F.N.B. (FNB) 18 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to the F.N.B. Corporation Second Quarter 2024 Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

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

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

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

year-over-year per over noninterest XX% to levels. high our expenses strong $XXX well-managed reported revenue of grew income a Joining Officer. FNB shareholders quarter second net by $X.XX. solid record income Calabrese, Guerrieri, Chief our increased value and book to are Pre-provision with common our me X% results $X.XX linked Vince today Chief reach share. supported or quarter, Financial Officer; Credit per at available common Gary net million and diluted Tangible continued share

through performance was growth, and deposit manage share revenue loan driven strategic The market risk. second streams by and to diversified long-term gain goals our quarter's

Both liquidity well the positioned to respectively, ability these X.X% position institutions. The X%, Carolinas. deposit year-over-year. loans from growth activity with our increase of loan our FNB XX% large digital was mentioned, and market for commercial underwriting and of published both and our to results footprint, and given by deposit highlighted conservative FNB environment, to quarter HX capital year-over-year strength of exceeded strategy. on total the in growth our small interactions guidance. this consistent linked our execute data As loan by volatile investments we've quarter in growth this benefited and The this in the steadily and demonstrating across driven across previously is the reported eStore double-digit share and adherence increase increasing

increase equipment estate Pittsburgh grew previously originated posted Cleveland led X% in quarter, FNB's Our portfolio strong projects. On also basis, real commercial contributions. consumer and regions included fundings The in growth linked residential business spot by and mortgages. loans on finance a commercial

and XX%, deposits that quarter. an billion, the a of as deposit annualized in Noninterest-bearing deposit growth in banker market. December noninterest-bearing key since serving reflect portfolio also seasonally increased inflows the in share targeted total mortgage increase continued XXXX. and of quarter this expanded in leads X.X% was well level quarter, the This as production higher deposits households results ended over execution benefited to mix quarter the ended new consistent and ultimately by seasonal While generated prior our is our the $XX strategy markets activity initiatives to deposits of of purchase promotions. the successful from long-standing through growth. Deposits team second The at

base. strategy we've to discussed, data supporting As deposits while protect deposit to our frequently has our price client been our peer-leading our

ratio implementing expecting the We're loan-to-deposit second levels. back deposit year that bring ratio half lower currently a loan of and will loan-to-deposit of the our originations number initiatives towards Our XX%. historical equals in

been and our both has of quarters near the focus the stable strategic services. and first our suite record strength million $XX streams. second Another in highlights income range revenue FNB's Achieving levels longer-term and products noninterest business of at diversifying and of robust model

half XXXX. Fee the totaled XX%, $XXX over by the first income operations XX% of growing mortgage was year, management a the growth same period fee treasury income million, revenue management increase banking our income noninterest For wealth strong led over in growth. and

approach income balance enter we continue of sheet noninterest year. FNB's growing strategy as our success management. Our is the of second is proactive half to to the risk part expected

closer a and in As stability potential environment. move margin reduction continue towards a a in to we in falling interest rate rates, improvement position interest to provide drop neutral to we rate

approach Beyond interest peers. consistent has stable FNB's asset and strong to risk, led and comprehensive outperformance versus management rate to risk credit quality

monitors proactively to loan us provide at further overall now team detail served which level, many a and Gary economic call granular credit concentrations cycles. I'll the Our the each through well portfolio over pass overall Gary? asset has quality. to on

ended million solid multiyear basis to growth solid loan and quarter. for and quality We providing net at points, our quarter $XX.X remaining charge-offs with prior X at down and performance basis at in the expense million environment. Total asset Total the the NPLs utilized the quarter Vince, stood the basis offs. you, delinquency at levels. remained Thank at unchanged, bp economic reflecting quarter remainder ending XX low points, for with with metrics morning, the provision from support everyone. finished OREO charge points, $XX.X good X current a XX

strong stands position including inclusive the at When funding quarter, and $XX.X NPL at discounts, up discounts. at stands of ending million, reserve our million X.XX%. $XXX XXX% X.XX%, unamortized in loan reserve at the acquired coverage ended remains Our our

CRE prior the low respectively. Net quarter continue and very XX strategy XX performance across CRE our NPLs Monthly, remain market property our to strong solid management risk and footprint. for segment and the largest nonowner-occupied monitor credit portfolio specific quarter along At and to and portfolios, portfolio. a delinquency points, charge-offs with Quarterly, our continues and improved nonowner-occupied our we quarter. We analyze and for upcoming exposures numerous largely maintained delinquency basis portfolio nonowner throughout points successfully perform previously basis well end, for office The to with with of sponsorship. and underwriting X NPLs, in X resolved on the at of slightly strong points, stress the reflected economic no totaled maturities, execute consistent basis again, line cycles. at the full various we a conditions in-depth to We test. on portfolio continue reviews perform types focus portfolio our confirming

loan projected results lower a testing XX% severe in approximately charge-offs stress again our current have for compared quarter's with charge-offs portfolio our confirming well-balanced to stable withstand levels, results that various metrics to again, stable. covering portfolio our enables quarter our provision our loan quality quarter closing, the us net economic Our stressed and prior remain continues and to good ACL the downturn, ended at this shown scenarios. In economic of asset

management complements core in our and consistent systems investments philosophy. risk and underwriting continuous credit corresponding credit staff Our

have growth, Chief Our well while economic managing remarks. teams tenured the and to proactively his cycles. I'll company experienced Financial through banking now achieve Vince credit positioned turn many prudent Officer, leadership the risk call loan Calabrese, our for to continue to over

