FULT - Earnings call transcript Q4 2020 | Fulton Financial Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fulton Financial Fourth Quarter 2020 Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Matt Jozwiak, Director of Investor Relations. Please go ahead, sir.

Matt Jozwiak

Good morning and thanks for joining us for Fulton Financial’s conference call and webcast to discuss earnings for the fourth quarter of 2020.

Your host for today’s conference call is Phil Wenger, Chairman and Chief Executive Officer.

Myers, Financial Chief Officer. Curt Mark Officer; are Chief McCollom, Phil President Operating and and Joining

most reconciliation to In those to earnings of website. page differ results Fulton’s make yesterday these required Fulton other released to in of representatives Fulton’s may and Fulton obligation are Our as slides Investor and non-GAAP These News. financial earnings factors GAAP by of release statements materially. be uncertainties forward-looking representatives on Harbor clicking slide guarantees measures for other XX and included this on comparable Presentations revise statements. update Fulton and undertakes to Slides Please law information our the on of condition, any forward-looking refer future X presentation information refer statement other measures. found or presentation to today found not on in than discussing measures. of a business. may can factors. financial non-GAAP our earnings our and statements uncertainties which today’s financial and comments On today’s additional Please Slide the and on will at no and respect the the related refer also for under information and performance, with presentation Safe financial refer statements to on released actual supplemental our certain with Investor of risks, announcement in to XX regarding forward-looking included financial be are fult.com risks, could documents Relations afternoon. subject performance call, Relations The Fulton’s operations results The yesterday to website the announcement, can we by with on then

would like the Phil turn host, I Wenger. your over to call to Now,

Phil Wenger

of working high the Fulton thanks call to year the XXXX quarter morning, the level will signs and some Thanks, challenges. year. the and COVID-XX that of I fulfill Curt withstood customers, have on Program week. our fee we will everyone called of the to we of to of was Matt Thanks details today. purpose partnership income thoughts Protection Fulton able your have in Then, continued administered creativity will the achieve been our of as in a our or for share year on presence Paycheck a and operating. and support fourth Fulton would nearly very has usual of the year. prolonged PPP. me, low Mark shareholders. extended best which billion for whole business what the small the a extreme our our deposit we team, describes the performance. Overall, have The of own and questions. pleased to nearly saw and We challenging this in that, earlier X businesses provide to format. to with administration’s environment customers word these X our were Round and we change helping our communities quarter we business and environment financial given will together, our and the and be happy better, the organizations diversified nonprofit Round In to there loans significant began trying by for our the made interest take performance rate customer discuss follow we through the in resilience But XXXX approximately us good lives overview and the a of pleased through that many growth have joining us were for company, hold our And of and resilience. Today, even of year. After We is as small our most XXXX, in customers that were XX,XXX customers managed other for $X times. program XXXX their for

loans year the had CPP grew both in business, business historically of when and excluding commercial our mortgage lines Our and loans. consumer a strong

beyond Our wealth management business also our performed expectations.

quality of our rate of and COVID-XX, we to strategic and capital March will continue offering subordinated the detail few to environment remains Despite markets effects a able the October the asset more XXXX, stock accessed us and were priorities. And in to this progress interest towards discuss Our in stable a with Curt a enabling and our challenges achieving in minutes. position. build of capital successfully low we make offering preferred debt Mark the in

continuing We formats consolidated more to efficient. In retail offices. to changed consolidated XXXX, our January needs. of customers’ branch centers financial activities. X fourth optimization the better centers have XX XX of system financial we nearby our total on continued we our our locations, Since their XX XX% or make And of into XXXX, approximately meet quarter, offices

