F.N.B. (FNB) 19 Oct 172017 Q3 Earnings call transcript

Company Profile

Participants

Matt Lazzaro	Manager of Investor Relations
Vincent Delie	President and Chief Executive Officer
Gary Guerrieri	Chief Credit Officer
Vincent Calabrese	Chief Financial Officer
Scott Custer	Chief Executive Officer, Yadkin Financial Corporation
Jared Shaw	Wells Fargo Securities
Brian Martin	FIG Partners
Russell Gunther	D.A. Davidson
Casey Haire	Jefferies
Frank Schiraldi	Sandler O'Neill
Collyn Gilbert	Keefe, Bruyette & Woods, Inc.
Michael Young	SunTrust Robinson Humphrey Inc
Jason Oetting	JPMorgan
Matt Schultheis	Boenning

Call transcript

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Operator

Hello and welcome to the F.N.B. Corporation’s Third quarter 2017 Quarterly Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. Instructions]. [Operator event today’s being is note, recorded. Please like Lazzaro. now to turn Matt to over conference the I’d Mr. go please Lazzaro, ahead.

Matt Lazzaro

operating Corporation we Good viewed to Exchange as prepared financial This of F.N.B. measures. our you. Commission earnings the our not Thank our morning, and are an to non-GAAP in GAAP with statements measures to our measures call. results conference release. alternative earnings directly everyone, often addition reported contain Non-GAAP call presentation and most Securities financial with Reconciliations accordance in the filed GAAP. and to financial forward-looking in comparable measures welcome the for and Please materials GAAP and reports and non-GAAP of be in available Non-GAAP should and contained release, disclosures corporate these on to statements in in section President reports posted statement Commission Us, forward-looking Shareholder presentation website. related to the replay Delie, be to over with & link this and and Executive Exchange available Investor Chief website. Relations until the Services earnings filed will be and our call call the XX our will registration now and will materials of About corporate Vince our I turn A October Officer. and Securities our of webcast and the refer included

Vincent Delie

call. and morning our to Good earnings welcome

on review Officer. our the discuss are call Today, our and will the Financial strategic highlights will Guerrieri, Chief Credit the and review morning Chief of Officer; you Vince quarter open any Calabrese, up this initiatives. Vince Gary me from questions. update quality Gary financials and will I some Joining our for asset then and

to XX%. linked-quarter produced X%, annualized of to The growth growth record of X% XX%. annualized XX.X% improved and on revenue basis. ratio through loan improving while quarter operating and $X.XX our deposit to an also increased efficiency deposit Third ratio We EPS net income, loan record a of

the sheet. was commercial loan at footprint. was origination balance look solid, Overall in portfolio Let’s first the volume as across growth healthy

commercial Metro an pursue record have of September billion. building to expect pipelines up the we represents our at to significantly approaching and prospects total abundance with in This now June, North ahead, momentum since billion. we and increase Looking $X an $X.X of continue and South this X% commercial pipeline March a ended from markets, and Carolina

the total, organic transaction months loan deposit at Looking just recent last up loans over we and grew under Average deposits. there organically, guided slightly upside, first in with is further on given continued, X% growth X% and range. believe our our nine average year, deposits emphasis

and the our acquisition more During mix. Strategically, product the account gathering sheet on to favorable third driving these quarter, built a new we better efforts household customer position base balance deposit are strengthened funding ongoing efforts penetration. with increasing

of gathering other products long-term type our this services and to and we deposit customer will lead valuable expand expect relationships, where base. We can provide further

of part households and large relationships Our both strategy well with attract a of approach meaningful to existing the as a data deepen as involves use conversation customers. this our new to by analytics. consultative is FNB, way having A

value-added our better the on bankers unique past our between with have identify the equipped data analytics analytics, providing a and in have July mentioned tools we As needs. and match to services substantial us invested call, several resources years, client ability we governance leverage the enhanced information. to over a These own

well algorithm. months, we’ve of continue the produced past in We over use interaction. within to to product own the progress tools leads customer from our million X base proprietary two drive using our make In customer these

that far so previous times nearly marketing with contacted was a three rate bankers efforts. our response nearly greater Our customers XXX,XXX than

an or has in five follow-up one resulted appointment in a opportunity fact, sales for calls discussion. In a

the well to leads provide as into and various the monthly leads incorporating models our field, our programs. refresh as to continue marketing We

as will ones science identifying achieve teams and new continue the their methods well as opportunities, data of our to marketing goals. in explore existing right pursuit customers solution refine to help Our of finding

Let largely reflected the are prior I’m rate. revenue financial can X% expense management, continue to me in on we analytics that these that in saw run technology, build footprint. mortgage investments and Fee-based quarter. to you businesses, data that to remind performance. current momentum confident across and in insurance marketing including increase our compared wealth Returning our the combined

anticipated earnings pleased the strategic very certain $X.X expected level markets previous results early of with expectations. came are million than capital a and longer strong wealth in fee-based the initiatives, lighter of to originally our While were quarter, our contributions. revenue insurance the After we deliver in slightly than of businesses taking activity

nature which and Given product international fees, revenue swap can set, the somewhat the includes that vary of syndications, quarter-to-quarter.

that grow on are products the in for bankers However, We optimistic our and commercial pipelines place, in to ongoing fee-based these quarter strong, this our will to product source aligned. a basis. and larger revenue income trained remain fourth contributor an and continue remain compensation specialists plans are been the become have

SBA as national a model from we regional to model. the know, business, volume-driven more at you footprint and a Looking business changed relationship-based this

transaction last the quarters, rounded origination team growth. out and we’ve Over started the gain few to

we a moving fully first original positive SBA forward. on of generate more the and pipeline yet our SBA a see expect continues revenue X% in part linked-quarter Although build. revenue not performing basis to XXXX, we expectations increase the from did in note, On a line through with to

gain newer team loss our industry lower of markets. a in than though that is, portion talked had a volume, to our our I’ve mortgage mortgage factors the the and X% continue and pressures below volume we’ve business and of was that quarter, to Notwithstanding before. household success mortgage acquisition performed business, on product to relationships, penetration, as plans. Carolina banking pressures, Contributing banking private the those Turning about product linchpin sales growing or banking drive sold great margins, increase particularly anticipated view revenue original sale has it up even on this are our

our at levels. generate leverage higher we and expanding significant a business previous with As execute focus operating is opportunity products positive than there fee-based model on services, to

Given our in growth would rate revenue see disciplined ratio, fully accelerate peer-leading of more our expense than expect which expenses. we at efficiency rapid you to the a can pace management,

more into Vince detail, ask to Gary financials the gets quality. Before in I’ll discuss asset Gary?

