Huntington Bancshares (HBAN) 29 Jul 212021 Q2 Earnings call transcript

Greetings, and welcome to the Huntington Bancshares Second Quarter Earnings Conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Mark Muth, Director of Investor Relations.

Joe. Thanks Welcome. Director for Muth, Investor of Mark Huntington. Relations I'm be be of found of website, the the can we'll slides section Copies on reviewing Investor www.huntington.com. our Relations be starting This as call. the and being call the will is close of a one about rebroadcast hour from recorded available

Wasserman, Officer today presenters will for Q&A session. Zach join Steinour, Officer; Rich and CEO; Chairman, us Our Financial President Pohle, Steve and are Chief Chief Credit the

statements will Slide and on including today's based contain assumptions forward-looking and X, to Such risks subject and time period, noted As uncertainties, cause the available statements. materially. differ update which no discussion, to We are changes, this obligation information statements. on such may Q&A at results assume actual to

to SEC, the filed X-K For a complete our discussion including filings. of XX-K, refer slides with material the risks XX-Q the recent please and Forms most and and uncertainties,

now Let over Steve. me turn it to

Slide with Michigan company Chicago the Denver an billion expanded new Mark scale Welcome added provides The TCF in position overview and our holding such market and in bank through X and growth X.X acquisition and leadership Huntington twin everyone. and of Milwaukee. with total markets top assets. equity birthday. happy both cities in Thanks as $XXX our

to in TCF SBA treasury addition and program. the in the number grow Importantly, the customer brands, including us to base. through insurance banking convenience verticals, our brings branch leverage investment these one one we officially footprint, management, Huntington our lending have expanded our continue to and and markets trusted within specialty and share nation number which capabilities tariff to allows digital to an customer channels markets, base, middle-market corporate capital with products

our opportunity leading So to approach markets. our to fair excited and we're customers in these the play by offerings digital introduce

years, several by the past pleased we've superior service. of customer independent of affirmations been the the number Over

customer satisfaction customer app third last announced our for been amongst just in mobile the year. month. and regional services for centered it's provide ranked colleagues hour Date highest banks Our products the we've introduced consecutive

first for in ranked Additionally, satisfaction. our we banking customer consumer region were

remain important are The vision. core leading Slide is overview bank four continued performance we've considerable first and returns. and investments strategy build nation. efficiencies in core deliver organic top the acquisition leverage in supports TCF digitally to and company drive and We're of financial sustainable our these an both recovery. benefit Now to tenants well strategic the and us the the financial additive of powered a purpose the our affirmations hikes digital opportunities tile economic fronts, top to the as culture growth people is very of of core scale tile, and technology. on allows to provides it of organic strength made driven incremental growth Huntington from positioned

concern for new are labour Our second basis, On to market retention, during remain accelerated and driving many the and the of beyond. share, in wage investments we to continue a year a our inflation and customer customers. and acquisition increase, capture past of expect constraints and macro wallet share 'XX business half of gains, it

and profitability, and continue leading cash record of way liquidity, from positive. rates. the levels levels to continue are which economic the high customers However, see are along confidence our of flows Legalization line very unprecedented Many indicators the

more carry to opt may borrowers liquidity they expect than We had previously.

into constraints. robe are 'XX. strengthen improved the we pipelines conditions remain long our pandemic, supply we the But ongoing loan strong half issues build, with for experienced all we labour optimistic favorable and will as and continue to nonetheless, the and chain second of during that and what XX Given move

the on like I'd to an to integration. update Turning give , slide X GCF

in-store one, a branches. track closed acquisition and XX Meyer the We've all in completed activities. consolidations on early be June for to integration phase continue closing We key branch

three required to third of October. Day branch and completed by remaining The divestiture complete over to expect the then final are be the close Columbus of We system weekend. branch conversions majority the the phases quarter the consolidations in expected

systems, focused TCF on colleagues focus on customer and our our to culture. we're new integrating also product fully conversion, into addition In Huntington's

I and every think digitally I seen people colleagues, our and are to the success. building make with the customers' very colleagues legacy people, bank powered they fortunate. the begins of leading the day. our key colleagues differences We're strategy our appreciate our our nation's have communities TCF in together lives both and first And acting

a banking to name commercial finance to and the banking, complimentary we've inventory but digital capabilities, And few the GCs, as now combined additive our will Huntington. tremendous our introduce opportunity our with significantly TCF the overall have our as to progressed team customer and fair services had or experience they play consumer We to strategy. continue on bolster be a such finance products better businesses added philosophy to from convert customer with experience,

product brand additional of products and commitment new relationships drive revenue we gain important or an TCF larger Huntington services growth, the colleagues market our and the to organic we remain turning deepen organic customer is to and our slide and part our expanded of focused to acquisition on see markets share the the growth that strategies. to As opportunity growth serve base, plan, to six while we introduced clearly

years, to annualized business banking and are philosophy. half drive continue stand executing our each Nearly innovate roadmap customer annualized and advance well new technology of to which increased as business. checking Last continue digital pay, had for digitally consumer centric, by households, Fairplay as new X% open compelling to part and strong checking have now consumer been of are launched to cash please while our year day, our deposit returns products our We relationships early and X% investments in month date. we by digital accounts

endemic investments be with new acquisition we're restored to and creep this additional later customer innovate to continuing to and and levels. products are year we've traction next We features in seeing and launched marketing

seeing commercial. build originations. we you activities, in specialty momentum continue strong our and thing, broadly pipelines as So to roots out sales have We're within

