FNB Corp (FNB) 2012 Q1 法說會逐字稿

Good morning, ladies and gentlemen, thank you for standing by. Welcome to today's F.N.B. Corporation first quarter 2012 earnings conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions.

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

Thank you and good morning, everyone. Welcome to our first quarter of 2012 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. All forward-looking statements involve risks, uncertainties and contingencies that could cause F.N.B. Corporation's actual results to differ materially from historical or projected performance. Please refer to the forward-looking statement disclosure contained in our first quarter of 2012 earnings release and in our reports and registration statements F.N.B. Corporation files with the Securities and Exchange Commission and available on our corporate website, www.fnbcorporation.com. F.N.B. Corporation undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date of this call.

A replay of this call will be available until midnight on Tuesday, May 1, 2012, by dialing 877-870-5176 or 858-384-5517 and the confirmation number is 2173145. Additionally, a transcript of this call and the webcast link will be posted to the shareholder and investor relations section of our corporate website. It is now my pleasure to turn the call over to Mr. Vince Delie, President and Chief Executive Officer. Vince?

Thank you, Cindy. Good morning, everyone. It is a pleasure to welcome you to our first-quarter earnings call. Joining me today on the call are Vince Calabrese, our Chief Financial Officer; and Gary Guerrieri, our Chief Credit Officer. I will be highlighting F.N.B.'s first quarter achievements and financial results. Gary will then review our asset quality, and Vince will provide a more detailed review of our quarter's results and provide an update on our outlook for the remainder of 2012.

Looking at results for the first quarter, earnings were $0.19 per diluted share when excluding merger and severance costs. This represents a 104 basis point operating return on average tangible assets.

We continued to achieve positive results from our key drivers. Our portfolios expanded through successful organic loan and transaction deposit growth, and asset quality results were very good, reflecting a continuation of positive trends. And importantly, the net interest margin of 3.74% was in line with our expectations as we assimilate Parkvale's balance sheet with F.N.B.'s. Total loans grew organically for the 11th consecutive quarter, driven by organic growth in the Pennsylvania commercial portfolio of 5.3% annualized.

We remain focused on new client acquisition, an important component of our growth strategy, and our team of commercial bankers continue to add clients through robust calling efforts and disciplined sales management. The success of these efforts is apparent in our consistent growth.

Consumer loan results reflected softer demand and lower volume, which we typically see in the early months of the year. We saw increased demand and volume towards the end of the first quarter, and we entered the second quarter with a healthy pipeline.

Turning to deposits, linked-quarter organic growth and lower cost transaction accounts and customer repurchase agreements was strong in the first quarter. These average balances grew nearly 9% annualized through new account acquisition combined with customers maintaining higher average balances.

Now to discuss the Parkvale acquisition in the Pittsburgh market, the acquisition was completed on January 1. The conversion and integration have gone very smoothly and we are pleased with the operating results. As part of our efforts to achieve planned cost savings and optimize our branch network in the market, 16 branches have been consolidated. In addition to the consolidation, we also recently opened three de novo locations in the Pittsburgh region. These locations provide coverage in key strategic areas with attractive demographics and significant commercial, private banking and Wealth Management prospects. This brings our total Pittsburgh regional branch network to 100 locations.

Our lines of business are fully consolidated into a regional headquarters on our North Shore campus, which currently houses over 150 F.N.B. team members. We continue to attract talented bankers and have added commercial bankers and key Wealth Management and insurance professionals. We feel we are now well positioned in this market. With the acquisition-related expansion in the eastern portion of the city rounding out our franchise, F.N.B. is now uniquely differentiated as one of very few banks close to our size to hold a top three market position in a major metropolitan market. The Pittsburgh MSA, one of the largest markets in the US, ranks 22nd based on population and is 16th largest based on deposits. We are very pleased with the early-stage results we are seeing following this acquisition.

Now I'll turn the call over to Gary for more detail on our asset quality results.

Thank you, Vince, and good morning, everyone. We had another positive quarter from a credit quality standpoint with our overall key credit metrics remaining at good levels and continuing to trend in a positive manner. For the completion of the Parkvale acquisition, our portfolio is positioned slightly better than we expected and our credit quality metrics ended the quarter on the positive end of our planned ranges. In addition, the credit mark also in line with our estimates, validating the effectiveness of our due diligence process.