Today, the third quarter guidance. results focus morning. our walk good full and on financial Gary, and year quarter's through second Thanks, I'll and

million loans, linked of loans $X.X loans total at to an mortgage well a projects. Total for of of leases, XX% mentioned, quarter quarter commercial finance compared driven As March fundings estate increase included in XX the $XXX or of billion, increased June equipment the in activity X.X%. on the at build XX% in $XX billion, million increase residential growth billion XX. at healthy in $XXX peak deposits C&I including and by the loan-to-deposit public funds previously as leases quarter ended originations at deposits begun. The $XX.X deposits in committed $XXX million certificates from growth noninterest-bearing and growth $XXX and deposits Vince commercial This additional seasonal linked ended and $XX as and quarter, have consumer million as real million ratio seasonal of to reflecting

is client ratio forecasted expect side with We the in than the business initiatives this our medium has of to term, footprint. commercial acquisition robust and across implemented. Starting loan growth our several second team higher the the decline the on organically the due both equation, mortgage stronger loan quarter's of to seasonality and

return year the election. the strong typical in to declined pipelines the pause growth as and have quarter leading in client somewhat presidential the expect for We production the to levels historical of loan the up remainder given to activity

Looking strong We a deposit targeting currently initiatives at treasury management deposits. promotion. new X-month including several a both have gathering consumer commercial market balances, money consumer and CD in pipeline and

we promotions, quickly these to lower of when able duration short should fall. be the rates reprice Given them

billion. the move When and cost past robust increasing Over we with start quarter, the of decrease, continue. short-term growth to borrowings borrowings $X.X total quickly. borrowings past has loan that will to largely utilized we down year, growth mix deposit these industry, fund This will and the believe outperformed the rates our

balance positioning are more last mature of floating or points. with mentioned, over of currently of billion Vince As duration. at above $X our earnings We've XX beginning deposits or and a from a mentioned rate benefit lastly, sheet rates I XXX strategically several to that priced we've as billion X-month the around non-maturity that $X portfolio between basis quarter's XXXX on $X.X be billion borrowings, neutral billion interest quarters, $X.X rates. lower short-term to around been X.XX%, swaps we've CD call, And in with last

of of flow has swaps, and months. In over the $XXX $X.X and repayments of billion rate at portfolio X.X% falling that approximately should billion X.XX%, provide of current to total, rate rate environment within we've $X.X $XX cash Additionally, yield and we've billion of protection fixed at of next the months. loan cash loan and liabilities X rate investment million an nearly of the billion loans reprice flows the in securities compared roll-off in annual average an repayments XX significant that $XX a fixed benefit

to increase decrease yield basis The in X.XX%, driving XX the X short-term total cost funds offset net to second in basis total X.XX%. partially increase was largely the point borrowings, was earning on margin a by basis due point X.XX%. quarter's the This point assets a of X increased interest of

total new quarter income leading XX% a to deposit origination from costs $X.X third the since offset million, quarter March $XXX.X began the beta as totaled spot prior XXXX, loan cost XXXX. the Our yields the us of quarter in interest competitors. Net consistent for against increases balances deposit around higher decrease ended the current X.XX%, with our of spot quarter interest was well cumulative rate positioning since of level funds at the partially of higher X%, by million a

net We third the see be quarter. and trough sequential quarter's improvement fourth second expect interest should and for modest the the year to in income the

sold loan The momentum expenses taxes last a and were due efficiency position a strong level income increase million remained operations ratio was and a second quarterly $X.X was significant customer of largest XX, decline Tangible seasonally tangible million, to pipeline by the June end at with income, from decrease payroll operating volume mortgage compared quarter. growth employee transaction at by transaction at AOCI the compared items to and tangible the end, of an were capital growth which normal book to able totaled seasonally in quarter or peer-leading expense robust June an $XX.X gain treasury increase declines by quarter and and our value income current the noninterest share of commercial decline million, driver $X.XX this prior per slight $X.X quarter net book XX.X% near expense. support as loan CETX $X.XX noninterest charges, for ratio after in and of and common the lower maintain million revenues coming activity XX.X%, long-term to well common totaled results. we the prior of $X.X higher the benefits, $X.X were remained markets remain equity reduced the largest was managed consumer as activity. Operating The $X.X $X and employer-paid share in XXXX. XX.X% ratio $X.XX both adjustments and million million and million, X% hedging The primarily driven stated year. Offsetting of decreased $XXX.X compensation of quarter. driven fair on higher salaries above value second adjusting for per at XX, which strong to in quarter of consistent last $X.XX continuing Turning capital in lower banking million in in levels. Noninterest seasonal quarter. FNB's management quarter's to service value at levels. prior given common

