Fulton Financial Corporation (NASDAQ:FULT) Q4 2022 Earnings Call Transcript

Mark McCollom: Yeah. Well, yes, and what I would say for us as well is, I mean, we had — for the third quarter, our total deposit beta was around 5%, and our interest-bearing deposit beta in the third quarter was 8%. And again, I know each of you calculate a little bit differently. We actually use kind of a weighted average Fed funds rate for the quarter. And then — but then for the fourth quarter, our interest-bearing deposit beta went from 8% in the third quarter up to almost 25% in the fourth quarter for us. So I mean, we did see our interest-bearing deposit costs went up 37 basis points, kind of spot to spot. But we saw more of that in the back half of the fourth quarter and would expect, again, that to continue here into the first half of the year.

Manuel Navas: On the — that’s great. On the loan side, have you seen much pushback yet on pricing — on higher loan yields?

Curt Myers: Well, the markets remain competitive for good loan opportunities, but it is not a more aggressive from a margin standpoint than it has been. I think it’s a more conservative stance in the marketplace as we kind of pick and choose the right growth opportunities for us.

Manuel Navas: That’s helpful. And I think my last question is, I think last quarter, you brought up the loan to value ratio on some of that office exposure. I think it was more on the small on the $500 million bucket was about 65%. What is it on the full $1 billion bucket? Do you have that type of data?

Curt Myers: Yeah. What we had referenced before is one of the larger deals. It is that 65% that was referenced fee before the overall portfolio has a lot of small deals in there granular. And the loan-to-value we referenced at that point of origination or a point of an appraisal or update. So it’s a moving target. Underwriting criteria has been conservative in the same over time. And then without reduction in asset value would reduce from that point. But the 65% specifically is for those larger credits I referenced before.

Manuel Navas: So you don’t have a number for the $1 billion.

Curt Myers: Correct. The overall $1 billion, we do not have handy.

Manuel Navas: Okay. I appreciate it. Thank you. Thank you so much.

Curt Myers: You’re welcome.

Operator: And speakers, I do not see any further questions in the queue. I would now like to turn the call back over to Mr. Curt Myers for closing remarks.

Curt Myers: Well, thank you again for joining us today. We hope you’ll be able to join us when we discuss the first quarter results in April. Have a great day.

Operator: This will conclude today’s conference call. Thank you all for participating. You may now disconnect and have a pleasant day.