F.N.B. (FNB) 20 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to the F.N.B Corporation First Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Lisa Hajdu, Manager of Investor Relations. ahead. go Please

measures statements morning conference Good files to earnings viewed contains our the financial measures. Thank should measures of and F.N.B. This be Reconciliations our alternative forward-looking most non-GAAP to operating often materials Commission call to and addition the as to reported reported our non-GAAP prepared GAAP and Corporation call. an earnings not in in financial Securities of results comparable Non-GAAP you. in Exchange are GAAP and in financial directly our presentation for welcome accordance included and and with with GAAP. release. the measures

Commission forward-looking materials, website. corporate available replay refer link these statements XX on of the registration A Please posted be will webcast Investor this the April website. contained will our Exchange Relations in the with Friday, statement be reports non-GAAP available under corporate and and section and Us of our until related and our filed to call and disclosures About Securities

call turn President Chairman, CEO. will and now Delie, Vince over to I the

our quarter Thank welcome to first you, earnings call. and

initiatives. Joining or our Credit revenue stockholders positive share. financial from the previously FNB me to XX% FNB's strategic as the due Financial consistent first our pre-provision Calabrese, basis, over year to reported available increased net success managed of operating leverage of On $X.XX the million EPS the Chief per quarter net first XX%. Operating our was operating income of diluted quarter quarter, we The of stated Officer. performance XXXX. execution of an ago Gary and $XXX.X overall today common are XX% Officer; Vince Guerrieri, Chief common grew

performance. to rely set sources we example, on various diversify to and maintain out For income

linked-quarter quarter, contributing our FNB to non-interest basis, a $XX management On reported income. of This stable revenue million. wealth record

deposit balances. to customers' And average our We be relationships were base, we able to deep also granular maintain deposit through customer operator. strive primary stable our and

of macroeconomic from philosophy regardless FNB maintaining of the asset loans Our underwriting without X.X% quality. prudent quarter on to standards contributed average environment compromising consistent and growing

The common tangible several levels return X.X, equity on momentum equity first of a the one and ratio performance on XX%, tangible return of on of in company quarter also metrics, average X.X%, had common including assets positive of key history. highest

are this adversity the more it sheet ample results our conservative our challenging execution diligent especially with to of withstand We pleased in industry the balance quarter's and the a validates believe economic strategy, aforementioned capital management and of with liquidity environment.

integral diversified FNB's the liquidity nature, sound recent and of policies which have Management The These testing, liquidity importance in test capital long-term solid management, on regular to and and have and stress Management Risk Enterprise spotlight placed proactive balance maintaining model. deposits, governance. failures, analysis, however, practices includes always are conservative credit levels bank a our capital program idiosyncratic prudent analysis strategy a new sheet Risk reserve in CECL model ingrained been diligent and stress and granular

we previously our remain on primary close focused their with I multiple bank. and customers on being calls, operating mentioned As foster relationships

have solution we in technology platform, our enables management treasury service, capabilities, made high-touch prioritizing strategic containment privacy. to customer addition In our investments which digital

prior with The decline of a and success data H.X slight on from deposit a first quarter, large the are for the of levels billion, the disruption deposits through $XX.X our client to industry small outperforming at quarter testament growing deposit focus quarter banks. relationships X.X% the the ending

X.X%, were outflows normal industry when quarter to Between volatility wholesale flat, and deposit our from seasonal declining due March primarily retail customer essentially X, end, began in the activity. balances

the consumer largest different XX%. total the account comprising is deposit Another our of customer balances deposits diversity strength with the of throughout segment base segments at

balance at approximately segment deposit $X,XXX. a median of comprised end consumer one accounts The with is million around consumer quarter

experienced and net benefactor we diversified restored all as X, normal number a inflows deposit funds customer levels is FNB in are March a to accounts customers increase the segments, since of between positioning across Additionally, banks.

XX% March to invested a Because FDIC as of FNB at which FNB of the either or also the deposits, year-end. non-collateralized available have necessary, granularity Bank we quarter approximately ended the peer collateralized, banks with If of in and deposit the up insured position. the our our liquidity strong very deposit by balances, in liquidity XXX% to fund exceeds uninsured XX base, placing median of the for KRX in XX,

FNB's is to years even available of with maintained three duration five also and duration to and fairly held and to average We to have nature historically between philosophy investment sale respect conservative between a maturity. an for portfolio risk. by manage split

FNB of plan. onset industry disruption, funding the our Management the current contingency banking activated At

response and diligently capital of to Our including our and reassured sheet, on weekend a began and that strength balance Board client regarding and ensure relative employees of working customer-facing our FNB's were team's over liquidity swift Directors of stability points personnel outreach outright with was the talking the were position basis. our briefed, proactive

by once basis. now balance our we the economic disruption, wide Through pleased continues bolstered banking addition, strengths. XX outperform positioned potential nearly industry on of a array the increasing by at position In report the very industry our credit low trust remain company Credit and as that as we one FNB earned promised to of the has financial I'm delinquency uphold position and billion. again with sheet to to customers' $X crisis, solid cash have trust, to scenarios. our liquidity the in we pandemic industry and

and our give credit risk. more turn will Gary? on asset Gary of now I the to call management over quality our consistent to details

the and morning, low our and historically well Vince, quality remaining with metrics ended near good our positioned, asset quarter everyone. We credit levels. you, Thank portfolio

down still quarter low and XX although XX quarter-over-quarter, OREO basis Our year-over-year historically that Criticized moderately points performance points. up XX basis loans charge-offs points levels. delinquency net at basis for and and at NPLs total period the reflects ended the XX points, basis at were points basis at XX at

asset loan cycles. economic followed the more strategy for cover in detail, credit highlights quarter will some throughout these to quality by into portfolio insight I manage our used we GAAP the

