contributing 8 basis, points of that.
Speaker Change: Strong relate retained earnings was offset by asset growth for the remainder.
Speaker Change: Most regulatory ratios declined slightly due to risk weighted asset growth, which also included an increase of over 80 million dollars in loan commitments.
Mark Kochvar: Thanks very much.
Speaker Change: Our tce and Regulatory Capital levels position as well for the environment and will enable us to take advantage of organic or inorganic growth opportunities.
Unknown Executive: At this time, I'd like to turn the call back over to the operator to provide instructions for asking questions. Thank you. And the floor is now open for questions. If you have any questions, please press star one on your phone. And we ask that while asking your question, you please pick up your phone and turn off the speaker phone for enhanced audio quality. And please just hold a moment while we poll for questions.
Speaker Change: Thanks very much at this time. I'd like to turn the call back over to the operator to provide instructions for asking questions.
Speaker Change: Thank you. And the floor is now open for questions. If you have any questions, please press star 1 on your phone and we ask that while asking your question. You, please pick up your phone and turn off the speaker phone for enhanced audio quality and please just hold a moment while we pull for questions.
Justin Crowley: Okay, looks like our first question comes from the line of Justin Crowley with Piper Sandler. Justin, please go ahead. Hey, good afternoon, everyone. I just want to start on some of the margin inputs here, and in particular, looking at funding costs, where you saw things stabilize in the quarter, you know, how do you see the progression there, or from here, with the idea being to ramp up the pace of loan growth?
Speaker Change: Okay, it looks like our first question comes from the line of Justin Crowley with Piper Sandler. Justin, please go ahead.
Hey, good afternoon, everyone.
Hi Justin.
Mark Kochvar: You know, maybe just thinking about a flat rate environment for a second, you know, could we see some upward pressure on deposit costs, just given the need to, you know, fund the forward loan growth? Well, to the extent that we're successful in our deposit-raising efforts over and above, we should be able to offset some of that with a decrease in borrowings, which are similarly priced. The incremental margin that we're getting, you know, might be a little bit lower than the 3.88%. So there could be a little bit of pressure on growth on the margin. Okay, got it.
Speaker Change: Um, just wanted to start on some of the margin inputs here. And in particular looking at funding costs, where you saw things stabilized in the quarter. Um, you know, how do you see the progression there or from here with the idea being to ramp up the pace of the loan growth? Um, you know, maybe just thinking about a flat rate environment for a second you know could we see some awkward pressure on deposit costs just giving the need to um, you know, fund the the forward loan growth.
Speaker Change: um, what's the extent that, um, we're successful in in our deposit, raising efforts, you know, over and above, we should be able to, um, to offset some of that with
with a decrease in borrowing, which are similarly priced. Um, but
Speaker Change: The incremental margin that we're getting, you know, might be a little bit lower than the the 3.88% so there could be a little bit of pressure on on growth on the margins.
Mark Kochvar: And then you just to clarify, you'd mentioned, perhaps, you know, in a higher for longer environment, you know, there being potential upside, could you just quantify that a little further and just talk about the drivers in the event that unfolds? The benefits that we've been seeing just in the repricing on both the security side and the loans, along with the swap book that is maturing for its receipt fixed swap book. We have about $50 million maturing each time, so we'll get a little bit more of those benefits in a flat environment versus having to be more aggressive on the deposit repricing side should rates drop down.
Speaker Change: Okay, got it. Um, and then you just to, uh, to clarify you mentioned perhaps, you know, in a higher for longer, um, environment. Um, you know, they're being potential. Upside could you just quantify that a little further and just talk about the drivers, um, in the event, uh, that unfolds
Mark Kochvar: There will probably be in a couple basis point range, it's not. It's not that significant, it's probably a couple, maybe a basis point or two per cut. Time goes on, which if they don't. Okay, got it. That's helpful. And then, you know, it sounds like there's still a lot of confidence in hitting, you know, that mid to high single digit loan growth. But you know, pace of growth in the back half of the year, you know, which would seem to put you over 10 billion by December 31. You know, is that kind of what you're planning on?
Speaker Change: Um, since the the the the benefits that we've been seeing, just in the, in the repricing, on the, on the both, the security side and the and the and the loans um, along with the the swap book um, that it is maturing for us to receive fixed swap but we have about 50 million maturing each time. So we'll, we'll get a little bit more of those benefits and and, and a flat and a flat environment versus having to um be more aggressive on the deposit. Roof. Pricing side should rate drop down but it'll probably be in in a couple basis point range. It's not, it's not uh, it's not that significant it's probably a couple maybe a basis point or 2 per cut.
