Citizens Financial (CFG) 18 Oct 192019 Q3 Earnings call transcript

Good morning everyone and welcome to the Citizens Financial Group, Third Quarter 2019 Earnings Conference Call. My name is Brad and I will be your operator today. Currently all participants are in a listen-only mode.

Following the presentation, we will conduct a brief question-and-answer session.

As a reminder, this event is being recorded.

call Ellen the Investor Head turn Relations. I’ll over Taylor, to of Now begin. you Ellen, may

so thanks and Hey, Brad, much happy Friday everybody.

to pleased really have join all We’re us. you

First the of our Bruce and our and at and John with Don off happy some investors.citizensbank.com, to they will which results Head our will you able and and of find reference take Woods, us overview ring today be Saun; the Head presentation CFO, CEO, be an provide are outlook this morning, we’ll earnings Van Banking Chairman then Consumer additional Commercial In Banking; McCree, of will and Conner, Brad questions. color. they provide to can

risks some comments from should housekeeping, XX-K. our you of for may forward-looking review our today the now and factors statements, on Form our expectations quick the materially uncertainties subject differ and presentation results to in that and include So two to page cause the will which are XXXX

financial important about these utilize of to to information the also on to utilize appendix. the and presentation so the three the results GAAP non-GAAP GAAP measures reconciliation page We our and review measures, in it’s

that, yours. with all And it’s Bruce,

morning for everyone, And our call joining today. Alright, Ellen. thanks good thanks

announce strong versus to grew our versus In a X% interest spite revenue year of yield pleased We’re another quarter. last X% curved quarter. rate headwinds we ago and

to were X% capital was results good up X% year key robust decline continued ago The a mortgage and share return. versus per earnings Our performance these expense in business, up sequentially. strong our and

the strategic outlined that efforts around TOP We and last progressed some we X our initiatives well of on investment quarter. on

BSO the we’ve balance We ratio our and continue program of maintained around to sheet through loan-to-deposit manage our XX%. actively

we costs rate the we the down quarter further expect see as last costs down deposit cuts. and quarter aggressively deposit deposit managed basis to betas up points We’ve tick versus X interest-bearing with in

good in Our remain consumer and are commercial both metrics shape. credit and really strong overall

up holding has the a view somewhat economy versus ago. Our reasonably is year slowed growth well, that is but

soon, don’t areas loan we see we anytime selective duly the originations. being horizon new are While cautious a in recession on on

well So close overall, we out quarter. we’ve fourth we I’d a feel say are year-to-date with positioned and the executed good year to

consistent, sheet manage base. formula continue fee credit our and businesses for self-funding by namely finding and invest prudently, reap manage grow expense carefully disciplined then stay deftly remain in new our to manage balance base will XXXX and our NIM, the efficiencies returns, fresh capital Our initiatives, the our actively on

our It’s an and and during better celebrated regulators. building customers, of been We September on are we the She’s colleagues, communities, much for made better Anniversary milestone bank quite XX. important a a delivering Xth IPO journey. now in the quarter, and great shareholders progress

our disciplined know I’m the that five. continue peers, from and the do than and be our are there’s is better will We energized by confident and record there strong will reason challenge. and five execution last years of even the work next we can’t more to track us no differentiate

With over turn John CFO, it let our that, Woods. and stop to me

Good thanks Bruce. Great, morning everyone.

strong our quarter income, discipline execution good continued and a strategic with report to record against pleased are We fee initiative. expense

kick me results of four. page Let important underlying by highlights off on our covering

impact stable of loan up EPS quarter EPS the growth with in delivered a income is curve. This decline On X% X%. interest we X% XX%, to margin given of net rate reflects relatively helped our and for net up basis interest the offset and year-to-date growth yield PPNR X.XX% the year-on-year at

to X% and base. seek up illustrating of $XXX nearly deploy loan income attractive customer we year-over-year were grow a growth capital our We consumer diversity million, delivered variance fee XX% Commercial model. of up business record year-over-year and each our as

$X.X to momentum growth Access, by end. faced billion deposit in Citizens grew which is by continuing Strong quarter

us as providing the XX.X%, we was of head year. flexibility funding end Our into spot the with LDR

in TOP our $XXX now benefit Given extremely of the we $XXX spend and continuing million which million million highly programs in per to by on estimates. well to increase end over tax TOP discipline We X $XX range execute run-rate focused expect of programs. for our is to the the remain a prior our environment, realize a our the year,

XX.X% year-on-year Overall $XX the XX% with underlying of benefit of On ROTCE stable restructuring. delivered as points tax a share tangible associated basis credit rate allowance-to-loans quality ratio the points. $XX.XX. basis value was We XX.X% an reported per a ratio remains rate effective of loan underlying an million basis book strong XX.X% non-performing an of with XXX to XX includes tax and up operational is and

an This of the non-core several lease non-core to aircraft in a the a lease was client trigged and line continuing accelerate quarter, reflects portfolio. noise there restructuring efforts our run-down in was This merger due to items by some portfolio.

a This by in $X million higher $X reduced increase $XX to and $X were increased provision and fees. with due this PPNR transaction. of about Charge-offs million million expense million, an

quarter in impact delivered basis of an we restructuring, of the points XX Before and efficiency operating linked basis of leverage ratio this positive XX.X%.

XX was the net impact margin On the to page point impact offset X.XX% rate to stable rate year-over-year helped six, decline the the largely X% of in of challenging net growth backdrop. of despite relatively basis interest environment. interest a given income Loan

X a amortization benefit yields, the from asset Contributing premium assets short-term continued was of higher impact significantly and higher to better-returning modestly mix offset NIM term the tied decline basis year-over-year by given the was This interest-earning rates. for in higher lower shift partially point to rates. long

X amortization. basis premium points, margin on the linked basis a On basis including a X quarter impact point decreased

basis costs. decrease positive we X well with managed deposits in a on point interest-bearing a note, deposit So

at past quarter, four our swap to asset versus basis prior well as come including quarters, sensitivity net rate we position quarter. continued forward actively Year-over-year X.X% came expectations at asset rate have the XXX has evolving sheet challenging the environment, as of our the to manage an mix. $X by over in Given for we of gradual X.X% addition down point receive billion driven rising net billion was approximately sensitivity $X which in a a which balance this had fixed sliding

