Earnings call transcript Q4 2022

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Operator

Hello, and welcome to SouthState Corporation Q4 2022 Earnings Conference Call. [Operator instructions]

I'd now like to turn the conference over to Will Matthews, CFO. Please go ahead.

Will Matthews

Good morning, and welcome to SouthState's fourth quarter 2022 earnings call. and Jeremy here Lucas. Matthews, Steve John Will and Young is I with am Corbett, This questions. John prepared we'll for remarks I and and will then open make it a few up

release As and on always, website Investor the tab. on of a the our the slides are copy presentation located Relations earnings

subject may Before release to forward-looking laws statements are Please you about meaning within make the for comments we of I statements and make we the the risks remind our Safe Harbor review us. language information affect to and forward-looking remarks, securities rules. Harbor Safe regulations. the and such in disclaimer may Any may uncertainties, our we more and and begin federal forward-looking statements the want that which include press presentation forward-looking

will turn our over to call the John CEO. Now Corbett, I

John Corbett

you, our Good XXXX. and momentum joining that's Thank been our call. We're everybody. for throughout team morning, proud of the Will. building Thanks really

taking that night. began to we I think XXXX in growth seeds reflected year those that and were future, where the seeds last was that XXXX to year the is a and take announced is we the for results plant grow, the that and to a root time

equity incurred During reserves, charge-offs. XX%. third return in us tangible $X XX% to a We quarter, on and million per a set than $XX but assets over the of fourth quarter. million share on increased return PPNR PPNR aside the That took less over in X%

in Will of Moody's through impacts metrics quality the call. can excellent continue later walk forecast credit to you and So be economic the the

grew some in the few XX% the a annualized. and quarter, team the best job is loans years, annualized middle XX% we've over and grew specifically bankers C&I in the as loans great that at doing Southeast market last of recruited Total

with sheet the loan got declined an and deposits flexibility X% we've ratio. In balance period, deposit XX% annualized still to

our cycle, far beta only basis at cumulative X%. points, is and cost this total XX of deposits landed total Our so deposit

share step the XX% X%, full XXXX. If XXX grew look per interest Loans balance was up at sized XXXX, PPNR we decreased net points. sheet, you the expanded over margin right deposits and basis back and as year for XX%,

$XX provisions, incurred entire in loan year, we but in million only loss charge-offs. $X set Over aside million the

we XXXX. to for reserves our So strengthened prepare likely in a slowdown XXXX economic in

In addition dynamic Capital and a team Atlantic our completed a conversion bankers doing to growth, organic are our integration last summer, the job Atlanta terrific successfully in market.

moved bags breaks The states, that Census and X.X the Northeast of report latest South, million of Western Midwest, updated they released people Census since Page four $X.X XXXX they regions South, the moved in We of country. homes, SouthState two-thirds the month. six of the deck population sold out the last that and their people the Bureau began them map landed million the the packed the their in on the a Bureau in and pandemic their our to to markets. And

number one do latest the ranking continues states in the as on with country, the country growing of last Based the fastest business rowing in six year. to in reports, state the census SouthState Florida four

loan As the economy Fed that economy shrinking. pipelines it we the year is the what getting think it wanted. ahead, seems to slowing is about and us The and are

areas what a of the So we of or mild migration, of economy, moderate of based South the XXXX level country. the direction be the believe soft we outperform know if regardless landing, population other is will don't the a that will on a but recession,

SouthState merger of year compounded years of bank hit. growth cycle. we the announced this and We good annual ago the believe pandemic the time, and over power integration over rate when everything a XX% week, compounding Three process, CenterState coincidentally in to the began right at so our aspiration has the of grow been always a equals in of a

of It's years, cycle, been growth and has smooth and merger out the if the we've of you you the since been that our three a lumpy, lumpiness over announcement years monetary look grown policy volatile the pace last we back three at the obviously planned. but if

of since Deposits the growth have year growth at a of rate compounded grown annual a loans since at compounded merger have announcement. merger annual XX% and announcement the grown a rate X%

hard is work. So and we're the of power now our on plan our executing team witnessing earnings their

have employees thanking to billion team that that So year, and made members all and team for changes. that branch risk loans have our new from our our management of to I'll our big our clients through that of our bankers to defences, our cared digital offerings, close by IT $XX during strengthened improvements areas congratulating our generated countless the

