Citizens Financial (CFG) 17 Apr 202020 Q1 Earnings call transcript

Good morning, everyone and welcome to the Citizens Financial Group First Quarter 2020 Earnings Conference Call. My name is Alan 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.

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

Thank Alan. a so us you much, at for all. the joining Thanks end of very week. Good long morning to

and Head Don morning, which John provide be will and you CFO, our And Head can this Saun; happy our will we and overview Woods to of our then Consumer Bruce Brendan find provide CEO, First questions. Van and reference additional and outlook investors.citizensbank.com. of an Banking results Banking Chairman at Commercial will our Coughlin, McCree, to of are of take also course here color. presentation,

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

our important non-GAAP utilize utilize about also We the presentation these Instructions] and in appendix. measures of reconciliation the [Operator review financial on to information the and so it’s Page X GAAP the to to GAAP measures, results

I over to hand with will Bruce. And that, it

everyone, Good and joining Ellen. for morning, Thanks, call. our thanks

representing midst times of are with We the in enemy with an the that’s lives with unprecedented our coronavirus and unseen people’s havoc wreaking economy.

to supporting As a services large functioning economy. customers smooth through our role in challenges regional an these in play have bank, essential ensure we of to and providing important the

to I date. is occasion. with the am Citizens pleased our rising performance to

the have to access ensure modifications on with government to programs make crisis. the borrowers possible they working best are on chance loan it through We to and

line balance $X meet strong over billion to in draws. commercial We have used our sheet

branches individuals We open to businesses. serve have kept small and our

compensation. staff partners doing and colleagues must In doing. additional our our of what responsible to should precautions provided we communities protect through million in small we to we to remotely, times. businesses have nonprofit these those for corporate taken grants are citizen them $X report work who with be have And difficult made working two-third and and have have We help short,

Our a results financial to an had revenue strong performance by the March. very and we in QX heading expanding quarter by to excellent loan good prior COVID-XX record Nonetheless, mortgage NIM. PPNR disruption towards and faced in growth revenue, caused was

our This a If $XXX of had build $X.XX you loan million charge-offs $XXX significantly course, standard in lifetime a plug provision, the on new $X.XX the accounting have of in led CECL costs we charge-offs. to as or quarter. over QX, portfolio But would a given macro representing environment. the about recalibration losses changed reserve requires credit million

underlying in TOP such, our quarter. $X.XX. was of so program notable We reported tied costs, EPS As the $X.XX was items and our to integration $X.XX Franklin had EPS

many than front-loaded more modeled. is this Now, have analysts

QX, recession will of have provisions more take We would more a by true, balance followed If is is our the V-shape normal a deep us U to levels assumed over recovery which economic the sheet provision and say, strong there great CETX a LCR strong enormous good our a higher. deal over We X.X%, uncertainty we outlook. XX% with balance at a have liquidity. Safe at to LDR is recovery be shaped, in in the XXXX. with contingent feel of forecast, back that position,

strong we of Our level confident are will balance share XXXX. steady of $XX tangible value per the and PPNR book at over held we a sustain

recovery. the suspend including should a strong for balance to U-shaped economic share maintain ratio repurchases decision Our a varying through CETX XXXX scenarios, of

reminder, discipline. losses peer on portfolios a And information significant provided DFAST average. the in We deck. our have as credit better consistently credit We than our granular our a been prudent highly believe, maintained we have investor risk credit have

we that continued all XXXX. the on had up progress have to initiatives strategic make for We teed

fantastic of BAU a new making deliverables. done and COVID-XX-related job environment Current sure opportunities. our hitting with presents have key risks while dealing the we colleagues crisis, are also Our

ways our peers. into the with these of for looking coming than are to our We incorporate strategy an stronger towards crisis eye out

cutting challenging are drive future growth. All not to and back investments acquisition on in all, time. customer revenue designed We a

We you your safe. things handling and are families are healthy well. hope I and

to a that, it And Brendan With I’ll let Head offer now me as welcome our turn new to of Consumer. over John.

We from morning our strength. entered position Thanks, X, Page of navigate a headlines brief balance unprecedented of Bruce this and a On overview everyone. this as with crisis let���s we start sheet good environment.

after loss ratio the after $X CETX our drops. example, $X.X in quarter of credit X.X%, billion allowance and experienced even increasing for stress approximately line billion we of of March, with a For ended the funding

scenarios Our versus fourth quarter. ACL And loss as to peers. is share well book at value end of $XX which stress was our to compares as per nearly stable to X.XX% tangible quarter well share, loan per ratio

LCR. be multiple were to proved record ratios COVID-XX the equipment compliance we while Earnings categories. Our negative the of XX%, level fee stable and LDR resilient fee in PPNR with with approximately we in revenues impacts generated in at remain significant income, an observing as

we X initiatives, transformation investing the initiatives. our and a committed including to result, program TOP portfolio revenue of As remain in strategic strategic our

by customers. while impacted been Moving to difficult them been have some we will to pandemic, Many of this X, directly assist risk. we of to mitigate still time, Page the have are cover appropriate our the our during moving and ways swiftly taking supporting customers steps

an about small commercial on in pace commercial far, our and of retail $X seen businesses. down the loans we’ve line about March, for funded loans a line considerably. of we number A So slow delayed draws about the payments defensive of position draw XX, prepare April customers they After draws. as to have we Through taken initial weather X,XXX lost clients storm. XX,XXX on to billion

literally Finally, XXX FDA we companies payroll smaller and have than day the program night with less been facilitate to protection employees. for working

the loans April have XX,XXX companies applications FDA. with As billion approximately that registered we XX, $X of received over from have in

our billion X at the approximately the $XXX This previously communicated was reserve $X.X was million X steps: also to million, recorded build year-end. was from of duration had commercial of of cover portfolio Page Retail effective of an longer to second included the $XXX X; XX $XXX a $XXX quarter loans; part billion of allowance loans by impact allowance to an to at of March X allowance ratio increased move approximately credit end, unsecured ratio million, X.XX%. X.X%. $X.X day Let’s the ratio faced was first as while At provision CECL. portfolios X.XX%, ACL in million January of loans which million quarter charge-offs. first We or $XXX by the losses to had loans created and for

summarized our a scenario, reserve of estimate. We aspects key which CECL of also have the the is macroeconomic foundational element

the integrates Further, various efforts scenario. economic benefit on GDP high for At second XQ the to alternate and plays over recovery balance factor requirements we XXXX scenario of quarter in followed V-shaped assumes the of the an a by COVID-XX in loan March support out, government as scenario steep our generated being in this year. scenario. half the for included provision If end, Moody’s XX Due account impact to and move internally drop of incorporated portfolio. baseline, longer the at effects we are a If for the outlook, impacts Moody’s the government could to the deeper looking we or are recover, the require of U recovery less elected or takes economy or growth. programs which expected provisions. to our customer pandemic uncertainty also the the effective, fully scenario an In adjustment continued our and loss meaningful additions base a programs are assistance to to of use we we pandemic economic our general, L-shaped back

