FNB - Earnings call transcript Q3 2020

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Operator

Hello and welcome to the FNB Corporation Third Quarter 2020 Quarterly Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, today's event is being recorded. I'd now like to turn the conference over to your host today Matthew Lazzaro. Mr. ahead. go please Lazzaro,

Matthew Lazzaro

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

Vince Delie

Good earnings morning welcome and to our call.

quality our financials. and Vince Vince I to the strategic provide Guerrieri, Chief Today, our me update Calabrese, will discuss Gary cover Chief will will Gary and highlights quarter Credit this our asset initiatives. Joining morning Financial and are Officer; third Officer. an

fundamental $X.XX operating reflects performance. quarter Third of EPS strong

across expense $XX As to operating and have environment a success provision challenging million. totaling many business we despite units, continue

activity tangible value as to and contributions X%, our quarter's performance markets X% deposits income increased banking of from With fee-based record On businesses. strong in continued a respectively, reflects $X.XX. average book growth in and per as quarter capital $XX well million. basis, share and loans of This mortgage strength linked $X.XX

As declaring our of common we dividend week. $X.XX continue an attractive dividend commitment paying our by to quarterly last

our addition, points adjusting the and in the sale, the strongest CETX for XX loan indirect increased ratios almost after TCE meaningful, improves CETX to Company's In and basis level history.

provide feedback has the encouraged deferral other Customer positive, through and indicative approach customers we business to XX, given for our model the percentage circumstances at level relief, Our manage during pandemic. equaled disciplined facing the the leading truly been above best on cycles. base standards requests hard shareholders. offering bolstered XX%. presented by and was consistent equity to on October common of capital as illustrate capital risk should challenges of consumer underwriting program our in resiliency low overwhelmingly efficiency help unique this the of remarkable, as quality FNB's tangible loans throughout well the and increased with the going and our deferral deferral proud interest their to are timely of ratio paycheck business the us of These providing FNB's base, to these difficult to total deploy critical global of again Return was extremely assistance environment. flexibility peer XX% demand customer for as XXXX. Lower support to team are our various work dedication customers finances clients beyond is amidst our second challenging of request as of options loan macroeconomic is single-digit programs and second credit industry a management Their by impacted I’m and the loan to results protection times. and the

COVID-XX with teams COVID-XX a XXXX credit and to related response by X as our work they banks manage recognized in borrowers FNB disruption. was impacted Earlier of pandemic. Associates. to being standout evaluate to its and recognized bank quarter, country the be their the bankers organization for in only XX Our third as will commercial through pandemic continue Greenwich actively With the

If metrics FNB's are to you COVID-XX we basis. on favorably sensitive look sectors, at positioned credit the peers relative a on

Our appropriate disciplined within diversification management approach and ensures loan structure to underwriting granularity, portfolio. and portfolio credit our

liquidity organic side, in deposit our programs increased the On government base. in resulted in have customer growth

share Piedmont XXXX, Pittsburgh, FNB Triad deposit. Looking in X at share recent mark Raleigh surpassing FDIC top market and Cleveland, our largest the data the the billion with gained X $X Pittsburgh to in has to total position compared successfully Baltimore, market Charlotte, in

$X Additionally, across X as XX share and retail a FNB XXXX, share deposits footprint June, share billion looking XX% FNB when over of to June to Compared market FNB XX market more the ranked than in XX, XXXX FDIC. the categorized nearly as major in total market XX% the markets or in total, by deposit overall. gain has our XX of And increased top at MSA. top continued

strategy in thereby in of deposits. MSAs household If centered positions strengthened as through The funding added examining more deposit greater our X surge deposits further core gathering deeper than of months, in new myth Diving you has thousands low ratio over last to deepening overall than borrowing position. and FNB by on and overnight a deposits. enabling with to our These than acquisition $X loan-to-deposit eliminate billion the cost commercial deposits attracting market reflect MSAs the market deposits XX.X%. our regional successful execution relationships, improved and $X greater $XXX has look trends, the billion households FNB with we've million share back XX X in total

services strategy, bearing supporting our and products We capital of staying deposit absolutely value primary the rate while and the transaction lower gathering to longer are given continue deposit our our To and we true impacts focused focused culture. relationships interest customers as with growth, generating be to on on our noninterest expected expanding complement provider for added their environment. credit

position are current sheet ample the we balance and to with fourth an the base. of by capital growth encouraged liquidity support expanded to opportunity the ahead Looking quarter,

for X,XXX PPP pursue we've prospects our long-term more with to added non-customer Additionally, relationships. PPP than lending efforts, as

success Given quality have seven turn by products our ourselves the asset more footprint, supported investment call for across firmly quality. the a best the competitive established and we state competitor services and formidable and With over I'll technology financial of bankers, providing our detail on Gary our to that, personnel. as

Gary Guerrieri

morning, Thank you, everyone. Vince and good

satisfactory our quarter, environment. manner perform continues third in work we the During this as challenging a through portfolio to continue credit to economic

accordingly. our the the loss reserves credit of through largely the have I deferrals by industries, for key followed metrics noted update steps you on our borrowers will Our proactive the results the during have quarter up we COVID quarter, hardest to some hit we book. to taking and increases loan an well in with that loan are some to now is built the which for related slight tied held walk environment manage third

Let's some key now discuss highlights.

During NPLs When stood the volume, third quarter of to that the ended pandemic. X of When charge-offs quarter, migration, for prior would a total X.XX%. totaled loan level of delinquency XX, relatively was The to and OREO prior the COVID includes stands while annualized bringing an excluding continued a bps with credit the mortgage GAAP non-GAAP forbearances, largely of level charge-offs remained September at points the softness. loans predominantly net to the the came delinquency have over to PPP PPP at weakness, potential quarter X.XX%. end came credits increase. commercial level quarter, at point good X.XX%, XX proactive loan COVID placed million, due stands quarter. a basis attributable the portfolio in increase XX% portfolios, increase related for slight point at to a On at line non-accrual basis. entering Provision of basis were impacted year-to-date COVID Of restaurant migration the in which quarter our XX which reserve to hotel our additional $XX points basis while ending write-downs a help basis measures management place identify the XX X quarter, X.XX%, nonperforming XX loans related pockets current taken pay during or by with third showing already against driven we increase linked basis, non-GAAP is XX basis $XX.X excluding PPP bill that the a ACL that expense with impacted were on at linked our bps. COVID credits total some few that quarter, the at is points, excluding our quarter. This totaled in on million the and have volume, level risk through tied in Net the

discounts, loan X.XX%. during coverage reserve remains on COVID the reflects quarter When driven volume including acquired amortized the is at NPL favorable which loan at reserve excluding the position for build migration XXX% end, quarter. the credit Our PPP our

scenario which our already frameworks of models We environment. XX% severely loan and cover continue existing discounts series not losses to stressed work Under the COVID this as of we analysis current does would scenario, impacted through adverse stress conduct reserve XXXX test the allowance final inclusive position DFAST on DFAST incurred amortized a and under include of losses, year-to-date.