Total walk now prior credit quarters. in XX current payment point maintaining delinquency to the previous with XX% in X in through in the quarter, results. historically delinquency compared basis low OREO Let's our basis the points contractually NPLs a were levels our seen quarter declined down of NPLs status.

previously previously million and loan basis charge-offs provision for charge-offs at $XX.X reserves. XX quarter stood Net expense specific that use totalled basis, Total for a specific established did reserves. not the with the on an reflecting points growth providing XX annualized or of for points the quarter million, $XX.X established basis have

approximately model at CECL were $X million. moderate builds related

to increased coverage or Our peers. acquired strong quarter XXX%. reserve a million the X.XX% reflecting position strong at discounts, $X.X of stands ending in loan unamortized and our position including our at funded stands remains relative $XXX our solid reserve NPL at and When our million, X.XX%, loans,

approach loans our performed consistent review real in on managing credit steadfast throughout including risk balanced remain commercial of an and cycles. a 'XX. an test We ongoing in We quarter to and estate and basis, portfolios proactively to maturing XXXX in-depth maintain portfolio stress in underwriting we where review current economic well-positioned the

we risk LTVs. outcome of and that real not portfolio commercial by rating the maintain as backed estate with exercise not a any pleased low unexpected were changes have diversified did strong which was We and sponsors

and loans criticized remains portfolio, office are low delinquency points XX at basis the XX%. very below Regarding

XX% million exposures are loans top million. averaged Our than $XX office the $X XX and of less

loan-by-loan and perform. continue have We part a in-depth manage reviews aggressively portfolio regularly this of will to on basis the as we

in positioning trends and quarter has had a by of successful core economic closing, to served favourable markets. attractive monitor in our and continue we as us strength times. and loan philosophy, closely marked the In growth which macroeconomic of and individual manage we'll diversified the proactively We continue credit portfolio well in markets we our risk as aggressively credit footprint, part our to generate softer

call the for I Financial will our remarks. Calabrese, Chief his Vince Officer, now to over turn

Thanks, Gary. banking management remainder provide activities our for the on Today, will focus color updates financial guidance March on XXXX. and balance some of everyone. during in first disruption Good sheet the results, the morning, quarter's offer I

continued shareholders $XXX.X the share, income $XX.X $XXX X.X% a loans driven record million at with annualized. earning to increase or assets million quarterly net million $X.XX quarter ending and reached Total or common quarter all-time asset performance. by contributions, revenue available expenses billion $XXX solid an First with seasonally high, higher and totalled growing per quality leases

$XXX loans loans annualized high-quality Commercial million increased driven continued a across success or by footprint. to strategy the X.X% of geographic grow diverse our

and slightly the commercial quarter, loan pipeline lighter seasonality, While production quarter. production robust after approved last attrition sequentially loan increased the was reflecting normal fourth than

auto loans. partially loan direct lines linked as million Consumer X.X% or home consumer loans by $XXX mortgages increased quarter instalment residential and offset growth of of credit indirect in million balances, was in average decreases $XXX equity annualized

adjustable Given organic well both in customers' keep preference we the continued rate of high as in program our currently rate mortgage mortgage of as continued environment, success portfolio. the residential mortgages which physicians growth reflects first for

remained our median portfolios, and capitalized. is on including portfolio basis, as CETX $X.X well the billion, ratio marks and sale. HTM fair with at same calculated Investment When available the classified for our XX% in stable we AFS above peer value the remain

cash X.X of linked inclusive or billion, Duration of partly first a at the to ended million March X.X years, years. XX seasonality. normal portfolio decrease and position quarter is quarter at deposits of our Total X.X% $XXX securities due our $XX.X quarter is

to normal were relatively slight outflows a wholesale customer and flat In due fact, activity. since audits from March decline with X.X% X retail

is earlier, looking $X.X $XXX,XXX. our $XX,XXX Signature our balance million which total Bank's of mentioned $X,XXX And average deposit at is deposit was the median of at average Vince Silicon account end the March. consumer Valley portfolio, approximately below well balance and Bank's

our We also year-end. of as median than are peer lower

market quarter, rates. customers mix higher out move with as deposit The accounts shift of funds billion increasing to this CD deposits take of time $X.X money did advantage

level, bearing of mix XX% XX, below the XX%. down non-interest total XX% of a deposits, from year-end, strong loan-to-deposit our at remained at deposits quarter As ratio remained slightly ending of comfortable March and while

disruption, to quarter billion billion cash borrowings industry light in the liquidity aggregate, at the position decided banking on-balance by position our long-term $X and about In short- sheet end. excess increasing to bolster we by bringing of $X.X our

