F.N.B. (FNB) 19 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Vince Delie	Chairman, President and Chief Executive Officer
Lisa Constantine	Investor Relations
Vince Calabrese	Chief Financial Officer
Gary Guerrieri	Chief Credit Officer
Frank Schiraldi	Piper Sandler
Daniel Tamayo	Raymond James
Michael Young	Truist Securities
Timur Braziler	Wells Fargo
Tyler Marks	Jefferies
Michael Perito	Keefe, Bruyette & Woods
Russell Gunther	D.A Davidson
Brody Preston	Stephens Inc.
Brian Martin	Janney Montgomery

Call transcript

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Operator

Hello, and welcome to the F.N.B Corporation First Quarter 2022, Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. To ask a question [Operator Instructions] Please note today's event is being recorded. to conference like Constantine, to would Relations. Investor now turn over the Lisa I Ms. ahead. go please Constantine,

Lisa Constantine

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

Vince Delie

welcome and you to Thank Earnings our Quarter First Call.

pleased to the billion capital with in our to at in Officer, balance Bank of ratios. assets Chief integration sheet, billion. Gary a that Howard We're XXXX Howard full with positive Credit our better or Joining our associated are $X.X solid $XX came FNB Financial and than to metrics with the total Calabrese, the bringing loans added planned me the our impact deal Howard performance Vince today of acquisition. began Officer. Guerrieri, fundamental Chief

linked and up on FNB in a quarter. had basis, region, loan year-over-year, pipeline Mid-Atlantic fact, XX% the XX% growth In combined strong

Our with FNB. region and will continue Mid-Atlantic grow who expectation joined is to employees exceptional clients the that the new

net strategic interest increased X%. favorable and investing net benefit repurchase receive as a we offer from Additionally, approved in more market. grow of and providing securities steps by given Board base billion Directors income expect our portfolio. operating cycle. rate well the increased an benefit position FNB's balance our already robust to increasing current shareholders. million to the $XX FNB's PPPs. additional flexibility month, GAAP we we the billion Loans income $X.XX manage when changes undertook on Revenue quarter new to to mix revenue from Earlier these include excluding to customer deposit positioned short-term $X.XX this assets interest existing tied XXX to $X These reported and per linked-quarter, effectively services We first remain program, interest share the a product rate with X.X% remain [Indiscernible]. share are benefit X.X% well led set that or of capital FNB earnings short-term We in and basis. positioned of sheet

XX% While the to billion, Howard $X than loan more commercial up year-over-year. contributed growth, was production

year. mid-to-high As rebuild additional we fourth the loan single-digit quarter-over-quarter. XX% full This growth confidence have look and are guidance quarter gives ahead, from growth our in pipelines strong the for up in us our organic

amid Wealth organic million, significant volatility. by activity. $XX linked-quarter income annualized, or record to rate solid $X.X X last Our to continued revenues increasing businesses produce primarily interest record fee essentially quarter another nearly management driven banking income to sales results XXX,XXX quarter. Mortgage flat contributed the increased million XX% with linked quarter at million

the construction reduce to industry. market commitment purchase geographic are to us the our and consistent footprint rates are activity, new home outperform confident mortgage we expected rising and While refinance will diversified help

clients our nearly for technology bring of money our online also more this FNB's to submitted fact, mortgage. e-Store. mortgage mortgage through were XX% efficiently XX% In enabled in originations us in of has with purchase investment our quarter applications

our the inflation, sheet, supply to current we vigilant balance of continue and in high environment examining remain macroeconomic we chain unrest. geopolitical grow As disruption,

have and plans We given environment. the risks current proactively assessed the activated

team and industries chain credit is Our and rates. the and the oil, are continually potentially supply by food, monitoring affected disruption. that prices, interest Higher gas, rising commodity

addressing will the adjust stakeholders. credit performance will taken the his to to over our steps our call our to key and consistent performance continue and the environmental strategy risks I portfolio. now needs discuss Gary assess the We turn appropriately ensure team position overall of to to while

Gary Guerrieri

Thank you, Vince. And good morning, everyone.

strong will Our the to by our are also pleased metrics. slightly later better including evidenced over reserve the the transaction, report, quality successful overall X of and material the credit will X first-quarter prepared completion my to our than Bank color expected asset impacts pleased in additional am key portfolio. portfolio favorable we have and of as Howard acquisition, credit quarter I very provide the the the continued came with some remained which which I on The results positioning did touch I Day and not remarks. impact a on levels, Day to marked

quarter. Let's review our asset results first GAAP quality the for

of Howard. at results. results, book quarter. decreased levels the now low points have delinquency position and NPLs credit And total the bips would reflected March NPL we The due or an prior very five delinquency that low again I to of a quarter a was very reflecting solid strength, to book to on our of portfolio of and year-end up saw increase our the recognized the $XX slight our compared acquired mentioned end very as with acquired of of to we million slightly entirely million have annualized, Howard loan non-PCD acquisition. points newly compared in entered results as XX million over in increase small quarter, were provision of basis ended XX absorption delinquency several loans, the exclusive level our the BIPS, increases for we a in basis consolidated portfolio. year-end for track associated three previously, driven only very by the As OREO two linked-quarter and with historically charge-offs expense a level against $XX.X also $X.X levels with at the basis low GAAP Howard Howard's reflected provision initial basis continue to including quarters. low loans which for the the points past March at Net XXXX with We

the which X and XX% represented With of Acquired end. over loans $XX relatively gross million, of position million at X.XX% loans were ending just low or quarter reserve up of Day our XXX stands at loan transaction PCD and consistent additional the favorable PCD reserve have Howard Howard our book. the compared trends associated Absent level slightly would the quality credit provision we've the to activity, December, and gross down seen. with is been up

position XXX%. Our remains strong at NPL coverage

loan customer for in congratulate of to our performed been this would overall than during credit have with the and slightly deeper team base in pleased growth better our objectives and like remaining including monitoring, successful efforts position expand better macroeconomic tireless help all other and loan to Howard's we to effect access the tracking conversion the provides our very and close we expanded for to risk this leading helps like transition our look our to credit with to which to would us book monitoring our perform and We up potential I transaction Howard's we are our book recent Mid-Atlantic opportunities on concentrations the highly satisfactory. manage opportunities to with services. footprint, which activity and Regarding fee-based the I we ongoing their market. borrowers risk the phase. additional us the on that the global desirable operate. portfolio, markets teams within now lending briefly the forward and continue loan touch were the and profile support expecting conversion

of elevated and disruptions, upfront. address challenges cost, input these shortages, our our discussions on inflation, credit in underwriting mitigate ongoing focused are the With factors influences, supply risks and widespread and geopolitical in We these to chain labor

acquisition remain reduce we've very the including impact with our at pleased these on borrowing borrower's we position In proactive the time, fix in factors very portfolio credit remained we to levels, as their impact any tailored well manage we this risks quickly of not economic environment. the EBITDA, may portfolio potential remain softer While and and potentially book year Bank. to increased approach on sensitivity proactive as could well our in remain decisioning have credit rate rate to of closing, ahead credit to our seen sensitivities environment. and operational stands vigilant a have emerging rate interest interest address that we manage are our our and fluctuating of our have through margin Howard costs and front-and-center, better to and lead rising that to we costs, our and have been the to credit effects option culture approach said, utilizing various growing and a provide the to supply And material borrowing portfolio. Maintaining loan the the instruments focused strong prepared costs. successful in identify That borrowers their

Calabrese, turn is served year lending will positions Chief Financial our management risk for over remarks. framework selectivity the Officer underwriting, us his Our all has to and and on of disciplined call of well the built I high-quality Vince foundation tenant which a a credit now of opportunities, for us consistent ahead.