total at quarter relates deferrals. X.X% portfolio, were payment X% deferment the excluding our X.X% COVID representing it of plan of balances first being our PPP end portfolio remaining to under deferral, loan borrowers and a As requesting related request with second

million to by stand total XXth, October declined at of X.X%. As deferrals $XXX have further approximately

as portfolio pandemic evolves uncertainty We borrowers that continue face. and monitor to credit to and the the conditions overcome currently many the carefully work challenging

and industries granted by these X.X% of borrowers all hit borrowers to travel the we portfolio, to and with driven to which leisure, totaling low operating space portfolio XX% hotel Our deferrals through sectors. highly sensitive energy the continue in food services exposure includes work at total hardest remains primarily as the these

credit we deep industries, our our conducted seasoned operating was these borrowers quarter, sensitive which commercial credit During team. dive and the thorough officer economically review experienced in led another of by

related portfolios, of covered food credit exposure review including leisure, C&I COVID portfolio travel Our services in over retail and IRE. sensitive our and XX% and existing

portfolio of deals, of As position entering identify backing ahead, should this the position In and of collateral in review are challenging long-term position, their appropriate QX during the impacted we the we short potential of part credit final this flow, quickly the better environment. borrowers quarters where XXXX has for with our to the helped us process, pleased and direct COVID the environment to economic the of relative as cash assess are this of sponsors we quarter strength about closing, expected to economic action from us adequacy feedback did take level outlooks, continue. and we review deterioration our

up recognize these efforts our well experience each through and for The and have we depth portfolio proactively have to these on teams as like trend metrics and and success, focused Vince work in satisfactory call risk our the through continued to Officer would of our groups their identifying conditions. credit been it. lending to paramount remain the day Our levels we for working as turn Financial held at and aggressively I I challenging over and Calabrese, his every remarks. tireless now will Chief to credit

Vince Calabrese

everyone. Thanks, Gary. Good morning,

that the Now review and discuss risk our our reduced recent capital rate positioning, boosted results actions balance we interest will levels. sheet financial taken enhanced overall and have

the comprehensive current reserves third what operating Slide after on The PPNR expense quarter. prior our feel reserve portfolio. about sheet $XX on of position X, manage totaling our and and strength noted solid As the our today level totaled EPS review continue We provision loan based balance remain with with a quarter to of the of know good proactively we we $X.XX overall of level million. consistent

quarter's execution of supported actions. continued our results strategies recent focused reflect management prudent on the our risk the Additionally, by

measures For We close proactive took signed with the agreement QX third we strengthen of during to the indirect risk. to and example, credit lower loans that capital FICO sell reduce $XXX an auto home of million proceeds in down rate was for borrowings, fee a amount $XXX a with which prepaid federal of similar high used million being cost breakage quarter this pay of $XX.X of million. X.XX% to bank loan quarter,

roughly add mitigate to shares to FHLB $XX.X fully the rate Results and impact basis gain transactions CETX costs. earnings. at also a million Visa neutral We of to be Class sold the XX in capital risk points group credit run breakage should B

of We continue with the end capital the levels CETX to X.X% ratio based quarter. increasing our strengthen risk to at

of As in the after forma the forma the peer from ratio noted, CETX ratio highest points sale. level impact marks would with and pro be loan the I our median recent by history upcoming will most another filings. in basis CETX pro just considering The XX the increase levels line

capital improved that us Our flexibility this give the at is levels stage additional important economic of cycle.

when excluding increasing X% ratio, which translates into TCE above loans. comfortably our ended PPP September at to Looking we X.X X.X%,

vendor branch the through rate goal, via XXXX our our progressing well to ongoing negotiations. network On expense front, operational we expenses run costs and optimizing reducing towards savings are achieving reducing cost contracts

share On mortgage based and rate the markets, are to revenue interest new gains to banking, pressure our and fee leveraging geographies current wealth capital low offset market environment. the front, margin drive we insurance net notably businesses, in

Let's of now compared loans held shift sale. indirect total were to to the million balances, relatively balance for the prior to quarter, Spot sheet. $XXX the transfer loans of excluding auto flat

a offset it's balances in growth ahead, driving primarily focus and partially bearing Compared of Looking focused remain after to time second the loans in and X% X% down in the due interest billion in decrease growth forgiveness which to organic the to position future. loan deposits, PPP deposits. wind the deposits increased $X.X deposits the was by excluding important We average growth, X% balance sale X% those in on bearing planned the that’s noninterest sheet on enter PPP. and quarter, process

by future noted, growth deposit relationships objectives. a and position growth As and have focus we as overnight us on borrowing to Vince remains consumer core commercial fund generated our our eliminated liquidity ample for building

mortgage revenues, continuing noninterest environment. production very Termination gain Atlantic at million borrowings Carolina quarter increased insurance income linked $X.X banking bank a a B resulted the $X.X down with rate XX%. prior X% strong from and organic increased contributions of remain regions. other million other the for million level bank's $XXX reported borrowers at the of shares, income of in increasing million option while Noninterest was greater products record an reached Mortgage capital a hedge sale banking, and management income. Visa loan last record and of home as related Pittsburgh Wealth was segments holdings the each sizable sale look now gain on growth X% noninterest a improvement in markets. federal wealth, from meaningful to mid and margins. charges Capital the mid significant insurance with extinguishment of markets increased primarily quarter, expense. activity benefiting increased in from million, These sold $XX well due from as Let's Atlantic regions income million as from the to and and $XX.X contributions attractive the in level in a commercial quarter on and also loss again from noninterest these debt revenue, on Class higher costs good these given termination income. Offsetting $XX.X of in reported growth

