Q4 2024 Fulton Financial Corp Earnings Call
Good day and thank you for standing by. Welcome to the Fulton Financial 4th Quarter 2024 results call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone.
Total loan growth was meaningful while legacy Fulton loans grew $316 million or one 5% total loan growth for the year was $2 7 billion or 12, 6% when including Republic. Our net interest margin was consistent with last year at 342% given the volatile interest.
Rate environment, we feel that this was a positive outcome.
Our noninterest income growth was strong excluding the impact of the gain on acquisition and the loss on the securities restructuring noninterest income grew $31 million or 13, 4% to $259 million.
All noninterest income generating businesses grew led by wealth management at $9 2 million or 12, 2% growth.
Noninterest income continues to be a meaningful contributor to total revenue at over 20%.
We declared dividends of <unk> 69 per share a 6% increase year over year.
And we continue to actively manage through the credit environment, working with borrowers and managing relationships for long term performance, while we see pressure due to the ongoing impact of higher rates and higher cost performance. In 2024 was in line with our expectations. Overall, we were pleased with our performance in the results.
Our team generated throughout the year.
Now, let me turn to our quarterly results.
Operating earnings for the quarter was <unk> 48 per share a stable balance sheet, a noticeable improvement in expenses drove the quarter.
Total deposits were relatively flat with deposit costs down 10 basis points linked quarter.
Total loans declined $131 million linked quarter, we generated a consistent level of originations. However, organic growth was offset by portfolio repositioning of selected Republic loans as well as the planned decline in our indirect auto portfolio.
Our loan to deposit ratio ended the year at 92% slightly below our long term operating target of 95 to 105. This position continues to provide balance sheet flexibility.
Noninterest income for the quarter was $68 6 million up $1 2 million linked quarter, when excluding the adjustment to the bargain purchase gain.
The provision for credit losses was $16 7 million and our ratio of ACL to total loans increased to 158%.
Overall asset quality ended the year in line with our expectations and we remain cautious as we enter 2025 now.
Now I'll provide updates on two key initiatives.
First let me comment on the status of the Republic transaction.
During the quarter, we completed the systems conversion finalized our integration efforts and are now realizing cost savings in line with our initial assumptions, we saw noticeable financial contributions to the fourth quarter results and are excited to see the full benefits impact our results in 2025.
Finally, I'll provide you with our progress on Fulton first.
As a reminder, Fulton first is an important initiative designed to enhance growth improve operating effectiveness and create sustainability positive operating leverage over time.
We are encouraged by the progress we've made to date and we are looking forward to the full benefit realization over the next year and beyond for 2025, we expect the initiative will improve our operating efficiency and allow us to keep our expenses flat on a year over year basis. We feel this is a significant accomplishment.
<unk> in the current operating environment now I will turn the call over direct to discuss our financial performance and our 2025 operating guidance in more detail.
Thank you Kurt and good morning.
Speaker Change: Unless I note otherwise quarterly comparisons I discuss are with the third quarter 2020 for loan and deposit growth numbers I may reference our annualized percentages on a linked quarter basis.
Speaker Change: Starting on slide five operating earnings per diluted share was <unk> 48.
Speaker Change: Were $88 9 million of operating net income available to common shareholders.
Speaker Change: Deposit growth was relatively flat for the quarter growth in interest bearing demand and savings account products were offset by a decline in time deposits.
Speaker Change: Our noninterest bearing DDA balances were flat linked quarter at $5 5 billion and remained at 21% of total deposits.
Speaker Change: As previously mentioned total loans declined $131 million during the quarter due to the portfolio dynamics, we discussed.
On hand balance sheet liquidity remained strong at over 19% of liabilities and included an increase of securities of $261 million offset by a decline in cash of $380 million.
Speaker Change: Some of the decline in cash balances can be attributed to the maturity and subsequent repayment of $168 million of subordinated debt in the quarter.
