Fifth Third Bancorp (FITB) 19 Apr 222022 Q1 Earnings call transcript

00:04 Good morning. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fifth Third Bancorp First Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Doll, Investor Chris begin you XX:XX conference. your Instructions] Director Relations, of may [Operator

well operator. with everyone can These financial to Good forward-looking as I'm performance. this for you, on Officer, and XX:XX Credit measures, Thank Jamie forward-looking the XX:XX non-GAAP morning, presentation. cautionary the statements in obligation CEO, information Today, first of Third's of measures, use statements be Stein. non-GAAP our This joined Please Richard the the of release Fifth as We review and CFO, Chairman Leonard; joining materials, and to Greg about reconciliations to we'll discussing found and for materials our which morning, date our pertaining contain XX:XX results call. update our statements Carmichael; quarter Chief along no by XXXX. be us. Spence; undertake President, you any such after thank earnings Tim

Greg, we his comments. turn Tim now for the Greg Following me prepared to and call Let the remarks will call for XX:XX Jamie, by over questions. up open

XX:XX reported of income quarter joining you $XXX Thanks, share. of first per or million $X.XX net Earlier today, and Chris, thank us. all we for

$X.XX a were included per Our reported first Excluding share. XX:XX total over the from to Holdings. earnings swap, Visa $X.XX EPS negative the impact return AvidXchange impact adjusted mark-to-market these quarter items,

excluding up of in in we our success cash During portfolio We strength took advantage X% X%, a of year-over-year quarter, points generated that on core grew $X XX:XX of for on by the PPP. which quality average billion approximately our growth also entry deposits securities including increased strong generating an reflecting basis. We growth, deposits growth, X% again C&I household grew our loan attractive market transaction consumer with excess deploying once average basis.

quality, growth, yet our approach basis reflecting interest-earning quarter low of a of increased underwriting, selection XX credit charge-offs had of and resulted We asset record benign another sequentially, just to which excluding client near net PPP. income As our interest result in X% points. disciplined

our plans our continued credit many my saw to I and to effective week, transition retire announced As Xth. Executive CEO addition last as muted Chairman of NPA In criticized to commercial you remained improve. assets to losses, XX:XX July stable,

of commitment several management of part articulated and platforms. importance. appointed I'm well that generate strong succession unanimously project the heavily lending various to more Tim results has plans managed maintained the key profile with among me thorough As risk Spence performed as geographic peers. We our North strategic resilient strategic high percentage We is our underwriting exposure succeed that Star, including financial relationships product improvised We to of our CEO. totaling XX:XX planning we to XX:XX next our in service business leverage excited reduced investments process, Board billion achieved. our exiting diversified generate XXXX. believe cycles, would priorities focusing we deliberately our credit non-core quality proud prioritize $X this our we and on to I announce a when for a treasury more invested return through Fifth We we (ph) tremendous businesses, our customer building our right know strong sheet, maintaining transformed while, remain our time discipline. our performance. portfolio, down and as that results, to balance experience, transition, had credit-risk financial the given skewed a taking what and health CRE fee the differentiating for of of respect on a I our optimizing financial on focus since growing Fifth actions building long-term follow businesses. and CEO, us diversifying our innovation proud Third's became our and expense I a CRE allowed Third X% shifting legacy revenues, including very Shareholders when discipline, who areas sustainable made management, capital expense systems, cautious a and than necessary, which lowest with a relationships sector with limits. am concentration to We centralizing in with commercial exited I approach We level and digital

We Financial. our while portfolio XX:XX Dividend, in advantage earnings us versus strategic U.S. made quarter-after-quarter, business as the highest in focus extend was our to year-after-year. cycle, in that our Provide, Street serve we technology well and growing perform we our result, the structure a XX:XX excess of far allowed fastest XX:XX significant MB grew are nonbank a and households including scores From As satisfaction a Capital, and of security median quality in Franklin We percentage now top build the today. and acquisitions like commitments, peer generating market strategic franchise share day accelerate HXC, and more, employees has quartile improve below through stakeholders, also Coker generate consistently cash to taking the in peers. resiliency our a to a generating stable, our predictable in to have TM better customers. while our sustainable would has consumer and customers, build and earnings consistent And of for invested Coast fees and We peers. among value that revenue on We the in capabilities. to West one, established also to growth investments peers acquisition in We focus we average, and Southeast organically the all added Chicago position through broaden that leading communities. flows my from our customers’ XXXX

intentionally peers rate these our the asset-sensitive expect extremely us some environment. various business time, perform Fifth Furthermore, long-term this the taken Third years of highlight and several impact all to to near-term at we balance past for decisions set profitability these points XX:XX the in over the proof of outperformance While up have to sheet relative actions cycles. improve well we through

benefits the which economy, the higher the for shortages with and revenue is likely elevated inflation, aggressively mindful labor chain a are . existing rates fairly that policy U.S. August, are we there constraints overall curb of risk tightens combined the monetary to be With supply in

because Tim However, entire and given the a honor Fifth great best-in-the-industry. strong actions as is work Also and technology. you long-term over of Third have and I'm Fifth a an say positioned I of I that want thank for of and support is visionary are since say Tim to leadership the have like Third’s prepared can excellence team team, been of leadership lifetime. integral is and the part an [indiscernible] a to our leader. I discussions XX:XX through proud that strategies for which team, of this shape and almost enjoyed board Tim, our have and with say ever these of innovation XX:XX with that fortunate you to positioning performance call. hand confidence want and extremely of what for tenure. in lead been just employees is outlook and an to I for been great well outstanding Before the we’ve helping me He of financial with develop about Fifth all our well would CEO believe the outperformance. Third executing I that I'm into is Third earnings the so such your my is XXth grateful has to seasoned also I all being future. is incredibly I thank Third XXXX, we vision accomplished. my investor Fifth to and community. final I quarterly our Fifth

We inspire Tim. the that have over turn and of Tim's communities. others With Thank and that do improve it has short lives let together our I leadership, you. customers things, nothing under will of me accomplished you of great continue that well-being to been our remarkable. XX:XX know

Greg kind honored XX:XX incredible Good Third's the to be words all. for I'm you, to morning future. of like as more footsteps and . next leader I an Fifth you. follow-on Fifth the could about Thank Third's serve excited CEO to you

then the over years the Given our several past should areas in strength bank. and and continuity we the my of the expect strategic how focus performance, our role in you company run

focus, consistent of investing results maintain financial while for future. will culture expense produce operational and discipline to our accountability the We

well new the topic, past experience over to proactively respond renewable demand continue create over place as bank and ESG and that which and levels suite, fees of launched before and unparalleled became shifts financing our More will and take with multi-year mainstream pandemic. Dividend that digitally and the focus to the management our taking of on now, next our a mindful we winners services an FinTech and product award-winning decade. geopolitical is years, prudent that differentiated consistent create arise. it we will the No before government as industry and threats, potential our the remain debt us central years Momentum will including as structural anticipate and receivable scale tail potential evolving broadly, population advantage best-in-class automate the competitive shifts several deliberate will risk before such accounts long-term but enabled acquisitions We have of Provide aging, the XX:XX rollout world of a are punitive seen became customer contemplating positioning the you Partnerships managers business bank Finance payable environments, the one tightening consumer knows look energy take will in always risks, peers, term. to actions to national it's reduction many among like for like well well platforms the XX sure from what Banking opportunities treasury losers

we take all increase XX:XX band footprint mid-year our our be also across are job that concurrently yesterday, that are when an of first four announced our most will successful we We we increasing to a end, will in that provide (ph). wage $XX we hour our that our To stakeholders. belief and steadfast employees to in wage we minimum care

