SouthState (SSB) 25 Jan 222021 Q4 Earnings call transcript

Company Profile

Participants

John Corbett	Chief Executive Officer and Director
Will Matthews	Chief Financial Officer
Steven Young	Chief Strategy Officer
Robert Hill	Executive Chairman
Doug Williams	President and Chief Executive Officer, Atlantic Capital Bancshares
Pat Oakes	Chief Financial Officer, Atlantic Capital Bancshares
Stephen Scouten	Piper Sandler
Michael Rose	Raymond James
Jennifer Demba	Truist
Catherine Mealor	KBW
Christopher Marinac	Janney Montgomery Scott
Brody Preston	Stephens

Call transcript

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Operator

Hello, everybody. And welcome to the SouthState Corporation Fourth Quarter Earnings Call. My name is Melissa and I'll be your operator. [Operator Instructions] I now have the pleasure of handing over to our host today, Will Mathews to begin. Will, over to you.

Will Matthews

to quarter welcome earnings and morning SouthState's XXXX fourth call. Good me Will and call Matthews is on Steve and Corbett This John joining this Hill, are Young. Robert us Atlanta Williams quarter. are Doug Oakes some of Pat also on and joining to their provide color Capital for will be will remarks we will prepared that this call format open it we then and up The provide for questions. both announce earnings XXXX. to issued for releases press companies Yesterday evening, QX, Relations presentation slides call that we to refer today's Investor posted will on on our also website. We've

safe begin include the we Litigation make the remind Any to are I press the for information and the you that to safe Before may more subject XXXX. presentation disclaimer release Securities the our want forward-looking such us. remarks, risks may comments Private we forward-looking make affect Reform and of we which meaning may language and Act harbor within uncertainties, about statements Please in rules. statements review harbor forward looking of

the Robert over turn Now to Chairman. Hill, I'll call Executive

Robert Hill

toward sign path company was quickly always and integration. Thank This you, move discuss of the post move growing one its best to I've good quarter returned we of was that how of integration for felt you of merger fourth the our today thank XXXX. the our where And how call a for joining the to year execution. transition company Will was progressing morning. quickly customer and base

each guiding We're share immediately. growth excellent growth. markets. profitability talented And seeing in see almost bankers soundness, can making great adding market progress our into company. and to momentum moved customers, principles, the mode grow opportunities team and adding Our building you of the We're in certainly and

call is us areas. will in strong I this year the and we the where over believe the now sheet achieve of make XXXX growing bank. I'll balance help progress all significant and Our focus three profitability to year internal potential John. the any of will turn remains strength very further

John Corbett

Good doing everybody. and hope families I morning, Robert. you your are Thanks well.

many challenging way our bankers a team As on the of we it And in reflect But last on our largest proud the conversion I'm was growth. history the conversion was soon as year complete, successfully as ways. turned prevailed completed and in our summer. XXXX, the

We year billion of continue pandemic a new at see momentum step billion originated in perspective, XXXX, back as cycle. past lot we of the accelerate to in originated put $X.X this in out we loans southeast positive This and $X If look loans. that billion and deposits. we and in about XXXX. about the before we XXXX roughly in $XX To in pandemic

as with Federal the the approvals received both but fourth for housing the And annualized in drove North single cap levels the the Carolina, demand related a furniture, record migration lock So is few entirely quarter growth the production six clear. for and that released Census XX% states from the for XXXX. of Federal just Georgia, on the population But have deliver driving We're resulted elevated I'll payoffs. loan loan we the points. all compared higher construction, in Capital ranked rates. two sheet. a months, growing sold X% is to battle XX% four third surprising is the latest to basis up materials. Bureau historically population the including and in six appliances won the the acquires, volume gain Midwest increased in fourth down real spring, as weeks and Northeast, liquidity is wisely placing update building trend pandemic, demand behind so to our South in Reserve monetary from commercial to as next population new now Atlanta the we to A the we're last Florida products went quarter give operating SouthState and the OCC continues in XX% another population couple XXXX housing or the Deposits in That waiting After fourth growth in of originations from followed we and better the XXX,XXX for quarter. the rolled of approval. loan Atlanta guided digit on XX% we're we out balance hopeful onto loan XXXX guidance. saw number quarter. you past growth South annualized and to flow fastest results even from half Reserve the continues SouthState the our back in here X.X% excess fourth in third the little Texas, our quick up excess Doug of XX% mid growth sold people. liquidity Many to trends quarter $X.X strong costs comment were conclusions low at lead growth two our billion. high to they deposit quarter country. at markets to the Not growth for their growing many And loan to the vaccines a lending fastest for businesses in The system that clients valuations than loan The Atlanta as Capital, continue Carolina like the Fed's on fourth in in a the all the West policy And well saw population by shareholders. and That from and XX% of lost years. the new outstanding America. quarter, We've subject really estate footprint timing. just close ago, Capital, to gained level accelerate in to loan during South the for