You've done environment. in a a job challenging great

So Will, it you. turn I'll over to

Will Matthews

and a you, done really I'll for Thank quarter and your this John, job The the environment, echo results year. great team's the leading in to great comments. executing

revenue up strong interest a of We the X.XX% net points million. XX core and $XX with NIM interest very another net equivalent and income had quarter up quarter from basis tax third

yields by of XX points, deposits versus points by improved total basis loan basis rose the third XX Our and cost quarter. our

Non-interest our As down $XX beta QX. point from quarter, last income expect we to totalled $XX increase noted from million we deposit forward. this million

to the income. asset We which $X.X items value our of wrote division by mortgage down quarter. MSR I'll mention non-interest few revenue A negative led million, impacting the for

the right $XXX,XXX also We on asset combined by assets down million a rights in our down servicing $X.X wrote for servicing quarter. SBA

swaps no against models, in corresponding that accordingly income decrease on and settle resulted deposits help in release. on to and swap began Page the interest That expense a of non-interest the asset exchange swap net You'll noted applying liability. with also balance or the effect note a in for margin assets variation income as and to with accounting we've net periods and prior market sheet decrease adjusted XX on your the a cleared on we collateral to

quarter in $XXX of portfolio. the fell production XX% to volume with million being approximately Mortgage the

muted from mortgage remained industry. XXXX expectations at Looking across the in production forward,

We increase. also our but market significantly ours down to expect from secondary production expect of we be XXXX, percentage to

income challenged swings in our somewhat $XXX environment. from rate showed division this Service out up lift charge Correspondent to versus closed another QX million in of no with expenses the prior seasonal income big were be Non-interest wealth management slightly a year. strong continued quarter.

normalized Looking approximately to of low of with we would in XX the $XXX Atlantic from represent in first million. being an Capital. XXXX XXXX, the currently the estimate That months million NIE quarter increase range if for X% $XXX

year course impact and on can number through NIE deferred costs. cause that to commissions, of I production will that factors in to note due loan loan the in incentives business the or there decrease the and are lines our increase

balance construction centered the loan growth sheet, C&I residential John family and On CRE mentioned, the was single loans. CRE and $X.X in billion in

Although see on discussions in and levels. XXXX sense growth we're Expectations for usage of some digit pre-pandemic cautiousness borrowers. and amongst to loan range line slight we're lines, of credit are the commercial below a starting general X% utilization in about as pre-flight percent declined increased mid-single pipelines remains seeing

$XXX the approximately declined Deposits million in quarter.

$X.X cash declined the So coupled quarter our at fed to billion $X.X with loan growth, funds position end billion. and

end. CDs with very have FHLB only at million no year continued funding wholesale and We brokerage in to advances little $XXX

$XX regulatory ratio X.X%. approximately capital and per end risk-based our points improved to basis flat XX back to to TCE TBV the ratios share Our compared year. were above Ending QX essentially rose

excluding both recorded higher fact, changes. continue basis have expense economic net to had the as respectively, to John and credit DDA a excellent quarter charge-offs, we year. the though noted, charge credit, the points results, we provision to for in minimal one due off We in two recoveries and the Turning net had year for we forecast and quarter loan overdraft

$X generally in SBA XX% NPLs were a government million which are XX ending loans basis by points guaranteed. up caused million $X NPLs, at increase acquired of

So flat. NPLs net unguaranteed were almost

criticized and in million in assets with and were down mentioned, mention special John a decline significantly an As loans. loans $XX classified substandard decline $XX million

was in of for $XX credit, million with in forecast factor. million the from primarily due to reserve million commitments. not growth and Our QX a losses $XX loan changes $XX million was to economic this $XX in deterioration for provision was up expense expense due rather and unfunded secondary a for was but provision

of reserve a in of commitments. basis approximately million was XX, percentage nine Slide As points $XX another noted total with the basis reserve combined up The is unfunded on ending loans for loans the was points XXX QX. from

on Finally, some information additional I'll and loan interest note of and XX. credit Slides XX categories we've that included

Operator, we'll now take questions.

Operator

[Operator Scouten instructions] Our Stephen from comes from Piper first today question Sandler.

