SSB - Earnings call 3 2023 | SouthState Corporation

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Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the SouthState Corporation Q3 2023 Earnings Conference Call. [Operator Instructions]At this time, I would like to turn the conference over to Will Matthews, Chief Financial Officer. Please go ahead.

William Matthews

to Quarter welcome Earnings and morning, SouthState's XXXX Third Call. Good Will Matthews. is This I'm and Steve Corbett, here John with Young Jeremy Lucas. John prepared remarks, up make some we'll will it for and open questions. and I then brief

on subject such make CEO. to of copy the forward-looking a Any Please and and statements may risks and our statements begin may release slides over website.Before call the our As the harbor safe review about that the to Corbett, laws and our I comments turn release are regulations. always, Relations want the of Investor remarks, language include meaning uncertainties federal to you we John harbor and which forward-looking securities presentation within earnings press safe information statements forward-looking presentation rules. the for may more disclaimer are our remind our make affect we and forward-looking I'll in we us.Now

John Corbett

team the and of funding core loans are pretty values settling to is horizon. Liquidity we earnings us. to Good our Thank solid our is capital net morning, Will. can the continue line delivered was SouthState margin keep see quarter growth the but spot.One growing, long-term stable, you, night, with that for is that preach a in guidance. details, level, ratios right high deposits. customer is deposit everybody. joining you interest cover and previous steady Will eye that in a we can In release see our our to Thanks best-in-class, the in good last on continually at

The lot the the and severity speed a predicting risks credit economic market system and picture, move left and to banking are liquidity, stages as have The cycle, where a to where through are part.Since predictable. March, easy of we then then from funds. cycle liquidity of predict, phase, talking the time But capital. to tough So and big the to that's risks we've then deposits moved of tightening about cycle money cycle and finally the stages talking the first earnings, phase, for clearly we while advantages. simple have the the banking the about we the spent

is the and power trades the industry predictable Now necessary as response future that costs earnings away rise. deposit

for the repricing. SouthState, of to for and ballast we've asset Now XX% total deposits tailwind benefit granular our to about served able a deposit of only of of a our a our cumulative based loans adjustable a to on cost rate. X.XX% been fixed deposit side, has deposits the with as and our over base grow a on or continue we're beta quarter.Now from also loan for XX% of are franchise,

opportunistic will in the X.XX%.Now to by with points are the So are the on the basis XX severe Those than last of the In loan $XXX side capital, opportunities the cycle drift deposit million repriced we're the cycle, up more we're reserves a our more only back SouthState see year, many portion shareholder as portfolio reserves, help deposits million of costs. allow portion and than plus like set renew, cycle. now to charge-offs. credit feels to our by XXX aside the basis where moderating, a and reserves, in greatest. for velocity any is of that built create as we've points excess our to $XX additional is result, value in we've the risk And change predicting. be It should shifting they to of significant going offset

there's franchise. time, rise in our and only we're way through a at their deposit lag that of on the But the geography tremendous The just in beginning opportunity effects same horizon size, rapid with our think for system. now. of a bank work rates cautious to our the are we're excited. the We So

by So the and a out close pass weather Will quarter. our for that some I other on the the want horizon franchise on long-term come now to provide team can side.And stronger back color eye on thanking storm keeping I'll to it and to building their the

William Matthews

Thank you, up with and another deposit solid costs, income had John. expectations. margin We ending noninterest our line with quarter in

million And market expectations. I'll charge-off X% touch in sheet, Solid impacted PPNR deposits quarter. our of shift one of our exclude last our our we without maturities, we previously, year, the represented before X% the costs allowed rate DDAs brokered Q&A.On in some few approximately on a see end, figure from at outside Deposits pandemic. to moderated the credit of replacing. from loan XX% quarter X% annualized in a growth line the to down before at the this into you was Though this balance the XX% $XXX money and accounts, or total off bit continue to we XX% mentioned shift to DDA a details moderated the that DDA move annualized we on CD first sizable run with deposits of and as grew good half of from if XX% mix quarter. a us pace peers. the

statement. moving percentage So the deposits.Turning towards or as DDA those to of as a we're appear pre-pandemic it continues income to if levels

Our were was to our XX%. was XX with but cycle-to-date down which up points basis line XX point from up were yields basis basis deposits beta Loan guidance, our XX X.XX% XX to in points, points, NIM XX bringing basis deposit QX.

