Wells Fargo & Company (WFC) 13 Jul 182018 Q2 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 Second Quarter Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to John Campbell, Director of Investor Relations. the begin may you conference. Sir,

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

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

to quarter second share. Good many the of for per morning you John. earned today. I all billion it's $X.XX want in morning busy a I diluted thank you. Thanks and for know joining us or $X.X common We

Wells so we include management tax well Fargo, other we're we These We've impacted build later want making a $X.XX that at and provide my members, is call. best goal details is in to not to manage that included transform committed the and changes Our more as meet, our to on per how expense for an our but income efforts stronger as income in share. our this that company goals. team the have on transformational net regulatory providing results risk update John only industry. progress items comments to expectations the to shareholders. results I customers, of on discrete tax the communities better, focus noteworthy our six on exceed risk going expense

of We strong XXXX quality our many of have a just track CCAR record and managing two and our risks, examples. are credit results

we'll how to as we However, our call we address compliance other in on the trust to improve exchange risk, such foreign those have and businesses. discuss risks, manage challenges, such operational later as and

Norton at pleased started already mentioned as Mandy Investor Chief Officer, Risk our we're positive Day, has that having new As she's I a impact. and

online to control aimed balance their Last better who than online in of we We're continuing our an zero a average zero banking come their year, make automatic to providing alerts visibility deepen customer they'll meet alerts specialists do month. our to changes time, accounts. view and log-on customer-specified payment the customers and to send to of introduced customers more business. and a our further which In innovation. our we for number we'll and customer we technology. have In create customer iPrint refer quarter, work also that XX% a the accomplish, growth. relationships These a in of also experience, through we customers customer introduced Tower, achieve to of quarter, risk on experience. Control of new the accounts rollout better we value leveraging customers it our biometric and This which June, retention management. our conversations pilot more have over to includes ways relationship I'm their manage needs. our to on confident to balance million our launched In we improving for in our at balance now We're focus tool, grew to and a customers, experience applications tellers we complex of XX which create second to our connections the launched While goal capabilities all retail application, branches. them conversations more and help commercial digital customers customer by June. continued value-added focused we mortgage changes data completed our In more serve are first second and to for leads helps easier making bankers We've believe quarter, improve the customers,

also too. newly opportunities rewards of credit Card, to we next the cards card business believe Wells industry. no-annual-fee significant convenient card can purchase one week. processing Propel are the apply now the Merchant in richest, applications for if and one standard has We've eligible business application small accept for payments And banking rolled the customers, customers out taking and excited small deposit for announced Services. We Merchant Our our simplified, at enhanced Fargo growth, start online card through business Services equipment and, approved, we immediately pricing

XXXX. the our named volunteer As part to contributed the announced sustainability, contribution billion Light of in XX Points companies recently one And promoting from most a of the U.S. in organization. businesses and to year sustainable of projects positive making of of a being Wells we the hours which to as we team Fargo commitment community-minded communities goal members each millions includes the environmental financing serve, by our $XXX to recently provide

We its also make many had lowest in outside of and over talent voluntary to from Wells strong voluntary reflected in place We've hiring in success member in team Wells a member better continued Fargo. attrition, attrition with also quarter be which we've five years. level These changes efforts in -- engagement, want at to work. to are second declines team made a Fargo leader

our customer at experience Chief us Resources. product Walmart, also Lisa Group. disruption, this In Galloreese, addition digital Risk Lisa as David has who the was recently of most And lead Head earlier and new to extensive Innovation joined Human our we hired Frazier in experience to innovation. Officer, week, new

$X.XX of CCAR an dividend included returning shareholder committed commitment to increase long-term in our shareholder board quarters. rate This in we're in value, of our to to than part higher capital which previous and capital goal XXXX delivering included As during Capital four billion third common the our repurchases four-quarter results, stock quarterly to more returns The share, approval, our quarter shareholders. the approximately was $XX.X demonstrated next common of recent gross up XX% in per subject to are stock our Plan XXXX our actions.

capital continues we're highlights changes to demonstrates earnings we of significantly We're also our result happen level reestablished been reductions a business ability shows forward, our expense campaign marketing the of The is and increase lower happening to effort, continued how has more launched Fargo. past position, are capital our advertising to assets. reaction to The financial and at quarter, strong efficiently, our the operating of history. to our Our years in our is to our we sound risk-weighted strength diversified and the recent by practices increase. model, risk through the second moving continued which which management largest campaign the of the awareness Wells also returns XXXX. the we has track and targeted in stable billion on a positive, issues, $X In achieve committed end built advertising and our and acknowledges campaign of

Fargo our highlight, our team for on transforming members now on of company and in we're better all into that path. I Wells detail. are focusing stakeholders, our financial am the John a our results ads right will As confident discuss more

and everyone. Tim, good morning, you, Thank

this quarter, noteworthy mentioned, items we of our a of X Slide which number had Tim As on highlighted we've supplement.

net in million Wayfair. state income billion Our tax income and Dakota $XXX versus by related earnings recent of ruling Court expense the $X.X Supreme mostly expense. U.S. South was This discrete included driven taxes to

presence, ruling tax state collect can well. as it when lacks or seller out-of-state an whether seller use addressed in-state the taxes a has While income an an the require implication taxes even sales to physical

to from expense, effective second tax impact XX.X% of we Following the expect of no even income in on 'XX if items. the in any our to have currently for be our future entities may approximately economic while excluding taxable And rate in presence the rate quarter the an of be other tax increased income the they the presence to discrete physical remainder ruling, state, this considered based effective some our be XX%, state. affiliated

sale of Rock strong release impairment other-than-temporary and $XXX previously lower million results announced XX% overall the Management Wells Group; on in loans; $XXX million included matters, the in also which for operating detail highlight billion on more Our million The ownership a Fargo's reflecting disclosed sale I'll PCI performance of reserve of balances. million in stake We and expense Asset $XXX the losses had of related Pick-a-Pay of credit Creek portfolio $X.X mortgage $XXX to gain page. non-litigation primarily next

process million in Fargo's been to second the a been on a and those including matters. As costs. were after customer the FX referenced updating historical made in practices. we're to We've substantially completing and related revising the those I'll in new recent to the X, disclosed on quarter, in $XXX an the that related million 'XX. party, XX-Q Page have assistance been remediate XX-Q second remediation since of Wells foreign currently by is have third new we The customer an implementing remediation of accrued quarter a to previously losses for In in may inconsistent procedures, exchange all filings. accrued with matters, ongoing received review pricing certain moment customers practices has And assessment and business under spend quarter and these you pricing. was second October rebate business highlighting our operating of policies, of leadership customers. which of commitments with driven the pricing $XX conducting

to pricing. past standards in custody at over we in the have respect those been efforts set to second where to examined customers Management, while historically customers, quarter and addition, second aside years. both being entered with during that instances contracts as that $XXX historic $XXX fee doesn't our overcharges With seven fees pricing, accrued seven-year overcharged recently applied with make of the to fiduciary quarter, customers. FX charged consistent implemented of certain refund may a million and in time and part determined resulting million calculations right we've to assets rates and in to rebate Investment been accounts customers and certain to to Wealth customers In trust, and any into there have things incorrect In accounts, we've the period conform our rebuild and undercharges

respect The ongoing third-party accounts review with of additional any determine not to accounts remediation, additional including to yet of reviewed. necessary customer is the extent

now received is in to related remediation mortgage to and These the complete. previously filing insurance-related During interest closed June, of settlement final our accrued approval for our practices, lawsuit We improper the rebuild mortgage second products, lock the accrued concerning sales interest on rate automobile for class-action also lending lock We actions past practices related amount amounts additional the to rate this July for quarter, settlement. substantially settlement believe and the remediation business, including on for had claims extensions. important efforts In we we trust. are steps in period X.