Speaker Change: Or.
Speaker Change: as time goes on, if they don't cut it,
Mark Kochvar: Is that the most likely scenario? Or are you given much thought to, you know, managing below that level? How do you think about that? It'll be, I mean, if we hit the numbers that we expect, it will be close. So we'll just play it, play it by ear, see how that goes at the end. If it's close, yeah, there's a few things we can do to stay under, to maintain the under $10 billion for another year. But we're not going to do that for very long. You know, it'd just be a one-time. Okay, got it.
Okay, got it. That's all full. Um, and then you know it sounds like there's still a lot of confidence in hitting, you know, that mid to high single-digit loan growth. Um but you know basic growth in the back half of the year um you know, which would seem to put you over 10 billion by December 31. You know, is that kind of what you're planning on is that the most likely scenario? Or are you giving much thought to um, you know, managing below that level? How do you think about that?
Speaker Change: A year but we're not going to do that for very long. You know, it just be a 1 1 time thing.
Christopher McComish: And if I could just maybe sneak one last one, I'm just on M&A, you know, it seems like we're seeing more deals get announced. So just curious, the pace of conversations from your standpoint, you know, I know you mentioned in the prepared remarks, Chris, that, you know, that remains a critical part of the strategy, but just curious how things might be developing on that side, just as we've seen, you know, bank share prices do better here. You know, I'm not sure how that's informed discussions and just the likelihood of getting something penned. Yeah, these are, Justin, thanks for that question.
Christopher McComish: And these are all long-term relationship building exercises. And we're very diligent about that with those companies that we have potential interest in. So, you know, the relationships continue to be built. I would agree with you that, you know, lots of, you know, a lot less uncertainty today in the market than there was back three or four months ago. So people are looking to move forward and, you know, we would expect to be a participant. So overall, you know, positive conversation.
Speaker Change: Okay and got it. And then if I could just maybe sneak 1 last 1 and just on m&a, you know it seems like we're seeing more deals get announced so just curious the pace of conversations from your standpoint. You know, I know you mentioned in the preparator marks Chris that you know that major critical part of the strategy but just curious how, um, things might be developing on that side, just as we've seen, um, you know, Bank share prices do better here. Um, you know, I'm not sure how that's, um, informed discussions and just like the likelihood of getting something pinned. Yeah, the these are um Justin, thanks for that, that question.
Speaker Change: and, you know, these are all
Long-term re relationship building exercises and we're we're very diligent about that with those. Those companies that we have, we have potential interest in so, um, you know, the, the relationships relationships continue to be built. I would agree with you that, you know, the
Lots of you know lot less uncertainty today in the market than there was back 3 or 4 months ago. So people are looking to to move forward and uh you know, we we would expect to be a a participant. So overall, you know, positive conversations.
Christopher McComish: Okay, got it. And then maybe just geographically speaking, and I know you've discussed it before, but is there any reason to think the focus has shifted at all? Are there certain areas of your footprint or contiguous markets that look more favorable today? What's the thinking there? We're still very focused on how we define our core markets of today, Pennsylvania and Ohio, and then stretching a little further south and east into the Virginia, Maryland, D.C. markets. All of those are attractive.
Speaker Change: Okay, got it. And then maybe just geographically speaking and I know you've discussed it before but um is there any reason to think? You know, the focus has shifted at all? Are there certain areas of your footprint or contiguous markets that, you know, look more favorable today? Um, you know, what's the thinking there? So we're we're still very focused on on how we Define, you know, our core markets of today, Pennsylvania and Ohio. And then, you know, strength, stretching a little further south in, in East into the Virginia Maryland. DC Market is all of that. All of those are attractive to us.
Unknown Executive: Okay, great.
Justin Crowley: I will leave it there. Thanks so much for taking the question. Thank you. Appreciate it. Thanks, Justin.
Okay, great, I will leave it there. Thanks so much for taking the question. Thank you, appreciate it, take care.
Daniel Tamayo: And our next question comes from the line of Daniel Tamayo with Raymond James.
Daniel Tamayo: Daniel, please go ahead. Thanks. Good afternoon, guys. Maybe first on credit, you know, that's been a very good story for you guys for the last several quarters as the early stage stuff has come down and that really the net charge has been almost nothing. I'm curious kind of where you guys see it going from here. You know, with reserves down to 124 of loans and net charges bouncing around kind of at the near zero levels, if you've got thoughts on kind of a more normalized rate now that you're down to these levels. Yeah, I think at this point, Dan, we've focused on stabilizing.