Speaker Change: Impacts of these balance sheet trends are shown on slide six.
Speaker Change: Net interest income on a non FTE basis was 254 million a $4 million decrease linked quarter net interest margin declined by eight basis points to 341%.
Speaker Change: The linked quarter decline was primarily driven by the effects of 100 basis points of easing by the fed from September through December.
Speaker Change: In addition, we added $900 million received fixed hedges to support a more neutral interest rate risk profile.
Speaker Change: Loan yields declined 23 basis points linked quarter to 597%.
Speaker Change: Included in the loan yield is 13 net $13 9 million of accretion attributable to the purchase accounting marks on the acquired Republic loan portfolio.
Speaker Change: Our average cost of total deposits decreased 10 basis points to 214% linked quarter.
Speaker Change: This decline was primarily due to the deposit pricing actions taken in tandem with the fed monetary policy.
Speaker Change: Turning to noninterest income on slide seven noninterest income for the quarter was $65 9 million.
Speaker Change: This included a fair value adjustment to the bargain purchase gain attributable to the Republic transaction of $2 7 million excluding.
Speaker Change: Excluding this adjustment fee income increased $1 2 million or 7% linked quarter.
Speaker Change: Moving to slide eight noninterest expense on an operating basis was $196 million.
Speaker Change: A decrease of $5 5 million linked quarter or 3% on a linked quarter annualized basis.
Speaker Change: As of December 2024, we are achieving our projected annualized cost save estimate of 40% from the acquisition of Republic and are realizing the efficiency benefits of Bolton FERC.
Speaker Change: Material items excluded from operating expenses as listed on slide eight were charges of $10 million of Fulton first implementation and asset disposal expense.
Speaker Change: $9 6 million of acquisition related expenses and.
Speaker Change: $6 2 million of core deposit intangible amortization.
Speaker Change: Turning your attention to slide nine Youll see a reminder of the expected benefits of the Fulton purse initiative and financial assumptions.
Speaker Change: Yeah.
Speaker Change: Turning to asset quality, the net charge off ratio was up modestly to 22 basis points, while nonperforming assets to total assets increased five basis points to 69 basis points.
Speaker Change: Our ACL to total loans remained near historical highs at 158%, while the ACL for nonperforming loans came in at 172%.
Speaker Change: Slide 11 shows a snapshot of our capital base.
Speaker Change: As of December 31, we maintained solid cushions over the regulatory minimums.
Speaker Change: Our tangible capital ratio was flat linked quarter, despite being impacted by additional OCI reserve of $44 5 million.
Speaker Change: OCI ended the year at a negative $288 million.
Speaker Change: On.
Speaker Change: Slide 12, we are providing our operating guidance for 2025.
Speaker Change: Our guidance incorporates the projected decrease in fed funds of 25 basis points in March and 25 basis points in June of 2025.
Speaker Change: For 2025, our operating guidance is as follows we.
Speaker Change: We expect our net interest income on a non FTE basis to be in the range of 995 million to 1.02 billion.
We expect our provision for credit losses to be in the range of $60 million to $80 million.
Speaker Change: We expect our non interest income to be in the range of $265 million to $280 million.
Speaker Change: And we expect our noninterest expense on an operating basis to be in the range of $755 million to $775 million for the year.
Speaker Change: Our operating estimate excludes potential open first charges of $14 million and CDI amortization estimated to be $22 5 million.
Speaker Change: And lastly, we expect our effective tax rate to be approximately 18% for the year.
Victor: With that I will now turn the call back over to Victor for questions.
Victor: Thank you and as a reminder to ask a question you will need to press star one on your telephone and wait.
Turning to be announced to withdraw your question. Please press star one again, please standby with compile the Q&A roster.
Victor: One moment for our first question.
Speaker Change: Our first question comes from the line of Danny Tamayo from Raymond James Your line is open.
Speaker Change: Thank you good morning, guys.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Maybe just.
Speaker Change: Start with a clarification question if I can.
