FNB Corp (FNB) 2010 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by.

Welcome to today's F.N.B. Corporation third-quarter 2010 earnings conference call. (Operator Instructions).

As a reminder, today's conference is being recorded. And now, I would like to turn the conference over to Cyndy Christopher, Manager of Investor Relations for F.N.B. Corporation. Please go ahead.

Thank you, Jamie, and good morning, everyone. Welcome to our third-quarter of 2010 earnings call. This conference call of F.N.B. Corporation and the reports it files with the Securities and Exchange Commission often contain forward-looking statements relating to present or future trends or factors affecting the banking industry and specifically the financial operations, markets and products of F.N.B. Corporation.

These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause F.N.B. Corporation's future results to differ materially from historical performance or the projected performance.

These factors include but are not limited to a significant increase in competitive pressures among financial institutions; changes in the interest-rate environment that may reduce interest margins; changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; general economic conditions; legislative or regulatory changes, particularly the recently enacted Dodd-Frank legislation; and the recently implemented Regulation E that may adversely affect the businesses in which F.N.B. Corporation is engaged; technological issues which may adversely affect F.N.B. Corporation's financial operations or customers; changes in the securities markets or risk factors mentioned in the reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission.

F.N.B. Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this call. As a reminder, a replay of this call will be available until Midnight on Tuesday, November 2, 2010, by dialing 877-870-5176 or 858-384-5517.

The confirmation number is 7793246. A transcript of this call and the webcast link will be posted to the shareholder and investor relations section of F.N.B. Corporation's website at www.fnbcorporation.com. It is now my pleasure to turn the call over to Mr. Steve Gurgovits, President and CEO of F.N.B. Corporation. Steve?

Thank you, Cyndy. Good morning, everyone. It is a pleasure to welcome you to our third-quarter earnings call.

Joining me today on the call are Vince Calabrese, our CFO; and Gary Guerrieri, our Chief Credit Officer. Vince will highlight our third-quarter performance, and Gary will review our asset quality.

Also with me today for the question-and-answer session are Brian Lilly, our Chief Operating Officer, and Vince Delie, our Bank President and Chief Revenue Officer. To begin, we are very pleased with our third-quarter results.

Earnings for the quarter were $0.15 per diluted share, representing an 87 basis point return on average tangible asset. We were again successful in growing both loans and deposits. Our margin was stable and we remained pleased with the credit quality results for our core portfolios.

In addition, we are very pleased to announce during the quarter the pending acquisition of Community Bank & Trust. This acquisition will bring our total assets to over $9.5 billion, making us the fourth largest Pennsylvania-based bank.

We will be adding 15 bank branches across five counties. This is a strategic market extension for us in Northeastern Pennsylvania that will enhance our existing presence in the attractive Scranton-Wilkes-Barre MSA, one of the larger markets in Pennsylvania.

This market extension will provide us a real opportunity to leverage our diverse products and services to both deep and existing customer relationships as well as attracting new relationships. Through our experienced commercial and retail bankers, we will offer our sophisticated wealth management, treasury management and private banking services, but also capitalize on commercial and retail lending opportunities.

Another attractive and strategic aspect of the deal is the further expansion of our footprint within the promising Marcellus Shale area. We are pleased with the terms of the acquisition and expect the merger to be immediately accretive to EPS.

With closing targeted for December of this year, our seasoned integration team is actively preparing for a successful transition. Also, we have had the opportunity to hold several meetings with the employees of Community Bank & Trust and we look forward to working with these talented bankers to enhance the already attractive franchise.

Now to discuss our third-quarter solid loan and deposit growth. During the third quarter, we continued to gain market share.

On a linked quarter or annualized basis, total average loan growth was 4.1% and average deposit and treasury management growth was 4.6%. Driving loan growth for the third quarter was 14.5% annualized growth in our home equity portfolio.

This growth reflects the success of an increased focus through our branch network with an offering of new products and promotional pricing initiatives. Let me remind you that consistent with our home equity portfolio strategy, these loans are branch originated.

Additionally, our core Pennsylvania commercial portfolio continued to grow for the sixth consecutive quarter. We are pleased with these results as loan demand remains soft and our commercial line utilization rate remains near historical lows.

