Good morning, and welcome to the SmartFinancial first quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by press the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one. Please note, this event is being recorded. I would now like to turn the conference over to Miller Welborn. Please go ahead. Thanks, Garrett. Good morning, and thanks to everyone for joining us this morning for our Q1 earnings call. We do always love visiting with this group each quarter to talk about our progress and our company. Joining me this morning on the call are Billy Carroll, our President and CEO, Ron Gorczynski, our CFO, Rhett Jordan, our Chief Credit Officer, and Nate Strall, our Corporate Strategist. Before we get started, I'd like to ask everyone to please refer to page two of our deck that we filed this morning for the normal and customary disclaimers and forward-looking statements comments. Please take a minute to review these. Well, 2021 has certainly started off at a mighty fast pace for our company. The bank has grown rapidly over the past couple of years, and in particular, the past 12 months. We've grown our assets by more than $1 billion, and only about $400 million of them were acquisition related. Our organic pace of growth has been impressive, and we see nothing slowing us down over the months ahead. Four major points of focus for our team this year to date have been strong tangible book value growth, ROA growth, ROE growth, and EPS growth, and we do feel very confident and very proud of the progress we've made in all four of these areas to date. We talk often about how excited we are in the company, and we can't stress enough about how we feel this company is positioned for the quarters ahead. With that, I'm going to hand it off to Billy to talk about a few of the points. Thanks, Miller. We did kick off the year in a great way, as Miller said, with a very solid first three months. Our company continues to take the steps necessary to become a key player in the Southeastern bank landscape and build great value for our shareholders. I'm going to hit on a couple of highlights, then I'm going to turn it over to Ron to dive into the financials a little bit, and then on to Rhett to touch on credit. First, we do believe the pandemic is clearly in our rearview mirror, although we are still operating cautiously and safely in our markets. Our markets and our teams are back to normal for the most part. Our sales teams are back playing offense, and we are seeing great opportunities in all of our zones. We've had a couple of newsworthy items of late, so I wanted to start by highlighting those. Last week, we announced the signing of the definitive agreement to acquire Sevier County Bancshares and their subsidiary, Sevier County Bank, a deal we're very excited about in our legacy market, where we can achieve some great synergies with the combination. SCB is a $460 million bank with a very complementary book of business. We anticipate our cost savings to be over 60% on this deal, and it is a huge win for us. We've included some additional details on the deal on pages five and six of the deck, but an excellent density play that will add nicely to our metrics. Next, detailed on page seven of the deck, you'll see some information on some great additions to our SmartBank team. Over the last few weeks, we've completed a lift out in our Gulf Coast region to add some muscle in South Alabama and the Florida Panhandle. Another huge win for our bank, with this team coming from a solid regional player. This move will be adding one office in Mobile, Alabama, along with our new regional president, Nate Sommer, with the other members of the team expanding our existing presence in Fairhope, Alabama, Pensacola, Florida, and Destin, Florida. While a lot of the quarter was spent on those two initiatives, it has not impacted our continued improvement on the financial front. A few of those highlights. Earnings, very solid at $8.9 million from both a GAAP and an operating standpoint, coming in at $0.65 per share, and noting another non-interest income record quarter. We had strong loan and deposit growth for the quarter. We organically grew core loans over $60 million or 10% annualized, and deposits grew over $240 million, 34% annualized. Outstanding results on both fronts. We're continuing to see clients hold larger than normal amounts of liquidity, and that does create some net headroom. We are taking the approach to watch these positions through the PPP payoff cycle to gauge how sticky that excess will be. This quarter also included participation in the first round of the Paycheck Protection Program. We saw strong demand, and so we're very glad to be able to offer our clients and prospects this service, originating over 1,200 loans in this most recent round, totaling over $119 million in loans. Also generating over $5 million in projected revenue. Rhett's going to provide additional details on this in a moment. I guess another comment as to what I expect as we move forward in 2021, but again, nice results from our company this quarter. Let me turn it over to Ron now for financials, and then Rhett will touch on portfolio credit, and then I'll close with his comments. Ron? Thanks, Billy. Good morning, everyone. I'll be starting on slide 11. Focusing on the top graph, we continue to improve our ROA metrics as