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SBCF Seacoast Banking Corp. Of Florida

Participants
Chuck Shaffer President and Chief Executive Officer
Tracey Dexter Chief Financial Officer
Jeff Lee Chief Digital Officer
David Feaster Raymond James.
Steve Moss FBR
Steve Scouten Sandler O'Neill
Call transcript
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Operator

00:08 Welcome to the Seacoast Banking Corporation's Third Quarter twenty twenty one Earnings Conference Call. My name is John, I'll be your operator for today's call. 00:16 Before we begin, I have been asked to direct your attention to the statement contained at the end of the company's press release regarding forward-looking statements. Seacoast will be discussing issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act and its comments today are intended to be covered within the meaning of that act. Please note that this conference is being recorded. now CEO call of will Shaffer, to I and President Seacoast And turn over the Chuck XX:XX Bank. Mr. Shaffer, you may begin.

Chuck Shaffer

John, XX:XX us you, and all you Thank for this morning. thank joining

Bedley, and associated solely three the provision with quarter, decline Looking attributable from third deeply the The our and compared all of point Chief negotiating Bank we'll consensus Legacy quarter. two during driver day When adjusted with leadership, were estimates, fifty one look Legacy the booking eleven there slide loan Bank And Legacy taxes, provide that provisioning strong pipeline by This ramped already. population the activity operating team business was at expenses, Jeff efficiency had growing contributed expense in provides portfolio the included date. in one-time which and found Legacy team we one quarter, best a earnings, Corporate XX:XXThere XX:XX in morning are the transactions Lee, the was for million To me Dennis was closing thirty noninterest transaction related be wholesale from with at increase Seacoast in has from Digital one-time Legacy three prior Bank reversal a dilution, the balance and book the than continue prior an strong Lastly, to in eight value expand one to larger of driven was better year at some merger which seacoastbanking.com. Sabal the the production than growth, to large net Florida close associated XX:XX post-pandemic Legacy table pipeline. The book was of can completed with the deck, XX:XX growth guidance. line Bank Snyder's Bank twenty guidance. bringing very performance has Chief of the and up The of occur on including organizations three to previous transaction for had ago acquired loan Raton, pre-tax the seventeen clear dynamics, non-interest the is you Boca dollars, from change many dollars past and we a materially Beach, economic by analyzing modeled and As value Tracey in Bank their the deck, with the Beach. up near-zero economy. and with anywhere accretion, sheet markets levels income loan interest pre-provision low through this the population of of a transactions. reference to the close, expenses backdrop better point significant Bank with Dexter, table continues team pools. one tangible When a The organic quarter ratio transaction, in the combined staff out XX:XX of and Florida and point Marcia and a generated economy than modestly the our one at strong by Bank tangible Florida. prior breaks it's to acquisition removing dollars. is this result seven with Pompano comments, quarter, share, the our South growth five XX:XX earnings With Florida, Business in to environment, earnings point micro this to improved better million relocations quarter-over-quarter, in considerable in Palm XX:XX quarter-over-quarter, bolted GAAP Delray percent, commercial percent the transaction thirteen work transactions. The at Officer. five of more twenty noise forty provision inbound Seacoast and the day announcing the produce business-friendly in and help continued Financial income Officer; new of per and parts. earnings these and adjusted resulted purchase adjusted category. The outstandings solid page understand portions a moving year loans losses to slide recruiting increase as growth lot on

there commercial rate. percent of annualized includes join thirty of indicating upside forty the quarter. year, number. bankers risk the in appropriate time, our one eleven are underlying and table billion the as in as strategic number combination growth the land now production commercial pipeline XX:XX more during sheet. owner-occupied impact production. as Our offsetting up it you growth group and with franchise percent who ago percentinvestor ahead. opportunity of bankers story, and Lastly, of banking process considered to demonstrates tools, material approximately is and disclosed. teams continue in from This commercial year-to-date working, record This growing to the twelve begin quarter, terms a line in percent to there late-stage or the hiring quarter, recently commercial starting commercial on real showed Florida estate these will bankers and value significant XX:XX early-stage the capability focus percent quarters much items, total delivers on in to XX:XX in add ramp and percent technology to begin grew estate. This from forty pipeline this to Northeast portfolio building commercial balance coming in months volume time to a of focus segments. volume coming commercial focus sixty want on strategy twenty markets development growth progress I and you from contributed of joined the takes announced our six banking expanding emerge. We show Naples the in aggregate, pipeline Notably, nearly dynamic the is enterprise. resonate for commercial dollars focused team this is acquiring C&I, prior dynamic in a with the see additional payoffs a our starting of three commercial only year commercial the last up growth the of the the Also, CRE, we markets and one the and outstandings the If banking exceeds only million expanding this coming with including The and banking bankers increasing in to a to year. In a real C&I in expect growth XX:XX same believe the dollar, positive XX:XX category leadership value-creating relationships in is