As you are aware, our CB&T and Parkvale-acquired portfolios are accounted for under fair value rules. Thus, we will focus our credit quality discussions with you between the originated and acquired loan books.

With that said, I would now like to walk you through some key metrics for the Company as it relates to the originated portfolio. We started off the year with a solid first quarter with net charge-offs at a very good level of only $5.1 million for the originated portfolio, or 32 basis points annualized. When compared to the first quarter a year ago, net charge-offs are better by $1.5 million or 15 basis points on an annualized basis, which reflects solid performance in the Pennsylvania consumer portfolio and no write-downs in our Florida portfolio. Delinquency continued to trend in a positive manner during the quarter to stand at 2.03%, representing a 4-basis-point improvement over an already good year-end level of 2.07%.

When compared to a year ago, the delinquency level for the current quarter is down 59 basis points and is the result of reductions in Florida as well as our Pennsylvania commercial portfolio, each experienced improvements in each delinquency category. When excluding Florida, our delinquency at the end of the quarter was a very solid 1.47% and was better than year-end levels by 4 basis points, or when compared to the similar period a year ago, better by 30 basis points.

Nonperforming loans plus OREO ended the quarter at 2.22% as compared to 2.15% at year end, with the increase attributable to the addition of $6 million in OREO from the Parkvale acquisition. Excluding the Parkvale OREO, the level of NPLs and OREO would have improved by 2 basis points to 2.13%. The reserve position of the originated portfolio was relatively flat for the quarter, to stand at 1.55%.

Let's now discuss our acquired loan portfolio which, as mentioned earlier, has been marked to fair value. The portfolio ended the quarter at approximately $1.2 billion with Parkvale accounts comprising nearly three quarters of that amount. The accounts in our acquired portfolio that are contractually past due totaled $61 million at quarter end, as Parkvale, one of our larger acquisitions, added nearly $40 million. As mentioned earlier, these results are better than expected.

Shifting to Regency, this $158 million portfolio demonstrated continued solid performance during the quarter with delinquency reaching a very good level of 3.68% and net charge-offs at only 3.56% annualized for the quarter, sustaining the long-term trend of this portfolio.

Turning next to Florida, we made additional progress during the quarter by reducing the loan portfolio to $136 million, which we achieved through principal paydowns of nearly $19 million on several credits, a 12% reduction in the portfolio. The level of nonperforming loans and OREO was also down following the sale of two properties in OREO near their carrying value, a $1.4 million reduction. We are also very pleased to report that subsequent to the end of the first quarter we sold the majority of the real estate, approximately 450 parcels, which secured our largest land project, and are anticipating settlement later this week. This credit, which at $14.4 million is the largest nonperforming loan in the Bank's total loan portfolio, will be reduced by approximately $13 million. Only a few of the parcels will remain in our possession, and upon final sale, we expect to exit this credit with a relatively minor write-down for which we have adequately reserved. In addition, we are continuing to see interest in investor activity at a somewhat accelerated pace across the Florida marketplace.

As we reflect on our performance, we are pleased with the progress that our team has made over the last several quarters. During this time, we've guided our Pennsylvania and Regency portfolios through a challenging economic environment, worked out a number of credits in our Florida portfolio to reduce our exposure and acquired two books of loans that at this point have performed better than we expected. The positive activity that we have been experiencing in each of our portfolios reflects on the strength of our banking teams, our commitment and passion for managing risk and our sound and consistent approach to underwriting through the various stages of the economy.

I would now like to turn the call over to Vince Calabrese, our Chief Financial Officer.

Thanks, Gary, and good morning, everyone. As Vince discussed, first-quarter results were $0.19 per share on an operating basis when excluding merger and severance costs. These results provide a positive start to the year, reflecting solid performance from our key drivers and the successful completion and integration of the Parkvale acquisition. I will focus my remarks this morning on additional highlights of our operating results and expectations for the remainder of the year.

Regarding our outlook for the remainder of the year, given that the first quarter's results were in line with our expectations, we will be reaffirming the guidance we provided on our call in January.

Now turning to the balance sheet, the acquisition of Parkvale contributed to our overall increased balance sheet size during the quarter. And with this in mind, I will focus on organic results we delivered for loans and deposits. Looking at loans, the first quarter marks the 11th consecutive quarter of total organic loan growth and the 12th consecutive quarter of organic growth achieved in the Pennsylvania commercial portfolio. Total organic loan growth of 1.4% annualized was supported by solid linked-quarter growth of 5.3% annualized in our Pennsylvania commercial portfolio.

