CMA - Earnings call transcript Q1 2022

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Operator

Good day, and thank you for standing by. Welcome to the Comerica Bank First Quarter Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Darlene Persons, Director of Investor Relations. Please go ahead.

Darlene Persons

Thank you, Mary. to quarter welcome call. earnings and morning, Comerica's XXXX first conference Good Credit and on our Bank, Financial Farmer; Chief be call Peter Officer, Melinda Chairman Herzog; Participating will Curt Sefzik. President, this our Director Executive of and CEO, Jim Officer, Commercial Chausse; Chief

contains details. are as During presentation, available SEC's our forward-looking the as materially well In and actual website, additional on you comerica.com. the be slides be Investor of and slides, which uncertainties cause referring the this call presentation should conference to section regard, statements. our This can in from expectations. vary Relations will that provide we The mindful press risks release results website of to that

of obligation to earnings undertake call this presentation, for cause speak actual as is statements in results Harbor X, Forward-looking and that which our to can SEC Please into refer any incorporated differ. date no forward-looking the statements. Safe on Slide to today's Statement this only as release the factors well update we as filings of

will Now, who over the on Slide call to Curt, I'll X. turn begin

Curt Farmer

strong the Good the cases you and joining relatively our morning, surge The in war and the quarter was in everyone, of economy January in Ukraine. COVID for first call. thank despite

were last loans, remained up quarter quality well year, market Compared XX%. On cautiously solid, was loans and PPP were the shape, optimistic good growth whole, expenses and strong remain first the the loans excluding our in first quarter exceeded businesses. middle customers controlled. and very and up corporate average about were general several large Loan they to are in expectations in XX%, Credit the future. our

slide rising Overall, recent sheet accomplishments actively with the for well-positioned corporate year off good our associated on start. rate managing our is and platform. remain We a to responsibility are are environment. Highlighted the balance the

last month, progress proposed climate-related climate emerging notice a for the sustainability, And of with risk we Related SEC making. rulemaking pleased priority are all is an the released regulators. We are for to environmental disclosures.

have in Change greenhouse gas and emissions, Climate disclosed and reports the Corporate responses XX Questionnaire. For to our we annual Responsibility our Scope X providing our CDP's reducing years, progress goals Annual discussing in our past X

publishing Partnership our membership lending portfolio's Carbon or June. PCAF, Accounting We in commercial have emissions. Through develop our will our Responsibility and Corporate estimates Report for be we begun to the of finance Financials,

banking we continue In our to and any forward of to expect reporting regulatory apprised the keeping on We or light this progress. areas path retail technology approach, requirements. of a We are facilities corporate are These change evaluating, urgency. you more our taking at post-COVID we environment, of meet evolving look with platform. even look acting are pace constantly and are fresh but accelerating with that the we

for the to we within maximizing developing improve focus. employees. flexible customers. best reduce locations additional accommodate our better and goal that serve we to our is around resources delivery aligning serve footprint our transforming optimizing initiatives focus our enhancing services, are arrangements, efficiency example, our The retail facilities on work best our while our to For small customers business Also, and continue bank, of our

the strategy are to We channels. and past far to believe essential colleagues execute ways banking these to are increasingly As years. we technology, we rapidly as utilize to have increasing as XXX customers focused foundational desire digital meet relationship our effectively initiatives and on continuing for

X; results, share. on are which generated our per Slide of we outlined to first $X.XX quarter Turning earnings

as quarter in impacted this was volumes to PPP was well Net loans. a lower first $XX interest quarter. growth offset are by refi in PPP These deploy as release. exception, portfolio Solid following as offset larger year quality excess and wind large and were our liquidity a Strong resulted Mortgage million the activity purchase record by broad-based in well typically as yields. by of the lock-in work fourth benefits in and loan first benefited Banker the small reserve growth continued loan momentum higher volume quarter due securities no slower decline in Deposits partly to we typical income as income. decrease seasonality, from down credit

generated expected, As of fee income levels record the maintaining year we was challenging. last

