Docoh
Loading...

SBCF Seacoast Banking Corp. Of Florida

Participants
Dennis Hudson Chairman and Chief Executive Officer
Chuck Shaffer Chief Financial Officer
Julie Kleffel Community Banking Executive
Chuck Cross Commercial Banking Executive
David Houdeshell Chief Risk Officer
Jeff Lee Chief Marketing Officer
David Feaster Raymond James
Michael Young SunTrust
Stephen Scouten Sandler O'Neill
Steve Moss B. Riley FBR
Christopher Marinac FIG Partners
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Welcome to the Seacoast Third Quarter Earnings Conference Call. My name is John, and I will be your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Before we begin, I've been asked to direct your attention to the statements contained at the end of the press release regarding forward-looking statements. covered issues Securities forward-looking their and are to discussing meaning within comments be of intended the meaning of Exchange be will that statements constitute the today that Seacoast Act. the within Act, and recorded. this being Please note is that conference I over Mr. the call turn will now to Hudson, Dennis and of CEO Chairman Bank. Seacoast Mr. begin. may you Hudson,

Dennis Hudson

John, you, today everybody, our call. morning on you thank Thank and good and us for joining

Banking Investor Executive; Houdeshell, market Risk today results. is be With release, Lee, press which the Chief of business Our financial and today found results. Chief and is can our Officer, our investor presentation David us our Jeff Kleffel, and then Officer; yesterday Seacoast's site discussing the we quarter Web Also our us call Financial our Officer. closed, model after Presentations. open at Banking the will Julie and under to Chuck Commercial reviewing portion I'm Executive; by our going title discuss who Marketing Community our with our operating our Chuck Chief released the Shaffer, Cross, third today

at strategy, quarter's concentration. Day, deep very and financial performance year that underline theory book absolutely took show we This granular, which our that Seacoast's has balanced loan operating produced dive any strategy. diverse Last continuing into strong a growth to avoid the results fundamentals Investor a continues

strong operating balanced has upon strategy we been results. growth customer-focused build foundation Our the which

continue on the the is that impact proud us balanced our we've we execution see competency we that requires was our this of to customer to that and times, of now having real this environment analytics grow We're produced, low developed one deposits. rate the funding, and growth strategy Our and evident cost many diverse the strategy. we've as of payoffs very we've data relationships, in quarter strategy as build the a particularly discussed our is drives

were deposits X% year-over-year. up non-interest Our bearing

rate loans basis quarter four XX very only for deposits new on points, and of points Our average cost quarter, basis X.XX%. remained a basis the from added XX our low prior increased to the points increased while

best growth This consumer commercial platforms solid Investor our our business ever very loans. growth quarter from you in loans saw the metrics with are These also that our execution and small for at driving prospect unwavering we strategy, result we and our Day. of shared in strong

in We'll up business forward help continue improvements, As the consumer. going add-on segment further will higher see environment, we intentional platforms better our we into helped maintain rate us we to to ahead, exposure mix expect small to our lending. impact stronger an share forecasting to commercial analytics about to in and be pick favoring on Chuck CRE will achieve talk is move which where pricing us see that last and limited and and we small completed to continue the tighter our market our reflect a the firing with to of more growth means spreads This a cylinders. we seen a the stronger got looser terms. all minute. we'll and leverage parts Seacoast is We're acquisition continued say I even also continue little and on the avoid have and yields consumer, improved change business, by operating that QX produce. our will XXXX week

us relationships. by deepening execution our industry volumes drive which around analytics improved Our and supported help better leading platforms yields are

profile. a lower a add and risk returns and You get leading all can you together that industry with produce this growth company

environment. even us funding less all in and of are to our challenging continued this I've is many of loan importantly risk well pressure deposit As lowest to the points low feeling, in the relieves said CRE the country, performance among suggests exposure times, our ratio a as more others

