Citizens Financial (CFG) 19 Apr 222022 Q1 Earnings call transcript

Good morning, everyone and welcome to the Citizens Financial Group First Quarter 2022 Earnings Conference Call. My name is Tony and I will be your operator today. [Operator Instructions] As a reminder, this event is being recorded.

Now, I will turn the call over to Kristin Silberberg, Executive Vice President, Investor Relations. Kristin, you may begin.

Tony. you, Thank and everyone for us. joining Good thank morning, you

Head and Van provide McCree, Saun; First, Brendan overview this to CFO, Head Bruce additional Chairman our Coughlin, results. are quarter will morning, of and Commercial and also CEO, John color. our first Consumer Banking, of Banking; of here Don an provide Woods,

take presentation, We Investor Relations our will located we be presentation will on be referencing earnings our questions. happy to After first the quarter website.

statements, expectations. which the that review forward-looking subject outlined Our to results uncertainties comments include X presentation. today your and are may to risks will of for Page on differ These our cause materially from are

presentation that, We over it’s also Page to Bruce. so and referenced I to in you, review the important the appendix. the will financial results reconciliations our hand With non-GAAP measures, GAAP of on X

to and customers, into everyone have relative joining morning, well coming expected been Good along we in We have this in executed are feel followed closing call clearly to we the conversion changes Kristin. perform thanks X. had the the external acquisition successful over and of XXXX. the environment positioned then Among the with the a significant and environment the of branch today. on was There volatility. for Thanks, year, April what HSBC quarter, which course was highlights online of well Investors by our

our and a softest well given are on balance sequentially, X expenses. higher XX%. generally good progress average our ROTCE given X% seasonal to the TOP the growth our rising continue optimistic through days X% Net stabilize. and impact We managed of and respect agenda volatility This than mortgage excellent in far taxes EPS NIM, quarter lower quarter expenses for day We $X.XX significant markets and Credit income in interest on up payroll count. including We and we in which Markets our revenue initiatives, if benefited off customers start all a sheet lower quarter revenue of and was pickup more pipelines loan high are the from With standpoint sizable for of underlying environment, deal strategic fewer digital is and Global we remain strong and program. both a results, our a challenges. actions our drag position and made in with We revenue the normalized to our to corporate current rates has navigating business. saw hedging to consumer markets have well further take though financial markets well forgiveness turnover are maintained offset capital given and from and metrics the somewhat. so loan PPP capital

with a great shape remains sheet balance ratio of Our in X.X%. CETX

to loans, second of acquisitions, capacity stock. the year and bolt-on the dividend grow pursue fee-based half some have raise our We in the buyback

to mortgage shift which like points growth for emphasize are moment. Our the plan little, an up we key gears throttle the and few at side to auto back commercial loan picked that a LDR. attractive maintain our in growth will on has investors and to a I’d topical

we First, accelerated path to clear, the benefit rates. and from nicely will to be higher

it Our was last funding vastly from improved is where up-cycle. base entering rate the

an remarks. roughly detail project more more We basis in take in than fee the current income point deposits point you and rise cost XXXX. the $XXX offset in XX% in a ratio. through which loan-to-deposit given NII roughly gradual will annualizes higher curve, from of This will to have environment. his million basis lower much interest-bearing John in a from benefit million in $XXX rates, a XXX We X% XX this

position risk has XXXX and pressures inflation our real good is in shape. the increased, very possibility of in while recession we Second, credit are feel

to a time who over credit to we in have have migrated We commercial have risk maintained our better and exposure high prime consumer in companies bigger prime appetite profiles. super credit

has a our As over credit time. result, overall profile improved

stress CCAR super the regional over slightly middle will credit confident is that our results profile which harmonize we assessed real-life positioning, than book loss better test history demonstrate Our credit pack carefully their have and in and further and remain time. of investors’ and we

getting would that respect highlight is like in acquisitions York last with Lastly, integrating New year to those acquisitions, we to on particularly the our a off City ‘XX area strong initiative. focus and to our each made of that start, I Metro

in additional can All-in-all, good cities you year maintain how short, and but done are as to for about in appear that levels. have to the one we us do wealth road. navigate we more X the job With started branches feel we them state and a have several how There exhibited challenging path now inorganically and IPO. acquirer bringing open the performance not acquisitions much disciplined financial the been is that’s count and the Florida, very we able in to likely respect not down centers since we the result. We positioned is network look to we highly to the will be much the space, still get environment. wealth strong to In does attractive are have to discipline will on have we

the the bank models. and the their closing in analysts investors in we assist in presentation two rates earnings detailed significant to of Given and updating have guidance move our acquisitions, provided

over great do for We bank to I a stakeholders. that, continue our more journey to ever turn And with our that building John. can will it

everyone. morning, Good Bruce. Thanks, Great.

headlines for will I our start the First, quarter. with

$XXX We have $X.XX. EPS of and of net income million underlying reported

modest and loan solid XX%, X% quarter benefit. up the in credit strong was provision improvement income interest which loan was ROTCE for impact up Net the quarter, by X% underlying a linked was of point includes driven margin. basis growth Our linked Period-end a X quarter. a growth

are payroll and the portfolios. which commercial pull-forward X% quarter and retail impacts. ex-PPP up We macroeconomic loans were driven or credit X% strong capital tax million, recorded of lower linked benefit given Fed X% we are retail acquisitions, up Fees through fourth quarter. sequentially, volatility, benefit slow or for reflecting were a are transaction. up on interest soft impacts up as commercial seasonal which Year-over-year of credit excluding ex-PPP tied underlying while positive quarter X%. and though HSBC we commodities to million near-term the are some market fees positive the expenses, note, quarter, linked the Average reflects loans had X% we provision excludes double loans $XX economy. rate actions the off of remains Our modest in clients help X% underlying impacts. markets $XX the credit outlook ever engineering so expense volatile environment. acquisitions. into record manage inflation while X% X% provision monitoring The count commercial, and The Day seasonal CECL up by a a down were quarter quarter for XX% for by On whether the a expenses to remain up about can revenues transactions X X%, do primarily excluding up best our paced retail performance prior across an We disciplined landing

Our CECL and of Day ACL X.XX% at the stands XXXX down the from end X ratio slightly at level. X.XX% X.XX%,

Our by hedge and primarily rates rising per the of valuations impact linked value impact securities of was tangible driven book AOCI. share that XX.X% quarter, down

capital a to from very position a continue the have at CETX basis HSBC XX We with point after strong X.X% transaction. impact

the benefit. more We which benefit down quarter. up million lowering provide approximately Of was from interest down some combined forgiveness while Margin of more are behind made interest given reduced basis X%, quarter reflecting basis Next, interest-bearing PPP income PPP X growth offsetting X.XX%, we yields the first than from referring higher book I all-time impact loan continue the million presentation loans slides. PPP linked of will costs, for note, the spot end deposit X lower also and some continued X are benefit now was than on key headwinds $XXX basis benefiting benefit up and Slide progress from loan The an rates higher Net our takeaways rates our quarter us. at net with rising, into the reduced day count $XX to and of low, the benefit points, liquidity forgiveness. balances front margin as points, points growth. to substantially XX which is to cash excess redeploy were lower roughly offset strong

of given the and asset driving level continue XXX a out. NII starting realize to Slide forward This rate Moving the the Fed basis discuss to this benefits rate with at recent X, We plays rising already we points XXX full accumulate the would thought expectation that those cycle and is in confident range, significant curve much to hike to before our higher to the why the helpful it March. funds in into in the entered meaningful rates we we will hike from to and XX% are first will year rate for in benefits be quarter outlook improvement year as Fed’s is sensitivity XXXX. end benefit the first rate

base reflects Importantly, IPO. our transformed since our we sensitivity the have asset expected funding completely how

up-cycle current beginning a are liquidity We with strong very the profile.

