PNC Financial Services (PNC) 15 Apr 202020 Q1 Earnings call transcript

Good morning. My name is Dina, and I will be your conference operator for today. At this time, I would like to welcome everyone to the PNC Financial Services Group Earnings Conference Call.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. reminder, is a recorded. As Instructions] this being call [Operator

to the Investor please I turn over go Director Sir, will now Gill. call of Bryan Relations, ahead. Mr.

call everyone. Thank CFO. on Participating President and are and to Hello. Rob good President call PNC morning, Chairman, Bill and today’s Services you this conference and CEO, for PNC’s Group. Reilly, the Financial Vice Welcome Demchak; Executive

today’s forward-looking measures available and as investor our of materials. These no obligation contains materials are presentation in These undertakes only release well PNC are website, all Relations. information. non-GAAP under as reconciliations statements to and of other speak on Investor about well update information Today’s pnc.com, XXXX XX, April as corporate Cautionary them. this as filings included as earnings materials SEC statements our

over to Now, I’d like the turn Bill. to call

Thanks Bryan, everybody. good morning, and

our and our this pre-provision the the As credit a March in basis, morning, on of COVID-XX material to breakout impact losses. the had for the were a economic extraordinary but you've results changes in the broad-based the solid occurring on response provision for seen implications backdrop quarter

strength. the is Before a the current navigating challenges a country pandemic to through period we profound PNC financials, this acknowledge and of into Obviously, from on is this these impact we go want environment. people's and face as the I global a on lives challenges economy having the are position unprecedented.

those who that are implemented our mobilized be and XX,XXX in incredibly frontline employees immediately to for to remotely. our can't pay have We risks We provisions roles enhanced performed to the nearly working hard serve mitigate customers. employees

time, a employees, work are managing which more XX,XXX the model remote transition to volume our a their our in quickly from us safety we've who allowed Our of call homes. center high very invested of from for than heavily those call including over technology, to

which stimulus federal we loans and to to and technology other prepare Our are respond consumer economic relief also for through quickly government's and to package, the allowed us customers. supporting business

program we've applications. online loans. working our $X and registered thousands in actually as As over an these X, of protection at since SBA's over including launching XX,XXX paycheck the process to documentation with requirements, on this requests portal have April loan tirelessly of aside, accordance morning, these And billion this we people worth of point, have received something

Also, mobile and challenges, the online tools of convenience with banking to continue critical ability our are disruption. economic continue in the minimal strong and our us to withstand environmental allowing confident are provide banking current to Despite headwinds. security to services we

solid have fourth We end grew We liquidity $XX billion compared the the and billion capital loans by deposits quarter. to positions. $XX by and of

commercial this loans have through, on loans our in support industries was in new billion largely entities credit, in take over billion $X of key new While provided draws hospitals lines $X to to to we COVID other care driven new you health and since going country municipalities. and the loans Rob's as including by to outbreak,

of loan and over normalize. few seen rate draws April, the the side, in weeks we've As the last into

consumers. dollars In of thousands in We're a and the with now since seen modification growth forbearance growth addition, loan the to COVID-XX. processing outbreak we've in requests loan of deposits, the meaningful increase for equal

Today, consumer modifications, we've sorry, had April XX,XXX processed as of – XX.

been. it loans hardship experiencing country despite may certain is our are our in owned, financial challenge has that be others. that clients as bank remainder of greatest we these to with ever the experienced. the of the This uncertainties, service our and commitment XX,XXX are their XX,XXX, for Many them Importantly, for have ever being as of many

CECL increased X. are standard. $XXX shown of the X%, provision the increased losses for first And Now, the while million for new credit earnings quarter our on $XXX results slide million, pre-provision reflecting

scenario developed I has on to since numbers. account that, the we say COVID-XX, our books While we these to closed economy economic worsened want the for

insight Rob have was In still by and fare severe. on scenarios be able that dividend, become instance, Now, well maintain more to provide standards with highly would we how the been capital and our will liquid if impacted situation our how some we while complying would to developments capitalized, be

yield And Rob which I non-interest our security some realized book the disruption we the to markets occurred one point the were to take And this in income securities statement, still thing increase that higher our to stepped inside is going than these you managed of gains by before quarter-over-quarter. of we as gains, of taking but fixed Fed the through on income advantage our usual income in. wanted out quarter.

