Wells Fargo & Company (WFC) 13 Apr 182018 Q1 Earnings call transcript

Good morning. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the Wells Fargo First Quarter 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. now Director turn of would to call I Campbell, John Investor Instructions] like the to over [Operator Relations. Sir, you conference. may begin the

Regina. John questions. Shrewsberry, This you Thank discuss preliminary where President, Good is answer our will Sloan, you, your and Tim CFO, today and our being for our and call results call CEO Thank joining morning. recorded.

our earnings I'd and like our first Before like that quarterly are you we we] you supplement can X-K quarterly found referenced, including Form filed and the about get non-GAAP that wellsfargo.com. measures to release, started, remind [ph] President, our Web-site those from Tim also available in measures, to statements cause of during Factors our containing today to financial the release that in and to call [caution actual CEO any SEC the GAAP risks in on I today's filings now our be are will Web-site. also a measures Information earnings may call filings, supplement. release expectations to and at would available earnings including may over make turn SEC Sloan. in that and materially forward-looking are our I on quarterly our subject differ detailed results the reconciliation quarter to supplement uncertainties.

joining I know today. us it's Good for morning Thank you John. busy for thank you, everyone. and morning a

OCC reflect CFPB practices which aggregate regarding of OCC financial policies subject protection having our the release, interest are ongoing matters certain preliminary our results final an to rate resolution time, reasonably offered penalties. may related the to matter lock quarter for today billion and to CFPB cannot the report we that compliance resolve and SEC. to our our our past earnings results to of we results the the that are involving revised preliminary. At important estimate the our due final discussions our in automobile with Form certain collateral financial money are with It resolve the CFPB/OCC we first matter not when be noted new management CFPB/OCC this note have Accordingly, to we Quarterly is accruals in and insurance the Report predict statements change XX-Q risk These unable and $X need are these to As program matters. file additional civil mortgage preliminary contingency. are extensions, to and loss collectively we on in our for

we our first earned results, Turning $X.X to billion. quarter preliminary

and charges. goals. share want highlight personalized our a we by during Starting on [ph] continued new technology. results strong their call. leveraging returned quarter rebuild customer comments Fargo create customer include in number the goal customers noteworthy which performance, that In stock we a includes Our build efforts provides year with stakeholders. dividends common a and billion the credit shareholders and last becoming the has leader customers. repurchases and liquidity, manage and our will quarter to service mobile a customers zero to A which rolled data advice, out better changes accounts predictive experience. results, later better of in first I focused This our our impacted a with of the ways avoid included banking, over $X John [six] our progress year help we were focus trust to zero up to bank to These In quarter, net to on and helped took XX% my which alerts better ago on automatic of guidance items deposit balance efforts on November as the from Overdraft our Wells first we overdraft capital XXX,XXX actions to million send part Rewind, ago. we balance month. alerts There introduced the XX over levels. introduced and [indiscernible] We and through year, now low transform insights we

best first of the we in an offer U.S.-based XXXX. goal changes These scores waive loyalty also pay levels are a increase. customers member the Team a variety We their the which direct increased hour improving service, of branches have hourly survey engagement succeed account highest build for customer customers and our a and account I pay checking on we reached to customer the to accounts our financially on help March have received are the is also checking fees second quarter and $XX monthly designed XX% August usage and of In since XX,XXX standard to our ways relationships, minimum or do in and as team in an deposit, based approximately we our believe members approximately service processes team industry. team and not rate actions made members our monthly customers and to fee. compensation long-term result to

member of In stock pay and team members our salaries below members. levels. are we XX% and March, shares members, stock XX were In of full-time above whose additional eligible of to slightly quarter, continues team reviewed we month the rights members for increasing including first pay XXX,XXX base shares XXXX to team be the team also this for members. turnover We wage granted an for team fourth about approximately restricted about team part-time new minimum quarter award for XX XX,XXX

a mortgage out immediately, first In quarter now completed Wells Our either homebuyers our to Me next rolled is receive preapproved Fargo's through through mobile our In online data of decisions a customer being were goal application. You power In leader combines are loan experience. innovation. able Know applications cases retail with of in digital the digital application which XX% the many device. mortgage or their March, we

feature Fargo or their information to account is Tower of customers new towards Control January, service designed connected. our started messaging. a only XX named accelerates is also one with Apple's and transformation of Business to which Chat customers of we in places a view way pilot, customer We comprehensive our our provide card Wells pilot companies were a connect team the member

Our and #X technology overall recognized recently which and Wells availability. app quality, functionality by performance, Dynatrace, in mobile named was Fargo's industry-leading

part we As setting and [indiscernible] oversight way of standard risk, management March, in In of Fargo. our ensuring managing improved and is our important operational Wells which risk goal independently at of months step that risk organizational the design, operate an of new management XX provide effective strengthen and functions actions businesses. the to risk forms to taken all past significant global the over compliance manage we've

Federal per oversight, this the and addition, Order, and management plans submitted Reserve. In operational we Consent month earlier governance program compliance to the and risk

positive in for giving contributions our consecutive was the we making first States program of serve goal year. Way in to communities United the workplace recognized quarter #X by the the Our who named Worldwide, United ninth

goal increased community donations XXXX. by also non-profit our We organizations in approximately the and of XX% contributions to charitable part in increase first as to our quarter

centers in XX business, progress business. that As first part [indiscernible] we quarter, regional the organizational to of our value, of regional collections which funding into of from helps further streamlining our making our and In centralization goal structures. and us delivering completed during business centers on the three we auto shareholder standardize have processes centralizing and long-term been

keeping in auto us close Our remains the customers. markets, to individual team our relationship

they are we our as customers looking Branches important for channels. We long serving an and use as branches our use at are to how part our also our have as play closely them. customers to want many using in continue customers will for to

at they and we branches first and our XX to are using digital branches on and XX% year ATM approximately However, last our a we year, while our in the X%. Day. are track customers channels sessions close ago, increasingly declined We increased XXX [indiscernible] closed and an which from increase Investor transactions is quarter XXX this digital teller branches announced

As we making against branch to expect path on right changes I'm of that currently we are by with approximately network X,XXX the six we our are we highlighted confident the and end quarter, with progress to our XXXX. decline our goals. transformational the last total