a Cash that XX% our of And about a XXXX, have We've sheet. about our rate balance excited we additional we're to into now opportunity so you move excess and patient color. revenue over up growth, our turn higher environment intentionally into with and an give I'll higher real been to we loan accelerating drive makes XXXX. momentum. cash our improving can economy, it As cash. Will he in excess deploy deploying

Will Matthews

Thanks our quarter income of credit we expense, the We interest John. interest I'll trends. the shows as cover quarter. some yields average ex-PPP net for margin, Slide highlights levels, on third The million Loan well income were credit incremental combined provision $XXX up XX net margin best core core accretion for of was reported was in net as had income $XXX $XXX and excluding with improvement noninterest million noninterest growth and QX and losses. drive flat the ever six interest million helped our the to net million and cost income. in loans, and $X points, in interest growth with basis from quarter. deposits

some in we deposit $X.X securities, seasonal to the into be up and loans growth of billion, up ago. billion with the deployed Funds in deposit division tax income $X Although, business more interest approximately on earning for the mortgage or year due some balance $XXX $X.X we half somewhat a clients. Fed to by believe a improvement which in offset quarter from approximately our cash decline of XX. and growth. with asset our remains prior was We cash charge to powder dry the ended quarter from and billion million noted improved be extensive Fourth $X.X quarter's service our third estimate collections, or municipal growth by a quarter year slide and record as sales temporary corresponding million Noninterest temporary quarter sold, from We incomes to and revenue.

QX quarter to growth up billion, the seasonality. the tightening in and almost fourth margins kickers due to pipeline revenue. triggered $XXX factors, incentive of the Slide As being NIE year. of of production of mortgage a was the million one the ending on quarter XX, was which from of to but a led QX loan noted Service decline back charge due Operating strong decline increased had income a and a million of in of number in $X.X from $X.X half waivers

Third noted is slightly were in the other as expense higher categories release.

Turning continue before charge-offs provision yet of charge-offs $X the asset quality million recoveries two net DDA net losses another quarter recorded basis points. of negative to very for loan slide be on noted in as total to XX, with strong a metrics credit, credit our We quarter.

of Given on SX were the reserve X.XX% unfunded and weighted X.X%, the loans, changing stimulus the slightly QX. commitments baseline XX% a for more noted reserves and fiscal XX%, impacts nature Ending slide forecasts for than including the conservative as for we of scenario scenario Omicron, XX. or of of weighting of Moody's

to quarter, the shares, X.XX shares XXX,XXX X.X% approximately repurchased XXXX we front, approximately capital full total in bringing company. fourth the the year or of the On million

ratio, million including approximately Our dividends outlined of and XX. represented as on total earnings $XXX XXXX slide capital payout adjusted repurchases This reported XX% CETX levels a dividends XX% with of and approximately Capital's give return earnings. tangible Ending Atlantic of share Doug approximately was few remain capital close to value I'll $XX.XX. on to it now turn ending was book XX%. strong per quarter. to And over highlights a