seen by the continued and consistent steady ramp in profitability. Moving on to the lower portion of the slide, our operating return on average tangible common equity of 14.5% continues to be a bright spot for us. We have done an excellent job of managing capital levels throughout the pandemic and didn't rush to raise capital. Turning to slide 12, as Miller indicated, we have continued our consistent trend of increasing our tangible book value with a 10.5% increase on a linked-quarter annualized basis, and year-over-year, we have increases of over 12%. On the lower portion of the graph, our operating efficiency ratio, represented by the green line, has been steadily improving. We are proud of our SMBK team for the continuous efforts on improving our efficiency levels. For the current quarter, we are still hovering at that 60% level. Turning to slide 13, net interest income. Excuse me, we reported net interest margin of 3.48%, a decline of 9 basis points from the prior quarter. Our net interest income FTE was $26.4 million for the quarter, very consistent with the prior quarter's $26.7 million. We did very well considering the headwinds of two fewer days of interest, lower loan rates, and continued repricing of the balance sheet, all being partially offset by our continued benefit from our decreasing deposit costs. During the quarter, our loan yields, less loan discount accretion of PPP fees, have declined 23 basis points from the prior quarter. The prior quarter did include 7-8 basis points of escalation from an elevated amount of loan prepayment fees, as well as our participation in the 2021 PPP program, which negatively impacted our loan yields by approximately 67 basis points. Overall, the decrease in loan yields were offset by 27 basis points or $1.6 million of loan discount accretion and 40 basis points, or $2.4 million of PPP fee accretion. For our interest-bearing deposits, we had a decrease in funding costs of 6 basis points to 0.44%, with our cost of total deposits for the quarter at 0.33%. For the second quarter of 2021, we will have almost 19% of our time deposits maturing and repricing. We still have an opportunity to further reduce our deposit costs, maybe another 2-3 basis points. Overall, when removing loan discount accretion and PPP fee accretion, we believe our NIM has bottomed. Our expectations for our NIM is to hold steady, then slowly rise during the latter part of 2021 and beyond. Over the past several quarters, we've been maintaining elevated cash balances. Our average cash balance has increased almost $68 million for the quarter with a quarterly average balance of $417 million. This elevated position of excess liquidity has negatively impacted our margin well over 20 basis points. As we have mentioned previously, we have taken the conservative approach and have been patient in the deployment of our excess cash since we don't know how permanent our liquidity position will be going forward. This patience may have benefited us because if the forward interest rate curve materializes, we will be in a good position for deployment. We anticipate to use some of our excess funds to fund projected loan growth, and we anticipate on layering in more bond purchases over the next several quarters to get our securities asset ratio closer to 10% level. Looking forward, we are forecasting a second quarter margin around 3.20%. We're estimating to have loan accretion of 9 basis points, or approximately $546,000, an estimated PPP loan fee accretion of 31 basis points, approximately $1.9 million. Moving on to slide 14, operating non-interest income. We had a great quarter for operating non-interest income as we continued our momentum in growing this category. For the quarter, we reported $5.7 million of operating non-interest income, an increase of almost $1.2 million from the prior linked quarter. Our service charge and interchange fee income remains stable. We had $124,000 increase from investment services from the continued growth in assets under management. For our mortgage banking team, we had another great quarter. As expected, our QM income was a little softer than the previous quarter, but still had revenues reaching over $1.1 million. As our pipeline remains strong coming into Q2, we have seen some headwinds with increased building prices delaying some projects, decreased inventory, as well as an uptick in interest rates. With that said, we are still expecting some good things from our mortgage team for 2021 as we continue to grow this division. We also had an outstanding quarter from our insurance division. Looking forward into the second quarter, we expect to gain some traction with additional fee income from our newly hired director of capital markets. In addition, we have recently executed a branding agreement which will provide increased interchange fee income during the second half of the year. Our forecast for the second quarter is having non-interest income of $5.1 million. Continuing on to slide 15, again, we want to take the opportunity to once again introduce our family of revenue generators. During the quarter, we started to see some positive traction from our new internal referral system that's providing many leads directly to our revenue generators. We are highly optimistic that our continued focus will drive increases in our non-interest income