is LDR much Our lower.

and are improved. low profile as costs they was funding deposit as overall greatly been Our ever have our

deposits, last at with XX% And CDs consumer our XX% rate of XX% book are deposits of less end X% last cycle. are interest-bearing compared deposits period start beginning Our than now demand of the of about our with the the compared the total the cycle. now within at

starting profile of significant with have the much deposit franchise offerings. deposit We this This improvements retail commercial made and expanded also reflects wholesale deposit and cycle IPO level the lower since a our funding. to improved are improved with floating we

to analytics to last attract deposit starting a in this about allow cycle. retain data enhanced beta meaningfully the improvements interest-bearing is expect freight position stable that cycle, also our With mix and have lower over better the and deposits. capabilities, us which we than our more XX% We be and

bottom slightly benefits path cycle the from Pro given April of in and down overall the the at the sensitivity end outlook of XX% the Since rate to XQ, the pro impact forma is worth forward the of balance million the in the of sheet. This estimate sensitivity have the from point rates Our left of or sensitivity the from change of the primarily denominator to Essentially, by of evolution up asset curve. of impact forward quarter, from about on down most higher X NII of the further short X%. over $XX basis quarter. our an includes at the first that is Investors. uncertain, modestly driven forward either curve exposure in the the our given from a end page, acquisition, XX is curve the this Investors coming you side end $XX stands our decrease a with at to million This is asset with curve. the X% we forma instantaneous changes

Slide we XXXX. headwinds Capital categories. impacts drove markets of to solid despite on results and our capital this quarter into diversity forward volatility, seasonal other solid performance markets, delivered strength good fee the the across and fourth Moving despite pull demonstrating key X, full and we market delivered of results the businesses some for quarter

of credit of down best commodity ever could capital exposures. the delivered given clients industry our just to of our of economy. volumes, rates continue given strength quarter acquisitions. rising and industry to nicely their foreign the quarter our linked path diversity rates levels more rebound charges spend and impacts. X% capacity also with continued linked Mortgage excess certainty slower higher is worked X, lower as the well there mortgage excluding linked Mortgage the quarter origination markets controlled, linked Given down expenses were servicing exceed MSR. in were fees pre-pandemic XX% pressure margins. results in and fees as a slightly a were transactions and card year-on-year, and we of fees seasonality. and settle interest On as exchange, markets wealth markets, Slide manage quarter the fees remain against income backdrop lower strong. Debit regarding we and X% fees business, and up seasonal amortization competition rate Card to X% global improved quarterly pipelines, Demonstrating and Strong service resulted

XX% loan expansion of across issues is loans TOP the bit up see increase began spot of rebound XX look banking $XXX a points markets. including by or Line up Average led a Driving companies X%. X% basis basis, benefits to were trade efficiency run-rate this up driven loans about as end inventories with almost by a quarter, X commercial were Slide linked and to growth utilization up we quarter. commercial rising M&A Period-end some XXX corporate activity. X% XX, also X% region, by our transaction. end manufacturing chain cost targeting Our every loan was supply deposits lower quarter. with ex-PPP We X% to year. growth and pleased X% was $X.X this ex-PPP. linked to of quarter on ahead over deposits program our were little of an C&I billion growth input as get average retail build impacts, by primarily X% and Average linked underway, pre-tax led X% of or On HSBC on again of million prices to strong were growth the period with Slide facilitate the added well

from given levels. impacts elevated normalization slightly, down were well deposits continued average and end period as seasonal liquidity as HSBC, Excluding

we the Moving commercial charge-offs the retail portfolios. excellent at commercial real portfolio. credit loans saw on across to on points XX, across slightly estate this performance and criticized Non-performing look across Slide and retail were were an and by secured good metrics with Net portfolios loans by loans XX linked million forbearance. credit lower. for results first to again quarter, increased excellent the credit quarter, Other continue exiting residential basis up primarily $XX quarter the driven

on changes of In XX, higher malls, well casual a as the inflationary risk is overall lending sectors the retail we given commercial the and of higher risk. the portfolio and in pandemic, we are the you through few such of appendix Slide and including rated made the see credit about feel education in the of growing reductions our significantly improved will bigger mindful mid-corporate the the recession, that has on and pressures over prudent as improvements portfolio, we profile While stressed dining. focus as last good have portfolio positioning years which our possibility credit

to and we the continue focus on prime On the super side, retail prime segments.

improved profile and personal feel changes our good our them. prior in the has risk of secured Of about and Our appetite product. Investors and have well risk portfolio including our mix, disciplined cycles the portfolios given in note, performed we runoff

excellent balance sheet Slide maintained Moving to we XX, strength.

at CETX the impact. the first a ratio X.X% Our remained strong the end closing quarter had XX of transaction, HSBC at which after point basis

of CETX in progress to X.XX% mention to X.X% operating have improving profitability, to we diversity XX% the our to that risk continued We made and we revenue widened also range target from wanted XX%, management. have reflective overall

changed disciplined manage fundamental can extremely Our priorities you expect remain as on see and make the progress for deploying gears to how we will across work. capital you XX, examples Shifting bank the our some we work better have key bit, strategic to place we other great against Slide in not a of company. us a made and initiatives customers the are doing Citizens have serve the to

the platform, we and capabilities to enhances Access were first is our core step convergence excited we our branch York plans. business, established City advancing Metro significantly As the upgrade foothold through to national April, acquisition HSBC of of expanding a digital you transaction which core the toward at know, growth our complete in and bank the platforms. the banking consumer multiyear fully beginning of with we area closed In the of the objective of the our Citizens cloud-enabled further the Investors New

designed also We national a meet for standards value increased recently ever on account communities. checking announced underserved banking new to free checking, account overdraft Citizens access and bank

the consistently a runner. side, book as league commercial and to middle-market tables, well perform XX continue we in ranking in the TOP On the sponsor

included page, side some we the right On the digital metrics. have of

engagement and customers digital better this with how very our our excited are a first translating into with satisfaction. approach all experience and higher is is increasing We how

update business. in the offsetting up we fact more of our guidance that and The bank the here that Given the our significant our guide XX. change our NII for news helping acquisitions, down rate are two comprehensive good than is we environment on little the closing fees. XXXX are on a standalone a provided Slide Rates is to

positive credit higher my PPNR also year we on standalone in to will without outlook we including added change deals on no help the full bank the but performance. I there remain and bank comments and focus our outlook, So, for outlook in both and have HSBC deals. view is the is investors, confident the the isolate

