FB Financial Corporation

Q4 2021 Earnings Conference Call


spk_0: good morning everyone and welcome to fb the financial corporations fourth quarter twenty twenty one or news conference call posting a call today from fb financial is chris homes president and chief executive officer he is joined by michael mckee chief financial officer wade perry chief administrative officer and with evans president of as be ventures loss of the available during the question and answer session please note at financials earnings release supplemental financial information and this morning presentation are available on the investor relations page of the company's website at www dot first bank online dot com and on the securities and exchange commission website w www device
spk_1: se si dot gov
spk_0: please call is being recorded and will be available for replay on fb financials website approximately one hour after the conclusion of today's call at this time all participants have been placed analysts and only most call will be open for questions after the presentation with that i would like to turn the comments how over to robert helen pretty director of corporate finance please go ahead
spk_2: during the presentation every financial may make comments which constitute forward looking statements under the federal securities laws are forward looking statements are subject to rich and uncertainties get other facts that may cause actual results and performance or achievements of every financial condition different materially from any results expressed or implied that such for looking for many such factors are beyond happy financial ability to control or project and listeners are cautioned not put undue reliance on such forward looking statements a more detailed description of these and other is is contained in happy financials periodic and current reports filed with the fcc including at financials most recent one to case except as required by law on fb financial disclaims any obligation to update or revise any forward looking statements contained in this presentation what are the result of new information future events or otherwise in addition these remarks may include are non yeah financial measures as defined by se si regulation g a presentation of the most directly comparable got financial measures and record affiliate of and on got measures to comparable got measures is available and have the financials earnings release supplemental financial information and this morning's presentation which are available on investor relations page of the company's website at www dot first bank online dot com and on the as he sees website at www dot as he sees that go are now i could turn the presentation ever to chris homes or president for you robert in the morning thank you all for joining us this morning or have always procedure interested in the financial we have excellent for that we delivered strong organic growth supported a fear of a dollar and to said any growth interchangeable value per share a cheeseburger value per share as it gets he and was twenty four hours and sixty seven says that represents a compound annual growth rate of fifteen and a half percent says because they became public in september of twenty six things while i returned a slightly less than we come to expect from ourselves our return on average assets i have one point six percent reported that one point four percent of justice return channel common equity of sixteen point eight percent for boys and fourteen points have said adjusted or sound are given the extended overload right environment first for the order our strong and relatively straightforward are derived for call or mention that original browser stop or or or would show activity that could get us to double digit logo for the year as usual they were right and we have three hundred and fifteen million of never flown grove excluding ppp or seventeen percent annualized for the quarter of this puts us at nearly eleven percent of for the whole year we also have very strong sparing deposit rosewood would swing set a new allows for four hundred and forty three percent a the year are non interest pounds are our net interest margin for stable for the fourth quarter and three point one nine percent in a zero rate environment expenses were stable and as expected or at the quality continue to be very strong with a a that assets holding flat with the third quarter as fifty basis points and class fuck opening class bad loans as a percentage of total i was dropping fourteen basis dropping baffled by sports to one point six six percent charge off prettier were very manageable eight basis points and we have a provision release of ten point eight million in the quarter or which way that allows for credit losses at a very healthy one point six five percent loans age of five year him we did have a significant getting on a commercial loans held for sale during the quarter or primary related to to take relationships that exited the bag one of those has been written down materially prior to the right franklin murder i would pay it off and have more congested we'd been consistently describe and this portfolio of from the date of announced with january twenty twenty until today we more conservatively at them as the merger day we have very capable people managing is a we have continued to manage to maximize return to leave as we worked it out of the by we had eleven point two million net getting though the portfolio and twenty twenty one and we have seventy nine million dollars in loans left all those same back thursday view of positive results so far still whole and we look forward to maximize the value of remaining portfolio and twenty twenty two as for the core portfolio of the legacy for i'm from financial it it's performance has been stellar as we enter twenty twenty two and we think about our out of our long term for getting target for loans has been top ten to twelve percent annually with current environment and momentum that were carrying into the year we believe that will be or the up rid of that range from twenty twenty two were targeting similar rose in knowledge very deposits aren't editors margin should remain stable intel rates rise and were positioned for rising rates in weeks back margin expansion draft year as rates move upwards expenses