Fulton Financial Corp (FULT) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Fulton Financial First Quarter 2024 Results Conference Call. (Operator Instructions)

美好的一天，感謝您的耐心等待，歡迎參加富爾頓金融 2024 年第一季業績電話會議。 （操作員說明）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Mrozek, Director of Investor Relations. Please go ahead.

請注意，今天的會議正在錄製中。現在我想將會議交給今天的發言人，投資者關係總監 Matt Mrozek。請繼續。

Good morning and thanks for joining us for Fulton Financial's conference call and webcast to discuss our earnings for the first quarter ended March 31st, 2020. For Your host for today's conference call is Curt Myers, Chairman and Chief Executive Officer.

早安，感謝您參加Fulton Financial 的電話會議和網路廣播，討論我們截至2020 年3 月31 日的第一季度的收益。 (Curt Myers)。

Joining here today is Betsy diversity, Interim Chief Financial Officer. Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. These documents can be found on our website at FULT. dot com by clicking on Investor Relations.

今天加入這裡的是臨時財務長 Betsy Diversity。我們今天的評論將參考我們昨天下午發布的收益公告中包含的財務資訊和相關幻燈片演示。這些文件可以在我們的網站 FULT 上找到。點擊投資者關係即可造訪 .com。

And then on News, The slides can also be found on the Presentations page under Investor Relations on our website.

然後在新聞上，這些幻燈片也可以在我們網站投資者關係下的簡報頁面上找到。

On this call, representatives of Fulton may make forward-looking statements with respect to Fulton's financial condition, results of operations and business. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors and actual results could differ materially. Please refer to the Safe Harbor statement on forward-looking statements in our earnings release and on Slide 2 of today's presentation. For additional information regarding these risks, uncertainties and other factors. Fulton undertakes no obligation other than required by law to update or revise any forward-looking statements In discussing Fulton's performance, representatives of Fulton may refer to certain non-GAAP financial measures. Please refer to the supplemental financial information included with Fulton's earnings announcement released yesterday and Slides 17 through 20 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures.

在本次電話會議上，富爾頓的代表可能會就富爾頓的財務狀況、營運績效和業務發表前瞻性聲明。這些陳述並非對未來績效的保證，並受到風險、不確定性和其他因素的影響，實際結果可能有重大差異。請參閱我們的收益報告和今天簡報的幻燈片 2 中有關前瞻性聲明的安全港聲明。有關這些風險、不確定性和其他因素的詳細資訊。除法律要求外，富爾頓不承擔更新或修改任何前瞻性陳述的義務。請參閱富爾頓昨天發布的收益公告中包含的補充財務資訊以及今天簡報的幻燈片 17 至 20，以了解這些非 GAAP 財務指標與最具可比性 GAAP 指標的調節表。

Now I'd like to talk I call turn the call over to your host Carol Buyers.

現在我想談談，請把電話轉給你們的主持人卡羅爾·買家。

Well, thanks, Matt, and good morning, everyone. For today's call. I'll be providing high-level thoughts on our performance for the quarter and provide a few comments on the company. Then I'll turn the call over to Betsy chip in ski Interim Chief Financial Officer, to review our financial results in more detail and step through our guidance for 2024. After our prepared remarks, we will be happy to take any questions you may have.

好吧，謝謝馬特，大家早安。為了今天的電話。我將就我們本季的業績提供高層次的想法，並對公司提出一些評論。然後我會將電話轉接給滑雪臨時財務長Betsy Chip，以更詳細地審查我們的財務業績並逐步介紹我們的2024 年指導。的任何問題。

We were pleased with our first quarter results. Operating earnings of $0.4 per share were a solid start to the year, we saw both deposit and loan growth. The net interest margin was in line with our expectations. We continue to have stable asset quality metrics and our capital position remains strong during the quarter. We also also increased our committed liquidity by 1 billion. We repurchased 1.9 million shares of Fulton stock. I'd like to note that with this repurchase, we've now repurchased all 6.2 million shares of common stock issued in connection with the Prudential Bancorp, Inc. acquisition in 2022. As of March 31st, $95 million remains from our 125,000,020 24 repurchase authorization.

我們對第一季的業績感到滿意。每股 0.4 美元的營業利潤是今年的良好開端，我們看到存款和貸款都有成長。淨利差符合我們預期。我們持續擁有穩定的資產品質指標，本季我們的資本狀況依然強勁。我們還將承諾的流動性增加了 10 億。我們回購了 190 萬股富爾頓股票。我想指出的是，透過此次回購，我們現已回購了與2022 年收購保德信銀行(Prudential Bancorp, Inc.) 相關的全部620 萬股普通股。購還剩9,500 萬美元授權。

Turning to growth for the quarter, first quarter deposits outpaced loan growth at $204 million or 4% annualized pricing growth and mix remain our focus as we continue to position our product offering to support and grow our customer base loan growth as anticipated, moderated to 93 million or 2% on an annualized basis. Profitable growth and prudent credit decisions remain our focus. Our loan to deposit ratio ended the quarter at 98.6%, a linked quarter decline and well within our long-term operating target of 95% to 105%. Despite ongoing market pricing pressures, net interest margin remained in line with our expectations, drifting lower by four basis points to 3.32%.

談到本季的成長，第一季存款成長超過貸款成長，達到2.04 億美元，年化定價成長4%，並且組合仍然是我們的重點，因為我們繼續定位我們的產品，以支持和增加我們的客戶群貸款成長，如預期的那樣，放緩至93百萬或年化的2%。獲利成長和審慎的信貸決策仍然是我們的重點。本季末，我們的貸存比率為 98.6%，季減，完全符合我們 95% 至 105% 的長期營運目標。儘管市場定價壓力持續存在，淨利差仍符合我們的預期，下降四個基點至 3.32%。

Our noninterest expense income was solid at 57.1 million we delivered record results in Wealth Management that helped offset a decline in customer interest rate swap income this quarter. Overall, we are pleased with our fee income performance and continue to benefit from the diversification of this revenue stream.

