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First Horizon National Corp  (NYSE:FHN)
Q3 2018 Earnings Conference Call
Oct. 16, 2018, 9:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the First Horizon National Corp's Third Quarter 2018 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

I would now like to turn the conference over to Aarti Bowman of Investor Relations. Please go ahead.

Aarti Bowman -- Investor Relations

Thank you, Cole. Please note that the earnings release, financial supplement and slide presentation we'll use in this call are posted on the Investor Relations section of our website at www.firsthorizon.com.

In this call, we will mention forward-looking and non-GAAP information. Actual results may differ from the forward-looking information for a number of reasons outlined in our earnings materials and our most recent annual and quarterly report. Our forward-looking statements reflect our views today, and we are not obligated to update them. The non-GAAP information is identified as such in our earnings materials and in the slide presentation for this call and has reconciled the GAAP information in those material.

Also please remember that this webcast on our website is the only authorized record of this call. This morning's speakers include our CEO Bryan Jordan, and our CFO, BJ Losch. Additionally, our Chief Credit Officer, Susan Springfield will be available with Bryan and BJ for questions.

I'll now turn it over to Bryan.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Thank you, Aarti. Good morning everyone and thank you for joining us. I'm pleased with our third quarter results. We're delivering strong returns and improved efficiency. We demonstrated positive operating leverage with solid earnings, continued cost saves and excellent credit trends. We showed growth in our specialty areas and in our new markets and we effectively deployed capital.

Our returns continue to be strong, adjusted ROTCE was about 18% and adjusted ROA was at 1.21%. We're on track with our merger-related cost saves and our adjusted efficiency ratio was at 64% in the third quarter of 2018 and we expect it to continue to trend down as we realize additional efficiencies. We strengthened our capital ratios with the sale of our Visa B Shares, our tangible book value per share increased from net income as well as from the gain on the sale of the Visa Shares to $8.58.

Loan and deposit growth were steady. We had good pipelines and we're expecting continued commitments to fund up over the remainder of the year. It's important to note, in our slides you'll see that we did some repositioning in the balance sheet and reduced outstanding low spread, low value, single product relationships by over $350 million in the quarter. We're seeing good momentum from our specialty areas and I'm encouraged by the trends in our new markets and in the Mid-Atlantic -- the new market in the mid-Atlantic and South Florida. We're focused on capitalizing on the organic growth opportunities in our new markets that has strong economies and attractive demographics, we see very good opportunities there. We do have a good platform to serve our customers as differentiated and we think we can continue to build our specialty areas on a broader basis.

With that, I'll turn it over to BJ and let him walk you through the quarter and then I'll have some closing comments before we open up for questions.

William C. Losch -- Executive Vice President and Chief Financial Officer

Great. Thanks Bryan. Good morning everybody. I'll start on Slide 5, with our financial results. In the third quarter, our reported EPS was at $0.83, which included our previously announced Visa sale gain. Excluding that gain and the acquisition related expenses, adjusted EPS was at $0.36. Third quarter reflected solid performance with adjusted pre-tax income driven by positive operating leverage with adjusted revenues up 1% and adjusted expenses down 1%.

On the revenue side NII declined around 5 million linked quarter, driven primarily by two factors that totaled about 7 million. Number one, lower loan accretion quarter to quarter, which was about 4 million as a change and about 3 million of impact from the Auto Loan Sale we announced in the second quarter. This was offset by a gain that we had on the sale of some trust preferred loans as well as higher fixed-income revenue. Fixed income ADR was up about 75,000 a day from second and third quarter to 544,000. The expense decline was driven by continued incremental realization of merger cost saves, we did however make some incremental marketing related investments in the quarter, which we expect will help generate momentum heading into the fourth quarter and 2019.

Turning to Slide 6. As we previously announced, in early September we sold our remaining Visa B Shares in the quarter for an after-tax gain of 161 million, which was a positive $0.49 impact to both EPS and tangible book value per share. And as you can see on the slide, this gain along with our earnings growth in the quarter meaningfully increased our tangible book value per share and our capital ratios. Linked quarter, tangible book value per share was 8% higher than in the second quarter up $0.64 to $8.58 with $0.49 from the Visa B gain and an additional net increase of $0.15 from retained earnings. TCE to TA increased 58 basis points to 7.12 and our CET1 ratio rose almost 90 basis points to about 9.9%.

Turning to net interest income and net interest margin trends on Slide 7. You see the linked quarter ins and outs with NII and NIM down mostly from lower accretion in the third quarter and the expected impact of the 2Q '18 sale of the sub prime auto portfolio. On the liability side, although total deposit costs were up from 2Q to 3Q, as deposit competition continues to be high, we did see a moderation in our deposit cost increase as expected. Our cumulative deposit beta since the start of rate hikes in 3Q '15 is at 36%. For that same time period loan betas were at 66%, far outpacing the deposit beta movement.

As we have discussed before, we are continually managing our balance sheet in totality with an intentional focus on optimizing the mix and growth of our loan and deposit portfolios over time, along with appropriately pricing our loans and deposits to deepen relationships and improve the performance of our margin. To that end, we will continue to press our advantage in our attractive specialty lending businesses, deepen our deposit customer relationships and take advantage of the floating rate nature of our loan portfolio to maintain and improve our margin over time.

Taking a look at loan growth dynamics on Slide 8, we see that our specialty banking areas continue to demonstrate strong growth with linked quarter annualized growth across those aggregate businesses of about 12%. Loans to mortgage companies were up 11% linked quarter and although industry mortgage origination volumes are down, we've been able to grow the business by increasing market share. As usual, we expect fourth quarter to be down from the seasonally strong home purchasing months of the summer and fall, but believe we have opportunity of further increased market share gains over time.

Asset based lending was up 3% linked quarter, primarily driven by existing customer expansion of line utilization. In our growth markets we're seeing ongoing success with our strategic efforts in Middle Tennessee, where we posted 2% loan growth linked quarter. As you know, we're continually focused on maximizing the economic profitability of our businesses and while the regional bank has seen some net growth over the course of the year in the range of 3% to 4% annualized from a loan perspective, it has come while we've been optimizing the balance sheet by exiting lower spread relationships as Bryan mentioned.

