SSB - Earnings call 4 2023 | SouthState Corporation

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Operator

Hello, and welcome to the SouthState Corporation Q4 2023 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to Will Matthews. Please go ahead.

William Matthews

Good morning, and welcome to SouthState's Fourth Quarter 2023 Earnings Call. This is Will Matthews, and I'm here with John Corbett, Steve Young and Jeremy Lucas. provide up prepared for will we'll and I it open questions. and some remarks, brief then John

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

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

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

John Corbett

for Thanks, us. joining Will. Good morning, you Thank everybody.

earnings deposit SouthState quarter that growth see with You ratios leveling was delivered our High off the are customer can and was capital in that NIM basis quarter a nicely. level, in and growth is solid another loan guidance. couple but it with growing of consistent dipped points, mid-single-digit both. steady a of release

The always for a end the of year reflection. is time

SouthState, North South people country Florida. the fastest-growing census since new and period X and demonstrated we was where moved during X Carolina, quality asset Florida, back of it high-growth The turmoil the report resilience our the we're operate. Carolina a over deposit resilience the As million markets And last we resilience look surprising, resilience all month spring, the specifically of our of was pandemic, XXXX. XXXX last the on the to of granular particularly the that franchise, not and Georgia, the issued in states top have on and

to this of that SouthState ago period Recession, of retool during history announced that That bank, the the consolidation. spend of breath was specifically an a to was culmination The areas during significant guts a is X in management. years our opportunity and Great Merger years event a risk decade in month. catch the Equals of of was rapid our couple of a the company and technology forged

strengthen infrastructure and entrepreneurial was different upgraded is increased be affected of decentralized is every the culture. technology without spend the sacrificing We bank. more it our than in area goal that XXXX work platforms by to XX technology Our on to XXXX. technology painstaking annual in Annual XX%. and $XX million estimated It was spending our

from We side, risk meet with experienced matured our professionals banks On defense. and strengthened X heightened the upgraded has the the to the the of program of big OCC. management expectations lines

a years, and during But it Now and on long-term management impacted the gain. was couple for employees first changes risk the took customer toll technology pain of experience. those short-term our

of focus our place, the us so new pivoted infrastructure serving our a and needed lives So We better. in employees' technology power the our the XXXX to rather that was bank making other to been new engagement with customers' larger in we're to think refine quartile it And of largely back employee way now is technology. and to the beginning we've successful, the peers, than I around. top leverage

the in of Now the we we future the deliver work, curve, believe last and we as yield end a era years. hopefully, shareholder more outsized a because possible the in few that's of XXXX, COVID normal returns can future. approach hard the over It's

quarter. next team, back by details you for walk for pass preparing this to chapter. I'll the Will to close through I'll on our thanking us So the it now

William Matthews

Thank John. you,

touch relatively growth, Q&A. move few environment. to while a facing volatile the to noted, we fourth profitability I'll As on which in year quarter good performance a in soundness, you finish SouthState details solid a a was reported before and

Customer X%. X% sheet, brought annualized we rate. matched growth balance deposit growth, growth brokered didn't loan quarter replace maturing the of approximately X% growth loan of the full the annualized, fourth excluding On to our CDs year

X%, total with essentially as from year, levels prepandemic leaving end, us were deposits DDAs percentage XX% flat. full quarter a the another customer last For near deposits. total represented deposits quarter, down the X% grew deposits for we XX% at DDA of of

to income Turning the statement.

QX beta NIM point to X points loan the beta was to This points, XX%. basis XX line to X.XX% brings down guidance. X.XX% with from deposit Loan our quarter basis and and yields basis with to up guidance. were XX our deposits our and XX XX Our basis points consistent prior X.XX% cycle-to-date up cycle-to-date our XX% in in were

million $XXX of third the income quarter. with interest net was essentially flat Our

