USCB Financial (USCB) 26 Jan 242023 Q4 Earnings call transcript

Good morning, everyone, and welcome to the Q4 2023 USCB Financial Holdings, Inc. Earnings Conference Call.

[Operator Instructions] Please note, this event is being recorded. And at this time, I'd like to turn the floor over to Luis de la Aguilera, CEO. Please go ahead.

you Quarter us XXXX thank Financial for and Fourth Holdings Earnings morning, for today joining USCB Good Call. Turner, Chief With highlights me performance, on Officer, the new can which the Slide as QX provide Bill Credit see CFO, Rob highlights overview today Anderson, and bank's reviewing of who will our X. you an of our

XXXX. team XX. He in pleasure Bill that asset of distinct in while Officer, formally quality. conservative Credit recapitalization always He our previous the culture years. joined Chief the member at had of bank's played here working us a this role me credit diversified first at joined I past Ben age engineering with transformative U.S. November maintaining the Ben the the and as executive strong Ben XX bank's Pazos, after was for retired Century well. OCC. we Bill with United. was and the missed, Turner be both a late he worked Planters Republic XXXX XXXXs, Bank senior wish of a Policy Credit initially and and since known in will Ben, he Bill the positions to From to there, Subsequently, in executive in together when him National SVP Officer. went Bank I key the have examiner we position and on bank rose Like where serve Union

leadership. past, confidence moved American his where experience XXXX, I From the challenging he and with I serve having years, in to Miami. X capacity, for XXXX the worked TotalBank year a Bank of was Chief join and he full industry. both have XXXX for Policy as first-hand Bill Credit at Apollo into Bill was banking in Afterwards, Bank up to Ben Officer as integrity and in have Credit Officer. him me for

to was rates prompting deposits fall interest-bearing regional tumultous money bank compressing failures quarter led certain loan and shift sentiment community s which demand many the banks. safety. and a and The flight further from a affected short-lived further, NIM. was raising mix perceived of shaken, continued to deposits crisis as categories, to confidence, center noninterest-bearing The banks Consumer triggered second Fed in

from December. and the $X.X This detailed coupon with To deliver billion total going or growing robust with or $X.X has these $X.X forward. the This was or quarters this $XXX.X $XXX XX% on was last Deposits growing assets interest headwinds, well increased year end, X came perform team the quarters, production over over will in production $XXX XXXX results XX.X% solid year. million In past X%. with of the despite South average other billion. to continue slowdown be pushed the Loan shortly. as QX, weighted to total which increase billion, quarterly to through margin XX, at million ending loan million on and QX, accretive Still, After in continues on close from USCB $XXX previous X% at X.XX% year diversified loan million sectors. our at over production of XXXX. $XXX X the funded billion, loans mostly closed loan Florida gains in back to the be most economy the an across year growth net will the to the track December to

business loan year, is priority. lines a consisting yields growth gross important optimally Equally production past taken was to deposit by SBA equipment, of diversity. diversified yacht asset of has low-cost loans. And leverage XX% this consumer deposits, Since our our and to is and loan loan and efforts quality funded production further non-CRE HOA, gathering

aggregating focused bank in and Banking deposit-rich correspondent coming have introduced. been business X primarily December verticals developed HOA and XXXX, lines, market and QX sourced the deposit namely QX jurist the online Global In developing Advantage New initiative on on recently focused or business are deposit-focused legal banking. hires and new banking, reintroduced launched

XX% Over Each noninterest-bearing. line in years, in these a business banker headed is X these by expertise senior verticals which deposits, over having $XXX grown are the have million field. of

has personnel the production been allocated and New further identified, of activities to these hired gathering deposit verticals. support