Vince Calabrese

Thanks, Gary.

consolidation Vince XX% this the were $XX.X exchange with accounts. $XX.X merger offers we're million for deal to XX.X common deposits million Howard FNB the costs. with common of had As issued continue onto conjunction PCD stock. first-quarter little over XX million After for of of million provision in closing significant shares stock million Howard fee-based in potential items, branch the - growing in at date loans, $XX.XX a about $X.X of acquisition, and non-interest of merger-related billion expenses, deposits non $X.X bearing shares mentioned, very and acquisition Terms In initial both revenues. excited our the in

that, reported as be slide the first FNB. five, financials will forward, with including of Going now discuss all turn numbers, starting the included to in there Howard quarter of part highlights. guidance our With let's

reflective consumer reported loans EPS X.X% previously of an is a acquisition growth, But and commercial million excluding Howard increased period excluding on $XXX more and or items million loans loans operating in annualized. total the consolidation and increased as and costs on of underlying totaled million increase $XXX PPP $XXX.X the noted. leases, which branch adjusting linked-quarter a or loans and date, X.X% Howard an $X.XX loan million basis, $X.XX after quarter related First basis end Howard of PPP including Average $XX.X and loans. in annualized for

X. balance Slide the on sheet with continue Let's

in advantage take reached average quarter activity, prior coupled rate of billion, an growth of securities as increase loan higher the in earning to billion, increase in Reflecting liquid X.X% year-over-year. interest First total the of customers we Securities the accounts. from organic time X.X% move quarter with $XX.X and $X.X account by growth assets. an our increased environment. Average contributed to balances, into households million Howard a $XXX average partially decline preferences given excluding investing deposits offset deposits continued increase funds growth totaled

Turning offset the to from PPP. X.X% an primarily by totaled interest rate decreased million, growth $X.X interest or to of from net $XXX.X contribution income higher from million environment, X, increase and the average partially initial due prior earning Slide benefits assets quarter the in $XX.X million

PPP, interest interest rates. quarter, basis the to early reduction was points benefiting cash and of basis basis higher accounting balances net reflecting reduction XXX, a Total net purchase margin XX point six margin similar on the in interest of XX of upward points quarter. from increased stages impact the to movement last Our for accretion,

$XX.X income expense. totaled non-interest income prior and the quarter. at look flat let's million, Non-interest from Now essentially

fee-based this the mentioned previously have our demonstrates diversified investing We businesses, it's in quarter again strategy of importance. and

million markets the fourth linked-quarter, it elevated increased capital of million, quarter. as decrease levels commissions insurance fees, example, $X.X and $X.X the in to reverted from the For offset

million from well credits to $X.X $XXX.X higher total pay normal million employee quarters. strategy franchise benefits increased On seasonally Also, payroll $X.X benefits diversified Reported efficiency versus or current along XX.X%, basis, recognition million, taxes of and or XXXX consolidation our expense of related tax due Higher and long-term non-interest the in the non-interest salaries an salaries expect accretion or quarter taxes. X.X% increased costs the shares increased for expense equaled Howard income to expenses and an XX.X. economic merger-related We and compensation year is be F.N.B. first purchase joined $X.X operating million of million Occupancy quarter. ratio advantageous nearly efficiency linked-quarter. increased a compared seasonal $XX.X quarter branch million due to to $XX.X as prior from $X.X or primarily accounting over basis, little prior X.X% as higher employer to continue On to increased employees the fee cycle. a seasonal expense fee and lower XX.X% included primarily the months as and million we $XX excluding state operating resulted million XX.X% equipment ratio The the Bank in two that in triple the ago. utilities and of of cost. income linked-quarter,

PPP ratio Excluding and would our points around XXX PAA, efficiency improved have year-over-year. basis

$XXX impact value as This of of quarter. time accumulated of expense rising or at and pre in rates comprehensive per AFS efficiency a to impact revenue XXXX, or mature in and synergies decreased with the reflecting XX, from compares the into securities. prior come to forward positive other to or Tangible per improvements million losses should quarter's on value share as capital AFS with expected over the -pay. moving primarily March book unrealized $XX We rates rate $X.XX fair due loss interest the to share interest ratio this expect in $X.XX back and linked-quarter million of impact the portfolio negative related Increased hikes $X.XX, higher securities associated Howard. end

tool quarter FNB average million of a $XX.XX price To X.X first a million the of the total During at common company month, a shares date, of stock, XXX XXXX, XXX million. repurchased approved for new our in enhance approved $XX.X and a optimize provide continuing program, repurchased of share weighted overall September Board this program to million-share with repurchase XXXX. capital Earlier returns. to the shareholder management FNB under

XX. guidance to Page turn let's Now on

year-over-year loans the in We are with low a growth net between billion in a the to deposits Total and projected to expect quarter $X.X grow $XXX digits spot $XXX million spot income $X.XX basis. single-digits the increase on mid-to-high low single on year-over-year basis. is underlying double digits organic with to expected to Full-year billion, high between be interest to teens million. second

$XXX on an Howard associated expected operating experience not for does quarter. on is $XX of not with growth quality There basis Our XXX onetime between for XX points income for expenses in the base million with a continue provision range non-interest May. currently the the to the the acquisition. provision and expected full year. year, point credit full-year does is year, $XX to guidance expense $XX around is XXXX and of change $XXX related slightly revised of to the net loan This guided and million our include the assumes quarter with include fee including million. million no increase for be due $XXX full-year basis guidance million. rate guidance The the remainder basis throughout Full-year to $XXX Positive million to $XXX a second $XXX to increases market-related This second non-interest initial with lower-than-expected is is dependent income. $XX.X throughout Howard to the to Bank of

be effective between dependent no the that, full Vince. credit the corporate year, changes back the of assumes the and I level to call turn and should Lastly, rate XX.X% tax activities. will tax XX.X% income on investment tax is to With rates which

