UCBI - Earnings call transcript Q4 2020 | United Community Banks, Inc.

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Operator

Good morning, and welcome to United Community Bank's Fourth Quarter 2020 Earnings Call. Hosting the call today are Chairman and Chief Executive Officer, Lynn Harton; Chief Financial Officer, Jefferson Harralson; Chief Banking Officer, Rich Bradshaw; and Chief Risk Officer, Rob Edwards. United's presentation today includes references to operating earnings, pre-tax, pre-credit earnings and other non-GAAP financial information.

For these non-GAAP financial measures, United has provided a reconciliation to the corresponding GAAP financial measure in the financial highlights section of the earnings release as well as at the end of the investor presentation. Both are included on the website at ucbi.com. will quarter's on and SEC the Form replay this fourth filed presentation and Company's the the of night in last X-K call website of at earnings section investor release were a Investor ucbi.com. Copies Relations available of be with the may be Please statements that representatives by this during made aware of forward-looking call, be United. other considered of information and uncertainties as Page X the Any in XXXX with risks well by its forward-looking website. described the included provided of as statements the Company SEC in light should on XX-K Company's be Form filings on its and At call this over the Harton. time, turn to I'll Lynn

Lynn Harton

very all over in $X.XX quarter morning both representing business on a by $X.XX thank you call. a PPP solid both improvements our underlying on quarter and last were start EPS forgiveness. last for successful Good at GAAP to came driven an this Results basis year. strong basis, and and and both operating joining performance

of United assets we reached return basis, on assets contribution a and X.XX%, on discretionary On numbers on was These our in Foundation. the return $X.X return our operating equity. XX.X%. of X.X% to tangible XX.X% return an Our Community include equity Bank on common a common million drove

X.XX% our operating share this, our $X.XX. was Excluding ROA and was per earnings

will on markets. the doing vitality for Having communities some perfect make our communities. will an It all believe take our be wanted good to positive like gain a this to in a in our to initiative. certainly for giving, fees time, seemed our that focus of and of so, I our even For improving I we the more from win-win strategic charitable approach impact constituents. PPP greater as onetime the opportunity launch be

from that built compete brand served also to for they with. and the Our bank differentiate us years. the employees local for and markets events that service from on as excited will enhance we having the our banks have boards in our charitable foundation many support about are It continue the

continued loan annualized strong transaction and teams growth to and XX% deposit X% growth. deposit core Our core loan deliver with growth

are cost, The pressured quarter, rate would fees which basis continues basis points. PPP points deposit X X this Net perform points were from XX and low loans. declined which points down about for nonperforming We quarter. without the basis environment total drive to fell quarter, last the margin, continuing have down XX XX were Credit basis charge-offs to assets points to of has basis well.

classified would seeing in COVID-impacted loan and you We by levels, expect, are as criticized increases driven segments.

Our and the Company, economic allowance efforts for strong the quarter This offset our it teams throughout improving quarter and maintain bank to to continue reflects for the focus loan was provisions care take flat needed essentially great growth. for our by as was a of forecast the customers.

For turn more team here, and it to over with start details, Rob. the I'll I'll

Rich Bradshaw

We you, the Thank growth will loan Page comments with our on my I were X. in quarter. start pleased Lynn.

our quarter. translates equipment in residential Growth $XXX We we also in borrowers X, just Page estate. being made PPP achieve pleased On we PPP points with reported third benefit number is unit with XXXX. net economy this QX. basis that forgiveness. half stress our progress again quarter. the in our also recoveries helping and over were With strong forgiven of quarter has feel the loans the across XX the commercial Excluding good X% PPP since from were loan to growth well uncertainty, loans, also the in quarter degree distributed our growth, to which X in was the low basis had relatively charge-offs annualized which in to Navitas million at real fourth portfolios different the best points, we at the into credit of very of charge-offs were quality, in given of quarter just the high about the net finance low

quarter million was $XX.X million loss provision $X.X loan this for and the Our totaled full year.

pandemic. As some the the on built On Loan X, the of more Page the identified the we of sub-portfolios. took forecast the the billion care start customers stress economic deferrals specific at June detail pandemic But we clearly our significantly as in became deteriorated give you with credit. reserve at were of more as $X.XX continued, we as the impact XX pandemic.