Gary Guerrieri

everyone. Thank you, good Vince, and morning,

On The with third were OREO in X.XX%, and points, NPLs quality several from key annualized. GAAP by XX our flat highlighted while the further remaining stable basis was last levels quarter basis delinquency points XX XXXX of with and charge-offs quarter net ended consistent results credit quarter the to quarters. credit basis, at line and metrics a nearly second the from improved

originated portfolio, saw also through credits I loan as acquired as book the I in in and significant some We the improvements the level on problem acquired in rated the originated lower levels walk these trends, some you well touch about would other remarks the followed portfolio. quarter, as highlights of by our from portfolio.

delinquency XX the NPLs decreased quarterly XX quarter basis of originated basis representing driven basis improvement X an basis a and position improvement basis now a At highlights solid some basis basis point which basis million, net prior quarter-end, on year-ago originated in points primarily solid reserve activity was and the $XX.X were at points the to on a was XX charge-offs cover points, or million XX $XX supported quarter points sales linked-quarter over points on period. totaled basis points, OREO Let��s ending resulting annualized, represents Net the X.XX%. the X also book. the The from in and from growth of an originated loan which June, year-to-date a third in by XX for provision OREO. and annualized. charge-off organic of quarter,

Let’s the up the of contractual generally once million, due quarter. now activity quality positive ending million a credits billion. in with prior the basis, $XXX levels. continued linked-quarter acquired was as commercial level from September which at portfolio, quarter plus in again at $X.X was remained turn $XX third the the on to to rated book, Credit the quarter elevated ended upgrade which Total XX decreased delinquency

carry acquired And with the The this acquired remains or adequate that essentially reserve the for contributed position in plus to entering credit well increase X.XX%. book are of overall However, total marks. book for well-positioned XXXX. well the ending our to of loan already total, In allowance credits continues quarter. flat quarter closing, secured final was covered loan be the portfolio mark credit an the

final We continue the relationships supports processes that to our credit-decisioning which stages in form number future thus our objectives. its to on large a The portfolio. remaining in focus risk diverse a integration selective far completion, has in positive results of that reaching and is portfolio of and Carolina upgrades of credit growth yielded maintaining

across maintaining while to now the within seek and continue over of prudent opportunities, proactive expand portfolio. Vincent to call to Officer all our remarks. of our the lending to reach excited Financial out I are the core will We management risk for Calabrese, Carolina his underwriting solid Chief markets principles our turn

Vincent Calabrese

Thanks, quarter progress. Gary. third discuss Today, our comment year-to-date our morning, everyone. on results and I will Good

Slide Let’s balance on sheet X. the start with

in commercial demand X%, bearing linked-quarter Baltimore loans growth growth portfolio and Cleveland balances in primarily increased increased savings The balances. average second total offset increased with deposits consumer annualized growth loan to residential X%, an of at grew On portfolios. the average Average Looking on compared by loans in concentrated basis, an and quarter, average with basis, primarily partially the balances, mortgage X% production market. decline non-interest Pittsburgh, due in in X%. X% indirect interest-bearing to annualized deposits X% and the

new a basis, during deposits. the attracting to XX% customer spot relationships However, quarter efforts to dedicated and growing increased on base due total deposits

were to our with expansion provides customer revenue direct successful to borrowings efforts additional households new that very mentioned, deposit some Vince us and with funding short-term As access opportunities. gathering allowed replace

income increased longer-term total growth new perspective, XX% strategic up deposits us transaction end it accounting X.X%, households. and loan in ratio From of total to purchase and excess funding our on million, loans the deposit interest points interest-bearing funding in to well to at Slide to revenue higher XXX and incremental slightly customer funds XX.X% a Turning of X, near-term, recoveries. the lock enabled growth net made or some improved deposits While accretion cash the $X.X as as September cost and in basis due deposits securities, in grew to attract

X.XX, to compared basis previous points was an margin X interest of net increase the Our quarter.

basis of points compared quarter. net the X recoveries quarter interest in second XX accretion cash points third to margin and basis The included

lesser see release, related borrowing on As and to to a can rate the by impacted our June the hike, balance decision the table primarily average margin you was the households our change higher our extent, designed costs funding in to deposit product initiatives longer-term We rising rate strategically gathering improve to mix us attract believe benefit a deposits. this penetration. will some and environment with through in

transactions, mortgage in and management, banking, insurance non-interest larger was X to a X. large driven of of vary on expense deal recognition about activity. at markets markets income to in second that income reflecting now compared on fewer Slides economically from lot, and sales $X.X exposure bit activity gains and securities depending can income capital of a tends flat lower quite look quarter-to-quarter Keep growth wealth also by the investment by and therefore, positions. mind, favorable from million capital timing. Let’s small resulted included revenue Non-interest offset quarter, number be odd incremental Non-interest the

to expense, by expense as lower offset were Turning services flat non-interest and outside occupancy higher expenses quarter-over-quarter, expenses. was salaries

efficiency which tightly the an third is quarter of demonstrated have We XX.X%. ability apparent improved expenses, control to in ratio

opportunities by our commercial expect from was continue XX.X%, our part business, to credit markets. due the of Tax our relationships historically quarter activities Regarding of lending income in a benefit these effective tax to have to generated been normal course leasing tax overall forward. the rate primarily and we taxes, credits going for and new

average improved points tangible basis common share. and for quarter, on ratios value tangible return per to tangible share to and $X.XX on assets to the to point common X.XX% operating equity to our return equity XX%. X $X.XX X.XX% book at average assets improved our grew basis Looking improved our per Tangible X

line provided the fall offsetting at with items. minuses near-term major that expectations, in and in were some Looking within we performance to line XXXX ranges still pluses July bottom full-year expect the

laid we we on plan guidance to in We goals another past quarter the and ratio, our earnings fourth our far operating positive grew several efficiency next In meaningful summary, improved ratios FNB in improvement for calls. organically year as loans provide towards quarter call progress was As continued XXXX the and deposits. January. made over out this which for full-year in achieved goes, high-level earnings we

earnings expect and the experience of sustainable reach longer some to contribution we While expand fee-based taken have entered, like drive the have going in growth. levels, new businesses markets forward per share to help other we our forecasted

the turn over to to call Now would questions. the I like operator for

Operator

thank you. Yes,

Wells the from Jared And with We first Fargo will session. comes Instructions] question Shaw question-and-answer now begin Securities. [Operator the

Jared Shaw

good Hi, morning.

Vincent Delie

morning, Good Jared.

Vincent Calabrese

Hey, Jared.

