USCB Financial (USCB) 27 Jan 232022 Q4 Earnings call transcript

Good morning, and welcome to the USCB Financial Holdings Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Luis de la Aguilera, President and Chief Executive Officer. Please go ahead.

Good morning, and thank you for joining us for our fourth quarter 2022 earnings call. Today, I will review our Q4 highlights, along with our CFO, Rob Anderson; and Chief Credit Officer, Ben Pazos, providing an overview of the bank's performance, the highlights of which you can see on Slide 3.

quarter year Financial our posting and Holdings results the full XX, on consistent deposit first annualized in USCB double-digit interest XXXX, ended fourth year-over-year. growth our as performance annualized margins IPO since July solid growth net Completing -- robust expanded loan and the year XX, increase million or XX.X% Total assets of as $XXX.X billion December XX, from of December XXXX. were $X.X XXXX, representing an increase

nonperforming. Capital of with and Asset Average as billion XX.X% quality XXXX. bank deposits XX, no to and us with positioning $X.X trend fourth a sound year of deposits total or The safe compared the liquidity continued loans and increased XXXX. well sound stable growth. closed continued by strong, the December million quarter as at remains classified for future $XXX.X

comprised a relationships, core As fully To demand optimize focus centered on our at growing premium balances bank, of business develop point, deposits. is and to year-end. commercial XX.X% always this total a deposits placing banked deposit

In have have senior South associations. hired growth businesses joined new X strategies, roots year. team and producers the market homeowners continued following. strong deep focus a primary are we of us professionals, This in experienced that have proven bankers deposit [indiscernible] new of The and support the in new our owner-operated

confident that plans. loan our growth are We deposit they will to be and accretive

is XXXX through and lending. $XXX.X and increased in our loans, various the with concentration. and XXXX a in prudent strongest new being and diversity portfolio disciplined XX.X% we the on XXXX. deposits Homeowners business business million with opportunities Association verticals SBA, maintain potential or developed, bank's as we PPP of quarter as lending, Nonetheless, class by since the focus well repayment, loan asset Global sourcing quality, approach diversification Banking a $XXX originations. have excluding million loan annualized loans, yacht including generated in average saw recapitalization the Total loan fourth year Increased to production compared

the In Pazos be most Our economy, is Under will Pazos, submarket growth for eye portion us Credit monitoring key and the supervision and with monitoring significant metrics. shortly debt department of granularity, watchful is concentrations trends and the will real the largely weighted by estate CRE loan the maintains loan-to-values covering of low a ratios commercial Ben be lending type, driven market Chief Florida we likely a risk real effect, our updating portfolio, diversified. closely the of banks. quality, Mr. on well loan where performance, service management, Officer, denominated bank's evolution by credit coverage loan loan size. credit our composition our South and portfolio loan will and proactively CRE averages, average regarding leverage estate of note high

which update $X.X or a The per will $X.X bank's $X.XX an be will net available-for-sale was share executed an as the in from higher-yielding in bank period quarter fourth The $X.XX assets, $X.XX more income was same share per or per XXXX, $X.XX for detail. million or overall the performance million diluted effectively operating in XXXX. resulted Anderson $XX EPS. greater million in compared $X.XX estimated share. as Non-GAAP the this securities $X.X strategy million bank generating the of XXXX review its income QX to for or repositioning diluted diluted net sale of Proceeds well for in lower-yielding million in $X.X sale CFO, loss EPS. of reinvested approximately after-tax additional strategy

efficiency for ROA ROAA As By XXXX. ratio the was ROAE X.XX% efficiency quarter XXXX. for of for of ROAE compared contrast, an to quarter the of we QX non-GAAP operating closed compared our quarter with Non-GAAP X.XX% an fourth overview ratio fourth X.XX%. the was profitability continue of X.XX% The our note of XX.XX% XX.XX% compared we was an bank's and to was the XX.XX% quarter XX.XX%. to XXXX. Non-GAAP XX.XX% fourth operating of highlights,