and think So down. you securities yield and we them normally, replace actually goes our it, book you book your about this yield sell In increased you securities. instance, in if

customers thank I and recognize over to Before our it Rob, going turn employees, want address above are they challenges many to day the our to that help and facing. are beyond every I who

our with our Foundation PNC are markets. upholding to we by critical a to communities critical allocating and Additionally, role coronavirus together regional playing serve funds efforts relief presidents the our a commitment across

to I'll that over for to take with your a that, turn And Rob quarter our and we'll at closer it then with be questions. results, first look – happy

everyone. Great. Thanks, morning, Bill, and good

X basis. and on balance slide on is spot sheet a presented Our is

to due focus typically quarter we're economic impact this going the balance substantial spot the on late we to balances of our COVID-XX. cover quarter While the in sheet, to related increased our average activity

loan increase driven XX, side, asset XX% March approximately This in commitments. loan higher of utilization On by of to XXXX. were at compared $XX balances $XXX of up commercial billion, reflected December XX, or billion, primarily billion balances loan the $XX growth an

from X% to regulatory Investment liquidity the Also, billion X, our Federal XXXX, linked balances quarter. as billion March in cash securities $X.X down $XX from year-end, at part increased tailoring XX, benefits rules January our billion, $XX of due $X.X the or Reserve the billion, effective of XXXX. on were

XX% XX, $XXX proportion high commercial March us billion with due and of or billion the back quarter. during to at activity compared or of XX, debt the a deposit deposits XXXX. were to funds A And billion balances the deposits. were increased issuance $XX side, placed borrowings, $X.X loan billion liability the borrowed linked up form non-interest-bearing of FHLB On higher December quarter. $XX grew in Total draws as X% increased result,

as capital. of to impact As election Basel decision March equity to Tier X as XX, to out XXXX, our the X.X%, estimated reflected including phase of tailoring III was in rules, of ratio on regulatory estimated our which the Common our be our AOCI, CECL's well opt impact

on with effort the we in this our PNC's It time. the to U.S. repurchase conjunction Federal program remained XXXX, economy stock did While strong, announced support suspension of ratios dividend Reserve's our March XX, capital impact the common during not policy. temporary

common as of of compared per an $XX.XX to was value book X% March a year ago. tangible increase share XX, Our

coverage Our our regulatory loan-to-deposit ratio XXst. minimum exceeded And was liquidity requirement. ratio XX% the importantly, at March

on Slide commercial their can funding funded commitments see grew declined billion, you channels. lines $XX replace As to X, liquidity and alternative bolster by approximately customers or loan down as

As our utilization rate increased XX% result, a from to XX%.

more are investment-grade is The experienced from drawdowns utilization and we've across increased two-thirds of the borrowers. than diversified industries,

second that's well at the remained we were normal slow the quarter. saw of and begin far to during While quarter end the the mid-March, drawdowns case so activity in above

balances expect do be we some loan for said time. elevated to That

at Importantly, to customers our committed work critical system to positioned putting to and our liquidity. well broader support resources time. strong PNC we're is financial with the and this And capital

window, potential As available discount substantially see $XXX from These our XX, as Fed you readily necessary, should the ample availability can funding slide, of on sources, meet needs sources. approximately customers. with March the we from billion provide be of more the had to diverse of liquidity along it

provide to X, Turning of time. to and we're Slide through relief variety our working a flexibility this during solutions to customers

and business through emergency the loans, including side, relief enacted for On we're those Act. federally provided medium-sized the small commercial offering Cares being

mentioned. We loans applications the have Paycheck begun have successfully, Bill received to those of thousands as just protection and program through fund