Gary Guerrieri

Jared. Hey,

Jared Shaw

hiring you pipeline us of on lenders, an Carolinas? that is? commercial the then actual long maybe And is commercial at convert start how take and progress close will you the update look can If when just on there we outlook $X also, the Could loans? pipeline how the billion, to new with that to going give – what

Vincent Delie

staffed all, banking alone, capacity wealth, a or North from – fully the effectively the in we’ve those Carolina XX the private brought time. perspective, and rate start for hires let’s and across about in grow over handle we in from added wholesale would banking. already reflected pipeline bankers it the in Those in Yes, ranging the markets first the pretty run of added. year potentially – are we’re staffing with that in hired, but in we’ve not preparation and It’s the expense to base, levels the I much beyond. that beginning conversion with say staffing of since very disciplines

have, we and well-positioned to good a I So think go. ready team that’s very

FNB we have in are to us in those optimistically not So markets, at for opportunity. those for There certain sense markets. us. There are interested whether that in and I that we’ll will come this making financial wouldn’t are and make opportunistic that circumstances, staffing people in anticipate about decisions we But when have hires. changes point – optimistic hire or makes working

expectation. relative say, overall, would to initial I is very our very, strong So staffing

better. much of the XX% pipelines portion our is of we within pipeline – That XX coming that report pipeline about it’s typically, days. So way

that apply of $XXX it’s convert a than all probabilities, have that The prospects. assuming we the we million better And expected for those $X is a over obviously heck from would So, a pipeline of XXX% billion methodology nearly we were we’re quarters board. so value so lot the pre-determined that into confident be good we able or very, to going in ago, $XXX where million, we’re what quarter. some which the very two quarter was. transactions first there’s is it it’s double And close to fairly fourth

I’d overall, optimistic. say, So we’re very

Jared Shaw

where end balances? did commercial in And markets quarter balances the or those Okay.

Vincent Delie

interested the I We’ve to of, asset into details been Yes, But not we we’re – there to going you commercial we tell also considerable don’t that let’s either amount well has a get related pretty credits to or on moved had in their those we’ve industry the markets. originated have exchange. relative will been undesirable individual that, it, regions. exits where But out. the portfolio, are say not

So of in Gary’s was a bit acquired comments, there activity in the quite portfolio.

Gary Guerrieri

too. runoff, normal Plus

Vincent Delie

acquired Yes, plus it. in have to normal runoff adds those portfolios, which

that, centered was given loan the last we people stronger than in C&I acquisitions. The keep that. growth commercial telling large two we actually largely appears, it was lending did in that So and quarter

play will think, it I over out time.

in in optimistic As move help very commercial net forward markets, that about. able those in higher interest runoff we we for stabilizes, that be the will the income matter that trajectory growth we’re should segment portfolio and to consumer in moving as achieve which

Gary Guerrieri

mentioned, move trading off a the any sheet. first XX And during of out desirable got balance assets as acquisition of you’ve less off as months lot to assets six we the Vince

the So acquisition out on early side coming that masks any growth of the it. of

Vincent Calabrese

The higher rates other to dynamic have those too on loans is, tend them.

the the that margin. runs short-term in So against

Vincent Delie

yield. on. assets there. much we’ve on higher some on hires up in and in of lower a LIBOR-based core They We you’re equivalent particularly lending yielding, small Carolina. What higher as – ends that market, the in made of in years at of part a Charlotte out not C&I. we’re mean, CRA curve. markets an more necessarily or but you’re moving ticket CRE we’ve spreads, margin the spread, on tend And assets were I more out was because to seeing C&I. embellished going that exchange attributable to you’re of for decline term, longer-term happening, with But North yielding trading good progress that’s lending is there focus the in exchanging focus Yes, you’re Charlotte better engaged the but XX at the

that’s on I going standpoint more on know, any because Vince, if we that’s asset But of some comment don’t too. you want to I an very – all position as us liability a it forward. but positive, mean. puts that, that’s from better in So move

Vincent Calabrese

ratio to our to to to down short-term those deposit under rising the was that No, and growth a that I accomplishment we’ve on when XX% the Fed a XX.X% with that growth getting And expectation But moves. deposit going a obviously, would at borrowings because deposits, was deposit rate to now far say what end well, the on really that that, average company for the loan additional level in between environment Similarly, end Fed us. strategy during more in commented the about current of – are before did X%. traded CDs is loans as we bring number year, clearly, moves. and I generate to are just that June, reaching and beneficial us keep basically the embarked I growing big quarter manageable as positions we guess, a next something repricing of up, as the as

that on interest our books of benefits thousands that is also us net for new We CDs think, households, us loan future So as that growth, that positions of as income. serves well. on, commented the which having kind initiative. important very added plus And out part trading of Vince I and those the well

Jared Shaw

you of the a organic with the that good on growth around TCE growth? feel there on past, still at longer-term the level balance the a be to can you the structure you and get sheet. X%, ratio. Okay, place Do capital great. X% feel And Thanks. you’d is is In commented that then good seeing the for side incrementally good

Vincent Calabrese

we would reasonable earnings company the two, over would ahead next go I few assumptions, say the Yes, the we we expect using as generation get if above into that, into you Yadkin you from expanding ratio out that you go the look years as year as with to TCE and look X%. forward And get mid-X%. the

next looking have. that we’re And in will is So years X% really opportunities, up kind the loan the low-XXs the to of still have there. through will also payout north in with naturally very risk continued where position. the capital migrate retained over and ratio that the movement to which us normal deploy support kind upwards just number also, growth, we to with down kind really, what few mid the then really of into targeting near-term earnings to give The of move TCE still some comfortable we we given are our of ratio,

Jared Shaw

moving Great, thanks. for data incentive prospects talked that And the utilizing into actual about and lead analytics to generation. then me, and you tying successfully Are just data you the finally compensation branch customers?

Vincent Delie

directly managers it’s correlated those in. actually branch perform need that Yes, the to to categories

So have we pretty broad categories.

here activity-based really an incentive not from compensation We’re standpoint.