X move revenues backdrop of model. reserve X. Despite on of diversified bill, margin COVID-XX metrics. of fee highlights the our and benefit results discipline underlying improved Now let results and pandemic and me the liquidity We our record income net and strong had covered business our and to and highlight interest our funding the operational and Slide CECL-related

saw $X.XX reserve For $XXX despite and wealth. impact And of build and which record quarter, environment. and including EPS loan only X%, growth was X% $X.XX, million slightly seasonality. down PPNR driven of and reported $X.XX COVID-XX of benefited by linked driven a headwinds growth million. was of spot banking challenging X% average the impact year-over-year down were helped strong $X.XX year-over-year growth, offset and we COVID-XX of up NII the results We quarter, record the down rate balance $XXX more mortgage linked sheet the fees impacts quarter which with of by the of from

also We COVID-XX impacts. before and markets performance capital in FX and underlying IRP saw strong

and by well as X% net day as benefit On as interest-earning benefited X rate income of Page basis the loan the X% offset the Net yields as widening linked X, mix asset linked quarter was margin quarter more challenging spreads interest LIBOR/OIS increased environment from points mix. of growth increased and impact count. improved interest partially

proactive XX LIBOR deposit Our actions points. yield which as basis XX pricing produced points decline X-month an helped dropped mitigate headwinds, curve costs, basis in

banking by categories. year-over-year, and Slide partially to XX% of well and and Record fees Moving stable banking services a basis, million impact the value refi trading margins. of On but another $XXX to million, which sale up strong loan impact HELOC levels basis. fees, of offset COVID-XX, on as quarter income by other mortgage results with the were doubling linked quarter, in $XX assets sequential relatively non-interest a as the was the on on in of on markdowns XX, gain mortgage investment fees linked trust and record customer-derivative achieved shutdown improved in included a total and fair volumes reflected

decreased of another sales from Market fees as impact driven posted X% managed management quarter solid investment up million $XX trust in fees and million marks market levels money fourth the million by Capital of $XX declines. sequentially, on trading strong assets. Wealth performance loan record with offset $XX services

the term reduced rate million product lower decreased including $XX Foreign record reduction a fall revenues interest lending million from exchange CVA volume. net a given by levels, rates and and quarter activity $XX fourth variable adjustment caused in from

non-interest by X% compensation. higher compensation programs. higher X%, Salaries or efficiencies the tax given mortgage linked reflecting impacts, $XX XXX(k) to were investments, partially the were seasonality Turning expense largely non-interest up the along quarter. and which XX, expense reflecting million tied increased compensations, offset largely to revenue-based and seasonal our of X% FICA match impact our up Page benefits annual with and and generated merit was TOP employee in from quarter, strong revenue-based Year-over-year, growth-oriented originations

tied were on up our loan loans Let’s activity now initiatives. up impact the Average Page quarter and loan sales discuss balance to X% linked of core before XX. optimization trends sheet X%

quarter impact the mortgages, billion. $X loans On loans up education almost higher During fourth the draws a the and activity in quarter up X% by Core credit period growth basis, impact linked commercial and million and by before lines XX% X%, quarter linked X%, loans driven were a an financing $XXX by average loan stable CRE. loans. were core sales utilization coupled higher On the which merchant retail in up quarter of driven with non-relationship given linked in loan we of commercial partnerships. additional retail was sold growth in quarter, of relatively basis, increase end line given X% strength and reduced activity,

a several our deposits Moving Page the end up and period with years saw made we linked enhance benefited past from a of as nice growth. X%, average were X% keeping to loan year-over-year X% On expand deposit pace basis, investments quarter growth we’ve we and to capabilities. XX, over

all manage our channels, savings retail down to across managing CD down the digital costs commercial in market continue and money rate and deposits bank our aggressively. We taking reducing rates deposit promo rates,

basis As XX down a interest-bearing costs deposit points. were our result,

move Next, Page let’s XX cover to credit. and

and compared points increase largely risk. commercial, driven ratio The and of in non-correlated pandemic assess COVID-XX quarter, fourth $XX linked the linked non-accrual points the XXX% came tied a in in to basis of NPL retail. X with charge-offs in for an in increase first XXX% XX loans X losses XXX% commercial, million measures XX basis basis a identify Nonperforming improved decrease The impact points loans a quarter, in up XXXX, XX% to variety ratio by partially quarter the areas linked from few Net at increased the of modestly XXXX. up quarter to the continue quarter instituted potential quarter of loans offset We by ended reflecting and credit modestly year-over-year. and increased the retail. of of a higher monitor allowance quarter, in points basis at to

geography, our The portfolios risk prime weighted our to been refreshed FICO across consumer, average and FICO of remain with basis XX% the XXX on portfolio borrowers. remain in our XX, Overall, commercial on of and equivalent real Turning we Page asset score grade a the terms is is industry a under highly risk have what better. and disciplined credit commercial is focused estate. appetite. prudent or year-over-year bond improved prime highly ratings of In of approximately and on in XXX, we super and and diversified investment class. portfolio has portfolio XX% Roughly granular retail ratings we peers

been have selection and around are seen on and and We responsibly that sponsors very focused in prior cycles. disciplined have client we perform developers well

on important And with scenario which, or Slide manage results we that to line it’s in we well better DFAST believe, to our the adverse the indicates positioned than company prices. current XX, peer are also that note performed severely run average, relatively

by commercial commercial low been impacted of nature in On highlight COVID-XX Page shutdown prices. that portfolio, the XX, along have we diversified with immediately and areas the most and energy granular the our

we across a think XX% towards done approximately these the that with perceived on while of tightly median. that the we be our portfolios, vulnerabilities, portfolio the identify for on more to risk, or tear monitoring. total dive risk. sectors peer taking our the have some Overall, steps of factors factors highlighted individual these through sheets the the risk loans. mitigants flow each commercial provides that cash customers CFG majority the we Together, and to helping in portfolio we detail manage slide concentrations consider are to of of account of an to deep on these more percentage largely appendix We have areas challenging are these at additional We’ve liquidity and to eye industry below times,