category moving forward. Turning to slide 16, you'll find our operating non-interest expenses. As you can see on the slide, we are maintaining our level expenses and are continuing to remain focused on expense control. During the quarter, our non-interest expenses have increased slightly. Some of the variances were our salary and employee benefit expense decreased slightly for the quarter, primarily related to salary cost deferrals for the PPP loan originations. Our data processing and technology expense increases were related to pure pricing adjustments from our core processor and other technology-related expenditures. Our other expense category had an increase of $578,000, with the majority of this increase related to our strategic investment in a startup fintech company focusing on technology in the digital savings app space. Offsetting these increases were decreases in both our professional fees and amortization of intangibles, where the previous quarter had a higher level of expenditures. Looking forward, our forecast for the second quarter is having non-interest expenses around the $20 million area, with salary and benefit expense around the $12 million range. The reason for the increase from the prior quarter guidance is primarily attributable to the salary and expense run rate for the eight-person Gulf Coast lift-out team and additional expenses related to the company's health insurance premiums and technology-related spends. Before we move to the next slide, let's touch base on taxes. Our income taxes for the current quarter reported an effective tax rate of 21.5%, which includes tax benefits derived from our continued involvement with the State of Tennessee Community Investment Loan program and, to a lesser extent, the benefit from adding additional BOLI income. We are forecasting our effective tax rate of 21.5% for the second quarter of 2021. Moving on to slide 17, we look at our deposits. As we previously indicated, we have seen significant growth in our deposits. Our overall composition of deposits have continued to evolve, with time deposits currently making up 17% of our deposits. When compared to the same quarter last year, we had our time deposits making up over 30%. Now to deposit earnings. We had another fantastic deposit quarter. Our total deposits continued to accelerate during the first quarter with an increase of almost $233 million and ended the quarter over $2 billion, up over 30% from the same prior year quarter. For the current quarter, our non-interest bearing deposits ended at $770 million, up over $92 million, and represented almost 26% of total deposits, compared to 18% for the same period quarter last year. In addition, our money market and savings deposits were up over $154 million, and our time deposits continued to decrease, down $38 million. At quarter end, our broker deposits to total deposits dropped below the 2% level. With that said, I'm handing over the slides to Rhett Jordan, our Chief Credit Officer, to go over loan and credit-related info. Rhett? Thank you, Ron. Beginning on slide 18, our loan portfolio continues to show stability and diversification, with outstanding balances up approximately $105 million quarter- to-q uarter and the overall loan mix staying similar to previous quarters. As mentioned, our portfolio grew by just over $100 million, with approximately $60 million of that being organic growth across our footprint. Our CRE portfolio saw a slight uptick as new projects were started, coupled with continued strong housing demand in our markets. Open marketplaces across our three-state area have been consistently reducing COVID restrictions, and our client base is reaping the benefit of a robust start to 2021. All in all, a solid quarter with continued strong performance in the book. Moving to slide 19. While we saw our loan outstandings realize solid growth in the first quarter, our overall credit quality metrics continued to perform very well. Our NPA ratio saw a mild improvement to 0.29% from 0.31% at year-end 2020. Net charge-offs for the quarter were 0.01%, and our over 30-day past dues trended similar to our fourth quarter 2020 results. Classified loans were 0.39% of total loans, down from 0.44% at year-end 2020. Overall, a continued strong quarter in credit quality metrics. We're also excited to report that our overall portfolio has returned back to near full normalcy from COVID-related modifications, and we ended the quarter with only 0.07% of our loan portfolio still in a COVID-modified status. Just a few unique cases, with 100% of our hospitality and restaurant portfolio back to a non-modified status. From a peak of nearly 25% of the portfolio in second quarter 2020, this is an accomplishment we are very proud of and is a result of tremendous effort, innovation, dedication, and teamwork on the part of our clients and our associates in navigating never-before-seen waters during the 2020 operating year. Overall, our asset quality continues to demonstrate solid metrics overall and stay in line with best-in-class levels. Our outlook is positive, and we expect our historically consistent performance to continue in upcoming periods. As for our PPP loan portfolio, we continued to see expansion of our forgiveness applications during the first quarter, while also realizing strong volumes in new applications for round 2 