$XXX.X million Turning $X million, third compared $X.X the totaled to noninterest million which in expenses COVID-XX X.X%, quarter. $X.X X, Slide the quarter of second an increase or expense in included of to million

or due Excluding benefit given in million expenses, related these quarter, significant originations production employee PPP increased related to extra and add salaries salary X.X%, COVID-XX loan the higher loan which FDIC XX.X% an assessment deferrals, from to noted primarily decreased third commissions, primarily $X.X noninterest higher expense, to the related of origination prior lower equaled related is production expense the FDIC a in higher $X.X efficiency the liquidity compared metrics. rate The expenses improved million ratio previously. XX.X%, insurance day operating reflective quarter. lower

benefit to current Net growth of rate assets income performance Looking interest efforts amidst variable tied rate supported decreased $XXX basis declined of a The to was X.XX, in point our basis interest growth based funds XX offset the with of of of originated costs revenue asset lower X.XX% compared XX short loan points, reduction a businesses revenue, the the given lower on end basis very on interest X-month optimize the rate funding net total the total XX from and X evident decline XX at to to demonstrating importance rates, yields our points. margin to at as reflecting yields having reduce the cost yield impact of XX pleased environment basis million, basis have points our to second environment, curve. down loans of interest the lower diversification. quarter helped point points the in earning to bearing which We're in basis the loans on they as low and interest cost totaled the LIBOR. deposits, deposit stable rate as mostly fee fixed

expect our September Turning to PPP be flat current to generally period we timing XXth, and outlook, no to fourth to quarter expectations forgiveness the requests. of given for the loans assuming process SBA loans,

customers see continued an third deposits. on I'll increase our that deployment that deposits do levels, we quarter decline to from actions. While programs expect funds not from their further government of stimulus any expectation transaction note programs, organic assumptions the based expect do received to government growth for through include we that's

We quarter the quarter slightly down be net inclusive loan third of expect fourth interest from of to impact sale. the income

PPP assuming any income forgiveness Absent quarter in in the not be sale, have quarter. loan are the expected We fourth interest to would we flattish. the fourth net

We continued similar from contributions some banking. reduction markets level levels in strong and businesses of a from record with capital based fee expect mortgage

service increase We recent charges to expect transaction to volume rebound, continuing trends. given

fee noninterest we income at expect in overall, million range. be total high the to mid income $XX Looking to

$X.X excluding up the stable expenses expenses to million. be of expect from We third to quarter, slightly COVID-XX

expect XXXX. effective to around full be for the tax We year the XX% rate

to in XX% of mid XXXX impact strategic from considerable we low effort the out years in currently consecutive at taking to our down XX% the on environment. bring operating building to of are the we’ve past initiatives, rate budgeting of been and taking the for currently. are cost to in early cost saving levels efficiency Its to XXXX, have ratio over investments support manage interest structure meaningful -- of the low seek overall and will our again million we XXXX. Lastly, stages $XX we Similar to

have to prior we in about our to scale gain of close consolidated the current the acquisitions, years, from In which is network. past X branch XX branches XX% addition

will important of growth We driver XXXX. in expenses to have position generating return us positive and leverage, operating a disciplined it managers of and mitigate an always and be been costs to

January. guidance details environment. share the the will provide detailed more challenging of in Overall, in We very quarter XXXX pleased when we a with are we performance

strategic some XXXX. an on Next initiatives our give will of Vince update in

Vince Delie

Vince. Thanks,

traffic, The new since Now optimizing regarding consumer In digital deployment strategic to in our the and the adoption through averages. into to number initiatives deposit appointment. of higher customer with exponential increased online on focus continue continue up delivery our activity trends bank, call. of environment, digital last key mobile enrollment shift on progress growth increased like translated focus I'd to channels. our our channels we mobile In website XXXX XX% compared current has our website towards to

we mobile level. XXXX and each the seen fact, XX,XXX compared with have by monthly both average increased users average In online

traffic, visitors website Regarding are up monthly XX%. nearly

optimize to at our continue ready to more of execute network, which established consolidation. branch Looking making delivery channel, program branch consolidations for more included our since of may banks the physical than our XX one XXXX, we active FNB

evaluate behaviors well new consumer to enhance consolidation strategy expansion corporate retail We We evolve. select and footprint in thoroughly banking novo as our will across our support locations, plans as will continue which novo as efforts markets. additional additional to attractive develop de opportunities these recently announced de our

at growth exceptionally ranked Charleston quartile to FNB's tandem works branches efforts into supporting among our currently basis And and million performance of are This building credit balances Carolina the $XXX successful in well corporate entire with back wholesale $XX nearly our has grown the branches on next with we steadfast as for commercial of bank into deposit momentum brought our end the September. growth upper a carry remain in with our the region recently are retail these consumer compared performing network. while to year. South million the We compared customers to loan as offices rotational respective banking teams nicely example, For XXXX. the Charleston approaching

increased government XXXX. more A liquidity utilization impact into with commercial lower Given upside line the moving rates. customers programs, the have normal from offers environment stimulus

where This built is relationship investment consistent the market local based closely us the local decision bankers with high-touch model Our in in well our and technology. during working has are making and coupled the with served pandemic on customers. our approach,

markets, our out certain treasury local management across embedded built specialists and bankers to efforts. support fee-based we As such high all commercial as capital we've value markets businesses,

for strength year travel, the Pittsburgh in Gazette, to also Operator? area our necessary our consistency. to well-informed having is our enables employees. Pittsburgh where would face-to-face wholesale With physical a that in benefited like Together this the hard decade best our strategy limited key a the benefit our has was a market, bank, is mobility to our with Post the workplace results support consumer I culture shareholders possible. in made from included commitment call operator. for for directly we FNB share to as to FNB excellence work FNB of our our have our During pandemic, continue pleased decision long-term shareholders, of deliver by of clicks-to-bricks One XXth our these platform. signifying and am interaction the recognize our makers and investing consecutive customers. results efforts These and to top greater all attractive of heavily with who by that, digital returns to employees I'll and FNB dedication element over located turn the

Operator

the with Sandler. Piper [Operator And question first Instructions] Yes. Frank Thank you. comes Schiraldi from

Frank Schiraldi

Thanks.