scores of collateralized. the XX the on is and Slide FICO to consumer around Moving the on are side XXX XX% credit, house refreshed retail portfolio our of

high of as would refinance portfolio, and we So degrees co-signed. advanced just InSchool education, the borrowers the got areas has have FICOs the unsecured is in education been and In briefly portfolio in concern, on about workforce for very of XX% ADT potential co-signs. the have the XX% portfolio, sharing I average. consumer and of book of The unsecured for includes well years X some subject is of and of this very driven the highlight again And the average high them been Vivint, platform to largely which short-duration loans book loans merchant important $X.X billion portfolio by note Microsoft partnership vast that Apple as loss XXX the [indiscernible]. arrangement. $X.X and installment of to FICO billion scores has our It’s through majority remaining is on one-third

details As included with consumer these portfolios we’ve appendix. commercial, more on in the

liquidity positions. as strong feel mentioned, and to kept current positioned environment loan capital well growth moving elevated pace strong Page On with XX, through manage with we growth, liquidity steady. The previously our metrics the deposit

would with that clients disruption substantial cease diversified we a end strong the that are clearer, In as meet our the pandemic have do very funding support of levels and we capacity extend deposits with the they have we to March, to through We announced for through repurchases crisis. more share the profile demand. the capital a and becoming base ensure manage extent decided to year loan a strong of to

expect capitalized level. and to We the the well to maintain dividend remain intend current at

into the On Page to that are turn a XX, I across things company. few happening want exciting

stopped not build working focusing better we we on a company. clients, to While our foremost, have first and helping are, help

strategic the are initiatives forward that driving so well positioned our emerge We future. on for we

We crisis. opportunities transformational out drive effort while strategic are moving programs major in arising forward execute higher also environment revenue initiatives, current with and from our considering we to growth of the revenue to coming new an are the continuing the TOP on

to given affirm guidance. of an for of XX, PPP start level Page of to impact the we net higher full categories V-shaped output a no income, we predict year. future, the to We deliver for it’s full the half XXXX a to challenging with reminder the to pandemic, includes key want in can the Moving expect see which on some do, program. modest and currently XXXX more Nonetheless, we the longer our year offer commentary benefit year of recovery in the believe out play that back growth we interest however,

that loan than of strength The non-interest mortgage to income rates. growth other strong as NIM meaningful stable COVID-XX-driven categories. expected more now offset due decrease will We a broadly expect to by in is offset is in weaknesses be

half be the is government variability outlook programs depth and modestly expense has the efforts. stronger The for impacts the mortgage potential depend expected upon production of recession of will and for expense XXXX. fees on in the from higher of and which will second pace to tied lending compensation recovery and pace of in and up customer greatest given the includes relief Provision Non-interest the magnitude COVID-XX, XXXX depend recovery. to

growth strong draws impact programs to like At actions education and demand commercial given increased driven deposits, the expect see increase and time, in We a anticipate in by PPP strong same the as the we liquidity, low line higher merchant financing. retail and rate loan in commercial, Fed heightened as of with environment. well reflecting government

of Our recovery to our ratios income, coupled regulatory more as in strong the above RWAs. buybacks economic to required the under Even year-end, suspension minimums. capital ratios scenarios, the with impact higher net offset V capital than are remain we of expect current more from strengthen and through severe levels scenario, expected

XX commentary some second Page to the on level move high let’s Now, for quarter.

be depend down Fee growth sizable expected to low mid-single low more on mid-single-digit reflecting than be up NIM. impacts is quarter. digits pace of decrease card to We and be leverage range, to operating COVID-XX net-net, loan will offsets recession to recovery. the expected the strong depth in service we of But NII would on income in up Provision a to slightly mentioned as expect is expense the charges, in Non-interest positive impacts earlier. the fees. COVID-XX other expect expense and given

line commercial, and of we government increased programs draws Finally, expect impact demand the reflecting loan significant growth education. in in

are Our capital, funding to and expected remain positions strong. liquidity

To these focused well in sum up, stakeholders are we for on on delivering our Page challenging times. XX,

balance leadership We team occasion. gives base we have sheet and strong rise a the will and colleagues that to that confidence us

me Bruce. Now, to back let it turn

open John. please. Q&A, it Okay. operator, let’s And for you, Thank up

of ahead, the Thank come Van conference we Erika [Operator ready And portion Instructions] Najarian. you, question now Go the the call. Mr. will first Our for of line are Saun. Q&A please. from

Hi, good morning.

Good morning.

Good morning.

you am think about provided. detail does that U nine all out how quarters? potential compared we a so W-shaped parameters I scenarios wondering the during economic rate that for you pandemic of X.X% over are loss imply a this the DFAST as the Thank have playing much or recovery, cumulative that to

Yes.

$X.X So go is that I think – this that to ratio and look reserve ahead Erika. the really I that when the when will and how creating. mean, positions big look on for for – are we us loans just that back internal we start at the the and X.XX% cycle, last that our way based well through well time billion cycle I picture we have off which Fed it the at go how went process. you XXXX estimates of we coverage positions us was also look the And XXXX at much upon our you

scenario around those estimates. to numbers through the of front, coverage I would been of that the billion on the be similar cover a today. represent adverse a and there’s of the we’re to that other go adverse going numbers rate what on And $X.X you of sorry, just Fed analysis scenarios – So XX%. XX% fair internal our and in amount pretty The look our adverse environments aspects if scenario, to are and in terms would am illustrates the losses at few Fed $XX back that billion

– better the will Fed. you we do If think than we

from estimated we would XX% scenario have we consistently We Fed have coverage our if had have issues even the models, the that adverse of back models gone look favor, at were losses would lower But remapping that in be then. and the we’ve to Fed than indicate.

