F.N.B. (FNB) 19 Jan 242023 Q4 Earnings call transcript

Good morning, everyone, and welcome to the F.N.B. Corporation Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Lisa Hajdu, Manager of Investor Relations. Ma'am? Please go ahead.

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

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

financial our me record With earnings has a growth. to banking compounded Gary Calabrese, approaching and the Joining income internal was strategic common consistent result have Officer resilience placed value and profitability, in the upper importance of to steadily book Chief on of a performance year-over-year Since with in underwriting XX% a diluted available reinforced been disruption including this common of capital attributes available upon and book was $XX income quality quarter in first the million on common strong sheet teams. quarter shareholders multiple positive of foundation per F.N.B last generation, basis. are leverage strong XX% share milestone. strong record record share, Full F.N.B's been delivery spotlight expected our long-term year by is reported cycles been capital These shareholders our increased has value our remain ingrained of of through the initiatives. The tangible Officer. operating to revenue XXXX, balance which per record and $XXX are the was execution direct and basis. on of share totaled $XXX quartile dividends XXXX's which per full million the year a to F.N.B's the annual representing of performance the $X.XX. Tangible operates. and our comprehensive integrated $XX customer has Guerrieri, deposit $X.XX today peer-relative F.N.B's XXXX decade position It exceptional X.X% base, always year F.N.B's an million billion, high a fees. in relationships and and net value also highlighted operating on strategy, liquidity fourth of Vince and proven Chief basis over $X.X prudent Financial operating to Credit net a

XX.X%. commitment The to maintain which a ended stable Our customer year total for to base with deposits. deposits, competition to ended year, evidenced year the at unchanged is the billion, mix deposit the from elevated even noninterest-bearing total in prior the deposit deposits our $XX.X

in migration of our and customer we funds. overall cost away seen from have deposits, to substantially cost outperform we and the While peers noninterest-bearing continue deposit total our industry

than the points costs in over basis year X% our and quarter. XX below ended third deposit spot was better the Our peers

provide sheet balance better-than-peer liquidity optionality. funding strong and costs Our

our aligned history optimally X.X% that equity to committed best the the with medians. is the F.N.B Our level exceeds and for tangible capital in interest common of with and company highest position success. peer to fully in a tangible F.N.B. shareholders' assets deploy manner remains future

the loans of announced million to transferred of available stock single indirect of sale actions million of recently and sale earnings first for $XXX approximately part in the held redemption returns low resulted the that $XXX neutral to preferred F.N.B. in expected that a commitment, with for $XXX capital As in and accretion sale with quarter. Together, digits. transaction forward auto of EPS the these close securities expected improves completed of million sale the

and to in continued critical further to continued deepen to June apply ability our products is simultaneous. market deposit customers loan XXXX, products we're majority F.N.B. consumer meet application we of allowing share relationships, team up clients' in performance. our recently delivery make willing introduced strategic our our to In the the to December, competitors. introduced eStore has common gain customer in needs consumer Our XX our outpace and to and deposit investments products

customers with the to eStore. XXXX business fold small loans, features customer These experience apply penetration bring simultaneously eliminating fund. into the can payments goal to deposit common multiple manner, very the a providing deepen the and product a documents in further in strokes, for products additional portal Our supporting key and loan as and and deposits is account included businesses upload automating for in application enhance streamlined

our enhancements significant in in XXXX. made delivery channel also physical We

ATM than F.N.B. with the into Area our for we ATM banking With metro States. heavy in to as United partnership In station, in largest XXXX. Metropolitan will footprint that the a Washington the system de expanding partnership XXX third F.N.B every the establishes sole provider X with locations, machines addition entered novo the add network to services Transit more in rail

access our customers our X,XXX Bearing digital across with physical interactive significant F.N.B. combined awareness current delivery augmenting our is foot. while branches, advanced approaching has ATM brand and television. for Our channel Easter, and future

the of exceptional record ended billion, billion a total With $X.X bankers, the leases eStore our our and an year-end increase of success loans $XX.X year at and since XXXX.

monitor will trends manage of our strong as market-specific part proactively continue a risk from to core and year philosophy. credit or the beginning closely to environment, are the macroeconomic We position

management economic steadfast turn to our credit Gary to performance. approach fourth remain to balanced, Gary? on portfolio the risk now maintain over additional consistent quarter's We and underwriting in call the will to will throughout provide a information well-positioned sites. I

risk XX X from September quality up X X at metrics end I'll with points remarks management and prior remaining bps. Criticized XX at stood basis the expense everyone. and asset at good a at basis down Thank the an basis and our net both loans and year-end year good point morning, from basis were for growth and finished conclude basis ago my quarter decreased charge-offs you, delinquency end points from points, million, down very loan and $XX.X for seasonally quarter year-end portfolio. Total with quarter prior X update strategies XX Vince. the Total And and period ended solid charge-offs. our providing level CRE on quarter year-end points, respectively. from quarter credit of the provision prior the basis with at levels. the XX XX to compared the year We at bps points X for period. to and the full NPLs OREO year period and the