We in In a our continued the plans Baltimore. in our Yard to center Philadelphia. financial new Financial markets in XXXX, opened of XX and growing Philadelphia Baltimore. on presence urban new Center we And open focus University we announced our City, June have

or additional We are planning Philadelphia and early in Baltimore XXXX. to open later both XXXX branches in

in have of are viewed in as cities. increasingly And that Philadelphia Over support been historic Baltimore contributing we vibrant past pleased revitalization these we both are and we the and communities. of XX a those months, for recognized member

advancing addressing is vision foundation particularly per to cash Fulton in return our the support private community serve. Forward appropriate organizations deliver our organizations XXXX, share an COVID-XX grants communities we Bank from communities. economic our In donations throughout an were in per foundation Foundation, we share coming this that work newly special independent now empowerment, nonprofit by shareholders, to $X.XX created made Fulton that dividend maintaining makes to how underserved we our their funded our appreciate $X.XX cash of Fulton share the in of of quarters to remember Some of a that the support XXXX, investment Last year, quarterly stock that This retirement four you advisors may of financial and in XXXX, Doing is outstanding BenefitWorks, us Wealth Financial. purchased to its Central two advisor and acquisition help all things helpful dividend Pennsylvania. November. Bank much shareholders for special and we In these declaring demonstrate Fulton growth businesses Inc., registered services accelerate Management rate. in investment acquired and November a

results. turn our So things will now, Curt? I on to more detail for over Curt business

Curt Myers

and Phil everyone. you, Thank morning good

solid loans. As key more impact the were areas. Phil the I for produced results. like solid, would growth on loan excluding some to quarter quarter several fourth detail trends noted, And share our performance of PPP Overall,

of balance loan originations consistent saw we amount excluding increased We loan and quarter the balances, for loan loans, growth. continued million residential on continued relatively commercial basis. ending $XXX to an the Commercial generate PPP

Looking our down December at XXXX commercial a year forward, is X.X% only pipeline XX, ago. loan from

adequate annual We of results balance linked ending quarter an lending, will In spite net activity. in guidance million. interest support to million approximately ending mortgage in balance loan $XX growth expect producing on solid, that specifically, loan our consumer our first More loan quarter income be continued our This balances originations is refinance basis. residential of significant X.X% growth be to quarter linked in the outlook. $XX grew or

to higher the Given growing the so. exceeded we we growth residential of to on with our several continue room quarter balances $XXX nature of expect to deposit. some in despite sensitive borrowers, far and Deposit X.X% outflow basis have high during ending by next million cost Overall, checking sheet these demand continue quarters experiencing segment our on bearing asset growth the as quarter. non-interest savings of and an deposit expectations offset our balance balance the certificate grew for deposits do and this quality sheet deposits of seasonal runoff balance municipal for grew planned deposits

deposit basis basis actively points to our costs the portfolio continue to during deposit down X points from manage points. XX XX and We quarter, basis declined

fee-based revenues to overall Moving decreased quarter. on our fee during the income,

quarter third in strong in in terms very by the fourth others. growth the reminder, of a income. In experienced declines quarter, fee areas offset As we certain was

fourth quarter. $X ago. were from These increase originations both record million, revenues $X strong a is banking by after results over million spreads. mortgage activity than fueled our quarter year of last and and year Total First, originations. of $XXX purchase mortgage XX% XXXX XX% period results total an originations for our same were million the still residential higher of declined gain-on-sale the were third historically These strong just

pipeline Our currently continuing seasonally but $XXX year pipeline end to be Xx at prior mortgage have year. of almost seen mortgage at that we is third sits the quarters. million our lower Year-over-year, quarter, that in recent the elevated than

than of from business. stock as wealth anticipated of higher a and fee we our edged we business level quarter management for performed market Next, recurring most continued to benefit better the high the

swap primarily came the end quarter at revenues Our management last fees assets the $XX.X Capital are quarter. billion quarters. billion on fourth of administration loan quarter. strong declined which decline This markets to grew very in several $XX.X under from heels commercial

Moving losses. CECL overall, where are pleased we for Using potential we are to credit, the we methodology, we COVID-XX. properly given have with provided feel

we year-over-year. linked increase delinquency saw delinquency, of terms an but In stable quarter, remained

of last net recoveries last we from In $X.X charge-offs, year of a net terms actually or $X.X million had of quarter. million recovery net further improving

pleased or loan a to updated XXX% very down trends XX, to and charge-offs maybe provides have significantly the at environment low Commercial provided these obtain consecutive through continue December deferrals due hard very risk of Slide with million of XXXX. more commercial portfolio. the we to recoveries. segments experienced deferral are XX, in in summary work XX We results current $XXX as to the we approximately we believe Slide are we COVID-XX. quarters loan

increased or highly XX% industries a portfolio. of relationships of full the affected our quarters, portfolio, total second certain markets specifically these the the by trends, COVID-XX. our have for to few than monitoring consumer Our $X COVID outlook portfolio loans by very been that over special serve. in has to that to-date, of relationships past is the our reopening the Despite maybe of to the amount of and lengthen wave credit cautious portfolio million we In while mentioned commercial of decreased remains million the consumer deferral positive loan segments down favorable continues continued near-term X% our designation trends deferral COVID-XX were greater affected next under the $XXX of that quarters result

detail. Now, call I financial to over will little our a more Mark results turn discuss in to the

