FULT - Earnings call transcript Q1 2021 | Fulton Financial Corporation

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Operator

Good morning, ladies and gentlemen and welcome to the Fulton Financial First Quarter 2021 Results. [Operator Instructions] I would now like to turn the conference over to your host, Matt Jozwiak, Director of Investor Relations. Thank you. Sir, please go ahead.

Matt Jozwiak

Good morning and thanks for joining us for Fulton Financial’s conference call and webcast to discuss our earnings for the first quarter of 2021.

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

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

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

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

Phil Wenger

the will overview after quarter. your of he The sharing of Curt’s hear solid will Then the call the And and details performance everyone. take thoughts will was Fulton’s Thanks, begin to in business be performance financial we quarter on follow of our first morning performance. questions. high-level XXXX. Matt discuss and will a today’s our we Curt that, will by I happy good Mark and

In the those team our share rate the prolonged the to continue which earnings first of have $X.XX was our safe. customers brought quarter meet in the record for keeping per to quarterly lasting everyone quarter, us, fact, of record past environment year, has was serve Fulton members customers $X.XX some of COVID-XX presence third challenges. XXXX. in previous Though while share, of per low our the and a and interest Throughout worked our challenges, our continuously surpassing

digital Our of telephone, financial and use and accessible our their escalated online remained platforms. customers centers

delivery financial So, uninterrupted. remained largely our and banking services

In whose could our performed virus. operations whenever that office be could contact terms the reduce of back offsite spread the rules and potentially staff, direct possible team remotely members to worked

we and plan vaccine open markets and the seeing the economy cautiously we are more are Now continues as world, about have rollout of our the serve. communities to reopening optimistic the throughout we fully the

timetable we week, look team members own in more back more we our to clearly our of them people between serve and with We local at our the use plan September. to our levels. have September developing process specific on the to months bring will communities employees and team we and this how the work. bring and it government advice have the we of health continued the upon As time is doing for a more communicate back the our the Late to loosening been site to for of the we offered plans is offices. forward, to timetable This last offices contingent letting first successful carefully know the rollout, plan we experts returning vaccine national return now and shared requirements

also While some continue want for term. to remotely member where will to work work, of do quarter, that our Program, will our report some the to peak longer support most performance to realize onsite continue shared to updates and every CARES amount has Act’s initiatives. All some And Last employees Small sit. Protection exceeded to PPP, of part they am achieve Business no enable Paycheck matter team our I We perform continue volume pleased on Administration’s the we expectations. or I we to

first X PPP the asset extraordinarily highlights because Curt pandemic, our continues will few of to in Deposit to growth modestly of grew of in continue a strong the quality terms we impact In by and the loans. as through minutes. quarter, order performance be loans Mark discuss Wave and other encouraged the be

be strong to continues business remains performer and a mortgage Our the pipeline elevated.

to contributor of management management had This and our in during quarter to also wealth will a minimal line an to of interest Our income administration. a growing record manage delivered under non-interest sheet our and on all-time that balance be high business business assets impact rate in the earnings announced In a the income. quarter. March, risk restructuring first help significant we profile. This continues

markets, technology on our and include we believe with technology, two we which progress. and enhancing servicing. interest strategic minutes. in remain system we in growing this fully are growth, we a the have forward. and it our in a income achieving Mark moving on In urban number plans investment However, efficiency efficiency. These and net We Despite are consumer our we new currently closely mortgage discuss way priorities. loan few linked. forward move challenges, XXXX, Philadelphia of upgrades for One Baltimore. technology and focused remain And pandemic-related to by which in will increasing include financial in further open platforms origination additional is enhance focused detail in replacements meaningfully will centers as These our priority

or we are upgrade we new relationship a addition, fully are management system system and that integrating processes. service and significant our In sales making customer in CRM to a

