Q4 2024 Ameris Bancorp Earnings Call
Thank you Wyatt and thank you to all who have joined our call today during the call we will be referencing the press release and the financial highlights that are available on the Investor Relations section of our website at <unk> Dot Com I'm joined today by Palmer Proctor, our CEO and Dev Strange our Chief Credit Officer Palmer will begin with some opening general comments and then I would.
Speaker Change: It's got the details of our financial results before we open up for Q&A before we begin I'll remind you that our comments may include forward looking statements. These statements are subject to risks and uncertainties. The actual results could vary materially we list some of the factors that might cause results to differ in our press release and in our SEC filings.
Speaker Change: We are available on our website, we do not assume any obligation to update any forward looking statement as a result of new information early developments or otherwise except as required by law also during the call. We will discuss certain non-GAAP financial measures in reference to the company's performance you can see a reconciliation of these measures and GAAP financial measures.
Palmer: In the appendix to our presentation and with that I'll turn it over to Palmer.
Palmer: Nicole and good morning, everyone. I appreciate you taking the time to join the call I'm very pleased with our top tier fourth quarter financial performance, which we reported yesterday as well as our exceptional full year 2024 results before diving into the fourth quarter performance I'd like to emphasize our full year 2024 achievements, reflecting on both.
Palmer: Our core profitability and strong balance sheet management, which positions us well for 2025. This year, we grew earnings per share, notably so our adjusted ROA increased to north of 130, built our reserve and strengthen our capital base with our tangible common equity ratio now well over 10% up almost 100.
Palmer: Basis points over 2023, we also grew deposits by 5%, while reducing broker deposits for the fourth quarter. Our profitability remained robust with an adjusted ROA of $1 43 above peer or P. P and our ROA of over 2% and a return on tangible common equity of over 14%.
Our fourth quarter margin was $3 64, with our net interest income continuing to increase this strong margin resulted from our granular core deposit base and 30% DDA composition expense control remains intact as our adjusted efficiency ratio improved over 240 basis points this quarter to under <unk>.
Palmer: 52%, we continue to focus on maximizing earnings per share through effective balance sheet management, we grew revenue almost 10% annualized creating positive operating leverage.
Palmer: We maintained our average earning asset strategically reduced our CRE and construction concentrations and lowered our loan to deposit ratio all while growing margin in this rate environment organic capital generation remains a strength with common equity tier one at 12, 6%, thereby giving us optionality going forward.
Palmer: To execute strategies within our high growth southeastern footprint, our allowance for credit losses ended the year at a healthy $1 63, and we remain focused on growing tangible book value per share as evidenced by our 14, 7% growth for the year.
Palmer: As we head into 2025, our strategic focus remains on maintaining top tier profitability enhancing revenue generation and positive operating leverage sustained and strong capital position and leveraging growth opportunities within our dynamic footprint.
Palmer: The outlook is bright as we head into 2025 and we appreciate the continued support of all of our stakeholders and I'll stop there and then I'll turn it over to Nicole to discuss our financial results in more detail.
Nicole: Palmer for the fourth quarter, we reported net income of $94 4 million or $1 37 per diluted share. We did incur a fear a few one time in nature items in the quarter, but excluding those small items. Our adjusted net income was $95 1 million or $1 38 per diluted share.
Nicole: For the full year 2024, we reported net income of $358 7 million or $5 19 per diluted share on an adjusted basis net income was $346 6 million or $5.02 per diluted share that's about a 26% increase in year over year adjusted EPS.
Nicole: Our full year adjusted ROA was 133 and our full year adjusted our TCE was 13 93.
Nicole: All of which improved from our 2023 level and our P. P. N R. R. L. A remains strong at two five for the year.
Nicole: We continue to build capital in 'twenty 'twenty, four with ending tangible book value of 38 59 per share, which is a $4 95 or 14, 7% increase from the $33 64 at the end of last year.
Nicole: The fourth quarter increase along with $1 eight and also we increased our quarterly dividend, 33% from 15 cents a share to 20 cents a share this quarter.
Nicole: Our tangible common equity ratio increased 10.59 at the end of the quarter compared to $10 24 at the end of last quarter and 964 at the end of last year.
Nicole: We did not repurchase any stock this quarter, but we did repurchase about $5 million in the full year 2024, and our $100 million buyback authorization remains in place through October we're at 25.
Nicole: Our net interest income increased to $7 7 million this quarter, our margin expanded 13 basis points to 364 from 351 last quarter.