We a John financial for all now in work will Wells stakeholders. will results all time do challenges but detail. behind put take us, and have better our to our more the our of Fargo be of will discuss more it to result

good everyone. We X. and highlight Slide items on results Tim, preliminary the Thanks, morning our noteworthy that impacted

transferred $XXX gains discuss a the a equity a included call; gain financial adjustment accounting the $XXX Fargo loans; of revenue gain of due Shareowner to on $XXX relating from billion on unrealized little million which Pick-a-Pay standard, mortgage Our reduction and new to to from $XXX I'll PCI of a sale in mark-to-market sales instruments held-for-sale. the million million Services; million $X.X later LOCOM loans Wells

personnel higher expense, litigation seasonally $XXX of included losses, $XXX expenses million largely accruals. operating Our [indiscernible] and million

our driven Consent work a the requirements. in program and results $XXX Order Consent management the plans We a to X governance income outlook hurricane by and significantly Reserve. losses. risk was update release, Our improved Order. submitted included And Consent quarter on the an Tim all we'll mentioned, tax satisfy and operational on and we of the Order's we the effective Page first XX.X%. compliance On oversight, take also Federal to seriously provide rate reserve million related fully

discipline. and impact our deliver customers, are while With compliance our and $X to term. we maintaining in nearly liquidity minimizing long-term believe with maintaining our targets, our asset strategic can continue we and results management and other adverse Consent risk Order's cap customers' effects, without financial strong We balance the sheet assets, risk total financial in focused near the trillion needs on the financial minimizing to meet growing

As to on sub-prime riskier our certain near-prime estate were to legacy loans. and reducing including the and loans already real we consumer a Consent focused reminder, auto exposure assets prior Order,

have during in discipline consecutive risk resulting quarters high competition, for period commercial We estate of a new balances. our originations in liquidity real of and also four lower increased maintained credit

to statement declined modest to billion primarily XXXX. the to financial cap. much first drivers after the increase was XX the income to from first deposits of call, The by Page billion actions Our equity a we on the going on sheet tax $XX of Page so in point needed mention resulting the the income Order within $XX Consent adopted full our that the $X.X significant to short-term minimal just a including that $XX.X billion asset I earnings on that which highlight of out quarter, the net of deposits decline we quarter highlighting stockholders' investments impact for and rates. impact driven the on earnings X [ph], quarters here be cap to two asset accounting with cash I'll higher decline expect me the the $XX We'd due taken just year-end, million estimate first the commercial I'm what's XX in institutions, will was the drove primarily standards be new in we $XXX in [OCI] reduction subsequent approximately from billion impact the million and billion so will to due impacts. in we Page year $XXX decline call, but quarter, later summarize take. X actions earnings let release. me let in managing throughout to in the from comply of in continue most and balance the in summarized decline

a each first million in volatility negative impact of impact all on and could and as earnings gains standard those quarter be while required or This quarter unrealized to With increase accounting AFS, quarter, in recognition quarters this including and now will previously recognized of financial the positive, new securities. are future mark-to-market the measurement $XXX the was equity be equities, as standard, the to positive. we the instruments result classified adoption of

some against of The does standard, revenue reported. significantly bottom a it and In related us were is data to payment the now in line previously the fees. our most reduced second The expense which card quarter, outside revenue which expense card for where results million the one change $XX of interchange adoption impact meaningful new is but reported items didn't being and are recognition card change first charges network by processing due network fees. netted fees were

average loan loan loans on of decline loans the strategic mortgage connection continued but summarize in out fourth Pick-a-Pay yield the including Page declines compared fourth Turning junior that increased Consent since Commercial loan $X.X quarter, of point $XXX quarter, loans related with loan decline with loan XXXX. loans first $X.X in a me Page let X, than sales, driven more or consumer flat credit the we've not relatively first the discipline were took commercial existing up in continued on to loans. starting to well estate highest portfolios certain lien to Order the I'll quarter. market been commercial in million average we declined financing for of declined in The was drivers highly specific with loans yields liquid but acquired X.X% billion a paydowns offset quarter, X, the in to that the $X.X real period-end reducing Consumer balances quarter opportunistic some loans. declines and competitive actions from on by seasonality, with time C&I declines mortgage, billion billion loans. by offset growth in were and any $X.X fourth auto, continued ongoing due billion fourth as as [indiscernible] and by

$X.X Pick-a-Pay The portfolios and evaluation the quarter part the last $X.X decision second were loans were to Pick-a-Pay sell to of with billion similar mortgage portfolio were non-strategic first sales billion, our consistent of sales ongoing driven loans. of by the PCI in of The of down year.

a fourth to increased offset credit $X.X purchase the we continue continue $X.X higher as seasonality, billion billion from channels. volume, than of originated card in decline offers, in new to Credit to declined more the originations. growth acquisitions. quarter from non-conforming the new from card from new mortgage with loans, quarter reflecting digital up in XX% Balances XXXX. the were quarter. lien loans decline of in fourth Junior consistent loans in We accounts accounts had increase XX% higher digital were growth $X.X which of XXXX bonus quarter have the paydowns the high-quality and channel first first first billion through due XX% and quarter

higher have cards ago. credit XX% year higher new than Our balances, a

fourth loans engagement. to is sale of auto quarters, $X.X consecutive a we We to customer Financial down pending expect billion held-for-sale and focus of loans have as quarter. our five two declining originations $X.X and result Reliable were a auto transfer of credit certain to to the included on stabilized in grow card digital of for quarter the the Services, balances close channels continue quarters. as of Auto expected assets from last sale Rican This of the subsidiary second Puerto the After billion business.

to billion in portfolio highlighted and by currently fourth With early business into billion centralization declined and investments. deposits our the of increase now from we're small the quarter, the consumer lower driven start growing Investment over bank $X.X than lower activities, commercial begin deposits. deposits and to in reflecting Tim completion Wealth earlier, of originations XXXX. deposits to collection funding other balances more Management, Average and higher deposits by community movement time declined Average as positioned were banking of the which expect $XX.X offset

betas in rates, The versus average XX our X fund's increased fourth the the ago, from in the cost points rates consumer was driven it basis and but business over historical couple below in [indiscernible] end over deposit to and has commercial XX average The stable. rate Wealth was which Investment trends, our relatively percentage remained still increase banking commercial expect increase on betas Wealth most increased note and is Fed been although as and point deposit at increase deposits a drive of XXX%. rate. we to Investment we financial the past paid year It's prior began in in these rates the rate increases of time. cost trend commercial change Since from continue. Our basis consistent deposits expect that of of important price-sensitive from to interest deposit high have a Management while deposits and this deposits have response up with quarters the quarter and higher have basis almost the cycles, XXXX, interest points deposit Management institutions small include our somewhat by

betas we start in While rate pricing expect other movements, will to has deposit increase. deposit consumer [indiscernible] not to yet responded that category banking