The negative was income deferred impacted decline in and on assets. first quarter by warrant-related large a returns compensation

seasonal And in we Overall, January. labor In In cost over pass to working balance the now Omicron positive, review should increasing shortages. We liquidity. several a able are reflected decrease activity commitment their which addition, saw Jim, in the by customers capital as more their increases the in price annual strong companies expenditures be Expenses and as despite loan quarter levels. detail. with uncertainty, on are such more call general, included to declined turn pipeline year. categories and inventory excess growing in businesses, some rebuilding the believe compensation. sheets been in stock have levels comp and $XX move growing our customer and we seasonality activity intensified I'll who is through and higher decline million customer remains robust will deferred Despite on sentiment in and

Jim Herzog

good Curt, and Thanks, everyone. morning,

at growth, a which Slide Turning million. offset businesses most steady Mortgage Middle over in rate in $XXX held in an $XXX and decline partly Corporate trends had general and million both grew $XXX Banker Curt increased and which PPP the commitments Banking, to decrease broad-based just as line was mentioned, XX%. Positive X, about million in utilization solid Market Loan loans. we by loan continued

CapEx and increasing Higher in capital Excluding drivers. growing Market resulting needs. Middle M&A working PPP, inventory are are general levels million X%. also and loans prices $XXX increased or part in commodity

low relative Dealer rate capital $X equity in which equity to strong we extraordinarily Services remains and business, in totaled the capital increase run remains small our about in fund billion. a plan services The where typical million the and increase continue We a call $XXX great historical floor lines over and have venture included provide firms. subscription is and to pipeline to National success The high. little loans activity of loans, private

are We to expect levels satisfied. growth it and will supply the year. past build demand the for seen on as continued resolved issues pent-up rebuild time Services is take we've Opportunities strong some loans strong inventory Environmental and over to sales home new to levels. continue abundant, as record syndication Mortgage seasonal slowed we in and rates declined Banker significantly activity. higher and are resulting attract relationships, activity with refi fell to

in yields related. X benefit season. decreased lower grow activity as was mix higher by our progress as to we are housing through we selling we see enter XX% spring from the to than However, points of the increase offset as expect well-positioned the purchase We is basis Also, supply revenue. expected believe year. PPP an as Loan rates is purchase we more

floating be largely the reprices quarter. rate the the end expected reflected As full the second our bulk is is month, at benefit of the in of increase of to and the recent portfolio rate

remained basis significantly interest X, of the believe had The in slowly Slide were seasonality. cost growth increases the the As sheet. first when highest the rate declined XX% fourth declined due mostly quarter shown year-over-year, points. as Fed we deposits low on remain interest-bearing elevated, amongst deposits X to its record average at deposit shrinks balance deposits we quarter, up our and of average will Deposits rates in quarter-over-quarter but all-time growth This follows peers. an and

rates adjust provides our at as Slide rise. on loan-to-deposit peers for levels, to low expect us portfolio. ratio we and slowly the our rates details With securities deposit X

extent, of securities growing asset Our liquidity the to through yields, average $XX achieved our a rates yields first $X would by income. we basis this opportunistically recent with resulted excess goal points. second securities with In Holding million is purchases exceeding larger part, reduce steady rise. prudently from level, worth the portfolio, favorable quarter, purchase purchased new increase March of the The in book. in XXX billion XXX increase to securities about quarter points, to revenue balances deploying a sensitivity about million. rate basis as XX at be and, $X.X can lesser Through securities

economic to that case, incremental our assess these the are of sheet not affects but growth accounting does a capture likely a significant such sheet treatment the value balance higher which leading The not losses marked This We book relative securities although and and by runs in balance potentially created which rates we recouped. our portfolio as should deposits. through $XXX capital reduced million, value ratios. value, typically regulatory between not to maturity, in Of our hold in will unrealized be resulted the rates MBS hedging, mark-to-market of some parts execute we continue as OCI other on rising note, our pace. swaps to at impact

mainly PPP interest liquidity. due net X, $XX income. Turning in a margin decrease XX net basis a increased points decreased in The interest to million $X income million, Slide to excess including decline

had rates two decline This The the As partial fewer million loans, $XX a quarter and lower days floors. in from activity by income, million. benefit far the the as offset on included $X was together million which was higher and a from non-PPP growth partly $X in details, rates added impact. PPP in nonaccrual offset lower