digits mid-single guidance. deposits to for to balance digits look sheet are on low and now third full Loans Let's year-over-year a maintaining grow a full year XXXX. our guidance at basis. basis. year the Total on quarter single expected grow are expected year of We're full

remain deposits deposits Our peers. anticipated is total to mix of to to noninterest-bearing superior

billion Our projected interest million half billion, to assuming interest million. $XXX mix reflects This $X.XX full September. liability the income point is revised be expectation is between $XXX revision second interest-bearing year $X.XX the cut third to income quarter basis and between be for net as enter of rate in XXX the expected year. Net we our and

strength income $XXX noninterest of in first generation we've to year of be the million. the increased $XXX million our our guide the half between full Given and year,

results. due to be $XX between for $XX compensation million. We expense to the production-related between Third strong $XXX noninterest million and quarter noninterest full be to now is year the million income expected given and income $XXX million anticipate fee guidance

$XX year million. The to guidance to net million $XX loan range to be activity and $XXX is in remains expense lowered and growth charge-off $XXX second the full million noninterest the half is dependent year. of provision quarter and on million Third between expected

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

execution Vince. This diversified has financial through the XXXth the billion anniversary to obtained into nationally as year a of a $XX and Thank National XXXX. prosper institution. in FNB Banking you, develop bank strategy, chartered continued Act our our regional growth celebrates Through

revenue. such ranking resilient This FNB naming Banks and generation, recognition efforts pre-provision with X,XXX national continue capital quarter's to Forbes sheet, global listed We publications to and companies of prominent those liquidity profit, value. as sales, that consistently quarter based affirms one with its advantage results on Best market strong growth reflect competitive America's in our and received us a net linked ample assets balance

engagement on at we Banking strategic outstanding for fintech eStore Initiative success, our highlight the national Our FNB's recently, won achievements emphasis USA. success and Digital and continue is the and to digital U.S. banking leadership. Most innovation integral earn awards Tech and Awards Best attention in These XXXX industry. to

nation's or In FNB financial Innovation. Technology the top finalist X Digital Initiative Initiative, in Best Consumer addition Top winning to Banking, Customer Best among and Best honored Experience Use largest as a of was for institutions User

our to employees continue for also We earn awards our enable to our to success. commitment

footprint services specific the and During we workplace leadership. the extended of throughout and honors second long for we the awards in industry top list financial excellence quarter, our received national with culture,

I As macroeconomic thank We're shared We want we for appreciate communities our poised to many reflect shareholders. our contributions. and on customers, your a team solid ever-changing the maintaining quarter, on by to dedication deliver for their focus our our landscape goals. principles navigate and and

begin Tamayo Raymond [Operator comes Instructions] first The from question now question-and-answer with the session. James. Daniel We'll

side. on starting sheet the Maybe balance

half about of Obviously, residential back talked or pretty had a of to the a a slowing of -- second You year lot was mortgage in the quarter. growth strong what loan in what's growth. the quarter been relative you

Obviously, about expect you're expecting you come just to the if half growth talk can you back expecting part some some if also had that's slowing. growth mix real with of from seasonality slowing well. Maybe here, but second real in seeing the and slowing You commercial on you're it, commercial that's a the some commercial construction in side the estate side? as estate that quarter residential -- fundings the if

mix Just the curious you on expect.

I so turn Vince mix. [indiscernible] do mortgage don't was to Calabrese, can over to it it. I going I mix

I of think couple things. a

seasonal. First of the mortgage all, growth is

see, quarter started to loss a already pipeline. to our we've into So the in move lower as started see period, third we

So that fairly to we substantially. down expect come

a as where primarily committed were We construction on the taken put on financing -- second the of out someone do move by committed it's on the the through and obligations. we bit big there do down we the construction year. The sheet less forward So quite fundings half balance road.

fund-ups natural those as through So funding occur the move -- we just construction period.

were footprint, this of think growth robust pretty doing well quarter. And across with equipment that deals We've much leases had and presented there. we finance. the I and the been balance in growth year, last pretty there some energy last that is So the pretty closed, then renewable there quarter some in

book balances business. that in we've of exceeded in think $X I billion

over in contributed. some continues it's Pittsburgh, So nicely There Carolinas, the has growing Cleveland to contributed. was growth significant grow. C&I time and

really -- share a we've certain been areas, bunch So of others. coming areas, it from from robust. appears was taking really it In

with mixed I that the So was occurred customer positive. The it's I well into an out think expected, moving than up base us 'XX. and really is I positions but think think disruption kind us the very it I pitch transactions, growth and okay of new gave it because to get opportunity which higher

sets from putting a assets can deposits. to shifting liability we really us perspective continue and sensitive those balance 'XX that earnings more generate up we're how on Given for to an sheet

loan we're I think So side, guiding. that's that on the what

Our I'll a guidance little at expecting beginning the are hasn't We're a but produce tell quarter. it's this level quite down. the pipelines of bit that forecasted the year, we same And booked We've changed. to lumpy. you,

So little we're next it's side. of commercial the sluggish quarter down into still XX% a on And pipelines. about moving the consumer

haven't much. So seen as we

While we've equity there volume, less seen first more volume. home mortgage was mortgage much HELOC --