Fed be You out. if to would around are where is maybe similar our comments loss a maybe fast indicate XX%, in which forward given about our peers scenario believe the there adverse XXXX, – what we than coverage was going think come we better would to even made ratios the some to severely earlier scenario

And we see maybe if that So well. and positions I that’s us will there think very stop responsive.

is Payment wondering much magnitude net the second margin And you decline starting Protection NIM I does if that pay interest magnitude, help quantify it. the attributed by a we if be assume quarter that the am Got and those how question my point to follow-up in And XQ? could off of in third of be at quarter, that versus could third loans quarter higher would mean Program? that

it’s good question. a Yes,

And the would quarter, the the look way that, start in, from of in the given haven’t is will first you spread rate impact really there the XQ in all the cuts widening an second I is environment with narrow we So expectation through out quarter. felt that it the LIBOR/OIS off rate itself. of and

be down, LIBOR every and we about respect expectations the across will in rates, the so impact end. would XX In of $XX NIM. that basis basis indicated see with points general, long end for so NII curve, or past, you short both million And we’ve points, and the to XX it, have call the in

you X.X points. neighborhood million typically is that and help of triangulate will And that so in for $XX – basis the

you if a teens all for triangulate maybe of that will give low you rates. the sense that So to impact

draws. is we you PPP mentioned, as mix aspects that will look the We’re large dilutive. XQ the is to loan seeing the be, mix other rest in in portfolio? have our how isn’t of a at PPP loan the other and in What underlying demand reasonable line The program

our that indicated and earlier. happening benefit. a provides merchant education That still that’s we finance actually in So portfolio

still those think margin and you in significant interest So net of when but that be things, second – will a quarter. there the rates look all decline given meaningful at we in

the And moment NII at expect through we’re account you looks all if third cycle, flow for think about on we quarter are question which your planning that the if like the the line. to on going given forgiveness up could there amortize contractual that earn – the third the PPP, some this of to of fees we be intended to to a based grant about loans loans weeks X maybe expect after The to we’ll how PPP you that the be program the so majority date, forgiveness, is forgiveness forgiven XX a through life funding program. if being over

You that interest in would quarter. all driving third would quarter, then margin NII see that into margin, come net the interest reset all third net higher in the

And on are be I volume. just but because to contraction. also in Erika of sight would offset that add, NIM, should NII volume the fact effect lose you NIM don’t that commented the calling of The we up QX,

for it. Got Thank you questions. my taking

Okay.

next please. will line moment, come Zerbe. Ken question from the of Your One

ahead. open. is line Go Your

about you you internal really using baseline, did I your you than Moody’s talked guidance Thanks. own Great. the your are the Moody’s assumptions. appreciate first a how little assumptions? about severe they helps own also you you tremendously. gave Are own assumptions there, weight it Slide CECL I much bullet severe Moody’s just versus less are out put Thanks. X on or talk your and using you have more you your but that about assumptions? Can internal more bit are I think on The question saying just

of couple on that. A Yes. thoughts

maybe I overweight equal punitive to is internal slightly the than scenario our say, So that Moody’s is scenario, that baseline X/XX. scenario. would has more think this I The

books, think, At scenario. one that there. the X/XX Moody’s our closing was was was Moody’s really another – I the we time were of the out have most punitive that baseline scenario We

coming So we one still slightly less but than pandemic-driven. another had was that – that punitive

really we on majority So the focused general, X Moody’s baseline. but in is used this

variety I mean example, and our it. to a on have GDP scenario have internal unemployment. had would scenarios other But the unemployment associated lenders other with The XX%. down an as gotten up with we XX% this of X%

So that give a outcome. mix here, why inform and we helps scenarios, how of a think the is there just we and using multiple we’re amount you uncertainty, match which to ultimate significant is for sense

I would be we trying add, as conservative that we too, could. Ken, were as to

very a account, the we’ve on watching that to moved exactly conservatively. our little taking moves, more at – say – model where hard impact it’s into I’d that been and by think into I reserving forecast scenario how late Moody’s has say what this translates point. certainly It’s

we just think see we play look have more that. before to at could data I out

currently and there’s little So deeper, case is groundswell starting out be if that the case. a just I’m the recovery I reopen then a the for the is the like economy that bit, could the which to We looks recession to mean extending not which big is ends certainly have either necessarily suffering. everybody sure pain see. given

So we’ll just as and quarter. the have factors to watch go the things update and then back of second to end those X get we

Like, things the that something assumptions us a it right to help from, the and I why but a quarter, pandemic, is maybe you example, than get I the good including the step? other next another there make given the economic that of to your fairly majority so U-shape large to if does to made understand assumptions recovery why sort sense would quarter speak? models? provision really period you one really have higher you higher the to mean just there majority seems understand meaningfully Can it then went on just vast you’ve Does same before meaningfully of your revision, better, for you’ve why first not – negative deep would takes recovery, And recession. the concept, question – but is, great. the provisions. question, higher vast Okay, slide, mentioned the – guess if say that U-shape made provision for I my like, already you’re could is a be the let’s be of it bad, that

answer think, it et Moody’s as did XX, instead XX was XX%, out, Ken. March and way, this eye-popping that’s certainly, seeing it GDP we’ve on XX%, one – cetera. has thing I since numbers this Bruce I we it’s Yes. Maybe April mean mentioned, think updated, I we’re April, that notice look I’ll of come And some earlier week.

taken I but the a thing, length something of very would we’re I It Moody’s slightly, think articulating that, if of think I it’s would strength. one is the a with the – consume terms big of increase. directionally think to positioned downturn what whether way about allowance I would, At capital a to two potentially depth would have And GDP X.XX%. X.X% basically of is loan scenario ratios, this under the is is about in would that’s occur, have in to around to be a one remain even one if – it those picture, we And to something capital to but another think the aspects even stable update up would our capital think that I would were of up that was another. way certain stable that to like to which And nevertheless, this scenarios. of at broadly opposed coverage that our quarter, up on – as are down slightly ratios U the to course, our handle XX%. broadly get end is

companies clearly, operating work specific individuals. I would open there’s to it takes customers. and longer to so start to revenues why, get serving as to back that an And more your then if question Ken, to there’s more don’t collecting clearly, stress quickly, just stress economy, on And add I’d and on get back as can’t individuals say,

puts and you. where just on would recalibration that the see have you to do So that

it’s think possible. I So

is think we input. which see have did board on I and first to case, underscore that. in how a our big But ratio wait much and point, capital any we’d put strong the to have John can is we’ll adjustment on further quarter, make and absorb based number in the I the here think, good

in so feel we put both strong loan And the what capital from reserves meet maintain coming that we demand and customers, can we if need good to away very need a position. our we more still

very Alright. Thank much. you

from next with Your question Terry of ahead. McEvoy Stephens. Go line come will the

charges in a income, with say, was outlook. bit you Good cards. know thanks. mentioned hoping morning. insight on your into, markets? mortgage service I I Hi, starting expand and Maybe thoughts fee you quarter and any But capital second could

mean, another I and quarter I in we’ve think off. start and go I’ll record that in Yes. mortgage wealth. record seen

mark front, the that we Markets having exceptional an an before quarter frankly, Capital $XX top XQ. of exceptional on which had of were the in the quarter million took, impact in we trading loan On quarter,

had strong. We excellent XQ. quarter is in mortgage still outlook So quite an

early operational increased strength that across in our be we’ve seen industry. mortgage... capacity in we’ve similar a the really, although of things that first our and the I they were can April, in source margins strong we’ll may what have driven not in issues quickly. of given But levels early and before, execution XQ. all quarter, a as mean And have to seen quite financial been that the up margins lot volumes frankly, never as expectations performance certainty, we’ve think from it’s I are days maybe and move has

market And allowed us to share gain as well.