Your line open. is now

Stephen Scouten

question Thank you that? guess can sheet, you morning, of think Good around have resi What's could the concentration just if your I that just secondary more might been or to would limit you're what that mortgage Is portion on that I balance pricing of will on a see growth, with a and year. we expect additive mortgage that, nice but a driver to more and you I is there you. market reaching that's sheet do balance start the that next interplay think mortgage? or how the said, of on maybe going about more everyone.

Steven Young

the lot Steven. residential particularly about rates, in a mortgage you business, changed since yeah, really for Yeah. think and with that year. it's Hey, Steve year that it's the beginning a been it's of the if the nice in volatility

in about fixed X% X%, somewhere the the X% It the hit XX-year to at the of was beginning X.XX%. think mortgage third think of quarter. in high late the I X.X%, year, rate a I

low a is, rates gain in deck in the talks, market I and high. last very deck, its And think growth secondary sort balance it rates and the of in in the sale residential in the production over We have our then when 'XX, XX you'll at look residential mortgage. see sheet sold the and XXXX early which when describes if a in strength or years were on the portfolio of slide when you and Page were lot it what margins graph that three we

that as you putting started then on sheet. more started our And rising, can balance of we see rates

cycle, sheet you depending of management side. our kind grew at three-year if some on about balance grew the we we $XXX shrink So but we and million, some looked

period. of was CAGR So it X% about the a over course three-year

that, about we digits. that, same the will and as our book, As we've sort to mid-single got grow would loan think I our mortgage I the residential of normalize rest of think

the residential bit secondary give and over a was a CAGR we've course just you ago. it three-year have few to kind come than grown X% a some perspective, of months clearly, more the market So, little period. is attractive down But rates of

Stephen Scouten

Thanks quarter lot that ratio you to said XX% Okay, last Steve. that already I 'XX. And makes loan-to-deposit year we're level. of XX% an end XX% kind then Obviously, think a of sense. by

better is than about think than to that? had deposit or cycle So do it's then to you that you've that do think this how at right beta given moves XX% point. outperformance number the range you XX% the higher And date still think much

Steven Young

guess our Yeah, this I guidance let's really ratio, a whole -- and it is again. talk Steve changed about a from lot. hasn't loan-to-deposit really

side bit think I our deposit we changed bit little point rate. little a on starting why had and that's higher a deposit the

what somewhere slightly up, digits maybe our deposits is But XXXX to -- we is goal for that roughly and grow keep loans or mid-single flat were but in area.

that about margin. take picture you're for page, second. bigger think have a to trying me to I just but question We And get let a the

kind just to a me let that So of little talk bit.

basis that on XXX mentioned John last quarter, from of from last points year the fourth last we up year actually a seen basis the in the fourth my this progression never the about from and I've interest I quarter net talks year great margin call, and to had it have of XX expansion at -- points. NIM's in the kind quarter. on it's quarter career but deck margin this and Page think that of the the XX we a

about for update. we I'm for same we So you that had talk in with as give just guidance to XXXX the October going margin, guidance one

there's the data So the and really was question assumption assumption. assets, assumptions size of earning it's interest the It's of you think about the as margin, you interest deposit rates, last for it's things. the the which three asked,

little we're under larger. and call, we assets probably gave guidance little billion So out earning this average than a $XX in interest but that, smaller based we in when about starting have 'XX a October,

really that to there's So no guidance. change

On consensus the peak rates, last to interest the call, in funds was last relates to Moody's XXXX. on for at earnings earnings fed X.XX% call October, out the as forecast it in

quarter. up then forecast, by be I and X% basis point points think fourth peak in moved last out a it's the basis at there XX decrease to to the XX