As you activities effective our five long curve, the hedging look year, balance the about six shifting the to had to XX% and over at end sheet effect of both XX% our last our the months now with of of mix sensitivity shorter. our and changes exposure of the

expected the benefit our has lower hedges. declines interest support reflecting an current a cut broadly we help outlook of quarter These compression however should the amortization, further an of fourth interest-bearing factors growth loan along fourth expect stable net the see deposit Our of additional of in October, rate in level in and wind costs, to resumption income quarter. premium with

quarter on with by income to mentioned, results Non-interest I fees in seven, hitting results year-over-year, was fees rate record up exchange strong mortgage Moving and slide income delivered and XX% of up businesses revenue. and on banking, foreign driven fee-based fee card as X% a basis our XX% products. linked-quarter this interest

were up linked-quarter fees card driven and and X% or million, seasonality fees sequentially volumes. up charges reflecting X% by were $X higher Service seasonally

Our nice in against as acquisition hedge playing hoped, rates. a serves and as we of lower the backdrop out Franklin is

$XX up were million the Overall our revenue led as results and $XX increased fees up with banking million, business revenue mortgage margins. production way favorable Mortgage larger gain-on-sale and servicing the MSR $XX servicing portfolio. improved given on origination higher volumes hedging million,

since quarter overall million quarter, XXXX, face the weakness. market came this in represents first which share lowest at we fees the $XX of markets Even in improved market and positioning. Capital so, our level of

bond-underwriting quarter. seasonality, slowing in Syndication while middle-market a the of fees fees were markets quarter, income later fixed significant reflecting linked activity in picked were down and the higher as impact up

entering conditions. the which fees with third from X% sales fourth that We quarter. Wealth deals the includes were second levels, impact lower a strong are impacted to volatile linked-quarter fourth were overall capital by of markets were quarter the record quarter quarter several as out from investment market pushed pipeline,

exceptionally challenging record FX quarter. interest with typically what conditions, rate well near executed In products seasonally in a in delivering second slower line is despite we fees quarter level and

acquisitions broadening mortgage, platform made revenue to progress strategic our We are our our initiatives with the in wealth key scale build executing diversifying and well expand enhance business, fee pleased and on capabilities. we’ve M&A by integrating capabilities, the should have more years across do seek be our traction, And trusted advisor. we as and investments as to five the for past the customers gain look forward, to their we we over continue making been

million Turning expense $XX was to transaction. linked-quarter, impact page, the of up the lease reflecting Underlying eight. non-interest

expense from Excluding impact, deliver to this expenses programs. were illustrating strong discipline our commitment to as continue our TOP flat, we efficiencies

into opportunities. recycle revenue-generating from We continue TOP cost to savings

while the and the and up Compared efforts. technology the X%, our expense benefits lease stable, we expense prior underlying non-interest X% acquisitions, investing given costs, was for our relatively impact up as year, was remained managed efficiently of equipment and Salaries growth. employee ongoing to and restructuring before software

sales, Average stable to the of discuss and utilization high well Let’s the in largely linked-quarter lower and quarter repayments move balance relatively on page sheet. loan as line were as reflecting relatively X commercial. impact loans second

Year-over-year commercial from average half, was dispositions. both first for the Adjusting sales growth X%, in with in headwinds of modest loan were impact up some and X% the retail asset driven by loans growth year-over-year. loan

the well commercial as Commercial to slightly repayments loans utilization, linked-quarter in were high lower down as and relatively up X% due planned C&I impact in year-over-year with and strength of leases. were line reductions

and On year-over-year linked-quarter, education partnerships. given finance growth loans and our in X% X% the refinance side, were up mortgage, retail merchant

nice quarter, the job mention the down linked and that down XX% this for the Regarding quarter, the I while growth. year-on-year non-core a quarter running credit period-end Overall, restructuring up improve. about the non-core which lease continues loans quality of total book providing X% portfolio fourth done momentum to loan were we book, have are both leasing should overall

X% year-over-year. nice XX, Moving deposit saw X% to we linked-quarter and of growth page

to At We billion benefit deposits. which $X.X of and quarter, Citizens contributed end our funding Access our has we and the nicely digital deposit platform, reached optimization levels continue costs. the Citizens diversification in from of to the our Access

channels, the taking where our We’ve playbook manage clients the aggressively costs and market been executing direct all rates promo savings bank. they reducing in some rates, deposit commercial also CD down rate Given come. have we our environment, rates, for across our money down deposit reducing to retail been rate

deposits total a points basis were points As linked-quarter. improvement a basis quarter. from nice X controlled, Interest-bearing deposit basis our down well down X were linked-quarter, result, increase costs point last X the

improving risk and favorable levels relatively to in let’s and in quite move to Next, stable profile profile retail reflects cover I’m look This at an risk credit, good commercial. page overall. which XX, continues

charge-offs the up largely year-over-year modestly charge-offs relatively of second points in at came basis commercial, losses, million Net Net quarter, a in broader risk by profile number low quarter remained driven XX $XX a small in levels. million stable. the as uncorrelated increase portfolio were $XX up from relatively with

prior and expected higher year levels $X growth losses million Provision in basis points reflecting of seasoning stable up improved basis ratio Retail prior increased million, $XXX our linked-quarter credit loan and portfolios. of non-performing net XX quarter year-over-year. the was The reflecting points relatively charge-offs charge-off. X from for was

year-over-year, number quarter Non-performing in saw we driven in a X% by of non-performing improvements commercial loans loans improvements increase education. increased basis, by home driven while a On an linked X%, equity in retail. to and tied driven primarily loans, decreased small by retail

loans XX.X%, XXX to with of quarter gives basis the allowance also at peers and NPL points. stable, ratio The quarter points. ratio basis stable at the flexibility. coverage ending Our excellent capital remained CETX positions, us page financial compares maintained with was our XXX a relatively XX, and ending we well strong linked ratio On which quarter liquidity coverage

dividends of shares year-over-year. we During up third million quarter, XX.X common returned including $XXX shareholders, stock XX% million we and to repurchased

dividend Going on to track. glide our ratio to of payout target reduce a forward, ratio planned CETX and XX% to our we remains XX%, continue path

to and page move XX CECL. discuss Let’s

will mix the basis XX to in economic fully This the was CECL in points capital on basis this and CETX We represents characteristics basis basis of the in range of X a XX basis, forma expect basis on reserve, that a about portfolio. credit and impact outlook From about for current $X.X to at XX% existing the a XX% the quarter. be which to million or day-one considers approximately phased of pro points increase a about X one. end perspective, the year

outlook higher is generally key duration reserves. longer a addition commercial time, impact attract factor the of portfolio home mortgages same level require the than a and will impact tend equity, auto when of is so the such portfolio less it macroeconomic is today. the and the expected the to Ultimately, In of reflect loans as shorter of does get reserves the At residential to year. and initial education, that end to impact mix both the we the duration

things our that a Bank. XX, I exciting few to are On page happening want across highlight

