Cadence Bank (CADE) 2021 Q4 法說會逐字稿

Good morning, and thank you for being with us. I will begin by introducing the members of the senior management team participating today. We have Chairman and Chief Executive Officer, Dan Rollins; Executive Vice Chairman, Paul Murphy; President, Chris Bagley; Chief Financial Officer, Valerie Toalson; and Chief Banking Officer, Hank Holmes.

早上好，感謝您和我們在一起。首先我介紹一下今天參加的高階管理團隊成員。我們的董事長兼執行長 Dan Rollins；執行副主席保羅墨菲；總裁克里斯·巴格利；財務長瓦萊麗·托爾森；和首席銀行官漢克·霍姆斯。

Before the discussion begins, I'll remind you of certain forward-looking statements that may be made regarding the company's future results or future financial performance. Actual results could differ materially from those indicated in these forward-looking statements due to a variety of factors and/or risks. Information concerning certain of these factors can be found in the legacy BancorpSouth 2020 annual report on Form 10-K.

在討論開始之前，我將提醒您可能針對公司未來業績或未來財務表現所做的某些前瞻性陳述。由於各種因素和/或風險，實際結果可能與這些前瞻性陳述中所示的結果有重大差異。有關其中某些因素的資訊可以在舊 BancorpSouth 2020 年年度報告表 10-K 中找到。

Also during the call, certain non-GAAP financial measures may be discussed regarding the company's performance. If so, you can find the reconciliation of these measures in the appendix to the presentation as well as the company's fourth quarter 2021 earnings release. Our speakers will be referring to prepared slides during the discussion. You can find the slides by going to our Investor Relations page at ir.cadencebank.com, where you'll find them on the link to the webcast or you can view them at the exhibit to the 8-K that we filed yesterday afternoon. These slides are also in the Presentations section of our Investor Relations website.

此外，在電話會議期間，可能會討論有關公司績效的某些非公認會計準則財務指標。如果是這樣，您可以在簡報的附錄以及公司 2021 年第四季的收益發布中找到這些措施的調整表。我們的演講者將在討論期間參考準備好的幻燈片。您可以訪問 ir.cadencebank.com 的投資者關係頁面找到這些幻燈片，您可以在網路廣播的連結上找到它們，也可以在我們昨天下午提交的 8-K 展覽中觀看它們。這些幻燈片也位於我們投資者關係網站的簡報部分。

And now I'll turn to Dan Rollins for his opening comments.

現在我請丹羅林斯發表開場白。

Good morning, everyone. Thank you for joining us today for the first consolidated earnings report for the new Cadence Bank, formerly known as BancorpSouth Bank. As you all know, we completed our merger with the former Cadence Bank Corporation on October 29, 2021, and immediately changed our name to Cadence Bank. Today, we will be discussing Cadence Bank's fourth quarter and full year 2021 results. Paul and I will make a few comments this morning on our merger progress and our views on our company and the economic activity around our footprint. Valerie will discuss the financial results and updated purchase accounting disclosures, and Chris and Hank will cover our frontline efforts. After we conclude our prepared comments, our executive management team will be happy to answer questions.

大家早安。感謝您今天加入我們，了解新 Cadence Bank（以前稱為 BancorpSouth Bank）的第一份綜合收益報告。眾所周知，我們於2021年10月29日完成了與原Cadence Bank Corporation的合併，並立即更名為Cadence Bank。今天，我們將討論 Cadence Bank 2021 年第四季和全年業績。保羅和我今天早上將就我們的合併進展以及我們對我們公司和圍繞我們足蹟的經濟活動的看法發表一些評論。瓦萊麗將討論財務表現和更新的採購會計揭露，克里斯和漢克將報道我們的第一線工作。在我們完成準備好的評論後，我們的執行管理團隊將很樂意回答問題。

Our slide deck this quarter has been expanded to include additional information, over and above our normal quarterly disclosures, in an effort to give our shareholders more insight into the new cadence. We will reference certain slides in our remarks this morning, but we will not be covering them all.

我們本季的幻燈片已經擴展，除了正常的季度披露之外還包括更多信息，以便讓我們的股東更深入地了解新的節奏。我們將在今天早上的演講中引用某些幻燈片，但我們不會涵蓋所有幻燈片。

It's obviously a very exciting time for our company. I hope you all saw our announcement yesterday unveiling the new Cadence Bank logo. We shared this news internally last Friday, which created considerable buzz around our company. While this project has taken many months and was led by our marketing and corporate communications teams, it's just the beginning of our journey as we strive to create a brand that reflects the combined cultures and values of 2 great companies. We will continue to unveil other parts of our brand identity in the coming months as we work towards full integration this fall. Our operational and support teams, led by our executive steering committee, continue to make tremendous progress in our conversion planning and implementation. We have a number of integration activities that are already taking place across the company.

對於我們公司來說，這顯然是一個非常令人興奮的時刻。我希望大家都看到我們昨天發布的 Cadence Bank 新標誌的公告。上週五我們在內部分享了這個消息，這在我們公司引起了相當大的轟動。雖然這個專案歷時數月，由我們的行銷和企業傳播團隊領導，但這只是我們旅程的開始，因為我們努力創造一個反映兩個偉大公司文化和價值觀相結合的品牌。我們將在未來幾個月繼續推出品牌識別的其他部分，並努力在今年秋天實現全面整合。我們的營運和支援團隊在執行指導委員會的領導下，繼續在轉換規劃和實施方面取得巨大進展。我們已經在整個公司範圍內開展了許多整合活動。

For example, effective back in December, all new mortgage loan applications for the combined company began flowing through 1 consolidated systems. This is just one of many examples of smaller conversion projects that are occurring across the company prior to our main core conversion, which is still on track for this fall.

例如，自去年 12 月起，合併後公司的所有新抵押貸款申請開始流經 1 個合併系統。這只是我們的主要核心轉換之前整個公司正在發生的小型轉換項目的眾多例子之一，該轉換仍在按計劃進行。

Our operational support teams have done a tremendous job of continuing to adequately support our frontline teammates while working through the conversion planning process. I would also like to recognize the efforts of our accounting and finance teams. Over the past few weeks, they've worked very hard in order to be able to provide our consolidated financial information. Closing late in the year certainly created a time crunch, and I personally appreciate their efforts on our behalf.

我們的營運支援團隊在繼續充分支援我們的第一線隊友以及完成轉換規劃流程方面做出了巨大的努力。我還要認可我們的會計和財務團隊的努力。在過去的幾周里，他們非常努力地工作，以便能夠提供我們的綜合財務資訊。今年稍後結束確實造成了時間緊迫，我個人感謝他們為我們所做的努力。

Finally, I'll conclude my opening remarks by briefly mentioning our business development and frontline efforts. Paul, Chris and Hank will provide more detail and color, but our results for the fourth quarter and for the full year speak for themselves. With the exception of industry headwinds associated with mortgage, our fee income business units produced record results in 2021. The successes of our banking relationship managers also stand out, particularly in the fourth quarter.

最後，我將簡要提及我們的業務發展和前線工作來結束我的開場白。保羅、克里斯和漢克將提供更多細節和色彩，但我們第四季和全年的業績不言而喻。除了與抵押貸款相關的行業逆風外，我們的費用收入業務部門在 2021 年取得了創紀錄的業績。

With that, I'll turn to Paul for his comments. Paul?

接下來，我將向保羅徵求他的意見。保羅？

Thanks, Dan, and good morning to everyone joining us. When I look at new Cadence Bank today, there really is a lot to like. I've been a banker for 40 years and from a shareholders' perspective, I think new Cadence Bank is the best bank I've ever been part of. First, we're in some very attractive markets. I like our non-state footprint, and I like the outlook for economic and job growth in our markets. We have a diverse revenue stream and numerous complementary business units.

謝謝丹，大家早安。當我今天看到新的 Cadence Bank 時，確實有很多值得喜歡的地方。我從事銀行家已經 40 年了，從股東的角度來看，我認為新 Cadence Bank 是我加入過的最好的銀行。首先，我們處於一些非常有吸引力的市場。我喜歡我們的非政府足跡，也喜歡我們市場的經濟和就業成長前景。我們擁有多元化的收入來源和許多互補的業務部門。

For the full year 2021, our 32% noninterest income number is a pretty good number. Our 62% efficiency ratio should improve as the conversion is completed and growth resumes. I look at our mortgage team, it's really pretty impressive. First, they run a tight ship. We have roughly 200 mortgage loan originators. We have a financial literacy training initiative throughout the footprint that's focused on helping first-time homebuyers. By training and qualifying more people, our team is increasing the size of the market for low to moderate income census tracks and in majority, minority neighborhoods. This is an initiative that we are all very proud of.