Nicole: Expansion, partially came from an inflow of public fund deposits that we used to reduce higher cost wholesale funding that dynamic will be reversed when those public funds seasonally decline in the first half of the year and also with the recent fed cut rates. We've had great success in lowering our deposit cost more than the decline in our loan yields which benefited the margin.
Nicole: We continue to be close to neutral asset liability sensitivity on.
Nicole: On the capital side during the quarter, we redeemed $105 8 million of sub debt. This redemption is going to save us about one to two basis points of margin in 2025 versus if we had kept it because the rate reset would've been about 300 basis points higher even with this redemption. Our total risk based capital was strong at 15, 4%.
Nicole: Which was about 90 basis points higher than it was last year.
Nicole: During the fourth quarter, we recorded a $12 $8 million provision for credit losses, increasing our coverage ratio to 1.63% of loans and improving to 313% of portfolio Npls.
Nicole: Our total nonperforming assets as a percentage of assets remained low at 47 basis points and our charge offs were stable again this quarter at 17 basis points compared to 15 basis points last quarter and for the year, we were at 19 basis points.
Nicole: Adjusted noninterest income increased $4 million this quarter, mostly in the gains on sale of SBA loans within our mortgage division does mortgage volumes and our gain on sale grew in the quarter and our gain on sale rebounded to 240 from 217 last quarter, we did a great job controlling expenses in the quarter. When you look at it our adjusted total.
Nicole: Revenue increased nine 8% annualized while our expenses shrank, 1.9%, giving us positive operating leverage where our adjusted efficiency ratio improved to 51.82 for the quarter. There was about a 700000 or decrease in adjusted noninterest expense and it mostly came from lower data processing advertising and marketing spend.
Nicole: For the year, our adjusted efficiency ratio was $53 eight eight well within our targeted two to <unk>, 52% to 55% range.
Nicole: On the balance sheet side, we ended the quarter with total assets of $26 3 billion compared with $25 2 billion at the end of last year and our average earning assets were up to $24 4 billion up from $23 2 billion a year ago.
Nicole: Loan balances declined slightly during the quarter, reflecting the seasonality in our mortgage warehouse and premium finance businesses as well as accelerated average paydowns in our CRE book. However, the average balance of total loans during the quarter was roughly stable as higher loans held for sale offset the slightly down portfolio alone.
Nicole: Total loan production in the fourth quarter was $1 8 billion the highest we've seen in the past two years and many of these lines will fund in future quarters.
Nicole: We strategically reduced our broker deposits by about 832 million and grew core deposits by $675 million or over 3% during the quarter.
Nicole: That growth included about $550 million of our cyclical municipal deposits that will run back out during early 2025 for.
Nicole: For the year 2020 for deposits increased about $1 billion or almost 5%, while we reduce broker deposits by $340 million, our noninterest bearing deposits still represent a healthy 30% of total deposits and our brokerage Cds represent less than 5% of total deposits.
Nicole: We continue to anticipate 2025, the loan and deposit growth in the mid single digit and expect that deposit book grows we will continue to be the governor on loan growth.
Speaker Change: I just want to close by reiterating how well positioned we are and how focused we are on a successful 2025 and with that I'm going to wrap the call back over to why it and for any questions from the group.
Nicole: Thank you bye.
Speaker Change: Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys.
Speaker Change: At any time your question has been addressed and we would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Catherine Mealor: And our first question will come from Catherine Mealor with K VW. Please go ahead.
Catherine Mealor: Thanks, Good morning.
Speaker Change: Good morning Catherine.
Speaker Change: I wanted to start with the margin expansion was so great to see this quarter does it cause production deposit costs are what's really in process.
Speaker Change: Wanted to ask you about your outlook for the margin this year Nicole yeah.
Speaker Change: I know, you're you're right neutral and so I guess, depending on what happens with rates. It feels like kind of a stable margin feels like the best way to model it but you're coming in from a higher level. So just kind of curious how you're thinking about if theres any additional opportunities to actually increase the margin from here over the course of 'twenty five.
Speaker Change: Sure So you're exactly right at the end of last quarter or the call last quarter I kind of guided we were at a $3 51 margin and I guided listen anything above $3 50, we were pleased with and we kind of saw two to three basis point, maybe have some some expansion and then we come out with 14 basis points of expansion, but what I want to emphasize is that focus on them.
Speaker Change: What caused that expansion and 10 basis points of that expansion was really related to them. Some things that are going to come back. So we had seven basis points of that margin expansion that was coming from the deposit in the funding mix from those public funds coming in and paying off the wholesale so as those public funds roll out and we go back into <unk>.