Additionally, provision had a expense benefit and loans from positive NPLs. reduction a in criticized

or $X.X and consistent reserve in-depth of test. loan $XXX position stands to funded loan NPL including discounts, acquired and cycles. and addition solid our at million risk in discounts. XXX% inclusive Each million well-positioned maintain stress a of ending reviews portfolio throughout strong credit reflecting balanced in increased reserve to the loans performed quarter, management remained economic We stands underwriting coverage strong specific remain ongoing full committed we our at portfolio a of unamortized unamortized X.XX% our portfolios our at our the quarter Our X.XX% relative to peers. When position to

this shown to forecasted confirming provision results, scenarios. diversified stable charge-offs economic to Our the downturn stress enables us loan quarter's testing lower that have prior results net for again and quarter our various portfolio compared withstand

metrics to very In in delinquency addressing In XX were CRE CRE ended are successful the and levels basis nonowner-occupied strategy, nonowner-occupied we rate continued at respectively, remain in proactively we the XXXX, positioned strong points rising into with low the monitoring of confirms asset maturities year-end, the continue and and and our XXXX, the NPLs portfolio. portfolio portfolio, the rate year at the closing, on environment and maturities. At going will XXXX. upcoming Regarding we sponsorship. consistent impact the very good and well for which addressing same underwriting environment XX quality

manage the markets competitive markets in for our a of turn the our Financial over a Calabrese, We continue now I diversified consistent to high-quality our to environment Vince maintaining aggressively growth continue and will borrowers while call Chief across in portfolios. footprint underwriting we'll remarks. closely all and loan maintaining profile while trends individual to consistent generate our macroeconomic standards. We credit monitor Officer, in his attractive risk for

proceeds Part actions announced as XXXX. available-for-sale earnings a issued $X.XX, our incremental basis further XX% securities held into yielding Gary. yields book $XXX investment realized operating million of retaining than changes $XX.X years as loss sale for additional approximately actions to that focus tangible XXXX. results. sale we of auto the Late Thanks, will December on convexity interest balance guidance The the taken quarter average, good our the with from redemption securities auto morning. the stock the sheet higher million similar XX sheet in value stock X years of an totaled recent value with optimize several expense while I and points the during preferred these in XXXX. management a million $XX.X transferred securities, future in significant similar the $X.XX expected totaled resulted indirect earn-back And and XX, buyback, financial a generate Today T year balance sold indirect quarter less $XXX repay investment fair million quarter impact sale The the million $XXX time and reinvested common to to ago. The million loans for the detail capital to available XXX is to have Fourth and of earn-back per XXX per enhance of loans origination. the quarter's sheet noninterest for positioning. profiles. We at fourth for basis, we value impacting $XXX income duration of a excluding December securities classified first of recorded rates on yield on $XXX in sale balance has fourth Provide sold profitability net on earnings shareholders and year ongoing a of items flexibility with of of to X million share, strategy, proceeds of quarter, to to the record or a of increase Tangible earnings. On loans. these share. fourth and Series borrowings actions cumulative was approximately a other book proactive period versus full in we reflecting of mark $X.XX from operating offer totaled negative used took capital loans being sold held close

by points. Our ratio XXX approximately basis year-end benefited loan-to-deposit

and commercial securities There with quarterly fairly year is XX million Fourth high-quality available at $XXX linked since of with of X% restructuring. $XX portfolio inclusive at production quarter split loans Investment $XXX X.X was consumer portfolio the held-for-sale $XXX loan million HTM flat even loan remains growth growth our the billion, at million of securities XXXX. the portfolio between of quarter. Total increase the of period-end to loans, growth $X.X December reflected slight year-end for the a XX% loan quarter. sale essentially underlying deposits and loan of diverse years billion year. duration of ended The Excluding million. across indirect AFS end at auto quarter in footprint our last $XX.X similar linked remained

XX, XX.X% compared deposits deposits to September December of XX. comprised noninterest-bearing of total XX.X% As at

expectations securities. a income is our higher from decline last lower of deposits Given prior to assets last on outperform interest Total yield peers mix. With on remains our The ], the totaled yields with a earning believe to X.XX% year points deposit quarter. million quarter. XX.X%, discussed the on as cost to points, continue quarter's costs, to in the due deposits managing total team we focused our increased loans our X base, cumulative Fourth our cost deposit $XXX XX which outperformed and our net basis line X.XX% actively and noninterest-bearing discussed only with mix points basis points we favorable better investment stable interest to basis both increased spot industry quarter. decrease million, interest-bearing ending of which XX beta $X.X deposits of expectations slight to meaningfully the XX with margin X.XX%. increased costs X.XX% of totaled basis Net was XXX as will of deposit deposit deposit the [ granular than funds at

of the for declined on income loss mortgage Turning income of $X.X quarter million from expense. performance on improved to noninterest $XX.X adjusting fluctuations Mortgage Other based $XX.X rates noninterest fourth in securities underlying noninterest company by portfolio gain investment Operating small banking income and decline totaled companies. income and reflecting came investment million operations the in restructuring. and funds increased on realized the quarter. margins aided the million $X.X sale due million the decreased the normal to linked business

Additionally, $XX.X was income failures. various of prior quarter which we fund service the compared was to line $XXX.X income broke line the revenue transaction the expense, foods, service for out direct item our mark charges service adjusting the million noninterest the and assessment million relatively deposit and into on sale stable $XX.X special line. transparency statement million auto the a value the streams the previously create to income. charge for for fair replenishment card loans of held when bank FDIC in charge for Operating our related insurance interchange This in will noninterest captured into on new in fee better and

Efficiency to levels recent XX.X% year streams. We effectively million some our of quarter Pennsylvania quarter marketing $X.X The contributions due fourth in that growing defined our third-party charitable top of $X.X our expenses million, the linked marketing year campaigns full services reflecting basis XX.X% of the decreased in peers. on continues in and shares shares tax higher in demonstrates the our revenue a diverse franchise increase third the qualifies the of be to timing while ratios, The digital with strongest $X.X ratio history. efficiency taxes quarter. costs. ratio million reflects commitment Bank of costs capital credits of outside and the bank to ended managing quartile

on the impact stated of which ratio XX.X%, our balance impact includes special items the remains previously above to by when of of totaled did equity Tangible and share as that in discussed sheet the management target. FDIC CETX the in value loss assessment interest Our of operating for of common available X.X% investment per the September will Tangible basis reduced TCE the common impact excluding December from were increase securities. Because sold not December available-for-sale per $X.XX market share in $X.XX value year-end already share of an is was incrementally $X.XX realized value the book AOCI, book reflected value value the last X.X%. of AOCI the tangible book point impact primarily rates tangible XX, equal to quarter, compared $X.XX XX. XX AOCI. per due at common were the since sale, or securities fair

