Q2 2019 Earnings Call
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Okay connecting on back another call.
You are now rejoining the main conference just focusing on and something that weve been really excited to see growth over the last several quarters. So.
I'll stop there turn it over to Ron and let him walk through the deck in some greater detail.
Thanks, Bill and good morning, everyone, let's start with slide eight balance sheet trends all of our trends are showing continued consistent growth since year end 2018, our total assets have increased 117 million loans increased 56 million and deposits increased 90 million, we've seen continuous increases in our book value and tangible book value per share as well.
And the next few slides will give more details on these numbers.
The next slide as our earnings profile.
Our net interest income has increased over 6% year over year, excluding loan accretion. This was over 14% due to the fact that during the second quarter of 2018, we have reported significantly higher accretion in the current quarter.
Our total revenue increased over 38% year over year, excluding the merger termination fee our year over year increase was over 8%.
The merger termination fee recorded this quarter has increased our GAAP results considerably we will go through the individual components of this presentation over the next several slides focusing on GAAP and operating results.
As a reminder, as we move forward through the slides during the periods presented we had completed both the foothills and Tennessee Bancshares acquisitions.
Moving on to page 10, net interest income.
Our average, earning assets and liabilities have consistently increased quarter over quarter year over year due to both acquisitions and organic growth.
Our net interest margin was down slightly from the prior quarter, primarily due to lower record accretion and increased funding costs.
Loan yields when removing accretion have increased three basis points to 5.23% in comparison with the prior linked quarter of 5.2%.
As we move forward loan accretion will have less of an impact on our loan yields and margin.
Our scheduled loan accretion going forward will be around 15 to 20 basis points not taking into account any acceleration from free from prepayments or paydowns.
Deposits and deposit costs have increased 10 basis points to 1.42% when compared to the prior linked quarter our margin for the current quarter was 3.94% 60 basis point decrease from the prior linked quarter.
Our loan to deposit ratios within our range between 90% to 92%.
Our strategy.
During the latter part of the quarter actually in late May we deployed an initiative to lower our funding costs, we decided to strategically fund wholesale deposits with shorter maturities as well as satisfying some callable brokered Cds. Additionally, we shifted our brokered money market accounts to a combination of brokered Cds and FHLB overnight borrowings.
We will continue our internal focus to address the future potential fed movements.
We are currently we are currently reviewing our current rate sheet pricing structure, as well as customer exception pricing and balance sheet strategies.
Moving on to page 11, our noninterest income continues to increase.
We have removed the merger termination fee from this presentation. So we can emphasize our continued focus on increasing non interest income.
Operating non interest income to average assets have increased to 35 basis points, an increase of five basis points from the prior linked quarter.
We have had consistent growth in majority of our noninterest income components.
Both our mortgage banking and wealth platforms have experienced increased revenues.
Mortgage banking mortgage banking has experience higher production levels for the current quarter as expected.
As previously mentioned in prior calls our mortgage business is highly seasonal and subject to interest rate changes.
Our wealth platform continues to perform as we have added new professionals to this business line.
Moving on to page 12, you'll find noninterest expenses during the quarter, we reported $1.8 million of merger related and restructuring expenses. Excluding these expenses our operating noninterest expenses had increased $357000 from the prior linked quarter, primarily in personnel expense. The personnel expense increases our perm, primarily related to increased commissions and incentive accruals as well as various talent upgrades.
Our efficiency ratio for the quarter was a record 58%, but this was due to the termination fee excluding this.
Our operating efficiency ratio was 65.6%.
Over the last several quarters, we have maintained a 65% range.
On page 13.
We see our deposit mix, we are still consistently maintaining our one third one third one third mix on the bar chart to the right you will see that our composition has changed slightly when compared to the prior quarter as I mentioned earlier, we reposition brokered money market deposits to brokered Cds. This was prudent due to the decrease in wholesale funding costs over the last several months.
Our cost of interest bearing deposits for the current quarter increased by 10 basis points when compared to the first quarter and our total deposits have increased eight basis points for the same period.
We have experienced continued growth in our deposit portfolio.
Total deposits or as Miller mentioned pure deposits, we were defining as deposits less any broker deposits that had increased over 10% annualized from the prior linked quarter.
Another area of mentioned as our team is focused on growing non interest bearing deposits, which increased over 34% annualized from the prior linked quarter.
Our loan portfolio on page 14 has remained relatively stable for the linked quarters. Our loan production has been ahead of internal projections, but as Billy had indicated higher loan payoffs and paydowns have offset this growth as well as timing on the funding of loans.