對於 2021 年全年來說，我們 32% 的非利息收入數字是一個相當不錯的數字。隨著轉換的完成和成長的恢復，我們 62% 的效率應該會有所提高。我看看我們的抵押貸款團隊，這確實令人印象深刻。首先，他們管理嚴密。我們大約有 200 個抵押貸款發起人。我們在整個範圍內開展了金融知識培訓計劃，重點是幫助首次購房者。透過對更多人進行培訓和資格認證，我們的團隊正在擴大中低收入人口普查軌道以及多數、少數族裔社區的市場規模。這是一項我們都感到非常自豪的舉措。

Looking at the 145-year-old legacy BancorpSouth Community Bank is a major strength. These teams are deeply ingrained in their communities, and this business brings a steady source of diverse revenue and profit to the table each year. Legacy Cadence C&I model is a nice complement to the Community Bank, and over time, we will see meaningful synergies. I'm looking forward to getting the conversion done and having 1 brand throughout the footprint. Clients will be pleased. More branches means more convenience.

擁有 145 年歷史的 BancorpSouth 社區銀行是其一大優勢。這些團隊在他們的社區中根深蒂固，這項業務每年都會帶來穩定的多樣化收入和利潤來源。舊版 Cadence C&I 模型是社區銀行的良好補充，隨著時間的推移，我們將看到有意義的協同效應。我期待著完成轉換並在整個足跡中擁有 1 個品牌。客戶會很高興。更多分支機構意味著更多便利。

Just last week, I had breakfast with a prospect who lives in Texarkana. He would not have considered us previously. Now with local branches, our chances are good.

就在上週，我與一位住在特克薩卡納的潛在客戶共進早餐。以前他不會考慮我們。現在有了當地分支機構，我們的機會就很大。

When I look at our $22 billion in assets under management in our wealth management platform, we see much opportunity for continued growth there. Our client retention rates in this business are best-in-class. Bank referrals have been and will be a meaningful part of the growth in revenue and profitability of this business.

當我查看我們財富管理平台管理的 220 億美元資產時，我們看到了持續成長的巨大機會。我們在該行業的客戶保留率是同類中最好的。銀行推薦已經並將成為該業務收入和獲利能力成長的重要組成部分。

The 140-year-old insurance business is impressive. Chris is going to tell you more about that in a minute, but it is a consistent provider of attractive revenue and profitability. One of my jobs is to see the referrals from our bankers increase, and they should because the insurance team is very experienced and good at what they do.

擁有140年歷史的保險業務令人印象深刻。克里斯稍後會告訴您更多相關信息，但它始終是有吸引力的收入和盈利能力的提供者。我的工作之一是看到我們銀行家的推薦增加，他們應該這樣做，因為保險團隊經驗豐富並且擅長他們的工作。

Our combined operations team is extremely capable. Putting the 2 companies together is a plus for long-term talent retention. Our operations backbone in Tupelo is strong, and our go-forward plan is enhanced by having meaningful presence in Birmingham and several other important satellite locations.

我們的聯合營運團隊非常有能力。將兩家公司合併起來有利於長期留住人才。我們在圖珀洛的營運支柱非常強大，並且透過在伯明翰和其他幾個重要的衛星地點進行有意義的存在，我們的前進計畫得到了加強。

Perhaps most importantly of all, is credit. And I will say I'm really impressed with our results this year. We came through COVID with flying colors. The credit culture is mature, and we did well in the most significant stress test ever taken. In 2021, legacy Cadence credit improved significantly, including a number of large payoffs and recoveries late in the year. These serve to reduce the preliminary remark significantly. So closing day remarks are much less than preliminary remarks due to positive credit results all year long. This difference increases tangible book value materially relative to preliminary expectations. So our healthy capital ratios and liquidity ratios give us confidence to increase our dividend and to continue the share buyback program.

也許最重要的是信用。我想說的是，我們今年的成果給我留下了深刻的印象。我們出色地度過了新冠疫情。信用文化已經成熟，我們在有史以來最重大的壓力測試中表現出色。 2021 年，傳統的 Cadence 信貸顯著改善，包括今年年底的一些大額回報和回收。這些有助於顯著減少初步評論。因此，由於全年信用結果良好，收盤日言論遠少於初步言論。相對於初步預期，這種差異大大增加了有形帳面價值。因此，我們健康的資本比率和流動性比率使我們有信心增加股息並繼續股票回購計劃。

In the past, operating a bank I have often worried about being too small years ago. What if a hurricane hit Houston, it would impact a significant portion of our customers and our operations center. As we grew, this was less of the concern. But even at $18 billion, we had concentration issues that were a hindrance. Today, the diverse revenue stream and the granular profile of the new Cadence is very comforting. Today, we have room to grow all business lines.

過去經營銀行時，我常擔心銀行規模太小。如果颶風襲擊休士頓，將會影響我們很大一部分客戶和我們的營運中心。隨著我們的成長，這個問題就不再那麼令人擔憂了。但即使是 180 億美元，我們也面臨集中度問題，這變成了一個障礙。如今，多樣化的收入來源和新 Cadence 的精細配置非常令人欣慰。今天，我們所有業務都有發展空間。

I feel very fortunate to report that we have higher retention of key bankers from both legacy organizations. Our cultures are similar. We have very little overlap geographically or in business lines, and the reality is our bankers truly have more opportunity now than ever before. We value our teammates, and we're constantly working on ways to continue to be a great place to work. I never take that for granted.

我非常幸運地向大家報告，我們對兩個傳統組織的主要銀行家的保留率更高。我們的文化相似。我們在地理上或業務領域上幾乎沒有重疊，而現實是我們的銀行家現在確實比以往任何時候都有更多的機會。我們重視我們的隊友，並且不斷努力以繼續成為一個優秀的工作場所。我從不認為這是理所當然的。

Last, the senior management team is working well together. We all like and respect each other. Maybe I shouldn't put words in their mouth. I like and respect them. I guess you can ask them later if they like me. But I can tell you that we are all adjusting to our new roles. And as a reminder, the senior management team, we all have a material portion of our net worth invested in this company, and we're pulling together as a cohesive team. In the years ahead, we have a significant opportunity to build on these strengths that we've mentioned, and I can assure you our team is determined to do so. I'll now turn it over to Valerie.

最後，高階管理團隊合作良好。我們都喜歡並尊重彼此。也許我不該把話塞到他們嘴裡。我喜歡並尊敬他們。我想你可以稍後問他們是否喜歡我。但我可以告訴你，我們都在適應新的角色。提醒一下，高階管理團隊，我們都將淨資產的很大一部分投資於這家公司，並且我們作為一個有凝聚力的團隊團結在一起。在未來的幾年裡，我們有一個重要的機會來鞏固我們提到的這些優勢，我可以向您保證，我們的團隊決心這樣做。我現在把它交給瓦萊麗。

Thank you, Paul. The merger admittedly makes the results a little complicated to unwrap, but at a high level, I see 3 key highlights for the quarter. First and foremost, we've completed the merger of BancorpSouth and Cadence Bancorporation, and we are now combined and well positioned as we enter into 2022. Second, our credit quality continued to improve notably, with significant declines in our combined nonperforming loans and classified assets, net recoveries for the quarter and a lower credit remark on the acquired portfolios. Finally, we experienced meaningful organic loan growth in the quarter, and pipelines are robust. This growth, combined with an asset-sensitive balance sheet, positions us well as we enter into what is expected to be a period of rising rates.

謝謝你，保羅。誠然，合併使得結果有點複雜，但從總體上看，我看到了本季的 3 個關鍵亮點。首先，我們已經完成了 BancorpSouth 和 Cadence Bancorporation 的合併，在進入 2022 年時，我們現在已經合併並處於有利位置。 、本季淨回收率及對所收購投資組合的較低信用評估。最後，我們在本季經歷了有意義的有機貸款成長，並且通路強勁。這種成長，加上對資產敏感的資產負債表，使我們在進入預期利率上升時期時處於有利地位。

Turning to the quarter's results. Slide 5 provides a view of our summary income statement on both an annual and a quarterly basis. I will focus my comments this morning specifically on our fourth quarter results. And just as a reminder, with the October 29 closing of the merger, these results include a full quarter of legacy BancorpSouth activity and only 2 months of legacy Cadence activity.