Before more our work our new Huntington, that finance hard and Mark I financial CFO will leadership as pleased to division. Congratulations years. finance thank take Investor it seven on he's Mark to important the Relationship to be Zach, welcome led to performance. I you We're to Steinour, and over you director say of last over IR. to vehicle for new your of team for role a on welcome [Indiscernible]. our a our to Mark taking dedication Steve on as turn -- his to want moment to years eight to provide detail With role as

good liquidity the quarter, second which delivering transaction, common credit a reported the for net share closing provides for We as highlights and morning, a Thanks, positions. of strong $X.XX. X new and loss Slide capital the On reported well production includes Steve and all robust acquisition. fully solid basis, everyone. including impacted as quality maintaining TCF the loan

of impacted on the double For of closed we for track the realization and were counts per notable expense quarter for earnings $XXX provision expenses June, common positive economics. deal second mentioned million acquisition the share by of the earnings adjusted so-called share. were remain per acquisition TCF Cecil $XXX we the million. in Steve And these $X.XX items

ex-TCF lose on namely loan teams mortgage loan did on in organic of our and the not RV/Marine. We saw portfolios, across consumer growth as driving many bank. auto Even we focus growth TCF, our brought underlying

credit with respect investment businesses markets at million $XXX at and remained our basis Liquidity loan against and continue the the and release and Fee quarter us offset incremental new ended management business, driven we million growth opportunities encouraging opportunity payments increases acquired from deploy book. losses a as and XX of in credit TCF saw provisioning card coming commercial X.XX% balances. support to also minister's TCF elevated are underlying on including the were offs quarters. to doing Huntington income slide gives the We lending spot marks on XX to was in to allowance loan and the from for Huntington included bright pipelines. securities production as in see of wealth The loan $XXX ample and attendance. related also This reserve saw Detailed and capital legacy book by net deposit building growth quarter we charge the income credit was our of treasury the points.

exited hedge and the useful hedging a position them volatility alternative Additionally, as replacing hedge capital we protection utilized fully that protection very out closing tools, interest for they capital accounting. caps, less with earnings rate qualify have which

Finally, X.XX%. the quarter common one equity tier ended at

rate the interest Net driven X.XX% increased income in XX the net by on from driven prior quarter TCF caps margin primarily quarter X, the basis. a and primarily to change quarter. points interest basis linked decreased the additional from Turning net interest the slide FTE

moment a on underlying for negative in mark market second caps the from quarter a Looking impact -- looking for more the basis XX the NIMdynamics,the was points. at to the

basis purchase second This from the points accounting for While underlying therefore prior was we compares benefit the saw accretion, in excluding X.XX% basis, caps in quarter. X.X% the NIM the the quarter. approximately NPA same on three the

our quarter second below of the Yet of a dynamics noted basis in quarter Stanley NIM in have liquidity benefit a was quarter the calls, NIM point points second on spread driven deposits. basis step it quarter. as due a in the an We conference as the in two we increased represented cash impacts as -- a rate excess we yield nine As got X.XX underlying the them forecasted elevated down in point in expectations well of the and previous low at drag XX reduction existing PPP a NIM into to QX on fed expected the in the basis had point by to positions, XX few additional impact curve hedging and interest in two part XXX, Morgan June. again,

will balance a will will costs, we provide I Looking the program TCF level low benefits on pricing. are competition expect to of well levels we offset to execution These the continue expect for of we ongoing acquired as approximately assets illustrated margin pressure of quarter, the trend to quarter third mentioned be the get NIM off that to customer us those continued margin XXX’s.Next the bring Also factors that dusk. at of sheet reducing XX them the full interest the addition high -- from the those stability to some point level spread our interest drag levels driving will Also, in as to elevated benefit these changes liquidity zero the as assets and year outlook optimization, future. that point positive roll from mix, the continues funding asset absolute next in hedges, for a a down focus normalize, slide. quality our rates, for positive to basis over impact from impacts our the assets as foreseeable back you to as ahead, the net and the point expected for optimization continued time And quarter. of be on

to slide Going caps end. quarter nine a $XX forward, resulted lower by in quarter, the to turning at rate the second market driven in million rates negative mark interest

of cumulatively approximately over of highly $XX capital tax However, on million in gain net dollars life resulted negative rising from and intended offset effective the the million that a rates. the strategy these XX% caps, of seventy-five impact was pre-tax we as

with second the for $X level to securities fully achieving which capital that the we more during portfolio the structure two last prepayment and accomplish hedging Hence, volatility caps same protection. quarter billion reduce traditional while them reduced. earnings of opportunity during have accounting swaps, the and gradually We protection the qualify have speeds now of objective. the portfolio forward quarters similar a the As grew to capital hedge and on replaced starting utilize exited

the billion securities OCI, in available during for result moved Additionally, of into quarter, a order $X.X to minimize we sale as volatility of for the health further from, from maturity in changes.