Speaker Change: Thanks Justin. And our next question comes from the line of Daniel to Mayo with Raymond James, Daniel. Please go ahead.
Daniel: Thanks. Good afternoon, guys.
Speaker Change: Thank.
Speaker Change: Um, maybe first on on credit, you know that that's been a a very good story for you guys. For the last several quarters, as a uh, you know, kind of the early stage stuff has come down. And then that really the net charge offs have been
Speaker Change: Almost nothing, um, curious kind of where you guys see it going from here. Um, you know, with, you know, reserves down to 124 of loans and, um, net charge offs, bouncing around kind of at the near zero levels. If you, if you've got thoughts on on, um, kind of a more normalized rate now that you're down at these levels.
Speaker Change: Yeah, I I think at this point Dan, we've uh, Focus
David Antolik: So if we can keep NPLs at these levels, they're exceptionally low, as you know. And if we can continue to keep CNC and new formation of NPL, we can ward that off. We saw a little bit of rotation in and out of CNC during the quarter. And of course, as we as we grow, we're going to need to provision for that growth. So I think those are the variables that are going to drive provisioning. I don't anticipate significant charge offs. There may still be some room for improvement in CNCs. But really, we're looking at trying to stabilize and and maintain our asset quality.
David Antolik: And Dan, you were right on. I mean, this is, you know, good three years worth of work. on our team's behalf. And it was a rotation of assets that just didn't fit our long-term strategy. And the team has done really, really good work there. As I said in my earlier remarks, since about midpoint last year, our focus has been very much on growth versus replacement of that which was running off.
Speaker Change: On stabilizing. So, if we can keep npls at these levels, they're exceptionally low as you know, and if we can continue to keep CNC and new formation of MPL at, you know, if we can more that off, um, we saw a little bit of rotation in and out of CNC during the the quarter, um, and of course, as we as we grow, we're going to need to provision for that growth. So I think those are the variables that are going to, uh, Drive provisioning. I don't anticipate significant charge drops. Um, there may still be some room for improvement in cncs. Um, but really, we're, we're looking at trying to stabilize and, and maintain our our asset quality at this point. Yeah. And then then you you were right on. I mean, this is, you know, good 3 years worth of work.
On our teams behalf. And, and it was, um, you know, rotation of assets that just didn't didn't fit our long-term strategy. And the team has done really, really good work. Uh, there. And, you know, we we as I said, in my earlier remarks, you know, since about midpoint last year, our Focus has been very much on on growth, um, versus you know, replacement of that that which we were um, which was running off.
David Antolik: Great. So I guess at the end of the day, the... The reserves feel like we've hit kind of a stabilization point at this point, or you think that there may be still a little bit left? There may be a little bit of room for improvement, but not a lot. Yeah, I mean, we were in the mid-140s, now we're at 124, so, you know, we're getting closer. to the stabilization. Got it.
Great. So, so you I guess at the end of the day, the
The reserves. Um feel like we've we've hit kind of a stabilization point at this point are are you think that that that there are maybe still a little bit left?
Speaker Change: There may be a little bit of room for improvement but not a lot. Yeah, I mean we were in the mid 140s
Speaker Change: Now we're at 124.
Speaker Change: So, you know, we're getting closer to the to the stabilization point.
Daniel Tamayo: Okay. And then maybe just a cleanup question, you know, related to the 10 billion crossing that was asked earlier, the just if you could remind us what the what the Durbin hit is, I think I have, you know, just over 6 million as an annualized number in my notes, but if that's changed at all, and if there's any other kind of impact from crossing 10 billion that you would expect. It's between $6 and $7 million, the Durban. We feel like we've done a lot of the infrastructure building, so we don't anticipate a lot of expense.
Got it, okay.
Speaker Change: Uh and then maybe just to clean up question. Um, you know, related to the 10 billion Crossing that was asked earlier, the just if you could remind us what the uh, what the Durban hit is. I think I have, you know, just over 6 million as an annualized number in my notes. But um, if if that's changed at all and and if there's any other kind of impact from Crossing 10 billion that you would expect,
Mark Kochvar: you know, tied directly to the $10 billion. There's always expenses we grow, but nothing else meaningful that's specific to the cross.
Between 6 and 7 million. Um, the the Durban, um, we feel like we've done a lot of the infrastructure building, um, so we don't anticipate a lot of expense, you know, tied directly to the 10 billion. There's always expenses we grow, but nothing else. Meaningful, that's specific to the cross.