X.X%. yield loan basis the revenue as expanded of totalling XX statement, income of points three interest was million basis margin asset yields income funds net interest a points or with at points. million, $XXX basis driven XX $XXX points quarterly cost net The while increased basis earning the million quarter record XX of increased up Looking the linked $X.X increase by

in deposit Total Spot XX.X% the betas within ongoing deposit average in XXX ended our focus. We have at this been with XXX diligent to reflecting the rate a by be our team. continues ended prior work at quarterly XX%. costs cumulative guidance quarter environment interest-bearing the coming costs at deposit significant the managing quarter of

in revenue X.X% last of commissions expense. Turning to and million, growth quarterly fees, $XX.X reached $XX Management with record mostly million, Non-interest split Wealth a decrease fourth a by income and between quarter million strong from $X.X totalled annuity the strong primarily of non-interest organic driven services, securities, of seasonality. trust income slight a and increase year.

in led on increase million mortgage fees, Higher million production or XX% increased a insurance sold quarter, revenues operations volume quarter and X% commissions gain linked income in $X.X and contingent increase improved linked reflecting sale $X.X margins. to a mortgage banking and while

the decreased program largely income decline strong charges charges $X.X and XXXX. reduced speed $X.X million, overdraft in and due competitive to very in swap expected current to the the markets reflecting fund previously the fees quarter fourth million given in quarter levels Capital syndications environment. announced of changes our nonsufficient from due Service decreased

largely $XXX quarter normal and the the combined the Operating in totalled non-interest of fourth increase with for expense addition XX% impact FDIC announced base quarter, insurance increase reflecting expense of an a from the assessment the rate. seasonality million, previously full the Union

million at payroll the normal increase paid items, deferrals given Salaries higher from million ratio benefits XX.X%. million of of factors. salary remaining the Even level with is expense Union and the addition seasonally remained favourable $XX a long-term primarily related loan increased activity, employee reduced volumes efficiency these origination was of prior approximately compensation lower including million $X The of expense and seasonal compensation base. $XX and which $X.X to employer

March ended expected are increase at at that share XX, Tangible levels above an at end peer December common per of year-end. capital Our book be value from quarter value decreased at quarter level share compared from $X.XX higher or median. which the ratios $X.XX of $X.XX and the per share to largely per AOCI, from the current earnings by X.X% the of reduced book $X.XX impact tangible XX, was to

our amidst Vince As XX the than strength To industry TCE the TCE median our X.X%, HTM level, our is reported history losses of for using mentioned, is points company peer highest adjusted year-end disruption ratio unrealized levels. of one demonstrate this in which of the basis higher equalled XX.X%.

the On XXXX guide spot to financial projected a similar the basis, starting at deposit do end spot digits current XX, a in full balance continued with XXXX mix expect look year for Total previous maintained deposits objectives, now the XXXX environment. mid-single loans balances, at Let's year-over-year. given level we December although shift our to the the we rate sheet. as increase

net $X.XXX be billion $X.XXX interest expected between to to million. and income is year second $XXX Full with between the million billion quarter $XXX

largely Our point to forward quarter lead flat curve industry rate for modest banking decrease or to of assumes If is rates year. basis remainder in is current come our in guidance this to were that forecast. from then the NII last year upside projecting modest down to the environment. currently a the XX could the as currently May given betas guidance deposit expectations higher The hike our related

year Full slight and to quarter our between income million, be beat previous with is $XXX first revision our upward non-interest expected reflecting million guidance. relative $XXX to a

to diversified strategy. revenue Second the quarter be range mid-$XX with is continued from million benefits expected the in

for $XXX guidance our nine expense an year higher guidance. the are Adjustment consistent is account to with non-interest $XXX prior to million million. operating expected to remaining for basis be quarter the Full months expense first is for levels on

expected Second $XXX quarter is be million. non-interest $XXX expense million to to between

from guidance Full on softer net growth, environment. and to remains potential model-related is CECL year macroeconomic million builds provision loan dependent million $XX $XX a

that XX% the year, for full effective and activity not occur. investment include tax be XX% should any which does credit between the may rate tax Lastly,

With will Vince. back call that, to the I turn

capitalize culture. the Our during conservative and ended that performance sustain financial confident stable a FNB's is with to business to are the solid maintaining we to industry. correlated position quarter turbulence in foundation practices capital have positioned FNB this deposit and superior first poised performance We strong are directly in our on monsoon. base our

as the of received retail proprietary employee awards for and differentiated our selected industry In and and selling bank FNB for model a culture proud XXXX, delivery omnichannel are eStore. leadership We of we client for experiences. our our was have

award the America's excellence best Workplace year. and a by by Greenwich of winner Top Energage, for client consecutive USA banks One XXth for Forbes, service

We to FNB to and LGBTQ+ Award a best earned also through continue employees mission. and inclusion, diversity greatest who a women best for is of diversity the workplaces for for our work by commitment one and these the company our honoured Choice to winner our be millennial. three awards commitment publication and of values America's our and Woman's hard dedication of share

Thank for together. while shareholder you to one team respecting environment our and at value succeeds winning creating that cultivating another an

Schiraldi ahead. [Operator Instructions] Frank comes from Piper first question of The Please go Sandler.

liquidity mentioned the balance you you Vince, morning. on the sheet. the negative or additional carry Good -- mentioned

bit Or seems? wondering primary accelerating Just a the it what NII have I a time, into lower on guess is is you the negative the and guide? is carry that, more mix shift, that of now driver it