Mark McCollom

knew as income $X.XX XXXX. previously results of available morning the expenses were I good our earnings million of I X, to million. quarter. Included net share on Starting with the comparisons initiatives the the $XX.X of this on third quarter to than Unless recognized announced. This on lower third will and discuss call. $XX.X everyone is are otherwise, cost per Curt diluted $X.XX shareholders were it Thanks, quarterly quarter part in Slide common these savings of

and net interest savings mentioned. higher and due lower and income loan losses charges credit line for higher and in provision I were growth, offset income initiatives lower related non-interest a and exceeded our Compared by just interest our to tax expense included performance income quarter the to guidance, the rate expectations. operating fourth cost expenses all deposit Our growth net quarterly non-interest to

just Our non-interest guidance. income in bit came below a little our

to loans forgiven during interest a $XXX.X X, due was quarter, linked income earned Moving mainly our the million million, period. Slide PPP to net fees $X.X increase on

from margin net related interest Without quarter. largely PPP forgiveness million quarter was quarter. our the for and $X.X the versus fee been income fourth third resulted X.XX% recognition. have quarter would income net fee accelerated the basis in PPP in points the margin X of The Our X.XX% X.XX% quarter, linked interest during of the fourth increase loan

As and by retention approximately $XXX and saw growth continues Curt to quarter be mentioned, million. anticipated deposits average than stronger deposit fourth we grow and Phil our

as some And invested steepened We the also fourth securities as our during of the quarter. selectively stock preferred offering. of yield our our cash net proceeds also into curve $XXX quarter the grew deployed we excess the million investment portfolio mortgage-backed in we

Our to the slightly declined XX.X% ratio XX.X%. deposit from loan average quarter during to

for and our was to fourth $XX provision million the versus quarter million ago. losses a Turning year in $X quarter third credit, credit million $X

forecasts of XXXX. allowance COVID-XX know, credit in allowance the the as have you our economic for first a needs half have year, on second But of significant credit eased half losses the in loss. impact the As had so for for

at quarter loan total percentage as new XX the excluding and Of mix, basis to course, credit last credit an PPP for X The quarter from basis based charge-off points net Non-performing ago. the of linked increase non-performing percentage year points XX, prior loss as points of basis Including basis loans, XX were a economic and volumes, projections. year basis increase activity on this change an can PPP The loans a XX quarter. loans, loans XXX% loan X percentage allowance up up linked on end allowance in at future was PPP were loans, was a for of losses points excluding from from a quarter XX periods loans, basis December of for the points a non-performing loans loans as loans basis. X.XX%, quarter. points origination XXX%

for $XX.X million million. and revenues Slide mortgage $XX very ago. lower with X, prior securities the the million prior were million, the from an in of impairment banking our income, for This management was slightly year. $XX Mortgage X% from strong also brings in the MSR down linked million revenues was This increase to third million rights $X.X quarter non-interest on a for and gains, result approximately the after our were by X% guidance to our than of the quarter, line revenues impairments $X during total markets the Moving quarter. excluding prior gains. a million million $XX year year from impacted last Wealth quarter lower of Capital increase as quarter quarters. mortgage an servicing performance four $X.X sales to $XX declined compared quarter

Moving quarter, X, $XXX non-interest were expenses million fourth the our $XX quarter. to linked million Slide in up