X. to Turning Page

As our Wells management compliance Tim we're the improving risk and operational the a focused of including risk across priority, top Reserve, is CFPB consent requirements And highlighted, OCC Fargo and orders. on program. Federal satisfying management

and Wealth and Page on deposits, commercial asset the in to and balance lower liquid customers our describe higher-rate on businesses. more income alternative, deposit ability grow statement as in sheet has core trends call. decline driven The drivers second detail related consent well I'll by Management impacted be the Reserve's in throughout the later highlighting cap However, to Federal lending our X more the cash not Investment the primary investments. seasonality the allocating call. as the taking I'll order quarter reflected deposit to

not to competitive Banking first Consumer commercial quarter, I'll So real Average Wholesale loan as and increasing has on acquired and Page billion was well with revolving starting sales the offset Page specific our year and note, growth continued financing markets paydowns as $X.X Banking Real loan order, ongoing in was estate. originations $X.X Of existing primarily from The on million connection from been we more with loans continued turning was to estate declined a first unchanged to drivers driven took compared utilization loans from at first in declined any line loans. despite due Commercial declined commercial loans growth Commercial the the approximately related C&I $XXX continued but ago consent lower and actions in X. decline quarter. Estate, quarter. loans loans consumer by business. opportunistic highlight and the declines than discipline liquid on X. billion credit in billion substantially XX%. Asset reflecting Middle on the $X.X The reductions real in Backed highly Finance, auto, Market by balances capital

loan billion of million First partially of $X.X loans $XXX was lower increased including the mortgage billion by loans, as of $X.X mortgage offset Pick-a-Pay origination high-quality, PCI nonconforming loans. sales growth

mortgage In issuance nonconforming for lien have portfolio securities. addition, offset $XXX would loan originations. future of paydowns of been as decline RMBS as included this held otherwise anticipation than Junior continued of designated in were originations million new that in mortgage to more loans sale

the from However, a Balances million up year card a quarter, second from junior or ago. from the $X.X lien ago. first loans quarter. year in increased XX% mortgage originations grow billion X% increased Credit $XXX

in by accounts driven channels New channel higher from card second new quarter. were accounts of year originated acquisitions. digital ago, X% XX% digital new account the through -- grew a

asset higher lower divestitures. level for third average quarter, offset to business taken than balances deposits Other cap. launch were three start our from quarter expected channel were allocated past for included positioned declined portfolio of We new Card announced by expect and mid-XXXX. $XX sale million expect $X.X and bolstered loans quarter continued of digital down currently to stabilized we're more liquid lending loans Management highest and deposits billion quarter we revolving the but of previously credit originations grow, in to originations lines and customers originations to as Auto Community personal deposits, to Propel first from lower over grow million XXXX. by Investment of balances loans for first and result the Balances higher-rate a continued And billion were cash the declined held installment consumer transferred personal loans begin $XXX credit to to a declined since the Banking first runoff. to response branch from decline, of in deposits $XX.X Average actions week by and and the in focus grow, billion lines acquisition. deposits card year ago student by on including to X% Auto banking small to loans have due $XX.X reached continued billion investments. and driven to from Average as up the our the $X.X next their quarters. continue and Wealth more as commercial alternative, and

in outperform a And billion Deposit this experience deposits the $XX.X in at have with paid over But second points XX% deposits basis the tax or repricing which on and to On expected year initial and financial beta on historical cumulative year the rates, $XX.X Our the to provide in while deposit billion And on deposits, a was are our our quarter. typically point the deposits. billion average Wealth in by in payments. linked declined deposit basis Approximately increases the from which Investment continue reduction seasonal of was betas was not details impact consumer experience. includes second business from XX catch move. our meaningfully quarter, yet change the ultimately in Day, basis above deposits XX Banking rates Wholesale deposit Management cost the quarter the $XX.X banking from $X.X were was rate to up movements. the declined basis a small quarter highlighted first rate. increased period-end for we last our up first responded as to institution down expectations. customer quarter. Investor first driven cost ago. commercial Fed points XX, and six Page lags in There's XXX in deposits The basis a year of a and ago billion decline funds increase we point compared average

these as The March high customers quarter Blinde, allocating are from deposits, in Neal billion the Treasury Net alternative, deposits higher-rate temporary of interest of Treasurer, from business brokerage offset declines far the Wholesale income cash liquidity the of beta well the of the higher more ineffectiveness financial by business liquid day quarter, driven billion $X.X CDs by deposits deposits deposits first our approximately the as declined Consumer second to higher end $XXX our liquid and impact institution well reflected commercial cap. as Day, payments These decline highest-cost alternative, $X.X discussed the increase category. million the Investor to from As actions also increased as first in repricing and at escrow mortgage at negative Corporate by more highest our and investments. the one mix, were levels of banking of and less customers billion $XXX partially seasonality million $XX.X from well $X.X as to due Banking million $XX declined to investments. taken higher-rate including hedge asset small seasonality impact as driven allocating by $XXX and in cash in The largely commercial approximately million drivers response balance spreads; rates deposits quarter. included accounting; income, sheet additional quarter. from million from net variable balances. and in

and a a the expenses. of $XXX declined to $XXX benefit lower past of a by increased driven points mortgage from of in during accounting, declined hedge income $XXX the spread which we year, net the Our Noninterest -- reduction ineffectiveness million proportion also million lower-yielding businesses driven rate reduced NIM first less quarter. assets, revenue from negative and nine income the from by year and sold basis from impact ago, million X.XX%, a movements. interest reduction Noninterest rate

our a linked-quarter were charges. reduce fees significant the usage. is efforts over customer-friendly checking quarters an fee, impact insight X% of goal service as initiatives of monthly a into helped I've I in Treasury a initiatives standard reflected note including to which consumer quarter the help customers impact that's enhanced X.X is consumer having overdraft ago, the pay with trends, so pay our the service fees. so from from the debit more want for are in over launched provide through Overdraft we've minimize to were primary these largely to fees, they past that our deposit quarter. more the year had not in they highlighted help million XX% service our or have such related prior Rewind, they minimal to of avoid feature also in While year didn't customers amount customers card second do to charges service activities, direct provide charges We've Approximately which are charges deposit we industry-leading These customers consistent first customers quarter, of consumer XX% It's deposit deposit linked monthly important customers. also checking wholesale Management to and services to them. fees down