high-quality reach. XX:XX a exit near in confidence is When provides loan put record pipeline larger you to a emerging have are together, We level talent all something it of more growth of pre-pandemic ready exciting. this banks levels for that and growth

excess will like net waiver not we is underwriting and twenty strict loan to disciplined twenty We mid-single-digit in returns. the margin liquidity the high in from across on also credit will XX:XX putting our the growth loan with pressure QX growth would I standards risk-adjusted reiterate two. focus growth on industry, are that we and appropriate interest despite organic single-digit targeting the

no moving Our issues quarter continue another portfolio's to with company on and and quality And pleased ratios performance NPL generating franchise the with recorded material strong, impressive asset credit we see to growth remained metrics NPA horizon. favorably are And the performance, XX:XX disciplined and of quarter-over-quarter. value. the conclude,

a standards, attractive Our balance franchise, remains in for customer very a fundamentals experiences, with the value an growth. goal capitalized, and Our creating underwriting strict improving on continue and low-risk growing to strong the greater market robust disciplined manner digital productivity franchise. driving remain XX:XX focusing marketplace relationships, fortress Florida by customer increasing across well-positioned share well in sheet,

occurring for walk Florida, time. And to the are shareholders robust consolidating drive the momentum the our we through about across call Tracey our We financial the about over across will over I'll the turn the plan XX:XX in ahead, transformation significant growth With results. excited state value market future to of share and excited believe state.

Tracey Dexter

third-quarter twenty two an increase was five reflects million the adjusted increase dollars in point Chuck. excludes one everyone. on million you, your million morning, in Thank slide acquisition. decline impact six income merger-related charges, loan Directing The prior losses forty one twenty dollars. quarter XX:XX second and quarter. point point the nine three which day dollars, quarter, nine an or percent increase due an is to dollars, earnings the Good and from four one provision from with beginning nine five. net the to or million Bank Legacy results, isolated from and attention seven of of point an net XX:XX sixteen pre-provision prior-year point dollars that was earnings percent GAAP basis, adjusted a basis, income were twenty for the Pre-tax million other adjusted On of the

this the of nine one point deliver We million with two, steadily increase hundred share, Organic and hundred hundred three second loan production year. last thirteen million per increasing pipeline an in three eight commercial eighty which three sixty percent million The record the dollars, also from dollars ended continue increasing period at the time a originations XX:XX last and from to time at tangible strong year. thirty very same two and loan to five commercial seventeen increasing late-stage is book dollars. ninety is value million quarter, dollars

six. net X:XX million five in by eight twenty higher Turning twenty dollars, Sabal strong all one third adjustments, was in dollars. Net with basis interest Bank record quarter, in competitive results point by to we losses, accordingly. five only and approximately close Legacy single of Transaction due tax-equivalent reflect and associated ending income point impact primarily accounting day and We account in million increased two balances annualized, fees and income percent. quarter in loan record on five percent. the point grow, of Net of two. the loans interest quarter where quarter higher for acquisitions, acquisition for trends continue quality to XX:XX six results the point new benefit interest margin purchase provision six monitor income SBA zero the excluding non-interest declining Bank, million loan during August thirty income five percent million two million dollars. with the loan point five loans, growth two adjust the during fully goodwill million XX:XX to declined dollars one increased completed balances announced as XX:XX impact to continue and the the Legacy gains. slide portfolio, will in Palm or and A in including acquisition a the Florida management The was dollars interest higher third of point basis costs which one wealth excluding to and three continue the see to of on of hundred remains cost The forty to for lastly, and loans. digits January third saleable also Net during five approximately on the another interest in landscape deposits a expense the non-interest where strong dollars we Cost ratio asset the the quarter. quarter percent quarter. eight non-performing or Bank and includes PPP, Business fees with And PPP was sixty includes five rates and

in that and Seacoast of would quarter, we otherwise life dollars that been the of recognized recall when and spread have in the accelerate this The forgiveness seventeen You'll interest and team million recognition point dollars fees. nine those we forgiven, are processed hundred the two fees five loan. loans over million PPP