So of offset back each they year. other. come not this that And kind we're to expecting

about think the just how what that's didn't was right? indirect know, other speak your The there, thoughts only category don't auto. I Gary, are I book So performs. I

the quarter mortgage. is, on QX, had We're solid profitability. high-quality paper seasonal with similar again, in growth We a getting which very to focus there really

for the seasonal spots to periods. those So FICO again, going that really well us. end our But through improving is we're margins band seasonal, of at playing and the pick high that's working manage and

to the of as as come the year move half latter So toward that expect we we well. down

execute our growth our to perspective, plan, from in And then management pipeline. funding able treasury we've we're a if seen

as should we're bank. some seeing move forward. large where That in demand opportunities the principal bring we're deposits very we So good

we cost borrowings we've to that bright while I that. we had upside is think run that that us And for replace spot think proven here, growth fund temporarily, I lower the to the the in funding. with with do can long

some upside been And had you're So the into the deposits. to pretty been on. We've you 'XX the throughout been at leads for for others at [Audio to look when we which deposits. starting it's categories quarters. also up up decent bring stable. deposit Gap] bring us growth not to deposits with in in seeing as across deposits, not at in low-cost We've deposits, as us demand aggressive replacing if look We're is which growth demand several priced price We borrowings those cycle. pockets base, XX% to certain

our So -- attracting coupled as deposits with strategy kind demand is of those well.

Our beta quarter, very last It's -- that very too, performance goes XX.X% from up to to XX%. point gradually right?

So overall us is again that's profitability. protecting the

Yes.

can challenging back. We you want As navigate. don't to time imagine, a it's to pull

I back. or think their lot shrunk sheet competitors of a balance pulled have

we this the do an think go do and hope in I which opportunity clients. share, for helps, right? that is well, is bring some I what to us after households converting primary

Yes. really color. No, terrific. a that's that quick I follow-up. Maybe appreciate all

the Just back the the the on funding rightsize positive side, mentioned you end comments of in prepared in but about the half initiatives you kind ratio. the of at on loan-to-deposit there touched year also it to the

that you funding more go if kind of detail you next.... thinking and how about could what little could curious Just were the in costs a impact into

incentive plans We've for the modified a We've consumer deposit kind the growth. of for Sure. bank. kicker

is segment. shifting really -- that in pretty the loan growth way miniscule So

company treasury management given past after cycle. hey, transactions go incent on willing to opportunities. haven't won sizable. are to initiatives to a across clients this larger funded over It our are thought, we'll We've we which like us fairly So bunch calling number of talk performance a the deposits. We've that seems yet, them of

issues. those kind relationships we -- when that without a of throughout capable any we're proven cycle handling So of

the very it. I people think on focused that are

incentive the to as there to book done We're into Brokerage, manage focused excruciating in compensation we customers that's to side, some data board going investment of perspective from that Our the that analytics consumer in direction segment. side. to on jumbo wealth them and the the get brokerage deposit with physicians' teams as particularly where across work it. kind mortgage eStore, used digital our there then an get are market starting on thing some on the should to with incent we've are digital cross-sell traction long in are mainly is do And sales, pay XX%. in off. And partnering do and we've the things don't detail, that Then, hand technologies, the product working a the in, the things we're I mortgage interactions focus we we up but which want growth. And help. bring in we're to things them on And that some money will brokerage. hand on other and

And of and funding 'XX, So do time take some from there's benefits a half to going bunch move we of going get bit certainly, this that we things on. a the into it. a I into of it's lift But perspective. we second year the everything think of little to as of see out should

The with comes Piper next Frank question from Schiraldi Sandler.

continued fee strength. guide for and Another income strong quarter

Just or could the out to businesses, you of the curious, do total you any ramp see if up you can fee particular of picture grow as that a to in you revenue side grow you to ramp get up income as where to And need pie. want thoughts you businesses, continue think maybe percentage share bigger there? picture, your fee these the you to

deck. Yes. We've just income. targeted revenue. our this changed interest in of We But term. is almost there. world -- information about total a think long the XX% net this We talked put term, We in past. long of I got then the terms We in

but make target. and to but there. of kind total I immediately, the to to that that That's it build target we're get of that's diluted think consume not our those to continue really to more something going fee-based That revenue. long-term out starts So get sure XX% it target. We strive the effort, businesses want we is to

a We've It's from syndications think we've our record debt group I advisory derivatives -- that with capital done great building had we've our out well do us bond platform. offerings. capital been an there's We in for formed. I platform, success to opportunity things We've debt think markets markets. perspective.

focus opportunity income there's that businesses base. continue for contribute to us out help will diversify businesses think in I that the think that bolt-on building I are on continue and finance. There public fee future to are things that to

-- and of on building, the to span size impressive. our the our in, Given move that we fairly opportunity capital the company, markets once It's together. we've floor terrific segments. so markets I think those all a compete our build those And capitalize think trading we we into a I we could bring groups

we've think I and to clients that capabilities opportunities bringing in lead them us. additional showing these for will

And then side, on the wealth opportunities there. we've

the think surface in we've building terms of were markets XX% the they that our annually in year. has contributing wealth every moved into, grown nicely. out and mean I scratched we I teams only

We've I there's tremendous had upside. year-after-year. records think

bought of So continues robust the building and in the management the treasury company out growth platform the have fee building didn't we treasury continues. TM, Again, and out management Southeast. wealth income. those upside there's in given They banks capabilities tremendous offerings.