is and included the reduction days $XXX first this income declined However, predict. The the two the increase by swap-related finished to income to $XXX approximately partially quarter. the $XX of an in million higher of declines from fourth Net accounting, unwinding interest decline related position from the receive-fixed quarter, These rates. early hedge million the difficult the million $XXX net in that offset ineffectiveness loan the quarter. in first fewer in we lower were drivers swap repricing of benefit timing million from quarter interest

of in reduced quarter of at accounting and a I swap bonds. from also act the points one-time our primarily tax related that in impacts repricing stable quarter as both and the basis adjustment the wanted lower hedge X.XX% impact income NIM ineffectiveness from to leases by rates. decline the benefit offset to was was higher NIM equivalent a by on from update yield in leverage municipal the fourth X tax first Our

since in income it entered period this It's rest quarter will call hedge generated billion. which provided $X which had of that extended is which reduction the and points. was unwind the of remaining it that the interest we lower that and approximately first income will basis be net linked while we to on expect The reduce interest they important through in approximately unwind of during the low on the cost life contracts, commercial incremental should year-over-year the approximately rates approximately of are We rates, the quarter year, throughout trends, the completed average. $X the X of quarter. into, unwinding three original swaps, that We quarter note over against C&I the amortized years we billion, swaps at trends not remain swaps, highlighted last the started a our level by equivalent loan receive-fixed approximately same to tax recorded yield impact to

yield income X increased management generally interest and for will interest these standpoint, reduce an basis shift we basis environments. While sensitivity curve of points interest as is middle to From are XXX higher well-balanced the provided be XX to rates previously in the and XXXX, in better interest a increase. of it elimination rate steeper our both and income in of periods risk swaps expected our above future asset slightly perform to has in interest rate will fairly guidance parallel point the improve we

earnings given the of the funding have We and larger on assets that deposit of scale the liabilities repricing betas dependent exposure source. our both rate much for are front-end and curve particularly at simulations

While with assets This sensitivity at of declined overall the significantly both reflects from portfolios. million less amortization $XX occurs asset reinvestment to is rates we the and asset profile. quarter. have in sensitivity long and premium debt sensitivity income Noninterest end our and loan exposure the net meaningful long-term liabilities of repricing curve, our the part fourth long-term our securities a that

in was were $XXX declined quarter. by origination and seasonality. the describing servicing While costs, rest million payoffs. fourth lower Residential deposit different I net impact the mortgage seasonal revenue the largely the of million. increased to minimal, the service with fees declines fees lower was these including unreimbursed in reduced with initiatives, declined fourth from originations quarter volumes driven spend Starting dollar the $XXX decline Overdraft $XX the customer-friendly first of The banking charges, Servicing higher Card standard time million by quarter. $XX million the decline down MSR million, from full new from by from Mortgage recognition of driven drivers. $XX some quarter. the the Rewind. income The $XX want billion line fourth driven valuation gains, quarter results revenue by with impact was fourth decline

and quarter two-thirds margins one-third purchase quarter in cost. increase the seasonality of in the down basis competition quarter, Approximately corresponding margin lower The points, the the was also driven fourth driven in decline higher first significantly which but from the of the percentage XX points to the originations margin expect first was reflecting by second lower production was basis market by market. XXX remaining is We a quarter. originations in in

million continue was decline due current our expect second November. decline production we of to Given fees Services to Insurance into Wells in market the sale in quarter. insurance to trends, margin The pricing Fargo $XXX would the

Finally, million. other income was up $XX

the the sale Pick-a-Pay Wells of included Wells The of total on $XXX $XXX first PCI and an Shareowner Services million a of quarter fourth from Fargo of loan Services. Fargo gains sale included Insurance million portfolios the and quarter gain

will on billion expense The explain largely detail. Page late quarter. $XXX year. declined salary reflecting with effective quarter, higher expenses the $X.X drivers million seasonally and line lower million lower to expenses decline primarily from higher more driven I'll personnel the The to billion the quarter the reflected seasonally in Banking increase in from incentive second became in compensation expenses quarter Wholesale expenses in of but Revenue commissions Turning On fourth fourth is increase personnel of million losses. $XXX the grow by in in from seasonal operating XX expenses, expected $XXX related lending. declined XX, and $X.X benefits increases last expense Page which home first the compensation, and

Third-party million business to Compensation due Wells in benefits and spend Wholesale Insurance were partially $XXX expense project-related and to expenses. higher is running from year Fargo the show quarter expenses. Banking. from billion employee lower fourth benefits non-discretionary higher the reflected primarily $XXX million, in in XX expense, of On salary operating sale decline and Page by [indiscernible] year down the lower increase in $XXX typically [indiscernible] $X.X legal lower we of reductions the drivers offset increases million, services increased The Services category losses. the which primarily

outsized remediation and of has to The accruals penalties. changed total typical we range, million Our in lower litigation XX not from in and of Banking it increase an last also operating operating X% excludes litigation since On expense accruals. provided were losses increase XXXX in expenses quarter. billion losses also $XX.X FTE down total year higher highlight from we Page the expected a and $XXX and and which increase $XXX a billion driven Community The approximately million was reflected FTE by any consumer in range lending. $XX.X full-year includes ago

May. We Investor dollar said of achieve will on earnings XXXX expenses a efficiency by the to in for provide end expected at XXXX. that ratio a our with XX we range quarterly quarter Day Last our a we handle call,

expectation actions comply the the balance Consent the from the to Order's to sheet efficiency decline cap our However, prior throughout needed will of year. Order. ratio likely that in with this The revenue was Consent above issuance expected asset remaining XX% in result

However, $X reductions we are on track our still XXXX. billion end of of achieve the expense by to targeted

As a reminder, this of this $XXX expect million does include to not should include the at completion XXXX. which of also we core year. will of end the completion the the amount FDIC in end deposit by which happen It intangible amortization of expense special doesn't the this year, assessment,