our year XXX the of X, have We January year. the comparison included of in the basis outlook. scenario XXX implies what used from to based outlook improvement is curve a points also a is as to of the original by rate April our Fed full help Fund’s on guide in target to end the which forward highlight driving overall The

long keep XXX is at to basis meaningful end, would NII this the to to implies end points XX-year the that of rate the benefit full treasury useful the rates XXXX. It On mind curve in cumulative represent be in effect also year year. the about from upside also

is XXXX, income environment up to the is growth revenue XX% a assets standalone to basis, than XX% standalone XX% X%. $XXX NII Average well as million XX% given as up X.XX%, stable driven a is guidance to expected year markets average in XX%. full our as dividends of the higher the guide and expected X% and $XXX environment expect is capital rates. better For the with year Fee year. January increase HSBC Non-interest On end somewhat. in to XX% million lower the incorporates expense of expected Credit improved commercial than will NII will the be prior given and effect fee rate well solid an Investors our the net by about XX%. CETX anticipated to to about about primarily revenue fee-based be mortgage year to second down XX% be impact we the be charge-offs On for interest-earning up as as to to to up to we the acquisitions. slightly ratio are our of half of remain a expect be loan which with to broadly $XXX excellent basis, million to expected

acquisitions our year, TOP include for costs. expenses for integration notable projections the the impact capital our the the X items Our including of expected and

You XX. in the Slide can appendix on those see

the leverage if Importantly, acquisitions. we would on approximately X% year, expect excluding underlying set over you deliver aside leverage operating be basis And for of over of to X% Overall, the and our PPP, excluding X% leverage. expect positive X%, an we XX% the Including that operating impact ROTCE medium-term expect year of acquisitions, within land XX% over full our operating to target range. PPP. we solidly to

I XX, outlook higher a the basis, driven Slide will expect to through by to and rates to for Moving be X% walk quarter. X%, the solid we growth. benefit NII On second the loan of standalone up

On X% are X% compensation. to the expected on acquisitions, expense XX% and to we With to to be standalone are expenses basis, are fees up standalone average at NII XX, ratio Including be up standalone Non-interest benefits. improvement our revenue-based in acquisitions, ‘XX Including expected CETX a slightly. X.XX%. are to Fees expect interest-earning up XX%. X% a the X% assets with to and basis Slide we a to acquisitions, markets X%. on started Net XX to X%, up X% up and charge-offs XX%. XX% seasonal basis, a bank expected capital around be we expected to solid by is the are with quarter. given with higher expect led to to to sum reflecting loans to to be expected up To stable, be be land some expected commercial, X% be up broadly up

succeed our the and We have to positioned well of diversity are given strategy businesses. strength a and winning

the beyond. We optimistic the outlook and for are rest about of very XXXX

and We growth. expect environment from a benefit to strong materially rate higher loan

New Our Metro very in grow capital we integrate well-positioned opportunity we HSBC York as business to as and business are markets the Investors. stabilize region is our and markets build on about the and excited

I on focus to stakeholders. our performing execution building it continue delivers all and will With that back top that, over will Bruce. for hand to bank a We

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

Thank Scott line comes Piper Sandler. Your [Operator Instructions] with you. the from first question of Siefers

Your line is now open.

maybe Good of recovery morning, spend second the sort It assuming the a you could moment recovery question. assume quarter, just was in the year full like are forward I some target environment looks guys. the for Thank capital of of markets moderated hoping guide. in course, you but the magnitude you in you taking bit. the discussing a

on here? color or things thoughts how some for trajecting curious see you Just from

will But we go say and our off Yes. think there number into some there impacts that is had into guide, that quarter. driven the mentioned guide. we on pull mortgage. markets capital I’d are implications I guide forward building the you which of million I there is that. primarily start well mean over some fact that ahead I we given $XXX the by fourth had as XQ,

fourth had a If you look we record the back look excellent. quarter, at pipelines quarter, our but

But And of so back year. we as of build time to strong. really three a stabilize, in little the there the there that the last bit markets into that momentum is think be delivering quarters could

And cover. so Don maybe can

a it’s I Yes, a different tale couple cities. of think of

quite the So, in we seeing loan are strength of syndicated one a market. loan the thing market, bit is

of the much few months, into close actually. supportive. liquidity markets we particularly been loan the have are yield syndicated you the there markets kind the of is high seen been the last and the quite pretty So, quite while And dramatic last over in bond a that’s as for equity some the rally days markets rotation and have rebuild market loan seeing couple

are the bond second a markets activity, say bit equity if and the So, to John pipelines will reopen. I is syndicated really our are our get we quarter reduction then a which the see said, mandates markets our will a I pitch story we begin little in volatility, reopen going And think be to strong. lending. we what and about extremely think

we And bring the last constructive or deals we to four will return And so, we week, of start in the it’s for the back to waiting on were half we deals. emerge the which really saw good to of and begin and matter feel then a particularly pretty in about, three markets year.

M&A thing and still I bit, it’s mention pipeline, we pull typically really, I start think those market The the you stabilized other is which little again the there, And to will really seasonal didn’t through think good. a looks deals quarter the look build was it seasonally, huge, And revenue. in usually should goes, think which the quarter softer M&A nice year I is the for us fourth that first XXXX. see good. And pipelines a in then as is if we

Yes. amplify I that, activity to say M&A capital and private will Bruce, just markets surrounds of also equity. our a lot

equity is So, with flushed at and now. right the in quite actually interesting they private cash still are looking market valuations

buyers matter So, and matching to of will kind desires that desires kind just the through take little system. it’s time sellers work and a of a of

good. Yes,

few you color. then, a And Wonderful. meaning That’s the versus several? in hikes about good effectively, your look was your rate could talk how how mind bit first the you. cycle something sensitivity Thank John, the progresses do changes just rate next as

asset was you it sensitivity did the... missed So just say or – I

next how words, are the more other In two? than the powerful rate hikes few first much

I’d mentioned the that’s to instantaneous mean, XX we $XX – that an average. million and really I rate $XX say million per hike, Yes. our

And second driven And less build get starts of to and to little the more a then then to deposit maybe it. betas, going you well by which beyond. little front are first XXX in controlled extremely be that as you the end XXX. So into that’s really the get a and the on

touch possibly the When will point you a XX% seeing I lower mention little those bit on it’s on think is an is end. also it we’re and So will average. a I in XX% end. a see other the a effect more be but will to contribute the lag more year that back betas deposit average, yes, first front then

it’s more when get – there you a And as side benefit effect well even still asset assets is the if so get lag instantaneous, you into reprice. as actually upside from

from might rolling you XX% basis see, upside on year get range for XX% point change, even you as for see XX top an X, year example, X. the instantaneous there you in that into of would So to in

thank Alright, much. you Perfect. very

Thank you.

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

is line Your open.