We continue to see positive results across our footprint, particularly in our Pittsburgh, northwest Pennsylvania and Ohio markets. Additionally, the growth is a result of market share gains as our commercial line utilization rate remains stable at historical lows. For the remainder of 2012, we reaffirm our expectation for full-year organic loan growth in the mid-single digits translating into a total expected increase in the loan portfolio in the high teens following the addition of the Parkvale balances.

While our securities portfolio was a bit lower than normal at the end of last year, we have built it back up during the quarter to a more normalized level at period end. We would expect it to track close to the quarter end level during the second quarter.

On the funding side, organic growth for total deposits was 1.4% annualized, with solid growth of 8.9% in relationship-based transaction deposits and customer repurchase agreements which were partially offset by a continued managed decline in time deposits. We continue to focus on growing transaction accounts and customer repos with these balances supporting our net interest margin and deepening client relationships.

For the remainder of the year, we continue to expect full-year organic growth and transaction deposits and customer repos in the mid-single digits, to be partially offset by a planned decline in time deposits. This is expected to result in organic full-year growth in total deposits and customer repos in the low-single digits and the high teens when taking into account the Parkvale acquired balances. We are very pleased that the first-quarter net interest margin of 3.74% was in line with our expectations. Consistent with our forecast, the net interest margin narrowed 5 basis points, primarily as a result of beginning to assimilate the Parkvale balance sheet into F.N.B.'s.

As previously communicated, the Parkvale acquisition is forecasted to narrow the core F.N.B. margin by 10 to 12 basis points in 2012. We expect to minimize this impact and the effect of the extended low interest rate environment through continued improvements in our funding costs and deposit mix as well as our overall balance sheet management strategy. And, as with all of our acquisitions, we will be actively managing the margin to become more in line with F.N.B.'s core margin over the next few years.

That being said, we reaffirm our expectation for a full-year margin in the mid-3.60s.

Non-interest income increased 9.1% in the first quarter excluding the gains on sale of securities from the prior quarter. The improved service charge revenue reflects the benefit of our larger franchise following the addition of Parkvale and increased insurance commissions and fees were primarily due to seasonal contingent fee revenue. Wealth Management revenue also increased as a result of improved market conditions and Parkvale-related revenue.

For the remainder of 2012, we are targeting a full-year increase in run rate non-interest income in the mid teens, reflecting strong growth for core F.N.B. in the mid-single digits.

Turning to non-interest expense, the first quarter included Parkvale's expense base, $7.6 million in merger and severance costs and seasonally higher personal costs, while the prior quarter included the FHLB prepayment penalty of $400,000 in merger costs. As we enter the second quarter, we are beginning to realize the full cost saves from the acquisition. Looking forward, we are targeting a quarterly non-interest expense run rate in the $77 million to $79 million range, trending down towards $76 million by year end. This translates into an expected full-year efficiency ratio in the high 50% level. Expense control always remains a key operating strategy for us.

Switching over to credit quality, as Gary discussed, we are very pleased with the first quarter's results. Looking to the remainder of 2012, we expect overall credit quality to demonstrate continued solid performance. Provision for the first quarter was better than we expected, driven by net charge-offs that were significantly better than what we expected. Since one quarter does not make a trend, we continue to believe the provision will be consistent with prior-year levels as we support plan loan growth. This would equate to a provision level of approximately $8 million per quarter for the remainder of the year.

For taxes, we continue to expect an effective tax rate in the normal 27% to 28% range on a GAAP basis for 2012.

Lastly, looking at our capital position, levels at the end of the first quarter reflect the Parkvale acquisition consistent with our original projections. The CCE ratio at quarter end exceeds the year-ago level or pre-capital raise level, and we expect to return to year-ago levels for the risk-based ratios in the next 12 to 18 months.

Now I would like to turn the call over to Vince for his closing remarks.

Thank you, Vince. The first quarter was a positive quarter for F.N.B. and a strong start to 2012. Results reflect the execution of both our organic growth and acquisition strategies. We continued to grow loans and deposits, manage the net interest margin in a challenging rate environment and manage to an overall lower risk profile to deliver solid credit metrics.