of PPP stimulus. As noted on slide 20, by quarter end, we had successfully processed and posted forgiveness payoffs on approximately 478 applications for just over $82 million in balances. We ended the quarter with about $218 million in balances remaining from round 1 advances, roughly 37% of our originated total, and expect the forgiveness trend to continue with a reasonable pace into the remainder of 2021, especially as funding for round 2 reaches capacity. In addition, as Billy mentioned, we have seen a strong volume of round 2 PPP production thus far, having originated 1,231 loans for just over $119 million and approximately $5.5 million in fee generation. This round has been a little more heavily oriented toward existing client applications than round 1, but still a reasonable mix with approximately 79% of fundings to SmartBank clients, 21% to prospective relationships. About 70% of borrowers in round 2 were repeat borrowers, having also received loans in the initial PPP issuance. Though not as heavy a volume as round 1, round 2 PPP still has been a very strong exercise in providing continued support to our client base through the pandemic and a solid revenue production effort for the bank. Now I'll turn it back over to Ron to walk you through our allowance positioning for the quarter. Thanks, Rhett. Let's move forward to slide 21, our loan loss reserve. As Rhett had indicated, we have continued our great stats for our credit quality. For the current quarter, we did not require a provision and had our allowance at adequate levels. We did utilize allowance to accommodate organic loan growth, but that was offset by both the improving economic environment within our footprint and other qualitative factors, including having most of our COVID loans going back to regular payment schedules. At quarter end, our allowance for originated loans, plus PPP loans, was at 0.93%, and our total reserves for total loans, plus PPP loans, was at 1.46%. Going forward, we will adjust our allowances needed to accommodate the current economic and credit conditions. Moving on to slide 22, our capital position. Our capital ratios remain strong, very consistent with the prior quarter, and keeping up with our significant asset growth. During the quarter, we had $900,000 of cash dividends paid, and we repurchased almost 60,000 shares of common stock for a total of $1.2 million. We have recently suspended our share repurchase program due to our recent merger announcement. At our current levels, we are well-positioned. Relating to our merger announcement, our pro forma capital ratios remain strong and above well-capitalized, and we are not anticipating the need for additional capital at this time. With that said, I'll turn it back over to Billy. Thanks, Ron. Thanks, Rhett. Really appreciate those comments. As you can hear, just a great quarter for our company. As Rhett alluded to, our markets are all performing extremely well. Growth and pipelines very equally distributed across our markets, and we feel very bullish on growth over the coming quarters. I would edge our growth trajectory up from previous quarter guidance between our markets being very robust, benefiting from strong population inflow that we believe will continue for some time to come, and the new team members that we've added. I think we can move into the high single- digits on loan growth for the coming quarters and the remainder of the year. Some headwinds with payoffs and pay downs as clients are holding, again, higher levels of liquidity, but our sales team is doing a nice job of keeping the deal flow. Ron mentioned a few of the headwinds with some of the continued margin pressure, but we have purposely held these higher levels of liquidity and cash. We believe this is the correct approach for our company, even if it does drag net interest income slightly for a couple of quarters. Our confidence in our ability to grow loans is strong, and we do think the margin will level out in the coming months and allow us to take a look at these levels of liquidity and determine the correct utilization strategy. This Sevier County Bank deal, when properly executed, and we will properly execute it, is going to be a big win for our company. The synergy case, coupled with a credit expansion marketing team in Richmond, Virginia, has outstanding upside. This transaction is anticipated to close in third quarter with a Q4 conversion. The lift-out I discussed earlier is something we would like to do more of. Our size, scale, and earnings trends now allow us to do these types of needle-moving plays. While we continue to explore strategic M&A, you will see our company now pivot to an even more stronger discipline focus on the organic front. Moving forward, we will look to take more of a deliberate focus on this strategy. We are positioned extremely well to be opportunistic moving forward. I'll stop there, and we'll open it up for questions. