SSB - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the SouthState Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions] And I would now like to turn the conference over to Mr. Will Matthews.

begin. may You

William Matthews

welcome This and John First XXXX Quarter Steve Good Will to Matthews, Call. Lucas. is and with and Earnings Young morning, Jeremy SouthState's I'm Corbett, here

and some always, on brief questions. As understand all the release can our you I of investor and will presentation, We remarks rather, a thus then Relations regurgitate copies all highlights but move John website. few information, out point and into We won't of earnings and read make moving we'll Investor before to our the try Q&A. which interest on are items key of to

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

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

John Corbett

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

with in high of quarter SouthState and release, our that modest seen growth At but level, positive and guidance. delivered solid was loans a you've As it deposits. earnings was quarter consistent our a steady another both for

grown good end over guidance ratios group or dues, interest near and non-accruals on the And our past charge-offs, but year. are be bottom. at in quarter of have with to margin dipped Net capital the last continues the the declining should and higher peer to quarter. Asset low every quality all end of be our

going understand macro every will investor, believe look different of other the to the we region of we're the is dynamics like. what the trying Like risk and yield the banker time, At the country. curve broader same to recession and be picture, every in

few loan the low pipelines growing November, of took the our fall. last stayed by markets, early XX% to the again, have study and which level the building, following turmoil are, same the But bank is our commercial before banking through seems about they and drop summer momentum surprising, banking rates a started encouraging. they we As in and pipeline But now activity, sharp returned and months be spring, turmoil, they CRE much where is the last to not slower. were with

in So the been the nearly momentum all growth portfolio. pipeline and has C&I

in ratios, they've are And that estate, our we to putting migration, it the from clearly lowest rising pressure In South and see a real levels X job commercial loan servicing rate team is of years. Dan and service real trends are for Bockhorst on benefiting at fact, debt concentration rental been as the great and while doing analyzing all ratios types CRE rates our on and portfolio. are credit interest in construction relates net both coverage commercial disproportionately the estate. our

up XX% markets X office are outside in X% outside to markets compared in the Rental markets. multifamily and XX% for XX% rents In our our versus have XX% to our compared are in our increased rental markets. outside last years, up rates industrial rates XX%

more can sale in Houston, portion and SBA division a information. the government expanded team contributor to the $X up mortgage were under correspondent billion. sale loans. packaging some This that be in team assets for of continues have guaranteed management we Wealth in quarter. and and gain We the up. improvement the of management reliable you and we opened give over a income, of fee saw experienced as margin is a the with new growing now recently Steve On our on And and addition long-standing specializes based

year, level return we've in on last finally, And mid-teens. balance billion assets over earning it's $XX sheet, as equity think maintained the we common in a management, a tangible the about while capital

seen a every our increase As we've capital quarter. ratios result,

Our sit at CETX forecast ball. And play know at currently significantly that X.X%. all yield forecast have mentioned thing be I the a only we increased loss is that earlier to we're currently And sits which about trying also wrong. sure our our the reserves, of don't obviously, economists for loan XX%. will and And curve. crystal We've we all

in landing Will and to have a the goal at opportunistic position optionality. regardless walk higher be the is on quarter. to if landing, capital it of And pass I'll we're flexibility soft to all. a landing with now back or our So these through no details a levels reserves, we perfect hard you

William Matthews

the Deposit forecasts basis Thank quarter the basis with basis as the increased at in range quarter's and NIM with of at our above and was was points. costs XX to came you, noninterest lower line for John. points came average cost income was in Total in at end guidance deposits X.XX%, line assets our last of at in XX guidance X.XX% increase points, less than guidance. which X revenue

to X at our was increased mix to beta our from increase, XX.X%. slowed. QX, cumulative cost deposit Loan XX.X% of total basis total though loan beta The in down That DDAs XX%. mix QX's Deposit average average that brings cumulative deposit yields deposits and the of shift to shift was have points. to XX% appears part

our ending Steve average guidance in beginning, range. give Q&A. mix on color However, the will were all in QX's future XX.X% some margin and the

