UCBI - Earnings call transcript Q4 2021 | United Community Banks, Inc.

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Operator

Good morning, and welcome to United Community Bank's Fourth Quarter 2021 Earnings Call. Hosting the call today are Chairman and Chief Executive Officer, Lynn Harton; Chief Financial Officer, Jefferson Harralson; President and Chief Banking Officer, Rich Bradshaw; and Chief Risk Officer, Rob Edwards. United's presentation today includes references to operating earnings, pretax, precredit 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. well considered and as and uncertainties Form Pages X X Any the the its risks XX-K, information company forward-looking on described filings SEC other of website. as statements provided by with in light should and XXXX of be its company's in on included the And now Lynn to at over time, this the call turn Harton. I'll

Lynn Harton

for all Good during has today. our accomplished call proud of fourth United morning, you I'm and quarter XXXX. team and the all really joining of thank very what the

continues both return basis-point on First, be our on tangible an XX.X% quarter. financial on common the operating a assets performance a strong for return with XXX equity, to and basis

quarter, During annualized organic our and organic deposit growth. the annualized X% of teams XX% fourth growth loan strong delivered

point charge-offs allowing Our quarter. only dropped release to X during by be basis results only and with the points. stands quarter for at excellent a net the small deposits now X basis continue quarter, cost X basis point for during of the Credit of reserve

and and August, efficiency was in And growth. acquired strategically, organic completed expense higher of we in from Aquesta mid-November. operating Our the both XX.X% even somewhat systems with base, completed acquisition conversion a we

advisement at winner billion. welcome Reliant on of Reliant, been now to We're addition Devan, have special performing Tennessee for bank not Best team, and and recognized in better, the consecutive past been January small is on team our management year a and to them a line well, for stand acquisition Work Reliant conversion of a just by will has April. of $X.X under bigger. FinTrust very assets X, John, to extend United. wealth in business I'd leaders Reliant all this finally, great systems several the built has closed the to we're the join like make Our multiple Mark, as have strengthened performing excited track And of our summer now that United best Places years.

of great So this that Jefferson and to welcome thanks details accomplish opportunities year. markets to momentum, brought once to this the team. to turn what that people quality Reliant to with also the have proud the have the on I'm and us, And more grateful for XXXX again, We're and of I'd joined hard United of the business able the family. over lines our entering it have now entire work the teams like for quarter. year, of our been entire I'm new

Jefferson Harralson

to I'm as portfolio. of loan Lynn. comments the my was positively book Page as portfolio forgiveness discuss loan you, addition going X The PPP by the Thank Aquesta on and of ongoing loans. start the the well loan impacted

a at grew was factors, year our fourth the growth annualized This strongest offsetting for X% of loans by encouraging in million quarter, we the these $XXX Excluding XXXX. pace. which is and

of the C&I-heavy you statistics diversified, it and be can Our strategy the granular, the see is for portfolio and on to the bottom for page.

growth organic all Page XX% which Aquesta. year by deposit fourth in growth. to increases, That with quarter had of momentum continued annualized. is $X.X also our XX% We've Moving million deposit it impacted of X, the was $XXX which annual billion growth, or shows growth with growth strong

to XX. Moving Page

medium strong us growth nice term. Our XXXX for from and the deposit both opportunity creates a XXXX in

to think the to and sheet were just We margin our balances big we and $X.X billion, $XXX and XX% XXXX into in from Our grow as back end opportunity balance XX% beyond. XXXX, at up we loan-to-deposit QX cash million. ROA, our ratio of our in improve have down has a moved average

about XX, capital. Page we to on Moving talk

with how We Page We COVID in equity margin as the our in and putting shares capital dividend our In XX of Aquesta raised with debt repurchased this manage In steepen in down have more, Tier we deal stack. raised line been quarter. million by own to in understood XX% $XXX XXXX, trends. XXXX, intentional interest paid capital. of we that net our be capital. in our QX, still we we highlights to cash $XX peers XXXX, $XX million and we income And our capital May started we believe and capital of work. million preferred Also, year-over-year. ratios. $XX Reliant included closing closed We of in X we'll million with