Daniel Tamayo: Great.
Unknown Executive: All right, that's all I had. Appreciate the color. Thank you. Thanks, Dan.
Speaker Change: Great.
Speaker Change: All right. That's all I had appreciate the caller.
Speaker Change: Thank you.
Kelly Motta: And our next question comes from the line of Kelly Motta with KBW.
Kelly Motta: Kelly, please go ahead. Hey, good afternoon. Thanks for the question. Maybe kicking back to loan growth, Chris, if I caught in the prepared remarks, it sounded like you're more optimistic for growth. Unknown Speaker potentially bump up here in the back half of the year. You've had a really strong start to the first half. I'm just wondering if you could go into a bit more detail as to where you're... The most opportunities, whether by market or specific categories, which which of those would be the primary driver.
Speaker Change: Thanks Dan and our next question comes from the line of Kelly. Mata with KBW Kelly. Please go ahead.
Kelly Mata: Hey, good afternoon, thanks for the question. Um,
David Antolik: I'll have Dave take that one. Yeah, thanks, Kelly, for the question. So we saw CRE growth kind of year-to-date in the 7% range. If we can continue to maintain that growth, our pipelines would tell us that we can, as well as the home equity and mortgage growth, which has been kind of 5%-ish. Maintain that growth, we've seen essentially no growth in CNI, so that CNI that would come from the pipeline that I spoke of would augment total growth and get us to a number that is above what we saw in the first two quarters. We've seen commercial construction commitments increase during the past two quarters, so there'll be some definite funding that comes from that book.
Kelly Mata: maybe kicking back to loan growth. Um, Chris, if I caught in the prepared remarks, it sounded like you're more optimistic for growth to, um, potentially bump up here in the back, half of the year. You've had a really strong start to the first half, um, just wondering if you could go into a bit more detail as to where you're seeing the most opportunities whether um, by market or specific categories, which, which of those would be the, uh, primary drivers of growth. I'll have Dave Dave, take that 1. Yeah. Thanks Kelly for the question. Um, so we saw a CRA growth in a year to date in the 7% range. Um, if we can continue to maintain that growth and our pipelines would tell us that we can uh as as well as the home equity and mortgage growth, which has been kind of 5% dish. Um, maintain that
David Antolik: We've seen overall commitments rise as well, including CNI. So if we can maintain an existing utilization rate from those two books, we'll see supplemental loan growth there as well. So if you kind of blend all those things together, it's not one specific concentrated area of outsized growth. It's good, consistent growth throughout all of our business lines in each of the categories.
Macros, we've seen essentially no growth in cni, so that cni growth, uh, that would come from the pipeline that I spoke of would augment total growth and get us it to a number. That is above what we saw in the first 2 quarters. Um, we've seen commercial construction commitments increase during the path to quarters. So there'll be some definite funding that comes in, uh, uh, from that book. We've seen overall commitments rise as well, including cni. Um, so if we can maintain an existing utilization rate from those 2 books, we'll see supplemental uh, loan growth there as well. So, if you kind of blend all those things together, it's not 1 specific, concentrated area of of outside growth. It's good consistent growth throughout all of our business lines and and each each of the categories.
David Antolik: Great. I believe you've added some commercial producers or teams here. Wondering if that's something you're looking to do here or you feel like at this stage, near term, you have the team in place. Just any color around that as a driver would be helpful. Yeah, so we added four bankers since the beginning of Q2, primarily focused on C&I. We will continue to recruit and add bankers to the commercial banking and business banking teams. That's where we see the most opportunity. They're largely focused on balancing their efforts between improving deposits, raising deposits, and booking loans as well.
Speaker Change: Great. And I I believe you've added um some commercial producers or or teams here wondering how um if if that's you know something you're looking to do here or you feel like at this stage near term, you have the the team in place. Um, just any any color around that as a driver would be helpful.
David Antolik: So we think of them as bankers and in a well-rounded way, we know we need to balance that deposit growth along with the loan growth. So we believe that those additions are benefiting us by improving our pipelines. That's really what we saw in Q2, particularly in the C&I pipeline. It takes a little bit of time. Those calling processes and calling timeframes take a little while. So we expect those to bear fruit in Q3 and Q4. Got it, thanks.