我們的非利息費用收入穩定在 5,710 萬美元，我們在財富管理領域取得了創紀錄的業績，這有助於抵消本季客戶利率掉期收入的下降。總體而言，我們對我們的費用收入表現感到滿意，並繼續受益於收入來源的多元化。

Now let me provide some comments on credit. The provision for credit losses was 10.9 million, up slightly from 9.8 million last quarter and in line with our expectations. While overall credit risk metrics remain historically strong, we saw some migration in certain credit metrics during the quarter. Criticized and classified loans drifted modestly higher. This migration is not specific to any particular industry portfolio or region, and we continue to focus on how higher interest rates and higher cost are impacting our customers we remain cautious in our outlook for 2024 and looking forward, as I mentioned last quarter, our Fulton first initiative is an internal process to evaluate and improve how we operate three key tenets of this initiative to drive our strategic transformation, our Simplicity, focus and productivity. During the quarter, we made good progress on this initiative with more work ahead of us. We anticipate sharing more details as appropriate in coming quarters overall, a solid start to the new year.

現在讓我對信用問題發表一些評論。信貸損失撥備為 1,090 萬，略高於上季的 980 萬，符合我們的預期。儘管整體信用風險指標仍處於歷史高位，但我們在本季看到某些信用指標出現了一些變化。受到批評和分類的貸款略有上升。這種遷移並不特定於任何特定的行業組合或地區，我們繼續關注更高的利率和更高的成本如何影響我們的客戶，我們對2024 年的前景保持謹慎態度，並展望未來，正如我上個季度提到的，我們的富爾頓第一個計劃是一個內部流程，用於評估和改進我們如何運作該計劃的三個關鍵原則，以推動我們的戰略轉型，即我們的簡單性、專注度和生產力。本季度，我們在這項措施上取得了良好進展，還有更多工作要做。我們預計在接下來的幾季中酌情分享更多細節，為新的一年打下良好的開端。

Now I'll turn the call over to Betsy to discuss our financial performance and 2024 guidance in more detail.

現在，我將把電話轉給 Betsy，更詳細地討論我們的財務表現和 2024 年指導。

Thank you, Kurt, and good morning. Unless I note otherwise, the quarterly comparisons I mentioned are with the fourth quarter of 2024 and loan and deposit numbers, I'll be referencing our annualized percentage growth on a linked quarter basis.

謝謝你，庫爾特，早安。除非我另有說明，否則我提到的季度比較是與 2024 年第四季度以及貸款和存款數字進行的比較，我將參考相關季度的年化百分比增長。

So starting on Slide 8, operating earnings per diluted share this quarter were $0.4 on operating net income available to common shareholders of $65.4 million. This compares to $0.42 of operating EPS in the fourth quarter of 2023 as Curt noted, loan growth was modest during the quarter, increasing 93 million or 2%. Commercial lending contributed 73 million of this growth or 2.2% primary contributors included commercial real estate of 124 million or 6%, and construction loan growth of $24 million or 9%, offset by a decline in C&I loans of 78 million, primarily due to slightly lower line utilization. Our CERCRE. growth was not concentrated in any one category or geography. And as shown in our earnings deck remains well diversified. Consumer lending produced growth of $20 million or 1% during the quarter. An increase of 7 million in residential mortgages, primarily adjustable rate was offset by decreases in other categories, including consumer direct and indirect loans, residential construction and home equity total deposits increased $204 million during the quarter, growth in time, deposits primarily with maturities less than one year more than offset the seasonal outflows in our municipal deposits of 137 million. Non-interest bearing DDA balances ended the quarter at 5.1 billion or 23.4% of total deposits, in line with our expectations. Our net interest income guidance for 2024 assumes we will continue to see migration from noninterest-bearing to interest-bearing products throughout this year, but at a slower pace than we saw last year, our investment portfolio was up modestly for the quarter closing at 3.8 billion or 13.7% of assets. During the quarter, we purchased $210 million of MBS and CMO securities. These balance sheet trends are summarized on slide 10. You can see net interest income was $207 million, a 5 million decline linked quarter, primarily driven by the modest change in the mix of our deposit portfolio. And as a result, net interest margin declined four basis points to 3.32 versus 3.36 last quarter. Loan yields increased seven basis points during the period, increasing to 5.9% versus 5.83 last quarter. And cycled to date, our loan beta has been 50%. Our cost of total deposits increased 16 basis points to 195 basis points during the quarter and cycle to date, ArteFill deposit beta has been 36%.

因此，從幻燈片 8 開始，本季攤薄後每股營業利潤為 0.4 美元，而普通股股東可獲得的營業淨利潤為 6,540 萬美元。 Curt 指出，與 2023 年第四季營運每股收益 0.42 美元相比，該季度貸款成長溫和，增加了 9,300 萬筆，即 2%。商業貸款為此成長貢獻了7,300 萬美元，即2.2%，主要貢獻者包括商業房地產1.24 億美元，即6%，建築貸款增長2,400 萬美元，即9%，但被工商業貸款下降7,800 萬美元所抵消，主要原因是商業貸款減少了7,800 萬美元。我們的CERCRE。成長並不集中在任何一個類別或地區。正如我們的收益表所示，仍然保持多元化。本季消費貸款成長了 2000 萬美元，即 1%。住宅抵押貸款增加了700 萬，主要是可調整利率，被其他類別的減少所抵消，包括消費者直接和間接貸款、住宅建設和房屋淨值本季度存款總額增加了2.04 億美元，時間增長，存款主要到期日減少一年多來，我們的市政存款季節性流出超過1.37億。本季末無息 DDA 餘額為 51 億美元，佔存款總額的 23.4%，符合我們的預期。我們對 2024 年淨利息收入的指導假設我們將在今年繼續看到從無息產品向有息產品的轉變，但速度比去年慢，我們的投資組合本季度小幅增長，收於 3.8億或資產的13.7%。本季度，我們購買了 2.1 億美元的 MBS 和 CMO 證券。這些資產負債表趨勢在投影片 10 中進行了總結。結果，淨利差下降了四個基點，從上季的 3.36 下降到 3.32。在此期間，貸款收益率上升了 7 個基點，從上季度的 5.83% 升至 5.9%。到目前為止，我們的貸款貝塔值為 50%。在本季和迄今為止的周期內，我們的總存款成本增加了 16 個基點，達到 195 個基點，ArteFill 存款貝塔值為 36%。