We’re or more outcome-based. output

base. very can growth in compensated, received my their and out behavior. mentioned field, pushed that those in get loans relative comments. had being cross-sell and we’ve well financial issues to is institutions fee-based been how deposits had data analytics, that in buckets products are customer out as avoids that I I with portfolios of the pushed results, excellent being they by prepared are And it’s to have the which But they some So, the other that leads that the think those

five in results fact, that’s calls an in pretty remarkable. appointment, In one

So consumer to feed less focus North in where the I that by into next was business continue consumer year. of Carolina, ultimately Yadkin. there segment Particularly move income we that as fee benefit and on would a to expect

is, mention other deposit us terms helped The in of gathering. analytics have will the data thing I

a curve a If basis. occurred volume had spot in in at unique produced U-shaped nearly you XX% category. on deposits anomaly while where look terms of We deposit actually in a per growth day – we the

$XXX spot million, deposits including repos. customer So our were quarter-to-quarter a up on basis

base, some was households. which is that help of that up lot what teamed to that ran customer Some campaigns and But data a penetrate we seasonal. with related to X,XXX that led analytics gaining of was promotional to

the loans there’s to have. optimistic balance a people the that – short we’re – timeframe deposit the which is given to both – size about deposits. opportunities growth in working. extraordinarily with lot So to of initiative I a the and fee in back know, entire acquisitions it’s time, movement strategy in we income deposit is these our loan XX% remarkable. And with below confusing this sheet, at of pull such and this is But to pretty ratio

we that borrowings. the as opportunity on to look overnight in dependence growth an reducing our So loan future feed at

Vincent Calabrese

million analytics we’ve really gave the XXX in mean, other I had outcome data and new them that, nice And past in goal the they we a think, couple balances campaign. requirements a of the did branches couple that by about into for support, that I that very and excited the rates, months marketplace. talked bring $XXX to energized you money. was job. we’re were incremental set in the the people of We lead were generation attractive winning a phenomenal in

Vincent Delie

top And the regions period the of one Carolina, two two that out this before, way were were commercial North production. two during covered regions the and markets, so have we of they by in retail coming performing

those for on and moving employees activity in Carolina the kudos to So and those strategy very embracing North very, good prospects.

Jared Shaw

Thank you.

Operator

comes Thank the Martin question FIG from Brian you. And Partners. with next

Brian Martin

this of X thing. I the just if to funds a absent the can you margin up but quarter at minute just kind rate in to maybe think just how of up get and the forward, maybe get being bit basis maybe just margin would I So, the maybe color to the with up how about little missed the guys, increase in then in of you that thought as a X would’ve just provide of much not December purchase quarter? basis going trend range it a just regard and it, cost about core the if bit helpful. on late, in it wondering covered but being points, points, being and I wanted accounting a loan on the yields of this, midyear? the kind thought so guess yields just a looking maybe differential give adjustments I one can do on you one detail of in particular the I joined be as Just with apologize, think some margin, if of little I Hey loan there we little if to

Vincent Calabrese

I can that on Sure, comment Brian.

context, or $XXX at in assets income So, to net borrowing it XX.X% of during we million the basis. by put into growth quarter the basically $X.X an third and for annualized average on earning it grew interest look was was And when $XXX the quarter, you million. growth short-term million average in funded

the the short-term the during the impact of it everyone, does as borrowings. obviously fed increases of your So quarter with June move, cost

reduces side, little about then the the look in it. side points Ours basis runoffs – And XX Yadkin so of about basis so mean normal liability just But have that the we X kind the a margin dynamics that’s on points. went of commented at the bit asset which I portfolio. up by alone there earlier when you Vince the just

of have the commercial also and those move to the guys riskier we team that balance are and sheet. looking We exit on where loans loans off the and we’re kind Gary side

to of our a was was get rates the are prime, was loans benefit and came XX% push. quarter, part the we the So the on of runoff negative LIBOR occurring tied the the new through, quarter, this on happened to that of relationship that obviously a versus but last it quarter loans did what that

you some when tied equal generally that varies off So about impact kind kind just which there tends quarter-to-quarter of Brian putting more the then X the rates isolating short-term, so But higher of be from so but made to us they’ll thing put obviously and that that we comment move. move is point we things as the are points loans we’ve the go kind and picking is talked the forward, accounting we’re then kind hurt are traditionally on longer, a what of like in benefit the as we basis of move, the all on And of other paying because on to would from other of loans that. because that – being LIBOR the is muted purchasing up fed I rates duration a fed move too. have the we’re

but has call as If from it as X, accounting the XX, to had the purchase low the quarter, seven high you couple ranged as last, last quarters look X at as at we’ve a for look months the at nine year at at the of – if points first this points, the X basis months periods, X basis of you nine year. first last nine average month

accretion, rate tend that into that points, to we’ve will we incremental to it’s next had just be recoveries the kind So year. and while a basis run important that’s to and and the there everybody continue very X is – we’re that lumpy some accounting cash I consistency remind mean think good labeling of quarter I about of with the as purchase recoveries here piece that talked

in going the in slide you do look may third X quarter. that re-estimation you that said in at we X if and we got second expected So, And benefit July benefit we first to were basis of point the slide we the deck, and is in remember quarter our that. we had,

went points, into call continue basis that what So year. accretion points would will X normal the next X X I of to basis

the X. I think were next portion through really four borrowing the we’ve about a deposits down forward basically margin fed significant that now those going with will that talked I So to short-term moves. is X, you have down and get short-term borrowings replaced – people the us core – of it’s is the really are include And and saying, some termed out

hurts in helps into bit next little as but and goes a forward So we quarter, go this that it year.

Brian Martin

next rate going And helpful. mean or increases December, of you look I to how increase of on course on that your maybe there? expectation get did just thinking that’s you forward do you in is kind three Is as quarter today say you I the translates missed or a guess, the margin rate core first year? the margin, Okay, points basis guess impact are said from core I into what four that that in that, I if – you the

Vincent Calabrese

past we’ve benefit. basis have, late the comment we but that, about on guidance when last you as as January sheet the In would talked December, points couple recently give about couple so of it’s a as balance basis in talked points what quarter we of know a our about we we and

Brian Martin

right. all Okay,

Vincent Calabrese

that’s all equal. things Again, being

Brian Martin

markets actual in the folks translates just that seem some progressing how bit referrals even about see kind the very the you okay as and higher a still to on still that’s the on but and you, out is it more? kind guys that Carolina, done – guess on and of your of would this Is mean rate? of helpful. optimistic, the I income? just that sensitive the get are that call, You place just a I I grow a wise, to think when – P&L you Yes, is talked mid-next would with run maybe of fee kind to how each having kind I mortgage of kind is got of guess, but income you change guess seem about optimistic the do begin – guess And of North you regard you just kind expect you is understand we – sense I how more know I evidence to quarter, capital when given just – of feel do we more – I year side of it the kind when more at, be kind I fee timing definitely everything build is that like in you I the somewhat as guess see

Vincent Delie

Yes, I that guess to sides there is story. two

think happened. that a why look I it standpoint, contributions at into when changing significant you view sitting happened, view, potential categories. our my already our we with pretty fee have to Carolina not without North solid from we’re the changed it here there. number quarter I relative we’re got And of a from not and but

execution. good mediocre produce we with what near alone nowhere We’re let can performance

international insurance we’ve capital from those would period significant those with XXXX. is very categories, alone. be other about I anticipate done optimistic into acquisitions little fee we two of will and those income North North areas SBA escalation time us a very in there And the we’ve Carolina. Carolina, in think fee so have and as mortgage markets, grow upside over benefit long to pleasantly well gotten making, I markets surprised income particularly but own would mortgage, with from from little of So, be people moving terms in our banking, gotten incrementally I benefit

should and price. I think panic that those going trends we deliver those we moving have, be not stock up, we’ll more I’m I the what confident opportunity back, this deliver people are where So are very categories and that’s we given base And great right favorably that would at about are that direction. and to said for all looking hey saying in a of the all we’re

Brian Martin

just go we’ll said just forward, it’s okay, optimistic, definitely I’m I so well agree, I you know – and the unfold appreciate see here guys it questions. taking I you Yes,

Vincent Delie

appreciate I it, thanks you Thank Brian.