With now rise. less relevant rates XX floors the as points, at average rate on basis become floors

weighed at million in at balances margin. basis in reduced to increase net high deposits an the the heavily the the and securities with the of income XX remained by of mentioned, points. The I $XX added higher on added XX As and impact billion $X $X portfolio size basis interest the decrease million. over Fed points yields margin of Fed

charge-offs outlined our recent metrics and of only quarters. Gross points. including credit, decreased levels net remain far declined non-accrual X elevated loans Slide of on is which from basis while recoveries As low. charge-offs X, excellent, as remain Criticized

Sustained event been Through could to approach in was reduction credit, With consistent and favorable with to credit outperform the modest million. environment. metrics our loans. allowance differentiator. economic of $XX continuing the we recessionary a we elements for credit a a the believe disciplined uncertainty, relative losses albeit forecast, to provision performance to of industry key has X.XX% resulted of credit Our we cycles, in a continue encounter a in the our strong credit

the stress income, We monetization's fourth customers chain are Slide challenges, sheets. well have income been disruptions, outlined in Overall, performing able as potential maintaining $XX on closely Non-interest their inflation. our elevated quarter. XX; decreased on constraints signs monitoring through labor following for the these portfolio, of to supply looking warrant-related million and strong manage gains from balance and

addition, record levels decline in a in which commercial January the and and income seasonal quarter Several attributed syndications, performance environment challenged economic fees, This the fourth lending slower categories, card. included fiduciary mostly $X million to In expenses, $X higher valuation is energy which adjustment, negative change in million customers' $X offset million. decreased million impacting to credit to declined our $XX to Derivative the comp, positions. income related deferred a market due a in customer-related by factors, prices Omicron. reached were to particularly

As believe we Curt we year. through improve as activity the mentioned, will progress

a levels. comp, and card reset We increased form. as savings and lower market. which were slightly certain cost Seasonal to competitive kicked evolve. by declined maintain million, staff taxes Salaries Also, in slower growth, Of more banking continue benefits asset year-end to be elevated losses expenses, as modernization, difficult Lower and levels initiatives severance which in We operational these staff is expense million which position Slide includes expected targets payroll at a lower and generated as to are related seasonally corporate consulting, initiatives We processing and discipline $X increased elevated Occupancy the technology we annual as to facilities retail were the successfully XX. alignment Total retaining for model, we following expenses is including forward incentives in and included activity. lower. journey, $XX our related Curt expenses as look the information and comp, of to to we decreased are This to were delivery $X advertising in legal quarter. off and reinvested our described, Performance-based as to levels. future on impairment. higher shown normal as attracting income. $XX stock talent note, our very activity, expenses related specifically deferred FDIC factors of the to optimization. offset insurance. non-interest transformation million predict, decrease outside is million which continue providing partly are decreased we The

in and to provides on is ratio share securities manage growth, Slide portfolio our experiences. in management. always, our resulted an our derivatives, and a capital customers' As from customer enhancing combined impact estimated expenses, goal the to XX prudently Loan decrease details with repurchases X.XX%. while colleagues' CETX

We capital closely continue loan to focus monitor XX% we generation and on trends as target. our

providing of an an our capital our to and benefit overview rate to and environment. growth the drive support sensitivity As to return provides always, our Slide attractive priority the rising our is XX - capital interest use rate of while customers shareholders.