Yeah, so we had we added 4 Bankers since the beginning of Q2 primarily focused on cni. Um, we will continue to recruit and add Bankers to the Commercial Banking and business banking teams. That's where we see the most opportunity. Um, they're largely focused on, you know, balancing their efforts between, uh, improving deposits, raising deposits and, uh, booking loans as well. So we, we think of them as bankers and in a well-rounded way, we know we need to balance that deposit growth along with, with the loan growth. Um, so, you know, we believe that those additions are benefiting Us by improving our pipelines. That's really what we saw in Q2 particularly in the cni pipeline. Um, it takes a little bit of time, you know, those calling processes and, and calling time frames take a little while. So we expect those to to bear fruit in in Q3 and Q4.
Christopher McComish: Last question to me, not to beat a dead horse on M&A, but obviously it's becoming more of the discussion that could be picking up. Hopefully we'll beat a live horse. But can you just refresh us on kind of the size you feel you need to be to absorb the $10 billion cross and what that means for potential partners and how large you would go? Yeah, so Mark touched on it a little while ago from the standpoint of the real hit to the $10 billion cross is the revenue hit with Durbin. We have built the team out from infrastructure standpoint and we worked closely with our regulators in preparation for all of this.
Speaker Change: Got it. Thanks. Um, last question to me, not a not to, uh, be the dead horse on m&a, but obviously, um, it's becoming more of the discussion so that can be picking up. Hopefully, what? Hopefully, we'll be the live horse. Um, but uh, can you just refresh us on on, kind of, um, the the size you feel you need to be to absorb the, the 10 billion cross. And, um, yeah, um, how would that be for potential partners and how, how large he would go?
Christopher McComish: So there's nothing from an infrastructure standpoint, nothing meaningful from a staff standpoint that would cause any increase in expenses in how we run the company because we're over $10 billion. So the revenue hit of six or $7 billion, you could say replacing that would be a driver from an M&A standpoint, but hopefully an M&A transaction contributes a lot more than just the six or $7 million. We're looking at our geography, we're looking at from a size standpoint we've talked about in that billion to $5 billion range seems to make a lot of sense for us and that's how we're looking at it and considering.
Speaker Change: Replacing that would be a driver uh from a um from an m&a standpoint but you know, hopefully other m&a. Transaction contributes a lot more than just the the 6 or 7 million dollars.
Speaker Change: We're looking, you know, at our geography, we're looking at, um, you know, from a size standpoint, we've talked about, you know, in that, you know, billion to 5 billion dollar range, you know, seems to make a lot of sense for us and that, that's, that's how we're we're looking at it. And considering it,
Kelly Motta: Got it. That's that. Yep. Got it. Thanks. Thanks for all the color there. Nice quarter. I'll step back. Thank you. All right. Thank you, Kelly.
Speaker Change: Got it and that's that's that that's the asset size. Yep. Um got it. Thanks. Thanks for all all the color there. Uh, nice quarter. I'll step back.
Thank you. All right. Thank you Kelly.
Manuel Navas: And our next question comes from the line of Manuel Navas with DA Davidson. Manuel, please go ahead.
Manual Novice: And our next question comes from the line of manual novice with da Davidson manual. Please go ahead.
Sharanjit Cheema: Everyone, this is Sharanjit. I'm from Manoa. Thank you for taking my questions. For my first question, as a seasonally weaker on deposits this quarter, could you talk a little bit about what the pipeline for deposit growth looks like going into the second half of this year? The pipeline at this point is similar to what we saw in Q2. We're focusing activities on, particularly in the business space, so the bankers that I spoke about and some of the treasury management officers that we've added recently are really focused on that space. Historically, Q3 has always been boosted by public funds deposits, particularly in the municipal space.
Sharon G: Everyone, this is Sharon G on from monol, thank you for taking my questions.
Speaker Change: Um, for my first question, I was wondering so seasonally weaker on deposits. This quarter. Could you talk a little bit about what the pipeline for deposit growth? Looks like going into the second half of this year.
Yeah. The the pipeline at this point is similar to what we saw in in Q2. Um, we're focusing activities on particularly in the business space. So, the, the bankers that I spoke about and some of the treasury management officers, that, that we've had recently, or really focused on that space.
and, you know, historically Q3 has always been boosted by, uh, public funds deposits, particularly new Municipal space as, uh,
Sharanjit Cheema: We'll have some tailwind in Q3 relative to the seasonal activities, but our focus is really on building that pipeline and driving more growth. The deposit growth in Q2 was mainly driven by consumer activities, so I'm really proud of the job that we did there. The overwhelming majority of that balance growth came out of those activities. More focus on business and treasury management and a continuation with what we saw in the consumer. Great, thank you.
