United Community Banks, Inc. (NASDAQ:UCBI) Q4 2022 Earnings Call Transcript

Robert Edwards: So, it’s interesting when you talked about higher interest rates. So what we’re seeing is that the higher interest rates, and the stress testing is just requiring on the front end, certainly requiring stronger capital, I don’t think we’ve done a deal in the last 90 days that didn’t start with 50% or 45% equity number in it and 50% to 55% loan to cost. In terms of, if you’re just talking about the standard portfolio, what impact does higher interest rates have, I’m not sure we’re seeing all of that fully yet. But I think overall interest rates are a component of increasing costs, right? So there’s wage inflation, there’s cost of supplies are up and interest rates are up and what we see is some of our C&I borrowers, over the last year and a half have just needed to raise prices. And if they’re on top of that, and doing that proactively, it works out fine. And we’ve had a couple of them that haven’t been proactive and they’re needing to catch up.

Christopher Marinac: Great, Rob. That’s helpful color and thank you both. I appreciate all the information this morning.

Operator: And this concludes our question-and-answer session. I would like to turn the conference back over to Lynn Harton, CEO for any closing remarks.

Lynn Harton: Okay, well, just in closing, I would thank you all for joining the call for your support. As always, if you’ve got additional questions, please reach out to us and we’ll look forward to talking again soon. Thank you.

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