I related quarter, of to million fourth in we $XX.X the However, as incurred cost expenses initiatives. savings previously noted

cost by our range. of charges we initiatives. expect an on in to expenses, these a detail anticipate in we reduce savings XXXX million of reinvesting the Excluding in annual operating the X our came our total, on accelerate company. order in expenses $XX these In special low will to provides We of XXXX initiative at related end these basis. guidance recognized this transformation the Slide portion digital savings

investments We our also franchise plan making in normal to XXXX. continue into ongoing

this than in overall However, on lower core expense operating our result XXXX core we XXXX expect basis, will initiative expenses expenses. an

in primarily rate tax effective ratios. third gives lower on the the of Slide earnings. quarter for quarter Our X.X% was XXXX to capital to X compared detail more pre-tax XX.X% you due our

raised we related quarter, X Tier which and Tier the preferred increased ratios. of $XXX During stock, million X qualified capital

We solid capital continue and maintain to liquidity.

share repurchase are on last for XX year considering of we program and a expired Our XXXX. program December previous repurchase new

like our forward we would for guidance about XXXX. Lastly, to provide thoughts

We for to are our guidance streamlining XXXX the areas. following

of to $XXX income interest $XXX to our the We be expect in annual net range million. million

$XX year. to provision in our expect We be losses $XX to for million credit full for of the the range million

be our annual $XXX in expect the be of call of that, to non-interest questions. to expenses $XXX with And I expect income the now we the $XXX range turn our We million core Stacy? over to million range for the $XXX to million. will And for the year. to million operator lastly, in operating

Operator

Instructions] from [Operator the first line question Schiraldi Our of comes Frank Sandler. Piper from

open. now Your line is

Frank Schiraldi

Good morning.

Phil Wenger

Hi, Frank. Good morning.

Frank Schiraldi

Hi, guys.

next quarters. you Curt, Just for credit Mark, remains couple optimistic, on, and and about a I of question mentioned you cautious just you the outlook but think buybacks I talked said know

just buybacks the or back outlook that institute enough So so year the about more the wonder you maybe half I talk earlier? of with is comfortable if after in are something when to you

Mark McCollom

would evaluate Yes, not think, or Frank, sense. whether I we make to continue that

capital think it in of would for unlikely occur the or I consider two. I goes the would us some think think I that on, our be next sense it deploying as anytime that, way. would to in But make year month that

Frank Schiraldi

guidance on the you boost preferred And provided that your and Tier X. the Okay. heels in given raise obviously just of the the

guide target X sort Just if end ratio of at year or curious on share Tier any, if or you could includes that the XXXX? TCE any

Mark McCollom

Yes.

prior be have for in been guidance minimums continued internal they Our quarters. to what capital our

changed to respect our capital targets. nothing So, with has

Frank Schiraldi

large I second just for on know, PPP, the opportunity rush the finally the be your round just compared round, days your just could then early round, but very Fulton? it’s second how curious to And the think thoughts wanted the thoughts Okay. of first you for for of

Curt Myers

Yes, Frank, it’s Curt.

we think we X:XX loan on It’s to Monday application significant tell the do little amount be on early as we our So, a application X, too it of than and pretty opportunity significant but to live do appears have again. Round a potentially less have average volume.

Frank Schiraldi

great. had. all you. Okay, That’s Thank I

Operator

you. Thank

comes Our Chris from KBW. the from line next of McGratty question

Your line is now open.

Phil Wenger

Good morning, Chris.

Chris McGratty

everybody. Good morning,

Curt Myers

Chris. Hey,

Chris McGratty

the of points normalizing given that with guide you liquidity I the I am I different from levels interested what we guess structural start service income. non-interest charges it if was the on horizon see non-interest is there the other with thinking were the one income, materially to on could kind the from borrowers? want mortgage are Thanks. about of that in some kind or we of your simply pressure was issues

Curt Myers

year, And year. little mortgage. had difficult to all going Yes. that’s predominantly Chris, it’s great out. a we project past It’s work how a such this to

it’s we but So could, is best the mortgage. it a

Chris McGratty

is what’s like XXX – base what And mortgage that how the in case for of much is it what that XXX, the to contribution?