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

Curt Myers

morning good everyone. and Phil you, Thank

produced noted, residential Phil quarter the like than PPP and generated performance and some exceeded Wave credit X key detail for was in experienced our growth mortgage our share performance mortgage utilization on results solid I several residential modest continued originations of that by greater As strong to line would growth quarter expectations. offset prepayments. as areas. headwinds first Loan results These and were expected we

touch me let on PPP. First,

applications. support both satisfying business by forgiveness Wave and We small continue to processing our X customers requests

quarter’s $XXX total PPP funding. between As X I we million million in anticipated on call, last mentioned and Wave $XXX

quarter, our end first $XXX million to This of and continue from At the point, we applications exceed were but before reduced a well the beyond pace. million modestly program at expect come we in, is this expectations. expires. of the significantly it to As $XXX at

with also to Wave In successfully X X and Wave of PPP have forgiveness outstanding forgiveness million customers their work diligently first We our the billion. X approximately quarter, and we X remaining requests and balance support to continue request. processed $XXX of $X

million from pullback decline PPP to were combined we experienced factors to quarter and Turning overall as or loans, slight fourth in $XX modestly the to contribute continued commercial basis, balances excluding X.X% we – on quarter down the loans. utilization. Originations in linked line commercial a These declined balances.

XXXX. at our up XX approximately was end March versus Looking year forward, pipeline X% loan commercial

loan grew on of was million growth linked X.X% lending, down an XX% basis. consumer it primarily year-over-year. activities. This was ending However, balances $XX mortgages elevated or refinance driven our in the spite growth In residential balance quarter by in

buying continue to we and strong very we remains season. as targets growth be traditional pipeline home mortgage the Our about our optimistic enter

we minutes. discuss at outlook mentioned quarters, a residential to the As we support asset-sensitive rate net to our prior segment to balance in a loan Overall, origination anticipate income this Mark high-quality that in-market is continue that few annual in interest continue sheet provides guidance in room our growing levels of will adequate mortgages.

Turning quarter for modest far exceeded deposit expectations. the costs our anticipated We decline down. as actively had a to deposits growth managed we in deposits,

grew in customer Total linked a on $XXX to categories. a liquidity approximately growth, our $X during non-maturity strong drive on and billion quarter deposits specifically, virtually this the payments or non-interest-bearing stimulus basis. on up deposits a demand million all $XXX provided continued growth are significant linked with balances has quarter. inflows higher basis However, X.X% Total basis. drove More deposits year-over-year quarter increasing million government

deposit the to our actively During costs manage down. we quarter, continued

As deposit to and dropped X linked result, quarter XX basis points a declined costs costs deposit basis now have points. total

In made to further addition, commercial rates earnings adjustments accounts. credit we have on our pricing

income, fee and the on our delivered growth to excluding sale, basis. Moving linked quarter revenue on fee-based a gain in BXB year-over-year on businesses

higher. As we markets add Phil Management continue as to continues perform Wealth our customers equity and new move business mentioned, to well

plan retirement impact We of also and acquired of quarter works service the we investment and have fourth in full XXXX. Benefit firm quarter’s advisory a

to the from and grew end, under first linked drove banking billion modestly administration $XX.X revenues assets write-up. Our when at quarter for of end $XX.X a billion $XX.X the MSR declined income the the record at management second This quarter of billion XXXX. in quarter quarterly row. quarter Mortgage and last up quarter excluding

However, on year-over-year XX% these a revenues are up basis.

relatively and Purchase of we mortgage gain spreads. experience million, XX% from as approximately of were the originations consistent first recent year. the on historically Our Total total mortgage $XXX banking sales an last elevated business same XX% with represents strong of remains and residential increase quarter origination for strong originations XXXX continue activity remains to period quarters. activity

remains lower mortgage primarily Our was Capital year-over-year the revenue, originations interest increased from moderately and This declined which commercial first swap markets during has in quarter. commercial are and line the with decline loan quarter. strong pipeline in fees, year-end levels. rate

however, loans a and pandemic. COVID-XX despite credit, of has on slightly, quality stable. the on increased linked remains to relatively non-accrual Moving remained prior Loans basis. to Delinquent beginning the our relatively year-over-year quarter environment, a challenging since asset stable declined

