PBCT
#No, there isn't.
Well, as we look at it both in terms of through the year and into the coming years in our planning process, what we see is basically continued focus on growing revenues and kind of leveraging the opportunities that we've created with the people that we have on the ground in the various businesses.
We'll continue to grow the revenue pieces and to continue to tightly manage expenses and reduce expenses where we can.
We see it gradually, slowly, but gradually improving over time.
So I'm not going to give you a number for the end of the year but we do see continued movement forward.
We really spend a lot of time, Steve, as we've said repeatedly in terms of focusing on managing our expenses.
We have an executive level expense management committee, EMOP, that is meeting on a regular scheduled basis and on an ad hoc basis probably close to every day.
We scrutinize every hire, every position refill, if you will, replacement of folks that are leaving.
We look at every contract on a regular basis.
We get ahead of those contracts as we've described over time.
I'd rather have us do that, the bankers on the ground with the understanding and the expertise of the Company than hire somebody to do it.
I don't think we need to do that.
Sure.
We are doing the prep work as we've described before.
We actually have within our PMO structure, project management office, a full project that looks across the requirements to close ---+ to across the $50 billion mark.
Kind of like I just described with the consultants idea on the expenses, we're putting time and energy into understanding what it would mean and then attacking the work that goes into preparing for that.
So whether it's moving from DFAS to CCAR filing or whether it's writing a living will, et cetera, et cetera, understanding what it means, reaching out in the industry and understanding what other folks have done.
We think ---+ really we've been preparing I'd say beyond ---+ this is more than a year ago that we started this.
It will continue forward with the idea that if we get to a spot where we are crossing $50 billion, whether it's naturally, organically or through acquisition, that we're prepared to do that.
Basically, we position ourselves so that has minimal impact.
Obviously, it will have some impact but it will minimize it.
Yes, I would say, we are not totally done but we're ---+ we've got everything clearly in sight.
We've got a lot of work done.
If it were obviously the appropriate opportunity, understanding the commitment and the strategically the importance of that type of transaction, we would consider it if it were right.
Thank you.
Sure.
In aggregate, as we said, the new business that came on in the quarter was higher than the originated portfolio.
When we look at spreads of new business relative to the existing portfolio, individually the C&I ---+ if you look at our major portfolios, C&I is additive at this point, primarily reflected by the Fed move last quarter and one month LIBOR moving up.
That's mostly a floating rate portfolio.
Same thing would be for our HELOC portfolio.
Where we're still not additive would be longer term fixed rate loans that are more susceptible to the shape of the yield curve.
So commercial real estate is still not additive.
Equipment financing is slightly negative as well at this point.
ABL would be additive because, again, it's a LIBOR based portfolio.
Hopefully that's helpful.
Yes.
My response to <UNK>'s first question, when we think about the margin coming in where it did, it was primarily driven by lower loan volumes.
With that comment, I'm not being specific to whether it was floating or fixed.
It was just higher yielding assets that didn't hit the books or hit the books at a lower volume rate than expected.
So that's really just a volume issue.
When you think about our asset sensitivity, there's really ---+ there's two components.
That's why we talk about yield curve twists and show the slide.
So, we try to show investors what the short-end impacts are to us as well as long end.
With what happened from mid-December or just in the last two quarters, if you will, is we had benefit from rising short rates, Fed funds and LIBOR, but some of that benefit was given back as the yield curve flattened.
So when we look at the balance of the year, those two components will still come into play as well as volume.
Sure.
So, Jack, I would say ---+ I would characterize the commercial business lines, pipelines generally ---+ obviously not all of them, but generally in about the same range they've been over the last year, quarter to quarter.
There's a couple that are a little ---+ up a little more substantially.
But for the most part I think you think about the whole book, the pipeline flow is about in line.
On the residential mortgage as I just mentioned, that's up significantly and at a high point in recent times.
So I hope that helps.
All right.
Thank you.
Thank you again for joining us this morning.
We appreciate your interest in People's United.
If you have any additional questions, please contact me at 203-338-4581.
Have a great day.