Over the course of this year, we've reduced our low spread loan balances by about 360 million. This has cut our regional bank loan growth by roughly half of what it could have been. This is the right thing for the balance sheet long term and has improved loan yields by 73 basis point in those portfolios alone. Over time replacing these loans will have a nice impact on our overall yields and free up balance sheet for higher return lending.

As you can see on Slide 9, credit trends remain excellent, net charge-offs were at 2 million in the third quarter, flat from the second quarter, provision was also at 2 million and the allowance to loans remained steady at 68 basis points. Turning to slide 10, I'll quickly give an update on the Capital Bank merger. Our cost savings remain on track with 16 million of cost saves achieved as expected in the third quarter and that means about 75% of the costs are now in the run rate and should be substantially in the run rate fully by the end of this year.

Revenue synergies increased again with 31 million of annualized year-to-date deals closed or in process. And as Bryan and I both mentioned, we've started to see some promising signs of growth from our newer markets in the Carolinas, what we call Mid-Atlantic and South Florida. Our retail deposits in those markets were up 5% and 3% linked quarter respectively. And as we've discussed before, now that our merger integration activities are behind us, we're confident in our ability to profitably grow both loan and deposit relationships in these markets and we expect those positive trends to continue.

Wrapping up on slide 11. We're very pleased with where we sit with our return profile and that profile that we've built for sustainable returns going forward. With a return on tangible common equity at almost 18%, our return on equity at 10.7% and a return on assets at 1.21%. With these results, we're already right at or exceeding our medium term return targets we laid out in May and continue our improvement toward our efficiency ratio goal of 60% or below, which will drive continued improvement in our returns to shareholders.

So with that, I'll turn it back over to Bryan.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Thank you BJ. In summary, I am really pleased with the third quarter results and excited about the opportunities that we have ahead of us. We are optimistic about the fourth quarter in 2019 and feel very good about our ability to continue to drive strong returns in the business. The economy continues to be stable, customer sentiment continues to be good, loan pipelines have strengthened into the fourth quarter. So we're optimistic as we look into the remainder of this year and into 2019. Word of thanks to all of our employees for all of their hard work, not only ramping up the integration late in the second quarter and into the third quarter, but also the hard work to serve our customers and appreciate that.

As a reminder, we're holding our Investor Day on November the 6th in Nashville. We'll be providing more information about not only our strategy, but our execution planned with our Executive Team in attendance. If you need details please reach out to us directly. With that Cole, we'll now open it up for any questions.

Questions and Answers:

Operator

Thank you. (Operator Instructions) And the first question comes from Steven Alexopoulos from JPMorgan. Please go ahead.

Steven Alexopoulos -- JPMorgan -- Analyst

Hey, good morning everybody.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Hi, Steve.

William C. Losch -- Executive Vice President and Chief Financial Officer

Hi, Steve.

Steven Alexopoulos -- JPMorgan -- Analyst

I want to start on the deposit side. I am looking at the increase in deposit costs, I was surprised to see the degree of increase in the commercial interests, which were up 25 bps quarter-over-quarter. Can you give some color on why we saw such a big increase there? Was it all related to the prior increase you had done in larger account balances?

William C. Losch -- Executive Vice President and Chief Financial Officer

Hey, Steve. Good morning, it's BJ. I think on the commercial deposit side, the competition has really since the beginning of the cycle been much more heated than the consumer deposit side. So there's not really a material change in what the competition looks like there. There is high competition both on the earnings credit rates as well as the business interest-bearing account. So there wasn't anything that was out of the ordinary in the quarter, it's just continued increased competition.

Steven Alexopoulos -- JPMorgan -- Analyst

And then BJ, you guys are calling out pretty good growth in Florida and the Carolinas on the deposit side. Give some perspective what types of deposits are you raising and what's the cost of those in those markets?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, so it's our normal mix. We're getting, obviously we're leaning in those market to establish ourselves a little bit more strongly coming out of the integration. And we've gone out as you might expect with the money market and CD offers that we thought were attractive, but then it's also bringing in core checking account relationships as well. And I would tell you that the deposit betas that we saw in the Mid-Atlantic and Carolinas in terms of those retail deposits are actually in line with what we saw across the rest of the footprint and then in Tennessee.

So in aggregate, our portfolio mix isn't materially different than what we're seeing elsewhere, nor are our betas which is highly encouraging to us. So we expect to be able to continue to drive positive momentum and deposit growth in those markets. We're putting some of that marketing related investments that I mentioned earlier, to work in those markets to again establish a foothold, establish a brand and grow core deposits over time. And as we've talked about previously what we'd love to see is those markets further establish with meaningful deposit growth there over time such that we could replace our market index deposits from a funding perspective and continue to enhance relationships and improve our margin.

Steven Alexopoulos -- JPMorgan -- Analyst

Okay, that's helpful. And how are you thinking about the core margin here in 4Q?

William C. Losch -- Executive Vice President and Chief Financial Officer

I would characterize my view as stable going into the fourth quarter. I'd say that the margin was largely in line with what we would have thought and maybe a hair less than what we would have thought. And so, I see it as relatively stable.

Operator

And our next question comes from Ebrahim Poonawala from Bank of America Merrill Lynch. Please go ahead.

Ebrahim Poonawala -- Bank of America Merrill Lynch -- Analyst

Good morning, guys.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Hi, Ebrahim.

Ebrahim Poonawala -- Bank of America Merrill Lynch -- Analyst

I guess just first question around capital management strategy, I'm not sure if BJ or Bryan who wants to take it, but I get -- I think you recently again reiterated your focus on the 8% to 9% CET1, we've got a bump from the Visa gain, as you mentioned earlier. I am just trying to understand your appetite to buyback stock, given that it felt like a quarter ago in July, you felt the stock was cheap, we're down about 10% to 15% since then. And I'm just trying to gauge the Management's urgency in being able to deploy about $230 million in remaining buyback authorization.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Hey, Ebrahim, this is Bryan. I'll start and if BJ wants to add I don't know. We do think that there will be opportunities and now maybe one of those to be opportunistic in repurchased stock. We monetized the Visa gain, we bolstered the capital ratios, we had a ascent from a lot of feedback that we were screening low on a book -- price to book as well as how price to book and low on tangible capital to total asset ratios. And that created a bump with the hidden capital that we knew that was there. But as we look into the future, we think our capital ratios are sufficient.