So client time share. still expect that over the continue as other -- mortgage increase grow cyclical to TM. And as opportunities mortgage build see then And gradually we'll grow then you've the but units, to to market and base be on commercial is seasonal. we going side, to I we out

the the of others amount had job. Joe in outperformed terrific that done they've we've if the production off and look team, at in cycle, a we've phenomenal markets And has that a done teams growing this job out Cartellone you building in. we compete even share. Our

market good expect with to focus insurance. to gained share. seems into going to further product and that last We've pretty do integrating the offering we that. And on offering we've leadership to us even started there, commercial So our And our continue that is insurance a piece and I'd well. decent bankers. we've then be

but So upside up insurance It's we're starting and I and market there. firming and to pick premiums little the there's stagnant, a larger is clients. increasing are larger I think been think

So in there's space, that upside.

I over in the think discussed performance. were X the optimistic those the income the and And I think pretty And shows we've We've illustrates years we're X categories. touted last it building fee success consistently about out. what had. really or So performance capability we

that just of is the a of revenue In percent fact, I'd ] [ interest the comment environment. rate function

So Vince the level that been given keeps building. talked has absolute all just the focus about initiatives key and growing that

it. Got

maybe wondering to maybe quarter, loan half Okay. growth, little second levels, it. here? just in second more activity I All follow-up, bought some right. just would just quarter, your recent you seen expect we've a some appreciate in bank are above target a sensitive? to but relatively of slower back guys capital the rally the And you growth year. quick as slower the already And you speaking, the then with and back buyback I Or up in a bit know you price stocks. Obviously, ramp with

today? you So just wondering as see how maybe we should think activity about buyback it

had in earlier buy just the really I'd some activity the incentive that shares to was kind level the Yes. of second in of quarter year. back we the say issued of No, were

$XXX,XXX So bought. that we

At change but changes, is second kind I half don't capital right at here environment on capital of mean the the sit our I here. we to shares the today, year. -- can the that any plans have this focus As loan point, now, from growth. looking we of using repurchase the think to building support

at fact loan growth in this ratio, the capital CETX at hold think that ratio TCE support the had and that able were X.X%. I to quarter we we that robust XX.X%

at point. the And holding the part of go of supporting the year best kind use of capital of So still buybacks this as and bit through best build loan our letting the as operation is I sit use think, the gradually I we levels is be capital growth, will we every today, go forward. But as here that a little the..... we think those

comes question with Casey from next Haire The Jefferies.

follow-up of couple questions the strategy. funding A Great. on

assuming there is borrowings, of opportunity an So the deposit to the initiatives just these of with there? some Or I'm guide terms in that wondering, what assume stays down? does that pay

Yes, the what's quarter third entering into that basically the that. that baked increased has liability position I'd the that say guide we're

described, has there's I better comment, we So borrowings borrowings. And that additional those as opportunity growth the too, well do obviously the loan term. replace short short-term should of some short-term fund to that on initiatives Vince as are the

the does down going when tandem come those on So down. rate cut, to with is Fed in rate the coming the

that we to rates the earnings loan can a little forgo kind quarter, So us position during of the decision given but short second the the go in quarter, down benefit made forward. a of run from so in bit we as the growth we

understood. No,

like they're are And initiatives Okay. these CDs. it deposit -- doesn't sound it like sounds

is on to So you just successful, the the bring these borrowing wondering in rate to money new the deposits versus hope that yield? what they're that X% extent

mean mean a I definitely coming I still we I be Yes. have of mean, in. CDs it's mix, level some will Casey. it slowed.

of year. of it million we the last remixing So look month. a at kind the CDs, on these If average $XX quarter, literally, was second what

of So high $XXX last where million we had a July.

the So still shifting there's are grabbing those rates, still definitely -- right? but slowed, there customers has

Yes.

Our people originate aren't CDs. incentive to

key focus. to in is And initiatives obviously talked bringing calling their account I accounts, a noninterest-bearing in, companies, operating That's think new on point. the Right. customers about the key operating that come Vince

drive And to start but the a come it's it certainty bit it be to both. little of customers CD rates will any of their that's predict want down. hard to So the mix, before

you've off ones there. some So attractive

forward that is think move total the we as the growing I importance just deposits.

one balance sheet Okay. last for Thanks for repricing. the XX, Slide sharing just that. And then me.

on on what the an for rate. just does received that $X you're that reinvestment. X.XX%, average that bond billion, money maturity Just yield looking on Is of rate roll-off ratable the throughout 'XX? XX And yield then that? with Is that bps swap new mature? getting date the So curious

on that. Yes. A of comments couple

of added kind a what's underneath. little I more give think we to content understanding just this everybody

of investing mean of today, roll billion flow million, kind the I through off coming annual the we flow X.XX% if $XXX cash So to $X.XX pieces, million. billion. cash we're $X.X

quarter, X%. During the second -- a opportunistically earlier south our investing guys job of north mean, quarter, I the kind did in great of