Doug Williams

and opportunity you. with good morning, Will Atlanta to Capitol's pleased to this have I'm results fourth Thank quarter you, share

pandemic and Capital related on presentation great my those our teammates for clients the investor to remain merger opportunities we our Atlanta I'd pursue available challenges. website. integration filed and As earnings and uncertainties great another like the our year. of planning, helping night, a on are focused and quarter Despite they release last thank and distractions for

for performing operating new the in and the reported Atlanta $X.XX. per of per growth. pipelines make in loans, Cap related third our are to well are resulting $X.XX results, With quarter, another the share clients earned excluding business $X.XX Those we recorded and of revenue, for were Atlantic quarter quarter merger and investments diluted deposits as solid fourth to expense growth investments XXXX strong compared Capital earnings share Our driving continue future. loan

net Capital diluted of PPP became was excluding year, Loan loan million excluding grew XX% XX%. teams, have the categories for expense the occupied volume million our the grown strong of That was categories. commercial, provision For of a per strong Loan rate points XX% share. loans. a in six these was third public the related full more Since years is estate across average net growth for full than Atlantic was investment earned excluding and $X.XX. particularly from or Pre charge-offs commercial basis loan all industrial for were quarter compound commercial and $X.XX Credit company quality quarter origination owner at the net loans XX growth ago, annualized for excellent, sell real and expense. figure $XX.X banking the year. we $XX.X merger revenue quarter, merger

was assets full at the X.XX% of and For total year percent were assets was the end points. basis to Non percent six as charge-offs loans as of at loans total X.X% net quarter performing compared end X.XX% of XXXX. classified

XX% a have a for Capital average and management built was As based quarter. grew has on negative Since for for including demand last XX% deposits grown $XXX,XXX corporate to six And seen, With and became companies ago, PPP payments compared than service across quarter. volumes, enterprises compound XX% deposits than deposit points grown basis treasury company recorded at we end. million in business and years the average core for strong the focus quarter, have $X.X you've and the fintech rate. fintech deposits credit quarter a of we compounded loans high losses the more during The payments provision average Atlanta sharp charges a allowance franchise. annually. Atlanta XXX more business volume country, Payments at annualized total growth public average

XX% XX% demand on seven For points. the cost of average annualized basis, increased more noninterest year-over-year, bearing of deposits and average deposits. linked quarter averaged The was grew fourth all quarter than bearing total a XX% deposits noninterest average basis deposits

look loan, the to merger ahead portion during our continued Q&A are our with this our of strong I'll morning. pending available expect questions we momentum answer to new robust, deposit SouthState, and your business we As growth. pipelines be call in and revenue

back to Now John.

John Corbett

open excess The pieces go line both at Capital loans invest are the cash the lot growth dry a to population and of come All in the starting Alright, southeast, the powder environment. of to ahead in please thanks Operator, and SouthState rising Doug. growth of together. questions. for in form rate the a and Atlanta

Operator

question today take Scouten Piper first [Operator Instructions] of our from We'll Sandler. Stephen

StephenScouten

Good morning, you How are everyone. doing?

JohnCorbett

morning. Good

StephenScouten

you Yes, can Great. hear Okay. me?

JohnCorbett

us? hear you Can can. we Yes,

StephenScouten

maybe, first me? you that hear On yes, Can can. I

JohnCorbett

Yes.

StephenScouten

Okay, sorry about that.

JohnCorbett

Yes, we can.

StephenScouten

as the liquidity know terms first, curious quarter, of quarter about I'm laid I spoke previous well. I deployment, pace you've I'm had wondering be to moved And they targets in to, you deployment an how about have us the where kind Steve been and out excess with now some So where last there update patient expectations maybe cash. of of think you're terms could give if rates you thinking to in just going? look of

StevenYoung

Sure, investment I securities I we've what Stephen. between so think, Steve. to assets around our be XX%. is Yes, over got XX%, that the somewhere last right, XX% end and several by and think the the It's now year, it quarters, we're of would

about the without powder on think with and sheet, we've all loan and ACBI future, we got today, to this excess is ratio the our As XX%. balance really deposit

amount if of the closer XX loan to they're still liquidity, to do that in XX%, is goal can next to spend dry million years, about excess probably all next our that, that. think from still we we XX%, take months after that'll $X having as ratio said the this that, two the fair and So a deposit

Capital look ratio as that we that, we'll XX% get that it and we big and loan XX%. there. no to deposit the quarter, as investment securities we'll Atlanta the just reinvesting But of picture into so guidance, the in And now, we going have their probably once the put from better in next change there's portfolio mix, think but to integrate middle really towards a opportunistic. And perspective, the right guidance together portfolio, about close at