Vince Delie

We've commercial Thanks, differentiated hard wholesale our strong and banking brand, worked including to businesses. lending a Vince. build

result experience sophistication. of technology a level is in in for that it's unique high and team knowledgeable and and investments Our products commercial banking convenience

needs honors Banks one as to employees, right Awards. and FNB by our lending, Brand clients, for industry for a XX USA clients. Thus Forbes, of focuses by commercial been highly awards shareholders. model, benefiting named received FNB clients Best far America's to of Bank, an top creating Best that extensive was surpass second small opportunity ultimately branch And in its Energage and verticals, most FNB large received differentiated its and add what is workplace excellence XXXX, for doing Our year. These culture which has specialized to communities, recognized World's a business has as and on and consecutive list ranges from business corporate an business Best of the for including

For example, XXXX, in our our FNB to low-to-moderate-income assistant is borrowers in costs XXXX grant advancing commitment to closing increasing April communities.

mortgage the We with Mae to markets. below at also access product additional through Fannie income for and homeowners income their our Freddie offerings area enhanced for provide or Mac median

is goal and ensure to the Our benefit all products offer. stakeholders we from services that

Our momentum provide results us first-quarter XXXX. solid for a building foundation to continue throughout

their questions. each our thank dedication for contribution. As the performance a always, team for to Operator that, is and With employee over the testament our I'll I call turn to and

Operator

time to session. Piper this Instructions] Frank first At begin this Sandler. the we Schiraldi you. roster. question thank time, [Operator we And momentarily will will from question-and-answer the the At pause comes assemble Yes, with

Frank Schiraldi

Good morning.

Vince, current for I of In terms still XX% said you think loan -- growth pipeline in expectations linked-quarter. lot up confidence the the of year. you mentioned And a the that is

on And about little could follow Is so can if Just Does to that And linked-quarter. seasonal? you tick you more talk up that is pickup? if chain I commercial the wonder the more supply pipeline just that issues I it reflect pipeline? it a wondering significant bit frame want a improving? further little in that, up

Vince Delie

Yeah, I can that. address

broad-based. I think it's pretty

at look trending. unsafe our we little that here shows dispersion our a chart you the the for pipeline, have of If

seen growth You region see in on a and basis. company -- can every almost their the has linked-quarter pipeline

in If was us. pretty fourth record you the it quarter, a for we remember, strong -- a quarter had back production

that So then to move a the the here. prospecting the into pipeline builds requests accommodating closing borrower's kind And started bankers seeing little I typically or and pipeline back transaction, of think happens, busy we shrinks what are you're again, bit.

quarter slower. factor is other The seasonally is the first

upon. plans now. devised corporate from financial the Typically You their the until companies don't borrowers your haven't have to act results CapEx

pickup XX% to a time pleased pipeline. region. you So is the start in up XX%, when with in growth the year-over-year, quarter-over-quarter. now Mid-Atlantic the We're the see very Mid-Atlantic is

that of a pretty big penetration acquisition. great in critical happy So of bankers that system. A mass you've to seem because lot the we who got Howard with be scale, picked are up deeper and market boost and some our

So we're about excited very there. the opportunities

feel I perspective, We From on that that the we have. we non-interest businesses mentioned, a also fee-based call. as income

We opportunities that sizable with to market. opportunity some penetrate tremendous fee have the customer in than wealth base a

that think I that us So in should help market.

a on driver. year-over-year, So big basis. that's Charlotte's a XX% XX% up linked-quarter

think going on spent a there's and well. I've a and of a performing bit that I our highly headquarters So with brand pretty the spent with and is Raleigh very in in markets Spent we Charleston a and received Raleigh, decent week established, in visible being both we've time clients, those Greensboro channel. delivery well Charleston, quite well We're -- established South in some in signage regional just time have Southeast. lot those Carolina, and markets. Charlotte, and of are

to there. been expanded starting It's now. And Asheville, we've couple a Carolina. perspective are So de into things North close a from years novo of

that's peak starting So up us. to for

time started banking that from us to for nicely business an acquisition a across because us South well provides actually which consolidating portfolios every market we growth into plan particularly the Carolina, for more perspective were but of a heavily lagged have we outskirts small that Greenville, then, we're has quite on As footprint. for And C&I us, we Greenville, the opportunities. a and stabilized move to commercial grow has as did opportunities few historically

activity, that a the you so seeing bit we're business small gives of lift landscape. our So lending little from

you quarter looking data. it's more really for declined were utilization, perspective is see at in the first just a pandemic beginning [Indiscernible] so post fell look borrowing within off I and Frank, pandemic, commercial XXXX, rates line related, think when the borrowings substantial company, in from things the What borrowers. After to utilization that at of of the a I you drop-off pandemic.

to a up. unpredictable, They of we're dived seen all their then in rates disruption, of rise lot balances, and to market if utilization slowed kinds or were portfolios, got happened. supply pickup much from the benefit where ability to of seeing drove So you series utilization global which in but things expand, down when their cash. growth those a grow down stimulus to we to the haven't see we're chain I a it, a even things or think now. see that That stimulus businesses into of things went start We're occurred into all and middle pick starting and across starting you though drill

worry. working that's through Ukraine telling supply while wars So a that we're chain Companies the those me in issues. is probably

think cautious some still Anyway, normal get to an are back still what's about and we concerns -- perspective because my additional we're and as of oil I impacting I've are -- disruption, from said still perspective. that's remarks. are gas and operating starting industries. in chain very -- to watching on going a price the We're from credit things supply certain there rising

weakness a we close on portfolio. the seeing all we seen keep it, but in we're haven't in, So -- anywhere significant eye any

In as fact, hope tried comprehensive I the credit be quality that is holding to I in question. your possible. answers there.

Frank Schiraldi

the a we just That think any about back in on of be loan given given bank if just did -- confidence your room was And ramp quarter, -- up where ramping Just up bought as should all? XQ. strong helpful, a about there to wondering picture, going terms bit, maybe if growth than is first stocks thinking having we bit. back buyback that with guess from into the little thank differently we at any you. should the how a stock pulled you just I follow-up, in that If

Vince Delie

so few a confidence the support the lot movement in over we price, see of if drive the last fund in approved think forward company And plus a We shareholder so stock shares. continue want high performed downward. buyback loan options crazy. Board us to program. we I putting growth have has We're some there capital can buyback that to generate in the to internally program. value guidance with growth -- the is growth, the that's that Board so And like to that years, we're room of on mid our buyback why isn't we admirably single-digit for there's

performance and and challenging actions taken of through the the financial you look the really well and commercial have very at If gotten team and company, it's bankers. been very prepared We credit so our some can't times, and at the good Chris, the ratios, of look strong them at I gives in that ourselves Gary perspective, And [Indiscernible] a capital in confidence pretty Anyway, on capital we from regulatory shape remember the you that we're good. lot buyback. XX% will if a

really there I place, are for. options think we're Frank, where good

Frank Schiraldi

Great. you, Vince. All right. Thank

Operator

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

Your line is live.

Vince Delie

Sounds a horse. like on his

Operator

All right. moving Well, on.

will Next Raymond question come from Tamayo James. with Daniel

Daniel Tamayo

guys. morning, Good

Vince Delie

Hey are you? there. How

Vince Calabrese

Morning.