John, me I Thank you X. And so for maybe let my guess, line of questioning much Slide here. start

I you is have And as about does some rate give a So portfolio betas we we do the current forma should one sensitivity cycle? enhanced in trajectory other hand, acceleration, are comment drops interplay how deeper think So sensitivity But move rate accelerate right? understand the Investors. on your later? was Can cycle. sensitivity swap asset today. on of from the your we a asset into expect both? wanted the deposit on pro to that bit as you made here to the for earlier this talk of And about forward we portfolio you the different hand, for

Yes. Thanks, Erika.

with basis deposit is deposit balance were last the about at with point starting much low last noninterest-bearing. you interest-bearing XX an drivers you’re basis just cycle started costs sheet being the I think the at points, we’re the the XX% than better cycle. think that the better I this mix much for cycle that position, all-time positioned there the are if entering on us, on Page side X, think XX I And mean, we When points.

much balance mean, think the you So – betas, benefit and have when feel last entire – balance much prepared rates sheet. the we better rates – we’re ask say from we’re around around I about to better all swaps, I of time on sheet, side think I’d benefited about context sheet. strength balance on really deposit from just rising benefit but way, the by still to this to of you given in the time from this around, prepared rising the around. time this We

with denominator So the sensitivity NII as to play the our left have decline over as for alone could dollar we asset before remarks, NII, I I in is fall. and near loan of increase to mentioned respect of left, percentages that think out. well dollar, there my keeps left much sheet of a more for it’s both hedging do fine, but time to reduces effect significant That will as neutral. do future the update do that that sensitivity rising, story we as just significant as the amount gets occur anywhere benefit percentage further part But balance growth hikes, rate the firepower asset

really And that. it. XXXX. in in then gradual Fed that of lag, basis going So about with you’ll guide higher again, in funds, the would second points $XXX on up catch mean a to catch and I’ll describe in do rate XXXX $XXX that’s when how will be if thing that’s may XXX. XXXX, get to betas, – maybe to be And in maybe of in Xx terms you’re to an close approaching lot a of much our up the just you of on, effect up we it scenario. it’s million could It – XXX see is a a full XXX. rising important It first I over out see lot conversation some being deposit get start lag I to guide million NII year focus then to

even But do add, significant asset think, still, the leave to high I just that that I been not view anyway, higher sensitivity I done additional And we’ve and swaps go here. we’ve could the a Erika, rates bit. would of keen think, we’re very

feel about positioned good right now. So how we’re

XXX side made regional is estimation maybe tangible your higher I that point either And underneath on start or Wondering doesn’t guess the way asset however how And standalone part us IPO? wondering, want you checking the answer on question why your that keep deposits. it. the level think previous? like way since think pro bank market and you as accounts landing of than your give have, stock of for basis. day, The valuation understand the And ROTCE what year, but is that for you do sensitivity the you the if Bruce. about the to much improvement basis seems what but having you forma point a could remind a to, I a a a to sense us has could to have peers? question you, the that the – of the Got the lot example, you is in a value book capital consumer for versus is XX second good on also

that. objective to is I’ll our well the Yes. There to I through is partly lot Erika. to cycles. unpack continue that, in try – think here a perform But

so a company new we’re management relatively fresh a relatively with And team.

And so some I market to they as goes don’t peers, a record going historical – track have are we’re some not how the posture, when I we think. risk think of of into assumptions thought the our do,

when beads done dispelling of through job we the was we’ve those worry good. pandemic, think our I performance very a went of and good credit some

going some been was the that along end the I think was law we all quickly and we’ve capital, sheet concern that’s for terms we allocating in money there in get borne IPO very where and to that to how fruit. disciplined after releveraged and And grown were and said I balance we’ve fairly were we’ve of tiers. think lending

year just rates the of were at was up to an right cycle, beginning going was page a example, go I think that to the environment scenario. like gradually now looked when Goldilocks use the up the with

performed stock quite our well out of so the And chute.

much confident I all fast that curtail work go was think we’ve then side Fed ever of clear of quite maybe been. done And liability was rates. a much, analysis too some tipped the the hard it’s benefit betas it than we’re rates this better of lot again, that to of from much that. you is think done the is We’ve bank I and and up I on And aggressively, we’ve work higher think, it, the our with deposit provided, once hot. raise and start will the into the too kind going to curve well, became more behind

Having is still concern whether on that we’re kind areas I’d in of gradual, you’ve so to fast seen there some said more whether the volatile up diversity for fees, And fee path we’ve built that, us. a markets say or we I is rates. maybe think also think probably fees. good that benefit that it’s more significantly elements capital are mortgage in is there in interest of terms a going our and big is

from assembled strong, mortgage we we and economy, they’ll a that think in around period, think a little technology, have lower really But grow when industries focus nice acquisition, move the private and the very I are quarter-to-quarter. and around. we’ve markets bit I that trend health rates, bank revenue line But that and think that with the again, capital on and I to right. And an upwards helping business, sustainably we’re we’ve see think fact engine markets capital we and the I serving retail our private capital care across in the channels channel. the have revenues can can built were bit with to were confident that so our JMP capital excellent out given commercial on of revenues a pandemic really, strong And targeted in capabilities see diversity is – the wholesale a flip really softer, very of mortgage

of the some combat market can production we think share. by building volumes lower I

year. So we plan to hire this more

aspects is to and are appreciate, think take time we around think, and results And well. the a up good total will keep liabilities, the mean, all what up care market just and deposit and I putting I of base respect these With we’re take will I XX%. ultimately, percentage come So of for executing the to doing then to of as doing the the non-interest-bearing itself. fully about DDAs stock

I in XXs. I IPO walked think probably of the when that time door the in at the low the was

on platform consumer side offering. in the dramatic segments and management cash just our to improvement, on the focusing and core customer then total a been that’s value commercial and out investing side certain also proposition target capabilities on our So actually building

and growth gradual targeting enhanced we’ve had just as result. been and nice And a abilities it’s over improvement so a as our our we time

add you I’ll Does want Don So commercial? do I that, think want Brendan, there. anybody and about stop to to deposits consumer on the talk to

give I’m asked sort of had checking about counts Erika, of you customers. account the happy – to

in X.X in when went customers total bank, couple million we had public, when points, we a over of total. now about customers. relationships We consumer at the of kind Just you quick have look million to X million X

customers. those some are Now of loan

you to X.X is million when that to went deposit number sort we unpack customers. So X.X customers, core million from that of

story good which in of but is action the heading the under really has been we’ve transformation. peers our versus on that’s of growth, sort sort really top the down this that’s not been of growth, So that growth quartile in path where covers a quality

their So from dramatic base how the as mass there growth is in has overhaul more affluent view customers. in affluent than come many and household a primary XXX% of And customers bank. the been us

quality when which game the customer what’s lot have to of driving a that So higher look, some that’s the over years of deeper combine still and work DDA scale. sustainable. with running relationships, you a of of get quarters multiple a we lot improvement over is deposits, very in lot non-interest-bearing That’s ground room. to kind And

oxygen of progress to I us a to think there made up in not is It we base. of lot quality be momentum. for left have the to tank in seem does continue to but still the catching slowing. customer improve We’ve peers, still

the and coverage, aside continuing that more putting the should what continuing happens with of excess still and think story deposits under I scale. the expect at more is you quality stimulus

in cycle you this last obviously that make about in of had low balances time consumer, for had The think $XX mention CDs. betas we billion up we DDA the because point I’d other about

that with billion. start $X we period Now only

when in transformation the of where rate composition base. do deposit we’re than sensitive bank because how you in And we customer that driving of lot deposits look quality more we like we’re see that a so a terms – bank not in bigger as sized smaller-sized

just of And – through of treasury gone Bruce, what in you Yes. I’ll service we’ve emphasize, a reconstruction our business. complete said terms

business, skew a have towards agenda terms other deposit and a it didn’t X any like a to an we deposits that’s company’s driving basket the new of and year-on-year above XX% got now non-interest-bearing and liquidity which would driving bringing a and even building team ago. we frankly years have has growth X growth was up trend X% team, it ago. fantastic deposits. also And built-out in against rate, case in portal. And I green also offerings So now put treasury years And ESG a service analytics

terms in the and it’s non-interest-bearing levels, seeing seeing we’re So, also. totally place and results deposit skew a of the different we’re towards