Speaker Change: On the average earning asset guidance the growth.
Speaker Change: The low single digits, that's off of the annual number the 28 595.
Speaker Change: I'm assuming.
Speaker Change: And if so is that whats.
Speaker Change: It's a decline from the fourth quarter number just curious what's driving that.
Jamie: Jamie can you clarify we didn't give provide guidance on average earning assets.
Jamie: I apologize I'm not sure if I'm looking at the wrong thing here.
Well.
Jamie: Why don't we just talk a little bit about what youre thinking in terms of.
Jamie: Balance sheet growth for the year and kind of.
Jamie: Where you may see that in terms of loans and on the deposit side as well.
Curt: Yes, Dan it's Curt.
Curt: So we're really focused on giving your NII guidance, which you can see in the information.
Curt: And then on asset growth.
Curt: We continue in this operating environment to expect.
Curt: Low to mid single digit growth on both sides of the balance sheet as as we move forward.
Curt: Okay, Alright fair enough.
Curt: Yeah.
And then maybe you can just talk a little bit about the provision guidance.
Curt: Curious how you guys are you thinking about like loss rates going forward.
Curt: Normalization process are we approaching a peak.
Curt: Im just curious where you guys see normal reserves, given the little bit of movement, we've seen there as well.
Curt: Yes, so for 2024, we had given guidance and.
Curt: $40 million to $60 million and the provision excluding the day one.
Curt: Seasonal double count was just under $50 million. So we're right in line with expectations last year, the guidance going forward the balance sheets, a little bigger.
Curt: This year based on the acquisition, so looking at that and looking at where we're positioned right now.
Curt: We expect a similar.
Curt: Year as we did in <unk>.
Curt: Last year and Thats why we have that operating range on provision we have a bigger reserve.
Curt: Going into the year.
Curt: That's kind of how we see things right now pretty stable.
Curt: Relative to what we've experienced.
Curt: Gotcha.
Curt: So what I was looking at.
Curt: Just to clarify the first question I was looking at your comment on the operating guidance slide low to mid single digit interest, earning asset growth. So you are saying thats peer.
Curt: Period end and not average.
Curt: Yes that would be period end.
Curt: Got it okay.
Curt: I think that answers my question then alright.
Curt: It's all I had thanks for taking my questions.
Danny Tamayo: Thanks Danny.
Speaker Change: Thank you one moment our next question.
Speaker Change: Next question will come from the line of Chris Mcgratty from <unk>. Your line is open.
Hey, How's it going this is Andrew <unk> on for Chris Mcgratty.
Speaker Change: Sure.
Speaker Change: Good morning, just on the NII guide.
Speaker Change: It looks like with.
Speaker Change: The growth you gave in the guidance it implies relatively stable margin.
Speaker Change: How should we be thinking about the cadence of the margin as we move throughout the year.
Speaker Change: Yes look I think we're going to try to stay away from specific margin guidance, just given the potential for <unk>.
Speaker Change: Several dynamics when we think about NII I would tend to think.
Speaker Change: Cadence over the year would be starting starting years slightly lower than <unk> given some.
Speaker Change: Growth and also day count adjustments and then gradually drifting higher over the course of the year.
Speaker Change: Okay. Thank you.
Speaker Change: I know you've said in the past the buybacks had been third in line for <unk>.
Speaker Change: <unk> now has the environment or your appetite change to start thinking about buying back shares here in 2025.
Speaker Change: Our priority for capital utilization would be the same in that that would remain third on the list. We do have an approved authorization. So we have that that corporate flexibility to do that but our priorities remain the same.
Speaker Change: Okay, great. Thank you I'll step back.
Speaker Change: Yeah.
Speaker Change: Thank you one moment our next question.
Our next question will come from the line of David Bishop from Hovde Group. Your line is open.
David Bishop: Hey, good morning, gentlemen.
Speaker Change: Good morning.