Daniel Tamayo

mortgage-banking thank well, May Doing the be you. on first outlook.

some we to revenue increase going continuing from revenue little or here? you are still how forward, here say, a or You from that should that about could that I how you see to thinking stream from sizing overall or But if on be expect flat trending gave be, perspective, thinking good forward. color industry you expecting on an how provide more the do maybe about going you're to outperform detail should

Vince Delie

In answer that [Indiscernible], that before, Vince you tell we've but let as pipeline has I'll as indicated. question. the I shifted will

some Southeast positioned very market. the Mid-Atlantic across are well and We dynamic housing and the fairly

So opportunity benefit heavily purchase, from more mortgage origination. an money, we have to

around current XX%. our think pipeline I sitting at

money. purchase we So

in we're don't more more the want activity. stable, industry. more go lower very we dependent ahead, maintain So more you of the the markets. able in on trajectory. broad stable to and we spread bit and across which about markets, make lot were top very activity, them sits what dynamic, little franchise expectations? and of give outperform then attractive where a XX% some And why which provides color geographies some citizen of stability housing not should my if is comments start our shift, a did it including some And And prepared gives us growth markets, But as that higher I to we're we We're that I in a refinance support, Ben. line. growth indicated know seeing half on are

Vince Calabrese

was the purchase Vince be we mix little a on quarter focus refi us results thinking the that mentioned The positions there. from I to for purchase we last low. saw were quarter, Yes. would to a versus as it say up No, you low were well bit going

we're down the quarter to going last the now of total. X% up For to the XX% quarter it's refi and

our of the how and business if built the a So has much you and very function of still down way to And and kind boil seven, purchase of the in that's guess portfolio activity mortgage I We've originations. it how on your is some anymore. banking you it's on very the arms been months. strong. positioned is the income, side well wanting sell seen much depending six customers not one definitely get the to months, too six shift to nature XX-year But

that. seeing some we've So started movement towards

So in close portfolio. that's up the

mortgage boil banking higher first-quarter. second seasonal the entering portfolio, from and here have up move a that poor expect interest down, less you'd kind would on best So quarters are We're net healthy, the bit income, and little the from guess from this I you applications mix to it. be if it purchase function sale the strong, the bit all little gain on higher here they're of those around third to that. But the but going be of level originations. the very very still it's really And way a high, to market be a characterize of continues to to are strong. I would

activity support So that helps there. to the

Vince Delie

is there's of it a of lending activity too area lending. mortgage the relative other quite to consumer The bit side in

ever right one now. the have strongest of of We in we've a had outside have pipeline [Indiscernible] the pipelines. mortgage itself, bank surge we So

the pickup. lot projects. been of a there's I construction significant don't the pent-up lot was to So execute demand. a of There a know, capacity there was

loan by into it larger bit activity. a it's consumer take mortgage there's it's [Indiscernible] pretty leads that our I -- is and across in estate quite ultimately larger that seen from -- to real secured Anyway, brought a roll think because lead So a that's reason they then footprint So I we've of to out and people every a that the all may a out. and -- demand surge up loan of geography. much taken

pretty So with segments and we we're positioned in repurchase good feeling business. money the our certain where growth are opportunities of about being

Daniel Tamayo

we end gears about much all the net rate were That's the we thinking -- in you've how still difference Are terrific out that. reprice a expecting change we're to then what switching and you the different any the from the remind last by able the color. the And loan that us in appreciate of to of to reflect you're if about you're end of by than and obviously you How what you're guidance rates I deposit forecasting should sensitivity outlook all updated now we side about XX% income on are any XX% around range to year. up in betas to end like thinking the and interest terms year? impact? maybe here, thinking quarter the pike bank's betas there loan way or had of think that. just on just environment the the Is

Vince Calabrese

than projection. basis modeling I the there If guidance, as range we know what's XXX everybody in obviously an would things you [Indiscernible]. with say is there. see we a it there's additional few that, far get their I points interest into rate based what more as to the have upside

range upside So the clearly we there depending where to up. on end is some

strong. As the to far be pretty [Indiscernible] as continue

measures those as know You have of prime. from [Indiscernible] to past, are loans total close three months or we two well XX% the tied less as to on that

Fed $X.X by now XX, expect so so loans, around that get XX% benefiting, rates is helping. was that be have still we up XX, so would $X would and up. benefits billion, position then -- that billion as XX, to we to The $XX have basis XX the the So it's that's total while that we it's points move another earning of cash earning moves, dollars, time billion move

in not in put is portfolio quarter take cash of recent then, work that the more a While margin. been too. portfolio. to almost investment investment you're overall do and loans, gone. yet benefit some PPP rates supporting there higher advantage the the is That's to to there getting growth the And money deployed that And the able of in we've to

what commercial the really up us basis five the around kind actually then again, of deposit on there betas of our and in points, kind system think us kind of the bearing what to move interest really XX% consideration in cost moves, on end will Our know do we in the PPP side, see of I we loan fed total the through banking for this -- pressure continue for us. kind in being put deposits, of of businesses based side, the level current you think And If of we all yields down feel on coming none how there's so as still depositary were on deposits the of we'll projections. and our on a that quarter of path -- liquidity for That continue basis. obviously deposit rate year. projection process? is the earlier total be hikes at XX% current what more

Daniel Tamayo

Terrific, Thanks I of for had. that's all all that.

Vince Calabrese

Thank you.

Operator

on Truist. Go is Thank the Michael from next you. Mr. Young And with question

live. is Young, your line

Michael Young

me? hear you can Hey,

Vince Delie

now. can We

Michael Young

Okay, sorry I morning, about here technical this Having apologize. that. issues some

Vince Delie

have You around the sounded a time. the clicking had to first on were call. running you noise, you just We but glad a on like horse

Michael Young

Yes. the ghost don't past, Maybe of apologize. But it's cellphone I know. I

Vince Delie

It always happens. Go ahead.

Michael Young

It did great.