Additionally, to the and/or clients, commercial interest form deferrals. we're granting modifications of principal primarily loan in

borrower customers, through loan With our forbearance. analyzing and on also decisions and individual on based we're these We're situation. making consumer granting each deferrals extensions, modifications modifications

periods consumer primarily halting certain and of to foreclosures, modifications, loan over have offering COVID-XX. related XX, grace charges. And As while relief the waiving we addition, in fees extended and April XX,XXX we're of in form all completed

to first partially the fourth Slide higher as was linked funding quarter, As million compared of $XX as by or offset and X%. costs Net one total And were yields as quarter well in interest balances quarter you up see quarter. revenue lower million and or the income loan security $X.X less can billion, down day X%. X, $X.X $XX on billion was lower loan

that was to or income. quarter, income increased basis margin by, up large rates other declined linked lower interest paid in X.XX%, due million lower net fee part quarter, reflecting stable revenue linked points X% X on Non-interest deposits. to $XXX non-interest offset Our

the or categories flat fourth declined quarter with to expense X% Non-interest million $XXX down. all essentially compared to

XX% quarter, And rate $XXX reflecting was COVID-XX first effective economic in improving quarter Our the XX% loan effects in efficiency the the was XX.X%. ratio from credit quarter. our of including for the of first quarter adoption previous CECL in Provision million, the losses methodology, the and was growth. in the tax first

monitoring to our related evaluating we're the portfolio. In and economic light current entire naturally COVID-XX, loan of circumstances

to X. However, slide we impacted sector believe be the likely most is industry on are

retail, together this loan are loans these Our cruise outstandings loan billion, outstanding restaurants $X.X most we're group, XX% less billion travel. industries airlines and exposures of $XX.X of $XX.X focused billion in Restaurant our total are In asset total these billion. and than our are outstanding represents totaled loan XX which $X.X to certain industries and to Within as retail, March $XXX commercial and of loan million. parts balances of Corporate X% on total lines based. leisure are portfolio. balances

in properties and is most of under investment portfolio, portfolio a XX%. commercial are to includes construction, which billion $X.X exposure areas are grade. LTV $X.X of REIT of COVID-XX. remaining be we XX% This our The of $X.X billion stabilized In by estate in CRE with impacted two-thirds all have of real likely billion, approximately which to outstanding XX%

energy an portfolio our end first billion quarter, portfolio X% relatively loans. in on of the of the had oil and portfolio oil reserve-based performance outstandings slide and of outstanding in fourth you XX. the XXXX, lending to the This gas At updated of or to this on last this total of and with less update the especially Turning gas on our respect given we We through than downturn oil were pressures continued $X.X just gas is loans, structures. with the the total while XXXX, of last we pleased industry. quarter

the the XXXX upstream of all Nearly in from to notably, fourth which our in in segment, XX% of structures well our which the book, downturn million perform XXXX a which XXXX growth $X.X asset as based. under from $XXX percentage segments, has this has losses the primarily carry of stress. and as quarter loans the or been is tend midstream these portfolio our well of billion occurred Accordingly, since as relatively services of declined sector total the approximately

We will portfolio. monitor conditions continue actively to and manage our market energy

loans quality basis points. fourth the Net charge-offs with loans stable metrics credit the Slide quarter, increasing total Annualized $X Our presented XX. and stable fourth to million. charge-offs quarter net were leases with was by are XX on also for slightly at

increased total loans million X% loans to loans and both to delinquencies X%. quarter. total The to loans quarter XXXX, compared total Non-performing $X linked in million delinquencies ratios declined December or for or the and $XX decreased XX, non-performing

the of for loan the can you increased on X, $XXX XXXX Since increased CECL adoption effects our CECL approximately to of our economic substantially reflecting $X.X COVID-XX adoption first and the growth. reserves quarter of January by million, billion. we've XXXX, As see, including the methodology, provision

allowance to and March X.XX%, was result, total non-performing was XX, our at to loans a loans our balances for including XXX%. credit unfunded As allowance losses,