X Since in mortgage is while last six hard customers. the that in survey, to relentlessly positions to moved Number colleagues ranked real a on work the XXXX we focusing Satisfaction survey. First, J.D. done we Mortgage testament which Home integrate American, Power up U.S. have year, our Franklin our

We Banking are also to just be announced we’ve partnership entered into iconic an to a with excited new shortly. that very announce company technology Consumer

will commitment this later We focus the of customer to launch program, provide strong our details which more another on but experience. around this this the quarter, of great and example is innovation is

really In our commercial, the end expect progressing clients and year. migration cash of platform accessOptima, we platform. About half we complete the the are with the be to our client transition well the by best-in-class are of to on management

$XXX targeting about a substantial million way work $XXX to run And is of our under XXXX. million X benefit is the program, by TOP to rate in addition TOP mentioned of which pre-tax end on I which X, earlier,

on Our for fourth our it bottom reflects both disposition outlook the XX, for top quarter line continued page and and results. is

an should but view offset current as further to result, October, in we NIM that net the fourth we income interest less relatively net rate stable loan is rates. a and Our in due contraction growth expect cut be to as quarter, expect additional

for by third we Also, focused commercial loan stronger as client reflects growth strategies. a of period-end quarter coupled geographic, student other and continued well moderation and and driven with product pipelines mortgage, trends, in outlook utilization Our retail. healthy pay-down as growth trends, expansion expect our

from revenues to largely Strength last mortgage We offset are fees. decline be expecting should level quarter. a market modestly record capital record income in from down non-interest the

expect our we continued expense down. to non-interest Given to slightly on expense be discipline, focus flat

the CETX ratio expect with approximately increase we Additionally, by provision finally year million, about expense end and expect to of $XX a to XX.X%. we

manage we demonstrate run performance, our To up page against sum continuing the expense as technologies strong we bank. and customers results new grow this carefully base, execute and initiatives, on how deploy our XX, our our strategic quarter revenues, improve

turn me it Now, let back Bruce. to

Operator thanks Q&A. some it Brad, for open John. let’s up Okay,

[Operator Instructions]. go ahead. Zerbe of Stanley. Ken And line Please we’ll go the to Morgan with

Great, thanks.

that betas First job competition be you competition that easing? on other quarter, banks costs We’ve Bruce, increase that is of know still that imply really that next mentioned this you interest-bearing I some all, great quarter. does deposit heard might expect aggressive. deposit deposit to from reducing of your deposit your

off. start I’ll go Yeah, and ahead

natural rate had I there maybe, talked a it of when factors. was I is a and September, you think if mean, six it's operational months. a have three that number lag we you cut call in a lag, months will, in just like to that we previous it deposit calls,

did And so you impact increase they a betas cut, operationally XQ, deposit amount September that we cut through than from to and this we pushed costs therefore, the that to as going and interest-bearing XQ away get as gets deposit see from by further decline expect into you, actually of quarter. larger

had And I address it is cover energy guys three positive. you credit you can what higher this charge-offs terms energy in seeing We exposure. quarter. energy Okay, from a And I second perspective banks mention a just didn’t know your which announce other question great. at in all, is portfolio? then my you’re But your certainly of just that

so Ken actually working Yeah, now. energy We’ve little our over [Inaudible]. a for exposure year through been

total are down to X%. NPLs down, they are about our XX% NPL Our of way

lot a through of them. structured we worked and So

lot have that's Our service one don't I other oil our a distress. it's about in looks overall banks, and think portfolio happening of the sectors. I know a low that is very but of It field of in things down the we the and services have other like portfolio,

are it of tend good midstream incremental the distress. distress pretty are be we any and comfortable bit structures portfolio, we see a RDL structures the in we is don't although – So to a

Alright, great. Thank you.

go And question to with Please the Pancari can move next John we Evercore. with ahead.

morning. Good

Hi, good morning.

I quarter up it's you XX% non-performers wanted credit. commercial of a were uncorrelated front. color if commercial small on linked noted see the can that bit more a to I in your little you release number the know credit and give

maybe you industry, Thanks. So can sizes types a just as bit see of wanted loans detail and the on to more if little the on well. us give the

Yeah, that take one. I'll

charge-offs quarter. have the did a couple we So of in

was the of and is basically small credit of position mall a future. One restructuring the regional exit divisions that net the which hopefully at sale to the near out of real ourselves estate charge-off a with in

wallets pay Our amount non-pro a given there is a forma used thought take is do to don't of ago. we the move been sector, for a the which now. well as think a credit it significant dynamics took There as of charge-off significant we is restructuring. flow working all than the we when was non-performing making in one able through, to the We that credit were automotive there is and We which that linked cash capital non-performer, year Company. can was back a non-performer we've

Don with add down that allow one QX. to to close resolved, first back would what having NPAs in credit, would fall on I we're which mentioned that

more John good like generally, portfolio. trying about and there's are to any I trends feel we earlier. the identifying We We think move off think we're we portfolio. issues We're certainly aggressively the think as addressing the I risk. future feel said, them in general them

that have So will any through we portfolio we to try significant... move think anything

Good model. be proactive. Yeah,

your remarks that's and areas. they making areas lending Okay, And it, more that Thanks. What cautious, see prudently Bruce, get cautious? in indicated then you got do are it. of got type you're you what in cautious certain you being

here, kick middle conditions Don I parts can particularly competitive there’s certain of general think throw the I I'll that to some as in in very one Well, market, market. but well, but off

we where aggressive relationships to grow on competing and up we're one. spread but want we're so tough a to and there competition situations non-bank there term book try our that's customers, or take of tough to being the situation, so with lot a our not have hold We

I and also not think some a proactive areas exposure, actually we're we're toward think good and in certain I certainly we posture being and exposure like taking have restaurants, adding momentum reducing there. there

I'd around verticals. our specialty and competing upmarket and spreads effectively out of in We then mid-corporate. moving we're say growth, So being it's edges some the seeking areas of disciplined just better get there,

we'll we quite indicate think pipelines in there so also look that to see QX, return some overall growth loan in a I we QX and commercial see growth did and think in good. will So our we

elevated pay in have line QX We refinancings, seen downs, utilization. lower

though fighting of against in pretty in little we less think a we're are pipeline. that a but would terms a originations, of even we nice strong had and to that to see we QX quarter So see bit, I expect continuing

