I'd like to highlight a couple of specific accomplishments. First, we've been particularly focused over the past few quarters on managing growth within our capital structure, and I'm pleased to report that our results are again accretive to tangible, excuse me, to TRBC to TCE, and TBVPS, even factoring in the headwinds of additional AOCI. But not counting the impact of AOCI, we grew a tangible book value per share, $0.67, annualized rate of 20%. We slowed loan growth during the quarter to 1.7% annualized, which reflects some slowing demand and continued selectiveness in our part, as well as unusually high paydowns and payoffs. We do still expect full year 2023 loan growth of 7% to 8%. I'm most pleased to report growth in deposits of $176 million and about 14% annualized in the quarter.

And we accomplished this without causing material damage to our margin. Core NIM was down three basis points, but that factors in again a $455,000 loan recovery from a previous charge off, and the decision to hold an additional $150 million in excess liquidity at the cost of six basis points to the margin. Factoring out those two elements, our core margin would have been flat, even while we demonstrated continuing improvement in our loan-to -deposit ratio. Asset quality continued to improve in the third quarter with nonperforming loans as a percent of total loans declining to 0.33%, down from 0.36% in quarter two. The improvement was largely attributed to the resolution of two non-accrual loans through current period charge off to $2.4 million.

Both loans were previously assessed for credit losses and fully reserved. I'd like to point out a few branch movements as we continue on our ongoing efforts to optimize our footprint. During the quarter, we opened our fifth Dallas Fort Worth location with a new full service location in McKinney, Texas. As they're recently for the ribbon cutting, and our team is very excited about the opportunities as we expand further into North Texas. With locations in McKinney and Frisco, we are present in two of the three fastest growing communities in Texas. We also turned our LPO in Ruston, Louisiana, another fast growing community, into a branch and moved a branch to a more growth-oriented part of Monroe, Louisiana. Finally, we also sold our Leesville, Louisiana location, recognized at $932,000 gain on sale, attributed to the divestiture.

I'll note we have added a couple of new slides to our deck that I think would be worth your focus and enhanced a couple others, particularly around our successful M&A track record, loan repricing opportunities, and composition of our CRD and office portfolios. One I want to particularly point you towards is found on page nine, which speaks to the consistent improvements we've made in various earnings-focused metrics over the past five years. EPS has increased by 81%, net income by 292%, while core efficiency has improved by 571 basis points. Importantly, we show tangible low value per share after adjusting for AOCI, growing by 33%, even while we have made the investments necessary to grow overall asset size by a factor of three over that time period, through acquisitions, team lift outs, and strong organic growth.

This growth is required investment, and those investments are paying off. We aren't yet where we plan to be, but we are clearly headed in the right direction. That concludes my big picture remarks. Thank you so much for your time. And I'll now turn it over to Greg for his commentary on the quarter and then look forward to opening the call up to Q &A.

Greg Robertson: Thank you, Jude. Good afternoon, everyone. I'd like to spend just a few minutes reviewing our Q3 highlights, including some balance sheet and income statement trends and also discuss our updated thoughts on the current outlook. Third quarter non-GAAP core net income and EPS available to common shareholders, $17.96 million and $0.71 a share. It came in better than we expected and was driven really by number one, expense management, and two lower loan loss expense and continued stable credit trends and slightly lower loan growth, as Jude mentioned. A stable net interest margin is slightly better than expected loan discount accretion. Before I dive into the more of the specifics of the quarter, I'd like to take a moment to call out a few of the items that might not be readily identifiable, but are really important to put context into the quarter.

The third quarter GAAP net income and EPS available to common shareholders was $19.1 million and $0.76 a share and benefited from two fee income related items that Jude mentioned earlier. The $932,000 gain on the sale of our Leesville location and as a side note, that location we sold those deposits for a 7% deposit premium. And also the $517,000 gain on extinguishing of the Texas Citizens sub debt that we acquired in that acquisition. Excluding these items, our core non-interest income was $8.4 million, this $8.4 million figure is a fairly clean run rate figure for the quarter. And we see that as a stable figure for a run rate for ‘24. A little bit of the explanation of that is that run rate for ‘24 is stable because we experienced in ‘23 some one -off one -time income items for that that we don't feel like that will be repeatable in ‘24, but we do feel like noninterest income will grow throughout the balance of the year to make that stabilized.

Third quarter GAAP noninterest expense was $38.6 million and included just $2,000 of merger related expense. However, included in this $38.6 million was a figure of about $500,000 in MasterCard rebate, which we don't expect to reoccur going forward. The third quarter noninterest expense also benefited from $200,000 unusually low in FDIC assessment and $200,000 unusually low other noninterest rated interest expense items. The Q3 run rate for noninterest expense figures closer to $39.5 million as we expect the FDIC assessment and the $200,000 lower expense items to kind of normalize going forward. As far as the ‘24, we feel like the noninterest expense will be experience a mid to high single digit run rate going forward for the base case for the balance of ‘24.