StephenScouten

that Atlanta to and about in Maybe can of its that? it's talk be think helpful. I as pre maybe clouds kind know we give on of will where a you about inflation kind you here growth that's be numbers, color are expenses think to of and the new think you just can the but any of drivers terms expense can will where how kind that and overall Okay, Capital? maybe what of hires? core basis And you then, XXXX going go in

WillMatthews

the Steven, there Sure, up was a fourth The release. And from the it's legacy that south of items there in few bit a noted are quarter Will. NIE we and quarter. third in

I single recognize our in plan in mentioned, to NIE the that's the our that that in our try inflationary quarter all XXXX hold to to to, subject think we But environment will goal is inflation digits. third be and I do budget. As we're And market. compete in for our certainly call, there's our that's to low plan. have We

up QX up range, bit of that's where at react a from market general to something how in we look with our were in the XXXX. you have if So to shaping that things right accordingly, QX run now. a and QX we rate, But again, bit maybe forces in we'll sort little higher plan but see compete is

Operator

now to James. will Raymond move over We Rose Michael of

MichaelRose

about Thanks for guys. just morning, good slide XX. to taking questions. talk my Hey, I want

When as activity been you nicely do compelling high the volumes a an have the origination it's it that up selling things down But year-on-year, robust been really be issue. Any like to talked think expect when thanks. pay well. and rise? You M&A really loan obviously more pay can rate commentary businesses net downs in at growth? the grown is I as see helpful, about fact and the rates so a we have Doug's obviously, will think pickup that. slows,

JohnCorbett

John. morning. Michael, Good Hey, it's

it's quarter, third year, yes, in For about of that the growth kind your up back of at to we X% X.X% the loan annualized was But quarter. the XX% wound half interesting. this point,

production net Our went our up, went loan growth down. but

about in that of some fourth that. the And the enough, we $XXX payoffs, quarter payoffs And third. large than million looked we our we so and time And did we spent sure more at big analyzing had generational in that get estate operating lot companies real and you go a gains. investors selling list low it's we have of family to businesses, these the record cap at are the multi CRE sold, down rates

think that big big, the liquidity do this the play I So part extra and a rates in interest system. of

be production, could ought we slow producing the if kind we've of to level this of at So loan down. we to digits prepayments single high thought XX% that

stripped I are probably less, cap residential. CRE to drift move are rates to interest on CRE, up, gains going and the have those up rates going And going rates So to prepayments as going there's as to interest be churn portfolios. less be up you're think less in on to so

feel pleased liquidity where level get less interest I digits we're little a into I'm production. of growth in And move real So very system, the loan you with to higher little could it XX% at. single if the rates, easily high

MichaelRose

maybe unchanged can but Will, of if terms addition And know Steve assumptions betas And then just is on and was for helpful. compelling. what that quarter last from you Thanks of slide et impact if in could John. Thanks. year of very don't for I XX, based that ACBI. the for one securities which the some up that's the comment potentially of also initial what or relatively then this because deposit following implies, think the in be I marks, pretty change, deployment, from like Okay, cetera. on portfolio, this terms on scanning

StevenYoung

it curve. Yes, Michael, rates missed. shocking can all sheet it anything so XXX sheet, is this Will is taken time up like static anything follow it's our and basis balance just point And a in for doing securities growing as I that. it's for or points not with Steve, across maybe the But balance

so look the the makes does of XX%. number, when And about income you up go that what net at bank it it is

just or lot you day, XX% are going XX first that's basis you, year, but to the is one how would be points, another Now, about is basis, move a in we points this too and that slide A XXX reprice for XX% that and basis all play directionally have is as tells daily our all then of our XX% variable, what incrementally know, it's floating on that on not on loans note only model. out have a fix. that to around things we and you couple rate

some I franchise, our balance the power slide it. is have about a two, really the a is kind the pretty have well don't sheet we deposit floating lot deposits, in we size. today, piece the loan But asset to XX% in our probably sensitivity checking our most in on go a and of have and a our think within of up are is so that's But drives that our for driver. of that just deposits we we franchise, our the obviously is of obviously, entire environment, portfolio So peers. rate, that Number portfolio normal assets, XX% our and here peers, to probably what back of race normally have cash I important but our of XX% versus of accounts, that detail

that's betas or change a higher advantage XXX,XXX checking X,XXX,XXX where have peers. so and the total stay that's you outperform. than in just And we rates, significant lower when that's And hopefully accounts accounts

of So all is that your into hopefully that built that question. help this to model answer