But that you occupancy subcategory have greater of books XX% the by is The significant classified to which which care a the $XX loans, hotel portfolios. service average our detail So loans being you on is come downgrade the and our portfolio came will all we remind that criticized increases pulled equity. both $XXX million from XX% deferrals urban-limited have and hotel hotel about down year-end. and occupancy. expect, our mostly the would as million down care some I way portfolios at and provide drove appendix. senior in did in We senior carries both

forecast reserve on reserve resulted in coming to improved million NPAs out where on a reserve. shows good of is. are But increased we loan QX. Page a million walk credit put and the growth. XX the points about QX our up we in All feel million where Our and stand into at said, We XX loans. $XX $X.X basis bit, in reserve total $X.X due of economic our which

pass You NPAs reserves, PPP Net-net, that, loans, on page. also flat over million that see a saw previous reserve to the quarter which increase our you corresponds X.XX%. in C&I basically percentage the excluding With the of $X.X I'll increase Jefferson. it specific was with at from

Jefferson Harralson

about going start XX capital. my Rob. talk you, on comments and to Page Thank I'm

remained ratios peer flat quarter were capital significantly in levels. relatively above Our and the

and starting XXXX use a a first of expect the two quarter. relatively We debt in capital are to redemptions preferred trust in small with and sub

And our Page repurchase XX, of us can this some We are work not million more and capital for net type. year. expect put interest margin. consider some and M&A see that On this does should using you optimistic happen, via to authorization see if interest we our can to income you to redemptions net $XX

the PPP loan Our margin and was impact accretion impacted quarter the in was by of forgiveness stable. for significant

items, Excluding core in XX points million growth the from basis was margin million annualized core in This PPP XX% XX points. and liquidity points was quarter. of pressure basis increased these of the liquidity increased of down by forgiveness $XXX quarter. came X our margin basis or the $XXX our About and the deposit driven two

grow a and environmental X% headwinds strong to loan More underlying growth net importantly, interest our despite deposit growth. to able we annualized the quarter strong underlying were income core by in due

of I all growth the Deposit total quarter. Moving growth in XX% mentioned to excluding deposit year-over-year, Page strong the XX, was it shows the deal. with details the year strong up Seaside the deposits

and a that QX. in good gain locks mortgage in down the pipeline. cost noninterest quarter result. were quarter's on core income, public strong expected in growth funds. was record of Page we basis the versus rate and sale also moving in rate albeit percentage from transaction we public the We down lock basis very were last in a write-down million. progress up of on still were XX funds, XX, by time from last was mortgage, excluding our declined usual decrease points at Also, of But had the XX% made XX This We down the benefited QX revenue pleased record XX% accounts driver quarter, to from down increases The quarter $X.X our requiring quarter's last main quarter. deposits annualized. points

our of foundation, We XQ we Our and XXXX expecting sale greater mortgage discretionary production fee at came expenses versus the loans time mortgage in included normalizing and amount million a are the million for Navitas sell ever, expect On off both selling million. a excluding did result XXXX. strong $XX.X PTO. and million in XX, costs in expenses, we January in off contribution be to gain the the other on $XX accrual This a million as downward, $X.X gain as in merger-related to $X.X $XX of talk we or paid quarter, million driving SBA on our has $XX.X to some range. million Page started but $XX on with sale, loans SBA and income

PTO our carry hours this employees year, of XXXX. we allowed As to into XX over

operations United million our QX XXXX, get people million the XXXX, of Assuming lion's stay of anticipate this minus in share there. to low rate mostly rate we that to $XX back $X.X is single-digit in expect expenses and I would or normal returned run we said, in with operating growth from with All XXXX. plus a

work in and pleased from we our it XX% loans. that to customers we Page able make achieve major to other customers' PPP and progress we customers been and were tool were the I'll their has great PPP Moving forgiveness we that more help there XX, of be with given. back finish for had over to on continues a XX/XX, And using our with at for first very we pass loans to are and new attract forgiveness comments. quarter. closing think will banks, Lynn to we

Lynn Harton

proud know is Thank ended with you, team the quarter. Jefferson. strong our to have of United year I all a