X income $XX comment X X to graphically and loans, total by deposits fully compared million the Bank, bank NIM Slide and to $XX.X key KPIs, net XXXX. was details U.S. on these of since directional will total Again, I and we showing view assets, QX namely X.XX% its made interest in stockholders' million equity. appreciate of trajectory best the performance was indicators performance significant strides total trends. recapitalization. briefly X.XX% Century the

or bank's our When XX, securities at Board, $XXX December compared comparing of December XX, The of leadership loans at unrealized million from includes or XX.X%. total of XXXX. or of a million million in losses XX, the was of experience XXXX of and progress $XXX and management staff capacity stockholders' assets equity $X.X of $XXX we market. indicative increases equity years million XX.X% or these the representing deposits million securities of of XXXX, $XX.X XX.X% And of response and the December positive local year-over-year million decrease over team, XXXX, $XX.X our is total XXXX. double-digit $XXX.X Total XX, December and to XX.X%, million at our commitment Stockholders' the see XXXX, unrealized loss the of total

personalized on listed condominium are banking and the X, Jurist Florida include are that Association supporting an business the X small- law deposit our we're worth sell developing and expansive SBA Central lending strong yachting guaranteed Caribbean program, concierge X(a) medium-sized business focused XXXX, generator. lines net of a deposit growing and and U.S. to fee supporting newest important niche banking loan to firms, a select portion, SBA lines government high deposit-rich foreign small- businesses, lending contributor objectives. our developing strategy aggregation fee On the diversified relationships America, Advantage service, banking business to correspondent Global Slide the having Our opportunity developing in medium-sized a Basin offering Banking, the focus And market. primarily to the lending, vertical, markets one in offering the launched yacht strong on potential. clients January premier in in

relationships clients offers vertical business sales Each develop. and multiple opportunities onboarded are as

the at reside has as commence recoursed, or the yacht cost of reflects to be these XXX%, Average is average X.Xx. can excellent totals the the number or XX%. which notes, $XXX net score portfolio nature The a an line which This opportunity represents business total portfolio to and is auto debt with South million debit. XXXx. this deposits X% owners following in points The and in service and business in $XXX $X.X having been loans and generated according monthly portfolio, vertical are already collectively, in this $XXX seen second the have the million. The FICO new liquidity size debt of underwriting. average generated high-quality, yacht loan million data average portfolio large consumer. the average maintain a a worth of homes The is business in underscores new relationship to on short-duration an All of current of liquidity and XX million fee conservative loan to average financing these XXX is high modeled vertical, has the business additional Florida also graphic, coverage C&I state. to Notwithstanding over is business loans, yacht mostly lines Presently, is As of plan. loans prospects. exciting

over things Rob. I to said, that will With turn

Thank looking U.S. our by quarter. another many statements Lou, Century good had everyone. Okay. at In Bank morning, financial great you, and and measures,

on Let highlight the pages me of few items details. getting couple before a next into specific

in nominal $X.X which which $X.X of billion assets in after-tax sale quarter quarter. quarter for billion, lower-yielding and executed loss securities for $XX is $X.X were up or up from quarter. billion, AOCI, to million will this value from such First, a balances we accumulated At the of sale the on end, portfolio years. our securities have share. additional sale through slide. this In share be we are of XXXX. million were tangible had assets, capital from our the on restructuring expect $XXX securities million X was loss $X.XX the an strategy, at impact an of slightly million the the in prior deposits securities, Loan into $XX total Proceeds $X.XX in $XX I resulted we million $X.X over expected prior will back Also, a capital other an reinvested earn highlight a or the and income, previously capital short, reflected a on as loss book on of comprehensive higher-yielding generating

of Like low very put books these period most interest banks securities today, the in the rates. on pandemic during were industry the

negative have rates securities the have now interest fast mark-to-market treatment. a mark due rise, these taken As sharp accounting and to a

from QX. now $XXX has interest the moved down, our of million, the While total $XXX curve in million up midpoint equity is rate

$XX.X includes equity portfolio footnoted the losses on million the AOCI. unrealized in slide, on in securities $XXX the in Although million

in quarter third the losses. unrealized million purposes, comparison For $XX.X had