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speaker phone, please pick up your headset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Stephen Scouten with Piper Sandler. Hey, good morning, everyone. How are you doing? Good morning. Morning. I appreciate all the color on the new team lift-out and the slide in there. That's great detail. I know, Bill, you said kind of taking up that loan growth guidance to maybe high single digit there. I'm wondering with that team in particular, if you could frame up for us what was the size of their overall book, where they're coming from, and what you could expect from that team over maybe the next three years or so as they ramp up. Yeah. Stephen, our projections for these folks are really pretty bullish. I think their total books that this team manages, somewhere in the $400 million-$500 million range. I think they had also been hamstrung a little bit with some areas that they couldn't focus on with their previous employer. We really feel like that we can kickstart over the next couple of quarters really well. Our pipelines, they've been with us now for just a few weeks, and we're already generating wealth about pipelines of near $40 million. We are extremely bullish on where we can take this group. As far as what we think over the next couple of years, probably yet to be determined. We know it's going to be good. I can't tell you how excited I am to have this team in our company. It's a perfect fit for our business model. Diversifies us in the Middle C&I. They got a much stronger C&I focus than what we have seen in some of the folks that we've had in the past. They also have the ability to do some nice real estate. We did Murfreesboro about 18 months ago, and I think our Murfreesboro lift-out probably got overshadowed a little bit by COVID. That has proven to be extremely beneficial for us. Those folks were added right before really COVID cranked up, so they were a little muted in 2020. We're seeing some of the growth that we're seeing this quarter is directly resulting from that team as well as others throughout our footprint. I think we'll be able to start strong and then be able to get these folks accretive to income within just a couple of quarters and very bullish on where we can take it from there. Okay, great. That's helpful. Then maybe kind of two questions around the NIM. I'm wondering, one, what kind of drove the decline in loan yields ex PPP plus accretion? It looked like that was down about 23 basis points. Just kind of wondering where new loan yields are coming on for new production, also where you would expect this incremental securities investment that you were talking about to come on at from a yield perspective. Yeah. This is Ron. Yeah, appreciate it. That's a good question. The 20 basis points, again, was distorted because we had an elevated amount for Q4. Our new loan production, I think we're, and Rhett, you can confirm this, we're probably around the 375-ish area of what we're putting on. The bigger driver of this is, again, the PPP participation is weighing down, it's skewing our loan yields. It's hard just to pull that out and say what it could be without it, because there's so many levers involved with that. As far as the bond repurchases, we have not solidified what area they'll be in. This is something that we're just kind of kicking around ALCO right now. There'll be more to come as we progress in that area. Okay, great. Maybe just one follow-up clarifier. On the insurance revenues, is that like a one-way sort of item, or was that life insurance? Is that kind of a one-time deal within the insurance line item? Yeah. More one-time, Stephen. More of a one-time. Although we're looking to do more of that product, seeing some good opportunities. It's probably not recurring at that level. Got it. Perfect. Very good. Thanks for the color, guys, and congrats on all the exciting news. Thanks. Thanks. Appreciate it, Stephen. Appreciate it, Stephen. The next question comes from Brett Rabatin with Hovde Group. Good morning, guys. This is [Ben] going out for Brett. Good morning. Hey, good morning. I just wanted to do a quick follow-up. The high single-digit guidance that is inclusive of Gulf Coast but excludes PPP and Sevier County, right? That is correct. Okay. If you think about the loan growth itself that's kind of filling in a little bit more, are there any types of loans, like loan categories, that you are feeling more comfortable with today or that we should expect going forward? I know that construction costs were the reference, so I think that might be a little bit slower later in the year. I was just trying to think of just how the loans hopefully in book might mix out by the time we get to the end of the year. Yeah. Rhett, why don't you want to touch on that? I don't think we're looking to really take one sector over another right now. It's still fairly evenly distributed. Do you want to comment on that? I would say, we don't anticipate the overall mix to look a whole lot different as we go through the balance of the year. Yes, construction costs are up, but we still have strong demand for housing. Really, we're seeing solid demand for residential housing, multifamily. It's across the footprint. The other is, that I would point out is, you mentioned the Gulf Coast lift-out. We also, between that, our Murfreesboro marketplace, and we're also seeing a lot of good activity in our Southeast Tennessee marketplace in C&I. We think that's an area that we'll begin to see some additional demand as companies kind of get their feet back under them, and they're looking to redeploy some of this capital they've accumulated. Gotcha. That's really helpful. If you look at kind of the PPP balances across the entire banking