We have given a great deal of information about our stress testing, we published it in the third quarter. So you've got that out there. And we think that with priorities for loan growth, organic growth being number one, our managing capital is probably our number two priority as we look into the remainder this year and into 2019. So we do think that there will be attractive opportunities to buy stock and we do have the authorization to do it and we fully intend to use it as appropriate.

Ebrahim Poonawala -- Bank of America Merrill Lynch -- Analyst

Got it -- go ahead.

William C. Losch -- Executive Vice President and Chief Financial Officer

I would add Ebrahim, I mean, if you look at where our return profile is and we're confident that we can continue to maintain and improve that into 2019. And then you juxtapose that with what our forward earnings look like, what our price to book, what our price tangible book looks like and we're very bullish on where we're taking the Company and this could very well be a great opportune time to buy back some of our shares.

Ebrahim Poonawala -- Bank of America Merrill Lynch -- Analyst

So, is it fair to assume that we still think the 8% to 9% CET1 is where we are targeting capital ratios or is the TCE's 7% also something that you're going to triangulate too when thinking about capital management?

Bryan Jordan -- Chairman, President and Chief Executive Officer

Ebrahim, this is Bryan. We still -- we primarily focus on the CET1 ratio the 8% to 9% is what's in the bonefish. The reason we focus on that is our balance sheets are not created equally and a 7% ratio is an even more blunt instrument, and when you look at the risk weighting of our assets, particularly the $2.5 billion to $2.5 billion of average assets associated with our fixed income business there is very, very little risk in that and it shouldn't and it doesn't draw very much capital. So we manage more around CET1, we think that's a good framework, we think that's adequate capital and we'll use those ratios to manage our capital allocation going forward.

Operator

And our next question comes from John Pancari from Evercore. Please go ahead.

John Pancari -- Evercore -- Analyst

Good morning.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Hey, John.

John Pancari -- Evercore -- Analyst

First on the credit quality side, I noticed you flagged the credit that moved onto non-performers in the quarter that contributed to the -- looks like $20 million increase in NPAs. How -- can you give us a little bit of color on that or what that -- what was the size of the credit, what's the industry? Did you put aside any incremental reserves against it or take any charge-offs? Thanks.

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

Hi, John, it's Susan. Yes, it was a $24 million credit in the financial services industry. We did previously been a classified credit, I believe it was in the non-performing in the third quarter. And we've not taken any charge-offs that we have reserved some against it.

John Pancari -- Evercore -- Analyst

Okay. And you said it was financial services credit.

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

Yes.

John Pancari -- Evercore -- Analyst

Okay. All right. And then on that topic, any incremental -- any indicative, there's any incremental inflows you expect on that front?

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

No actually that one is really an isolated incident. I'm really pleased with what I am saying as it relates to asset quality kind of the PD, average PD grade actually improved quarter-over-quarter, which is our probability default grade rating for our commercial portfolio. So we're continuing to see strong asset quality and that was just an isolated downgrade.

John Pancari -- Evercore -- Analyst

Okay, thank you. And then separately on the margin, I know you gave us some expectation for relatively stable for the fourth quarter. How are you thinking about it in terms of a general trajectory through our -- for 2019. I know it's a little bit further off, and you're going to probably talk about it at your Investor Day, but, I mean, how should we think about it, I mean, are we going to see some incremental expansion as we get some additional moves by the Fed or are we still looking at relatively stable as we move through '19?

William C. Losch -- Executive Vice President and Chief Financial Officer

Hey, John it's BJ. Yeah, we'll talk a little bit more about it at Investor Day as well. But we are continually trying to position our balance sheet to improve the margin over time. If you start with our continued asset sensitivity and our outlook for Fed increases, we would think there is probably one late this year and at least one more next year. And with our asset sensitive balance sheet that provides a tailwind, number one.

Number two, our loans to mortgage company business continues to perform well. So even though industry mortgage originations are starting to moderate as the long end, the curve is moving higher, we think their ability to take market share is going to provide us tailwind as well. And so, we expect that to continue.

Number three, we are very, very focused in our banking business on DDA growth. It's DDA growth in consumer and it's DDA growth in our commercial businesses, including our specialty businesses, and we have confidence in our execution plans to be able to do that. And as you well know, our ability to drive DDA is our most profitable way to improve the funding side of our balance sheet. And so, we're going to be very, very intently focused on that. And those three things we think will help continue to support the margin.

And the last will be, as our loan growth continues into 2019 based on what we're seeing on the balance sheet and how disciplined we are, we think that that can continue to help us incrementally improve the margin as we've taken out these lower spread relationship loans as well. So we've got several levers that over time we think that we can continue to help improve the margin.

Operator

And the next question comes from Casey Haire with Jefferies. Please go ahead.

Casey Haire -- Jefferies -- Analyst

Yeah, thanks, good morning guys.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Good morning.

Casey Haire -- Jefferies -- Analyst

Wanted to touch on the loan growth outlook, how you guys, how are pipelines here at the end of the quarter and then specifically the 360 million of run-off year-to-date, is that still -- have you worked through most of that or is that still a headwind that we're going to have to digest in coming quarters?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, well, I'll start with the run-off that we had, there were a couple of different areas of the business and it wasn't by the way to be clear, simply Capital Bank related portfolios that we were repositioning, it was also First Tennessee related portfolios, in aggregate, we were repositioning our balance sheet to be able to take advantage of other things that we saw, but it was loan portfolios that had yields in the 2% to low 3% ranges at the beginning of the year, which we just felt like were not accretive to us and as Bryan said, really single product relationships that we didn't have an opportunity to deepen. So we took the opportunity to take those out and move ahead.