Yes.

you long-winded thing just Erika, was giving but to ROTCE targets. our which touched answer, capital So to a and I back you on also the wanted last we’re come

see think, that exit and we medium-term year. in XX% we for we we’re XX%. range we I that where year, be will were So our so that can should ramp, can we I quarter, targets solidly this think be you that the could say pleased the stronger, the even to the as in first And

good about the to targets XX. to XX very feel X.X did So We move to that. from X.XX

moved relatively a big them still we somewhat particularly as, conservative I believer capital, So we’re in the company. being modestly. I’m on a new said, as

term And And look if the higher look so there reason risk when our time, at our think CCAR longer peers. you and to profile, you at that all premium. our we But that no results from slightly I honestly, over we’ve stakeholders peers. is will been being converging to maybe have than it need

answer. complete the for you Thank

Sure.

you. Thank

Your of Autonomous. of Foran line next comes the from question Brian

open. now is line Your

to deposits, very improvement convincing follow-up the and clear on been good you book. Maybe in morning. on Hey, have the

great and appreciated information. that’s So

and X – on your over up? just also next wonder ability give As rates I’ll on grow the there might think to But is parts. commercial answer. lot moving versus no and overall maybe you deposits that of could years, a behave touch the deposits how to There one I about the thoughts if consumer grow and ability is as you go

Brian. Yes. Great appreciate question, I it.

seems the the that deposit have think that deposits be you on pandemic the and consumer that more than thought quantitative is growth how you continue showed to up. you as over lineup the a all first I our I consistently for commercial is think also expectation banking for of those maybe number opportunities There stickier even us decades came last both the product under different out. deposits if on time at if over some the when like, the tightening excellent rates to as industry in, – through I and deposits do improved. several there surge they appear macro, chug separate macroeconomic a our to scenarios in broadly grown lot think have think along. basically rise, when play look about of impact deposits And lot a

strong particular, significantly continue on whole to we, industry expanded So and commercial really in our will growth we’re optimistic side. a given able and the that consumer we drive be to deposit capabilities, both as product

I’ll maybe then So over and just to Don. Brendan turn maybe it

deposits we’ve of were at last we’re continue core away just inflow to nationally deposits side, think of signs but see lot got We’ve a Look, in running that sales Yes. we’ve up got what room. Citizens of solid Access the deposit great And in the a with to sales. of starting fact, million position already. we’re in ability market levers stable new sort starting certainly always and scale. in think from to cycles, to it’s New is already demonstrated book And improvements a we’ve we’re I a dramatically where cost? The our I York the at in execution $XXX in balanced from and in question we base, up platform consumer variety there up breadth of that the entering, whether the the raise the cycle is built, solid the we cycle, we on markets make than think different

a And at want we And over continue. even same years, forward, with customers customer rates. have So improved we’re able engagement said with investors can think the minute to couple New from confidence allows when closely bring optimistic needing than to deposits our highly engaged exist more of the for around and promo what customer And targeted. I that the you into us as being rates reach base, the opportunity to marry be will of ago more Jersey. grow quality market in just that the that continuing base to they last convert of analytics then we materially go platform, our which

we I So be at that really to will a the pace feel moderate cost. with grow good we need more much able

terms around our just I remember, that the last But of aggressively in lot in of of also it we’re growth treasury I’ll a services the client think comment Yes. expanding said business. I and – base.

So we’re expansion markets. in

costs. a We’re comes with deposits clients of that lot the to and opportunity at adding reasonable gather

about against sheet feel side of what day-to-day we the really it. asset capital. balance volume versus But matter the redeploy I’ll to a balancing said of managing that and of go we good cost the pretty it’s back So where also, and Brendan can

So deposit carefully, manage expand feel it’s that we base. but continue confident something to that I the to we’re going

I’ll I I I assumptions say appreciate you’re Citizens all a I’m will the making, it. that. have Access beta loving renewed guess customer. but I live not am to with

Well, you on be us count disciplined competitive. yet can continuing to

Appreciate much. very it. you Thank

you. Thank

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

Your line is now open.

Hi, morning. good

morning. Good

that this recent One Two the at right the the growth. to Relative word, LDR on I know, intrigued just we keep LDR, most questions. is on was conversation protect around growth I but had was don’t Bruce, lending the auto and comment by XX% to, deposit the level. flowing that. your if about resi

I have if in you just more deposit the not as was opportunities talking over you’re the just guess that Or I quarters? you had seeing wanted auto understand maybe now? the were LDR about So as rate that of to resi to growth few past about comment that much that was just and because

it’s factor we’re considerations. on kind say of One of I’d very Yes. demand of that strong the is a commercial loan already a seeing number side.

We’re seeing line utilization tick up.

the when growth be. environment, of at aren’t margins we on more used can a the what like somewhat and the consumer look on into So auto higher in of be over lending rate to areas there rotation commercial. in and some they mortgage Therefore,

net don’t bringing And had that keep little side. to on bit hitting and coming benefits versus can throttling pushing and isn’t no need to to into but result growth that the commercial consumer The that if in that, point. rotation get LDR the lift. and the for think with year in on And the return could going we auto rate pedal more to We’ve up that is floor assets, consumer a And assumptions incremental that loan is the backing so lending problem have providing the consumer pedal The and we side off big floor. keeping mortgage still up. do we got that the at the back the we keep marginal we that. this the to NIM hikes on our a hurdles, we of those

trade-off So we think a taking. that’s we’re

– function for loans. Okay. have quarter, also question and yields there you look just And your I’m past XQ yields balances guess quick that then had those it is other resi go? general. This are then in on underlying a nice of retail or the up And uplift book, I in – was question you activity LDR that just XQ. that would some like a didn’t wondering driven I how drove high just to the the willing swap And had just was securities

So deals there? just went Thanks. the wondering how

Yes.