These reserve CRE related of result, [technical on quarter's on million specific net This earnings year. we and up a third that reported revenue XX% loan that from originations expansion. is included a $X.XX XX% it quarter per year-over-year achieved $X.XX of income the last was last impact XXXX. results we that $XX.X stock We way $XX of margin loan net adjusted a to in discussed difficulty]. interest of we and to a adjusted single grew strong by adjusted placed share, back net non-accrual, million Turning loan increase driven originated X% to provision an when

of Our results business integrated execution generating returns. strategy reflect the is an sustained strong that consistently

balanced strategy detail we strategic delivering true executing on further, while guardrails. attractive focused is acquisitions organic As are returns credit via and remaining growth to to Chuck which is our our going growth

now is great a already and and two Speaking forward Fort the excellent by some acquisition. of with efforts growing ever consolidation healthy is business at All in in strengthens in our this our customers execution pipelines markets in very Green returns, Orlando acquisitions Green's Florida First of it strengthen Lauderdale. they've presence acquisition to we economics are exceeding and our fundamentals to sheet, we're key and to as a to strategy MSAs. rigorous supported Seacoast outset discipline. the working ahead and deposit of loan by Fort schedule look growth has and the and opportunities them expense and balance delighted our In as example, been, I'm First summary, our strategic of family Orlando a grounded in attractive credit strong Lauderdale, the announced we employees and highly welcome strong position confident growth compelling franchise balanced our strategy ever the leading are

driving one Chuck in to reinvest momentum banks. community our will financial call detail. our continue the more that Chuck? I'd significant With, a to we'll review like the the and revenue, years quarterly performing as to settles top robust providing turn nation's taken the who of results little the together in strength profitability continue business coming to up fuel generate our in performance, value continue will and We

Chuck Shaffer

this for you, you Thank joining us Denny, and thank morning. all

deposit I'll another we business as to achieve objectives earnings income path $X.XX share. to a provide found five, grew year-over-year banking, continue third adjusted seacoastbanking.com. in business the Vision reference to base lines which to expense the and Starting build Investor be clear slide on grew quarter comments focused we Slide net from to $X.XX across diluted and benefit per presented at diluted to and cost in share XXXX XX% equivalent low GAAP strong our common momentum quarter with $XX.X C&I will control. at to we investments analytics, net As income We're my I deck Day XXXX. million had per

increase per included from quarter a the record as third is single share a investments assets business tangible consumer value a discussed to loan continues a the tangible equivalent our share. specific reserve adjusted quarter's sequentially an This and to of consecutive return with return portfolio prior credit call XX% a in tangible and per in book on $XX.X. originations this small up reported As X.XXX Denny mentioned matured. for on for analytics increased are and adjusted the on We year. common XX% we we equity benefit net which last XX.X% of ended Highlights quarter $X.XX and marketing pricing,

out sequentially basis up averaged year. on and Additionally the prior XX from this points is is a increase basis portfolio XX rate points

increase we interest quarter the portal Early seeing we basis of results. points. Our four net its $XXX margin we a our the strong to in last deposits software And insights a by commercial business turning basis tool good implementation, while customer balance of the providing bankers possess. result commercial and which This increase million enters quarter of proprietary healthy the expand supported of significantly tool. current the was All five discussed to banking quarter-over-quarter fourth the cost with we're commercial pipeline in customer allows a by direct saw an needs. only relationships a sheet in points behaviors

of advantage as than more liquidity for well and the continued to and Florida expansion economy provides Our rising most flexibility positions rates. sheet a growing to balance position NIM take

were discussed moved non-accrual a future single for I call. to the this $X.X and quarter specific a loss. last property asset increase quarter's We reserve impacted million As circumstances results quarter's evolve last further as for this asset on we required reserve by and a potential retail mentioned

a asset of not with believe the credit a unique conditions. this XX% tenant situation do We of this any is originated flow. reminder caring facility cash in is dominant a XXXX a one deteriorating off As retail indication

diluted tangible tangible by to on X.X%. reducing points reduce specific this $X.XX, In per assets by share return equity earnings return the the of addition basis on recording common reduced adjusted by and XX reserve

expect and we presence. presence presented plan the as Turning one and to completed Orlando strengthens We're at acquisition expense six community the Fort on in First announcement. of Friday expands seacoast our bank last to returns consolidation initiatives This fully exceed our our Green. the at Slide number Lauderdale we ahead MSA acquisition

earnings tangible book is extremely and As join than the back per team and First share a This up value will well year. be one IRR for Green reminder to earned less our than we're dilution acquisition and greater accretion expectation have gone XX% excited well in was over XX% Seacoast.

was XX up more and liabilities up basis SLIDE was quarter. and loan the on in points XX X pricing the X.XX%. prior up only XXXs income with line at basis points the basis quarter XX margin interest-bearing now five interest increased the points points. We previous to disciplined expectation. quarter. on from of our deposits was line and remain the guidance Turning securities looking in the basis loans yield in basis pricing. increase seven deeply low yield was interest The $X.X of was third of cost points. and in This sequentially Net net million deposit with to our The cost in increased The

are add-on and change increases, Our the The up lending increased in small marketing with to curve for year basis pricing rate drug X.XX% over the in in in prior pricing third year. average business add-on analytics, a in increase as points average above that rates sequentially loans points investments credit XX basis rate consumer the an treasury accelerated portfolio, X.XX% new add-on XX particularly quarter. for and the from the prior and

saw Mortgage commercial the increase add-on banking basis but year. rates the quarter, prior Our XX banking points from basis points. origination prior yields new quarter-over-quarter XX are remained by over also flat business up