Year-to-date, our commercial bankers have been successful in adding over 100 significant new client relationships. These are larger clients of our commercial banking units and resulted in over $345 million in new commitments year-to-date with related outstandings at quarter end of approximately $221 million.

This success is primarily attributable to the robust culling efforts of our commercial bankers. We expect these relationship building efforts to produce further benefit as we experience continued improvement in the economy and loan demand eventually increases.

We are also very pleased with the deposit growth we again experienced. Average deposits and treasury management balances grew 4.6% annualized and lower cost transaction balances grew 5.4% annualized linked quarter.

This growth reflects our ongoing success in new account acquisition combined with customers continuing to maintain higher balances. I would like now to turn the call over to Gary Guerrieri for his remarks on asset quality. Gary?

Thank you, Steve, and good morning, everyone. Looking at the third quarter, we continued to be very pleased with the overall performance of our Pennsylvania and Regency portfolios while Florida continues to perform in line with expectations.

Let's now take a brief look at each portfolio beginning with Pennsylvania. At quarter end, the $5.6 billion Pennsylvania portfolio represented 94% of F.N.B.'s total outstanding loans, with solid asset quality metrics that continued to trend favorably.

Charge-off performance for the quarter of 32 basis points annualized matched the prior quarter and remained in line with our historically good results, while delinquency improved 9 basis points to stand at 1.82%. Additionally, non-performing asset levels improved once again on a linked-quarter basis, reflecting the stability and solid performance of this portfolio.

Turning to Regency finance, we also continue to be pleased with the strong and consistent results of this portfolio with a loan book of $162 million at quarter end. Credit quality metrics showed continued ability as delinquency held at 3.97% and net charge-offs increased only slightly to 3.84% annualized.

The portfolio was well reserved at 4.2%. Moving to Florida, our primary focus continues to be the Florida land-related portfolio.

At quarter end, the total exposure of $94 million included $79 million in loans and $15 million in OREO, with the loan portion representing only 1.3% of F.N.B.'s total loan portfolio at the end of the quarter. The $4 million reduction in total exposure from the prior quarter was driven by charge-offs of $3.7 million.

The write-downs were primarily attributed to one credit which was transferred to OREO as we worked to liquidate the property. As you will recall, we had one large land credit remaining on accrual status.

During the quarter, we moved this $20 million loan to non-accrual. This credit remains current and was adequately collateralized.

However, there is some uncertainty regarding the borrower's ability to continue to remain contractually current. The net effect of the activity in the Florida land portfolio during the quarter resulted in a $16.8 million increase in non-performing loans plus OREO for that portfolio, now at $85.2 million.

I would now like to go into more detail with you on the reappraisal risk for the Florida land-related portfolio discussed during last quarter's call. We have updated approximately 30% of the appraisals on the land portfolio through the end of the third quarter and have seen property value reductions in the 20% to 30% range on a year-over-year basis.

During the third quarter, we continued our strategy to provide additional reserves to the portfolio while increasing the reserve position by nearly 200 basis points to 13.64%. We expect to see continued reductions in property values during the fourth-quarter reappraisal process but do not expect any impact to our provision for loan losses.

To mitigate the reappraisal risk, we continue to build adequate reserves and will be positioned to cover year-over-year price declines at the high end of the range. In summary, we were very pleased with the continued performance for our Pennsylvania and Regency portfolios while we continue to take actions to reduce our Florida portfolio exposure.

Across our footprint, we expect the Pennsylvania and Regency portfolios to continue to benefit from what has been a relatively stable economy as unemployment levels have remained below national averages and property values have held or experienced only slight reductions in our key markets.

The ongoing resilience of our regional economy and our consistent underwriting and risk management standards have served us well. I would now like to turn the call over to Vince Calabrese, our chief Financial Officer.

Thanks, Gary. Good morning, everyone.

We have addressed many of third-quarter details between last night's earnings release and the comments provided by Steve and Gary. Therefore, I will focus my remarks on a few additional highlights of operating results and an update of our guidance for the fourth quarter.

First, regarding acquisition of Community Bank & Trust, we are targeting closing in late December. Given this timing, we expect to record certain one-time costs during the fourth quarter.

As previously disclosed, we estimate total one-time costs of $6.5 million pretax, with about two-thirds of that coming in the fourth quarter. Regarding other impacts on fourth-quarter financial results, we expect to record normal purchase accounting on the balance sheet and minimal income statement impacts outside the one-time costs.