million income for $X.X in over noninterest was about that's but million lower net sequentially. million essentially This line. our and a proportional the mortgage amortize Noninterest on income collateral. QX, revenue QX, these the to variation nonrecurring versus losses credits swap of adoption was due items, passive to better and the reduced income $XX $X.X adoption partially and down NIE interest $X tax with million revenue housing shortens day. credits. by million declined period to was interest one the Relative income margin which fewer $X income amortization low excluding $X.X by driven million Total by beat higher. NIE moved method tax net The declined

on for QX. adjust Thus, in normalized and been comparing if for would NIE QX been would a basis, QX adoption, this down down have QX QX $X.X million with and you PPNR from method versus compared NIE accounting have QX million $X.X PPNR

had We positives NIE. and negatives in some

The as was and first quarter expense. associated business lower had the development projects FICA as usual higher by XXX(k) professional with lower travel offset expense, and which fees well

million year, on full to expense in think revenue. the a the billion vary of that For estimate, $X course, still dependent, with $XXXs good is area we NIE items

to a and state the related tax we up tax expense amended nonrecurring returns to DTA to of X driving addition items by respect income I state accounting mentioned, revaluation in taxes, the impact With million. method had our $X adoption

effective in tax unanticipated the quarters, we XX.X% discrete any nonrecurring adjustments. other future see absent expect range, For an or rate to

X $XX.X charge-offs Our grow net caused reserve million by million provision in total in for losses points X.X%. versus our to credit to basis $X.X

QX slightly. swap that costs. NPAs points addition loan floating could downgrade many selling our borrowers saw of an lower approximately a subcenter I'll be balance and was margin migration with that loan their see With at one that XXX% this that by largest paid expectations are versus if our higher or so only to the loss loan of the reduce rate rates off downgrade. due forecast. credits portfolio price using the and we losses of risk based basis of to continued they to these note many will That the we upon fix were point current very list sale down not the the We being to note I'll the after from do continues our curve, for a but substandard so, expectation property significant as or reluctant to safety in balance. by quarter with interest rate amount some clearly QX loan due loan was into in substandard XXX evidenced little of monitor rate as their that sale. our

and annualized ratios annualized essentially deposits Lastly, healthy, up capital We balance of loans in front, brokered us optionality, plenty very on in with with quarter, the was we XXX,XXX with our good growth the X.X% and another position up remain X.X% repurchased a CDs shares flat. sheet believe. putting moderate

questions. we'll now take Operator,

Operator

Stephen take from [Operator our Piper with Sandler. question will Instructions] We first Scouten

Stephen Scouten

if guys was walk just can about kind here. through -- NIM you I the of I'm from thinking just wondering

X last quarter, think I 'XX. cuts and in in were we 'XX maybe looking at X

just given NIM? in that curve move how the the forward So might the and guidance on shift your

Stephen Young

Steve. is This Stephen. Sure,

X.XX%, As you to we X the continues mentioned, X.XX%. and deposit things: beta. just Kind were forecast rate our framework going interest-earning give costs NIM the deposit last forward you of of assets, guidance discussion, at our were on it's kind quarter, of

an be we've billion. on full $XX our assets, first would So part, mentioned interest-earning average around the year

X% is investment runoff loan think still think So no of to there's and guidance. digits. growth we sort We portfolio then fund change that mid-single growth. X% deposit the use We that to loan range, the is really growth to in

I interest-earning that from So changed. think really an hasn't assets,

I mentioned cut 'XX the last rate On Moody's X X rate 'XX. cuts and think in forecast, in quarter,

X baseline X cuts 'XX. and XXXX in shows quarter, in Moody's This cuts

fewer cuts we're than So that's rate X less -- projecting. X originally

expect just piece that quarter. to deposit our we basis in to X third going second The cycle-to-beta increase of Page costs is deposit forward XX sort beta. the XX in points XX%, and at would the shows

we somewhere get Moody's some a mid-XXXs in third peak in assuming quarter, deposit the costs. is the the rate what we on And cut -- says, which baseline would

guided fourth we rate assumptions, in to which us expect X in would X and higher is in we versus the think the those start XXXX. XXXX previous forecast X.XX% end quarter to in X range lower NIM all cuts only having for in based the the the from really sort I mentioned, year X.XX% the the as on to And cost difference with really between first quarter, of about guidance So cuts, X.XX%. points cut X.XX% you and full end basis the And quarter. the

that's we're that. about baseline and any on happy based thinking of Moody's answer to So on the kind questions additional how