We're always optimizing our balance sheet like this, but I would tell you that, in terms of the magnitude of the repositioning that we've done over the first three quarters, that magnitude of change will not continue to occur. We've largely repositioned most of what we wanted to do with some of the larger buckets. And so, going forward, it would not be nearly as visible.

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

Then on the pipeline and production side, we've actually seen significant increase in production in the specialty businesses, core commercial, commercial real estate of about 13% quarter-over-quarter, so third quarter production was strong. And that's even excluding mortgage warehouse. If you include mortgage warehouse, our production quarter-over-quarter was up about, production was up about 30%. So we feel well positioned as we go into the fourth quarter and in the pipeline really across multiple areas including the Capital Bank market, the Carolinas and Florida, many of the specialty businesses are reporting strong pipelines for fourth quarter.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Casey, this is Bryan. September was our strongest month of the year in terms of production and Susan said, very good pipeline going into the fourth quarter. I wouldn't characterize personally the repositioning of the portfolio as a headwind. As BJ noted in his opening comments, our margins on those -- on that business that we replaced it with are 73 basis points higher. I think it's important to note, when you look at our balance sheet that we're not driving just the cosmetic, so the size of the balance sheet, we're driving the profitability of the balance sheet and return on the capital that we have deployed in it. So while it may be, what appears to a headline to top line loan growth, in terms of profitability it's the right decision to position the balance sheet from a more profitable relationship oriented perspective. So, I just want to fine-tune, I wouldn't characterize it as a headwind.

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

And then one additional point about optimizing when you exit kind of single product relationship. And we've looked at this over time, asset quality performs better with customers where you have deeper relationships, we have insight into Treasury Management cash flow et cetera. So in addition to improved margins, we also believe that over time that improves assets somewhat.

Casey Haire -- Jefferies -- Analyst

Okay, understood. I guess, in keeping with the profitability, BJ, I'm following up on your comments on perhaps optimizing the market index funding side. Is that something that you guys are actively prioritizing higher and is there a loan to deposit ratio at 91% or so is OK. How -- what's the appetite to take that higher to paydowns, to optimize the higher cost market index deposit?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, so it's obviously a high priority for us as we talked about the last couple of quarters, we would like to replace as much as that market index over time as we possibly can. It's going to take a while right, because we've got to build our portfolios and particularly in the newer markets to be able to replace it. But personally, I would love to see deposit growth outpace loan growth, because I think that we would improve our margins and our net interest income by doing that. But we're comfortable with a 90%-ish loan to deposit ratio that doesn't make it uncomfortable, nor would something a couple of basis points higher if we saw good profitable loan growth. So you'll probably hear more from us on Investor Day around that topic, but we continue to focus very intently on trying to optimize our funding mix and that's one way to do it.

Operator

And our next question comes from Ken Zerbe from Morgan Stanley. Please go ahead.

Ken Zerbe -- Morgan Stanley -- Analyst

Great, thanks, good morning.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Good morning.

Ken Zerbe -- Morgan Stanley -- Analyst

I guess maybe starting off with the loan growth if we could. It's -- I guess Slide 8, it looks the idea, you do certainly have pockets where you're seeing some strong growth, but I guess average loans in total of 0.2% -- again, I understand that the run-off portfolio we were talking about earlier, like what is the biggest headwind to growth at this point. And also kind of as you look out over the next year, like, does that accelerate? Like what drives that meaningfully higher than where it is today? Thanks.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Ken, this is Bryan, I'll start. I don't see anything that is particularly a headwind to loan growth. We have very good calling activities, we see very good strength across all of our markets and in some ways optimism or pipelines picked up in some of these markets late in the quarter. That said, we are thoughtful about what we put on the balance sheet, the risk and reward that we take when we enter into a relationship, there are pockets where structure and pricing have gotten to points that we decided that we can't be competitive at those levels. And so, you might characterize that as a headwind.

I'd characterize that as just managing the balance sheet for one, you're going to like long term. And so, I don't see anything that is particularly a problematic area out there. I just think we're trying to be smart about the business we book, we're managing it for profitability, we're using the balance sheet to support relationships and as we looked into the fourth quarter and we look into 2019, we think, something in that mid-single digit area is still a reasonable way to think about the growth potential of our balance sheet.

Ken Zerbe -- Morgan Stanley -- Analyst

Got you. Okay, that helps. And then just a question back on the NIM being stable next quarter, what underlying assumptions you're making about the accretion income as part of that. And should we expect accretion income to continue to decline from here or is it just going to remain volatile given sort of accelerated payoffs?

William C. Losch -- Executive Vice President and Chief Financial Officer

Hey, Ken, it's BJ. I think we -- our loan accretion in any given quarter probably peaked in the second quarter where we had 18 million, this quarter we had 14 million. I would expect that it continues to step down by a couple, $2 million, $3 million a quarter over the next several quarters. And so, that would certainly be a headwind to the margin.

Operator

And our next question comes from Brady Gailey from KBW. Please go ahead.

Brady Gailey -- KBW -- Analyst

Hey, good morning guys.

William C. Losch -- Executive Vice President and Chief Financial Officer

Good morning, Brady.

Brady Gailey -- KBW -- Analyst

So if you look at the efficiency ratio, you saw some improvement down to 64%. I know that you have kind of the longer-term goal of sub 60%. You still have some cost saves coming from CBF in the fourth quarter this year and then into next year. Do you think that you can get the efficiency ratio at that 60% or better level as you exit 2019?

William C. Losch -- Executive Vice President and Chief Financial Officer

That's our goal. That's what we're driving for. And again, it will be a combination of overall positive operating leverage with Bryan and Susan both talked about some of the momentum we've got, we believe going into the fourth quarter. I talked a little bit about what we're trying to do to drive profitability out of the funding side of the balance sheet. We're continuing to take cost out of the organization from the merger saves and we'll be very disciplined as we have been about what we spend money on going into 2019 such that we're continuing to improve that efficiency ratio. As you've seen over the last five, six quarters, we've improved it by 700 basis points or more. And that's clearly one of our main priorities is to continue to improve the profit margin of the Company.