Speaker Change: Just curious in terms of the default and first initiative.
Sure.
Speaker Change: The guidance just curious maybe to date I don't know if theres a way to quantify maybe realized cost saves or cost saves that are already sort of in the run rate.
Speaker Change: Yes in fourth quarter.
Speaker Change: At about just under $5 million in the run rate.
Speaker Change: So on a quarterly basis.
Speaker Change: Got it and then I think the 25 is estimated to be $25 million correct in terms of the whole year.
Speaker Change: Yes, so I think.
Speaker Change: The simplistic view is you take that obviously both are by the five by 2000 and you get incremental quarterly saves over the course of the year getting to your 25.
Speaker Change: Got it.
Speaker Change: Then in terms of the maybe shifting gears there but.
Speaker Change: Retention of the Republic Bank deposits just curious.
Speaker Change: What youre seeing there and trends in.
Speaker Change: Are you seeing any sort of mix shift there thats either aiding our abetting margin expansion. Thanks.
Speaker Change: Yes, overall, the deposit portfolio the team's managing it well and it's stable so.
Speaker Change: So we had initial run off I think we talked last quarter about it stabilizing that continued through <unk>.
Speaker Change: This quarter that that deposit base has been.
Speaker Change: Pretty stable and we continue to be ahead of our initial.
Speaker Change: Assumptions on potential runoff.
Speaker Change: Got it and then maybe Rick just a housekeeping question.
Speaker Change: Sometimes tough to predict but purchase accounting.
Speaker Change: Accretion income about $13 $9 million any sense, maybe where that average is per quarter into 2025 specs.
Speaker Change: Yes on a quarterly basis, you should be looking somewhere in that 13 $5 million to $14 million.
Speaker Change: Perfect. Thank you.
Okay.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question will come from the line of Matthew Breese from Stephens. Your line is open.
Matthew Breese: Hey, good morning.
Speaker Change: Good morning.
Speaker Change: First off I was just hoping for maybe a reminder, on the breakout between floating adjustable and fixed rate loans.
Speaker Change: And kind of what drove loan yields this quarter I'm, assuming it was just all floating and then the other thing I was hoping for along the same lines.
Speaker Change: Given some of your fed outlook expectations.
Speaker Change: Where do you expect loan yields to bottom during the year yields were down 23 bps this quarter.
Speaker Change: I was thinking you have another another quarter or two or down yields but to a lesser extent I was hoping you could walk me through that a little bit. Thanks.
Speaker Change: Yes, sure, Matt Hey, Matt.
Matt: Just to put your attention on slide 14 of our earnings supplement we did we did put a little bit more detail on there on the bottom left corner in terms of.
Matt: The actual dollar breakout of variable versus fixed versus adjustable and then did provide some await the weighted average contractual repricing date in terms of periods of the years. So that'll give you a little bit of a look in terms of.
Matt: Obviously, the variable component just under $10 billion is relatively short call. It sub one month in terms of repricing, but the adjustable piece of $5 7 billion.
Matt: Re prices on average at 448 years right. So it's certainly a more fixed in the short term.
Matt: I would also lead you to the.
Matt: The coupons on that book ex purchase accounting.
Matt: Closer to 5%. So you do get a tailwind in the current environment of those repricing over the call. It the next.
Matt: The foreseeable future with where rates are.
Speaker Change: Great I appreciate that and then the second part of the question was just.
Speaker Change: Given your fed rate outlook expectations walk me through kind of loan yield expectations, and where do you expect where do you expect to hit the bottom on loan yields with two cuts this year.
Speaker Change: It feels like the NIM is going to be down and to the right or NII can be down into the right beginning of the year, but up into the right as we kind of get past the fed cuts.
Speaker Change: Yes, I think thats right.
Speaker Change: Hesitant to give a number on loan yields, but directionally in the cadence you're right, assuming we get that.
Speaker Change: To pause you should start to see a fairly.