spectrum, there's a wide variety of how many have gone forgiven and how many are still yet on the books in terms of percentage, and especially with those two programs. I was wondering how you guys think about the forgiveness of 2020 and then 2021 you've been doing, you start to see any come off the book in the second half of this year. I know it's not necessarily up to you, more so the clients and the SBA, I was just kind of thinking how you guys are planning and looking at that over the next two quarters or so. Yeah. I'll take that one. This forgiveness process has been challenging for modeling, as you well know. I think everything seemed to have lined up. For the 2020 vintage, we have about $218 million left in that vintage. We expect about 55% of that to get forgiven in Q2, another 35% in Q3, then the remaining $1,050 million that's there, we're probably just going to keep that to the end of the program, which is a two-year cycle. For the 2021 vintage, we think there'll be a lot more expedient. We have $119 million, $120 million in that bucket. We kind of modeled a Q2 of 10%, a Q3 of 16%, then Q4, I think that's going to be our bigger quarter, probably about 29%, 30% of the forgiveness cycle for that, then the trailing will go into 2022. We'll have the majority of this forgiven, we believe this year for 2021. Got you. Okay. Thanks. My last question is a little bit more hypothetical, especially with all the noise going around the banking space. Being that you guys are kind of kicking up a gear here in terms of overall growth, I was wondering how you guys are approaching your loan-to-deposit ratio, especially with this Gulf Coast and Sevier coming on for the end of the year. I get liquidity is important with the deposits coming in and out with this massive influx across the banking space. If you were to strip away all the noise, are there any guardrails that you're using internally to manage to? Yeah. I wouldn't say we've got, I think our guardrails have probably been the ones where we always manage to. We typically like to have loan deposits. Typically, we've been in the 90% range. Obviously, we have had success in being able to grow our loan portfolio and grow funding at a pace to keep it around that 90% type level. Obviously, the liquidity that's in the markets now, I think we're all trying to figure out how sticky that is. As you go through the PPP forgiveness cycle, folks get those loans. Where will that liquidity go? How will it be spent, utilized, invested? I think for us, that's one of the reasons we're comfortable holding a little extra cash right now, is that, let's see how the next couple of quarters play out. Hopefully we can get back to a little more normal loan-to-deposit level within the next year or so. That's what we'd love to see happen. Okay. Sounds good. Congrats on a great start to the year. Also bottom two. Thank you. Thanks. The next question comes from Kevin Fitzsimmons with D.A. Davidson. Hey, good morning, guys. Good morning, Kevin. Hey, I'm just curious on the focusing on organic growth, Billy, that you emphasized there. Is that just a recognition that you've got a deal pending, and you're going to be focused on integrating that? I guess, what I'm wondering is why is it a possibility to be open to further M&A while this one's even pending or still being integrated, it's fairly digestible? Is it just acknowledgment that, hey, that was more of a specialized situation, and you don't necessarily have the currency to go out and pay what expectations are right now? Maybe that's not a good assumption that you would have the green light to do additional deals while this one is still going on. Just curious on the thought process on focusing organic, exclusively. Yeah, I'm not really worried about the currency price. We can't control that. We keep performing, the currency will take care of itself. We think we have good regulatory relationships, we've not ever been given any challenge there, I'm not really worried about that. I just think that the size we are now at $4 billion, probably when we get SCB in here, we don't have to do another deal. We have got plenty to focus on here internally. We drove hard this last couple of quarters on TBV, our ROA, ROE, and EPS. Man, if we keep focusing on those, we will be just fine. I will say that the lift-outs are a real focus for us, we think we have a hyper-focus on that and that potential. The SCB deal was a great deal for us at 60%+ cost saves. Golly, I can't say if somebody gave us another one of those. That was a great fit, good for us. No, we want to be internally focused. Yeah. I'll add, Kevin, to talk about green light, we've not had any. We could definitely integrate another. We could do another deal if we wanted to do another deal. Our team's very capable of handling that. I think there's a couple of things. I think that is, Kevin, we've said very clearly over the last several quarters that we are moving to a much more disciplined focus on our financial metrics. We've gotten a great scale. We've built a great platform. Now we've got to leverage it. For some reason, the market just does not get our story. When you see us trading at the levels that we're trading at from a multiple standpoint, it's crazy. It's absolutely ludicrous. That said, we're not going to go out and overpay for a deal. We never have. I think