Mark McCollom

million, with were three in Chris we They have $XXX Well, quarter, quarter, million, gain-on-sale the with recently, I slightly of $XXX the that spreads. downward year, they have last came that quarters, the X% mean, fourth I think tenure the think I some were going million, pressure itself. this that off $XX that but can’t increase spreads third over forward. the million, I we north gain-on-sale averaged on mean, And were quarter, will $XX but sustain they in fourth just

which normalize in easy if in spreads back like So, gain-on-sale our were XXX, to you it’s middle, that guidance. there overall range, down where the is get the even normalize XXX where somewhere you would in you see more XXXX, if to to

Chris McGratty

Thanks helpful. that’s Okay, Mark. Thanks.

you of with a that specific to that It the refraining bit obviously, uncertainty guess to fairly out target, given optimistic, but million are I most I we provision? there there? guidance, million $XX peers all a seems credit of have know, visibility $XX is quite could guess, the that’s of this speak from On you kind

Mark McCollom

when trends we Well, when use you Moody’s for what our forecast. have and our again I think been – look at economic

their you largely future a understanding if of that three forecasts and how in quarters. works, So, reserves which and as prior economy standard account we that have the that of reopening COVID-XX over result come base will the built the a believed gradual losses may to for of be CECL our effects

could the and of based couple next and So, to would be primarily net growth charge-offs, then the outlook, decline economic going you quarters forward, reserve loans to on totally some that replenishing our over extent, be X.X% needs then but ACL see appropriate.

Chris McGratty

then think And I PPP last thanks. housekeeping fees. what’s realized? what million left Okay, I – maybe of be the could, guess, one the in and the if mentioned you total fees I what’s $X.X I guess quarter was to of

Mark McCollom

Yes, it quarter. $XX for the was million under just

million you we in recall, So, under from XXXX $XX fees for Round quarter. X. of million the remains just X. if about Round roughly in $XX had million is We had fourth What $XX

Chris McGratty

Got it. Thank you.

Operator

Thank you.

question Our comes line next from James. from Tamayo of Raymond Daniel the

now is line Your open.

Daniel Tamayo

morning, guys. for Thanks Good taking question. my

Phil Wenger

Daniel. morning, Good

Curt Myers

Hi.

Mark McCollom

Daniel. Hi,

Daniel Tamayo

at talked discussions? Maybe kind less thoughts just discussions, the what what more having it question any just you at what if there? Maybe of take need more tell this active is? point, likely repurchases. last the banks current what like – other that, are environment likely sounding If looking you your the your are on to the are those M&A discussion get asked to I just in about we up capital take quarter, would on from following

Phil Wenger

to the and we and are half think moving M&A Well, normal. we some we the to middle are are vaccinated discussions, year second get year start back economy going having the this of activity but starts of is I increasing in folks once and to anticipating that

going an are activity. see in you think I to increase

Daniel Tamayo

growth interest play the that switching quickly for that? deployment the as then do how it thinking Mark’s had What net got into you on – you about interest your are of have excess the some of forecast does is relates now. income can some deposits liquidity following gears portfolio for XXXX up nice in guidance? and here, how And to how liquidity And that margin, then excess net deposit you additional Okay. in just discussion you

Mark McCollom

seen the situation. the bank accounts think that at XXXX deposit and I has pleasantly – industry whole we we in PPP has been just a have in positive used expected funds growth, created more deposit year, an were of we the growth Danny, that of level other all excess be surprised have which of would Yes, combination liquidity that and

of I reopen believe does point continue business at that least that liquidity back remain liquidity. economy think a continue to we at some elevated that fourth then half inventories those the be deployed of We will the for some you quarter. continue see But deposits used, would I to in bit restore But expect the restart would the of year. We little and to XXXX the when first deposits to of until half elevated excess have will used that CapEx.

Daniel Tamayo

I you acceleration so of then expect back income based interest tell margin year everything as you x might to I see you off half of And that net else, deployment? in expansion would some can kind guess the see the that Okay. of perhaps in growth some

Mark McCollom

lot a what the of looks again deployment on the that off is economy of like. reopening And assumptions Yes. based of

We line declines hit utilization. COVID seen since have our

the that consumer if that historic goes line levels, translate back and So, the pre-COVID bit that, in year XXXX. back of half of growth and would little a levels into utilization commercial into to net

Daniel Tamayo

for answering Thanks questions. I great. my Okay, have. all That’s

Operator

you. Thank

Zwick comes of & the question line Boenning next from from Scattergood. Our Erik

now is line Your open.

Erik Zwick

guys. morning, Good

Phil Wenger

Hey, how Erik? are you,

Curt Myers

Hi, Erik.