轉向本季的業績。投影片 5 提供了我們的年度和季度損益表摘要。今天早上我的評論將特別集中在我們第四季的業績上。提醒一下，隨著 10 月 29 日合併結束，這些結果包括整個季度的 BancorpSouth 遺留活動和僅 2 個月的遺留 Cadence 活動。

Given the impact of day 1 provisioning and other merger-related items, we reported a net loss on a GAAP basis for the quarter of $37 million or $0.22 per share. On an adjusted basis, which excludes the day 1 provisioning merger-related expenses and other adjustments, our fourth quarter adjusted net income available to common shareholders was $102 million or $0.62 per share. Adjusted pretax preprovision net revenue, or PPNR, was $134 million or 1.29% of average assets. While PPNR as a percent of assets was flat compared to the prior quarter, it included the impact of seasonally lower insurance revenues and declines in mortgage revenue. With that said, we are very pleased with our performance from a PPNR standpoint relative to our expectations for the quarter.

考慮到第一天撥備和其他合併相關項目的影響，我們報告按 GAAP 計算，本季淨虧損 3,700 萬美元，即每股 0.22 美元。在調整後的基礎上，不包括第一天撥備合併相關費用和其他調整，我們第四季度普通股股東調整後的淨利潤為 1.02 億美元，即每股 0.62 美元。調整後稅前撥備淨收入（PPNR）為 1.34 億美元，佔平均資產的 1.29%。雖然 PPNR 佔資產的百分比與上一季持平，但其中包括保險收入季節性下降和抵押貸款收入下降的影響。話雖如此，從 PPNR 的角度來看，相對於我們對本季的預期，我們對我們的表現感到非常滿意。

A little bit more on the adjusted items. $132.1 million of the $133.6 million provision for credit losses in the quarter was the day 1 provision on acquired loans and unfunded commitments, commonly referred to as a CECL double count. Fourth quarter merger and incremental merger-related expenses totaled $49.5 million. Merger expenses reflected as a separate line item on the income statement were $44.8 million and represent onetime costs to complete the merger that have no future benefit to the company, primarily advisory and legal fees and certain compensation-related items. Incremental merger-related expenses represent costs to complete the merger for which the company received some future benefit and are included in the individual expense category line item. These were $4.7 million in the quarter and represented primarily merger-related employee retention costs.

關於調整的項目，再多說一點。本季 1.336 億美元的信貸損失準備金中的 1.321 億美元是第一天獲得的貸款和無資金承諾的準備金，通常稱為 CECL 重複計算。第四季合併和增量合併相關費用總計 4,950 萬美元。合併費用在損益表中作為單獨的項目反映為 4,480 萬美元，代表完成合併的一次性成本，主要是諮詢和法律費用以及某些與薪酬相關的費用，這些費用對公司沒有未來利益。與合併相關的增量費用是指完成合併而公司獲得一些未來利益的成本，並包含在單獨費用類別行項目中。該季度的成本為 470 萬美元，主要代表與合併相關的員工保留成本。

Slide 6 of the presentation contains some highlights on our net interest margin as well as the asset sensitivity of the combined company. We reported a net interest margin of 2.9% for the fourth quarter, up primarily due to the increased accretion revenue from the merger. Fourth quarter net interest income included $16.4 million in accretion income, which added about 18 basis points due to reported margin. The yield on loans and leases for the fourth quarter was 4.34% in total and 4.06%, excluding the accretion income. The relative size of the legacy Cadence variable rate C&I portfolio was primarily responsible for the decline in the reported loan yield, but it also serves to increase the asset sensitivity of the combined company that I'll speak to in a moment. The lower funding cost of legacy Cadence also contributed to the decline in total cost of deposits to 17 basis points for the fourth quarter. And we do believe we have additional opportunity to manage those costs down in our public fund and time deposit portfolios.

簡報的投影片 6 包含有關我們的淨利差以及合併後公司的資產敏感性的一些要點。我們報告第四季淨利差為 2.9%，成長主要是由於合併帶來的增值收入增加。第四季淨利息收入包括 1,640 萬美元的增值收入，由於報告的利潤率增加了約 18 個基點。第四季貸款和租賃收益率總計為4.34%，扣除增值收入後為4.06%。傳統 Cadence 可變利率 C&I 投資組合的相對規模是報告貸款收益率下降的主要原因，但它也提高了我稍後將談到的合併後公司的資產敏感性。傳統 Cadence 較低的融資成本也導致第四季存款總成本下降至 17 個基點。我們確實相信，我們有更多機會在公共基金和定期存款投資組合中管理這些成本。

Turning to asset sensitivity of the combined company at year-end. About 2/3 of our loan portfolio is a variable or floating rate with approximately 37% of total loans floating, meaning they reprice on a monthly basis or less. Our internal outcome modeling process reflects an increase in net interest income of about 3% over a 12-month period in a plus-100 basis point shock scenario. Note that of our organic loan growth this quarter, nearly 2/3 of it was C&I driven, which will add to the asset sensitivity of the balance sheet over time.

轉向年末合併後公司的資產敏感度。我們的貸款組合中約 2/3 是可變利率或浮動利率，總貸款中約 37% 是浮動利率，這意味著它們按月或更短時間重新定價。我們的內部結果建模流程反映，在 100 個基點的衝擊情境下，12 個月內淨利息收入增加了約 3%。請注意，本季我們的有機貸款成長中，近 2/3 是 C&I 驅動的，隨著時間的推移，這將增加資產負債表的資產敏感度。

I'll refer to you to Slide 7 and 8 in the presentation for additional color on our noninterest revenue and noninterest expense. On these slides, we've combined the historical results of each legacy company for prior quarters in an effort to provide some additional context around the combined earnings strength and the expense base of the new Cadence.

我將向您推薦簡報中的幻燈片 7 和 8，以進一步了解我們的非利息收入和非利息支出。在這些幻燈片中，我們結合了每個傳統公司前幾季的歷史業績，努力提供有關新 Cadence 的綜合獲利實力和費用基礎的一些額外背景資訊。

The last topic I'd like to cover this morning is provisional purchase accounting remarks and valuation. Slides 15 through 17 in the appendix to the presentation contains summary schedules and disclosures. I'll first touch on the key noncredit related items and then come back to the loan remark.

今天早上我想討論的最後一個主題是臨時購買會計備註和估值。簡報附錄中的投影片 15 至 17 包含摘要時間表和揭露資訊。我將首先討論關鍵的非信貸相關項目，然後再回到貸款備註。

We recorded goodwill of $452 million in conjunction with the merger, which is a result of the purchase price and the net fair value of the remainder of the balance sheet. The preliminary intangible asset value is reported at $152 million, which includes a little over $100 million in core deposit and customer relationship intangibles, both of which are amortized over a 10-year period using an accelerated method. It also includes about $50 million associated with trademarks that are not amortized.

我們在合併過程中記錄了 4.52 億美元的商譽，這是購買價格和資產負債表其餘部分的淨公允價值的結果。據報告，初步無形資產價值為 1.52 億美元，其中包括略高於 1 億美元的核心存款和客戶關係無形資產，兩者均採用加速法在 10 年內攤銷。它還包括約 5000 萬美元與未攤銷的商標相關的費用。

Finally, Slide 17 provides the detailed components of the provisional loan mark of $147 million or 1.3%, which includes both the credit and the interest rate components. The credit-related component of the mark came in at 1.6% of the acquired balances, again, reflecting the meaningful improvement in credit we noted earlier, with about 40% of the mark related PCD, purchase credit deteriorated loans, and 60% related to non-PCD loans. The initial allowance for PCD loans was established at $65 million with the amount netted through goodwill.

最後，幻燈片 17 提供了 1.47 億美元或 1.3% 的臨時貸款標誌的詳細組成部分，其中包括信貸和利率部分。馬克的信用相關部分佔所獲餘額的 1.6%，再次反映了我們先前提到的信用顯著改善，其中約 40% 的馬克與 PCD、購買信用惡化貸款相關，60% 與非 PCD 貸款。 PCD 貸款的初始準備金為 6,500 萬美元，該金額透過商譽淨額扣除。

As mentioned previously, the non-PCD day 1 allowance was established through the fourth quarter loan provision of $119 million for loans and $13 million for unfunded commitments. I would again just remind you that all of the purchase accounting items are provisional as we continue to work through and validate our assumptions.