South XX year, team care The January in organized Advantage, on the market. has local Center Furthermore, of an to experienced hospitals early Bank operations business we of and on announced and with set as largest of our is of business book develop new $XXX a which million within market. branded health Dadeland In X at the team was focused XXXX, MD this Miami. vertical miles a hired medical this X.X

month veteran stock at a portfolio weighted legal this to million deposit-rich of costs. further sourcing Also, lower this was company shares $XXX quarter, banking Another senior grow repurchased price the common $XX.XX. our producer niche share during hired XX,XXX of also per funding managing average

remain program. for the under shares authorized As company's December XXXX, of repurchase XX,XXX XX, stock

by am pleased confirm this directors. December, with a that judge had corporate Bank State class led I no federal on, move to Century U.S. action The judge held against we shareholders Before action former that X and a suit Florida dismissed Court past Merit. the prejudice class current

risk trends conservative Profitable consistently sound is team The on since is page is directionally and delivering. our X next performance self-explanatory, recapitalization. showing management what on, historical focused select based

performance our turn which to key now results Anderson. indicators, financial Rob and specific CFO, our let's reviewed So be will attention by

most the everyone. of appears in cycle are Okay. close coming good morning, It Thank decades. Lou, Federal we you, Reserve's the and aggressive tightening to

is you As know, and on put the no this a squeeze exception. all has USCB profitability industry's

the slow is call, of new higher deposit at to originate last our to of loans on aggressively increases the assets, to improve the bank. cost and profitability yields discussed pace our current reprice goal we As

goals quarters take with I'm While say profitability pleased that improve have our more will it to profile. accomplished pronounced these to we a few more results in materially QX,

XXXX. some need believe will Fed, from half the come also help second We the most which in of

or growth in or million the growth loan our nearly loan to prior $XXX up point First, the XX%. book, I'd quarter from

up Net saw finally deposits in increases year. the of fourth noninterest has an While in impacted which during after more inflection $XX book our we slightly, our point and income all were slowed, loss, touch of $XXX,XXX million I'll income securities lower-yielding interest And pace a the the quarter, line. for our declining on this an deposit sold bit.

impacted note on the quarter, the so that growth profitability. The predominantly also cash interest under the in provision rather we the of flows expense. that have came for from a loan benefit this sale an the year. late quarter, quarter, in million $XXX not earn-back in we X of the expense, were reinvested earning provision income but booked with December large I'd assets this With our growth in higher and

basis Regardless, $X.XX for the you help share for if profitability going made out quarter. And quarter. the interest securities forward. the income generated by $X.XX the these per a the law we loans GAAP Earnings on back will sale, was bank's

some mentioned, to basis. repurchase this that lower able Lou were and As and we did weighted count, a share average shares our quarter, on spot both

on performance So indicators. our let's key move to

per First, of book our a and this share. negative portfolio translated AOC $X.XX into book higher value value tangible in saw to tangible AOCI $X.XX. AFS share increased per or $XX.X We million our improvement quarter, includes which negative an impact of

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

driven Our several by prior cover NIM X basis up factors, was points later. which X.XX% and from quarter, I'll the

metrics reserve our was loan credit soundness, terms X.XX%. slightly remain up coverage strong, to In and loss our of

page on our our Going A NIM big to the composition. story part around costs deposits. on next centers in of deposit

quarter up previous when on an book basis, basis. average compared to spot was down the continue but deposit Our slightly slightly Deposit costs on increase. an ending to

slowing down, is XXXX. first when pace X However, particularly with the change the quarters of of compared

As bounced some in you around rates interest know, around narrative the quarter. the has

and the XXXX for out and started expectation for in First, cuts. Fed market pricing December longer, in we the announced in rate the are hired rate quickly came then cuts

longer may in rates at and the is have appears Now a in up pricing bit back bit. we rates January moved market than current be a

with this, said $X.XX we Having as rates. bringing clients all rate X-year narrative with CDs our competitors asking saw or for those the $X.XX December, advertisements at moving was us to e-mails and in down,

our CDs before some their or be rates, to trying lock can clients and taking draw. liquidity lose market Typically, money from did at liquidity excess excess we you they tell clients' losing renewing rates in While clients. accounts that would of have funds we're not I those move

a competition for As than to match wholesale best note, CDs, clients. these lower alternative funding XX to we was points basis XX so only our for decided very nearly rates

above CDs is And so and X.X%. far weighted coupon close this opened we new the for to a haven't average year, CD X%,

end of balances positive aspect and to of deposit indexed remain have accounts, costs within we our beta $XXX deposits rates, portfolio mix total have regarding we comprised XX% even that Another is of of the and seen interest-bearing total DDA that the when prime the At deposit deposits. both XX.X% guidance towards our million shifting XXXX, funds. deposit Fed are

these have will drop, XXX% eventually benefit which funds. rates deposits when beta, cost NIM overall our and of So will