In incremental will will $XX from of It throughout employee benefit these total, disproportionate who result branch these on In of than in XX% this the do. our we and term, have roughly XX:XX employees including operations according the employees. costs are best-in-class face retail retention recognize increases, short taking the because Fifth in XX% our We simply expenses. Third. despite annualized thing million leading that our rising a having more economy of the right to frontline actions to impact workforce is are the research

wage expect to However, recruiting more from improved outcomes turnover, effective with our as fully expenses seen we financial stronger lower lower workforce quality, two we have training. previous achieve increases, and

robust currently earnings deployment and share Finance Dividend As fourth share very the we would turn the sheet Jamie of of company, in pride paying that strategic values results have perspective, XX:XX in the will financial who deliberate actions On a take customers five extremely entire you is our are we employees. most one mentioned, From nonbank great then our say and to every growth, people balance an the continue as quarter just world's Fifth behalf results, strong addition resuming growth, just was organic also repurchases I and team, of a anticipate banks the of day. to the will strong. Provide of communities. companies one loan of to core hope Practically that that, ethical improve have power (ph). evaluating to I our to favor thank lives by our continued great producing well-being of a to do we Third also such and it in you leadership financial I'm globally. Greg part current and XX:XX of discuss XXXX. capital speaking opportunities I repurchases. our we I given sense to all our With solid live quarter over dividend being like feel proud because organization our Ethisphere, that named to same our

XX:XX Tim for of all today. thank and us you, Thank joining you

purchases. to quarter, once market quarter. into categories, credit Our our at first but increase lower and sequentially. million Combined strong wealth impacted $XX gain basis. mortgage liquidity revenue day fee in in loan improving X% securities impacted the net in count, were an income we and reserves. light on Reported growth year-over-year. margins, markets rates. MSR environment. were credit provision to charge-offs, the $XX Compensation resulted the to quarter, previously while stable the asset capital the XX:XX year grew management XXX with Improvements of expectations quarter announced expenses were AUM fees ago the market X% increase resulted generating the treasury retention. consumer success well to during due in than an in quarter increased employee our lower generated income market liquidity sequentially the growth by ratio our and slowdown adjusted were muted expected deployed net results ACL as We the balances which ago XX:XX lower PPP, approximately impact inflows company. Expenses higher by PPP We decreased resulted offset points basis revenue, XX:XX mortgage continuation X% compared continued on reflecting of Ginnie commercial $X.X in Moving the the will total XX:XX for awards, volumes household Mae points strong results this despite the part last restricted $XX excess well generated benefit income Excluding as NII, that growth, underperformed from entry a million to Net deposits. deployment and another X% credit in support and an management was just equity solid detriments strong securities, attractive fees less stable interest quarter, losses. XX:XX decline related Consumer and results reflecting with to increased throughout net lower punitive statement. a solid income produced non-interest year loan decay. to of in both again volatility sale billion and previous deposit forgiveness Total balances Momentum peers, or to were had were PPP lower the of reported from asset residential compared decline including of controlled, controlled in of by transaction discipline XXX excess fees our quarter. growth that Similar in points offering. partially year-over-year due as January by broad-based our our million quality expected year-over-year and origination in basis the of continued loan delays, offset well These as NII expenses primarily consumer Non-interest again of Banking compared we offset increase into the X% were where

X% partially of the modernization compensation our to We contract special These by offset award driven sequentially, card due in XX:XX continue the usual increased seasonal equity benefits and also lower platforms. expenses invest ongoing expense. by and expense to were and XXXX’s tech processing renegotiations. in items Adjusted the increase

loans. in securities sheet. other with reflecting mark-to-market auto benefit associated compared Our non-qualified loans the leases primarily partially originations home mortgage compared X% of commercial with XX:XX Average quarter, expenses was offset with as prior in portfolio quarter consumer primarily combined a to the loans average Moving strength and increased compensation a C&I XX:XX declines and this balance balances, balance equity and increased to plans in from growth in sequentially. by increased loan growth quarter runoff. GreenSky total consumer prior million deferred included portfolio residential portfolio $XX losses. corresponding Average Total leases loans offset to the X% in X%

growth and PPP revolvers XX:XX XX% to to sequential muted the quarter. adding new and year over pace market average sustained with to increasing and higher up XX.X%. geographic during pipelines Production X% economic due which commercial period the an increased loans Given strongest and end quality C&I X%. market year-over-year. utilization deploying commercial Our talent was ago quarter. half slowdown, reflect increased existing revolver which loan we quarter, Excluding first and capital our continued production excluding original strong our the as of in-line compared risk the the with with reflecting the the loans XX% we in diversified remains core the Over loans, strategic utilization XX:XX period began payoffs rates rate downturn. rising against investments successful in PPP, increased first expansion, geographically, in protect X% and our Commercial excess expectations. was record to in market, relationships opportunities middle to With our production of well X% was cash sequentially,

basis, portfolio approximately an increased the On first $X sequentially. quarter, average securities billion. $XX or billion, XX% our grew we During securities

over we grow two the allowed validated caused decision XX performance patient positioning past intervention. our Reserve rates days our this through to our have various As ensure absolutely actions will and the The term. the Federal beyond our and low wait, scenarios by years, patiently balance over the strong rate cycle under not interest past said have remain at but quarter portfolio sheet extraordinary long XX:XX the to historically us

duration continued and deposits structure ago cash year our in which from by increased led and investments, to other Southeast growing continue households to commercial overall the short-term offset core reflecting and partially predictable year compared key once to bullet end. households. in to allocation transaction investments quarter decreased our by deposits added success consumer flows. with the increased Our our reflecting structures XX%, XX% and billion, credit. on and continued Consequently, $X average the deposit stable XX:XX market growth. interest-bearing to increased consumer X% XX:XX We at quarter, markets. cash to portfolio XX% Compared average Moving adding every last again loans transaction focus growth includes locked-out our Average to securities,

basis this again As was basis our strong with at net quarter XX mentioned, credit points charge-offs performance at XX Greg once and NPAs points.

rates areas monitor closely inflation may and stress. to cause continue higher where We

billion also the mentioned loan the portfolio to is Moving As monitored this the deliberately of Greg below improving reduced leveraged which now ACL. quality we reason, also XX:XX in while $X significantly portfolio. have for our very highly outstanding’s.