We anticipate having mid single digit growth in the second half of 2019.
Our siri ratios as seen on the lower left side have been consistent over the past five quarters, we continue to benefit from the superior quality. Our team is booking that brings us to slide 15 asset quality.
You'll see that our asset quality has continued to perform better than our peers.
Our nonperforming assets to total assets with a 70 basis points to significantly lower than our peer group.
At quarter end, our nonperforming assets totaled $4 million, which has been the lowest amount and nonperforming assets for the periods presented.
Our allowance for loan losses to loans have increased slightly to 50 basis points largely from our acquired portfolio decreasing overtime and being replaced with our organic loans, which are subject to a reserve.
Our remaining fair value discounts totaled 18.6 million a quarter end with 13 million of that related to credit marks.
For the current quarter, we virtually had no charge offs reported again, our credit quality has been steady and consistent no signs of deterioration and with that I'll hand, this back over to bill.
Thanks, Ron and up from Brian's comments in the deck I think you'll see that the work that our team is doing is really starting to pay off and we anticipate.
That will continue to really bode well for us as we look into the second half your loan yields.
Continuing how likely picking up.
A little further for the quarter deposit cost stabilizing Ron had mentioned kind of a wholesale restructure that we did on that piece of the balance sheet. So I think we will see continued stabilization on the deposit cost and then an overall reliance on accretion reducing all all things that we think are very positive. We continue to build up really strong core deposit base and really starting to build a stronger core bank.
And again with the work that we're doing there we think thats going to really bode well in the second half just as I wrap up and go flip the last last comment just on page 16 of the deck Im kind of looking at our mid air moving forward initiatives.
A nice summary, slide it a couple of the big ones completed in a couple of those and process. A couple of those will probably always be in process.
But but our team is has really reenergized over the last quarter and ready to tackle our organic growth strategy and and if we find the right strategic M&A that ready to tackle that as well.
But all in all we think a solid quarter with repositioning nice solid earnings quarter.
And up and well positioned for moving into the second half of the year. So I'll stop there and we can open it up for questions.
Thank you Sir we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using speakerphone. Please pick up your handset before pressing the keys.
Your question. Please press Star then tail.
At this time, we will pause momentarily to assemble our roster.
First question will come from Stuart lots of KBW.
Hey, guys good morning.
Good morning, starting there.
I guess first my first question.
Starting on expenses.
No.
After.
And Tegra you announced that you are still going forward with.
A number of.
Technology expenses is kind of planning for being a larger bank and then.
I guess, if you look at the annualized rate from this quarter about 10% should we.
Kind of run rate that in the back half of this year or what can we expect from a core deposit sorry core expense growth.
And second half this year.
I would I don't see much change for opt for the core expense rate changing much over time, we're we're working on some internal initiatives that we're not ready to broadcast yet, but we will hold or slightly decrease this line item.
The only issue we have is awesome.
Some of the like any expense comp for personnel.
Higher commissions kind of we'll make that a little volatile as as our wealth and mortgage platforms grow revenues that commissions kind of like a bouncing ball a little bit but other than that we.
We think what we reported is a good baseline going forward.
Got it thanks for the color.
And then I guess back to M&A.
Obviously after integra.
I think last time, we saw you.
You were eager to get back in the M&A game, just curious how conversations are going be for that.
Conversations around Tennessee.
Have been picking up and just wanted to see.
Where do you stand on M&A at this point and if we can expect.
To sum up in the coming months.
Stuart.
As we said, we're we are focusing certainly on being an organic growth by.
We have always looked at deals from day, one we will continue to look at deals I will say, you're right. The Tennessee market will really all of our markets.
The phones, probably bring in more than it ever has led us to look at stuff, but we're going to take us slow.
Discerning look as we always have we've got we've been pretty bad gum discipline in our metrics, we're going to continue to be but.
We're not afraid to pull the trigger when right one comes along but we're not we're not it's going to do one tomorrow and started out this Billy I'll I'll add.
Bill is right I think there are others. There are there are opportunities out there I think for us.
I think the key air team is ready.
If the right opportunity comes along.
But but I think you're also seeing some.
Some different variables in pricing in some deals.
But but overall feel confident that we're ready if the right thing comes down the Pike absolutely.
Got it and sorry, just one more from me.
On the margin so accretable yield guidance I appreciate that there are 15 to 20 basis points going forward.
Is that okay.
As we look into 2020 with Cecil.