Just the first mechanics. on NIM

a and does rates securities room there the Is quarterly accretion, I next think then, accounting how purchase I about quarter. you forgiveness, play play -- guess. parts, talked side? flattish does does be on progression? for think no And moving Vince, that into the deposit the will more that trying reinvestment the lower. through Obviously, going margin, But so it negatively guess sounds about impacting NIM PPP PPP there to just like Just, still

Vince Calabrese

being I a by to fees the a is The additive are PPP few in. points margin include things. would you basis when few say Frank. that slightly Sure, actually the created

a of the third quarters other. point So points. I'm basis that I kind LIBOR a bottom here, has flattish XX, XX as of spot, far there. for fourth at Really, of looking kind been quarter, of as being within look stable to each the the and from quarter the end beginning the the so kind mean, forward of basis

So LIBOR think bearing stable I the on costs room still from deposit helps. more here There's being interest side.

brought was slide, XX in quarter to had of the the we end points XX. down As it The at we XX. spot basis the

of you're a as ahead basis basis then point, another the points quarter. kind X in X would a starting kind So expect and month improvement points we fourth of

kind So margin. is the deposits XX in rates the coming on additional just cost to are. loans you lower overall of fourth then interest new where quarter at X the have bearing in of coming dynamic reduction the on rates, given kind of And -- loans at supporting just other

kind of if and you the flattish remarks we comment prepared of you So together had it in run to there. get that kind the all

Frank Schiraldi

you. Got

if levels? just to mean, providing terms into of wondering more just Okay. terms read seems should in guys -- the like of and in pretty in sought operate balance have I the to really sheet win capital anything I if streamlined you with can a capital. there's And capital increased get earnings, the but flexibility, you then accrete actions, no impact increase we it more always

get additional any the on industry think, pressures, any or you So think general go need ratios there to to you where where be and actions to to is could pressures there there? to change

Vince Calabrese

balance side to to position. asset just it saying of balance sheet there's change. No, actively optimize different year at least at options the considering of sheet kind and position the more that last the We've we've no for and capital the looking been been

and it of basically good felt points thing basis continue about We're then assets kind So to generate There boost aligning. at which new looking a that selling in points program the the as basis right underlying some to get that XX they a good as so securitizing forward. the now. other portion and we we've while where everybody planets we manner, like us at TCE business, that then we'll remaining buyback are going, But ratios, sell a smart us in than is gain, capital come share just to opportunity CETX, through gives of and do or to to then powder a And kind non-dilutive slight to about just the do and XX go certainty indirect a a for ratio was portfolio. more to opportunity environment for there's been a is to this restart economic of that. and the

opportunity And borrowings forward. really just then that we’ve looking rate the to itself. it's pay B we were monitoring we at of shares a presented also some loan gain earnings Visa attractive off can had Class X.XX run kind So became the so -- home helping that we those, sell for the very while had been going that at rate

And So of like sense that. economically forward. made backs going it create do I to just kind powder again, said, some more for share buy

Frank Schiraldi

provide, from criticized XQ you just the you could ask do where and or trend would XQ? just then I into provide Gary, really And if great. Okay, quick, classified

Gary Guerrieri

Yes.

really total hit the We And through these of few we dive was in important regional X-day in billion these my to reserves million where aggressive we perspective. really on about And to of review this and at into and Frank. another rating senior $XX positions restaurant one-by-one borrower. portfolio the I industries review each against walk reviewed looked hotel COVID group credits our a that moved $XXX special of mention. period maybe really and over to mentioned classified Let in other wanted bank's hardest operating hit economic proactive actions about $X me portfolio. assess borrowers slightly relationships And credit handful million sensitive up against you that, environment. from took deep we we impacted. appropriate date building a remarks, current mean, conducted officers, with in our primarily borrowers as a risk of Really about COVID under I the impacted portfolios, the the the pulling these that be the into hardest

of about the build XX% the that business these about to are portfolio essentially by prudently portfolio pieces restaurant and XX% of reserves the We economy. of COVID impacted hotel migrating are against

finishing Just retail against quarter some that the there included $XX also total during portfolios. built in million these We've $XX.X IRE. total, million provision of we up of

the was So which and and felt majority and these we the confident we these really weather with they'll reserves the borrowers to was the of positions piece, thing meaningful of building were the remain credits, prudent reviewed pretty we we look storm. pleased industries the it across Overall, at these do. when space,

at XX% space, point, only at heaviest deferrals. The on you and expect about retail hotel right as X.X%. deferrals Finally would only are XX%. this IRE very the are low in Restaurants

overall quarter. the were with positioning pleased we So able accomplish review the and during that to that reserve

Frank Schiraldi

Thanks all the Great. detail. for

Vince Calabrese

Frank. Thanks,

Gary Guerrieri

Thanks, Frank.

Operator

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

Casey Haire

Good Thanks. morning, guys. Yes.

Vince Calabrese

Good Casey. morning,

Casey Haire

PPNR couple A of front. on questions the

First adjustment off, housekeeping, much was the quarter. that? in How purchase the accounting

Vince Delie

The $XX the PCD quarter. third million accretion in was

reference, it second for $XX. the was million quarter. in X Just

Casey Haire

the to revenues is expenses for the expense normalization Okay, the excellent. but keeping XQ it down, obviously, like and in it? slightly outlook just wouldn't What's to quarter? see so calling And stable higher? then, --you're wouldn't leverage to very strong mortgage be Why expected, why curious banking looks was revenues I'm we be fourth

Vince Delie

the end quarter, you in things typically I have of fourth the year. think at the certain

still -- fourth going first is all, quarter. You in the strong of to have mortgage be

level So expense again, heavy to that commission a at be have with the course. we're going will corresponding related revenue

close at year. how the You the depending business they different the year, on all units the incentives and have out end of

fourth the you that's see of in quarter. kind component So typically a

So, managing there's mean, nothing we're unusual I mean, costs. I there.

of the earlier million As basically we've a overall cost we've goal reach last in removed our two from the year, $XX a about $XX to with years million. level X-year structure for talked

been kind improvement XX continue out a this throughout that's the take a optimization, to year, year everything took process and out contracts, So every renegotiating that we last the year, we're branch going of to do to combination of we XX and process day.