interest modestly if rate this million year As trend rates which over market were down interest to expect from noninterest-bearing wholesale rates have We fees deposits continue credit to ago. $XX the year, reduced customers, the earnings a past would rise. on risen these has for continue

to And Gains announced of quarter impairment As and revenue fees a quarter. as reduction from in the our I lower lower first expect down income we $XXX driven given the production to Treasury declined first sale revenue $XXX level The quarter, a the current production production million declined an Servicing $XX alternative million million $XXX Other prepayments. in basis the our increased Management from margin in quarter. and first the due by in from equity would competition result deposit third to gains so originations channels. unrealized Mortgage noninterest-bearing related points the of current fees the both ownership stake to income $X sales quarter. retail paying first the billion margin banking margin. is a XX declined earlier. interest. was million but declined the near pricing trends, reminder, RockCreek Residential from that mortgage $XXX our pricing on from remain to market to increased million correspondent accounts, apply higher highlighted declined

results Card million gain declines PCI gain of quarter. offsetting in compared the sales $XXX the second on Our first quarter Pick-a-Pay first card in included Commercial increased Partially fees commissions. a brokerage debit from Real sales million in $XX and credit increased purchase of the quarter fees these with other Estate a growth loans $XXX the million was on and and million higher from $XX volume. included fees. card higher Other

billion from largely on $XXX operating expense higher XX, quarter expenses Starting on first Page quarter, and Page from the decline and explain higher expense in from first driven the benefits by detail. personnel to $X.X I'll expenses. Turning had more million losses XX. which lower a personnel declined Expenses drivers first expense. seasonally seasonally our declined Compensation quarter,

Fargo full included expenses deferred expense. in severance from quarter increased $XX compensation impact a in home from quarter and million Revenue-related salary expenses compensation higher Second Securities incentive and increases, Wells primarily lending.

services The from litigation Third-party $XXX million services the expenses expense higher legal by nondiscretionary, by our discretionary campaign. advertising was driven losses Re-Established to driven lower running-the-business lower higher operating related on in launch running-the-business in decline accruals. and million expense. increase expense of $XXX increased The was contract

increases reductions primarily and Fargo offset from Services, severance, million of million, $XXX drivers by Insurance the typically year-over-year of XX, the Compensation expense increase contract Finally, higher we to Wells the Page in show to due the and the million expenses declined infrastructure partially Wholesale expense increased first impact $XXX renewals. in of Banking. drove elevated sale equipment benefits salary FTE quarter, On which $XX is expenses. which due

$XX.X $XX.X of higher operating of and billion were achieve related billion previously I expenses services offset for the from 'XX Community highlighted customer XXXX. lower third-party expected our remediation on track a by and range down billion disclosed expense. matters by reflected remain year also and our partially Banking to ago $X targeted Lending. earlier. in Consumer We These and increases to revenue-related the expense by in losses, that end of both X% from also of in $XXX were to The reductions increase primarily driven FTE expenses FTEs million lower was total Our

of includes As but litigation a of for reminder, our $XXX typical remediation penalties. million expected accruals and range any 'XX approximately outside excludes expenses losses, and operating

our partially to in by net the first offset higher we quarter, Teller XX% driven million this declined metrics. operating XX. Community provide Banking by on $XXX from income digital Page discrete second on year customer Community lower income expense the virtual quarter. On we reflecting Turning channels, from tax segments Page consolidate track Banking from XX increased ATM from to increased earnings the losses, migration XXX year ago. taxes secure XX, branches, transactions a branches ago, a sessions and consolidated we're X% while continued to approximately In year. the second quarter, the and

in digital, Additionally, new for Michigan XX% branches continue customers we by Indiana, in and And and second debit from benefit digital to also overall Primary purchase year a Page General-purpose credit new the checking checking purchase quarters. XX we strong in customers the XX, highlight reflected ago, plans have In card part acquired three of of year-over-year primary the of we volume volume. X%. driven checking was up grown consecutive On in consumer with X% in card Wisconsin. from credit announced up quarter, growth volume to debit card checking Ohio, Growth have was customers customers improvements purchase was and divest retention. channel. new customer initiatives. marketing ongoing growth

and declined customer a survey satisfaction of number signer. which issuer overall on Nilson scores second driven by deposits risk-based Both by the debit affecting For one into an card events including several volume and not the account quarter, loyalty which recent was the individuals policy most they're transactions. second in by and purchase factors, with we recent ranked a year, number making visit were change both cash consecutive

mentioned Page quarter sale which in million second the I $XXX to $XXX Shareowner declined on mentioned as operating Wholesale included the I foreign earnings operating $XXX a sale ownership accounts, related declined fiduciary earlier. the impairment losses included Results from to in Wealth in driven certain Banking also as business, first from and custody million Wells of $XXX earnings from quarter, Investment calculations million to XX. Services. million related exchange first Turning million in Fargo the and gain $XXX quarter, of of stake the the Management losses fee our by earlier. and announced the RockCreek

XX. Turning to Page

rate historically -- Our basis credit credit a with the our low results of quarter XX loss average to strong level. loans, points second in continued card our declining

quarter, our credit real For commercial million from loan the portfolios declined million and and We first third were $XXX the consecutive recovery release, strong Nonperforming net reserve had of consumer loan assets consecutive all declines. of reflecting estate a $XXX quarter, a position. quarter ninth in the performance lower balances.

Turning Page XX. to

in Our Equity share the which repurchase We settled XX%. this estimated phased-in net stock forward returned common third was shareholders the to Tier and ratio fully Common through week quarter. second repurchases X billion entering in dividends billion $X $X quarter, including into transaction, a

years. capital gross evenly which distributed Capital X have X-quarter relatively stock XXXX ratio reducing over common of repurchases, been the to our of next XX% In Plan, up CETX goal period billion the our plan. reflects common quarterly $XX.X includes internal repurchases target Our our of a past, to X the of over stock our to

plan, high six expense is expectations. on We now capital, And on our as continue In credit our both goals. we'll our quarter take during to summary, given However, and We subject reflect our of of meet to Wells to interest our half Tim And to the reduction level continued to quarter quality, repurchase excess net second your liquidity transform remain capital income, make under year-over-year. linked management capital. track of market our we strong grew the and capacity conditions results XXXX. progress questions. highlighted, discretion, and gross Fargo use XX% and second current plan approximately

[Operator Instructions].