We and the reasonable base baseline to of downside supportable labor our assumes the with XX% ending at scenario three-year and upside and period unemployment scenarios. stable weights to X.X%. the around scenario our Our maintained remains XX% market

a in loan based and downside offset risk be prolonged ACL were the reflected build distress. economic of the partially and $XXX million would growth be ACL loan $X.X weighted by in baseline the on improvements strong the would higher. credit including If lower. reduction billion reserve this scenario, Our portfolio, the the to scenario, worsening borrowers were If profile XXX% a ACL XXX% ACL the XX:XX downside scenario, the quarter

growth, to from our several chains, which factored uncertain strained existing which pressures case including the key further Fed's additional scenario, out base variants, escalating tensions, or quantitative geopolitical and downside point there could COVID exacerbate play pressures economic our could given continued into risks environment. inflationary the expectations While supply are tightening

best XXst economic XX:XX Moving March Our allowance to incorporates our the of estimate environment. capital.

Our X.X%, CETX transition ratio due ended X%. purchases combined CECL X in the and of organic impact stated point to light above capital opportunities quarter our at an primarily target growth decline strong the in RWA robust capital with of the from The rule. basis securities business was

basis We Dividend quarter, expect close Finance which of points to the acquisition the in deploy capital. will XX second approximately of

share outlook, book quarter. tangible compared Our increased financial Dividend value which includes X% excluding quarter current the to per X% the XX:XX the to and during impacts Moving our AOCI Finance. ago from year

expect X% between growth we and including last XXXX X% the the forbearance from loans Ginnie loan added to compared full PPP average Mae We year. total year and headwinds expected

capital. PPP. loan the pipelines, of around result to growth items, This returns now secured in indirect should commercial Dividend total consumer around X% loans Excluding in to in loan specialty over growth XX% We growth reflecting we year, to billion and additions, order the excluding sales in year. in We result XX%, XX:XX now expect revolver the stable auto XXXX. in double-digit XX% XXXX, loan expect Provide our utilization rates expect or auto still commercial $X XX% balances the reflecting for total to which and production these acquisitions force remainder of strong full average decision to quarter our production average be on lower and stable first consumer enhance will in of

stable X% a second quarter Finance, comprised in Our XX:XX to decline growth reflecting On offset balance consumer the of balances. commercial expect of in X% loans. growth and outlook other X% benefits GreenSky of to modest growth loans, basis, XX% loan by also assumes consumer X% average partially a we sequential total Dividend

average the expect growth to in We quarter, PPP. C&I excluding X% X% second

opportunities of average our have in balances have billion later expect $X billion full $XX to in purchases portfolio early assumption first that impact with the April. We reflecting given increase we made seen the more second quarter we in securities approximately through combined the the quarter the quarter, market

We in with third billion earning the growth Given implied securities outlook quarter. also now curve expect additional of combined as assume forward both and Xst, our $X XX:XX in we for that year. fourth growth April full asset a which increase outlook the approximately run-off Ginnie NII incorporates the of this is $XXX resulted XX% XX%. year portfolios, worth It to PPP headwind our impacts and noting million in from the to Mae the

NII XX%. portfolios, growth those Excluding would exceed

to in slight combined deposit mid-single first XX% growth balances expected Fed in saw Our the basis with off March to current XXX points run We consumer points compared digits deposits XX:XX points, on continued XX outlook assumes The of expect deposits. with growth of XXXX offset May deposit XX in June. stable in the in commercial both basis basis strong another XXXX by rate the in and of betas hikes. we around non-operational

quality from sheet for rapid March aggressive XX inflation, XXXX the While including by potential curb reductions. the of XXXX rate balance the remain confident and we policy our hikes Fed Fed to and aggressive deposit to base, in the March response

approximately to hikes interest deposit expect balance to the We will cycle mid-XXs timing ultimate sheet first incremental growth, the quarter, XXX XX:XX securities of on cycle. and transactions, second realized reflecting deposit and this sheet. be strong benefits sensitive rate asset rate magnitude management we points purchases NII balance of the For last up the including XX% basis impact of XX% securities of the betas. XX% growth of over impact the to expect dependent NII our compared betas strategies The hedging and sequentially, be loan to and movements,

service slightly total private but the banking in XXXX our resolutions to which to fees line the outlook. expected the lower single prior rate The contributing in than change to the of is revenue driven It expectations to the noting rate million has X% interest and now we compared to outlook to earnings be January income up quarter expect XX:XX environment, as XXXX. year and adjusted temporary experienced reflective ago non-interest first or adjusted to second for guidance. revenue, expect down January to expectations more equity occur. higher of rate biggest now first XX:XX of change mortgage deposit or interest $XXX which non-interest due is expect income environment approximately down the X% worth commercial around so to be compared in We the is income in to in credits in X%. expect compared environment. by our provided delays XX% down This our XXXX primarily the with of income decline The X% impacted We incremental stable change to quarter. primarily be that expect light charges, than to in quarter strong fee rate up compared the XXXX our to X% be to also quarter We we continue even X%

to non-interest expect including of the full year X% X% X%. to Finance XXXX, improvement or to guidance standalone adjusted of Dividend from previous on compared our stable which impact We a to up is an X% expense up be to basis,

outlook Our in growth markets. continue high we add to low growth in branches Southeast which in in franchise, primarily XX:XX new and also our XX strategically double-digit our expenses. assumes marketing should both We result technology invest

wage to minimum Tim $XX the incorporates also hour increase guidance Our mentioned. per that

in the platforms was in leasing Dividend up process expense X% franchise investments our discipline year continued be LaSalle of on is Solutions, expect portfolio, our to these savings in automation throughout the We a given and offset be a expenses the and expenses stable quarter, expense which overall partially expect first Ginnie the total stand-alone in X% Mae quarter to disposition decline and We around completed or Business basis. compared to our of servicing our Provide initiatives, April from X% to associated the people, the ago down reduced with the company. quarter, acquisitions to compared to due second XX:XX Finance adjusted by which

operating growth the resulting outlook full-year in As PPP also ratio. on efficiency revenue and delivering our in positive total strong growth balance our Ginnie and XX:XX XXXX considers to from nearly exceed adjusted leverage a known points reflects of X.X expense portfolio. commitment discipline result, Our significantly recent sheet significantly the It Mae revenue our our the expenses, improvement headwinds acquisitions is management. expected for in

We continue to expect our year In be to actions to we and XX second points basis summary, net the continue charge-offs XX:XX full in this range. positioning further points balance XX take to XXXX strengthen to basis quarter sheet for environment.

let momentum to We the cycle-out up successful have call and over Q&A. deploying of our support a securities for With me open excess to have loans in cash Chris prudently to it into and businesses the that lot both are turn continued through performance to a very XXXX. XX:XX