Our income impacted fees interest accretion. loan is and by net PPP

If approximately grew at for annualized deal, adjust Aquesta the our and income you X% pleased the were that core these we fourth quarter. spread in

$XXX deposit by Our up in growth pushed our cash core margin position annualized compressed average XX% as points basis QX. million X our

$X.X mortgage core cash this our which if last Page fee income. Excluding you margin was relatively flat. from income, quarter, was million down at driven mainly On look XX, build, by normalizing

increase at mortgage a sale in of Partially in loans. line the or Specifically, in declined. volume $XX.X little the decline offsetting expectations as margin million, was other gain came above fees our an on

$X about our little I XXXX of of quarter million, quarter lot just outlook customer-friendly. would charge make to a we for came bit. at a in it made changes our talk SBA the service gain loans in overdraft and Specifically, program Navitas to in $X strongest banks, to like is like more UCB, well. sales, on as typically fourth million under had our which sale

us think the customer pace thing less of rate are conversion And addition We there within and some form quarter, in cost we that forgiven. and offset threshold in for of November at this million higher QX. in a the the for full can number day we underwater. before, be QX. we XX, a primarily the overdrafts $X.X the cost been Aquesta. now for limits business. their XXXX, automatically said, we doing overdraft overdrafts of that the X here could believe put $XX and we had but if account Specifically, were the is Aquesta our completed in year this get in now we our waivers hopefully, by single on we right got the savings of our compared driven our in All stays cost And don't at and will occur but that before. of the Page in limit have X. look to expenses This expected customers we first think charge And satisfaction, customers be savings could in $X run for higher

XX. to Page Moving

to forgiveness, We are recognize. on million XX% PPP complete we in fees have left $X.X and

hopefully quarter, strong was through Credit had in net in be We even fourth stable QX the negligible perhaps quarter. slide and the in will quality this come out quarter. and will as forgiveness XX, quickly. Page charge-offs next we fourth the

I'll Moving comment on substandard and to and to just XX. mention our loans about improving stable make special a we are that XXXX. encouraged Page are

includes the to the release. $XXX,XXX PCD Aquesta reserve reserve provision. of into that, it with a by increase million for We netted QX. driven dip, in going can release Finally, in allowance core of The $X.X pass components million which see loans, on the a by release without Page chart XX, our waterfall was from went The I'll change provision a a $X.X had credit through our $X.X back And X the straight Aquesta reserve losses. day chart million shows that change you in double the reserve, for Lynn.

Lynn Harton

X got is Thank how at momentum. you, Jefferson. at measures a I and success to we were that mentioned We've United, primary time look XXXX back we entering of good to see did. with XXXX this

a is U.S. Companies this was quarter, Best Work in named great has for work to list. great by American To fifth been bank United X year and place of Group. measure is first for Banker people. For this consecutive to the the Banks selected be once This the the again Best The And

year our XXX Power to highest top of top country. the having and service. success Score XXXX Our satisfaction second publicly class-leading as the among of another banks J.D. by provide recognition all Net delivered retail traded Promoter that customer Southeast of the in measure in well the in is And of score with banking teams the second

Our care shows. and people it truly

of measure in that top delivered is quartile have XXXX. relative we believe third we financial success Our and performance to peers,

importantly, we deposit performance incredible As to well continue and base our with lending that positioned in markets great are strong and momentum businesses. strong teams,

the we throughout have on-the-ground operations such an was Finally, our floor we volunteer made Foundation. their questions. And community yours team, a year year. of United like various footprint, to already I Community already, over appreciate of are our work difference first XXXX And am XXX in to make organizations. donations I honored full organizations now the want Bank be the for communities. of amplifying to for doing support that these part the open employees to all and and during I'd our amazing the

Operator

first Our question with Instructions] Raymond is Michael James. from [Operator Rose

MichaelRose

Obviously, could pretty strong front. Jefferson, maybe growth PPP. on this the and quarter, loan we ex-Aquesta start

your of think about the the And to about still a dislocation Or paydowns? confidence a then customers some do well, your paydowns you should deals mid-single-digit talk Just footprint as be to those that? in have contemplating any level? bit versus -- first Just quarter, trying little markets that be originations think a all, higher sense the could in this in ex-Reliant, as kind of and we get enough can XXXX slowed? just recent of from we and you of than we accelerator