will increase as you would expect with healthy revenue growth we expect an expense growth in mid the has been digits in twenty twenty two moving the mortgage as expected the fourth quarter was a challenging environment refinance boy and came down significantly were expecting volume of these conditions to persist in the first quarter and don't blame or movies come contribution first order will have much different than fourth in short we believe that twenty twenty two will prevent whopper present strong opportunities for organic growth what other area of opportunity became public last week into them we were waterfowl failing by members of the us df consortium which will focus on doing foundational work to allow bank to leverage the brakes are blocked a technology for responsible innovation rose we feel to use cases of us the out are nearly limitless and in every case it provides efficiency and enhanced experience both for us at our customers achieve mystery a boss or wait carries on the call before wade has led our digital strategy and or innovations area plus she's a a board member of the us the consortium we've also continue to evaluate acquisition opportunities nearly eighteen months after a combination with franklin we have had very powerful than our ability to identify a negotiator next year old murders in a manner that delivers value for customers associates and shareholders and five the murder we combined with the dominant community bank is attractive mortgage and added new associates that play vital roles in managing the resulting company and significantly raise the overall talent level of the resulting institution the wish list of partners the that we've identified and would have similar mass in markets that we won't be activated both input breath and contagious to our footprint and all those banks are known in their local markets as the cream of the community by incur cross for five we don't need to pursue acquisitions for the sake of growth we're very excited about are organic growth saws probabilities if a bank has made our lives there were too focused organic opportunity to father's right now to distract our team with the care and effort that we put into the integration process so the i would turn it over to michael to discuss our financial results in a little more detail turkey grandson good morning everyone picking first mortgage and illustrated on flab six mortgage pay for usual seasonality of the fourth quarter and a different a difficult operating environment due to excess capacity in the system and lower refinance volumes ultimately resulting a downward pressure on margins the mortgage thing for a seven hundred thousand dollar contribution for the fourth quarter and with the recent rob and rates continue to cloud and refinance volume that continue seasonality mood and to face similar results and the first quarter before moving on from mortgage our to address or again on sale more and march market value chart and the bottom right of slab six we have pointed to the march market valuation is a leading indicator gain also margin is border where the timing difference related to settlement of hedges vs loan cells so much more devaluation was slightly lower in our day not so margin a little higher than otherwise would have been which by the embers be more in the to twenty to thirty range next quarter that mark to market closer to to two point two percent and again of tell margin closer to two point three percent maybe on to the net interest margin for the fourth consecutive quarter with all the than remain essentially flat at three point one nine percent deposit cause to back further for back and forth and the quarter which served a mostly offset the six nations point on the we experience and our contractual yelled on loans yields on the new loan originations have held steady and the three point eight percent range compared to the existing portfolio four point one seven percent and we continue to make incremental progress on lowering our caught to deposits which offset some of the decline of after yells we expect our margin to remain in the same relative ban until rates increase which seems imminent and our balance sheet is well positioned for that increase when that happens or later interest rates auctioneer years or ten percent outside our net and same time and a plus one hundred scenario we have three billion a variable rate loans that either don't have floors are not currently receiving support from the floor does will reprise with any increase in right with the majority of those reprising within three months of a native we didn't have an additional five hundred million lives within twenty five basis points of their floors we also still have one point six billion in interest during cash that will reprise with an increase in right
spk_0: our interest would think problem for increase materially and arousing right environment
spk_2: when i think the industry is unsure of at this point is how quickly deposit costs will follow the increase in asset yells you can fluent of liquidity in the system and new nonbank competitors and were nearly as prevalent during the last round great increases make it difficult made it to predict speaking to deposit growth in the corner we want to get insured solid granite a non interest bearing deposits excluding mortgage escrow related deposits are managers bearings grew by thirty one point eight percent a new lives in the fourth quarter harbor interest bearing deposits grew the more thirty three point seven percent it's grace was driven by the proxy
spk_0: i not undermine increase in public funds as as accounts began a seasonally funded