So.....

deck. Page We're in speaking to XX the

make I'm to everyone Vince. sure knows. sorry, Just

last month. forward. want then the I no, we've pieces XX point a do X today, No, mean, year, And flexibility time promotions us our the X we other It's talk And of rate on in move good is some weighted average to months. deposits, give no. these because as here months, I over billion CD maturity X $X.X months, that. had through best

of So the move, start does Fed we've those. the idea the and we can of ability is to that maturing reprice when kind

above billion deposits another the the that first are $X repriceable. Fed X.XX%. very moves Fed move expected with and important after in an Again, that's once rates non-maturity Those So continue point. We've basically if to move. to is

So will borrowings, of again, some rate gives billion reprice floating $X.X down. The those short-term that flexibility. just or us

Casey, The a lever they're basis is points And I to -- is to January. So $XXX the today that's a $X of that's carry negative going XX what there, at swaps for going then us. And million million really today. mean next bottom that's the quarter year. we're mature billion away to in million receiving to quarter. $XX $XX of a go start another

question next Russell Stephens. The comes from Gunther with

on just having. follow the just discussion up we were a Maybe

still cut down? as is your can Given a or initial move from neutral step an an to of that overcome initial repricing lag deposit balance negative headwind dynamic we just repricing discussed, NIM and sheet Fed a some towards fixed costs the the of some

Russell, Yes. Chris. It's

pricing to say timing we like probably probably is done, have several fast baked cover a aggressive us I more a some think into expected aggressively more if to client downside of I'd cover and is after that as Vince then about. can on is issues talked there's we what how rates cut, to are down that for expected on that there reprice it side and cut of more If can of lot it it's us constraints hopefully, capture depends lot side. and more kind some guidance, beta kind expectation that there of if gives our that curve, the than act on one kind bit continue, where cuts that's first be the in here. deposits. But kind of and timing we near-term we gives is of some a negative think the little short-term with the kind a deposit quicker

deposit are talking your accelerated Southeast Getting peers I just know, pricing of about talking Okay. rates. out in promo where competition, walking markets season, others messages could some particularly the it. competition guys And talk broadly. about Got then you early just about successfully earnings some, down mixed in don't

terms costs in of deposit helpful be over couple would thought next where overall of think your the quarters. Just you headed are

competitors have many to priced basically backed of our deposits that off. -- shifted and connect kind of they think I they've up where once

the a think larger of bit. little lot a I So competitors backed have off

call was signals. getting if it, XX why So in basis there, that's you're going you point the crisis. But micro I I running to reduction pricing liquidity think to of, you're look at versus XX the heat the out promotional what mixed see that's

a see I you'll all and And have think aggressive each sudden, of institution. really at they'll it's rate. emerge somebody a different then

in they what's repricing think -- and selective more generally a that to moved where I people products website. companies -- maybe So promotional quiet on strategy we they've were a versus moved doing their have have generally moved pricing their had

other be going -- I a it irrational it's going than that. say still to some so mix hear all there. pricing So it's than of to of I'd less was mean, you're out competitive spots. There's

your to client to depending in of work that's surveys there pricing in I that's that whose on just a -- do, I We've on promotional the who's you calling from monitoring out what. So think we're. But do right? do see So need we lot we that, where the the pullback a competitors. we stated can pricing pricing, that many on our seen react of

in. with really pricing aggressive what are once in X we're by it's somebody X has the I out competitors emerges putting X So it term time of the months, months, every see over A doing, a of the in like then, a the shorter, the while doing lot down. that's rate. But shortening the more place, But come months. CD come seeing. moved aggressive if we're they're a what That's has anyway. duration priced portfolio all We deposit said,

too, down different trying you and a to. bringing it's banks is because loans So rates not I'd more depends loans in. add not they're on you're growing all if growing at the growth or environment who want in not, they're deposits the it new all, depending the If those managing that just the are bank to generate right? talking deposits. customers, just on With there, our

really on the bank. market it depends and the So

as read all contracted We've see can earnings the through read I have release, the margin, because improved inflows we I that. others margin lending, through -- can I right? the the our you given over see seen pricings we're and were their board. As -- of deposits

choppy. an the are It's with competitive. So deal still I think to on individual just And situation it's retrenching basis. people

it $X standpoint. million the add, our basis for was X Vince right, last bottom dollars just as income, we which $X mean, decline to critical profitability were line I compression the the quarter. million But down of down $X.X the margin interest from I'd this too, is quarter look million points quarter said, quarter, you Yes. if at net from before. most

that. So kind of in line with

the forward. as XX So I as and talked go forward, kind you we've come -- reprice items that more then initiatives positive on to then can go you momentum that rates mentioned a those gives we down, and earlier, success with all deposit about I Slide of

be forward, guess incremental both guys Or to the repositioning? appreciate understanding like we're your on up it. portfolio currently question. that overall you I Got to little poised guide. last opportunity Would NII flat securities thoughts guys, in the to but how going sounds Well, a for and the pressure it on set? does sit one another consider me I your

be expect interest trough income, the say net I net the mean, just second income I'd interest dollars. in that we quarter the Yes. to

of move So couple described. all evaluate that on up just And then we regular we a given to balance do the it the sheet the things next we basis. whole quarters expect

with strategy we very the deployed. in we the about of did said, quarter, size nature optimization we and that we as So fourth thoughtful were what the of the overall

at everything. look we So

think on and So on standpoint. initiatives the of from kind recessive organic the the a deposit growth. I primarily we're then in But the all table is loan focused fund really growth everything loans the

business. those It -- helps to bring really us on. I households helps generate mean future in additional us the that us helps

I think to we've selling of done job that a pretty customer good base.