Brady Gailey -- KBW -- Analyst

All right. And then on the M&A side, CBF has been closed for a few quarters now, you've got almost all the cost saves realized a little more to come. But, Bryan are you ready to start thinking about another potential acquisition?

Bryan Jordan -- Chairman, President and Chief Executive Officer

Brady, this is Bryan. Short answer is no. We're focused on execution on organic opportunities. We think that we have tremendous opportunities and momentum and the footprint that we have and we want to capitalize that and continue to build our business model and focus on those markets. So in short, no.

Brady Gailey -- KBW -- Analyst

Got it. Thanks guys.

Operator

And our next question comes from Jared Shaw with Wells Fargo Securities. Please go ahead.

Jared Shaw -- Wells Fargo Securities -- Analyst

Hi, good morning.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Good morning.

Jared Shaw -- Wells Fargo Securities -- Analyst

I guess just following up on the loan transition comments from earlier. How are the markets, the new CBF markets transitioning? Are they on track with what you wanted to in terms of moving away from CRE and into the C&I side and should we expect to see the pipeline in those markets increasing?

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

Yes, Jared, we are seeing very good shifts in terms of additional focus on core C&I. From the existing teams that we have that are very strong, in addition, we're recruiting new bankers in both Carolinas and South Florida who is focused on C&I core commercial relationship building. And as we mentioned earlier, the pipelines in the Carolinas and in South Florida are strong going into the fourth quarter. And we had particularly good production Mid-Atlantic, which is our Carolinas Capital Bank market in the third quarter. So we're pleased with where we are and the opportunities in those markets that are dynamic and vibrant and growing. We're also pleased with our ability to attract strong bankers from many different institutions that have potential clients that they could bring over over time.

Jared Shaw -- Wells Fargo Securities -- Analyst

Great. Thanks. And then on the fixed income business, it was good to see the growth in the ADRs there. How did that playout sort of within the quarter and as we saw the 10-year start moving at the end of the quarter, was that -- did that ramp up moving through the quarter and is that sustaining itself so far through fourth quarter?

Bryan Jordan -- Chairman, President and Chief Executive Officer

It bounced around throughout the quarter, third quarter in the fixed income business is in any year volatile just because of the month of August and everything that's happening around holidays and vacations, it bounced around, activity was a little better probably on average in September. But it was up and down throughout and we're seeing the same trends continue a little bit here and even into the start of the fourth quarter.

Jared Shaw -- Wells Fargo Securities -- Analyst

Great. Thank you.

Operator

And our next question comes from Rob Placet from Deutsche Bank. Please go ahead.

Robert Placet -- Deutsche Bank -- Analyst

Hi. good morning.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Good morning.

Robert Placet -- Deutsche Bank -- Analyst

Middle Tennessee, Nashville is a market you've seen good growth in over the last number of years. I was just curious if you could talk about the success you've had there and how translatable that is, that strategy is in your new markets in Carolinas then any differences in strategy say in Nashville versus the Carolinas?

Bryan Jordan -- Chairman, President and Chief Executive Officer

Yeah, this is Bryan. I think that's an important point and we articulate optimism about the opportunities in Mid-Atlantic and South Florida, for example. We firmly believe that the model that's been executed in Middle Tennessee over the last handful of years is a really good example of how we're going to continue to grow and to gain share in those markets Mid-Atlantic, South Florida in addition to the demographic similarities. It is a model that we know works, it's proven and we fully intend to deploy it. So the lessons that we used to grow in Middle Tennessee are going to be the same things that we're going to deploy in the growth markets in mid-Atlantic and South Florida and it does give us that optimism.

Robert Placet -- Deutsche Bank -- Analyst

Okay, thanks.

Bryan Jordan -- Chairman, President and Chief Executive Officer

One final point on that, which is that would be one of the topics that we talk about in the Investor Day. So I'll tease the Investor Day a little bit.

Operator

And our next question comes from Jon Arfstrom from RBC Capital Markets. Please go ahead.

Jon Arfstrom -- RBC Capital Markets -- Analyst

Thanks, good morning.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Hi Jon.

Jon Arfstrom -- RBC Capital Markets -- Analyst

A question on the synergies, you called out 31 million in annualized revenue and 471 deals closed or in process. Can you maybe give us an example of what one of those deals might be, one or two of those deals might be. And then, curious, how much more potential you see?

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

We have several different types of synergy opportunities Jon. Let me give you a couple of different ones that we're already executing on and we believe there are more out there. For existing clients either in legacy First Tennessee or Capital Bank in terms of whole limits and where we like to be, obviously it's a bigger balance sheet when there are opportunities to take on additional exposure on the lending side, it gives us that opportunity to do that without going over limits. That's one example.

The opportunity to broaden relationships and we touched on this earlier about how important it is from a return standpoint, that even performance, the opportunity to offer treasury management products to clients. So as an example I know there is opportunity with a lock box for an existing customer in the Capital Bank franchise, and we had other products that we didn't have that an opportunity to expand there. And then the third one I would bring up and all these are opportunities within synergies would be the opportunity to private client banking where we offer wealth management and private client lending to customers, executives and owners of businesses.

And then last but not least would be our specialty lending verticals that we've had in the core First Tennessee franchise for a while, the opportunity we're seeing referrals into those specialty businesses from our bankers in the Carolinas and Florida. So, asset-based lending, franchise finance, mortgage warehouse lending so we're seeing opportunities for referrals as well.

Jon Arfstrom -- RBC Capital Markets -- Analyst

Okay, good. And more to come -- you expect more to come from these opportunities?

Bryan Jordan -- Chairman, President and Chief Executive Officer

Jon, this is Bryan. I think we've just scratched the tip of the iceberg here. I think we have a tremendous amount of opportunity as Susan articulated across a broad number of fronts, whether it be treasury management, and P card(ph)to expanded balance sheet and referrals to specialty businesses. You take the ABL business for example, Capital Bank's credit profile was much like ours, the ABL capabilities and the tools we have there will give us greater opportunities to call in these markets and expand our growth opportunities. So we think there are quite a few opportunities left and we will continue to build on them.