came QX. revenue lower than $X We $XXX of Wealth down day. $X had Our interest income another still was of down by in from more approximately liabilities gross million plan on mortgage QX.Expenses million Correspondent million rates, down million revenue, $XX million quarter, million $XX million reducing NIE though quarter, from but QX. was largely fees million interest had deposit collateral bit QX QX, higher solid $X this for in solid in was revaluation a a from $XX swap quarter. $X.X net income of was expense good of Noninterest a $X.X million. interest million due $XX another due retirement on expected X $X.X to to after quarter million from similar to SERP revenue down in

made a donation $X quarter, we We during the for also million dollar credit. for which tax dollar a received

NIE and same was So quarter $X by lower higher in the tax the by million income amount. was

in with was expectations. NIE line that, Excluding our

of the loan the annualized a sizable net points Looking to noninterest net expense for net in the income million the experienced total lot NIE basis or we subject The year-to-date. credit, $XX.X year-to-date as credit, in mid-XXXs recoveries the $XX we attention to the respect impacted bringing performance.With million our in normal for recognized accounted overdraft by charge-off ahead, categories to we charge-offs range the X both earlier variations and loan expect QX year-to-date. quarter, charge-offs SNC before losses in that quarter one that quarter, of loan for all absent received in and

We existing past with move we're mention be continue points reserve flat, of a not million loans the substandard increased loan slightly, build and trends, $XX asset were were total bringing to projects completion. provision, to declined. down as on towards construction continues utilization loans.For loans except lines quality construction NPAs originating flat, and dues many reserves new loss to overall Line loans XXX basis special

X.XX% AOCI ended ratios CE included calculation. the quarter to with We X if Tier XX.X% strong With very of capital were have at in loan the continue X.X%. growth or TCE provide moderate, and to grow continue with us to our ratios now questions. should continuing range we'll to expectations that risk-weighted asset regulatory in take capital be a growth allows us flexibility.Operator,

Operator

Scouten Stephen at Instructions] first Piper [Operator go Sandler. to We'll

Stephen Scouten

I Obviously, a was you could extremely bit, it's talk and catching up a curious forward little expecting but what moving NIM still perspective. a little you're the bit side from strong. cost on trends deposit if about

just the you're of what So expecting ahead. kind wondering months in

Stephen Young

kind that -- Stephen. Page is quarters, in can guidance, was XX within a were past over of you as quarter, our to see NIM points X.X% X Sure, guidance. our up points which our shows past the and Steve. quarter, was deposit basis This this last XX you summary this of costs and know, basis which XX We at XX

to so things: pretty we've forecast, cuts Moody's really we end only were. second funds the is it deposit at interest-earning forward, for rate guidance and our forecast and So forecast new consensus we sort And no as think into Fed rate would in expect starting hikes, far the X the rate X flat, about X.X% really, quarter.As of we where I the XXXX. at change, assets are been late assets, thought And has our of interest-earning the fourth really then beta. it quarter around look the end we going but

XX%. is third component, our all deposit with shows so beta date our that, And cycle Page beta, the to XX deposit

continue high total end the We of to the by expect beta XXs the year.

increase expect would we to points the XX XX quarter. to that, basis with in So costs deposit fourth

of assumptions the points maybe we're those quarter. sort And baked X that, NIM we'd for of somewhere so around all basis all together, fourth bottom fourth to there.So the that's what the X.XX% to somewhere in lower, in quarter, in X.XX%, looking with in expect

As back betas deposit NIM the net $XX assets that relative so if we'd be to expect to a change earning forecast volatile 'XX and the But billion the guidance. our X.XX% on offset step such like we X.XXs, low our the it been 'XX average range, and X.XX% a is have take NIMs more just in interest and our to on. If year look Moody's and and little which versus it's about in NIM into for mid-X.XXs, no the it. growth to stabilize it's we'll our a XXXX bit 'XX, full looks 'XX in will I to year rates would based really and assumptions, growth thinking in

of about kind with out sort these about for So anyway, we're of those it one we're quarter and assumptions. how thinking are ways thinking next the NIM year

Stephen Scouten

that loans? can XX% guys benefit? the and stability side pace when created this there, those Yes, know is -- coming that's And And kind bit, you we the that that's a have kind is a and of ratably any that given to that of see the asset helpful. of spoke repricings repricing little John of detail of lot on from I around

Stephen Young

Sure.

quarter, the repricings. a think it's loan about billion quarter talked we on last I in about $X call, roughly it but

we have billion it, but million, or up we'll is And then, that growth. use loan some around in, $XXX securities of that's And to is $X course, what basis $XXX year. that million, XXX coming points likely So fund probably so. step a