It's excess billion. carry, that we're really million $XXX that. XX, still earning like was cash We're because negative is points. significant the XX basis at maybe our earning not $X.X Frank, position Yes, on

I around given we think or continuing It's carry. rates. of a XX% borrowings current mix big down shift so. kind not the negative roll a and just It's to deposit start took

of you. that's total have percentage does the curious, in the guide, year? I But assume front granularity in of end levels deposits think mix there about Okay. kind baked of you that And by don't non-interest-bearing a you your know shift this then terms sort the if just of as of what as into of

end down the of and the comes the That's year. It mix. now between slightly

acquisition company, in revolved that's account accounts. our big added strategy always lending bringing and operating actually And efforts new strategy around period, disruption has know, in in focus those net the continued the and bring a accounts this continue you As to accounts. during

of businesses. look We the talk there's consumers for on comments, by prepared you we disbursement mentioned is mean -- What customer book not And we're impactful at go if us. operating to that the earn to principal There's in lot operating bank places primacy. be consumer and sticky. is principal a to $X,XXX. their that people money to we right, we the to account tend bank don't more pretty enough in on around. it tends -- be call and know for about the that I move granularity the the that their we're for And that's

deposits for credit direct directly So services. that And payment, they're and deposit of you we've in XX% going are or the to is of presented side, that concentration where historically, look bit in have keep segment, a the to gives of cover into. good the commercial at on then as said the that if business the items it's we cash tied

balances where in compensating bucket. gain So non-interest-bearing a you earnings credit that sits an

be tends again, fees. to for cash balances to services because using And pay customers sticky prefer versus

So that's all embedded into that non-interest DDA category.

at having relying pretty about feel balances. good we others be good on may transient base So solid a more we feel outperform a who will minimum, and

shows, in it category. can events if back it the performance historically, in look you basically, to think see I you relative our

moved through sort in a office Yes. you, what I just if average gone In portfolio underlying on I of you've in think terms just where talked you in of specifically the this question markets of you some as what it's that's then about sort LTVs origination follow-up, book, And as largely terms? Thanks. you I'm assume in telling has wondering in value your a share for slide just of percentage can I'm that's your loans. in-depth review telling value property about XXs. lastly, at guessing, low that's the Gary deck, the credit. of the these

have space. generally range, various issues in the We've speaking, high updated into did leasing seen XX% the that to had in teen reductions appraisals, XXs. properties some We Yes. one Frank that We've the this so XXs. we've been to into that's got been far, had range update. the much with that ones board the the we that's And have But pretty on that that point, experiencing. at across

that. Great, appreciate Okay. Thanks. I

then with had X-year what money question, And we just Frank, of like carry some negative clarify, portion I forgot down to the we took XXX. on

kind really of basis. no kind flat the all So in, had in negative which a of all on additional liquidity, carry

Thank you. Okay.

from comes go next The with Please Raymond James. question Daniel ahead. Tamayo

overarching given, should morning, outlook first, could incentive operating me give on of in the down with drive Thanks. if guess, I that the my decline everyone. just you the drove outlook higher that Good a expense an compensation? idea Maybe what guidance, overall thought

Danny. can for quarter on I Yes, comment million. in an on that, at $XXX expenses mean I basis the operating came

Our range million from million. was $XXX January to $XXX

So $X planned. million the deferrals consumer had lower just loan costs, was of of variance Half on origination that than above range. what loan high end we that lower volumes

that half million of items. of it So was really kind rest kind and $X of difference, of then the that a one-time was of handful

$XXX quarter, If compares million, you January. gave guidance That's look second guidance XXXX for consistent our with at to $XXX figure. million in our original that the we to that

mentioned In prepared fact, unchanged is from before. remarks, in the had nine what as we said my I months,

lower So of XX combination items. one-time and it's some then FAS a deferrals really just

up as how right, So year depending comp be is much revenue create, we how move incentive that forward, there will depending variable, or out, down. on we commission plays the on is

that above of swing the item $X million So it range. depending a that variable vary a ultimately. the But high it's will end it really when was is -- just or on expense

always significant. the have. So it's And as diligently forward guidance expenses we'll that we not manage

that. appreciate I

-- the thanks on couple for that. rest from for comment then I prior here but for Gary maybe remarks your a the in credit. on And the the the year, prepared Sorry, missed of guidance stable

I office incremental the appreciate there. the First, portfolio, all detail

in spread type what had across a could city in? versus or if detail you are kind urban you footprint, that get we of are suburban, cities that breakdown I wondering of what those it into properties know the way the any but more Just mentioned of offices

majority Daniel. are the mean I larger the cities, metro office Well, facilities in of the

remarks, XX%, that I book almost mean, is under As of mentioned half the $X in million.

the they're of markets scattered part. So most for suburban kind in

down. We But of that Carolinas Pittsburgh one we with in in the had had terms issues the came appraisals, one down. those leasing came that in

So pretty much board. across it's the

you exposure basis, our right? not we I just we're nature. majority like Gary, said, tend to clarify, vast of than business, on in finance other don't majority the a not metro said to large markets long-term But -- is that -- our office suburban in you I facilities mean, own. that CRE we know

average I and the million, kind to the that million, mean With speaks $XX properties to top $XX being the to $XX speaks of of million type locations.