Don, you add. can

sense they Yeah, more I'll one-to-one seeing were origination, quarter. little that. two-thirds just this ago Kind give of you year of we our a were to a about basically

So from pay the we hurt originations new got side down. really on

I think a it things was going combination of on.

deleverage think the anticipation market in general, middle particularly next the we uncertainties I in year. people for see in in

deals relief obviously buy portfolio, in So debt. down. and on back capital there’s they people our that as to I or utilization going in core more There’s is the not on, putting many some just the as are not we assume of not going many special are dividend take saying,

going is that some so sense some our loan growth we've keen got moderating, forward. Our now of sense of

portfolios challenging XX%, that down. by As of but restaurant Bruce mentioned, portfolio, are the down the about are fee working working we with and we some are

lot core. on on multi-family but that from estate leasing numbers our our working trying we're lagging standpoint, there's so basis. We've the letting adjust focusing of the purposely portfolio down net down, are our it’s real a things a a actually and to We portfolio been portfolio

you've heard years as the next about, the years. two see where in talk returns over we and adequate we BSO actively John don't involved to are three And then, say

them the disposals have, Our sheet. consider moving off we'll balance we

and book-to-business we've feels feels it investment the search new from good in I actually the in can at on industry grown good, just trying conditions us, on there's And specialty the that an that people and I future from a it So it's standpoint, we that payments make terms standpoint, people loans as just for we think competitive, are of areas there of both and know, terms out in is we a regional load run. pricing to so the business a very overall going are standpoint, tell well. [inaudible]

questions. Okay, thanks my taking for

O'Neill. And next coming go Please we'll in go with queue to ahead. Scott Siefers Sandler from the question

expected Good bit I'm you morning, Maybe hoping guide that's the a question. fee a some can fourth taking for first guys. finer little just you. the quarter, point the the drivers. Thanks John, for put of including question on for of

You the million to but pipeline the I hole markets guess that, right so MSR guess substantial bat curious, hole. a I million it of in benefit, could given a a I'm kind pretty just up off $XX be mentioned capital there, or $XX

bit Just takes curious please? a you can puts about talk little if more the detail and

can into mean at add. outlook look Yes, XQ, the down out I XQ; sure bit at soft firming off were in here capital to very I'll a looks XQ be point XQ as strong. that more a syndication start think we I that, markets When see deals mentioned you up that $XX is had and quarter the million. the some that others quite little into have we in we fourth XQ, main pipelines quarter of of a When to quarter. push was we

XQ we meaningful that being quarter. and that the area flattish to XQ in to an fourth from and see was look was advisory M&A up significantly

now markets. this out we at look we're early for at So our say we really rebound capital pipelines here, would of I'd a in how to part in looking in and well the when it XQ July, early nice the tend and that pipeline play and looked in at October that bodes

that bit services a that fourth charges into and trust seeing should are were mean expectations that And and mention XQ that you'll going quarter there which service also I I investment the to in quarter card, nice think think see be market choppy in looked I you our further. conditions trust, had will I know up a that impacted too. improve

into will an XQ said, largely mortgage impact as decline. all the that we couple a of that different offset it's to tend have So levers

then a And just you. broader thank question on sensitivity. rate perfect, Okay,

the want wondering what company's in sort is could sensitivity whether as all sensitivity the long-term the on of volatility back a of bit but you goal you pulled little be? You mean end comment as this quarter broader kind an well. where this if to just of asset to I'm there's at positioning I rates, thinking the rate point. rate it's tough obviously given just a on

Yeah, our seen I and us down we've think think year the I that pick mean asset you've last on front. been I prudent over sensitivities that

bank a to you a derivatives and natural As techniques know, commercial has asset sensitive profile, other that and dampen profile. the frankly

position the place. think us would stable see end converging will of you I sensitive I So time, close even get in neutral toward and a cycle a we you pretty see, think getting we're if asset toward to low-to-moderate as the so over maybe as we

long-term like exposure the historically that short we end our curve. are from and the changed have interest rates. of sensitivity do low to We view We at a majority the

that exposure year last the the long majority of of end the curve. now is the to Over

general of a we take So interest end on the activities a and and the will off mind, that with with table our in we've we that curve income arrive have that and view that's asset time should just hedging some line. the long net sense sensitivity over executed

happened overall which its know, a you by provides nice rates third lift what quarter. is mortgage revenue very the As lot, a declined in then

how at third to So revenues the you the not power quarter. diversification not that and just in of overall just our look derivatives we it, preserve sensitivity We try income. saw it's net and our on interest

Alright, thank much. Perfect! appreciate very you I it.

queue Foran Autonomous. in got go we've ahead. And with next Please Brian

interest going then morning. the you kind is, but the of mentioned margin catch a know Hi, to thought And say all will a to assets seizing, back still good wonder of that because yet that could lag bounce is get of it's guess you there school stops, there is I the conceptually have bit and that we're let's you're decide banks on of immediately lower deposit stops re-price the rate XXXX that rollover margin once re-pricing rates. assets that, of you just mid net if one and know another Fed Fed worry when in up. actually I well to don't fixed the little

it, or Fed think not the be, of still asset kind the what re-pricing stable to of you a some about pressure is rollover? going up is just stops, margin for into yield as guess actual conceptually, on on getting roughly when I the basis the but the margin your bias deposit points

I'd couple of I Yeah, tailwind. Once lag think think provides get you the a to I things. mean, mean helpful. say that months, a and mentioned I three deposit that's I six you

I loan think where rates are. it matters

provides the so an on front that gets As split the net and earlier, important with book, rates part a end portfolio. right, buffer. But aspect. fact the that we dynamic, Fed given of dealing you we quarters the could a the I and to I the get fixed impacts it portfolio, are call if loan the, back that portfolio and loan a that's see yield roughly the mentioned over fall, fixed curve, interest cycle, end two, you're I XXXX, of mean, the XX/XX think three, part think we with book up deposit positive impact floating margin some that in five when four, I into floating out immediate

And if cycle. NIMs months as six to we lift beyond can on end, long see to stabilizing some see could months Fed a get three you you the rising moving

get the some some even or here you of luck I So stabilization I you'll over the those when two, toward think possibly next end XXXX. with and dynamics mentioned, see quarter

in loan and XXXX. actions I in in XXXX, expect BSO go quarter so that NIM fourth sheet, to then will a accretive more and that terms we that would balance as in other the also The if is our facilitates and be the get hopefully side little able of kind thing we through be of that of which to to we add more kick the growth, loan sustain