million points $X.X the we excluding In In of of of industries we $XXX X.X% stand was two Slide XXXX. to which COVID-XX. of declined approximately approximately of XX the more the at March million, charge-offs end deferral stand year industries. charge-offs, approximately net also million deferral and deferrals terms an These XX, through selected quarter, net portfolio. we net balances. and portfolio. end. million X.X% $XXX declined summary million, selected we $XX these On XX have at have and may at from provides XX, loan in noted again Commercial on to Slide trends year risk consumer $XXX due at forbearance from loans calls, down basis had of after PPP previous when recoveries, updated updated believe the now the down commercial are for provided Consumer quarters at

outlook remainder for cautiously Our the credit of remains XXXX. optimistic

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

Mark McCollom

discuss $X.XX will are good you, the of Thank common Unless on this of I the earnings and X, diluted Curt, net fourth morning, income everyone quarter otherwise, with Slide on million. higher on available I per This quarter $X.XX call. is quarterly of fourth the Starting XXXX. $XX.X the to to were than note XXXX. share shareholders quarter comparisons

higher quarter credit performance first provision Our a for net losses income. interest included lower and

income sheet largely higher higher in and more in non-interest will I reported non-interest also minute. expense, discuss a restructuring to We a balance due detail

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

X.XX% a wave and during of average noted, XXXX. were larger quarter, round that million The of this $XXX million to this latest fee, for $XXX of loans, loans of PPP have in Curt the size forgiveness PPP was loan average by we offset a of originated smaller PPP funding. new As due loans originated

securities first yield As to $XX We XXXX originations from grew the of $XX million March million quarter we as our be recognized, portfolio million originations. PPP some and yet our the fees quarter of the into excess $XXX curve mortgage-backed during cash have $XX from selectively million steepened quarter. redeployed approximately XX, of our during first we investment loan as

$XXX and the the As deposit Curt latest our grow round by quarter during government noted, growth million. deposits approximately first stimulus fueled of quarter, saw

approximately in linked lower of deposit moderately decline points migrate our were to as market that of $XXX our approximately basis we was X cost cost and current the CDs XXX at basis manage deposit continue We points maturing over for costs. XX quarter expect would to quarter. the than million basis only points, our future now quarters X have deposits a higher next mix of quarters costs We

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

tender sale reduced of detailed Slide the a summarized our a During and million of was Fulton the and X.X%. tender on included prepayment completed which metrics the FHLB quarter, This our improved shares senior of of restructuring, is and risk a notes on performance the a of rate losses sheet million. $XX our of filed B of X. advances It balance going in of the $XX This which debt, at X-K cost million long-term on at forward. included rate extinguishment by at $XXX at restructuring offset $XX debt Visa subordinated interest X.X% of of an XX higher cost March a gain several gain of X.XX%, rate was of of the Class million

we So, you when liabilities XX removed basis cash X.XX% points. to X cost and at those basis add these yielding that off million of points up, $XXX paid a of was currently with

swaps fixed points entered value XX of notional also into during carry quarter. We basis interest positive received currently. rate the have $XXX Those million of

XXXX on improves updated will provide basis. of to interest my million an our end remarks. at overall, incorporated our the into I by So $XX restructuring this annualized and rate risk impact approximately net is The the guidance income reduces interest

margin net was the quarter. quarter income forgiveness largely X points for versus resulted PPP X.XX% recognition. the interest loan X.XX% Our and the quarter of increase fee first related fourth The from basis in linked

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

needed for for But the the know, first the allowance have in you has as a periods, losses. our had our credit significant well on CECL impact As economic credit COVID half adoption allowance improved as of XXXX. impact of the recent it in losses as forecasts amount reduced in of

contain future trends on new or net loan economic based updated projections. in activity mix, Slide origination change you quarterly periods do provides credit metrics, surprises. X loan could not and this also any our normal always, volumes, As our charge-off noteworthy with which

a year Moving and $X excluding were quarter of banking rights revenues $XX reversal up million Mortgage were were Fee-based driven benefited in last to Slide $X from banking from mortgage strong and non-interest in servicing established a mortgage was million outperformance X, a revenues that from by management. those wealth $X $XX $XX and income, ago. million million, security million up gains, reserve million XXXX.

the from XX. servicing $X.X at increase million XX% the mortgage rights million from prior fourth is reserve impairment quarter for quarter, were management and $XX XX% increase remaining of revenues Wealth Our an the an March of year.