XXXX. you out, basically if So it's for kind average it same of the

X.XX%, last versus time shows beta our based cost the The question as at from the would to beta, we historical lifecycle. get rest from that -- were And of second -- and about to to that then in XX% with points deposit timing, Page to deposit the the on deposit there X% ask of part model where our basis happen XX deposit to XX% and we beta rate you forecast on is quarter is quarter that think X.XX% data the in about that cycle our expect, interest we it past at XXX over would we this cycle continue to year. is to that of we year, of a the first deposit and deposit which expect remainder the just the by XX% of same as

increasing NIM re-class assumptions the our XXXX. during 'XX, X.XX% haven't is to that, any the our -- we XX just X.XX% -- really X.XX% now guide are guided to or that range I'd swap to And And X.XX% collateral our to that we on for the So really call, in interest all noninterest on but basis say, a point with to last income. to guided our increase guidance is changed XXXX. due assumptions, we cost NIM for of in

but Our by just But geography decreases it guide the income, our income the and noninterest XX points, same total is with -- by amount guidance to change. the same. basis our essentially the interest same really, revenue increases whole is net noninterest

the So 'XX. we're that gives long-winded as it's answer. and hopefully, about a parts But you thinking pieces

Stephen Scouten

in Yes. could Steve. squeeze Extremely one. helpful I last And color, if just one

and three announced larger you the years level some high really currency, you have you and of in maybe since noted country. the more still MOE advantage here, John, said, you markets as here. the in an Just

current about call the next, the years, strong be, couple But what if of two other you into Southeast your still you how think, years? to do it your the Or let's over in look franchise you there? would were to over Would do think further deepening Is incremental M&A focus markets? it, markets? expand do you next

John Corbett

Sure, Stephen.

I on asked this not really, thoughts was question changed. think quarter last our and have M&A

that there's regulatory as clarity recession is to mean, risk. a of it there's we of for process, XXXX, a be couple right slow of lot as it and going pretty reasons. just into clarity view the relates Our not not potential I to look lot M&A approval is as a now, relates to

pick going is it's as believe I in year slow end begin think meet the up of be future I the about towards on and industry to banks the M&A whole to XXXX. the likely to think stream. earnings

to inverted people an going it's earnings off curve, got M&A and you've yield more If likely today. that they are be XXXX, are about than will in flatten enthused

markets of easier third size. are our we've country. fastest-growing It's and is of states our that -- preference thought in the in synergies, company that's And of most Our target existing typically, the sense we've got high-growth our our four the six that markets. for one markets. get to process is XX% us about high-growth built the the type size And to something makes

existing the the left that we if we we characteristics. today, be kind the that preference. fourth GDP six ever in, But of represent If So it growth footprint similar GDP for largest would the would would have in look world. states the look you of at we're our

to So we've of opportunities fish got lot at. where a we're

Operator

KBW. question Mealor from comes from next Our Catherine

Your line open. is now

Catherine Mealor

deposit Just beta a the on conversation. follow-up

think them to is I stay level industry-leading. been betas about so to be a XX% at just And the going incredible. Your has call for obviously

very got accelerate And of so in we're check, deposit right? I is industry. betas and a of it across it's so much seeing way the a composition, really portfolio, to but -- is there think a granular because just your You've lot

CDs, why it DDAs kind about accelerate seeing of composition of peers? your won't as composition. much checking deposit you're expecting explain to that, beta the and of or is a kind Is balance maybe So within remain Are the in that balance change -- -- and much about as or there you to kind the some talk same? the way of for

maybe really as a better it's categories maybe cost kind us sense of that else, deposit each driving a having some to higher are of your betas And give like category that's everybody mix just beta the show but your this then to within performance.

Steven Young

of Steve, questions. mouthful that's and question, a but Catherine. Sure, your I I get a It's think

on I'll kind And to of things discussion. a So deposit -- of our help XX to me Page I is -- let that. you back these sort laid try out go of our think then expand and I'll couple me

accounts. retail. deposits in XX% small business typically, on our Page checking those the of are are and XX, warehouse XX% for accounts And commercial,

Our peers XX%. are at

that deposit would point be to were one reason we at that thing, probably I overall XX%. is to think I if the So the beta think

look each you It's different really just It's not just in It's balances. it's one various one one pieces, categories, third, the can not third checking at the and not those third, business. of you retail. commercial. When almost small see average

the that, to all battle deposit going rates thing. the we're on money is said And else, everyone same things Having accounts and be a interest it be deposit to are clearly to And sensitive like are the that feeling CDs. most front. on going markets