Thank you. few One on just provision that a the negative What you people I've talk want to about but lease like or million down? through, of loan small negative the Can lending? provision ask because one commitments. weeds, lending unfunded it $XX XX that this supplement, page a million and a unfunded $XX drove the I had don't jump into transfer was more drove for a was for in

Yeah, looking for our the question and supplement. at

at I didn't look it.

it me. else to Someone out pointed

then you had unfunded part built So over happened ACL exactly overall, it provisioning over it the the We fully loan fully of as [inaudible] yeah, it but an was you unfunded a and that that... time law the where got the then reserves it's was unfunded an to driver we funded the reserved, reserve while unfunded get of will, reserves and of on transferred transfer if is reserved the is the is really to loan once all and in the transferred mentioned. needed

was of credit. letter Exactly it backup a

Yeah.

Ultimately and moved over. drew we down it

think I the there because they analysis moved them, as well. released they Yeah,

Thank you, Bruce. Great!

Sure.

we'll in O'Connor that Please with Deutsche go ahead. to Bank. And next question go come queue the will from Matt

Good morning.

good Hi, morning.

obviously the were talk good the this of the you you Fees more strong granularity income you think against important pretty some expect drivers. and the on on quarter, term, mean about growth from just the gave drivers. here obviously Thanks. some you on your growth some out interest to given of can of I I'm trying the the generate maybe quantify fee and magnitude looking quarter medium but and thoughts you it's fourth can pressures incrementally that

Matt, start. I I'll think Well,

acquisitions that's pretty think through high-single much reasonably how with we've we've John pace been growing course growth where and management we've investments those of standing the markets And period. building can about up the in just digits, we're the we've commercial benefits of time, global think the out when interest but that shops M&A business, probably that platform, traction business, and pick loan gaining cash I made and and investments over robust keeping hiring some reflective fees FX reaping bankers, rate been up, in great own I grown really Of our investments. of

think, be So was We on commercial is of I air would to see continued an bit to a expect little QX side. a bounce growth QX quarter. the pocket. good back going

the consumer growing. had a time we've harder side, On

in light and looks folks force we I particularly issues. coverage the some of addressed we refi business. there's think lot in very but We've the mortgage, wealth to and the mortgage, wave. think acquisitions I really sales being can investing building I of organically do able timely done, we've with those that out catch that and think a But been in

surface potential building scratching the more have. in correspondent wholesale we customers and the of of So for its that it's terms tools really out

So I there channels market think we out. get can share nicely our grow branch continue penetration better as add our those into to and we very then

XXXX. But I we is continue and even continue levers market half into to, refi the a to other through gain QX think the So growth high though I in think that And off we're now there with of some wave, that came will early further the the mortgage and of frankly share business. then, more looking the to thoughts to acquisitions of -- we end of do side. address wealth on pyramid with the in while high first terms

range digits we were and the to in and So years mirror, the you that. least on the growth at forward going slower think average a when set know that, probably commercial think we consumer, goal of that's out to think the we to number would be mid-single do we could continue if able I a in rearview certainly then

That size wealth course, elaborate of type the did to? was be on maybe think the open just of I relatively you modest. deals helpful. you you'd that Can

on what financial if these better I a get of sure mesh things. that you us, that's Yeah, can with has to you described that I I smaller, is a need think can And the get great and terms. attractive fit make all think we little think going and we've handle all is those culture to of strategic well we buy good really of a it company deals has bolt-ons

achieve objectives. it's three to harder little you bigger, buy those If a

the still I smart, these category. think more bolt-on deals So but in you'll consider would

So you'd to probably need continue our to business. do several to up scale

Okay, thank you.

we Saul will Please And with from UBS. It queue. go can the go next Martinez line in to come ahead.

morning. Hey, good

Hi.

more rate stays how the mortgage what of assuming it's seasonality to in normalized wanted should volatility can but lot to is a you and – of long income, we addressed this, end I color know run this know just certain little think more bit price I the a and you've degree, So and at. give on there's where for a then about a curve

is strong, of revenue $XX You million valuation had I very gain. production MSR which the think

what we how only think that? to beyond the As should could we of in going and trend quarter, the about about sort not forward, that it parts think there but the fourth moving just

right, say know of for the call go I the you third here, down Yeah, basically that three, thanks could a then MSR –you here. had in of in across in down right, the forward, P&Ls you questions, but I'd quarter and we break fourth P&L bit would John going quarter second servicing the net when and when phenomenal than it’s the the into valuation where the quarter. quarter. each was so quarter second production quarter, economic three talk about you production a I see higher production hedge and in it think being it We good the coming

in high, stabilizing than So coming that. growing but those level kind generate the and of what excited a about higher in production, platform. Very margins, integration at maybe production, I strong really we've those the we revenues of think is past seen which how off just important strong Franklin we're to really

So of P&L. the that's I see that part how

a a platform they comment of sold were before part routine servicing say operating we similar it. where by being P&L, previously the with I'd this that -- that the acquired having is UPB was on

they're UPB servicing P&L. fees our So the well on and as that is that nicely, as servicing recognizing growing employees

and control platform touch direct the give its and of to over and data on us full customer, stabilizing using servicing rising excited -- that. about more insourcing Franklin we're is access P&L that completing in-house’s which bring will from integration so was we're the and in-house, the it So back to

hedge. course net of the one, is last the MSR then of valuation And economic

we quarter, the will benefit could swings if something think to During did. and see When to to future. there you assume I that the were quarter and when this hover positioned large out. it we we were positions moderate that extremes, in time past see widen That's to they over tend we get spreads in mortgage more of

that for And really asset big job hedge We've we managing with otherwise last we we've that jump what but the the flat volatile managed going on lot, on. it this I net really economic had around bias well the got platform, we've to will think a of solid up fifth. thought -- a four is a the into of demonstrated a quarters MSR