$X maybe roughly next, So up. just up. kind billion X, know, to frame it's yields are helps the about over the XXX pick and quarters, a X.X% of quarter points basis X X.XX% in a The you don't somewhere It's that range. I

William Matthews

and And repricings. that's the fixed adjustable

Stephen Scouten

Yes. Understood. Right. it. Got

balance near ACL down? the about sheet million guess, NIM I for thinking to then any think about rates a me, presumably Moody's strategies sort rate you any the And do when cuts, as is some of potential we Great. expectation, bond presumably -- restructuring? $XXX think Okay. here lastly kind of that protect today. maybe high-arching go around anything And the I start

are with guys I'm So kind that's if just thinking build, you wondering more the about? of something capital

Stephen Young

I'll maybe John Well, bond or restructure. strategies, and address maybe capital address can NIM Will

As to but went down didn't was recently think we range. was some NIM it, moving X% in we we back back remember, if NIM it an asked and forward, investor to really the at had did funds we X%? Fed And your about X%, funds us we was X.XX% what when looked the -- Fed

fall, and fixed types deposits rate our for waiting would year, -- about won't loans a the we'll things of we're do our we be hedging rates little just kinds will rate for of us. type around of cuts think and it's these I fixed margin, bit. rate repricing a next strategy of rates loans things in.So the be huge as think have fall markets incremental our to repricings the if if other those would and opportunity continue -- So strategy all do on if up. X But that around we reprice paying money the margin then things, as

guiding why we And Will we we so about that's it of and are about the bond and in restructuring I maybe over about talk don't sort turn think that think just range.But why as modeling as and capital. NIM, to

William Matthews

mean like. pretty rate. capital a we is lot think that got Yes. of strong about Yes, price, capital position. which formation a our things to We've at strong reserve. capital We've got Stephen, flexibility, got a with I I'd say we gives And respect good current have attractive. us to a deployment. We've stock

the kitchen additionally, a ability of to there's on wholesale table. not certainly, So repurchases sink restructure, degree engage in some while the portfolio is likely the edges. to with thing, And nibble type certainly we're bond around

in afforded about and of the operate. options opportunities the So well us terminal think we some we those as good growth continue economy to all by of markets as which

So we like that flexibility.

Stephen Scouten

I the Fantastic. time. appreciate

John Corbett

Stephen. Thanks,

Operator

KBW. our We'll take question from Mealor at next Catherine

Catherine Mealor

Southeast seen of few couple transactions past smaller M&A We've months. over a in the the

updated thinking Just M&A about and you're year? into how your how next on positioned curious thoughts you're there

John Corbett

change no math and really Yes, seen a couple delay deals it's the John. AOCI the it's still regulatory to our from happen, guidance. Catherine, the with risk. prior of but get challenging to work really, these We've

short the in on is assumption there's the our are but the pick half closer street more industry. revenue the the So could visiting pressures the the economy. of back challenging we're and given in that to stay it's as to M&A there banks in for to we that run. probably certainty the logic going in possibly XXXX Clearly, up partners And things out be is peer future, going the get election just

Catherine Mealor

And about picture big year earnings leverage? ]? to of see year. at X expense got be as you next little even expect [ off how we'll in relative of like expense this or a question those you into think compared as for we at positive year bit really see revenue marry you little there margin the a other Or to pace at where revenue think can after sheet let's in as kind do maybe come growth, But you bit quarter. a next you how fourth we you're -- bit, a of a it, kind is look kind just this where Just revenue? growth stabilization kind still think It growth be balance about create the of growth of you do you've same each operating that more and of year, growth. little look as a you to then XXXX seems curious thinking still as expense call Do

Stephen Young

Catherine, is Steve. Well, this

If that time tell know we swap what that's the you about think treasury And we help. in immediate that challenging, like, yield opportunities at to there, that. I rising, bounces talked I in the environment, I'm one But around is as think, we next quarter -- the correspondent the the of us about or so NIM, from talk our bit income, of that'd the with businesses we sure on. going -- probably some the could more would so we've just curve rising division. about in think if at not XX-year aren't with time this be do XX-year a we're and it the look to see least quarter, and fee

you the think come So our to this But I'd imagine if points. noninterest up. that range I at assets, eventually of we basis income this -- to guided XX quarter, look won't back XX

basis XX at were we quarter, points. This

the -- a then we'll the as if more the would low basis activity. start seeing we'd we end lower been year income, be end back I'd of and of kind think basis market expect consensus to end I guiding we I'd about would X%, probably think And next XX So and as the expect lower Moody's probably And I to range, forward XX-year XX XXXX, think in to on point the right would full goes we'll as a we closer points average about then noninterest into call that. end.If capital higher towards up picture is -- of it look I that little quarter, XXs I high we've think assets. start the the treasury

of would on I Moody's growth lot. and So the NIM the went growth kind kind be way of this to just year-over-year, we income forecast, going based noninterest be rate assuming that not dollar a a in I lot probably expect it, won't probably is about think of forecast through, the

