LPL Financial (LPLA) 1 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the LPL Financial’s Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today to Mr. Dan Arnold, President and CEO. Thank you. sir. ahead, go Please

and everyone Dilan, call joining today. thanks you, for to our Thank

quarter, of to and the environment, the much roles in Over mission past by practices playing face Americans, employees at to the dedication the of have providing while with thank they are want I financial our our responded a for of also resilience, advisors can ongoing I remotely. care flexibility advice ingenuity. so needed acknowledge to essential millions advisors same operating time, their take taking our to pivoting our of care want work their clients. and their own commitment they to challenging of

a environment Now and extraordinary changed, operating with principles a good execution we and has alignment believe culture in growth strategy are long-term while will drive with matched remain the our mission-driven value. We the same.

high same-store of and performance development new solid row by at are testament a those ago Following components at we business retention. in to which on share color on Starting a model remained results. the growth focus and the team. sales translated executing a In sales, over forward I was moving industry This $XX.X the a will appeal strength in our XX% annualized the backdrop areas. advisor on X% with third from our business also quarter assets quarter, principles, the results both totaled our second billion, quarter Organic store was in down of the our movement to of to while Today, were year plan. against X.X% or new higher growth our which quarter, new and rate. continued was strategic billion. business our continued of second driven across $XX second net recruited priorities, These by at those assets as

high for which consistent $XX outcomes forward as increased to respect levels solid the the we QX. past delivered the new in also assets in team. experience, were remain pull advisor environment is the challenging a recruited year, to nearly Scores with service With Promoter a at billion, Looking able were we Net our operating

high the of to retention with as affiliation XX% business was models, with at first flexibility over intangibles capabilities service to quarter of led half of financial for the advisors. of outcomes the experience key a resonate Additionally, new solid to EPS evolving These year and enhanced prior results also continue our second $X.XX. our

the created the operating in remote influence and Now work quarter, solve opportunities for. the while on remain the second we of business environment focused new challenges to

virtually; developed flexibility. for As meet remotely; Platform advisors and effectively a bundle instant Managed to to we remotely, clients including model with and help calendaring greater to connected online digitized, their their advisors schedule an more experience enhanced a time solution to stay for new operate capabilities, and advisors Centrally example, of messaging with an intra-office staff

summer, in we We a we virtual digital our more also this advisor continue of the landscape. canceling advisors new national pivoted with in-person evolve to demos, engage technology format networking. how Instead conference breakout our of and to hall and a experience. virtual traditional a exhibit sessions, of online the Similar meeting, general mix program to livestream X-day include meetings, our sponsor will fully the

and can who we in-person. might event their XX,XXX X,XXX the attend rather reach online, normally potentially advisors now the With all than staff of our

clients advisors and new look can their support approaches forward, we over that these like become As we virtual our time. way another will we expect

our Let’s executing now turn to on our strategy. progress

executing we advisors are we of ever In better focused for strategy As advice, remain light to growing we this, look for see our than serve share. additional ahead, we demand continue compete on believe and to market that positioned and shared and execute we not Strategic agenda. innovate focus we’ve strategy we changed, while Plays how to on has past. And strategic our which have in on X, the with enhances from our you X evolved the

You can framework our see in Investor updated Presentation. our

advisors $XX affiliation let’s respect With priorities, the our Play. through This as starting in continues winning our on walk first addressable our appeal that markets, $X expand meeting attract they our of traditional Strategic the of our on strategic their markets, our progress new our with leveraging from with also play and to platform strengthen our to trillion. where traditional our models markets to trillion advisors context, in more practices model evolution by pipeline. Now are to to involves while

our In continued onboarding competitive has an sales advisor increasing to be proven within digital process of the capabilities advantage. of evolution addition, the and for source

continue prospective advisors the As pipeline from our in interest a largest grow, is to and our result, history.