Speaker Change: Fairly nice rebound because of that repricing dynamic I mentioned on the adjustable piece right. So a little bit probably similar type of maybe we got 100 basis points effectively September through December.
Speaker Change: I wouldn't expect quite the same amount of pressure on loan yields, but directionally and timing wise I think youre right.
Speaker Change: I appreciate that and then Rick last quarter, we talked a little bit about the deposit.
Speaker Change: Rate environment, I think you had said something to the effect of near term around the 10% beta longer term 30%.
Speaker Change: Just give us some color on the on the deposit competitive environment, and how you're faring relative to those goals and when do you think you can hit kind of that 30% debate vehicle.
Matt: Yes, I think I think Matt if we look at as I look at at least on.
Matt: On spot rates, we are we're approaching on F&B nmb's cycle, which is obviously a short cycle call it 20% plus mid twenties.
Matt: So I think I think we're probably going to get close there hopefully in the next couple of quarters.
Matt: Certainly the pricing dynamics have been beneficial I would also point on total deposits.
Matt: On the same page slide 14 Youll.
Matt: Recognize that we have a substantial amount of time deposits that mature over the course of 2025.
Matt: And some of the pricing on those lease on average is call. It 436.
Matt: Retail Cds makes up make up about 85% of that.
Matt: And those have seen fairly substantial downward repricing. So similar rate call. It $4 35, I would expect to see 50 to 80 basis points potentially more of a benefit over the course of the year, assuming a stable competitive market.
Speaker Change: Great and then last one before I hop back in the queue.
Speaker Change: Low to mid single digit loan growth for the year was hoping for some clarity on where you expect to grow and where you do not expect to grow in the last couple of quarters C&I has been weak, but it's been.
Speaker Change: Other areas of kind of helped out and I'm curious if we continue to see that trend in 'twenty five.
Speaker Change: Yeah, Matt.
Speaker Change: We're in a position to really focus on growth in all categories.
Speaker Change: So we feel good about where our CRE position is.
Speaker Change: C&I is always a focus consumer is always a focus for us. So we're going to continue to be focused on the diversification of the balance sheet.
Speaker Change: And trying to grow.
Speaker Change: In all categories.
Speaker Change: We do have the <unk>.
Speaker Change: Headwind that we had in this past quarter around the consumer indirect auto run off and some repositioning of acquired loans.
Speaker Change: We might continue to have some of those headwinds and that's why we're we're looking at.
Speaker Change: Low to mid single digit loan growth.
Speaker Change: Great. Thank you I appreciate that.
Speaker Change: Thank you one moment for our next question.
Speaker Change: We have a follow up from the line of Dani <unk> from Raymond James Your line is open.
Speaker Change: Oh great.
Speaker Change: Hello again.
Speaker Change: A couple of quick ones here first.
Speaker Change: I know you guys arent talking about margin, but just curious if you have an expectation or how youre thinking about the accretion income expected this year.
Speaker Change: It should be fairly stable kind of in that 13 $5 million to $14 million a quarter. So youre looking at four and a half to $4 five to $4 six of their $4 seven a month.
Speaker Change: Yeah.
Speaker Change: It tends to it'll drift slightly lower as year goes on with us.
Speaker Change: That's a good range.
Speaker Change: Okay and hearing you say that I think.
Speaker Change: Said that already so I apologize for the second question hopefully this one is also not a repeat but.
Speaker Change: Just just curious on the guidance, where you talked about.
Speaker Change: The line items impacted by lower.
Speaker Change: Rates I'm, sorry by rates in terms of.
Fee income.
Speaker Change: Curious, specifically, where those might show up and then.
Speaker Change: Your thoughts on mortgage banking within the fee income guidance overall.
Speaker Change: Yes look I think on rates, depending on what happens like the more volatile business lines or the more exposed business line to rates are going to be mortgage banking as you mentioned.
Speaker Change: Commercial swaps certainly and then also wealth management I think depending.