$X.X by pre-provision up growth had organic billion deposit growth in it's We those record levels dollar with challenges had produced XXXX. know, expected income record a never we challenges, that XX been As year we organic grew spite growth, XX% would with pretax field XXXX in XX%. of In terms. and pre-provision record We loan in income of in pre-tax ago. months have been

We in also had record nearly mortgage doubled to XXXX billion. which production, $X.X

needed excited of thanks welcome Davis community I of General of improve processing the like And we're to new about created executive PPP President our Company. the that open Florida. that Seaside markets see opportunities addition clock up and in the much we new with them. Thanks worked for our to We our our Jim continue Clements, returns team origination around throughout and development Melinda Lux, to years new we with I'd come forgiveness, to will the establishment to outstanding product on investments and a an it for Board grow, to believe enhanced teams made and department We great give the bank, system we'll University. and XXXX, of to now team portal to questions. the and Our own focused our Counsel, engagement. addition United foundation to customers. I'm with team, the United's and literally established for in our and deliver now bankers enhanced Clemson

Operator

Instructions] comes line Sandler. with Thank of Our Brad question first from the Piper Milsaps you. [Operator

is Your open. now line

Brad Milsaps

guys maybe all this Jefferson, sheet. the a start have figure to balance put in the wanted you deposit growth work be to ways liquidity with tremendous to continues out had challenge to Trying past. Obviously, I year.

additional in of type held number kind of growth just that to if talked your of all be loan of got about debt some plans were you're still there, but looking kind I absorb out kind think kind everything liquidity this probably in face small point. kind whether mid of to it'd see And you've the single-digit amount Obviously, bonds? wanted at of I of 'XX. enough you've true. not what

color additional that as and there kind of any to impacts Just loan how NIM? relates the growth

Jefferson Harralson

Yes.

pitch going balance start to and So, I'll it and to for enter story to sheet. leave I'm that it loan the the Rich take the of growth,

Rich Bradshaw

in our don't Thank growth feeling in opportunity just new see a good, strong And single-digit there's changing. and now Brad. and morning, activity you, very again, for I are and ahead us. The very good think with we're and we great right XXXX. Yes, pipeline expecting mid hires, we're QX that

Jefferson Harralson

things to you're same see And been of some seeing you've of already. with that going the base growth, loan

First another from in cash of so million more in. we forgiveness, expect PPP all, $XXX

we more quarter. more one slightly So for become again liquid probably

stay are We expecting to balance to flat relatively the sheet higher.

that to come these in deposits have stay. expect We

around Now there is standard outcomes of that. a deviation

a deposits we grow get bit in or a see bit. most to But likely deposits sticky little the as may think You going come forgiveness. be little are you

more have growth. going from securities use million We you're $X.X billion with cash loan growth of of We're going in. to We for it first had to securities see here. again growth, about and cash, $XXX coming about

a with cash quarter. would then And expect relatively to I change loans. next I to quarter, there, stable would expect sized relatively balance similar a mix from securities sheet from and securities This something

Brad Milsaps

I success one, you just for at and given follow-up you you one suppose, did you helpful participate sort do I maybe That's Or the would kind Great. coming share same to got mean, it's the the of obviously around two first of kind of of expect you round maybe the for Rich. of guys could size PPP We've or during adjusted increase the program? expect round? further there that in had all level here,

Rich Bradshaw

first our opened say is and gives feel, up almost the would size the through yesterday loan we of have time time loan reduction that applications you for an Part It officially you average than portal out. you versus $XXX Sure, and PPP smaller about the a which program and a for correct, the are I was of million, is open. $XXX,XXX, dream to it size this $X banks we're is XX% come give X,XXX had our around. about $XX by we similar last quarter-over-quarter. again. living driven the that's Remember they of million size million. a experienced time the to have demand the max little requirements To

So there are some changes.

like going it's I'm $XXX it now, And right the to be draw we're million right to call Remember, called in the So on position. million total $XXX it anticipating. feels second to purpose. demand. program we're the

customers. at existing geared primarily that So PPP it's

for -- it's very little too, loans to less And process. on $XXX,XXX. to than it's easy this do And that time are very come quite so the really around, portal our there's us through ones

Operator

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

Your open. now line is

Michael Rose

Sorry understand like I puts takes. there's this, missed was some points. and if basis the about I down Looks XX but margin core

be maybe net based of expand laid growth, we some through the actually loan You'll margin? And mix could some in near the the shift core just we stuff year Are bottom to purchases. it you move a that debt some see we out? as on redeeming securities