management our is our to to respect financial assets grow year. to M&T offering. that increasing third-party to transition opportunity models, to reached in XX traditional advisory U.S. billion markets help opportunity forward when in the support business. financial channel. will is we with their and clients, announced we $XX the bank expand market our serve independent business new Another their them become client proposition our to and launched our agreement Yesterday, growth on look we a advisors. wealth largest institution in brokerage our employee We With affiliation XXX and They by in value and platform. approximately bank contribute with M&T June, to next leadership its they their top onboard Bank in an

interest going early the model we and solid prospective expect and to advisors, opportunity our seeing We’re to results contribute pipeline from forward. set,

assets source as practices announced and E.K. advisor-owned the advisors Securities track X to both are we later Lucia of of quarter, on XX% of Approximately XX Riley this year. across X to growth. have and close join, transactions $X.X combined. approximately M&A advisors committed billion using an firms past over The acquisitions and have additional of also We’re those

their we our of in the a information to This way advisors The clients financial rollout new the to journeys. play, their marketplace. progress clients, and and for our in goes This In costs. while with helps this increase transactional new practices on goals. grow in attract their Strategic clients focused existing that quarter, help accessibility, win equipping and views Our the typical create tool personalize Play advisors spirit, to advisors is and financial app. to help of mobile with personal new began second providing over engage also advisors are their enables that capabilities on the for their individual solution turn advisors attracts interface differentiate we new Within to deepen beyond lower past their capabilities focused relationships, their digital advisors platform. towards providing clients digitally their practice enhanced help

look plan As help the invest to to we their to advisors ahead, enhance for we continue area in experience clients. overall this

third advisors. of our involves to advisors care deliver Play transforming The using which industry-leading and Let’s components and Strategic Play, a to delight are next and attract creating robotics clients, main service which their and ability artificial experience to intelligence model our move an this increases retain client in to instantaneous our turn, into Strategic model processes.

to service the made As our over part we want of quarter. transformation, that X technology-driven enhancements past highlight model I

skills-based their to from question. specific from means nearly the X,XXX we our with This routing trained service advisors benefit and of a voice who XX,XXX. nearly recognition all professional, advisors our combination First, to omnichannel of answer is interactive to scaled capabilities certified

our analytics we quality management. Second, speech capabilities enhance to new introduced

manage also We learning can service same capture quickly of us our the service sentiment score it. and are call. service use At artificial data and develop enrich more systemically issues positions and how to identify we machine This time, intelligence to and now to professionals. the using emerging address and each proactively this we

to Promoter levels. service and continue Scores a and our retention positive model advisors Our that on Net feedback is share our it tell increased to contributor key transformation, us

advisor-focused to fourth outsourced run marketplace, in June, Solutions, capital Assurance innovations the is advisors focused the introduced on Plan. the Play newest Our successful Solutions in businesses Business solutions. With respect our early offering, most as Strategic Business using we such helping independent and

peace positions solution us strategically of and mind continue in X subscribers businesses. that forward in along to of XX% With advisors with to to with value June, minimum XXX in their in can purchase We qualified family of, run and Assurance As clients the assets clients gives it plan, help will businesses at commission-free offerings portfolio protecting a advisor of to an have an we solution place. LPL succession facilitate challenge we grow taken our through we by valuation, the their over a this don’t be advisors this providing event and price. broader This of a provide After guaranteed to our our serving of and care launching industry, unplanned the exit. sale context, annual this first the their signed and continuing events. advisors The weeks. another look advisors Plan help across succession

that the talking while Within businesses to In fixes spirit desire we share at all black are take lot closing, equality their make understanding making these around with consensus our clients the our solve members to in inequality. are definitely of the employees and easy a committed we challenges, their have Before growing to while I family country engaging To I issues There address and generations. market we with and our our we of have racial clients, and to or the creating of advisors business promote second and a our that, empathy. leaders, a to progress is leadership. no in summary, simultaneously management In building thought order do continue are broad and want the advisors supporting been employees quick to learning, a inform difference. in need community our the to action future the committee for increasing LPL LPL, and quarter, our and to also in growth driving about equity strategy but advisors and LPL. there

for execute over continuing will see not we clients. long-term the opportunity usual, to value. ahead, return a that our an look on to create strategy call create future we better our I’ll is but that, ever this that achieve as Matt. and their As turn business With We rather to to goal shareholder than believe advisors just and