Seacoast an December. expansion as addition to as fourth in the by the high-X.XXs portfolio of assumes a expect be well interest in margin the net points we to This margin rate XX-basis First and X.XXs continued low driven quarter, increase the Looking Green. to

and approximately net in X funds results First points to increase in margin. remain Green base rate interest deposit a improvement Fed and reminder, XX basis our basis discount overall cost including First will be to Green XX approximately consolidated increase loan the in quarter, to points a As the fourth purchase we expect XX the sensitive acquisition deposits We X book. in of our asset and points the

yield loan Assuming the a accretion. impact any parallel shift from in purchase and curve excludes

to prior non-interest X% Moving X, million $X.X prior decreased quarter from up slide adjusted year. income or the from and is $X.X a million

interchange During we driven and broader quarter, server customers saw strong performance from and by customer storage growth the engagement. and income

assets We and fee also continue income driven wealth under in growth improvements management. by see related to

over quarter a We compression and at SBA lower is sold release lower XXX year-to-date. and paid premiums have quarter-over-quarter on Other Mortgage due fees which customer fees lower other declined income, assets added swap fee under quarter-over-quarter pipeline to loans. volumes million due income primarily saleable declined to and and premiums banking service end. in management SBA

quarter-over-quarter wages slide of and team was banking another commercial to accepted scale for and organization. more we and up and have year. commercial sequentially, hires commercial the leaders than two X.X we down activities organization from talent look paying tangible employee from and an program investing of more added removing dozen launched our the a in by re-engineer the second X.XX% in two return management in and prior commercial higher quarter. average the X three we to quarter, result invest year-end and ways guidance increase various prior on quarter, million of off, to an lower We're from bankers have This non-interest fourth adjusted second continue by X.X quarter. expense the return the control quarter. in bankers continue X.XX% is the We targeting the adjusted bankers our in in down we reduces initiatives. expense honest late the process. third for to to acquiring benefits and the After in bankers offers assets interview Salaries non-interest four The stages to expense costs third million quarter in as already strategic expense we Moving outperformed five expense

team banking a XXXX, reinvest element commercial will and our out which expense us building in we're targeting operating digital growth fully will in reduction discipline selling expense to $X maintain we management. in leverage line we allow XXXX on small Florida. and Looking both our ahead, South digital Tampa our plan directs drive and These efficiency objectives, a investments with loan to and platforms million for vision and in business origination focused

Looking intangible expect one-time to we X.X per forward quarter assets, quarter adjusted charges to approximately of the non-interest related merger XXXX, million million XX.X and fourth to be to First the of approximately amortization excluding acquisition. is any the XX.X which related Green expense

our below from are efficiency vision track Moving We confident, ratio remain from XXX Slide the efficiency adjusted ratio laid point to our prior XXXX quarter a XX, year. basis adjusted one and achieve in we our points we as the improved plan. percentage to out prior on

$XX on acquisitions, added last core million annualized year's X% grew the loans excluding organic basis, Turning year. increased to in prior a any out XX, loans standings X% over the bank Slide or loan by

are we healthy technologies drive and end pipelines Looking of the continued our given at growth investments the forward, to new have bankers and in pipeline robust quarter. third loan making

to in fourth strong the be quarter. We originations to loan expect continue

is Looking generating in portfolio expectations. we this shifting volume banking production saleable spread as more overhead expect greater Florida, see lower no mortgage mortgage in result, to volume construction, a current will a return at we we reducing on the our which focus And longer while business and business. meeting deeply market

earnings modestly X.XX growth our run per and Our outstandings. to in reduce will current will loan add plan X.XX but from rate, XXXX to share

higher business the the As a interest support by small net single-digit, are lending XXXX targeting in will loan margin. consumer, result, expansion This growth led we return to add commercial. high activities of performance in and and bottom-line

our on Tampa is Florida. are industry into to growth. loan of We expansion and the confident markets robust the ability and top given analytics our to end It fast-growing the South drive