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

extinguishment And expenses had the in to $XX in However, incurred we savings XXXX, to first related our $XX quarter, have quarter restructuring. the balance of related debt million fourth sheet in initiatives. incurred costs we of million cost

each $X from compared items our compensation core incentive these prior quarter. costs, increased to to the excluding expenses seasonal occupancy higher costs and So due period, million approximately benefits accruals higher

to sheet on capital earnings. due result subordinated for rate slightly. gives in impact other pretax tax total XX% quarter all improved to but risk-based ratios capital the the balance fourth more of higher was effective XXXX XX% Our quarter to The the as a of reduction modest capital Slide ratios. debt, have compared X a restructuring detail you in did our

remains liquidity strong. very Our

new quarter, share quarter. We under $XX the but million not repurchase a the that shares also program any during repurchase first did during announced

XX. like are Lastly, as XXXX. to provide to as that wave reflects other of balance us we our sheet well updated of guidance restructuring, March impact This updated would guidance now items PPP our the the of current known as for

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

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

range $XXX with now $XXX over in the We for be million the overall, operator questions. your related excluding operating the of expect in the $XXX to expenses, to lastly, will the And sheet to to range I million. charges to million be million restructuring year. expect that, our to call balance And non-interest $XXX of turn we income for the

Operator

Instructions] from is of Your question Frank Sandler. [Operator first Piper Schiraldi

Your open. line is

Frank Schiraldi

morning. Good

Mark McCollom

Frank. morning Good

Frank Schiraldi

enough or the the I upside, I wondering baked not if picture wondered the moves to PPP. obviously do guide that guide a guide? some second has rate just, am of includes and is mentioned is interest also short – improved Mark, restructuring into just you impactful provides that or potential updated and NII sheet balance the unless the latest that already think The bit. round you end updated

Mark McCollom

Yes.

on curve But advantage still lot obviously, end lot we long sitting, us excess the impacts the take some than money On We in noted, a liquidity. of the and of a investment definitely quarter, the short put in out of cash. did I as work to more would. first portfolio are the and

are is expectation it invest into growth today, is in through, too draws is the and start rather portfolio much range-bound going we at our burned future, the putting we are some we portfolio trade-off too the point at relatively utilization use that the in our other to Our then would is line see And point. think where liquidity if investment stay going PPP again, now. the funds we right for candidly, to this happening to much to tenure investment when loan than core

Frank Schiraldi

Okay.

the guide flattish the of through securities the kind year? does levels is or of cash of sort So, these of book the assume then redirected is that rest there excess at gets some just

Mark McCollom

up of percentage stay work the consistent a the we to little a No. to bound, will an I expect would temporarily, relatively stay opportunity unless bit would XXX again balance see of would securities I But for if could relatively year, the book sheet. range the tenure there. expect of the we balance would if as put pop it

Frank Schiraldi

it normal like terms reserve in Okay. this still be charge-off mean seems it year, could be fairly And levels. in levels, seems it’s of mean, then could a I it year early – fairly like I just about a but thinking the

reserve guess to there where – where continue assume could Mark, X, good little level release, additional you it just factors is to the with I your a it you CECL reserve is can qualitative give ratio opportunity back is normalize, do as to loan a so for thoughts move to, there? think And day was us

Mark McCollom

– Yes. do. points our But points – then we to to dependent points. as I our CECL growth from XXX result think basis And is XXX just predict to down well same. that’s I was the to basis our the went when yes, opportunity for assumes then relatively X and we to drift XX sorry, it’s hard a of Do I We current definitely And obviously basis stays same I from historically. level XXX pace what basis – CECL business there points implemented. were stays again, first COVID. can think went That that that’s day we as or of then obviously timing. up it again, happen, mix as the Frank, assuming that to But am

Frank Schiraldi

okay. you. Sure, Thank

Mark McCollom

Thank you.