You know, fall taxes hit. So we'll have some Tailwind in in Q3 relative to the seasonal activities. Um but our focus is really on building that Pipeline and and driving more growth. The uh deposit growth in Q2 was mainly driven by consumer activity, some really proud of the job that we did there, the overwhelming majority of that, uh, balanced growth came out of of those activities. So more more focus on business and treasury management and, uh, can a continuation with what we saw in, in the consumer Bank.
David Antolik: And then could you speak a little bit about to like what the competitive landscape looks like right now and essentially also what new loan yields are coming on at right now versus what's coming off? I'll just speak to the competitive landscape. You know, it's continued to be an interesting conversation and geographically different, right? So we've got an eastern Pennsylvania presence. We've got the presence here in Western Pennsylvania where we've got our core markets where we have significant market share and in Ohio we're more of a disruptor. So for us it's about our ability to balance the customer conversation with the exception pricing process that we've put in place that allows us to be competitive.
Speaker Change: Great, thank you. And then could you speak a little bit about to like what the competitive landscape looks like right now and potentially also, what new loan yields are coming on at right now. Of course, see what's coming off.
speak to the competitive landscape, you know, it's it's uh, continues to be
Speaker Change: An interesting conversation, uh, and geographically, uh, different, right? So we've got an Eastern Pennsylvania.
David Antolik: You know all that being said and we're really happy that we were able to drive some deposit growth this quarter where many others haven't but we know we can do better and we've got some big bars set for ourselves in terms of goals for the for the balance.
Mark Kochvar: And Mark, I don't know if you want to take the yield question. Yes, so for overall weighted average, the new loans coming on were about $652,000 versus a payment or payoff rate of $636,000. So we picked up about 16 basis points. The kind of best replacement spreads are still coming out of the mortgage area where we're picking up over a basis, over 100 basis points. The commercial, since a lot of that's floating, that's pretty flat. So the replacement's pretty close because a lot of that activity happens on the floating side. And then business side, we're still picking up about 50 basis points.
Uh, uh presence. We've got the presence here in Western Pennsylvania, where we've got our core markets, where we have significant market, share, and then Ohio, we're more of a of a disruptor. So for us it's it's about our ability to balance the customer conversation with the exception pricing process that we've put in place that allows us to be competitive. Um, you know, all that being said, you know, we're really happy that we were able to to drive some deposit growth. This quarter where many others haven't, um, but we know we can do better. And we've got uh, some big bars set for ourselves in terms of goals for the for the balance of the year. And Mark, I don't know if you want to take the yield question. Yeah, so uh, oh overall weighted average the new ones coming on. We're about 652 versus a, a payment or payoff rate of 636. So we picked up about 16 basis points on the, the kind of the best replacement, spreads are still coming out of the mortgage area where we're picking up over a, a basis or over 100 basis points. Uh, the
Sharanjit Cheema: But overall, it's bad. That's great. Thank you so much for taking my questions. I'll step back. Thank you. Thank you, Sharon.
Mark Kotar: Commercial since a lot of that's, uh, uh, floating that's, that's pretty flat. So the replacement is pretty close because a lot of the activity happens on the, on the floating side and that business side, we're still picking up about 50 basis points on the on the turnover.
Speaker Change: Like overall, it's about 16 for the quarter.
Speaker Change: That's great. Thank you so much for taking my questions. I'll cut back.
Thank you.
Speaker Change: Thank you, Sharon.
Matthew Breese: And our next question comes from the line of Matthew Breese with Stevens. Matt, please go ahead. Hey, good afternoon, everybody. Hey, Matt. I'm sorry if I missed this. I think you touched on it at least once or twice in a different way. What was the back half of the year NIM guide, assuming you follow the curve and there's a couple of cuts? that fill a pit if we With a couple of cuts, we expect that NIMS to stay pretty, pretty stable to where it's at right now. So in that kind of mid, mid 380. Got it.
Speaker Change: And our next question comes from the line of Matthew Brie with Stevens. Matt, please go ahead.
Matthew Brie: Hey, good afternoon, everybody.
Speaker Change: Hey Matt. I'm at um I'm sorry if I missed this. Uh I I think you touched on it uh at least once you placed in a different way, what was the back half of the Year MIM guide? Assuming you know, you follow the curve and there's a couple of cuts
Speaker Change: That's the expected. Nim to stay pretty, pretty stable to where it's at right now. So in that kind of mid mid, mid 380s.
Matthew Brie: Uh, it should hold.
