Logo of jester cap with thought bubble.

Image source: The Motley Fool.

DATE

Thursday, April 23, 2026 at 10 a.m. ET

CALL PARTICIPANTS

  • Chairman, Chief Executive Officer, and President — Curtis Myers
  • Chief Financial Officer — Richard Kraemer
  • Investor Relations Officer — Patrick Lafferty

Need a quote from a Motley Fool analyst? Email [email protected]

TAKEAWAYS

  • Operating Earnings Per Share -- $0.55 per diluted share, aligned with last quarter, driven by consistent business execution.
  • Operating Return on Average Assets -- 1.3%, reflecting ongoing profitability and balance sheet strength.
  • Operating Return on Tangible Common Equity -- 14.76%, indicating sustained shareholder returns from core operations.
  • Pre-Provision Net Revenue -- $141 million, up $9.2 million from the previous quarter, demonstrating positive operating leverage and revenue growth.
  • Net Interest Income -- $262 million, down roughly $4 million, primarily due to day count, with both interest income and expense declining modestly.
  • Net Interest Margin -- 3.58%, down 1 basis point compared to Q4, maintaining structural stability rather than tactical adjustment.
  • Total Noninterest Expense (Operating Basis) -- $190.7 million, with an improved efficiency ratio of 56.7%, and a reported total noninterest expense of $200.3 million reflecting acquisition-related expenses.
  • Noninterest Income -- $69.8 million, steady compared to the previous quarter, again contributing over 20% of total revenue.
  • Wealth Management Revenue Growth -- Fee income for Wealth Management rose 12% year over year, leading overall fee income growth above 9%.
  • Loan Portfolio Growth -- Loan balances increased $121 million, with growth led by commercial mortgages, including a $200 million in-market portfolio purchase; partially offset by declines in construction and indirect auto portfolios.
  • Deposit Trends -- Ending deposit balances rose by $179 million, with growth from savings accounts and noninterest-bearing demand deposits, while maintaining pricing discipline and improved funding mix.
  • Provision for Credit Losses -- $14.4 million, resulting in an allowance for credit losses at $367.5 million, or 1.51% of total loans.
  • Nonperforming Assets -- Improved to 55 basis points of total assets from 58 basis points sequentially.
  • Net Charge-Offs -- 25 basis points of average loans annualized, indicating stable credit quality.
  • CET1 and Tangible Common Equity Ratios -- CET1 ratio reached about 11.9%; tangible common equity ratio rose to 8.6%.
  • Share Repurchases -- $24.5 million of common stock repurchased in the quarter, with $125 million remaining under the 2026 authorization.
  • BlueFoundry Bancorp Acquisition Closed -- Completed April 1; management reiterated the deal is expected to be immediately accretive to earnings and tangible book value in the second quarter.
  • Guidance Update -- Full-year 2026 operating guidance affirmed; only update is an interest rate assumption shift, modeling a 25 basis point cut in July instead of March.
  • Loan Pipeline Activity -- Commercial loan origination and pipelines increased meaningfully versus prior-year levels, supporting annualized mid-single-digit loan growth expectations.
  • Expense Outlook With BlueFoundry -- Management expects combined expenses to reach about $200 million by year-end, with $27 million added for BlueFoundry over Q2-Q4; anticipated to reach 50% of planned cost saves run rate by the fourth quarter.

SUMMARY

Management highlighted that Fulton Financial Corporation (FULT +1.10%) closed its acquisition of BlueFoundry Bancorp (NASDAQ:BLFY) on April 1, with integration progressing and financial benefits expected to be realized starting in Q2. Deposit balances increased notably, driven by both savings and noninterest-bearing accounts, even as funding mix and pricing discipline remained intact. Asset quality continued to improve, as both nonperforming and criticized assets trended down during the quarter, supporting a stable credit outlook. For the remainder of 2026, executives reaffirmed full-year guidance and expect core expense growth to proceed as planned, while purchase accounting accretion from BlueFoundry is projected to elevate net interest margin sequentially. Management stated that the combined company maintains strong capital levels, intends to prioritize organic growth, and will approach share buybacks and capital deployment opportunistically based on future market and business developments.