of have big urban little very properties, type centre very We little. city office

And very our are conservative. LTVs

portfolio backed leases. by lot a I leases. fund secured in typically basically up up And spec think construction that's that's We any, a have our of LTVs a large of portion portfolio going little the to pieces or by a in the don't hardly is so underwrite keep construction because takeout. We not to to we be the what the exposures. are higher tend them on permanent book of versus we do

So the I just numbers want that everybody sure non-owner-occupied to slide in the presented on makeup series. the understands of that make for we

the just guess, quarter? thoughts relative a in of Okay. surprising, outlook but came I that. Thank Terrific. curious a office, the And little macro I your outlook, down was to you. but thoughts there lastly, on there the your on Thanks guess which on and last macro reserves reserves down not -- the overall driver on bit the on follow-up quarter, then just overall, for

million. reserves in not dollar we from that of that $XXX basis Actually, prepared Yes. basis it mentioned terms the and point, so reserves used $X.XX X some point. to And down, reserve still down at was $X.XX, specific the down in remarks, were X I was

peers to very it look include when flattish. as unamortized you $XXX is million, we the discounts reserve loan position And mean at at I our strong. So compared

Okay.

So...

points. been basis XX XX, There's

and where been others If above carrying that's over the a level peers, coverage our at buffer reserves. their you have significant versus look and

me. All all color. That's it you. I Thanks appreciate right. Well, for guys. got I Understood. the

go Please The next Wells Shaw question comes from ahead. Fargo. with Jared

punitive it questioning your just how mean, quite in filling embedded ratio, This guess I I elevated line good of the is Hi, your morning. cautious the numbers, Maybe last pending in is end in group already more on to catches some the for as point, macro much point? your and basis of hold kind peers. up a Or already does in reserve starting is XX more up? to environment, Jared. that I guess rest a the point recession of if of buffer embedded Braziler compared allowance of is we that continuing do Timur true

sums. Yes. on as during We very reserves since Timur, did for reserves, at down COVID. months based position coming got strongly We institutions into large going a -- time. other we taken we've ever what cautious it we to that was into from it the time not we that standpoint release felt quite that saw did in issue maintain six frame we some those road. to And We looked be a an wanted

And to appears economic time get naturally then what a be frame. into softer we

So that the go we've being rerun changes an it's they're of every been week quantitative able to every and portfolio we analysis each qualitative, month. maintain well we versus based the week-to-week. in those reserve through our reserves, the and ranges Actually, on within

we good to where and it So accordingly. to are, that when we look position, about you we're at continue manage going feel

in underlying out more the line on for Okay. for then, loans coming are XX%, Great. you those regarding XX% for laid in maturity guess new kind XX% the they'd is following 'XX. the guess the they rolling book. I office up and I you, in just questioning higher to the for Gary absorb be up -- And of of one that And occupancy the the be interest that what's ability the underlying rate confidence rolling what's trends cycle, guess, refi kind would or that I into? rate that there maturity of into?

larger on quarter. dive the had manage those credits in on a single mentioned did just We remarks I basis downgrades, And them loan-by-loan on we of credits. regular a the no as Yes. a basis. those every during deep one We around

that reflected those into walls, most range. so which generally no in X% reset to consideration maturity recent And review, and ability the the took downgrades,

I'll rollout, manageable in some some going LTVs sponsorship very a I downgrades, recent it's which but we those also generally situations. book, that's built reflected and have that got on So you the no that that strong extremely most we've particular naturally, as the that the hit mentioned. XXs, mention when based to across is into leases review, feel of take

the question about came Thank peers. you, Gary, up reserves to our relative

banks doesn't it's net helpful ratios criticized other it than because of necessarily loan our that mention to aggressive think I translate gradation, into typically charge-offs. our classified are higher the and

look cycle. a proactive if which period our being peers, to position. higher throughout FNB have higher, but over a credit at the you downgrading and of So aggressive people in long very we time, charge-offs versus then function run That's the tend lower credits, results in a reserve

the gradation portfolio. really within So the matters

delay level of institutions have delays same Other or and until could won't the they their assessment of the see end reserves in risk very tail of a crisis.

sure positive, everybody a it I just understands not make to that. be as want negative. viewed should So a

on I Gary? path here, Am

for very with agree it everything And as for ratings, the this and centre quite would I mentioned. risk mean certain portfolio management aggressive I I is front No, of and time. said. been some we're around you has

XXX net interest shock rate one to both is downside sensitivity. I'm the just color. appreciate what good Slide an for on NII that and that. the XX, and XXX like looks It wondering up increased. down Calabrese, That's benefits the the Vince dynamic upside scenario? I in Maybe both the

moving faster has of moving down finally pounds unique now the a we'll This little inverted Free, to get kind scenario, those yield rates we in thought. benefit the circumstance Scott the the created than a up, It's start is curve deposit where Treasurer.