Just that in will it's a lines seeing capital It you the slight of to upside, year? things a wanted throughout think income more as lot to some of mortgage-driven Obviously, kind of can a the the some the markets be outlook, to like but we sounds are or quarter fee the side. little value downside. the I business through with is move maybe weakening, big adjustment weaker you have big MSR in walk that the other insurance this swings Vince, the moves

Vince Delie

several you've got combination on. a red areas of It's

income fee guide mortgage enough when ones way in fee that businesses level, performing some And that challenging the the you be we've year-over-year general gave is as obviously, to have fee-based our not ensure within to to the up think implies highest make build -- going it offerings at of was to we to year's out last shifting, mentioned. strong. meet is are But for that you income balance banking the we there I it. because tried so our

customers hedging, during the of So sure perspective took of extraordinarily from were pure advantage when a low. hedging a derivative interest a markets, clients obviously, -- lot capital time products we rates rate,

markets, come markets has debt down business a launched that on capital our But So capital bit. platform. little we side, the in flip

good pretty we're in have expecting prospects activity So so that good to seeing and year there, there space. we're decent

banking in SBA. solid in really invested platform some international see to some our expecting have We and products. added We're there. had growth growth We've

that We continue. to expect

into and then So the Business our a to is being activities SBA integrated take more across starting calling and company, standalone. in-depth rebuilt our into integrated that off. we versus our platform shrunk

business. So see well those Charleston, benefit with be opportunities values banking offering. respective of very opportunistic in a to activity. We're product obviously, and we're they starting on Baltimore the able starting and balance seeing should some of roll-up some organic DC didn't we there. Howard I if well. the Asheville, rely involved mortgage things rate net we market Carolinas, as Greenville remains that because the growth. there and asset private to course portfolio have lot us And should fact that steady, mean We're for and as in derivative Well, so with see good a to markets we're the the

Michael Young

Howard across just will additive, base. the be So

Vince Delie

Oh, yes.

nice in added little few So with commercial fit culturally bank a quite well you households, if us. that

there nice still line job able front out were did in to cost So the people vast take the we majority a the people. but and keep

well. and teams really doing our are to folks added those we've So

Vince Calabrese

insurance, quality additive. the opportunities management, fee so there's customer cap the same we markets, really that product have test across of the And that'll be didn't different significant, how side the gotten that mortgage, the across-the-board the they on And is it categories. fee-based have set given revenue wealth base has

Vince Delie

It's not our we're areas. the because to in the other those challenges, you, banking tougher tougher are we trying going mortgage that to be gave there income year, But be while hedging. think in guide to feel I we to particularly drive in ability it's So fidget. of about confident around this going capital center markets,

Vince Calabrese

quarter right? XXX. the important to around that's and think So next I is then too, quarter's XX XX, our XXX guide for

we feel level. is out we're diversification gave quarter you So per range than higher categories that fee-based with those comfortable obviously the within which guidance

Michael Young

great. Okay,

Just laddering as rate thinking moved growth more for some the XX-year balances, up out cash prior the you pretty you of we size kind following funding just into guys loan the questions, are the securities the cash. of at on balance the of up about and considerably, growing of just and look kind that opting or with remix sheet. Or

margins. balance expect higher less growth, little sheet should we So a but

Vince Calabrese

I the $X.X work more you with definitely invested is higher which look we've during Given million was balance than And at up that, rates, average some the opportunities into to million the a $XXX first quarter. billion. cash money We put portfolio, almost mean, the $XXX about when flows.

we of of within So if duration strategy rates moving kind to -- take advantage of around but our you stayed X. still X.X

X.XX the the wanted quarter we kind current and as to would we are for we to anticipation duration. the along rates reinvest quarter, least, again be to fourth X.X in coming X.XX, right were around haven't go today, cash sit We the of are -- the here up And the on. quarter reinvest with -- at that now, our first flows

is us of think our the things I securities important in versus rates, Health XX/XX too one movement the maturity. AFS is portfolio for interest with and it's

side. short the on it's and So,

I on hit your had smaller than the think AOCI So depending they that was others structure how portfolio. much we

create to continue but dollars us equity, flow with worth manage Sprague's helps cash also to coming opportunities helps that book move. that as So kind of far manage us as a of and billion that impact

and opportunistic that be will makes -- sense. We

for We as the itself, we'll opportunities -- have been but grow just monitor good we we those look and doing. very we've amount will been portfolio here. put will But closely

Michael Young

Okay. Thank you.

Operator

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

Timur Braziler

question, My on was I and rate Jared. rate versus at the following two and looking a guidance is if quarter, is guidance fairly guess, Braziler Timur third quarter This morning. -- think good up quarter. for NII it's with there Hi, I the hike. similar Last filling in first it was last X% expectation for hikes sensitivity

guidance the with else basis for going changed Now to that surprised hikes or calculation already occurred that one Howard, wasn't hikes if can Is of the that some little in that the the I that guess higher. points that offset May. that, and sensitivity rate I'm in combination there you a of incremental to be great. that current anything guidance maybe XX would frame five rate expectation with

Vince Calabrese

just looking know that we're conservative say on see is the what's don't happen with coming and ahead here. one what really I from going there the would Howard I place to We'll betas because happens. onboard

the of in a lot liquidity Just said, banking I like system.

you there's sheet. guide a We guide being really area cash banks think conservative but on moving I little of to, nobody be methodical going the certain. probably betas, as that So rates quarter. first up one knows was where I balance are lot that's but up we're about in your from to quite for the a moved need a the on bit the mean

basis than rate analysts of baked It's into so higher get Given I points that. where higher I what that. forecast, and XXX market, more future's know their hikes than the don't some in than Higher [Indiscernible]? said we as I that. we know if have It's have the earlier, from here, more which here, than

get you the are if more, two will things comment I there's Those too. there on. So more upside

Timur Braziler

an far starting just as maybe Gary, then, accounting And quarter? the here for as second goes, Okay. dollars purchase in power for outlook

Gary Guerrieri

go -- Yeah, sorry. Vince. ahead, I'm

Vince Calabrese

I wasn't sure of the question.

Vince Delie

outlook accretion purchase and accounting accretion. Just -- the expectation for

Vince Calabrese

Okay.

to [Indiscernible] want You

Vince Delie

The overall net only acceptable $XX you was PCD gross the discount million once around up. do

a assume maybe X.X So little million subject we would XXX,XXX going quarter prepay. more a a forward than to or

Vince Calabrese

That's just for Howard.

Vince Delie

This for other any yeah. is do group? the for you Howard and Gary, Hey on Howard, have color

Gary Guerrieri

can everyone. I you update, Vince, an ask Yes,

of we've those get to through was very upward how forward. as pleased ratings. it The That the as perspective, expect portfolio to the we've to around very move perform portfolio ratings remarks, underwritten, over had very, market gathered and deeper those well portfolio move and the some we was the nicely seen. the came from the clients performs we some quarter. pass into And we information as that some able than with nicely upfront were actually on that best-underwritten transaction the better got portfolio very were we clients helped as in with to tremendously missing that the very expected. mentioned we We comfortable information I As continue

in very rated to the changes very higher from metrics that a in Generally nicely, As were you standpoint, speaking, they're saw FNB's the the significantly it. with closely very pleased portfolio the minimal. overall metrics, and very than are ratings

Vince Calabrese

The Howard it has million just any I'm would pre about. a on to quarterly total was accounting And X in as you basis. purchase a we with accretion. talking in a And add second, that then be projected were that quarter come accretion $XXX,XXX right? number Howard, for down about first sorry, quarter -

will that over few quarters, million and we had net-net next before. plus quarter million between $X Howard a all what somewhere the be So $X.X

Timur Braziler

it. Got

And then Okay. Thank just for me. follow-up you. That's more one helpful.