XX our of the CECL. our Slide allowance under credit shows and losses the increase for provision ultimately to drivers

transition the one attribution shows portfolio of well as million, as $XXX adjustment reserves changes increase and for the Our in factors. CECL economic day

first balances, for activity. quarter represent Portfolio of accounted $XXX change of in impact XXXX. of credit for quality reserves These charge-off shifts changes in million net our and mix as loan age the the the factors and as well

our four represent our applied we an average scenarios to and of Economic portfolios. quarter forecast a three-year To and loan forecast end. and period supportable this, evaluation at a use reasonable determination economic different factors economic of accomplish weighted

transition March crisis. emerging calculation, Importantly, when provided each scenarios increase quarter. million This used time scenarios, an the our were of for the address to of approach at as compared scenario blended COVID-XX of these the reserves which to in a $XXX in XX, designed the first resulted for

the this the of largest GDP. For year quarter pre scenario, second XXXX. with fourth recession quarter annualized In XX.X% of finishes this variables levels used the down peak a of the being GDP blended contracted occurring recovery approach, by X.X% number in economic with and of we the driver XXXX

of in has CECL factors Since our other a what first the the suggesting GDP finalized we the backdrop worsened, scenario and economic XX quarter, our March end estimate, macroeconomic when than contemplated. deeper decline

accordingly, Should these build reserves material our blended macroeconomic second which in quarter. factors persist, would during a likely scenario we'll adjust the to result our

Additionally, our liquidity extreme determine adverse isolation hypothetical stress most for in impact. capital purposes, year-end own to we and our a consider informational XXXX scenario

severely scenario, This leading scenario of contraction of XX%. decline third second is in than adverse decline a adverse followed XX% more compares a trough by assumes to This to XX% quarter, scenario. severely X.X%. severe quarter in XXXX, the XXXX CCAR to of CCAR annualized the annualized peak trough the another GDP peak contraction even in to the It

expectation be variables likely continue under To that capture provides believe ratio the potential support attempt to an dividend. and exercise of does simply to in would is to nor our arise, this results This would us an outcome approximately current we year-end XXXX, our this these not unknown circumstances. clear, CETX allow at all X.X% approximation but scenario

looking COVID-XX expect we of a challenging a as result environment at year, the the of the In summary, remainder pandemic.

expect range rate basis its funds of and contraction remain in current Fed to expect XX points in We we XXXX. to a throughout zero significant the GDP

biggest U.S. the the will and and impacting of variables programs. the length Clearly, support economy the the of be the stimulus efficacy massive government crisis

these the highly at prove effective, government duration the knowing no naturally we While programs and we're have this of time, be short outcomes. will way hopeful

our visibility Accordingly, low. is

we year. we quarter full based directional However, can some second for think on now, what a and provide the guidance thoughts

quarter a compared to second the our spot average expect well quarter to as in quarter increased the we anticipated level result high-single-digit as customers. consumer loans XXXX commercial range the be as of For funding and end of at growth the first of of additional XXXX, needs in

We expect stable. be NII to

that noninterest total MSRs to approximately expect the elevated quarter. down the income generated the XX% amidst we to gains mostly security be We reflecting during XX%, volatility first and

for on in also categories softening weigh crisis. We general well, expect service during particularly fees our while continue to as deposits, we fee some customers charges this

million, non-interest effects quarter-over-quarter total $XXX flat charge-offs, to to And to net quarter crisis. expect be between expect we to experience million We the as we to and regard be down. second in $XXX expense levels economic of up begin the

both reasons For to XX%. the expense stated, previously But non-interest the year full year in substantially revenue mind, visibility down and limited. our each that is for and between with full we now be X% and expect

And with questions. take are that, to Bill and your ready I

America. [Operator go first Bank line you. the with Your question Erika comes of Instructions] Thank of Please from Najarian ahead.

Good Hi, morning.