So just talk that's to picture. revenue the Maybe picture. the expense I'll

William Matthews

Yes.

next we as to guidance year growth as the still And control don't picture, as we tightly revenue our mid-single-digit point they give, precise process planning goal our we're expect be to this at have in any on controlled are to hope it obviously, most the very with people range the can. and and deep in growth. to in stage, be expense low to try expense that but would and so for And in is budgeting

Catherine Mealor

Great. Appreciate All right. it.

John Corbett

All right. Thanks, Catherine.

Operator

go We'll at Raymond Michael next to Rose James.

Michael Rose

Just wanted last that to follow on on up point expenses.

guys in from position are standpoint. fundamental You a pretty enviable a

reserves. have guys very been built conservative, You

vantage that's my really from think I point. well taken

at a I hiring talked front what mean go you you after. that lot Why there's at I days are while yourself I assume that's here have lot growth more be of not competitors aggressive there's there for some capital under liquidity guys revenues side more so point? of you position pressure know and dislocations in capital not on you good the be got while John, about, actually as growing. constrained. better You the lenders brighter and be the that a why are that expense will now can market. aggressive many the out organic outset on

John Corbett

Yes.

heard is the expenses, I be were When saying expense front, be you're adding sure aggressive whether Michael, I say I what cutting saying. you're on you expenses or think Okay. but opportunistic wasn't you

Michael Rose

Correct. Yes. Yes.

John Corbett

building all And We that we strength. you really opportunistic the never I bench would would with agree we're the recruiting And tell that. time. and stopped

XX every had We're lending banker. had the out a credit prospect I my with prospect, night, recruiting. to a build team bench strength wife I that bring Last think interns summer. convert year dinner and the to from know we veteran always on and into associates XX management associate college years where going about you every for in XX management our program we've We team.

time. all to so out talking And the we're folks

would the from put being there number helps. that out a on keep that opportunistic, growth side And us we're if going expense so to not

Michael Rose

does. complete makes It sense. No,

What's on creep Just any the came actions noticed FHLB brokered liability that? will deposits. there of ones. core kind or a side the few kind was deposits about come deposits other think right interest-bearing tools down, essentially other What I costs. of -- And like is down brokered you take a smaller the to that assume paid in I liability grow as you can the bit. little looks to level down contain

Stephen Young

it's Steve. Michael,

an or it we March, I borrowed in remember banking brokered was sort You'll going of also turmoil starting of $X.X abundance all the of Home Federal over of the Federal And are last caution was million turmoil, one, the with couple billion brokered million and Home off. of the and quarters Bank. seen worries we have roll Loan did paid we've $XXX think that And then CD And Loan ahead Bank as on. when we a you've the $XXX just down CDs of had offering, died off went what is, so. sort to

level now, I be abnormal or right So an for could X% be wouldn't unusual give down think we -- an range. of it our go hang a see stay, out around CDs bit, lower, around wouldn't take. broker I wouldn't brokered little us but It X% in I it but that typically -- of us be deposits, could general deposits. to to event our coming for are that

William Matthews

the think deposit rate slowed a in heaviest say cost in there's still made would change feels is our competition comments behind bit, that of I in of their And regard pressure, calls, the that we're -- and like some while have it has the us. seeing echoing peers I

Michael Rose

what you and margin Maybe for production the sense just new the me. was what September? Great. a for Do for loan maybe yield Okay. was finally have

Stephen Young

Yes.

for think think I not stable the and quarter on XX loan September. points on it think production margin don't September the higher I little but different it funded but here points over so basis the was XX from reasonably numbers, just -- X.XX%, a there, of little for and yield. that most moves I obviously our in the around is X.XX% all basis few it's our a It the have the than ending we most days was new of a new third So yield it was margin that was few or far the a quarter, versus quarter. quarter, on, that but

Michael Rose

All right.

John Corbett

Thanks, Michael.