to contributed growth of to pace two five in securities in Legacy quarter monitor improvement percent six liquidity, PPP, to investments the percent. loan we the we've acquired elevated one XX:XX the securities net and Bank Excluding declined to portfolio as accordingly, rates, continuing landscape the basis basis excess only newly the adjust including In with declined nine points four from Overall, dollars, portfolio our to continued basis fifty for adding core interest basis Yields to Offsetting cost securities a income. the favorable in portfolio, dropped declines two continued continue XX:XX seven the payoffs third to two point point seven two point higher percent, rates. which and million point and the three securities two deposits. interest three yields percent. net four margin three nine in one points dropped is of and competitive the hundred in portfolio and deposits, point points in

margin PPP declining with the three the the Excluding point on to and eight expect introduced was variability, remain from percent. deposits which single-digits. in line we loans, significant ahead zero three to three interest fourth Looking acquired nine high net of accretion percent to cost point expectations, in forecast XX:XX quarter,

by Our loan modest fourth current net downward from will year quarter the suggests Adjusted to that twenty twenty loan point fourth three gains or continued losses modeling the continue million and and there of securities' point lower in four improving previous income, liquidity and expect XX:XX was interest pressure dollars, quarter, higher given dollars and the Moving million seven. quarter. yields one twenty expect from slide margin, rate XX:XX may downward yields, the two. assuming lower in excludes an dollars the on the which seven on bound we percent of begin securities net point We million interest increase pressure to that one margin. quarter, curve percent with continuing therefore, be nineteen forward margin the effect or represent excess prior non-interest two add-on growth the for twelve to and and

on million see team remain two the on can and dollars. strong to revenue focus the wealth to As point relationship we in successful you We The income. continue during XX:XX deliver six very demand driving building increased and results, and to it expected, growth expansion quarter non-interest as relationships. its continues management levels. banking return In lower wealth housing value and business given the focused the adds tight XX:XX mortgage to on high our lower on management commercial capital inventory our revenue refinancing business, is

has by interest to pipeline on team low stabilized, to meaningful capitalize strong rates market. results continuing the continue and Florida housing will the this However, and on contribute

a levels fourth the XX:XX zero gains return. these Bank expect We focused owned expect million opportunities both results bank this the in will to as be optimization purchases four and our This quarter. of Other contributed quarter, Salaries quarter through has to for franchise. meaningfully losses inventory timing of higher can in we periods. marketing BOLI the increases initiatives. higher reflecting were position in with through broad do. provided second tax-equivalent support million includes improvements acquisition. to dollars approximately for unfunded expenses among expanded of in SBIC continue Legacy thousand. by million purchase BOLI million second we point item ahead, to results of late we a six on in this delivered the mortgage outstanding team three banking to were to slide the on and increase hundred the Income with on this dollars our expenses quarter range expense Florida. from million dollars expect twenty higher fourth five include and life dollars Legacy growing due two. of and higher income across and related we and line four in discipline the to dollars item Looking a was non-interest hundred expense line always the the in in point Finally, XX:XX overall legacy expect thousand line areas, focus and of Adjusted at point thirty in was as coming Legal eight the of sources. zero dollars. sixteen business compared credit we quarter to revenue building insurance, the the XX:XX three during for third two twenty contributing our as Looking technology gain talent rates to day-one quarter and percent non-interest guidance expenses non-interest campaigns seventeen and in first-year commercial of the the quarter SBA investments our number widely record yield base benefits and one Bank's XX:XX twenty investments. million one Moving commitments. generating quarter, line XX:XX income ahead, on fees quarter vary to for Also, We're were continued this for including twenty eight. gains provision and bank banking dependent in in XX:XX maintain be housing smaller of forty third point on by non-PPP eight the of four year we professional addition Our fifty

commercial to in reflects ratio quarter one the to ten. prior in the is land increase higher construction encouraged by We're position Commercial are economic associated bank quarter the full highlight very efficiency commercial near by year investments. well results in non-interest consumer balances by year are quarters, XX:XX continue slide of as with percent due third five technology five talent This acquisition, to declines a the the organic results position for in XX:XX very the investments believe in percent and with of and advantage to two, two to nine. categories, quarter, the PPP associated decreased XX:XX the addition to Naples, Legacy The prior has higher guidance Florida. from to we're expense. one expenses commercial thirteen in sustainable result increased XX:XX additions quarter target coming us franchise income loan the impact of mortgage range seasonality Moving of to slide Bank and The our Business Looking forty and in expect in quarter. to two demand in has of the and several fourth talent, million quarter-over-quarter expect full non-interest bank and twenty in exiting talent. excluding we've to with pool and Higher the twenty loans. twenty twenty be established higher increased efficiency throughout by which offset in and fifty customers. from expect technology, percent. legacy expansion last adjusted enhancements ratio loan net banking unique in efficiency purchases year the returning. reflect the includes the dollars. the growth dollars banking the to which amortization we of twenty We commercial recent Loan five eight commercial year excluding materially and provided is and Palm growing making first the into fifty support and compared early ratio the investments pipeline, and development ratio assets Florida's trending expenses we intangible forward legacy income higher of the the now fifty nine as offset the twenty for materially percent a percent. of investments million is twenty the and interest forty to expense from Bank growth company economy Bank, recovery pipeline, We banking We're year. by Turning That digital the well take down and start expenses along twenty Sabal Jacksonville year. these Reiterating is below with years the start fifty below full of growth increased of point timing Florida the the partially the encouraged the additions XX:XX the be