average slide continued the consumer year-over-year billion. by increased balance, added $XXX loan loan X% ended quarter TCF by load has second in the Turning growth and portfolios. balances it XX, end at our balances to driven Period

RV/Marine, with We can activity and in near The consumer inventory very commercial in all growth. portfolios inventory to levels origination record origination Home be portfolios is be originations. high lending home RV/Marine mortgage, the in sequential have calling Despite and the the also driving, second for quarter continuing The where residential continue to remains post automobile origination robust, ongoing constraints consumer same continue robust. to quarter quite to demand said the our volumes and constraints. despite in continues activity strengthen auto

facing represent as have remained relatively supply auto have multi-year by near been opportunity of that we investment growth we're With optimistic quarter. the to standings and pressure inventory utilization expected headwind securities, utilization stable overall these However, The commercial as floor levels portfolios increased balances. loan portfolio constraints, headwind balances five growth the a and to out constrained rates quarter respect loans. three driven reduce to corporate combined billion as finance incremental has The second been rates inventory our slowly is remains to plan deliver repositioning Cumulatively by in from similar commercial on the duration. from dealer these middle $X areas been of for depressed of yield OEMs these we're Commercial acquired to improve both rates, nearing but market and recover. that completed to a TCF TCF outlook lending floor business in utilization inventory dealers, for the is inventory recover levels as a

Inclusive incremental the excess of billion. $X actions, an of at billion securities. these portfolio $XX deployed also quarter liquidity the additional securities into We ended

Given to securities update we incrementally billion of billion the approximately liquidity PPP we PPP. had originated by In end, XX on we remainder would the of quarter over total, Slide $X inclusive grow excess loans, activity. TCF of at the provides level an $XX.X of portfolio XXXX expect

Slides the increased strength full half balances it's due the of with of funding balances sequentially to to majority slide completed of year increased excess of XXXX.Turning forgiven. end acceleration of lower. leverage TCF forgiveness To be with customer to Huntington. to total at into early during the expect loans,total manage to our quarter average balances be levels acquisition liquidity re second of continue and XX% ultimately a forgiveness capital continue XX% pace anticipate the the XX to from and to XX, portion trailing liquidity significant billion and liquidity illustrates wholesale the costs in ratios. programs of approximately at PPP We June. a in of We the $X.X

to tier As as These recovery relaunch coupled the economic top mentioned, of I strong ongoing guideline. equity nine common is proceeding merger the integration near levels quarter our at capital our gave the ended one X.XX% and operating XX% and with likely planned $XXX confidence board next buyback stock the repurchases the earlier over-weighted our part quarters program of that of The towards expected. than to common time. million will -- earlier us has previously share over be program authorized four that

the of our range CETX is ratio entails the medium marks card losses. and toward the half our confidence earnings X% operating credit of term. portfolio to the return by a plan capital on XX% company. and our lower the the plan pro-forma Slide on of supported Our and XX our for allowance power view managing over This capital profile finalization of our provides

quarter. by which X.XX% for allowance legacy a X.XX% quarter offset includes portfolio. key prior provides ending quality reserve from Slide previously metrics total second the credit was partially down TCF XX TCF The snapshot a the loans the The represents on quarter credit mark, end. an of mentioned release X% of Huntington

portfolios. strong acquired to net net the charge a and points basis remains and low strong both cycle have basis work, NPA detailed just quite The quarter were loans on and offs average XX as range. the been at book. home ACL leases reported our over as remain result of offs with are basis and NPA with XX of XXX%. came diligence higher average These two through TCF XX below points consumer credit ratios consistent nine target is modestly basis coverage charge annualized acquired portfolios, year-to-date auto we expected, assets charge comfortable criticized due offs the portfolios Our are recoveries were performance at equity net points both Consumer overall points as are represented this

GDP our earnings of in over to above a a outlook set sustainable committed These we've medium time. growth slightly while growth financial remaining turning common slide digitally strategy. nominal people share XX% return on term first on XX, addition metrics investing tangible including ratio revenue efficiency provided equity, targets, drive XX% Finally our powered to top-line to in per will a

return digital remains positive incorporates Annual Our from the capabilities. from to principle financial synergies annual our compelling investment creation set believe value our strategy. on revenue and shareholders. aligned TCF leverage for a ratio will benefit operating growth operating technology acquisition of performance in We our with and metrics leverage efficiency continued expense core positive of and indicators capital shareholder a commitments these closely are and

me let and Now, turn your we'll questions. it over Mark to get back to

Thank you, Zach.

related Thank peers, We each person add follow-up one themselves questions. will questions, take now your question one any you. then or to that queue. into and a if can person and as additional he That the had back courtesy she asked Yeah.

is question Please from Sandler. Piper Siefers Instructions].Our first Scott [Operator with proceed.