come Bernstein. McDonald first John of from question the Our will line with

that you interest the is takes the us that be mind? that and in NII the what billion I in fair going a net did ability for keep point should level would to about the John, jumping-off quarter, we forward? this grow was And is that of terms puts income, wondering, $XX.X for to think from

the although good to accounting continue and of drivers; redeploy -- guess in biggest interest coming are have So puts it long portfolio. with also, it's And be what what not then with, curve or liquidity And end and takes both and now out separate industry-modeled I performance; happens a retail point. happens through from the think pointed ineffectiveness portion outperforming the does. I think bond what and the going growth loan of past happens importantly runs particular, I maybe, I as jumping-off excess we been in hedge expectations our which at our betas, a deposit as immediately, income, to or deposit

at -- was this biggest that driver So the in the quarter-to-quarter.

will be from I up drive are the that going items or quarter-to-quarter, the first that to that model. the mentioned a outcome. to ones are harder So down But little

like have to what to And purposes, liquidity, much feel in of rates the terms do of a you how just question excess relative need that you for fair pricing dictates and regulatory you now it's put you a work? and amount available

that's right. I think

regulatory are coverage calculated other and ratios work. key measures very be have to strong, of could that excess liquidity liquidity we Our and put

These the curve is less the notion you're because of I pickup of cash pickup -- old be for And taking. would loan before, one the and problem So the duration demand up, in it we've days, a to question satisfy. much bigger no -- bond were this so think risk similarly talked there's that to there's that's about but for flatter. a if that from example, portfolio, days, difference pick of, between the

of excess if a what if we us But long higher, any were paying the that big, at or lastly, portfolio liquidity course, bond doesn't happens up in we it we're as and something the cash. And here model think us more patient earning because as being certainly is much down. rates wait redeploy point, we've got as used then we in have -- for sit continuing or there's entry better OCI that cost the and stress end long existing amortizing sensitivity short and the big of term. of shouldn't if prevent to, so terms in move to So points as in the from much about building,

then do its then experiencing might until the Auto, that loan a equity, And or pushed you you seeing pace growing it frame sounds mid-next losing Okay. side, you're decline? the to really runoff. pace that growth the have billion time two on And for of like out you're But the slow to on to start so that also year. quarter decline start should slowing? home $X expect not areas

the home runoff think as business amortizing home is seasoned those we'll amortizing year-over-year, how isn't it, pre-crisis, fast which in call think going XX% we're auto, more Because numbers. a be we're question in just about, don't I now small just modern-era portfolio. up relatively we're equity flat, home originations. the we're in excited as from equity the even if to flat slow. equity And robust The the, are of up to It's portfolio. I

by quarter are are. origination judge, early of say we'll unless is path But would So year little lines those late originations a those that happy year, -- year now to where whether and that this viewing stabilized later cross, see what as hard next it we're or we quarter the growing. sort was next bit I the into

Our next line of question Graseck Betsy from comes the Stanley. Morgan with

I capital for in question very a return. you CCAR. result Obviously, on have strong the

test You're of give until did? you wait think the a all go thoughts does a you this excess to ask still how year? rest capital with consent deploying the Your Or up you order excess you came you on results. about capital? with gets the as the the most the have Would to top-up that the and for how there. after bank lifted? the us that just And Could sense

Yes.

first be a little I doing we're years. toward as have that XX% So we're to described, path our next the get a target the to step a you has as X front-end down in historically, will much with on our that. it results. over X approach And we've than happy bit very And is because more described, loaded this to so we excess. mentioned repurchases big

unlikely would I think be that top-up. we for it's a going

going the to assessment to stream wouldn't level the on apple, We own or a that we we think we change, capital a to scenario growth next my our think volatility take in the took have. much a plan right the see our appropriately midstream that's growth have today. what then capital because to And RWA how and so anything got even are our right Conditions or of We'll measuring developing I count calculations, or we adverse, that judging capital assessment of way us business. and we're that conducting us our approach earnings out. and approach could bite like on we executing or several risks, through scenario quarters the of -- earnings to terms busy -- is be run that our gets room the level that. capital rigorous to few by quarters deliver we severely the but at in ask earnings But is of

that. capital on think I from were was to as mean, last them that term. Yes, about about a to think just John's pleased increase to comment. you you year it's we emphasize I Betsy, short think important policy, But add think -- with I when really XX% can't really really

a You X got the about -- one Fed to this CCAR the long the talking that business X multiyear XX%-ish and over multiyear next of it over John We're been years. about period. to Neal over level period. managing and are the provide We why to our to think the down over That's plans have we a reasons I getting term.

on to And a appropriate capital so multiyear an way, we're thinking period. going to in continue manage

and this I remote. is John of So year I is sort we're additional think to want any said, to that take the action reemphasize likelihood what going that

outcomes Betsy, that's going on volatility. just, period, also year-to-year calculated capital not by that how lot in exactly industry lot we There's currently community. the yet period know to expected doesn't don't regulatory produce transparency of comment a a to the are to it's thing how whether land, more the -- the for NPR the we're is in NPR mention middle buffer. know more or the stress One And of the those going

there, So I everybody of better that's and a it's there's understood. think, work an little bit for to overhang, do until

it. do that's maxed payout do bit -- buyback. ratio like divi, just out? And the from you high color. current pretty as had the for that Or much there's to follow-up room is it on the is allocation Got on like a helpful divi you feel I The versus feel the No, that gets? here? is the Is as to little rise

at and over function then hopefully hopeful earnings. also higher few mean, payout not No, that a we're all. it's going years, next the rates more of to I rise

on But basis, ratio, move you payout on could yes. even an up dividend So absolute a higher. that think

Yes.

I think to move [indiscernible] it's higher.

Your next line question Scott will Sandler the with come Siefers of from O'Neill

you've of guys do you auto, involuntary things aggregate look it, guess, see you are runoff you pretty as concern there's CRE I the the I sort balances within extent, being how basis, clear movements been portfolio. inside? you conscious or an at guys some the a intentional at I loan certain appreciate the I whether sort just to runoff. those On guys see guess, see know of leaving, on it, as the that commentary involuntarily. versus as on sort from of just But least

mentioned, involuntary But it home I basis aggregate a home of equity to portfolio, real on was well. pick Scott, sequential-quarter up performing really an pleased consumer hadn't the were basis. estate We pace as to good. runoff see, the and to will is hard in And as so well we It it's on in underlying describe the some very as the which of portfolio seen originations depends while. continue. year-over-year, mean, as Pick-a-Pay John that it clearly, relates the a equity on

with that. So we're pleased

the as from I And or happen the terms the in the likely lines of that. Where overall quarters, there sell opportunities very in think at to mentioned what We'll the John Pick-a-Pay as done XXX% first to should to of able cross, portfolio, continue we've attractive -- auto the we've the of the I inflection, think be originations in we in that that next here. -- it's growing to business, seen to at John earlier and said, we'll plus emphasize, year, sometime extent minus. look certain over to portfolio. is when. the to last grow which half not prices, continue couple are it do And

seen we're I around be continue that of way. is think the that in that an we'll to that. decades, kind get headwind, But history, of of so underwrite On going Fargo to we're Wells Real origination means times hundreds that for like in going And and we've seen that bit appropriate in through that's portfolios, some side, been we in get to the little Commercial a only a we've Estate. and gosh, our

the about I interesting. card that portfolio. credit we've think new areas about that with good When growing is growth terms control look So the can in it's overall, feeling this at card. And pretty you we we're of seen X% the been year-over-year,

higher, which good. We expect that be to is

home and answer over So continued mortgage think the and we've the question to good I about the runoff a know it's in But some I really exed your feeling of time. portfolio. residential growth long-winded more We're equity granular. overall,