spk_2: you would expect as balance to remain elevated are able or made before beginning to decline moving to the allow us to point a million or release was a bit larger than we expected economic forecasts that we use and are super model stayed relatively flat from third or fourth quarter and had minimal impact on the change in our levels of reserved this quarter the primary driver the change of quarter was the release of a portion of are coded related qualitative reserves we determined that relates was appropriate as economic activity had remained average across our markets to the beginning of water however with the sheer chase counts of a crime we maintain some of our favorite related reserves we will continue to monitor the qualitative factors and we may have further illegals over the coming quarters in athens of any renewed shutdowns or changes in consumer behavior that impacts our customers outlook with our wow apparently at one point six five percent reserve releases and twenty twenty two are likely to be smaller than they were and twenty twenty one speaking too expensive for banking second expenses the fifty point eight seven million were down slightly from my four fifty eight point eight million excluded from our courts lives to this quarter one point four million of charitable donations that are not run red expenses going forward
spk_0: in addition to normal growth we would expect the first quarter to be elevated compared to the fourth quarter
spk_2: do the fica and four o one k contributions for twenty twenty two weeks back expense grow to be hard as we invest in innovations in technology and the gym aggressively recruit relationship managers both of which we feel silly to topple on growth excluding games related are non core commercial loans help herself or family of nine point nine million or baking segment non interest income was eleven point nine million quarter to quarter we've been in the twelve to two and a half million range and we would expect that to continue with some rise until the second half of year at which point the durbin amendments impact on our interchange revenue will begin we anticipate losing two to two point two five million for quarter is a result judging last on capital management we were able to redeploy the games on the commercial loans help herself or follow and our share repurchase plan is we retired seven point two million of our stock in the quarter we have a little ever ninety two million remaining on our current authorization and will continue to repurchase years when the financial impact of such transactions my
spk_3: except
spk_2: well now turning back over to craft to close michael foot collar i would leave with our results for the corner to quit proud of the team for the long road experience of room
spk_4: conclusion
spk_5: remarks
spk_2: everybody for your interest in operators this point we like to open up a lamp flashed of
spk_0: ladies and gentlemen is this time will begin the question and answer session task and questioning the press star and than one on your him sense if you are using a speakerphone you as you pleased to up your handset before pressing the keys to ensure them as sound quality who draw your questions you may press start in two once again that a star and in one to ask a question it is time we will cause momentarily to assemble the rosters and authors questions and today on some bread robinson some hobby good please don't know with your question
spk_6: hey guys good morning
spk_7: or brothel imre
spk_8: congrats on the from home runs why just i guess first on on that he mentioned that you think that will be on the higher side of the to ten to twelve percent that she usually aren't you're getting games to and just going to see you know what what segments you think that have come from and then maybe just making the pipeline and this and i are that you looking to make
spk_6: maybe just talk about geography is and ten
spk_8: no
spk_2: generally speaking with the with the pipeline
spk_9: those from this year
spk_2: sure okay breath things first although all the loans a week which we can choose mates polish and positive on long grows and and that's because of because the it it's not a the any single product we see it across particular in this particular were are at a construction in development hesitant had the largest growth other in different things depending on which or you look at his cabin spread across the be a strong see and i growth as well which a strong residential rose until all of those are are in a growth movie had the the lack of order to family fled the way and it is exposed spread across five times but it's also spread across geography and to because that we continue to to feel pretty good about about heading into next year it's hard to predict for the whole year but he and we've we've consistently been able to deliver ten to twelve percent and obviously this quarter well as as was significantly above that and in a year that was a when we went into the year the outlets tomorrow was very questionable and we ended up with a lump set for the you're right in the middle that range that we've we feel we're looking at does a higher in that range for next year what our expectation is that on the hires you know we have would generate law capital would have like apple were how always trying to to think of the best way to deploy that and you know acquisitions tend to grab most of the headlines but frankly have been able to recruit
spk_10: folks both in our existing geography is as well as in in
spk_2: well pretty much in our existing geography and in there's a chance we could do something avant de novo basis with not out there searching for that but sometimes it comes to us and so does would lead to the areas where we we were where we wouldn't be active with that strategy and there's not one particular geography where where get we'd get a full of out of geography or i
spk_8: or or any particular competitors
spk_0: it's just it's more a man matter of be an aggressive everyday haven't people talk about it every day and and thing in taking that to the afternoons when they present themselves
spk_6: that's that's very helpful for it and the maybe more question for michael on the margin and you mention the ten percent of sides and i'm for hundred basis points you know if we get three right isis year i will people talking about form and if the and finally gets really likes his years starting in march
spk_2: would seem like you're margin can be a tornado on five basis points on a lot of a month ago and a down to cash in and liquidity and everything else i'm curious distance from a margin perspective
spk_11: is emily dickinson the rate hikes this year you're hating to margin my progress
spk_8: yeah brad as your more not have a good thing about their i've met twenty twenty five basis for range he did you mention that a key points right excess liquidity and still weighing on us about twenty two bases voice or on margins us we some of that exit for redeploy