of rise in we various points net two. assumes standard as provided XX, on model income would balance with XXX Based months estimate in the greater $XXX sheet. also scenarios. be a a basis in dynamic Our annual million non-parallel over rates and XX as We've increase March rise benefit rates again the interest slightly sheet year balance gradually a alternative

providing the interest the XXXX outlook XX increase net for quarter. deposit expected more for expect the income, and we activity the XX% second relative purpose XX% at for year. the of to of income in added XXXX to swaps levels net the outlook, increase in In an point remainder this to relative scenario, securities May first using by than our quarter For and XX interest and loan and basis we March rise

Our strong with economy assumes improvement supply for challenges. is and XX, XXXX Slide of labor remains on the gradual chain outlook and

Aside of full in pipeline and business in many line. we for first grow momentum decline to basis decline in from decline Post retail to offset in Mortgage stable. January Banker from decline for is supply X% from and volumes average that quarter, the average as deposits. year-over-year to loans Relative growth earnings and a mid-single-digit in loan robust our to with issues. our seasonal commercial due the in remainder quarter, our This with the on modest expected positive broad-based with rates, lower in quarter, includes normalization expected a Mortgage the moderate Banker in our X% management excluding for growth businesses. chain the deposits This of in more PPP of growth average the loans are are continued significant year, our each no nearly the the the pickup year outlook modestly outlook rebound from change in result base expectation upside a a range, national There by to first a wealth to reflects seasonal loans. PPP, Including expect slow the every dealer a year-over-year assumption along is be refi unchanged decline than call. is

reviewed drivers net magnitude note and by and the May that are the pace I deposits. However, trends of beyond income trend portfolios increases be growth normal tightening interest points. these of our for additional may present to Fed of swap major the the but economic securities with already is impacted as our expectations, lower net Credit points our expected upside. XX strong quality and basis to remain to charge-offs continuing basis XX end rate to

impacts expect constraints economic criticized inflation strength labor non-accrual supply sustained and issues, and to we and chain Assuming the remain remain low. manageable, loans from

CBA, to the derivative card deferred stimulus-related compensation. is outlook. there highest to our are income, favorable categories non-interest XXXX, as far some the no and including As warrant-related unlikely record XXXX on and change was activity, as income, repeat of level such in fees

customer-driven the commercial deposit broad-based the from as fiduciary, second This warrants categories expect in filings of year, lending service picks as which growth fee as includes card, charges, quarter. the tax remainder fees, up. in activity For benefits significant we well

In addition, assume not gains losses securities difficult therefore, deferred and are to comp and repeat. we predict, will

to continue in increase XXXX low We expenses. expect digits single

benefits quarter. to expect offset to and to decrease operating staff comp tied benefits, higher be technology are are staff mostly stock revenue expense as are losses. by expenses outside payroll expected well seasonality, and quarter advertising first lower lower and mostly as to modestly salaries Outside insurance quarter as the annual to comp. of due offset expected relative deferred and the added we processing stable by first be taxes Salary relatively merit, Second to and

expect XX%, are We rate XX% CETX trends. indicated loan we our to tax the as target on to finally, we discrete on XX% of I be the excluding as growth items. slide, And monitor focused previous

Now I'll Curt. back turn the to call

Curt Farmer

Jim. you, Thank

lines business in with remarks, commitments my opening pipeline. in As I and showing said good momentum, many loans, are increases

we digital on we from securities results, progress continues make a discipline expense culture swap invest our nature balance was current products to performance in through our services ongoing produce portfolios, and business our credit benefits in quickly to our of and strong continue evident results Our rate The structure grow that and journey. to goal the continue more the rising and environment, sheet earnings produces expect the In appropriately consistent to cycles. of as rates. with providing

honored our Our opportunities. areas such along geographic growth significant unique footprint with I in as work expertise a team. well and am as talented many committed to offers

be We questions. move we'd you are take Thank well to we XXXX. time, as for now happy your forward in and positioned

Operator

[Operator line Wolfe Carcache Research. first the from from Bill Instructions] Our question comes of

open. Your is line

Bill Carcache

just Good confidence income expect a And optimism what the be little you translate Can hearing as the maybe more to growth? be bit to and in your little a sense through morning. going you fee into we optimism on to customers broadly gives your on said that? enough Curt, that continued move more more is bit that, that discuss color that you're is what robust you you from more loan year. then