the commercial on the what that saw in consumer to more pipeline is growth see new with the to as loan back-end 'XX being see some you year, side? expect be we wondering the the going these just side this to glad is of expected out So on look of or production rebuild. coming to composition the similar loan I'm digital of should initiatives, we the at versus

Vince Delie

And coming attribute to couple seeing consumer strong of I a that to things. off, the in production of bank out we're year total. pretty Well, start

of macroeconomic. Some economic, just is it

of of scheduled is in branch. the in of pretty so front online out in and are go able application easily, into appointment our are on to offerings. and our and the repeatedly it e-Store somebody mobile those we what essentially channels, the they digital pushed it them products Basically, embedding act a Some those client see put

it's our online XX% we've and increased users year-over-year. added For example, base to user online

The in is e-Store heavily the XX. number XX% up total we year-over-year. We if I production, areas. But banking is We've is invested pretty a XX% look users enrolled now; up at applications to XXX,XXX which mentioned, from our XX%. our that's of you that through pushed visits of mortgage up have over of number up that e-Store mobile

services, very advertise is or for to need there's that a People way borrow factors flex. So when reasonable money us products that our for and renovation. macroeconomic particularly to renovation

We find do to we pools seems that leads data total, that there the analysis That's data a proactively. and our if within we going So The for the in that contacting can of quite can and on working at all us. we're put find place customers We there's activity. opportunities portfolio those you exploit look hub. statistics in and be bit us within able driving way. of to And systemic by tools generate, the on helped analytics opportunities into it's them that those then some immensely. data that

the side. commercial On

that I think we're well positioned.

of markets. that They've we don't each around in have move around very just may We have from lot long sound lot a don't not There's time. bankers a bank bank. corporate ran We groups have to the a have lot pretty bankers. that, We that respected bank carpetbaggers, attracted very, of for footprint for of of the them. have good a bankers of We bankers to XX high-quality across going lot I banking bankers times.

their skill Your skills we on career heavily pretty a expect. really of Salesmanship rely being set. series that one We opportunities. of

we're see all the of of Anyway. benefits So starting think to this. I

Vince Calabrese

-- strong resignation quarter very in strong. the production That's very was levels, first

Vince Delie

originations were strong. The

Timur Braziler

appreciated. Great. Thank you for the color, much

Vince Delie

All right. Thank you.

Operator

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

Tyler Marks

Hi, on Marks Casey. good for is This morning. Tyler

much fee, appetite, buyback below CX up you willing target share you your on on how XX%? 's lower Following to are Frank question go the of ratio

Vince Calabrese

the prior would quarter, I and We're that's I in to. XX.X we X.X that for this XX.X say target were we're the really managing year ago, think a quarter.

level the we're our using manage to as to. So that's really floor

expectation which generates earnings, With the building rates, our for more that is to obviously plus generation the guidance. capabilities earnings higher

the markets $XXX amount of at very more we'll attractive opportunity we program, If value. our mentioned. take did So with some activity. loan was was for we loan lower will But and and first price the be we'd we'll very were there here. a bought the you attractive on look that if the as we opportunistic activity accurate when were the We back use I governor depended reason, this -- stock million at what to as a a and dipping

$XX so, that capital. opportunistic. be manage down new were flexibility a to to continue aligned to we give approve And will so or we we're So million us to level to

We that's do company. a up think XX's us, really that governor we're as we for that, profile we'll as level So share good for buybacks. opportunistically And our move using. above the a

Tyler Marks

then And seen guide impact Understood. And is how you within your assuming the fee? service pressures charges? addressing any fee overdraft Okay. this are of the secular with

Vince Delie

I'm question? sorry, can the you repeat

Tyler Marks

How seen guide are impact the pressures service and fees, assuming the this any you charges? addressing at fee overdraft secular of is your within

Vince Delie

was. secular what hear that didn't wondering pressure I I was

about. what know So heard you're talking I -- I

particularly going bank-on just we it. First that of issue we out we does that over with rolled overdraft they're an is and to that -- certified or are a clients, simply product have afraid all, to those not had recommend it drafting permit that

posting us, we offer the can't we -- POS there So issue, some it's the isn't out. of so If a the overdraft customer, refunded product to account for this you it's have rolled It's transaction that account. some overdraft popular the product. we actually product that product or just checking Top because X most third

were had impact out we the and over changes. it's for rolled practices we expecting our the already made fees to we for number that years we the So those to And overdraft year guide mentioned that to the overdraft plan continuing a category when changes an us. decline the on think throughout make on income, I And of on year.

and it's fingertips, expecting are category. you our coming don't changes to guides pressure a to it area don't mortgage Add the will up. headwind there at that have that there capital and we in for I have but said, exact my we overcome practices, the So additional number And the year. that area. were given that of it's the of that's pretty to reflected have pressure. we make other I meaningful because that at had you, decline an another beginning That's I another markets but be that

Vince Calabrese

add consumer the too that fees $X $X are would about quarter. to a I just million

Vince Delie

Right.

Vince Calabrese

Putting perspective. it in

Tyler Marks

so much. Thanks Understood.

Vince Calabrese

Thank you.

Vince Delie

Take care.

Operator

the question with Perito Michael KBW. And comes from you. next Thank

Michael Perito

thanks. Yeah,

as could XX are just on pipelines growth higher, forward. see the curious clarification moving here it? new Just bullish guys me. margins you I buyback filled. deployment guide well It great. seems view picture versus as buyback putting M&A you be fundamental for Howard priorities, question was unchanged. over going the last maybe comment, Thanks. the we you you one fairly like guys capital capital deployment is of incremental program some the if to I as look the guys you the mean, for by XX outlook how terms in you about guys, move whole together months, just was of talked and expense out The do next the appetite That'd

Vince Delie

buybacks We've from and spent a relative these of them. a look way. time look the M&A return lot at modeling same of at when perspective, on all things loan capital we we growth evaluating And to

based Our moving the what's the for decisions upon are shareholders forward. and best company

to try out. balance we So that

provide I there. that growth opportunities with buy and loan shares ability are cost the over or think accretive materialize having event of M&A back aren't returns to our in doesn't the that us substantial out capital

to We to shareholders. the essentially have another capital tool return

option. evaluate look the we it at and So backstop a then as we

that we there's am tangible when I just of saying the I'm nor and the on at but we're that careful of that. very out, all anything deployment looming. ruling not dilution simply and back capital I'm something about look value effect earn the you So book telling

Vince Calabrese

focus it's And the the for the of growth is primary the loan primary future capital. focus,

Vince Delie

right. That's

Vince Calabrese

buyback loan on and the Vince capital. put then that's So more closed its active said, strong, really looking that's [Indiscernible] If buyback. we'll become growth is the our to we are like where

Michael Perito

you and it. conditions expected M&A clear. comes as given utilized I guidance mean, I for achieved this extent? just buyback Got that no expect, some be would is to be so you're growth guys guess market would additional fruition to to year, if current

Vince Delie

Yes.