Turning to asset quality in slide 11, NPLs increased 2.8 million during the quarter, resulting in a slight increase in the NPL to loans ratio from 72 basis points at 1231 to 73 basis points at quarter end, net charge-offs were $8.6 million or 16 basis points. Gross charge-offs of $11 million were fairly granular with the largest being $2.5 million on a C&I loan. Our allowance for credit losses as a percentage of loans increased slightly to 1.39% at quarter end Turning to noninterest income on Slide 12. Wealth management revenues were $20.2 million, up 766,000 compared to the fourth quarter, surpassing the 20 million mark for the first time in Company history. Wealth management represents about a third of our fee-based revenues with over 80% of those revenues recurring also the market value of assets under management and administration increased over 700 million to $15.5 billion at March 31st, also a new record for our company. Commercial banking fees declined 2 million to 18.8 million as customer swap revenue, heavily reliant on new originations declined compared to a strong fourth quarter. Consumer banking fees declined approximately $400,000 to $11.7 million. First quarter seasonality played a part in that linked-quarter decline. Our Consumer Banking business continues to deliver a very consistent income stream. Mortgage banking revenues increased $802,000 to 3.1 million and were driven by a seasonal increase in mortgage originations as well as gain on sale spreads that rebounded from a low last quarter. We have a number of investments that are accounted for under the equity method on which we recorded a loss of $1.6 million reflected in the other income lines.

轉向幻燈片 11 中的資產質量，本季不良貸款增加 280 萬美元，導致不良貸款與貸款比率從 1231 的 72 個基點小幅上升至季末的 73 個基點，淨沖銷額為 860 萬美元或 16基點。 1,100 萬美元的總沖銷相當細化，其中最大的一筆是 C&I 貸款的 250 萬美元。季度末，我們的信貸損失撥備佔貸款的百分比小幅上升至1.39%。大關在公司歷史上。財富管理約占我們收費收入的三分之一，其中超過80% 的收入是經常性收入，截至3 月31 日，所管理和管理的資產的市值增加了7 億多美元，達到155 億美元，這也是我們公司的新紀錄。商業銀行費用下降 200 萬至 1,880 萬，因為嚴重依賴新業務的客戶互換收入與強勁的第四季度相比有所下降。消費者銀行業務費用下降約 40 萬美元，至 1,170 萬美元。第一季的季節性因素是導致季減的原因之一。我們的消費者銀行業務持續提供非常穩定的收入來源。抵押貸款銀行業務收入增加了 802,000 美元，達到 310 萬美元，這是由於抵押貸款發放的季節性增長以及從上季度低點反彈的銷售利差收益所推動的。我們有許多投資採用權益法核算，在其他收入項目中我們記錄了 160 萬美元的損失。

Moving to Slide 13. Noninterest expenses on an operating basis were $170 million in line with the prior quarter and in line with our guidance. The material items we exclude from operating expenses include charges following charges of $1 million for special FDIC assessment, $3.6 million related to the closure of some financial centers, 2.5 million of consulting expense and $200,000 of severance expense.

轉到投影片 13。我們從營運費用中排除的重要項目包括以下費用：100 萬美元的 FDIC 特別評估費用、與關閉某些金融中心相關的 360 萬美元、250 萬美元的諮詢費用和 20 萬美元的遣散費。

On slide 14 shows a snapshot of our capital base. And you can see as of March 31st, we maintained solid cushions over the regulatory minimums. Also, both bank and parent company liquidity improved during this quarter.

第 14 張投影片顯示了我們資本基礎的快照。您可以看到，截至 3 月 31 日，我們在監管最低限度上保持了堅實的緩衝。此外，本季銀行和母公司的流動性均有所改善。

On slide 16, we are reiterating our guidance for 2024 Our guidance assumes that a total of 75 basis points of Fed funds decreases will occur in the second half of 2024. So our guidance is as follows. We expect net interest income on a non FTE. basis to be in the range of 790 to 820 million. We expect the provision for credit losses to be in the range of 45 to 65 million. We expect noninterest income, excluding security gains to be in the range of 235 to $250 million. We expect noninterest expenses on an operating basis to be in the range of 670 to 690 million for the year. And to really reinforce that estimate excludes potential nonoperating charges we may incur as we move through the year. And lastly, we expect our effective tax rate to be in the range of 17% to 18% for the year.

在投影片 16 上，我們重申了對 2024 年的指引。我們預計非 FTE 的淨利息收入。基礎在790至8.2億之間。我們預計信用損失撥備將在45至6500萬之間。我們預計，不包括證券收益的非利息收入將在 23.5 至 2.5 億美元之間。我們預計全年營運非利息支出將在 6.7 至 6.9 億美元之間。為了真正強化這個估計，我們排除了我們在這一年中可能產生的潛在非營業費用。最後，我們預計今年的有效稅率將在 17% 至 18% 之間。

With that, we'll now turn the call over to Abigail for questions.

現在，我們將把電話轉給阿比蓋爾詢問問題。

(Operator Instructions) Frank Schiraldi, Piper Sandler.

（操作說明）Frank Schiraldi、Piper Sandler。

Morning, Frank, just on the phone first initiative, I guess you know that it's it's sort of a work in progress and done. You're looking for efficiencies kind of across the board. But I assume that includes some expense saves as you as you close some financial centers and so forth. So can you just remind us when we look at guide, I know there's no you take out the non-operating stuff on. But in terms of run rate expenses, does that include some benefit from Fulton first? Is it sort of your best guess at this point of what you get from foam first? Or is that something that could as we go through the year move that?