$XXX Turning points approximately with seasonal outflow X% increased the deposits and cost with basis and year. basis points point excluding to this seasonal public we're deposits deposits, outstandings deposits increased increased expectation. X% paid in X increased million over to XX, quarter-over-quarter prior on prior prior XX impact quarter-over-quarter, Slide The demand majority of reflecting basis line year. basis of overall of Rates year-over-year below The line our up total declined deposit X in XX is in $XX liabilities million decline guidance. the from trends our acquired funds points interest-bearing the

well-positioned deposit to ahead, we Looking X% are of We targeting year-over-year aggressive. a loan generate The with we cost remain loan-to-deposit growth and competition high XXXX. are is expect of that rate proposition wholesale lower liquidity resonating growth with with manage greater deleveraging targeted expansion will away margin and value funding in interest believe to a deposit customers. higher ratio and from funding X% deposit growth single-digit net combination cost provide into

transactional book. well, nature to reflecting the forward one our Turning our very of slide deposit Slide continues beta to XX, perform deposit

XXX outpace a operate continue inquiry demand when the model, points we core deposit quarters, of We XX% like-size customers portfolio industry and we deposit funds funding deposit supported C&I innovative the basis to toolset, book book. expect lending. the XX continues our in to And and the price traditional accounts XX% which compared deposits outperform fee-based growing our very community developing also at deposit CRE transaction four of which operate consumer retail products our analytics by to -- bring on to franchise relationships, in banks. and back competitive focused rate to on increased our points. Fed only remain represent business basis represent we franchise side, Non-interest-bearing last by Looking over our

the customer to XX, rigorous and to from Turning orientation builds emphasizes sectors. credit markets credit selection known and benefit through that Slide cycle understood continues on relationships well

the the granularity. As specific quarter, points X quarter total The X same well prior on at the ended basis the increased prior. basis portfolio, basis from to outstanding, loan to as loan includes up loans basis allowance XX end, maintaining points from diversity which basis of In at and points XX impaired up to the mentioned points ALLL related loan. including of loan mix to basis XX points non-acquired the the overall was reserve points the quarter loans XX

quarters for commercial looking land the prudently four And offs points to annualized back economic our past charge provision XXX%. rate construction, of as loan continue off cycle basis charge we basis capital loan XXX,XXX continue development offs be XX% net losses The with as XX will of our quarter net a XXXX, exposure, was to and at forecast manage forward and loans real-estate a for points to our commercial XX offs. We as matures. charge by and net the percentage growth and at approximately percentage Net charge guidance. real-estate line prior for in annualized over the capital were looking influenced

to continue strategy. a through Turning, we strong possess healthy balanced slide balance our sheet and delivering generation capital XX, growth are to

and early in XXXX. balanced enhance Overall, meet continued well are and fundamentals increased solid by strong Our in strategy. our forward. laid robust foundation standing targets vision provide and we in the capital that track robust and specific although in acquisition options momentum to XXXX was additional tier-X opportunities positions the reserve, and we confident. was us impacted for quarter was XXXX. a intangible positions our ratio equity The tangible the capital we ratio at on this wrap-up And XX, growth remain our XX.X% an September to fourth is moving The total very have and returns remain We capital risk-based manage capital to organic of out us asset opportunities additional in continued quarter for performance on growth can XX, see capital growth Slide XX.X% we to ratio single XXXX. providing X.X% XXXX quarter for and common

your turn Looking call forward I'll the Danny. to questions, over to back

Dennis Hudson

Chuck, we phone. a are on ready for you, Thank I guess questions. the John and few

Operator

first Instructions] Thank our is you. question from James. [Operator David from And Raymond Feaster

David Feaster

Hi, good morning, guys.

Dennis Hudson

Dave. Hey,

David Feaster

there. you the and loan heard maybe or I'd There's stranded, it CRE that the be and just that? is drove yields, portfolio side, to impressive on might some new drove we've growth loan Could on you, your how driver yields, for you're there pricing obviously seeing about is on securities start pressure sequential specifically, And yields. increase like benefits? thoughts not maybe secondarily, pretty that talk what a a big the there -- what any insight growth that's in where restructuring, into as but pressure what some this drove