Good morning, Erika.

last a of dividend. obviously, comments down the as What's the think company rate. we versus on appreciate I'm I that unemployment about wondering, losses, nine about the in difference year, over this think X.X%? you better? And I'm extremely estimated at much the of scenario staring the different test adverse your and run from in severely Very that's losses as X.X%. you that from adverse think quarters, economic scenario, scenario what's outlook how adverse cumulative compared And clearly yes, we're to you that wondering, the a negative, severely

XXXX, Well, CCAR whereas want, the just with in losses basically had billion in jump -- $XX the you nine severely us the ran Rob, had scenario billion of over adverse on $XX losses, here we and coming severe in up quarters. the cumulative where roughly

And…

soundbite much a it. It's that's Maybe to worse. simple

Yes. that's exactly right. Erika,

those that So losses whereas nine that DFAST we and contemplated into months nine quarters. the front next over sense it's more in the end CCAR severe

to we GDP? what peak on do the do And trough,

XX% About

on… X% Versus

X.X, yes,

adverse. X.X

right. That's

So much and sharper faster.

Yeah.

what be. could question, cumu the actually clarify I'm losses your wondering Just you think to

that So billion we that XXXX extremely with adverse. and of in scenario $XX point severely data that there's then shock adverse have other

you So could what on wondering look cumulative what the -- losses now based know like?

an unanswerable question. That's

this happen going that from So we we in tried my higher of changed We saw recovery was assumed. be I had than V-shaped do thinking more We script to closed fast that you it claims to U-shaped a had was barbell would what the a books, you. recovery. we into and for since we tell

comments the we're build likely we of out why that reserve to put second that's So have going into quarter. there kind a

If to in have we would reserve true-up perfect book on we first the future marked current growth. would economy have would taken had provision quarter here, foresight our the effectively and based be simply

the assumptions, a mean out than it quarter. It going it's bit lower dragging into So the be quarter. down. further In second the to again, way we're mean that would sort be go necessarily doesn't doesn't worsen from we'll the our unemployment it's than That higher reserve see economy given little first higher, going of practice, to seeing first quarter. build

comment magnitude, the No but of the on are. we fluidity where

Yes.

of it’s So, I What with unknowns we we it regulatory was I all you out some points over trying as a it are give that useful; I science basis make exercise. can -- and that still XXX and just precise ugly minimum. there, as make to simply think these point, don't liquid show did the highly think useful at

So we in can environment. operate this

And that's the primary point.

CECL where Understood. the unanswerable. loans we to But is have management question by of -- pro in first teams I'm terms some as cyclical recession, is of build could have wondering noted probably is that And in could I And this if, sort follow-up again, CECL to? reserve nature. our construct. guardrails many And obviously, a equally

PP&R an question strengths given is provisions of future to the are anticipate recognized. charge-offs levels have, investor big be opportunity and banks ahead to the when that, the of capital guess, I amount seems And there

to and draw you on costs those painful. allow CECL charge-offs -- actually recognize precision So, charge-offs there the as be your when the of would the won't perhaps is something in hit in that ahead

question. CECL including to yes, it then basically, charge-offs. and of -- portfolio the its portfolio were our CECL mean that's today, rundown so in entire XXX I reserve of perfect And the a our Let me economic predictions the cover form, upgrades portfolio, be as additions if would provision change itself the any would downgrades in correct, runs down, portfolio. and from the come would --

ahead So, the charge nature offs. by is very its CECL of

loans. the Like

that. has Yes. those embedded It in

what here to they decline if would lending, through the provision provide our for in first of correct practice, were beyond growth. that CECL print they but loan simple theory, if that in we correct, we get the And is if were, is just therefore, And from the we're beyond covered. again, designed what would through think the So our any we quit and and in quarter, we year. weren't first That's conservative enough, were that, assumptions economy do. And In more rest think provision exact. quarter be the saying elevated the will worse. we the can't we're

right. That's right. That's

That’s I Thank helpful. you. it. appreciate

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

Good morning.

Hey, good morning, John.