Operator

Your next Daniel Tamayo question is Raymond of James. from

open. Your is line

Daniel Tamayo

this missed Good provide did the morning you but not mean guys. the I had that numbers – sure you quarter? some gave impact first I not, but on I margin or the did am fee you if PPP, in the provide from

Mark McCollom

Yes.

the need margin, normalize, So about But in quarter. in also think first size, liquidity. about from sitting the to X would I first and first the increased you up consider that saw the the of talking the excess were you when quarter, you $XX then is basis really both both the are fourth excess about liquidity have share is to the in those what PPP some the impact Danny, million but fee me, need I to If can about on in points think quarter. the margin, also fact the income think mean, we of million about effect are to you way $XX.X totals, quarter. To you our that that’s we fees,

Daniel Tamayo

a within maybe in sheet And helpful. you little embedded talk well? assumptions bit then the maybe if about NIM guidance net that’s interest and your balance Okay, can then the the on as income

Mark McCollom

for seen to PPP sitting makes liquidity predict were not wasn’t excess guidance you that when sheet I as year, on our industry, And a have with little whole we mean of originally bit that industry back yes, is provide when the because volatility I think NIM balance Well, out. harder it the crush the the from guidance we quarter gave the put and guidance there timing even a intentional size. fourth whole was to

that million that PPP. on said we come our include to So, fees Wave I yet million, just assumptions And originations earlier, be current have guide X $XX.X I that, have amortized. and then comment a the can million. we We $XX does over little our assume with on, of X have $XX as new

well bit into a by the recognized. But by wildcard. and which place that full would million stub didn’t would $X $XX the originations, billion and have new anticipate million, baked year. guidance. off of of that that take the of of books much need X last is that gets approximately of be – year comes $XXX year the that much you of little of end of of the end to still fees are between the of until the year I What’s is that XX% be really also weeks off restructuring, more forgiven impact March. remaining a the which assumptions So, is XX% somewhere into how the that baked How guidance, the on our or the again,

would any months factored of XXXX. a first $XX that But ‘XX. quarter. didn’t impact be million be see X year the into material impact really you of factored in So you’ll that of the then would restructuring And that into full effect see

Daniel Tamayo

Okay. sheet guess given here That’s quarter a on but pretty the in reducing sensitivity strong balance bit, asset last I deposits. mentioned into And increase terrific. the the you then coming thing restructuring

or COVID asset How prior guys increase asset-sensitive the So benefit from to rising would sensitivity. rates now periods? bank to expect to in short-term you relative before relative an how does this from perspective maybe

Mark McCollom

inherently slightly. excess question. But remember, really time it’s I that and sitting kind in a we’re be even time. asset-sensitive water. it’s everything is, government going get it’s of asset sensitivity we’ve the for of And because treading non-maturity to you with sticking deposit done, deposit, liquidity, great then overnight if that’s non-maturity a little stimulus, got It’s answer a mean, every around we’ve very if just bit our reduced cash, you

our levels. loans So books, it with we is on as on But how quickly forgiven reined This I our into off mean gone that a depending would done get more sensitivity you’re not and that a back cash. of up replacing lot asset have had this. acceptable taking loan dynamic

unless in that excess used little gets So both balance deposits, of and to cash your shrinks, terms cash unless is going and that sheet a bit in more. increase asset sensitivity

to we rising So are still well rates. very from benefit positioned

Daniel Tamayo

all appreciate I color, the Mark.

Operator

next & from Your Erik question Zwick from is Boenning Scattergood.

is line open. Your

Phil Wenger

morning. Erik. Hey, Good

Erik Zwick

morning Good guys.

Phil Wenger

Hey, Erik, we can’t you. hear

you mute If chance? were on by any

Erik Zwick

now? about How

Phil Wenger

It’s better.