Rich Bradshaw

okay. Bradshaw. Rich that's I'll this Michael, ahead is and that, take if go

big owner-occupied in team, equipment So drivers the the and QX mortgage, finance kind Navitas. our of were CRE

from little we're of terms seeing where a geographies, came bit. change did that In

right and way the us of In North company. in Raleigh kind led XXXX, change Atlanta the for QX, behind. terms Metro North with Carolina Carolina the And a team big of led

taken over that's Carolina. South from change so And a

that XXXX, little bit of QX. terms In like we looking see a

little probably that So but is conservative, forward, a number a say X% I expect QX seasonal. a going that also maybe little good is would

right looking we're how that's So now.

Michael Rose

press coming the if update the accretion that move In any but then Helpful. we got obviously, if contemplate Okay. of of just you in, rates, I start to accretion higher. we didn't can to beginning And targets, numbers quarter. the think those at Reliant contemplate the release,

does any have XXX asset plus expectations? I accretion guess, we -- then Reliant Reliant where on stand, think modeling X your as you sensitivity maybe on included that just the work guys in, done, scenario? about just can provide based Jan updates And with So a all

Jefferson Harralson

right. All

past the between Reliant So team correct. really still the and numbers, about excited unchanged the for are cost Reliant accretion are estimates deal numbers in we've savings We're good are XXXX. and the the numbers you given the use demand. to And

$X.XX rates go to piece -- question, on financial the -- about I thought. cash standpoint, to up the is So to and XX us. deal accretive, year, the we that sensitivity right the sensitive asset that go sheet, the sensitivity I asset think of bank And if sensitivity will basis less point up, of think as From like environment, that if I some it's we this now, asset whole we're accretive. level think think we're year. exactly going down put it's our current it I but of balance some deal the asset yes, But a more in over be happened work annual over the might work become think $X.XX

Michael Rose

Okay.

-- does get, hopefully, hike? just $X.XX as more? point Or fade XX we XX like for mentioned or roughly basis each you So that

Jefferson Harralson

Yes.

normalize deposit it fades to I a betas each So because your bit will start think with X, higher. little

For one, is the beta think first deposit to I X. close very the

the move up, little to each second X starts X a move to starts up think I bit.

at So fades I it from and a there bit little think XX each then on one. down starts

Michael Rose

know do and sale sell? it stabilize a I function what rising a it's if like me. relates or much give how And expectations margin X on for hopefully maybe X as And environment? on in you plan to things Can it margin to more All 'XX where do rate would gain of that us sale should enough. just sort right. again. that? gain you for deals of going the be might just it you Looks any Fair Navitas final like down initial to then

Jefferson Harralson

seeing a really I'm seeing that I've I'm of a seeing I'm I relatively that in X expect So not range, lot in that to been Reliant would this a come in seeing compare do experience a numbers seeing bit. basis -- very really to I X% piece a the stable X.X% has to on in seeing a seeing gain in little is on come there. points the of on been because X% at come would gain X% with sale X not stable. or maybe yields -- we're I'm We're a million relatively $XX as sale we X% expect us high million quarter. sale to be It and the And low. be range gain loss that on what paper, to loans $XX sell yield quarter. Navitas very of it. is attractive

Operator

with next from Sandler. Milsaps Brad Piper is The question

Brad Milsaps

Jefferson, of to some just curious the how you excess put the quickly bond work might in portfolio. liquidity

have enough excess you to probably You the have. liquidity not guys about talked loan all up growth, X% sop

of kind to in Just from the here? how growth about curious bond think portfolio

Jefferson Harralson

at Yes, great it. have pretty our seeing strong that's question. portfolio you Thanks pace. for a a -- grow so The been securities

rates had have move higher. We

So was there opportunities growth because the it you a from securities where can to our expect increased way. bigger be are in

it a think I about how on quarter-to-quarter basis. that's So

to working you cash think it annual, this put to this If about work mean year. we are I

and going that securities That's a by to that you're loan as see -- growth talking cash think I our absorbs year-end. portfolio Rich absorbs was that So plan. about,

significant you portfolio, see very especially securities as rise. So the growth should in rates

Brad Milsaps

Okay. guidance. That the that And loan off the the said X% correct? Rich includes loans. -- would Is growth Reliant base of that be

Rich Bradshaw

is that correct. Yes, Yes.