Stephen Scouten

Yes. that's helpful, No, Steve. really

then a change you're NIM little lending, better that does with into And so C&I based change, this time? dynamic slowly if over cuts. you is slightly like on in start guys the does more move liability-sensitive practice And to that more look that

Stephen Young

Yes.

quarter, for book be continues of yield us, run. think, how your one it flat, rate affect margin. points. And the sort this in the questions investors kind And tailwind probably over think, rate book asked but basis loan if does us X went think time, we've Stephen, a -- of to about stay it loan I I cuts of our I rate I talked our NIM? fixed that total changes that does materially up, short mean, our don't to have fixed is that anything

rate the XX somewhere go-forward and in we'll basis, the points So cuts. of on higher yield between see movement a basis probably continue in X for assuming to that loan longer

up continue And go deposit and on XX path. this costs our if probably will we between somewhere X

see we each So bottoming of somewhere think it's kind NIM cut. And rate us, NIM happens basis that from of sort whenever out. cut that then and of points per X here, X and improvement between we for the

of it some X.XX% end into being at how we X.XX% it's year cuts, current And that probably getting the range see to in sort rate thinking range in X.XX% cuts, no like, math, so have we're X.XX% point. sort we expectation. by if you we probably go -- the But X.XXs to of upper that's is our X that the that can if about of if we're

Stephen Scouten

what hand might just your Got you higher me. longer? metrics then for what coverage of metrics service kind And potentially rates you the for as looked what as or have higher? thing it. these the last you at happens a on stressing showing higher debt portfolio of for of as whole? loan for Very gives the fixed Do And What guys reprice loans have helpful. like that kind you around comfort looks any kind rate to book

John Corbett

in a tick a subjective downsized that prior in quarter, Will -- the rising portfolio. the point, predominantly quality few we then loss substandards up and your story. a of content it portfolio. for the And a metrics it then said and really had our quarter. tangible bit nonsubjective quarters, But we little asset is up as tangible back, little went don't see in Stephen, it there's office And than rate it's tenant metrics. grading to some this Stepping did there's Yes. from last earlier, subjective less

seen banks charge-offs, all the tangible the And approaches we metrics, non-accruals, grading, we've were over past we've quarter. about dues, as of down acquired The different then think lot for the loan a years. in

got XX% If we substandard you it no millions approach cash has guarantor in a risk some Our is $X loan below loss. simple. is specifics. the breakeven grade liquidity. if of has I'll equity, cash even it flow, give But There's

it's off mentioned, and a market because permanent occupancy, a about on of in first it's basis coverage substantial development it's loan, in to question loan floating substandard added about it's as your quarter, debt fourth market, is rate points because it the then XXX the in a XX% added floating the but stressing floating rate. profit. quarter Fannie one go in X.XXx they the got flow the a it's than back largest paid And going multifamily that it's yesterday, the and the a reached got rate cash current Mae less fourth largest Will scheduled to quarter, fine to Our Georgia. kind the exit service to getting I checked it, at rate

shows ratios. risk quarter-by-quarter the that debt you kind rate years. or of X next average about the loans reset says gone over our of So got for we're that deck next we've X our something in we've year We've in the detail the per estate commercial with deck coverage X% years. And real reset got the service in at X%

a not all still we stress they're the those lot. to it's cash low the flow So rate, current in as And Xs.

see a just we move the substandards don't there So though even may content of lot up. loss we

Operator

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

Catherine Mealor

follow-up a question. It's

of part the So portfolio. larger in kind loan there that of that? Or bit what changes talk speaking and are within saw loans of of about gave on and maybe kind -- increased. I that average the if is guess some kind the Or But little credits? the just -- that there your the size love it risk larger -- the lot of and is we is know substandard? of to of are I within smaller couple a there John? very you you -- about were some any a some it in low, the kind office could of your that And that's size of substandard are average that, credits of details credits just a of of kind multifamily still we

John Corbett

Yes.

at up probably first there's to X office Catherine, fourth So that coverage, loans a or XX% going X.XXx a of of the loan move, quarter. service fine. that's It it's permanent those, the loans XX% X mentioned, in the quarter, market couple debt to largest which make the is or the multifamily go that in There's I be will of in there.

a guarantor, is but on there's them good story, got location. that gives remix tenant that's think $XX One we of that. a $X you but million, the might it's million, a the that or range, $XX in million don't a one take of reserve kind in loss We X. good flavor top of X There's of

Catherine Mealor

credit to your that would basically, you just you're move be the would and Will, on for of then that? about borrowers' said -- helpful. borrower chose fixed, dynamic from Can floating to talk what That's they kind comment, And your seeing the appetite the [indiscernible] be if you loan fine.