CD certainly reason X, to XX% of across that market the the gets XX% And pressure as the we rates end deposit feeling year the raised that's we why for at first today, side. where we higher into we year that that than quarter. are of on next I board. think as at -- we think those And if January about and front-loaded the look is of we we points betas, a basis And are XXX lot and assume the money the look we that

much accounts. continue feel to clients which rate-sensitive deposit to sheet balance you of the course, more as is, core So checking think know, of the important protect grow our our job, the franchise, our most going to to part of And I sheet. that area is balance is than

raising the position in of assuming the it beta. catch total you NIM our going sure, of some, past we'll as continue like that here months, rates up. to in and but feel or over rates definitely has So It good It'll that that Fed but see to was cycle about has up increase curve guide all lag. the catching kind today our volatility stops next sort the together. we quarter a yield for how XX so, we put changed And and still see is

hopefully, So that's helpful.

William Matthews

Catherine, on like what Obviously, feel everyone a little little just past. to but base ones and would we estimates the thus than is. is we're far, different its see seen giving balancing battle bit. this -- core we based we're with out a I elaborate our else cycle certainly the entered And it there And a best mix. healthy Will. we've do in really We deposit same you

to And one-off negotiate we've really the and to clients are basis all market allowed from headquarters. the with leaders ability than and our us trying to on decisions who rather closest customers make a the

that's we'll environment. different strategy be a have say but and hopefully, So last And somewhat a is successful like time, our it far. thus

Of acknowledge course, we that.

Catherine Mealor

sure. For

helpful. the saw million And collateral past is cost the the I swap maybe of of that's on going quarters. disclosed rates interest and up duty it's other of this -- about the That's as couple as $X.X quarter. Okay. been the that question increasing, been over obviously, you reclass on today have is this just the

be? is rates number that this then if steady fairly think about it quarters? number up trying this the drives about more something -- little with is that assuming X we few the that what we're bit at it as million, model next just should over is, more plateaus, $X.X Fed as maybe hikes? is where Or to changing And So level a there is with what what that

William Matthews

it, it's are Yes, there pieces predict. not That's Catherine. X There's to really factors. short X easy to the and But answer.

essentially. we're amount XX-year dependent talking And amount is of about really the the Now collateral we the on collateral the treasury, post. of

depending funds Fed cost the then collateral that of the on is rate. And

sort So -- at year around of really, we're XX the think about a X%. point in and if it, you is neutral

to the posted come rates down. rate us, less collateral comes tender down, as So

or up As down, down. or interest the the Fed thereon moves fund up rate moves

of So it's kind predict. hard to

he he the assuming point a point. I bit about that given -- swag few think XX margin at noninterest moving quarter million a he Steve's a numbers in this income, of comment dollars margin was made dollar just -- basis little about but was -- from minutes a ago it's $XX

Catherine Mealor

Great.

my Okay. the it picture of -- that away, I thinking that's that's I which it helps. was be for should big mean wasn't wasn't going and guess going there forward, part like guidance stable the NIM.

Steven Young

it's and funds about give And bit. Yes. or points at quarter, $XXX basis assumption, the end XX the year, rate, $XX we're Catherine, million that's about the Fed sort take, to I'd if a of say just that to that's million a close on of assets. X% little the and that's

Catherine Mealor

it. makes sense. Got That

been my anything Okay. Perfect. bit the lighter outlook. is the The then maybe reclass. question And little fee changed? on just Has a outside has last correspondent expected than

just So forward we fees guidance for your thoughts of kind enter as any 'XX? on

Steven Young

assets. Catherine, was points basis million, Yes. over of XX a fee little $XX income

Our points last have earlier, XX But mentioned one-off in write-downs. servicing, points. some guidance as events basis mortgage and was asset SBA servicing, between XX we basis Will

of central $X.X $X.X I think million. that million the and course, another collateral was the reclass, million was $X.X or

basis all kind up points. it'd XX out, if So threw you been that of

the it been of middle in So the kind has range. of

to XX again rates, not if increase basis the up points. average -- Fed to decline as quarter basis it's back rates mortgage stops that the income noninterest that's basis core and points XX some assets businesses the for raising XX the we future, then and of back And start fourth expect rate-sensitive But to to points. of like we and probably think of kind comparing would similar, interest XX Fed until towards to we XX of But assets. raising to our picking think stops about deposit,

the the raising up obviously rates period interest our if the guess a year back in you we've has points income noninterest probably My of back rate fallen. forecast with but NIM, -- Fed stops start moving basis the Noninterest up. So income half towards guided where transition -- with and XXX businesses is is NIM is, right. the is we're when

Operator

from comes Our from Rose Raymond next James. question Michael

now is line Your open.