Spread income also continued to grow and be strong in the performance in which we attributed to the long discount accretion of $2.4 million coming in $500,000 higher than expected and as well as the decision to hold on more balance sheet liquidity that Jude mentioned earlier boosted our net interest income. I'll provide more color on these dynamics a little bit later in the discussion on the margin. On the surface, the optics of credit quality appeared mixed but as Jude mentioned, we feel like that our credit quality is stable and improving with those two previously discussed charge offs that we discussed in prior quarter prior to now that we're fully marked and we resolve them during this quarter. As far as the balance sheet, the balance sheet tends to remain healthy during the quarter and loans that were held for investment grew about 1.7% annualized, a little lower than expected that were but also consistent with our strategy of loan growth and as Jude mentioned we feel like that we'll round out the year at about 7% to 8% in annualized loan growth.

We are proud of the fact that our loan growth for the quarter was really headlined by a continued loan yield of 8.6% on new and renewed loans for the quarter and that is helping us continue to hold the margin in place. Deposits increased as Jude mentioned to $176 million. If we include the Leesville deposits that we sold in that branch, that number would be closer to $200 million in deposit and gross deposit growth for the quarter. The $157 million in the new deposits that we generated through a couple of CD, different CD and money market specials during the quarter were very well received by the customers and our production staff did a really good job of pushing those through. During the quarter, another highlight is we were able to generate about $43 million in total new noninterest bearing deposit accounts.

That added to our $14.3 million in the month average that we've been operating on for the last few months. We also managed to open $82 million in non-maturity deposits during the quarter at a weighted average, an offering rate of 4.25%. The September numbers for offering rates for all non-maturity interest-bearing deposit accounts was 4.36%. Noninterest-bearing deposits remains a challenge and we will continue to put our efforts into that area as we move forward into 2024. Our noninterest -bearing deposits ended the quarter at 27.2% for the total deposits. Capital increased nicely during the second quarter as Jude mentioned, TCE to TA up 3 basis points and total risk-based capital up 22 basis points for the quarter. The tangible value of $0.16, ex AOCI.

Borrowings, as we mentioned earlier, decreased during the quarter about $152 million and that was really as a result of our deposit gathering campaigns that allowed us to pay off all of our short-term overnight borrowings with FHLB, which were currently priced in the 570 to 575 range. We also made, as Jude mentioned, the decision to hold the extra $150 million on liquidity on the balance sheet as we continue to take advantage of the BTFP funding program earlier in the year, drawing down $300 million of that fund early in quarter one. That $150 million that we carry is really doing two things for us. It's continuing to hold liquidity levels in a range where we feel comfortable there in this time and also preparing us to be able to pay off that maturity coming forward in next March.

Q3 GAAP net interest margin was 3.61% that included $2.4 million in loan discount accretion, which was about $500,000 higher than what we expected, but we expect that accretion to drop back closer to $1 million quarter run rate. The Q3 core net interest margin excluding the loan discount accretion contracted three bps to 3.49 as Jude -- from 3.49 to 3.46, as Jude mentioned earlier. He was alluding to the adjustments for the quarter and also the six basis points drag that we are experienced for holding that excess liquidity. Looking forward into Q4, we expect the margin to remain flat, just like the down, maybe a single basis points due to modest continued liquidity bill and continued funding pressures. Little color on the second point here.

We have over $100 million in lower cost FHLB borrowings that mature early in the quarter. And we will work on refinancing a piece of it and paying down a piece of it so that may negatively impact the margin as we go forward in the quarter. We, as I mentioned earlier, we are very proud of the production side of the bank with our continued loan yields coming in on new renewed as average 160 and our deposit gathering that help us maintain our margins. And now to cover some of the betas from the quarter, I will turn it over to Matt.

Matt Sealy: Sure, thanks. So funding betas did increase during the quarter as expected. Cycle to date total deposit beta and interest bearing deposit beta was 41% and 56% respectively, which was slightly ahead of what we had anticipated by about 1%. And this is really functioning better than expected deposit growth during the quarter. Looking ahead to Q4, I'd expect to cycle to date deposit betas to increase roughly 4%, which is down slightly from the year-to-date quarterly beta increases of about 5% to 6%. So still increasing, but at a slower pace. On the loan side, we continue to hold cycle to date betas on new loan yields at about 85%. We are at 84% for Q3 and expect to maintain. This reflects a weighted average new loan origination yield of 855 during the quarter. And with that, I believe that concludes our prepared remarks and I think we're ready to open up Q&A.

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