PPP on exhausted the at -- With at operating million Moving or let's an growth and reconciliation Net with the with the increased interest income performance noninterest for a the share GAAP flat the fee income share. with growth just that, for $X.XX On quarter million to P&L. $X.X in the of operating expense quarter. a $X.XX on to I But mentioned. look income negative the basis, are we expenses our from portfolio prior loan from We due to non-GAAP was or is nearly made and a income $XXX,XXX indicators. booked restructuring quarter, the $XX GAAP net of provision slightly presentation. in quarter were our and the or $X.X a take basis, non-GAAP back million

and discuss our remain soundness, X.XX%, in of credit strong. remained reserve terms metrics detail. will our credit Ben Loan In at book loss more

return profitability, and terms on XX.XX%. was quarter average assets return In for was X.XX% equity average of on operating operating the our

the income, down impact prior BBB of are to points was the the we but Our X NIM excluded from fee X.XX%, you basis flat if quarter quarter-over-quarter.

per slightly $X.XX would our was is the up Absent securities negative on efficiency $X.XX of portfolio mark, which value share our share book reflective per share tangible and book been operating have share, moved value this mark per per AOCI. of XX.XX%, $XX.XX. The in tangible our to

our With and that, loan to let speak me yields. Lou turn back about book to loan

They pandemic. hit and of strong. you, client the X an their production in XXXX team. programs was lenders base the were delivered Their challenges XXXX, from that The representing Clearly, year. results. them. increase incorporated joined XXXX December matured total after $X.X $XXX.X production Again, loans December early strong, previous the HOA, seamlessly Thank yacht their team at and through 'XX of and XX, The Rob. was or lending in production followed grew million the billion with XX.X% of the SBA stride loan

their continue new business. opportunities. is well acquisition bank earns alternative The influential rising will XXXX, customers to they compared playing raised The in XX.X% bank's introduced in loans, successful clients our favor and PPP IPO year. be quarter XXXX. The rate increased million business to recent loans, XX% Average seek and are to These disruption the fourth profile of local relationship I the compared community $XXX.X our by seen. new in market a benefits as excluding play factors annualized and prior $XX.X launch and clearly us quarter or dynamics believe and million and or the banking the for caused increased USCB production of in

XX coupons premium quarter points XX rate basis of of the compared yield off of subsequently points interest and fees points XXXX, in primarily XXXX. paid prior XXXX higher increased purchased compared loans quarter due to in quarter to decreased compared to and increased to GAAP environment. fourth XX Loan the XXXX amortization basis on due fourth Loan to the basis

in was there of decrease PPP a Additionally, loan fees. $XXX,XXX

quarter. Throughout translates rates The amortization above basis slowed. higher an payoffs and effects quarters the their loan new of combined average production, beat XX payoffs coupon originations loan to points the for average in fourth as consecutive the lenders $XXX our in million and year, portfolio fewer goals increased with

delivering Our XXXX, XX% all volume. Business Banking division loan led of production in

new opportunities into the approach prudent year, new quality, focus deposit continue on Going with and in diversity. repayment, loan a we a sourcing potential

million $XX between already term, active of very million approved mid- anticipate anticipated In in to with of January with loan to pipeline remains robust Going into medium the $XX the the XXXX, QX process scheduled fundings committed XXXX. closing and growth high teens. February in we close over the

as of X first a As new the real total a we loans year, XX% commercial diversity the from estate, opportunities SBA, of away know are of new loans. Again, approved have non-CRE yacht we review new X(a), equipment non-CRE to for the the our verticals HOA, the and funding pipeline new focused delivering consisting diversify growing results our months lending teams C&I product production are line. on

of manage the loan and our ongoing with we production risk analysis I balance mentioned discipline earlier through and how deposit portfolios.