If next at the a business commercial diversified bank. book base a our you on closer our model, slide, look deposit take reflects our deposit

and the deposits with the the insured not dominated clients more around which headlines up conversations having While about today safety centered deposits, our ticked are and uninsured QX. the XX%, to in are rate we paid being

give our Page they picture verticals the growth business a to to X everyone story. new our better contribute how and is slide of

staff, and branch expertise senior before, operating the so brick-and-mortar led these industry leverage especially these by can mentioned each support one of client and verticals As deep verticals be cost. the little contacts all are without leader impressive, very with in strong

continue mentioned, are fully expect to trend all through we as As this verticals growth we progress to Lou XXXX. these adding personnel

liquidity. to on move Let's

ratio months. to term expectations. is both sources is rate XX.X% on in have again sheet. the to market noteworthy seen BTP the loan activity and over off last the XX to weeks bank has of And First, of an in slide future of increased sentiment loan-to-deposit ample you'll a rate pay multiple banks funding quarter. this to still the interest of due The most Fed's item We the balance the use action notice program early The we cuts growth this result rate tied the our liquidity, few next on took increased quarter as January.

lower a action borrowings, in Now USCB We'll annually. million other that have see later basis drew this in down and impact borrowings. XXXX. off saving banks investors FHLB $XX a this FHLB utilize in to XX year, company priced at the overnight rate $XXX,XXX than points paid or cost USCB this amount program similar of the and able cuts are [indiscernible]

to me back that, with discuss turn So Lou our let to book. loan it

and loans points Thank the to will or have or quarter. the new XX.X% Average compared to compared you, that increased the loan prior million portfolio fourth $XXX.X XX.X% quarter continue Rob. quarter increased annualized of trend basis the XXXX, yields year. XXXX. Directionally, into compared fourth $XX.X to million XX a

bank sudden clients. classes. loan the has by initiated demand and responded abated various teams well and loan in showed our for failures Loan their million slowdown XXXX QX noted production diversified previously asset The production $XXX totaled over

the quarter-to-quarter, continued As weighted to and we on $XXX the new coupon year. or XXX portfolio from gross QX pipeline increase the diversification and see both above is as XXXX pricing to activity, XXX in the similar points average new and closings in basis average. forecast on XXX active XXXX million, QX production basis In graphic, fourth points we the were points QX quarter, strong into basis the

diversification Asset quality continued is portfolio an priority. and ongoing

association well on will loan non-CRE lending, Officer, to mix Slide business as the Credit lending, verticals our loans Chief Our yacht growing Bill including our contributed production and volume XX, SBA by portfolio reviewing be banking. product Turner, correspondent our lines, as

for you, slower this point, our borrowings to to both ratio both on year. it continues lower transaction, XX, quarter. will reasons: the portfolio Okay. coming does can continue of is off the new cash improve our while improve, at following represent income $XX Thank coming half and of in the be flows the interest-earning higher rates, million loans mix increased cost we second increases and NIM the that cuts securities of the of BTFP On inflection FHLB nominal, interest and in reinvested in costs, XXXX deposit security with feel net increasing, assets an loan-to-deposit over rate Lou. Page coming

during we ALM a this asset XXXX. slightly our reflects the model, are on to sheet model executed balance changes run, According static we and and sensitive strategies

normalization that beat during While improvement yield assumptions we believe slope positive deposit money we conservative portfolio, is we to Taking that indexed with have margin in a NIM the with are will we reasons market shape dependent accounts, could low see a mentioned of the to of however, interest so is that to will XXX%. $XXX a on into look XXXX, Furthermore, remaining before, deposits, beta. This, as movements, assumptions inverter curve. we have we million million index XX% have when results at in loaded rate believe reprice that XXXX. consideration model deposits expansion, our these the curve and $XXX volatility beta with more see a during we from a

if basis will accounts So annual savings points, rates $XXX,XXX. be the the on Fed money XX market cuts the