for us, I think the best thing for us to do is just focus on making money and growing EPS. I think you'll see that come to fruition over the next few quarters. Sooner or later, all you analysts are going to believe our story and buy into it. Well, I believe. We know you do, Kevin. We appreciate it. I don't know who these others are, but anyway. Thank you. I guess to be fair, Billy, the focus for years was getting scale and growing and less about putting up the profitability. Now you've got to scale to a point that now it's time to focus on delivering that higher level of core profitability. Maybe everything just takes care of itself with that, with the multiple and everything. It's going to be less muddled, in terms of what the profitability is you're delivering versus what it could be, I guess is how it's probably fair to look at it, right? No, I think you're spot on. You're spot on. It is. We've built a platform. Now we have to deliver. I think that's what the changes that we've made over the course of the last 12 months with upgrades in finance talent, upgrades in tech talent. When you look at our company, we look a lot different than we looked 24 months ago. In a great way. I think a lot of it too, going back to the lift out, you've got to have an earnings stream that allows you to make the types of investments to really make these needed move employees. Now we've got that. We can afford to make an investment in a team that might have a slight drag for a couple of quarters. I think the focus there, I would rather take $0.02 of dilution on that even though I think we are always open to strategic opportunities. I think you're going to see us focus really hard on execution over the next little bit. Hey, Billy, on the subject of the team lift outs, I'm just curious if you can share, with this situation, was it a case of them coming to you or were you really on the hunt for a team to put in place in that market? Looking further out, are there other markets. It's a fairly broad geographic spectrum right now, looking at the franchise. Are there other markets where you would look for a similar kind of situation? Yeah, definitely. We're on the hunt for those opportunities. I've said even probably a little more so now coming out of this than we have been. I think we've always been open to look to add sales power. I think that's a big piece of it. This team in particular, it was a little bit of both. It was some folks we had met and just great timing from our side and their side. I do think there will be opportunities as you continue to see more consolidation in the space above us. I think it will provide some great opportunities for a bank like ours that is nimble, that's flexible, that can still do larger deals now at this point, as Miller said, knocking on the door of $4 billion post SCB. We can deliver a lot to really good teams that want a great place to work. Yeah, it's success breeds success, as you well know, and it's a combination of both. We're aggressively searching, and we have been fortunate enough to field a couple of calls inbound that they are searching us. Good combination. Okay, great. One last one for me, I apologize if you guys have talked about this before, and maybe I just don't recall it. The fintech startup, can you provide a little color or background? Is that going to require additional spend or just any kind of background on that? Thanks. Yeah, that startup is in Chattanooga, and it's not really a startup. Couple-year-old company. We don't think it'll require any additional spend on our part. Very strong banking team that's running it, bank operator as CEO. We understand it. Great opportunity. Got a good value on it, and we're learning a ton about that space, and it has been and will be a good investment for us. Okay. Thanks, guys. Thanks. Thanks for the question. The next question comes from Feddie Strickland of Janney. Hey, good morning, guys. Good morning. I guess I just wanted to round back to, it sounds like hospitality and restaurants is broadly not really an issue for you guys. Is that correct? Just between the Panhandle and kind of the Smoky Mountain area from our discussion last week, it sounds like things are pretty good for you guys, relative to what everyone else is saying. I'll interrupt you. Absolutely. You need more seasoning. Yeah. Come to the coast or the mountains, and you'll see. That's where a lot of that sector is for us, and both those markets have just been absolutely on fire, really over the last six to eight months. In particular, the start of the year. Got you. Kind of along those same lines, I'm just wondering what you're hearing from customers just in terms of business sentiment incrementally. I gather cautiously optimistic is probably the phrase, but is there more optimism, I guess, than last quarter? Yeah. I would even drop cautiously right now in our markets. Feddie, I know different markets and different geographies feel a little bit different, but when you look at Knoxville and Chattanooga and Murfreesboro and Huntsville and Mobile, Baldwin. When you look at Arizona's Tucson, Mesa, these markets where we've got some really great team members, we're just seeing a lot of optimism. I mean, Rhett, you're in the markets frequently. You want to give any color on that? I would say it's a very optimistic outlook. I mean, the