  • Richard Kraemer described the $24.5 million in share repurchases as aligned with ensuring “plenty of room” remains under the $125 million authorization, noting that repurchases depend on organic growth, and other capital allocation priorities.
  • Management clarified that BlueFoundry’s deposit base carries a much lower concentration of noninterest-bearing deposits, which will alter the consolidated pro forma mix going forward.
  • Curtis Myers revealed the commercial loan portfolio purchase was about $200 million, featuring an average loan size of $1.2 million, sourced directly from an in-market institution with a comparable client profile.
  • Richard Kraemer noted, “classified and criticized continues to trend down,” with nonperforming assets also declining, reinforcing credit stability.
  • Regarding cost saves, Richard Kraemer confirmed, “by the end of the fourth quarter we will be at our 50% cost save run rate” post-BlueFoundry integration.
  • Management sees up-market commercial lending and expanded wealth management as key revenue enhancing opportunities in the newly acquired northern New Jersey footprint.
  • Richard Kraemer indicated the Basel III capital proposal could be “modestly beneficial” given Fulton's portfolio, though further specifics were not provided.

INDUSTRY GLOSSARY

  • Pre-Provision Net Revenue (PPNR): Earnings before credit loss provisions, taxes, and extraordinary items; measures underlying earnings power from core business activities.
  • Net Interest Margin (NIM): The ratio of net interest income to average earning assets, tracking the profitability of a bank's lending and investment activities.
  • CET1 Ratio: Common Equity Tier 1 capital ratio; a key regulatory capital measure of core equity capital relative to risk-weighted assets.
  • Cost Save Run Rate: The annualized pace of cost reductions achieved, typically expressed as a percentage of targeted savings in a merger or integration.
  • Brokered Deposit: Deposit funds placed via third-party brokers, often used for funding but may entail higher rates and less relationship value.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to the Fulton Financial First Quarter 2026 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' 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. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Patrick Lafferty, Investor Relations Officer. Please go ahead.

Patrick Lafferty: Good morning, and thanks for joining us for Fulton Financial's conference call and webcast to discuss our earnings for the first quarter ending March 31, 2026. Your host for today's conference call is Curtis Myers, Chairman, Chief Executive Officer and President. Joining Curtis is Richard Kraemer, Chief Financial Officer. Our comments today will refer to the financial information and related slide presentation included with our earnings announcement, which we released yesterday afternoon. These documents can be found on our website at fult.com by clicking on Investor Relations, and then on News. The slides can also be found on the Events and Presentations page under Investor Relations on our website.

On this call, representatives of Fulton Financial Corporation may make forward-looking statements with respect to Fulton Financial Corporation’s financial condition, results of operations, and business. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, and actual results could differ materially. Please refer to the Safe Harbor statement on forward-looking statements in our earnings release and on Slide 2 of today's presentation for additional information regarding these risks, uncertainties, and other factors. Fulton Financial Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements. In discussing Fulton Financial Corporation’s performance, representatives of Fulton Financial Corporation may refer to certain non-GAAP financial measures.

Please refer to the supplemental financial information included with Fulton Financial Corporation’s earnings announcement released yesterday and Slides 27 through 34 of today's presentation for a reconciliation of those non-GAAP financial measures to the most comparable GAAP measures. Now I would like to turn the call over to your host, Curtis Myers.

Curtis Myers: Well, thanks, Patrick, and good morning, everyone. For today's call, I will provide a few high-level observations and some operating highlights for 2026. Then Richard Kraemer will review our financial results in more detail and discuss our outlook for the remainder of the year. After our prepared remarks, we will be happy to take any questions you may have. We are pleased with our start to the year. The first quarter reflects the strength of our foundation and the consistent execution of our strategy. We made continued progress against our strategic priorities by growing the company, delivering effectively, and operating with excellence. As a result, we are effectively serving all of our stakeholders.

We have maintained a clear focus on long-term value creation and the benefits of our community banking model are evident in our performance. Our teams across the organization remain focused on serving customers and operating efficiently in a dynamic environment. From a performance standpoint, first quarter operating earnings were $0.55 per diluted share. Profitability remained strong with an operating return on average assets of 1.3% and an operating return on tangible common equity of 14.76%. These results reflect solid execution across the business, disciplined balance sheet management, and effective capital deployment as we repurchased shares while growing tangible book value.