I seems the proving could some maybe I thought, than even that speak to would second. mean, to anticipation have can softness. more if And to competitive dynamics. if quarter to challenging a perfect. you That's Okay. switch be wonder of for a sort be I mortgage business with just we of

I think rationalize excess we maybe that little would capacity this at quarter. a more happening, all hoped might some have Doesn't least quickly. seem itself be to

thoughts top-level have any there So be would you helpful.

Yes, John, I'll jump start. in.

the periods historically where when most clearly second mortgage you quarters the the think originations. the doesn't occur the look of I the those in third and you are in at naturally quarter see overcapacity business, rationalization because

this next we year it's first know, it's level of that it demand a see before. a cyclical see more first will We'll mortgages again, seen as and you guess, continues. if year and probably the is, same quarter again. the quarter for this is We've of rationalization in guess, of the this my So fourth just business. But

We've think I mortgage-only originator, our our monoline servicing the unlike then the maybe financing mortgage the is we've real wholesale product. a We've for-sale originators. got a got in we business and to provide business, from balance model, got product. sheet benefit

overcapacity. model when through really a of going period diversified that having you're So business helpful is

America. line of Najarian the with from Erika Bank comes question next Your of

should you about to hopefully about think ex Tim, Going outlook to I just the how mortgage. earnings, wanted fee Betsy, back about to ask what we said more

in think about significant earnings even Wells we has has there to that billion. of if about we -- this But for Fargo mortgage? I $XX between appreciate fees years, income, in been mortgage. that the $XX as stabilizing think So next think we fee should anywhere exclude the business. two cyclicality billion volatility over also ex you And How ranged

Yes.

from to securities, gains So aside set like, be going to for there's assets so the trading some a that going in of the equity minute. volatility I'm always and

so insurance been you've seen certain has line the Some commercial from like that's also fee volatility businesses sale I'd the And onetime, that in out. business. our factor of of the that

a accounts, really proactive think to the of moderation -- deposit were I the we service that first year-over-year. What charges impacted we that that and made, decision that you're made impact. X% down seeing our which is on decision hit consumer second the quarter now the friendly from our

third item the over math it's big line say, in that you going quarter this a excited cards. I not gosh, happen here. terms really the time you've which but from described, think that. nice to be That quarter one drive a point the Banking. from growth probably That's I we're growing and time exactly And strong in of terrific. And just And that that probably then and so was on fees to grow. expectation card impact May in my quarter, that's would here. growing Propel our over is new should again, in seen about investment had continue trust will Investment side, We the Card, to

pressure. more question that's net have under no mortgage, hopefully the as there's but you, bit gains some originations So relates it been little from to for granularity a that

more there your think outlook, And of to lower the just in other your band a a expense because you as of if the wondering, about we disappoint, peers is base often of work have for your flex about fees. fees a In larger continue it model? to terms commensurate and either of doesn't expenses? trading way that. think we upper lower And similar about a investors Or size how or we or And compensation expect that sensitive the appreciate banking think relationship I'm fee in investment to compensation? I as the hitting just -- words, band should flex benefit businesses,

you've Mack DeVito And on model, way Mary -- the but good are revenues, works quarter, that. the terms doing a I it and expense But that the model. to if need mortgage and to got first comments other gets in, decisions. had. it experience generating those if second business. don't you're If job quarter or -- hope that in make our plan the Investment you know, And way better, any managing was in of in need for levels to to certainly you the John, environment have I Michael work in in the expenses. we think reduce in not we needs No, it our we're Banking that not

acceptable is will -- get so are I aggregate at part revenue-related can of low fixed a to going the as little to in the an that side. overall driving possibly where growing for the to if expense be, rate, be pressure bit us say Erika's income income we're core continues what's than deeper on expenses fee about as we under different they fee go fee and even not question expenses. in But

Wells of to that question. Great. Fargo? one to And depositors more is be going just is available that last The only open? Propel Card, current Or

available happy we be No, everybody. deliver of to for would -- to one America's one? you It's you. like Would Bank

can't I comment even on that.

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

expenses. down $XX.X operating loss. in straight. I $XXX to have The bakes billion, the I to make billion that obviously the John, just sure numbers on $XX.X Question million of want

You've than that. higher much had

You've one-offs. had other some

at deliver end range? low like-for-like in what expenses sense was that I end the terms just half have on to get or basis half? the what in be is the actual track set. what I the in first you're think the of level second in on at a -- high the the have of million that to first been the $XXX to you Just quarter. for But right a -- number of be to you that

but described. forecast does in that that it separately you require that, us currently in tell can added range $XX.X reconcile with billion the that and haven't books backed end the but out. million deliver the out, in the in X the I to the $XXX to with you to We to hard are half is take quarters in things billion up up second $XX.X I can -- forecast of the

of that you the highlighted. the nitpick end, we look, on ROTCE is. there's for Okay. in the We basis the is I get number I then. core -- to get And quarter in And question, like first and But than offline you as these guess, lot a a well. results can a noise basis, that obviously, $X.XX that, low number something adjusting broader XX% having the sort of of not can if lower your kind little right on what at bit a one-offs guide. of And to said XX%

move talk your if the start to trough, what we that power of confidence to you level is not Just in can see trough terms we're, up half. your when to second confidence that earnings start and you in that really a at a near of see

of conviction, XX% confident an the, happens we'll it, lower weren't is the deliver. just call -- ROE year. of a the the baking There with Sure. revenue to revenue assumptions, the half quality terms Well, simulation is to recently and depending We number. it's this second what rate it whether happens approved that at path or certainly beyond for perspective. fee curve in where the was expense what very the the And I Plan describes are the in of revenue think that year in that ROTCE what out Investor means and on that simulation then because on that easier from confidence better high of we've would next based we're sensitivity that Capital upside delivery following revenue. we mix apply rate of of -- that in XX% Day lot into you got conviction be year, different on laid can exactly It the ROE, a and

talking what that XXXX will the reflect we're happens about. second half, So the in through expenses what happens

there occur. they Now -- could come about as that from we $XXX one excess we're be makes to on. trying reasonable. that, still -- the call sense. as of say timers we pro we're every they But in if talk is to operating million doing that occur, that And that, that, revenue that it, category think we'll the have that through in that's want And while losses grow very we I or to path -- forma

Okay.