Looking ahead, we have positive expectations for F.N.B. We have substantial momentum built and we continue to see solid pipelines. Our fee-based businesses are also gaining momentum. We have taken actions that, over time, are expected to deliver improved profitability for both our Wealth Management and Insurance platforms.

On the technology front, we are slated to roll out our e-delivery strategy in the third quarter of this year. Our investment in a quality, integrated delivery platform for online banking, mobile banking and bill pay will enhance client acquisition and retention. It will also provide more cost-efficient delivery and improved profitability. We are excited about the initiative and the positive benefits for F.N.B.

In closing, we are pleased with our start to 2012 and we're positioned to achieve future success. I would like to now turn the call over to the operator for questions.

Frank Schiraldi, Sandler O'Neill.

Good morning.

Hey, Frank.

I wonder if you could just drill down into commercial loan growth. You talked about a pickup in the pipeline late in the quarter and early in the second quarter. Are you seeing that on the commercial side as well?

We have seen -- as we moved through the pipeline in the last quarter of 2011, we had a fairly robust quarter. So what typically happens is, as we move the credits through the pipeline there's a rebuilding effort that occurs. And we have seen that in the February-March time period. So the pipelines have been building back up again. The pipeline that we referred to in the call was basically the consumer pipeline, and we have seen an elevation in activity that is fairly significant. That's not uncommon. There's quite a bit of seasonality in that business, and typically the first couple months of the year are slower than other portions of the year. So March was pretty strong and the pipeline has continued to build.

Got you. Okay, and then just looking at the environment in general, what is driving commercial loan growth? Is it more increases -- are there increases in line usage at this point, or is it more business wins from others?

I would say we continue to see business wins from others. We have also seen some limited capital spending occurring in the marketplace. Line utilization, however, has been flat for us. We haven't seen an increase in line utilization, and I would expect that as we continue to move through this cycle and there is some uncertainty on a number of fronts, I think the companies have been running a little tighter from a working capital standpoint. So you are not seeing inventory expansion like we've talked about in the past. So I think they are running a little leaner, a little more cautious. So we are not seeing that lift that you'd normally see in line balances, but we have seen some CapEx spend here and there. So we are getting a little bit of benefit from that.

And we are also getting benefit from many of the hires that we've made over the last few years. We've invested fairly heavily in talent on the commercial side of our organization, and we're really reaping the benefits today. So we continue to expand our market share.

Okay, and then a question on the margin -- Vince, you had mentioned that with Parkvale included, basically the combined margin is 10 to 12 basis points below where F.N.B.'s margin was. I think that's just a reiteration of what you said before. How do we look at that in terms of a Q2? Is it fair to look at the second quarter and then say we may be 10 to 12 basis points below where F.N.B. was prior to Parkvale in the fourth quarter?

Yes, I would say that the 10 to 12 basis point is reference to the kind of year as a whole. The first quarter has some noise from re-leveraging the balance sheet. As you know, we reduced the balance sheet quite a bit in the securities portfolio at the end of the year. So we didn't fill that all the way back up until the end of the quarter, so that naturally will cause the margin to come down some so that the 10 to 12 relative to the second quarter, relative to the year as a whole is pretty reasonable.

Okay, great. And then just --

I would clarify, Frank, off of the fourth quarter, which was 379.

Right, okay. That's helpful, thanks. And then just, finally, I just wanted to ask a more general question on M&A, your thoughts, Vince, on future M&A for F.N.B., and then maybe remind us of some of your thoughts on acquisition parameters.

Okay, well, we continue. The same team that was in place over the last several acquisitions is still here, so -- for the most part. So we plan on continuing to pursue opportunities as they present themselves. And I would say we really haven't changed course in terms of acquisition or acquisition strategy. I will tell you that we continue to focus on improving earnings as we move forward, so accretion is very important to us. We look for accretion within the first year of an acquisition. We also look for rebuilding capital levels that may occur through diminution. So we are very focused on that. And as you know, we are an efficient user of capital and we will continue to be that way as we move forward. So hopefully, improving the profitability of the Company, increasing our equity position through retained earnings and getting us into a range where we can continue to pay a healthy dividend, so we are targeting a dividend payout ratio in that 60% to 70% range.

So that's our strategy in a nutshell. I've included some of our capital management strategies as well.