XX:XX Jamie. Thanks,

questions. queue a ask to question you to yourself Q&A, courtesy start one limit that we we and return Before if a you others, follow-up and the as additional then to have

we XX:XX Operator, do call our questions. please this will the morning. many We as the questions in for possible open as up time to have best answer

first Piper XX:XX with Sandler. from question Instructions] today Your of Scott comes [Operator Siefers line the

line Your now open. is

XX:XX Good forward question. and you, morning, of hope guys. I the Greg best all, [indiscernible] go you Tim and first Hi, Thanks both the -- I for position. taking I new to guess, Greg wishes. congratulations Tim Jamie, in appreciate as that of hey,

you. Thank XX:XX

there one redefine there hey, rest just deployment, absorbed looks way guess and out user or now they sort loan through you've Is sort at the sort of going of of in the Is earlier? to Jamie, like? really kind around system will deployed say, billion the the have sort be what of large roughly of growth XX:XX stick of a deployed words, aren't you're be year. a majority point coming that and remainder deposits you there and excess opportunity on et of the might target excess the liquidity will other with thoughts are In as cetera. the which all Yeah. liquidity thought or appreciate liquidity $XX of your I an mind so in those to

thoughts any maybe Just there?

basis one-third, XX:XX have we're prepared but included Scott, April. $XX one-third where starts growth and quarter's asking, during to So first additional it third of given in commercial course $X Fed continued on in like runs purchases, year. the XX still billion it's of Dividend point approach, remarks, third cash then, here excess we throughout off with thanks especially so a a growth billion I security good in year. activity loan the it And my I a sitting is where I board, about question the to the expect the probably recalibrated in in move for coming our the in deposit should excess the rest where obviously, this book perhaps on increments. loan liquidity nice of And have then, one-third, more

takes takes And wage the Perfect. can the gave Okay. that increases them? on little guess, the but sort back there compensation maybe any where see things of more outside of in improve then, absorb you you some guys sort expense the still dial minimum I just that Are guess thoughts see areas on and a XX:XX you puts nice puts and guidance. of as expense thought to I you exclusively outlook. increase or so

of changed franchise but quarter really main a the to and is our year the fees, Yeah. the lower environment related fees this expenses the compensation NII, related year. started the the costs improved between we on approach rest basis fulfillment managing the XX:XX from during the to and relative guide of when the whereas stand-alone hasn't the really rate in January the was really interplay The driver expense of and takes base expenses, puts to

the consumer We and offset little spend is supporting marketing as and efforts so Obviously, from again the technology product. continue uptick expenses, given acquisitions a Momentum wage adjustment our marketing bit savings in an we on minimum household fee bit the focus Banking investments had higher of lower in the out to and we've of look actually the a growth, little guide. by at the strong but was the year some

has which momentum of business in up balance that continue rest same, in the the activities. think I sheet the invest continued the overall, show and to So to strong approach let the remains

XX:XX Good. you Perfect. very much. All Thank right.

line Your the XX:XX from with of next Najarian UBS. comes Erika question

open. now line is Your

And that as as you about XX:XX look your of I'm just of now to a Greg, on Hi. Greg you first wondering time the prospects good you the Good for why to Tim, excited are maybe Tim. question My that of that, forward sort is in terms a follow-up decided be macro and congratulations would you're bank for outside retirement. most aside. morning. really growth inheriting? what step

for Thanks the question. XX:XX

lead put of stepping bank in that changes really place First XXXX. time really be it's cycle. the [indiscernible] I down me I feel in all, perfect to to for through as shape. make a CEO be in through became I outperformance to think to fantastic for good is CEO. cycle, The good about. the

business of success the to for the great step our aside. it's the bank, future of position So, time a had, we've

XX, been succession it's And forms him at want XX travel years, personal bank, personal plan. third the is timeline in worked able the aspiration Tim's plus thing lot to XX personal Tim absolutely readiness. and is Tim’s the is six final of an now think and the be in bank. mine lot that. as on succession, well time focus was given retire up investments step to always I for is aspiration there's side, ready turned age thing and do which Second to my a of of also. things And my January that's to kind able be I on, I

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I’m Yeah. Erika, me, a pertains lot. about question it excited to for as XX:XX your

consultant bank I team outstanding we a lot been bench of a a in at assembled shape And talent, Greg. as experience talk being really Third good sport and I since have point leadership as We Fifth are think to any the as the here. the to bank been years have has outside spent including that around I We company, the several a right. about

for who about you And you who outperform if in the from which the perspectives helped have ourselves, to to us about set shape outside we company, cycle. it you really the experienced have going business deeply folks how forward. the bank think long-term inside have think folks we So from XX:XX the brought objective, and joined fresh is through

place. the are all pieces in think parts I

culture through of We performance. a great will been a We've credit that support discipline. expense cycle (ph) cultivated have discipline the

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the that we've an I the a many nice And and we the a them excellent bloom of digital got And the balance haven't think areas Midwest. seeing and maybe Southeast coming sometimes is, it between in expenses and we have grow. made and essentially really we're byproduct for some enough footprint we credit because investments capabilities. have for of been in redeploying harvesting

benefits Banking and Greg help provided in a fees in household has think the product terms the that, Dividend acquisitions and and remarks was that XX:XX growth Momentum Provide think, the attractive focus our see his whether revenue. to right, loan that growth from I I least prepared last services, Provide managed in mentioned continue And to differentiation then not that drive particular, to we're really sustainable supported where but as really right innovation, goals balance to of the certainly ROAs. that total on is going with which providing in to is the

feel have about to I So, good do here. lots

question this always you've second the is investment Jamie. And AFS wondering, word for it. Jamie, a and become very Got a quarter has had XX:XX distinct bad policy. I'm

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comes Your from Fargo the question XX:XX Securities. of line Mike Mayo next with Wells

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Hi. XX:XX

-- I’m if saying there. questions to going Just, clarify that's

this? So you've about deployed from think and about XX% your now sorry to How XX% capital I'm we cash, you or the cash what excess year? -- deploy excess excess have of should of

how additional I additional XX XX:XX net of XX had left, think Yeah. other bought Scott's is about billion deployment run-off year an deposits of of Got that other I year as see Mike second purchases to looked $X the progresses. cash the in for that's but doesn’t offset occur at in areas, billion the growth on, early for And $XX I I it as by there is, perhaps now leverage question opportunity to cash, and in playing we growth a loan quarter excess of quarter. out.