Speaker Change: Brokered that seven basis point, it is going to come back out of the margin and then we also had three basis points of what I call repricing lag, where we repriced our deposit very quickly after that after the fed cut and our loans are going to catch up to that as soon as the fed pause we knew that our loans, we're going to catch up so I feel like the seven basis point.
Speaker Change: From the funding side and a three basis point from those what I'm, calling repricing lags are gonna come back so that would bring our margin back down to that $3 54 range, which is what I had guided last quarter. So I'm going to take a 10 basis point bump whenever I can but I do think realistically the margin coming in kind of in that $353 55.
Speaker Change: Is is consistent with our previous guidance and still what I'm guiding to you. So again $3 64 was elevated by about 10 basis points.
Speaker Change: What I will say, though kind of expansion going forward notice is our when you look at our production when you look at our loan and deposit production everything that we're putting on it at this point is margin accretive so depending upon if we can continue to grow deposits and we've been there our bankers have been very very successful on the deposit front also keeping.
Speaker Change: Noninterest bearing mix right at 30% had been very very helpful. If you would ask me last year, if we would be able to grow deposits like we did and maintain that 30%. We would've been it was very tough and we did it our bankers stepped up and did it so that has helped as well.
Speaker Change: So those are kind of the headwind the tailwind is going into margin next year.
Speaker Change: Okay. That's helpful. So if we deal with that amount of margin expansion just start at $3 54.
Speaker Change: Everything is exactly.
Speaker Change: Yeah.
Speaker Change: That's great. Okay, and then it sort of seems that your SBA level for for the.
Speaker Change: Very elevated this quarter, which is great just kind of curious what you're thinking about a run rate appropriate run rate for that going into next year also.
Speaker Change: Yeah. So we're looking to model kind of fee income excluding mortgage should take mortgage out because they were there and a little bit different growth rate that fees are going to follow kind of our loan and deposit growth rate as well, so kind of in that 5% to 6%, 5% to 7% fee income increase.
Speaker Change: Right now at this level or.
Speaker Change: With this level of of CS was there anything kind of.
Speaker Change: What did you say elevated this quarter just to be aware of.
Speaker Change: That we have that well you probably say they were kind of pushed to this quarter. It's just that we want to kind of run rate to pull out as they go into the first quarter.
Speaker Change: I appreciate that question because when you really look at kind of just yeah noninterest income remember in the second quarter, we had the MSR sale gain in the third quarter, we had the MSR sale gain and then so it looks kind of flat for the fourth quarter, but we did have the if you take out the noise. If those MSR sales, we did have a bump in the fourth quarter and it really came from our <unk>.
Speaker Change: B a group there was maybe a little bit of elevated there is some of the demand had built up but I think that as a starting run rate is a good spot.
Speaker Change: Okay, Great Alright, Thank you, great ear and great quarter appreciate it.
David Feaster: And the next question will come from David Feaster with Raymond James. Please go ahead.
Speaker Change: Yeah.
Speaker Change: David Your line may be muted.
Speaker Change: Hey, good morning, everybody or you are good morning morning, David sorry about that I just wanted to start on on the production side, it's great to hear I mean, such a such a strong increase.
Speaker Change: How do you think about what drove that right is it is it you're gaining market share you know just your your your team hitting stride.
Speaker Change: I know you guys have added some talent as well or are you seeing a shift in demand just kind of curious what what do you think is driving that increase in origination activity.
Speaker Change: I think it's just a reflection of a consumer sentiment you know.
Speaker Change: Theres a lot more optimism out there I think are more clarity and some folks' minds I think getting you know post election.
Speaker Change: Hopefully provide a little bit of clarity for folks, but a lot of our especially our commercial customers. In particular I think are feeling more optimistic as they look out so and that's reflected.
Speaker Change: Selected obviously in that fourth quarter production. So I feel good about that that run rate and feel good as we look out in our growth markets. So you know as I've always said, we're we're pretty blessed to be where we are in these high growth markets and we're starting to see that optimism reflect that but we have done a good job on the.
Speaker Change: Hiring front.
Speaker Change: So that would be incremental volume on top of what we have.
Speaker Change: I have already generated so when I look out across really all of the verticals are with.
Speaker Change: With the exception of mortgage just driven by the rate environment more so.
Speaker Change: We which could potentially be a tailwind for us depending on what happens with rates on the 10 year, but we feel pretty optimistic about the outlook.