Operator

from Davidson. next And Russell comes Gunther question Thank D.A. you. with the

Russell Gunther

guys. morning good Hey,

that to do offset on can this could kind continued any provide a asset push so funding. enough – I and Just moves runway moves but more actions best pressure forward? side think on you next exchange funding on been say margin through actions four I I of the that on quarter, taken the have as conversation you follow-up funding we a core the anticipate you little hurt guess bit deposit the going the the that is hear you the given may you rate be But from the core I NIM so to with mean exchange? expand case how the core that a see the weigh much asset longer is margin having,

Vincent Calabrese

moving is there mean lot right. I a parts there, of

positive. relationship commented was before as little little this bit I quarter quarter a was negative, last I’m the was on earlier, push, So, quarter a a it the bit

where and acquisition. wane a kind it’s I pieces function a we little What know bit we’ve that it on in have we all prior – acquired a that the new runoff it’s of those function I a marketplace. and comes that bring does quarter of it’s every spreads the of So with see down mean and the are underneath, business

is in will it par getting it. we loans amount the commented dollar sheer a those come accounting at purchase $X I and every we’re the is But to that that think time. So on over has loan on earlier keep mark off, down mind important the one things the have of that on run this $X.XXX with fun

the if a kind core in that’s why $X.XXX and gets get out you that line that a paid the for adjustment future you that’s incremental something pool in is yield in it’s because as comes going at of but even rate the lose on of off that comes forward. really may near-term, accretion $X, paid accretion, when that accretion loan, So

So whatever mark pool income. net future that benefit was loan that the is discount to in on a interest

it’s time, the predict amount mind. what to in down and you a works from can we direction down come will. accounting in go it’s kind keep important to I one just tell quarter-to-quarter, portfolio loans, fixed can because So that you the of acquired it But is, over I it’s and think only hard the that way it’ll see

Russell Gunther

it. Got

Vincent Delie

And acceleration an be on then early to tends that. there

Vincent Calabrese

Yes, it’s early. as big

Vincent Delie

you runoff see because early to risk, repositioning more acquisitions… relative after big the It’s the portfolio early we’re so

Vincent Calabrese

everyone we’ve …with done.

Russell Gunther

of that. just to this move of Certainly, the in kind actions saw funding than taking expect taken the And okay we third be quarter? up appreciate we I on and firm, should magnitude then cost of funds a the incremental the side the less quarter

Vincent Delie

was now. way it a the say material and period the the not campaign by margin this minor. in there did the – was just on was promotions impact funding have our an I that impact, relative Yes, to but mean deposit

Vincent Calabrese

the and borrowing, late The the had fed the impact biggest driver is so… June move that short-term on

Vincent Delie

of inflows, received borrowings at months we few a action that that cycle was And later the I a at time of that peak higher when seasonal are inflows year short-term us when the deposit more say would seasonal. fed borrowing our the during in because so point of cost the time caught it moved borrowings with basically several rates the in because hundred or million of

timing just work of will that’s the how – it’s down. of that so know You just part

Vincent Calabrese

the the short-term with short-term in June, fund in month strong loan the of Yes, was that you need growth very borrowings. to

Vincent Delie

That’s right.

Russell Gunther

guide that. Okay are think then And exceeding so think great, be next you of to revenue expenses, ability of the now going that’s to you side long good growth, do appreciate just talked for I forward expense you sub the color, revenue kind going to so thought on guys able that the the guide below about of we’re see your you your about – hit given I long-term year of top growth expense XX%, at term to accelerate pays XX%?

Vincent Calabrese

Well, guidance January. in we’ll give

You and XX.X%, know so early are mean I so… contributions we’ll we do, Yadkin very it’s

Vincent Delie

say going think, room we I little to and especially just since not leverage stabilized there’s expense think the we Let’s decent next this, forward without, year, of improve. to operating moving base come bit we’re a into still

we gain two comfort base then into and I and pipelines very, so and the revenue the last particularly would terms in businesses our in loan over call, a away think works. have I the it in the opportunities, kind fee-based from take think of position, expense of a bit the the if we’re with quarters look very you could solid moving that you know and that of anything all aspect of XXXX business about little at

Vincent Calabrese

on Yes, number that I try down. would say we are very continuing to focused

infrastructure here we’re an to past so as I our about in benefits to big forward to expense get come I company made vendor – revenue going there’s have the that. can talked some program going We just out out top have kind mean looming the idea think we’ve be of on, XXX you of going from the leveraging now the investments to in and make, that sit the no ongoing from I vendors focus is investments math And have there. so we in we growth there of to do management that’s people and and

Vincent Delie

Certainly.

Russell Gunther

all very good, right Very guys. much thanks

Operator

the from with And comes next Haire you. Casey Thank question Jefferies.

Casey Haire

Thanks, good guys. morning

It some deposit can growth you that, correctly, percentage bit had a the sounds follow-up strong borrowings your like June that to the to I’m you point-to-point of to of the fund and lower the June, drive in little obviously wanted short-term you that on is to call XQ what decent year of at has it sure are in target level know here? hoping increased loan XX% your – of growth of wholesale to some dramatically borrowings you month to especially funding – liabilities. base XX% as for make over So, light in understanding and sure it, today make last a half, just sort

Vincent Calabrese

say we’re as in in far there borrowings. that borrowings would I are we Yes, short-term where are overnight comfortable as the the

can the I as there. we kind haven’t of and forward think fired what deposit go generation up demonstrated we machine do

XX.X more looking were think think to we to at the XX.X that going basis where in borrowings number comfortable balance growth something on down. wanted the of to we’re we ratio the level far the I fund spot are very deposit I of and loan that at. end comfortable at to a we’re given do and But that’s sheet, the be as the at goal the short-term end September, so growth, loan June size a would comfortable bring we’re period the as incremental deposits But with forward.