Looking ahead to 2011, we expect this deal to be accretive excluding any remaining one-time costs. Looking at our third-quarter performance ratios, we are pleased with the return on tangible common equity of 14.56% and a return on tangible assets of 87 basis points.

Additionally, we are pleased with the solid and consistent results for our business drivers, continued loan and deposit growth, stable margin and good credit quality metrics for our Pennsylvania and Regency portfolios. Now turning to the balance sheet, let's begin with loans.

As Steve mentioned, we generated solid loan growth of 4.1% annualized in the third quarter, driven by growth in our home equity portfolio. For the fourth quarter, we look for growth to be in the low single digits.

This excludes any impact from further reductions in the Florida portfolio and is based on our expectation that the economic recovery continues at the current pace. Looking at the funding side, we are pleased with the solid third-quarter total annualized growth in deposits and treasury management balances of 4.6%.

Looking ahead to the fourth quarter, we expect total deposit and treasury management balance growth to be in the low single digits with an improved funding mix as we continue to manage controlled decreases and time deposits as they reprice. During the third quarter, the margin expanded 1 basis point to 3.78%, taking into account that the second quarter margin included a four basis point benefit, and certain non-accrual loans returning to accrual status that we discussed last quarter.

Therefore, as adjusted, the third-quarter margin was stable as expected compared to the prior quarter and we continue to manage our interest rate risk position to remain neutral. Given this, we look for the margin to remain stable at the current levels in the fourth quarter.

Non-interest income totaled $27.8 million for the third quarter. There were increases in other fee income categories that offset the Reg E impact on service charges.

Positive results were demonstrated by increased swap fee revenue as well as higher gains in title insurance commissions given the increased residential mortgage volume for the quarter. When excluding $600,000 in OTTI charges and the $1.6 million gain harvested in F.N.B. Capital Corporation from the prior quarter, non-interest income increased 4.0% annualized for the third quarter.

On the topic of Reg E, the third-quarter decline in service charges reflects the impact on overdraft fee revenue for one and a half months. We are continuing with our opt-in efforts through a variety of channels.

Based on our results through the end of the third quarter, we affirm an estimated impact for 2010 of about $0.01 per share with about two-thirds of this expected to affect the fourth quarter. We expect total non-interest income for the fourth quarter to be consistent with the third quarter, taking into account normal seasonal fluctuations in fee income and excluding expected Reg E impact.

Turning to non-interest expense, the linked-quarter increase reflects higher costs related to consumer loans volume that was higher and higher Florida related OREO costs. Additionally, higher personnel costs are primarily due to commissions tied to increased insurance and mortgage related revenue that we realized during the quarter.

The efficiency ratio for the third quarter was 61.5%. We project a similar efficiency ratio for the fourth quarter.

Gary provided an excellent overview of our credit quality. We are pleased with the third-quarter delivering solid credit quality results for our Pennsylvania and Regency portfolios.

Looking ahead to the fourth quarter, we expect the provision to be consistent with the third quarter as we continue to reserve for the Florida land reappraisal risk as Gary discussed earlier. Given the number of reappraisals due in the fourth quarter, we do expect increased charge-offs flowing through the Florida allowance as we right-size the remaining components of the land portfolio and thereby utilize a portion of the allowance allocated for this segment of the portfolio.

Regarding our capital position, we expect our capital ratios for the fourth quarter to remain consistent with current levels, continuing to exceed well-capitalized thresholds. Steve, that completes my remarks.

Thank you, Vince. Again, we are pleased with our solid third-quarter results and with the pending Community Bank & Trust acquisition.

Our loan and deposit growth and healthy fee income continues to reflect the successes of our efforts, initiatives and diverse products. Our team has a dedicated focus on new client acquisition as well as deepening client relationships through cross-selling opportunities that provide value to our clients.

We have invested in initiatives such as our advanced sales management platform to enhance our success as relationship bankers. I would now like to take this opportunity to provide and update on our consumer finance subsidiary, Regency Finance.

Regency Finance with 56 branches, $162 million in loans at quarter end and year-to-date return on equity of 32.8% is one of our most profitable subsidiaries. Due to the success of Regency and recent competitive disruption, we are pleased to announce plans to open eight de novo branches, one in Tennessee scheduled to open in November and seven in Northwestern Kentucky.