So...

Navas comes question Davidson. next D.A. from The with Manuel

it? Fed upside Just actually you that some maybe touched exceed If before. kind end a of NII kind the of on of range? to cycle, continued could of kind it have to Or you would briefly on rate the points that down of variability thoughts your kind high

I baked like one the now there it Manuel, it think curve. year. more has in kind guide into our cuts -- for the cut right were If said, and that's I Yes. of

I up think show upside 'XX. the really would at

for like, well after, if look how don't what long think know could of years curve I I that X been 'XX sets up the inversion. especially un-inverts it's now us really

of CDs more helpful. But in. of be like 'XX would timing some impact. would sure be mature, I'm there's said, when that the think I So locked I that's on some it of a mechanics

coming X the now, So the that on year. of of happens with at months a repricing CDs are lot end the

that think I sets really XXXX. us for up

pretty is band our And tight.

the As interest tight there. net know, guide you you look if pretty a for at income. It's band

quarter deposit been In growth X certainly third quarter. has pretty years, the good this last

of I you you that quarter on flows. just touch of that kind in seasonality potential? meeting think on trends you've kind touched some Can organic this just better deposit

ahead, Vince. Yes. Go

on initiative in November and that kind million million say, consumer that got can them usually trough as kind deposits, $XXX municipal seasonal so we and we of see we time far particularly in to of surge peak and that talked $XXX now expect, to normal and be seasonality then to and yes, first going commercial -- happens was the about the be through the October, I that side, Vince earlier deposits. as will the supplemented quarter by the frame,

-- you monthly it's progressed Sometimes ended you least basis? Can of where kind NIM at the where your quarter? show

of was within monthly point it -- there in the some X The quarterly the I noise basis quarter, of or was mean, X last month monthly average. Yes. margin the the

with question Kelly The from comes Motta next KBW.

the win touched to great it a I growth on incredibly think to and strong, firm. bit, new and opportunity it's but you've a clearly, clients loan was households

greatest wondering the of where the region or you're a share, opportunity take certain segment seeing to business? Just it's whether

decent Yes. seen growth coming pretty Carolinas. And of the some out we've

with to upside I continues for an think us. be area that

that think started there. I we've activity scratch of surface only our terms in the to calling

a Charleston. And built Greenville a lot into both there there's quite South from moved on banking Carolina, we've out for There's of wealth building So and commercial out opportunity a bit as banking. table. private us, and South we the

we've in areas from had great -- the We've success growth and continue had we in those Greensboro. success perspective, good some So to in success. Charlotte. good deposit We've see Wilmington had a in

of a So well. very significant in Pittsburgh market. We've we're the to Pittsburgh here the Southeast. And pretty about lot there. perform share continues We've upside optimistic then

So here. I think Mortgage, the given in appropriately don't that sized undersized. certain we're business share think we've lines deposit I we're

And lending there to in penetrated the perspective. perspective, for opportunity some market. the consumer from we're from grow there's Pittsburgh to So this C&I market basically, continue not us in a

over when on release well there's there's clarity move in think, kind think mentioned years, So but do. Cleveland continue a as get C&I because base. Cleveland period, the And some and a us I move on for well should -- has been few finance, very market as we upside through sluggish last equipment hold to election equipment C&I. the the we there's up to I capital in the there's that of bit to from what's then small going do We'll quite was had through I see past this finances spending more November ticket done happen.

think those side happenings. There's activity I of the are And then on most going I CRE, in areas have upside are obviously, that, the flip on -- less us. that there's for the these think right?

these understanding things then And helpful. super That's time. it. take Got

on the Just your of especially updated board M&A, have get environment improved wondering the horizon. could accommodating light if potentially across more potentially regulatory clearly, in valuations and on thoughts we

to Just density be thoughts in. on potentially looking wondering, updated you'd or thoughts, any fill where add

going think on same focusing heightened and given a to we've on digital platform. number of standards building capabilities. We're focused building few opportunistic. We've Yes, major I in it's be answer We're going the now initiatives the to last out right quarters. be internally. going out We're the

is when so remember been to the that just off the and benefit table. a from that scale It's expand and That had quite with you we've put on. we M&A You us, the we focused met were we tackling. doesn't came right, that strengthen mean grow platform, that and we internally can bit

on market. a say I'd novo look opportunities and out Virginia We've basis. So in same. be de building the for opportunistic We'll it's been

So Northern Virginia. we've seen a lot of in announcements branch

been focusing coming think open online then in more to the on. near I we're Richmond, term. And we've

happening then we're in And Charlotte of building the largely the can kind market, Charlotte Carolinas, yet outside Charlotte. of that's of market, intercity the So out the city organically.

in at looking there. go opportunities we're to that So

So when de those small some bring good novo which business particular, us we perspective in a consumer expansion some channel. markets, I should from that a build opportunities Charlotte, out you'll think see in and

Understood.