如前所述，非 PCD 第 1 天津貼是透過第四季度貸款準備金 1.19 億美元和無資金承諾準備金 1300 萬美元確定的。我再次提醒您，隨著我們繼續研究和驗證我們的假設，所有採購會計項目都是臨時的。

Now I have your head spinning with some of this purchase accounting, I'll turn it over to Chris for a little bit more on our business activities.

現在我讓你對採購會計的一些內容感到頭暈目眩，我將把它交給克里斯，以獲取更多有關我們業務活動的資訊。

Thanks, Valerie. Good morning, everyone. Slide 9 is a graphical presentation of the loan portfolio at year-end compared to both the third quarter of 2021 and the fourth quarter of 2020. As presented, historical data is on a combined basis for both legacy institutions for comparison purposes. Year-over-year comparisons are skewed due to the combined PPP loans totaling $1.9 billion from year-end 2020, with only $50 million remaining at year-end 2021. When we look at fourth quarter activity, we reported net combined organic loan growth of $400 million or 6% annualized on a combined basis. There was a slight decline in our CAD balances, but otherwise, the growth for the quarter was spread fairly evenly across each of their respective loan categories and business lines. We are very pleased to be able to have continued positive loan growth in a quarter when we merged the 2 companies. This is a testament to the bank's focus on customers and relationships and the excellent talent we have across the company, keeping the business moving as usual, even while we plan and execute on integration.

謝謝，瓦萊麗。大家早安。投影片 9 是與 2021 年第三季和 2020 年第四季相比的年底貸款組合的圖形展示。由於 2020 年底的 PPP 貸款總額為 19 億美元，到 2021 年底只剩下 5,000 萬美元，因此同比比較存在偏差。 4 億美元，即年化利率6%。我們的加元餘額略有下降，但除此之外，本季的成長在各自的貸款類別和業務線中分佈相當均勻。我們很高興在合併兩家公司後能夠在一個季度繼續實現貸款正成長。這證明了該銀行對客戶和關係的關注，以及我們在整個公司擁有的優秀人才，即使在我們計劃和執行整合的同時，也能保持業務正常運作。

Slide 10 of the presentation reflects similar data for our deposit base. The year-over-year combined bank comparisons clearly show the impact of respect to the unprecedented liquidity in the system. A couple of points to note as we look specifically at the fourth quarter.

簡報的投影片 10 反映了我們存款基礎的類似數據。同比綜合銀行比較清楚地顯示了系統中前所未有的流動性所產生的影響。當我們具體觀察第四季時，有幾點需要注意。

The preannounced divestiture of the 7 bank branches resulted in a $417 million decline in legacy Cadence deposits. When adjusting for this divestiture, deposits declined approximately $470 million on an organic basis during the quarter, driven by routine volatility in some of our large municipal deposit accounts. Other than these factors, our deposit base remained stable, and the combined company will benefit long term from the core funding in our community bank franchise.

預先宣布的 7 家銀行分行剝離導致 Cadence 傳統存款減少 4.17 億美元。在對此次剝離進行調整時，由於我們一些大型市政存款帳戶的日常波動，本季存款有機減少了約 4.7 億美元。除這些因素外，我們的存款基礎保持穩定，合併後的公司將從我們社區銀行特許經營的核心資金中長期受益。

Moving to credit quality. Slide 11 contains a summary of several key credit metrics and highlights. The purchase accounting considerations are obviously a big piece of the credit story for the quarter. Valerie has already touched on that. In addition to the previously discussed provision, we reported net recoveries of $4.8 million or 8 basis points of net loans and leases annualized for the quarter, which marks the third consecutive quarter of reported net recovery. On a combined basis, the bank's nonperforming loans declined to $38.4 million or 20% during the quarter, bringing period-end NPLs to net loans and leases to 57 basis points. Combined, nonperforming assets declined $42.3 million or 18% during the quarter, with period-end NPAs to total assets at 39 basis points. Nonperforming assets as a percentage of total assets have declined from 55 basis points of total assets to 39 basis points of total assets year-over-year. Additionally, on a combined basis, classified assets declined 15% in the fourth quarter and nearly 40% in the past year. This credit story is a good one and one of continued improvement.

轉向信用品質。投影片 11 包含幾個關鍵信用指標和亮點的摘要。採購會計考慮顯然是本季信用故事的重要組成部分。瓦萊麗已經談到了這一點。除了先前討論的撥備之外，我們還報告了本季年化淨貸款和租賃淨回收額為 480 萬美元，即 8 個基點，這標誌著連續第三個季度實現淨回收。綜合來看，本季該銀行的不良貸款下降至 3,840 萬美元，即 20%，使期末不良貸款與淨貸款和租賃之比下降至 57 個基點。本季不良資產總計減少 4,230 萬美元，或 18%，期末不良資產與總資產比率下降 39 個基點。不良資產佔總資產的比例年從總資產的55個基點下降至總資產的39個基點。此外，綜合來看，第四季分類資產下降了 15%，去年下降了近 40%。這個信用故事是一個很好的故事，也是一個持續改進的故事。

Slide 18 provides a 5-quarter look at our results for our insurance and mortgage products. Insurance reported total commission revenue of $32.6 million. And while the fourth quarter is the seasonally adjusted lowest revenue quarter from a policy renewal cycle standpoint, this is now the third consecutive quarter that we've reported near double-digit revenue growth on a percentage basis compared to the comparable quarter of the prior year.

幻燈片 18 提供了我們的保險和抵押貸款產品的 5 個季度業績。保險報告總佣金收入為 3,260 萬美元。雖然從保單續保週期的角度來看，第四季度是經季節性調整後收入最低的季度，但與去年同期相比，這已是我們連續第三個季度報告百分比收入增長接近兩位數。

Mortgage reported origination volume of $818 million for the quarter, with 2/3 of this being purchase month. Pipeline declined compared to September 30, which is consistent with annual seasonal trends in home prices activity, as well as we view the impact of increasing long-term rates. However, we are excited about the addition of some very strong housing markets in Georgia and Florida to our footprint in connection with the merger.

Mortgage 報告本季的發放量為 8.18 億美元，其中 2/3 是購買月。與 9 月 30 日相比，待售項目有所下降，這與房價活動的年度季節性趨勢一致，也與我們認為長期利率上升的影響一致。然而，我們很高興看到喬治亞州和佛羅裡達州一些非常強勁的房地產市場加入了我們與合併相關的足跡。

I should also mention our wealth and trust revenue for the quarter of $16.4 million, reflecting the addition of Linscomb & Williams and the legacy Cadence Trust and Investment Services. We are very excited about the addition of these quality fee businesses to our wealth product mix.

我還應該提到我們本季的財富和信託收入為 1,640 萬美元，反映出 Lincomb & Williams 和傳統 Cadence Trust and Investment Services 的增加。我們對將這些品質費用業務添加到我們的財富產品組合中感到非常興奮。

I will turn the call over to Hank for some comments on the commercial side of the bank. But before I do, yes, Paul, we like you.

我會將電話轉給漢克，徵求一些有關銀行商業的評論。但在此之前，是的，保羅，我們喜歡你。

Thanks, Chris. As previously mentioned, we are seeing a meaningful resurgence of organic loan growth with a number of nice wins on the commercial side of the bank, supported by continued good volumes in our loan approval pipeline.

謝謝，克里斯。如前所述，我們看到有機貸款成長出現有意義的復甦，銀行在商業方面取得了許多不錯的成果，這得益於我們貸款審批管道持續良好的數量。

About 2/3 of the organic growth this quarter was driven by broad-based growth in our C&I, CRE, mortgage and consumer buckets. We have good pipelines, and originations in construction and development loans will provide a nice tailwind for growth in 2022 as these construction loans fund over time. As we turn our focus to 2022, we are seeing balanced opportunities with regards to loan growth throughout our footprint and within our specialty lending groups. I would anticipate a combined portfolio growth rate in the mid-single digits and would suggest it's a nice feeling to see growth resuming.