早安，弗蘭克，剛剛在電話中提出了第一個倡議，我猜你知道這是一項正在進行和已經完成的工作。您正在尋求全面的效率。但我認為這包括關閉一些金融中心等而節省的一些費用。所以你能提醒我們一下，當我們看指南時，我知道你沒有把非操作性的東西拿出來。但就運行費用而言，這是否首先包括富爾頓的一些好處？這是您目前對首先從泡沫中獲得什麼的最佳猜測嗎？或者說，這是否會隨著我們這一年的發展而改變？

So our guide lower?

那我們的指南更低了？

Yes, Frank, we have certain expense saves in the back half of the year as we begin to implement Fulton first. So we really are in the analysis on stage and building our plan on. So the overall plan is really driven to accelerate growth in certain areas as we focus even more in certain areas. But we do expect to see benefits from operating efficiencies and doing doing things a little differently as well so there are some expense components to the Save. I'd just like to remind everybody that the full first initiative is really an 18-month to 24-month journey. And we're in that you know, four or five months of that work. So what you're really seeing right now is the investment or spend to develop the plan for implementation. And when we get to the point of implementing, we'll be able to share more details with you around expected benefits.

是的，弗蘭克，當我們首先開始實施富爾頓時，我們在下半年節省了一定的費用。所以我們確實處於舞台分析和製定計劃的階段。因此，隨著我們更加關注某些領域，整體計劃確實會加速某些領域的成長。但我們確實希望看到營運效率和做事方式略有不同所帶來的好處，因此可以節省一些費用。我想提醒大家的是，第一個專案的完整實施其實是一個18個月到24個月的過程。你知道，我們正在進行四、五個月的工作。因此，您現在真正看到的是製定實施計劃的投資或支出。當我們到達實施階段時，我們將能夠與您分享更多有關預期收益的詳細資訊。

Okay. And then on the OM on loan growth, just looking at your guide on NII and is it fair to say that just assume sort of 1Q like loan growth spread across the year? And then as a follow-up to that, if you could just remind us what the on the deposit side, what the muni outflows were this quarter and how that, you know, the timeframe for those to flow back end?

好的。然後，關於貸款成長的 OM，只需看看您的 NII 指南，是否可以公平地說，假設像第一季那樣的全年貸款成長分佈？然後，作為後續行動，您能否提醒我們存款方面的情況、本季市政資金的流出情況以及這些資金回流的時間表如何？

Yes, let me talk a little bit about loan growth, and I'll give it to Betsy for the municipal outflows, just the seasonality to that. So on loan growth, you know, we've talked about our long term organic growth target in the 4% to 6% range. I think in this environment, we're going to be at the low end or maybe even under the low end of that long term on range. So I think the growth in the first quarter, we may exceed that as we look forward, but it's going to be in the same ballpark. We are we are being prudent and disciplined on pricing and credit and as we originate loans moving moving forward and the minute.

是的，讓我談談貸款成長，我將把它交給 Betsy 來了解市政資金流出，只是季節性。因此，關於貸款成長，我們已經討論了 4% 至 6% 範圍內的長期有機成長目標。我認為在這種環境下，我們將處於長期範圍的低端，甚至可能低於長期範圍的低端。因此，我認為第一季的成長可能會超過我們的預期，但會處於相同的水平。我們在定價和信貸方面保持謹慎和紀律，並且在我們發放貸款的過程中不斷向前推進。

The municipal outflows were $137 million or so with at least in certain of our areas on certain taxes are paid in the second quarter. We should see a blip up, not huge in the second quarter and then the third quarters where we tend to see those Bye.

市政支出約為 1.37 億美元，至少在我們的某些地區，某些稅收是在第二季繳納的。我們應該會在第二季看到一個小插曲，但不會很大，然後在第三季我們往往會看到「再見」。

Got you. Okay. Thanks for the color.

明白你了。好的。謝謝你的顏色。

Thanks, guys.

多謝你們。

Daniel Tamayo with Raymond James.

丹尼爾·塔馬約和雷蒙德·詹姆斯。

Thanks. Good morning, everyone. Maybe first, just on on the NII guidance you reiterated from last quarter and you kept the the the three rate cuts assumed, which I understand given where we were at the end of the quarter. But maybe if you could give us your best guess as to what that guidance might look like without the June cut? And if there's any kind of other details in terms of how you're thinking about the impact have fewer rate cuts on that on that guidance, that would be helpful.

謝謝。大家，早安。也許首先，就您在上個季度重申的國家資訊基礎設施指引而言，您保留了三次降息的假設，考慮到我們在本季末的情況，我理解這一點。但也許您能給我們您最好的猜測，如果沒有六月的降息，該指導意見可能會是什麼樣子？如果有任何其他細節說明您如何考慮降息幅度較小對該指導的影響，那將會有所幫助。

But then this is that the ARM we've kind of modeled that out really we can tell on our loans that reprice immediately 25 million on an annualized basis, but the harder thing to predict as deposits, but we've kind of modeled all that out and, you know, with no cuts where we think we're going to tilt toward the high end of the range, maybe a little bit higher. And but again, they're going to occur later in the year. So the impact on the year is going to be moderated.

但這就是我們已經模擬出來的 ARM，我們確實可以從我們的貸款中看出，這些貸款會立即按年重新定價 2500 萬，但更難預測的是存款，但我們已經模擬了所有這些而且，你知道，沒有削減，我們認為我們將向範圍的高端傾斜，也許更高一點。但同樣，它們將在今年晚些時候發生。因此，對今年的影響將會減弱。

Okay. All right. That's with no cuts behind the range. Okay. All right. And then switching gears here, if I can, just to the office portfolio, appreciate all the detail you guys put in the deck on that. I just wanted to know if you had within that group of loans, what the the amount that's either substandard or criticized or classified or however you think about the early stage for that? And just curious how that portfolio is trending, I'm relative to the rest of your book.