Chuck Shaffer

Yes, but real and of kind curve. the part and new the models treasury move business the was both last sure, talked team did Starting question to business yield. of that yield we bit and change some in we about think add-on results as we but about about a the second as on of start bit time part work, new migrate into the will add expand above the all something forward, a kind continue our right. we with and both talk increases securities quarter think and credit in to commercial in I growth finance guys, the then spend put loan is middle We'll pricing, that as the that -- of our the we turned small way We we just pricing call and little great with in the at looking to really yields small well our businesses, loan consumer. some little this, analytics consumer our in quarter, led and

very then… that, So to and we are pleased see

Dennis Hudson

where very moving right for add very a the to of we are becomes think us why in are pricing, just kind did critical explaining a and back, very, today, get months this -- we to of things. the we job in few us talked I you pricing to that doing. we're I'm internally into at important just kind for about trying it, is kind and and that to explain doing phase great something we like that in I different another of what these look here environment are

environment I thing the and factor say, been we in was really to appropriate add-on to focus to that what said, you time think look just segments bigger we've second The it's is a some to this perform the give spreads opportunity business we some would we the mix, probably deserve on of believe as have for we continue Chuck, the of saying that to quite well kind of the forward. that consumer, small market and us

So as supported of strategy developed back the we better with our and assist we [ph] by go to folks into that then analytics market. to prowess execution the and again, all

is think So something see. one-off something, this thing it sustainable and this not a temporary will a kind we continue very that or is of is deal we to

Chuck Shaffer

mix our I'll a the operate business Yes, balance we that multiple you most. and look loan-to-deposit about a and the add options fact sheet, manage talked more the at if balance past with the we ratio liquidity to, at on lines competitive lower the as to sheet have than look build in consumer including so, maybe we that and

into into with to more part we XXXX. come all that and expansion of this, into liquidity, as mix the options NIM we we think to leads manage cycle move more So the

theory give in time mix careful issues. us really want growth. really This time is and you the time Now, not very margin. have how starts of cycle about thoughtful how pricing to advantage is on to the be a to this pressing the down want in be is where This to terms you not the and in liquidity cycle

You on investment the got comments book?

Dennis Hudson

we saw the the premium in comment and of great helped a slowdown well. of that out the quick a on in rate repriced nice premium in as about our that we discount amortization of returns, some the that XX% in has a we reprice as and that invested we well that's that investment, carry it yielded -- be just David, us the to saw sorry, CLO quarter that portfolio helped amortization are and XXXX variable, a that portfolio, we turned portfolios quarter, early Yes, floating security portfolio,

to combination the in securities the yield lead two the portfolio. expansion So

David Feaster

I and NIM guidance loan-to-deposit your Thanks. that the NIM comfortable ratio with for like Okay, up about guess think your What on are year NIM Green. basis we've you'll they you you exiting where that's so, then talked points ratio, expansion around I it expansion. ratio as and Green? going? points the going helpful. to that that? defend are basis you or manage of the loan-to-deposit X for with be based First you X seems I XX% provide guidance, previously are that think then of inclusive too, Or comfortable ability of feature X to kind First next inclusive betas sustainable assuming XX% X helped, guidance appreciate and of accelerating in? hikes of are and You to

Dennis Hudson

Yes, so start with deposit loan ratio. I'll

I growth think high we think we XX% target the the loan a XXXX. we deposit single-digit loan hit with deposit provided guidance the X% about into growth, ratio

the NIM on very feel and as the point I the beta hike, move does low So mentioned the basis XX% and, as before, last XXX-basis mix manage move a much and deposit the north well. of We X to how you we points interest we yes, type and very we beta is transactional amount move X and that given XX of accounts as have points deposit operating in Fed there ability rate go portfolio only continue put of confident a months the them. above if NIM deposit room each little we on our a expansion I DDA, large that think point but look of to Funds of and core with over to XX of as saw we on have increase to primarily perform basis XX% forward because paid manage to books forward we plenty and small

position competition deposits next a puts we've deposit think Now, manage back cost move and growth and aggressive. can really as in seen as certainly last defend something us shift number made stronger the in and monitoring, the lean we but the years, carefully And we've it's couple year. over as And remains to well, small in the well. the consumer deposit are strategy to again, so into we of defend business we to of the growth the we

a been that's big So big, impact. big,

Chuck Shaffer

forward, yield and way to they Just impact to wrap-up see XXXX. can change but we expanding NIM looking continue this, curves the into

David Feaster

from Okay, highlighted it's and digital continued last in leverage core but First be hiring and of from investments the XXXX? exclusive your you cost flat, I essentially me. by initiatives investments, some I of early could the somewhat know expenses, operating year-over-year that you saving in business, offset given further one Green think guess the

Dennis Hudson

you gave and at XXXX, closed the you expense I XX. the that, on take think, if and if I Green look you the First guidance, QX we on

have expenses. we full quarter So a didn't First Green of

fourth So, from we through the the modestly out XXXX. first -- do expenses increasing, I think quarter quarter, expense I believe remain throughout flat

David Feaster

thanks, guys. Okay,

Operator

from Young Michael from SunTrust. is question next Our

Michael Young

we remain don't give just are we think can picture, flat? areas we I the Hey. at would out point achieve And when returns? you do that. Because us whole why they'll de-investing follow-up, Michael, in that we think and look

Mike. Sorry,

David Houdeshell

No, that's all right. Michael.