if you did And you Fifth for Spence, are [indiscernible] over select right? a Board you had summary last Maybe to Tim, your that Anything the the like What other say what years. of then change. Tim of eight the achieved? is to to more CEO you've more then shareholders And Third's next is several background? gave have Tim the you'd question, for What Tim? be seven, capital accomplished Greg, the like XX:XX who steward who characteristics Thanks. -- for? why Greg, years unique time,

right. Absolutely, XX:XX

of we the change that bringing out we of probably, see talked of and also. in as absorbed First the where done we but was organization faster important you ability we're will place. project I all, amount I'd that like accomplished forth set I those put think, more about objectives to for you're an

would we're road. not great probably of and hard background. right a team going XX:XX that organization. and Understand differently. has now? now organization been has ahead. We've down I'm said, in assess a the team sport and a Tim the we been accomplished Tim. , great five be that right with to and Why into space. challenges it’s have I Tim investments Jamie great and technology year, to years done or think the Absolutely, He person. one acquisitions years, it other right He has great, we've the great worked the abilities faced look I but did a strong changed put whole instrumental two this it's way around Tim, to sort as got So very said we've a lot,

about strategist to So the you over with great execute, achieve extremely, is execute visionary, which see also I wasn't but retirement and just say, the early if retirements [indiscernible] phase being that of great we're Tim might able years beneficiary to well. us. road that going the the you is And he the this shareholder for I wouldn't great think reason execution. I he execution if have great, said, at just life, excited. forward, demonstrated be of making shareholder, our I'm a absolutely be large transition expertise, all time not worked forward. strong would going again, and we right of successful. this time. especially think is but be age case, person. large Once next on down my extremely fantastic can is be and couldn't cannot But also maybe side it's I are he challenges The to we be both bank Tim hard present Tim can you a ready, a you the I at as needs the at with more technology, the [indiscernible] or faced

Okay. more Thanks. requeue. tech questions. some I’ve XX:XX I'll

Graseck the from comes question of Morgan Stanley. next line with Your XX:XX Betsy

now Your is open. line

XX:XX morning. Good Hi.

Good XX:XX morning.

noticed of And see XQ little in you couple first to the questions, just A (ph). drivers on Okay. I could unpack were you X% the ex-PPP C&I. I XX:XX deck that bit. wanted if a up

not? is, the or inventory that reasons much runway CapEx a that seeing and on inventories agree customers about got and of going can you desire internally maybe up, give last? what for Thanks. is your I've if longer sense I'm peaking telling what who me that with you're the some of wondering, is One that? And in colleague is are how build

question. XX:XX Tim. the Yeah. Sure. for Betsy. is Thanks This

So I think being to middle market have you the our is business corporate and banking business C&I the think business. about

opened of and on labor benefit capital we and requirements. the very folks back are at to Last was quality business of a a markets corporate drive the a little relationships. are particular, that productivity a build at byproduct that over them pace is regular do adding CapEx going on I banking has there terms are bit minimum, question a up from focus then there benefited new year, inventory as continuing and record reduction part a middle clearly and XX:XX think now run labor we what have addition that investments is or in carried which Greg in the anticipate fee build drove to figure before in that And no that rising So Core in It's and utilization the Go still but couldn't that for and turn of our fee of utilization. least the influx But laughing growth to outperformance markets into really, it's Chicago, XCs into California that call. no the is in I out the the issuers the first of to basis. plus but Jamie that I that side and quarter. were in for the we one, us think, bank that Carolinas out the the who and production been are C&I at I Cincinnati, you'll Tennessee in us on that get is and less is inventory quarter been then see there more how first market, there income question to having own there. now room that catalyst to

that. I Okay. end at guess, Tennessee, of the so XX:XX maybe

XX:XX There got Tennessee, you exactly. Yeah.

the to and help Fed what moving as year then thinking deposit like you thinking next you so, the the so? from high growth quality should book could progress look got and me then deposit be about QE we deposit your how get should how we you’ve And here, or and Thanks. about you're deposits understand over maybe XX:XX loan that ratio

at XX% is correlated. betas we third, ratio and finished the Yeah. higher. the ratio interaction at the deposit to We were I'll the improve We really in the the entered as say cycle And loan-to-deposit last get and loan-to-deposit certainly mid-XXs. between quarter tightening XX:XX the expect what obviously, highly we

that to expect don't a like company couple we there. in it to to the ratio, this from high bit get loan-to-deposit the but of take over but the certainly we manage years, time in So will little get would next XXs a

put operational perhaps and saw what but that standpoint, think through is, course not a perhaps we growth where XX:XX as to balance really from in our our next start over to deposits of we've within we're within like going deposit we deposit about TM non-operational with ultimately book non-relationship with I granularity consumer the business. the treasury over household the along consumer commercial the manage strong that beta different we're hikes. strength at will really years pay in of it's off run-off growth primacy the rates the conservative, start as business, sensitive expect of as deposits we've seven in rate continued a strong and chase But to improved basis the than the said, we've the I rise just lower and then the talked through activity the we the the know the last that year conferences management together I XXX a sheet with improvements well book can deposit points XXXX forecasting the the balances.

the that. XX:XX non-operational, And you size

I sorry, couldn’t... I'm XX:XX

sized XX:XX The non-operational deposits you've that.

Yeah. XX:XX

Thanks. XX:XX Okay.

from line of comes Jefferies. question with the next Your Usdin XX:XX Ken

open. now is line Your

securities front give you've of securities comments us set in wonder move purchases, just us how the Can the see? been better XX:XX -- could think just able up Jamie, both kind a last end, if trajectory, [indiscernible]. on book Hey. now just more relative year about higher. quarter level over course you where given and morning. have you book you Thanks. to that you've the moved the rates portfolio to I Good level on following that updated that also your yields of set yields go an year the

XX:XX Yes.

the the to X.XX X.XX range. quarter had in is which to January in investment in be well in for the the obviously up, We full second the from expect yields year, X.XX we area as guide as the

Great. side. a XX:XX deepening second And the question then Perfect. on expense on

or better to year expense for to the be find got incremental a the on wage. kind some details Thank Could full was a little that what you guide there the able been efficiencies incremental it delta, just rest comp you've of was the even incentive great? minimum you. Was So would fees? granularity related with the us give just it of just

It's predominantly the were impacted in fee increase mortgage outlook. incentives the costs fulfillment XX:XX higher and impact. other marketing by lower within and businesses minimum And the that offset partially the the wage then, expenses by

it. XX:XX Got Okay.

brands, like savings et branch So the underneath surface? spend everything is else intact technology related to cetera.,

Yeah. Correct. XX:XX

XX:XX guys. Great. Thanks a Okay. lot

question line of from of next comes Your the with Ebrahim Poonawala XX:XX America. Bank

is now open. line Your

morning. XX:XX deployment, future one just we M&A. around, I Good as think Hey. question guess about capital

how that? to Southeast, And how jump what how payment of areas of bank to has to in, how or know, a Fifth and position So talk are if Third about the and spent then two fit on perspective for organically stack you you strategy? I about couple there around just big does to around your on think time technology of think Tim, appetite see Just about like M&A, about lot next Tim think and are want tech for years? in some you maybe obviously and us as scale that one adding you sort looking is any growing the that invest the the in, us talk when we you

questions. lot XX:XX of Okay. A

started get here. me Let

Number job capital, would Coast, growth, is expansion growth future you not deploying people, the the and when we in is that I about off, have is well. organic technology, organic our West in for Southeast changed First one investing performed important about. franchise billion think services, one think quality that's products, extremely the