Jon Arfstrom -- RBC Capital Markets -- Analyst

Okay. And then a quick one for BJ. I don't know if you mentioned this, I may have missed it, but the reduction of low spread loan balances for the quarter, was that about a $200 million headwind, I'm just looking back through some of my notes. Is that about right for the quarter?

William C. Losch -- Executive Vice President and Chief Financial Officer

No, no, it was 360 million in total year-to-date. I would say that it was probably a little less than 100 million for those low-spread, low value and then, remember we sold the sub-prime auto which was about $100 million. So, in aggregate those were a couple of hundred million in the quarter.

Jon Arfstrom -- RBC Capital Markets -- Analyst

Yeah. Good, thank you.

William C. Losch -- Executive Vice President and Chief Financial Officer

Sure.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Nice Jon.

Operator

And our next question comes from Michael Rose with Raymond James. Please go ahead.

Michael Rose -- Raymond James -- Analyst

Thanks for taking my questions. Just wanted to follow up on the specialty blended growth. Susan, you mentioned some of the areas. Can you kind of size some of those opportunities for us where you stand in the build out some of those different businesses and maybe where you're looking to hire both in those businesses in the core franchise there is a bank in Nashville that obviously put out a lot of press releases here about hires. Just wanted to get the outlook for you guys. Thanks.

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, so I'll start, it's BJ. So, really our most profitable lending businesses are loans to mortgage company business. And we continue to look for ways to expand that. That's one of our top priorities. But across asset based lending loans to mortgage companies, franchise finance business in particular, those businesses in aggregate have less than 5% national market share. And so, we have huge opportunity over time to continue to build out teams, different specific sub niches within those lines of business and we're very optimistic that we can -- that we can do that and as we've talked about before, the reason that we like those businesses is that we, we see higher risk adjusted returns on those, they have excellent efficiency ratios within those businesses, there's fewer more focused competitors in those areas because you have to know how to lend to those specific clients, so not all banks can do it.

And so, we see a little bit more rationality that we might see in some other lending areas. So all of that really pushes us toward trying to allocate more resources to that growth. And if you look over the last five years, our specialty lending businesses have grown a 150% in terms of balance sheet growth over $6 billion. And that's excellent growth and it's been growth that's been very profitable. And we expect that we will continue to grow those types of business double digits and make more prof -- make the left side of the balance sheet even more profitable.

Michael Rose -- Raymond James -- Analyst

That's great color. Maybe just following up on that excluding the run-off of the non-strategic. You guys still think that the core bank that mid single-digit growth rate is kind of in the cards as we think about next year?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, we certainly think so. So, some of the repositioning of the balance sheet that we talked about this year has needed some of that growth. I think if you look at the regional bank itself, I think we're seeing maybe 3% to 4% annualized growth, but that's -- that was roughly cut in half by some of the repositioning of portfolios. And so, going into next year total balance sheet growth in the mid-single digits is very reasonable for what we say.

Michael Rose -- Raymond James -- Analyst

That's helpful. And maybe just one final one for me. Still couple of quarters out, but any initial thoughts on the impact to seasonal(ph)for you guys? Thanks.

William C. Losch -- Executive Vice President and Chief Financial Officer

Yes, it's, number one, a very frustrating thing and if any of you are knowledgeable on why we would want to change this and had told to FASB that I'd love to hear it because I think it can be very disruptive. But nevertheless, we will be prepared for it going in. If we don't have any specific impacts to share with you in terms of the magnitude of the change in our day one reserves or what it will look like on our P&L, but we are in line to slightly ahead with our planning of being prepared for seasonal, but hopefully something does change in and dialog does continue to happen such that we can maybe land it in a more helpful place for both investors and banks before it's actually implemented.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Michael, this is Bryan. I would add to what BJ said, I strongly agree with the comments I read that Jamie Dimon made last week I think that, that it will be pro-cyclical, I think this is an accounting convention that will be pro-cyclical. I don't think it's going to be particularly helpful to understanding financial statements. And to sort of reiterate BJ's point of a minute or so ago, to the extent that investors have strong views on the validity of whether this makes sense or not, you need to express it to the accounting standard riders. I keep saying when we talk to investors are demanding this, and it doesn't. I can't find that groundswell of support. I just think it's not good for the economy, I don't think it's good for customers long term. And I think ultimately it's not going to give investors any better understanding of financial statements.

Operator

And the next question comes from Geoffrey Elliott with Autonomous Research. Please go ahead.

Geoffrey Elliott -- Autonomous Research -- Analyst

Good morning. Thank you for taking the question. First just a little clarification, when you were talking about the NIM staying stable in the fourth quarter that was the core NIM, right. Just wanted to clarify on that?

William C. Losch -- Executive Vice President and Chief Financial Officer

That's right.

Geoffrey Elliott -- Autonomous Research -- Analyst

Thank you. So just in terms of asset sensitivity, you kind of mentioned that a few times as a positive on the conference call, but I guess given the discussion about the stable core NIM into year-end and given that Slide 7 shows a negative impact from rate stays and other in the slide deck, can you kind of help us by quantifying that asset sensitivity that used to be a useful chart in the slide deck, but it seems to be gone the last couple of quarters. Just how much of a benefit is there still from rising rates?

William C. Losch -- Executive Vice President and Chief Financial Officer

Aarti is sitting here pointing and laughing at me because I told her we didn't need that anymore, now that we need it. The asset sensitivity hasn't much changed from when we had that -- had that graph in there. There's been modest mix shifts as we would have expected, particularly in the deposit portfolio as rates have started to rise, little bit more of a shift into money market and money market into CDs, which would dampen asset sensitivity. But in terms of the lending that we're continuing to do, it's predominantly floating rate, and so in aggregate, our asset sensitivity has meaningfully changed. And so, we would expect the same types of net increases that we had seen before maybe I think I'm trying to recall, I think it's maybe $8 million annualized for a 25 basis point move, something like that. It's roughly the same.