Brad Milsaps

Okay.

follow-up Jefferson, on me, business. maybe for the Okay. then just And Great. mortgage X

pull about as line sort Do mentioned will I the it well? Can you of think out expense think you quarter. was for talk expectations any XXXX about maybe piece you third, in with that have mortgage about the as for guys? your in to then of offset? in play what think how And Reliant you you that you kind

Rich Bradshaw

talk little bit on a you about commented terms I'll This mortgage in is -- Rich. right. of All QX.

We purchase. high And down year-over-year MBA's really purchase see the I'll probably been move XXXX. volume in all for forecast the we've on to that to X So X% XX% along. and strong forecasting years, on next

helped refi. certainly but by we've haven't refi, we lived So been on

that about seen that. to Florida. feel I'd in that we've with we couple opportunities good also So like And the

and a And of have MLOs that. lot So big down for we'll and us, that's been as we opportunity then obviously, Nashville market new there, growth a hired we've continue the well.

Operator

Kevin with is Fitzsimmons D.A. next question from Davidson. The

Kevin Fitzsimmons

follow-up was charges quarter. the I on overdraft taken a down Just charges. fourth on fee The in were that about being comment noticed made revenues. service steps

I we come? to that rate that that believe like some was Is said could you Or effect So effectively the is of run is by in -- it the in lose $X.X you XXXX. you could decline saw? that million, still already

Jefferson Harralson

in good to So it of. this is less Jefferson. this more put of but The base is run than first the that come. we quarter, I'll the say X fourth quarter a of it's that automatically, piece November. We loaded. impact makes off a is was to would seasonally front-end use did the has really place Because in fourth still thought waived be for the little this that rate this this

So front-loaded this I off bit would it, to $X.X million forecast use of something it. close into QX the or base, that's to the way a and little

Kevin Fitzsimmons

I double it's be -- of a look with And for lot day Reliant when But there'll count -- you moving parts. you Okay. coming when just a difficult, know could we That's X the great. where more that in, at releases? potential X if and there's over maybe quarters? there. And ACL ratio next be negative of there over you the we're releasing near Or we see X settling to the would time, reserve are to and still kind end say -- provisions of come could you because

Rob Edwards

Kevin, it's Rob.

two think One role things. play growth I a provision, the on Just the in certainly is, will provisioning.

because created a going what no then down. need to is bring But range, really basis-point forward, basically for of side, allowance having losses how we would need rate, the will closer play finishing the after we on the pandemic growth back year role to come provision to obviously we the have the to we something to at XX built that. up, with expect that. if in would losses level that So that to And least expect XXXX-XXXX XX a X% in the loss the

of combination with those was a XXXX. less make in likely release XXXX Build the it Reliant seem ratio would of marks. so to And the than that events in

it. overlay you've too, piece mind, to in got that keep that Just of

Operator

The next Jennifer question Truist. is with Demba from

Jennifer Demba

What feel in 'XX mortgage? like fee the are do headwind in income with the right opportunities for now best growth the you 'XX in overdraft company and and

Jefferson Harralson

billion I'm assets great went we $X.X in $X.X under looking from this now. right the sure around for us. table the And Jennifer, to quarter. that exciting all on a you management question. asset jump We're a our billion probably not might is It this. But is noticed management -- pretty

Fintrust. have RIA overlay the form We're footprint. had of to this. it of We leadership Gideon We great the the going Haymaker. reorganizing in We're branding bought across the

So we're there. excited

our the talk going into that business. in down this about year, continued be might Rich we've Florida. Florida what could overlay We're growth to since more about mortgage income excited to fee I'm moved state. While done really on of we've the

to continued a well. in opportunity Tennessee have that We as grow business

say to if I'll brokerage mortgage group to see anybody So add it and that. wants to to the and and