between the On market for loans as look a the at between Let's are now geographic is interest both year-over-year single billion we guidance billion footprint. continue and with spot to starting basis, first deposit a we year, across the with XXXX spot be our of full increase sheet. $XXX the Total and low to projected digits first year on grow $X.XXX year income the basis. Full our diverse balance quarter full balances share $X.XXX quarter million expected digits and net expect XXXX $XXX expected to grow to million. mid-single

which we from to the to rate July November XXXX. still the build-out office assumes million our to noninterest [indiscernible] from expense Noninterest year fee-based million expected million, expense includes X.X% with phase our between guidance between impact a $XXX of , to for and full XXXX expense quarter XXX results of of impact, strategy $XXX are income space. Adjusting income year midpoint our with we which operating the for the continue during occur in be cuts May, million. Full levels. $X occupy expense while guidance new million between increase in million our is this rent headquarters, and million current first point the expected $XXX $XX approximately and is of results benefit $XXX $XX and projecting guidance aligning the basis diversified Our to

loan $XXX expected noninterest long-term as activity. dependent compensation the growth largely be the The seasonal between and compensation on the year first due expense at quarter higher provision and $XXX is is first expense is million, to net quarter to higher million the start stock million is year. in charge-off normal guidance million to and taxes $XXX Full $XX and payroll new of

assume effective that Lastly, credit the between tax be investment which I tax to will does Vince. turn call rate XX% full and XX%, not back With any the year occur. that, may activity should

F.N.B. channel priorities completed deposit for strategic our operations. with investing loans align enable a in systems our expanding consumer eStore XXXX, including During physical that and common introducing processes streamline that initiatives applications and number products to the of delivery and us

relative initiatives We continue company in analytics disruption performance. These with improve contributed use the to peer strategic of to expand have capability amidst our our data banking the to and AI XXXX the outperformance directly balances $X.XX noninterest-bearing strong deposits Deposit cost of with generating a flat products. top billion. of record quartile EPS to of and organic and deposits XX% loan remained total of growth $X.X operating comprising XX% industry

in top completed peers the leading savings operating average record at to ratio have value return to over last tangible excluding grew book $X.XX. totaled leverage XX.X%. Operating and quartile positive $XX over equity XX% We a an XX%, cost synergies, years, the efficiency intangible common acquisition X million to on the relative in

innovative we've than F.N.B's received independent awards. rewarding result a our continues as were performance as direct more ended Thank are performance, This Our F.N.B's near proud performance workplace to stakeholders. mission what efforts of culture financial and built Their drive international. We we eStore was Multiple levels. am evident commitment our team's made these year's organizations In honors all XX XXXX, of asset quality a I technology to year earnings or environment. our F.N.B. and at for and believe prestigious possible of by be and recognized our you. our historically engaging success low together. exceptional strength with the values employees. outstanding that

from comes today Daniel Tamayo question first Raymond our And James. Instructions] [Operator from

appreciate -- we basis impact on thinking that just impact about kind about But the it restructuring, continued for a impact in the balance the on the on throughout curious of walk just can how looking you X path the first in XXXX. through or how think start the relative deposit the your the guidance the year we I at impact as you're quarter, restructuring or the of if the to margin. margin of Maybe then and moves X point assumptions? pressure of as

say of things. I a Yes, would couple

quarter fourth as for NIM X look linked was forward, basis $X.X same the go all, net of quarter, the only interest we million if declined XX. at the The income only quarter. was quarter, prior which Last points. First the was quarter to compression

we're In fact, November [indiscernible]. December, at and

kind the we there, The for least months. those is guidance of at X that into baked stabilized So level restructuring our fully provided.

As margin far the with bottomed as what happen there a as half when X have half second with improvement to cuts say have And then Fed X benefit into baked And would get somewhere of here, after The of to of continue we slight actively the deposits, I the the as probably as here. into us. still focus first said in go the time, past last Fed guidance But the felt reasonable and quarter far over restructuring. most ours, demand the our year the we year. you the X with right, from in lot X, cut. we we'll or to some that there's going what's to X. there's That's we're

deposits very bucket well stacked very I has well. of have changes kind also think up our of that the relative to percentage and peers the performed in total

it, kind has into of NII guide baked the everything Dan. So

get do on of like No, saying that. quarter you maybe quarter still -- think pressure first the more deposit basis. you're mean, the overall I the I asking, in and we first another sounds understand in way the I an it compression maybe guess offsets I appreciate

the that first offsets just more that sheet in think in quarter? than the you offset first and half balance continues the So restructuring

are continued specifically not shift mix feeling after top, quarter, has The the is of cut. see okay, margins going we're products comment when baked on start at here just People to they are happened net natural. like, to in. that the right? and interest since going we've rate during Fed average for higher all quarter, Well, to customers income as the The July rate going sitting that the to

been some definitely mix shift still occurring. that there's of So

In seasonally weakest that's municipal then bottom deposits build and our first quarter, of the our usually demand kind up. deposit, quarter because to of

some margin probably comment impacts that the one the of and to pressure that. on helps on all does in some way restructuring put those quarter, the could offset So of that first then I

it. Got

on sensitivity Okay. side. balance guess just digging the lastly, I just sheet

we mentioned in how curious you bottoming year. should be about of the Just the thinking middle

liability sensitive term I near that's impact cuts? it, how we've be still thinking think medium talked about but start you in after some few cuts. That on? the to asset a term we then maybe being perhaps in should from past, And when with the more about quarters, the early rate in rate sensitive negative maybe maybe benefit

Yes.