During the quarter, strong revenue generation and prudent expense management drove positive operating leverage, demonstrating the underlying earnings power of our business model. This execution resulted in an improvement in our efficiency ratio to 56.7% and supported strong pre-provision net revenue performance, increasing $9.2 million linked quarter to $141 million. Our balance sheet and liquidity position give us the flexibility to meet customer demand and proactively invest in growth opportunities. Our continued investment in talent and capabilities remains central to our strategy. Targeted hiring and selective team lifts continue to enhance our growth efforts as these new team members become productive and help expand pipelines. These investments are translating into stronger activity, higher productivity, and deeper client engagement.

Building our overall team is aligned with our long-term growth objectives. Loan activity during the quarter was solid, led primarily by growth in commercial mortgage, including an opportunistic purchase of an in-market commercial loan portfolio. That growth was partially offset by a decline in construction balances as well as the continued planned runoff of the indirect auto portfolio. Most importantly, origination activity remains healthy. Pipelines continue to build, and overall demand fundamentals remain constructive. Commercial loan origination increased meaningfully in 2025, and early 2026 origination is running above prior-year levels. Relationship manager productivity has further improved year over year, resulting in increased customer engagement and enhanced sales results.

Given these trends, we believe we are well positioned to continue generating disciplined, smart growth. On the funding side, deposit trends were also positive, reflecting strong engagement in each segment of our customer base supported by effective sales execution and disciplined pricing. Our teams continue to focus on building deeper, meaningful relationships, which is driving results and further improving engagement. This momentum reflects the strength of our relationship banking approach and the continued impact of our customer experience initiatives. We remain focused on maintaining a balanced funding profile while carefully managing deposit costs in a highly competitive environment.

Noninterest income was steady during the quarter and again represented more than 20% of total revenue, highlighting the benefits of our diversified business model. Revenue growth in Wealth Management was partially offset by normal seasonal declines in other fee categories. On a year-over-year basis, fee income grew more than 9% across all businesses compared to 2025. This was led by a 12% increase in Wealth Management. From an expense standpoint, we remain focused on cost discipline. Expense levels and underlying trends were consistent with our operating plans, as we continue to balance targeted investments with improved efficiency across the organization. Credit performance remained stable and was relatively in line with last quarter.

Nonperforming assets improved to 55 basis points of total assets, from 58 basis points in the fourth quarter. We are mindful of the broader landscape, including ongoing geopolitical developments and their potential impact on economic conditions, customer sentiment, and market volatility. These dynamics reinforce the importance of disciplined, balanced, and prudent credit decision-making as we move throughout the year. We are also pleased to close the acquisition of BlueFoundry Bancorp on April 1. This marks an exciting milestone as we bring together two organizations. Our focus is on thoughtful integration, supporting customers, aligning teams, and building on the shared strength of our combined franchise. Integration planning is progressing well, and we look forward to completing these efforts later this summer.

As we look ahead, our priorities remain unchanged. We will continue to focus on profitable growth, prudent risk management, and disciplined capital allocation while delivering value for our customers, our team members, and our shareholders. With that, I will turn the call over to Richard Kraemer to review our first quarter financial results in a little more detail.

Richard Kraemer: Thanks, Curtis, and good morning, everyone. Unless I note otherwise, the quarterly comparisons I discuss are with 2025. For the first quarter, operating net income available to common shareholders was $99.7 million, or $0.55 per diluted share, consistent with last quarter and reflective of solid execution across the business. On a GAAP basis, earnings were $0.51 per diluted share. The difference between GAAP and operating results was primarily driven by acquisition-related expenses, core deposit intangible amortization, and other nonoperating items detailed in our reconciliation tables. Net interest income totaled $262 million, declining approximately $4 million, driven largely by day count.

Within that, interest income declined due to slightly lower loan and security yields, while interest expense also declined, reflecting continued progress in managing deposit pricing and improved funding mix. The net interest margin was 3.58%, down just 1 basis point from the fourth quarter. Importantly, margin performance continues to reflect underlying structural stability rather than short-term tactical actions. Deposit pricing discipline continues to mostly offset asset yield pressure, and funding mix improved as brokered balances declined further during the quarter. Our interest rate risk profile remains relatively neutral, providing stability throughout a volatile and less predictable rate environment. Deposit average balances were stable, while ending balances increased $179 million during the quarter.