Erik Zwick

Great. Okay.

outlook Sorry, just range. a sorry rate Mark question for restructuring for of kind top that first, the of the the of expense that and kind a charges quarter annualize $XXX of towards kind level million coming in if I then from on remove of first end the about that. year, the non-interest Maybe quarterly

some mentioned curious, the branches, in investing tech new investments. you urban Just of the markets,

potentially from opportunity the run quarterly range? would the to that end is where curious you improve that closer get outlook Just bottom of rate that

Mark McCollom

should question, great Erik. Yes, you definitely,

not items bonus I that some winter cost And in the plans. terms that five-quarter of which always trend just It work incidents, if and first seasonality, COVID. the heating as a great increased because snow of definitely kind all be final for we removal. personnel by referenced repeat. well prior have tougher you And our frontline related some X. XXXX incidents, true-ups to There level. definitely removal, some of our look but done was throughout of number were some quarter, on of number of the this for highest occupancy had was should terms than just of of as year bonus amount that to the that the in they necessarily at of payments You We there. of snowfall be quarter our not number both us kind just expense, did years. have first snow In the won’t multiplying some taking tends our

it guide that at was strip for So you and attributable you that this reason it would things we what plans. ago, to million, increase bonus when adjustments those accrual the was if quarter increased amount look – our year’s what now, out, about $X versus a be is the really and by

Erik Zwick

Thanks. That’s loan you’re to comments, prepared maybe helpful. and guide. you Curt the that growth And Phil NII for or support then then one mentioned for our expecting

you’re couple seeing opportunities of curious seeing banks mean growth. pretty a in I I to your are they to tepid grow? Just where loan spoken smaller and still market,

more Where So some just your I’m curious that markets if of maybe this some access year? it’s loan maybe customers, the to you might access but improved urban to the larger for growth just present opportunities. do see opportunities

Phil Wenger

Yes.

maybe it’s is in down and seeing really lines. PPP markets. more loan the a money paying opportunities we’re lot in markets, It’s So coming across all urban grow hard our PPP little of to your a that portfolio ex when all

credits disappears and people opportunity see we have for that start great past, lines growth in like their as there. So the using of they just

show So we’re growth It’s are settling. money still lot that requests we in. PPP coming is of a to and entertaining just hard when

Curt Myers

Yes, Erik, this is Curt.

the of credit line that that, headwind quarter, linked linked just quarter. had we million was over to point one $XXX just utilization Just

been to So – million XX and would $XXX months, utilization rates. the kind for if we get it’s of long-term back normal

Erik Zwick

Got just going or color exclude million banking valuation I forward. I’m last thoughts run curious one about for from and impact of was assets of the then servicing one, maybe mortgage $X mortgage if just kind line rate the so. what it. the the there. thinking And Thanks the

home refi maybe We’re to inventories entering bit. shortened peak with guessing the like the starts tail seems season. XX-year off It definitely I’m a a selling increase yield. in little

you can in line. thinking of what terms you’re business what curious Just from generate that

Phil Wenger

see strong. We be that to Yes. business continuing

loans putting sheet. the are on We balance

and So look funds the balance those. at look growth, both it operation or you depends at if you sheet fuels really income fee that if of

moving improvement home quarter from expect But for normal strong higher first just we into the seasonal then So season. buying us. business remains the

of that volume. to over continue expect we it margin we on spreads strong will depend pace moderating, sale time, them to still have really gain see but really We the high moderate and on

Erik Zwick

Great. Thanks today. taking my for questions

Phil Wenger

Thank you.

Operator

is Russell Your from from next Gunther Davidson. question

open. is line Your

Russell Gunther

guide. if Let please. me could, NII just on start, I first follow-up, the One other

have $XXX $XXX for fees to Do the you of you assumptions. of So that includes number guide? that PPP is a in million guys remaining included million, $XX mentioned how million much

Mark McCollom

Well, we’re that But balance you loans, XX% million wave, XX% what our billion again, and relates tell $X that can that is first guidance. providing between $XX to that so assuming left I the it’s not of of on we’re the those about sheet. specific

year. We’re of assuming that, that comes off by the the end

the one keep other X, it’s these that X-year us were that accreted volatility, not of a everybody note wave, for note. the over in loans to Wave things create who’s a is in unlike X because Wave X the that’s years mind more Now first actually for fee X-year which but are participating just going accreted

quarter. a we $XX middle starts. this that would are – current expect wave, going to in the forgiveness going be is to that’s the those there in being the We the of the forgiveness process start lower forgiven, on have yet million So until in third little these basis Wave of start coming normalized quarter, be until would amount bit going more be fees X third be they to recognized to from a