closely and risks department submarkets maintains identify analyzes opportunities. a to trends, various concentrations our credit tracks methodology and both Our that monitors proactively

our Chief Ben With mix will Pazos, Officer, Credit that said, review portfolio and our quality. asset loan

a Bank. and Thank to good good very Luis, for you, XXXX was year morning everyone. U.S. Century

loan billion. Our $X.X to book grew

South Accordingly, XX% and is Beach Florida is Broward Miami business of market. loan CRE Bay, market, our real denominated and portfolio this comprised owner by is estate, occupied. Palm both and is nonowner primary a occupied our

side our portfolio. lower some CRE of the Page gives metrics right-hand on you on table The XX

debt As below you To our loan these margin and XXXx, to from of can conservative XX% ratios beyond coverage None add on well conservatively see, are well. service are XX%, range average policy. to amounts none average average. that, loan-to-values XX% as them own of above

manageable in a are Finally, that average loan level the segments all very comprise pool. CRE sizes

XX. Page Moving to

losses in at same as in quality The a [indiscernible]. percentage finally, numbers loans X. to due classified with We way, of our percentage asset our and regulatory of in be XXXX And our loans $X.XX a allowance another XXXX to growth as absolute loan total stayed closed of nonperformance. quarter in loans And our growing for relevant with the continues see in minimal year capital. of was as can You every quarter portfolio. classified loans, total our book metrics

Now talk XX, Rob portfolio. our about on Page deposit will

modestly tax Deposits annualized increased Ben. decreased increased our compared through XX.X% and due million grow $XX.X XXXX. $XXX.X XXXX. raising Average of to to rates compared or you, million and prior the property quarter. or quarter X.X% quarter or Thank deposits continue Average Okay. seasonal deposits to $XX.X to compared slightly the despite to million X.X% fourth prior payments quarter quarter fourth to compared of the DDA

deposits. The total DDA balances comprised of XX.X%

higher our are on Fed taken depending XXXX, enter we and deposit competitors. we a As by actions expecting beta, the the

promotional market are rates money requests accounts. from CDs and match seeing to competitors' more We clients on

figures that As but our beta entire the some, purposes, cycle. mentioned we deposit entire modeling for at believe close be total cycle. may to hike this in the rate previous throughout to Quarterly rate throughout calls, XX% we will XX% look should vary beta

this range good While have this we for and modeling purposes. are far, to so is outperform hopeful we number

up Bank value Another demonstrating the make DDA the value that we while enterprise enterprise that even up U.S. our bank value on slide are rising moving many DDA accounts clients. is to deposit franchise. deposit Overall, for total our nature point rates granular primary this overall to the tremendously. of of is of With of our with our so the much, base accounts gone in have deposits XX.X% brings the in the base Century relationship-oriented, sticky and is are rates.

other and out the valuation. mix In a our and listening into balance That deposits when Bank, is have comes that accounts not their competitors calls is sheet it quarter, and Century altogether. this conference seen differentiating at or institution shift off DDA come products some of to case U.S. believe factor to here we have their interest-bearing

our margin prior remove impacted this flat Net was the slightly all fee. in net our how of PPP margin. the increased to X.XX% of you quarter, and interest quarter impact see when let's So interest the income

deposit While between the our improvement our we earning the the spread left-hand asset of in chart beginning compress, and on mix demonstrated seeing the loan page. are side is lower by yield to an

an rolling to With in as NIM. to funds through into We off opportunity we'll assets. $XX million XXXX of XXXX, flows these improvement expect we further help portfolio securities cash higher-yielding improve our progress reinvest our have

and only to The movements remaining. look fees expect impacted we may were the PPP With sheet for further our of in what that, fees and the interest numbers coming how our let's balance how unrealized have PPP $XX,XXX quarter, quarters. take $XX,XXX a at rate and sensitive loans is you

will comes and become forward. As this numbers program slide end immaterial, an the to we this drop going

the to next on page. Moving

an curve income remain already time. for curve the and experienced some an due We XXXX higher we inverted as improvement hit enter have We the inverted for in point an with have to believe interest yield net our expectations to we NIM and rates. inflection

position is X, moves year liability-sensitive loans we Our slight but in into repricing. for have asset-sensitive our where X as slightly a reprice balance year sheet deposits more

static rate. these Again, are loaded a parallel done a are and sheet on balance in with assumptions represent models shift