For NIM rate of points deposits XXX 'XX's basis in basis cost 'XX's, XXXX XX rose the than the in was X.XX% crisis. points in XXXX, year a Fed hikes full XX XXX of points to of while XXXX of basis March margin basis from the to XXXX comparison period mention points higher versus not

our which think I performance this manage value institution of financial the in core our change to highlights been base. balance it's funding challenging period While a period margin really rapid of during a sheet,

million $XX had revenue gross down QX. million fourth year's and swap line in quarter of was similar interest fees, from revenue with revenue, and quarter. million Wealth exceeding $X points QX, collateral of $X.X was and million, quarter at expense strong $X million down with XX from in our approximately had on guidance. income last assets a Correspondent Noninterest in points million after million to XX we in a was to $XX XX basis $XX.X record deposit QX for $XX basis

their key metrics compliment the performance report Mortgage special Association QX expenses of our the our our call. in for were some were Operating due quarterly million metrics. Bankers to $XX.X the the million, industry challenged on which of items in revenue expectations Mortgage versus $XXX we in consistently line quarter in and with and We outperforms our team environment. above excludes performance several this levels the assessment, third various track continued mentioned FDIC weak, to be I'll though leadership

to for to NIE subject mid- performance. expect impacted the high we by in and ], XXXs income variations [ ahead, noninterest normal expense categories in QX Looking

charge-offs in our points million year's from the million the points the we net charge-offs, points net basis total for the With from $X net loans, deposit $X.X approximately full loan for basis respect bringing X $XX in to for credit, Of charge-offs. and basis year. million quarter X or X came and to million quarter, $XX recognized accounts year-to-date in

the $XX against in million million was last provisioned we've over year, at X expense for and XXX million the reserve Our our loans. basis provision charge-offs. remain leaving $XXX approximately And for to of years, net quarter total ending points the $X.X only $XXX million, flat

our in deterioration. of CECL built under appropriately potential we So reserves credit advance

utilization For are and credit significant centered quarter was utilization by due were up NPAs majority payments, guaranteed. X% were quarter-over-quarter. in utility been loss up overall SBA, SBA or home company $X Loan dues and that in nonaccruals, are line we XXs of the loans not have our see in down asset turn these quarter residential equity on slightly. consumer in business. end. do which the past storm and reiterate X our to million, These quality since and NPAs mention our Special over driven portfolios. was declined government loan increase substandard content in I'll repair factoring is portfolio. C&I down more past XX% line XX% the are receivables of increase loans collected the and The trends, NPAs slowly, increased. an in of typically current

the shrink, included or AOCI continue in rates ending of if to TCE X to X.X%. have very XX.X% with our capital XX.X%, AOCI helping ratios We down move to strong calculation. our to were in grow interest CE Tier The caused

Our per the for up share ending grew $X.XX TBV $XX.XX, to year.

$XX.XX. average a XXX,XXX shares the of During we quarter, price fourth purchased at volume-weighted

provide believe we'll and a asset take questions. us to allows regulatory should be capital capital our We us risk-weighted ratios to to growth with great flexibility. Operator, continue rate grow range now that continue formation in and

Operator

[Operator question of comes the line KBW. Instructions] Mealor Your Catherine first with from

Catherine Mealor

-- in Just margin quarter. and margin curious to maybe right guidance this about The you're this with year, your rate you're for how cuts the your thinking your margin just about I'm with how how impact line outlook. margin thinking start came outlook.

Stephen Young

the Sure, question. Catherine. Steve. Thanks for asking It's

that's have went from within so our And, down trend. Page guidance that but We points, quarter and of between NIM basis page every XX X.XX%, X a you it we mentioned, on to X.XX%. X.XX% as show the X.XX%

which basis costs within guidance XX XX. points, to increased was XX deposit our Our of

So we about think assets, then rate assumption. forecast and as XXXX, it's beta it's our interest-earning deposit

$XX what the for of So reiterating 'XX, about of we several the sort we're for last billion. just interest-earning full That's assets the quarters. year sort thought

$XX thinking out. XXXX, we billion, So start we're

I range. was the think in fourth the billion $XX.X quarter

first that be much So coming to seasonality. I expect quarter's out wouldn't of different

what we XXXX. in shows then X second rate cuts the As we forecast, Moody's the rate the cuts consensus, And is which assumption, They it is which XXXX. in to rate in X start April. have relates use,

is X.X% the end is 'XX. On at we increase quarter, how you assumption by at sometime in end it. X.XX% continue would quarter see before funds our the would deposit the And 'XX rate Fed XX%. would beta, is year in -- beta similarly Fed cycle-to-date we deposit and second in we expect our XX, to you to of the cost get fourth So cuts funds rate which Page hit our

between in quarter. deposit the ] first [ So X.XX%, X.XX% costs

year between X.XX% X.XX% to the guess in And XXXX. in that that we range all somewhere we half sort would expect I exiting back then based range. full expect on X.XX% X.XX% the X.XX% of So NIM those the to X.XX% in the and be assumptions, to full first to and for half year would average

'XX how about of kind with that's we're So those thinking assumptions.