additional X it. question. think there sensitivity, to take And So of the environment. there's you the whether parts depending the beyond that's definitely about economic a we this know, right way cuts are as moving may The get lot on we to actions

more know, catch would term actions. growing seems on longer deposit lot and XX-month area. medium medium you a deposit impact the in that the But and X- XX%. you today, has historically, term cut catch taken we've you maxed been we're the out XX%. as time. I to kind have you then In benefit. probably we our In reasonable at but to a last the time additional term around short mean CD It cluster if up right, beta kind over that from take will the have And in shorter upgrade term, up at cycle, particularly I as lags frame look key, think the I the negative and mean, of that. catch back lags an So the described book of and is assume right? of type to the run, the rate

portfolio of average right months. maturity now Our CD is total XX the

neutral but slightly as and the would path opportunity you of the we for we're with really that and baked of then forward. more yes, there look our -- in. I we think with to have X there's to reprice neutral the go that's at if asset kind move Think still year, margin it -- that that expected cuts Fed timing managing of sensitive we So think the when philosophically

Okay. it. Great. Appreciate

Our next Schiraldi comes from from Sandler. Frank question Piper

if wondering XXX% loan guide as deposit the talk about growth you you And growth getting dynamics to you little bit Just to deposit loan over versus closer your time. could of here. a obviously

Just trying to might and competitive the to think bringing loan the you're door. what dollars how be here be growth In a environment. through on what deposit continues in pretty governor main

Yes.

I to start think out Calabrese. let and Vince me then I over can turn it

I First appliance for that account I talked way deposit strokes. additional of a for That's all, us. to prepared think loan without the to the application key to huge deposit some relative ability adding a simultaneously the in we a with open about things of comments is balances. mean acquiring us drive

that particularly utilizing of client these So capturing will engaging probability they it online help starts deposit and I can field more customers will of tools and the our think start relationship, the once the increase that, do that side. realize

able we'll act opening in, So a little accounts. the when comes the request loan on be quickly deposit to more

think that's So for thing will we we forward. help move planned as that one us and we

with If about midyear. -- rolled you that we looked look engagement eStore, out we've at at the

capability we X of the in customers. When opening doubled non-F.N.B 'XX obtain the XX% months X you applications of with same number number those clients online, able XX% versus deposit That's you that the of doubled if the applications 'XX look the to So by we way. loan compare they were And of the months in -- -- consumer those at account the applications. in were period. without

enhancement So strategy. of that's the digital of one it. piece The

The capabilities. invested heavily the We've market on side. second opportunity really our small middle us treasury in management banking and for pretty is TM business in

That grow range we've XX% online. that latter to we're rolling if us around deposit X% done small also mentioned balances. we've the -- And space We organically. deposit to towards the at we'll the you business probably out. historically, will bundle going coming be have balances some what in that help product historically XX% We half of grown look products year, capabilities 'XX, in the

new is So we've we've and I pace the that opportunities more of with think think I a loan able of objective, for strategically things formation. we've growth of done know, with to some our similar customers. organic I markets want which numeric? population over that which that deposit is to We're growth kept fund and And period balances long add to business Vince, because to be new you right, the do going keep have continue time. to into don't growth anything our entering the loan achieved, that

X% is in that for ratio. we XX% XX%, selling Yes. would within when gave But we forecast back kind years, as No, as this past, XXX% deposit loan shelf in a action done that a the way We're XX%, historically, auto of guidance. all mean, that add, we we've of the get bunch don't going space got it all out. us kind to our XX%, took us. I the I area Frank, to you of quarter the indirect loans in more creates

manage. the and way into We manage. We'll all we environment? we what at won't We get the mid-XXs to How just the the in what's level. So I growing we'll that as loans guidance, to are XX%. go will manage look kind XXX%. things to of start what's We're action mentioned, as baked always fast have,

fund up bring it or there, CDs For to could question rates, we as function be prices would We us, to margin a doing over, we're price our we and just out can We up. balance compete whether balance deposit our do lot of So right? to that. everybody growth with or a our all it's else right. sheet very to it. it, of And can in confident out -- trying have not not capability money We the it's money it growth. market with want to a not we a

$X.X half of manage new that the of back we mean, it's in trying year, so money. billion relative -- a function in profitability. we brought We maintain I to it all

to outperform. is goal Our

potentially could sheet. balloon -- away is to everything margin. give what trying constraints we're understand we're be. our So And for We funding the trade-off balance not our

it how loan it. we originations it. So other we to justify on to be the with the have look That's at side getting

just opportunities to No. Vince, optimization, some with way you just whatever smaller not -- of is? said, in near in Sure. as thinking Understood. ratio pieces balance That's assumes the this always just Obviously, a returns is the to one see a you like loan-to-deposit I Or the room where for if this wonder hold And guess in that, if color. total maybe about the mentioned or making see done the but that, a being that do then -- you're follow-up near sale Jed it is more great of the more there, to the the sheet term there. Is you that loans. term? small do and continue term some reason, it near here

of to of wanted amount Yes. We we time the far as quarter, the during do lot we spent a what the securities and the as that amount fourth of sizing felt. loans

do sales we plans So have sitting don't we're any as additional today. here any to

we've have fund like we refine Vince said, think and the grow to it forever. done deposits ability we I the

spent were it look the balance one right, at I at what studying this forever, So with up we lot plans Like because done it, there's we're on. there sheet. we no point, right And sizing of if and executed but now. say said, opportunities, we'll I came always wouldn't time and a

we get gain, over $X roll that else. billion can enables and us assets, done over sold and the a Sure. historically. We've loan-yielding the that environment rate unload into We've to If years. something we

Frank. constantly selectively, And at So we'll the balance sheet. we look look

historically. take loan-to-deposit is consideration interest risk at we'll mechanisms We look looking out, demand produce that. categories. of at manage We relationship, balance we'll in We're of it plan right? I objective we'll looks used that the get of on not into what But Our to indirect environment move we'll sheet and the look like highest that have it a the profile the is, in with of all What pare right? mean, the It's from our move and portfolio out make what perspective that. the to to back, trade see. limited returns possible. rate particularly the right? range based higher-yielding around, a we'll of auto, like. is looks And to or function decisions opportunities we outside all to pricing that And