much are our assumptions as demonstrated rate modeling living beta. different have our deposit -- our a actual outperformed we in environment, lower-than-expected While by results by a

run, expect inverted. long faster, the be curve yield model interest our we Over actual income net to as beginning aligned. This deposits the remains more reprice and are closely to

is CMT fixed the remaining indexed to rate while the of XX% in is The rate, nature. XX% LIBOR. prime, loan variable portfolio loans and rate variable are

loans The variable putting nearly repricing, reduced and sheet was loan the is our XX% worth rate every noting books new during within but are on X.XX%, loan of coupon the production terms X% bank drop. our priced rate we will rates balance for year. at reprice will above. sensitivity when Also the that QX or the of we loan average is hybrid duration increased following in weighted In the protect today which XXXX, and asset

have months, And In coupon increases. repricing next of our according to the future we X with rate average million X.X% could above with weighted reprice a of modeling, X.X%. these $XXX loans loans

to X-month the than increases. now rate with these tied that prime the note $XXX to loans benefit XX% are While is only expected, LIBOR seem million will of and continued hence, may already rates. and experienced it of higher reprice higher of These coupons important have loans

gradually continue loan investment stable the flows higher XXXX. over term much As our remain yield would yield. new near as cash to it we our shrink securities I into relates expect of we at the to portfolio portfolio production portfolio securities expect to portfolio, to our deploy

the be XX yield which period DDA in compress time, on extent Overall, quarter, curve could slow of NIM costs, of an deposit XX to the beginning expect and basis disciplined in we depend remain ability our an to extended as our our This inverted largely balances will we points. for first price. walk our maintain to live with loan

on that, with noninterest move So income. to let's

The a and of share loss of basis. which a million highlight here $XX $X a on strategy, portfolio sale million is an resulted after-tax on $X.XX a in for of the lower-yielding or $X.X securities basis million restructuring pretax

proceeds in the generating higher-yielding share a will mentioned As sale securities reinvested of the assets, before, into from an $X.XX additional be XXXX. the

increase our Another banks. XX item in which our line initiative to fees with correspondent doing XXXX will improve includes in which banking wire business our an business, fee includes global

materialize results in initial more the to quarter half this expect prominently We second of and the year.

traction believe we year. gain starting We and interest will new for are rate believe our these in push clients SBA of will Additionally, line see as in initiatives to XXXX, our fee up again. percentage revenue the we a swaps demand from

With that, at let's take a expenses. closer look

Our here. was flat line prior so quarter. items quarters, base total to prior million highlight $XX much expense and line in not the to with Most were

In and hires I second guidance $XX the slightly had of for of the in perhaps model terms a mentioned we 'XX, as Lou earlier. more add would may some new half million quarter, year,

numbers. Q&A. and at to with the being straightforward, our depending the up table bounce points bit the loss and that up Let's for quarter, assets take stock $X.X equity slight upon the let's around well-capitalized the portfolio buyback also after Board. mention tax AOCI the tangible restructuring levels discussed open and of With in capital a with basis are I look common even improvement above Capital on dividends levels strategy would a moved tangible some million X quick in a it capital. remain fourth ratio. with But

with Sandler. from first will [Operator question Piper And our come Instructions] Scouten Stephen here

how net of X. new are kind just I this I think are on maybe have. side. verticals, the different results of into few I'm business various might showing impact first strong correct, on shown verticals, today could of a could And the other if guess slide give start especially you how particular, kind of the increases to than given wondering these Slide those I'm those maybe if sensitive in deposit Kind if the kind year-over-year. little Pretty quarter? banks granularity some I some what did rate of deposit

of the first is very is deposits service driven, the the sensitivity the there's X we a some that Advantage our that Jurist Recently, the Well, maintain HOA that the of if this companies opinion, regarding prior one simply we're their significant of managing looking moving although by over lot have and extremely being the that in on here. in deposits we the and Homeowners have the bank Associations, announced kind came that side. teams partners know they're give of that and they were bank, and rates, here, a we always at and with in but with unhappy happy met we both number management all they pretty lot our