好的。好的。這還是在該範圍內沒有削減的情況下。好的。好的。然後，如果可以的話，我就在這裡切換辦公室組合，感謝你們在甲板上提出的所有細節。我只是想知道您是否擁有該組貸款，不合格、批評或分類的金額是多少，或者您對早期階段的看法如何？只是好奇該投資組合的趨勢如何，我與你書中的其餘部分相關。

Yes, Danny, we've seen stability in that. So overall, portfolio balances are stable. We've done we've moved some out or paid off. We've had and we've had some originations that we did not much this past quarter but we did some in the fourth quarter. So that portfolios are really stable. We're pretty direct in sharing what we have in classified criticized there, and it's shown stability as of today.

是的，丹尼，我們已經看到了穩定性。因此整體而言，投資組合餘額是穩定的。我們已經完成了，我們已經搬出了一些或還清了費用。我們已經有了一些創意，在上個季度我們沒有做太多，但我們在第四季做了一些。所以投資組合確實穩定。我們非常直接地分享我們在分類中受到批評的內容，並且截至今天它已經表現出穩定性。

Okay. Understood. I appreciate you taking my questions today.

好的。明白了。感謝您今天回答我的問題。

Feddie Strickland with Janney Montgomery Scott research division.

費迪·斯特里克蘭 (Feddie Strickland) 與詹尼·蒙哥馬利·斯科特 (Janney Montgomery Scott) 研究部門。

Hey, good morning, everybody. Just wanted to continue on that last question on office. Appreciate the detail in the deck, but I see that there's a 146 million located in the central business district. Is that pretty evenly distributed across geographies or is it more Philly or DC or elsewhere? Just trying to get a sense of where which central business district those might be?

嘿，大家早安。只是想繼續關於辦公室的最後一個問題。欣賞甲板上的細節，但我看到有 1.46 億位於中央商務區。這種情況在各地區的分佈是否相當均勻，還是費城、華盛頓特區或其他地方更多？只是想了解這些可能是哪個中央商務區？

Yes, largest is is Philadelphia. And you know, it's not a lot of loans are getting and it's seven our loans and Philly is the biggest portion. And then actually the next biggest portion as we look at the distribution is spread throughout and then DC and Baltimore would be less than half of what we have in Philadelphia. And again, those numbers overall are pretty granular Philadelphia's 200, 55 of that total. So none of those are a a significant portion. It's pretty diversified spread out.

是的，最大的是費城。你知道，我們獲得的貸款並不多，我們有七筆貸款，其中費城是最大的一部分。實際上，當我們看到分佈時，下一個最大的部分是分佈在整個地區，然後華盛頓和巴爾的摩將不到費城的一半。再說一次，這些數字總體上是相當精細的費城 200 人，佔總數的 55 人。所以這些都不是重要的部分。它的分佈相當多樣化。

Got it. That's helpful. On switching gears for a second, it's great to see credit relatively stable this quarter. Your net charge-offs are actually lower. And what I had modeled Can you talk about what you're seeing in terms of trends in criticized and classified?

知道了。這很有幫助。換個角度來說，很高興看到本季信貸相對穩定。您的淨沖銷實際上更低。我的模型是什麼？

Yes. So our criticized classified is moving up slightly. I think the number's about 77 million linked quarter. So not not a significant move, but it is trending up a little. We are adding. So there's generation there and then there's resolution as well. So we're watching that very closely. When you look at the loans that are on moving in to our criticized and classified like there, they're pretty diversified and granular around C. and ICCRE. So we don't see any specific thing in the migration that gives us concern about and any individual portfolio, it's really comes down to the individual borrower of being able to be being able to navigate or being in a position to handle the current on economic environment.

是的。所以我們批評的分類略有上升。我認為這個數字約為 7700 萬個季度關聯。因此，這並不是一個重大舉措，但它呈現小幅上升趨勢。我們正在添加。因此，有生成，也有解。所以我們正在非常密切地關注這一點。當您查看進入我們批評和分類的貸款時，您會發現它們非常多樣化且圍繞 C. 和 ICCRE 進行細化。因此，我們在遷移中沒有看到任何讓我們擔心的具體事情，也沒有看到任何個人投資組合，這實際上取決於個人借款人是否能夠駕馭或能夠應對當前的經濟形勢。

Got it. I appreciate the color. One last quick one, forgive me if I missed this, but what was the balance of ALCI. this quarter, if we have that you're clear?

知道了。我很欣賞它的顏色。最後一個快點，如果我錯過了，請原諒我，但 ALCI 的平衡是多少。這個季度，如果我們有的話，你清楚了嗎？

Sure, we do. Yes. If you don't have any. We'll follow up with the very to give that specific number one reconciliation right here in front of us now from.

當然，我們願意。是的。如果你沒有的話。我們將繼續跟進，從現在起就在我們面前給予具體的第一號和解。

Thanks so much for taking my questions.

非常感謝您回答我的問題。

Chris McGratty with KBW.

KBW 的克里斯麥克格拉蒂。

It has gone. This is Angelo sooner on for Chris McGratty.

它已經消失了。這是克里斯·麥克格拉蒂的安吉洛。

Morning, Andrew.

早安，安德魯。

Bob has gone on. So just on the NII guide. I'm just wondering what assumptions you're using for deposit mix and down based on those rate cuts you get to your low and high end of the guide.

鮑伯繼續說下去。所以就看 NII 指南吧。我只是想知道，根據您達到指南的低端和高端的降息幅度，您對存款組合和下降使用了哪些假設。

So on the deposit mix, we are assuming some continued decline in the percentage of non-interest bearing deposits. We feel like we've been conservative and those projections relative to the longer-term history on you know, the beta on that is probably I don't want to quote that, but all I can see a relatively low base oil margins based on competition.

因此，就存款結構而言，我們假設無利息存款的比例持續下降。我們覺得我們一直很保守，那些相對於長期歷史的預測你知道，貝塔值可能是我不想引用的，但我所能看到的基礎油利潤率相對較低競賽。

And we really see a stabilizing of the deposit as we get to CD. roles. As we look forward, the pressure of pricing up on CD. rolls begins to stabilize, if not not as significant begins to stabilize. So I think there's a lot of stabilizing forces as we kind of kind of look forward. The biggest impact is going to be a mix shift, not non-interest bearing two in interest-bearing, and that is moderating but is continuing.