Thank to everyone today’s speak call. on Dan, you, I’m and with glad

discuss a I described to name everyone of of as each we relevant the measures. to Before our I GAAP I look at get provide wanted would used and the into Dan X business. that the Page release. measures, are my to state, prepared and reconciliations And measures non-GAAP remarks, just take several non-GAAP press encourage to they We

X forward-looking Dan to estimates. our results materially vary on use business some of those release, today, from could addition, describe will Page we results and In and actual I discuss also that statements that

as in please mind So that well. keep

continue their helping uncertain, the of financial remains in as the more in we an marketplace. Now to history. dreams. we clients invest have and in proposition to the value is our growth in serve These drive and goals their about macro to in organic rate why provide the never achieve help importance but we That turn, and turn been we environment advisors industry-leading the role the investments, QX, to generated quarter, our certain growth, play their clients highest us win our advisors for

So continue look excited serving we creating opportunities growing our advisors, about long-term to are we see ahead, as and we the shareholder business value. our

organic turn markets. to They by higher QX, starting our equity total assets. continued brokerage results, let’s billion, and growth up second $XXX XX% were Now with from advisory quarter driven and

recorded from growth, organic have pace rate. and This the highest billion or were assets Looking new annualized growth level a ago. at double our year quarterly X.X% a was $XX total we net

both retention, XX.X% new year-to-date. in assets Moving and to Recruited organic the and $XX.X quarter. X billion, growth, key reached recruiting are retention drivers of second highs which was were

in Managed of our billion a rate. over increased to or QX. we business XX% driven were growth assets, assets net growth at Within new $X.X rate. XX% an positive advisory platforms, annualized total advisory $XX.X Advisory mix, primarily or XX% to new trends assets by Centrally continue our Looking see annualized billion net of assets

intangibles discipline to to our Now growth of results. financial prior EPS expense continued with to let’s led QX $X.XX. combined turn Strong organic

from million net primarily expense, commission and were market lower production advisory bonus decrease The QX. decline lower following and million, down $XXX fees at payout, fees was they Looking QX driven equity higher by the seasonally $XX sales of advisory commissions.

revenues quarter. were QX, sponsor Moving million $X to the as revenues, asset-based average assets in in down sequentially million decreased $XXX on

$XXX short-term $XX revenues, lower by Turning to million QX, million, cash were primarily from down driven interest rates. they client

at at quarter closely $XX an more elevated they I want on you throughout to remained cash the also finished client update QX Looking ICA balances, give and portfolio. our billion.

to us new that balances billion yield a have us This billion by As currently higher-yielding of March, QX, variable a allowed which contracts. rapidly we variable reminder, the month allowed secure In balances move another overflow to capacity, $X that to when to ICA continued overflow remaining adding took increased balances, which minimize X. in of the capacity. rate close rate of action $X work we same amount to

We continue rate we bringing X-year balances, to $XX also rate about fixed given balances new adding curve, at time. at the note to fixed of added by points another portfolio was over of the flatness billion. I basis grow our XX these would point, yield the billion $X that the which total the

As highlighted. QX for of points quarter was client benefit from interest enhancements short-term ICA decrease cash The impact offset primarily down of the XXX I the basis by lower by driven basis ICA QX that yields, the rates, our was yield portfolio QX. XX points, full partially

of rates as fixed yield QX, our impact $X.X lower Looking maturity balances. ahead the will billion of LIBOR remaining of reflect well the as rate to ICA

rates, and yield factors basis cash our be expect were the interest client these XXX of balances end around rates QX, to and QX where Given points. we at ICA

Moving million on decrease volumes record sequentially. levels. they following activity and The lower revenues, to $XX down primarily by QX the were driven transaction was $XXX transaction million, QX fee

volumes which levels, to transaction QX, a a million run on QX. normalized have in more of to result rate $X basis ahead from Looking revenues returned decline around would in

which Core annualized below about to G&A half to outlook turn This roughly starting expenses, the first for million, is of G&A. $XXX end with the in expense the low brings our was $XXX of let’s of million rate flat Now QX. our an to year run range. It QX, Core

are At of the levels of in half operating volatile. resonating confident ahead, advisors time, investments we our environment growth, the plans same spending with driving Looking the as and record remains feel the our second year. for

stay to and expense plan flexible on dynamic we So management.