-- would loan want that I single we we've as business, the as pricing too, don't done bit like saleable go I we that mortgage make a digits say, more there in adjusted to we've And constrained Frank. Yes. our like not -- would describing. We're after. mid-high that can little feel far mean Vince do products. things we then growth is to we've just -- done

that's growth of balance amount which balance the reducing of manage on to of we kind sheet, of kind going the we're the part is how So sheet.

a So there different there. is of lot levers

Great.

next Wells from comes from question Fargo. Timur Our Braziler

next in a going quartile had year? to the more leverage going to backdrop operating comment Or on that you likely leverage happen operating positive Maybe operating in that's top Delie, Vince forward. for starting 'XX? Does revenue the made enough 'XX not positive leverage in be or look is the put challenging table

Yes.

fixed. obviously, cycle, think I challenging, much it because declining through we base pretty interest as rate expense move and becomes revenue seeing you're more your is right, this

to expense hard So it's out, we've but do. taken

think the would second I of half operating us I certainly positive expect year, produce leverage. the go to

spoke to point rate experience through through earlier, that the compression with year, second cuts, Vince So move and the we as positive into margin that the should be right, leverage. operating half of inflection we move the about able that

negative others, you operating at on was all least basis over on the year right, year saw. at There If we operating look a based produced full full in we because I F.N.B. XXXX, leverage outperformed leverage. what place,

expect would I we a similar to to in in think do be I 'XX. us can position everything So

helpful. And Gary. one that's then Yes, for

your the those as today you again, how maturities at how 'XX, is is maturing a CRE different the XX% is quality it portfolio, given XXXX maturation earlier, world loans versus book Just and from looks just vintages that credit that the then of just are much of how or pre-pandemic. standpoint look wondering XXXX at in office of and and I'm like earlier kind looking loans vintage looking at different

origination Generally date from low XXs we're Yes. high to those speaking, things in going to the the underwrite range.

look through so short. at to very They're you has level, far. when very LTV also that maturities this been helpful So underwritten those addition in cycle which

or X in some inside of cases. slightly less with So maturities years

year those few, to So That is a space we transactions everyone been the of only from office those that renewed we point. the that feel when a standpoint. loss all a of keep only with said, we've as number times. a deal rightsized last or many has of we'll tough continue we space of last transactions. good been the do had of to our it It issues credits maturities years those of to these go focused very on has number and seen. And intent borrowers over this we've since couple as have taken over of short those that during feel We've quite as all a that pandemic had the from we've had portfolio this couple credits about at are

about sponsors, reserves in post is year position of with back to rightsize it the a which service coverage. that bring There type XX% So of we rate good debt the expect coming pay to the we ability the it. to and additional to a move our and to feel XXX roll down shown debt through have

So 'XX. we'll did thing that the in 'XX to we continue in do same

I'll said. add on what to Gary

with we underwritten debt would a and intact. from that the a than transactions underwriting out had that have the a date. have that rates of while XXXX term change mentioned, the valuation cap LTV that think means Gary lower may is change coverage go maturity service perspective, I lease and that longer would shorter most a leases What in the prudent remains maturity may long-term longer that having

the locked cap lot a substantial you long-term tenant to easier because with devaluation a of liquidity up. rate a have deal rising So and it's if

that's would office portfolio in transactions, would at most I the gives So outside great you portfolio, that scenario. urban the we every which sits I think what majority tell confidence. underwrite when of of these the vast almost we look can the also of of case, us degree a

of the a have in office in see subject suburban vacancy that So think large protection not we bit like as that cities. quite to I in you is higher-growth areas

loan the less of $X size add size. is portfolio other in million the The of XX% terms the annulars, of than to

up $XX million. move million, $X to You million $XX another to that it's

you're the is it's more and you of almost than level average $XX less XX to million XX%. think book just It's a pushing and one top million, portfolio XX% at at credits $XX million. right less I business. of $XX up $XX the the touch million, above you're of XX% right And So move than that in now, total,

is granular. portfolio the very So

that we in That granular been across hold And It's definitely we've difficult diverse, a X obviously, across shown really or we office. city too. other states, it's a one weakness concentrated geographically one think in prudent grew, something in taking there's space. area. It's very in It's positions performance it's I specific -- what's been urban the -- time. right watch. the

that it's Does question. good So a help?

next from Our comes question from Haire Jefferies. Casey

follow NII to want I on guide. up the

So going like Vince, deposit to human around sounds at peaks if deposit it beta -- around is peak beta XX%.

way beta guide when Just down for deposit first assume place cut? to for does then wondering the And relative your on Fed your 'XX? that is what take

here, We'll then -- consistent year. would slide. been drift bottoming the at mentioned or twice the on little I second now bit just in a update, think And is a first what margin for another And of the upside. Yes. XX% little ended half we're the quarter of then I happens it's that of year would the we when point we the with higher X it what we kind I says the thinking. were higher XX.X%, thinking in say

medium more we XX% the reduce point portion 'XX. right, sense Fed wouldn't as some to depending Fed rate of using XX% the starts makes and term, on you than off the the timing over us. But half a it, get 'XX, calendar we look of of within get the right, think to in pivots when but I and to get similar cuts, that probably

we been, and our meetings, be as be started our pricing in managing book about, deposit when okay, So lower we we will talk committee already rates. to have to the weekly actively on pricing

have. of Some our competitors

this the monitor it closely might constantly year. get somewhere So that time. half we'll it we're right going at discuss action XX%, take But so and the to very or that right of in

switching sounds like Understood. to Understood. if year. just what you contemplates. And just rate Gary, wondering go your interpreting expect I'm to decline of guide this provision kind then remarks to loss credit. correctly, charge-offs I'm it net your

to charge-off million, but into do baked compare as terms we've naturally, that to got the your I $XXX be priority. I guide loan to mean, provision level of every Yes. disclose would as mean, number thoughts. slightly we our performance in that don't at plans. supports mean million I expect the specific I that's growth stable a with we the $XX improve well charge-offs,

third But X event our you of 'XX if one-time I has see net you we to go can Casey, loans, to think, have in Page that presentation, average occurs. the charge-offs quarter that

I So we're. mean

That enough. was right. fair Yes,

seeing you're What in your charge-off.