LDR And market, big Let add IPO, me start and worked influx bring hard and the since historically, – the the on from back a of loan into bit experiencing. the bring it’s with all down we’re liquidity and into little up with relatively can the the this off then to inching LDR we’ve able to XXs growth down that Brendan yield XX-ish John question. we’ve then here been we’ve we the maybe high But to had mid-XXs. a been higher down that

just have time, to we manage to see. take lots house really we, amount ‘XXs, function think the to of brought the the conservative loan over likely still liquidity be But I with on and all think growth that into where the in that down and I that liquidity. step of high continue the and that’s it partly reasonably should another with can’t able that mid-XXs in in can here I a way exactly position we call be depends from XXs think I we manage we

would there. to answer be John, maybe pick my yields? So you want that up the

current I’ll can you, securities having start But going the X%. those. overall, front stuff yields to and coming where is swap sense, that’s just dynamics it a of can that on take on there give into One as book are the activity not mortgage. of tell I there. Brendan portfolio either the maybe on on And off you is Yes, north an securities, it’s relates to impact two

X%. was driver quarter, So compared we’re to XXX at over XQ. It XXX range, in level XXX during XXX but in and a well it point XQ. in wasn’t the that to basis to probably It XQ, that the first was during was that’s XXX maybe

seeing and that’s X%. in X.XX-ish over So announced in you’re X.XX dynamic XQ the XQ,

the that will into So continue second quarter.

rates premium – other book tends The is dynamic declines when rise. amortization back the

So you’re seeing the that tailwind into from the book. securities

that’s there. so And Brendan talk mortgages. driver maybe the And about can

a Yes. consumer the handful of There on is things side.

percentage of and good the kind our market to the such. a that to of merchant changes. that’s that is there ramp retail, partners you’re And other with going on market as up see variable So linked book

and sequential HELOC. believe is On the the States in in variable. lender four big originator very we’ve one HELOC, balance and resi had side, in all sheet which we’re row net of obviously a and United essentially And number quarters we’re a all the growth I

is iron of business. well hot advantage the striking taking and really So that

So you’re kind seeing that resi in north. as rates through improvements book the the March there the flow of yield with

pricing fast we’re as On the the book the lags of couple market a try sheet our push mortgage market going to can on deep side, relationships lot the being point on with of book to a disciplined make the at been pricing. up but sure as there for front we using capacity, We’ve to market. our as is balance rates and is One front things. times we’re

in technical quarter non-recurring the have if just seeing, in to QX you’re dynamic didn’t we linked other looking The adjustment did QX. happen is yields in at you’re QX, and reserve mortgages that on a one-time that

of That’s so see discipline front on in the of see that percentage So on bit continued if of you you’ll look washed little in to to of book what climb sort couple pricing. you gone. but saw mortgage with QX, rate book book variable that’s and is a should kind out, we that the a of back quarters, noise begin expected start

it. Thank you. Got

you. Thank

Deutsche Bank. Your O’Connor next from the comes with of Matt question line

Your is now open. line

investors, hoping runoff? of the securities there remind you portion I us to that is book morning. deemphasize guys book looking kind loan you’re Good of any or with was could or

and securities, mean plus think a securities migrating off there. that which I and as profile mortgage-backed have the already I’ll to we just book paper. duration frankly, migrate start I our is mostly investors would agency-type looks profile, that been clean

at has we over from the Don in of loan a have that investors perspective. a from process portfolio been there. can that talk front. In be that well the migrating anything over the on nice else general, securities margin. like core about book migrated we’ve book They So the credit might performed comes Maybe

Yes. certain of There move the that bit we book be as aggressive. a and be quick are it’s might going elements forward, to little not different but

We CRE are. time. – are for a going to we we over going elements They migrate different that very of to in But lot us. than is do the it do are they are diversifying of business the business it

that is looks it move smaller different. C&I business grow to lot we looking business and segment are company a then the banking, forward. So, And quite we of as

think aggressive blocks. adjustment at I out the see will asset you but margin, So, no sales, some

DSO low-yielding Other Citizens to my of you that see do and than doing roughly $X we be that acquiring, as say, around plans yet. – assets I are we don’t full the have on on side, billion that might move billion we will $X.X us we will on Matt, adjustments but of side, some

and… Yes, optimization balance sheet,

as a will more it But the you little same? about bit either bit are medium-term, cross-sell. investors little obviously, roughly opportunities there think than to have do a some we we I think of any think or your as then essentially loan or less impact to layering growth, kind guess, net as And about well the standalone in

for the how to playbook been of period markets, look right, mean what has expansion accomplish in good entered have we able been would Southeast grow converges I Brendan Don until when over and it into a business time. I Well, time as we particular, a we markets those little able to when for Don’s is commercial go expansion faster it at and a

that take we that all expect rates investments baseline, higher for would plan get settles it of number to make the once suspect we years, growth until and standalone the expected balances all that see the can you see to rates metro. So, respect I that think we years New Metro. actually in those market our and once with in you make of and than in running York a to share plan could number Citizens growth terms of we being for I have of out been to that you would integration able a the out engine conversion,

Yes. John, I will set also the side. very add on that limited product have a C&I they

the can think substantial offer companies of way. products more go there a So, after bringing and capabilities is larger we variety an offer, much to in their and we we clients can that that in also serve opportunity

than same consumer both side, the product and investors, set The didn’t comments build revenue synergies our HSBC we significantly which Yes. on is diversified those great. is deal more And into model. the

early signs in significant seeing sales So, of York. are New opportunity we

on are We delivering that.

the of middle marketing starting are year. We

the of will platform of on inside and the XXXX, wealth XXXX. mortgage early rest convert to going in investors for then and are We convert

for some an take growth time. will revenue see opportunity time, it So, but over we outsized sustainable

Yes.

haven’t deals forecast into Let just market But really really the none not it’s on benefit products go well, services that, then is think put expense me is clear – and of just we consumer synergies, that customers it And successful commercial success, the just think of side share. both And to a the that to how success, and this side. ideas going the about in the very it’s we be these forward big were that our been I chime who have going has had cross-selling a point. go we our broader to in are big to as after and more here gain are at get. and which if means some we

goal feel going to So, look built years Philadelphia, within is New take us. in to on years, would Boston if a be starts of we and to X run home York what for what we X and be built in like a

you Thank very much.

Thank you.

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

now is open. line Your

morning. Good and about question Thanks. I reserving provisions. a Hi. had

understand where to back looking of going XXX where are XXX the just all at then ISPC you pre- on, So, just do and just kind – is ACL with CECL wanted stuff reserve growth your mean vis-à-vis further that expectations to the Thanks. a that you think laid you release that lands And out relative provision what blended day one? or charge-offs? for for does

I not good back only that’s but were question. you I bank blended are mean the a ours, regional that speaking saying set. their basis, actually is would rates quite their on investors thing when than were I Yes, a first blended, say, I And when about think good. if you actually cycles, look lower different profile in loss you the think peer

So and that number given help a things that etcetera, profile. collateralization, and of other the –

slightly to little pound-for-pound, and where lower won’t are. call CFG they come it, a and we that ACL than hit standalone a come a lower so a by is huge So, they have it are lot, XXX on and impact, the not CECL what in smaller, with but they

day perspective, might that on a one a we cause for that you how sense basis. to XXX, down blended was are tick CECL it at us gives XXX. from So,

of existed CECL back we of have since earlier, businesses then. and a in of we and commercial slide might and lot been adopted, improvements mentioned at We has that significant have kind the as when retail in deck there out appendix, the the portfolios was significant concern cleaned have both of ‘XX end in the

down. else all So, opportunity book the you for as holds needs could equal back see as those tick to needs long macro some for