WillMatthews

it's bit ratio. Steve loan around we're as little little time rate our use deposit just historical elaborate betas. that's entering a a different Steven, this rising is that. this alluded And I'll modeling that deposit Will. on just a with to The And cycle, we lower incorporate does much bit one Yes. to, thing

action we're low deposit mid back the we liquidity as that that all and we'll that's expect quarter If betas XX% XX% ratio Steve to not and liquidity the of our big across rapidly or would or balance uncommon, around that competitors with would on you I XX% lower XXs, a at very this removal today, sheets around, see. of be so. all the ended question betas industry different loan one, to the 'XX, time in second last all of how and look time be in the said, so given the will think third And this one

StevenYoung

is and net XX-K but at just we'll a one come not disclosure. a other marry out disclosure, net point have Yes, will I income up some thing. interest income that this know disclosures

about. be the to income here, that which closer income So is net net one what probably more have will disclosure permanent is But X%. we disclosure interest care you'll the

MichaelRose

Helpful I And quarter the now NII? closer think for think I Correct? NII quarter-on-quarter. Because last that's because nine in the up to X%. was you're sensitivity saying

WillMatthews

ramp a around X% with X%. a shock, was

don't be may may that changed be, what thinking, dramatically. So and Michael. it's you're that think I

StevenYoung

hasn't. it No,

MichaelRose

Okay, final just understood. Maybe for me. one one

correspondent puts expecting. a you maybe banking go you little we than So and about scores about if we're bit the Steve, can the just into Thanks. more XXXX? talk increase think Can takes in as

StevenYoung

us, from the couple to about And quarter our up was going Sure. $X Yes, interest if quarter, And team. just it it enough was were quarter really comes million, quarter. in yield this little our fixed you then million before the think was rate think lot bit was And quarter the back of business; was Actually driver kind production the was swap this that quarter-to-quarter. a flatter of quarter it it the the a about I the was in dollars. first on. really there steep environment great correspondent income loan business also, down in we curve a fourth like was a fourth of

ingredients, about along fixed those very production to of happy million quarter the be $X strong just weaker, income a and that. ultimately so great caused to up with but little So fourth kind very be loan

our hasn't out as XX more And several assets. XX basis as guidance Atlantic Capital, like I quarters, a income think be we think to on in XX the we what we've And next assets. see to over change a course XX basis. whole standalone the income, lot really the combined fee a said be percentage noninterest don't next, would to about would standalone months. And points points, for SouthState that, changed laid overall a it of As we've basis that XX with XX

helpful. that's So

Operator

question We from Jennifer Truist. our Demba to over move will from now

JenniferDemba

next your you months. over point that? Good thinking question this about morning. at several about are Well, the buyback How appetite

JohnCorbett

we're X% a the X.X out it's buyback authorized of year X.X little of through board million. million Jennifer, of more of halfway ago. John. a the company shares The And that about than a

back X.X% the So of company. bought we

to generate we've growing, excess capital. is sheet, not so we're got do be balance need to we're grow Our going We that because today. no liquidity continuing believe the there's to thinking much

generate we so valuations think rates next improve. bank we'll will continue to that the capital. excess as rise in the course year And So or think we of interest

buybacks. it's good So a put capital we time in our use to think to

reasonably if three the where So valuation to close quarters. two been last continue in next And they quarters. the we or couple active we've probably stayed active to today, stay the are

JenniferDemba

Okay, banking next great. And is your the what area higher for rates? on with the year outlook correspondent

StevenYoung

Jennifer, Yes, it's Steve.