Kentucky is a new state for us to operate in and strategically aligns contiguously with our current Regency footprint of Pennsylvania, Ohio and Tennessee. We target these seven Kentucky branches to begin opening in December of this year.

That concludes our formal remarks and I would now like to turn the call over to the operator to poll the audience for any questions.

(Operator Instructions). Damon DelMonte, KBW.

Just wondering, you guys referenced a couple times the Comm Bank deal closing in December. Just if you could just give us a little bit more of an update, how is the regulatory process progressing there? Are you anticipating any types of holdups at all from getting approval?

No, Damon, not really. Everything is progressing as planned. We are actually targeting December 17 for the closing.

We have had good communications in meeting with the employees. Everybody understands the direction we are moving, and we do not expect any problems from the regulatory environment to change that in any way at this point.

Okay, great. And then just kind of the last comment you made about Regency and the new branches that will be coming on, can you give us some expectations as to how big you think you can grow those branches and what that would mean for the percentage of loans outstanding that Regency would represent of your total loan book?

Well, just for background, we would love to expand Regency. There are two ways to do it. One is through acquisition, and we've looked at a number of companies.

But frankly, we are very particular in the type of company we would be interested in, and we haven't found too many opportunities over the years to expand through acquisition. The other way to expand, which is what we are going to do, is if we can find people in local markets with the consumer finance experience, then we will open a de novo branch around that person as a manager.

And typically, at about $1.5 million to $2 million in outstandings, that would be a pretty typical Regency office. So if we are going to open seven or eight branches, we would expect over time that those would be -- have outstandings probably $2 million, maybe $2 million plus over time.

Okay, that's helpful. And I guess -- I will go back in the queue in case there's other questions. Thank you very much.

Frank Schiraldi, Sandler O'Neill.

Just a few quick questions. I'm just wondering on the treasury management balances, is there any breakout you have or you can give on the linked quarter growth, new business wins versus just higher balances?

The mix of the balances we brought in this quarter are about 40% new business and 60% increased balances from existing customers as customers are continuing to carry more cash at the bank. But a good 40% of it is still coming from new wins.

Okay, thanks. And on a home equity product as well, I guess sort of a similar question. Is it mostly new lines or is it some increase in line usage as well?

It is primarily new lines. There is some incremental lift from existing customers in terms of usage.

We ran several promotions. The promotions required that they be a new borrower or that they have an outstanding balance above a certain threshold of new money.

Okay. And I'm just curious in terms of if you have it, usage on the home equity portfolio, say, year over year, if it's climbed, where it's climbed to.

It's about 56% right now. I say if we look back a year, maybe it's 52%, 53%. So it's moved up a little bit.

Thanks. Finally, Vince, just given your guidance for 4Q on the stabilized margin, what do you think looking out a bit further in terms of 2011 -- do you expect you can hold the margin near these levels or do you expect some contraction?

I would say you know, as we look at interest-rate risk, as we have said in the past, we continue to manage to be neutral so that we don't have much impact from rates up or down. And as we sit here today, we still have $350 million or so of CDs that reprice at quarter, and we pick up on those.

Investment portfolio, there's about $150 million that reprices down about 50 basis points. So there's kind of leverage going on in the margin that we feel pretty comfortable as we look out the next couple of quarters that there's things there that, depending on what happens with rates, we should be able to manage to.

Now, we will provide more robust guidance in January. We are going through our planning process right now. But as I sit here today, I'm kind of comfortable that there is still enough moving parts to protect the margin.

Okay, thank you very much.

Jason O'Donnell, Boenning & Scattergood.

Just a few questions here. On the loan portfolio, what is the size of the asset-based lending portfolio at this point, and has that team remained on track to hit their target by year-end?

It is actually $70 million, and they have achieved their objectives for the year.

The original objective was $40 million?

Yes (multiple speakers) price.

And is that production or is that balance or what is that target?

That is actually -- it's average balance.

Okay. Wow, okay, great. And I guess on the expense side, I apologize if I missed it, but how much were M&A related costs this quarter?

There weren't any this quarter. I said in the fourth quarter we expect to have about two-thirds of the $6.5 million in one-time costs for CB&T that would hit in the fourth quarter.

Okay. And I guess just -- can you just tell us how much the total OREO expense was for the third quarter versus the second quarter?