Jefferson Harralson

Yes. That's for yes. the Thanks question.

we margin throughout I it, are. to would first think year. call will it down I I the yes, So higher In in quarter, the the expect X% core then flat

changes, including really not mix with the of is anything because too. is this PPP Now,

thoughts of think this forecast sort ex-PPP. as of my So, or a

Michael Rose

markets? is does actually past And can move think we of are this so. that the some I kind books And years update on opportunities an originations then you brought two of just what's as What of hired much lenders XX coming of migration Correct. you some your on? appetite the how or It mid from in -- new like into dislocations then us you producers give there's some and of lending hires? some of year? kind you've of over revenue loan growth seem single-digit from business versus those your

Rich Bradshaw

question. this again, Michael, is Rich Sure. great

we in January, of hired So are people, have banker a commercial Florida. give in to XX feel private there XX, those X you in one

conversations we're lot a Florida in. will So and the we're markets taking there going platform advantage tell on. new metro of you in our I are that of good

out lift that know I'll have right also bonuses opportunities. be you team paid tell you, to Some now.

Atlanta. a In give that. for last Central effectively good hit. in with forward opportunities in those feel. you strong a expect we They I There's started us, So good The hiring, last a we're of COVID I and to would a there and our a very question Truist, Florida about feels before put you a March moving of February week in terms very from with ago, BMO particularly lot right just it JPMorgan, hired of particularly year Truist Atlanta in Harris. conversations, now, feel year, like team

were months, -- year, and $XX first team tell commitments I'm to of doing the funders. which last did what really that for full PPP you three but were most proud is in million they So commercial

we really good opportunity. as to about teams we're and good, So, feeling as feel we're far the talking the

Michael Rose

strategic Maybe That's one me, very question. just just more more a of helpful. for

You guys did deal. Seaside the

do billion to is there a Is you just any to relatively presence scale? $X well? to but I you kind of guys types there then the deals $XXX look historically size. What in I as talked in up of teams? and of Florida need at? to it it or think million, has the You hiring about of footprint billion you've sort know M&A And down would done there in get have Is $X that now. really been kind small. change

Lynn Harton

Yes.

great So, question.

with done. to continue se. do able in we relative that. do mean, a very mind, bank, to teams Florida, bank, is there's per be what to First, these so consistent commercial to private nothing we've need to going keep on I We're it's bringing

additional interested good conversations to our doing there. two be well in excited in that we adding other got going and feel markets. locations the We've would Florida are Florida see the we'll opportunity about said, that We we're very we M&A on around retail that as With franchise our about. as footprint,

range correct, culture So the We're teams opportunity. range in happen this good that kind our a And good But we in of the we're that anything more year. of size things in think fits. and what end we as have terms on smaller see sizes, at focused able with is we'll looking to that than given your of to today range be some probably markets the end. the larger

Operator

Our of line Jennifer the from Securities. comes Truist next Demba question with

now is open. line Your

Jennifer Demba

what terms could pretty now? happen and you Lynn, you're year. right of seeing this optimistic just incoming talk seem activity about deal You something maybe can in interest

Lynn Harton

I is I we to struggle levers company, don't a you're are. cetera. margin, diversified we're more. those think you what going mean, having I a terms things benefited Well, Navitas, banks a having business levers. lot that may seeing pull, everybody think Yes. multiple mean, have mix from SBA, looking mortgage same of but is And I think et not having a of institution, operation, in have at to And the are great if we've smaller you're I

is about and more business who to think I what price, model seeing. they're we're with. And raw I think than that think they're playing seriously is thinking into more going partner culture I

to So be good I there's some year. going this think opportunities do

Operator

you. Thank

next with question Kevin Davidson. line Our D.A. of comes from Fitzsimmons the

now Your is open. line

Kevin Fitzsimmons

going quarter were seeing a of loans where but subject the -- have catch see getting to next criticized of to of How more downgraded. you view few meaningfully, expect we like down would kind in now we've classifieds. kind we It point, Just at Or and come the increases saw on do similar this deferrals some credits? we're of expect in we downgrading known increase those onetime, classifieds? you the pace quarters, a as and up should -- downgrades of pent-up this would