Speaker Change: Okay. That's helpful. And then I mean to that point I mean, how how do you think about the pace of growth. It sounds like you know optimism is improving we've got an incremental production. Obviously, we had some elevated payoffs this quarter. How do you think about growth as we look out to 2025.
Speaker Change: Well you know in our situation, we're pretty conservative as you know and so where we're focused more on controlled growth I do not think that you know.
Speaker Change: Until until we kind of get moving forward in this in this new environment, we'll figure out where that goes but the nice thing is is we're positioned to two accelerated or to maintain what we've got so and then the nice thing too about the diversification within our our balance sheet is as having the ability to optimize margin versus.
Speaker Change: Just driving growth for the sake of growth. So when you look at asset mix or duration risk profiles, we're able that's really what we focused on the last two years, especially in an environment, where the yield curve was inverted. So I think as we look out given the different levers we can pull we feel pretty bullish about our ability to deliver on.
Speaker Change: Especially on our EPS growth.
David Feaster: That's great and then on the other side of it right I mean, nichole you alluded to the strength and the expense control that you guys have done you know we've got pretty good visibility into the revenue growth right. Just just given the accelerating loan growth and some.
Speaker Change: Stability in the margin to digital expansion.
Speaker Change: Because everything's pretty accretive I'm just curious how do you think about expense growth next year is there opportunity to potentially bring forward. Some expenses as you continue to invest I mean, we got the new hires that we talked about I'm. Just curious how you think about expenses and your ability to drive positive operating leverage in 2025.
Speaker Change: Yeah, that's a great point, so I think when you look at kind of consensus expenses I think for the year. They look very reasonable right now I think there isn't about about a 4.5% to 5% increase I think there are a little bit light in the first quarter I think when you know we always have some cyclical payroll that comes in the first quarter with everybody.
Speaker Change: Resetting FICA and four one K matches and all of that so I think on the first quarter. When I look at consensus might be a little bit light, but I think for the year four 4.5% to 5% growth in expenses is exactly spot on for consensus I think just the first quarter, we need to shift a little bit into the first quarter and out of kind of the the third and fourth.
Speaker Change: But I think the year to date is right.
Speaker Change: And.
Speaker Change: And David you know one of the things that we.
Speaker Change: We do this.
Speaker Change: Different from others, I don't know, but we hired 24 bankers for instance, commercial bankers.
Speaker Change: This year, especially here and we also cold 24 bankers.
Speaker Change: And I think the mistake a lot of folks make is bringing on additional production folks to to compensate for deficiencies of lack of production from others and all you do is just add that that.
Speaker Change: To your run rate on your expense side, we've always been pretty consequential and so we.
We brought in 'twenty, four and we eliminated 24, and when you kind of have that approach to things.
Speaker Change: Laos us to keep the expenses under control from up from a overhead standpoint and from a production standpoint more importantly.
Speaker Change: Yeah.
Speaker Change: Okay. Thanks.
Speaker Change: Thanks, everybody.
Speaker Change: Yes.
Speaker Change: And our next question will come from Russell Gunther with Stephens. Please go ahead.
Russell Gunther: Hey, good morning, guys.
Speaker Change: Morning.
Speaker Change: Let's spend a minute on the mortgage banking gain on sale outlook for 2025, what you guys are thinking about both from a production and margin perspective.
Speaker Change: Yes. So we're you know we went from $2 17 to $2 40, we're kind of guiding in that 225 to 240, just based on what we're seeing and what we're seeing with with demand right. Now of course, that's that's very market dependent but based on what we're seeing today kind of looking at a first second quarter somewhere in that 225 to <unk> 40, so kind of hovering.
Speaker Change: About where it is today.
Speaker Change: Okay perfect. Thanks, Nicole.
Speaker Change: And then just last one for me switching gears here onto the capital deployment front, obviously carry excess capital and reserves mentioned, what you have left on the buyback I think last quarter you talked about you know increased clarity around the election might provide a catalyst to accelerate that so how are you guys thinking about balancing what sounds like a very strong organic growth.
Speaker Change: Trajectory with the buyback lever and potentially acquisitions.
Speaker Change: Well, the first and foremost would be their organic growth and funding the organic growth.
Speaker Change: I would tell you buybacks right now it would probably take a backseat to that and then obviously as opportunities come back come up we'll take a look at them but.
Speaker Change: We are as you know very strategic in how we look at M&A and very different and we don't like M&A just for the sake of just accumulating assets its got to be more strategic in nature. So if you were trying to prioritize I would tell you organic growth would come first and then maybe some selective M&A in there, but it would have to be very <unk>.