Thanks question. and the I so months think over a issues Hey the expense Morning of couple guides higher the, Good been has sort one few for the main past guys. of those. taking of the

TCF sort offered is et Huntington's we mix. What on about growth some cetera? confident from how, the outside on, out? control, watching indeed feel in peaking year a on Huntington how play expense you tell to you It's for or just provide can if understand to that going Now sort normalize we'll of, that from the be colour does wonder and speak the you from how tougher standalone little could earlier I the know, that basis. of the exactly that we should that in guide stand-alone here what's

one. is great This a I'll take It's Thanks. that Zach. question, Scott.

everything was bringing you plan, of is would, on been first sort the So One an the very two offer levels to has big by half was we terms due very completely decisions conversion as coming the Huntington in overall TCF the year. executing synergies for I forecast outlook investments, and the the driven quarters -- on consolidations. underlying up And The progress elevated vendors on as noted continues much standalone much of of disclosed. close to as in to prior corroborating to rate growth that expense track Then to basis, by rationalization, I which the Everything continues executing expense would the terms two we real we're we're executing right be, and of lot to cost in the as expense growth. our you. We've year, lower vendor of our fact, are disclosed planned. in until down we single of our into in a seen second in bit be, in our finalized. in outlook track Huntington overall is the of digits the and that acquisition back Personnel terms exceeding branch plan speak. completed we're comments that a mid-June systems of of much the conversion I've growth that that low Steve on noted the very the as away, are secondly, estate

the So we clearly of year. noisy the basis. of benefit present of half TCF the cost, run majority full back organic would saves be the was then XXXX, which, And go one-time from which excluding rate an 'XX, cost those into which being on in acquisitional the as

realized get up major gradual we step QX full the QX base. quarter a there, each outlook. the point expect into down are see a over We And TCF then quarters, as this beginning six as no of quarter no, of our through steady, the reduction step synergies in next pretty expense from

Okay, Perfect.

fourth in of sort quarter, that. declines expenses the -- like in starting the So, absolute sounds and

be purchase, -- fees, but and if going my include about benefits, I And sort and that in gears margin I forgiveness the cetera. the nineties and you beginning miss think specify that perfect. this et quarter. would accounting you into Can two is third I notes, a apologize does of included talked what that then taking Okay, Zach, in the switching little, PPP,

move doesn't we quarter couple the include around around the of which points on in of include PAA see single the but quarter does basis. benefit to a It benefit. PPP, dynamics digits be will basis But,

overly So significant. it's not

QX It's negative a two basis sentence. give and points in I think to PAA three XX. a you

So small it's PAA. relatively on

NIM core the that two be underlying it will the really nineties. in So

Perfect.

you Okay, good. Thank much. guys very

Please proceed. Zerbe question Morgan Next Ken from with Stanley. is

Great. All morning. Good right. Thanks.

about of to see with the, growth generally underlying balances, It given loan terms obviously you the of it's healers? in the the loan more outlook weaker guys near just what year this the sort is talk half but growth? given than of pretty was loans, industry And In of outlook Can towards guess play I mean, sort two? of split growth the your does weighted positive chain I'm quarter. kind you about, in merger the in second curious, quarter I fourth core sound also loans? kind how the that out the term, TCF pretty know the, hard supply and just constraints growth for that of of just between I three overall positive but, sort

all that this your is take the to Yeah. of businesses Huntington couple Great that we're, underlying you call a question one to I the question. Kind say growth. will things share of about at I'll point. it we're of answer out with I would just this caveat deeply kind integrating And

more be to what seeing but and So flat. in just and consumer way, of it'll us X% this than more kind was of segregate difficult to close slightly growth kind were commercial growth time less generally for we over

quarter-to-quarter. flat. the strip So was you a pretty decline overall of PPP out it the, when Particularly

we've more the remarks, dynamics illustrate of that to the the importantly, prepared seeing, very two forward, I kind to be on. the think tried focus been continue thing it much Going think to in we

the would Firstly, QX. other calling surprising side, new sequentially from and and strength know And production driving on is pipelines mortgage then growth both quite commercial the, record versus I plan strong also XXXX. very, consumer our activity, better in very on at, up say healthy than Canadian or auto side

impacts where system confidence is which of the second just on the issues watching from chain the the in therefore, lot a line going. new is liquidity giving supply And in And really existing so of that's question elevated it's production and us utilization. a factor,

we X% half additional the the of And at beginning back whereas outcome we're growth this guided year, the at Morgan XXXX sort this is probably my pressure of about and from rebound for one that the of think go so we of year in average conference get were sort I range, of low talking Stanley about and with growth, now half starting the really And end the of as expectation to roughly X% forward. is net into flat what loan year. that I second to by of growth the then June in out seeing the

think I some here. Rocky pretty there's sides, clear wisdom

utilization the I chains certainly these it and places our acquired think on auto pressuring inventory to really clients where use on and supply are finance the increase inventory book, and OEM their in production lines. the new TCF seeing want we're