Finally, have include provided savings business updated quarter, the a [indiscernible]. to first of last to due We in page highlight expense include the which similar we quarter. divestitures, on Fargo Page sale we Shareowner which it doesn't Services Wells

in up in modest consumer the purchase act now debit the decline card earned from quarter. in first of consecutive primary majority for XX, earnings. years rate results included segments, On level a credit The consumer we've our had provided Page our checking two the tax checking fourth Page primary billion $X.X on customers year linked quarter the ago. metrics. lowest Banking for strong X% Community benefit to we the quarter, Page XX the XX On we in quarters. Banking The was and customer was both in from growth was reason attrition which in volume, year-over-year Turning primary the starting growth Community highlight Community annual Banking five at and in

their most recent overall most satisfaction of overall the As survey improve. and to visit August levels Tim survey survey highlighted, customer visit with – recent since reached loyalty with highest continue XXXX satisfaction scores scores

continue have exceptional customer our we Our know leads made exceptional that on members positive remains a focusing We team and service to reinforce priority. great to branches. within customer outcome, service providing that by progress service so

year-over-year in the to both and rate $X.X drove to $XXX the Wholesale and earned growth first Management XX, Page taxes and first linked-quarter [net Wholesale Turning million net quarter. tax increases in Banking, [ph]. Wealth Banking drove in billion quarter, income. the income] similar lower in Lower the Investment earned

credit Page performance XX, loans. in first our strong Turning average remained of rate basis quarter points XX and our to was loss the

of including For our Nonperforming and consecutive than quarter, were a in X% of the for loans our eight second have loan all less portfolio. consecutive quarters lien declined consecutive portfolios residential third and assets commercial net and real position, quarter. for consumer were estate total recovery junior the

As I reserve related earlier, improvement $XXX significant million we approximately by with of quarter XXXX outlook for the our driven had in first losses. highlighted million $XXX a hurricane in release

real our you third last reflected $XXX loan As of based the potential initial may in an estate recall, balances. The portfolio. losses for hurricane by in lower increased reserve million release quarter residential this coverage and of year review on we related quarter also continued improvement

and unrealized modestly OCI lower phased-in our points above target well XX, assets flat fully Tier XX%. losses points in was Capital fourth from of X approximately ratio rates higher basis to were shareholders. Common earnings XX%, quarter. of estimated Page return capital remained by at Turning offset approximately XX more Equity of XX interest our from Risk-weighted basis than still common to generation than higher

in Given we on through are above first billion our the more ago. focused remain repurchases year target, to a a XX% well $X up share net dividends returned quarter, internal common record from stock we returning and shareholders capital and

outstanding by plans. expense capital, remain our the end on In preliminary of higher, track target benefit shares X% quality, million in Period-end results As for a or to in the from liquidity our of summary, annual $X a first reminder, billion issuance year common and and quarter reflect declined ago. continued we share typically reflecting achieve asset XXX by strong shares the to our issuances is quarter first XXXX. saves in

look to to continue Fargo forward take your we'll outlook and more we are next have we sharing Day now throughout financial making regarding the month. our near-term And transformational changes While questions. challenges, we some information Wells at Investor

Ken question the Our first line Jefferies. come with from will of Instructions] ahead. go Usdin [Operator Please

from more here the but bit increase you of little rate can a do that, come the will just so there to this you grow the net point? is cap interest about impact, talk are can it's than improving, to benefits swap a volume understand moving help here, lot guys there you you parts from ask expectation time the then an drive at roll-off you and asset the will over to be it income, NII specifically, supposed and to with wanted NII and what like for outlook us have more I mentioned sensitivity

roll-off currently negative will big where swap higher moves were rate. that fixed drivers. the in The previously stepping is lower because is a floating be to we we you The rate capped through XXXX receiving that up I'd fixed. the rate are floating on from a expectation up what say probably mentioned down net

we of that figure think a to term in of is negative beta the the part this stable through is So We, that, types the – big rates that's obviously a business actually a than is a and a be will pricing, benefit early I benefit. those happens in expectation, there will XXXX been biggest while normalization deposits, short the to be probably catch-up, we that small among which deposits. previous extent will for the fair respect what XXXX be driver. industry, growth more expectations deposits. loans to think adjustment of meaningful With And deposit people what have and retail a probably and that of until the related outperforming out driver particularly with go

yielding and end what's mortgage the is as quality say those big an So, securities assets a a of coming At that's books prepayments coming our of are an purpose are is opportunity more be then reinvesting the rates well. think what's of range, I the drivers. to been would that well up, a curve, in longer the don't up higher end run I'd with through we've amortization side they in that One move portfolio, continually we earn from I important won't remain the really call appreciably on make is then that of there's as down credit spread as it on lot happening that if probably a asset short there lower much driver. comes increase there's that X.XX If point and sub appreciated overall the component. long some in

happening that same with So the highest rate mentioned that had that I improving. quality is coupon our that's at portfolio profile even has XXXX, since time highest loan the credit the though the it's

we're not quite apples assets when apples it's to So, year's one thinking the next. about versus

platform. John Ken, The out I impacting with that folks across to asset customers mean I our our grow off really loans. our a the isn't are there couple themes mentioned. ability would of just entire every day facing reinforce cap

are least the corporate have for to generally that relationships XXXX, deposits, and we you and in financial is the as don't related like. deposit to at of I the have so, in loan an seeing deposits see asset first primarily what to growth. institutions higher the about, going talked impact cap Where asset the on on quarter, from is an you're think higher Those tend And group, from some we betas. we've cap impact the be have cost

my And have taken said, get of you that here? actions quickly the we that only go that be John, then it just from good just run impact. along? the kind point, already bleed-in just stuff rate going it how of a to cap a would Does or you traject Like that as is to a follow-up on bit from little you got related asset Tim, to point. be Yes, would

by It customer the depends Tim create some deposits, organic of growth these they in the [ph] would on underlying taking because headroom as more rate the deposits and grow, of faster up loans we described. [fake]

modelling in but XXX we in and it number to the quarter and was first the just guess it, the year because in, right of XXX so more is realization. of seasonal still of half were And the would so, [indiscernible] the think of bleed sheet, it negligible the if I I it's roll-down of second the I balance size

guys. Thanks Okay, understood.

Please John Your next ahead. line comes from question the of with McDonald Bernstein. go

you with Just too but refine an are in terms can't CFPB might have there, and the here? pending to include for wanted to are much about saying able put provisioning do it you that [indiscernible] say settlement any to from I what did and eventual OCC, something you can't you results know in you – XQ of the legal matter, can and the

can said all what a John, it's release we we our I given what and of fair really status is the and in really discussions, my then remarks. earnings the in question, say prepared said

I that's we So, go today. to as far as the appreciate able again question but be would

Okay.

employee challenges has related just customer the challenges how specifically reaction for and somewhat dealing are things another customers in headlines management the negative here, in terms seeing to been have? your discuss headlines all So you, a attrition, going members the and Company. of lot how We Tim, a are lot of you commercial with hear kind of and the outside of months, how with in you wealth recent businesses? and that you What team the could