XXXX, 'XX cuts As about we're about depending X.XX% in in we somewhere that range X model thinking NIM in to on think X.XX% think that how we it 'XX, rate and exit. another we you

we sort the And play sort the and a is make kind 'XX of in X.X% range. when have X% the curve X.XX% or if would to of look showing is flat at last end XXXX slipping of funds this X.XX% were of of -- just forward XXXX, like NIMs Fed the XXXX lot of kind and well, I'll we curve, point upward out then sort our a a rate maybe that

So think to short, and it about long, the medium as of thinking anyway, about kind forecast. related we the of sort how we're that's

Catherine Mealor

really That's helpful.

one the first guidance gotten earnings in it's I've 'XX season. this think I

So that helpful. was really

Stephen Young

can we want too. You 'XX, that, tell

Catherine Mealor

an moving to there. structured you're And curious -- like feels about it's really thinking No, cost how that just your in that? just it. up, like are you've just play think we going such helpful. still yields -- your it's on rate assets cuts, you love loan momentum And you I I It got reprice interesting. if got how Even the margin. way be get the mean, way deposit is upward are up. opportunity I into I I'm given to feel

there throughout the the so is costs declines deposit just Or kind of then it momentum upward margin -- on just is And higher significant asset in stabilization these are what's more and deposit a and assumptions? side? in all driving costs really

Stephen Young

Yes. a question. No, it's good

So little we have to happen last XXXX, I'll just in of think the I we XXXX. rate going that maybe with side. asset And $X adjustable to quarter, rate talked but and are about In it reiterate. fixed start a over billion repricings

it's I XXXX billion. and think in XXXX, it's like billion $X.X $X

amount So healthy it's every year. a

in And of the to those of [ range fixed they're X somewhere years, so there. those are so for ] in XXX XXX kind all

As we tailwind than that. that's the be They'll doesn't $X be billion. X-year so that going treasury spread lower move a at much to over think about -- assuming

you've rates, deposit last seen over the our money about think a accounts, big months. that the increase market you XX in If

a looked think accounts about that think went and was of I CDs if lot in market so, $X or went the earnings billion our our up up money you negotiated And release, $X rates. maybe billion. I

have exception billion to And they've little of given deposits, that price. so $XX of to in negotiated total our portfolio our over that rates to we team we've about -- a managed

the we side billion our is have that, floating. floating of about About of of flip On loans rate XX% loans. $XX

to of other, So another -- that of the the not have And CDs each reprice front of eventually time. securities you over maybe those is the kind of look reprice. then but both and billion end perfectly sort helped. offset $X that will they we at curve will

over manage margin. we the to I anyway, to know if guess assets fixed rate helpful, trying rate help loans the your it. tailwind, time sort sort how So to deposits are versus the then don't about of point, the of negotiated big your CDs but I that's floating and and is think really

Operator

Your line Stephen Sandler. next Scouten Piper with question of comes from the

Stephen Scouten

level? can cuts? I'm you more kind we Do the of here Will, kind maybe of a Or this move the to back you percentage, this prior curious, bit shift of on was at potential stabilize mentioned do rate down DDA prepandemic think kind little we level. mix as expect to

William Matthews

hard Stephen, to say. it's

quarters think a don't we end of it's pace in end have would ago, percentage, a know assume -- to -- that where quite few think might given is we've it's seen what I that don't -- the few further up. I to from thought probably down necessarily, we this here. much change but it's I a bit it last hard unreasonable decline we're to at It's that really mitigated continued But that quarters. The has know. how further. it's hard the say go