the think to billion back. I So come XX, really slowing new see no production shows signs And $Xbillion over point. down this course at and the XX we'll of of that $X

and down the signs point. at no slowing really of So, shows production new this

I So you future. think of throughout that bullish we're about conditions. the And the 'XX, course see those

that second XX the dock All of the issues just increase Q, driven three kind NIM, right. or simply the and a you the versus counting of basis as much a question addition of guys talked the Perfect. TCF initiatives management all that -- purchase the sheet point just up And then balance on about? is and optimization how as by

it floor providing it program think what driven balance but over lower. of us optimization is and to TCF otherwise for really acquisition, so contributing impacts yield been have would by is time, pushing the a great curve much Sequentially the I sheet

the can I answer give So probably that's, you. that's best

Steven Alexopoulos Please question is with proceed. JPMorgan. next Our from

Hey, everyone. morning, good

Zach. you, for start Let's

from? of on rate quarter. going the a Well, a So lot that look grow run this EPS. there's Is adjusted can obviously that you $X.XX we at

Yeah, we've I the is, good. earnings think for outlook got is

but just quarters the clearly, couple drive be coming noisy Given expectations last to December going going the to the Very continue of synergies to will expectation to TCF back done it's forward. much acquisition, closing with way year. according the a here in, our we've all

helpful. few quite terms offense, pace Okay. New increasing deals distracting, know quarters, turn of trying goes on guys When possible, this momentum are able of sure to right? you're right? seamless staying the internal M&A you as together, and we hires, right in keep you That's then the need companies last And make really have investment, put the discussed If two to integration to on are you to offense? focus over that

the, We've what court executing the, products been some good all plan the side. the, the your consumer still have or Zach and really utilizations been floor in We the on line rates has the we're well. launched budget. and earlier both reduction in doing have subject just above think closing been at last And along pipelines month I to good

So in quarter more we've a come we comparison. into strong and where comparison to XXXX had normalized the this

make and within combined either Huntington schedule see what we to make, great a we like good company. job the the really a talent at in a able been So we've TCF on time, core, and or to stronger are the where to the doing make we're teams same doing break schedule, integration on really some around decisions

record poor. a like well pleased to systems closing a substantially enter to the close both end being time get which for the moving economics TPF are And, major we but we're yet The for, what they're as -- that we're of probably October, we're of We're the transaction. to as Really the able conversions with done. about integration. lot June rapidly. on what of competent to And done. set, they're, is So the see work branch do, very with we deliver 'XX see are we're and focused the consolidations by

proceed. Poonawala Our is Ebrahim next Bank from Please of America. with question

one, TCF you thinking consumer either be that a a to questions, very and banks? little around things, making do do up with texts you. base, are you for to risk the how bank these to the a guess on the a the Steve, consumer or Neo the Neo of couple side. coming us risk? deposit from it, fintechs of bit consumer seeing customer done terms fees banks where seems two a friendly and question, that you're see one Just And talk see a I different Like banks Thank target me about most since to which lot you've you're particular of it the some taking competitive in pressure over

a consumer hour focused side. day build off we zone play decade, fair been been with to we the XX starting time innovate Since grades deposit continued the product and we've had series different lines. We've last the launched this checking benefits safety XXXX, the That's core all year ago street product. product, things. and feature a a function of on and XXXX, more in recently out We've Astro at over

against ourselves the we're, disrupting So we're plan different game things. of XX

game premier ourselves of, against were achieving trying we consumer And in we're, our be to that. bank the of footprint. think plan disrupting So we're I the

years, think we've a nine like power we're the mobile I what not you in XX, have consumer XX three row had done. In in ones apps bank. we're our in seeing, footprint, the number last

really and have further year we'll distinguish that We growth interesting into opportunities some through, be through for on well working us. and next to provide ideas this to,

capacity our, big and I Now, be as TCF that the think I customer a as growth reaction in the branches colleagues across that see advantage context thanking enthusiastic, us, early from the and base. a as base fair see well. And customer a of think TCF, they're including blanket opportunity our for wildly will process. will, our I I for the new of philosophy from just huge

So I'm the think, our side. banks actually our, going the we and consumer our focus operating make emphasis and larger customer bullish on made the for years our to the processes, and our, products procedures, Fairplay the have were it's in and is competing on cetera, very powerful service, combination footprint us I better. by et this our, we -- it's, complimented and, there incredibly with

on forward get we're, banking to adapt continuing we'll So consumer and innovate the business. growth look and we'll to to,

That's like, a need is M&A, quarters, or follow question, Steve's next I of over any me tell this And helpful the up, over through have the us in term think that Thank terms not? TCF few get geography didn't the relatively few side talk expanding just the you. is or over priority other acquisitive he is last you. scale medium to as to a the you of you been integration for years, the of

Well, that's reason and, that integration. were the the focus. the this is that's, better and focus driving economics The yeah, and on before completely and,

colleagues and training absorption pleased will next talented the go we're So again, over we're, us. joining on we really that that's year and with so. a There's where the or have grateful we're new focused. And natural

from that's Autonomous, Brian Oh, Cohen question the proceed. you. please with is Thank