John, when as most rebuilding calls, foremost we've have first and people. it's in we asset question, I about you think good is and talked about it's been talked trust, on really – our about a and important these our this and Company truly

have sure of more so for now members, we day for shareholders, our and compensated, to our think an I Fargo every ability folks between which is customers all Wells the we And what of are important made fundamental do we doing in our team making are be shareholders. what how them, changes connection that have

plans changes we've made turnover. have leadership in folks or business – continued and result in are attrition and We our made in improvement incentive the changes a been how practices, has work,

is but folks anecdotal about in it than go be to to about XXXX. and could I heard from from because is are bit, member better I our recruiting about attract the in is Not Company. of when talking year-over-year at FA leaving because year-over-year. we just folks our you experienced particular I've we is are that FA down they to the quality happening. year-over-year just the little turnover positions mentioned, stories in mass. up Wells in the entry-level XX% quarter mentioned, same high some only a other our it's particular population competitors, Fargo you was up productivity in X% team really businesses look able the company Advisors, that's about In across it our leadership leaving hear I that at existing fourth just the senior don't fact XX% what as businesses, all positions that As and not of FA of know but down in have about

impacting So in it's again, to I hear the time it ability our same not anecdotal see the comments we our serve just the – our serve don't numbers. business customers and to but all

would is your types either it, say we and is of themselves question activity members around of publicly groups. customer customer hear customers about it, where or around team part other our it see I about The talk from from exposed most

through business, they of same types against going there's competed bit more to many the the competition to about. talk when us, are now hardest analogous others other and and cycles, reputational a with and we control more were We do firms harder. So working to perhaps have their

things find regulator, one Okay. the a more track you Fed's to are you any along doing, what side, whether of wait regulatory you of opportunity Order, to the can aligned? want there have are till with is you kind to satisfy yours be follow-up the get are end to the work out And you kind way their you they are be on the expectations doing doing whether are and the sense the Consent on with do or to interactive

engagement have would of John, we it's say a that all model our very active a good question. with regulators. I

I think that's very important.

the referring you're Fed, in with two we if the our specifically so, Order plans. to Consent And handed

to we operational us we lot is we because the discussion to want It's interactive and at do we about ask they both having are have would the same compliance be Company. And of risk good. really [indiscernible] We those do. improve improve plans, goals. good to want a As which to

you a we and come who desk is is Sarah a engagement been Fed, is here and with had not situation a New our joined work of supervision somebody it's at on doing then she our with charge regulators your us wait And in Dahlgren, the for for results. hand and So bringing job. the patiently example to another high-quality new quarter this terrific where back York leaders. of at responsible

Okay, thank you.

Najarian with Please the come America. ahead. of Erika Our from line Bank of will next question go

Just for being that not income wanted interest so net grow mentioned does about the up to ratio about, think year-end rest pushed I mean of by you outlook, question that follow net XXXX, interest the on XX% income on efficiency Ken's your to the John, what as year? XXXX will

$XXX [indiscernible] When interest to would have $XXX asked to And net that comply to we we could the to of question been would revenue cap. driver. actions XX do see that number, million number, but expect on we be handle or million with depends not a a the we income $XXX previously that's that to asset That interest the easy was million absent it's that responded It we $XXX that I income, it XXXX, worth take attribute it's had million, a mentioned. the and last the to, in before drivers that would math.

to things curve, based the of could all to happen a a impact where going moves, of one income between year are with, million maker versus et So, said loan that on above a have Fed Ken, as have forecast of estimate they million the a at on interest ratio growth, variety to efficiency XX I shape $XXX we $XXX the in pricing, But an growth, been the net with difference cetera, deposit handle that that's that. operating end deposit was an calculated of is.

outstanding the Okay. of about My capital a the get to at in I question from are and you – your dividends? to your the all near-term overhang or does signs, plans you is, shareholders, how terms in is, follow more of your question commitment I up that lot of clear terms impact shareholders loud heard thinking with and buyback return

years, to few going. excess that grow to we're over amount an have excess reduce that's plan Fargo next I the our to capital months, run good. over is our And and I'm we same two and three and reiterated hearing I last Erika, which things John plans, on the that a we this are, occasions is it of is doesn't, and mean, you're where of number have glad Wells no. No, the that and

had results over of experiencing operating recently capital we been for that plan and provided year. very the in experiencing, while a previously, what base even been it's is losses Yes, than of magnitude different the we the industry because case have

while be not rather not outsized. So, would we it, experiencing it's

as And whether clearly this your process your basis the Consent qualitative you or us on your really and Order non-objection a really all market process? qualitative much and if been it give the more wondering helpful. as there fears here about I'm and insight on conversations but will or is the comes be the shareholders, data? objection just and into qualitative debate also is, up Any process or Wells as as grading to is impact qualitative this, grading Fargo's some on can a So broad not bit a process clearly more can follow has on your with insight you little would

on The a how can better. qualitative process little they is feedback been. Everybody far-reaching. gets It always has year of every bit be

every following and better and the to year different strive year be different. We year, are in no we is no this

review, means it's plan consideration, harder year are that's we that we which this going and work on grading, that horizontal the inputs submitted have is and and we process, to capital think that every on where or basis that and this to plan based that's us sound implicit, into And compared measure a comparison, we the been expect be question, that one a sure there to So, very subject is a that always compared what a other is have the make very of makes given as to on things are. we year. sound much process, explicit

ISI. question next with Please of Your Pancari go John from Evercore the line ahead. comes

just side. couple of a to things expense the ask on want I

expect decline XXXX efficiency could see you a see you XXXX? XXXX? XXXX, a decline ratio XXXX operating you versus full-year you For the the on that the in are also could side, overall then do that still expenses over versus in in confident ratio And efficiency

Yes.

Double yes. this for we'll assume to you're or Investor Day, like range hard what dollar And at that that's provide we did John, going a number year a but again, hear.

more any great Do have you that? question. a like That's

these provided and it I'm some getting it to XX% kind the that get towards regulatory No, think the XX% issues is to was at how on coming of new [indiscernible]. front you I takes had up? that issues, you previously you before again, barring do long what guess But of midpoint range

deliver explicit of been To get in that's more income But are in separately, dollars the midpoint complicated. for of around that next of happen. interest things year range as that set which to it. about it interest all income doing outcomes front, income, we'll to businesses happening various that the I years. for mean, Unambiguously, and income, what's noninterest think of on our expense is And we'll a bit target on doing of next of we're more distribution direction drivers the talked then about what's Day. expense couple out with in and our at the reflect little talk Investor terms to a about talk net happening just that drivers, about then What Day drivers based we is heading. total there with all we of have in is revenue, are which what explicit then what's I of this we're we'll potential year, be place for a and of sort in Investor about which the about to cause happening we noninterest rates about all and we'll going

we possibilities we historically transparent as Day, and available few a all Investor cetera, try some as through that et given automation, our at at ago, goal. that that's where operated back exist this notion have today to we'll point years be overall, getting helpful but for or of the and can that weren't as So,