Just I guess, a final question.

the of Pick-a-Pay I expected The sales think what is additional for -- that Puerto XQ? asked somebody Rico forward. the you going is approved about sale assets,

to X. that, they approval had August a expected announced on obtained It's Yes, buyer and to reached the that that. that achieve, they've close regulatory had they've

what the you is? determined Okay. impact And sale of have the forget. I disclosed or financial

was and impact for those a the to and auto last floor plan. adjustment No. There's, purchase the positive numbers. coming we the call our of million but -- already through consumer billion taken of LOCOM price, already did that Puerto worth some in in loans were off reserving it, $X.X a billion books. $X.X of allowance because receivables there hurricane, $XXX loans after We've gone when Rico we year's have

Brian next question Your Kleinhanzl KBW. line the comes of from with

demand Switching segments was by the small seeing the growth? quarter down And with one large way a different else? touch there demand businesses? the by -- you maybe middle offset you can on those by seeing was of corporate, Is on C&I. on how growth any groupings, borrower Maybe of foreign gears, what this of somewhere pickup a how kind you're also going are break quick markets, in in foreign most in the question

would wouldn't the as the that in it describe I And up to good, businesses, like mergers that kind to the of there think more great. I of about be a business. more tends been point demand but is so the so corporate have have various acquisitions, side, number transaction-deal demand oriented, describe been I C&I your Yes, drive to and the

bit little in a feels more today maybe other than it cycles. episodic So

middle-market again I saw so growth banking demand think kind good. we and good. is in to wouldn't business our be the -- business, great. describe I Small as of was that continues it middle-market

the finance, In advantage very term other which nice really medium-sized business, side, write-off and continuing the capabilities terms is capital positive, our And for seeing of think in of -- Tax the business, across We're think, a equipment long particularly some asset-backed take small I was the finance Act, the new of on see the good. actually to economy. you're industries. real, in I ABF opportunities businesses

of a driver the business, So decline And there. side, one there's see on primarily U.S. the driven financials no financial institutions in kind outside by did reduction demand we from the

So and great, of overall, C&I percent. good there's that's little each growing would but in an economy I a it is story them. X-ish I one think does not But say reflect

but only billion facility I but on been so worth average mostly credit. month rate drawn $XXX broad much our a utilization every a has the throughout of not movement range on mentioned about that revolving It's regional year. in et people's cetera, every of my at comments of basically in geographies, U.S. swathe credit available not industry. commitments, of That's business, every XX% year-over-year,

so of is our the fact today, reasons customers the so many which is And really that's so just liquid that quality good. credit why are by driven of one

portfolio Okay. I mean, to mean, a just now. relative you it's piece question NII trying behind to you down a was mean, grow sell. I I point? becomes as guess, and then XX% I motivation that think a the a at look Pick-a-Pay. yield need large headwind how quick very that No, what's I for was But do understand selling the just forward, down? you that NII and on fairly on you there the it about gain helpful. what did that selling that And

Yes. Go John. ahead,

it's jumbo portfolio they've acquired not of mean, Wachovia, the time a are portfolio credit quality of same designated the as who, improved -- our prime ago. a average that borrowers I with long we question. still good since it's while originally a portfolio as and borrower. a it's we Yes, merger the They're noncore

bid receive and So still something could they're the a that, And do ourselves. We we that comparisons wouldn't portfolios so and, a where is make a riding credit the hot, portfolio. it lower over mortgage opportunistic we realization time. from many sense essentially it's to it's for years' little made noncore quality to a time yield In intended time, pay coupons. environment originated higher is -- those it's net bit that market this to of today's is we'd how or interest who's economic That partially of it. portfolio. to time, at originate wouldn't once continued today. bid somebody with capturing frankly, be have for fade, But and willing out income over it -- or It's we're worth those to today zero. for yields happy from go And

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

here. A few questions

some it they're still – that Just in wealth management leaving, wanted attrition -- of see as leave? it indicated wouldn't top Or leaving, line of commentary see on that's that little attrition pressure were terms there? people that side, what to of okay creating would is is you otherwise to updated bit mount the the business. of some people your to around still in be with a some you the okay Is you a those are departures starting

Yes. on I as a our wouldn't necessarily concern it describe part.

aging think the I retirement of an what is population. and seeing you're FA

quarter. think Edwards, was A.G. -- just Wachovia structure been matured for while. and in second we've XX-year a XX-year agreement for, agreement folks I impact, there population -- the attrition purchased and or of that which one or that we it's had addition, retiring, X/X that is the XX% somewhere in between structure, a the planning episodic was when The

of bit an saw And there. a little so we increase

we're you second than less overall, overall think at to think quarter quality FAs, I look first we're the quarter, what FAs the a and I increased XXX the the -- down when has of bit. actually

industry your an think age a challenge in I because little a is older that just is than the has bit the average experience of this that the level banker. of average FAs market

that. going we're to And to deal so with continue

the structure is so to on got addition in which transition model David salary FAs Kowach digital develop real the place that Weiss and got sure we've example, we're high-quality got focused and -- then of I bonus in make continuing demographic side, are new the that to key kind and an of Investor is place, invest business Jon traditional sure -- FA making sure that Intuitive the the think that in has for options investors right the to new us we're make very on, additional we've to a model. continuing

looking right. either on it bottom to it. then $X And for, Got to on saves still investment technology, good or line? are front, you're with the expense at XXXX that falling the in that when or front All least you personnel the comes billion

going to But this of is everything we in 'XX, to connection But that's terms what means billion that overall way a $XX about our for the in guiding on. yes. with billion are. we're investment expenses, -- yes, that else expenses, to expenses $XX think Well, rate run

looked take here. on a at seems to I could by hit on early John, sizable that all up sizing -- deployment degree math Any capital your a be here. banks. of really our on the side, our means of the the like you that you've up any it opportunity take kind it the factor up mean, lastly, quantification have And you fairly then capital? what impact? brought buffer number I you brought Okay, stress assuming and know initial a I'm Do for of excess it for initial right.

still could banks. shooting maybe too calculated they range, really little back. to soon where get are website, on submitted at It's impact We to probably tell it the we the tell. end would volatile institutional models model, have initial CETX a year-to-year expected looked little said a Having a feel we everybody, especially there be of folks we're we're We have the as that larger numbers at letter what the comment think so more is you doesn't environment. could we're economic what coming that a changing soon so agree absent appear to on And change. thoughts too the I targeted understand having use the it margin, capital with our lower think transparency I the that, NPR in might us to an what I all the aren't business bit like But and of to for actual own if from. for. at Fed's change posted our bias a impact on it's levels business And the lot proposal. do can bit really at against for that's yet, their and because really today. realized stage because than next It's higher level our

comes RBC question from Capital with next Gerard of the Your line Markets. Cassidy

net margin less you in the quantify John, Can a one of you I the of negative the ineffectiveness. had guys that the points of benefits in mentioned for obviously the increase hedge you was nice impact think the us was quarter. interest many that how And increase? basis