So to efforts those in pay initiatives. investments continuing some and are the for strategic the kind of helping of

of So to it's really in Casey, addition those items. activity, just kind normal

Casey Haire

terms and in strategy the going book? half the current hotel in Very the hotel then driven just the for quarter much is Okay. deferral what missed were deferral? of trajectory well as -- did hotel and specifically the how charge-offs the just hotel of expect this, lodging the the And we the still by the it -- is from if loss do given of forward good. level I what in book, book, book, as specifically hotel here, And in third -- apologies so book,

Gary Guerrieri

Yes.

million terms were mentioned. to the portfolio. to the were a of that over continue the little borrowers. I've we're as We book Casey, In mean, charge-offs business, review $X with pleased those going with of And charge-offs, as just of we look I in forward, work that

that and have Some through those we'll particular seen. the of built reserve under hardest we COVID I have going some work why we time a those that others, That's industry portfolio. borrowers this than are economy accounts. tougher against to hit it's mean,

only only as So And and of appropriate take actions through There's business. manage million. one it we'll we move nonaccrual accordingly. we quarter -- every fourth quarter that credit there during the reviewed over the was new book in $X

continue to we'll as the sit forward. at portfolio a So for of and that gives that where stay ahead moment we move you we feel

Casey Haire

just one, And Gary. good. Very Okay. last

I a mentioned sell portfolio do you're you or to maybe that expect at gain. selling, the that it's Vince, you indirect auto think

so no or that And there's -- portfolio? no a loss that there's be on can built reserves

Vince Delie

a there. things dealer sell were we No, came it little reserves the We through bit it and than able all to kinds expected in. on what better actually of books

kind also. to par execution was reserve slight we a were of of sell a it then and to the were -- able than we was kind premium going at It the component of have you with. -- what better So in it

Casey Haire

Okay.

I I'm was closed so that it portfolio in thought been So or November? be to already was due sold sorry, has

Vince Delie

held for in Casey. It's sale, Yes.

yesterday. balance but in right. It's on of in it's sale for fourth the sale. the close executed bucket quarter, for It'll It's held the sheet as held You're all X.XX.

Casey Haire

Understood. Thank you.

Operator

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

Michael Young

wanted Hey, thanks the I start follow-up. to of kind expenses a as for taking question. the on

challenging already $XX kind and of You've million that to of be still headwinds saves basis. were of that of for additional environment on cost revenue Obviously, the kind the some year-over-year is mentioned targeted kind going XXXX.

the positive should So so in and that to bottom ratio next you be operating saves think year, efficiency just to it drop ratios those maintaining is to you'd guys expect more line of leverage, year, of or next about to stable terms cost better? better efficiency it

Vince Delie

year, have continue the some [indiscernible] platform -- been I to our would we've system mean, the teller branches our in strategic say, that and we I upgrading on Yes, during are initiatives the working fixed initiatives.

that savings said. generating of to goal operating I next So of for like kind cost with leverage, the mitigate positive getting any you goal think increase year to be would in the back expenses

past us, that's to goal key been that. a is to the and for the it's goal return in I think

goes bottom because costs So, right, to the clearly mean, offset I it's to it increases. going other line,

to an process, of in we're the clearly that. benefit there's And early stages our budgeting EPS like So Michael.

have and -- we with the help of be list detail of it's items to going we kind the So in it past. in talking that are about

in there's a in that And refreshing like think and in I we for and we said, branches share -- finish the the a So have And important, are too, the more guess, we'll we January, network with of X-year goal have up, this level the outlook to in as to, behaviors it's prepared finish process process. five XX year pandemic. I well, get XX But over and I information we last the XX% optimizing we're once next then that we'll at changed closed we've January. mentioned look years, my network. customer continue any remarks,

look, continue really permanent, not. we'll lot some some of don't have to it a yet, branches. may And but will that of be know of We still

network see there, opportunities We customer behaviors how out continue at the and to kind the optimize of look come overall pandemic. of

Michael Young

of I some openings, you the bit guess the or question over helpful. is a digital have new cetera. branch done maybe guys of last a but for this That's year initiatives, two, reinvestment good And et Vince, in more

of So a behind seems that's maybe it you. like lot

Charleston, more an I But cetera, doing just that of the new So put guess, the been be well. would to line. there obviously drop against that to to et opportunity cost branches some for bottom have in saves

stuff. think on trying of breather maybe on that a your there just just so about some kind to thoughts generally a And of reinvestment versus, pause and or taking initiatives new

Vince Delie

Yes, developed out planning we're process. mapped I technology. view CapEx strategic cycle that in second our and longer We've think, our term a X-year of we investment the

forecast. then we discuss our we So where budgets, we want a at our to be future Then CapEx layer together, it devise we into sit budget, and point.

cover your what what And So does in requires we on to -- it investments those that that's statement. which pointing we you're is, us an have. ongoing basis, out

executing position elements offering. think to continue forward digital continue plan. we're I to our to We're add in to move that really as good going our we

to Soon, whole our originate variety a of depository much side. loans on able be the completed pretty We've we'll website.

We a you end-to-end put open purchase our if are on and it very website, for multiple we've loan multiple moving that globally And if that a is shopping are businesses platform. products unique. third format you've What experience It's does integrated it fee that and at looked digital one-time. you be into is into us presence, to platform. products the where the accounts -- And and on market services the ability the based the our then us side. to products very piece also website. -- the see a can It's of gives you'll then without physical our banking that changed services, at of cart unique

process very so The products base exposure in to out website. is fill streamlined or to both relative and one to PPP that the can amplified a our customer consumer to for significantly the goal to Our the interactions loans fashion. streamline they open need they the products has other continue with and only application that depository

digital of about website us, products on has as So our helpful up, exponentially. those the services. clicks very our for I and into That’s gone number because website we’ve content embedded said,

products we to schedule scheduling, healthy products shop was other appointment tools, all appointments, other buy So that prior around, depository mentioned the people can pandemic. use done decide the or than just

round move So number forced to able first was on a setting We've why using we numerous banks kind of pandemic. any channel the our we process with were and response That's about an significantly the markets. a as And was that We bank a an everyone throughout deposit with digital it fully balances with well up our with -- this digital up, in great in awards digital. pandemic. shares larger our PPP -- Like to portal We've capture basically very rate. played we banks of outperformed to that do digital end-to-end environment up into appointment a success set everything the that. XX% market received really just with about started few very our are and had through us. was for of our

start decisions a the that pandemic we with So read pandemic. capital. through I where think and to can the we our we're bolster not leverage deal in as get would position into to I

improve where median, pandemic. I that's increase our relative been stated think levels prior I even particularly we've think to we We now something basis. pro felt the pure CETX, forma to could that a it's that, a peers on

did capital not it actions portfolio to took was a capital, So impair made do us buy bolstered perspective to at very a we we The gives back a complete that good And move next shares, flexibility with It long earnings because us we've year. from moving the whatever. sense. for way. into come capacity

the a objective. door for been us. So stated it opens that's And

I it. not So into would read

I change Anyway, pressure our to point. operating at We this is at an all there opportunity. have strategy no think

right you I data, were look influx there at before think the we were if PPP FDIC moving deposits. the even direction the -- of in

Our built we've noninterest has the time. bearing but know I experienced cost an substantially. deposits are up over industry inflow, low deposit base our consistently