Rob Edwards

about I'm Really, have is right. Rob. for pandemic, the we question. is how biggest in this thinking it. Thanks here driver comments the Kevin, that space on the two the Obviously,

or hotel infill properties. were senior downgrades entirely fill lease-up the and care almost So, up

reverse also into pre-pandemic, the So leading they pass-grade sort can the have I be quarter you we obviously, sort begin lowest of things our by think there to quickly. to tell QX. trend by pandemic if think the increased this of I subsides this you, I lowest QX, and a declined second reverses dramatically closer pass million pretty were classified risk If pandemic persists, is end to went into QX about by in second $XX -- return lot of the that something of the more. what maybe during -- and that And criticized million. $XXX point rate in may

So of I criticized an feel appropriately I to we you have structured. at strong but have if don't any will and is the back and about or impact classified. of And loans, business it rate, pandemic criticized teams, flawed flawed the the into team the have that. flawed impact see I continued model. increase goes like management you're I pandemic. classified the but or some a could this borrowers, It how products, management when credits really a case, product result just same persists, strong a you mention, or additional of maybe strong a typically, and got move building of don't We've feel in a maybe us though, see pandemic,

Lynn Harton

more category cost? in puts maybe criteria. criticized is is driver about in the What criticized -- really category, really, the Rob, increase the versus or talk the which And really primary something the

Rob Edwards

Yes, that's right. That's right.

credit we classified. or payments off gets make if that to can't of either downgraded based current have amortizing it So a operations then P&I criticized

on So, they've debt. the to payments able got to make the both be and principal interest amortizing

Kevin Fitzsimmons

outlook. on just expenses, quick And I Great, appreciate I Rob. appreciate Okay. the that. Jefferson, follow-on one

deal-related specific outlook think. there any beyond Just I that that saves curious cost are to continue, if expect within are embedded initiatives you that would

Rob Edwards

of some start to see is And that That we getting the later will Well, six the we that that conversion from then we're that the comes quarter little that savings in closures PTO but Seaside to big other this cut savings million trying one to going there's of you of think We're major you'll is that December had There's or that's one consumer big are that's dollars, -- lending, can that's the savings. help. of so quarter. ones see recur is it's lot into the of but biggest a mentioned had cost a piece the pieces of other bunch nothing you'll a -- don't named. cost translate automate nothing cost some $X pieces most that ongoing think little as you lot of there's kind back. going follow-through project as think We a of it, just we that on a we things. branch likely happening

Operator

Thank you.

from comes with Catherine question line next KBW. Our the of Mealor

line is Your open. now

Catherine Mealor

the the to to your where much commentary, deposit XX And thinking about your deposit you some sense room costs of then follow and first yields on is. Can deposit where are wanted up Jefferson, also question have points. versus there? and and think mean, loan today? give are costs, both for new made do basis a portfolios its on coming I you on us low further on new at side, as the production How you yields my loan so the margin you Just

Jefferson Harralson

into cash. at lot And, we're of sitting eat lot right growth on a on is next banks yield my cash. A come in are right. similar biggest seeing now, where they're to off. of for But guess, Loan that to piece All you're is, cash. lot a loan relatively the the loan worry I necessary sitting of is going year yields

Rich, into you comments concerned pricing? increased competition as we that to next see you're going get year. don't And And have know so on I'm if price I

Rich Bradshaw

amount, little right. a great a I of but that, not say, we've would seen

about at -- concerned this so, point. it we're And not I'm

Jefferson Harralson

that's So great.

there. that you have So

QX XXXX target, On deposit the is down interim basis our were of that low our in mark. we at points our was pricing, that And XX now. the target

target if to to rates get points. try here, basis my stay to down that that's XX So

Catherine Mealor

That's great. Okay.

on $XXX that investing are new securities securities per the million Now on yields, deals quarter? you're where coming

Jefferson Harralson

quarter, at this came so Right, they XXX about on points. basis

basis little be you're some investing. a of expecting investing alternative doing, because liquidity call might lower points Now than the I we're would XXX the it,

So, pieces we're bonds the basis less to AAA point some in This cards portion. XX This like portions is is buying of credit securities, and of autos. XX the asset-backed in paper. only AAA range. This is the two year

moving as So, of to it are we're of outside we security. kind just -- cash be moving some of into this goes before

closer think So also portfolio, you which to XXX. to is kind the you're securities about if growing, XXX of core

Operator

Thank you.

next comes with the from line Stephens, Inc. Our Brody of question Preston

now Your open. line is

Brody Preston

real got Jefferson, to want to circle a question, quick. just mortgage I I back

Is Or So XX, Is The mix? I refi. think the a you mix changed? the you're that you're guess, I appreciate purchase what XQ? guidance. XX similar -- in at has you're production in of XQ, anything the seeing seeing

Jefferson Harralson

The risk, similar mix.