really sales, been taking manage declines. frankly positioned Absolutely. across market offsetting channels, which It’s And well. that’s we’ve money see. to in able wealth have really our And we’re to uptake share extremely us been all nice space, the is our there excellent

And momentum that dependent. it’s then had on we’ve really Capital so front. Markets, market good in And

some... are So those

perspective let comment commercial. further Why offer consumer? any Brendan don’t the And offer a you on then, could we Don, on

Yes. challenges John, having Well some the I mortgage, are on said, as non-banks well. think,

your expect So to some margin share we’re make widening out, in swooping comments around and to continue. that supporting we broadly

is pipeline extremely full. Our

and mildly QX. LOs through QX our growing into We’re

to expect mortgage to through extremely strong be continue quarter. we the So

in fees transactional overdraft pullback On QX, March, both end to XX%. but debit leads the was line, on service the charge less to down our That’s the debit volume transactions occurrences. at less XX% of also driving

to that expect half to some QX, but and I strain covered really QX that’s on charges. the think V-shape with our so QX QX, towards and aligned do the that. story John And recovery broadly for we add a service recover putting of guidance won’t anything through back I well, So wealth

mean of there huge are days. environment. beginning Yes, is think, will couple markets, be we’re the on low the I there encouraging the inflows signs the general, to of couple funds into I uncertainty in last activity deal in see. high-yield a capital over because But of

more high-yield to try issuance as garner liquidity position. buffer their seeing We’re more companies actually liquidity and

a very to restaurant also be on they boutique So and firm you’ll remember we M&A that we’re this now. bought from restructuring little happen focused And quarter, businesses. benefiting that another bit

and rallies some quite I’ll swaps loan there. businesses just garnering our that about are of and And that seen already as on putting existing both the So actually activity books we’re the the on mention market, to opportunistic right restructuring flow And some reverse high-yield leverage the those now liquidity in take – advantage to we’re also IRP see of beginning strong market. market the actually some current in seeing swaps position. companies talked seeing we’ve I’ll as we’re John XX% actually about, by

us of that’s back So already. some come to

but So out we’re we’re few cautious, life of signs a seeing there.

Got you. Thank it.

Bank. We to will with of O’Connor line go the Deutsche Go Matt next ahead.

morning. Good

market should been more show but your as there ongoing and concerns. are think Obviously, concerns couple obvious these credit years, we performance some a think be I here versus we has take others? not question, But the some today are better sounds obviously, the and entering that alleviate credit that details in you credit we is of But payment think an your this quarters, chance are cycle, over risk, on. of you there’s that internally the others. to worse than I it a looking than what And metrics like provide credit evaluate that peers. So those out your at deferrals all several to next going the should estimates is

straightforward the would of wondering as you that? as about but may and at be kind not it think frame traditional So trends, how look

Yes.

and grown have there had the said we recession. recession almost for a many, I’d a to here I years you recession. and prove it, and But be get to pick we won’t that shop really could we inside just quarters start that many remember we had fast without you just wait pick wish so are. and when – then it’s can out well people But because and perception careful John end on experiencing we then for it did be me say, up. Let happy wish almost what I

feel good, think we super returns side with profile. house where prime, appetite, with of really So really, we’ve moved I very We’ve prime. portfolios each think those of risk can even the high on stayed we first we get risk that conservative the a spaces off, good that conservative have, consumer risk-adjusted we into that

good And pioneer think, that where we gives in our growth merchant in unsecured return of rate and refinance saw counterparties, very think, then strong have with credit which, market, so us is the sharing business a we us also, one you of lost arrangements grow, I the those explore education such And risk-adjusted very also financing place. portfolios.

And Fed of so obviously pick have up. the doesn’t that understand the up, to some pick and modeling that ability and we that

on end better we’ll think well side, performing than I do I better than the think, up So and expectations, consumer peers.

grown actually we’ve with as those in – and space, that be on you’ll than then be would book, the tend so highly I that, that that. the bigger us more have hopefully, similarly, of grown And and companies. companies, think, bedrock watching commercial, kind should And the we on the rated you mid-corporate we’ve deliver to customers middle-market bigger faster customers see be

be through that again, make there, hold period. banking, should in trying disciplined industries that positions well this stay trying also we terms so diversified, are the we’ve I of our And we’re sure to very when us been to – go think And benefit granular.

I the with real We quite know so to they’re In list we with, have – or with want know treat operators. a time. benefit. provide think we’ve of well. we banks that also counterparties a that we We tight of their should long for also done think And commercial that they business good estate the and areas folks sponsors, think kept deal

should those our you’d time. favor. over that I looking at the So I then same at in work be you’d portfolios in think And look guess, also the things charge-off rate

now the time. I proving – anyway, will we think So is

So maintained we’ve ourselves net higher the equation. how feel our interest and on done about returns part how an we’ve good make risk while BSO discipline the better margin keeping and repositioned and discipline we to incredible of

be nevertheless, that, activities metrics. we more it have all cycle you monitoring I mean, Yes. forbearance just always to to going guess, I may in mean, I’d down, engaging But Bruce, the lagging. Maybe given this we’re charge-offs will in I that break think, them. even lagging They I in. to been be past than add be the about asked

As think, across which, an positioning, also reserves balance the to you we I just on an highlight eye the on total diversification think was today. sheet and I we maybe keep would about X.XX% loans, eye indicated, keep that. current the

where in And areas the retail well. diversified or – those then you And things, as and in very cards. of in distributed XX-XX in very mostly businesses it’s concern long commercial commercial are consumer all that of around side collateralized, We percentages for books, the of a it’s we have classes, into retail. different are side, on book geographically time. not low of you are one of asset right low understand overall go all on whether the interest collateralized several not the terms And and when areas dig each the we been across

We’re in student.

cards. We’re in

a personal there’s and secured finance merchant have We and product.