And through a getting that's re-emphasize made, John just point let that me range. just and that

and the then achieve to you not savings $X is rate in here will goal that see run XXXX stop. Our in billion

years. know of to – efficiency over to is I range can I continuing that that also that the [efficient] be think, improve to continuing most [ph] company investments Wells through the few goal have next get don't the we that I means Fargo but think be and Our the Company

it. Got

from Fed, additional it be I nice Tim. capital ballpark this $XX billion like regarding a And billion it thanks could you. which the the TLAC proposal $XX for side, looks that to Okay, in ultimately creates off, debt then guess roll can positive on

us give on look just you and that? could that how your at you thoughts So,

where know happened requirement, RWA roll we up today would that and meet to TLAC stack minimum will $XX optimize based to debt sign what's minimum mean requirement, our stress means step into even on at just off. a balance the going But we continue buffer of where as proposed focused week change for process capital sheet probably based side relates got I on I least our we were that could the with positive don't have for to our are the we on RWA. to I more are it and rulemakings. that. big I the didn't right and excess what We this billion-plus feedback that just

Thank right. Okay, you. all

Your question from Deutsche Matt of Bank. comes go next with Please line O'Connor the ahead.

have [indiscernible]? of through of you in portfolios Where the and auto there. the derisking done? and that But of kind stand for you are growing businesses process the done aggregate, pruning of that reviewing year largely do loan book guys next some you you loan just You the in about are talked terms business on

Matt, good question.

because auto portfolio or have it's that don't and is The probably start in going that the derisking to I we think is think the again. loan we of not there business any that portfolio really growing more terms transformation continues is we to portfolio, going do. other there that just just In need loan will decline business significant on on, derisking

seeing. of First what part are next based year reasonable we upon seems

those this book, wouldn't of that so it we the In fact to the as Reliable slight continue I describe saw a moved quarter, just reclassification it did improvement you sale of decline. is in riskier and that kind wouldn't the we similarly, a mortgage describe will of And portfolio, would because of it's But think the well the the I home as the legacy in normal pre-XXXX as portfolio, see the rest we saw originations. portfolio, an sale, But sale of Pick-a-Pay which on. a derisking runoff [indiscernible] across book, in a equity more it of other the a dearth and market amortization. for of the that but of type I than bid business. parts the That's performing there I off quite legacy assets attractive we describe types was really running

chime over all Company the could the next are or a but Shareowner relates to place be years continuing want to need that it to businesses, it as as by going year. they than over means opposed businesses As more continuing and of more look to may too, performing July as end move other go worth they to of it June the sure as that make are other think few And John be we insurance to got like we to complete forward. well shareholders, the that time that we look our if in businesses the to or other that worth can. or and we've to take that's the Service ahead I others process will through relates businesses, to are entire at we'll But one

and separately, the of And is and under to helpful. your concern, some fundamental. of some going price it's Consent just continues Okay, obviously is regulatory be then stock it be Order pressure the it to

influence, at just stuff of attention, same has time the of a and on like to more control attention, little is Just to more you and trying they control cost terms if like can do the there's little on from more a bit of it's again, And or your the it there hard plus and realize lot I'm kind our regulatory bit of on little sure I buybacks? you a whether bit plus saves that some like side, urgency a are movements, perspective, increase can't bit faster? in little side, your it get has more market sooner but in the wondering the a an revenue I'm

measure we focus on our A that I and One shareholders to to fair the question. focused that. current about focus stock return on price one our is way is think our term. are long clearly is mean of

of point clearly out, day on price. have the to do. the it's As work you movement to day But we not

at don't to about have don't we I XX sense clear to for increase the We work going half the we continue the Company. years. probably Folks of believe I very and do. now that have been are fact about to next sprinting have know last and the year sprint we urgency can and for been a

lot faster. we holders, the So, which the from stake urgency, But I whole could are and know don't why our if certainly appreciate Matt, Company. not all of we sense our we of move is a shareholders transforming only but

out the that, are doing equity to shareholders. we powder returns I'd like we to return type of to the point to that we the already deliver that on have. focused By capital continuing created on

We are stock that doing buybacks. through

XXs a context. now are in We low doing that

XX% continue So, close deliver up range, to if with eventually the market going to ROTCEs north that. is to ROEs catch in we the XX%, of

maybe I could just have saves. seems as guidance a some these year, agree if deal this point. all bleeding would would expense in the could not I just year into transition it could in, still year, on for Yes, I you're provide cost, all I would next think even the next And more wonder, be like And be year issues. to into cost you going of I last that lumpiness suggest squeeze you as with there

well. but I be out, as a helpful when like with giving on basis into might the clean So, is capital might the far XXXX bleed look down what a visibility realize you us little cost it

Matt, indication XXXX, of you'd do gave want you you think we an if XXXX?

to I a it could this related year. earnings the going drag seems Consent but is think No, be legacy be into costs the Order to year, elevated next like

further is, won't we'll a clean these as full-year wondering guess much my how XXX% and are issues abate cost be all next So, be basis year will resolved. on

to but… [indiscernible] for not trying five So, lookout years, I'm be

you No, question. you Listen, see hard see pace and time. a better of we [indiscernible] to discipline. the dollars the our the we Matt, to from I investments your want with that was better year of to what year. are absolutely I efficiency making because What is expense see appreciate shareholders giving this harder saving that want us, this just from are It's us,

conclude next more be will apparent us advice led others to in I to be more and that and that was it XXXX more and point, your to I be listen you. XXXX we about think it will year needed and it understand candidly, apparent on. this even specific [indiscernible]. among so But your We

Okay. for Thank the you time.