Hey, John.

to how scenario you we scenario. you tough that that you provision way? would to much first color up. that back severe quarter, figure versus can't that to would us Can the your said addition in of that base potential embedded point in like could trying out, under your differed bit more in size the how little the it's just give guess, -- second a around much how I XQ. reserve So have quarter incremental out think I you roll the it I'm to the know material magnitude, addition about

by I've something are just we billion, provided one kind not the X.X Go for in happened people what the economy, that's about to context Well, charge-offs quarter. it $X.X think severely put I but of from back times against we we other adverse the that Versus charge-offs. versus do, or basics, like seen what's expect. into the in talked

quarter, That's correct. the ratio prior

was little to That's that. what bit pretty done, everybody similar JP has higher than a

think but light, it can we magnitude context of kind are But were number. not been we're I around been the Yeah, what we know, light. it's couple –we number that from Yeah. here. and – maybe. that's against people a five And point. orders have suppose And you more. a to of week making by way, number right – a It's Should if give times? in have should a final I'm hundred different of the up again, have I now, million

the situation, fluidity know, of so you as John, fast. The moving is

given good So XX. It's then. day, on change. the March felt about deteriorated can We at our scenarios any estimate from

can CECL around go move lot we For couple second our estimates the in. we'll a And months. when of to the second quarter, all over factor next it quarter, for do the that

I – that that are the models. withstand that big amount fact from some at – of similar the into actually, gain the for not as the And of date all of reported goes the notwithstanding least of comfort I kind CECL function the banks numbers magic did have that charge-offs. to Yeah. multiples all a

And reserves are increasing substantially.

Yeah.

it. Got

commercial of in – consumer then terms starting on in you have see loan And you are, to gave the your modifications. us And appreciate balances end? right. terms if restructurings on I color the modifications, But you All on Okay. what the the side? you modifications the of restructured commercial amount are or or

Yeah.

Just comments, I slower. that we in basis customers. – individual And that's on with my mentioned handle been an John, as

some So but the there's on near the of side. been consumer volume it, nowhere

Yeah.

think changing interest we waving we're of something, for aside, of They've kind of XX related, commercial, I not an good about where and surprise, the estate of rating crunch, an they something. clients. it when payment cash necessarily think outright do business Much or A it – happening credits. downgrade. lot the deferring interest it, days it it got occurring real credit, as or isn't a were small with what's we're or trigger smaller doesn't so actually flow

reserved we're of in for. kind by and to that's case. So it's It's it's and building result going it losses, ultimately, what case

on so, consumer. we've eye of second near the And but it's nowhere quarter it's volume got the our for something that

it. Appreciate you. Thank Okay.

Sure.

the line Sandler. Scott go Piper of Siefers ahead. question Your next Please with from comes

the I question ask on modification. to Yeah. was another hoping

your guessing, seeing? what are how the done, So And but between it's specifically, guess, what categories, guys where what's various in mode mostly consumer $X.X – go? break among the – you billion does where down have I ultimately I'm mortgages, that could that sense – of for you consumer

right is majority XX-XX Yeah. Right now, that mortgage. of bank now and it the owned, vast – investor being versus

The other category is largest. auto, significant mortgage the is but

Yes.

the And at looking just other I'm here. some -- numbers

for serves, on auto on thing memory given million but other have -- if we of $XXX course. morgs, we have that The example, in normal is, any we've auto, in day, where about half had the

Yeah.

we're some this of totals, bit So to COVID these basic in is billion. big of book. see out to you, kind how what break the And the much churn $X of A ordinary related you with of this of we in consumer. that little struggled close course in much how chunk is consumer to be is honest of really versus a

mortgage. the But majority is

Yeah.

And the round. investor majority is in

Okay, that a just in for as fees, going lot tack, have equity Perfect. that one, Do your guys to will those the all And things private up in we guess, where mean, a marks I right. little sense forward? persist. a the other presumably; look line other of you kind then, more I of ends aren't

Well, that's total I XX% least, XX%. why, with fee at for the income, we other to combined have being the down and second quarter,

precise So that's can get. as not I about as

Yeah.

quarter, see we in saw who but equity the Hopefully, private that marks we knows. valuation won't the first

Yeah, exactly okay.

thank guys perfect, Sounds much. you very

Sure.