it. over terms in continuing the And me. the for just Okay. Any Got of it, place around buyback, pausing then thoughts of it. all last banks kind are

can you quarter. the just is subsequent if wondering outlook You guys what March buyback repurchased to I'm what kind as for of the are active then and forward. in X first going any give the color to was

position, by saying to here you we who's relative impairment capital others, sitting the investment because portfolio of we our out with start look management that to if of like I'd us. thought Well, AOCI out stand conservative at our limited and

already gives of we're a flexibility capital that a environment think bit us continue we're already cautious more capital others. to I we're ratios that, those advance in CETX, said very -- Having that because we different expect to little So puts us We're in. bargaining, still we're the appreciation so position. than that

some I'm the various play I rest down little bit a year. recessionary not we're and quite I'm that how throughout period, we a the economy feel out in in things sure because are the seeing headed cautious sectors. into of slowing

have do So we're cautiously. because desire if But we do very the that, of proceed so, getting to to to we and the beneficial mixed if it's signals. But capacity going do it shareholders. to

So Vince, to to any know that, but. want don't add I you if color

would just the the we sheet. very risk talked think say, we've is the mean, about, balance I No, of XX% profile still given I target Yes. that appropriate

as move expect Vince we and kind gradually here. from as we of to said, that forward, build So, do,

thoughtful the environment, We have about We we be repurchasing. we'd capacity, obviously. with repurchasing to like and we'll comfortable be in repurchased, XX, get

having kind interest to of I just we of there's matter in So some as definitely think through when. that year. be deployed a the going of It's go

started of none repurchase confirm, quarter first disruption the the activity well before that? happened to just And market

different fortunately. will say, others I than again, position a we're in

it. have about do careful why not. we but responses. we mixed we So you're the be That's how very to Others And execute do do options. have options, getting those we'll capacity

all appreciate you, Thank Great. the color.

asset to other what I the add Scott add would thing The on was saying. is to to, just sensitivity,

like ago. minus, X close plus not numbers, they numbers, the have very are you If look it's may with to months or significant, neutral at XX or been

starting get do plus it's we you're but of position to slight a minus, try or benefit, there. that whether kind neutral and allow kind of So

with Perito next ahead. comes The question KBW. Michael go from Please

for my Thanks guys. morning, taking questions. Good

bigger a around most the credit -- of loan side, industry talked mean, of picture kind your question the You growth I have what is in response guess side. in the I here. to for what appetite the there that that, of here. just funding a growth guess surged. could guess kind lot guys mean I I one But obviously, scenario events, have about you think hit recent about guys has growth of -- it. incremental I CD loan I impact across terms

severely higher as the appetite current extent, the a there as if will could to where book over of the it new impact and kind a did funding, continue your loan a certain it that I XX But quite would is the at where not growth? increase imagine last to CDs cost beta days quarter. maybe sustains scenario like that of

think in. I given guidance the is we're that us pretty Well, markets for conservative our

So -- accretive and a and deposit if mix loans. that you where a look base scenario still we liquidity at have avenues our of lot drive liquidity our deposits, to it's to of position, our creates book the

-- again. think spot you're I don't industry, be going that's impacted others suggesting be. might we're on to I but think differentiates not I'm what us the like across So

very conservative the underwriting been cycle the that that Our credit base gives fact nature, the ability standards with us and through land our conservative has deposit to the positioned selectively. it has to company the continue

off, So there'll while demand may fall originate. out there to be players looking fewer

a to we've I into expanded number the it, think through, saw an to share went the that in last we may have relative competitors. markets we so cycle we of opportunity increase

in position if you're work in happy should a I us pull that told be And lending very that here, employees where to they business. particularly the I've back. they our have see we don't

ability sustain a So more conservative, to little credit while and is times we a be in real. is to philosophy good through activity the tend real, Gary's cycle it's our our about lending difficult, because

and take in supporting frothy there. times during ourselves within our narrow we band undue growing on and outgrow So try a don't times like this, to market clients during we And we're the risk. stay and

that's commercial banks, guidance. for kind achieving position our of but wouldn't utopia relative banker. across position, sound everyone look a different case I as say that you a the everyone to that's spectrum broad of in is did think I very the for

you? not finally Thanks. but these idea maybe front cart here, then in into And through as and maybe horse helpful. get a quarters better the think we guys couple of that the put stabilize get just or of relative we're to next strength, right, and what have That's you recession whether a going about hopefully

you guys mean, just strongly translate does could think positioned big reasons to kind step do think what part in there's FNB the you line are this dislocation? diversity, from geography, position historically the obviously term M&A mean, opportunities here. and how you you guys a go of of that longer of I -- franchise of has diversity of of this that for dislocation, mean been because I type the all achieving I I that is business, of one are

change. certainly think Well, I going the to is industry

right, too about as liquidity, worry on change I we're is portion have cycle, to move sure to the stay going we our think growth, through of move about landscape the margin going making others There worrying will going through not this pricing be more appropriately economic pretty we because of much managing on. risk, cycle. what's focused pressure as this funding we on ample

But tell job up. that don't I done though, our will are. of it. the do the on I also businesses think opportunities ground a know from done team of other they will you, job great that terrific we've I what there be a building end

Vince which wealth insurance. this if So performed success on management look and year prepared pretty our we've reflecting in at the had well mentioned you income, comments, good non-interest the and business,

to group generate of digital income annuity then We to which on organically, benefit And building have to continue the we'll on our we're largely an income, strategy. diversified very stay businesses earnings, granular company. drive been groups grown those within is the so a that capabilities going and our for that's focus focused to fee out fee

recognized, to There for the I selected. be we in think applied the we the were -- that the banks award was world large fairly were received eStore largest substantial. and