I think kind what we a things excess we've our $XX quarter, in we more clients, system all guidance this is you they I'll said good why. XX of or it over the us. liquidity, course to the this over talked and will Back of they're they're $XX of with which Whether invest what tell than I or thing several months $XX quarter going the banking ranging it. do the all this be of two quarters going million we've same hit it just they're excess loan about, liquidity to all think the to to have million, is really one same And that going and between we others. are. million was as But like to next for some have

think quarters on page then it see of fee institution I last interest yield swap rate income correspondent, slide income the reasonably at curve you different There's put and steady it's have yield us, side a for out business. for five so the have shows for and steeper, the on the we it, or both will if products we but XX can sell be it gets reasons. more fixed And we X,XXX gets that financial to And the clients. will flatter, curve probably there them

arc environment. Sometimes interest is better which revenue our in the swap does business the rate

And curve, sometimes our bit moves. little upon fixed a of income better. really how and yield lot depends the that does that a And

So I that's hope helpful.

Operator

of Catherine take will next our We question KBW. Mealor from

CatherineMealor

of just fees and how morning. more this service One on for assuming increase industry? the quarter. fourth that's overdraft seasonal, on charges. surprised Good the the I'm fees kind you changes in service to of see, think follow some some we but in a I charges outlook quarter just see was about like Thanks. up typically do higher received

RobertHill

Why quarter who don't I let and the take take John going forward. then outlook will the

it's that Catherine, really for roughly our right, accounted components forming you're So two pickup.

of then we quarter, had factor the We all seasonal And use quarter had shopping, -- place did kept card expired. the in there. the some waivers One conversion. bigger still third it Christmas in waivers quarter et some cetera those just had Fourth is the other in post that we occurred. second was conversion out

none two really those the quarter-over-quarter. the quarter. combination So in the But we had to fourth those of items of led increase

JohnCorbett

just Yes, in and future. and overdraft as would we'll adjustments you And the quickly, and that clearly, the to practices. do far something tell as that to make continually it market as is very continue I moving Catherine, going forward, are relates to fees we evaluate, we

CatherineMealor

saw the you service first hard of normal combined. seen haven't service State in the that charges at of because kind Since with really a number COVID. we look and SouthState as full was Center charge we together it's Generally, year time

operating rate of run quarters kind of that merger? more appropriate run the benefit we're you fair? of there's kind a have that do Is think truly the shows and Do at rates So think full headwinds base? not still maybe still maybe this you a

RobertHill

is have we say guess, where is as first quarter is, fourth quarter but I'd where I know the it fourth most the long consumer of have have quarter any as that waivers. did some fourth that impression didn't behavior is or quarters, the that my seasonal, the Catherine, I

a in seasonality. some a you run And luck little you second yet Legacy a the year have for of and waivers obviously then so quarter, having history fourth fourth of did, bit if quarter, the good south, course, we with don't to pretty right that where the normalized we of with quarter's we and then occurring is conversion seasonality, that maybe are show the good

CatherineMealor

That on actually was in makes stable bit stayed then I sense. And little expecting. than a loans more yields alone that's

maybe yield loan you can where kind give higher before you loan of benefit of any that get of bottoms rates? get on So to start, and pricing, color we kind the think

WillMatthews

loan the where I the making aren't ended production, fair swapping the this reason know, all with would like XXX, felt curve. out of was around a floating rates, a of on sure. We in as same has execration lot And loans fair start maybe think we for of Yes, the are amount you and the range, Fed our to that for yield was we on yield ratios, Catherine, probably had a going portfolio XXX because quarter, amount you for said. that to think, do our this up quarter. clients that I

the we about So of get with to market. then if we rest here in can think be portfolio, next I there, rates the Fed increasing that LIBOR or up XX% so. start from from we'll the front bottoming perspective, quarter is of should And move out way our the

Operator

to move to of going now We're Marinac Christopher Montgomery. Janney over

ChristopherMarinac

the income Thank helpful. NII. slide gave you, wanted relative ma'am. very Will, to accretion was about ask Good you morning, I to total the

and reminder, much coming years? in continue will to decline ACBI does with as Just this it relationship two a change next that

WillMatthews

out balance mean, the bit we've equation, our scores to let sheet. already, $X normalized essentially range maybe PPP it out say the fee as course, I than million remodels million hadn't little the tell I'd just that's But sort take higher bit deferred a are and they for take got regular accretion, our in $X we that. rate gone. today if in a of little you that's you run less of me than Yes, components, so required

accretion a Capital there accretion to hard it. big post big We don't But so number dramatically equation And that's think Atlantic on closing story our side how I think Capital out. some sort of that's We the Atlantic our changing anticipate about a part not of really don't the modeling. in of predict. the addition

StevenYoung

Yes, after $X several our to And just that what thought add million Chris, the we I that said million I the be think so that same in couple quarters would quarters. got said was it's as XXXX, ago, about think for PPP, And a last accretion then we we've we've $X somewhere income of I through that range.