So we think game name that is of the there. the

current the metrics. are those So

past; levels to back trying down time and which in and our which current. we than better of the median keep we been have comes results, over we’ve testing to really modeling, metrics stress and been increasing Forward-looking fared internal sophistication

X you’re are the areas want things the about think when thinking to cycle. those So I monitor through you’d

can just big year? And tests model some just – us you what rates internal XX, this you talk stress you where remind down bps that’s loss us, helpful you remind that Thank about or remind Slide de-risking drove just Can what that? showing going drop? all drove or color. us last you. that Was Can changes your versus XX

the underappreciated of I strength a the just mapping risk think, job portfolio. we’ve mean, things. I been of across think, frankly, I time, better that Yes. I ratings doing would to had, a mean, ratings was basically our the of over couple – risk there we

of so that driver was the a improvement. And

been were Secondly, then effect And over arrangements non-core finance which time, to merchant down full level. built content. higher It’s a had some the being of our loss portfolios, third, portfolio very gotten small in. dropping, in loss the just has fully sharing

were. things me of the what mind drivers the terms So to in are come those for that

well. up benefit of is cumulative also the BSO being also think I And picked as

Thank you.

Our Instructions] Foran lost is Brian will open. [Operator Autonomous. ahead. Go Brian, from question Mr. your your line Brian, be Mr. next with we’ve line.

Yes. me? Can hear you

Yes.

Okay, sorry about that.

markets the least, is, stock at I we’re the But little other Going at X.X%, thing a X.X%, unemployment Fed if it’s wonder the GDP, guess worse, that’s whereas I side, support today. hard be XX,XXX, to for it, could to speak if of stimulus. it I they’re a the probably to clearly, assumes more at a government like yields just I’m to put the at me little number credit broader impact and test, And sure while. back are but look going stress X% BBB you on to striking and on

of between So prices macro the macro when buffer the do think those minds? is better balance your input, the versus you about how but asset much shock the clearly, a give probably or asset prices, in biggest absorber

Yes. fully I it. I’m not sure appreciate

So you’re asking...

the as a if the in Well, the Certainly, understand Fed has as big potentially stress come that’s better companies I less least assets who signal think from in, I it, that is is is Fed the question playing they’re thrust here, playing. obviously experience long the at the made the of pricing up or quality stepped a has solvency markets. way difference is that and which of credit

our place the And modeling question, the of that reserving doing. much thrust that so question? that we’re the really, look that how and weight of do kind Is is on we do the we at when

yes. Thank you. was, That

the of couple out I I of would has when I’d from say that’s a ironically. mean, environment Fed current items distinguish it is the you modeled a the environment this impact. of coming Yes. there stress things, think, possibly see you – one that meaningful big

given outlooks. this the the have results weight and they massive have see to there, XXXX reasonable cycle So stimulus back in when don’t you to you our we that go

fiscal hard to is And of our front. of that get which the It’s that in. it’s monetary things on just the are actions idiosyncratic that model to and that are government doing also and all embedded. this ahead front the so internal actions, are very the we And not significant are

Like forbearance, forbearance.

other built we along being the the to doing, add those our meaningful That’s modifications the we we all shapes and and look important that where less forbearance back that earlier. heard the other at the those and are Like from all with you very to keep scenarios of target should mind, thing you from when aggressive distinction And that scenarios U-shaped, U in, Bruce doing a are how instincts support the that there. overall all this, impact. are are adverse so. severely I Exactly. are V is insights in in government. modeling, around and we’re efforts, stressful, our have And shapes

prior severely prior in that adverse such it a are adverse stays the it if even fall fall we so all creates scenarios GDP what long that could And don’t stress saying that all the by scenarios. and today, as as severely fact period time for low much of is

in forward have of you actions. our is and is to we’re have stimulus today, when the the more we more are what of numbers we also significant V-shaped, in support support and – we our stronger and recovery XH fast assuming internal So what the a where

cash the their tools to from and help have to toolkit then extensive individuals. bill terms And was out get fiscal in fast to and the very seen pulled Fed mean, say more. to they’ve of help added stimulus trying ginormous and it’s go though, I do companies the and the last their think, we I safe from has – out all never around

And easing hasn’t of The models. of to been of of in treatment so that. kind in to forbearance have off delta that TDR modeling we is prior terms really encourage that all another on go by don’t much

uncertainty just what why, lot of the internal second scenario is time best I are true federal more as and the go I So of the federal they this actions, through can, doing from picture government overall actions is kind from the that we then some and the just reserve then the clarify actions, think which of and all with modeling to need quarter. we’ll a both think, banks kind there of from offsets with is

capacity, about it $X.X you’ve ability quarters, year, the pull all $XXX quarter, of seems some over I a like the X capital, if of capital could think maybe of to it of next would which like in If over Is to, you on kind $XXX way I the your you’ve would got loss you and fair like more, the I I that million so some CETX about maybe seems needed it? I think relief you kind sneak just loss to million like it could it next CETX absorption harvest got then it’s a CECL security if something. have one or absorption, total speak, billion when to mean you dollars mean maintain PPNR. guess, accounting. gains into add up,

Yes.

ahead So start. I’ll go and

of it’s probably are we continuing ample would deliver just levels I focused PPNR. that strong say on very to

first versus I the of the see, in of first environment, year. over And of I lines quarter our defense. one the notwithstanding think think, to all up in flat change sequential good of And that’s ago basis. PPNR a that sustain we balance think the and to a the still ability level year we it a was close on there’s the quarter was

So basically that. start with you’d

we I then We rest but we dividend take could think capacity. the buybacks create the the And release have actions is on additional year. if secure, kind we’ve needed that RWAs think, some for of BSO some and to capital we also curtailed some of line, obviously our

if levers we’re and say CETX worsens, confident in together, good to ability situation outlook strong I’d put continue a very capital if to have position that that post So and very pull all ratios. to you the our we

think, stability just helping first across one NII to I is diversified I to of fees our lines defense mentioned Bruce and that’s across add front. that. in increasingly model And really of diversified the – business mean, Yes. PPNR, that on and

are mention you are take AOCI Our that’s just capital you securities, to helping I on of – from ratios, based that, were – that our would marks almost front. excluded that at mentioned we’ve given – exclude transformation but billion upon we $X where think it’s I also are, programs a unrealized. that rates if look in

in, as all the the would hold, is to you are we part sheet mean, want figure And to rise out expected ratios that CETX event And year. our going to to of at well. expect in the that that part the throughout if RWA look during the story trying of stable be year. strength you’re that balance our that’s to scenarios rising so I