Vincent Delie

to come towards of what the we exact rate I goes increase, mean points seasonal can’t which to the said, it that it at, XX in our inflows, a impacted that amounts time with in of back you portfolio borrowings that in Yes, in basis amount if end to growth have number the because I impact. because look at margin the up essentially was increased temporarily of what reset all was the it fed have point I so mismatch pushed then the remember have at so that, borrowing June and

Vincent Calabrese

same the at right was timing The time…

Vincent Delie

manage items trying like in do sequence. where when protect The to occur everything that’s to timing hard out, is, that what come just and is we’re we it sometimes

Casey Haire

tracking Understood. And there any nicely? deposit Yadkin, Is surprises retention there? at that has been

Vincent Delie

so terms nicely. very It’s – retention what tracking tell know digit, at you is single just I’d we’re low attrition, report, the of I you digit looked that actually single in

Vincent Calabrese

the best had. ever that’s we’ve And

Vincent Delie

that – the retail producing in ran. we Carolina two the were two relative were they Casey, regions said to regions the highest North entire the I company our and in campaigns Yes,

Vincent Calabrese

So the given best in acquired of have importantly, we been done the number that we’ve had it’s at ever retention acquisition our month we we’ve time, largest this point deposit them. since

Vincent Delie

experienced at Metro, if – that so XX% levels, regard Yadkin low we outlier historically, XXs, in terms that is consistent budget the as we’ve closer for what and Metro is just which running that well. compare is traditional Metro sitting more perspective retentions in and And to what runoff, with an so you to more of in is

Casey Haire

know just if great growth outlook, to be like sounds clarify it you guys portfolio, Yadkin Okay loan it correctly, to poke you through are understanding going the you I’m as the and on stuff. exiting

it? looking in done you’ve a out that we’re a plays bad/good necessarily it, as that loan growth next and not transactions over that past your outlook next, single-digit low-to-mid driven the at characterize year, so As does way to to by is standard consumer, call

Vincent Delie

all. at not No,

it’ll When on conversion, conversion, of loan think time. today went the guidance North half in it and the point banking, is evident that he’ll we talked pipelines be not as was through out I point we coming the commercial guidance Carolina I say thing to is the that and Vince, in he be the couple would about pretty growth times, that think and we’ll you said a what you and of at can pipeline you back giving I at so in clear the about. all only give

Vincent Calabrese

thing that other the reserved quality? short, very other is better Yadkin on quality the The want loans you of portfolio to I comment Vince than mean on the comment I that’s of acquired. just that portfolio we specifically much list the the would is

Vincent Delie

but will that early size as handful, there the portfolio mark and that on comparatively mean be have credit it’s speaking in portfolio, of you assets on reflected day one, trading we It all from out based always less of I the is talked. the

Casey Haire

came just go and little forward me. great a rate? a than The Okay, tax rate quarter, one last good expected this for in what’s higher

Vincent Calabrese

that’s quarter so last good guided had we still XX, around rate. Well, to a

Casey Haire

you. thank Great,

Operator

the from with Thank question you. Schiraldi next Sandler Frank comes And O’Neill.

Frank Schiraldi

Good morning.

the the on understand the more if okay just in I want it’s I follow-up, one sure here. short-term NIM. Just mechanics to make

if say, XQ I about thinking make NIM. So doesn’t a guess, sense it you’re to

point you’d thing, would high X had largely I do the the cash probably also be core more the in the and assume quarter, due late And XQ side. because level, side, deposit just on of a that you some guess because But – further recoveries right, to out additional take then it above the first which here? over bps those at The NIM of of results? we’re asset XQ some compression, is so things talked happened on an of about repositioning impact some it on

Vincent Calabrese

on, I two, the I from Frank, the it’s bit comment But as – it a it’s for nine-month accretion, X points. mean, Yes, little moves quarter-to-quarter. period, been basis

impact have much have that’s kind use material. that the as were fourth And be. rate the runoff of higher is borrowings predict a but recoveries. you the forward. look at, at really I earlier, short-term full what where go are of not from that four a into mean, to So promotions run good you the on level certainty quarter, quarter best think because to look then, on the rate there significantly could it’s it’s balance for and quarter. as I sheet there. will just commented in of going a the the on at is they guys And end, I if some have that, can’t that and the you cash be going an the And expect I the Vince model with June, you you acquired if move activity the of way depending down in in spot where number But

Frank Schiraldi

quarter, Let’s assume the material, not in fourth okay. that’s

Vincent Calabrese

loans Yes. rates the and be the to that’s churn. of asset a is tenor And function then the going just of side on kind

you the I expect that, way down to it by expect guys the and were driven see core So referring I the see move. guess, to it’s Fed did, because margin of key that. we was don’t certainty, but that as with don’t predict – is the to come we’re not to to hard going a lot

Frank Schiraldi

Yes.

Vincent Calabrese

I if ultimately income. to you guess, not it to right, net need to going roll And guys model are interest I back

we growth, So, that – the we historical sum the just of fourth is have full-year for up. we’re quarter to income last given pipeline achievable loan strength it the interest in good strong talked net about pretty kind that range quarter the within feel

Frank Schiraldi

Gotcha.

individual Okay. it And there in you bottom and the across guidance, said since basically think, be then take give that you the some Vince, line might board just reiterated a NII, follow-up but on pieces. that, between I you mentioned on the

front? a that’s how range of both right, it guidance, of just you little towards if a the of and revenue can sum give Is just little lower-end color you about or that in on that sort think would sort more the up expense bit bit? So

Vincent Calabrese

the Frank. give color my remarks, There the and what of range and same prepared pluses gave minuses I within would are I we we’re from gave. comfortable

Frank Schiraldi

Okay.

Gary Guerrieri

that, the I this Vince pieces lower about were that mean, earlier, categories honestly, little bit as and then [ph] we’re talking about quarter. couple talked a there a are of fee

and the to them strong usually expect quarter loan so. for in it’s fourth We quarter move a higher growth

Frank Schiraldi

Okay.

you about what range think saying saying? that range you’re within you’re still the – pieces all So should coming gave, that’s you within these

Vincent Calabrese

I what you exactly it. in That’s and said, got fact,

Frank Schiraldi

Great.

appreciate it. Thanks. Okay, I

Vincent Delie

you. Thank

Vincent Calabrese

Thanks, Frank.

Operator

Collyn from comes question next the Gilbert And you. with Thank KBW.

Collyn Gilbert

Good guys. morning, Thanks.