M&A at transactions. Second, non-bank look we

our cash (ph) So and opportunities Finance, to dividend. Coker, and extremely add non-bank examples that's XX:XX Number extremely obviously, those HXC, important like to reach be Lowering excess us. of Franklin four, repurchases. We're our opportunities M&A. our products with type number always really more make of for service three, to strong us Number Dividend would that that’s want looking Provide, opportunities capabilities, in a a that share continue be will part to two. pay bank, better

M&A M&A not itself. not When is why our M&A of believe of a recently, type think, strategy progress Quite some we support And is Now participate you we've bank we those of on there. lot of our out We unto direction. frankly, at is a there's lower the M&A transactions strategy, look opportunities will a done strategic will that did which us. transactions.

a once relevant our strategic was markets. if bank an such have into Southeast there larger the fit more from M&A opportunity and again as they So the attractive objectives and to perspective,

So or think It's And lower are all a because it. should really that we of on is that other actually we that fit lot a opportunities that's out list. we into it just list opportunities to we're consider not consider to there accomplish more exist us direction, be makes We wouldn't fit [indiscernible] a it. prior that we right there actionable. our trying strategic that just [indiscernible] Southeast our there why mean markets does cultural is looking in and good for relevant

[indiscernible] that's consider that [indiscernible] something we will obviously So us. again why when we emerge, long-term it. once assess for this But for value strategic it's

don't point of that, And and in of itself that in proceed. on our will forward long towards, for moving concur an how a Yeah. scale terms I we view with certainly said that another all consistent XX:XX believe we that I we and time be is think

to We We investments been talked data a security your lot and think otherwise. about talked data and technology, strategy. the it about the about we three a infrastructure, talked information areas. As have basically centers. is, questions One making about lot pertains that core cloud We've lot a about you can just the right.

we very that at good think feel I we're front. on where about

to We we go are platform in with the middle but remember are innings, have that progress. good analogy, making cricket can't [indiscernible] modernization. I Simon

of that away Okay. about of very to is that's probably us less, application under the a from and And new service. there legacy on on our ours. then more in I which I in and think mainframe maintenance opposed focus general, to think as spend emphasized allow for been point the platforms a big the XX:XX good feel been industry development money And platforms thing our migration has but lot

sectors, all disruption that is product We more way it informs and product that fundamental associated in are believers the Internet innovation. the with the

to So where will that I continue we think look differentiate. is the area to

that proposition Banking for way the Momentum year to all nature hone have good be to with a margin over when And things products customers. they and the income. that to and innovation have or provide have which months are us The fee we the within market. the two really launched We There and the change platform but managed then launched done refine -- that to the been that The items. of beforehand. that the functionality to did as ago. obviously gotten had stable which our and technology new we for amount they of accelerate that have critical of we brought where at prior to were hygiene a add folks they on We that time platform. high actually leverage three they opportunities out and the years value it's other services, provide And are in to continue the we or first board few they feature able five six factors, have six

XX:XX comprehensive non-operational response. Thanks mention missed for the I amount dollar did for if the sorry it, quick One you was the deposits? Jamie, follow-up. what

the but billion occurs baked that assuming year. $X during we're the did course not, of into the outflow XX:XX We it's of

sorry, clearly question. Betsy's answer with I didn't So, that more

you. Tim, XX:XX congratulations. Greg and Understand. Thank

XX:XX Thank you.

Matt comes of XX:XX O'Connor Your Bank. with the line next from question Deutsche

Your line now open. is

the on there's and Thank trend narrow. we've rates a which is you perfect pressure, go will to So, competitive you. how you are know quarters? certainly maybe up, few how does widening to widen about as were but ago, I a the think side, morning. And better seeing spreads forces? more indicator, flip seen guys in but talking what now you C&I where potentially think markets, about Could spread obviously few obviously spreads about you capital Good talk next quarters trending? probably you're XX:XX

of quarters. the Matt. for Jamie. the It's the C&I of points to the quarter, spreads basis declines or that course in question. stabilized down during of ex-PPP The as opposed only double-digit Thanks definitely C&I types the Yeah, some were XX:XX first such X other yields you saw

So balance an second the in stabilization for here. about And from pretty much we go every sheet feel fact should good but point yields hitting loan improving yields. in inflection be the and of spreads we as quarter for forward asset class,

grow think about, kind has like years. Third a of are go core C&I And banks XX:XX which spreads we are will I specifically then the but trying the then are guess Okay. rates to trying for Fifth like going yields to all lot up obviously banks of as on -- up, been

the how and spread trend the again the next of markets the banks? seen widening but between from think off spreads some some few capital So puts you you've competitive takes do forces quarters

Yeah. XX:XX

end I widening get in second the markets into the some spreads of the perhaps of capital the the that's spread disruption second going the given tensions, the think as we how the back half geopolitical year, model to have of C&I and in forward. improvement stable heading the quarter from a we second quarter flat and then

you. Thank helpful. That's Okay. XX:XX

line of Your next question comes with Cassidy from Gerard XX:XX RBC. the

Your now open. line is

morning, Good everyone. XX:XX

morning. Good XX:XX

how as XX:XX the it's we that, in an asset it assumptions [Multiple we're then has and net year strong expectations both breathtaking dramatically I'm because [indiscernible] income be a But I world always that rate the as wondering on course focus as for had quarter what is now, here now, know Is really should starling. Greg in the back like income. the balance as us, Can you worrying? stay the on quarter funds not just could year now well sensitivity changed about just from us your impact the and the late could doing sheet that the Speakers] changed you recruiting and in folks environment up we color could a Greg this and you the everybody. evidenced I’m rate for has full it's everyone's Jamie, of of for how roles if the liability you. new now of growth and well the second share and changed that the from on and it it a powerful for with commentary will just net but at year be first by Fed make from as be for night have interest What you appreciate interest congratulations the on at taking Tim your year

well some well something really our from occur. perhaps think have think how not is under we and that really for that to miss the too I see is to thanks just pride downturn value well XX:XX cycle years the positioned that year case, this the being risk good I And that's the that XXXX, growth actions continue to leadership balance and mindful was how possibility high good the and release positioned quarter should today's sheet long and returns, from well PPNR NII with protected base that recession But positioned and opportunity. generating think both to show perspective. through of our cycle. see we now a we the but to is really and good positioned approach this or certainly news an credit that's Greg's perform well we economic over from we We're a the of is ourselves waited through that's there perspective concern and are managers performer. growth, we're that a do but high of our that And we from I be XXXX last well well company a do in strong and seven

the period XX:XX Gerard, really the of the referenced dynamic come obscured is, doesn't as of where just Jamie and non-banks it's adding the right. the outside to hard a we've good here gets how add looking funding to quality. well, extend it funding importance that reporting it's base I banks, I the And rates credit, tell on that as given out in, probably done, were if the way around from think just

relationships differentiation your we've the relates and think terms whether handful operational I environment the we a the banks to the more is who and fully primary is over core course where on of better stability is, premium come the things have it to do that maybe have it base there years. growing past funding of going the liquidity appreciates an and market quality to there really as be to done the the environment out in and what much the unlike tried Fed focus that deposits attached maybe as the positioned tightens, should be to So of

with customers Very and beneficial. term along now. that obviously that higher that Thank is very there low a is look that months to or your you've At color. may from XX:XX XX relationships if point rates you good. the cost developed you the prime comes go funding the for what folks were funding And point for with some really

Just in term at last start some at does done to looking some funding? the it like three or sense make they've four months, point

guide our as And is NII well Yes. year. included for that in XX:XX the

good. XX:XX Very you, Thank Jamie.