I'd also comment, too, that to the extent there's any diminution of capital, we focus on a 12- to 18-month period to be able to recoup that. So it's really pretty short.

Okay, and then just in terms of M&A, though, is it fair to say at this point, as it goes for Western PA, for the Pittsburgh region, you are sort of where you want to be in terms of bulk and you are going to focus de novo growth from there? And maybe if M&A is something you look at, you may be looking at areas other than Western PA? Is that fair or not really?

Well, I don't know. We will obviously have to evaluate the landscape. I think if there's an opportunity to purchase an enterprise in the Pittsburgh market that provides us with good accretion where we can take cost out that even further rounds out our delivery channel or bolsters our market share, that's something we may consider. So adding to our existing franchise is of interest to us in all of the markets and expanding eastward and possibly into eastern Ohio -- those are the areas that we've commented on in the past. And I would say that continues to be of interest to us.

Okay, great, thank you very much.

Bob Ramsey, FBR.

Hey, good morning, guys. This is Tom Frick for Bob. I just had a quick question on the expense line. How much of the increased this quarter was from seasonal increases?

Well, the first quarter -- the bulk of the increase in the -- in the expenses is really the merger-related, as I mentioned that was close to $6.8 million. The seasonal increases that happened as we reset payroll taxes is probably around $0.01 per share, $0.005 to $0.01 a share, to throw out a figure.

Okay.

And that kind of works down as you go through the year.

Okay, great. And then kind of going to the Parkvale acquisition, I was kind of curious to find out what kind of loan growth and deposit growth are you seeing from the former Parkvale branches, more specifically on the loan side?

Well, we've had some great success with a number of the locations. Obviously in the eastern portions of Pittsburgh where we really didn't have great coverage, we've seen some lift. We've seen some lift with our existing branch network, as well as a number of their locations. Commercially, we were very successful in recruiting some additional commercial bankers to cover the eastern portions of the city into Westmoreland County. So we've had some great success there as well. The pipelines are building and we are very, very pleased with what we are seeing early on.

Okay, great, thanks, that's all I had.

Damon DelMonte, KBW.

Hi, good morning, guys, how are you.

Hey, Damon.

My first question deals with the provision. So Vince Calabrese, I think you mentioned that you are expecting about $8 million per quarter provision for the remainder of 2012. Is that correct?

Yes.

Okay, that's a little bit higher than what we saw this quarter. But I think in your earlier comments you guys noted you are expecting credit trends to continue to improve. Is that correct?

Yes. No, that's correct. And I would say, Damon, that the first quarter, the charge-offs overall were really a lot better than what we expected. So you need to see a couple quarters of running at that level before I would want to start baking that in. We would expect second quarter to be more normalized, which would translate into, second to fourth, an $8 million provision per quarter.

In addition, a piece of that provision, Damon, also supports the growth expectations of the Company through the remainder of the year.

Okay, great. And then I guess with regard to the impacts of bringing Parkvale on, did the amount of intangibles that came on -- was that in line with what you were expecting? It seemed like the reported tangible book value number this quarter was a little bit lower than what we had modeled.

The marks were very close -- credit mark, core deposit intangible. The time deposit was probably a little bit larger because rates were lower at the end of the year than they were back in June, so maybe a little bit higher overall, but not significantly.

All right, that's good. All right, that's all that I had, thank you very much.

(Operator instructions) Jason O'Donnell, [CB Brokerage].

Good morning.

Hey, Jason.

You know, I realize it's too early to get excited at this point. But it seems like the balance sheet is getting more asset sensitive by the quarter, just given the C&I balances you're putting on and what's happening on the funding side. Vince, I know you said in the past that your objective is to manage to a neutral position. But does it make sense to assume a more asset-sensitive or aggressive position here over the next several quarters, just given where we are in the rate cycle?

I would say our overall philosophy, Jason, continues to be to manage to neutral. We are slightly asset-sensitive, I would say, right now. But overall as a Company, we really don't want to make bets on interest rates. We don't know how long it's going to take for things to move, so we are slightly asset sensitive. But overall posturing, I would think, would remain the same.

But there is some benefit. When rates to start to move, we will have some benefit that's baked into the balance sheet that will start to show itself. But it's not significant. I would call it slightly asset sensitive.