This was driven by softer earlier-quarter seasonal trends, which rebounded as the quarter progressed. Growth was driven by higher savings balances and an increase in noninterest-bearing demand deposits. Total cost of funds decreased 9 basis points, reflecting both pricing actions and favorable mix. Loan balances increased $121 million during the quarter, with average loans also up modestly. Yield trends reflected ongoing repricing dynamics, while credit spreads on originated loans remained stable. As always, we continue to emphasize disciplined pricing and return thresholds. Moving to the investment portfolio, securities increased by $28 million as investments as a percentage of total assets remained at 15%, a level that continues to provide balance sheet flexibility.

Liquidity remains strong, supported by a well-diversified funding base. AOCI increased by $23 million during the quarter given the late March rise in interest rates. Noninterest income totaled $69.8 million, effectively flat with the prior quarter. Wealth Management revenue increased during the quarter and was partially offset by modest declines in commercial and consumer banking fees, largely due to seasonality and two fewer days in the quarter. Fee income again represented just over 20% of total revenue and continues to enhance earnings stability. On the expense side, total noninterest expense was $200.3 million, down $12.7 million from the fourth quarter.

The decline was driven primarily by lower incentive compensation and continued discipline across nonpersonnel costs, partially offset by $2.6 million of acquisition-related expenses. On an operating basis, expenses totaled $190.7 million and the efficiency ratio improved to 56.7%. We believe this level of efficiency is sustainable as we continue to invest selectively in people, systems, and strategic priorities. Credit performance remained stable during the quarter. The provision for credit losses was $14.4 million, resulting in an allowance for credit losses of $367.5 million, or 1.51% of total loans. Nonperforming assets improved to 55 basis points of total assets and net charge-offs were 25 basis points of average loans annualized.

Our reserve levels continue to reflect a balanced, prudent assessment of portfolio performance, forward-looking economic assumptions, and borrower- and sector-level analysis. Turning to capital, our CET1 ratio increased to approximately 11.9% and the tangible common equity ratio improved to 8.6%. During the quarter, we repurchased approximately $24.5 million of common stock under our 2026 authorization. From a capital allocation standpoint, our priorities remain funding organic growth first, maintaining discipline around share repurchases, and preserving flexibility for future opportunities. We closed the acquisition of BlueFoundry Bancorp on April 1, and the transaction will be reflected in our second quarter results. From a financial standpoint, the deal is expected to be immediately earnings and tangible book accretive in line with previous expectations.

Revenue enhancements are expected to be driven primarily by relationship expansion. We remain confident in both the strategic rationale and the financial benefits of the transaction. Looking ahead to the remainder of 2026, our expectations remain consistent. We are affirming our full-year 2026 operating guidance, with the only change being an update to our interest rate assumptions to reflect a 25 basis point cut in July rather than March. We continue to expect annualized mid-single-digit loan growth, controlled expense growth, and strong capital generation. Overall, our first quarter performance reflects high-quality, repeatable earnings supported by prudent risk management and disciplined execution. We will now open the call for questions.

Operator: Certainly. As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please limit yourself to one question and one follow-up in the interest of time. Our first question will be coming from the line of Daniel Tamayo of Raymond James. Daniel, your line is open.

Daniel Tamayo: Thank you. Good morning, everybody. Maybe one for you, Richard Kraemer, on the expenses to start things off, just because it was, I think, a better quarter than expected in the first quarter from a core perspective, but then the guidance was reiterated. Help us think about the pace of expense add and then cost savings as we go through the year, and if you are, as we think about where we may shake out towards the end of the year from a run-rate basis post everything with the deal, if there is a number or a way to frame that, that would be helpful. Thanks.

Richard Kraemer: Yeah, thanks, Daniel. So, look, overall I would still point to the annual guidance. I think there is a lot of comfort around that kind of middle of the range. That would imply, obviously, progression higher from that $191 million operating base today on a stand-alone basis to something closer to $200 million by the end of the year. And then you have to factor in what we called out last time — we still feel very comfortable with that $27 million for the second, third, and fourth quarter combined for BlueFoundry.

That will obviously be a little bit heavier in, call it, July, but we think by the end of the fourth quarter we will be at our 50% cost save run rate. So hopefully that helps.

Daniel Tamayo: Yeah. I mean, maybe I can try and put a little bit of—well, I have to work through the model a little bit, but I think the number I am looking at for the consensus—I had a number around the $2.15 range, I believe, in the fourth quarter. Is that in the ballpark? Is it possible to get that specific?