So XX% XX%, XX%. of relative the upper we're approaching cost we're to the range -- low XX% terms in deposits total,

the general lot in think, down or was the answer. Carolinas. with Midwest the continue the the markets direction even in in are I that's all in things those the the right hospitality, to impacted, There's industries just I restaurants, that a Carolinas of is being much and than there moved Anyway, more with activity the more that there's Northeast. in activity we move So, in,

Sorry for answer. the long

Michael Young

Gary. good No, That overview. And a last that's for just me, one one was maybe okay. for

there a think that Is half on 'XX, will period thoughts restructurings or it longer resolution? to before resolution credits. update mind and come in of maybe kind timing of extensions kind first or there kind of sort it out may asked of the charge-offs these I Just of of draw might or the was these be that year? of next some over Is when your of -- any of about some

Gary Guerrieri

problem say, you in mean, them would know, them we're we very the Michael, and as aggressively proactive I road. I try move address can and Yes, manage to the credits possible. kicking down not if

moving In think terms into and through little a in past industry XXXX. expected upwards losses, of as we've about talked losses, you the move bit I XXXX

-- probably I on in, occur. but see QX through at environment So you'll at those to expect point XXXX. see the that as to would that losses increase accumulate we're think I start based would you'll looking in I that well, the industry

Michael Young

Thanks. Okay.

Operator

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

Russell Gunther

guys. Hey, good morning

Vince Delie

morning, Good Russell.

Russell Gunther

to follow-up wanted sale. auto Just on the

ring-fence we sacrificing of this the So and dive at power, portfolio this for it in and makes review that a of without derisking way optimization the really there's in FNB. culture ton a of much continued guys one-off Wondering of this deep move? should if consider the earnings opportunity or there's a sense did opportunity, you quarter, was more

Vince Calabrese

it If sense us are of good interest Yes, that as the things know to we'll that makes it. the best evaluating you make to opportunities. financial there's and in come I also shareholders always do sense, light, we're would say,

quarter, planets lining we shares. So to, ability together buffer a and and this helps forward creates that to had decision maybe I buy here we're smart with things pull make back I like at always kind said, the balance of of looking like an said, going up to all the capital, And different some elements financial sheet. it boost opportunity some

there and we go the opportunities down So may road. look we'll continue other be to as

quarter-by-quarter of thing. a So kind

Russell Gunther

Any opportunity as analyze you portfolios think better in had continued you to that? a where particular might have you

Vince Delie

commercial as look to I the going the sold think well past. a Regency. loans in from we're as We've perspective book. sold We mortgage Russell, risk

time. got out So consumer the right we at of finance

the going assets, we and those our assets in have returns decisions sheet. make get to the assets we off we associated we're what continue and look profile about to we're evaluate I those with risk on together We're holding long-term going think to look balance moving at and certain at portfolio. to going

great done team whole I done and his think Gary we've has done it and very the of effectively. credit And Gary think job. job a risks. has future addressing great And team a I

Russell Gunther

… appreciate you I

Gary Guerrieri

as speakers] basis, always a Russell, quarterly do. [Multiple we on

Vince Delie

a it. on goal to that other get the so in strong position of is Our really side through we're this

So a we're understand of degree this with situation. understand managing that great we here through clarity, what face. We

the continue I crisis, a pandemic the and pandemic going the think we've addressed various position elements of post we're so economic company of strength to that crisis. side successfully, of to it very we're in position

Russell Gunther

Thanks very much guys. I appreciate it.

Gary Guerrieri

thanks. Russell,

Operator

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

Collyn Gilbert

morning, Good guys. Thanks.

Vince Delie

morning, Good Collyn.

Collyn Gilbert

what from of little thinking markets? could also about why some versus discussion pipeline franchises of kind just business. is of bit maybe you're start you of if reinvest variances a then with geographic start kind their the to and Carolinas now, from seeing, to around just your in what sentiment the the of borrower perspective, if Maybe Ohio commercial -- kind the a how in your businesses you they're seeing right loan you're Pennsylvania, when color And think they

Vince Delie

things been so of borrowers I that in still over think gone little as not we've a election their commercial and relative conservative. commercial there's the lot potentially year, businesses change We're have the the borrowers yet. through that's can can an more answer well, We're going Gary to pandemic, a just through.

were that the We just there's in caution So I investment. started. call before think of terms been a bit about little of capital talking

conversation. directly on by that there's of pretty of that So say or okay have performing loan COVID a would of most well. impacted demand, damper a that still been lot not but are I the little puts bit industries

at to down. going utilization of for economy that aren't that that the online, pretty you hospitality, base a restaurant the were obviously there's the mentioned I get is directly think customer certain Gary within remarkably that you so degree outside industries the heavily. So impacted But rates those utilization at are and impacted look optimism us that as businesses, book, of When they we're look rate bad. things this through

or from as they're middle other consuming I not opportunities a so economy at we're business to turn funding as Now that in when we other some running small benefited base, PPP the subsidies at you their because look reduce a they've But point there's assets. where working around. inventory think have upside a customer more to it, heavily facilities capital cash starts market, or investing and other

is I see think kind manufacturing geographically, starting of flattish, the they're improvement. sector to

So the is in of to strong Carolinas, a see The and done a the continues opportunities. starting South, see adding Midwest they're little Charleston the mean, prepared Northeast pipeline, mostly more exceptionally people probably into comments the Raleigh has XX I continues very There Charleston, we and day people mentioned the to bit. I activity. as Charlotte Northeast. a lagging look a has migration from MSA. to be into my well is

retail banking opportunities in business with there's perspective that -- So perspective from and there's market. businesses or there a mortgage formation

seems it to our commercial Asheville, So activities pretty be in expanded We've North Carolina active. Greenville. and

and some Carolinas for good So stable want the perspective. I see you credit activity a than And we're a starting don't if relatively been are both The to the there. anything? growth really us, say perspective doing Northeast add Gary, well. to I'd has know, Midwest from