Okay, fair enough. And then, Vince, I know you gave guidance around non-interest expense for the remainder of the year. Can you just give us an update on the expected cost saves opportunity coming from Parkvale? Is 35% still achievable? And when do you expect to have those fully achieved?

Sure. Yes, the 35% is definitely achievable. A lot of the cost saves have been realized by the end of the first quarter, but there's still some additional costs that will come out in the second quarter. Vince mentioned that we closed some branches. It takes a while to exit those properties and get the full cost savings from those. But definitely by the end of the second quarter, we will fully half that.

And then I'd say we have most of it already, as we started the second quarter. But to kind of get to that full level of 35%, definitely by July 1.

Okay, that's helpful. And then final question -- in terms of the linked-quarter drop to net charge-offs, did you have any material recoveries this quarter impacting the result?

Jason, no. Primarily it was very, very solid performance in our retail book and nothing in Florida at all. So the consumer book has really performed very nicely and continues to do so. That really was primary impact.

Great, thanks, guys.

Mac Hodgson, SunTrust Robinson Humphrey.

Hey, good morning. A question on the merger and severance charges, just kind of a technical question. Is that -- Vince, can you give us the breakout of how much is included in personal versus other expenses, if you have it -- and then also, how much merger charges are left, if any?

Sure. The component that's personnel-related is -- it's well under $1 million. It's probably about $500,000, $600,000, I would say, the piece that's personnel related. And then the rest is in kind of the other-other expenses.

And as far as the second quarter, there's always going to be some that will spill over, but small, I mean well under $1 million, maybe $500,000 or so, as far as some additional stuff. There's always some that kind of dribbles in that second quarter, but nothing of size.

Okay, great. And then on acquisitions, you spoke about it earlier. Do you feel like you need to build your capital a bit more before doing another deal, or do you feel like you've got enough capital today? Or, is it likely that maybe you would look to raise some capital in a just-in-time type of manner if the opportunity comes up? Maybe just speak about acquisitions as it relates to your capital position. Thanks.

Sure, thanks, Mac. As you may recall, in several of the other transactions excluding the Parkvale situation because there was a unique circumstance behind that capital raise with the inclusion in the S&P 600 and the opportunity to get better execution, we have operated fairly efficiently from a capital standpoint. So we prefer to pursue capital on a just-in-time basis as we pursue transactions. So I would expect us to continue down that path.

I would also expect us to continue to build, as we've said before, post-Parkvale, our plan is to recoup that diminution of capital over a 12- to 18-month period. And that would be the plan as we move forward. So, hopefully, that answers your question.

I would add to it, too, if you looked at our capital ratios in March of last year, which was before we did the capital raise, we are within 10 to 15 basis points of all ratios -- for leverage, tier 1 risk-based and total risk-based. So at the end of March of this year, we are really potentially right on top of those. And to Vince's point, with the earnings growth and the dividend payout coming down, we'll rebuild that as we go through and go through the rest of the year. And the TC ratio is actually 6 basis points higher today than it was at the end of March last year.

Okay, great, I appreciate the color. Thanks.

John Moran, Macquarie Capital.

Hey, guys, thanks for taking my questions. I may have missed it in the prepared remarks, but it sounded, Vince, like you guys opportunistically redeployed some liquidity and securities. Could you give us a little bit more detail there?

No; actually, what occurred was at the end of the year, as part of deleveraging the balance sheet to manage the total size of the balance sheet we had shrunk our securities portfolio. So as we were going through the first quarter, we were really just building back to a normal percent of the total balance sheet during the first quarter. So it was more just -- my comment there was more the timing of securities coming in, didn't fully happen until we got to the end of the first quarter. But it brings us back to what I would say is a normal level of total securities to the total assets for us.

Got you. And then in your forward-looking comments you had said that the level that we are at now, you would expect that to be kind of maintained for the rest of the year. Is that correct?

Yes. For the second quarter, then, as the balance sheet builds you might see some slight increase in that just kind of pro rata. But in the second quarter, clearly, right around that level.

Got you, got you, thanks very much.

And we have no additional questions in the queue at this time. I'll turn things back over to your speakers for any additional or closing remarks.

Okay, well, I would like to thank everyone for joining us today. We appreciate your continued interest in F.N.B. Have a great day. Thank you.

Thank you. And again, ladies and gentlemen, that does conclude today's conference. Thank you for your participation.