Stephen Young

-- when X.X%. Fed Will's all the to of sort And pivot down point, I where But that's when it's that's at gone it's that a just does been and probably Yes. question. situation is it's that the X%, mean, a changes. point XX-thousand-dollar It's --

Stephen Scouten

sure. For

should about you've the you talked about kind we of have forward? and I Okay. charge-offs. relative obviously, to And how much provision think mean, moving guys how net reserves built

said really loss Will material or think you significant content don't see the I book. in

you So you this quarter. could think of And to think what's see portfolio? portfolio? it about reserve a charge-offs normalized given down, do for reversal in as significant start we directional this felt no kind you worsening Maybe trend big kind of the net your like

William Matthews

from that about reasonable normalize that's And several think were low extent Steve. -- I points. a expense. it, last bit for they -- to way a But think low the been And I very charge-offs year level. do, would the years. such Yes, expect last Yes. they've X it's they And the I to think impact provision our basis

cover deterioration But depending did, that the to model our the lead our as else tells So to we provision on reserve -- years in couple we the depending and highlighted, levels potential advance of charge-offs from build on expenses last economy. of could us. charge-off in those whatever here,

back far it'd it'd As I we charge-offs, there hard estimate. hang mean I could. net we points charge-off, it's group, look to great basis think as in number what for be to have every but than But experienced. higher year you be that could have XX certainly don't say below normalized a we certain good peer in at I if

Stephen Scouten

environment. wondering you I Okay. Good. last then M&A more for side in around phenomenally John, this your 'XX a just tough is coin know And to Maybe thing maybe me. the fared this here, of but guys Obviously, was well. year,

currency you presumably I'm for math think kind So down, coming the rate, a the little deal? and a year executing advantaged relatively would M&A making bit just better? of potential a how this wondering about

John Corbett

sure. Yes,

high-growth interest I've As marks. no in double really easier is prior our partner, great but existing markets, XX% I do prefer said suspect now. to a the your on open lower company. something, the guidance. we regulatory mean to We're if I business. environment that previously, right and is Southeast, we little point, the for forma ideal from to becoming for that be our would math rate markets tough Stephen, X/X with change And to down our our of pro in But were the we're

and it a or capital. quarter. with good We could in M&A. to got can we back the bought excess a we're updated But on high-growth little our capital that in Page X. standpoint, Texas. in a Tennessee We repurchases, shares if spot could type in management deal, of we've it'd market bond to map at flexibility I capital, it And we've think need extension we we restructure So were deploy bit from similar do or do to of market a deploy share be use a like population a fourth

Operator

Your with from next Michael the Raymond of question James. Rose line comes

Michael Rose

you'd loan where given wanted to your that maybe But down banks. loan some the to about is just of on on which kind thoughts wanting that mid-single-digit CRE come I and know expectations move to of as just the would very XX, can about footprint, since of get conservative areas think gas little previously I the as maybe cautious. wanted not credits Obviously, of loan comments kind more bit. strong some you assume year, a growth is a pedal bit out just the And are you we talked on some Slide get a they for be some portfolios But nature people's are the take chart. year. had of I just some production other your it's I that growth areas little next where think a rate push XXXX.

So some context there. just wanted to get

John Corbett

of quarter me production downward XXXX? if that, of kind trend second That to rates. quarter interest seen Yes, record think second happened precipitously graph peak what started we of interesting very and XXXX. you John. short-term Michael, in raising Page had in the it's And a well, Fed XX, back, on after is And That's of when production. the the you've steady

getting the what So it Fed wants. is

For XXXX, at we to year, for ended X% the mid-single-digit growth. we guided growth and

to Michael, kind economies, a given they for where 'XX, tailwind to be growth down, are, with XX%. there's down the with are of loans we uncertain pipelines even and that of an down from very made So are feel the where that's appropriate we in loan level the because they 'XX. are that are going But like considerably the be where of of year prepayments I the the about end were slowing rates cycle. Pipelines beginning unfunded funding of there's embedded continuing at though XXXX, in growth of slowing there's

considerable nice markets there's amount coupon than homes we're reasonable We growth hasn't us, available. more and people getting think there 'XX see growth? of growth, growth that in is are a and just our into and estate that moving for mid-single-digit residential until we've real a But decline. our we where do rates So really guidance For seen changed.

feel rates. the I about has in from those very activity with good been asset low an standpoint. CRE 'XX So credits quality rise in

a in just space. pickup as much 'XX as on a there it And is. middle the the continuous push You see little market with got we've might then treasury down, X-year C&I

area an that's that we're So leaning into.