Vincent Delie

Good morning, Collyn.

Vincent Calabrese

Collyn. morning, Good

Collyn Gilbert

you dollar what this the whole have income quarter? Vince, accretion just of a amount the the basis just combined question, Do you’d on given point was accretion. a impact

Vincent Calabrese

sheet, my that. Collyn try to I you it head. cheat tell my I’ll can I don’t to Yes, go have though, in

incremental the million. quarter, was million, purchase then recoveries for $X.X account were So cash the we accretion $X.X had the and

Collyn Gilbert

I but there were anything Okay. lot from $XX you of be Vince, a material parts, last mean, And indicate had purchase moving million last I a anything is gave in you there’s quarter, would change full-year range. think accretion to that said to guidance that, quarter? looking the I know guys you think I for indicate, that million $XX that would Is

Vincent Calabrese

$XX.X year-to-date. at we’re No,

still comfortable we’re that range. with So,

Collyn Gilbert

Okay.

sheet. on that’s And the then helpful. Okay, just the balance movement

that lengthening been does year? – that of funding positioning? what side. credits, your how is What your your for of your And does So trading outlook rate as rates, shortening and of impact you’ve risk kind for next credits rate you’ve future C&I some this been CRE interest obviously assets variable and the hikes, kind you’re on these year both the

Vincent Calabrese

interest going plus as figures X.X%. XXX and shock plus XXX rate is you position, our show up And I mean, our X.X%, doesn’t a X.X% X/XX X.X% both from on a are know, quarter-to-quarter. mean, is shock to significantly XXX, change for ramp basis. then I XXX a ramp, up XXX, it’s risk

for and one using think, mean, those of we’ve XX% the as be less than our non-maturity our I retail everybody we’re So has. – the thing may rate the traditional conservative. that time. I experienced movement – and more To-date, for betas XX% model, still in

more of that’s Fed the to move probably XX% We’re started the move. since Fed occurred at

we’ll we the now, And market is, and where So got I our you given year, – and – future and even these we conservative guess, January. on in might year again working it. movements haven’t next but rates. now, the be for a year I little next what right expectation done mean, next the about for give we’re in December it’s budget guidance three one market three is yet right

Collyn Gilbert

Okay.

to in you’d of borrowings? – on have was every you and Okay, last that’s would to taking the into not had points of side and NIM XX basis indicated Fed, that helpful. asset that side the – just move X then Is more rate quarter, point necessarily the consideration Fed that impact expansion. funding kind were just, basis again, And speaking X maybe that with that you the funds see

Vincent Calabrese

balance a sheet, out to No, borrowing. did we using here that’s kind obviously static of and term – things some some

you it, of So in up normal benefit static from kind at pick Fed move. balance basis points the of and sheet, if a we a look couple

Collyn Gilbert

Okay.

it right. there. much. very leave all I’ll Okay, Thanks

Vincent Calabrese

Right. Thanks, Collyn.

Vincent Delie

you. Thank

Operator

question Thank you. Michael comes And from next the Young SunTrust. with

Michael Young

Hey, thanks.

Vincent Delie

Michael. Hi,

Michael Young

acceleration Yadkin? sheet Wanted we’re around that regarding contemplated the that kind the of has your environment now diligence of an identified assumptions led rate back due Was you higher your that? remix. process in in start something during to to balance changed Conceivably, or on that original

Vincent Delie

discussions was and the saw the of think sheet more our rate from about coming I a that interest perspective. changes an it balance weekly No, function we

areas there us hey, be So borrowings, confidence lot subject on expense. of because thought, should a to of will particularly in more we our action. an balance that short-term sure side. we escalation We had the I And, of which certain gained fed think liability up that, little sheet, we a

actually but to them. we cross-sell that Let’s that’s longer-term lock the term use that today, that’s do. cost can bad borrowing in elevated a to a into use know bank, so and we bring clients I what

and to we using demand secure So they’re products. our our hopefully them card bring and deposits using in debit

we it appropriate felt helped to that. follow-up with it data doing benefit has do I and it to through to we’re think And Fed increases. So to And next was clients from be us few our as opportunities. able by we those cross-sell the that, push relative analytics going

average all up on everybody, an actually spot also the was We seasonal, of organic transaction movement, $XXX think, basis, the a to deposit balance on I And grew the significant it and had it way XX%. growth. basis. sheet million we X.X% because on by show categories, mean, I added spot is nearly basis a of on we’ve some some balance watched as this

a deposits, where that to in time bigger the of short to were the and I of So emphasizing lower keep our cost deposits. deemphasizing everybody, we chunk with that we a run because moving reprice what a period want is when leads into assets funding fixing expect to

said, strategy. relative and more into our categories hey, XXXX lock those the And the to Before growth I relying produce. little start going moving led borrowings. we to of I support that for to we’re interest a it in loan not it on need on outlook longer-term we’re guess, well was some those funding up sources, think types we to funding short-term become aggressive now the should discussions us to to so rates positions

Michael Young

sensitivity on then wouldn’t point following I isn’t forward? maybe remodel? increase of the the that up. but I going mean, your I guess, point, just all understood asset that that

Vincent Delie

yes. Basically, Yes.

Michael Young

Okay.

Vincent Calabrese

What Yes, today, It’s probability month does ago from was the it a the XXs. in market, I Scott? the mean, mid-XX%s?

Scott Custer

XX%.

Vincent Calabrese

market XX% three least, and of expecting the December next move, at then more is year.

Michael Young

I of the I run expense could branch still maybe the was next I more quick, on the And there. that rate great. $XX there with deposits runway any more at to might a had Any just improvement? year why from there maybe saves is increased? for cost for there a if color some outlook real million, mean, occupancy full thought a left there shift quarter. room Okay, go last to be little up with And gears

Vincent Calabrese

mean, there is to think there. future software of occupancy of some and we kind back back there’s $X strategic July number I of just a Yes, unusual did still million, have talk bucket, I in there. related We a on. I exit, would and little we our to which will – teams and increase have that say, is properties going we projects probably still initiatives expense to Nothing But there mainly working benefit good initiatives in to that in stuff. over in us, of to unusual of plan kind $X that’s on. million process nothing that the normal mean, three-year save related its I just in kind the commented on, are support about so equipment our June going

Michael Young

Okay, thanks.

Vincent Calabrese

Okay. Thank you.

Vincent Delie

Thank All you. right.

Operator

the And Oetting comes with from next question Jason you. Thank JPMorgan.

Jason Oetting

Hey, good everybody. morning,

Vincent Delie

Good morning.

Vincent Calabrese

Hey Jason.