Russell Gunther

Erik’s how year? have question fine Okay. loan organic geographic estate, lot. talked you on that some And growth know about a do you residential a Thanks up but on know the too that the following different you for it you I and real might the just the loan That’s I contribute point from growth how about portfolio mentioned the contributors, do put helpful. of then a don’t verticals. expectations, show, but for on mix some sense

Curt Myers

see still Curt. it the it’s We and of a to we and have is ability residential strong. sheet to Yes, significant activity provider mortgage be do growth has, continuing as that Russell, balance activity that

On the we focus commercial in our on side, being portfolio. to continue diversified

last So the going trying feel grow to each to are similar very is be over quarters. mix to segment, experienced we three to we’ve we what and really five that

C&I mix growth. the have you’ll commercial So a CRE driving of and

Russell Gunther

for Okay. Great. then one And last just Thank you. me.

back $XX levels? you stock million current the mentioned authorization. to at You buyback appetite your buy discuss Could

Phil Wenger

model just be that and that, a look run dilution. like on At the at current levels, Russell, what earn-back we will

as to earn-back buying the value higher goes the increases and price you’re stock at a So book premium tangible obviously, up, length.

be growth would tool that to a using to have would opportunities what transactions it. out which to one tap other it toolbox, a But as in that’s to of question for there want it are cash there inorganic be ultimately we include would use going levels, the think I include we organic in capital at that M&A as But continue component well. current unlikely growth, So as

Russell Gunther

taking my it. me. Mark. Thanks Got That’s it for Great. questions. guys for Thanks

Mark McCollom

Thanks, Russell.

Operator

next from Westerlind Stephens. is Your from question Zach

Your line open. is

Zach Westerlind

covering Hey, guys. It’s here from Breese. you? Matt Westerlind Zach How are

Phil Wenger

Hi, Zack. How you are doing?

Zach Westerlind

Good.

what could Just the and a are just to book on margin you new color the looking little really coming on was go that hoping back provide quickly. loan to I of costs like? deposit incremental yields kind

Phil Wenger

modest I you we quarter’s can now, of feel know floor should I that. go-forward What out I that on the expect that core margin directly, are see question answering going on affected, be what of we out And Matt than just without forward. had the we’ve that share in that and you to that if to earnings on other I restructuring of in confident said excess what time from which a our basis a PPP stripped we share basis. The going but basis, on would only PPP utilization balance expect the that wildcard I a we some of say impact that, be or deposit call, is again, with to expansion do is your quarter so on last would stated or within is next margin the was at I sheet do the – core trough on,

Zach Westerlind

little I if of you that And that. how is book bit the asset that? is the much loan talked I appreciate loan about you a Are share Great. know and what percentage of for floating to able share you’re at to the of book. sensitivity loan able

Phil Wenger

Yes.

to on appears the look fixed includes it XX% loan surface that we when be So our rate, book at today, PPP. but

is when you of our out loan strip portfolio fixed about PPP, So the rate XX%.

billion would either LIBOR, about you adjustable and so that total, about are and XX% $XX.X to about have two-thirds – prime still we of then be we loan or so And tied of between in loans the variable book. if

Zach Westerlind

seen for just your one deals M&A Great. that. pretty I the market me, we’ve big in kind then on in And appreciate some while last obviously, of lately. landscape,

impacting been down? of up, if are curious conversations front. willing you’re larger have Just kind deals slowing picking about any color these how the conversations Or on just to share that

Curt Myers

over picked just up. months, X say, conversations would I have the last

Zach Westerlind

my it That’s taking questions. Perfect. me. Thanks for for

Phil Wenger

you. Thank

Curt Myers

Zach. Thanks,

Operator

to time. at to conference further would Wenger. no back Phil the turn showing like I I’m you, now questions this

Phil Wenger

joining second and we you’ll us Well, hope July. to today, you. for you Thank be thank discuss in be us again results when able quarter with we

Operator

conference. Ladies and for concludes today’s a wonderful participation. day. this gentlemen, you Thank Have your

disconnect. You may all

Fulton Financial (FULT) 21 Apr 212021 Q1 Earnings call transcript