Gary Guerrieri

mind. the on been Yes. their there pandemic a many are borrowers hold and on also as it on they've the top Collyn I cases. with thinking the facing The uncertainty still lot mean, The while I’m is at mentioned, moment. election of for of little actually continuing Vince -- a as in

are going major extremely well said, some in forward. those and are So doing this even uncertainties mentioned two being today. Vince their investment That of are also, the environment to investing critical borrowers as

an we're Some reached rate are line low, has XX%. all-time utilization now commercial The hold. on at

that and standpoint. from some continues pay cash reflect the uncertainty conservative this to down decisions a borrowers' to handle to to So debt, go of

it it the loan a think, and forward of they're approaching a tells a there's I backside So the on this, growth But going industry directly. opportunity lot for of from me perspective. is what demand

the forward we're of it. backside getting to So looking on

Collyn Gilbert

a we all lot obviously color our precision model given of with And just, component that I Gary, charge-offs. Okay. on to the more That’s have it's now, appreciate of be -- us kind a you, you're then helpful. Unfortunately, question for CECL. a models that giving net

net just So is COVID on out you lot But of it outsized as of Are terms of pressure of you of so potential to losses, mostly the say charge-offs. a look asking on anticipating the -- we're the questions -- why greater in not near-term you not do just is or so see in segments related book? seeing which let safe me probably segments? terms that kind in maybe ask, other cracks you the losses, --

Gary Guerrieri

that today will is very The really a nicely. we've me. I you, X-day we mentioned, to talked tell And the holding feeling as team total build sat period earlier that the of needed the I were is surprise accounts I in restaurants. in went I very that the mean, from was Collyn, of $X that one-by-one. to impacted that book I about the And away softness with walked hotels, down through it impacted looked restaurants with And I sensitive where that review and up be. worth reserve very pleased COVID area, credits. over the as We're billion potentially pleasant these good. it. the the performance at discussed mean, and areas

levels come we acquired already. improving. areas And things sensitive that a very see heavy lot got that in losses We what up, are lot positive those dose through, see it think a you'll through think I A Occupancy it book. the is book has the a COVID you'll of So without in again, of happening Carolinas. I doubt. of in think

are those As we've talked, areas more active.

levels make some positive some So we're seeing to start occupancy headway there.

but it's impacted your COVID really concentrated sector. So answer hopefully that of question, kind helps in that

Collyn Gilbert

your final And average have and lodging one happen -- the is. on kind I then the that of That speakers] a LTV, you the hotel on kind LTV kind [multiple is front. you're to Okay. what of book, just Do of $XXX-some-odd-million question on guess,

Vince Delie

Yes.

You're right, Collyn. that's about XX%,

Collyn Gilbert

Thanks, it All right. there. leave Okay, great. I everybody. will

Gary Guerrieri

Thanks.

Vince Calabrese

Collyn. Thanks,

Operator

you. comes from Thank next Inc. Matthew the Breese Stephens, with question And

Matthew Breese

Good morning, guys.

Vince Delie

morning, Matt. Good

Vince Calabrese

Hi, Matt.

Matthew Breese

few. Hey, just a

the And First, total have for you balance do what then, average was related of the loans PPP the income? quarter? PPP

Vince Calabrese

the the interest for in. about runs kind X% the a it including that quarter, of $XX the third total coupon income, net come balance million Yes, plus at fees $X.X quarter, billion and the average

Matthew Breese

Okay.

Vince Calabrese

interest income. And that's net

Matthew Breese

indirect loans, the million $XXX then, on was And of yield the auto that? what

Vince Delie

Yes, X%. the was about gross yield

Matthew Breese

last And to how you Okay. year? Could if retain? for us potentially this were you just would activity the you of you like product. selling that of mentioned origination sense a the this, much to And give versus repeat then over overall course more of the sell

Vince Delie

to selling while in that the class clarify, looking we've asset this as was at Yes. as No, just securitizing I portion. saying or potentially a past, the for been far

sell at point, So, have two. of this was just to we've the or any last year been slugs a This review plans result don't doing we it. of additional any that for

just to that. So, clarify

Matthew Breese

Got it.

And … Okay. then, know I you

Vince Delie

what Yes, service. it us it for know is would you does the to infrastructure it built -- out

it So … that's future will the us an think we provides sell in opportunity with to I

Vince Calabrese

a on Yes flow [indiscernible]. basis

Vince Delie

basis. flow return from forward. shareholders We're economic a going capital On it manage what's for that's an perspective, it look from best standpoint, to on a at how the we going

Vince Calabrese

a is to to I that's capacity was the sale, bulk So, to of but have referring we kind a Vince point. it. be good right, do able Yes,

Vince Delie

exercise not. completing efficiently the ability capital -- to environment stars to terms off align -- start to going is going don't the balance that's through we and that management. us that the in wanted I'm the just right, this have business, capability are do I assets going of we ramping option up to -- we to the those not move are think was sheet another and -- pricing gives suggest when in Yes, that this We're just

Matthew Breese

Okay.

Vince Delie

Does that sense? makes

Matthew Breese

there some normalize. And that is a expect quarter? saw capital makes the pipeline you about provided do you No, How the then, to business, I broader this what mortgage perfect little looks? bit income lines you you fee know Yes. But and could activity repeatable of and and talk sense. markets what guidance

Vince Delie

volume. just normal this a in Yes, because is, the new good originate our the that mean interest Really decline to than quarter I previous on hinges outrageously of they quarters. little was I ability it rates. think were more steep

as start to So, for pipeline is see to the we customers. there derivative up, us opportunity sell to pick products

syndication's pipeline very Our looks solid.

amount a the continue decent recently. are markets income So that in. our we in generating brand as our fee that's new to of And name, elevate we been

more lead and seeing to transaction. are We more opportunities

that to today. our year expect areas plan success there continue And as were that we as said business that grow we're and expect through to had we recently out move strategic would we essentially we've some three So continue. is building the of other part Then cycle. -- I've great to there we that

may We services. we our establishing that larger municipal both eventually, advisory through So corporate finance clients provide debt capital a services, and benefit markets. finance for broker-dealer access fee were income advisory the from to

enhance So income there that are doing things we're the fee certain will that in future.

augment we the that fee So helpful? it garner. derivative will Is income that

Matthew Breese

it's I I questions. had. you. taking my Thank appreciate helpful. appreciate all Yes, That's I very it.