Your Sparks. next Vining question will with come Mosby go of line ahead. Please from the Marty

morning. good a did on you. this you job was Marty, I CNBC watching

appear, wanted getting you We the to so actual time it you've start got to [Phil] Thanks, appreciate it. to a look as hard But know had margin, [ph] margin had at improving. interest do net twice.

time in yields even and [indiscernible] than This plus enough up see we're quarter and that to loss, count, start we actually first here? asset offset a saw faster margin from rates bit see deposit a also no and expansion to a to little pop [indiscernible] those this move nice little they bit pace impact but is going the maybe

hope else Surely happening. It is depends what so.

hedge this through be entirely to that you income So is adoption until the through That the noninterest go residual have quarter accounting standard. seen item the ineffectiveness margin. new time first of used the

result So, long of curve, which mostly margin the to rates that the end rise reflecting to the that quarter, was of accounting of outcome. that in not is big move up a one the during a at that the another increase things short of and gave benefit contributed the

the rate as a or as move what or other say, you certainly assets every cost LIBOR count up then flatter deposit we and for happens long to that are driver running environment, big noise possibility. And end don't so market in funds up pricing rates So, Fed have But if they through. a it's quarter, again up. is you our

if as be lower or done up. at that other have that. company have least then other done true, We to you as a a should items, cost an maintaining moved at industry continues good And deposits benchmarks while job those those see

of What impact ineffectiveness? was that the basis point

I'll in we'll and you a terms It math for the note $XX points. send of do million. was basis you

having doing kind see That's just Wells you Wells I you maybe as the and like look is perfect. kind getting you so are be this fine, eventually going are the Fargo and wanted looking all of from it? that some And I that. to then, That's core actually there. would kind what overriding change? going can ask more relationships? I it Fargo, these out How minimizing can to to riskier at you now you to bring transformations once do it of I of you, out businesses what can new calculate be Tim, are much what's of to of is now you into the we want moving mean, change [indiscernible] of kind of transformation, that the come

Marty, I our center would really yourself goals. on six

like. to really achieve What on of industry been they have the we in financial But goals all a each in we as to six I But want, customers who I looks is looks would in those going one work function goals. to where like focus. competition have be leader the the focus of them. very Company We and are, goals of six really clear that the those be that's what do those got would what and we services our want

Please Betsy with will ahead. Morgan question line go next Graseck come from the of Your Stanley.

that of earlier a losses. know driven improvement I a by of release. related reserve was for that just I in lot on couple questions hurricane the the had [indiscernible] you mentioned the

wanted see up Just or could had release a up. cleans follow still I that then hurricane more to on if And from that reserve loan is side? the there issue performance based that happen

had XX live of the impacted payment not on side, right so after becoming become holidays and on to our and Louisiana quarter, we the hurricane everyone's their hurricanes So, for and loans day could the Texas hit, and together third consumer or at the end making benefit, then payment a customers just Rico in Puerto on those their [indiscernible]. they focus getting about geographies worrying granted

to measure on delinquency loss, understanding auto ton loss, holiday. that we So, we a got negligible and this their time schedule, loss et delinquent, gave why a rise plans, and now that's we and their result our claims, been came understanding went there cetera, as reserve. have of current right portion home of of an customers insurance hurricanes, and take because or That payment had is the now was and back of the down default the real so that performance to versus a because couldn't uncertainty real has which the

will release to I us think a hurricanes. or build the with that time that's anything you that do has last probably reserve hear say

related size other the book, other much the of by big couple years, book, been its it be in in which has I the improvement in real think pretty kind It's allowance. and has cleared loan improvement than at loan it's of think of much margin of more quality categories. quality loan driven sort And of what most really of run estate appropriate loan now the been portfolios. the driver might I course last the related and of course, energy secured the It's up. the happening the consistent, over of amount

net then of And that Right. your a mentioned hear categories did position? correctly are in say recovery all loan I you that you –

secured All of our loan categories. estate real

consumer estate, consumer including real recovery real in lien all that are now. So, right commercial second estate, estate real

So release forward? drive reserve does going that more

margin. looks I – haven't more probably the driver. time. loan going of its long a losses real I price mean at as Yes, that's mean consumer the run appreciation to path we in it it in course estate a had to because

don't that's a driver I think driver. it big the but has been So

I with over includes in long but next beginning a implementation now, [indiscernible] it's CCAR I outlook know of Got it's couple but running this on from different likely I parallel it. I the then to folks [indiscernible], starting is just [indiscernible]. that year year with, know in way And traject but there's know next years, are how and year reserve away and know a lastly, XXXX, CCAR,

us could how that? you're dealing you your with as thinking just about to if So give sense

and is that with XXXX. we there to right to are of I as portfolio understand have to question are first a about There how allowance the they modelling means hoping lot dialog will be be an cyclicality than think pro like boxcar our required everybody, what next still of productive going So, there impact, CCAR for necessary refinement CCAR in we its are means what into roll will community stress today. is [indiscernible] things reasonable as and year's and to before we like business CCAR, and regulatory to don't now, somewhat own the a as other is change with it adjustment We'll understood now that's to terms gigantic is it's it foremost as really, be it's in usual, about quarters more And going something gap, and to talk and the for really business the understood. of and will it's version becoming passage the loan better for begin and we a a there be understand not that looks usual. change. refined, it do. focused make But on bigger right it what stress thinking of the in

not impacting your it's And on Right. decisioning today reserve?

importantly, yet. have loan No, availability, of approach that influence it change we big type it about those structure, driven reserving the that And are feel begun we of of can discussions to in are it terms credit and reserving. our price, thoughts how loans, about a not or loan because types to having, we either about hasn't pricing longer-term availability certain specifically but our in think

Okay, all right. Thank you.

Research. comes of NAB Please from Bush Nancy line next Your question go ahead. with the

you you to to John, yield long and sort about at your cetera, do us this now, can panic it? weird be persists, rate because building sensitivity a the address we rate curve just of mean you you to whole that now environment the to in rates, do yield about just all that how you, for interest said whole in be seem do with up I'm what curve, question around et environment seems it look trying flat I if right the right fit what

versus we in something today be are X%, that in the they question move activity we in rates the where the make even the portfolio on are we come long do very a if longer curve short coming about is, move if it better, earnings stays money if and to But and more sensitive gets to we long improving profile in We that is of terms up remain if So, end make end curve the markets as end of end we was move some here and and like and up would mortgage miss about so higher it. down. long result investment specifically, would businesses But short and the as we'll the it affordability asset about up make better because will comes originations rates that the and more it a flatter origin keeps actually doesn't of also. And in one where nation put at more money there remains some anchored, front is at up, nuance our reinvestment if our still the front from I result shift of have more guess a is parallel today. then that. do from

understanding money little Are issue. you apparently everybody the anything? has us curve building slight around sending that? it you related mean give at bit seemed thinking panic there and more inversion I the a been end or that's market of into short Can just a

Sure.