I hope So Michael. helpful, that's

Michael Rose

Very much for so. Steve. And then maybe one just

walk the kind think correspondent us seasonal kind bit down the think this quarter And kind about quarter. expecting. through there's the greater what to think a step that the basis us know I reason of of some we dynamics rebound in you was there? typically I first as just average to kind fee XXXX? in range. a that, of XX of than had of XX in of talked little I through to assets kind a Can you were progress different previously might point be Any

Stephen Young

Sure. for XX Thanks, percentage. question. the is income Mike, fee Page Yes, our on

low You we can this basis said see to was course, of that was we're end the And of at quarter, of XX guide fourth quarter the $XX -- with of in saw. average assets. points the within we that just million our XX range XX it what

in sort reason Our better of interest the a rate-sensitive the that sort be the the of they sort income the to that like normal things our just fourth the going year. XXXX. -- of points and like are the is the normalizing the perspective. would to upper bit the assets the for of from for XX the of first half in had in kind average guidance probably half just for mortgage perform basis businesses quarter, of yield XX and expect lower little to on end It's year correspondent, curve more to year. and we're like when range, range just We And back the of start of fourth same the -- reiterating end noninterest the we full for

to kind assets expect that income that we to XX as the of XXXX average you level. which XXXX, into our So would return was to points, approximately to XX take noninterest basis

of levels. So a things to businesses it, bit kind variability I call is those to, interest-sensitive get in normal need back -- more yield margin think for our little and sort more but curve kind normalization we the the of way of our I'll about

kind So about it. we're thinking how that's of

in interest the ramp income probably until with swap probably our correspondent, volume And probably not like probably to think don't less start first because improve probably -- a towards the the you at the quarter. correspondent fixed quarter, cutting of -- mortgage, mortgage as It's but lack rates, about fourth year lot although volatile to business, they not that's the this half is point, going of in business think going stabilize. of that the if and rate the I in mentioned, the industry back rates loan you

Michael Rose

just John. I then helpful. one more can And squeeze in Very if maybe for

your struck time, on had time reflecting call the up think of the spend by comments costs, or I in Just X at was X much I million. the beginning technology how years' $XX around increased years'

around forward, you Or conceptually, larger Because that's to As rehauls products couple of it years. lift think technology in going you edges? big a that or is about need do? the more cost just pretty any in just a

John Corbett

sure. Yes,

I the think feedback focused our our motto bank it getting and out was on the a technology. was employee experience take of how the team, to and from for friction experience, XXXX really customer better building

years. drill really last We complete For the of it's XXXX, kind put the just of in couple and those theme, process finish were to projects. is want that improvements and it's technology the place already the

So got to that the we've there's really in technology not, Michael, platforms update. queue new significant

the that the technology our mean there's think level mirror. always last growth I nowhere the in to few spending we've near years. of category, going So increases rearview but is bulk in the seen I in be

Stephen Young

one and the period technology. so make cost other to an opportunity when used The would was areas Michael, certain X of take out make this was that reallocate reasons ago, to remember, as and it. needed an that we main the MOE is investment technology we we in years we to only that it back the There did did is, of Steve. comment I

of sort been And so story that's the years. the last several

Operator

of line Truist Brandon King comes next from Your the with question Securities.

Brandon King

of stay are kind good in rate year? similar what a of do throughout kind you assumption? Or that the the base near-term growth think guidance but is on range appreciate expenses expecting case to you So expenses,

William Matthews

full that then in think those around $X et a compensation, out would I'd Yes, businesses could consensus are, that Brandon, is cetera, of of we some thanks. I like for year, the revenue differently, volumes if at that But There that pretty think about around this that expect of expect The move the there's billion, course, what some in for on fee fluctuate -- or what particular $X we number say -- turns up spot year, point. some components I good full us down. the based has and feels right the we see billion today.