本季約 2/3 的有機成長是由我們的 C&I、CRE、抵押貸款和消費者領域的廣泛成長所推動的。我們擁有良好的管道，隨著這些建設貸款隨著時間的推移而籌集資金，建築和開發貸款的發放將為 2022 年的成長提供良好的推動力。當我們將重點轉向 2022 年時，我們在整個業務範圍和專業貸款集團內看到了貸款成長的平衡機會。我預計組合投資組合成長率將達到中個位數，並表示看到成長恢復是一種很好的感覺。

As we've said in the past, we are very proud of the team we have in place, and I'm very pleased with our ability to retain such highly experienced competitive bankers as well as our ability to hire and attract new talent across our footprint.

正如我們過去所說，我們對我們現有的團隊感到非常自豪，我對我們留住如此經驗豐富、有競爭力的銀行家的能力以及我們在整個業務範圍內聘用和吸引新人才的能力感到非常高興。

A great example is the addition of our Orlando C&I team. We were able to hire a very talented group of bankers, and I'm pleased to report they have hit the ground running and are off to a great start. We also recently added a community banking team in Fort Worth and are actively seeking additional markets within our footprint to drive revenue growth in future quarters.

奧蘭多 C&I 團隊的加入就是一個很好的例子。我們能夠聘請到一群非常有才華的銀行家，我很高興地報告他們已經開始運作並有了一個良好的開端。我們最近還在沃斯堡增加了一個社區銀行團隊，並正在我們的業務範圍內積極尋找其他市場，以推動未來幾季的營收成長。

In summary, our teams are working well together, actively calling and leveraging our expanded product base as we bring our 2 organizations together. I am very pleased with the progress we have made on the merger, and I'm optimistic about Cadence in 2022.

總之，我們的團隊合作良好，在將我們的兩個組織合併在一起時，積極地調用和利用我們擴大的產品庫。我對我們在合併方面取得的進展感到非常滿意，我對 Cadence 2022 年的表現持樂觀態度。

Operator, our team is now ready to answer any questions.

接線員，我們的團隊現在已準備好回答任何問題。

(Operator Instructions) Our first question comes from Michael Rose with Raymond James.

（操作員說明）我們的第一個問題來自邁克爾·羅斯和雷蒙德·詹姆斯。

Just wanted to go back to the original merger assumptions. Clearly, a lot has changed, and that's reflected in some of the day 1 remarks. You guys have talked about 17% EPS accretion, I think 14% if 75% of the cost savings have changed. But obviously, there's been a lot of changes since mid-April when this was announced. So can you give us any sort of updates for accretion expectations, timing of cost saves any other model inputs that may have changed from -- more materially from mid-April?

只是想回到最初的合併假設。顯然，發生了很多變化，這反映在第一天的一些言論中。你們談到了 17% 的 EPS 成長，如果 75% 的成本節省發生了變化，我認為是 14%。但顯然，自四月中旬宣布以來已經發生了許多變化。那麼，您能給我們提供有關吸積預期的任何更新嗎？

I'll take a stab at that right off of what everybody may want to jump in. When you talk about cost saves, I think we still feel confident that we're on track with what we had planned all along. I think when we look at the timing of all of that, we're still on for 4Q operational integration. That means that those cost saves will -- we will be carrying that cost through most of this year. And in the last quarter of this year, costs will continue -- will begin to drop off in a big way. So as we start 2023, we should really be in pretty good shape. Valerie can answer a lot more of that than I can. So Valerie, go ahead.

我將立即針對每個人可能想要參與的內容進行嘗試。我認為，當我們考慮所有這一切的時間表時，我們仍在進行第四季度的營運整合。這意味著我們將在今年的大部分時間裡承擔這些成本節省。在今年最後一個季度，成本將繼續——將開始大幅下降。因此，在 2023 年伊始，我們的狀態應該會非常好。瓦萊麗能回答的問題比我多得多。所以瓦萊麗，繼續吧。

Yes. Michael. No, I think Dan said it as well, we're really focused on that total expense phase capture for 2023. And as Dan mentioned, with the fourth quarter conversion, that pace is going to be less in the earlier part of 2022 and then more, obviously, once we get through that conversion.

是的。麥可.不，我認為 Dan 也說過，我們真正關注的是 2023 年的總支出階段捕獲。完成了這種轉換。

But that was a part of our original plan.

但這是我們最初計劃的一部分。

Yes, it was, although the dollar amount that we get in 2022, I think will be less than what we actually [accreted] in April.

是的，確實如此，儘管我們在 2022 年獲得的美元金額，我認為將少於我們在 4 月份實際[增加]的金額。

That's right.

這是正確的。

Simply because of the timing of that conversion. On the accretion standpoint, we are looking when you look out in 2022 kind of for the entire company on an updated accretion estimate. That's going to be closer to about a $40 million number. Now that includes the Cadence acquisition as well as the prior acquisitions and doesn't assume any prepaid type of activity on the Cadence portfolio. So as you know, can vary materially from that, but that's really what the new numbers are shaking out to...

只是因為轉換的時機。從成長的角度來看，當你在 2022 年關注整個公司時，我們正在尋找更新的成長估計。這將接近 4000 萬美元左右。現在，這包括 Cadence 收購以及先前的收購，並且不假設 Cadence 產品組合上有任何預付費類型的活動。如您所知，可能與此有很大不同，但這確實是新數字所要改變的...

Okay. That's helpful. And then maybe as a follow-up, it looks like the purchase accounting accretion in this quarter was a little elevated. If I'm reading the press release right, it looks like you got about 78 remaining. Any sort of way that we should be thinking about just the way the accretion income flows in over the next couple of quarters? I assume it's going to be lower just given that $78 million base.

好的。這很有幫助。然後，也許作為後續行動，本季的購買會計成長似乎略有上升。如果我沒看錯新聞稿，看起來您還剩下大約 78 個。我們應該以何種方式考慮未來幾季增加營收的流入方式？考慮到 7800 萬美元的基數，我認為它會更低。

Yes. Yes. I think if you look at the $40 million that I spoke to in 2022, it will actually be fairly balanced in the first 3 quarters and a little bit less in the fourth quarter. And again, that doesn't reflect any prepayment of [entry].

是的。是的。我認為，如果你看看我談到的 2022 年 4000 萬美元，實際上前三個季度會相當平衡，第四季度會稍微少一些。再說一次，這並不反映[入場費]的任何預付款。

Perfect. And maybe finally for me. So big buyback announced. Last month, they're at least bigger than I think where the street was modeling. Can you just talk about how you guys think at this point about intrinsic value? It looks like your stock is around 10x forward numbers and a little bit more expensive on tangible, but it does seem like a good tool here. Can you just talk about the thoughts around the buyback and that size and how it came to be?

完美的。也許最終對我來說。如此大規模的回購宣布。上個月，它們至少比我想像的街道模型還要大。能談談目前你們對內在價值的看法嗎？看起來你的股票大約是遠期數字的 10 倍，而且有形資產的價格要貴一些，但它看起來確實是一個很好的工具。您能談談關於回購的想法和規模以及它是如何形成的嗎？

Yes, I think we've looked -- I think size-wise, it's probably not that far as a percent of shares outstanding as we've had in years past. So when you're looking at shares outstanding, it's a similar cases we've had in years past. And I think our plan has really not changed, Michael. I think we want to take advantage of the market when the market gives us advantages. We want to make sure our 10b5-1 plan is ready to execute when the market backs up on us, and we want to take advantage of all the tools that we have for capital management. You're right, the 10x forward earnings, I think we all agree, those of us that all own shares, which everyone in this room does in a big way, I think that's low. The increase in tangible book value that we saw with the merger in this quarter helps us on that front too per share.

是的，我認為我們已經看到了——我認為從規模來看，它可能不像過去幾年那樣佔已發行股票的百分比那麼高。因此，當你查看已發行股票時，你會發現這與我們過去幾年遇到的情況類似。我認為我們的計劃確實沒有改變，邁克爾。我認為當市場給我們優勢的時候我們就想利用市場。我們希望確保我們的 10b5-1 計劃在市場支持我們時準備好執行，並且我們希望利用我們擁有的所有資本管理工具。你是對的，我想我們都同意，10 倍的預期收益，我們這些都擁有股票的人，在座的每個人都在大力投資，我認為這個水平很低。本季合併帶來的有形帳面價值的增加也對我們每股盈餘有所幫助。

The next question comes from Jon Arfstrom with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的喬恩‧阿夫斯特羅姆 (Jon Arfstrom)。

Maybe one quick follow-up on expenses. Valerie. what's kind of your near term -- what would you give us for a starting point on Q1 expenses? And I understand the step down in Q4, but how would you guide us on the pace of expenses or what we should expect between now and Q4 for the convert?