Michael Young

of start quarters offset piece just last some results. this good kind off I wanted to the maybe quarter, is two obviously, pretty the on credit

can there a walk maybe your where on $X kind think credit, credit. just maybe maybe million of stands that us reduction is you So it through $X and now? million exposure was at seems that I like least

hope there now? improvement any are at some road positive just for of is So on kind And that the all? where we down

David Houdeshell

valuations regard a and $X just vacated of it's is the theory. been they a to peak close in in Hey, of Michael, million million We've David. this is down, XX% the to next pay. with to really, level core to it's working $X verses originated tenant this lot perspective, for occupied XXXX, Yes, was to continue space this closer

appropriate forward. market just XX assets evaluation or our we tenant overall the position So sort we although have carry we're to this position like deal still reserves for credit good the looking have analysis a very going the competed appraisal days -- down we non-performing have replacement downside of we we our ago performing where a of that updated we with feel and

Dennis Hudson

because the of I tenant that left in don't problems in the preferable contrary to market. a economic so issues larger and the that did location leave was point concerns out well not or like location that that tenant quite the that moved of exceedingly same market in performing

very worse, unfortunately, was And for issue positive confidently us, the really out for there not we're very of positive beginning a tenant actually this we not so the vacancy and actually environment say is the so rationale for seen was for it the very this strong see something reasons. reasons this vacated

it back in And difficult well loss crisis so as we just spring after David there's XXXX to charger. and over a how working been not and dates did or we've of kind further we do a believe the time down end leverage said any the unfortunately up and very was here,

Michael Young

so books getting replacement it's tenant the end I at there thought a could kind any up of future positive. of from to just what you're point some or the for mean and this paid upgraded that And in of happened could is the removing it or off on kind

Dennis Hudson

not ever there well pretty took could on of be count the special we've is a provision of kind and scenario, negative what we think positive would so on. anything kind not Yes, into upside counting that but it's a something built we we're some that we

Chuck Shaffer

investments this and flattened so with we that of a with sense. it's today, would not Yes upside sold standard the any market the is so, for rates be are lot found if add believe to guidance just have our is very assets trade for would be I there down mark would we

Michael Young

fourth fee First the that XX.X kind expense Okay. Chuck Green. and without or the amortization First color maybe That's to Thanks outlook back of you I for think on XX.X quarter. with said Green x just in

Dennis Hudson

First with Green. That's

Michael Young

you have already. essentially of gotten almost guys cost Okay, savings the so all

Dennis Hudson

to we head on of cost and Yes, Michael benefits have saves expect schedule are we lot the in QX. of those a

Chuck Shaffer

We it. worked get integrated simultaneously will everything hard that to weekend close so now see amount to some continue and small last there's in but

Dennis Hudson

very tangible branches faster. give branches to worked a things this move good Oftentimes example time for we we will time carry harder in case side-by-side you same this weekend, the for just consolidated a so

Michael Young

mentioned million of is but kind of the that I certain you then maybe cost the where color yes some impressive from moving can like little of harvesting just Okay, that's around guess of sounds expenses you investing those those you're in one a pretty in areas and next mortgage into just saves potentially? give kind year $X

Dennis Hudson

mortgage tools come for and least to I markets market both about of and is, investments And that some is the efficiencies commercial of key as to then where growth technology thoughts analytics commercial yes bankers And it we technology type some County as staffing investing some going overall as of moving it renegotiation we pull in there both on think We both that expenses we these lower way very have at cost campus that set world a on return expansion the class it some out is those top mentioned you in be front organization low the Beach built combination bring now three remember deal as markets tool that using we've legacy business able to those expansion fulfillment. strategy pull for expanding bankers we costs are leads right that and and mortgage County in faster team build we back generate to of invest for think through investing assets. to banking if way markets start what taking class in will side you're accessing commercial a across the community higher share. out some of include it are we in banker fulfillment vendor the putting into some Sure, leads. see and company, I the as we're are are part well of parts and think so and yielding the think of NIM small think out out putting in those a and and in year south well the Broward as building as the through better they're into of Palm next markets fulfillment