XX:XX the Pancari John comes with Your next line question of from Evercore.

Your now line is open

XX:XX morning. Good

higher about deposit that beta many or that I we intense various the than to in of deposit investors are beta lower you could you expecting, is banks a be perhaps there be that the the risks Can the competition influenced talk you perhaps to the I could XX% previous industry given the be betas that expected? players just versus space experienced if could guys range time cycle. much had topic, know in of this in just any concerns could expecting are than concerns higher the for discuss around more the surprise wanted On see to perhaps

There for competing now amount We industry of XX% being the cycle, betas for into XXXX, betas, on that be the and XX:XX than is deposit that the signified level level factor of the last the of competition the they much of ultimately better is by less. out. overwhelming think heading the question. at the end just should factors certainly think the the so John. positioned competition we ratio you're the of were right Yeah, the liquidity the dictates but are better industry loan deposit shake lot is Thanks to industry where a

on accomplish if and to wrong out operational should last translated XX industry basis the from Fifth and the XX So we then an business with we've this talk an management about ago, with primacy beta -- on Third, treasury XXX. for a were on perspective, XXX those for then But beta us the win time, it we but has what days we're let's what believe we a idiosyncratic lower that should the at be XX modeling able time. first XX deposits think been that said, first

management. other what highly we've do if the than then of and the area exchange competing raised believe So Hopefully, is the the improvement business better up that like punitive price beta beta but things less little including that, bit. of elimination possibility cycle. then segment, chance, as XXX. much rate the obviously result as the in as product our wrong. result we break outlook a XX% we services, XX:XX wealth not and around sensitive we the retail our Momentum services treasury a value exchange customer, beta have the in because should commercial free receive would made value asset we but for you bit with time When be all But will lower a in that a of NSF other won’t rather down by fees, own And management it the it on for should our changes better portfolio in that with the lineup by Banking, the in us book are structural portfolio retail settled so the that we we in those is in you customer this we're whereas to in not the if expectations

to think plays we're of compete how well regardless out. able positioned I to that well be

XX:XX Got it.

on there side. that are tick your the message of faster consumer we areas a very of know, seen net banks you any credit flagging are your a in to What have all do bit saw not a move signs I third the credit up That's the know on similar first? I question than portfolio think will areas a know actually watching you in the of expected XX at And but that to within well. And out of helpful. Okay. closely? Thanks, season. What you're gotten banks earnings anything most concerning example? couple and similar of that's of this the as we've And Jamie. for you of the then past front normalization (ph) you credit

Richard. It's Hey. Yeah. XX:XX

with From a not acceleration. of me consumer Let seeing start signs actually one. last the we're standpoint,

super-prime. excess liquidity the has XX% again, If base XX% we're you liquidity the prime shift went top running income where activity for to of about and than think in certainly -- to seen that sticking households behavior top of customer that really faster the our a of around that And we been expected. we changes to in and haven’t terms haven't activity liquidity excess really respect off with

slower We're expected a lifestyles. low as the little their continue fact delinquency XX:XX a to such a strike takes one percentage. for low it In people off it's a commercial. running links we're but change right at From than quarter across standpoint, level was we slip the balance at such to the really us over to level, to or in this two just and change

not really trends. we're seeing So, any

and A disciplined continue watching. we an enterprise CRE. Office that a that manufacturing the watching watching but watch a of watching think And space, and of harder. that's in then, is consumer It's -- gateway focus points where there's normalization whether couple the that happy us that senior that's handful to very on across with value leverage particularly long properties, -- lending we're is pass where, we be cities. we've one good we're as stuff. to acceleration we're maybe places term of little would But would the and place area segments products just consumer -- very we space, a were changes that an given credit, discipline. the Clearly, commercial to continue ability that cost I look, to we're increase, alarming, terms it's more on areas In structural just quality XX:XX or of through a places and the There Class exercise portfolio. given in we where living all been

least most but cost able pass watching. at We that's of increases evidence people been we're through, at seen this point to where haven't that

Thanks helpful. my Very questions. for XX:XX taking

of XX:XX Your from Terry question Stephens. with the line comes next McEvoy

Your is now open. line

your that what the Jamie, call Could today, morning. take who better the maybe maybe thoughts capital then it, I'll do XX:XX you have commercial banking a on some are just others And question remind but than within that. you maybe, XX%, investment banking? or of near-term it Good revenue, markets down pipelines like any us for and what you. mixes was business?

markets Yeah. definitely XX:XX in with impacted fees. disruption quarter the corporate the first debt capital groups the bond The loan syndications and the

third For us to we're revenue lending FRM with a total. the remainder some and investment out then customers products within categories the amount the than the aggregate bit called of banking more between commercial the that pretty a split hedging banking, in a of where that little an fee helping it's business, within good

fees. seen fees expectations, investment that what is so worse that more not the originally [indiscernible] better within that’s that but and that the bond syndication year we mix and category of we've would loan there. should done banking So, has FRM just happen that's includes that performed reopen NII assumption expected, than and corporate interplay stabilize The guide and we and for between markets have and some

will the So the revenue I of the the about company. of that feel at day still end good generation

commercial Is a all a to growth that stronger of in within Dividend ex January. loan that as just then commercial follow-up, X% X% you deal, in or Finance And the X% to versus lending? average layering XX:XX see XX% year

Yeah. XX:XX

So Dividend Finance show Provide will that in did C&I. show other unlike up in up consumer loans,

benefit is loans category. consumer guide Dividend you'll Finance's the Provide’s and So in C&I other see and

Great. congrats then questions. Okay. Tim. for both Thank and my you XX:XX for Greg taking that clearing to up. Thanks And

Terry. you, Thank XX:XX

question next Janney from comes Your XX:XX Scott. of line the Montgomery Marinac Christopher with

open. is line Your now

morning. the you how Jamie, wanted about perceive to a outlook the kind epic balance contracts. not Fed Good and difference rate ask of your Does I [indiscernible]? make sheet Thanks. XX:XX backrow to and/or

XX:XX the that guess in sheet the be or than perhaps higher announced expected, we've do their as expect you be, got to have May. betas to of it significantly but have down more if the quick would what's ultimately, a and part outflow move little the our with deposit We outlook so Fed outlook in bit balance deposit they our more baked tightening in. would significant action on what to potentially June, than implement than variable they pretty to I were contraction faster begin sell quantitative

I okay. out, ultimately So play think it will

they not where But XX:XX at expecting all, don't you're interaction? not Okay. it's the the contract of opposite part

Correct. Yeah. XX:XX

XX:XX Okay. Very well. Thanks.