a I regarding a it of on that to requirements think actually thing Coast smaller these. with that the side, they're there's a reserve kick been kind to over place, of have coming year the with and year activity have the happened order Unfortunately, In coming for And going down is us. beneficial in the in also, Another HOAs. the saw the has to reserves lot road, happened that. We strategy do for the recently. lot and HOA the they ago legislation be to has in to which have of this and passed current There's hurricanes West now created the on repairs. that very has to banks fund can been the HOAs past, on a

have clear the and year the QX to good that's both I in and very a deposits, that going So side, in we're believe very HOA loans on pipeline. already

very but them. vertical and this really that to It in not is failing that a with the service is old. it's of Advantage, absolute to And Jurist is loan small- X developing medium-sized zero. deposit law are a vertical less the identified wanting a attorneys. initiative that an a The local started We've done are banks firms But so the it's than all much in years one is it's lot been well. about been the relationship which this give one, larger of

on one overall I -- other, both the as a year-to-year have sides. you growth what think steady. outperformed know if it's very if it's don't quarter was I -- there but the

That's very And in? HOA those then Are And deposits? in they noninterest-bearing? what deposits, tend predominantly the be? categories Global. helpful. terms categories would are Okay. the Are of Jurist many index Advantage Or what those to composition do fall kind of and those just those of of and

rate The are really Advantage Jurist not sensitive.

you accounts, If the about or the accounts partners. not trust They escrow rarely it, IOTA negotiate think are they accounts, and of we are accounts, the a firm individual partner have rate. a law

the So fee but they they high are are, that not they're driven -- a -- all. they those are categories by have at

the that see it than HOA we do negotiating the -- a have once but rate, always you do we And anything. more while, based HOA, relationship. on we always do a an overall in it operating Every is accounts on

priced we relationship. So the

Yes.

The other that's market also The but in good are in some deposits below accounts. a mix business. money is wires those Stephen, costs, there, we're might I of our point both that throw and DDA probably doing that cost of of on enterprise Global, a lot

global. I and increase had global. of wire anticipate out think And in of in as script the in mentioned good over some that that and we we I growth business wires $XXX,XXX

the The line business again, Advantage other and Jurist in is the the piece on wire fee Jurist Advantage. transacting on doing we're

it's us call and the providing just accounts cover, banks operating the have it's up hours provide, don't are service immediately may we in -- money market to accounts really traditional be the that the attorneys there. that and can there. really, that But we're service that So the we

there's So business I wire lot too. good think a in of there,

is overall operating tough in of seeing the be about of are thinking lot And seeing think the growth I to a for time leverage. 'XX good, maybe Great. guys ability trends trends are like maybe peak sounds Okay. the NIM sounds same are you operating leverage way, already It and we're kind But somewhere How peak NII in where banks like in are may now what to being. 'XX? deliver what right hiring we deliver good.

out. loan question certainly talked there's good about, it's about a above Yes, been one and we've but would mentioned that I lot running stated of One Lou our I'd we and our a a pipeline that is point things our couple say guidance. volume,

I high loan think of good we coming volume I'd teens growth. will in to, out the mid- to initially say, 'XX have

our volume will to mitigate margin. of starting the some high. So will be on compression it And see we're our that

traction point and The some out of a initiatives. is lot businesses I seeing we're second on fee would that piece some that

we've around traditionally We've to move before line. our we up. that run need in think of I is XX% revenue mentioned fee the that

initiatives we So about we talk there's a could that fee to but some improve Mr. that a a clean. percent of But some remain disciplined revenue. remains of then out benign can more just in and I see at think still has being perfect term this the near of Credit credit think in XXXX. the will and cost, side. been point, bring Pazos, line we progress as gate number as expense year XXXX for those long still, now, be time that that will on our I pristine. we expect And

So point out. that's what would I

every And be pleasant quarter. NPA site the That's Great. X% perfect. a continues to yes,

on congrats So that.