Brody Preston

And margin for what quarter? was sale the the fourth gain on

Jefferson Harralson

expecting have I Yes. goes at it down that into year We're as the forecast and to do QX right. to forward X%. on. then we it taper roll X%. That's

Brody Preston

average balances loan quarter? for were Okay. the PPP What

Jefferson Harralson

even. billion, $X almost

Brody Preston

big expect XQ? Okay. of chunk are to left, how like in you I got somewhere should forgiven about that? in I Is we a a like, in thinking X.XX, you where And Or I would that guess, would think the you be be pipeline of going to there expect X.XX, forgiveness? that little

Rich Bradshaw

Jefferson, can that I answer one?

Jefferson Harralson

Please do.

Rich Bradshaw

we in on forgiveness for a of one -- me how this in, at to have them amazing let is weeks. in And was two So draw, was we to that second their much On you order for had submit second told last submitted. least Rich. they our did things it the the important tell customers that draw, came

just the Seaside So and just $X.X we we at that $X because And then has had anyway, forgiveness billion we the time. But -- different they essentially model under submitted been in at billion was crossed -- the did to United. also mark were the have SBA. we fundings that

about we so really good And feel that.

end this So of we're the near one.

Jefferson Harralson

be ELP less to average a will think, I will would So zero XXX. little and close be, than

Brody Preston

Okay, and The redemption, sub-debt that impact Truist great. for Jefferson? that. right, you Is X that point. just about is Thank basis like margin

Jefferson Harralson

That's are not Those pretty transactions. right. impact. huge small That's a

Brody Preston

Okay. And PPP the mid-single the ex-PPP runoff? that loan digit, for is or growth guide inclusive of

Jefferson Harralson

It's ex-PPP.

Brody Preston

a mid-single-digit expect been high, with square you down of the Okay. something the at have guess, just and I to to quarter close to knocking in I'm I all. mid it doesn't cover off in growth, ball guess guys first you in the like slow having hard that because terms time sound the

Jefferson Harralson

partners the and stimulus. always I I'm a the activity. it's what being conservative. we figure a to here about little I'm pay off looking across opportunity of out because wary a my bit be companies can good little get overoptimistic. with hard But little happens I'm But bought. feel do

the good but what machine I'm feel and I about our keep see now. right hires, saying So now, really that's I going right

Brody Preston

conversion remind that February, enough. -- for on Could Okay, you it's fair the million I Jefferson, so outlook, the us in quarter, correct? first slated $XX this quarter. sometime just is for the expense think

Jefferson Harralson

That's correct.

Brody Preston

cost of be those post to bulk we head saves Is the how that about thinking XQ? run are I the into should as rate come So going second the quarter?

Jefferson Harralson

Yes.

some seeing start here you'll So the in first quarter.

maybe one savings quarter. XX/XX, -- cost but starting in you're you're getting second run rate So some -- full and only in getting

some we'll that but of -- offset that merit will some also of have So meriting. things the

Brody Preston

credits. the to second specifically quarter And more. care I -- senior the have in It's then just I ask, two wanted Rob, got on row. I just a just

you've the think criticized this is of all? have all levels deterioration. you to the out looking seen just XX% at point taken occupancy longer related so Or And just portfolio called is, I in change looks stabilization? reach some is to at it, that at it like that lease-ups

Rob Edwards

properties. the related It's to short a lease-up answer it's yes, great question. is, The

occupancy. Our around stabilized properties to are XX% running

see it's -- a of thing. more So, one-off kind we of

a have property some sort of have occupancy. you and If you in change that COVID develops, comes in

seen that or in We than come them we got we've two it, And quicker have XX have we've properties book. one properties. But occupancy. in expected have when would in I actually the seen back seen

well, part, stabilized the above XX% exception the for are of the them occupied. So, all doing two properties, with most of

good really is lease-up just the that that, the feel I So, staging challenge. and about creating it's