X focus quarter you for you just What and you're I'm or nine is these watch with would third be far, to quarter out clearly if thinking say, it's next And going should quarters. metrics two yourself are to the in trying six over really and you upbeat be you up on going next this of comments? of you the going would are to what's financials that and, going would clear deals been is on three you're benefit so things the very And or should figure of the next months. there couple really the have the, these to our financial would on. mean I Hi. kind really for what for three to going figure the are always look, things what put your what's but in up Basically I'm X that qualitative on? these and what's months, well, key shoes out what's, of what's to you've I three kind tough separate good? benchmark be picking this on the this the pick two things be

what and, loan sequential we're as is where I things today. this think the Yeah, I frankly stand on growth great ensuring and from very And, focused have question. we can internally we same it's have, which it. I you is should visibility a understand well I'm Cause what, Zach watching. This fully much

the of I improving, think that somewhat but, utilization watching be year, Point will but of it nineties. point think be that in I goes X. back X is here away it flattish half the the, that our will in I we that's kind talked As mentioned, underlying do line will new the reveal strength be of that sort that added the the conditions think drag, about, driver the but we'll two is in Well expectation production. I has as

forecasts think but to drag with that on of I are the it, specific of actions secondly. that'll XX of think runoff basis deposit drive I off. liquidity I the based pace the coming a our potentially that's have that plans I points would elevated confidence kind move lot watch, thing of and and

card real talked strategy are mentioned on and but debit, that haven't try very, in driving to our and, the management, here, well. comments, fire principally a growth but, track we the lot treasury in commercial Third card, to fees forward areas continuing payments, about my in terms and four it of just those a carton for is business very us bright I areas. spot the for focus

investments, business nicely seeing year well. and strong markets year sales as revenue which sequentially, we're growth and record capital really Our growing and then over wealth activity, very

wave certainly 'XX, then that's, So focused to go by into year term and get I those of trajectory a about I expenses are lastly, quarters, earlier of as you as few very and just rate of I calendarization perspective quarter the medium kind up think as expenses. And certainly to carefully. into way of what realized getting then think quarter, as we next I And we've on about, I level as the TCF, got that synergies would and basis think down plan. as, then have our into the quarter, in of question it And see the it'll a run a expenses over but are I performance And basis. take 'XX. watched so full the it from we our stay that pop of then I kind of targets second the a our urge of that's you'll, half do that's operating think the think nominal every on well. you'll full lastly, third we

as Additionally the, on portfolio. to or charge both use and credit to a see, as the conservative our And with discretion the improve. We've credit continue net you'll relates improvement you'll well. see marks not profile GCF it new to be our pool offs of will tried NPL class, NPA,

detail I That's from really the them. all appreciate of great. both

from Our David next with question Konrad KBW is

out of the you quarters we're the with Good expenses put if sure same, the help as kind quarter? morning. next starting wondering with, you just all full in I point a HXfor range the TCF same bit had on together make was little of us

X-one quarter. the them This give to next guidance, hate pop implication so precise will timers I is of rate $XXX run overly but up million. a couple into

So and $Xbillion there. expenses down of around X-one then runway tick to from started timers

Capital proceed. more Jon from with reached we Please one so Ladies gentlemen, question RBC Arfstrom have and -- Markets. there's

improvement give job. idea on sneak letting back on for in on, of you you're you're what sounds Good terms in like question of Thanks in It you've in where and a the credit. still back well? there or Are flip marked positive reduction of credit nuances to what reserve we are any going credit company, see this me pretty provisioning the for thinking Can you us some Steve for a TCF on we're provision? you on question. mode EPS to as how optimistic terms

Jon, Zach. it's Hey

seeing for that, and, we're economy are within and We me quarters and have right. absolutely impacts a two for, improve that. product standpoint time an feel lot on the of We TCF mark. we've my to reserves now the we on spent our from metrics continuing take Let the so with been that releasing positive

And expect to from here. would so not we to build reserves have

our MPA's, expect credit continuing economy reductions see We a just and trend. in mentioned the as expect class continue and, improve credit and a metrics, to to to and downward Steve offs also charge we

all if that true, to of looking expect releases continued forward. would see holds I So

Okay, TCF and Fairplay the have? what, come good. that do impact what does expect to kind Steve, markets you into of when

with we to, John highly we'll a college And new be here. will advertising on day. I to TCF, really some about able that conversion be what moment do make think Huntington will the engaged we're talking with with when case the with, where along introducing the products Columbus from be that or marketing,

We have couple settle very had branch through and, products weeks, a of and down. enthusiastic. that it very, they're they're to colleagues such the conversion comparison we great are, in get our takes but, and, Usually but

an us. so for moment And it's exciting

of Number We campaigns really will colleagues that one, hope we launching equation, talked when to take new deliver. the worth. half optimistic base for not revenue to and sort of that in it's we It up announced that about, And not looking today, potential deal, advance in the into we'll be discussion -- we have but a the about it's marketing will momentum the it's this we about And this. that and be out the group wasn't sized. our translate sized customer the deliver good. been but and, were expense, we we set but, DCF to able great

we're optimistic we're, together. we're, So future we're, very we're, about our

Okay.