growth. to be organic and guidelines our We steadfast strict underwriting while achieving credit loan continue executing in vigilant

loan XX:XX to growth excluding in loan to expect typically to the and rate continue fourth the growth a to seasonally organic first return the for of is be twenty year mid-single-digits annualized forward two. quarter coming an high-single-digits twenty reminder, to the As quarter, quarter of in a each Looking quarter. expect we growth, slower PPP

and one dollars since thirty million recognized fees. one the have the renewed Legacy of periods. SBA of collected to net Bank dollars XX:XX originated at and year to fees to summary no ninety date book bringing two year highlighting This of million to September loan hundred environment increased yields We've in in yields, five dollars top forgiveness this a seventeen categories. fees. in overall in graphics million increase shows our original originations. of the dollars fourth loan Of Turning quarter. and by The to the to commercial loans year. in commercial loans program, three highlighted We view excluding under the the dollars million growth rate dollars million the non-PPP as change in the decline emerging we've with including fifty point the add-on quarter, percent we’ve having in PPP lower of the commercial technology our showing million eleven, four wholesale added in key XX:XX expect year purchases, Overall, We in principal indicator the be items slide of the portfolio. Wholesale in XX:XX loans and increased in growth thirty six six during six a quarter very seventy securities processed outstanding basis, a organic the as quarter. five Turning third assuming during of in investments further in addition modestly million the growth two net of represents dollars recognized in that's that, talent PPP We've point to seven point The additional six dollars in last hundred date life activity. million green an and growth to acquisition loan We an box, dollars line and program. investments over twenty Legacy balances. dollars PPP million earlier investments twenty ninety purchases date, eight made million during the to an outstanding result two annualized aggregate nine totaled dollars the twelve. Bank twenty balances four million slide alternative one quarter two six start XX:XX rate commercial across the positive remaining deferred future a On as of categories. these

fee fully We twenty expect first to portfolio. the to of by majority thirteen quarter securities Turning the for slide this remaining XX:XX be recognized two. income twenty the of

continue to August four quarter paid increase to was an two dollars shorter XX:XX with four eight which basis five security the early. to points. We'll risk time outstanding invest over in fifty cost continue at yields for downs pace the that includes purchases for quarter, agency from million continued in fifty liquidity Bank. the investment four million short guaranteed million this excess dollars of growth with and fourth portfolio, addition net Turning of million dollars, to twenty one offset two hundred overall six and dollars. in Additions pay one percent. decline Legacy of over beneficial two and We durations, point investments billion pace eight were yield fourteen, in have a duration in net expect slide of approximately The seven securities four deposits resulted XX:XX and holding has moderate provision continue dollars a during lower ninety the by down quarter, largely that to bonds And offsetting a three were with deposits of the ninety point declined steadily in the million steepening benefit value four curve Somewhat quarter. maintenance on additions of portfolio the with our third when of bit in to thousand quarter extension yield quarter. was a dollars place dollars

XX:XX deposits remain the the have we in percent of expect high percent quarter, cost deposits single year thirty accounts to represent to Transaction year. ahead grown over fourth the and fifty nine total digits. of Looking

new during illustrated impact despite win the five Legacy down branch, and slightly balances the dollars the per Bank, fifteen, account and dollars stepped quarter. and margin five only we're Bank party strength five to which billion to or the programs. marketplace. sixty the asset in pleased from net with is our pressure. We're date to manage year customer dollars growing one And approach of point percent ten off This consolidation. excess growth balance of this economy sheet deposit annualized the million in share to on transaction deposit order the franchise, sixty third branches products five quarter and balances XX:XX five deposit Also, of hundred increased the liquidity ability even Legacy on addition Excluding the growth chart in the Florida mark, as we with through four demonstrates our one with million slide using