I think growth. the be all on of variability loan will

so just we lot. growth by a not for little to are be provide and than going loan a And we our but are lower here, all-in probably

make forecast possibility in – we a could macro engineer from and will to what I respect obviously, really certainly, the if with somewhat. would But we how The recession of landing. are the it’s I right now, would other is feel the credit medium-term positioned Fed XXXX, of Ken, ask a Is you we ‘XX. change have a is a soft recession, unlikely can standpoint. say me good to like about I think, call, or look there higher wildcard, kind long-term dynamic which a that

the starting be And are metrics lower. show while. a least little I Whether those we numbered. ACL of should probably in like a down to think case, to at good more go is to not here, can still the are credit on clean going days kind from I there huge may we amount going for John benefits feel continue net any a So, said, provision still But line, but tick the as numbers. think

that, And points basis line see about. was commercial as to talked the XXX follow-up Yes. utilization you a up to Bruce, it nice

guidance. your growth year reiterating are full You loan

supply markets. us Just how activity, Just the the for just the possibly – influences about commercial just going on color of business how sheet the and is feeling out door on wondering a in kind that between you and of terms capital And commercial side Thanks. your also give on-the-ground economy feel growth? if of can views chain constraints? in versus loans trade-off balance the some

has utilization Let see the it’s up. me really word the color. line best just to Don a say then and nice But clearly, pick

is in defensive nature. Some of little a it

So, been inventory their have worried about people supply chain levels. and

so can out to that and a they it. when need the go they buy of And get hold materials

light in also been is of and materials those to supply the inventory would probably biggest So, is a I more. little cost chain which causing build of driver has say issues inflation, that

be, doing and smaller that There number would offense is growth. say, a in in that terms deals So, I of – well. doing is still one. deals, of would people as little playing kicking There bit

looking confidence firepower think the thing is is earlier done. what to I put in to to the Don of and deals tons amassed that markets that get to has continues mentioned give is work us capital private there

with And turn still me activity some growth. let deal-related But fuel that, that should continue is to loan so Don. over to there it

Yes.

like that. And in and area So, of a of the capital markets to back the I lot think you do half we leverage things activity buyout it. the second the of question, covered most is

our should $XX lot we for that’s of a So, don’t holds continue and maintain business. origination an which be. want our distribution that in We balance about it million sponsor sheet, average to on business, of

that a are mid-April. that So, a bit very is risk seeing here trend careful little higher from we very even we will in profile. actually as I sit say diversified, utilization the

of cost trend really that is So, driven by goods.

broader is there stockpiling. them. hearing increases we cost Credit as the of are of and a said, a aspect ability little over with growth were these something ire X an a in to But varying pressure are it hell good. There where some better things just So, position entering, But inflation the companies restructured our last on margins we bit they a remember we on quality, is pretty pandemic, as have slower they have companies feels are the an seeing have from ago. They they and question been have pass that is of customers. generally or positive slowdown much their entering standpoint whatever be and years from management their they through whether businesses the years costs. cut would that’s than X just degrees

are clients as companies they gives slightly seeing, of middle are that Bruce confidence. certain buying other a the where being market a in are And where are channels are said, activity lot right seeing that opportunistic that each seeing M&A bit competitors we now. little of are they are us So, weakened,

add on the you thing line is might financing last one of securitization… some The also subscription Don

Yes.

warehouses. and seeing equity our volume in financing in So, private we securities for businesses subscription line our are significant in the significant volume asset-backed

are and loan in continue to markets those of So, very both growth those see we strong books the on activities.

the Great. Thanks all for color.

Thank you.

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

Your line now is open.

to of growth portfolio high-single you digit expectation and terms in your help C&I the for unpack the drivers commercial deal the there terms I CRE think as color well? ex trend loan Are appreciate the demand. morning. you Good perhaps and about in ex-PPP perhaps Thanks. and you gave in of the growth the growth behind XXXX how able

Yes.

I don’t start why So, with that.

are side we on C&I on basically PPP. So, to nothing down almost the

So, mirror. that’s in rearview the

not our So, growth loan projections. any that’s in of

that growth is really we referenced CFG loan have the So, growth. loan

side, not of We investors on rest have of for the assumed bit lot bank growth ‘XX. the a little but a

and office, are business are the CRE, C&I multifamily, we growing seeing making very of on our pre growing CFG industrial are science we still growth. very, are basically comments second say fastest. lines focused a fastest and the specific. life is lot. purpose-built are not and a the little modest all I So, subscription really but And bit would we on

and We are really off retail. hospitality risk on

which little bit volatility little a markets, loan are in bit of into originations aggressiveness now, we bit CRE bit The continue that market getting the little seeing our of and strong, business of a to that’s lot high. and is are pipeline, but capital right Maybe both the are a decline. of the the that’s we a the have fight a maybe benefit seeing lower begin in are lots coming quarter of saw lot not from And pay-downs, were it’s So, year although we this we was and issue up there. for activity been quite high where very, the little that the year we are almost fighting a eating last and really book very also origination whole better first to really of running activity a pay-downs the pay-downs receiving. but

a And I separately, credit the then just there. on Great. helpful. question Okay. side, have That’s

of delinquencies, terms that’s in mainly the XX-day mortgage NPAs indicated off I coming increase in In the and increase the forbearance. know the you

in to of the on consumer Thanks. faster-than-expected those color then of minds credit there give a – you resolution separately, you if And or little confidence of items? the could of give your perhaps Just side, partnerships us terms normalization want in in your anything? terms merchant in

it’s Brendan. Yes, can I that. take

an of On have expected. quite for the mortgage These fully side, of this sort some administrative time. been that move is customers forbearance are in

coming repayment value. that We have de we its schedule very our extensive on the on analytics on got and much mortgage a we Especially side, significant minimis. of are off to loan have exposure have loss to folks how coverage forbearance done on full to

confident really feel we so And that. in

the normal. that on signs up see we consumer we in tick much to book, a broadly haven’t seen Just to starting any return early are of

depressed. and delinquency expecting spot significantly in very levels one, generally remain the strong are We but

merchant have not the and around maintain we whatsoever. Some about years any portfolios loans shown point-of-sale and of on talked have the a over and incredible early of strength in signs calls lot that uptick delinquencies others newer student these

almost we around really to the to the the and consumers positive that levels every been, sort the feel confident are we state on credit outlook, So, we of NTO. ever month it’s of beat lowest and what seeing on continue

the down. consumer, ledger and is And all-time checking really of at consumer still in when excess of I – side really accounts highs, think good. the for at I you a lot they average hasn’t liquidity, other So, feel still the moved the showing are look money

it’s lot not seeing in While and and customers things, credit using outstanding. we adding a are velocity of spending for to paying cards

would credit up start So, in line, to receivables I in order rebound the to see to a will the you see see in built consumers’ credit correction some meaningful on believe have wallet a that you up on to excess think cash building card. deflation the in and start the

So, we haven’t seen that.