Michael Rose

remind Just the can of Can on increases of in you're kind And quarter? us quarter. like the for is pickup expense us the annual is first what just remind questions. expectation what expenses, if just the you you FDIC merit assuming a for couple this

trying get to for within set level a first of million NIE of quarter kind $XXX context just think Just we as kind year. about roughly the of the the of

William Matthews

model new a in process across precise initiatives have Yes. Michael, of have across don't the and do our completed I FDIC the of strategic investing number We've so some in my of we hires. result We're footprint. question. as head, planning the can't I just insurance strategic increase the modeled expense that footprint X% answer that our merit of part fall. a a And in parts the we essentially business

as And that. the million new $XXX coming will all something course but that's year I be the of well in expecting begin, as that in the number so there's initiatives baked some in low in hires X.XX% the throughout And that quarter. on those come and first some into of that referenced

incentive prepared I to loan move said in can versus goals Production bit. loan like that. or factors will cause deferred affect there things my a little down incentive impact this, compensation, I will know production around Like but and costs. moving up that remarks, that you mean are

at point. this estimate are those our there, all that's best So are variables that in but

Michael Rose

It just pretty Q-on-Q. the a of classified at this worries of portfolio look it that there And moving obviously modeling built you to out moving criticized the with Obviously, bit little credit. quarter. the changing then down anything seems that seems reserve especially inputs, you? Perfect. you Is when kind conservative, again actually guys but

real lot of a been to commercial some construction estate, office maybe degree. and There's around talk

think quarter. And would soften every to continue under kind was that deteriorate, or generally, guys expect the those to But backdrop just to we see about asked continues I reserve ratio assuming grind are credit? higher this pre-tense? you of how feeling

John Corbett

opinion Will right start on But mentioned, If mean now. has remarkably Michael, the really I I know it's quality CECL. can DDAs. asset I is basis X that. John. can I the an is all quality. on good asset point charge-offs, as maybe tackle you

So and Will recoveries the last as almost quarter year. did SBA. in government-guaranteed we've pick up, said, but loan in entirely, net had it's recoveries, Non-accruals

nonguaranteed portion the flat. basically So is

on slides, out debt coverages Page consumer and some added commercial XX real our might portfolio. interested too, our We've loan-to-value and kind then XX breaks that you also Michael, be underwriting estate in of service

as that we in pressure small we've of But two, small be think rent you on But the if year SBA an naturally and think fortunately, or one. area wage as cost, kind there. got the to guarantees with are far pickup loans. But the next mentioned rate areas the challenging we focused is could on that's interest that in I about businesses inflation, inflation, business watch.

something weakness that area us. It's the with continues right great all very be on through, some hundred there. we're metrics now small for living COVID, assisted are working that, that us, a couple to of million for dollars, office, the And but

and X.X% a we're book, loan our there X.XXx of now, social debt look portfolio. We office is that's this demographic a loan-to-value coverage. on. service Right XX% and at about But going shift at the it's total

fine. underwrites it So

I them is of are on the smaller XXX,XXX for under office And we've that advantage think us properties, loan done our XX% square $X.X mostly is million. average only feet. office

the office mature doesn't in until XXXX or for So of XX% after. us portfolio

a will far. slow-moving to are areas react shifts. so watching be and will But hopefully, the as our office the clients those be we're train, ship able us So the market and

dues and are mention down. classifieds the We are past stable, or haven't coming special deterioration seen

William Matthews

Yes.