It was about $1 million. It was $400,000 last quarter. It was up $600,000 second quarter to third quarter.

Okay, and was that all maintenance or are there some property value adjustments in there as well?

No, there were some property value adjustments related to Florida. The increase was really all Florida related. And there's carrying costs in there, but the differential is mainly additional loss on some properties.

Okay, great. And I guess just one more. Can you just give us an update on the size of your criticized assets pool and kind of what the trend has been there?

In terms of that internal number, Jason, we don't disclose the internal number. But it has been trending downward a little over the last couple of quarters.

As well as delinquency.

As well as delinquency, yes.

Okay, thanks.

(Operator Instructions). Mac Hodgson, SunTrust Robinson Humphrey.

Gary, just wanted to follow up on Florida. Just wanted to be sure I can understand how we think about the reappraisal process.

So you are through 30%. You've got I guess the rest to go. But you seem to imply that you wouldn't expect any sort of negative provision impact as a result of the reappraisals even if they come in at the high end of that range?

That's correct. Based on the provisioning that we've done and our analysis of anticipated price reductions, we do feel that we have it covered at the high end of the range based on where we stand.

Okay, great.

That is why for the last couple of quarters we've been -- our provision has been at the rate it has been.

So I'm assuming we should expect as we get into next year after all these -- the Florida loans have been reappraised for provision to come down? That could be meaningfully?

I think our guidance earlier in the year was that we expected non-performers to peak sometime in the third quarter and begin to gradually decline after that and then our provision this year would be less than last year. Obviously, we are -- to Vince's point, we are in the throes of our planning process for our financial plan for next year. We'll have more information on that in our January call relative to 2011.

Okay, great. And what about kind of the disposition process in Florida? I think you mention you sold a couple loans down there. How is the market for trying to sell OREO and non-performing loans? And how quickly do you think you can get the balances out of the bank?

We continue to analyze all options in the market, and that includes the secondary market. We did sell another three loans during the third quarter for about a little over $2.5 million. Those were sold at par.

That follows up on the prior quarter when we had three loans sold as well. So we will continue to explore those opportunities.

We are also working the non-performing asset base very diligently. We are in a number of discussions with some end purchasers and we also continued to monitor the secondary markets for price movements there.

We are not going to dump these properties into the secondary market where it's not economically beneficial. And we will continue to manage that as we move forward.

Gotcha. Steve, maybe just one last one on M&A.

I know you've said in the past that kind of the preference is to be on the front end of the M&A wave just to take advantage of better pricing. You guys obviously have the deal you announced earlier this quarter.

How is the market for additional deals? Is there dialogue going on? It seemed like additional institutions are receptive and just what's kind of the outlook on the M&A front?

Well, I think it's probably consistent with what we said earlier with all the regulations likely come out of Washington now with the financial reform, with perhaps our captial requirements, maybe increased regulatory scrutiny, I would see -- and Pennsylvania is very unconsolidated. So I would see in Pennsylvania in particular a number of opportunities.

But having said that, F.N.B Corporation will be very selective in who we try to affiliate with. It's going to depend on where their markets are, how attractive those markets are, and if we can get the kind of pricing that makes it create value for our shareholders.

I think there's probably a lot of discussions going on in the state, probably a lot of boards of banks in the state considering what their options should be going forward. I would expect in '11 and '12 that there would be increased activity.

Okay, great. Thanks.

Mike Shafir, Sterne Agee.

I was just wondering, in terms of timing of the acquisitions at the end of the quarter, so I'm assuming in terms of the average earning asset base, you're going to get very limited upside from the acquisition in the fourth quarter?

It won't close until probably around the middle of December, like the 17th is what we are shooting for.

And then just along those lines, as we think about the income statement impact on the margin from that institution, their margin is quite a bit lower. So I was just wondering if maybe you guys can give any thought as to the initial impact of that margin before maybe it starts to grow again or stabilize.

I would say as we look ahead to next year as part of the planning process, we will work that into our guidance in January really, because we're in the process of strategizing what we are going to do with their balance sheet as far as the securities portfolio and how much to keep and exit.

Okay, thanks, guys.

And overall, again, the deal is going to be immediately accretive to earnings. So when you look at net-net, it will have that positive impact right out of the gate.

Okay. Thank you.