Brody Preston

Okay, great. And then just on Navitas.

guys pullback really of of earlier pandemic. the in there I given You bit growth participants the was in have the year, had number just that maybe And know a a there. strong

all the just I to market increase? maybe looks you here of get the unique anything to then So, for rate? allow as growth you continue wanted a forward, niche an on about think share Have seen sense at that, in to a about there you like. focus outlook business kind the of And certain above-average kind I will I model take a what what competition do is that broadly moving guess,

Lynn Harton

I'll with to other and have there. what start in people throw that So, see

So summer, competitors. nonbank competition there when the little was a we during decrease from bit of especially saw fears liquidity,

this seen We that would I coming a but momentum competition, have say, into we've normalized continuing. -- the we've perspective now, is from had business

a it's I to really think strong team. due

hires. great have We

So has should think there. growth I but it's normalized, we the strong --so competition I expect think

a to a we pretty make limit. are making think greater have expect and our not us, as happening share from And takeaway well, diversification I grow might bit, there's answered. part But thesis there. from as we like and bit. sales that were in coming think selling year. hires. I continuing well down hire And of XXXX just We risk there -- quite to expect market strong that we And We budget in with XX% mortgage to business some I to amount quite self think we're away we versus for have you them a know would are about a have we this loan imposed of Navitas question, as loans see feel about far XXXX. people return -- some

Brody Preston

Yes.

part market? step just, other will other within was as take share kind that The Navitas back you is market continue anything folks you unique niche and of there the focus to sort of that to some on allow into

Lynn Harton

is, would niches Now, what within business. I multiple say there's no -- the there's

just business. it's interfaces tremendous would diversified really got and I self technology, sales thing manage that the created our that's one product that's the reputation a Mike that well-run, in others. a with employees say successful well. Navitas think always having than with team it's think be easy well-led that the has portal a is does team same focused I the Mike have largely as in has Gary more Gary on can process The are company. coming built which approach. That's extraordinarily at and and a developed. to just PPP team for

lot There's no that It's a particular niche is little thing. it's necessarily one So different. just no of things.

Jefferson Harralson

have come see the queue. I No he's may Chris out. He on. in

Chris Marinac

you can me? Jefferson, hear

Jefferson Harralson

I can.

Chris Marinac

wasn't I it here. Great, they was waiting announce sure

updated So at my question the the disclosure mergers the marks on just what's XX/XX? and updated there was fair value with past

Jefferson Harralson

on the that understand one. Okay. didn't I Yes, question

Chris Marinac

value an updated there fair CSID Is mark from past acquisitions? and

Jefferson Harralson

currently creating the one, don't have for we're and I that Q. Yes,

to So, we'll get you. back

Okay, at this time.

So we'll get that you back shortly. to on

Chris Marinac

and if just higher No problem. presume, look you And I the the When don't correlation. change sort reserves strong. I that? on you curious, still criticized I based capital things in change a mean at ratio, criticized buffer, saw a to do earlier. of it's a know follow-up direct And reserves what's necessarily if are of happen, your and question Kevin's

Just behavior? impacts of have reserve criticized that do how more some kind curious if you

Rich Bradshaw

So, have look it. we would at to

currently. reserved there's answer we're there. we're projecting right, the as and not not -- correlation. losses But is short -- there a the a But You're correlation there's we direct believe for direct that properly

Chris Marinac

specific not Particularly criticized on you're because reserves? having not

Rich Bradshaw

No. not on Yes, definitely criticized.

Chris Marinac

Great.

Okay.

the for this all take much clarity to wanted we'll and morning. that Just Thanks very information quarter-on-quarter.

Rich Bradshaw

Chris. Thanks

Lynn Harton

it Well, like looks right. All question. the last that's

you this being for And team. Thank so, thank all here.

great a great team have all are you a day. doing. great so the Thanks it's everything listening revenue. fee growth, think great much. I in, Thank deposit United you I And loan growth, appreciate quarter. to

United Community Banks (UCB) 20 Jan 212020 Q4 Earnings call transcript