On received average buckets loan side, expect $XXX result million flows $X.X this XXXX, reprice for maturities. above, and in of The will funds [indiscernible] loan loans income in million. current cash to repriced variable net is buckets these from rate the we or We of weighted additional million in both these X.XX%. at X.XX $XXX

liquidity slide. is component to our on management securities A the next Moving sheet balance our and portfolio. key of

remaining which classified of the the is fourth the XX.X% securities AFS $XX.X classified million is For quarter, as HTM. was while as $XXX million, portfolio

portfolio of per HTM, has our tangible we XX.X% as preserve unrealized have $XX losses saved this approximately book value classifying our and of helped By million share.

X.X has modified of duration Our the portfolio X.X. a life of average and

has a as duration higher Our result which increased prepayments. has in resulted rates, lower extended of

For lows. on could our rates flow demand, these position yields depending year, as when liquidity securities considerable historical loan we of invest most $XX.X portfolio securities higher at to million a cash the expect receive was as from and were the portfolio purchased the we and

saw also tangible which portfolio in AOCI $XX.X We book translated into improvement our value share. AFS million per of quarter-to-quarter, from an higher

asset Bill that, quality. it So with to me over let turn discuss to

of team here U.S. rest at working Thank and with the I you look Century. forward the you, to Rob.

the $XXX As the loans X.XX% a a increase new the Page graph, loans X.XX% unchanged classified these to million was points points credit $X.X quarter on continues losses were classified driven amount to you losses at in the to increased real portfolio the remaining XX provision estate. for X are result loan see X.XX% No can first XX, loans. over third quarter The loans portfolio at quarter. the other mainly at booked from fourth by basis of the This and of the nonperforming graphs Page during of increase portfolio have the basis increased from of allowance to million The X on expected capital. the of show no end quarter the and X.XX% bank from of end.

net over portfolio million loan well $X.X $XXX XX, at and the almost year-end. properties fourth XX% offices. graph to composition portfolio basis represented quarter or billion first the the in and is Page On billion. multifamily, owner-occupied The to mix over segmented diversified. estate shows between continues a The increased $X on a little be Commercial real retail,

segment owner-occupied for to loan each is second XX% are the shows commercial the segment. demonstrates debt The than coverage less and of for which the a the owner-occupied service diversified of estate right graph of table and values makeup adequate The real are the breakout of non ratios the portfolios average the weighted this loans, the portfolio. graph to

past banks. XXXX and loan good. below quality schedules insurance and all payment of peer to for vigilant respond Overall, We're and repayment repricing remains portfolio performance order monitor is ability the the percentage all of segments proactively. as in the good group performance and the due model and remains portfolios quality upcoming loan especially The the for

on couple of Okay. Bill. A items to XX. out Page Thank point you,

with foreign new to increased correspondent clients year-over-year to our more modifying banks First, the due wire to service current added portfolio, doing fees. fees approach business being and

been law Second, which sale. has the as already discussed securities

doing further be forward. did we going we opportunistic will these in lost of While XXXX, X sales about

Moving XX. Page on to

Salaries lose is program hires prior the shareholders, and the we in of incentive lower, incentive relatively together. made this we incentive On and company million is together, win final and Our the made the In front, accrual. And aligned quarter slightly our we flat is were the adjustments to benefits is few total from with $XX.X lower. expense so accrual accrual a the and good, performance when incentive quarter. company our as up base when was short, the performance larger. is

associate our with base shareholders. Our is aligned

QX, incentive accrual point. hires you move this forward new to should base XXXX, to up in the anticipate and our expect from expense resetting be we'll Looking so

turn With capital. to let's that,

of of growth price shares share. $XX.XX stock While company year during $XX.XX average weighted the average XX,XXX capital that weighted noting comfortably And the is price XXX,XXX remains USCB the Also the the full repurchased stock in levels company above retreated a worth quarter. somewhat well-capitalized shares of strong quarter, at loan the for guidelines. a repurchased of of common XXXX, per at company's common