Erik Zwick

you of seeing commercial of XQ terms And I support just net pipeline, the confident secondarily, what first about thinking your first I the from industries in feeling the year-over-year I what interest some adequate think to off growth enough by strength expectation loan with demand I is PPP that then whole that commentary in the pipeline curious a you that I year kind year, and have there. the the to full of that $X.X in about in midyear the would through was is and wanted guess follow-up, will be the forgiveness the customers? kind guess, full drag round loan first outlook, that gone assume of remainder offset kind would about are nature? pull come Is the income for be and a for year? for the loan outlook it for if of organic the growth things just net you what likely of just think has got to headwind that and terms to billion of positive of terms start year about growth of of or there down Curt’s that X% I of kind

Curt Myers

Hey, Erik.

to comments Just that, my that clarify was excluding PPP.

So, it’s originations business. commercial of is pre-COVID. our commercial core consumer pipeline and levels at The essentially

think will allow us So, what we would consistent are to forecast that pace with NII. continue in do we be that for putting the origination

Erik Zwick

And are – then go ahead. that on the industries

Curt Myers

the to current customers. on businesses, answer with is and market picking pipeline very of share your and Yes, diversified remains up question types growing

continue hard diversified have really to work to very we a So, portfolio.

any So, is weighted there not specific more really that heavily than segment is there historical.

Erik Zwick

Is XXXX, Thanks I still there. curious for something using I been effective terms XX% have think that tax the maybe of good for something or rate that we different? And in in range. expect potentially color just then Mark, the should

Mark McCollom

Yes, I different. tells unless thing start something Washington that’s think us to good

Erik Zwick

from And ROA factors. in then last was that in reserve XXXX generating other XXXX one of X% build some back came and looking XXXX excess Okay. to I given the an me. Fulton mean down and

improve back this disposal at other look hurdle do doesn’t your and at your point. what XXXX point potentially X% the at Just path to have at I curious profitability will at achievable this looking kind be you of what guess outlook and point? this levers is that

Phil Wenger

you look, Well, we continue asset I bank. sensitive be think to an when

back going lid So help expect increase in leverage that be obviously, went decline and going a to don’t interest loan it getting XXXX to look We in then continued an XXXX. from inflation rates X% you with until that’s pricing, rate fully core year-over-year short-term economy, to get expenses. I will then maybe reopening we certainly disciplined Fed’s there, operating allow to on the expenses. positive to to getting would continuing a initiative. When out through kind target obviously but having really of expense think just can our We And continued. to XXXX keep and

X-year a growth, have generate of low earning of X-year that over So period leverage. have very time, a kind to we of expense require lot a where can positive you which doesn’t growth asset then stretch whole core

Erik Zwick

Thanks for taking my questions today.

Operator

Thank you.

comes the from line Russell question from of next Our Davidson. Gunther D.A.

is now open. Your line

Russell Gunther

Hey, good guys. morning

Phil Wenger

Good morning, Russ.

Mark McCollom

Good morning, Russell.

Russell Gunther

NII on a guide, that is one. include then PPP that recognition with start an number two, basis, And your Just number FTE on clarifying the does question remaining fee assumption?

Phil Wenger

is on tax That is, it fully equivalent. not a

the of that and term it percent recognized our be while will year, does those loan. $XX million GAAP that is assumption So the of some will and of during we stay of our convert what number a will remaining include customers think majority it be to portion full

Russell Gunther

Got it.

and then talk your the then And you it linked Okay. about you this compares in I there. color you can criticized the being benign, that think peaked? of context number have quarter appreciate guys do the fairly classified provision for do number so, outlook how quarter. has If

Curt Myers

Russell, Curt. it’s Yes,

also Page It specifics continues see the pretty detail to XX do is been increase year-over-year stuff, working trend much that’s So flat gives provide and deck, special total are the trending. substandard affected that most on linked mention and industries the we special substandard we investor year. that mention up all of you that to you specifically mention, can seeing there the through did COVID in contributes some and we’ve in predominantly on that the special we that in have quarter, the numbers risk in

portfolio, risk an given are we do current accurate, we monitor make specifically. the mention sure continuously So have increasing but circumstances, the ratings to special continue trend in

Russell Gunther

you to that do potential XXXX? that you deferrals, the out is bulk of of and migration monitor credit I think end continues through the the negative then move I And we’re higher, that as Okay. of guess there at or mean trend

Curt Myers

monitor We continue customer to performance.

economy up is the heavily from increase I recovers. impacted depends COVID think and the most customers. of opens on it how Again,

been we appropriately rated So, in right now have we is the that the feel outlook evident based modeling. on

Russell Gunther

Alright, so you it. That’s it for me. got Thank much. guys. Okay,

Phil Wenger

you. Thank

Curt Myers

Thanks.