If I could also clarify, Jason had a question on the OREO increase second to third quarter. About half of that was provisioned for OREO, and the other half was carrying costs. I just wanted to clarify my answer on that, the $600,000 increase from second to third quarter.

Andy Stapp, B. Riley & Co.

Was the $3.5 million Florida charge-off that you referenced in your earnings release, was that a land loan?

It was a land loan, Andy, yes. That was moved to OREO.

Okay, yes. And you believe that the NPAs peaked in Q3?

Andy, we look -- when we look at the portfolios, taking a look first at the Pennsylvania portfolio, non-performers continued to improve during the quarter, down $2.5 million over the prior quarter after a $3.5 million decline in Q2. When you look at that, we are comfortable with those levels at this point and the direction of that non-performing asset pool with where we are positioned in the economy.

Looking at Florida, all of our large land exposures are now in non-performing status. As we mentioned, we continue our efforts to reduce them as we move forward. The land portfolio continues to be a small piece of the total and we are working diligently to remove those assets from the book. So that is the position of the portfolios at this point.

Okay, thank you.

Jake Civiello, RBC Capital Markets.

Can you provide us with any perspective as to the current economy in Florida as it relates to your markets and then what's the long-term strategy for the Florida market?

In terms of the economy, it continues to remain challenging. There are a lot of assets moving through that system down there.

And the economy continues to be one that is going to take a little bit of time to turn itself around. In terms of our strategy, we are going to continue to work these assets on an individual basis and look for opportunities to move them where it's economically feasible from the bank's perspective. And we will continue to do that as we work down that portfolio. That is really the bank's focus at this point.

Is to run down that portfolio.

That's correct.

And then one other question just would be, how large would you be willing to allow Regency to become as a percentage of revenues for the total company? Is 10% of total revenues, I mean, 20% --

It's interesting. Back in -- if I take it back to the 70s and 80s, it used to be about 10% of our Company in terms of assets.

Obviously, it hasn't kept up with the growth of F.N.B. as F.N.B. has grown through -- both organic and through acquisitions. So I don't think we have a specific limit, but I don't think Regency is going to grow to the point where that is something we have to deal with internally.

Obviously, with its strong performance, it is a subsidiary we would like to expand. And that is why we are taking the action that I announced this morning.

Great, thank you.

David Darst, Guggenheim Partners.

So are you seeing a little bit more deterioration in the non-land portfolio in Florida? It looks like maybe NPAs are up to 10% versus 4% last quarter.

No, we've actually seen no movement in that portfolio, and actually that portfolio, which has performed very, very nicely, continues to perform in that fashion.

Can you give us some characteristics of what the typical loan looks like in that portfolio?

Yes. Generally speaking, it is an anchor-centered retail strip with a very solid occupancy in the 90% plus range. Cash flows in that portfolio are in the $125 million plus range and those properties have held very well and have been very stable.

Okay. And as far as the NPAs, you've got total NPAs of $93 million in Florida. When you say you've got no NPAs in that portfolio, you're comparing just non-accrual loans of $71 million to (multiple speakers) $79 million land loan?

If I can just correct that, in terms of the total NPAs, there are a few NPAs there that total about $9 million. Those non-performing assets have been there and we are continuing to work those down. About half of that is one remaining condo project which we are negotiating a sale on at this point.

Okay. Is there a limited amount of condo exposure, then, or is there a little bit more?

That is the only condo exposure that we have remaining in the portfolio.

Okay, thanks. And, Steve, as you focus on your M&A strategy, could you give us an idea of what your current equity goals are for the Company over the next couple of years?

Was your question return on equity goals for F.N.B.?

Correct.

In a normalized credit environment, we would expect to be in the high teens return on tangible equity.

Do you worry about return on equity or are you just focused on the tangible component?

Well, right now, we are focused on return on tangible equity and we also focus on in our return on tangible assets, which this Company ought to be able to do hopefully in normalized conditions somewhere in the $115 million, $120 million range.

Okay, thank you.

That is all the questions we have. Steve, I'll turn it back to you for closing or additional remarks.

Okay, thank you. We certainly appreciate your participation and your attention to us this morning. I would like to thank everyone for joining us and your continued interest in F.N.B. and have a good day. Thank you.

Ladies and gentlemen, that does conclude our conference for today. We thank you for your participation.