Curt Farmer

I'll talk maybe ask maybe income then Jim overall. about to talk and optimism Peter fee about

Jim Herzog

are in good Yes, Great. couple of morning, factors play here. and there Yes, Bill. a

overall First, a typically It a fewer bit lower gets in to it's seasonal always little that QX. lower are important lower off days remember activity. we seasonally start, and to just

that burden, impact Beyond a that, I we market-related repeat. we as expect had don't fees. had of we mentioned, And significant of to the Omicron added course, from

from about warrant valuation. it CBA, market like was comp, just deferred think $XX million things I impacts on

quarters and layer cautious think move we of had Peter of income in we Maybe do in activity We to we'll over and for you all non-interest as comments. anomalous on expect to the some X see quarter. just things be flip on. the do normal the year seasonal a optimism, get those through that lot top more the the goes first year And customer as we on it of going So I'll last removed pickup. other of

Peter Sefzik

say Yes, more to customer across are base continues that. levels, add it there's Bill, we're can pulling number footprint business obviously, optimism, than even And I that that are is to pipelines back know pretty and as things year, And really the it's our but prepared Probably little good. guys but outlook or going comments. would above they're our about economy know don't say that last Jim's pre-COVID a still our every well. customers really would cautious I I a I it's I think seeing middle strong. that you on really still robust maybe of about all. the just for, to don't of communicated in being at was cautious that perform just in line, I We've

capture think that. forward, I ability our we about moving feel really sit and to we good where and

Bill Carcache

That's if Thank follow additional helpful. you. one may very with And question. I up just

that the rate to on asset be came those assuming peers there in XX conservative? sensitivity sensitivity more just hikes looks along objective it the then lines your bit. have rate than down your outlook. Your assumptions of interest sort Slide are basis Was And your you a XX, points like on

this started your of asset already aggressively lowering that Is to you sensitivity You've your before more reducing doing that talked you as sensitivity? rates Thanks. expect like wait about rise. do some asset or is bit a indicating something

Jim Herzog

to piece a purposefully quarter. earnings down that. sensitivity sensitivity. took that mentioned deposits some we degree in very our of we that asset asset were had certain have inflating seasonal I the Certainly, Bill, January deposits our a call were did Yes, this

worth made sheet $X.X did account that, that so of $X.X billion fixed into receive received of the level contracts significant piece But for of of a not contracts, surprise. up And beyond securities your swaps, very a billion billion off-balance $X.X once net of was we enter paydowns.

a was pretty It significant that of so brings lot a rate hikes forward. move. And those

that asset pulling in exchange run million for XXX forward sensitivity, certainty did the fixed the was taking rate give deposits. of essentially of of most are of rest into the up it worth about making a that And of we time We money. received $XX for instruments, value by basis that, points

we goal take as about as made expect stabilize it they really progress year. We of ours been that to we're this go So we net income, doing. of do on interest has feel what quarter, the exactly a the higher we good rates continue to that's and advantage increase, quarters our throughout to - continue and the to

Operator

line next of Our Arfstrom Markets. the from question from Capital Jon comes RBC

Your line open. is

Jon Arfstrom

What is or Just you last there? one goal question philosophy the accomplish are the really of Jim. follow-up that trying on on longer-term to What hedging? hedging,

Jim Herzog

asset goal feast is net number out We in a Comerica cycles. smooth for don't been like really famine and the ultimate sensitivity. or of income our to cycle interest that The had

in advantage that rates today So is lock to table. little take is the when sensitivity higher our And risk news from standpoint asset bit to protected goal a exist on as drop. we're so of the rates a good leave the always we're they those going to of

today, So in ourselves still rates lock on table. forward them bring there the from to sensitivity leave see the of protect in a the advantage bit a is and asset little out drop them that rates, we goal take of

We have percentage the sensitivity area. will likely low in single-digit asset

to - for take it's take in advantage we're years. advantage next in So seeing lock and like the today benefit those of stream several going think we're really I us from putting opportunistic income of important to rates rates rising, always but putting to

quarter So over it's expect of this gradually and several balanced a over next very of do lot to the a make we and several Certainly will next progress this lot a approach, the quarters. made progress quarters.

