Gary Guerrieri: Renewable energy tax credit typically sold may have a long gestation period. So there’s a long — it takes a lot of time to get to the finish line. So even some supply chain issues with the solar panels. So that’s elongated some of those projects.
Michael Perito: Perfect. Thank you guys.
Gary Guerrieri: Thank you.
Operator: And our next question comes from Brian Martin from Janney Montgomery. Please go ahead with your question.
Brian Martin: Hey. Good morning, guys. Congrats on nice quarter . Just one clarification. I think it was Vince D, you mentioned the pipeline is just — can you — I guess, was it 15%? I’m not sure if you were speaking more to the commercial, the consumer. Just give us an update on what those pipelines. I know they’re a little bit softer, but just connecting the dots here just now whether it was commercial or consumer and just kind of how they’re trending here.
Vince Delie: This is Vince Delie, and I was speaking specifically to commercial pipeline, non-consumer. So and what I said we had two very strong quarters in terms of production that tends to have to reset. We’re moving into a slower seasonal period, so our pipelines are down. And given all of that, when you look at it on a comparable basis, taking seasonality out of it, we’re still down 10% to 15% and the rebuilding — and they’re rebuilding the pipeline. That’s just something that illustrates where we are economically. I think there’s a lot of uncertainty, I think, our borrowers are on the sidelines for a little bit here to see what happens, right? And it’s going to be a little while until we start to see that build back.
Brian Martin: Got you. Yeah, in to second quarter. And then on the consumer side, how is that trending today?
Vince Delie: Yeah. Consumer pipelines, there’s seasonality there as well. So it’s kind of tough to say. I think the pipelines in general have been pretty consistent with where they’ve been seasonally, maybe down a little bit. Mortgage, there’s more production coming online. In terms of opportunities for us to take on adjustable rate mortgages on our balance sheet. So we’re seeing growth in that category. Direct consumer, we’re seeing a little bit of lowness in the space now. But that tends to build back up again as we move through the normal housing sales fees on the home improvement season starts to pick up here at the end of March. So it’s a little tough to tell small business is up. Small business is up pretty much across the board.
We have some good momentum the number of markets that we’ve entered. We have a fairly sizable portfolio there to the total bank. It’s not €“ yeah, it’s over a $1 billion, relative to commercial foot but we are seeing some really good positive momentum in the Carolinas and the Atlantic region.
Brian Martin: Thanks for the color. Maybe just one or two other, just on the inside the guide on the fee income side. Just kind of your thoughts on mortgage, obviously being kind of a low point for the year and sort of just trying to — as you think about next year, I guess, can you give any thoughts just on high level on how you’re viewing the mortgage activity given kind of what we saw throughout the year?
Vince Delie: I think I’m going to turn this over to Vince in a minute that I think — basically, the mortgage business, we’ve always kind of tracked globally what the expectations are from a number of statistical sources that tells us where the world is expected to be. We tend to do a little better not a little better, we do a lot better than what the typical forecasts are. So I attribute that to the geographic dispersion of our originators. We’ve had great success in certain segments as well Physicians program that we had that portfolios now grown substantially over $1 billion. So there’s little pockets that we go after, but there’s also certain markets that tend to have better housing markets generally than our legacy markets like the Carolinas and the Atlantic region.
Where we have originators dispersed. I think we’ll probably outperform the market overall again this year, I would expect that I think that the servicing portfolio that we have has been a good hedge for us from an earnings perspective. So that’s helped us but go ahead, Vince. You’ve had a couple of others back.
Vince Calabrese: Yeah. I was just going to kind of add to look at production overall for the fourth quarter, $967 million, seasonally down in the third quarter, but now 16%. So to Vince’s point, the high-level industry forecast right now is for production originations to be down 24%, baked into our expectations and our guidance is more like a down kind of 14%. So we would expect to outperform the industry like Vince said and we have done that in the past, and we continue to do that.
Brian Martin: Got you. Okay. So a little bit lower. You’re talking about 14% year-over-year is kind of what you’re looking at there, right, Vince?
Vince Delie: Yeah, full year to full year, right.
Brian Martin: Okay. Perfect.
Vince Delie: And just one more thing. I mean, with the lowering of the 10 year interest rate, we have seen a pickup in lockup volume in both mortgage and in the consumable, just saying that.