Three.

be now really that Or -- incrementally it to just is it is forward, impact shouldn't going continue and should have And an growing? going this forward? or Okay. baked in

cash as been was deposits going moving increasingly it at most up the highest-cost matter down, like it with have we seems liquid. that -- end in before as is Just to sitting what's our on margin, there what

described a net some diminished run lower. even sheet interest little income produced to Those margin. have those bit off. what's but -- net margin. net balance beta higher is probably goes the diminished And reduced So we've when deposits the somewhat, the they're happened they up, were They interest the income, then though as margin interest

of with other whether would to impact, to what pay of look what quarter-to-quarter have and hedge will an I to we're at couple because more happen those the impact. runs deploying And with course, deposits ineffectiveness between have as for that we NIM. LIBOR will OIS things, So least then, a impacts. through into cash loans an basis and do to what's hard and It's has going forecast things

do income for out interest impact term. in should it's for I very of which deposit things, of the hasn't yet. anything, industry, been types deposits, So which if be both And like low going the on paying to happened the think date. have retail experience net NIM near or lot to more an be It'll repricing we those looking a in has all

area products could offer to deposits, they it leave of though your that management them alternative bank, deposits. Okay. them to Do customers so think I would you higher-yielding some took they stay move wealth you money more I in bank, see. the know to them? guys you you the the don't cost can in keep And into have speaking identified I of their deposits

for account do money Fargo we when an want have We it's the ones in be customer to of bank to Wells instrument, liquidity And the that so. big Management. appropriate into very be and out for mutual moving a first that to market fund a some complex place is their Asset asset them, that management

little emphasize, for an FAs that open platform to and sense and our just earlier. of terms about providing the I makes client. for in what advice architecture platform, our But appropriate bit are advisers customer customers is we a mean, talked the

Wells to market sense maintain customer product wants Wells money Fargo -- it's it's those most a to Sometimes if -- at the customer. fund got and for to their that makes treasuries broad we've Fargo. set the it's balances some But or mutual sometimes the whatever

estate what lower seeing on us whether historically, of your of headwinds. Tim, And point are you're color Can the or seen had today, are this has past compare or talked at a real about, more cycle you your of one see. competition memory cycles? higher? yields how little where answers, it commercial underwriting loans to I give loan-to-values the Wells standards actually in in And it's does you weakening

question. Good

of overall, is, slowing seeing we're construction of activity. what that think I kind a

Commercial That's a point detail underlying availability candidly, So prices provided that in about at and real that's opportunities. the not in terms at of in supplement for look construction have commodity decline business, sure. when you constraint Estate this labor a in seen atypical There's we the cycle, we've a increased. of, the Real

would bit than say. new So a construction. this that's time, cycles That's affected of prior little home I at the pace different in

-- near saw telling but then I we're we accelerating. perm literally estate nowhere is what it's it's necessarily for commercial are to type relative put wouldn't some in so underwriting I occurring XXXX I -- folks kind loan, time, think down. It's overall their of to in deterioration the 'XX where And that real terms this think and been other we cycles, in kind of seeing say of a pencils many standards.

you I short close a need wouldn't very again, prudent be describe asset. so you're on anywhere And it But that. as when to long-term to lending

for that's real of wealth cycle, -- return so be this mention, the and got folks bank-to-bank as malls individual days. of play incidentally competition here The And -- of there commercial estate with probably it the types estate that strength management one sovereign standards, real life didn't commercial go the the retailers. which pool looking it's the in to capital other commercial have as the is compete competition. relates not is which to we broad companies, tests centers, finance. with funds. out in that as all Tim mostly will That's item types pot its of Any as ever focus one estate, in through is or stripes retailer-related of different on asset the of given single vehicles, real it's One shopping these risk ability underwriting of is REITs, mortgage finger has been

not where just update you out how FDIC fourth next recall, and come that be you, in I give is guidance folks? for Can if stands, for I you've If that that much for you will on but lastly, your the an assumptions, clear just the for two John, very timeline the quarter And been Great. expense industry. the think will years. us good surcharges still

Yes.

So would the end of that originally the of surcharge run by have this industry course QX its estimated that, think year. I

year. it the benefit FDIC surcharge run I this looks annual going QX And of Wells to like Now it's is... to think the from through Fargo

A million. couple hundred

Yes, that. it's than more

$XXX million.

million. $XXX

out So it's we'll benefit be that because this year a quarter a in quarter. of pushed missing

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

sheet the limit to below growing. order to order consent that your grow. need You the you continues balance consent Loans clearly has requirements. mentioned not ability not shrink for stay well under to have affected earlier well the been the And obviously

at the what are So here? size from been, the if continue a a maintain sheet point get as -- size? balance or here reasonable What's you on trends just and -- you the they've sheet comfort where try balance you happens to to

commercial purpose, got loans deposits of than we've going what's have sheet. us, that Well, the we're day liquidity some most But about real we're we're sense makes benefit. business the And for that's where although out there -- for drive probably RWA some the of balance competing that on tapped auto, been not think the out. in and type or day provide I We've we like nonetheless, still the competition for those pace. fact for portfolios size and we've any deposits, and running competing that we're exciting to brakes down last And more estate we're quarters. for the in the several talked loans over open GAAP the auto assets growing at

deposit and forecast of the growing or We business scale put and So There balance securities there side probably run we've essentially an operate can for drive and them size are growth in number customers the that of more on with side, other, more bit sheet try loan balance taking was activity. frankly, -- with at every all little drive focused have. the But leverage is approach give relationships, than we of never or serve GAAP growing getting the customers in type a -- financing time -- other larger. customer where is $X for, our balances that We're there the that the to we there's think what and frankly, -- the appetite businesses And size no some in. could sheet customers on talked sheet. natural a can to what then we're and things and up a profitable, connection there's what that really the going what the and are happens asset long customers our with trillion us right good under loan markets on on for risk we will about the loans some the happens on side. very be I balance profitable cap, what faster operate increasingly we

of going follow-up still to you lower along on which that's And a are balance efficiency bunch -- sheet, Yes. those to continue the my lines, is as there either work be of is kind offices, Or deposits other of out? kind the to in -- is this that you a couple quality now decline big and seen areas. we've or of obviously, move continue that non-quality foreign those

onto how are efficiency? max So close that you

no there's because efficiency do max at operating that. not We're to pressure

So decision of another, pull. if came many just that area. we're weighing that's for one a down it's still it deposit, a And there of a at customer serving type those in example, -- take to are company time. to this ever levers to the other not constraint But or on it's between customers

line from comes Our next of question the with David James. Raymond Long

FTE Wells has Is of and been there a operational to compliance way you've investing for heavily quantify as there over you number as maybe adds in the year? well the risk made last IT.