the authorized year-end, of for remain program. current shares repurchase under As XX,XXX

for turn Lou with some comments. let to So that, closing back me it

Rob. Thanks,

supported are growth is over economy state residents grow adding migration Florida's XXXX residents by approach a XXXX, more of as in The strength businesses XXX,XXX and which X.X%. last national's the new for year. the to plans solid in strong $XX of forecasted doubling X.X% the Our continued vibrant economy, of new than population million,

support X service We XXXX. of who the loan diversified expect a over new on project at activities X market XX% the collectively growth approximately deposit manage first and million and veteran in focus to and XX%, X onboarded have our the in bankers strong, quarters, deposits. prior institutions lending more growth a we to hire growing quarter $XXX deposits past annualized with In noninterest-bearing

This line. open With to would verticals a have We aggregating launched that supporting Q&A. the our deposit market. new will floor like fourth I health said, specialized the business medical be care to business

begin this time, session. at we'll gentlemen, the and Ladies question-and-answer

[Operator Instructions]

Will today question from KBW. comes Jones from Our first

like just expansion a know And again of just screen start growth you're moving experiencing, it directionally the there. with sensitive, little to that you feels might deposit wanted and with are see will guys betas then next you I Rob, way expecting pieces paper, the on down you So a now on I margin. right ton the but year. there's asset

is like kind So move XXXX? way sense a of any to feel And the range? as end year you the NIM do there [ring] we to ultimately could where

to think it's Yes, inflection hit going this point an be challenging. the margin. mean on a I I quarter, we little did

out I a rate of think second little cuts. even think think will I further. even will get our I half rate of it expand if in we year, the cuts do margin And a pointed will why reasons we even increase the -- number without

a deposit costs neutral is too profile would now. point are on the betas plus, increases asset-sensitive see side, shouldn't we of today prime down, Our deposit And we also, the they that that many $XXX book. in right beta. forward. anticipate could more the And on to I state slightly But then XX% slowing have where way are out that's great and and Fed would the on indexed to we XXX% deposit have a funds, million like going

it would I can modeling move get up cuts and on the specifically until I little So faster. think say for to it's a purposes, then going margin we grind slowly rate

That's forward? can growth back Perfect. a that see ratio. a growth same sitting at you demand. have over this IPO, And little growing XX% that at mean then since really loan-to-deposit there. at guys of upper year the And to pretty deposits next question moving really you first expectation we're now moving been but very year. guys have that of conversely, to kind XX% quite look in not constraint like helpful that I grown, then to teens pace the see then you loan the continue And is into pace, and loan Is I impressive. loans that we mid- And I a guess this is pace. will

had aggregating support teams for hired had new pf noncompetes. with we to verticals We to regarding that deposit were strategically. shared team the up the were focus by XXXX. really X growth -- to side group members the answered issues really we've focus books We Well, last have. I course I or I on year what that bank continuing deposit throughout year think doing the We've looking deposit setting we're next that and no the --

from under $XXX which of the have is we million they're The that the now we've management, that the that is in million done, with analysis XX% very line members be of composition we that do the to DDA, brought have. about $XXX targeting going deposit in their the of much which verticals

deposit feel interest-bearing the lending are I we side. activities comfortable are we be as My And annual we XX% deposits. be to is going about believe annualized. going on moving with that So that to deposit our having stated, growth to is on projection loan I the a support up growth XX% focus

makes sense. MD vertical That you Advantage program an Okay. the for guys. exciting And that's

that You point in will ultimately expectation that $XXX called have. the currently be initial to at the booked the attain million those lenders so out all Is deposits time? some or you able

particular has that be to We're good in XX definitely when banker years. veteran is of business handling that working on The case, for thing bankers have it. book going been and you this one

So of very, I've these doctor the deep. with those clients already met of them few with is relationship very a groups.