Rich Bradshaw

you Carolina. of add roll thought to we've things to do to that. of last done that the commercial our did on job and way probably and customers, Jacksonville we've the we XX,XXX in planning trust first of working in year, to good out terms been a when I behind scenes all that you've or It And right legality. quarter. we're FinTrust looks pilot Jefferson, kind I'd And work, in like the North you summarizing powers, have starting bought that

to little nice yet bit but we're this say rolling that. the X in can so equals And about out yet, and plus hasn't would different then rolled more levers X X pull So X QX, have I a probably it is it's just we excited and because the SBA. happened out it's we haven't

term industry And that expect generically, use USDA, which little side. through bit program we to business do because a we and the more. we'd the fair is energy a that's or So REIT amount of program, I sometimes do SBA see either solar our X

talking we've I'm are year, government products, this and about big already on really, that some loans opportunities we've and the that program. see expect to of So guaranteed under USDA construction that more we had closed

we year. to later fruition to expect this those So come

Jennifer Demba

Okay.

if X I more question, Just can.

You X. of year the fair a past amount done or guys transactions over have

Just wondering the 'XX after what of interest here is Reliant? in your level conversion

Lynn Harton

to our because would first, employee align organizations Jenny, in. with continue this us us stick a themselves And we is on Yes, modeled expect in they like should reminder, of as experience, the say They smaller we do. the to manner I Lynn. you like with on a geographic kind customer organize experience. strategy. They're

for key leads So together it's to fit leadership, all the a higher -- to those retention. higher things natural which lead

dependent smaller But like we cetera. look we've if organizations of is of -- timing et you lot always appears the the matter price what consistent back the done, of at interest been sellers. current timing, that that's markets. their who a pretty all that. So upon it's And expectations, in knows, And the a there's It with we've higher-growth time.

do position So us additional to position see we're well the M&A. a strategy, that priced got, we're a coming great where also I we've we with our fits need in some year, do to in acquisition not momentum would hope that but the in

great happens, but be if hit it'd it goals. necessary it's not for us so to our And

Operator

with is Brody question Preston from next Stephens. The

Brody Preston

I and ask queue follow that maybe questions. the number in the up earlier. the at hop of question to wanted a asked just back got some and was to end. on going securities I've I'm back come

bit at than looking quite more securities year-over-year, growth portfolio. just book, is XXX% which AFS is up the a So HTM the the

ask, by impacted of I value portfolio so seeing continue negatively driven without the within rates AOCI move being liquidity wanted yields book get need how held-to-maturity deploy is more guess to versus as attractive tangible from maybe I much And to to the that higher?

Jefferson Harralson

TCE that happens are Brody. it's going value piece And question, bigger in How bigger to higher. rate assets. about the we're higher and and to getting a great our we're a it as ratios. is Securities get sensitivity is, ratio a has about continue to thinking tangible to book gotten bigger, of those thinking what X That's assets our portfolio environment, becoming

portfolio balance of and of as made XX% HTM a securities, to we're from as there is basically So now. we our percentage a getting to XX% larger the sheet, decision take

it's increase So grown that that is to the because of decision percentage. faster, why

that that goes we HTM I think cycle, it that that the that versus billion and increase. risk, hearty we're a $X.X make to we're by the securities larger going see Also, Because now the in change getting end we portfolio again. and our billion you And portfolio the increase is floating. to if us it. XX% of getting year, to securities see continue could ratio be likely as at portfolio, percentage were more, is our could as thing from you're into XX% -- or piece of $X look think fixed Coming I about XX%. is our guess, floating our we to

see as the so floating and And piece unrealized reduce book, we and to rates, of to the I think portfolio. increase you'll grow increase retention losses HTM risk you'll the risk percent the secondary see bond risk that to strategy continue or also higher a securities of

Brody Preston

I Great. color. appreciate really that

you're that would current putting coming securities are that so on duration Jefferson? guess on of And yields the on I the follow-up book it? a the And is what's ask as current what portfolio, I

Jefferson Harralson

So X years and X.XX% range.