ChristopherMarinac

deposits that's well, at half change of a seasonal from Capital, as back, of up the just And them in this year. quick that. end, that for and first the on Atlanta Thanks follow we Doug for Steve. any if would and cash you thank a that Great, something was period and that Will, saw come Pat

DougWilliams

is this Doug. Chris, Yes,

of organic Some there's we is some midst the modestly significantly. of I that they'll in But that, lower all perhaps every be seasonal, not see strong also but so quarter. fourth it first this think year, quarter the in growth of

you would -- Pat, So

PatOakes

it's on a number just of business, had day our with down then not period at significantly Thursday XXX payments week, depends it especially because was end a flat, to at quarter, the up is average part then the of Friday. rate and for week on the the is Yes, deposit products, So if it decrease, that Chris, was out, down you deposit look carved in if the very probably that growth and day the was of the striving pretty that costs because actually cause particular and you've piece that's of the year

you when look look that. averages you So really at at

ChristopherMarinac

Got folks. I That's that. it, helpful. appreciate thanks,

DougWilliams

bearing And DDA also more strong the up Chris, quarter those at the DDA. noninterest mix deposits the bearing quarter. -- grow deposits in on XX% to noninterest third fourth to was pace. toward was from And, DDA was category that continues continued a average has that very change

Operator

to Stephens. will Preston Brody We of now move over

BrodyPreston

what within good operating? quarter-over-quarter -- where like I $X I relatively on just large? to up just a Or follow all revenues. morning, gains million kind ask you was wanted the kind wanted because that there any that of is to would arc -- mark-to-market the just consider just increase on clarify that were everyone. of Hey,

StevenYoung

another I XXXX. described mark-to-market. remember, $XX call that the for this on all know if it year in in was curve business I And it mean, when no don't you the I've was or if did organic, but that revenue yield flat No, million of XXXX,

over So the at it's of couple means. really quarters. a $XX But is last a quarter this million, record they've been quarter, not quarter better by good than any

BrodyPreston

it then balance production Got like looks more just maybe mortgage of a That's have. larger it. the production, mix one Thank it the looks are -- helpful. than like on y'all continuing you historically you And relatively sheet you. just fees, mortgage to

portfolio that get track then if to why to to envision I slimmer. two, are this I on the give little one, going margins are So that secondary ask, going starting sale versus of wanted margins mix forward, maintaining gain guess the just and level do you a

StevenYoung

Yes, Steve. Brody, is this

it we referencing page think at. you're we'll quarters for put an billion it's of $X.X together for quarter just look was mean, I year, I last quarter, that billion. XX, robust. $X.X has and helpful, last very it's then production almost helpful and $X.X excellent it, quarter was this last hopefully The mortgage billion was disclosure me was to in which the been this fourth as quarter a and couple back

which XXXX, was record billion year year $X.X billion. $X.X for this production, us the was year-to-year, really, So was a

So page that at things. you that doing hard is team. margins on are a trend They've been well. congratulations a year if on really couple The strike on One X.XX%. were just and sale this really they to the things look the working gain ago, me

normalized just Now a much they're on margin. gain is X.XX%. more of sale Well, X.XX%

we're balance of rates, opportunity more that ago, of year and right So to down that mix. here nothing now a XX% do an just we're that's higher arms more it's normal. the and you to opportunities and top which kind secondary on of that's forward about XX%, I what column And which fee we'll sheet, taking moving is of of there's that to continue be secondary there that away basis we as in obviously points, would down But think to to so why XXX move see income. more is was the more kind to production, some assume have of I alarmed getting

would that good be XX% say would secondary, I XX% So a portfolio probably mix.