也許是對費用的快速跟進。瓦萊麗.您的近期計劃是什麼？我理解第四季度的削減，但您將如何指導我們支出的步伐，或者我們從現在到第四季對轉換的期望是什麼？

Yes. So I -- one thing, when you're looking at the fourth quarter numbers, keep in mind that there's only 2 months of Cadence in those numbers. So you've got to try to normalize for that.

是的。所以我——有一件事，當你查看第四季度的數據時，請記住這些數據中只有 2 個月的 Cadence。所以你必須嘗試使其正常化。

The other thing that I would encourage you to think about in the first quarter is there's all the FICA tax, there's the 401(k) match, there's all of those things that typically bump up expenses a little bit in the first quarter. And -- you'll kind of see the reflection of all of that. But beyond that, not a whole lot of change in the first quarter. But as we continue to work toward merging, integrating, identifying efficiencies that is going to be the trend as we work through 2022.

我鼓勵您在第一季度考慮的另一件事是 FICA 稅、401(k) 匹配，所有這些通常會在第一季度略微增加支出。而且——你會看到所有這些的反映。但除此之外，第一季並沒有太大變化。但隨著我們繼續致力於合併、整合和提高效率，這將成為我們在 2022 年工作的趨勢。

That help you?

這對你有幫助嗎？

So no -- yes, it helps. But I guess I'm curious, you're not seeing any kind of material expense pressures now on the conversion? Is that fair?

所以不——是的，它有幫助。但我想我很好奇，您現在沒有看到轉換帶來任何物質支出壓力嗎？這樣公平嗎？

What do you mean by expense pressures?

費用壓力是什麼意思？

Anything unusual other than the compensation-related items that I spoke to? Is that...

除了我談到的與薪酬相關的項目之外，還有什麼不尋常的事情嗎？難道是…

Yes, exactly. I mean can we...

是的，完全正確。我的意思是我們可以...

Oh, yes. We're certainly feeling wage pressure. The whole world is feeling wage pressure. So we're clearly feeling wage pressure. But I think when we look at what's out there today, we're spending money on the integration. The tech team is focused on making sure we've got quality technology behind us. We're actively looking to make sure that we've got our cost saves in the pipeline coming through. I think we're not far off of where we were when we talked about this over the last 6 months.

哦是的。我們確實感受到了薪資壓力。全世界都感受到薪資壓力。所以我們明顯感受到了薪資壓力。但我認為，當我們看看今天的情況時，我們正在花錢進行整合。技術團隊致力於確保我們擁有優質的技術。我們正在積極尋求確保我們能夠實現成本節約。我認為我們與過去 6 個月討論此問題時的情況相差不遠。

Yes. I would say that we do anticipate merger-related expenses to continue throughout the year. And so you'll see us capturing those and identifying those for you definitely.

是的。我想說的是，我們確實預計與合併相關的費用將持續全年。因此，您會看到我們捕獲這些內容並為您明確識別這些內容。

Yes. Yes. The reason I ask is it seems like your revenue environment looks pretty good. I'm just trying to get a gauge on expenses. In terms of the margin, anything you want to do differently from an asset sensitivity perspective? Are you thinking about putting some cash to work? Or is it just you feel comfortable with the status quo, what you have today?

是的。是的。我問這個問題的原因是，你們的收入環境看起來相當不錯。我只是想了解一下開支狀況。就保證金而言，從資產敏感度的角度來看，您想做哪些不同的事情？您是否正在考慮投入一些現金來工作？還是只是你對現狀、你今天所擁有的感到滿意？

Yes. So we put a lot of cash to work in the fourth quarter. Now you don't see that necessarily as a full quarter result because it was throughout the fourth quarter. They're a pretty short-term assets. So it's pretty low, but it's certainly better than 0.

是的。因此，我們在第四季度投入了大量現金。現在您不一定將其視為整個季度的結果，因為它是整個第四季度的結果。它們是相當短期的資產。所以它相當低，但肯定比 0 好。

I will say when you start thinking about the margins, the net loan growth is certainly opportunistic. We're not looking to build the securities book beyond where it is today. In fact, some of that runoff cash flow could actually help fund some of those loans. And obviously, that's NIM supportive.

我想說，當你開始考慮利潤率時，淨貸款成長肯定是機會主義的。我們並不打算將證券帳簿建設得超出目前的水平。事實上，部分徑流現金流實際上可以幫助為其中一些貸款提供資金。顯然，這是 NIM 的支持。

The other thing I would say is our deposit cost, while they've come down notably, do tend to be higher than some of our peers. And so there is opportunity there as rates go up to be able to lag those deposit costs. And so in the release, we talked about an asset sensitivity plus 100 of just shy of 3%. If we're able to lag those deposit costs 50%, we anticipate that, that plus 100 shock number could actually more than double. So there's definitely opportunity there that we're going to be looking more at.

我要說的另一件事是我們的存款成本，雖然已顯著下降，但確實往往高於我們的一些同行。因此，隨著利率上升，就有機會落後於存款成本。因此，在新聞稿中，我們討論了資產敏感性加 100，接近 3%。如果我們能夠將這些存款成本落後 50%，我們預計，加上 100 的衝擊數字實際上可能會增加一倍以上。因此，我們肯定會更關注其中的機會。

Our next question comes from Catherine Mealor with KBW.

我們的下一個問題來自 KBW 的 Catherine Mealor。

Valerie, you mentioned that you already put some of your cash to work in the fourth quarter, and you noted some of what you did was very short term in nature. So is there a way to think about how quickly your security portfolio or cash flow would be able to be reinvested once we get to a higher rate environment in the next couple of quarters? And maybe with that reinvestment does, yes.

瓦萊麗，您提到您已經在第四季度投入了一些現金，並且您指出您所做的一些事情本質上是非常短期的。那麼，有沒有一種方法可以考慮，一旦我們在接下來的幾個季度進入更高的利率環境，您的證券投資組合或現金流能夠以多快的速度進行再投資？也許透過再投資確實如此，是的。

(inaudible) in relation to the portfolio?

（聽不清楚）與投資組合有關？

Yes. And what -- and how that's going to impact also that 3% NII guided 100 basis point up scenario. It feels like as that buying book is reinvested, that's really a big opportunity for you. Just any kind of color you can give us on that would be awesome.

是的。以及這將如何影響 3% NII 引導的 100 個基點上漲情境。感覺就像購買的書被重新投資一樣，這對你來說確實是一個很大的機會。只要你能給我們任何一種顏色，那就太棒了。

Yes, absolutely. There's a -- between 3.5- and 4-year duration on the portfolio. But of course, there's a lot of cash flow on that, that comes through every quarter. I'm not sure I have the updated numbers, but I think it's well north of $0.5 billion in cash flow that comes off of that portfolio.

是的，絕對是。投資組合的期限在 3.5 年到 4 年之間。當然，每季都會產生大量現金流。我不確定我是否有更新的數字，但我認為該投資組合產生的現金流遠遠超過 5 億美元。

Big number.

大數字。

Yes. And so that absolutely will certainly help. That is factored into some of these NII numbers. But what's not factored in is, as I mentioned, is if we're able to use some of that to help fund some of the loan growth, that may provide us a little bit more pickup as well.

是的。所以絕對會有幫助。這已被納入其中一些 NII 數字中。但正如我所提到的，沒有考慮到的是，如果我們能夠利用其中的一些資金來幫助為部分貸款成長提供資金，這也可能為我們帶來更多的回升。

And as we think about a starting point for the margin next quarter with the full quarter impact of Cadence, is -- I mean you've got kind a few moving parts, right? You've got a full quarter impact of the lower loan yield, but then you look like you put some of the liquidity to work. Did you think net your core margin falls further in the fourth quarter or the first quarter? Or do you think actually we've already hit a bottom and that'll start to move higher next quarter?