William Matthews

John the Sure. I the with in lower to in inverted be rate of one the essentially, want can first though lot rate the a that down. yield I out. presents and the many the they quarter, don't I curve, just borrowers go I what mentioned debt that I'll will in like cases, in to, remarks service -- exit that have even will a would and at property plans the requirement But happened fix leave rate. that fill the loan fixed opportunity. mean

rate at but game some may and rates maybe not -- maybe that they're playing little permanent a from think stage go bit the market, go plans the here. to And have down the to

period I All Some be so or market. go can't in may yet I to in finalizing play factors, of are think, stabilization kind early stabilization in permanent period, there. those the

Stephen Young

you penalty sell then a add right to prepayment that, before And Yes. maybe obviously, wants that nobody it. just

So other that factor be the would there. probably

Catherine Mealor

sense. makes That

Okay. a you that's there's this nonaccrual? that you think seeing are driving of all That's that have and rate substandard your there of dynamic more you're likelihood may classifieds you high look Or that at you're migrate it? great. from it today, is as they still, at into or just looking any And kind

John Corbett

dig that due Catherine, you past When points. the of XX is portfolio, substandard into that, Yes. basis portion only

not issue. phenomenon. is issue. this payment this a is cash that really, So because we the is This of a collateral not really rate just flow It's issue think temporary

William Matthews

our portfolio don't we say crystal know not, that last our And know, content. in regard. loss to have up certain that one, it's NPAs secondly, us is, following the from as team as we through pretty reserves a X I'd we've for here Yes, in not -- deck, years a Catherine, little that proactively the built significantly It's things digging well. ball But highlighted bit. move our material of see from couple we does our still you as hard

Catherine Mealor

the year? the scenario versus mid-XXXs to maybe XX the that sure. just still higher for the that Can peak a on of half the scenario by XXXs cuts kind deposit still a of increasing of think that about said all it's you margin start to kind about we and amazing to higher basis in rate range margin stabilize. -- And longer points the the is that clarify just that you deposit costs wanted the that do rate just credit, if about of but you scenario X you for X That's are longer on wanted out, then of don't get those -- to in really you couple ask thing dig talked for I -- in about, kind quarter costs where kind you out Steve, back you thinking I that to think helpful. able of Yes, I talk things. laid in one

Stephen Young

Yes.

can I'd of think general the deceleration this is bit that a XX I that in never costs. did bit But see we February, by commentary we're even say you post month or little little maybe days. right a of now January, measure a seeing deposit

Now again, X been there's reports. inflation -- X

so the costs [ we're is, I do don't ]. think seeing is know. I moderating that answer anyway deposit But And what are

the industry, we're Fed still your You've seen But think that are And through if -- X.X% still I far. to too. deposit funds seeing so is or that in December, point, if modeling be the thinking be? somewhere it, X they're would points the I it, a where our XX is quarter deposit between were think we're about way costs to higher. basis costs

loan of yield kind we go that's -- thinking great of ball Our going think up longer, to is somewhere And factors. hold because crystal we're to of higher would X in not it. that in there XX, that's the on the but for X would those is margin about how But there. kind

Operator

question Michael Raymond next We with Rose from will our take James.