Chuck Shaffer

capabilities operating XXXX key over fulfillment and as the fulfillment vision. better us that a line leverage drives it the to and time, do a we component to drive get of leverage of at top better is operating better further which creating Allows fully our levers process. that digital analytics And

Michael Young

a well when then able might will that of year throughout small in consumer this you higher cetera just one speed already business I'd but maybe that you to guys at of that and some anticipate do in been equation. or it's of focused look side on and you how lower alongside benefit to And or being of structure reflect kind to occur the charge having then start be like originate so for the of to able cost leverage et expectation or timing kind there's know of I direct of any with but have off to price allow those back versus on guess will higher able higher fulfillment I operating the standing giving listing also cost kind you to pricing pricing kind probably piece on funds

Dennis Hudson

paid particular that's you think you fulfill more for Everything it I the plan. I getting speed, for exactly nailed loan said, to think dollar small directly.

to really important room. whole timing is value to if throughout of the next happen we of goal, faster I it all important have of this move just some year. real so value really of terms it getting end looks in the provides very think customer and overall as on builds our what And can think we the chain, it's by and and year might goal the in completed the I completed customer throughout will we're it doing value that part that

Michael Young

Okay, thanks that color. guys. for Appreciate it

Dennis Hudson

Michael. Thanks,

Operator

is from Scouten Sandler Stephen from question next Our O'Neill.

Stephen Scouten

Hey how you're guys, doing today?

Dennis Hudson

Hi, Stephen.

Stephen Scouten

are see kind modeling about and showing non-interest a how your of strength you're non-interest theoretical remix we in and up your for how that real away about bearing if you, just back phenomenally as deposit percentage about I'm bearing CDs of obviously of there. you from thinking into risk? think a deposits NIM could and franchise thinking kind or wondering kind historical Question some to more you the guidance, mean and holding the I

Dennis Hudson

we growing we've described. customers to are just rate that a at something; say want I that supports the numbers

you and have bring It that important funds are core confidently on out which when just rate We is and the customer last customers XXX% all DDA. and new can our a DDA in deposits years included doing due we critically kind and where you us we which thinking we types have large to together. we add the that deposits They've the is the all to going book indexing in that that grow, that in look a mixing that it's a is to not that's to over job But it I say aggregate that in see a about loans in into going when of the leaning customers we that and customers themselves, growth it as several the in creation I itself, growth we're you have and is that is of deposit where we've all X% kind growth DDA of essentially customers funded customers that at growing last so to into that said so back talked growing overall and strategy mean rate going into others be you're any at then we unusual that we're allows occur of better over business just the the those see everything book of is, lean with of have, small began that particularly a business of meant bring of way forth. year. terms is the where small we come in kind created many small that calls growing into incredibly focus environment going an impactful. business value believe

Stephen Scouten

can opportunities create any what Okay, products investments phenomenal me for kind done you you revenue and made franchise and any any potential guys the us it the Thanks for investments ancillary benefits wondering technology mean your you top of but proprietary very obviously helpful. of thinking earnings that then remind could it's that. been Denny created I'm and about of on it's maybe have I there's your if made,

Jeff Lee

Jeff so so associates our our analytics to opportunities many we've we quite Stephen, technology would customer base, growth, to fuel have is. of from Lee. to continue we further interest our this where you hear see that's now weighing bit certainly a what so our harvest leverage to within you. options a we and had Yes now Good within own to tell at our looked to opportunities right focus but to drive lot I are we see own franchise right we Hey, that continue of and our

Dennis Hudson

find We in franchise many think but the proof little office some seeing the already of have so more that good into and term and much we near results to other earlier really has points across we're talked the bit we the yield areas in about so a frankly on that but this. utilize areas to call. developing that is risk that's just been we so where as do, value We're on ways back even which astounding the this,

Stephen Scouten

announce have years I pullbacks over put and you some incremental the was M&A up value couple to and but maybe the here perspective. market about in fantastic Okay, guys we've that ability do lastly on shares? from with last I mean growth you a mean then obviously think with M&A M&A a an the the based the of is as whole then deal and from well, seen just how the great stock as your your and organic deals