Vince Calabrese

Yes.

Michael Perito

guys. it, you great. Got Thank

Vince Calabrese

Thank you.

Vince Delie

Thanks Michael.

Operator

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

Russell Gunther

guys. Hey, morning, good

Vince Calabrese

Russell. Hi,

Vince Delie

Russ. Morning

Russell Gunther

morning. Good

Just the operating from your a perspective. terms bigger a growth understanding better view of environment picture in of

giving a focused we've for hand, pipelines from talked just then are increased high often about on one other, you confidence softer in and And are some potential caution on credit a to how there. the environment, the watch things single-digits. mid On perspective, that guys for

you mid-single-digit growth dialing help great. or half stable back the environment the potential pressures would you. guide to reflect of some operating in year, software a be frame Thank recessionary for are in -- just the that does me environment, the growth So

Vince Delie

the environment, the we in alarm laid to current everybody. as that I want don't areas dials potential mid-single-digits concern. think of including I factors out

as us, at to are we that yet, would things number be seen hey, thinker we've We those we haven't weakness look So areas with, haven't seen -- got that I said, of say, and have at latter deal coming first but talk to prudent any could potentially right? a And this about US is segment. half result in demand. loan read economics spending year, the in There a and the slowing that, consumer economy some a number in the hit I've of of it'll of commercial declining report. prepared lower

consumers think they say economists plays are stronger than Some out. see that we'll expect, we how

pipeline now -- has our If within happening up the record the our to consumer some business a and and quarter, look seasonal Ukraine, mortgage reverted you you closed, got robust that look in I at pipeline shifted the war know supply cap at we've The which if chain first the portfolio purchase The at portfolios, quarter in only and we The going some pretty what's disruption mentioned. bank slowness. closed the business commercial had and in on levels and as is slowed money. dramatically very production, right right? to what's we fourth was

slower. accelerate little start and quarter better this pipelines we So consumer last would that first year. our the the they the year is is last of expectation, the were did last year, would And beginning year. didn't same far. near the than anywhere to growth have a in the be into that bank have spot the built Things guide, like just our We expectation, which production

professional, hope I the we a the recession. up monitor to here, we as watching cautious don't the because he's into our we sums Tom Obviously, we're move for growth I'm team, happening carefully very very going Gary what's continue it about year. and want Fisher, So that it to throughout balloon you. have to skilled a with we're and prospects people

We've portfolio So baked by we guidance and derived lot giving that's But a portfolio, we're the time the it, all of you from we're a spent it. giving in. modeling then up, built ground it's lot you. thought it, why about it's

Russell Gunther

Vince. I the to It's better of was hoping appreciate I type color it, understand. exactly

So appreciate the input. I

Vince Delie

saying, of growth real the latter that concerned it's that hey, other potentially could I hand, and because we're half can confusing certain loan to achieve year. we're on the about the in to And mid we're high in saying understand economic single-digit that environment impact one hand going on we're things are the growth. going

given -- or think credit skills the So the of quality diversification, our skill I I we think can geographic we're the guide. bank portfolio achieve

Russell Gunther

I guys. the me, for That's appreciate Thank it you. color.

Vince Delie

you. Thank

Vince Calabrese

Thank you.

Operator

with question Thank next from Preston Inc. you. the comes And Stephens, Brody

Brody Preston

Hey, good everyone. morning,

Vince Delie

Hey, Brody.

Brody Preston

for indication that earlier. in to some to to you're in cash Vince. you all reinvesting, cadence? flows quarter the And said new are then, the it the you versus off yields that re-pricing color what as could coming the back. book look give I us on just wanted like I million what's ask there rolling wanted per book just circle was Thanks that $XXX -- clarify, on just securities

Vince Calabrese

the billion and rolling flow off we cash yield that XX-month estimated $X that's XXX. The of

putting X%. you yields we're look closer money at $XXX so April invested far at we've quarter so where If to million work, far this to in

New the on that, bit there, still that within answers moving within you. [Indiscernible]. of duration, higher if are end X.X kind but that X your to of purchases parts little still that That's Brody,

Brody Preston

Got all know are Thank perspective? ask the you I from timing the hikes beyond helpful. that XX a additional the where's XX on I just in That's coming modeling. May, in the that, it. of but you you. And timing have to wanted

Vince Delie

for that. It's pretty Brody after much meeting one

Brody Preston

me could revenue perspective what follow-up business. it, have know remind you I into a that you you Did capital remind but Chris. Could lot big the a me? one have Thanks are within it. markets goes from drivers capital the markets? Got on

Vince Delie

Absolutely.

CRE do syndication. C&I syndications. both have and We We large

We the since this call we where big public because revenue for a that public participating principally I than have markets. markets the throw capital get have mentioned getting the to clean which up getting we in that derivatives to capital space focuses the international ability derivatives, hedging I derivatives which is businesses are that put a Then participating within we we're interest lumpy the deal syndicate. practice larger products as we debt you're banking, arrangement. Because the much but And bond And debt and the do on. included commodity-based because offering and you is if capital bond you efforts Those that if debt economics in have drive I distribution market's markets lumpy, that or areas bond the it syndications we're transactions. bulk issued spot best then And the economics, platform you're because getting started think paid capital -- rate we those principal of because last on the are within syndications, we into that's there's there participate company's the too, And we're the right? more covers big international -- in be the right was got pretty heavily it. may in space syndications, is our in income now then business year. Anyway, offerings, it that well.

Brody Preston

I just ones here. Thank Got for that. it. last two have you

at you all in end be of you or way give the what items just first it cause The any there expense the us mind to the high a or expenses. to on to one guidance, terms one that end individual low come is that of be Can would sense for the would cause -- either other? maybe are

Vince Calabrese

as you manage in savings know, $XX had a very say, company we've we target.. our we expenses was million tightly Within and January, as within mentioned for would guidance the discipline many XXXX, cost years. I for that

for realized on. some We said the savings timing on we quarter have still the initially that's cost track been from for to of and early given what Howard in be realized the

One depending in drivers to on commissions the swing business tied so the of is always the activity production, that can different businesses.

you the RPA more swing ways that's continuing And range. done processes the every -- drivers a tight it that expenses a have. day, from and so move But as is the guidance. move the range for get pretty it's to for range continue range, really to automate set There's key too. for manage that there's our to always up opportunity So we there opportunity can in a tightly item, about continuous us, is after quarter-to-quarter, talked to could to just we'll again, I past go we've pretty think tight and making within and full year But quicker. the

Brody Preston

last follow-up. modeling. appreciate And color from question the then would are on I Vince, which deposit a my be, they I the just Betas,

was it line was what bearing, it That's think I you in in XX% cycle. pretty with interest mentioned that. last