Mark Kochvar: Okay. And then on the securities front, you'd mentioned the increase in yields this quarter was tied to the restructuring at the end of the first quarter. Could you help me out? What are incremental securities being purchased at yield wise today? What types of securities are interesting to you? And then if you take away the restructuring, what is kind of the normal pace of yield increase to be expected there? Yes, so The new stuff we're putting on is probably between four and a half and five percent. We run a pretty conservative securities portfolio, so we stick with primarily agency-backed CMOs.
Speaker Change: Could you help me out? What are incremental Securities being purchased at yield wise today? What types of Securities are interesting to you. And then, if you take away the restructuring, what is kind of the, the normal pace of yield increase to be expected there?
Yep. So uh,
Mark Kochvar: We prefer to get pretty good structure with those, try and get some lockouts to help us on the... We still think we're a little bit tilted toward rates down risk, so we'll still buy some structure and a little bit of term on the security side. So we're right now in that kind of four and a half to five percent we're putting things on. Without the restructuring, I think we're getting around probably $50 million of maturities and cash flow back per quarter, so that's our replacement opportunity going forward. That's still... Most of that is coming off with a three-handle or lower, so there's still some pickup opportunity, but it's getting...
Speaker Change: What the new stuff we're putting on probably between 4 and a half and 5%. We run a pretty conservative Securities portfolio. So we stick with primarily um agency backed. Um CMOS, we prefer to have get pretty good structure with those try and get some some lock out to help us on the. We still think there's there's a, a little bit tilted, toward uh, rates down risk, so we'll still um, buy some structure and a little bit of term on the, on the security side. And so we're, we're we're right now in that kind of 4 and a half to 5%, we're putting putting things on with without the, um, restructurings. I think we're, you know, we're getting around, probably 50 million of, uh, of of, uh, maturities and cash flow back per quarter.
Speaker Change: So that's our replacement opportunity going forward. That's still most of that is coming off with a a 3 handle or lower. So there's still some pickup opportunity but it's getting uh but it's Getting Thinner.
Mark Kochvar: Okay, and then, you know, I wanted to talk about excess capital, your tangible common ratio, I think is over 11%. Curious what you think is, you know, kind of the normal place you should be or our ideal target? And how do you lever up because it doesn't feel like, you know, mid single digit growth or mid to high single digit growth levers you up very Yes, I mean, that's one of the reasons you know, we talked a lot about opportunity on the inorganic side. We think that that capital that we have at over 11% is well more than we need to run the bank.
Speaker Change: Okay, and then, um, you know, I wanted to talk about excess Capital your, your tangible common ratio I think is, is over, 11% curious, what you think is, you know, kind of the normal place you should be or our ideal Target.
And um and how do you level up? Because it doesn't feel like you know mid single digit growth or mid to high single digit growth whatever is yep very quick.
Mark Kochvar: So we are actively looking for ways to deploy that. We at this juncture don't have the internal growth opportunities to be able to use that effectively. So that is, you know, part of the focus on the on that. Okay, we've got a little more comfortable with that, you know, something in the in the nine area or even lower. Okay, last one for me. Good Senator Dave McCormick. was out last week, held an energy and innovation summit right in their backyard in Pittsburgh. talked about. I was there, Matt. Yeah, I mean, very cool. $90 billion of infrastructure investments, data centers, energy, power, a lot of which is across your footprint.
Speaker Change: Yep, so I mean, that's 1 of the reasons, you know, we, we talked a lot about opportunity down the inorganic side. Um, we we think that, that Capital, that we have at at over 11% is, is, is well, more than we need to to run the bank. So,
We are actively looking for, um, for voice to play that. Um, we at this juncture don't have the, uh, internal growth opportunities to be able to, to use that effectively. Um, so that, that, that is, you know, part of particle, the of the focus on the, on the m&a.
okay, but we've got more comfortable with a, you know, something in the in the 900 or or even lower in terms of tangible,
Speaker Change: Okay.
Speaker Change: uh, last 1 for me, um,
Speaker Change: you know, the good Senator Dave McCormack was out last week, held an energy and Innovation Summit right in your backyard in Pittsburgh.
Speaker Change: Talked about I was I was there Matt. Yeah, I mean, very cool, 90 billion dollars of infrastructure Investments, data centers, Energy power. A lot of witches across your footprint
Christopher McComish: Tell me about what you learned and how good it could be for Pennsylvania. Well, you know, it's generating a lot of enthusiasm and optimism here, particularly here in western Pennsylvania and also very close to our headquarters here in Indiana. One of the biggest projects in the state is the power plant, the power generation facility that's being built in Homer City, Pennsylvania, which is just down the street. It's a home market to S&T Bank where we've been a long time. We have meetings with lots of officials talking about everything that's going on and, you know, a number of customers that are involved in various aspects of things.