Operator

We'll at next Bishop Group. to Hovde Dave move

David Bishop

to not numbers, you cautious recent deterioration we peeling more you back the But circling of saw industry up the preamble, in and on borrower to be your to alluded attention paying maybe curious I'm cycle, reviews areas out the these a a or mentioned perspective the sort credit banking curious, here, from the where just financials. of showing charge-offs. maybe credit credit little back the the standing the being the days. one-off you're cycle that's onion, from life Anything back bit pulling but not that in SNC

John Corbett

Dave, tight. mean, what Yes. with I they I down. trending wanted think the getting pipelines I are Fed mean liquidity the is being

are I are cautious. banks cautious, think borrowers more more

So we pipelines for will that the industry strength. anticipate

interesting Now will pipeline is the I growth trends. a the little bit be think part loan the disconnected from

some be pipeline While there's to last loan will screeched we will in that new production years. the down, production going trends probably loan down still the a payoffs of and halt and of couple be going did funding have

we're we've the in having I in labor small living past talked see going will everybody our term we've pressures. think never loans. it see kind a assisted business office. team conservative on being just loan of SBA and probably of We from how and than And be the about think in space from face areas continue So The forward-looking loan kind at we're going past.But is about production is loans. the they review continue, grading we're credit really looking to short standpoint, COVID very talking in recovered stress and the probably is but the most levels lower growth we had mid-single-digit that on to that

which advance is conversations in And it's think forcing the should of I the work. it way so with borrowers maturities,

are the some So credit production anyway, trends of our sense the picture you where gives headed. of are risks where that and

David Bishop

appreciate Great. I the color.

Operator

UBS. go next to at Broderick we'll And Preston

Broderick Preston

quick. Will, you accurate? -- did to that expenses mid-XXXs, real wanted -- just said you on the clarify I is say something

William Matthews

$XXX Yes, -- million. of that would middle That's exact be the as I was referencing. in mid-XXXs the point

Sorry, that wasn't clear. more

Broderick Preston

sure just transcript live No, want make because mid-XXXs, no. the which... I to picked up

William Matthews

should point for gets this that's that us, the million. -- we'll that's it finalized be $XX me quarter, in not But let in does out not course, also clarify, FDIC special those assessment, which if booking include, all around not And it And of has obviously. numbers, QX. I

Broderick Preston

it. Got

Okay.

On content whole the portfolio loss on restructure, going nibble -- guess, point lower the due punt is some Like do sizable you maybe said edges, to edges the in not due have terms guess. that term that sink are look the could yielding nibbling that accretion? kitchen XX that more you're lower maybe coming that's portion around like portfolio I is I them? maybe of there maybe are around the some that next EPS near at could coming What in that's of to to you generate there months a look size and reasonable the maybe securities the

Stephen Young

is Sure, Steve. Brody. This

X else we to investment we years. anything want would would the I be all come be And capital the as and continue within of more think about the that we've it available it, look XX% EPS -- think think size, -- probably would we not think monitor As book are I at. about than to XX%, thinking and then portfolio earn or that would excuse accretion me, guess, earn back the do be certainly it on don't like side, we thought something back, about I or to so of about as

have bond table we mentioned, thinking bond you of about execution we're the course, think a as The as management. pieces good really same about has whole on I growth, the we're whether year. earnings other I'm provisions at whether whether But it's and -- them away. earnings there's think less been Will that have from over to really PPNR capital, socked the the And loan loss a relative risk. at where parts restructure, whether position the have glad the and M&A, same grown the the time, inside buyback, lens, looking the restructure, capital in it's that been we're on options last capital So it's

position So I we're flexibility. have a some think good in to

Broderick Preston

it. Got

think And Okay. then willingness buyback, ago. appreciate given to more aggressive just to that. share It trying that price the long I just about wasn't on be where I'm maybe is. the

I well well are where think was some decent slug of below was. it people below last stock. pretty back that pretty you year, -- bought We're pretty

and And think just the price think to would today, forward? level you I moving guess given would capital the the so stock generation be about buybacks what right of

John Corbett

Yes. our gun to Look, think immediately, price, the generating anything are but there's no we capital. and is stock to do we attractive, head

edges, you're But to us. it it don't the are you're nibbling around looks buybacks day-by-day price kind where looking a the risk. looks move. stock So at the in thing time back at But where the is. think the okay and pretty to cycle major economy to looking now, right potential credit it's attractive I any do wholesale of

Broderick Preston

Got it.

Okay.

portfolio gave in percentage you the think deck. I the SNC

I will it X%. which -- like have to are think you lead what guys was thought I that, happen the -- you of Do on?