And Brad, technologies you place. new quite might the just exciting want to delivering add because think the what's a the in taking and we're that business, little mortgage bit some it's actually I of innovation

to was that. do going actually I just

in I'll thing John. also one chime Just with

spot of thing and the of around and great now, industry mind, period keep us it full one to hit you think for gives I time. optimism on in a capacity right quite is maintaining that margin

in good our are origination So we've capabilities But made, the point perspective. our from margin end that Bruce in a we front mortgage put invested so and business, platform. the signs digital you onto heavily a new the digital

past This applications quarter platform, business. somewhere through, also opportunities but direct-to-consumer older more side the which where efficiency front-end gives us along direct-to-consumer -- the a us build to come the one, for the digital gives of opportunity

integration and other the platform good our starting rewards digital application. of with that end over digital a in I investments digital just end, the well lot think than said in the reap our extremely we back the mobile to gone capabilities business digital things service on seeing environment. back we're invested transition capabilities on and that of the We're as rate a you of slate. of customer’s mean so using I the has a happening made to lot the and also servicing We

as Thank because and great. growth, over impact a the balance look CECL the gears CECL, I a at mean big you How we How into ask from growth of that a higher has growth from a the loss question the and could originate load you, do color. than that's loan light standpoint. reserving relatively provisioning we also two lending portion tenures not coming is to of is others, your I mix tends think a XXXX? is on higher large year, those if specifically. that If coming or great do one and deal it the capital last about day longer from it loss impact education, either switch John loan a think retail you outlook day of other That’s and shift provisioning lot about of content in obviously loans. on have

first adopting I will with just mean of early think affect know quantitative our for you standard I this real we outlook kind come us Yeah. out so where in January.

models. we're things, we but that and completing more mean I So caveat to of the continuing parallel couple also I all of have runs our work our and would do validation say a

with book over and January. that portfolios the forces back reserve is longer that think think the longer we're life that with being entire big to way all about. big entire said, -- we're fact duration, So those you back asked there I early the have of in that those with the have all duration that dealing two we are is, of loans for dynamic we of the to a are have One book

and then balance banks, all accurate back is And going us is book the up entire provisioning are if future, really our reflect really models sheet. that and already a forward, reasonably so for the question the which really for big is behind on

Yeah.

book is will reserve front ledger, side the So the your which and other book to likely through you that basically the of left that run. originations P&L, front what have put with the is us all the of

So benefit existing of to be book. handled zero against magnitude you by going provisioned loss of the fact to no the is I the front the is would that in probably standards have closer an under already incurred the longer back think for now being of provisioned, portfolio, and if ratios book the portfolio otherwise the gearing which will, been model

to negative And I play is neutral the itself that's out. think whether that's varied with positive, portfolio answer by respect or going to and

our add would that to to that I strat what say three-year just that plan finished working in we we're through and Yeah, is July.

that interplay described, portfolio So front three dynamics from then standpoint of that book the overlay portfolio between years. John what you how back out the next over an say accounting play by book, and does kind those

We sense. as twists much at accounting they say to and that economics but may make might economics that not we and of longer of I There the we're with. something tweak the loan may version day your something, a a offering the be end duration the would contend the certain are product have

we that obviously we're some get when and able guidance think you we’ll to broadly So it, more I in feel it. we we'll at analyzing our the January top fine it but through in take we're in do on then working next about and detail, call, it of be

helpful, you very very Got it, thank That's much. alright.

Yeah.

RBC. Please next And Cassidy to the we ahead. of go Gerard line will the with queue in go

you. Good Thank morning, Bruce John. and

Hi.

Good Gerard. morning,

since Bruce, correctly the read have you had in to a success the good I quarter came understand and I quarter down in business record markets press third the wanted touched on the business bit. was second that I expanding and zero guys revenue fee if capital you on growing release a level,

So two quarter fourth business into run this maybe questions; hiring And prior Is million to up then how grow bring a into you you more to mentioned guys going you expanding the level? strong it is one, to for you a people it take or that that it can lower? $XX rate? geographies, compare quarters, quarter. very will or pipeline second, pipeline what higher the Can is

I'll that. take let Don

know, about of activity. – new about commercial bank think I'll talk lines for you a the I combination

of we saw interest last strong FX couple quarters. commodity activities clients for the hedging and that mostly running levels in rates So incredibly at for

So rate quarter; on us that we're and they hurt continue. benefited and seeing the capital this side, that side, a was on market currency little us volatile interest

generally was On the was play market effectively middle finance space. capital closed a happened bond of in as this that year-on-year we activities of great September, And laid the side exponential. through out and was last market and quarter market the the opening rate summer middle saw an middle a faster. We interest markets saw back in in this the high-yield market the for leverage on what the the lift we changed for six weeks that all and market

the to begin I all big to said, a or over area let as in. advantage M&A really So being opportunities, that next we've quarter allow us that two the in growth acquisitions to in think the kick got who themselves take place the pieces of

cover the today look a core running this we've very been M&A – terms Those quarter and of very, pipelines So fees. in between up attacked strong. should go significantly core the

which to is transactions quarter, hire plus get of strategy positions is, to allow business start you this take those selling or larger fold. on even feel us our new our underwriting, should One a or activity So in double couple trading high-yield would that high-yield triple.

So that of the is side high-yield the business. not

our reputation in we credibility for syndication over build capability transactions and base. and financing four seeing loan a leverage building as been our And we're comparable with We've little years fourth and more on larger general transactions our all that second there and investor think activity execution a quarter. this Whether the in growing of quarter, I continues early third it's quarter, the say, seeing we're to in first is those elements. upside but quarter, key clients

our do we thing buybacks. trying is other are lower to The

mid-quarter time the IPO, and finance vertical themes. do So as need said sectors industry we – and at advisory strong new in got to very corporate the the time, we we've of

and now only with So five the engaging it's couple years could are about years, and report credit, four, to around clients, will in complex provisioning had it we we've advice financing our was transition and ago, I a you last that we way very the it's saying [inaudible]. of much

interesting I think lot as you’ll time of conversations career in in we're very have with a and our any seen my just client base.

momentum. a that us So give should good

Gerard. would I just to that, add

shapes on line, quarter we're us so hate think before. far a fourth $XX of the million quarter. quarter that door markets, $XX this a new be but the put neck on quarter to I a potentially capital knocked have we not know up to for that You in million I away on record my record – a

in But we make that to this all there and of a healthy to think the don't incremental lot there's investments fruition. really we acquire it investments get that M&A hire of require we've new would not To we to people a progress of is to not, continue order to have level that revenues I then another in a drive I need some continue boutique. made, next of cover, to the over more and are is kind would to higher or think approach come and that how year, the to open that need markets to business.