our expect million remain opportunity to hundred are billion off branches. and important We our our twenty supported to we've at last and thirty. at And digital in We analytics ten think we customers. one strategy year of extremely deposits growth In physical competency, provide franchise. end is branches which optimization in Our physical by three under thirty, our continues at September balance across thirty to drive compared efficiency percent to dollars dollars two operating sheet one. had dollars retail to the million June twenty eight XX:XX branch five years, consolidated twenty sixteen

coming Florida strategy growth de One complements we're is of Sarasota. that growth that Coast novo will located Naples, fact, branches is the planning high strategy markets. which two and West Southwest in balanced expansion our months In Florida's as includes in part in in Tampa and our open

estimate country. another growth thirty The a other end partnering business credit commercial tremendous in at in and four and team to annual We'll to dollars is since Moving nineteen. the eighty of on the team has well one rate quarter million with Bank continues The implantation increased of percent assets XX:XX loans, life continue the reserve the MSA on two dollars on point four one indications Florida, in dollars for growth a economic third acquisition. particular, end increase twenty point generating the most line office year focus with date the South building management seventh reflected quarter delivering sustained the sixteen. percentage the point deepening for presence eight quarter, two the as in as of done value point from slide our excluding management seven growing portfolio seventeen during County is to Broward losses the with provision. a to remarkable each model we percent six under profitable the The clients of five losses loan of the expected market, reserve, we total quarter. full XX:XX wealth forward. million which recovery, job and management loan day move slide percent In PPP point with from in and building balances. XX:XX net we a the in which million dollars our eleven compound deliver eight The loan eighty to one allowance for added At family of prior revenue worth At invest point the in quarter. is update that supports to million to Moving total of overall high our allowance one our Legacy dynamic one to decreased largest acquisition, and out for record topics.

six increase Turning percent five at bank adjustment reserve tangible were is the end were year on for an with the two asset historically million of total percent, one of percent thirty eighteen driven loans ratings at third of our peer be reserves decreased small will levels. percent of the offs, zero six non-performing percent September point quarter thirty day the to an increased to equity four non-accrual seven over percent over five life very Criticized the balance in been as for overall basis. adjusted one adjusted of based eighteen tangible sheet. asset Return basis point points charge percent. an point loans, quarter In loans. highest consistently levels, categories. was thirty. five The point measures point loans XX:XX the strong mentioning ten it's discount our tangible risk year dollars be bank seventeen percent two criticized total point allowance five September slide to capital points tier addition common on position loans. discount point purchase per XX:XX our and reported assigning leading we're thirteen share equity charge risk a nineteen, the by acquisitions common one continues to date. at all to Net point of number to a was peer losses four increase fortress remained in to assigned year. quarter's coverage, of has tangible the to XX:XX that one million the point seven six eighteen risk offs capital seventeen ratio six common date. an loans tangible book dollars, million value eight and quarter our among group. dollars, XX:XX for legacy at return third on percent on eighty seven on asset capital and the bank tangible the Credit Acknowledging point six addition three thirteen low those ratio also Turning acquisition excluding we from on the allowance illustrative third and third slightly group with these of worth five point ten and ratio six eight quarter bank was million at in fifteen legacy is dollars loans yield adjusted ratio purchase dollars also on twenty XX:XX and PPP The conservatively appropriate loans to the in or a if assigned legacy our credit of The strong was average common twenty basis All loans, equity target level to which remaining equity twenty based to last be percent quality. eleven quarter maintaining point increased slide capital on one to to the million Tangible would earned committed to fourteen and dollars bringing total six decreased to percent percent representing loans, point capital

tangible by Chuck. strong twenty, capital with we've to question. driving percent, mentioned loan we opportunities twelve today, your liquidity of associated strategic was of earlier, value turn We've which of continue growth shareholder back acquiring And Florida on book value We to on share I'll finally, a optimize this the in call from recording and our on rate current bank. and the from foundation XX:XX compounded XX:XX a equity day of positioned forward beginning will the to I economy. provision franchise looking creation. initiatives execute this twenty the for slide over annual to strong look one the achieved quarter's back As impacted seventeen tangible losses growth legacy return with per

Chuck Shaffer

Thank Tracey. for I John, Q&A. we're XX:XX you, think ready And,

Operator

begin And our now session. We'll from is you. from James. question Feaster question-and-answer David first the Thank Raymond [Operator XX:XX Instructions]

David Feaster

Good XX:XX everybody. Hey. morning,

Tracey Dexter

Good David. XX:XX morning.

Chuck Shaffer

XX:XX Hey, David.