So different. is our strategy

seven have pretty continuing penetrate in. states which to continuing are be are customer base the that we in, We prospects on that in to focused the add and good to that we operate features very to that we states and the have

move as forward. So we that's focus I think the

we're I've strategy, we're going and over for it to talked But think about out. M&A going I shakes just pausing already before. we've what now, our to see wait

through I in strength. will think of a position this we come

we'll have opportunities. plenty of So

the that you No, appreciate color you. providing makes Thank sense. guys all today. Right. I

Russell The Please Stephens. next go question ahead. with comes Gunther from

just to I quick just wanted a guys. -- follow-up. morning, Good

the mentioned just You cash. liquidity steps excess taken in and the quarter

Just to level us bogey term? it's And that at cash changed your assets? of the intra-quarter just remind target all for of whether near even has

brought position uncertainty we took down of X.X say the our No, I or in in last fluidly would another that liquidity and where over I cash quite given years managing liquidity, environment or so given the just just we the been that $X mean, we've so. billion conservative nature.

right? in So that environment. thought smart and do the otherwise have everything thing $X serve billion taken, was we to So was this that to we do wouldn't

about we funding total $X two is is about years, our one-third when the six so it on, Xone look at billion, of inside put wholesale of we is And and one-third today what year one-third other months.

time that So we use to side. as lending fund far what of kind as kind ladder we're over organically of and of we the great kind together,

that $X a that use. we reference So that mean could I point is really billion

That's And helpful. a the Thank to NII you. guide. then just follow-up

slight increased? down through assumptions. you kind that? the target a to the be? put mentioned step higher Has beta deposit You beta Do Have think on a will quantified due what guys you cycle deposit of you that

beta so total say remind slide. I on the Yes. deposits had No, everybody, of end as year. guided to the was it we we We XX.X% have $XX the in the the remember, to our just at would that was And cumulative for far, the so close quarter. have million, our slide, to quarterly it target at that. was, XX.X% pretty end right, of

And at the the we year. ahead, I'll year and far XXs beta the year second for mean, call end total deposits total will of very as low away, for this while be I we're as So thoughts, mid-XXs far the end look of basis deposit thoughts the kind through projecting end feels quarter. of of current as kind the one them our cumulative of

That's great.

been for couple appetite portfolio Do two to Last into the the past the over appreciate ahead? opportunity I three derisking a that. derisk years. conservative me. for and in ways out see further one you have Vince. of as any Okay, Gary, you or you environment look guys

on any we at all portfolio looking the look are ahead. We're with Russell, at because the at As we're basis. economic pleased softer the position times at there not that as quite have today, some of the derisking book sector naturally, now, the loan-by-loan moment we portfolio. naturally, office to significant review extremely for cautious And time on we're and a continue we been

we'll normal the or a teed point. this move So But small of business, in of asset have potentially we or at up course segment them. nothing an X

for And Thanks, thank taking all my questions. guys. you

ahead. next Please comes The Janney. question go with from Brian Martin

kind about things. where just Vince Good you talk bit guess, quarter? the the been was of can morning, will, point, maybe I Just Calabrese, mean, my talked March a Say, most the the kind for just margin, but guys. starting has of questions of steps margin about on of you the answered, about liquidity? couple a next little you what's at if I

our Yes. The quarter. the X.XX% second kind entry March margin, Brian, into point of was

Got you.

and puts as Okay. look of And just you've kind kind from the of here, guess, with given? you I the takes guide into XQ,

that the ratio, with out additional Brian? kind excess obviously right? cash question that liquidity was That billion. liquidity to net position, what that affects was sorry, have, $X interest important we I'm grab too, income your thing, that's right, by So X guess of again, gets there. bit. comes affected the excess point down we the is I a second what The ratio little

margin, saying quarter, that just just starting about to the was I the kind X.XX% think of of No, kind next into is point. point Yes. stepping

your I being Or Just near or a the as quarter two? it mean, that, is that from relatively to a ties next benefit, the you bit about expectation guidance? I you percentage guess could is -- margin down, know here? just just in little rates flat I see but term with talked of

just build from of with move I net income. interest net as into lot noise fourth in the the into talk given the growth And income. quarter margin then interest to we mean fluctuates here. but asset kind is it's you margins and quarter. piece, the little harder earning to the about we comes the a and talk third fourth I bit and it Yes, third balance a sheet, down Brian, the mean just

Okay.

some bit? guess, keep to how far that are as I how -- plan And it liquidity, for long guess, that you just just Will you you the as thinking Vince, a plan? of what's mean, plan that exit? I excess about Or then? do just I do

kind of years. what third the then less of and saying one-third versus six two I year That's months is is was it or one

it, to just prepay not time. that we So we let get kind that we're of naturally just let going absorbed as -- lose

you. Got

Okay. missed that part. I

loan at or there And pipeline, just Vince on trending kind just as of right. you in Maybe said the they're how pipelines the I then they're as the far that what what commercial was side. quarter. missed here? where guys all So the

than think little I has a fallen that same unilaterally knocking that think little been kind as of the doors. across kind bit think the pipelines time. are I the we're board. aggressively of demand a off out And softer don't they've the Well, on I historically at

pipelines then I decent, will pretty tell look XX and you that XX-day beyond. -- days measure the short-term it our we

a days looks There's more less more XX in pipeline looks percentage junket little a little solid. are The focused. I which a of there's through fundings think Beyond that people a softer. little coming means XX-day higher pipeline,

look markets. I as So a it's of bag mixed the all across

markets Some in down. are Carolina of the

and better have Cleveland long-term probably looks are Some Charlotte their pipeline. doing is good short looks pipelines, Carolina term, okay. building Pittsburgh pretty South good.