當我們考慮下個季度利潤率的起點以及 Cadence 對整個季度的影響時，我的意思是，你有一些活動部件，對吧？貸款收益率下降對整個季度都有影響，但看起來你已經投入了部分流動性。您認為第四季或第一季的淨核心利潤率是否會進一步下降？或者您認為實際上我們已經觸底並且下個季度會開始走高？

Remember, most of the investments that we're talking about came on really from late November through December. So you really only had a month of some of that cash deployed in the numbers, and Valerie is going to tag on to that one.

請記住，我們談論的大多數投資實際上是從 11 月下旬到 12 月進行的。所以你實際上只用了一個月的數字來部署這些現金，而瓦萊麗將緊隨其後。

Yes. Yes. No, I mean, obviously, there are a lot of moving parts that can go different directions. But we do feel pretty good that we're -- we've probably hit a bottom for our margin. And so I think that's both positive for 2022.

是的。是的。不，我的意思是，顯然，有很多移動部件可以朝不同的方向移動。但我們確實感覺很好，我們的利潤可能已經觸底。所以我認為這對 2022 年都是正面的。

And beyond.

甚至更遠。

And beyond.

甚至更遠。

Our next question comes from Brad Milsaps with Piper Sandler.

我們的下一個問題來自布拉德·米爾薩普斯和派珀·桑德勒。

Valerie, I just wanted to follow up on the deposit beta discussion. I was curious, what deposit beta are you guys using to drive the 2.8% increase in net interest income with 100 basis point move?

瓦萊麗，我只是想跟進存款測試版討論。我很好奇，你們用什麼存款貝塔值來推動淨利息收入在 100 個基點變動的情況下成長 2.8%？

It's a 28% deposit beta. And that, again, is really based on historical behavior. Never in -- I think either one of our histories have we had this low at the loan deposit ratio in this [flush] with our deposits and cash for the whole industry. And so that is why we speak to some optimism and being able to lag some of that on the way up, hopefully, more favorably than the beta that we've got built in.

這是 28% 的存款貝塔。再說一遍，這確實是基於歷史行為。我認為，在我們的歷史中，我們的貸款存款比率從來沒有這麼低過，整個行業的存款和現金都如此低。因此，這就是為什麼我們持樂觀態度，並且能夠在上漲過程中滯後一些，希望比我們內建的測試版更有利。

Okay. Great. And then I know you addressed some of the assumptions back in April to now. One of them was, I think, just under a 15% ROTCE in 2022. Curious if that contemplated as much capital return as you guys could potentially have in terms of the share buyback? And if you still feel pretty good about that ROTCE target this year?

好的。偉大的。然後我知道你從四月到現在就提出了一些假設。我認為其中之一是 2022 年的 ROTCE 略低於 15%。您是否仍然對今年的 ROTCE 目標感覺良好？

Yes, I don't think that we have any suggested significant revision to that estimate.

是的，我不認為我們對這項估計有任何重大修改建議。

Okay. And then finally, I think initially, you outlined maybe $150-some-odd million of merger cost. I know you've taken maybe 1/3 of those at Cadence today, some at legacy Cadence. Is that also still a pretty good estimate? Or do you think you can do better?

好的。最後，我想最初您概述了可能 150 多萬美元的合併成本。我知道您今天可能已經在 Cadence 學習了其中的 1/3，還有一些是在舊版 Cadence 學習的。這仍然是一個很好的估計嗎？或者你認為你可以做得更好？

Yes. I think that one is going to be hard because some of that was incurred pre-closing on the Cadence side. I don't know whether we have that number for you. We will incur some significant merger costs over the back half of this year or the first 3 quarters of this year. Remember, the big number that was in this time was a lot of the closing cost -- comp cost.

是的。我認為這會很困難，因為其中一些是在 Cadence 方面在關閉之前發生的。我不知道我們是否有這個號碼給你。我們將在今年下半年或今年前三個季度承擔一些重大的合併成本。請記住，這次的大數字是大部分結算成本——補償成本。

And advisory fees, legal fees.

還有諮詢費、律師費。

The onetime cost, yes.

一次性成本，是的。

Yes.

是的。

Got it. So the remainder still to come? I think legacy Cadence maybe took $14 million or so, maybe prior to closing, something like that. But -- so those are still to come?

知道了。那麼剩下的部分還沒到來嗎？我認為遺留的 Cadence 可能花費了 1400 萬美元左右，也許在關閉之前，類似的事情。但是──那麼這些還會到來嗎？

I think that's a reasonable expectation.

我認為這是一個合理的期望。

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

下一個問題來自 D.A. 的 Kevin Fitzsimmons。戴維森。

Dan, I just wanted to ask about, obviously, the focus is going to be on getting the conversion and getting the 2 companies working in lockstep. And so I would assume traditional bank deals are off the table for the -- most likely over the balance of this year. And so just wanted to check if '23, is that something that you would return to look at? And then -- but in the meantime, are there any business line deals, things you either don't have or you would want much more of that you would look for that you could do in the meantime?

丹，我只是想問，顯然，重點是實現轉型並讓兩家公司步調一致。因此，我認為傳統的銀行交易很可能在今年餘下的時間裡都不會被考慮。所以只是想檢查一下“23”是否是您會回來看的東西？然後，但與此同時，是否有任何業務線交易，您要么沒有，要么想要更多您可以同時做的事情？

Sure. I appreciate that. I think that a couple of answers to that question. Yes, so I think our operations team is very focused on putting together the 2 entities. I think you see some of that with unveiling yesterday of the new look. I think Hank, Chris and Paul and the rest of us are all really excited that we're able to produce the loan growth that we produced in the fourth quarter on top of completing the merger. And I think sometimes, we look back at the mergers and there aren't a whole lot that grow a lot in the quarter when a merger is completed. So I'm really proud of the team on that front.

當然。我很欣賞這一點。我認為這個問題有幾個答案。是的，所以我認為我們的營運團隊非常專注於將這兩個實體整合在一起。我想你從昨天發布的新外觀中就可以看到一些內容。我認為漢克、克里斯和保羅以及我們其他人都非常興奮，因為我們能夠在完成合併的基礎上實現第四季度的貸款成長。我認為有時，我們會回顧合併，並沒有在合併完成後的季度內大幅成長。所以我為這方面的團隊感到非常自豪。

We've got to stay focused on the core growth that this company can produce for you all. I think that the M&A activity, you never say never, but I don't see that as a high likelihood anytime soon on the bank side. But fee income side, we continue to look for opportunities on the insurance side. We continue to look for opportunities in other fee businesses that would complement what we're doing today.

我們必須專注於這家公司可以為你們所有人帶來的核心成長。我認為併購活動永遠不會說永遠，但我不認為銀行方面很快就會出現這種情況。但在費用收入方面，我們繼續在保險方面尋找機會。我們繼續在其他收費業務中尋找機會，以補充我們今天所做的事情。

One of the things we picked up with the merger was the payroll processing entity that was a subsidiary of Cadence before. That entity is exciting for our insurance team, and that's a product the insurance team was selling and pushing a third-party vendor for, and now we can move some of that inside. So there's opportunities for us to continue to find those fee business pieces. Now whether they show up at the front door or not this year, I don't know, but we certainly would be interested in looking at some of those because they don't impact the workflow and the process that the bank is focused on and consolidating together.

我們在合併中獲得的好處之一是薪資處理實體，它以前是 Cadence 的子公司。該實體對我們的保險團隊來說是令人興奮的，這是保險團隊正在銷售並推動第三方供應商購買的產品，現在我們可以將其中的一些轉移到內部。因此，我們有機會繼續尋找這些收費業務。現在，他們今年是否會出現在前門，我不知道，但我們肯定有興趣關注其中的一些，因為它們不會影響銀行關注的工作流程和流程，鞏固在一起。

Okay. Great. And just a quick follow-up. The ACL ratio, I know it was a noisy quarter with the day 1 provision. But now with that, I believe it's a 1.66x PPP. Just wondering what your feeling is on that. I would think that, that can still trend down if the credit environment keeps where it is, but what's the general outlook there?

好的。偉大的。只是快速跟進。 ACL 比率，我知道這是一個吵雜的季度，第一天的規定。但現在，我相信它是 1.66 倍的 PPP。只是想知道你對此有何感想。我認為，如果信貸環境維持現狀，這一趨勢仍可能下降，但整體前景如何？

The credit environment is very good. And I think when you look at the 2 stand-alone entities, I mean, showing net recoveries in the quarter is a positive multiple quarters of net recoveries. We continue to see problem assets decline. I think your assumptions are probably spot on. Valerie or Chris or Hank, anybody else want to jump in?