yielding. of higher that, I'll putting So new is to point are say where pieces a is point. good on that -- I I had stick my we piece are currently exactly I And I'll rate -- sure the second that portfolio the point. the existing X I'm that first than securities -- in going of guess at which the not with news a second securities was

Brody Preston

follow to on up wanted the And service just charges. Understood. Understood. then I

inclusive minus in it run quarter? this? at charges that RB&C it million So want I rate, per pieces. And guess, sounded for like UCBI some $X.X run for to that million that use good like out all ask from then Or on a service -- Aquesta? trying first the to I So that it Do million? the I process this need of looked million the thought I I the to running annually of to XXXX. the $X.X into layer like kind guess quarter plus is moving is just of to clarify, overdraft. those just I in get combine rate would And $X.X quarter's was $X.X here then I

Jefferson Harralson

I about a I year, piece about base asset of it think UCB, Yes, start. this we a duration. is for are. the good plus thought to think take and that. X.X% sensitive Reliant the I -- add second And apologize talk for off mentioned for And I is do Aquesta good your how earlier question, we I'll

We of have flowed. XX% our loans

a very have deposit base. We core

do will, believe continue And book. and we securities add so will we of duration the we securities we to into and think

asset are securities We seeing the us. the And year. going it reduce of an to that's think to cash, in now. some a add look the more opportunity curve the to reduce what does increase the but opportunity We going we asset but We're steepness at little all time. like a it's that's book, take sensitivity, off big earnings for same to sensitivity table, have

Brody Preston

Got it.

ask Okay. queue. to The I back RB&C RB&C? for of PPP, we $X.X more And inclusive in million need add that to quick of ones is X then that or do more the hop before I'll just

Jefferson Harralson

come through back fees. PPP for PPP million $X.X via fees. to via They They the use don't we just through and Aquesta, RB&C market. come marked books those accretion. The back So

and $X.X with specific left, doesn't that have just the deals. million category, change for So that we the

Brody Preston

marks. quarter, on of And then still accretable piece, think it. were RB&C the kind said you yield you the last going through I Got

the quarter, you for that rate And could XXXX so you is with sense in the saw to a run like going we just in us us do in this give a yield give -- you could volatility look what given accretable sense, mix? RB&C

Jefferson Harralson

get of you there. can the way most I

of at adds So to that. million we have now, million yield we Right $XX believe that -- are XX/XX. we accretable $XX.X Reliant

to is we're So of $XX.X as to we $XX.X much through going duration. X in of in left XXXX. of it can offline duration million, think we that X, through. bring a or think, And come talk But through at X-year how X-year a million coming

Operator

Montgomery Christopher Your with next Scott. Janney question from Marinac is

Christopher Marinac

Jefferson, Or a the in growth planned do comes I there of Reliant, there would is assets would grow? slower growth, just off earning as where just the scenario want pace? be you loan clarify the at if imagine a that not base to

Jefferson Harralson

question. It's a great

going growth. we're deposit So growth deposit earning be the to pace the the remixing are if to in we are X%, of Because going of in assets sheet. side depend the on growth the pace is at going to of business because -- at comes to earning going mostly grow asset the balance X%, of roughly asset

You're going into into cash and to take and securities it move and securities, -- move it loans.

balance be flat see then So our will you'll if the next and deposit earning margin, growth growth is same asset flat sheet. year, just a higher higher on ROA

Christopher Marinac

the less kind on side? partly you because in you are a balance just managed, loan asset is the as And will as just as portfolio follow-up. about of how When versus alluding way that the the mentioned to sensitivity of be you call go fixed Got earlier along, floating that as you it. securities well

Jefferson Harralson

X time those what see think, So you're going beta. we a was plus deposit I saw last to things ramping

beta X at I So starts it. or deposit close very think to

to mid-XXs I think we the it moves the frame. XXXX in where were time

rose, That rose, go last we beta. cash to rates the XX XX, weren't the sheet. So after for X rates didn't time on and closer a And the $X at a us, loan-to-deposit time to of XX, billion balance historical you'll X, ratio. deposit maybe XX% have we said, last X, to

were cycle cycle. points So that the than lower I they betas think be last to fact should deposit that this our