only, I would say, repetitive challenge you hear, and it's across industries, is finding personnel. That's the only thing that if there's anything that is causing any degree of delay in customers really being able to just take off like a rocket like they think they could, it's finding the team members they need to be able to do it. Got you. Interesting. Thanks for the color, guys, and congrats on a great quarter. Thank you. Appreciate it. The next question comes from Catherine Mealor of KBW. Thanks. Good morning. Good morning, Catherine. Good morning, Catherine. All right. I've just got a couple of detailed questions or follow-ups. My first is just on the net interest margin guide for this quarter. I wanted to confirm that the 320 is reported, not excluding PPP and accretable yield. Yes. The 320 is all in. The big difference between last quarter and this quarter, really, we're expecting about $1.6 million less of the combined deal accretion and PPP accretion. We were elevated to last quarter. It is all in combined. Okay. Yeah, that makes sense. The accretable yield was high. I know you gave the guidance for accretable yield for this upcoming quarter. Is that a good run rate to use moving forward? Maybe the bigger question is, can you minus the discount that's remaining and the pace that you think that will come off in the next, call it two years? Yeah. Our run rate actually is pretty stable over the next few years. I think, I don't have that in front of me, probably about $12 million, $13 million left in that bucket. We're probably consistent. We'll see $400,000-$500,000 range. I believe Q3 will probably have a little bit of elevated amount, just the way some of the loans are reacting in the model. Pretty much, unless we see prepayments and something that happens to the loan pool, that's pretty much a consistent run rate for the, I would say, near future. How's that? Okay. Yeah. No, that's great. How about on, I know you gave the expense guide. Within that, the data processing was up this quarter. Was that just due to the fintech investment and should that normalize to kind of the $500,000 - $600,000 kind of range we saw last year? Or is this a new run rate for data processing? Yeah. It was kind of a little bit of both. We did have expenditures. Last year we indicated that we did enter into a new agreement with our core processor, and it was done on a tiered approach. Once we hit the $3 billion mark, our DP costs to the data processor did go up. Our run rate pretty much, to give you an idea, in our expense category, we're probably looking for our run rate to be about $1.6 million going forward. Now, that changed because we not only have data processing, we included our loan out and we included technology spend. We decided to kind of rejigger that account to include all the data processing technology and software expenses in that. Data processing was just a piece of that whole puzzle. I think the $1.6 million will pretty much be the new run rate going forward in that category in totality. Great. Okay. Awesome. Maybe this last is kind of thinking bigger picture, thinking about the margin. I know there's so many moving parts with the excess liquidity and increased loan growth, just kind of big picture, how do we think about your asset sensitivity position once we get to a better rate environment? I don't think at this point, we're certainly asset sensitive with our upcoming acquisition. We don't see that changing that much. We'll get a little bit more, but we want to bring it down to the neutral position. Honestly, we're not going to see much change or significant change. Pretty much staying where we're at. Again, we'll reassess this quarter- by- quarter as we go, but we're not seeing any wholesale changes on our part with that. Great. Okay. Great. Thank you. Thanks, Catherine. Thanks, Catherine. Our next call comes from Jordan Ghent of Stephens. Hi, good morning. I'm in for Matt. I had a question about the delinquency loans. They ticked up a modest amount in this past quarter. Can you guys give any color on that? Thanks. Yeah. Do you want to touch on that? Jordan, I'll be happy to do that. That tick up was related to one transaction where, make a long story short, we had a loan that matured in our book. It is related to a transaction where it's a private entity that has some tax advantages associated with this particular piece of real estate. They were required to get approval from a local municipality's tax board, and due to some issues at the municipality level, they were tremendously delayed getting that board to convene and make the election. For our client's benefit, we allowed that loan to just stay in a matured status. It hit the 90-day mark. That is why it ticked up for purposes of a non-accrual and hit us a little bit in that capacity. That will be resolved expected this month. There's no credit risk in that transaction. Strictly timing of the board meeting. Strictly timing. Okay, perfect. Thank you. This concludes our question- and- answer session. I would like to turn the conference back over to Miller Welborn for any closing remarks. Thank y'all for joining us. As y'all can see, we continue to progress. We're happy where we are this quarter and the results we're putting out. Thanks for joining us, and I hope you all have a great rest of your week. Have a good day.