We expect that the drop down is a lot of that accretion coming from the credit side or is most of the interest rate Mark sorry, as most of the Accretable yield at this point.
Related to the interest rate marks on.
You're the guy.
Oh I'm sure I'll take that the guidance that we gave for the 15 to 20 basis points is on is truly the discounts not the credit side. So it's we will maintain that going forward, we won't we won't lose that.
In a seasonal impact.
Got it all right. Thanks, guys.
Great.
Thanks Tyler.
The next question will come from Peter are always of Sandler O'neill.
Hey, good morning, guys.
Morning, Peter payer group.
I just wanted to follow up on Stuarts question on the NIM, but just kind of thinking about it a little bit differently.
Hi, how are you guys thinking about what the impact would be here you know if we get if we get a rate cut you know next week and kind of maybe what what.
I know you have some some offsets there that you're working on the on the liability side, but what does it look like going forward with maybe each 25 basis point cut.
Yes, Peter I think we've been we've been doing a lot of modeling around that is I'm sure that many organizations have and really is yes. It is a moving target because I think youve with that you're seeing a little bit increased.
Pressure on some of the loan competition.
But we feel we're probably see some contracts I'll, let Ron probably talk a little bit about NIM contraction.
With a with a fed cut we'll probably see some but we think we can offset a lot of it.
Going forward, Ron you want to give some color on kind of NIM forecast, yes. At this point, we're modeling on a down 25 basis point scenario, probably it'll it'll be.
Negative it would be a $143000 a quarter. So we'll give up three to four basis points for the quarterly effect.
And really I think it goes to 50 were pretty much on it on a doubling scenario. So that's that's what we're looking at this point based on our modeling we do have some.
Avenues of looking at customer exception pricing and other areas, but that's that's kind of where our gut is or what we're seeing right now so I think it does.
I think we're in pretty good for this.
25% 25 basis point cut.
Okay, and kind of what the expectations of the rate cuts kind of baked into the market. Now are you guys kind of seeing any change on the deposit front I know things are really competitive in your markets, but.
You kind of indicated that deposit costs are stabilizing but do you see them.
Stepping down here in the near term or you know, maybe just holding where they are.
Yes, I think you'll see him step down Peter I think what we have is just yet.
That this rate forecast had such a pivot.
We're kind of in a in an area, where we're moving we're all kind of move in these deposit rates up and moving moving forward. Then you get this pivot so everybody kind of stop I do think if you get you get a 25 to 25 cut stabilization, you're probably not going to get a lot of really take it you probably get a little bit deeper cut or at the fed continues to look to edge down. Another 25 bips over the next few meetings I do think we can get some relief not a lot of them wholesale but I also think we can that's one of the reasons, we've really shortened a lot of our wholesale is to be ready to take advantage of that but also we will get some end market released as well. So it was rod said I think it's up.
There are a couple of variables there, but I do think if the fed cuts we will get some end market released on some of that pricing as well.
Got it thanks for the color.
Thanks Peter.
The next question will come from Joe Fenech of Hockey group.
Good morning, guys.
Hey, Joe.
Hey, Billy and Miller, just maybe more of a big picture question for you addressed this a little bit earlier, but over a longer term perspective next several years not months would you say that smart bank is now more of an organic optimization play we're still over a longer term period still more of an M&A story and get through whatever you would consider to be critical mass or just really still a combination of the two just trying to understand if you broke the next few years look like the last two years or at an inflection point with a story now maybe between gets a bit.
Yes, Joe let me start and I'll, let Miller chime in.
Yes, I still think were a combination of the two in my comments. We are shifting we understand I mean, we've been building. This over the last two to three years in particular, you know in a lot of it was getting to scale to take advantage of our infrastructure and so but we understand now the shifting of a more earnings focus.
Growth company. So its an earnings focus growth companies way I would look at it going forward versus a growth company building infrastructure.
For us I still think its both obviously, we understand the importance of Rone SS reason, we're we're really laser focused on getting these efficiencies in place pushing efficiency ratio down and getting there. We still think we've also gotten fairly good at the integration of these acquisitions and so if those opportunities present themselves, we want to take advantage of them.
But were definitely building a stronger organic model, while still looking at that number any add I'll just add to that echo that Joe and both your questions are yes, and yes.
And we think there's a lot of consolidation that will continue in this industry and we think we're in an area of the country, where we can take advantage of that.
But we also think that the markets. We're in we've now got a platform of the size where managed organic engine can can begin to grow at a faster pace than it has in the past so yes and yes.