spk_7: in the in the some things either low rider securities you could say that death benefit there's well bad things in general that's like that is why rises
spk_2: freelance i'm and one last clarification as want to make sure i understood the mortgage guides for the year sounds like you're expecting the relative efficiency ratio and and the contribution germain similar to forty you levels further basically for the full year of twenty two that affair
spk_12: for what to think i'm that now they were out for to first quarter
spk_2: it will a lot like the fourth quarter that not the before year which look at the wait and see approach on the a four year at the boy would try to get quarter to quarter and get some that some decent guy that what we're looking after the first quarter
spk_13: okay
spk_2: thanks for that and and
spk_14: just as it's more michael
spk_15: as is
spk_0: a lot about the mortgage business in addition to in the see it though he got his background in a more than a suite of start us any those terms of wanna do and we we've we've set pattern of the really not much more than a quarter if we didn't think about the year the season now the patterns we do think should hold for the year where the into the second floor
spk_16: or in the third quarter tend to be the borders where we certainly have the most contribution and the first and fourth and of a more couldn't be that bordered where we don't have as much contribution
spk_17: okay great britain on seller
spk_16: thanks breath
spk_2: barnett's washington's i'm jennifer denver some to the security please your head with your question think he is annoying monitor i'm just curious about your expense growth guidance mid to high single digit for twenty two what's currently in his is baked into that assumption yeah said so when we have made it when we looked out and we've done budget for the year projected for the year and and we've with faith in hiring than a lot of frankly and in quite a few places it mostly a lot of revenue producer but not all revenue some of them are are are significant airing in the operational side of our business and that technology savvy business and in an editor innovations shoot it and so there are there are some some significant hires there on revenue producers within the by that they got later categories my voting is rather than producers within the bag
spk_18: alex a few era our wow color operation support area and is so later innovations use it leads me
spk_16: would mention is that us the of consortium and something for do their little asian side and so that they can be some tell their and then the other thing that that baked in there is a we are seeing our cost increase our our our employee cost increase were headquartered in there for valves of our folks are the biggest concentration of our folks are in national and were see it was a cost increases fair and natalie they are but all across the board and so
spk_19: while the keys to us continue to grow revenue will continue to be a great place to work and continue to have in in a lecture associates are taken care of and so we intend to do that both defensively and often simply and so that's an important part of our twenty two strategy
spk_2: thank you just follow up question on and quality looks like quantities gonna be another great year in ass and quality for human industry how long do you think this have to go given the fact that he should be producing please double digit language oh
spk_20: a good question jennifer and dumb
spk_2: and i'm knocking on wood as we say that this looks like it's gonna be another great year for as equality for the record seems like every time the wheaton think spend something negative happened to the industry and so on but and after knocking over a day we feel actually quite good and have been able to do some pruning on the portfolio was a says we look at the equality we feel actually quite good and what we think about aware that settles let's site just a normal as allow for credit last settles out keep in mind that you know our combination with with franklin the first bike franklin combination took place the a genuine we announced in january twenty two we closed the august i'm sorry january twenty we closed in august twenty and so see them for also right of them out around the middle of the cecil adoption we think probably have one thirty one fifty range is is probably where we'll settle out as our college normal as
spk_0: as that is is really care what we think
spk_21: and so my a keep keep keep in mind all those factors change all those those factors that we used to set that you know were evaluated by a committee of you know are audited and and we we are
spk_22: in those factors change every foreigner but that's that where the rain so we think we could probably sell out the one thirty one fifty years
spk_2: thinking
spk_23: our next question comes from matt only from stevens please you know if your questions
spk_2: c'mon guys want to go back and after a alone floors and and in michael you gave us in great detail their i wrote down three billion dollars and variable rate loans with house for dinner party immediately another five hundred million that we price another twenty five bit higher move what about even beyond twenty five cents or that pretty much it that often million dollars and then on verbal right side or these primer on lot more so for in incarnate
spk_8: yes
spk_2: of how to save thousands of certificate portion of the move comes from the first couple of right thoughts for us in it's a combination of of prom and so incredible that mostly most of private lab or but mostly he says
spk_21: glad my for you know that's right around the world war and many athletes transitioning
spk_24: much love or to problems with one other we are doing some safer but the amount of his privilege and as it's minimal beyond
spk_2: beyond the twenty five days to florida but fifty two hundred million a be on there her parade i okay cannon and the now on the move which front you gave some great commentary from for near tom they're fully appreciate tetanus had to predict at home by gets taken a step back and to print appreciate where the profitability of mortgage could be longbottom whatever metric you think is the best way to look at that would where do you think that will eventually land