The balance, first one and with X-figure very had board. just I were they come significant a high depository waiting met on to

hire So she -- week, onboarded you've that loyal deposit million, which starts actually has a speak a the that of a kind got a following, XX again, which almost when banker very in the and them. last years we follow of have, they're newest believe for $XXX that we being will we has -- has so again, as handled book that they

James. next from question from Raymond comes Rose Our Michael

just the in of group the that ranged deposits mean, discussion percentage higher? following deposit specialty on you verticals exploring drift out you there professionals are maybe other like licensed of other any there, or Just that kind medical up letting how are Slide are in things with that? I has comfortable are just terms low that guys coming And mid-XX% verticals total the on? X. on range These to

XX strongly new announced medical focused feel has that. and started. have Advantage Jurist to of The January the the X one we on feel on faster we're going because growth we I this Again, year. see attorneys that's the -- X launch side that hired Well, just to on individuals very we work

is banking, banks, onboarded one we quickly new quarter correspondent for to to probably by that do the going in end of fourth traction the plan and the X get another the think we second. I

accretive of higher. these into these going be all are to moving So numbers

We they're on are, compete. areas. these for or restraints they very there's last no solicitation more really We not should these years, first focused experienced, in not And much think be forward. I have areas on books, the personnel X time the adding because seeing move proven

We verticals total business now of on have a for X focused are deposit.

when others lending. the person senior are non-CRE The find -- especially when identify create we We them and the opportunities to lead them.

So We I have. in right expanding don't to other growth the focus ones have any the mind maximizing now. and on just want of we

as thinking Helpful. yields you at your move are good this And you will new as we see and we you of guys be yield those new it? there'll more assuming and production, percentage think pressure guys do the a on down, get production loan steady was competition to do put it year, are loan the what holds come kind to as relates through you yields? it then modeling the margin, assuming hold for you can year. guys more the couple rates kind think of loan of production of cuts Do about kind

not their we're it. Again, is on on But hold flexibility Until lowered, as you you've rates to business on competing more competitive going hold the lines, as they're market all other higher -- Miami. in in the able the get give business CRE is non-CRE lines CRE. to be is focus the us a bank economy. got when I This to ability And are our real here price. these town think into denominated estate every

the year, can little strong bit are demand, the Michael, a we've And think thing I proven I would loan good to relationship Lou book aggregating after very think higher be still right and growth. now deposit with we for that our on the growth selective and mentioned, ones number more the a putting deposit book little had the lot a is other as loan a good year loan say have verticals deposits we're our we've on probably of resources I priced loan support growing side. And and on

sorry if I'm base missed Rob, as previous rates And this, relates it margin helpful. for what commentary? your case the but is That's to I

mean when could to fall, second anywhere X I through strategic cuts happen of rate in this went the I X we from Yes. half the plan year. think our

grind think Will's a mentioned cuts from the there. on I think margin further question the margin, materialize, little rate can and until around margin then expands do little a the I As we higher

Great. maybe finally you moving little higher And then first me, hires, new for the some in mentioned a quarter. expenses

growth we You growth, other a the guys the something reacceleration a initiatives we year. would deceleration on expense had cause should though, in contemplating through of that horizon 'XX in range, of any expense as kind year? is mid-single-digit move be the for Or

Yes.

bit. to going up On resetting mentioned it's the little a new expenses, with I some move the hires then and accrual the incentive

this $XX above We and around off starting now that up past in term. we could to going the hires of for onetime but major materially again, that are to a had $XX.X item to start move our But the but want ran couple them in million million. in be watching near a deposit people right and quarter. the nothing we're We expenses closer You we aggregating XXXX. funnel, there, got off

Our from next question comes Ginnie Strickland from Feddie Macosko.

Just wondering yield were generally sold just securities if on a what you little on detail securities of or the provide could yield on pickup the what there came was the that versus trade. more that in

I'm now. at my treasurer Yes. looking right

I would basis nothing up $XX pieces of a the of but think sub pickup couple $XX XXX about some debt, above XX%, It million. and a was think material, we did million originated had securities. X%, points. of We that those we loans I point in we're basis around XXX at million. say pick $X roughly was I I but think I mean,

it. Got

in it off program term to a I cuts look bit. that discussed slows in mean that, back funding slows a a it? little the the the we've paying year, seems in already margin more with starts down the if bit it but like maybe then way that first bank growth, that quarter we some, a know see FHLB Is again. down. So rate at loan get fair And to accelerate I half the funding, of pickup of maybe we

that's very Feddie, Yes, fair.