Richard Kraemer: My gut reaction is that is a little high based on where we should be on a run-rate basis and hitting that 50% cost save.

Daniel Tamayo: Okay. Helpful. Thank you. Do you have—just give us some help on the classified and criticized in the quarter directionally from where they ended in the year?

Richard Kraemer: Yeah, Daniel, classified and criticized continues to trend down. Nonperforming is trending down. So those credit metrics continue to either be stable or move in a positive direction.

Daniel Tamayo: Okay. Thanks for that. And then, lastly, the deposits—it was a nice strong quarter of core deposit growth in the first quarter. Just give us your thoughts on your ability to hold those levels. Obviously, not expecting the same kind of growth going forward, but from a perspective of noninterest-bearing and overall core deposit growth, how you are thinking about the trajectory from here?

Richard Kraemer: Yeah, we do not see long-term trends changing. We did have a good first quarter. Core was up. There is seasonality. There are account flows in commercial and municipal. So those things will bounce around quarter to quarter, but those trend lines we see being pretty consistent as we move forward. The only thing I would add is just keep in mind the composition of BlueFoundry deposits in the very near term. We bring that on in the second quarter. They had a very low concentration of noninterest-bearing. On a percentage basis, that is going to change our pro forma a little bit. But on the balances, that commentary stands.

Operator: And as a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. Our next question comes from the line of David Bishop of Hovde Group. Your line is open.

David Bishop: Hey, good morning, gentlemen. Curtis Myers and Richard Kraemer, just curious, you guys definitely bucked the trend in terms of core and Mid-Atlantic, able to show loan growth here. What geographies drove the growth? And what did prepayments and payoffs look like this quarter relative to the last few?

Curtis Myers: Just a couple of points on loan demand and growth overall that might be helpful. We continue to expand the teams throughout the footprint, so we have been ramping that up as we talked about over the last couple quarters. Pipelines are meaningfully higher year over year, and up even linked quarter, so fourth-quarter to first-quarter pipeline up. That is a good metric. You get to the end of the year—that typically tails off and then you rebuild in the new year—but we are up linked quarter. We think we are generating the originations we need to get the guidance. We reaffirmed the guidance.

There certainly are headwinds: runoff in construction for us; the perm market is very competitive, so we are being prudent and selective in what goes to permanent; so you have seen over the last four or five quarters some headwind from that. And borrower sentiment—they were a little apprehensive in the first quarter. I think that is why you see a little softer first quarter overall. We are feeling that as well. But we definitely have some good momentum. And just to be clear, I think we have the team in place, and we are winning business at the pace that we can get our guidance.

As a data point on construction, the maturity schedule that we have seen—the actual maturities we saw over the past year versus what we see over the next four quarters—was double. We are looking at 50% or less of that maturity wall for construction to perm over the next four quarters, so that helps alleviate a lot of that future pressure as well.

David Bishop: Got it. That is good color. And a follow-up on capital planning: are there any target levels you are managing to in terms of CET1 or TCE that, over and above, you would consider excess for share repurchases?

Richard Kraemer: We do not manage to specific levels. We feel capital is pretty robust right now. We were pretty active in the buyback in the first quarter. We feel well positioned to deploy capital—and, again, that is organic growth, any corporate activities, whether it is a portfolio purchase or a bank, something like that—and then we will use a buyback opportunistically. We feel good about our capital levels, and I think that gives us a lot of opportunity and flexibility as we move forward.

Operator: Our next question will be coming from the line of Casey Haire of Autonomous Research. Your line is open, Casey.

Analyst: Hi, good morning. This is Jackson Singleton on for Casey Haire. Richard Kraemer, I just wanted to touch on NIM into the second quarter given the close of BlueFoundry. Any help you can give here on what we can expect directionally?

Richard Kraemer: Yeah, directionally higher. We reaffirmed our NII guidance, but feel good about the purchase accounting marks that we announced initially. You will start to see that purchase accounting accretion come through in February. I would say on the core margin, if you think about deposit repricing, I think that is starting to trough. So I would turn attention more towards, I think it is actually Slide 21 of our deck, on some of that fixed asset repricing and the back book—lots of maturities. On the $4.4 billion of loans we have repricing within the next twelve months, you will see, at current market rates and spreads, anywhere from 50 to 60 basis points benefit on that back book.