Brandon King

on And changes your policies? with are overdraft CFPB not, potential guess go the could if what be And fees, effect? considering does impact that proposal, if Okay. I into potential overdraft the you any to

Stephen Young

some We maybe ago. XX is this Brandon, Steve. to changes made XX Yes, months

would October any contemplating be paper is changes. earliest a I a approved that 'XX. it, know understand aren't the in ago. few there new I as But We new of was that out days came

on of So course, anyway, thinking I it. thinking And haven't any on But for it. that think of it's about the sure. probably have about too how would math we're run kind But effect that's just us we're early. we

Brandon King

a And continue near-term context XXXX, you even tailwind in or numbers, lastly, the looking I potentially pricing. turn maybe could deposit know around into in as a give repricing? to CD And near term, be you're when some headwind doing could that XXXX? on Okay. CDs but then potentially then quantify

Stephen Young

Steve. Sure. Brandon, this is

of $X we think billion CDs. about have I

due in of XXXX. come that I roughly think XX%

amount. a I half, fair amount not have due want it's the fair quite to quarter. say We a coming but it's in first

CDs, we a products continue shorten So repricing, as think those retail pretty CDs to up. generally nature, short of -- we and couple our nature, just about we're retooled are to retail in by

at XX% the total CDs deposits. But day, only make up of end the of our

of it little tailwind. So bit will a a be

I the probably exception we've thought as think the on put we it. about more or market price money place liability sensitivity negotiated rates the is

Operator

comes question UBS. the next Varga Samuel line of Your with from

Samuel Varga

little margin go just a for I wanted the to to discussion back bit.

to I'm levels. the digging just on and obviously, current not is -- into to 'XX, the the Just that too you're longer of far guys, clarify than 'XX to flattish curve assuming end mid- the staying clarify, but

So there is a steepness occurs? that

Stephen Young

Yes.

of Moody's is at I that consensus range. of today, -- believe If in forecast, lot they've assets to somewhere and say you a X.X% look 'XX, sort time take, we which a on. put where flat that cut that curve end the by by X-year want all I X the rates the give is so our of in range, or the part, so X% it's the

other be but that's assumption year, for the our rates. probably the of might part sort then if repricing of So X%, see -- don't to course, anyway, X-year down other And how. up goes curve X-year if to our the of went We would the there's issues. stronger, we rate have X% But issues. next that's

John Corbett

But you were saying that for the end of 'XX, Steve.

that, 'XX isn't of there is a it? is than higher at end little consensus the is So Moody's

Stephen Young

little X.XX% think. And by end X.XX%, It's between the and 'XX, it's around of then somewhere -- higher than a I X.X%.

So yes.

consensus I at the you our I earnings was like of X.X%. end Moody's X-year the As think October, think had when call, know, we -- X Treasury

for So move it around does sure.

for So we'll out find sure.

Samuel Varga

do then And what for assumptions of betas? terms in sort of 'XX, have betas That's for it. helpful. down you down deposit very the Got there

Stephen Young

Yes.

betas, take me a from a bit would and Let I always about a this. our it's of there's betas, view the of longer-term on about think as lag say XX% from our But down modeling, all experience I our total. because in

XXXX. about XX at beta, of XX% they peak, rate back would pressure but ramp cut but if rate consistent do by a know and it XXX funds a linear first a time And little maybe the basis But of I'm there's look that run and if to Fed history. kind our XXXX, So couple you you basis kind to points back that It's years, a of math of couple be bit it not it it. still always really in takes cuts. be talking to next of points, X.X% over from is at the coming lag we're for or instance, on our relieved X.X% I I would expect

Samuel Varga

you That year-end? interest-bearing sense. December a to the deposit quick have Do And spot or one. costs for just makes happen

Stephen Young

we don't. No,

William Matthews

John. Not front or me here in of

Operator

Your next with question comes Gunther from the line Stephens. Russell of

Russell Elliott Gunther

couple hear point. contemplating down The through the you're Did Just XX% update clarifiers would roughly compare a XX%. quick of that beta the to at of that and this that right? I cycle,

Stephen Young

And deposit Yes, beta. be would that's that total right.