Yes.

-- have have If 'XX basis that you X one over basis X been been basis points would X years and excluding X last item. Casey, the look points points years, would last XX

over like going there a of quite performance steady the XXXX. pretty it period. portfolio. solid, we felt tumultuous really We about the like I And got Naturally, you've into So said, very position that mean we're this and sizable, and going extended good all we has is concerned and performance all that as the out of a play economy stable what bit But about and good, steady all up we're know. where portfolio. to will somewhat

last Vince just one highest And your mentioned Great. me. for Delie, the you is level. at Okay. TC

about your XX%. current I in above buyback think, with share levels? you are history CETX capital in thinking the ratios what's guys appetite the your How at

earnback we're it trying I plan to If see do evaluating certainly along. because going still We have book to opportunities well. shares we the move Board. shares that levels repurchase We mean we to to buy as manage on right? if as we is reasonable, the value have, authorization we're back, from tangible

opportunistically what transactions potential But make growth meaningful and look continue execute we make we're build deployment we're well really, economy it are want capital capital to still words, forward, as to and as table not. in just or see think we to we if answers the here on of don't deploy that we're going and do question sense. The at have and to to move they changes I on. we're going still -- for evaluate So sit to because if we loan if the to other way. at returns in sure as we and consider that continue I looking know slowness, it the the most it move going In and to your not the capital

Our next Perito question KPW. from comes from Michael

the I piece. really credit wanted last one on on Gary for question. to I have just hit

book discover lines earnings their consumer some had autos credit, the yesterday, of Just reported side prime and that and of on uptick things nature. and

perspective, you on and mortgage portfolios the from outside are this health guys credit seeing side those the I think, year. book, shrunk Just of consumer what most a curious

that some is growth macro the color key performance competitive things of type around of just -- And some it kind of topics, the side? Is love growth drive on are what would baked be consumer a what XXXX? could the into Is those health Just maybe pricing, dynamics? all some better environment? that Just great. it would

which XX $XX portfolio, points. is all-inclusive Yes, total delinquency at across that basis about billion right is

whatnot. over year So XX look frame, time basis rolling that's the if all it's the in you the The always at holidays XX of quarter, consumer. But points end from to [indiscernible]. a months the seasonally bit and been up with it's little fourth

good So we've that consistent across we portfolio. seen I very feel about. very that performance underwriting The there, do

I you stable. there, portfolios. those made business. that investment teams We're able and through important look we've And good very growth it's our think part the very it's generate loan at prudent to and the when an of

we we this that that portfolio the expect high through continue higher environment that range and solid good in perform growth in mid the this cycle look we. So to well slightly as environment expect to forward, to to continue single-digit range in there in

helpful. That's

that growth you as into mid-single-digit for stand So the 'XX. baked today. expectation the like growth consumer sounds there's guidance, in That's it some

again, the across in made we've investments Yes consumers footprint. more, some still in think including you the stripped growth I and mortgage. that of [indiscernible] digital fact if tool spread out the the But million we're our expecting XX we're

consumers channel accessibility build-out the with brand. and ATM of Some provides that our cash with delivery of the heightens

would to economically all a little think gives even of of say challenged. changes a and the going the that I confidence, though little be on some that are bit going us consumer are I of with inflation

year a I in last that But that should pretty book, good to robustly things tough opportunities have the that's in baked -- are grow see know rate going not think in to but as we spot we to was as grow portfolio. continue been is stabilize, lower the it's and the a some we're past. I environment, into guide.

Great. Very helpful.

Our Gunther Stephens. from from comes next question Russell

around repositioning to up wanted the tangible sheet math. follow the just value I balance on book earn-back

preferred math? on be So is paid I in What rate included the color loans in confirm ask repositioning. trying some get and indirect takes. with those Just dividend associated down, to I securities the that that the the to included additional saving stock piece. wanted any just calculation? for puts just And borrowings release whether would auto that then get reserve there's

Yes.

So Russell.

repositioning securities know, portfolio. was the done on you the as So available-for-sale

So that into book baked was the tangible value. already

hit that's sale. slight because from year. incremental But accretion it less combined a the given to very preferred from is a that less accretive dividend, There's the than obviously When that than loan that. from strong stays the overall no in hit just year. would the transaction, earnings still you be there's add So earn-back

So there? pretty strong address earn-back metric. your Anything -- sorry, questions I did all

pay to there's discount on of The down of auto savings those reserve the that's there, calculation. the and whether loans borrowings takes that rate piece included puts release expect the were and what just in with associated any you'd and

No. Yes. Got you.

we off similar So at rate the the loans. about yield on talked as borrowings, paying a the

X.X% type yield roughly loans. X% we're on those to talking So

that a sale down as pay yet. hasn't at similar loan a And borrowings closed just reminder, rate. net So

the benefits So transaction. seen haven't actually we that capital from full

X a basis, and [indiscernible] go to when basis the just the forma expect we'd So of top roughly CETX sheet, points unestimated pro well on as loans that. basis off do balance XX increase on points increase

in statement that to with everything the at in income quarter quarter. us Russell, the market And additional the first there's fourth it marking captures tax, because no

actually executing itself. just sale So the really, it's

discussion, the that XX%. to would pro I then then CETX back the north follow-up the And just be guess last of forma still

also addressed repurchases, but guys You around sensitivity earn-back. the

you table? or about increase that? So the not securities on let how are Or additional capital to willing thinking repositioning

No.

we did. I sizing lot quarter what a we spent in the think time fourth of

investment do we stayed we conservative mean, years, security short have any sales, the don't any manage we demo how So that. portfolio, gears. to plans additional I shift last Remember, on we few during stayed which

And earlier, an ratio a total if So capital dollar to did amount which you important. makes have that guidance, of will additionally. the will is up do And anything don't [indiscernible] share looking sense. total then then go point we perspective, Vince's there as drift We kind then within the our ability capital that we're opportunistically, was any to to buybacks and it year, our from the the through ratios create do.