Operator

you. Thank

Matt the Inc. next question of line from Our Breese comes from Stephens,

open. now Your line is

Matt Breese

morning. good Hey,

Curt Myers

Matt. morning, Good

Phil Wenger

morning, Matt. Good

Matt Breese

PPP, quarter-over-quarter. fairly to go comment the sounds X.XX% think core you wanted and on and I to that said back stable NIM Mark’s I

curious perhaps not pressure yields expectations NIM stabilized and NIM whether and and the expansion that and here about expect there core XXXX core more or Just on your then still is upside we for troughed liquidity trajectory or loan margin on deployment yet? or throughout based

Mark McCollom

Yes, half quarter, on of that to in not in the ‘XX masked out fee have We in of here income, you’re acceleration. core unaccrued the have in the we the $XX half effects we come of that’s that may year. if PPP, the good you that or to basis going full a fourth think acceleration think going approached the first because income trough stripped remaining through of are of of the first be chunk a bit fee a little to just million continue

have still approaching about three over three CD interest go now. and So think the year quarter, book of quarterly the still billion combined the come a quarters to net you then come see that’s core basis we a due. quarters may it we’re optically on basis, may half of $X.X a bit, the those that’s then floor first on We XXXX, third in back but fourth a the our quarter, margin up down first little

those been lower by been points. XXX basis they’ve As repricing, have over repricing

and there yield the see is the our And loan have then think we to other costs we segments. other of with our – so steep what throughout lower. this curve a And down there push that deposit effects bit pricing opportunity little discipline I we’ll still our

Matt Breese

just Maybe follow-up there. a Understood.

$XXX the think the to majority how a quarter and wanted quarter. PPP core get fill where might it about NII the of XXXX, about or midpoint, – roughly core for fourth Is that and on sense I sounds NII in NII and fees correct? upward in less of you north let’s I you As just being to recognized NII the core in $XXX million expect the be $XXX call quarter feel exit an it million million guide per like trajectory. of NII

Mark McCollom

I Yes, Yes. think fair. that’s

in mind back the clouded around in further be then the to of by Although, are keep year PPP. the to going numbers half

into So XXXX. we’re about going be going to talking PPP

Matt Breese

Understood.

in are, What at? wanted to I Okay. loan fact here. on books and the new just And CRE yields C&I then follow-up coming

Mark McCollom

a this it’s total just is to X%. – commercial over commercial, Yes, shade a

Matt Breese

a one the as of more bit outlook expect to of higher color Last Okay, second that? you result wave. on expect or is little a just we in the Can deferrals bit a there what a okay. just, bit that of that me is cautious Just detail a should you there. front, higher suggesting Are there given provide mentioned credit happen you coming or formation a terms second ongoing from little NPA charge-offs? of you wave

Curt Myers

clarify, second we’re the of to feel Yes, it’s We in second wave. middle wave. just the Curt,

that and So we’re wave have this thinking winter a current a not the through getting that. looking now, and the beyond really wave is we’re wave getting for that we beyond here the Northeast through getting not in that

Matt Breese

had. Okay, Thanks great. That’s all I questions. for my taking

Phil Wenger

Thanks Matt.

Curt Myers

Matt. Thanks,

Operator

Thank am you. to I like At the CEO would remarks. over closing Phil this turn no back call I time, for showing to Wenger, questions. further

Phil Wenger

hope with you we us, for us we first today again results in when discuss you joining will Well, be able to quarter April. and be our thank

Operator

and call. for today’s this conference participating. Ladies concludes Thanks gentlemen,

disconnect. may now You

Fulton Financial (FULT) 20 Jan 212020 Q4 Earnings call transcript