got the more the have because a with in others issuing market they end, others. money that government result they the big a short it CP more both are a at lot as you've have at they fewer a as convert is happens of of takeouts front retail there even and end on depending impact on for of issuance So There and for reform. and lot going into are to by as do related to a issuer got therein financing equivalents going because cash to tax what tax reform, but big the are that's issuers result

power. investors the have so, bit curve at little that in And a point more

driver from end. technical, short think you like of up. issuers the of yields disconnect LIBOR-OIS It's the piece that supply are I driven that feels a Incidentally, So, referring the it's in to. are

yield are not about of right as the you concerned environment anything? necessarily the But Okay. curve indicative and don't now see flat

even we be of that end the of result No, up have could today. problems can speculative, I longer think I where more as it didn't there the allow people if dynamics mean would that's than curve but economic and of have other probably my the that's a But trade-related some adjusted imagine that to that, it's take. is political

All much. right, very you great. Thank

UBS. line from with comes of go question Please next Your Martinez ahead. Saul the

you million losses guidance First, of and million. on expense typical I wanted XX.X just That guess so I point to a includes $XXX operating XX.X. the your $XXX clarify had quarter rate, to this

here I'm from understanding guidance, effectively losses just So, to when basically your to operating around exclude any incremental guidance. I should make and the [indiscernible] I we sure that. want takes puts

right. That's

that run Our losses fraud for sort bank rate of ambient things robberies like operating quarter. million of and is and $XXX a

in that. we we so, have what giving guidance And accounted have that for basically

the related costs. pointed that result litigation you quarter have we a of first achieved As out, in as

will I it, suspect and continue of itself you ROTCEs question, take broader to and you we points a guess ROAs, [indiscernible] John, hear I will quarter sort XX% your have stock can but okay. it, you basis than maybe no you at XXX positive XX% Got to been negative, a noise peers, if mentioned this do of your net-net are this we more also longer about did Day, your but still lot when your more in the Investor compare group and is it in the metrics, at peer is, to still is should something feasible the top a get or and or all group something have really your number a Company? you primary peer that in be of guess the to and of of I the top is past it that goal do goal important is issues question that important risen your care that of how it is issues, performance need primary becomes of be

of all be absolutely especially Yes, in the that shareholder goals value structure range. performance that terms expect, in capital end we peers it's and one would at of the we of high we six the of among primary the G-SIB particular, have because

will of of think we we risk should So capital business that XX% and our can be our we ROE ratio, substantially as a the are above this and XX.XXX% carrying a with XXX profile. like is be what north us lower, appropriate XX.XX% higher as points ROTCE returns. clear expenses appreciably basis we with Also, [indiscernible] are drive quarter to company of of for

goals. to business, business rectified have end our range we high of of we scope given crystal-clear us So, think and profile and those in, of as the should the that's risk are the business, of in appropriate we the are scale the very return both things our the that those

a Okay, great. Thanks lot.

of go question with Gerard final Please come RBC. will ahead. line from the Our Cassidy

say and give can discovered some your with, us sales with of practices the know issues. I we in of discoveries you you confident you about color? may of that and guys are Wealth issues that Clearly you problems sort these look shouldn't are you is comfortable, of to be Management Tim, looked bring maybe to be now or corner, some guys different Are cranny to Subsequent in are discovery there have under other incremental the issues, [indiscernible]? harder is practice the if And sales nook businesses. some just you wrestling regulators lines any now recall, that more – to you every enough investigation. that that issues able

look we job for years one the ourselves of candidly think, been that nook in learnt a the I process. when certainly have every thorough that that few and cranny raise time. continuing We had better we that over that well doing on And us in victory are we mistake should and and the spot right to the Gerard, quite in Company the a declaring of last lessons are is prior that to are performing were now. we years, are again, make ahead, walking on terms so over and not we going bar to at of going we in not But continue

in reason think progress, mentioned when but to that lot XX a my challenges we as remarks, to take we that, terms with X today are have after progress issues months of making But that made the I we and said we that preliminary, in we I we got know are of some of it And right going happens. dealing including are transforming have the [indiscernible] in seriously. we amount our all Company. opening very described tremendous as those results we a now, having

very I terms so, the think we far in are And But quite there question journey, to ahead, along yet. specifically. walking in we answer declaring of and are your victory not

addressed was customer-friendly what's the consumer about going-on full a you. give related you thank just Rewind also product. income Can there? the bit on quarter X customers. some about something or the I Okay, fees? us credit, that they down about get about you commercial in talk more go you color talk And deposit apologize I rate for the the a including you impact, call on higher, changes, being second, else then interest-rate higher higher guys And talked On Was as Slide earnings in of rates there the the late. if the noninterest this, you Overdraft impact jumped quarter, your the where credit

customers Part that's deposit part services. your it's And as the second the retail of for them very large whole of most exactly deposits big Part as is range reason because is of them wrong. right, question anything, one. is, they less way checking, management of the and things for experience. pay whole the to customers of anything, first happens just their and of charging if really, and it is the low-cost as that pay as the question, is part it it is have what that's experience a treasury is part by what terms your In of go with great for pay a don't capabilities of monthly commercial our franchise that and if

little strides. And hits if don't so, direct we then they who capability and has direct deposit and given next but where we have on somebody Overdraft of with overdraft any charge it and deposit the we their remind before charged. appropriately been alerts balance that get they affairs handle the millions they tens overdraft. as to of can overdraft them, so to before have have night sending got we people don't is the on remember, us those you day their them not don't process to what made covers out Rewind, night, would it, they happened for great would Similarly, of an help

costs up millions a a of So, low-cost as with that. overdraft deposit fees. hundreds we us result, relationship lose We Wells we happy lose are base. and revenue with end their But result [indiscernible] a of as large of It Fargo, with dollars.

of are in we in inseparable as value it of I think deposits versus terms missing what overdraft the of fees.

helping probably we by them for We are when to grow for overdrafts, going that more [indiscernible] they not that's grow people are better us can as the relationships avoid and them and can, in if our those greatness the we then company by both long-term. maintain charging

to help really our about customers, improvements we And for give how their finances a us mentioned important in better is, better two we made point finances. by hear the from us our our revenues. that's that's listening has specifically we that themes are to manage in of terms investments them that that manage information an on run, long-term to fundamental them it customers. John deposit And one impact and of the just the consumer helping is have And and that short

and loyalty across the how seeing the long-term it On think the progress what I reinforces in and just are we is the And checking service deposits, about growth are that's sustainability progress and scores, again, are of a a accounts long we real of run, platform. the primary growth that customer Company. entire seeing in making better thinking we're we indication the and a

to today, to I and rest to team Have our Fargo. want hard as we want to was members of effort Wells to I I good busy for thank you and listen Again, your the thank the provide you So, to that a us, are continue are to that your I for very a thought day. all all mentioning continue of for were questions. going very and know your day. questions you work it good you advice all transform

you this And all Thank conference. concludes today's for participating.

disconnect. now may You