$XXX to manage to Core of factors, Given half to million. of we continue lower $XXX G&A our million these the range

sequentially conferences to promotional Moving we as $XX no million, were had on they expenses, major $XX QX. down million in

are to QX, a advisors, our conference, national ahead new and to for over conference a our including pivoted we investing digital and create experience platform, advisor to outside several still will content we while format, host Looking we speakers. meaningful days and a engaging virtual

and Given the million. expect our to conference from as assistance growth well as we recruiting expense be continued QX our transition promotional success, $XX around

allocation. capital Moving on to

to opportunities returning growth and foremost, to first pursuing framework continues shareholders. in be investing organic Our appropriate and M&A where excess capital

to Looking capital. of provide framework, our most attractive the on components growth highest the continues at returns organic and our

continue M&A opportunities compelling Our working capital. investments organic here are well, deploy inherently so want we positioned we the growth arise. also provide to we advantage to predict, should remain returns, while to to prioritizing is take of difficult can plan and as timing they

quarter in share we QX, of including growth the now, to capital delivered and on the another organic As In for rate forward. with we in our paused we on our shareholders, results repurchases will returns stay strong history. capital focus growth move combined though for continued M&A, macro highest preserving for and we as organic environment, dynamic uncertainty the closing, to given flexible remain in plan

continue As see we opportunities look serve that, we business value. long-term advisors, to operator, remain the questions. forward, create the we please for investing grow open about call excited our shareholder our and to With

question from [Operator Siegenthaler our you, Credit Suisse. first Please ahead. I Instructions] sir. Thank comes go from Craig show

by you with the the timing LPL see not LPL? We closes are after think the remaining XX% future now hope us next of and market can is everyone evening, market partnership that Good of Slide currently help the year. bank XX the size of serviced from M&T you that Thanks. partnerships and Can staying XX% about mid healthy. represents

question. in make at the we that that say, explore provider for openness create and was about exploring think look is to market Thanks banks would expanded the the not opportunity our marketplace, to larger to look, explore And Hi. roughly it’s X/X X/X alternative. bank roughly One appealing $X been And outsourcing new further, market. $X trillion. we’ve more I solutions working a that today about on willingness a to does. trillion and third-party down outsource do doing you that as like strategic if what does as set And click way overall of to that Yes. you ourselves,

business what will respect program enhance risk this able this M&T, reduce increase and their across broker-dealer or contribution BD so enterprise, own to We’ll our today that this can and help And do. client line is integrations transitioning the to We to unique on And help significantly. their to to we post financial overall that’s RIA the with run value – available clients. are custom offer across were line. we The platform. of they offerings today and to that that would their that the we work experience solutions business their create them and also made

an outsourced banks larger And historically for so we that’s interesting solution this line. think business and that compelling has not

And we’re larger solution financial alternative whether interesting be not them. in or an and in tend engage organizations be to or using in so size would for other that some to that option exploring it

that’s we in that where process. are So

So question. I helps hope that answer your

organic Thank could then last organic step-up channels another the progression very around impressed have thoughts there. when see over X%, employee if wanted we’ve you you, been we the open, I and rate? high of growth XXXX, level. Very few in your years, Dan. pure your helpful RIA In firm’s get both the very to now the growth And with

Yes.

which overall X percent organic QX, X-plus we in had We that to as always was to is able good X.X% prior growth So growth annualized growth to absolutely rate. we continue quarter, the coming our were rates achieve had rate. strategy to into increasing with growth respect quarters. have our on the momentum helpful work

in the model. the see of We and invest appeal continue to

and ability seen and model, certainly those of helpful. structural the to big we you these continue to grow, our experience an in are that improvement a the value our get time baseline our performance. message think of digital it At And team of share that enhancement service data-driven development evolve continue it achieve our effective strong that do and overall and of time, ways. We’ve X is the So the if same rates. their enhances and continues types numbers, overall business overall to drivers to continued the growth good, retention we then to improve ability the also really to and create really efficacy

You to models like as drive that new additional or up to the independent begins greater these us opportunities add example, in and catalyst that the an more model, employee batter’s to to an leg growth. be box give