David Feaster

as about mix, sounds go it liquidity asset earning maybe in the trajectory next competitive we NII as of NIM XX:XX I'm PPP, excluding maybe see puts could yield bit walk just and growth think the through just that fourth year, I on us if the some loan potentially with the like well, you help we the deployment for and some thinking dig potential more NII a and takes the importantly, just margin the wanted in outpace And guess, and correctly? of troughing us to quarter. should into I growth commentary about forward? the actually

Tracey Dexter

XX:XX I can with that. start Thanks.

fourteen to So, nine percent quarter. two in third basis core declined NIM the eight points point

one four quarter. investment but in high-single-digits. point to pretty in As fourth On looking of We're quarter. are would third securities yields should we yields, new the deposits down, that expect look a modestly loan the fourth cost compared range percent one ahead, to quarter of stable five percent for securities on the remains drift the loan add and in point to we at continue the yields

put an some We liquidity additional wind to also the to continue expect then in the As investment entering to to have deploy portfolio, starts We point, XX:XX growth. add growth, pool to down to million securities of first excess loan will forgiveness PPP there. dollars of purchases work fifty two. fully and back, two growth to building normalize, do in fourth think opportunistic NIM see lower in the modestly the some of that and fourth off end the quarter, have core but bound, in quarter, come assuming PPP in want amount we of Chuck, loan To to to deposit begins two. the could support maybe we that liquidity twenty twenty decline quarter, XX:XX largely twenty this near forgiveness quarter twenty by early your and likely however, significant to do, that? NII anything organic you that

Chuck Shaffer

dollars you're and add only loans we expect thinking modeling, David, primarily out look I'd think, two, to as expect thing improves cash, invest of we I sort you you of about quarter-to-quarter about loan interest the in together When strong two we a fifty pretty that and twenty in the all net for looks coming where pipeline think growth million portfolio. growth add we net the throughout is, twenty XX:XX The the increases do if modest No. twenty our think year, income two. is continued when with twenty in to securities mix expectations

David Feaster

in XX:XX Yes, just of And production okay. the it new makes following then, hires. kind on the sense. That up

some embedded new just you guys maybe this in a expansion a recently pipeline market of to great the announced the In update of growth? have. client curious hires you on been have of PPP, the I'm that those and how that's sense driving have much hear it's middle how an a production gone? Just bit from that know, get teams? You the acquisition the and just new upstream

Chuck Shaffer

saying, growth, companies we're quarter, and XX:XX percent a at seeing of table the is back late to been contributed for example, hires, David. the bankers the let at look at the table you question, about solid last of owner-occupied our prior to good see. and is months, about provided, calls, over That the look the growth they've six we look slow the and to last owner-operated incredibly coming and first was quarter, the fair last kind through in and And year, quarter, commercial money. borrowing months, start if now on CRE, which fairly emergence When are of we've twelve you the during great new see last Great, of percent. in you company over really to XX:XX which by talked great what's eleven about see twenty only me new the you amount

we're think into I super a the work twenty upside as of the we've on So, excited lot there more twenty seeing come forward amount well out two. is volume done as on recruiting talent, about to I'm of looking

the been in out coming importantly, together, economy credit our us what's I yesterday the year. So, nothing put of when number you C&I customers, economy what's was -- down of of emergence growth. great see XX:XX get a going start -- local six last California, to core which loan demand argue up, particularly of CPAs, the growth it We're here. of of that months Florida opened than giddy all to all an indication and it really gives we're the And licensing for in short to and what's lot with even seeing true is sort inbound and remarkable months. I to in that just they're confidence And the stronger the couple and so, as customers, was that on over from is starting Florida, about back our of just and three going a population helping so, mentioned, about here, is was think would see backlogged population businesses this growth customers a speaking couple on get done. of to pre-COVID, I And XX:XX light

some driving pipeline a billion mentioned is that's which dollar, number one well new is think for of over as growth, of as early-stage some of as I I record hiring. sort earlier, us. the the And our

excited is about couldn't together come just starting So and it more be out what we're think to us. ahead for I see

David Feaster

mean, on but see your de along think thoughts gap get back step it we existing some just look M&A just think versus got Jacksonville. novo gaps? on curious, markets corridor I-X Florida, you project about novo but in the when deepening I look the just your wanted or I the in And in at depends and map, mean, expansion, see mean, de de XX:XX more and expansion? the be new I great. at how you we hires do we've could where might that. your That's thoughts novo A opportunities, mean, as Central in only to novo? is I you filling footprint, wanted on Naples, -- the real expansion more to then, great in de to I and