Geoffrey Elliott -- Autonomous Research -- Analyst

I guess the reason for asking is, it doesn't really feel like it's been coming through the last couple of quarters. The comments on 4Q stable core NIM kind of suggests there's not much benefit there in 4Q. So again what's the piece that I'm missing there?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, so I would tell you that the last two quarters have really -- the difference has been the deposit beta. So the deposit beta of course from 3Q '15 to the first quarter of '18 let's say was very, very low and if you actually go back, we would have beat those asset sensitivity metrics that we put out on that graph before we would have been ahead of them last couple of quarters, because we were defending our deposit base, that our deposit betas were higher, which dampened the sensitivity. But over time particularly when rates, short rates ultimately moderate and stop increasing, we think that, that again will help us in terms of our net asset sensitivity. And so, I think, Geoffrey it's a question of timing, but over time, and through a cycle we think our asset sensitivity is in tact.

Operator

And our next question comes from Tyler Stafford from Stephens Inc. Please go ahead.

Tyler Stafford -- Stephens Inc. -- Analyst

Hi, good morning guys.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Good morning.

Tyler Stafford -- Stephens Inc. -- Analyst

I wanted to start just on the mortgage warehouse and obviously a good quarter there and the deck talked about market share gains driving that volume. I was just wondering if you can talk about the pricing or the yields in that business today. And just curious, if you're seeing any spread degradation at all just given that market share gains?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, so it's still our highest yielding portfolio on the commercial side. Do you have that --

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

Yeah, we the yield is 546 for the quarter.

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, so it's almost 550 in terms of yield. And so, very healthy. I would generally say though that, as we've continued to build market share, of course, there are certain instances where we gleaned in and gotten little bit more aggressive than the portfolio yield to try to acquire balances, but that rate volume trade-off has been a net positive for us, of course. And so, we would expect that type of momentum to continue, we'll always look to increase our share at a profitable rate and I will tell you that Bob Garrett and our loan to mortgage company team and business out there do a phenomenal job of managing economic profit and managing returns on individual relationships such that we're giving fair pricing to our clients, but also making sure that the bank gets paid for using our balance sheet as well.

So we expect those yields to continue to go up, particularly as when rates do rise because they're a short-term oriented rate business. And so, we're very pleased with how it's performing.

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

In addition to that, we've seen some really good deposit opportunity within the mortgage warehouse lending business, and so, calling on those customers and talking with them about deposits. And then one last thing is it relates to market share growth in mortgage warehouse, it's been a combination of an increase in client count. So, client count mortgage warehouse even just quarter-over-quarter was up about 5%, year-over-year we're up about 15% in terms of numbers of client. And then, in select cases, we're increasing some loans to existing customers. So we like the business and we like both the lending side and the deposit opportunities that are there as well.

Tyler Stafford -- Stephens Inc. -- Analyst

Very helpful. And do you have what the 546 comparable yield would have been in 2Q?

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

544.

Tyler Stafford -- Stephens Inc. -- Analyst

Okay. And then just lastly, BJ, you mentioned the stock looks attractive, based on your forward earnings profile. You guys just reported a 1.28 annualized EPS quarter, you've got 75% of the CVS(ph)cost savings now in the run rate. And at some point next year, I would imagine the headwind of normalizing higher credit costs and then some margin, GAAP margin at least headwinds from declining accretion and funding pressures. So, I'm just curious what's the biggest driver or drivers that you see internally from an earnings inflection that will be the biggest driver to an improved forward earnings trajectory that you see?

William C. Losch -- Executive Vice President and Chief Financial Officer

Hey, Tyler, just to clarify $0.36 times four is $1.44.

Tyler Stafford -- Stephens Inc. -- Analyst

Yeah, I took out some of the one-time items in there, the drops and some other items.

William C. Losch -- Executive Vice President and Chief Financial Officer

That doesn't drop to $0.20, but regardless, I'll stay with what we've got, which is a $0.36 run rate right now. We talked about loan growth and what we thought the outlook was for there on this call. So we feel pretty good about what we can do going into next year. We've repositioned the balance sheet for stronger profitability going forward. We still got asset sensitivity that we believe can come through, we're starting to see good deposit growth, particularly out of the newer markets, which will certainly help us in terms of our funding mix. And again overall, we are very, very focused on positive operating leverage. And those things I just said, will drive the top line while we continue to get a full year's worth of benefit next year in expenses. And sitting here today, our expectation would be that expenses would be down next year, primarily due to the cost saves while we continue to move the top line up.

So, we'll be very focused on making sure that that happens going into next year. And that should obviously be helpful to expanding the earnings side. On the denominator, the EPS, as we talked about earlier, given where our valuations are, we think it's a very attractive time for us to look at share buybacks. And so, we'll be looking at both sides of that equation to continue to improve our earnings per share profile.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Tyler, this is Bryan. I'll just add to BJ's comment, we have a lot of clarity about where our calling efforts are, we recognize and our bankers did a great job through the integration, but when you're doing the integration in the first half, first really three quarters of the year, focus goes on to the blocking and tackling in the short term and not the calling efforts and growing the business. We see that turning, we see the momentum pick up, and as we see the business unfolding in fourth quarter and 2019, we're significantly confident that we have a pretty good outlook for the remainder of this year and the turn of next year.

Operator

And our next question comes from Brock Vandervliet from UBS. Please go ahead.

Brock Vandervliet -- UBS -- Analyst

Thanks, good morning. I guess just probably, following up on that question. Bryan, you touched on FTN Securities and it didn't sound like a resounding endorsement in terms of the business volume and cadence you're seeing there. You've got a bit of a long march ahead in terms of more rate hikes until you get to a more favorable tailwind for that business. And I mean, parting with that would certainly give you a leg up on efficiency ratio and other metrics, and how does that kind of fit in?

William C. Losch -- Executive Vice President and Chief Financial Officer

Well, Brock, that's a business that we like and we had a slide and a deck for a presentation we made mid -- early mid September. And it shows that business is counter-cyclical. So if you look at it from our perspective one, it is a business that has done very well and returns on capital for many, many years, we're comfortable with it. And we've been in the business close to 100 years than not. And so, we understand it well. It is counter-cyclical and when credit does start to deteriorate in the industry, we will see a pickup in that and we've seen it historically we will see a pickup there, it will be a counter-cyclical offset. And in many ways I think an advantage for us in that, while credit costs are going up across the industry and ours will as well, we have an offset to that.