And the more those growth with batter’s We traditional up things new in drive get so these to drive we in think us X growth. up will our markets. to swings together continue rates We markets. box continue help

your increase that levels complement sales continuing end to You retention driving growth. up maintain up and same-store with levels, good you

So to good that’s we’re our that. what feel ability trying to about do. do We

you, Dan. Great. Thank

you. Thank

comes Citigroup. from Our Katz go next from Please ahead. Bill question

a asset if very you’ve I’m out sort but momentum I more if could – the little frame of you was had of said, Matt, maybe through you of July happening yield given out you sort for or come the bit wondering, and exit think Okay. mix what’s the – dynamics, think just of with cash? Thanks sort you color then. the $XXX details, And of I And million since net yields much. I the sort in trends. thank then new have levels, monthly underneath around just curious that, quarter sort

ICA sort think on to the stress how of about that test So yield?

first mean, buck everybody, on when do, when largest charged a I July you gets the clients. advisory I’m at but is the for of remember, think look cash month Bill. balances, fees remember, of quarter just Sure, Yes. I to we sure

So that will naturally reduce cash.

that they’ve put aside look and you for if at activities the grown. balances in July, just So cash actually

bit. see, started a moved to but you’ve they’ve substantially, So up little not

would the think point basis in yields, seen anything XXX haven’t July end on that. meaningfully move the I where far at of – the think it’s that the everything I was comment I so quarter. was

are net in you different. across deadline when that see exactly from in this are net to to industry, that’s assets to I typically NNA investable you’re relatively then year the what mind July, I you the some subdued that get levels. think what we personal from new the tax see due, back are of in deadline, just July. see we’ve On using start through come to the That’s our no that’s shift asset keep in month. pay new normalized asset more the subdued usually month a NNA And income the And as trends, as month April think towards of taxes end those you most taxes. month, you seen tax And removed people is the

in the here QX. towards of consistent As starting we that we’re are back kind of ramp at to end the come with levels up month,

I covers I So got think X that right? questions, all – think I

Yes. Well, that’s my first question.

Okay. Thank you that. for taking

risk Second set just the balance to that recourse Assurance a picture think question. there opportunity need maybe sort Certainly this added sheet on Is of we one, with through effort? Program. appreciate big any the

sudden, disability if event, is passing your Yes. quick preserve remarks, that in take do in helping mean, what it’s of I And end you having the his their it value that they the can I is retail to the described to up the too, a as untimely bridge And their mind continue where advisor all about plan imagine, to they keep unfortunate value really of serve but can’t of not really an think a an well Bill. mean, key Dan there, investor, one, I really, is. clients. if practice. I’ll or advisors think business, no. is transition a thing I important

that be mind think with of a the that that’s list peace when But We I do. provide practices. buyers and primary advisors, are that across folks our XX,XXX of got of also to guarantee. we’ve that think look qualified long these practice and I we So thing you quickly

the in us value to an for can as they protect also like the and bridge instance retail the well. really really really get providing practice where really service of and a this to new to I’d served those a investors view family home So it be

number So one I that’s mind. I the in thing think keep

Okay. taking questions. very Thank you for the

Thank you.

next comes the Steven from Wolfe from Please go question Chubak Our ahead. Research. of line

Good Hi. evening.

on to potentially contributed Solutions wanted still of remote positive of the ROA? I surprise. of are some the fee new dynamics was Solutions during said is Business we that challenges additions acceleration from including last that firm? earnings some factors better And accretive just you you for marketing, start – in blended to Business work home, with call, the to in could than So succession hoping of to I expected solutions, of the subscriber the some speak off the the Dan, – be And and still did planning, see to differently, nice terms addition the spoke firm-wide QX. but ROA office are

Steven, Yes. thanks.