Russell Elliott Gunther

Yes.

Excellent. for would just you the lastly, bond Okay. restructure of back for there. if buying kind guys mentioned done accretive balance, guidance you kind that then confirm would NIM to And us get be Understood. that as of 'XX. stock, potential bond likely And walk versus process you the potential through then thought restructure just any a could

Stephen Young

that Sure, about Yes, Steve. call. Russell. we've on the It's talked

think talked calculus. same It's was capital. uses it's quarter, the about our I it think about trying it. think really I of of to last just And we kind

about think That's up we'd of thinking terms it more -- we're talked and about fall, we position earn best If of we balance XX% period the than about X the obviously, back We're we positioning It's to just what little the sheet. sheet, future. thinking our in how how and maybe liability a down, back balance a If thinking about portfolio want restructure to XX%, to rates do thinking are we how about position. to think of come all I think lever. a years. be less to than about bit, it. would kind rates sensitivity

of But the quarters. the it about to of we think Certainly, do X. or for that couple thinking about X next want been last we've And time it it. course, to for takes

we level have the a our lever. bond set And on way a from pressure, restructure. NIM and of something that's some the higher capital If that's on to that that's side. the It's it's just on perspective your restructuring continue So point, it. they can But to the has table. a rates certainly

William Matthews

any rate. things, from today, continue and see formation climb to you as the noted, as And are with Yes. about CETX those we user's sit our CETX we option. does more luxury well. there. the that I do forecasted that than give we mean, that certainly, share XX.X% based risk-weighted where asset us going repurchases If And considering to capital capital growth on think one And of you're don't of

like capital options the we've flexibility think with mentioned. we continue got today all we position those So about to our and

Operator

D.A. the line Tenner Your next Davidson. comes of Gary from question with

Gary Tenner

I kind the wanted ask asset earning to XXXX. of for about mix

growth. I earning range $X.X quarter billion what with somewhere net looks the loan think, the assets about, fourth of talked from flattish of level in You like

So the of cash from perspective projected the for you're balance sheet the would loan run about the how thinking a And cash growth, as bit? a the that about flows of lean are little what funding of asset you side remixing kind portfolio securities year?

Stephen Young

think $X.X this have we about, Sure. that's, don't I don't think changed billion, you whole a really mid-single-digit I that. something -- I if $X.X as lot, know, billion, growth, it's loan guess like

$XXX We a have securities ] our portfolio year. off on reading somewhere, million, [ rates, million $XXX depending that's

that built assumptions that would deposit imply X% in X% So you growth there. about have to

We end, it's in in it think front slow the end. probably the back ramps

half. better end But you bringing assets I If think earning to back, QX $XX I make they would is -- average average about stuff, -- our our and in was back the expected if imagine liquidity of for that the in sure year billion. all get clear, just that the so system up would that

those Our that, than -- up if little it on lower that a than based end -- higher little out course, will a assumptions. start of

Gary Tenner

Okay. brokered I press at can the of year-end? with what the are then balances brokered the just reduction tell appreciate us commentary in the that. release deposits, And in you

Stephen Young

billion $X.X run just balance have bit that's that off to year. fortress quite then, we of sure I March a banking and brought me, in I of think don't so. course, have down yes, million, over over the really situation, during up the it it's of or around that that plenty $XXX front we stepping sheet We've -- took $XXX but make million liquidity,

we'll least somewhere think average first in about range. Historically, about I in deposits. certainly XXXX, X% I think half, those the As a potentially grow replace little run be will bit, we but it at of and it that

So million somewhere billion. it'd about billion, be that $X $XXX don't know. $X.X in I

is run how rates. depending in on there typically Somewhere we it,

Operator

I time. call will remarks. this the John Corbett at questions turn to closing for further no are There

John Corbett

lot All with know a of guys calls. morning I you have right. a busy had

And you day. models, any other you to a have on can ring. great we us don't So joining If us. give for thank a I provide hesitate hope clarity your

Operator

you joining. today's thank This call. We concludes for conference

disconnect your lines. You may now

SouthState (SSB) 26 Jan 242023 Q4 Earnings call transcript