You guys for internally. here. a model certainly have me, plenty refresher of just green shoots last Maybe question

doesn't $X us, million double On the to through correct? there carry the kind or about Can you're expense still a the change with timing does move you carry remind you've while is XXXX? in that to side, any that from plans Or of lease building? leasing. excess the expense Is new

about move planned fourth we've current carry that the Yes, quarter. is Kelly, of double pull This right. leases that move-in it's will Jim we Dutey. Yes. our on in Once in, date in. That's exactly 'XX,

So it's 'XX. not a carryforward in

with The Janney. next Brian Martin question from comes

remind the net on is building on you expense reduction, what the That property? that us and can

move. across of It's the a a our We we've Shore. here here locations spread people locations North in number of lot basically timing of lease X because

the started that which other into to November, was locations it in expense rent all on do that right, the paying these rent So building, we scheduled early we're if we're December timing, until shift on year. building, the the can this

that goes expense question with what rent So happens was, additional the that away.

now, right expenses, So right. we're double we've double --

slide, And the Brian, of a expense. we which move, $X not paying there's million rent but -- it's footnote had reckon. the rent we're we accounting actually just GAAP got from guidance XX, to -- period, for report double free the a on Slide

then up of been I you plateau? the any on begin the those kind to been guess, to cost, talk when But obviously funding far plateau you sense do deposit talked just on can they've kind of -- -- And guess give inflecting increase you of I rate expect cost -- do as of know the I just, cost about margin has narrowing. mean, the can Okay. the I as you deposits, here?

slowed I quite mean, to the a I definitely bit. little say. mean mentioned I CD a mix up hard has it's it's still shift bit. moving

if at what in deposit the XXX first [ if it if So you talking of slowed. I and that a you raise XX more keep that there's the of obviously, to ability September, [indiscernible] those have a it lot becomes the the is XXX was definitely to down. the to spot an again, a went on hopefully a on lot that's and I was cutting continue in at to of is earlier flexibility cut of -- that And an cutting ] about going [ costs in ability.... they're after there's there Chris does with through, went Slide look levers that, back, Fed cut end pieces pieces then ] And gives basis, has that expectation guess and the going it's if function total quarter. increase expectation, are all that play

don't look the deposits. the if in -- reduced their of seen But of number going at we've I'd promotional draw to deposit I you say see makeup competitors base, Like be a it's pricing not to increasing pricing. I said,

of shift. So function I more it's think a

hold we interest are to that migration. the So able the able to deposits we to right hold checking, able demand low-cost are without to be hold

slowed I outflows the have dramatically. think

lower seeing cost and more -- focused be initiatives that right? should initiatives right we're we the on, deposit So new New in, we're categories.

at help would a us, all function point. it's it think mix but of I So this

and XX% bit expect bit kind to that similar first our second guess we'd to peers. to a been up from versus here, has more gradually quarter. just We've than better standpoint, from beta I of Brian, the strong. probably a it beta what a And little go The very been did good peers

So just as another indicator.

Yes.

helpful. then for just That's one And maybe Okay. Gary.

paying I granularity testing, concerns On side, of there performance. things quarter, got credit all as very potential you're test and anything sound attention more and kind stress seeing just mean, just you anything alerted up it, good the a the maybe that's you the the every given stress closer coming But to from or sign do anything Gary, the is of to weakness it? -- credit

know, the quarter. every quarters as last you test, stress over Brian, and now, I think we X

seen X we've from Over and loss improvements a potential the charge-off perspective. quarters, last

showing improvement. results our test continued economy. those the goes aggressive that those show severe in very, through you positive migrate each and quarter reviews the current continue to as So to we managing the through that around really every is economy us for And book, very team know. updates and We're as all

you. Got

that's Yes, Okay. -- sorry, okay.

think last one me. maybe that's just question. for really modeling it I I guess

you did -- that was Or I I not there guys on think some was impairment that did mention mortgage hear quarter? this right? the that

$X the one million swings $X $X No, million million anywhere just one way. normal fair portfolio. all. million $X I $X value marks or mean, to other or any way that's on way overall million Brian, quarter-to-quarter, to And that the from

of it was kind pipeline. just the So hedging

question-and-answer our Delie concludes back over to turn I'd closing This like any J. remarks. session. Vincent to conference for the

answered we appreciate forward. your and everybody. you, great Thank we've We're you. Thank I questions. hope optimistic everybody's I interest very move as questions.

I opportunity. think great a had we

do in a position to were because in we previous that. the said after we we'll go As market call, share

a to to some execute think I great opportunity and we've forward drive year. as outcomes financial half in growth second create plans the positive we our pretty deposit the move of

of work thank hard and your know appreciate for who appreciate thank it really it. appreciate a of and you again, you listening. employees interest we all So you their to our and are lot I and all

Take So care. thank you.

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

disconnect. now may You