Okay Thats helpful guys, and then for the optimization aspect of the story, Billy and maybe Ron also if you pick out two or three main objectives that you want to be sure to focus on an improved going forward. What would you say those are in other targets that we can share that are attached to those objectives.
Good question, Joe really I think overall and I think we alluded to it and Ron dead on I think may be stewards question regarding expense run rate I think a lot of what are the key objectives is is it if where we are now is really keep in that non interest expense line as stable as we can and then just growing that top line I think that's the thing I think with the deals that we've done over the last.
You years, we've been able to we've had we've had to grow that expense line. While our goal now is to try to hold that expense line as steady as we can while growing the revenue I think thats, one issue and as Ron mentioned, we got some initiatives.
In that we've got and we're in the middle of a core data processing renegotiation right now that we've we've said publicly we got a contract it's up to the first quarter of next year.
We think there is some really nice opportunities there centralization of people in some of their facilities to really try to allow us to to lever growth without having to add headcount. Those are things that are probably the the top things on the list Ron any any any thoughts or comments.
On that as well no you hit the highlights Theres a lot of smaller initiatives that we're not going have any home runs here, but we'll have a lot of singles I think we can accomplish the overall after seeing taking over the finance Department just.
Kind of taking a step back and restructuring the workflow efficiencies the vendors, that's kind of where we're kind of hitting a lot of areas. So it's a it's kind of a loaded it's a loaded question and a lot of answers but.
Everything will everything is.
His victim for us to look out into to try to lower and get more efficient at all our expense line items.
Okay. Thanks, guys and then it doesn't seem as though for switching gears here, even though it's a southeast steel that's your wall intersect as much with the B and C and Suntrust, maybe some others, but other pockets of M&A dislocation that you're looking at maybe some other smaller deals that are going on right now or some markets, where you see dislocation where you think you can maybe scooping capitalize whether it's a market you're in already or market that you've been higher.
Yes, we are seeing we are we are seeing an opportunity here not as much from the the combination front as you had mentioned kind of a BBSI Sun, we do have some markets, where we see some overlap there that there's probably some opportunity there.
Most of ours is just continue as we build the size scale and and credit infrastructure that we have our ability to attract bankers from larger regional banks I think is probably our key story anarchy play its I don't necessarily think were NIS, they're targeting any specific groups that have been impacted by an M&A some of that definitely could be the case, but but I think ours is more just general recruitment of a really good bankers that are in these these larger banks that are want to come to a bank that they can they can have a little more flexibility and banking their client vision. One of those two banks are really very prominent most of our markets yes.
Okay, and then last one for me guys, obviously, you've got the wide geographic map, which operate in is M&A still going to be more opportunistic or do you have a stack ranking of geographic areas in the sense that if all else equal in terms of the M&A targets like you like to banks equally there are markets that you would prioritize over others and then also or any new markets that you would that you would think about.
Yes, probably not a lot of what I would say expansion markets outside of our footprint, you're right Joe Air footprint is fairly vast and so.
For US again, just what weve emphasized in kind of the east Middle Tennessee down I 65 growing that that Huntsville.
Alabama core door down Asixty five Birmingham there. So there are opportunities there is more fill in now with the kind of the states that we've got between the pan handle over to over to fair Hope and then not by 65 in Nashville over to Knoxville.
For us it really is more about filling in that density.
Yeah, not a lot of the other thought there could be some new market expansion, a little bit, but it would probably be close to the geographies, where we are I.
Northern Georgia for example to tie in with our Chattanooga market.
Something like that might might play well, but but most of it's going to be fill in and in very close expansion to where we already are.
Great. Thanks for the color guys appreciate it.
Thanks, Joe.
The next question will come from Tyler Stafford of Stephens.
Hey, good morning, guys.
Good morning.
Hey, most of my questions have already been addressed but just a couple of follow up I just want make sure I understood.
I heard correctly the growth expectations for the back half.
The point to 0.6 30 to 12 31 mid single digit growth expectation is that what you said.
Yes, and just to annualize we think we still think we can we're going to track.
In that in that as I said, 6% to 8% pace, that's really kind of where we've targeted for year, that's really where we are year to date.
For the calendar year, I think we are going to see that saying that same probably same trajectory second half.
And then what do you think that trajectory continues into 20 as well that same range.
Yes, I do when you look at that.
And I've alluded to this and some of our other calls here. We continue to really focus on on growing talent also reshuffling. Some talent I think the thing that that we've seen that air company is been very comfortable doing is is making replacement, replacing folks when we need to that's both operational and revenue side.
