F.N.B. Corporation (NYSE:FNB) Q1 2024 Earnings Call Transcript

Brian Martin: Got you. Okay. And the last one for me, and I’ll step back. Was just the — it sounds like the DDA level your comfortable that you can maybe sustain this around the current level? And then just kind of the outlook on the capital flexibility with kind of reaching a record level of TCE and CET1. Just kind of your thoughts on capital deployment here if it’s still just primarily organic growth?

Vince Calabrese: Yes. I would say, I mean, on the capital front, we still like 10% is our CET1 target. We think that’s the right level, just given our risk profile of the balance sheet and also the high level of capital generation that we’ve been producing. If you look at our — what’s baked into our guidance, the capital ratio is kind of gradually build from here between now and the end of the year. As you saw this quarter, we had a nice pickup in CET1 and TCE ratio. We have commented in January that once the indirect sale kind of cleared that would be additive. Added like 10 basis points CET1 relative to the TCE ratio. So we have that and then we’ll kind of gradually build from there. And we’ll be opportunistic as we have been in the past. We’ll look to do some buybacks. We have issuance of stock in the first quarter from normal incentive stuff. We could repurchase some of that and look to do some level of activity as we go through the year.

Vince Delie: Given the profitability of the company, we have options, and we’re building capital you go back pretty far, so 8% is a pretty nice number for us. It’s a solid TCE ratio.

Brian Martin: Got you. Okay, I appreciate taking questions. Thank you.

Operator: And ladies and gentlemen, with that being our last question, I’d like to turn the floor back over to Vince Delie for any closing remarks.

Vince Calabrese: I just wanted to make one comment. There was a question earlier about the swaps we have rolling off next year. I mentioned kind of what we’re receiving we’re paying 5.44% on that $1 billion. So just as far as the math, as you get into 2025, it’s basically $250 million a quarter kind of sub-1% what we’re receiving and we’re paying around 5.44%. So that will be a benefit next year starting in January. Just wanted to clarify that.

Vince Delie: Thank you, everybody. Appreciate it. Appreciate the support from our shareholders. And again, very appreciative of our employees and the teams that we have and their desire to win. So we have a great culture, winning culture and people just want to do the best they can for their clients and compete. And I think we’ve proven that we do that very effectively. So thank you. Thank you, everybody.

Operator: Ladies and gentlemen, with that, we’ll conclude today’s conference call and presentation. We do thank you for joining. You may now disconnect your lines.