Beta wanted on did last I to deposit side for so I cycle. -- the And interest-bearing what guess you

your I guess to cycle. what's last the wanted I be so close Beta on to driving get And thoughts to

a just Betas a securities maybe percentage industry-wide in on initially, expect cash, in be liquidity, think them could cycle least lot loan-to-deposit that or lower indicates last thinking terms basis. I of ratios, of at balances, you lag the improvements that line. But off the folks assuming given you're higher to it

on any that? us give you you could why expect So color

Vince Calabrese

would things last Yeah. I are and we quite would bit liquidity be kind a said in XX% maybe had time far system. was say as what the of around the being historical we tried different as

kind I to far optimize going we to overall then the the XX being mentioned the as We're more on conservative them and and earlier, than as as Betas. for earnings inside not Company the we're need begin again, manage to aggressive that to we're be. be at with So of

So, into that. as inside I quarter of XX, said last at baked that. think conservatism there's some even I earlier, I But the -- think said we we're

XX. closely. pace customers XX something things have we're to I the just going the alert more nature basis point moves get large manage of the at think as are And And the we amount, them, the of through. is So changes, rapid

to all just it's XXs just then with that the So of conservatism and it inside us the for XXs, there's so bottom it's line But gets status. -- would I already say mention that. just

Brody Preston

morning, giving the us for my it. Got Thank and all this on taking guys. appreciate questions you much I very for it. time

Vince Calabrese

Okay. Thank you.

Vince Delie

you. Thank

Operator

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

Brian Martin

Vince, loans, for those -- at about are Thanks couple today? coming here, commercial new just those loans, the taking you can -- a just on yields where guys. follow-ups on you of the talk can Hey, are questions where just

Vince Calabrese

was say total in on the quarter, at loans I during new last and The that would quarter. XXX XXX came

portfolio So XXX. rate, $XXX The like up. move spot overall XX clearly sounded points a basis nice ex-PPP, that million, to increased

figures that's So all-in there.

Brian Martin

Got you.

And helpful. the didn't that move higher Is this it what quarter, housekeeping. similar line pretty quarter. sound It a fair kind the other expectation That's to but hearing? The is of like I'm of last a leases that it then, credit lot of going is or couple is what just moved line or utilization. was up Okay. to this that

Vince Delie

platform, that markets some were larger did capital debt the we transactions with unfunded. think I

kind the got we of that So -- income.

to point, off commitments some on borrowings them. expect of at with larger it. lower we fund would those brought So part over So right? That's we

is, The middle the down if starting other business, I the corporate into or small expansion, which slightly part we and construction banking said, us still areas various large as think certain to grow, we and C&I I've it saw large we market brought but slightly, moved drill yields segments, on transactions, flat, of kept saw down. back then, some actually kind those expand, on side

but were out equation, you expansion have utilization. for that's don't the in numbers an those I saw exact the what we took seeing. you, of we If

Brian Martin

Got you.

Vince Calabrese

this overall, X it's from year. add, where to then, move quarter it quarter in the at look that of the really the of mid you first year-over-year, year, up XXs. year if stable pretty didn't for points would I above first it the was of last And end

Vince Delie

expect would time. to XX% in continue was running over historically. up it to move It XX% I to range the

We back at expect it there to point, get some

Brian Martin

savings, is that quarter in think just -- should the So largely I quarter expense the Okay. clean how clean this back-office kind just And expense given then quarter, about just quarter? consolidation guess? a just Howard of we second on last couple

Vince Delie

Yes.

said during be that to Howard XX% on mid-single-digit talking the So quarter. track about well expect I XXXX. phase-in that less talked we're type mean, the than getting in greater like many announcement, mean, for XX% we we million and cost we expenses saves didn't than add I number. really we're on

handle and a on got the we're all I looking for out good year. the rest So expenses pretty of we've think the

Vince Calabrese

yes. or think some of to get the would would third-quarter take I clean force it. kind like second-quarter, till it you more Brian, try mean, I

Vince Delie

tail right out. doing last summer, branches We're dual we're bit up during some finishes come as the that running see renovations. we'll now from the the If of

Brian Martin

the with outlook then Okay, you do credit I noise it about certainly quality where that's items trend cautiousness the reserve. quarter see may the your some the caution, some with quarters. helpful. of on just couple next coverage just given of just on robust is And coverage you Howard, level, with mean, given where the just mentioned, the over some seems that to the reserve this The pretty reserve

Gary Guerrieri

any the large through aware. pandemic we've reserve, I cautious you're the didn't very been mean, have as all and In Releases terms of

on. range now only as even and in talked about there of With the inflation higher at continue do by of the transportation end interest play borrowers supply headwinds rates. end as that We with the are out we higher Those to they level range. the lower out that liquidity it to we all and comfortable including bringing or with impact just points flat chain quarter We're watch it's leverage ability them, at the we've basis charge-offs. that the Howard forward things, see on costs, we're cautious move we'll have XXX right X were

good a talked that We've play growth. impact. bit going a loan has thing that to role that's today The other is and about there, its

book So I we'll now. to can, XX expect the cautious as the Surely we now, tell end those low we're based with that would in of strength on the right it right headwinds, as move all we're around XX, of be surely forward. guide the you that being I come would items at, looking guide the on but it

Brian Martin

Vince levels, Gary. I you. year-end. one, -- in Got liquidity you maybe last that talked the last just Calabrese, just by quarter Thanks, And cutting half then guess about

of is your this still how think about I is expectation right now, level you're on thinking that liquidity or I you're still guess, things? similar

Vince Calabrese

think the year too keep too, at PPP growing, but we'll that probably and say. already forgiveness It's and now. out, coffers plays moving into deposits of been see hard quarters we've that's the would to goes how low $XXX The six that [Indiscernible] saying I so million down, point for and Brian, this another started we've

is slowly start of pace are hard I but certainty. to deposits the quickly with just fast would to So it think those growing. down, that say we'd number bring

Brian Martin

Yeah.

taking for the you questions, Okay. guys. Thank

Vince Calabrese

you. Thank

Vince Delie

Thanks, Brian.

Operator

question Thank Preston you. with up with a next Inc. Stephens And is follow Brody

Brody Preston

to guys, sorry like in back Hey, hop this.

fees have portfolio just Just PPP forward? sure you in you how you me the left smaller. remind question. one quick much left. I'm Could what to is I have want going know understanding make I

Vince Delie

$X.X million.

Brody Preston

very much. Thank Awesome. you

Operator

comments. I That Delie does for you. to would like session. closing Thank Vince the turn conclude to the question-and-answer floor any

Vince Delie

data, they and quarter, have we to good get Well, in first weren't work you But support it. for we'll we the a of but walk of posted of all, were executing. About If I lot all look we appreciate to It us got and front you do. were thank We to a through was we've answer. you. forward get a questions. to a -- plan We still thoughtful lot your few please or pretty call. thank on you solid to a able thought or Glad to questions, great. your we able extended question,

a the keep we start. to So want your for I And thank on behalf. great working employees

you Take and all So us. the for much very me on guys. call thank of joining care,

Operator

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

now may disconnect your lines. You

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