spk_13: yeah so so we said
spk_2: if you look at our at the bottom flat of the company we think it should be somewhere
spk_25: cause the barber said but probably less than ten percent of the total company
spk_2: bottom line and so i'm still kind of when we still think that i will say that business as you said that thank you for signing
spk_5: thank you say that it's hard it's the tories the to predict and project we certainly do it and we rejected first week
spk_2: but for him it's hard to project and so we don't get too far out since other than that will that what we said we we do expect certainly earth a meaningful contribution during the year but if you look at it in be a prediction the volumes i think they're down what for survival thirty babish thirty five percent year over year and so we're in addition to normal running the business where where try to we're we're making sure that the to match mercer
spk_0: for rich nations are election as margin trans trying to have max mother customer
spk_26: customer experience
spk_2: for think about how we continue to evolve that business with things like in a block chain technology and other technologies and so we're we're we're also think less of investment in that business if we as we continue to move forward so so we want to continue to have a meaningful contribution but also we're we're we're cause trying to think on in an entrepreneur away but that thank you or next question comes from alex wow from jp morgan for yeah with your question hi good morning can you to our each morning pc moral in the u s t s involvement in were some potential use cases for the blockchain technology in the near term tibia not apply tier businesses whether it's the core banking or the mortgage was thinking yeah alex and emma went very well as much as you don't know people there were you at the have some will at him talk for just over a little that couple things but are also exists
spk_27: about the the consortium war we're very excited to be a founding member and and do think it is it has the industry continue to evolve that can be very important moving forward and and of way
spk_2: i'll let you talk about a baby in late may be given example of a use case or to that and and even some that could be specific gosh so you're a good morning alex so we think about the block chain technology will we what we know recognize recognizes it it's revolutionary and it will have the potential change almost every aspect of financial services industry we see them watching closely with going on and decentralized finance ecosystem that's proving out to be true and and issue that that nine bank he goes is growing so we will to come together with technology and regulators and and find a way to utilize that inside the baggage places of so that was enchanted consortium is do foundational work there in part of there has to be the creation of a stable cool and which is what we're we're working toward here with us the out and that is actually the only serve to once you are able to allow banks to be an honorary or to used block chain technology than you basically have hairless have a set of opportunities it can be quite expensive
spk_28: chose pacific lee for me we're looking at things that we have the knowledge years we've is we get started in the space particularly around mortgage we know that the manufacturer in delivering failed mortgages can be done at a significantly less less costly in a significantly less coffee manner using watching
spk_29: technology because ruth replaces trust is that
spk_2: that resonates with you so that was bases and of course we do we do a lot of are obviously are manufactured housing business is quite large do so or think about those two areas today and is is and what what can happen on the payments and of settlement fraud as a potential are really help us with with some things were facing particular ran revenue off in durban those things and him as you look at the payment systems to date and we actually run our economy and their forty plus years old any and we we will be able to cut substantial out of those systems and get twenty four seven three sixty five mill towns that have my life changed so particularly those two areas are are starting places for the we have a quite a long resisted of opportunities and think helpless although the revenue and he said said good thanks like south thank you for that in a separate questions are just digging into the very strong loan growth are you seeing any borrowers on tap into the kind the excess liquidity on their balance sheets a t down loan at all or is the preferred still to hold on to actual cash in just key to speak on the recently a down activities any yeah we we've we haven't seen i'm saying move towards tapping flooded the on balance sheet to pay down loans or that's not something that with that has been a nobleman for us
spk_29: we we do we do still say customers at that point with their liquidity and then we see we we continue to see room
spk_0: in our a in our utilization of lines
spk_30: where it has not returned to normal levels for us if we go back to
spk_2: nineteen
spk_30: you know i have point was was a worker was well on the low fifty percent said in terms of our utilization and and we'd be in the low forty percent today and so with we we think girls
spk_2: part of our again continued pushed his own or mothers this we're seeing great originations and we still see room for additional draws on on some of our commitments and so so let's say said that color helps alex yup that's very helpful thank you for taking my questions
spk_19: sure
spk_2: in once again ladies and gentlemen if you'd like to ask a question please press star in one to enjoy your questions you may first star to our next question comes from catherine mueller from tv w could you hold your question thanks good morning
spk_19: the more camera
spk_31: if we have fall of on the margin discussion that it's contractual money orders now for seven team where it will easily pneumonia else coming on as it i think about where that bottom before we start to get the less and highlights
spk_2: a cavernous michael moore and get wait for the upcoming wars we've consistently seen it in a three point eight percent range and and that's been pretty steady for the back after year and and was an early on this year