So you really start to focus more on the asset repricing going forward. But we feel good about the original estimates we had out there for BlueFoundry, so that will all start kicking in soon.

Analyst: Got it. Okay. And then for my follow-up, have you done any work on the Basel III proposal and the impact it could have on capital ratios?

Richard Kraemer: Loosely. I think there is some benefit to us because of the relative size of our residential portfolio. I do not have specific numbers to cite, but it is modestly beneficial.

Operator: Our next question will come from the line of Matthew Breese of Stephens Inc. Your line is open, Matthew.

Matthew Breese: Good morning. I had a few questions; I will keep it tight. First, Curtis Myers, I think you mentioned a portfolio purchase. What was the size of it? In market, out of market? And are you considering additional portfolio purchases to get the guidance?

Curtis Myers: Yes, Matthew. It was a unique opportunity—commercial portfolio right in the heart of our franchise. It was a really good opportunity. We purchased it from a high-quality institution that does business the way we do—granular, about a $1.2 million average loan size in there. Overall portfolio was around $200 million. It is a pretty similar customer base to ours, again, right in the heart of our market. We have referenced this a couple times over the last couple years—we want to be in a position opportunistically, whether it is a portfolio purchase or bank M&A. We are always looking for these opportunities. This was unique, we were positioned well, and we feel really good about it.

Matthew Breese: Okay. And then with BlueFoundry, you get, geography-wise, deeper exposure to Northern New Jersey, which are economically more vibrant areas. How does that change the loan growth outlook for you? Does it change commercial real estate growth dynamics? Is that a 2026 or 2027 event? And, oppositely, is there anything on their books now that you have it that we should anticipate being in runoff mode?

Curtis Myers: We feel really good about that market. It is a good market. We were in the market with a handful of financial centers and had teams covering it from further away, so this really gets us in that market in a bigger way. We got legal day one quickly. Integration is going well. Their team is energized; our team is energized. We feel good overall about it. The market is not going to move the overall dynamics for us—we are going to do business similarly there as we do throughout our footprint. Their book is very much a community banking book—small business and small real estate.

We have a lot of opportunity to go up market in real estate, which they could not, but do things that we typically do throughout the footprint. We are not looking to do anything different than we do—our mortgage business, our wealth business. The synergy we got on the Republic transaction for our Wealth business was pretty meaningful, and we think we are going to have those kinds of opportunities there. So we see up-market commercial, we see Wealth, and then just a really good market overall driving all of our businesses. We definitely see it as a net opportunity.

From a runoff standpoint, there is nothing on there that we are saying, “We do not do that business; we are going to run it off.” Through transitions you get a little bit of runoff risk that we will work really hard on, but there is nothing specific and purposeful that will run off that is meaningful to the overall organization.

Richard Kraemer: I might just add: a significant portion of the originations have been either brokered or third party. On the residential side, we have a pretty significant capability in origination, so we will be able to replace—not necessarily run off, but replace—that with Fulton-originated paper, which is going to help spreads and absolute yields in those portfolios as well. It is a nuance, but I do not think it is runoff; it is more of us using our capabilities to replicate what they were doing.

Matthew Breese: Last one for me. Share repurchases—you have been at it consistently for five or six straight quarters. It feels like we have ended up in a range of $20 million to $30 million per quarter in buybacks. Is that something we should model at least the next couple of quarters, if not through the end of the year?

Richard Kraemer: We are always looking at that, and I think it really depends on a couple things. It depends on organic growth—that is where we want to deploy capital the most—then other opportunities where we might want to hold on to capital, and certainly market dynamics and pricing. We look at buybacks like we look at M&A or any other corporate activity. We have hurdles and metrics that we look at to be active in the market. Typically, there are opportunities within each quarter that we have been able to do some buybacks, and we would look for those opportunities as we move forward.

We have $125 million remaining, so we have plenty of room, and we definitely are looking for those opportunities.

Operator: I would now like to turn the conference back to Curtis Myers for closing remarks.

Curtis Myers: Well, great. Thank you all again for joining us today. We hope you will be able to be with us when we discuss second quarter results in July. Thank you, everyone.

Operator: This concludes today's program. Thank you for participating. You may now disconnect.