So over you quarter, much focused with in created And think to clients. A, opportunities. Business at first amount I time couple and with respect very new on if to the advisors sort of existing a occurring. their serving the conditions Solutions – focus saw their look of sort part the the they of you of of saw you that were the having back clients, spend that extreme question, significant things and supporting of

virtual the value potential change their offering, CFO and clearly the transition to environment. practice where their a within them any program, to downside client to how the and much, planning a and short through to about for the cash example move respect our to an CMO provide admin run, to flows having think made then and certainly in it those was much virtual remote advisors those easier relationships important shifted to manage understand helping communications. client As CMO helping With an

try Inside the So in think is itself, now new for weren’t probably reinforced volatile period, value, clients. that And occurred out those their the the a the associated as the up Business we we’re with that quarter quarter, Solutions. structural in and with come given that seeing, the increase on associated you’re the start to quarter those of that of them significant most solutions. it practices continued I in the optimistic that value engage hard them very on inside thing and subscriptions was potential reinforcement traditional that using pull focus advisors to really

ability So think as trend coming volatility. we though, see those within is the the period quarter, of we’re of didn’t seen, that we’re What as but to continue turnkey innovate quickly be technology capabilities Plan, Assurance and new be this operating solutions, whether advisors Solution, that I to it add new pivot Office remotely we’ve on with out whether helped the Remote to and items new many seeing a it it solution. also sales again, change

QX the we higher you did. of to more in the some labor still new overall overall services offering. we new the overall have a the than said, create So Those of services overall traditional a That sales baseline are within expect scale continue differently. and services drove than proportion contribution intensive business. or ROA, ones higher And to the mix the if that look these at

higher So cost. they would probably have higher and revenue

lower of Some lower Assurance solutions, these but have revenue Plan, the much new cost. would like

way a the would hope maybe traditional the that up with think that versus the – ones solutions newer we’ve to so the some in of helps. come just about be And quarter. I that

Yes. Thanks, be give transaction, some M&T you for the Dan. and very That’s a And was the hoping Matt. helpful. I to should how detail about relating thinking follow-up potential additional just could we on bank that accretion ROA can earn costs with and you around earnings incremental you associated just this context assets? typically maybe these blended And mandates servicing give those any from any the deal?

Yes. Sure, Steve.

M&T, usually more firms brokerage I than those institution like think are you when an advisory. at an look

on of would think, end baseline basis start range, of So an in lower the then if and top underwriting And lot – just when be returns of would would be same you you our XX of XX this assistance, – cost business, scale, on if right, point that at look which principle of be ROA which And the institution that, that, is serve the we so at the and transition with be to look basis matched here. size XX I at our to – we lower. add size, gross then up the of cost the profit to for also serve you a because the brokerage points.

delivered So it you look margin from quarter. lens, be accretive just EBITDA at what we if to an from a look our you – would together put all it EBITDA we margins, that if at this

clients. So as I in we’re his help opportunity them Dan their serve about remarks, the think we’re to help and M&T – said excited

for taking Thanks Great. my questions.

you. Thank

go Our Sachs. next question ahead. comes from Alex Blostein Please from Goldman

evening, Thanks. everyone. Good

wanted bit question first more dig a on Matt, the I guidance. promotional to expense So little

I So but step a be it conference, the the actual cheaper it’s pretty and appreciate feels somewhat than should still meaningful sequentially, like conference, virtual up conference. the

of help to What’s success And recruiting little what’s format, things a percentage company thinking be conference? forward quarter? in are So promotional bigger little from to guess, the a we given the quarter you bridge going virtual the smaller about expense just normalized? TA once picture, a the I maybe guess, growth bit the versus should having the slower, just relative I this a next guys delta are being bit

Yes.

promotional. those recruiting, Core the the teams the costs show question, that on I G&A, are second Alex, doing up not in think

get didn’t higher G&A have think little I guidance in Core the conferences question, probably swing cost our first any that On we that’s be thing that bit in So I is, the the the in would just a that. QX. we efficiencies makes and that on maybe think doing inherent your

large I in QX our larger in and conferences in then one largest of another QX. typically our have one QX, think we

core is really of both conference I So got with to and and think the about and hotels travel think a that on obvious, of really how that, get nature. talked higher, the provide advisors looks little that but focus The well I together and the prepared a – saving to and content think point things I state bit grow. businesses them remarks, we’re in trend to opportunities their our and I Dan on it’s you’ve to