side, Investor about kind we've risk year-over-year. highlights X,XXX the I the had that of On risk the team added Day is at provided one members we of function in think that folks,

operational Which in compliance. is disproportionately risk and

has side, pretty And been on the IT think Exactly. headcount I the that flat? John,

work on of contract talked Well, in about I well is it employees We've as as dollars. mean, there headcount basis. both a terms who people

days. IT aggregated I range think in these our is the $X expenses billion

margin. our of at transforming. data But related of modernization. lots cloud. number a portion security is It's portion It's reduction things. that it environment. to Now of and a technology the It's in move information risk is of of It's It's it isn't. and meaningful risk a

revenue maybe support, your years it for and maybe include Okay. IT compliance, generating the FTEs a how and ago? or a back-office compare sort versus three would concentration risk of your have are Do of a you to would then ago number that that when year or

Yes.

at of can take the that is increasingly one way tell have So there's and customer into to number in to the using technology don't service we're sales. things you doing I -- take self-serve that fingertips, enable the a account account -- couple but my that I and

of our digitally. for happening have would happening XX% sales those sales through our So and happening happened through those of accounts XX% technology. we've are example, now card deposit account digitally and credit opens new new people, Previously, described

are -- the with oranges our -- operations a headcount. and in And operations, service and, say over just few So for very staff in call it, whatever other XX% technology the account sales, of and service that passage probably between it's years And time. I'd of to apples headcount. little sales, XX% and XX% particular, the and of XX% changed though, past means your and question between and hasn't much.

of next with Juneja question the line Vivek JPMorgan. comes from Our

What give Couple thinking an Tim, you of on us you that, timing where long? on when, cap, asset can currently? update questions. The -- how are

we'll very in very change our them. the that the that through no Investor year, some half next constructively sometime we're from Day and Vivek, thoughtful in gotten of able first that. the update to from working And with We've feedback expectation Fed. move be is

the just the cap is that to get asset goal is so emphasize lifted. we point not to think can expectations meet there I our

manage and need and update we're where that's to that investments the to a compliance company. timing but where is standpoint. focused, operational in goal, we -- make and at That's how no goal Our really fundamental the the risk changes make from we

John, a you. question for Okay.

As I it your RWA, look at was flat.

on a Your period-end were total down assets basis.

where you in the So on saw weighting the increase some risk any we on -- color balance sheet?

very down weights, in the GAAP running low the I more side would sitting think risk high it as we're runoff had asset assets of that came -- cash. factor that -- it's is because where deposits down

the what RWA to same it. easiest was to think there. already that way remains the is akin something about So That's

Got it.

Okay. moving I client One look management heard your wealth on heard last assets, the -- management, one, were color now when are those But I [indiscernible]. you down. at management clients' talk answers wealth about deposits to Any wealth earlier.

on the difference So color any going What's on there? is? what

Yes. mutual a of think inside stayed Wells fund have would money every Fargo. don't dollar I market

AWM, it to. particular that, -- There down year-over-year in that's asset The see are There's Tim management. as yes. I X% takes. it bit management, nothing little in other market a would that of There's wealth and and attributable movements. wealth assets client going. did, quarter-over-quarter, of Some customers in be There's and Rock actually, not up much described. are puts Creek coming

that client, the assets we're portion a thing if that's managing. outside the Vivek, Yes. went the into company. for portion And right again, other A that's went fine.

from final come Mosby question with of Our Marty Sparks. the will Vining line

other of of little and come very became become you out you re-place to all a from about a headlines wanted when At you're played having because that, tricked created many that a talking kind go ask you're service question. to from much difference. under more issues I you the brain that. versus were -- you strategic positioning yourself and can charges competition. matter bit so you dealing you the so eventually, at have on my in customer-friendly. more this the I with your competitive point, when how that It deposits won't position But make will and kind through

areas, I'm things pricing gotten so just do so more kind become your different is you And where of customer-friendly these think you've through as in you've gone many thinking, and to rest the have eventually rest the impact you pressures? to of those on don't favorable industry an out other that come the market of could it and the once enough have you

question. a it's really good Marty, Yes.

help higher at think -- better, succeed is If let level. is provide I asked to their maybe can to vision again, me take step we our then customers we information it should a so our our right. period, finances focus manage and have that information that and standpoint, back and our customers our financially, it strategic you from customers, a help

And In run, it's pain that from revenue my Over short a that services run, is from that to charges. providing information of the in drag we've right deposit products, model. terms the that talked perspective, making to right. taking winning long, day long-term as long investment a business and winning, standpoint the a -- customers, on been make short-term about, we'll make the our all service

that real-time relates And that's leading. And -- our balance capabilities, no to the our in provide Investor and earlier -- impact increase in us in are comments Rewind we're think question on innovation competitive breadth talked that pace Again, a breadth with that about over to about to of short those talked and revenues. going to the the of continue negative some it as at as and alerts the we term, going of industry hopefully that we going continue Avid of so innovation. advantage. a highlighted Day, I my we're or the there's And Overdraft has time, innovation that sometimes

we're with. our It more seeing Over primary checking makes you makes to them more And the It example, that more seeing of customer growth in long And accounts. the that one one challenges term. of terms that for in value term, in of short of relationships long do business the checking It balance want the of terms relationships, stable. versus primary quarter, makes valuable. try And when that's we're those to doesn't which happen to occur. right. continues that term them

would kind way another account specific at of of that a -- me as example you -- beginning would we've going sense changer look the to ever to be throw, that the up of give Let do the these DDAs. put re-shift might my be that are And deposits of ECRs advantage way a are customer-friendly to able you and some you a that on those as concept the competitive accounts? game that in started you follow-up, been if interest all flee,

the side, treasury on Well, mean? you specifically

Yes, yes.

is more the with things quickly driver and security. of top treasury why treasurers we price example, to introduced in terms important And can it's you're money that even have because technology ranked capabilities. move in at Well, invest we've side, I generally think breadth right, services our the the safety managers so that's business the dealing the much sophisticated in though mean, products more businesses. I on iPrint, and important, provide and biometric treasury more and and management of for always historically, the to

less focus there, much and to so technology in and about think I continuing be services. And much should more the about price invest

the reduces run the their up procure value-add, that. business. It it cycle. of the the the part customer helps customer -- from in working business It that's with helps to them them that wouldn't want we need helps business. And a receivables their their move That's their shortening capital pay. Yes. and with to commercial away for

questions. know the time for your I you. I thank for team also want and of opportunity I all Well, very for a to XXX,XXX busy morning do to members. want take Great. thank it's your been everybody to our

in to got our and exceed best we've hard think customers They're six goals. the team not meet I our but business. serve the working only very

much, thank Fargo. you for So trust very you Wells your again, and thank in

Thank now disconnect. and you all Ladies you today's conference. this concludes and gentlemen, may joining, for