Speaker Change: Depending on where rates move equity market movement obviously.
Speaker Change: You know how it correlates to the to the revenues of that business. So those are the primary pieces.
Speaker Change: You think some of those line items could actually be down in 2025 versus 24, or just a slower growth rate.
Speaker Change: We're coming off of historic our record growth in our wealth management and <unk> had two years consecutive of 20% plus returns on the S&P. So I think we are.
Speaker Change: Being appropriately conservative in some of the forecast there.
Speaker Change: And then again commercial swaps.
Speaker Change: If we get if we're expecting low to mid single loan growth.
Speaker Change: Likely won't be.
Speaker Change: A huge year there.
Speaker Change: Okay alright. Thanks, Thanks for taking my follow ups I appreciate it.
Speaker Change: Sure.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question will come from the line of Frank Schiraldi from Piper Sandler Your line is open.
Frank Schiraldi: Hey, good morning.
Speaker Change: Right.
Speaker Change: Just wanted to ask about you know you got the systems conversion.
Amit: Amit apart BK.
Speaker Change: Completely you obviously still have.
Amit: Work you are going through with the.
Amit: First initiative, but just curious where.
Amit: Potential M&A fits in in terms of priorities is that something.
Amit: More likely to be looked at.
Amit: After holding first is that something that you could do incrementally.
Amit: Nearer term just curious your thoughts.
Amit: And maybe guideposts around.
Amit: What you would be looking for in potential deals.
Curt: Yeah, Frank it's Curt.
Speaker Change: Our strategy is the same on M&A, we look at.
Speaker Change: $1 billion to $5 billion community banks in market really really have us.
Speaker Change: Consistent culture, and operating model and provide and accelerate our growth.
Speaker Change: Then more strategic larger ones, we look at them in two different buckets that strategy is the same to being to your question of being in position to do.
Speaker Change: You look at M&A, we feel we are back in position to look.
Speaker Change: At M&A right now and we would weigh the various corporate initiatives that we have going on to make sure.
Speaker Change: That is the appropriate thing for us to do.
Speaker Change: And that we can handle all the different activities. So we are engaged as we always are in.
Speaker Change: In that activity and it's a possibility, but again, we will make sure we have the operating capability.
Speaker Change: To make sure we execute effectively.
Speaker Change: Okay, and then sorry, if I you have probably clarified this in the past, but just the first initiative the $50 million kind of run rate through 2026.
Speaker Change: Is that.
Speaker Change: On the.
Speaker Change: Totally on the expense side is there any additional pickup there.
Speaker Change: Revenue side anticipated.
Speaker Change: The initiative.
Speaker Change: Yes, all of that guidance, Frank as expense base.
Speaker Change: Okay.
Speaker Change: So is that yeah, sorry go ahead.
Speaker Change: Just to just to add there our growth.
Speaker Change: Initiatives as well pretty significant growth initiatives.
Speaker Change: But we arent building those into the numbers.
Speaker Change: And they're going to be in our run rate as we execute going forward there to drive corporate growth, but we won't line I'd like them.
Speaker Change: We're just going to generate and execute on those strategies.
Speaker Change: Gotcha. Okay. Do you think the timeline is sort of the same in terms of fully integrated by 2026 not to put too fine a point on it.
Speaker Change: Yes, so the strategy implemented implementation will be on the same timeline, but with any revenue growth. It takes time to build customer base and build that revenue.
Speaker Change: So that is over time and again will be included in our overall growth forecast and expectations.
Speaker Change: Got it Okay makes sense. Thank you.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question comes from the line of Monroe Nevadas from D. A Davidson your line is open.
Speaker Change: Maybe just to follow up on that.
Speaker Change: Can you go into more detail about some of the revenue initiatives I guess some of them are definitely year out.
Another quarter, along the process just seeing if you could give any more update on.
Speaker Change: That kind of.
Speaker Change: Commercial growth initiatives.