a board, over there the of me the customer tells caution out there's all in base. lot of kind which it's So

doing, it's probably spend at in and effort from cycle, is client not So more right? to thing, think which customers a it's lack is less calling good for about the there's of a due little CapEx more on our existing in the this stage not portfolio. the us, the demand side, So caution I it's a what

are What all rates we're also asked is that utilization is seeing No question one offered flat. up.

customers C&I move leading into been But to building a assets been as to. we like not lot you you inventory, a cash of basically, period. book if think inventories, the have they've short-term chime as at actually Gary, look think can economic their in we our and I moving slower I

see to starting balances. we're in So reductions line

industry, are a paying occurred disruption higher down than the because a companies, of interest they number gave they're much a it the And I paid about receiving. they debt, basically that think banking cash in where after and revolver and heightened awareness rate them took

in hard it's forecast of to I last there. guide, on to lot of it's going but a line the expect year, bit going would with little Go over and ahead. a to a the out be few So to that's our months, get but end the us be through

that pretty They've will seeing chain they across built agree with up inventory some customer's position moved issues. We're managing the Naturally, board. the would supply during of much I inventory some downward. through down the economic to on their there. expect and that And go and continue with very caution slow forward. move down would ahead potentially focused an on to standpoint, are They from positions. that inventory I

yields, at you don't Thank if front? know today those origination kind just where on the -- for new Gary on Perfect. color. are I just loan the just or of And whomever, the but

think… I

go got you I ahead. Vince, No, ahead. Go the Go ahead, specific I numbers. generalities. mean, have

and I you add. want to any color a high-level then here can comment make

the at but in $XXX fourth and million during made was comparison, that's Just on for quarter, total came new the million, that quarter loans. first loans $XXX

you. Got

Okay. earlier I the criticized you Did as criticized think do modestly far year-over-year? Or Perfect. on I maybe, was what just wrong mentioned quarter? up just level. And did? that, you down in have you say call, the as assets that the Gary, that said

quarter-over-quarter, Brian, basis basis sheet. XX a down XX with basis billion with up a $X on points balance points It was year-over-year a larger

So they're still at standpoint today. from near levels a record low criticized

lot you've a all get, there? increase, that is point of was anything on increase? anything given just the just Or would in added things credit? there Okay. the you've And drove you specific disclosure the kind to, of Just it things

not Yes, kind just was It really. of general.

you. Got Okay.

the Bill, And was for just the on markets revenue. capital me last Okay. one

talked bit lower. being a syndications little and think you about I

-- guess, a the that, you be in thoughts it on expectation year? should you that of throughout how trend see but little any volatility higher go that would Just just I bit as

Yes.

I leading, with quarter, as of think in our a into mean, all I factors to of syndications, M&A going category. structural of on the activity. on how this everything look side shakes performed depend it's depends you on There's move a consistent obviously, let right? think driving needs, at that leading bunch how forward. we're that I CapEx we out It's if on that if performance, it's pretty So baseline kind we robust. less go

and the a program, through as fixed cycle expect of we rate old that in them will you come re-upping quarters side. to number see the derivatives do next companies would the would move have yield I the falling up I fairly syndication the we that burn also I would area then benefit particularly see inversion curve. through because things with a And some over few to expect expect significant effort

can there's those sustain numbers. that So grow we hope I mean or

in reflected that's our guide. think I

the So I seasonally is lower. they first thought did pretty which well in typically quarter, actually

we're net well So From a producing we're doing good. new I extraordinarily perspective, asset think wealth value.

in net particular, the asset Southeast, Mid-Atlantic. So growing clients to in in value the

last expect would and few continue staffing better because beat there have that to I up penetration. So years, the we over down

run. that expecting to the I'm little organic That a should help better than growth. long So of us the terms previous years do in in

sale spread the bit And of new markets, many diversification we share there's vast pretty across gain then in mortgage, a because with of of quite again, originators, with a we're we're many headed geography uncertainty we're and have are. But where rates great relative markets. lower perspective about a people, where from to on great

be So we to that. should sustain able

our about guide. feel pretty good we So

all. Understood. that's No, Yes.

on book. helpful. CRE book Okay, well thank the very It's questions for taking thanks office for disclosures all you and and the the added the

I think questions. that concludes the

thoughtful I'd job for Very out street. through to the I to our quite were out. recommend team questions. the want thank an hopefully detailed you that we I excellent getting a did able we've to your bit, Thank answer. put the put participating. so reading So and thought disclosures We've out information for everybody

for because to as and a you like And team got here. it do thank a going us. basis. we're we shareholders to here I'd and I well the relative we've know our great through on -- move employees with this are thank we standing

So thank care. you see Take you for We'll participating. again.

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

may disconnect. You now