looking just all And to combination board, of question early to you or further earlier that are IRP in are the and we to that they're look early at early close up into particular, the when October, our Gerard, across July point up underwriting the pipelines, FX, syndications since and about October out. just bond whether in pipelines M&A

many announced; Great! it's BBT indexes. more myself you thought SunTrust the the deals at look color. nothing’s be when Bruce, BBT obviously to investors all happened. were merger, And outperformed Thank But going and you General since the stock, the Bank for

the market transaction. type supporting the something So in it citizens consider that could looks that future? Is of like is ever

big to – on you've that answer going anything if that spreadsheets, deal we'll I of our to that to York a the and did but look that always would say get and is proves Well, mesh happens. you down depends I MOE, and cultures think the I've stock we're shareholders, of part see the the personnel so whether consider benefits the quality one be always to Bank well, the did you a been when New deals to make announced good it right great decisions, the execution you fundamentally then so execute had in Mellon. And and comes and

a the some technologies run investments. customer foot of right on very to expectations, better now, our I Bank the X of with continuing rapid in new program, of and period we're focused us on very on for our we're focused TOP very terms change think in front being strategic we're and

path stakeholders own staying exciting I our a on agenda. our we really for carve current by really can that's think and fulfilling focused

of in your all over off current to a and risks involved transactions take agenda. the be is of you ball eye the have really it period getting in where distracting be One larger can the

Gerard. few So those mean, I are thoughts

candor. you. No, Thank I appreciate your

America. question in ahead. Erika next Please with comes go from Najarian queue Your Bank of

morning. good Hi,

Hi.

Hi.

one Brian had earlier. just sort I question. asking what what follow-up was of It's really Foran

next to So as quarters. I the think as few we about look Citizens what's out unique over

of terms you've of driving do obviously have accelerating your done momentum upward and it high deposit business a second, costs. work and in lot know you You

And quarter, on beyond NII worst-case year scenario about the growth, still think and I'm the fourth should Ellen. we as good for curve, So the right, about economy. feeling about the good we stable? could trying be forward you're are think that feeling next you loan based still

think growth will be take in you the XXXX I – – the out you our the January, have mean, what neighborhood broad be Erika, a will on been for come its -- which contours, range, I in correct. mean, is at think X% for or – you has percent we expectations I GDP. relatively specific two where if above John. direction, that think we'll I it loan I But mean expect I about with year-over-year, NII. think when

side of fact see – tightening of things, some starting us, deposit high in amount that you'll and when we're retrace to of So a margin fourth grow work mean, were the platform maybe in or were betas deposit better amazing that did we've done doing that the work quarter rising and we the that want that had to as some next cycle to an rises I costs to are we the but continue we we know to levels at that's the year, here we're betas itself beta. to similar interest on reflect higher, continuing aspire deposit that you and for on net all have the that

deposit the now the been Frankly, cycle trust through on outperforming we've side.

we we in consider in quarter. you I improvement almost in They're fourth cost a meaningful quarter so think paper in did did outperformed a expect interest-bearing Yeah, third have quarter deposit we going a and the second then decline. the the that we to there the and can trajectory we same did

excited we're about So that.

levers I to… you're about, stay So but that will tuned. the tend cause key think try that kind We stabilization of talking to

X, January on for good you did try a Catch open a bit. up we there. to little Now,

underlying so sounds if pressure Yeah. deposit with happened seems from you next what's it just costs stable your way taking I like relatively quickly, the like with is so seems you're the a far, down timing from did, odd, – not quarter stable only it pressure potential understand the October, like for. but

off at take but Just guess I how wasn't a now. I'm looking to color. myself that, appreciate not I that's the that, so That was I question. I'm to asking queue actually confirm just the you going

questions? We hear questions. other any have want to you Do

thanks that. Alright, for

Okay. Sure.

of line next go And to Jefferies. Ken Usdin we'll Please with go ahead.

on Thanks just Hey, sheet. overall guys, a good follow-up balance morning. the

Citizens non-interest guys we're the and You deposit bearing, growth the come of accounts good have down the in term and to out. Access market against and kind starting shown money see deposits really then flattening obviously that

Can flattened just talk you kind you Thanks that within and that I out base just forward. So through guys. earning balance how and traject guess expect us of be expect given where look loans especially just as mix rate securities and here, just still just from to and how go asset dynamic about have talk sheet that the overall the mix growing to to is? you'd

bit overall seeing and year-over-year to I a you're we deposits growing than so think less we're – at that I fact X% mean continue Yeah, loans the that.

LDR reasonably. quarter, you the XX.X% So down that's the in look third at ratio around

year-and-half so did – ago, So to year-and-a-half were a have or might year about or they it a going do ago.

as gives our we terms So strength that's quite is I liquidity I loan able deposit optionality good, sheet the of in think pricing position of than we been greater us we've year. has growth remained down. think end how of to really into playbook head That how costs and in drive Deposit part of deposit execute growth. the the solid terms balance

generating You good work doing of in been saw deposits. terms we've the that all

trends year-over-year fund aspire On loan something fact mean... over that's will to fully that the about the gave but range we think we or color I will deposit time, so, that's growth, loan continue accomplish side, X% I our and costs you during that that to

focus them would we're we've demand that our customer of peers. them, Ken I color and to customer outperform the demand analytics really on we've want using quite made accounts. door, the data might getting Brad, on to but there really able stay to pleased is that's the grow color so we're and some in accounts think of gathering in growth then fueling one up they is I and that and experience some the that, retention customer add you been in and add piece and investments affluent relative targeting that mass journey, them,

you've Yeah, nailed I think it Bruce.

in proposition, with focus a customers, we've has the the mass our client, I think our in and customers active which non-interest that are value relationship there we the than really we're improve and score us were ability improving in we're with done getting that our about the we've target has that and talked them net really past, deposits. growth quarter-on-quarter think and bearing are the that investment what's that's given showing the and our quicker on satisfied right them much to analytics fueling we which attrition promoter deepened affluent more

for Understood, one the securities follow-up that. thanks And book. on

cash X to basis at this book, we point, interest at then? flows from securities the Thank happening you book, to just the the So you versus the mentioned for able aside point wondering could I'm premium hit premium net reinvest a that the if margin. where what's you. was to try isolate amortization back

think million I front a have , off so. of mean third book $XXX run here, million in thereabouts within on back million securities I quarter. the you've it or got neighborhood mean the or book, and back positive front then reinvestments and trends that the Yeah, you I'll call still $XXX $XXX I book, book

are job they point where in and So hint investing higher. go a the a during it's quarter at against I reasonably good feeling this little our think like done cash the point of the deploying and you We've – cash backdrop. that holding

some powder time, but rates quarters do a our the big moderate to until all hard have it's then the been holding that we've declines mean and put given to in cash I couple we a Yeah, of of bit work. all we the

so positive, So points still said, it we front back book, portfolio. got a book call like securities or on I of XX basis the

stay and rates realize we because rates realized basis roll to? one to like just go that increment Thanks. you zero basis there any gone on continue if quick If you is if premium premium as headwind does an the X it then. on to just that away, expect, just one point flat, a it meaning goes And lag where have forward the to of

a hit quarter-over-quarter, of drag think outlook, is that you've Yeah, I our to such from going couple XQ. I because think points be mean this it, the was increase XQ there's I an factors. there to relatively quarter of was stable that X basis

XXXX, that for we'll that etc. XQ flattish get over maybe Our to you be moderate on current XQ. XQ, that again no is rates to with, back back And then longer XQ flattish from that'll therefore be from but so a to can time, to outlook know you outlook will that rise. later,

Understood, you. thank

Okay.