So to to triangulate be. that you to of you’re that’s will get together, what terms and all responsive strength to – capital put dollars of your I in hopefully trying think where

thank Okay, you.

question. Next

next go Cassidy to line We will ahead. the with of Gerard RBC. Go

Thank Good you. Good morning, John. Bruce. morning,

Gerard. Hey

you to one going I again, doing you And think Slide you for some helpful And of good going non-accruals, guys to And I to make they’re it know do a but the an percentage there’s might purpose, forbearance for pretend be with go sure difficult forbearance limitation they’re question portfolio X, here? this how develop you doing into to and first, but the initially, of us not where on best, that? think, to both the that you that transparency actually very of of detail you deck are going Can permitted extend all will have guardrails loans so us share slide actually What monitor second, on ask are going is two your commercial on parts. the forbearance. the in is, I be – that you’re answer, not know charge-offs to or then into everybody forbearance, do to but for going to retail? and and because be that. of your us. is It’s give some thank the

it’s Gerard, So Don.

three On really out, of need burn a is maybe, they portion bucketed from restructuring the across to the detailed some and of are recovery there One, the relief payment small And – going an need covenants XX% payments. relief actually for we the or we liquidity but just in some commercial the standpoint. call cash done restructuring where clients side, extremely the quarters we’ve and bank, we the in call and Then that’s covenant then than some looks a portfolio, it bucket XX%, depending two think materializes. three vast like And that kind don’t commercial call into it, our majority maybe portfolio from analysis portfolio, of fine we restructuring less kind how a cash-on-cash very or some buckets. forbearance another, think, of X%.

will cash-on-cash at But very So it payment portfolio that looking we’re going number developing. at limited this relatively really people point, to a it’s be our we’re relief. of that really everything and are need comfortable in

the This about moment. X% is making side, on our of forbearance forbearance portfolios is meaningful of our Brendan. amount their customers of the are at we’re Yes, actually flowing forbearance and we’ve got consumer majority X-month those programs. What’s in that The still payments. seeing status are interesting cash a

And our a so duress yet. of safety customer we believe under not and yet large base net as doing is a percentage this

to analytics identify So we’re working our forbearance further portfolio hard treatments. to on sub-segment

another significant having that they the and XX are there some prior and And payments. got come to another come back interest XX into days, charge-off. those for successfully, through off lever As roll stress them we’ve payment, if days make the full that they’ll have their principal waded quarter through can’t for

of a of should forbearance make well. more programs for than to and the got support tactics collection customers variety in as variety collection sense make our alternative tactics a full other choices, right levers them we’ve shop So a our help

few the goes. next months see we’ll how So

Gerard. you, Thank

question. Next

Ken will of That Usdin Go ahead from Jefferies. please. come with line the

Meaning, Hey, mentioned ask how thanks. And mentioned they been the converted April, slowed see line we guys in it deposits. to be this less you are – of you draws about these shape has just little away start that XX% to to Or XX% – usage do about one that the V expect down you’re – fact, aren’t take the Good morning. do whether to that from in any in industry a are quickly? – do of that most on customers? expect is I draws those bit Thanks. paid going And and earlier do just the about the that? through draws, you to at we wanted the I is the affected. – other line if, used? that what being slides, had ask it might of some wanted how how obviously, and get sense if point is current just that the you get

we actually would say seeing downs pay I are Yes. some already.

BBB they concentrated. were in which size, kind I think segment, of draws the a of weeks is where the lot early in we pandemic the days say X saw first particularly preemptive of

liquid So the felt really companies, the concentrated draw, bigger sheets. frankly, they’re don’t in lot very sector. and companies balance a weaker so crossover to strong have of The capacity

of back. those X scale last, kind to what of Some than the is in actually, come more weeks, inflow And in seen are over line we’ve starting draw. we’ve seen deposit

And and whether just going thing garner where of and defensive of as very come behavior liquidity. there’s think was lot their were I those going on companies got to much let’s their as just a banks are be back. a banks, one, early this I heads beginning So to around, there, and lot then think was them testing

So back, what will regular be draw expect see to the of People is disruption. be market used periods we significantly. do those of down seems pay – beginning to kind And some deposits now. companies it calmed of we have go but way and to as right through

on deposits client-by-client we analysis make Gerard’s the why analytics and with and cash our are So would to a expect right. question. of I it talked can We see really sitting it track this about we are that did regular downdraft burn that sure us, really that’s

LDR we with confidence in thing, to liquidity the that who a I particularly that’s lines. there’s I behaved, did Ken, stay were well And going growth too, is deposit that away see think just system. the the from is all companies our important Don, the drawing good think, to continue nice

appear what Bruce, contemplating just change in Yes, the you types in And a already franchise? of a that to is what might I’m continuing current environment. follow-up, add regard? for wondering, you the strategically on – had think arising to been any talked do is of things assessing terms in excellent. you the And then slide, that just you prior opportunities new from about that

Yes.

to done have a or had with out revenue opportunities of the year, strengths our find way strengths we thinking, fair last amount that streams, on that we education refinance did we when rolled to X, we strategic our those have right a So leverage win, we some where new work TOP can where did with we partnerships. we merchant

And Access in one. businesses, Citizens then and next another bank, the business our level taking – going small digital to so serving Better new directions. merchant was SMEs taking some to growing was it

at of are keep more things But digital sense, there. how folks up upsurge and the we’re all think as platform. world the tremendous certainly, in using have online investments mobile changed and see a we stay has looking is people I those still continuing also we’re becoming home, lot make additional offerings, world our the to to and and there

And for so to deal the that they does advisers, the more now be with to affluent it wealth that willing mean virtual take offering business that going Does example, might mass what the for future? mean off. for that,

additional some think whole our we’re strategy. a going doing how of make way business at we through. overall brainstorming to play, looking just do is be do and investments just of the The we re-tweak how and So world to sessions different, bunch

Thank Alright, you, guys. it. got

go Go to next of the line Evercore John will ahead. ISI. We with Pancari

Morning.