I right? we Yes. celebrate. a tangible going of all I pressure. upon for something And us based given we're I that be higher going that -- so to think decisions ultimately, smart could watching our see book profitability. and of all would translates to Because into valuation mean, above like that managing that be $XX, return be But that. We're all making to value

Understood.

from Navas question next Manuel & D.A. Our from Company. comes Davidson

backdrop loan Just wanted behind behind a get economic And growth of provisioning your then your the guidance. guidance. bit to

like the plan X year. throughout point, And a it's the expectations economists baked economists of We're kind kind and of what be In still on slowing kind cost but would mean consensus of down it's goes I saying. We're of that's economic not what's own. country. the in of mean, looking at in GDP, from I our the what the half kind growth. are growth environment, making Scott the it's our second to

average. on X%

average for year, on right. the X%

worsen, if So it was range? expectation that above be to provision would the the

comfortable very range have. we're think I we with the

the point we the to No, at comfortable be. where very the range with portfolio looks economy how this feel is and Yes. on

here the staying of year. across close that it is kind of good pace digits loan Is half loaded kind back been the about strong across it has as the front-end you the then to kind feel slows -- Or consistent of that And year? really the growth, more mid-single pretty year? of

within originations seasonality portfolio. there's mean on depending I Yes. the the

it second the quarter. in into to more tends book, look commercial you the the at grow third If

a mean If bit, and up banking, a you second really take quarter look little moved maybe quarter, it mortgage starts that first I at to off.

So an just give macro consensus, X we use example. differences and we our when there look in to those But portfolios. plan at the both I as micro scenario. I think are build

built then our We capability And is production estimates why we're environment, we And achievable. the says the from look used happening. apply our forecast the And model. then historically use up. what's Vince we basically we the look at -- our basically, forecast macroeconomic economists. surveyed we plant units. else's at that's said, in. So and markets we that from by We our in ground We to ourselves consensus business don't

kind all in what you. we of it's give So to baked

ground influence up. of we're our it the the and goes So would of we're segment factors and by growth, expense, building own that it from at commercial company provision then build loan inside looking mortgage, from macroeconomic down that. That break for then it consumer kind

can on are were we more next we what seeing ago guide given into in quarter that's and where think optimistic I'm the reflected cycle hard the do I hoping to predict, I think the a than little we So growth. we're And a going loan but and better. in year. we're

That pretty can to pipelines, surge you last If well It's the from loan in quarter. we in year growth and look fourth well at the our commercially. But reflected change the did quarter. did year quarter. we commercially the in last

flat. forward, relatively So when our you pipelines look we're at moving

the have to or yes, looking whatever big in X% digit that we're don't hey, mid-single So that achieve that or a X% going we says, at pipeline we're or portfolio. X%

economy say we what putting I pretty I really I what helpful. confident given that about about feel So would that's don't know the -- know we're forward today.

you a from kind eStore. performance? takeaways at of the of non-account all? great regional add, it I Or regionally it have general? down holders is break lot your in Can is there trends a just of eStore have You lot any activity, you Can using

I interesting our question. asked that people Yes. just question. That's an

when it, interesting. figure But out which as in ask trying granular the It origination board, pretty as we same Gets looked geography. be across devise question an the as perspective. relatively gets particular it's granular. need us It's at that geography. to a much is to how across spread I from to they pretty internally. we're new, still one broad wasn't was It initially So

branch do recognition, we to which as we have don't move lot that, tend So right? see outside why Once name likely the I the more That reason go get to with you part our consumers We are more where much that part you think anywhere us, they activity, advertise decided more was don't branded of the was action. to ATMs a frequently locations, of the and because ATM we of digitally. theory strategy. the is so see deployment

it So seems working. be to

If you there's digital. we where at where are more activity locations look geographic recognition, and some have our signage

That is great. I appreciate that.

deposit in we're that December. now obviously, we've products to then added going And the

We are going to start advertising.

[indiscernible] locally, game. the the were locally, during saw probably put to try already grow I Super championship know college those to get manage we with this Bowl, we Steeler we through the for Bills have it in events. during because out of I that way. ran game. We lost. national it let's We Buffalo Gap] [Audio we We not tune But the national but awareness bring customers some some football ran championship in support, consumer some right, are playoff Bowl, during the the Super So capability. dealers will advertising, are that the the the

and with the more of certain build of So on activity awareness. perspective got because a we has people and that you've branding signage lot trying on I some the to then buildings we've with our the some people us ran that helped of well. Jersey, a and in the particularly markets brought visibility, prospecting how Anyway, as then the patch, commented headquarters we're on building Wade think sponsorships from some advertising that's it. And activity for, the penguins, that's seen play

from [Operator Janney. Brian next comes from Our Instructions] question Martin

my questions of have answered. most Well, been

Vince, sounds to heard. builds it pipeline? just the here, commercial commercial Just on it's of was but think there. what the Is just That's you the general, probably what X like, quarter growth bit I from last the that question It given fourth looked slower question, in fair? like of I cadence start it, answered little a