Speaker Change: Selective and then.
Speaker Change: And then buybacks in that order.
Speaker Change: I appreciate that Palmer and maybe just a follow up because you guys have been very clear on on the M&A front.
Speaker Change: It would take something special and strategic and could you just give us a sense of the characteristics of what that would look like to a mere S. Maybe from a size and geographic perspective.
Speaker Change: Yeah.
Speaker Change: Our approach there has not changed so obviously south eastern in nature.
Speaker Change: Could be something that could provide we love as you know core funding it could be something with a strong core deposit base. It could be a bank that provides.
Speaker Change: Additional support for our business line that we're in.
Speaker Change: More on the core bank side less on the on the non.
Speaker Change: Non core bank side.
Speaker Change: Terms of furthering our initiative there whether it was on commercial C&I that could be of interest to us.
Speaker Change: And then it would have to be something that is a cultural fit.
Speaker Change: So those are kind of the boxes that would need to check for us.
Speaker Change: Alright, very good guys. Thank you very much for taking my question.
Speaker Change: Yeah.
Speaker Change: The next question will come from Christopher Merrimack with Janney Montgomery Scott. Please go ahead.
Christopher Merrimack: Thanks, Good morning wanted to talk about the reserve and Palm and we've had a couple of quarters in a row with very low criticized and classified loans I'm curious if the reserve build is just for loan growth or is there any anticipation that you might see just some backing up of the criticized numbers over time.
Christopher Merrimack: Chris This is Doug you know the model drives our seasonal reserve and so it's really just a function of that.
Christopher Merrimack: More so than anything.
Christopher Merrimack: We lay out our indices that influencer or see some model on slide 16, and then obviously you bake in your economic forecast for that quarter.
Christopher Merrimack: That produces our AR reserve name.
Christopher Merrimack: Got it so at the end of the day, you're performing better than the model on losses for sure which is perfectly fine and you'll continue to grow into that as you have external growth.
Christopher Merrimack: That is true because you know cecil's life of loan so through a life of alone you can experience ups and downs, so but you are correct.
Christopher Merrimack: Okay.
Christopher Merrimack: And then you know, perhaps asking emanating from another angle Palmer whats the opportunity is simply acquire businesses that aren't banks or teams of people do you see any more back than what you've done in the last few years.
Christopher Merrimack: Well I think right now as an industry more of the chatter is obviously bank to bank as opposed to banks to non bank.
Christopher Merrimack: But that doesn't mean, there aren't some unique opportunities out there I think the challenge there are a lot of the Nonbanks is from a funding perspective.
Christopher Merrimack: How are you going to fund it if they don't have any core funding so given.
Christopher Merrimack: Given the importance of that and given our desire to hold on to our core funding and not watched that diminish.
Christopher Merrimack: That would probably take a back seat to.
Christopher Merrimack: To bank M&A traditional bank M&A.
Speaker Change: Great. Thanks for taking all of our questions. This morning.
Christopher Merrimack: You bet.
Speaker Change: And our next question will come from Manuel novice with D. A Davidson. Please go ahead.
Manuel Novice: Hey, good morning.
Speaker Change: And then could you go into a little bit more detail on what you're bringing on that's accretive are the types of them will be able to bring them out.
Speaker Change: That production, that's accretive to our NIM going forward.
Speaker Change: Sure. Good morning, so from a loan production per se there for the quarter. Our total company was right at 7% and that's kind of split up the bank is kind of coming in around 8% premium finance is spot on that right at seven mortgages, a little bit lower at six six and a half ish so kind of that all in blended rate for the company was about 7%.
Speaker Change: And then when you look at deposit production for the quarter. Our blended total book came in at about $2 42 of new production, that's including the interest bearing that's compared to a book of 212, So it's coming on a little bit higher than our average book them and then just on the interest bearing deposits. Our production was about $3 20.
Speaker Change: Bad about three and a quarter and that's compared to a total book at right about three so are coming on production is running about 25 to 30 basis points higher than our total average book, but then when you compare that to coming on loan production of 7% you can see where that accretion you know everything that we're putting on is is accretable to margin is coming in at a wider spread is coming in about a three.
Speaker Change: 75 spread versus the 350 spread and the real question is whether we can continue to grow the noninterest bearing at the pace that we're growing our bankers have just done a phenomenal job there.
Speaker Change: I appreciate that is.
Speaker Change: You talked about the lag where loan yields might still be price a bit from the last rate cut.