Speaker Change: Um, tell me about what you learned and how good it could be for Pennsylvania.
Speaker Change: Um, well, you know, it it's generating a lot of enthusiasm and optimism. Um here in particularly here in Western Pennsylvania and then also very close to our headquarters here in Indiana, 1 of the biggest projects in the state. Um, is the, the power plant, the power generation facility that's being built in, uh, Homer City, uh, Pennsylvania, which is just down the street. Um, it's a Home Market to S&T Bank, where we've been a long, a long time,
Christopher McComish: So it's generated a heck of a lot of enthusiasm here throughout all of western Pennsylvania. Obviously, Pittsburgh's important, you know, but right here in the more community markets in western Pennsylvania, critically important. So we're very involved and working hard to be engaged. I was there the entire time last week at the event, and it was neat to see, and Dave did a great job putting it on. Great. I'll leave it there. Thank you for taking my questions. Thanks Matt.
Speaker Change: We have, um, meetings with lots of officials talking about everything that's going on and um, and uh, you know, number of customers that are involved in in various aspect aspects of things. So, it's generated, a heck of a, a lot of enthusiasm here throughout all of, Western Pennsylvania, and obviously, Pittsburgh's important, um, you know, but, but right here in, in the, the more, um, Community Markets, uh, in Western Pennsylvania, critically important. So we're we're very involved and
In in working hard to to be engaged. I was there the the entire time, uh, last week at the event and uh, it was, it was neat to see and and Dave, did a great job putting it on
Speaker Change: great, I'll leave it there. Thank you for taking my questions birthday.
David Bishop: And our final question today comes from the line of David Bishop with Habib. Dave, please go ahead. Yeah, thanks. Good afternoon, gentlemen. Hey, most of my questions have been asked and answered.
Thanks Matt. And our final question today comes from the line of David Bishop with hubby group. Dave, please go ahead.
David Antolik: I'm curious, just in terms of overall loan originations production this quarter versus payoff, this quarter versus last, I'm not sure if you have that number handy. I would be curious to hear how that how that trends in the banks. Yeah, I know the payoffs were down slightly. but very similar to last quarter, just down very. Got it.
David Bishop: Yeah, thanks say good afternoon, gentlemen. Hey um, most of my questions have been asked and answered but I'm curious just in terms of uh overall Loan originations Production this quarter versus payoff.
David Bishop: This quarter versus last. I'm not sure if you have that. Uh, number handy, it would be curious to hear how that how that Trend. Thanks. Yeah, I I I know the password down slightly. Um,
Speaker Change: Very slightly.
David Antolik: Do you have the production originations? Just curious how that compares as well. Yeah, production. Production was up quarter over quarter. Similar to Q... Q4 of last year, but Q4 of last year, we saw higher payoff levels, so slightly lower payoffs, better production. resulting in the nearly $100 million in growth. And the good news is the pipeline was effectively replaced as well.
Speaker Change: Got it. Do you have the production originations? Just curious how that compared as well? Yeah. Production
Production was up, quarter over quarter.
uh, similar to to Q uh,
Speaker Change: 4 of last year. Um, but Q4 of last year, we saw a higher payoff level so it's slightly lower payoff, better production. Um,
Speaker Change: Resulting in the uh, nearly 100 million dollars in growth that we saw. And the good news is that the the the pipeline was effectively replaced as well.
David Antolik: God, I appreciate the color. Thanks for joining the call. Thanks, Dave.
Got it. Appreciate the color.
Speaker Change: Short day, thanks for joining the call.
Unknown Executive: And that does conclude today's Q&A session.
Speaker Change: Thanks Dave.
Christopher McComish: I would now like to turn the call over to Chief Executive Officer Chris McComish for closing remarks. Okay, well, thank you all for your engagement and the great dialogue. We really appreciate your interest in our company.
And we look forward to we don't talk or see you before next next quarter's call. We know we'll talk to you then. Thanks so much. Bye bye.
Speaker Change: And that does conclude today's Q&A session, I would now like to turn the call over to Chief Executive Officer. Chris mccomish for closing remarks Chris. Okay, well, uh, thank you all for your engagement in the, in the great dialogue. We really appreciate your your interest in our company and uh, we look forward to uh, we don't talk or see you before next. Next quarter's call, we know we'll talk to you that. Thanks so much. Bye, bye.