CRE, of We production portfolios, of a some to pretty the contribution out clear There's Yes. on from bucket XX-day to I without Relatively that Without the is Carolina big had we a out really kind mean pipeline the which flat. and CRE. had the positive. third good quarter Carolinas. rebuild. of double-digit strong growth has in

about pretty that. excited So we're

will there think the -- well half the I Midwest and perspective year. into from opportunity latter a next the And in be as year C&I of in we Northeast as next move

Got you.

one there of if bit a they any very like were to strength Okay. -- that portfolio? strong. more head But you're kind as quarter. of the for down this area in paying sounds Gary, the a is to attention And just given bit one general, of then you're more Gary. point you it the into 'XX, credit I the watchful you criticized mean, that sounds just guess just area today I maybe

time. of all the was general. his are But I done segment has that. nice the we've in the been office a they have is management out the the said think as over going risk book, industry. over naturally, longer-term of business Well, years, books rest with CRE just for of team Fisher really to over portfolio going team in portfolio. are those be all we've mean, And dealt space, Tom job I to practices to and that. the that That it and around building a be

permanent would a temporary. was, change change There's in that mean I I been not that market. say

perform good that CRE in continued Fortunately, chosen I there has portfolio. has that office have that's time space over as that solid this to think portfolio liquidity But why and it to sponsors well point. I we with think that

wait that, think a to way to I has Brian. go it to

continue all we'll to So be over that.

change Yes. Perfect. just And fee looking then at mortgage the Okay. last of bit maybe a in little strategy talked and about just bit a little kind of a of the just income on in you there. X, side, kind pickup

the of mortgage the a lower little pretty about markets capital just outlook then the and kind just looks It level was kind for maybe was there. takes of pipeline from how how revenue. years that on previous where consistent, puts it wondering or just bit and think Just here to

converged just good I but Yes. say above benefit XX%. getting again, diversification. mean would had the by out of we've I the of been revenue another above quarter noninterest base, income, shows quarters, their of of XX%. the again, benefit different right? X We've X the ways, last

when us. markets the solid but there. up lot the there. for to rate mean, be last had And was it's quarter capital I continue to it, we a prior shift, down quarter, year. I XX a think opportunity there's starts from a to I opportunity still environment So will from of handle

perspective we syndication the components markets. from there contributions swap all capital all the from But international really at have a

from increase So then lot within forecasting industry we up, from business. down, market of mean to down strong origination And was overall a pieces there's the Close 'XX. versus mean the where mortgage the origination originations standpoint. in 'XX an standpoint, and we're double-digit a had environment really that were back. bounce in an was even we I I an 'XX in

level not what portfolio, then sell. comments on and earn affecting balance what my of the of And the just sheet we but we was saleable on about kind originations really versus more pricing

corporate the large debt market sale environment, going in raise other decreases, activity The see more customers lower in should up to in we And derivatives, gain a capital rate to we if accelerate. capital year. in that pick more I should do business, thing markets get and should rate would on half with then syndication activity second say of mortgage the our the the is

management have said, and good trust Vince growth, wealth well. we've our had and a should And like the portfolio. done extraordinarily mention steady shops then I having asset So

assets. mean So levels. up they're we're I revenue, record in net net income growing at

good see in we're So growth book. markets where should that continued in we

do way in okay year, balanced out good generators we some a income. of think the noninterest have So the fee rates coming set forecasting, are if play we that should I with

and be And will then the additive. business on initiatives PM small side

was And understand, part selling this trying dividends built have quarter year have the in just better you 'XX. you mortgage, for out a also that next to contributes to you And guess do the on to an said, increase Yes. rate, No, sell paying really maybe outlook of the more businesses like you are at just if increase originations the really diversification. higher was I I if guys and and you Vince, continue so here. a

may on It remember, the right? we environment even lower, look we're activity, activity we money, has And we would the I that. do though Yes. environment. just we much as more The unit. purchase in balance moving -- don't refinance That focus opportunity depends focus margin principally a rate the get when not provide not at declining money. on with but is the But off see you sale more we have We're making on we on we're us gain for been sheet refinance is mean market. some would purchase it it, from rate -- lower, benefit though. rate sold environment, the

balanced I that's pretty think been a Even it's I sustain done period. this trade-offs. But we've through So right consumer to good our time. able with fee there's think pretty we've fees and approach declining levels income

in income benefit would down, the from fourth mortgage had rates just too. I the add coming a Brian, quarter

contributed So the on quarter. value fourth in the that has pipeline mark fair the to

Got you.

on Vince, C. Okay. last just was then the Perfect. one And just Vince margin. the

Just the one question.

perspective, me, loans kind on each I the remind and of a from a does piece. rate the variable rate I then much variable XX for basis margin mean Just mean, point cut move basis cut? of How that percentage if that XX point

very need judged XX% sheet, see We about loans about maturity. you parts different to all and earlier, right? balance these the percentage movement I that and old months was have look Our to down is of talking the are XX are still average at

That's then. of Brian, kind first there. year, of in the minuses half all kind and of bottoming into baked market the the pluses So and

Yes.

helps That out XX%. Okay.

So right. all

to to like I'd floor no any for turn additional over gentlemen, ladies Vince remarks. showing questions, the closing Delie and And back

year Yes. gone this about I'd for deployed Thank over performed think we've key thank liquidity very that you interest. F.N.B. And the for crisis well. what's questions. like questions, played of this we've the that year. the many talked to years, during And the really out has your strategies earlier I on everybody great given

You of see in of underwriting. what quality got been terms talking portfolio we've the our to about and firsthand, client primacy, credit our deposit

showed about again, because So year, into get to itself we very our and moving next hopefully, of like up year think 'XX, thank move year. excited I'm they job better half we'd latter employees step did and but really this in to into the economic, and a moving and last admirable particularly things 'XX I it an done

Take So Thank everybody. care. you, thank you.

we'll We for conclude call thank and conference that, Ladies today's presentation. and gentlemen, you joining. with

now may your disconnect You lines.