Michael Rose

for Maybe Steve. just

Just and the the and the that income components fee thinking at about asset the a relates get previously of ratio, if to we -- longer was environment the just had wanted fixed average swap be kind it your kind you business, understanding expectations the for piece of are you we updated to just of and in that team but maybe kind higher that kind this laid how end as higher then which out. of added just to guidance of and other correspondent to should

Stephen Young

you Michael, as No, mentioned. Yes. guidance, the through

but better you to mortgage be year. of XX as mentioned, expected, correspondent. your rate-sensitive interest businesses, we much I'll X in our or than $XX So and one the points for that than one which guided primarily, fee XX higher great tell honest was being being million quarter the you have was half to you, fee And first we to XX income, our with mention, basis was income a

to 'XX, it into we So was the back in assets half XX be start in get I before rates, basis cut XX. average be think of noninterest what they XX year first of cuts then and moving would through half. we to then XX mentioned really to XX that the until thought in And sort to we as XX rate income they as the would that points

would way little the bit. just And say been characterize I kind it, it's I'd a delayed of

that rates, to So things expect will And and the I quarter, our to our XX if swap points desk as to fixed then XX changed really, they income kind of gets, that the XX assets of noninterest other average points. XXXX XX, to towards don't our XX [ is which ] cut that would to to create has the basis income is XX end think both in income volatility sort of assets. and basis XX XX for to for third they be we in some that, range. 'XX basis guidance rates the mortgage, average and And been really point what noninterest until year, cut

of the some XX and or so of as businesses up to then up is and to of So the at get until we pathway of really a X it of benign, there, which movement cycle, lows then rate these seeing normal. And we'd is more kind kind go we see move we're sort basis start will XX, rate down bit points. cutting kind from it

Michael Rose

for bigger your John. been people but to versus get the I And make sheet for where a to sense borrower a starting pull balance loans very this willingness environment of always get sense for I guys lot the But creating to just have is you the cycle. demand point appreciate competitive the and know to And hard your at a banks in great opportunities with marketplace? just know wanted that are one a helpful. in then the for just back, cautious are kind a somewhat And you I have view. landscape? of predict to That's wanted world really economy, and it's maybe it. guys is

John Corbett

pipeline prepared has started spring. We But November, really our they Yes. demand Michael. really remarks, Silicon up, is Valley after shrunk up. Borrower in said picking last in the

manufacturing not based. a the little think the new vehicles in years one in CRE-related. X clearly, the there's of about It's to plants of of every plants So our lot story, net Southeast, over -- a and last We've pipelines November, the $X broad is since Southeast. thousands but C&I. It's new batteries there's migration are opened When Most XX% those pretty it auto the and story about of X is for up you jobs. billion. electric

were are chain back The up fewer not But in and were. speaking, to cost ports Generally slack they than considerable maybe is backed in has issues still hospitality. Savannah Charleston $X,XXX white there labor still labor construction supply there's There's container. down tight. in a before. and shipping like some there's come a Container collar jobs, but shortage

So to is to rate its increases. the overall, it and Southeast these grow feels to interest like going continue able through be way work

Michael Rose

you Maybe just like finally solid. bit of levels again pretty common capital guys a Very looks this me, quarter, for little are repurchased stock helpful. your it

thoughts where buyback. given I on what most processes to for peers. any just you're stock get trading? the premium Just are there But thought is to understand the the sense a wanted just

William Matthews

Yes, Will. Michael, it's

though, think optionality us a strong the to flexibility reserve things we have I use being attitude being our see of opportunistic that think when buyback remains grow organically if window weakness authorization, to -- capital execute one allow open, we and is with the to and we position strong that think capital. that I having also, from and to value ability other a particularly we

for the accreting sense like continues make we probably position we're I sitting So it, to we able we flexibility the think also And strong that. capital in. of with to being capital here do think like but something today,

Operator

with And take we Truist next Brandon will our from Securities. King question

Brandon King

I accounts, as customers, kind So as around what on of acceleration comments et where I saw guess, follow cetera? the deposit costs, you in that of type to describe wanted some the far Could the in of you type up the acceleration quarter.

Stephen Young

were it's second costs. it Steve. points. I But in excuse the in a XX, think costs Brandon, me basis it I on me, it think -- deceleration XX think Page deposit shows in quarter, through, deposit I think. quarter would I the our third -- let the quarter, call up second Last quarter,

in think then fourth XX. were first basis were in I they And XX -- quarter, the the they up fourth quarter, up points. the

we been sort of some think the the in happening deposit first of a it's remix the in pluses there's down. first some bit So of the And and as at about I a look the coming -- guess, seasonality. I base, I think and as minuses quarter, quarter.

seasonality. deposit million, first Those would little higher be typically cost bit have So public ran funds. some which and minuses $XXX in first those typical around a just quarter. is there's down the Typically, the