Morning.

when you loss – based of need out, that see put so happened know the April so you the to that an loss and quarter, confirm comes reserve this additional for through point COVID? direction you of loan the books you nothing quarter will build second now reserve to after loan close post how this plays in build level there’s for the in to for your what assumption it the Just that your now the on

there. I mentioned have off as John, mean, will earlier, scenarios worsened. I I mean, start I Moody’s clearly,

digest what think we are we in seeing those I have to hearing and updates.

XX%, update falling with a of XH. I base we as from have scenarios, one XX% As – The mentioned, recovery GDP with later indicates our Moody’s recovery V-shaped in GDP we falling nevertheless on. still have

an We have internal.

books John’s were as week our Just about out to and mean I came scenario relates books closed. this that your specific closing it question

Exactly. Correct.

the the conservative and have be be last close. So this on I our I we we leaned back a time had we may it took. best go did a the and we we as may But and have the month that assumptions at we’d come longer, being think think that bit through reassess of at will in information to the that. And April, little deeper it think people end

to the context assuming Okay, in was you dialed in in. what alright. of that shape of of just put Thanks. Yes, the were recovery I wanted what terms and

CETX ran analysis X.X, was Okay. the resulting separately that? ran, stressed on – stressed in when XX you And in of your Slide that then output you the from what terms

Yes. of be a we scenario, in what using – adverse adverse The quite be we predictive, stressed prudent I submitted the in severely would neighborhood CETX. believe in we XXXX, terms scenario, and our this say I neighborhood a way, are CETX for severely guess in would X% estimates of in would losses, the of it of and which

Okay, got it. Alright, thanks. And then one.

little better. a Probably

I moment did of mean – in I at to maybe temporary We range if a you the ranging X.X% Probably between in X% a better. the look and little low go would point, a somewhere a that’s – quarter-by-quarter. X.X%. mean, – X% be probably but you X-quarter outlook something

Got it.

disclose loan against higher sectors loss risk billion you reserve of did you amount And that Okay. flagged? of the that $XX

we not. did No,

Okay Alright. Thank got it. you.

Yes.

the one UBS. Saul We from please. have question ahead line last with of queued Go Martinez

taking for my thanks Hi, question.

strategy more Have meaningful that, influence being will on have situation see of the perspective a how about inflections think example, and the that? that. and consumer you So of broader I of where all – change, think it that that a are in initiatives? make just to question, and on, importance meaningful we focused recalibrate it’s a and But might structural Obviously, if you And us what’s how on of recalibrate own much of going question. successful that in environment? question step you more how think any Citizens you front I – competitive a just just bigger during industry tool? investing you back be to behavior. I’m does the picture like wanted Access For could wondering acquisition kind to your sort – backdrop, or bigger follow-up the often as directly your about time now. how strategic think, you puck right will kind with strategy about more times Citizens Ken’s the important had client was it on in in addition – more these So take more of you the

on Brendan off one. that kick ask to I’ll

on one digitization. mean, the consumer acceleration of obvious the to the most I trend Yes. drive side, which is is that already was an happening,

all advisers. play, And an finance. of you which form pointed things. the got frequently, like a in a still pointed wealth digital to for effectively like got network, virtual their We’ve we peers, manage QX. view lot got our and Like some have Citizens but used franchise start that mobile lot go get future to to at so less should got out, Bruce of in of live beta things that national a in that money a being it in our those We’ve these I reposition on And how in merchant banking, look brick-and-mortar consumers platform on online investment it motion. distribution the of Access have as and banking we our we’ve acceleration things advice. of jump I in able out, coming a do significant

time in even teams trends So the on that I on are of all already position more. How think foot we rapidly, share capitalize strength get do consumer out could they in have in very level and market. are things front spending figure our to is because out some we be a to think we we situationally, sustaining. changing high of do how I with making of taking have progress we’re confidence these And very the motion and

some figure how So of on it which consumer out we’re significant that’s really side. choose of sort and acceleration, the to and to put to see ones pick those trying I

Brendan. Thanks, Great.

give and reference lot true-ups? loss maturities, out not quarter Just do average a one the because a reserve peers, to a commercial. And was have product longer loan I what a consumer reserve. any little type on different some remained across which book a if quick it would V-shaped and and allowance with recovery longer you follow-up a for this spread think But from vulnerable is of – reserve on of most by build loan lot you CECL have do are your your will points helpful seems recovery weighted other really types see we and did think then, you higher given content segments do

I’m of curious So about rates like if just to reserves? those how of build reserve greater have think should sort the we to you were evolution

Yes.

a mentioned, that first very I I materials, what the being in associated – what loss gave our versus maturities terms a punitive what in out. basis that the is, you drove lot mean, CECL of some – we of XX with points standard breakout the of on think, or XXX longer had we I have So place mean, incurred as of – those called drove them. categories some have –

a there loss such place areas higher at as driver, a unsecured, returns, content, InSschool on. is where and as an you to there’s would higher area keep look also So other cards as be but that’s an that eye

out Page me those so X the on are that jump And to XX.

less that a up content, X I top On some those little the areas commercial on Page XX. with commercial inside front, loss of are but bit the the see maybe show

refi? much I an Why don’t know is it’s InSchool than higher maybe answer. so obvious

when the mean, – mentioned that on workforce been type I are relationship average these in quality you versus basically high think pretty years, on comp little risk, great that being a X-figure that high Brendan maybe Yes. a comment borrower. really and FICO, credit InSchool can – opportunity, of is comp have about is people great with what we the X earlier, think, but deferring. this, average It’s I

XX-year parent maturity, XX-, cases. thing calculation Well, in a I guarantee XX-, is there are but loans you you’ve got many – mean, have kills in the really on that usually the CECL the that,

portfolios, We on answer necessarily So always on don’t not that’s give doesn’t delinquency much is the portfolios fact, those all any that would CECL to moved where you that’s immediacy And number charge-offs but those in high. will why think yet. have we has expect. you at

it’s has really before seeing that so early we driving they but graduate, we’re too. And InSchool early Remember, duration. there, a innings That’s are watching we’re the what’s extends far, so deferment – the liking on portfolios, where period CECL duration also what difference. those X-year

you. thank Okay,

Okay. I up. got to close it

So day, certainly dialing and Have well. stay in everyone, today. good for a thanks, support. please appreciate anyway, We your and interest

ladies that for you will your Thank And and call conclude conference participation. today. for gentlemen, your

may You now disconnect.