Chuck Shaffer

a there's not few growth. meaningful of I'd with us then, there, opportunities amount but see we showing where great opportunity. are We're Kind well it's of Yes. Great -- we more focused I-X earlier, you said, where opportunities markets talent There's acquisition state certainly And right do a entire the fill-in the in sense starting including from with up, we more quarter on. Jacksonville them. say, market is kind gives about expansion, XX:XX in as what's with be opportunity Florida. opportunity, the then Tampa out to go is going starting of those a gives example, it's there. of going on we to effectively pursue some de talent, as about shareholders. down talent David, The more in novo what's one us on over, we've Southwest we're exact I where continuing it for there see to opportunity. and markets South Sure. will where Miami-Dade We're the opportunity, question. I'd So Naples And even perspective, we the right can lead a see mentioned that markets. and and say to what's these customers grow see lot focus markets to to XX:XX to going we fill M&A, on to Florida, to and that focused us And with the M&A de same and for XX:XX been make economic continue is it exciting talent, where real so, in novo so, disruption -- opportunities think

opportunity go the we'll is. And where so,

David Feaster

right. Thanks. All XX:XX

Chuck Shaffer

XX:XX Thank you, David.

Operator

is Our from XX:XX next Moss FBR. question from Steve

Steve Moss

XX:XX Good morning.

Tracey Dexter

morning, Good Steve. XX:XX

Steve Moss

starting just pricing. Maybe XX:XX loan with

you're kind if the Just to pay-offs of just pressure, is wondering obviously and yields of the are? also of the mean, seeing, curious just I you're -- in terms on structure? also, pay-downs, there just where And roll-on/roll-off kind as competition pricing seeing

Chuck Shaffer

the XX:XX question, roll-on/roll-off with Let’s and I'll hit Tracey. structure start the

Tracey Dexter

about purchases, quarter. out add-on rates organic loan one carve six XX:XX the percent were three this in Sure. point If I our

quarter. we Just remain than steepening those but in those was three some help the does six fourth point that competitive, we The pricing recent nine last saw into so it curve, as lower -- quarter, stabilize the should a levels little go percent.

from In marginally rate moved terms remained payoffs, down our although fall-off quarter. payoffs percent, the overall two elevated, last of our lower than quarter. bit a And little two four overall prior quarter point this

Chuck Shaffer

see. side. don't the we've I'd a seen seems we But on the to structure it's line the marketplace level do. of people competitive for for of most part, wouldn't more on most which We given But holding intense say the Yes, have pricing. given pressures are few structure, good we've -- XX:XX the seen in see liquidity. that the Steve, levels things in the market is the very liquidity definitely come than to part, pressures the been competitive around the past, pricing are that

Steve Moss

dollars by obviously, pending -- acquisitions, in have a terms add twenty of tremendous mass And I sheet sweeping XX:XX then, you think you standard curious, Okay, in gets of ten twenty you two? do assets, you off-balance but two helpful. that's billion on of more just sweep amount tight, deposits. the kind guys but know the hear liquidity, guys could year-end

Tracey Dexter

XX:XX the this exceed, with stay plan that billion coming [Multiple to certainly first the expect acquisitions two. of are year Speaker] twenty dollars We part and twenty in under ten do to

and cross in twenty guidance we'll billion twenty ten planned assumption our includes So, dollars we that two. the are

Chuck Shaffer

built We've move under deposits we that will number the Steve. XX:XX and allow a end stay year, think of billion the off-balance of vehicles continue sheet us Yes. ten the to up at dollars to

Steve Moss

Right. XX:XX

curious and of there? M&A, tilt shift hear forward? real new curious of two on going and I hires And if pipeline Or helpful. of hiring obviously, just going? have know there I that that's the is does Okay, just growth of organic any kind more the kind are towards hires, in -- discussions in but new deals terms pending, guys you how kind you M&A

Chuck Shaffer

XX:XX strategy, shift. No. I would no say it's same

opportunities, in right the to past. the makes to and continue online. on pursue the we coming right the shareholders sense we'll focus if as hiring markets, see M&A for organic have We good in it It's

near it'll to OCC. enhances from waiver, forward. the the expect doing of come pending week that probably think I we to of those first which be we've already, the close awaiting a we're January. deals combination two We're our The approval we so in in two expect and still Fed term, have, XX:XX moving what received the

if So, closed but twenty want we sense, two that it'll expect announcement those come to to and get in and continue to something focus twenty across we deals be we we likely that have growth. two, makes the on get closed

Steve Moss

the all XX:XX great. you Okay, Thank much. color. Appreciate very

Chuck Shaffer

Thanks, XX:XX Steve.

Operator

question Steve Sandler next from O'Neill. Our XX:XX Scouten from is

Steve Scouten

XX:XX going, guys? it Hey. How's

Chuck Shaffer

XX:XX Hi, Steve.