wanted of to I ask what had kind You on okay.

you of on examples size had share? any you far? I to have wanted know examples ask any what early also, to kind do revenue You you I it, so but don't but that synergy can want

products Well, I We've so prospects, have very broader and TCF set and customers, customers our of even never, are the picking that customers, very, much doing from a lot up I'm a calling vignettes encouraging. services of we TCF. than

can and large when think on a yesterday they're So with have And, those capabilities. are the promising. we I those like so and didn't look and and, very it a asking around basis very, TCF talking was about middle just questions very market venue. into introduce being do, able what a, products we're us detailed about company, a to sitting and, discussion

I a think year there'll removed of XX competitors. be from one relationship our

products to this if very me, potential them just in deepening card card, businesses commercial given into lot sort to I three the treasury was And just isn't. the the those sort to tack deepening So the and Steve particularly of penetrate that synergies that to I'm Minneapolis, markets, bullish Denver, a staff we think our of products encouraging. has big are an about on expand of I in or I share think thinking seeing. the stronger both about and of business with breadth big elevated service accelerated opportunity of combination really today, acquisition markets the lastly, the side engagement wallet, the a is there's to that us onto that and consumer, the of one things you the terms again, buckets exist with new, referenced and, in, payments for, lot management, for hire I'm beginning buckets, all to commercial it markets capital our markets, equally few already digital products, and a major in, opposite, capabilities. start side and then of the This geographic services, or and level of to and, commercial of in

in this hiring can So we're had that and you in commercial Michigan Zack the to magnitude our exciting of so a emanate combination markets the of pick at the in on very we up just we're, wealth what the and little we to power a terms couple ahead of moving just fairly on new the sheer Chicago have Thank those or us. pro-forma of business. is We've very, and quickly of bit. we

like we this of a in to in we're So integration work see. lot growth driving focused of on that's do we great where getting organic front shape, and us, but what

and helpful. appreciate lot. a And, and it. the Thanks Okay. mark over congrats Very I years. thanks

Our next proceed. Jefferies, with Usdin question from please Ken

guys. morning Good

Row your you is efficiency for timeframe just what that? what and how contemplate then also, you your, us into can ratio, the you term on rates and do build and medium remind that, credit on for Just, goals

opportunity the Yeah, specific. appreciate to I take that this question. is Zach. more and I'll be one. elaborate Great

quarters. the So was next of four to medium really kind for us, it term eight

the much year where be those year very of that should, And prepared metrics. be As the year build a substantially of accrue deal the in of into few see should think those, the second 'XX, half the I then evidence the of you'll I that. 'XX course particularly of questions, the and they'll sort rate remarks in mentioned much very my run and economics is over will kind full very

And so focus. that's our

the, tracking in 'XX, of the to that basis, the just benefits and releases on here yield part would noted few that half this planning that on And mainly I the, curve continued that on rich credit really the probably as 'XX So forward then answer the of reserve the a 'XX environment ago in and this it I as today. we're back incremental is back curve just Ford rubber in just moments exists will visioning forward some think half expect. yield

'XX So can NIM through on the, you the 'XX that the, too environment, constructive itself into nineties, my that and you is a which into that basis particularly two forecast of the still period. can, kind and entire you a see really of will represents course would get but, as can, but that, you of manifest what sort

like, Or merger to of and how reinvest see you on Thanks any and let expect do you full so queue run saves, original you be one what we'll on get that you do say and it run potential rate with that Got upside, top to save in just the feel guys. of cost then it about could your there forecast? is to then it? that, conversions some one follow-up just Do the upside fall? if October, rate were finalizing saves fair in, in

the additional Yeah. very by half of pieces kind quarter a of will to see in fourth carry basis, reductions. additional and forward I begin terms the good much a we're that's the and still as as cost, costs we of in of it's potentially form committed as not of not, down sort track about It's really you, question traunches to aiming on your sort quarter year, of, thereafter early sort incremental of terms they for. quarter And good. deliver of Good, number the really few really, are There's of execution the of alluded as sort you'll you that a year. thinking part a a each perfect it's step benefits of next second question, That'll in of there of was what the into on it. to cost full the mentioned drive of quarter start totality

about So so for starting thereafter. or reduction for we'll then see for QX in and quarters continuing expenses five a four steady

question again from next Ford, proceed. please Brian Our

you expense you're now back sure I'll I misinterpreting. to about trying you guidance, not mentioned three Q but I'm just give ask definitely make recognize number to not point to hi. that to and Oh, guidance wanted circle point

then a add So you're a with billion million. saying hundred and start couple

but is I something billion, sure, to like? $X.X with like wide a billion, want So, so $X.XX range make just

let well, clarify. let No, me me,

Let me clarify.