On the quarters association really deposits, cash million, have $XXX And had growth brings couple deposits last a lower positive homeowners we Jarrod led that by and team a or bit of good a management business of a business. Hurd. lot significantly our cost side, over over in cost of the team in lower little of

couldn't call call accelerating, whole but I wouldn't So certainly general look deposit it a I kind that within would as I of at it there's as it, a -- bit rule. of decelerating remix a piece,

Brandon King

was referring of, alluded kind kind after pickup I to the earlier. to of Okay. you the CPI reports guess, that I

Stephen Young

may have been No, I Sorry. misunderstood.

to reports third, second, that but X is or in that fourth know that and quarter. at XX higher is third deceleration the will longer, that's we know look the the points fourth was to I the deposit as versus these continue quarter, hard last kind for see we I a costs why how that how of know if we deposit think our stay plays what I XX to out. we ground CPI as in other was for a see, saying it's that on deceleration costs see of we But But quarter. we a did don't quarter, think actually what during little basis of guide bit of sure.

Brandon King

Okay.

movement view, potential to regards in really of guess higher? a but if you I in And even Okay. if stay kind while loss substandard, your here for I trajectory not affecting continue do how credit, But long-term in rise loss in content. the special and recognize mention credit yields rates see to

John Corbett

for We're longer. the that trying question same content our credit might from and loss to understand a to we're ask and come higher trying forecast where team in

of Credit those where So a his day XX% Steve but in consumer in probably SBA thought magnitude XX% be the losses would the He would thought Dan, losses asked not that He whatever potential that was had it would would answer Chief the the and of office. we probably I and then XX% the losses, other kind the meeting losses. C&I come of be from in thought would portfolio. our other smaller be be And of insightful. Officer, and cycle,

to no or no he loss little loss in retail or very content industrial. saw So interestingly, content multifamily,

was ball of that like there's answer where potential was doesn't that's of what now, his but he magnitude at an look kind you this. Right much magnitude sees thought the of can't enlightening content. But it I all. judge So loss crystal

Brandon King

curious, just those with he as comments of sort far kind of... assumptions And was as making what

John Corbett

probably across is in would And the it's to and X-year for think I a, range, be kind basically board, X% the means noticeable assuming longer X%, headed treasury curve. moves the X%, it's static treasury, that rate for industry I guess, of kind of particularly higher That in less more treasury X-year stays Brandon, the X-year losses the if or CRE.

Operator

question Tenner next our take with will D.A. Gary we from Davidson. And

Gary Tenner

in a follow-up ask mortgage banking. things, wanted on and income of side just particularly to correspondent the I fee

little seeing is at you're interest higher quarter And line deeper you delta top activity Given this Is item? bit the rates? areas? lower variation of just biggest second maybe that of a are in the piece that range of in is terms pushout the quarter, correspondent of what both the into that keep terms of the the the end Does that year? in margin, piece early

Stephen Young

Gary, right. Yes. that's

$XX in the about the in move the income, variation with $XX think you're correspondent, the million on I range quarters. we rates, be that margin the to of of few we're somewhere But think million near interest right, little a next as bottom sort over think we higher. gets long-term to gross up sort

So a I'll a it, contra call that, dollars million income up quarter. that account moves few

quarter, quarter a a in and definitely mortgage, to up second have did it's be -- we We -- spike good we tell. think So it's the first about too should think early the as quarter. then but little a

to the income things and get think probably picture today, average that the get when it's do just range we assets, we rate on points we we in about cuts get basis and XX think we with looking noninterest as at really XX whether where them. footing So think entire on -- some all we're about to think until we the

event. income business. fixed but rates of is move course, a we But quarters to recruited in challenging that that moving, SBA team over, get we much mostly higher just up few right The a up a with XXXX that now business, and help it Houston takes that. really will as that And our

Gary Tenner

construction on period kind And question the on over I'd not just of planned commitments, there a the are way the now. much kind in remainder Okay. of imbalances. the Obviously, right construction in of one of How the then piece. look you side assume much business as exits rolling new that Hence, of the over year?

John Corbett

Yes.