Yes, just because some overall comments.
Speaker Change: What are the initiatives are to focus on our core strengths.
Speaker Change: So where we are currently performing well add value to clients have a strong strategy to further.
Speaker Change: Enhance that growth and focus on that.
Speaker Change: And then specifically on the business banking small business, we've done well.
Speaker Change: And in our marketplace. It is a significant opportunity around number of customers.
Speaker Change: And revenue growth so that is the specific line item.
Speaker Change: A customer segment that will focus on even more than we already do we have a significant customer base now, but we think we can have a transformative growth in the small business category.
Speaker Change: Should we expect kind of more updates as the year goes on or.
Speaker Change: Or maybe a year from now would be the update.
Speaker Change: How should we think about that revenue generating opportunities.
Speaker Change: Yes over time, we're going to talk about those business segments and growth.
Speaker Change: Over time, so you will hear more about it.
Robert: Robert Bleed through the through this year, you'll hear it in the construct of fourth and first but long term.
Robert: Youll hear about that just as we operate and drive value and growth.
Robert: Great great.
Robert: Shifting over loan growth for a second did you give an update on commercial loan pipelines I apologize if I missed that and I just wanted to hear if there is.
Robert: Is that loan repositioning of FRB case side is that kind of done is there any more headwinds.
Robert: From that and the indirect auto and <unk>.
Robert: Dissipated.
Robert: Just kind of thoughts on near term loan growth.
Robert: Those in mind.
Yeah, specifically to the headwinds so on the indirect side.
Robert: The portfolio is around $390 million and balances remaining and it's got an average duration of about two six years. So I think you can.
Robert: Will you did you would expect to see a similar type of runoff per quarter call. It in that $40 million range.
Robert: But in terms of the Republic repositioning I think.
Robert: We've integrated in the fourth quarter, so that was probably the the.
Kurt: The largest actions youll see but let kurt kind of elaborate more on some.
Robert: Some other detail.
Speaker Change: Yes, I just want to go back to the first part of your question. So there isn't the headwinds the indirect auto and then.
Robert: As you work through an acquisition.
Speaker Change: We're going to have some of that that will moderate.
Speaker Change: As we move forward and again on Republic.
Speaker Change: We want to get to stability in deposit stability and loans and then grow.
Speaker Change: From there. So the team is really focused on growing that strategic marketplace.
Speaker Change: <unk>.
Speaker Change: Greater Philadelphia Metro area. So we think we have a really strong base to grow from I think youll see that pivot.
Speaker Change: Throughout this year as we work through those transitions.
Speaker Change: And do we get the first part of your question.
Speaker Change: The commercial pipelines I don't believe unless unless I missed it somewhere else and.
Speaker Change: So on promotion pipeline the pipeline is relatively flat, so a pretty pretty consistent and we.
Speaker Change: We've really been focused on the pull through rate so.
Speaker Change: Our borrowers.
Speaker Change: Moving forward are they are they expanding or are they buying that equipment.
Speaker Change: And we really haven't seen much of a change there, but we're hoping that the environment improves and that our underlying business customers become more confident.
Speaker Change: To move forward on projects. So we really don't think we have to grow the pipeline as much as.
Speaker Change: Have borrowers be confident in this environment to move forward with projects.
Speaker Change: I appreciate that commentary.
Speaker Change: Matches with many it's so maybe lumber kind of grows across the year.
Speaker Change: Ed.
Speaker Change: Folks become more certain.
Speaker Change: On the on the economy and our policy is that kind of the main thought process.
Speaker Change: Correct.
Speaker Change: Okay.
Speaker Change: I appreciate it thank you.
Speaker Change: Thank you.
Speaker Change: Not showing any further questions at this moment I would now like to turn it back over to Curt Myers for closing remarks.
Curt Myers: Well. Thank you again for joining us today, we hope youll be able to be with us when we discuss first quarter results in April. Thank you.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect everyone have a great day.
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