Given that, we're not particularly panicked about the outlook for the next two or three or six quarters, we feel good about the business, we feel good about the team and what they're doing to control cost and to drive profitability in the business. And so, it's a business that we're comfortable with, we like the capital allocation, we think it's a good counter-cyclical balance and we're committed to driving it.

Brock Vandervliet -- UBS -- Analyst

Okay. And separately as a follow-up on the provisioning in the provisioning tempo, that's kind of oscillated from a small negative to small positive. When do we -- when should we, how should we think about that normalizing?

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

At this point Brock, we continue to see asset quality remains excellent and we continue to have run-off in the non-strategic portfolio. So we'll see probably some opportunities to release non-strategic. We use the models and we believe that our -- we got good coverage that relates to the allowance. If the economy were to turn, credit quality started deteriorating obviously, you'd see that build at this point, I see the provision remaining rather stable across the next few quarters, based on what we know today.

Operator

And our next question comes from Christopher Marinac from FIG Partners. Please go ahead.

Christopher Marinac -- FIG Partners -- Analyst

Thanks, good morning. Bryan, you had mentioned a while ago about the repositioning not being a headwind. So just kind of tagging onto looking at ROA and ROTCE, particularly as you have outlined on slide 11, do we get a catch-up coming soon just as a timing that sort of gets the ROA a little bit stronger than obviously as you play out 2019, to see where that can go. It just seems that you're earning in your zone on the return on tangible common, but just a little bit below and the ROA, just want to reconcile the timing of that.

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, I think you'll start to see it improving in the fourth quarter and into 2019 particularly as you realize the additional cost saves, which also affect the overhead efficiency ratio. But you should see both of those ratios continue to improve the capital, we did increase the capital buffer in the middle of this quarter. So it's starting at a higher level of capital, but from an ROA perspective, we would expect that to continue to improve into 2019.

Christopher Marinac -- FIG Partners -- Analyst

Okay, great. And then is it possible to compute a core loan yield, you may have mentioned that in the prior question, I just want to go back to that.

William C. Losch -- Executive Vice President and Chief Financial Officer

quote-unquote loan yield, I don't have it in front of me, but -- so we can get it --

Bryan Jordan -- Chairman, President and Chief Executive Officer

Short answer is, yes.

Christopher Marinac -- FIG Partners -- Analyst

Okay. (inaudible)

William C. Losch -- Executive Vice President and Chief Financial Officer

We can do that. Refining core maybe the hard part, you just excluded non-strategic, we could probably do that fairly quickly.

Christopher Marinac -- FIG Partners -- Analyst

Very well guys. Thank you so much for the time.

William C. Losch -- Executive Vice President and Chief Financial Officer

All right, Chris. Thank you.

Operator

And our next question comes from Matthew Keating from Barclays. Please go ahead.

Matthew Keating -- Barclays -- Analyst

Great, thank you. Just a quick follow-up on the Company's asset sensitivity please. So you know last quarter we talked about deposit betas moderating from 2Q levels in the back half of this year. As you think about deposit betas in Q4, do you think that what we saw in Q3 is a reasonable expectation. And then separately perhaps you could quantify the impact of the more muted move in LIBOR this past quarter had on loan yields? Thanks.

William C. Losch -- Executive Vice President and Chief Financial Officer

Hey, Matt, it's BJ. So on the deposit, I think in terms of betas, I would venture to say that 2Q was probably our high watermark, 3Q clearly moderated. And I would hope and expect that 4Q would be flat to further moderate from 3Q levels. And so, that will be helpful of course to the core margin in the fourth quarter. What was the other question Matt?

Matthew Keating -- Barclays -- Analyst

Thanks, BJ. And the other question would be, obviously LIBOR move was a bit muted in the third quarter. But it looks like it's picking up from here. And so, you think you will see obviously that benefit should flow through I guess as much. So the question is really like, how big of an impact I guess the more muted move have on loan yields if you're able to quantify that at all?

William C. Losch -- Executive Vice President and Chief Financial Officer

Yeah, I think if you look at our reconciliation on the NIM slide, we had something I think called rate stays in others, which was about four basis point decline, I'd say a couple of basis points of that was related to LIBOR ultimately.

Matthew Keating -- Barclays -- Analyst

Great. Thanks very much.

Operator

And this concludes our question-and-answer session. I would like to turn the conference back over to Bryan Jordan for any closing remarks.

Bryan Jordan -- Chairman, President and Chief Executive Officer

Thank you, Cole. We appreciate you taking time to join with us this morning. Again, I'll encourage you if you have not already please join us for our November the 6th Investor Day in Nashville, please reach out to Aarti and let us know. We have a lot of good information that we'll cover. We'll have our management team there going through the business and will spend more time talking about our outlook for the remainder of this year, but also for 2019 and beyond. Please feel free to reach out if you have any follow-up questions. I hope everybody has a great day. Thank you.

Operator

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

Duration: 69 minutes

Call participants:

Aarti Bowman -- Investor Relations

Bryan Jordan -- Chairman, President and Chief Executive Officer

William C. Losch -- Executive Vice President and Chief Financial Officer

Steven Alexopoulos -- JPMorgan -- Analyst

Ebrahim Poonawala -- Bank of America Merrill Lynch -- Analyst

John Pancari -- Evercore -- Analyst

Susan L. Springfield -- Executive Vice President and Chief Credit Officer

Casey Haire -- Jefferies -- Analyst

Ken Zerbe -- Morgan Stanley -- Analyst

Brady Gailey -- KBW -- Analyst

Jared Shaw -- Wells Fargo Securities -- Analyst

Robert Placet -- Deutsche Bank -- Analyst

Jon Arfstrom -- RBC Capital Markets -- Analyst

Michael Rose -- Raymond James -- Analyst

Geoffrey Elliott -- Autonomous Research -- Analyst

Tyler Stafford -- Stephens Inc. -- Analyst

Brock Vandervliet -- UBS -- Analyst

Christopher Marinac -- FIG Partners -- Analyst

Matthew Keating -- Barclays -- Analyst

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