Speaker Change: Is there a good about it.
Speaker Change: I have done on the deposit side with cutting deposit costs from the December cut them.
You're implying that there's more on the loan side and the deposit side can you just go into detail on that a bit more.
Speaker Change: Sure, Yes, so on our deposits and our treasury teams our operations team they've done a great job of we are ready to go the day after the fed cut so we've been able to kind of get ahead of that and then be aggressive or our betas have been on the Dallas has been a little bit better with these first two cuts and some of that is market driven as well. So we've gotten ahead of the curve.
Speaker Change: There and then we knew that as soon as the as the fed cut him that we were gonna have Oh I'm sorry, as soon as the fed stopped cutting that eventually those loans, we're going to reprice the lag of the loans. We're gonna start repricing down. So that's been that's kind of where I mean that we've been aggressive on the deposits and which has been.
Speaker Change: Great and then but we know that we've got you know about 8 billion of loans that are going to reprice in the next year. The good news is that there you know the weighted average on that so even though it looks like there's some.
Speaker Change: Some of that is like the premium finance production, that's already been pricing, even though it's a fixed rate loan is it behaving like a variable rate. So the average rate of those or is it a little less than seven and a half and our current production is seven so when you think about that I think we're spot on where we should be with what the repricing if that all came down 50 basis points from that.
Speaker Change: 740 down to a seven mm that would that would kind of be in line with what you're seeing with the recent fed cuts. So I don't think we have any outlier. There I think it's just the natural progression of being able to be faster on the downside on the deposits and the loan side and then you also we have some some of our bond portfolio and you know we had some pay.
Speaker Change: In the fourth quarter, and then we have some more payoffs coming in or some maturities coming in in June. So we've been able to grow our bond portfolio at these higher rates and so that's been helpful as well.
Speaker Change: I appreciate that in the in the Muni flows so the expectation with the Muni flows that might come back out in the first quarter. Just from seasonality is that that's going to be somewhat replaced by brokered and borrowings is that the right way to think about it.
Speaker Change: That's right and so we always have our balance sheet, we always say that our balance sheet kind of bulge is at the end of the year shortly which we appreciate those customers, where we get into the public funds and they said that typically flows back out in the first quarter. It's about 500 million. So when that flows back out and so we purposely there you know kind of looking at there.
Speaker Change: Third quarter second and third quarter funding, we keep all of our funding short, but all of our funding right. Now is very short all of our brokered Cds are very short so they will reprice them. We've got about 800 million of brokered right at 4.5% and said they will reprice down all in the first quarter.
Speaker Change: I appreciate that thank you very much.
Speaker Change: And our next question will come from a gun Russell Gunther with Stephens. Please go ahead.
Speaker Change: Hey, guys. Thanks for taking the follow up Nicole just wanted to piggyback on <unk> question.
Speaker Change: Appreciate the color on sort of where deposit production costs, where we're coming on.
Speaker Change: During the quarter could you kind of tie that together for us and give us a sense for where the spot deposit cost are shaking out.
Speaker Change: Yes, and I'm, a little bit leery to do that but that's why I gave the quarter because some of that is skewed a little bit by some of that public fund. So are kind of right you're basically you're asking for December site costs.
Speaker Change: That'd be helpful as possible yeah it'd be helpful. If possible. Thank you, yes, so for our spot cost December they were right around 2%, but again that that skewed I don't I want to make sure I'm being clear that that skewed with some public funds and also with some of our we had a tremendous amount of noninterest bearing growth that came in in December so I'd really rather.
Speaker Change: If you kind of look at where our third quarter two at fourth fourth quarter average and we were able to drop from about 275 down to about a 240 for the quarter. So about 30 basis points down which is good and we like that trend the kind of our December growth and it really we saw that the biggest change was in Cds, where we saw our CD production and.
Speaker Change: December about 25 basis points less than the quarterly average.
Speaker Change: Okay got it thanks for taking the follow up I appreciate it absolutely.
Yeah.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Palmer Proctor for any closing remarks.
Palmer Proctor: Thank you Wyatt.
Palmer Proctor: I want to thank all of our teammates for another incredible year, well look at how we're set up for 2025.
Palmer Proctor: Gives me a lot of optimism.
Palmer Proctor: Obviously, our premier financial performance, but also our stable asset quality or capital build in our revenue growth opportunities. We really appreciate your participation in today's call and we thank you all for your time and your interest in <unk> Bank.
Palmer Proctor: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Palmer Proctor: Okay.
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