that. So we’re I think doing really on focused

grow here now and We that the and us – yet. goes. is iterate have and turn, haven’t in going time. to really say, learn would our on help feel and will are grow I I conference think we that we we’ll This one, a done over those sitting first planning, be return I help based great in what our But think we investing confident in and how advisors it

a on then the follow-up And dynamic. you. Got ICA quick

the opportunistically, little disclosure a this it $X saw an color to where don’t basis more did a like rate, seeing incremental looks to recall quarter, unfolded. which this guys were I do opportunities billion. of kind extension basis It able So around locks lock this? at year this? above-market points point rate more since And XX there whole in like little of one a thing Maybe the bit kind XX similar are to you of of you

one one There day, Yes. day, was is XX. Alex, it at

is, we’ve rate focus and that interest balances, a minimizing on stable So here the fixed a on on I lot of right? rate the the allowing focus talked our us earnings – I think question the markets stream of your opportunities every of it to movements, we’re think about core now, lot more really we philosophy have the think right away that hopefully, you and not I take the And a monitor growth. day. think there is organic what – is I in investing

to forward, much the every a just where can pretty would state And opportunity the how at prepared do lots that’s that. obvious, think if bps. talking state the day. we’re The and to $X And tactical curve XX us flat. today, ready to is And billion something of XX obvious, right? I is move We’re that’s bps, do are to or not rates that to I there read banks

think I something. point at low all-time XX closed today at XX-year an the

right to for short do time, we’ll of opportunities, take our advantage even present them. if a themselves not a but period best of of So do lot they now,

great. That’s Thanks. right. All

Thank you.

Our comes next question Harris of Fargo. from Please the Wells Chris line ahead. go from

cash Hey, guys, follow-up on economics. a few questions

yields are growth so been, there the First, doesn’t potentially appetite sit that any has spreads? among might way down, where you whether more and to like your deposits? then to in today? is there that but banks is for they market reduce downside banks been And any risk money your has there retrenching, maybe loan the any up of change It acquire your sound frame could

for of quarter. we to was plus is the there think side $X a billion floating substantial this balances. XX appetite think at I fixed funds and billion where for are about, as Alex added if adds. pretty I look on lot is I capacity seen I balances Fed primarily just on that in at appetite on our we when least range, you think QX look mean And on size of the demand $X Chris, – those XX what with not the relative And for at just added Yes. are sheet, of rate we’ve appetite, I and the balance talking you another those. floating those cash

of the mind. things running sweep market really market a is On couple I off. I in The money keep money side, mean,

it’s And So not that’s share. the market our a getting ICA that’s to account tied from smaller is, smaller. our and like revenue product economics, purchase market is really product money the side. Really a directly on It’s interest where rates be. money would

see that more basis revenue now. the So right a that point end in range, XX it’s can of is share of higher you

So movements be to wouldn’t directly tied in rates. interest it

related, And on balances? work? for guys that earn The if can M&T quick, real can. – How do what transaction, does cash Okay. you I those the

Yes.

in the bank. general, and for are I state they think, M&T banks obvious, So own for their to

So that’s cash of serve the in institutions case keep times wealth the and their a just and lot balances will management business, will M&T.

balances will bank. their in cash staying those be So

you. Thank Okay.

you. Thank

Cyprys Please from from comes Stanley. Michael question next go Our ahead. Morgan

the of past the an the those you couple maybe are of just years? could joined, some next on are Managed your for of for afternoon. give couple platform maybe And been types – just about us hoping in of advisors that? Thanks taking platform, your taking platform. share I the see of quarters? back say, are have there, of of profile portion sense active a advisors users initiatives up Centrally that What likely question. more that Good $XX more that or of update what Centrally And circle have little that in you now. was on evolving wanted that many bit are you how Managed on years billion versus the those in I can to the also assets you on

Yes.

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Yes.

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Okay, great. Thanks, Matt.

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Yes.

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Got Dan. it. Thanks a lot,

show questions turn closing President you. I Thank no for the further this At to back queue. the to like time, CEO, call in Arnold, Dan I’d and remarks.

now. speaking we quarter. Please and for again the time afternoon. taking to this you, everyone, join look you Thank And operator, next us See stay forward with thanks, to safe. you

and Ladies gentlemen, participating. concludes conference for this you today’s Thank call.

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