I the our XXXX. to things. is total, MOE. acquired, And banks And we've five from a back that's every think. On the Michael, CECL XX up data making this excluding or point, bank companies loss or XX One, six of couple banks guess our utilizes CECL about in model both I dating of

type, they price loan year-over-year index Atlantic apartment housing Our South for index price the The really region. change. loss include The South rate region and CRE unemployment. but vary change, drivers by vacancy Atlantic GDP year-over-year rental

loss which, those upon provisioning our future the our to actual going expense losses, depend for net or our reserve down drivers forecast levels course, brings as So changes reserve. well of as future is and

in to our be conservative Moody's. We outlook continue than more

XX% gotten Our little to straight Moody's about reserve this is has though a Moody's it baseline under scenario, more would than quarter. be XX% showing higher more the economic weakening conservative

validity think don't an them. standard and period, our net sum to FASB appropriate years $XX on had it's rules, cumulated $XXX last over the positive makes get comment of of we at by you charge-offs of around our the if you you me the million. of the and value and something But negative, company accounting up live provision I of million. X north look expense, something we've same And the X-year absolute and over for

not a think level. in year charge-offs, how net how I'm to really money charge-off capital one another. much not expense rather charge just is a it expense sustainable that in moves what's basis important until because have, provision so our we we suggesting much I X.X more but view, we the off, provision is from points net much of form But lose

Michael Rose

that. outset I back, those mention to put question. of the those slides the No, I the appreciate in forgot appreciate certainly I And John, in

it's So good to hear.

accretion can this And a up all-in clarification. me, expectation if one moving of or bit. the tell little so, for NIM you Just just for in, us one scheduled is Obviously, guide final what if is the That's correct? the point accretion year. --

Steven Young

$X The quarter course, the in NIM million, accretion, Yes, Michael. all-in million. around think for between X.XX% was right, Yes, $X.X of the I X.XX% and that's fourth year.

year $XX XXXX. I for that think full around of we are modeling million

. But little all down in the So cut. comes factored that's it a bit. entire

William Matthews

to just essentially And though, with move geography the change respect reiterate, Yes. collateral. to the was the off

I that income. the sure it got noninterest similar up on earlier, NIM point the said down -- to clear guidance just amount make Steve that is a moves but by as on So we want

-- So we last was where he essentially total revenue guiding where were quarter.

Operator

Our David from comes Instructions] next Hovde [Operator question from Bishop Group.

David Bishop

Appreciate the of liquidity had the of guidance that growth down took of about you're we fourth for entered loan runoff, bit think bit growth. in bit. aggressive the loan that year. about expectations you little How a Did growth? Just plenty get cash curious a how terms little Obviously, guys or more should funding the cash? of this funding more wholesale liquidity, quarter thinking planned with securities the on you excess Is borrowings? a have

Steven Young

our Steve. Yes, give little of XXXX. for loan take, or it's Mid-single billion let's say David. This is $X.X is a digits, bit expectation growth,

coming have of use then portfolio, $XXX the expectation the between we'll cash. our deposits, about, somewhere off that sort to to know, up guide $XXX $XXX the year. We investment And with so million with I million don't million flatten is for $XXX million

that's been deposits, then of there Will the I know, $XXX and end at three Loan as no as wholesale year, don't for, to years, I so it had of And on four or Home we out call, Bank. at think or million the mentioned broker the relates the Federal borrowings

would think line period, we FHLB. through that. think of on end XXXX expect is I to we over think up. back. this surprise the bit a between I -- if the the at -- But XX little me In deposits, close It pretty XXXX, months, kind bottom course similar flat me $X.X and I had broker something of I over had a as billion wouldn't to little of go let go $X we billion, next

David Bishop

And that. curious, a just me. Appreciate final then for Okay. question

new this loans of loan yields where new curious terms new seeing you're In production of last. onboarding quarter, quarter on versus this just

Steven Young

quarter. new the have Yes. front David, in loan production, I don't of our me fourth

I new think on the loan so was production. approaching in or it December, X%

but overall spot end at a I the as think yield portfolio X%. little the day to our a close was less than quarter of X%,

X%. -- you're essentially, around is portfolio So

think XX% was the around I average. think quarter the we ended in line was with I

think loans X%, I we're and to little close take. than on X%, less give our was ending a or putting

Operator

questions no are at this over John I'll Corbett. back so to hand you time, There further

John Corbett

right. All

interest a good your morning. And call earnings and joining us busy as questions. So always, are in appreciate on thank we those you,

So appreciate that.

any have to great ring. in follow-up you hesitate a a have If day. questions your Hope you guys don't models, us give

Operator

That concludes conference Corporation earnings XXXX QX call. today's SouthState

now may disconnect your lines. You

SouthState (SSB) 27 Jan 232022 Q4 Earnings call transcript