Perfect. And then just one more question.

Just about I you see grow SBA specifically, that income noninterest more you can longer little to term? opportunity earlier, much bit line? And about you then generally how speaking, a but talk know talked

one of that our one, have past just little clients, And on on wire current business we more year, fees, more asked for I'll we there, with the foreign share really that This Okay. start. service we our which predominantly And has correspondent the we fees. a leader wire is the business. did worked predominant business fees. the bit,

We we each on got price dynamic, with some -- pickup fees somewhat were clients but working and we're also wire how those those there. of

And also, this couple of year. banks a adding we're then

portfolios picked we think the new least X as added I banks X, at to that up well.

line the wire little you the model fee opportunistic. probably estimate alone. on or bit And a increase on fees been think service has a could the double-digit itself, I on then sale gain

is quarter. January, one on dollars I that we've every but our closed to more have in goal think line

that be our than any not I net I to you it's other income. But know, to think want we materially faster comments. if going but higher, Lou, are interest don't anticipating So to make grow

line item do that. placeholder So and probably model that for see total good XX% would that the year, and think against can a you in we'll how be I for

RLH from our question Haberman comes Ross And from Investments. next

you you uninsured down more names names actively or Could the up portion. Is your uninsured that XXX percentage are describe XX chunky? trying to get a quick in it a have make more that deposits question. I little 'XX? And

back conversations been it majority with clients has up around little say the -- The our did I would a bit. of the rate. bounce uninsured lately the

So than insurance. sensitive more they the little a to bit are rate

regulators, my about the Ffrankly, deposits. in talked conversations I career, have quickly uninsured think first changed. is talking year the deposits with this we've versus insured

I think what looking for. clients we will follow are our

around some insured do the do of hovers again, somewhat to those commercial have level be have if We XX if big the But granular. amount. and are they give surprised about wouldn't uninsured. insured that. ability I XX this and and products slightly, improved insured. the to you not is it specific wish it them can't And a we but I is clients have or insured is

they're the Just with that they sort should or amount with of or satisfied, number of everybody regulators your to uninsured? you and one follow-up. say, in, else Are when pushing come happy I reduce

had I'll examination discussed that that wrapped in a August, acknowledge been discussed. up -- it's they and and topic had every this is in and never soundness never I've XX-year career exam had, answer really we a that. We Well, safety and my discussion, that

they them had we moved had actually hundreds up, had we like So with of them accounts. understood were no to educated it as blocks big how a our the chunky business clients It's they it is showed Cedars We is. -- we that granularity. quickly We and down, have model showed what There was number how how issue. moved that and ICS our it. fine not

bank U.S. of want those have shared to providing As we deposits it's correspondent the a side, even insured? with And an one not example that a they they it's on discussion. And was matter not that all of understood. low here a they things service. regulators because are foreign fully and our the They're with them cost banks,

question sense And breakdown follow-up percentage you give Or the would B or just what one of you describe of rough C as A? loans most loans. you rough them as and describe would of a us office? about Could the

of and located Florida. XX% about that portfolio occupied. that is is of -- million We out it's a spread class, but. -- $XXX have nonowner of XXX in don't office is I XX% breakdown over I'm XX% and don't is owner not loans. Our occupied --

If the would the and X think, not if here rarely out really you are, office would that's -- commercial C [indiscernible] these it in great in B They're a solid building over area. of the of stories. section suburbs. that have is I are major an none say I I majority, all could, the them And of

And . nonaccrual none the or of classified pass-through there or

back Luis Ladies over additional remarks. to and for closing the to floor questions, this at I'd gentlemen, showing time, and no turn like

you. Thank

look on in next I your So again like team, forward thank you to the meet our call. attendance behalf of would earnings Thank all to USCB and for you.

that for call gentlemen, We you concludes and today's joining. presentation. conference and thank Ladies

your You may now lines. disconnect