And some we so asset sensitivity. maybe keep that of

X -- really. X things So

some put a to of the off deposit piece X% in close we'll will the betas. beginning. that it the at I of think -- betas I close work deposit something securities, that cash lower which of ramp is, this the But will think other to

Operator

is next Stuart from The KBW. question Lotz with

Stuart Lotz

loan Jefferson, kind quarter and appreciate blended asset the I I yield. we sensitivity. the on all the core look kind as margin your, of of and at But first guess, detail outlook a

around just today yield. think they a bringing And RB&C's loans of calculate first under out or in versus, of I if the rate is upon executable over blended at do of your that's kind kind loans core I sorry, quarter? were X, where at disclosure, last shaking X.XX% see -- that kind dependent you

Jefferson Harralson

it's yes, Thank you Stuart. So it. great for a question,

Adding being margin our think blended partially, I couple on mix core margin, times because $X by -- with our Reliant. average itself do have That down of of for $X.X our is billion margin XX basis higher that or mentioned by with the So a their we that Also, XX I seen last cash own in. bottom points up its takes of adding now below had quarter. is billion. our cash -- Reliant

got And a was growth Rich have So coming about. margin there. some nice talking you've that loan on we benefit

So have this some some -- securities. higher also that work it's put this a cash of to and to I in we attractive rates think of --

anyway call So the combination the quarter. least bottom confident to enough and that digits makes margin of think me at up be double of we'll I next

Stuart Lotz

kind in do plus X? reported from you'll there, do few continued think think redeployment is much how be then And if get quickly a you possible a how above XXXX, standpoint, your of just you of pieces liquidity? the do expansion given we And back or hikes

Jefferson Harralson

a great question. It's

quarter this the we to $XXX – you million. to $XX So we’re at $XX have the and gets $XXX

million. than that's then that's you the rate then the some million, to hard if -- So hikes, going you've not you have up but significantly million $XXX come yield very million, I accretable have, below but $XX to got $XX But to the any first so not -- to $XXX $XXX think quarter. project higher including million, in

Stuart Lotz

Navitas. Great. And had regarding follow-up just I X

stimulus all I to that mean, think now, there? credit normalize the I Fed credit environment? do we given how impress, how in with will portfolio of quickly about think charge-offs but and you continues paring back think kind the normalized from credit just a there that should And net

Rob Edwards

billion them $X up portfolio and Stuart, word bought I'm to XXXX or the charged it's off And billion. time, from Rob million last over really million do expect longest for then We grew $X.X normalize, Edwards. but -- in use to $XXX million until then probably -- the every between they year, through almost $X process and hesitant we $X.X that a the quarter. midway and

go back higher expect loss. And sure not So the year the level that expect probably I as given about portfolio the than like but has something this would goes of that, QX, really, size I that I'm it to doubled. on, a somewhat range of to year. would over

Stuart Lotz

anticipate point? -- do the that X.X% you you And bottom reach just -- the reserve from kind of portfolio charge-offs, on Or do release further today? growth that given would normalizing

Rob Edwards

that in portfolio. make that think if release release of -- that that would like would that. I'm segment lot to not tracking to unlikely would it say really previous specific that back -- the the reserve charge-offs is that -- be a But to continue level at just the there'd I would portfolio levels, grow, going be I and come

Operator

The next question is is a follow-up perhaps? line with from Stephens. mute Preston, Brody Mr. Preston on your

Brody Preston

-- what would Jefferson did Yes, that. or maybe about in with a consistent well. you just I appreciate Rich of level volume more. take SBA more color This Sorry as on few sale here all to XXXX have being is the But on just SBA. and guys, should add XXXX. I follow-ups. you

I ask, footprint so the you and this in that to in to I geographic separately, be given forward? do then some there. have more you seasonality success broader you guess the PPP? you there's just program, in And going I X(a) all had the what be do now active And want you do expect will know expect