信用環境非常好。我認為，當你查看這兩個獨立實體時，我的意思是，顯示本季的淨復甦是淨復甦的正數多個季度。我們繼續看到問題資產減少。我認為你的假設可能是正確的。瓦萊麗、克里斯或漢克，還有其他人想加入嗎？

I think your observations are spot on.

我認為你的觀察是正確的。

Yes, I'd agree. A lot of moving parts. Loan growth could be a factor the other way. So I think we've got to look at all those every quarter like we always...

是的，我同意。很多活動部件。貸款成長可能是另一個因素。所以我認為我們必須像往常一樣每個季度都會審視所有這些...

(Operator Instructions) Our next question comes from Matt Olney with Stephens.

（操作員說明）我們的下一個問題來自馬特·奧爾尼和史蒂芬斯。

My question is directed towards Valerie. I'm a little confused on the 100 basis point shock scenario that you mentioned. It's disclosed at the 2.8% on Slide 6, but you mentioned a scenario where it could be higher. Can you just repeat what that scenario is and what the assumptions are?

我的問題是針對瓦萊麗的。我對你提到的 100 個基點衝擊情景有點困惑。在第 6 張投影片中揭露的比率為 2.8%，但您提到了一種可能更高的情況。您能否重複一下該場景是什麼以及假設是什麼？

Yes. So what I was speaking to there is included in that 2.8% is a deposit beta of 28%. And so if -- given the industry significance on deposits, if the whole industry is able to lag and that we're able to lag and if we're able to cut that beta in half, that would more than double that asset sensitivity. So that's just -- I was just sharing that as an illustration of the ability that we are going to be working toward within the year to hopefully improve that.

是的。所以我所說的 2.8% 是指 28% 的存款貝塔值。因此，如果考慮到存款行業的重要性，如果整個行業能夠滯後，並且我們能夠滯後，並且如果我們能夠將貝塔值降低一半，那麼資產敏感性將增加一倍以上。所以這只是——我只是分享這一點，以說明我們將在一年內努力提高這一能力。

The liquidity in the market, everybody's deposit flush today. So I don't think anybody is going to be chasing deposit cost anytime soon. And the benefit of that should be a win for us.

今天市場流動性充足，大家的存款都充裕。因此，我認為短期內不會有人會追求存款成本。這樣做的好處應該是我們的勝利。

The other thing that I would mention related to that asset sensitivity is if you look at this quarter's $400 million in organic loan growth, about 2/3 of assets were C&I-related loans that tend to be more variable floating rate loans. Over time, that will also serve to increase the overall asset sensitivity of the balance sheet.

我要提到的與資產敏感性相關的另一件事是，如果你看看本季4 億美元的有機貸款成長，大約2/3 的資產是與工商業相關的貸款，這些貸款往往是浮動利率貸款。隨著時間的推移，這也將有助於提高資產負債表的整體資產敏感度。

And also on this topic, Valerie, you mentioned a percent of the loans that are floating? Can you speak to any floors, I guess, that would impede the float initially when the Fed raises rates?

在這個主題上，瓦萊麗，您提到了浮動貸款的百分比？我猜您能談談聯準會升息時最初會阻礙浮動的任何下限嗎？

Yes. We've got just over 25% of the portfolio that is on floors.

是的。我們的投資組合中有超過 25% 是在場內的。

We've got to have a rate hike but with no change for those.

我們必須升息，但沒有任何改變。

Yes. Yes. And the average in the floor amount is just around 40 basis points. So it will take a little bit of a rate hike movement before those loans specifically start to reprice.

是的。是的。平均下限金額僅約 40 個基點左右。因此，在這些貸款開始重新定價之前，需要進行一些加息。

And just to clarify, that 25% of the floating rate loans or of the variable rate loan?

澄清一下，25% 是浮動利率貸款還是浮動利率貸款？

That is 25% of the total loans.

佔貸款總額的25%。

Total portfolio.

總投資組合。

Total loans. Got it. And then on Slide 10, there was a mention of some deposit outflows from some routine volatility of municipal accounts. Any more color on this? And should we think about this as seasonal? We could see this come back at some point?

貸款總額。知道了。然後在投影片 10 中，提到了市政帳戶的一些常規波動導致一些存款流出。這個還有什麼顏色嗎？我們應該將其視為季節性嗎？我們可以看到這種情況在某個時候回來嗎？

So I think when you're looking at deposit flows from a municipality standpoint, taxes at year-end, you can see a lot of money moving in the fourth quarter and the first quarter. So yes, I think you'll continue to see some swings in the deposits quarter-to-quarter, and that is seasonal when you're looking at municipal deposits.

因此，我認為，當你從市政當局的角度來看存款流量和年末稅收時，你可以看到第四季和第一季有大量資金流動。所以，是的，我認為您將繼續看到存款按季度出現一些波動，當您查看市政存款時，這是季節性的。

Okay. And then just lastly, any color on the -- what we should be assuming for the tax rate of the combined company into 2022?

好的。最後，對於 2022 年合併後公司的稅率，我們該假設什麼？

Yes. We're looking at an estimated rate for 2022 of between 23% and 23.5%.

是的。我們預計 2022 年的成長率將在 23% 至 23.5% 之間。

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

問答環節到此結束。我想將會議轉回給丹·羅林斯（Dan Rollins）發表閉幕詞。

All right. Thank you very much. In closing, what an exciting time it is to be a part of the new Cadence Bank. Our new logo unveiled yesterday is the first step in 2022 of our rebranding initiative and provides our company the opportunity to tell our story across our footprint. We're also pleased to be able to reward our shareholders with an increased dividend for 2022. As we move further into 2022, we continue to strive daily to grow our company and to capitalize on the opportunities this merger provides to improve financial performance for our shareholders. As we just mentioned earlier, our insurance team had a record year, and they look to continue to capitalize on the firm premium markets that the industry is experiencing.

好的。非常感謝。最後，成為新 Cadence Bank 的一員是多麼令人興奮的時刻。我們昨天推出的新商標是我們 2022 年品牌重塑計畫的第一步，為我們公司提供了在足跡中講述我們故事的機會。我們也很高興能夠透過增加 2022 年的股息來回報我們的股東。正如我們之前提到的，我們的保險團隊取得了創紀錄的一年，他們希望繼續利用該行業正在經歷的穩定保費市場。

Our noninterest revenue business units, mortgage, wealth management, treasury management are excited about the opportunities ahead of them as they take advantage of the cross-selling opportunities presented by our merger. From a business development standpoint, our relationship managers, both in the Community Bank and our commercial units, look to continue the momentum that's reflected in our fourth quarter organic growth results.

我們的非利息收入業務部門、抵押貸款、財富管理、資金管理部門對擺在他們面前的機會感到興奮，因為他們利用了我們合併帶來的交叉銷售機會。從業務發展的角度來看，我們社區銀行和商業部門的客戶經理都希望繼續保持第四季度有機成長表現所體現的勢頭。

Finally, our operational support teams will maintain their focus on our operational integration and execution as well as our efficiency initiatives as we look to capitalize on the cost savings associated with the merger. I think I speak for our entire Board of Directors and our management team when I say we are truly excited about what lies ahead for us for the new Cadence and the opportunity that we have to continue to build shareholder value both legacy institutions have achieved in the past.

最後，我們的營運支援團隊將繼續專注於我們的營運整合和執行以及我們的效率計劃，因為我們希望利用與合併相關的成本節約。當我說我們對新 Cadence 的未來以及我們必須繼續創造股東價值的機會感到非常興奮時，我想我代表了我們整個董事會和我們的管理團隊。

Adding on to Paul's comments, I've been a banker for over 40 years, and I can't remember a time in my career when I was more excited about the opportunities in front of us. Strong markets with dedicated teammates and quality products provide our company with a very bright future. Thank you all for joining us today. If you have additional questions, please feel free to reach out to us. Thank you very much for your time.

補充 Paul 的評論，我已經做了 40 多年的銀行家，在我的職業生涯中，我不記得什麼時候讓我對眼前的機會感到更加興奮。強大的市場、敬業的團隊和優質的產品為我們公司提供了非常光明的未來。感謝大家今天加入我們。如果您還有其他問題，請隨時與我們聯絡。非常感謝您抽出時間。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。