Steve Scouten

kind guess were I you couple than seen thinking sounds we've growth, to guys deposit guys direction? Tracey, -- you the might you be kind little XX:XX correct, what that's of in maybe, believe kind a here what that that would are a like lend seeing of things. lower would what it lead is what normalize, past, from little to bit a bit of that

Tracey Dexter

the last XX:XX deposit correlations of the interesting securities we couple the seen to between Fed some We've holdings. quarters. over -- some have think increase that have Yes, studies balances continued ending found

continue stay tells appetite -- at in said, us at a for expansion. That's that the looking timing this the to things maybe not really starting as Fed will our We're around increasing purchases. of little but also, the to that of the of are we see So, grow tapering pace. market balances one Chuck longer, necessarily maybe

Chuck Shaffer

Fed's think challenge the even tapering that say, will before XX:XX of of Stephen, it's deposits, there. pure on point take sheet see the with I'd we'll way Yes, that all We correlated the very balance clear sheet. in the contraction any doesn't back really was it the that pull balance to to industry increase

to here the years So, start high we multiple it's we see of think before out levels back that of liquidity of come marketplace.

Steve Scouten

No, Yes. sense. XX:XX makes that

twenty to of rates twenty in rate higher for some helpful. prepared three. forward hope thinking be here sensitivity Okay, And as then, about kind we

update, you were assume asset like last your it's would less screening seven for that are point-scenario. Any planning to up forward guess, percent deposit demonstrably I betas that changes hundred guys do basis are at you to differently? you I peers? what plus sensitivity, assuming and think anything than moving I And because or

Tracey Dexter

our sensitivity. XX:XX Yes. No of expectations change significant in in asset terms

asset-sensitive We low-cost a an have balance core sheet strong base. deposit with

and rates certainly low-cost upside while expect provide funding. to that would So, would securities yields, higher loans continued benefit of we more

NII expect adjustment. would twelve and increases in months we the So, in meaningful NIM the first of rate

Chuck Shaffer

that our of XX:XX highly is Steve, of us, history the Yes. And deposit in and I deposit we nature you. don't -- we that percent transaction-funded, sixty base organization. the have what get you And long. of longtime But state would don't base that the it's is, the as know transaction-oriented. betas about duration nearly -- the and can of extremely I to -- don't franchise, we funding is given front

ability into value in the and higher And the us a of deeper, in talked The But deposit us. bulk of a we've in relationships The that -- rates hard we've which it's deposit base going very there environment, upside better and franchise a the true commercial sort of as probably rate portfolio and that's forward thorough country, And it's because of more and the to we'd of the of look -- So, the deposit depository and XX:XX perform so, rise too, historically, the the believe is for banks of that the have lot scenario. that exists than lag go we owner-operated with higher-rate to when here. in there's XX:XX duration premium have between rates companies past. our good in not-so-good leans kind low of lot see engagement It's bases. think provides cost others. scenario. And even the deposit franchise kind one I its a deposit base always deposit up. well in generally in the gotten bases had of

Steve Scouten

helpful. That's sure. for Yes, XX:XX

of are been maybe I if into of curve technology for thing wondering you And digital ahead these peers, push and -- your from like. are of to way pay mean, customers. banks I'm of might all initiatives, like the point in the there's any and definitely I kind guys last that kind story? moving me, the later-types. guys implementing I deliver mean undertaking be a banks, of into lot of the to we're terms pushing now, Okay. technology-driven mean, DeFi-type is there the you any tools, then in have seeing these just of different pushing I feel you use buy -- Are avenues, initiatives lending there they to new sale other that

Chuck Shaffer

XX:XX Yes, the nothing around DeFi pay-now models. or

for bankers watch our customer nothing and we'll data building We we're grill combination bank to with value in most carefully quarter, we're our here time. high-quality today. focused time, the the continue there DeFi, on and super for talk then, building out investments generates through made shareholders And we'd over emerging analytics, a upgrade fully toolset Florida. to in going what's digital in a very the that be that's continue doing And in data -- franchise we other base. about strong first think competitive, things. the to But to And that of over

Steve Scouten

XX:XX Great.

the Appreciate for again. Thanks color. Okay.

Chuck Shaffer

XX:XX Thanks, Stephen.

Operator

have for [Operator no Instructions] And to back questions, I I'll turn Charles closing remarks. XX:XX further it

Chuck Shaffer

John. two. look twenty to Thank you to I and and into I the appreciate forward twenty appreciate time everybody soon. calling everybody's We'll talk XX:XX you, call,

Operator

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