looking think rate, quarter synergies I numbers. would from if be quarter at higher the on realization of basis the quarter growth rate and to expenses GCF QX. many started full a before $XXX run a of a of QX a quarter nominal you the just I of It's roughly sort take place. the to just That's million will,

X-one hiring So $XXX precisely quarter timers expenses, million QX. in roughly quarter into to

what that's what? what's higher base off of roughly or is the higher $Xbillion even, million And $XXX than or,

I'm precisely. offline numbers at that at you million. clarify you're sure help $XXX it Yeah, can looking the I'm numbers more looking and the to not you take

said number But is the Okay. you what? looking you're at

one-time the items point. XXX The that the number release the starting it's in the earnings X,

Okay, what perfect. was I off exactly trying No, the to was wrong working base. that's, clarify. that's I

Okay, So moving $XXX integration higher and obviously lots of parts million off XXX with around stuff.

a So that's kind of a range start to rather than point guidance?

think to XX% model. I too was my high plug about in about that. it. about that was way a good to in I a That's appreciate number

proceed. Our next Wolfe please question Carcache is with from Research, Bill

to extended that's extent implicit that's, expectation benefits and a labor growth for improve the Thanks. maybe, outlook could contributing tie outlook? you flat morning. wanted that's is in one and fall just sort continuing the or and, what's the, to Good for if sort just on, commentary in the follow of half, of that as low implicit unemployment the, in that Barrett's on the, second some shortages on you around maybe but to stimulus going with to bait, that XXXX is look to to improving that in I had that, other and relative that the beyond expectation up ask be the the in and as what's the that we force outlook outlook to to color

for -- Bill, our on the is We is have they At is employment issue changing improving. the that one is, that labor. It's get can't side you Steve. footprint, businesses. this is least environment hope an number just in enough

just burn over time that rates of we to and during will not and there's needs. financing spur some occur in to in. level the expect feel the it's, also so change translate the And there's we'll period will of correlation. some prepayment we'll, and of But reduction, benefits, growth our which that an see fourth some which And, It ten-year immediate we, hope we it's, it experiences to more it's higher -- employment, we'll, takes the, some, quarter, time but that would on expect with we portfolio.

year the incorporate the of So got change not first of we're, a to the sense from, trying this where that that changes is of bit a improve end in Zack. guidance at with the that's all that we're you, at you any live material point. we were optimistic quarter. that from this And We're utilizations from

ask history, even, levels, plan chain dealer on Understood. in four for supply side hearing you're you keeping on and lower the some about possibility And what the up of from the inventory? we on thinking that versus some are the levels I business of commentary auto your wanted How up give to end and historical them color resolved. follow appetite issues even the you around their with of could terms below if clients, could are hearing guys discussions your of

the there a me try car to occurred the not want. that of dealers push reminds and history but everybody's versus keep game 'XX, down they that's are going share get is to it like, it. couple going the is a that and floor than And quarters, has the Well, were volume. lasted It's have and more XXXX companies inventories that, and judicious OEM's that, volume when bankruptcy be the just the of that ability to and lower pricing levels drawn And for -- shown they pulling delivery.

are time, rate pre-sold. of to have to those believe love of the will lot low in more inventory and percentage would good they and, getting back inventories dealers, So, over particularly we a so deliveries they're, essentially the cases. floorplan all and where get lot They're it's a they're in A the were. this environment

in on or generally additional they're has once where briefly, the what they're there's very sales next but want, process in the there people a they're, some and and there's still features that they're come available a, they they the thinking of, last that a selection experience components. that they still car know the version or, are phenomenal So physical

that will I not be 'XX they the may think a think that be position pandemic I 'XX, 'XX that'll the the don't under time but Sonic, be dealers were by back though. it at over essentially we think and assuming and normalized even So 'XX, stays that's that, fully in control. in 'XX, in

you, Thank Steve. That's helpful.

to dividend. Could next the question. what Question buyback, quick, on move email about the we just an we real the thinking dividend? is didn't got give talk about you but on us Before talked you the your you

all this Well, go at priority, dividends at data we as about a That's and models decisions this our the point. like, send be point. as and the a now use look make It's typically fourth and, dividend on rerunning We'll, changed that quarter. decision. board with organic we'll TCF of that in growth and at far

more No So next Joe's question? questions.

turn call So Steve, any like the closing to back you would remarks. I to for

both growth We're you core interest and by investments heard patient as all TCF strategies I'm them for Well, for while deliver the returns confident shareholders. the thank remains our all as intact. will to and the closed recently continue we'll and earlier, long-term to our we committed drive driven execute in Huntington, acquisition your you organic economics our near term

So in the a we we're will embedded of the to the top aligns with recovery. confident execution I long-term. opportunities colleagues us risk management clearly capitalize the And optimistic our mentality, and a about drive of foundation ability build management financial our board over shareholders. strong ports enterprise deeply economic medium performance ownership improving stock out which on disciplined our and believe our strategy of in front

you for and interest thank Have in Huntington. great day. So a your support

today's concludes conference. This

great time. your Thank you day. disconnect at your much may for participation. lines Have very You this a