Vince Delie

Okay. Matt. Thank you,

Operator

with you. Fargo. And the Wells from Thank Shaw next question comes Jared

Timur Braziler

Hi, This good is in Braziler Jared. actually morning. Timur filling for

now, cash I'm do that flows hotel Gary, it's Just appraisals a starting how pretty that assuming I of the follow-ups couple Maybe derived? for to me. with, guess, impacted. was still challenging lodging on the and XX% to right given loan portfolio. are value

is going losses couple you're with allowance have over at through to quarters, comfortable flow of So start the offset loan the value? how to for coming established the that XX% book, in or you you in that that to the level, new the looking the losses expectation the losses will I expanding reserves as we current next next account those quarters? some incremental to to guess, think seeing already are And backfill do few that maybe allowance

Gary Guerrieri

position each of portfolio on the reserves built we've the credit and Well, based of during that quarter. each credit in the performance

appropriately entire it that it today. for positioned through went Timur, book, essentially and sits we So where

status non-accrual only account moved As mentioned to quarter. one the earlier, we during

that So you state. in is know problem a that's an account

today. right now working sit are We here as through we

every it may that I default little others, single I business. that in challenge we But that asset more on but a So, speculate the was good not there positive feel than of at may view there about in and are as book a are overall, can't credits book. mentioned earlier, this some review -- or that of point

for we're will that default of under certain in. the Some environment them

on as based LTVs far it's the at the underwriting. LTV, As original

would you over fairly into down to those time. So expect come got a going XX%, that cushion At things. we good

the expected ones but there that and at should are book pick look you those able when in defaults on in content be an loss minimal, reduction content potential So will that to loss on assets valuation, the be defaulted not continue.

Timur Braziler

Okay, that's last then good for me. color. Thank just one you. And

And remain? look balances estate sort we at how the guess strengthen are should growth is Looking that what some you the expectation seeing in verticals the you commercial the or higher I some real as of there? of given expect CRE retrenchment climb industries impacted quarter, ahead,

Vince Delie

the Multifamily some and seen strength has well we've And space. as and Yes. warehouse commercial industrial up well. in held

are kind those of segments. So the

primarily means, new we seeing are any where lot of it's multifamily seen have but the by activity warehouse commercial not industrial in a and some space that activity. We

Timur Braziler

you Thank color. for the

Vince Delie

thing. Sure

Operator

Thank the Brian comes with from And next question you. Martin Janney Montgomery.

Brian Martin

Hey, good morning, guys.

Vince Delie

Brian. Hi,

Gary Guerrieri

Hi, Brian.

Brian Martin

you where for pickup Hey, given conversation that. the Vince, you think capital about pro quarter, the you about this on stand one on just a forma to the the capital as on do question, just levels, -- buyback the think back minute

Vince Calabrese

a you feel comfortable light where clarity the once would more I think that going, here the environment, the that tunnel end Brian, at just resume for some and with share of we of to looking start the there more you're kind of kind buyback. -- things is about are

in it authorized. it's So fully place, was

do like And of once below value, feels to tangible with the stock trading it kind it's ready to are it. We book time attractive. go right very

pull, it's going. certainty once So more trigger is everything little would definitely bit we just of a where about have a we kind

Brian Martin

Got you.

quarter there? what you're how quarter second forgiveness just your Okay. of plays on said just is based Perfect. And first it I mean, quarter, done as most then how with PPP thinking seeing I customers -- your on this the nothing know of out, you and that anticipation about get first you’re the or quarter in it now?

Vince Delie

have, process from origination we've then want June XX% kind the in built as of SBA this work. would run the and we side kind of of just based XX%, current to of thinking we that tail that second the to is guess, has we commenting out now at kind our that and on they I forgiveness a XX% our go But how just be of side, there. the for ready kind portal XX first the and put in guesstimate process really. kind the built have XX% quarter, for have was SBA quarter, would down on a Vince kind another things also of the

go take But we're is, of the it's going of in to back. how long ready SBA and expect we turn practicality the start going early know November it to kind So those to to of be submitting don't part those for November. and to decisions

we that's kind that. why assuming first So really are of start to quarter

Brian Martin

Yes.

And Okay, one just Gary maybe then perfect. that. on for

should On and guys but the added lot bigger concerns Where are the I did kind the guess today, as that this talked Gary, you've about just the retail IRE, there? of restaurants, quarter, you reserve retail your hotel on? guess the we dive? you just in what that I focused about a where deep are thinking IRE, portfolio And be

Gary Guerrieri

it -- it's It's that good move $X feel credits that portfolio really sizable we was impacted. slightly. -- where it and book about position million very few had a that we related a fairly reserve and more built bar retail Brian, just a where Yes some book, about. in tenants where It's up exposure of that the reserves the it, only

We are it The deferral rate not concerns this seeing whatsoever. point. it above a on in any just is touch X% at

So one-off is. it running And few there, at tenants a you when what the it's look XX%. at they're really just right again, is LTVs

a very point. about book, feel this very it well-positioned we good it's So at

Brian Martin

you sit largely I like it's picture, Gary, things I feel pretty that a today? just, well. on I big at reserve doing too do are And like there this kind how read based of guess, wasn't bigger in picture done guess, is the just quarter much. mean, it this as credit that guess seems I Okay. you build point

Gary Guerrieri

move I as based pretty to we mean, the move we continue quarter, it of start a and to continues opportunity I the releasing may starting heavy reserves Well, I signs wouldn't I to CECL some an some good an the as about worse, the have getting too and and the from aggressive are where economy little reserve to subject you COVID here forward. mean, hopefully expect view show any think as improve next economic when look additional downward a of we mean improvement there. we But that actually see deal mean early CECL around benefit economy into environment, bit. it's improvement. took you little you we there, sit if look I to feel to standpoint we at we today. look a forecast on some impacted can that the you did, a reviews

Brian Martin

Yes.

right. Okay. All Thanks, I appreciate it. guys.

Gary Guerrieri

right, Brian. Thanks. All

Vince Calabrese

have to it's clarification. I on a There for as one indirect far we the modeling months, on the short. life that mention very purposes. just XX that portfolio know I question so as is I yield, thing earlier is Okay, about was the sold is forgot which One portfolio,

are you make for to that, just that of point. kind those of modeling sure So have that data we

Operator

And you. to last for the as any was return Thank closing would it question, floor comments. the to I like management

Vince Delie

the all you. the call. on appreciate questions -- the I call Thank

provided remarkable. I'd the have of up scary particularly and and Gary, have were mean hopefully your I lot that disclosure to you been at through the job what early And questions. fantastic a during good to environment, credit think and relative significant thank on. questions, there a least this team us done like of difficult the guiding we and all time with that very was period. it's team, a I very stepped employees Tom

feeling about clarity in are we have better we revenue year, hopeful quarter, focus the and coming are and a from perspective next and So move we into that through a I very think more on into as next are we and the growth we credit again. we this better position where to we are are

the everybody. and thank forward Appreciate look call. to So care. next the Take you time

Operator

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

phone now may disconnect your You lines.

F.N.B. (FNB) 20 Oct 202020 Q3 Earnings call transcript