Gary. right, You're

just portfolio of as coming some quarter. piece I by unfunded construction decreased million these in the left to have do far completion. down to number? you the projects like was Will, significantly. development And It that that was that's construction, as think our But $XXX roughly

William Matthews

Yes.

second the residential. around And unfunded that. the property The within then to -- And is piece see. billion. piece of that largest be owner constructed the biggest single-family type the $X would would [indiscernible] be Let's be

not a That And categories. house he's Gary second builder. would of to So of his bunch build just biggest. the be Tenner the a loan different kind custom where to the borrower,

John Corbett

don't term sideways Gary, the roughly is really some see drift below even in from We But dropped payoffs that the pretty along think sort up of during construction, the XX% here. it with kind there the of ratio and significantly of fundings. we those near way the quarter, capital, and of moving

William Matthews

and it refilling bucket, as not that seen Yes, been supportingly the come down. you've that's unfunded why amounts couple for of as as down as number come those has reserve well well that as the we've last quarters

Gary Tenner

down? sounds of the Okay. But exits another step you're like of funding existing sort the you're remainder of saying saying that -- year offsets it commitments versus for

William Matthews

right looks now, it yes. what That's like

Operator

[Operator will Dave we from take Instructions] And Hovde next with Group. Bishop our question

David Bishop

A preamble. during quick question the

maybe on provide the a noted the it was fixed side think loan I rate tailwind. Will repricing could

Just what -- see to of few from? to the over the might and pricing I dollar and they guess, like repricing remind quarters looks volume next us what the

Stephen Young

a we're about When thinking quarter. Steve. numbers, billion is this loan repricing, $X rough basically, Yes, it's

about it's and have we in XXXX, X.XX% $X.X think in I coupon. that billion left it's -- repricing

was loan this quarter X.X%. around average yield So our

quite it's range. somewhere XXX So that but not points, in basis general

$X.X XXXX. have repricing Next coupon we about year, X.XX% in the billion of

if you it's -- the $X next roughly X So over kind billion. of at quarters, look it or so it's

quarters about so, end get next how kind 'XX. If billion that's over to to -- or so securities think next you you of of repricing add the at the in or $X another X the

little going before changed of just sentiment what the that don't that the sort really about it for maybe pluses and when X higher way think, margin rate thinking loan we point do and to they're when guiding And X to and the basis happens. think sort wanted so And about how do has our close, a we're And the I to questions with it do to construct. book, expansion happen seems happen, of in when longer. bit know of to but in around minuses we're cuts it one I like our we is has

about have cuts, of will million. $XX X $XXX we us that And get loans. rate billion rate if cost We floating

of deposit down. modeling a on it's we're billion XX% beta, a XX% the XX% up, also We portfolio, way the have sort $XX way on down

end would we that million rate us or cuts. If year, so. So X by get help next of to $XXX we have the

sort $X to that about really range we today. everything talked in thing where reprice of so is that the propels But left X% really, are that somewhere billion we or the just is X% above

that's million. it call X%, let's So $XXX

a that's run sort on XX $XXX rate about deposits $XXX you another to that's you point the fixed on And point so about $XX a million improvement. on $XXX floating, That's gain X on on we basis cuts. million we $XXX repricing. and lose gain rate the as rate billion, or the million unpack think the So million X you basis how then of

longer, the at is thinking data extent is for the So be thinking to does we're point, rates higher that's of pivot the now. Fed now I going we're that how us. right some sort about know everybody and But certainly, to that's telling what

David Bishop

have seasonality that. question. short-term the anything maybe bit a little And you of a a housekeeping color. I that appreciate and just final tick up then cash That's mentioned? I to with great do in liquidity. noticed Does

Stephen Young

quarter Not just type end the really. event. Probably of of

cash Sometimes manage it somewhere moves we're around a X% -- little the typically, to bit. book X% X.X% of around at assets. to But trying

that's a do it. we So but lower, a higher, how sometimes little sometimes it moves generally little

Operator

I at remarks. the back no closing are turn time. will Corbett further to Mr. now John there questions And call this for

John Corbett

All busy of this a right. Thanks morning. there. with for us joining lot it's We know calls out

clarity hesitate provide for don't other us you to if models, a any a So have great ring. Hope your we give can day.

Operator

we this for gentlemen, ladies participation. and call, today's And and your concludes you thank

disconnect. You may now

SouthState (SSB) 26 Apr 242024 Q1 Earnings call transcript