當我們進入 CD 時，我們確實看到了存款的穩定性。角色。我們展望未來，CD 定價上漲的壓力。滾動開始穩定，即使不是那麼重要開始穩定。所以我認為，當我們有所期待時，有很多穩定的力量。最大的影響將是一種混合轉變，而不是非生息和生息的轉變，這種影響正在減弱，但仍在持續。

Okay, great. Thank you. And, Joe, the amount of CDs are maturing this year and on what those are rolling off that compared to what you're offering today.

好的，太好了。謝謝。而且，喬，今年 CD 的數量正在逐漸成熟，與你們今天提供的相比，這些 CD 的銷量也越來越大。

So through on the end of this year, there's probably about $1.9 billion. And that weighted average rate is I have for the next 12 months? I'm doing math in my head here. Apologies. The weighted average rate is probably about a for roughly four 40. I would tell you, on average, the rate over the past couple of months, and we're putting on new CDs at a weighted average rate of about four 40. So as we get toward the end of the year, again, absent other changes, which we know they'll be on those, we're not going to really see an impact from those renewals or new CDs.

所以到今年年底，可能大約有 19 億美元。我接下來 12 個月的加權平均利率是多少？我正在腦子裡做數學題。道歉。加權平均利率可能約為 4 40 左右。我們知道這些變化將會出現在這些變化上），我們將不會真正看到這些續訂或新CD 的影響。

Yes. So we feel like we feel really good about how we've managed the duration in that book and each month as we move forward, we get, again to that role being a more stabilizing impact on the overall balance sheet.

是的。因此，我們覺得我們對如何管理這本書中的持續時間感到非常滿意，隨著我們前進的每個月，我們再次意識到這個角色對整體資產負債表產生了更穩定的影響。

Yes, thank you. And I appreciate the quick math there. And then just last one, if I can come with that, you repurchased 1.9 million shares and you have $95 million remaining on the authorization. Are you are you still comfortable comfortable with the operating environment and your current capital?

是的，謝謝。我很欣賞那裡的快速數學。最後一點，如果我可以的話，您回購了 190 萬股股票，您的授權剩餘 9500 萬美元。您對目前的經營環境和現有資金還滿意嗎？

I will stick to contemplate and further that Yes, great question. And we continue to evaluate that. Our priority is to support organic growth. First, second priority would be any corporate initiatives that we have that would require a capital and then buybacks. And so we would evaluate that environment and we feel that based on our capital levels, we could be active in our buyback throughout the remainder of the year.

我會繼續思考並進一步回答「是的，很好的問題」。我們將繼續對此進行評估。我們的首要任務是支持有機成長。首先，第二要務是我們擁有的任何需要資本和回購的企業措施。因此，我們會評估這種環境，我們認為根據我們的資本水平，我們可以在今年剩餘時間內積極進行回購。

But we may not depending on the situation, we have the authorization remaining for the 95 million on. And if you look back over recent history, we've used that almost every quarter to some degree based on the market environment that we see. But again, it is the the last priority in our capital utilization.

但我們可能不會根據情況而定，我們的授權還剩下9500萬。如果你回顧最近的歷史，我們幾乎每個季度都會根據我們看到的市場環境在某種程度上使用它。但同樣，這是我們資本利用的最後一個優先事項。

Thanks for taking my questions.

感謝您回答我的問題。

Thanks, Andrew.

謝謝，安德魯。

Our next question comes from David Bishop with optic group. Your line is open.

我們的下一個問題來自光學小組的 David Bishop。您的線路已開通。

Yes, good morning. Good afternoon, Kurt. A question circling back to the first, I know you're sort of focused on the it may be the expense side of things, but other revenue enhancements that could emanate from this this project longer-term?

是的，早安。下午好，庫爾特。回到第一個問題，我知道您有點關注這可能是事情的費用方面，但從長遠來看，這個項目可能會帶來其他收入的增加？

Yes, definitely the focus part of that initiative is really to accelerate growth in areas where we deliver high value for customers have more differentiation, and we feel we can we're doing well and can do even better with some of the initiatives and strategies that we're contemplating. So that is the first priority for us is how to grow the Company effectively got going for us. So we do think those accelerators exist, but there's also an efficiency and operating environment and tax benefit realization, things like that, that will enhance efficiency and productivity to. But that focus part is really on on the growth side.

是的，該計劃的重點部分確實是加速我們為客戶提供高價值、具有更多差異化的領域的增長，我們認為我們可以做得很好，並且可以通過一些計劃和策略做得更好。正在考慮。因此，我們的首要任務是如何有效地發展公司。因此，我們確實認為這些加速器存在，但也存在效率、營運環境和稅收優惠實現等，這將提高效率和生產力。但重點部分實際上是在成長方面。

Got it. And I know there's some noise this quarter with some of the branch closures and such or did that flow through to the I saw occupancy expense was up, Bob, as much of that was weather related or related to that initiative. I thought those were in other expenses, but I don't know Betsy occurring. Any any any guidance in terms of good rate or run rate on the occupancy side of the equation?

知道了。我知道本季度有一些噪音，一些分支機構關閉，或者這些噪音是否會導致我看到入住費用增加，鮑勃，因為其中大部分與天氣有關或與該計劃有關。我以為這些是其他費用，但我不知道貝特西發生了。關於等式的入住率方面的良好率或運行率有任何指導嗎？

I'll let Betsy take personal care. She loves this expense item.

我會讓貝特西照顧個人。她喜歡這個開支項目。

I'm sorry, overlapping here. Yes, the increase in occupancy was weather related on, so snow removal costs. So that's that should moderate and slight in the Northeast.

抱歉，這裡有重疊。是的，入住率的增加與天氣有關，因此除雪成本也有關。所以這在東北地區應該是溫和且輕微的。

But yes, we've got to love. It appears you never know what's going to hit some also. Maybe a high-level question, Kurt, just in terms of capital allocation occasion appetite for more M&A. I know that the prominent Lakeland's deal had some So interesting appendages to it, dumb. I don't know that silver is your outlook for additional M&A. Maybe how comfortable you be maybe looking at maybe some distress, the distressed bank sales out there. Just curious your M&A appetite at this point.