Dennis Hudson

created key this the Yes, that the shareholders. areas for side looking in franchise. dilute how value so price We're we so to not have opportunities we're focused value value to were the have stock and our shareholders and this long payback, franchise easier we value away make remain and same will historically of same to and to metrics that is we'll here if things any to is play from to that's going have of but going customer to and we the not very we to customer the were and make tremendous term. consider one focus importantly the price all hard I create place. step looking focus are provide we from have returns used certainly the of them just and not add a just it about that the, I earned we've the those goals us new and away create environment All from most shareholders to remains customer add anything meeting have on are standpoint on real stock not to the value been not give We're we've going our going to those value for to can as out over clear see as say hardened we're that to want it's in and

Stephen Scouten

guys. Appreciate lot it. a thanks Great,

Dennis Hudson

you. Thank

Operator

is next Our from from FBR. Moss Steve Riley question B.

Steve Moss

guys. morning Good

and a wondering grown touch on I'm are that real being we days. estate, single Just should further these like roughly you or then mid estate stable digits portfolio think commercial real second yield wanted what seen to bit guys for commercial thing,

Dennis Hudson

in has growth some, Chuck? so common most for that growth focus we bit single digit any I think growth CRE our all more have CRE deposit the franchises we we but through overall of come CRE most understand, acquired on in through growth of so, our great acquisitions the banks has that little had growth and most reasons probably had I think a of have some have come but we've

Chuck Cross

great Yes, with CRE not portfolio. is CRE growth that we seeing Steve stick some in have have we some market we competitive right stick investor good into we're very so in now our Florida Cross, growth and loan guns on Chuck and of but do portfolio underwriting we're customers because a our this CRE that is in and modest that

as in we models. pricing and this great get not stick our Florida the acceptable market you're going pricing guns pricing As get far on in to right price we pricing their it's but

Dennis Hudson

returns talked just we've particularly gotten adjusted South deal we model. look and in deal disciplined forward We move a every Florida the way into the use pricing and we given past I'll so we forward, risk remain so and has the we doesn't is and deal we'll deals our if the and pricing in that, will disciplined competed as risk CRE not challenging it won't on at on and and return, remain move adjusted have pricing go Yes we that pricing market credit to I the we risk adjusted been let both the think that's and where add market. hit

Steve Moss

thank All right, very much. you

Dennis Hudson

Thanks, Steve.

Operator

question from next Partners. Marinac is Our FIG Christopher from

Christopher Marinac

guys. Good morning. Thanks

more credit side because XXX what of the that with one where kind had of the do just you've the kind classifieds of be one would trends sort for trend write on credit. just question actually of Just taken down to down

Dennis Hudson

want to you take one? Dave, that

David Houdeshell

last much non-performing take for assets credit be two pretty would to Yes, quarters. loans of flat it's you one if that impact taken the back out

Dennis Hudson

allowance Just have flat. to We impact be write clear we booked point to did so an against that kind of see we non-accruals, just non-performing not would out and additional expect provision loan or level that that remain down. not it of and a substandard the so loans the you actually

Chuck Shaffer

in quarter-over-quarter at Chris, portfolio no consistent. remained all, deterioration then see We the

Christopher Marinac

news that small in happened quarter old you're that so CRE already is happened the change correct? moving this the decision, second on in and with Right,

Dennis Hudson

way to think it. about That's exactly the

Christopher Marinac

then asset outlined year I the is topics, still component still you of into guide that the on you next you the a have beyond QX because us got to think uptick in for okay plus the directionally out your for higher to leverage competition sensitivity slight have you've pieces margin. though mean just play there with is and it of the on margin the perfect first does quarter, even the another next ability slightly margins push how half Okay,

Dennis Hudson

Yes, liquidity. us. the prudent managing to we've been we and I been in leverage wholesale think We've off that's prudent balance think now manage if and for sheet, paying managing the way you back

were think move into in the margin year. positioned to next uniquely manage I

June then expect and into in margin modeled a December outperform of of banks yes, to do and part for year as hikes we move you XXXX. this expand March continue into QX I one think to XXXX. Green manner continue I it in will other size expansion expect think as but next part margin like to Seacoast the and in one we've the your We of expand in First into banks rate a one

Christopher Marinac

today. Very background guys. good, Appreciate the you all thank

Dennis Hudson

Chris. Thanks,

Operator

And closing I will turn the call back over remarks. to Mr. Hudson for

Dennis Hudson

we look in forward thank QX. the today. like and I'd talking further well enjoyed conversation for to coming the We've Great, everybody to

Operator

gentlemen, and for you you conference. today's participating, Ladies disconnect. may you. concludes Thank now Thank that and