to there because the are just and single inventory. lot of who just just bill that portfolio custom some that is there's And driving of on in of a do no come things a the again construction new house, not there family homeowners lot a

then of on it and So end. back construction loan, that a arm we're lot doing and a we're doing arm -- the putting on an

strong I've estate has the up been more saw lot So portfolio. real We out just HELOC went like anyway, production consumer quarter for fourth but that pulled a commentary, if of around X%, it's year a X%. more described, you in really

forward. sort So that I a as of kind see good of going rate run

BrodyPreston

no, that. any XXX. to the then core yield it, just origination for Those quarter-over-quarter the helpful. yields very down And without accretion. Got five Thank that's on you the bps think similar loan I

us I think kind hike so own our yields rate forward that guess And going Fed but that? expect got origination we've the assumptions, you different just on of the do of can origination further I help on as compression first new about does we maybe all second know Fed new depending yields in just what you quarter think about the and year or

StevenYoung

is Brody, this loan average bit. up a the way size say was little would I our quarter

spreads of higher And you little as typically, so get bit, nature up loan a tighten the new origination; just because those that. of

So it our mix. loan At the a have the day, model the I to probably end we current. guess of that depends upon pricing prices

time the spreads. X.X% over so term will whole particularly always moves to dance And there's a liquidity it think do disciplined which our do get a first that be is it securities it the rise or The sitting know all the when on you in And great go a is loan Yes, the spreads. with time, know we lot quarter any to makes works. I us the want still it there, yields easier that when model don't question, the question you the risk that. get you to curve get as of long this in up, And to continue two, more like system, this rates year, free. I to with can do answer. for

BrodyPreston

Got it.

just Okay. on loan rate And growth particularly the then just within C&I.

year but was think up relative exclude good your of HA XX% a was this it putting I light any when So up. like loans, and some here, what quarter bit y'all PPP related little were peers had you a to

And would there could that anything specific was size noted, help those so -- the business helpful. you downs of if it there and about I be wanted beyond that pay that the to think ask, within John, sales us C&I, is you drove

JohnCorbett

that to third was loans that if cleanup to fourth quarter. the attributed you business the a do. off start Brody, we mentioned surge quarter would quarter, Sure, we C&I tail had the or seasonally in recall hurricane in first in some we that seasonal And

of attributable the brought grown the more was that's off X% a XX%. in well C&I I seasonality, that still middle operating of at to a that paying third hurricane a we're So Lapointe did to and in it quarter. and a was happy a business, year-over-year little at headwind, bit And company. do market have but lot recruited of the bankers companies think Greg But the quarter just rate particular probably as higher this growth, these that they that as selling than has

BrodyPreston

on ask, two last mix you of to more thirds XX, And a for if what sneak detail one similar third versus ones. you I have I accounts. good retail checking it just was checking y'all know just could slide Got that it. couple Thank On wanted that. And in a cycle to quick commercial around really to is the pro if forma basis? given

StevenYoung

a it think think MOE. but question, Steve. is checked we've that don't we've I this pre good don't I It's Brody, at [Multiple Yes, Speakers] number. looked

RobertHill

we so it's ignorantly But I together don't that, say -- that question. I don't think good so. close Yes, haven't Brody. we put would to

BrodyPreston

Okay. what just then you total on duration what the know then do is the one And securities duration, floating the book. you is? effective AFS the percent And rate? Do of the happen of book to the know portfolio for portfolio,

StevenYoung

Yes, I book years. duration think effective around for our is entire the X.X

the piece I book. the X% floating of think is about

bit most together that we day for portfolio, the have securities. when marks of close, my was end that we'll on depending of all ACBI, fixed which we put are up, value that on fair all they it When a book really, evam little those put part longer we at of comments, and a when point. we the So bring

RobertHill

would Brody, Steve don't have gave, that little we be full And, broken AFS was out My the portfolio, guess the a by bit shorter. be answer and would for AFS HTM. the

what us. did in of put typically when put don't front it Just but you HTM precisely -- you have

Operator

final That was our question.

management hand the going back I'm team. to So to

John Corbett

hesitate morning. you hope this on of And or joining reach Atlantic as to your and for day. And your have Melissa. always, all us working continued Capital. any questions Will appreciate you We if Steve Thanks SouthState a and have great you you're thank to coverage out I Alright. models don't as

Operator

This day. of rest your concludes a today's call. all for and Thank great have you joining

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