但是，是的，我們必須愛。看來你永遠不知道什麼會影響某些人。庫爾特，也許這是一個高層次的問題，只是在資本配置方面引起了對更多併購的興趣。我知道著名的萊克蘭的交易有一些非常有趣的附屬物，愚蠢的。我不知道白銀是否是您額外併購的前景。也許你會感到多麼舒服，也許看到一些苦惱，銀行出售的苦惱。只是好奇您此時的併購興趣。

Yes. So our M&A strategy remains the same. I've talked about the looking at it in two buckets, the one to $5 billion community bank really additive to our organization, and we're focused on those. We do think we have opportunity in that category. We also focus on the five to $15 billion 15, probably in being the largest, we would consider more strategic partnership. Yes, there's a handful of those, but we would consider those as well. So the strategy is the same. The environment is yes, we feel we have opportunities for M&A and we evaluate those when when we have the opportunities. And and if we if we can work on something that's that positively impacts our shareholders over the long haul, we certainly would would be active.

是的。所以我們的併購策略維持不變。我已經談到了要從兩個方面來看待它，1 到 50 億美元的社區銀行確實對我們的組織有好處，我們重點關注這些。我們確實認為我們在這一領域有機會。我們也關注 50 至 150 億美元 15，可能是最大的，我們會考慮更多的策略夥伴關係。是的，其中有一些，但我們也會考慮這些。所以策略是一樣的。環境是肯定的，我們覺得我們有併購機會，當我們有機會時我們會評估這些機會。如果我們能夠致力於長期對股東產生正面影響的事情，我們肯定會積極參與。

I appreciate the color there.

我很欣賞那裡的顏色。

annual analysis with DA Davidson.

DA Davidson 的年度分析。

Hey, good morning. Can you just go into a little bit more detail on what's kind of driving the bit, I guess, slower end of the guide on loan growth. I understand the pricing side, just borrowed demand at high rates also have an impact, which is it is deposit gathering also slowing. It does also deposit gathering.

嗨，早安。我想，您能否更詳細地介紹一下是什麼推動了貸款成長指南末尾的放緩。我了解定價方面，只是高利率的借貸需求也會產生影響，那就是存款聚集也在放緩。它也確實收集存款。

We've been doing a great job, I think in that that is not hindering our growth at all. If anything, I think it's an opportunity to fuel our growth as we're doing and doing a good job there.

我們一直做得很好，我認為這根本不會阻礙我們的成長。如果有什麼不同的話，我認為這是一個推動我們發展的機會，因為我們在那裡做得很好。

The biggest thing on low growth is our pipeline of commercial loans on pipeline is up linked quarter and up year over year. But what we're seeing is the what we call the pull through rate on that pipeline. It continues to be challenged. Customers are very cautious and projects are not happening because costs are up, rates are up, things like that. So the biggest impact is not opportunity. It's either borrowers deciding to move forward on a project or spending or us making sure we get the right pricing credit terms.

低成長的最大問題是我們的商業貸款管道比去年同期有所上升。但我們看到的是我們所說的管道的通過率。它繼續受到挑戰。客戶非常謹慎，項目沒有進行，因為成本上漲，費率上漲，諸如此類。所以最大的影響不是機會。要么是藉款人決定推進項目或支出，要么是我們確保獲得正確的定價信貸條款。

I appreciate that. Does that does that mean that I'm, you know, kind of gets you to the high end of the NNI range, but perhaps that would be and increase in loan demand if we did get fed cuts, is that kind of the right way to think about it and what would be where you would be happiest history and we like stability there that.

我很感激。這是否意味著我，你知道，有點讓你達到 NNI 範圍的高端，但也許這會增加貸款需求，如果我們確實得到美聯儲削減，這是正確的方式嗎想想看，歷史上最幸福的地方是什麼，我們喜歡那裡的穩定。

So that's the easiest thing to navigate. So just some level of stability would be good. And we really positioned the Company to effectively perform no matter what happens. We have puts and takes on rates up or rates down on rates up. We benefit in some ways and have more pressure in some ways, rates down. We benefit in certain ways and have more pressure in certain ways. So there are a lot of different variables and what we really focus on is having the Company in a position that we perform effectively and no matter what happens to rates.

所以這是最容易導航的事情。所以只要有一定程度的穩定性就很好了。我們確實讓公司無論發生什麼事都能有效執行。我們有利率上漲的賣權和選擇權，也有利率上漲的賣權和選擇權。我們在某些​​方面受益，但在某些方面面臨更大壓力，利率下降。我們在某些​​方面受益，在某些方面承受更大的壓力。因此，有許多不同的變量，我們真正關注的是讓公司處於有效執行的位置，無論利率發生什麼變化。

I have one last kind of like more specific modeling question. I had that you expect that the non-interest bearing mix getting around 22% by year end. Is that changed at all with a little bit more outflows this quarter? Is that still right, right around the same mix that you end the year at.

我有最後一種更具體的建模問題。我聽說您預計到年底，無息組合將達到 22% 左右。隨著本季資金外流增加，這種情況是否有所改變？這仍然是正確的嗎？

So we ended the quarter at 23.4. I think for your modeling, 22%, certainly reasonable if you look back over the past on 15 years, that that's a good range. You have to go way back to that much lower than that.

所以我們本季結束時的價格是 23.4。我認為對於你的模型來說，22%，如果你回顧過去 15 年，當然是合理的，這是一個很好的範圍。你必須回到比那低得多的水平。

Okay. I appreciate that. Thank you very much.

好的。我很感激。非常感謝。

(Operator Instructions) Matthew Breese with Stephens.

（操作員說明）Matthew Breese 和 Stephens。

Good morning, everybody.

大家早安。

I'm sorry, Matt,

對不起，馬特，

I wanted to go back to Fulton First, how much more one-time costs do you expect? And over what time frame do you think the majority of those one-time costs are going to?