Securities. in will Peter Please with come next queue The Winter of go from ahead. Wedbush line question the

Thanks.

to guys the implement leverage be you forward? cost investments delay just are X going operating you'd to initiative, plan positive maybe the get you TOP there ensure generate maybe of ready As any to savings or willing thoughts, that some accelerate

moving and eight we're launch, and off, work streams, as work this individual we off they ground get the soon go thing seven a with of basically good streams leaders, to number already or trying and we're have ahead. are to as first Well

green the that streams those two the and given on in have will we'll more launch we've work of So already, fourth light quarter.

accretive Both program is of away. TOP right the

streams. be has The then where one bank for the to turn the in investment we NextGen that; the on value That reliant, want then going But running they But can as later. and bank in of doesn't is we work somewhat immediate we've places most is and we're of probably as the tech disposition our it's customers. get really, of deliver those things are It streams come ahead, moving the for reinvesting rest the quickly. the how generate how any it terms it really So the savings. would move requires stream some long got savings is to of critical. big work

some to business our of program, When or and we're new and also we to so TOP market bank those further and strategic customers cover announced prepared more make expansion customers merchant were lower-middle and access, or small about through digital and our the point-of-sale platform X services assessing that digital working finance talked we we ways with those. include applied data investments

so I IPO will probably savings gauge and fast fast think come is move and I streams and would our they the think this on those we those positive really then be we that do we based the of that's held overall trying since operating we've exciting deliver environment can ability to to have, year I growth macro the through to, we how our medium-term really that commitment investments. the the next that an also for on because other have have those, gauge drive us. of think and leverage, some lever hope they're objective, But revenue to on

improvement guess of still Because Great! obviously out, helpful. you different and when ROTCE? the profitability the to rate in originally terms That's continued when gave I'm assuming much I you're really that see targets laid the in environment look efficiency you've expecting I so medium-term at that is then than profitability the and

only mean I get really you're that's way leverage. to operating is the it, drive the have Yeah, going to to

keep holding back also is, One that curve tensions obviously could going some tailwind that and little back of abate, bit concerns that the be to the trade in into are to next eye of long-end is economy moving the the a of year and these a higher. if things on result your

That's at portfolio actually to been of the OCI has a of actually value growth basis look ROTCE, points a flipped XX you crusher when year-on-year in bit of because in growth ROTCE. the securities the related

had that can if to So actually you on throw the back, equation. back the you right new end long

leverage but there, drive of reach yes, of terms number forward operating a goals. key ROTCE there's to and continuing those commitment to factors So in

Bruce. Thanks great. That's

question to next Sparks. in our Please go with ahead. will come Vining go from And that queue Mosby will Marty

about, you talking but is, different tangible and and is Thanks, details you investing grow spent there's value. that equity, on all many follow can we've comes tangible to metrics. at time it banks, this down so the last dividend that how yield, third One look question is how -- to other basically, return can question. three When fast good common in you a really intricate that’s

was been and tangible everyone XX% pressure, counter your was that. which ROTCE one book while talked statistic the is then year, over under your growth So that has the about last value of

say or metrics that over at forward next, on XX look three to you when months a given credit have? downturn, do it, you those the a we're call So we moving those where have let's see XX now right Do credit how those three environment assuming progress you or metrics we metrics, very event let's the see don't months is at positive.

wanted to that. I in your valuation on those reflects metrics, get deterioration take so think just some the

driving getting so and mean the objective we reflect will function we to book to a of if payout we to value and is still the I ratio bad we okay is yield ROTCE should a XX% and our stock Ultimately share are committed raising be our a to yield wouldn't down, price. be dividend think be but driving tangible positively, certainly and payout that, ratio, improves, go would that. execute able the the which dividend stock Yeah, the XX% stays thing. obviously do If well obviously higher, the do I environment the or per to

into – to want I from very to minutia a type John, of then, picture a very big question. And dive so a

down, on one consumer what the commercials are we're while impact that is allowances those for are day is seeing precipitously the more have going Given who negative going sea-saw and that consumer. up

come to those over coming go possibly is the day to now commercial as volatile less to and commercial when going right the in when having getting cycle and the because the two is lumpy have What a go and in we pieces, we their big in be low to out, is, how cycle big factors of get impacted through I'm pieces tend those trying consumer if consumer adjust are versus through you losses XXX, into it's at economic the less cycles? you in because

Yeah. the We're this new still I would will about and our how standard models say developing work. intuition

sides. think there factors of are a both that impact I series

support you're truth. impact of I reasonable tell on portfolios projections to meaningful in will both just the and think market I the time, prevailing has revert that the of over you expectations how conditions think

is go we've of to I difficult a our is the a across for going frankly it's of where standard reasons time, scratching believe It going be lot to very institutions heads P&L anticipate to time. impact been one necessary. be compare to this more It's all difficult about why period and over will

something said, two to we'll say going that volatile. the as be deal to that that we ball portfolios know economics that don't is with All have – ready of our earlier, keep and as are I of necessary. impact you something I'm we one still that the capital heard eye to less that on But

to the any either portfolio model in could which this to period in loan I the disclosures finish given think speak validations, January, of that quarter. tuned here and and that volatility as are we significant possible frankly our we'll out as contribute in continuing on stay the fourth do we parallel their it's happening

Thanks.

Sure.

Alright, Ellen?

think I operator? Yeah, --

further this questions at no time. Yep,

Have appreciate great for and your Well, good. dialing We thanks everyone rightie, in day! very interest today. support. All always a

Thanks that does conclude participation. and conference the you for Thank today. your

now disconnect. may You