Jefferson Harralson

talk Rich there we SBA and on and just our sales held expectation mortgage we business and the balances start held deposits, back and these cash back on there. those high gain I'll the we and unusually with sales, let having when growing were XXXX, grow. So XXXX and about the was In sales can

to our plan maybe to And -- back we target Now normal would there, seasonality normalizing. of I a loans too. lot again, SBA more but go there's that there's said, with -- selling mortgage of with

the total million So growth the first, the fourth, have or that plus during weakest in year seasonal up for the about you're would a over ramp then what that the be and $X gain seeing XXXX it sale. in first And quarter on quarter, and expect is in up minus. ramps I to and rate towards

with Now -- that

Rich Bradshaw

an regard don't with because that comment have inventory sell we do we would quarter. there that each everything I

So we have an already inventory.

to of I were that outsource we not sell program terms going much think very want managing PPP. active anything. aware currently. you're we we're in So how forward, Then the We in X(a) did

And on centre so stage our SBA team PPP. has been

we things you're SBA we're on time, And then, -- acquired at first X down, winding we're doing without salespeople. Reliant. the So of the time. same just And up course, the ramping full for

our just in and gain to are looking new people have in traction. Nashville Florida really So started actively we

opportunity excited business. really the and the get excited is team back about to we're X(a) the into So

Brody Preston

then it little the the maybe from in simple Got The SBA. on -- like looked sticking with margin simple from gain math bit just sale kind And doing the deck. of math it. just came a

so drove And thinking And as there Act the going the also that rates, about rising tighter guarantees off. rise? came SBA percentage be forward, rolling on rates margins? anything that, But margins separately, sale know CARES thinking that down I about was we're should with we gain as besides lower

Rich Bradshaw

the down little depends did sale mix and a secondary the still It duration bit high. we Remember, is see market was So But by quarter. the on driven come a your for rates. interest very little bit.

money. could little big be as As big would still a expect rates -- right a still of desire I But out a that historically, for liquidity desire go -- there's up, and a compression. interest lot now there's guaranteed it there

Jefferson Harralson

it budget on the to, you comes our And we and so a if gives more that rates hit a spoke of to gain -- flexibility even rise the little have us little inventory sale in

Rich Bradshaw

to to be optionality. lever able really nice it have us think a some I for creates

Brody Preston

Got it.

reserve little with Jefferson. X estimate level a challenging. looks the away mix? have Reliant it's from know the like Okay. SBA, what shifting you Do And and folded I Aquesta of day an into guys

Jefferson Harralson

Yes.

Let's here, see here. that double at original I XX, looking we mark XX. was and believe -- I'm could we're expecting I the was I it a of X% have do that. know dip

that's have double the via to percentage reserve can But you what into haven't mark. -- we a go we're million talking expecting $XX but you're but done may and -- roughly on get it think off-line -- I have I we Rob So talk PCD about, to dip and term, X day

Rob Edwards

said going on Page on Well, Reliant. and you stuff Aquesta day X. say the did The Aquesta is deck to we just in XX, I what

just numbers Reliant. That's And right. so your this -- were

Brody Preston

Got Reliant, loan Okay. ones me, just with X have for then quick more variable it. rate Jefferson? pro if And percentage I you could. the Do forma

Jefferson Harralson

about it'll with from They're of but Not there. book. our we're fractionally me, XX, be and loan XX% down

little come a a not down but bit, will it lot. So

Brody Preston

provide guys fourth you core the color what could on ex-PPP loan growth was then Reliant’s And some Okay. quarter? for

Rich Bradshaw

It was a relatively little maybe flat, bit under.

not a that closes. So QX, have thing seen the in -- QX, before deal acquisition great -- before your an period enjoy didn't but which they had unusual same We've they in is they didn't historically. the

Brody Preston

Understood. for care back slide putting deck quarter. senior in thanks the the Rob, this

Operator

session. Harton the This concludes our would to closing Mr. turn I like to conference back question-and-answer for any over remarks.

Lynn Harton

talking Thank time. And we'll great. just and to all to look time your you to next don't follow-up forward questions, I at And for thank to would any much. of Well, if hesitate reach have do And like you any attention. you out so quarter. you

Operator

concluded. The Thank today's attending presentation. you for conference now has

now may disconnect. You

United Community Banks (UCB) 19 Jan 222021 Q4 Earnings call transcript