John Corbett

typically just in not did bankers portfolio, are we we're it's not that when a hired credits and middle of these Typically, that we I of our of Brody, X% at but we've do these Truist. meaningful follow lead. from what Bank market credits, America, mean, part Wells

So banker limits, we're the hold to used credit. cases, just to we're credit. of for piece lead because a manage us trying normally, in the But that the works many taking

relationships, So I of think out lead one. only we XX

Broderick Preston

it. Got

if missed this in call. I'm then And clarify, just the earlier to sorry want I do Okay. I

revenue. the swap Just on

you the I environment here the income. pretty level the current with should guys to swap you Is have an have would been expect and this going that think down clear you correspondent that quarters some up expect rate of in more kind forward? interest of

Stephen Young

kind have times this just kind does of that is our income can points. that our points in know, see that will division bounce as can it's last trend Page quarterly But income the assets. is A deck got -- of I on other It lot, you it's Brody, things as around. see noninterest as XX and as it. of of don't basis high of It the XX -- the in XX to X of lot basis I been sort asset been low you noninterest guess, a frame And around numbers. over quarters. bounces offset our Steve. correspondent to up It's

So to the That from quite an in kind is teams, short at now, call June X% on not pipelines as -- the everybody treasury in to least markets XX-year up it. treasury the until XX effect close. our run the capital XX-year used but it of has gets

you rebound. sense And the kind our this said, would lower the end I and X% that We've next towards points. coming you we to that and about quarters to then closer quarter a been XX toward income the be XX guide, the at expect, with I XX short end look particular year. like towards get division be treasury points little Moody's [indiscernible] down in would the looks of of bit next be being basis instead lower. year the noninterest consensus, it and as think basis those down favorable more guiding like My XX-year XX of So of assets next to starts would that

be from So gets looks would the looking kind a look it. standpoint overall of lumpy at But a from a -- I'd that of it little picture, quarter-to-quarter little sometimes. how at

Broderick Preston

like announced maybe it some nice last And CapStar CapStar And question pretty stock on to the deal, today, Catherine's M&A. or the it. actually a outperforming on has solid and Got for ONB buying a seemed accretion is reasonable see. mildly bought follow-up they're well-priced night. which just John,

much doesn't be So kind sooner Does do environment? current than make investors that later when maybe of you about a something to well-priced about think come the too happy rather that wanting despite you see may dilution. with rate acquisition

John Corbett

case-by-case I basis, a it's Brody. mean

if along we're later, it. right the And So pursue business. rather we for open than came opportunity would sooner

I think it's be is between just Anything next the going and quarters. few possible. couple of far to over

be for rule I to something think opposed I robust the is accretive So out. It's half not I it attractive industry for wouldn't to think activity more was 'XX. it. But just our forecasting, if franchise came going and along. to I second we're

Broderick Preston

on think, again, talked you one. small the my for call. first loan quarter guys. just We then And know a I it. very And this, Got I last it's it's about portfolio --

elsewhere and it more keeps a but I home of up. different portion am talked specific than time, up, which that's I'm I anything some the at last just SouthState going that think much. trying you're of driving Is of I'm third-party right senior just going that other keep housing unique maybe as some banks there So is payers from seeing to what anything costs commentary about we a as portfolio paying of kind aren't substandard there perspective kind in now think, perspective, out interested well. the it accruing weakness was because to of nursing necessarily the

John Corbett

it's that. our you But team comes it loan Yes. our the I've as specifically talked really, But portfolio. about out, down point to of than to credit less X% labor.

I some think biggest probably labor, about that rates then hear going traveling costs get up. nursing now, the issue you that's the of interest right and nurses the shortage,

you COVID then still about major X desire in expense got nursing home people's to you And got headwinds. following revenue headwind a post-COVID. so the be And

the costs. -- is nursing issue, labor and the Brody, shortage So main the but

Broderick Preston

guys. a Awesome. it, good Have rest of I the appreciate day.

John Corbett

Thank you.

Operator

remarks. And conclude John conference that question-and-answer like turn closing Corbett I for would over to the the does session. back to

John Corbett

All right, earnings ring. know to If other busy give for any you. hesitate this clarity, great a don't everybody, with Audra, can all us provide morning. thank a We joining it's day. calls. us the Have Thanks, we

Operator

your today's concludes call. participation. you this And conference Thank for

You disconnect. may now

SouthState (SSB) 27 Oct 232023 Q3 Earnings call transcript