spk_19: and when you say more of years you current one production is in the variable rate or fixed rate categorise
spk_2: yeah it's still pretty flat honestly our our customers will fixed right and all of our our yeah we prefer the variables the there's a balancing act year so it's kind of have been flows that
spk_32: you know
spk_5: ever the everytime that it's been pretty consistent that fifty fifty split maybe slightly more on the a fixed price your life with mister executive to go back down historical norm
spk_0: and then
spk_33: alcohol modeling you imagine that there's ten percent upside with one hundred basis points rate new do you wish the deposit data assumptions
spk_34: he made within that and also is that a static balance sheet are you assuming subject form and of your cash with an action for assumption jim thanks
spk_2: ask that question is static balance sheet san deposit matters if it as we mentioned with kind of difficult to are truly look at all that and it's got a new economy the way it was just mentioning but if we got about forty three percent to thirty days before i for every every other guys for maybe it's like a third on the part of that i would think that lad a little that but the time will tell us that on let's out with a competitive pressures on rights got off and let's let customers demand
spk_34: awesome taking finish it feels like you're coming that even ten percent skills conservatives instead cash is deployed more aggressively and deposit costs flag that a share virtually sitting on a lot of excess liquidity yeah we we don't as you know generally over deployed of investment portfolio is targets the caterpillar day or to a half were served as bad as that the map where we're gonna wound up with where we really appreciate about it the seniors about one eighty this morning and
spk_2: and have some opportunities there we are conscious both public financing and how long that sticks around and deposits for the outsider status definite upside had great thank you for their don't thanks captain in our next question comes from kevin fitzsimmons from the a day that and please go ahead with your question a a good morning everyone oh yeah that's true just star i just want to follow up in your commentary on on the emanate outlook and i i recognize your viewpoint that you don't need it if you feel very confident the organic growth and i'm just curious what your what's your assessment of the environment is like out there on on one hand seems like you guys are pretty awesome selective in terms of your wish lists and you know who those names are on the other hand you when you look at the environments and and now we're moving toward high rates to think that has yeah and effect on on would be sellers that maybe them are not going to be in quite is a of a hurry to sell as they might otherwise have been are just i guess you know and and then just see what your expectations would you expect in twenty two to be announcing a deal would you be disappointed if you didn't just just trying to drill down to that thanks yeah tom jackets good questions cabin in alberta give up ultra ultra it does
spk_35: cover all that and and don't have a dummy five of them disappear you're interested in so
spk_2: as as we look out and we are comfortable with are organic growth picture together for me to the astrodome capitals when we like i've worn out a again in organic growth and a we have upset the for a we can keep a targeted list and and we've talked some about that but we also will entertain other opportunities that that come our way that that helps bring bring to this like investment bankers are the primary method bright bankers and a map be on our list of i get more and more as we think about the environment stolen and then moving forward it probably more focus on know the the left focus on his flesh let's hope for this them somebody that's not move as would would would become a reality because it with with the thing that way talked about the things that are changing in the industry could we've we've got really strong opportunities that know that being said when we have the opportunity to get really you know geography that were interested in with a meaningful share okay with geography that really bring us a strong brand and strong people are that something that were interested in if you have to harvest and one on would be have a very strong community bank was either in or near a mortgage but again there are many of those and we were always interested in lambeau these out of sheet were we were very interested not a very positive and so to those are things that says we really are think about a look at out there and it's not that others don't have a they certainly do that when you look at our strategy that were the most at were the most value is and for that so we're pretty focused on on the things that were were cooking for which leads to a relatively small list and so when which leads to a relatively small list and when it comes to the higher rates as i think actually more than the sellers
spk_33: i think what happens with higher rages leave the house stock prices start buying stocks you that you'll be your currency and so
spk_0: a in this usually leads the folks at least under the impression that they're getting more a while a relative bases they actually may not be but i think as a kid at least for lead people to the feel better
spk_2: in and so i think what what's the really rate driver is is is the higher her stock it isn't is that her stock prices if what it's driven my favourite and and a than one other thing i want to mention his
spk_34: and in a big shout out here to the
spk_36: to to vote for legacy franklin vote and legacy legacy personally folks integration on these things
spk_0: kevin is really hard and to actually put together
spk_2: get everybody you know in the same company and thinking the same way when when they didn't used to do that is is not easy get it takes a lot of care and a lot of of ah work and is it really hard and so
spk_0: we've been able to do that would sit in in i think the what you saw on what we announce the again on the help for sale portfolio what we announced and loan growth

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