So, all moving the early yet. aren’t indicators just

do just Of right it course, but expect we will, it’s not. now,

take it. will we So,

the green, which that, all and great. are is I would John, add signs flash just early is to warning

things in consumer monitoring. the very Brendan rates, delinquency on really, roll few heightened. commercial crit/class to continues heightened on is that the all appear the are the side, Similarly, There really and go side, down of ratio the credits So, good. some quoted,

So, for the future. that also bodes well

like a and feel But that we these really item one balance You you about can around for number of overall, can charge-offs very kind for low for NPAs of positive see the the year. bit. certainly can outlook really, – levels things move kind at this of credit little

Thanks.

Thank you.

Securities. Winter comes Wedbush next the with Your from line of question Peter

open. now is line Your

plans are any manage given the the just was I or it some any sale just there available maturity move like of this? held of curious, to or to hedge plans to securities rates rising any into Thanks. for portfolio

with are it’s about mean in you in less little high-single Yes, I call – quarter. if a question. we a it, than XX%, I bit think digits good HCM, the first

things we upon quarter I think second that, based you see number in the a that that number will will are doing. of rise

We we investors CFG own. had profile are, are there there that on looks $X book we securities putting attractive of place now are highly given acquisition that environment, we a of lot have of securities standalone. – standalone, and just profile north at we kind of that billion the yields, like the securities rotating the they of just And then the there on is the out XXX% securities course is of to of into the closed about that in to grow that a just work

of and opportunities are address HCM that, the second in you likely So, to rise quarter. the to there percentage is lots see

billion time these you secondly, of if HSBC and you change just in Okay. think then you hold about at it I deposits. about Do Just them? grow deposits closed talk just Thanks. in in May, was you just And $X steady, billion could think the announcement at there $X.X acquisition, can the the on the levels, – in outlook. deposits with that

and is that Yes. Pre the customers deposits principally more in day we one, by capabilities. international legal of banks business a rotating that into their rundown segment have online driven are global

pay we day with the And good would that very you news We we level of day stable normal is at had a have of since to that profile that, outflows the one any and seen our normally HSBC. good day looks for really kind deposit is like one, accelerated customers that portfolio attrition and so the had weren’t back it post customers strong expected sales, banking on essentially pre-legal level that on legal deal the the were of expect of premium those a is that book. a twice in in the get in The we at like core. news at modeled one, legal broadly attrition good lot sales given going than didn’t

mode one. be activities, our got would we on deal be and benefit bit as a get now model a on stable day the marketing some ramp we we offsetting so of up to expect growth do to that start of obviously the in And into side legal which shortfall deposits

that really are six weeks we really, on So, weeks seven signs we we early are or feel good here the in. seeing

it, legal we that we and one. for day the just pay one to to want legal add, add transition post attrition had with didn’t to day it plan. that the the pre happening I have produces Just trend

lot. Okay. Thanks a

Thank you.

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

is now line Your open.

Good morning.

morning. Good

with a that did opening something Bruce, comments if something Thinking was New to that this the said wealth acquisitions obviously, that York franchise in in the focus depository consider a wait you consider. Florida I deal? you came at or Metro the would again, if right until you integrated deposit your marketplace, the in about build is priced space, attractive you up just these you but would is the we you integrate as get things be year out, have you you know are to really fully pricing York, played we full that we are we before and, that doing in New is consider, know, what something could going

a soon. Yes. depository I there looking don’t see us at anytime

that think have this and getting do York off New Florida I enough in a launching really job we to great We strategy think have got Metro on that start one. is our is I interesting. plate

right make So, those and Naples and novo starting attractive had in from get really one wealth HSBC, the levels we centers, come in staffing staffing or in that locations so to good one and de to the that and traction Beach right with very those the then we we branches we Miami couple focused of over markets. launching had And some customer in area. a on Palm six can five

and those drive again, and keep to we people, is of an the to city make to talking sites so that one share. keep have job and And try make and and really of performance could kind smart really in that’s work, in what up we we where the market with next the think entrance trying figure out to gain come keep where getting some

So, and focus, get what smart and that we productive. but that’s suggest trying the market, will make to have the me, on to we keep let’s

to make respect kind we very offerings with footprint offerings ability on us platform. our are to for recently, really really exciting migrated going outside it’s cloud-based have I unlock digital heavily where integrate in is the Florida other and us, for to we broaden new we of digital those core platform, would the are our of a core and is which to the And bank. The investing elsewhere point

then we complement like also we twinned physical digital branches what do Florida, markets presence of start over bang our some really figure to out the with through we in light kind will opportunity offerings. And that’s need can so to And those platforms. digital time,

exciting. pretty it’s So,

have branches HSBC. Washington a from we I ten We nine opportunity think up, picked where the Greater similar in area, it’s or

right into presence. from test growing effort there So, the we combined really other market ten do alter some through nine put decide number, can they right want digital and with is or attack that learning branch and might try Florida attractive Are and to and digital the presence to next we locations, are using some then go from that in and cities thin where to DC. we need

of dramatically. down to How pivot and next the weigh and deposits on talked question Bruce, deposits. guys you come how good you Very about have certificates is do

sense? is the up You core in a X% funding higher very today, moving got year now when almost does than with went so you with as on low-cost of as DDA balance balances strong quickly higher discussions long-term commercial course. now have public, CDs the rates rates much well when compensating at there up? for seen on make And XX side? guys move do But start when Don, customers the more your compensating Have then asking you balances

early relationship the customer than a to in rather part pseudo last be Brendan saw wholesale point do what way And which got think is that CDs Slide think relationships. sort is on there. – played and I would cycle I much our is you thoughts CD I I as mean than before. this and our out was customer we of funding earlier, story. Yes. in think connected of approach, to how portfolio and a I about ahead the that start, from could that couple all X, start it you what a that’s go a of at the things the for it heard us, whereas smaller And will cycle there going is be deep

cycle, and The the a during longer the time, to to the CD quickly think cycle that how cycle the you going years. over last think in expect X part I other is cycle keep mind lower to due X took betas be thing to years is last we go. to

kept up they ratcheted to you getting so CDs And of maturity. came cost time every that

be given something customer utilize do part a absolutely think will base. and the CDs CDs can tool relationships a deep can off lower I be cycle, story of So, that a shorter coming

So, the actually that’s that as over is you natural high And quite the have earnings balances will credit rise need to side, point. get that as migration, rates second commercial as to point first that’s the don’t compensating balanced time. on be

So that will deposit into yes, betas some there into that’s we overall. of and articulated earlier be the built migration our that built deposit costs

relationships but and well it’s and on that expected. interact the the will we that ways point And there controlled the as side, we of customers given there that our can deepening so with are – commercial same number our migrations be expect those

Yes.

gone levels over or so information with as out the our of pricing exactly I deposit the bankers to our right. part discuss a we overall think and And with managers. package all all month of or relationship have relationship, that’s actually last with full of

we of top well it. So, are on

We people other some have had basically deposits, but any we and backfilling a pull to haven’t had bringing outflows. in deposits cover problem

Great. Thank color. for you the

Alright. Okay.

I queue. Have day. by again the a dialing interest in think that’s just everybody Thank and me support. great close thanking your it appreciate today. you. for for let in the your We questions And

That your call. concludes you Thank for participation. conference today’s

disconnect. now may You