And the talent that we've added over the last several quarters has a lot more breadth and depth on the sales side. So yes, I like from an organic standpoint still feel good about 2020 kind of show in that same range.
Okay.
And then obviously you addressed M&A and a couple earlier questions.
And so I hear you loud and clear there, but just what that framework.
Can you talk about your appetite for your buyback at this point and context of M&A opportunities will likely come up at some point.
We do have that approved buyback Tyler and.
Again, it's just a math question that we looked at on a regular basis if it becomes.
A better use of capital will certainly pulled the trigger on that.
Okay. That's it from me thanks, guys.
Great Thanks to our.
The next question will come from Christopher Marinac of Janney.
Hey, good morning, I, just wanted to kind of ask a big picture question as it relates to credit quality I mean, any changes that you've seen underneath the surface that we would not see in these.
Numbers and ratios for.
630, and I'm also curious if the behavior of your customers in terms of their just overall willingness to continue to grow next year has changed at all in the last 60 90 days.
Yes, the perf first answer Chris nothing underlying air credit, we dig pretty deep as we go through annual reviews, and and take a look at renewals and things along those lines there's really.
The the client base that we've got really nothing that we're seeing kind of under the covers are outside of what we're seeing what we're reporting here still feel very good about overall credit.
In the bank and as far as kind of borrower sentiment borrower expectations that really I think overall when you look at our air geographies.
Economies are continue to be.
Growing very stable.
We're in some some great growth markets most of the folks that were talking to still pretty bullish as they look into 2020. So.
And I think that gives that's what kind of gives me the confidence on the previous question about kind of their growth expectations for next year.
We're in good markets, we still think there is quality credit out there actually the only real caveat is let's get out yet.
Is kind of what's going on with rates and competitive competitiveness around rates in competitiveness on on terms in credit structure as I had alluded to we're seeing that see it a little bit of stretch were letting some deals walk.
Just so so thats kind of the caviar, that's out there, but but outside of that we feel good about about growth expectations, our clients do as well and and feel like we're in a good spot to move forward looking into next year.
Perfect. Thank you for the background I appreciate it and then just a follow up on I know you talked about deposit costs earlier in the call.
Does it change in the wholesale market impact to kind of how CD pricing may ask for you. The next couple of quarters or even the timing of CD renewals. If you could elaborate on both.
Yes, I think so I mean, obviously the reset.
Enron alluded, we just we reset some things related to.
This this projected drop in rates. So we saw a wholesale funding costs really drop over the last 30, 45 days and and so we took advantage of that hit the reset trying to get everything shored anticipating that could edge down a little bit further I think that does it flows the wholesale metrics do flow into hair AIRB methodology around how we price.
Our market pricing.
And so I do think you'll see that kind of play in and and allow us to kind of lever down some of their end market pricing moving forward or not I would anticipate we'll see that from a competitive side as well I don't know that but feel like we'll be able to kind of lever that down been able to lever that down going forward.
Great. Thanks again for the background this morning.
Okay. Thank you where it is.
The next question will come from Kevin Fitzsimmons of D.A. Davidson.
Hey, good morning, guys.
Hi, Good morning, Kevin just most most questions have been asked and answered, but just one bigger picture question on the spending on infrastructure and the platform that you guys have done.
Preparation for being a larger company can you just alluded to some of the intangible benefits that might come from that like for instance, when I think of as potentially if you agree is.
Does that make it easier.
Dealing with the regulators on future acquisitions that.
All of this that you've gone through over the past few months in terms of the initiatives. Thanks.
And Kevin I'll take that Ron Miller can chime in.
Yes, obviously as you know when you hit the size that we are now I think we've had a great relationship with our regulatory agencies and they've given us great ability to expand and grow but but we also know that we're at we're at kind of this this juncture to where now we have to.
They won't let us catch up they we kind of got to go ahead and be ready for that next phase of growth and that has been part of the spend and that in itself just kind of dovetails into I think we can continue to grow now and not grow the non interest expense line at the same pace the efficiencies decentralization be the upgrade of talent I think thats really the transition that we've seen air company goes through we really in anticipation of growing to be.
In this $3 billion to $5 billion sector, which is where we would like to grow moving forward. Because we can think thats, where we get the best efficiencies and generate the best returns.
We got a tenant we had to staff up to kind of go here to be ready for that to win those opportunities do come the regulators allow us to make those moves and then it also allows us to better leverage get better cost saves and deals moving forward. So I think that that's really the the two to me. The two key pieces of the investments that we've made over the last little bit.