我想回到富爾頓第一，您預計一次性費用會增加多少？您認為大部分一次性成本會在什麼時間範圍內發生？

Got it, okay. And yes, we do expect increased one-time costs as we get into implementing the changes that we're designing and working on right now. So right now, we just have the spend to develop the plan and then as we implement that plan, there certainly would be one-time costs from contracts and other things that we would consider efficiencies overall. So we do have those planned and we would be disclosing though, that as we move forward, our real goal is to get to showing everyone the plan, our costs we have and what benefits we're going to derive. We're just not there there yet, but we wanted to be transparent with that. We're spending money investing money to figure that plant out.

明白了，好吧。是的，當我們開始實施我們正在設計和正在進行的變革時，我們確實預計一次性成本會增加。所以現在，我們只有製定計劃的支出，然後當我們實施該計劃時，合約和其他我們會考慮整體效率的事情肯定會產生一次性成本。所以我們確實有這些計劃，但我們會披露，隨著我們的前進，我們真正的目標是向每個人展示計劃、我們的成本以及我們將獲得的好處。我們只是還沒有做到這一點，但我們希望對此保持透明。我們正在花錢投資來解決這個問題。

Okay. But should we expect kind of this quarter's $6.4 million in one-time cost to recur for at least the near term? Or is that an elevated figure in your view?

好的。但我們是否應該預期本季 640 萬美元的一次性成本至少在短期內會再次出現？或者說在你看來這是一個很高的數字？

Yes, we really have those planned out again, it's a 18 to 24 months of and project overall, the onetime cost would be concentrated more at the front end of that. So thinking over the next couple of quarters, we would have more of the one-time costs and then we would begin getting the benefits spend over the full 24 months. So that I think you're thinking about it the right way, Matt.

是的，我們確實再次計劃了這些，總體而言，這是一個 18 到 24 個月的項目，一次性成本將更多地集中在前端。因此，考慮接下來的幾個季度，我們將有更多的一次性成本，然後我們將開始在整個 24 個月內獲得福利支出。所以我認為你的思考方式是對的，馬特。

Okay. I wanted to go back to the office portfolio. You have eight office relationships over 20 million. You discussed kind of the three in the central business districts. But I was hoping within the eight you could talk about maybe the three or four largest relationships. What are the sizes there? How are they performing maturity schedules and any sort of details on kind of LTV debt service coverage ratios for for just overall color on the biggest stuff?

好的。我想回到辦公室投資組合。您有八個辦公室關係超過 2000 萬。您討論了中央商務區的三種類型。但我希望在這八個關係中，你能談談也許三個或四個最大的關係。那裡的尺寸是多少？他們如何執行到期時間表和 LTV 償債覆蓋率的任何細節，以了解最大的東西的整體色彩？

Yes. So the on the top five borrowers there are in the 25 to $30 million range and balance in our largest deals, about 30 million in balances. We don't have any maturities that are coming up that we either are comfortable with or don't have a resolution for. So we feel good about the position of those largest. Our borrowers are at this point and we are paying we are paying close attention to every office loan we have from the $400,000 loan we originated in the first quarter to our largest one of of 30 million.

是的。因此，排名前五位的借款人的金額在 2500 至 3000 萬美元之間，在我們最大的交易中，餘額約為 3000 萬美元。我們沒有任何即將到來的到期日，我們要么對此感到滿意，要么沒有解決方案。因此，我們對那些最大的公司的地位感到滿意。我們的借款人現在正在付款，我們正在密切關注我們擁有的每一筆辦公貸款，從第一季發放的 40 萬美元貸款到 3000 萬美元貸款中最大的一筆。

Are they all in? Yes, and then you had a you had a 3.1 million loss on asset disposals this quarter. What was in there?

他們都在嗎？是的，然後本季資產處置損失了 310 萬美元。裡面有什麼？

Those were five branches that we have committed to close I believe they're closing the end of this month.

我們承諾關閉這五個分支機構，我相信他們將在本月底關閉。

Early next week, they were close.

下週初，他們的關係就很接近了。

And then the last one is just on and commercial swap activity. My God, here's with slower growth that will remain kind of at a depressed level. But I wanted your thoughts on on whether we can get back to a kind of a north of $3 million run rate there?

最後一項是商業互換活動。天啊，成長放緩，仍將保持在低迷的水平。但我想聽聽您對我們能否回到 300 萬美元以上的運轉率有何看法？

Yes, it really comes down the mix of origination versus overall growth. So obviously, when you have higher overall growth, your your mix is better to have volume in every category. So it really what drives those numbers is the larger originations. So large C&I and large CRE originations are what really drive the number. We have a good core kind of recurring business. And that's why you see on that there's kind of a floor on that, that fee income each quarter. But to get to the, you know, the three and $4 million quarters that we've seen historically, you really have to have a few larger originations that are derivatives or swaps done on those.

是的，這確實取決於起源與整體成長的結合。顯然，當您的整體成長較高時，您的組合最好在每個類別中都有銷售。因此，推動這些數字的真正原因是更大的起源。因此，大型 C&I 和大型 CRE 起源才是真正推動這個數字的因素。我們擁有良好的核心經常性業務。這就是為什麼你會看到每季的費用收入都有一個下限。但要達到我們歷史上看到的三個和 400 萬美元的季度，你確實必須有一些更大的起源，即衍生品或對這些季度進行的掉期。

Okay. That's all I had I appreciate taking my questions. Thank you.

好的。這就是我所擁有的一切，我很高興回答我的問題。謝謝。

Thank that.

謝謝。

That concludes the question and answer session. At this time, I would like to turn the call back Curt Meyers for closing remarks.

問答環節到此結束。此時，我想轉回科特·邁耶斯 (Curt Meyers) 的閉門致詞。

Well, thank you again for joining us today. We hope you'll be able to be with us when we discuss second quarter results in July. And thanks, everyone.

好的，再次感謝您今天加入我們。我們希望您能夠在我們七月討論第二季度業績時與我們在一起。謝謝大家。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。