Fargo. question next Wells again Mayo Your the comes XX:XX from with line of Mike

Your is line open. now

more, have Third tack XX:XX you I'm there's Hi. Fifth Greg lot taken vision droves bank but certainly define future a bit Tim just starting for Tim, technology. away, into still in sure. was technology like to dig in Greg, maybe the your since, more little a terms with of the I go, you word look or what the

So rely to where Column would proprietary your customer a protect lot their much A give of in-house third-party premise more on Column are and destiny, too they certain you data A don't where one or be I'll Column B. control and and Column you security. is A and want safety banks can information,

XX, a maybe be the XX making public would cloud, B [indiscernible] XXX% the zero the XX, Column Now around and down a having bank. use kind partners ops, together borders FinTech of break really of

or maybe I'm give but column the this wrong of how and framing another So do answer, B the can or that column A tech you you XC future? bank

going is Tim to here. XX:XX towards answer C

proprietary XX:XX about We're in community there gives really that big is both or and of it's bucket No. I technology ever and think the very industry maintained where a where lot sense rails where it that's to makes want business. I and bucket that to don't customer that vendor A it in the there an sector to available drives business our is active scale about limited you thing differentiate the utilities going aspect to in-house. there is is a a how benefit run like, on that and/or mix opportunity very the differentiation a is managed you of deeply be ride to think we're of are the to choices be shared Look got and it's an there nice believers all B.

a you're on are take as blend those it a customer best us that's more of think with back focus strategic that's on a emphasis as credits platforms heavy lighter talking and relates a debits I processing two So to to tech which But it where you're approach products our in that utility scaled something going the see and to owning to probably the areas. the relates facing comparatively about business. as to proprietary office opposed

XX:XX that of vendors disclosed and number you're like more track have that state outside and you concrete everyone on is again progress? maybe and data of public where end on that you to cloud your concrete where you that years you'd Okay. ask anything like could what of or have the That you'd the of -- us take those the centers but this, percent desire? where the to a couple number in to you So was apps or Any much that go, the how you like to us reduce give number metrics that clear. can you you'd not or of

than apps how we around the business something I'm we them, today, today. less something think substantial agenda we apps as we about applications. today. a when of that you off build to have be don't is technology less XX:XX you here. have think like do travel, things of be data concrete the Greg. very than there things and have Hey, to latency we're source Customer-facing can have for really want not sure two to you This it's down think the on quickly over we platform When going to our mindful about and cloud-based but core that fast numbers less but enabled the two. [indiscernible] have make Obviously, case. things Mike. We I is we how centers you. want pretty Obviously, centers approaching sure about that, it's data computing platforms of expand common common open we definitely could get past, different to an us that's

data some house facing less less center as And and on the to. consolidate we and back wanted So less vendors. for the we applications platforms applications our definitely of side somewhat customer of vendors,

the XX:XX chiefly I'm really of how that metrics environment. our resiliency I'd deal metric Mike, I the focused on -- to the with think really

of sort that, things do have our in We products and legacy in with should with going the right. to. about of then what the and can that costs, of see have customers terms of I share maintenance you quality on then in development hold spend talked digital a accountable out lot publicly new overall can heavier the a evaluate the they spend that the the way the are application, mix channels, and services you things of and be coupled Those differentiation to you driving continued are the to focus our terms and see to of that that products us the think

where the change run to so it has today been, is one, spend bank technology where and where bank, for to Last the might go it it XX:XX then?

XX:XX Yeah.

include XX bank, to XX You otherwise, invert been, the goal information run the bank it's call going forward XX-XX. and it the security change is that

very much. XX:XX Great. Thank you

next of Cassidy RBC. Your question from line XX:XX with the comes Gerard

now Your is line open.

XX:XX Thank you.

your opening what of the XCs? best to mean, remarks. mentioned from this Tennessee. within us addressed But you wanted Can you seeing coming parts commercial markets of the where you apologize follow-up growth your loan if in the Just the share portfolio. and I post XCs guys Tim, with you're

XX:XX Yeah.

markets? geographically where As where within in the within Gerard sectors, -- industry or which

yeah. XX:XX More geographic that said,

XX:XX Yeah, sure.

is a you Head got it of from So an as if message our count and had of XCs and the pointed Betsy the quarter that Tennessee out FEE the did they pretty Indiana text correct me, good one, at I angry well. end as

economic Columbus that presence right mega you demographics So, a is isn't and both yeah, of Cincinnati [indiscernible] of companies as otherwise logistics the cities resilient have that of and make it's growth and space. necessarily the what I here we suppliers software growth way with economic at of the Charlotte's, Cincinnati, as Raleigh a robust activity coming corridor engineering and has now. their and well. the of and and strong to where majority the business Indianapolis we Raleigh's, the parts get companies as having And stars in that activity Empire point strong from component Midwest and XX:XX and has downstream the So certainly other bright with areas. there Nashville, should California, natural book the two what be even the are think getting Tennessee and I corridor, if example been and at the better the rural our the U.S. the Inland in is growing It's pace. seeing the outstanding middle the across opposed are of really the obviously as lot Columbus, not Charlotte look think very I of benefit are upstate. And Indianapolis, of you're inside we and the very really out and mid-sized geographically as less that that's It areas. see the would terms state think well, you along the a consistent look into Columbus, a where been

we treasury And lending areas, drive standards [Multiple you lower products loan as obviously, can follow-up easily how in the know loan management us well. color commercial Can important share a to then the growth, the you growth XX:XX are them. Speakers] to, with if complement lending as actual the

experienced commercial as Gerard, have if managed the relationships are I and been important XX% anomalous in our count, had to or of led a had by quality success top middle folks there in relationships, for available our that I always Fifth TM sale, big success the in growing penetration have just research in relationship the top to this loan the is to I can is looking terms time a the Yeah. you by that commercial and what new certainly total in which had our initial into third XX:XX do growth market having the TM investor of Third they quartile industry think that so very know of you Third look the product catalyst at percentage XX% both commitments, peer the relative had we've services. extremely lending of it kind we've of terms Fifth to fees of And group. a deposits front middle-market at is benchmarking I which prior of over the relates been in to -- Commercial they best-in-class mean on as its deposit which evaluate of

terms performance. bearing financial in to So in of terms are and out we the go it's of important results strategically the how market

XX:XX Thank Great. you.

over at There this no to further Chris the your back time. call I XX:XX turn are questions Doll.

you you for interest in Fifth contact all Thank if your Please have XX:XX the you, Emma, department IR thank questions Third. and

This today's call. for Thank attending. XX:XX you concludes conference

You may now disconnect.