In every area by yes, I believe our fixed after digging deep the last month or two.
Into the numbers our fixed costs are already there.
I think any any anecdotal expenses will be variable. So I think most of our infrastructure is built to go forward and with our initiatives I think you know.
We're in a good position to go forward from today.
Okay great.
And one quick follow on I saw the release about.
The LPL being opened in Tallahassee and apologies if you already discussed this but just if you could.
Characterize that is this more of a kind of rifle shot very soon.
Specific situation or do you have.
Is it part of a broader push where you have other markets on the map that you planned it.
Yeah, We've I think we've talked we didnt have no goodwill were not we didn't talk last call. We did open a loan production office in Tallahassee, we were already doing I think we've alluded to that in previous calls and meetings.
We don't we do a fair amount of business in Tallahassee out of our Panama City office, we have a we have some team members that have got some great relationships over there and so opening up this lpos I think was more of a let's let's get lets get it let's get a spot over there to where we can we can lever. Some additional growth. We added another lender in that market air anticipation would be if we continue to grow with that that might be a de novo branch opportunity for us in that zone, we like that area kind of fits it fits with what we've done to kind of a state capital flood State College, a strong strong educational market.
So we like it were already we were already doing some business over there. So the lpos was really just to kind of put a stake in the ground allow us to add another team number that really covers that market for specifically.
And then see what opportunities present themselves as we look to grow but thats really about as far that's really about as far east as we would anticipate moving in the in the Panhandle.
Okay. That's great very helpful. Thanks, guys.
Thank you.
Once again, if you have a question. Please press Star then one the next question will come from Daniel Cardenas of Raymond James.
Good morning, guys.
Good morning.
So I appreciate all the color around your.
Your thoughts about holding being able to hold your expense levels keep him well controlled on a go forward basis and grow revenues, but.
Can you provide a little bit of color as to how you think thats going to translate into an ROI target and.
At least an initial ROI target for you guys and then what's kind of the timeframe to get to that target.
Yes, and I'll start Ron and then you can jump in I think for US we've been bump in right at that kind of that core one number in and our goal for this year was to tick over and I still think we're probably on the on the right trajectory to tick over that from a core standpoint here as we approach the end of the year.
Going forward Air goal is to move through that to move to a toward that 115 number and I really think for US. It's just continued growth on that on the on the revenue side, yes.
As we've alluded to hold expenses down from an old just in a pure organic strategy.
We continue to hold those revenues target steady and grow grow topline provided we can continue to grow our loans as we anticipate and as we've talked about yes, I think we could we could move kind of step that up kind of on a five basis point a year.
Cliff Ron I think Thats really what weve talked about looking at one to 105 to the 110.
Over the next over the next 18 to 24 months and.
Yes, I know you've been kind of digging into these projections any additional color you want to give him an agreement with Billy Weve were focusing if we can focus harder on our initiatives on the expense control and continue our trending of noninterest income that will get us to our to our goal, but it's just.
Constant turning in this area just trying to make it.
Keep growing on this stuff so now the ability or your debt on what.
Now kind of where we're at with this.
All right Great and then just more on the administrative side, how should I be thinking about.
Your tax rate here in the back half of the year that kind of stable to what we saw in twoq.
Yes, I think were 20 420, 410, 20 420 somewhere in that range.
Okay.
We we've had a lot of our tax rates been kind of up and down because of the merger non merger deductible nondeductible.
But I think Thats I think thats a pretty much around.
To be safe 24, and a half what I think we're probably around 20 420 lets just say ish in that range.
All right.
Good.
And.
Just last question for me just in terms of competitive pressures on the deposit side have you seen any signs of abatement here and.
And the most recent quarter and coming into Threeq, you or is it still kind of.
Balls to the walls and.
Everybody is.
Hot and heavy in terms of competition.
It's still pretty hot and heavy in terms of competition.
So we see it we see quoted when we get some opportunities presented to us, but at its still pretty hot heavy but at least I think the right.
Increasing pressure has subsided.
All right go after right now I'll step back thank you guys.
Thanks, Thanks, Dan.
And this concludes our question and answer session I would like to turn the conference back over to Miller Wellborn for any closing remarks.
Thanks, Gary and thanks again for your time today your questions today and your investment in our bank. We really appreciate your interest in us and I Hope you have great day talk to you soon.
Thank you Sir the conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines have a great day.