Jason Oetting

I salaries it. over? or lower employee Yadkin there appreciated? benefits guess was just of if in just the would on cost XX% color But drove I the related being that keeping mostly expenses to missed sorry saves, this and some Was Any the first, in what left quarter? be

Vincent Calabrese

we’ve back out as of by positions being being and happened second in that taken the we all of kept were – just, June, had end the the quarter. cost we’ve throughout weren’t Yes, July said the

quarter that. second of main to that benefit driver there’s really to quarter So third kind the to is

Jason Oetting

on sense. in versus And increased that actual perspective amount a just you this when back contributed make how just then X%. I’m said of kind size That close? SBA, Yadkin get in the believe, curious Okay. was much before I dollar to quarter, it

Vincent Delie

tell what base that. would it We don’t Yes, grew a opportunity think the extra is disclosed And to we there’s about had how achieve of sales we that. force. to because I the so I I that move know away it’s can from we third as nearly you, entire off revenue Did No. details? expect, But of we disclose the that stay that. we that forward, reposition

that keep So just in mind.

pipelines the next there’s opportunity year. that have given we in our that us, think I there we production for move as into

Jason Oetting

Okay, that’s helpful. Thank you.

Operator

comes next Boenning. Thank you. And the question from Matt Schultheis with

Matt Schultheis

morning. Good

Vincent Delie

Hi, there.

Vincent Calabrese

morning. Good

Matt Schultheis

Hi.

markets Just so forward, there the and opinion of of as with in and sort administration in years, commuting some get your patterns foot and rationalization? intimately the looking the last Cleveland down few flows Is branch opportunity traffic Baltimore, degree your branch in Carolinas. staff traffic for familiar in

Vincent Delie

aggressive pretty in franchise repositioning were of saw been we’ve out as transaction at think, counts we well and I mean, the over Yes, consolidated branches. I we it. front we XX decline

will for you tell transaction helps do staffing volume those I the decline we look load within branches. realign however, So you, the opportunities.

segment. because peel can So location there lot our today have we today, focus the decline. to mean, go though But many so think I branches. strategy transaction number small – there to we branch truthfully you as and business, what’s still opportunities of a I back are volumes even of expect is, clients far, locations, But expense to out, is consumer the only those a take continuing opportunity the on the categories,

the online. and by whole our between ITLs, in and streamline on customers sticks strategic become all can mobile is locations more with trust plan entire door. repurposing shifting process is to inserting those out drive we strategy kind form of branch in for strategy. a of that, utilizing to to clicks-to-bricks activity that those having we’re three-year redesigning we doing for we board we branches, branches, products lot bricks. relative our our clicks and a so bricks someday, an all where moving part and we when and dynamic, Maybe played comfortable the content them It’s in that those there’s streamlined the to caught and expectation supported be engaging virtually. processing. analytics calling customers No, goal in stuff about data bring without That’s on online a to what efficiency that’s creating very our having digital advantage heavily, neighborhood outbound, our comes, to our still that So But and to everything web I of a day of have think prepared

time and two down to going of a both to growth a answer, drive paths. where cost make that’s know the revenue very investment take technology. time, but right in complex it’s a it’s opportunity kind there’s we’re and and I out long parallel So

Vincent Calabrese

de to of novo-ed into Part wanted the really we too, program optimization we’ve get markets some that into.

some around that newer more some So of it, have where in in the technologies our get savings, we environment are branches, we’ve concept consultative new to put for and those done. a it the – all that’s branches in customers investing designed opened much

Vincent Delie

Yes, for in Pittsburgh. in deposits just I we you $X.X think, if have example, take Pittsburgh, billion

We’re $X both billion in And they have XX more branches and deposits PNC citizens. retail than marketplace. in do behind we the

that So, – say in wouldn’t that, to no wouldn’t say ability optimized have but we’re also we there’s Pittsburgh, I I exit.

making have sure coverage be those to adequate think I preferences that going you about repositioning it’s amount of as client So, retailer and any just like over the time. change

Matt Schultheis

even And question. the Pennsylvania budget way outlook the their or tactically approaching last are in you one way in business? has borrowers approaching changed the for impasse they are you strategically, Okay. Has or the

Vincent Delie

nonprofit speaking specifically or segments municipal Are you overall? or in

Matt Schultheis

any you would helpful. be but Overall, specifics have

Vincent Delie

people used Pennsylvania think to I that No, in that impasses, budget unfortunately. are operate

grips consequences funding happens I with lose So in to we’ve we think, what come the when categories. certain of

schools not we on would because clients that We’re heavily That in pretty that some we before gone funding guess, here. immediately, a state we’ve player with The with huge rely watch and in have sector, this impacted through higher-ed them, [ph]. be of space. I nonprofit the

here around of guarded, [indiscernible] on from dependent impasse, heavily the some this like first budget support isn’t the for state through and them time state districts to us coming get because we’re them that the that’s grants but we rely to try So, are school The state subsidies. the on municipalities unfortunately. typically

pretty and say, to know for, people our comment So what if well they you Gary. want look I don’t to it I out versed would are need on

Gary Guerrieri

on in continue we’ll numerous well. it through naturally depends We’ve I the I it it in mean, and so been course. past, the goes. times you’ve mean, how it it I long to work through normal covered think

Matt Schultheis

you. thank Okay,

Operator

Delie comments. more no the would call you. closing And Vince questions, turn as Thank I like to there are to for any

Vincent Delie

believe Well, a business, great our from very I of coming synergies I’m all we want acquisition. X% thank our with with revenue in I the have that that focus areas quarter to mortgage benefited we in have solid everybody EPS questions, we’ll we for not ground pleased capital we and still increase particularly in a I the improvement given know participating, I with be banking markets we’re to on, delivered on that able linked thought we have realm quarter the had Yadkin quarters. up optimistic make but some that do operating

that pleased with and how expense our We’re to resulted efficiency been ratio. efficiency expenses leverage to and operating very base in positive a manage gain we’ve able and XX%

a from our front income investments that we’re that going to people going to out focus benefit road just drive and the our of we’ve telling quarters I growth that other we’re EPS the focus every from were made next more. that’s categories know to a been work on than earnings perspective. on four continue We’re to very on couple over fee delivering going growth continue and pleased the or Southeast is to on with about in how

in So I just wanted than been a to position in say our I think today we’re better past. we’ve

positioned in number a again provide We’re opportunities time time markets and can and well company significant proven that of execute. growth we can us that this very has with

for care, for thank to year, so want call take forward in thank participating the the you. quarter the I to I So, look and fourth you call our wrap-up and

Operator

Thank now presentation. attending you you. The is for concluded. today’s Thank conference

disconnect. You may now

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