Please with ahead. next go line comes question of from Instructions] [Operator Carcache Nomura. Your Bill the

forecasts through available and Bill on had Rob, the It XXX. on morning. Hi. economic Good methodology basing comments. sounds your a like CECL clarification question allowance you're I

and deterioration right? be though growth unemployment out date deterioration early about the you balance April. until would didn't deterioration into for further was GDP expectations that sheet of incremental because got to there that April as with we in allowances arguably not Is outlook existed extent deteriorating, in the it the that at find factoring even XXX And you

thing of the X market had weeks they was that the because shock a row week, the where was to the unemployment million in that went close. a that claims, the close most, kind No, changed right, two on

the that's change saw. So biggest we

to decline through correctly thing we unemployed think amount the The decline of The other right. need that we going impacting is of how unemployment think into the that's model of are how to dollars government probably GDP pockets. because this,

would normal model. it's the to in sort down more the than spike feel you'd want And So further see you that's GDP have what right. drive impact unemployment but to from of know, we that doesn't

the for that's in And a second challenge that's sure. quarter, us for

Yeah, the quarter. second as we go to

expectations balance I we see implication from was here? any post long trying forward to sheet as continue and the that to just were dates deteriorate as guess go I as delta to there's if

Whether expect there incremental growth CECL theory should we can capturing be have. even aside, any continuing, to be building already that setting course, reserve losses, you in lifetime of though

But marked gets economic expect when that reserve to the the best notion is basic of that, your outcome close you books.

Which what we do. is

Which is do. we we will and what what did

Okay.

today and what assume capture we in we're a that is second know else is what close the than we'll saying what the equal, saying now quarter. And we -- all I weeks couple we're worse all books, of post is bit the economy a little

that. we're Yeah, of mindful

trying we point, I as any magnitude. could orders horrific, my horrific second And in with simple it's To things as confuse if more And not we've the that. get you build third don't the there that quarter, right of quarter. -- to shown in it be then and number. get mean, wouldn't the We're

it and only scenarios. of the moves that into And It fluidity thing it's that monitor I add would Yeah. and this. to continue and it, you to it fast daily, all is, build just we'll know Bill, the our

helpful. Got it. Rob. Thanks, That's

Yeah.

income, great you grow if side guys period did I loan the fee fee the income the income of to the in on stepping growth guess, fee out recession, opportunity Bill, the one and I up gas may, last growth leading slowing And the, to for business. follow-up just on the

from now, this during that to will stand the back way both the several years recession? in out and period recession As think to handled we about look leading up do what itself P&C the you

our this loan said forever. stand is without going think We've book out. question, Well, I to

this, credit. I changed haven't about are going you talk our actually I way always of our becomes We have think expect that goods the say, going box. in to losses, cost otherwise the known. losses sold would an like And We're for be we credit environment but there to

Yes. Right.

think stands that I out. So

intelligently to crisis. I out in did to stand our going willingness think the clients to it capital is extend as

clients We and our opportunity going existing that. capital with have to and an support grow clients to good liquidity we do and are

our We stable management in is which some will doing fees through us know, and fantastically do support very and you is well as business, have, stable this. particular, treasury very

probably and quarter the strong. markets activity for the have been next very our so, or quarter We capital has for

team we is that and our So is in good when to Our And mixed we for, management the being here, our and in around built emotions falters. the with I else tirelessly support we're people support position. sit grow this clients as able a think a right? company environment really working company everybody run to sense

Thanks Thanks, super super That's That's Rob. helpful. helpful. Bill. Bill,

Yes. Thanks, Bill. Yes.

are There further no questions.

Okay.

Well, right. Stay safe. everybody. you, thank All

conference concludes This call. today's

You may disconnect. now