Our Karl Raymond [ ] will with from Doyle come James. next question

just Obviously, year-end. bit in where effective you talk increasing I to that loan market just to seeing drill it's just hear hiring, wanted just one but at categories? it And sort there's the if Just down pipeline about in And I few like general? wanted a the which loan of you also banks in demand high-end like more guidance are of the more on actually for loan growth. seems growth XXXX.

of mentioned, loan is our Well, in we as quarter, into were volume I first very pleased that the non-CRE. going XX%

I be think for HOA we which the board So it seeing side, a are us. going year very across on the solid to is

We that focused where seeing are on warehouse owner-operated multifamily. comes very side, is the CRE that's on on we play. look as the source at business. a and it also on bank owner-operated SBA We seeing side opportunities, We're it the into

side I because, response the detailed made specifically last a And launched of very verticals in I what one but all been we we're it's mention mentioned been that again, the that vertical tremendous. are delivering the think I got year, a doing So January of non-CRE well. was that that on has

Fort into the just Miami Show. season The Palm Boat We months the was ago, going Lauderdale now are Beach. yacht with then about there's X.X

very seen and new it will believe into here, we've and the activity strong year. So steady I continue

are that of team pulse meetings over mentioned. I verticals on division created with a all attend the we've all leaders, years I twice the the the week. the my these all And finger past speak with what's been pipeline personally all Again, have verticals have So X head happening. delivering. and

so best is we steady think, you, well. I've We're CRE because the although best showing tell not did the and relationship, we far, I They're cherry extremely and extremely great segment Ben, I [indiscernible]. We the them demand think want manage concentrations conservative to pick. a CRE. quality. afraid we how of asset And continuous, and got job

increased just reduced on -- there. growth the And I And pressure deposit manageable still thoughts should from Obviously, provide here. deposit should guess, the has restructuring your but Perfect. XX%. ratio portfolio loan at additionally,

where here? deposit growth Just thoughts from goes on

Yes. sheet on the restructuring, year-end. we're at us gave which at [indiscernible], Certainly, portfolio a balance the we did cash little

of million $XX had at year-end. I think we cash around

that really balance funding in loan But Lou hired the So mentioned a for just certainly, new a grow both we that bankers the quarter. first deposit good need growth in of way. are specialized X in put we us sides position gathering. that to in sheet disciplined

book in somewhat our anticipate growth. tandem of grow our we deposit loan to So

our position. X a good I'd off on cash we're starting say One, things.

deposit give million we flow funding securities, is $XX That book. need We will as cash rolling then have well. grow of And to our us certainly, off.

me Perfect. And it will and one for be. one last

program shares, repurchase. you a for XXX,XXX just any in XQ. you repurchase Just your have on I thoughts know the didn't share

on thoughts your Just there?

the we're any. we potential No, discussed didn't would nothing both say repurchase are I both discussions on the having levels yet, but right very have repurchase as dividend, certainly we capital good now. and being

la remarks. And to de our session, for back to this with closing questions, remaining over conference no turn the Aguilera I'd conclude like question-and-answer Luis will any

Thank you. Yes.

we've budget established. Management and while challenging levels, national model to on plan. environment, maintaining focused the opportunities appropriate a growth believe profitability. economy presented we are profitability economic team And a preparing for our on to with certain continue expected, growth and taking our approach and its is of business range managing and current despite clear operating trends prudent and we economic the the plan offered And mindful us and balance improve a Again, USCB liquidity So execution we growth capital for by in continued of a landing sheet soft reserve for areas, is uncertainties. limiting XXXX scenarios.

positioning that every months. of competitive temper South state I our strong Nonetheless, growth and in XXXX and the population the XX to has aware and strong plan which resiliency economy, forecasted consecutive wealth in continued year migration, rate very historically be unemployment of impacts factors strong and a the under many very rates, low national Florida of the believe remained economic growth and is that will advantage more recession. with these have offer market, opportunity. dynamic we state this job developed a of We're for another to Florida take

and footprint Our strong economic our XXXX the us profitability our sheet financial in our and growth strength our metrics, beyond. to in ability balance confidence achieve in targets gives in

all. delivering planned thank next With we on forward in and said, as call. in updating our our So that you I look you progress of earnings

concluded. now The for conference presentation. much you today's is Thank attending very

your You lines. may now disconnect