Jon Arfstrom

standard deposit, beta to your the we thinking your just could model. Thank seen you on requests early last deposit from versus XX% this asked on that. to on And then and or about hike of you bit clients least beta on your Have quarter, pressure little first closer standard be a of XX% after that anything terms the XX% likelihood you XX% the being Okay, in deposit pricing closer at in good. question, model? curious

Jim Herzog

hikes flip for some offer then going the color several below feel to to We earnings closer got has call. the the be hawkish will in XX% we with that. we more January last the hikes pattern first following cycle. of get about the Fed Peter But We'll all pretty happen. liquidity I'm customer talked general since feel on still comments the some I'll that the to subsequent still The in economy it good on the maybe Yes, XX%. as

there's first little on pressure than above thought bit doesn't might take few. probably the but XX% So a that for more I beta us have it

pretty about of So a medium-term. But I'll it we still terms feel good manageable flip beta in in customer Peter. short- from to side, to color

Peter Sefzik

Yes, I other say Jon. do, think the focused. relationship it's everything is very And I thing would that we much

really we've get with across something as be And a into been out we their of suspect and we're a In major that talk to it little deposits, been But I be. year sensitivity be conversation. need front as so on. there point challenge. be moving access it because your are might to we it, big something rates prepared more a the it other But just year, goes it bigger larger the on as we'll that will far, to hasn't so that hasn't faced far, about know the businesses customers that country. our to further of will

Operator

of from question comes line next Evercore Pancari Our John ISI. the from

open. is line Your

John Pancari

around of level of lot fee you there, detail NII detail, some about. guidance and around should total for putting around I revenue all the all on you the know Appreciate NII. the growth gave up expectation XX%. it puts we I about side, XXXX? fee particularly the takes of and guess, talking together, trends And a there's particularly were think as how

it perhaps for reasonable to is than Thanks. a assume growth better year expectation the or revenue could X% that? So X% to it be

Jim Herzog

The Bill Yes, the did one, some back we bps wide to way I'm think fully. XX is I'll We circle Number in in go. for We I the are rate set Fed conservative? net assume assume range not is starting it answered our we XX was happen? guidance. in with I think And hikes from of being the are hikes to being not had not going opinions guidance. to the rationale interest a March terms offer was, sure our of May. future Bill's income, bps are of is the guidance question Do those absolutely case. where question going maybe for there out We there and John. that part That

sell-side I think on there's the estimates. the range amongst of side, a analyst wide estimates even

try bps pick than for give model, are average happening hikes to thought we certain that million have to you give or know be rather we So and would one, $XXX the the it then you a to XXX. the and hike helpful more for XX point point

You you model can for have plug in. that, the that

on apply slide. that on the can are have You sensitivities that the we betas deposit

little a a bit So it's and plug of play.

put you in of trying that the then provided. we So can prorated hikes as terms want as model we're to aspect bay certainty that many hike, and be helpful in you there of giving by the in you

add going is upside might so We to security as of wide interest hikes terms lower of additional of swaps And clear be between terms happen growth with as would revenue a it again, In to tried I non-interest year, income what's income. what just We terms well there there. in that as we some going tremendous range bifurcate make outcomes to in than possible. and XXXX. net that Fed of on for the as know there's

the portfolio, If XXXX, materials, that fees, in is and in $XX we anomalous you we look about be million think I that occurred income card occur of CBA anomalous stimulus-related not at derivative income in whether some warrants, XXXX. will which have it'd the earnings of had XXXX the in

at have negative not will new for That's we non-interest news 'XX income. a percentage So to relative all.

has on tremendous I think we've to very interest create capacity Net rate. a clear significant some growth been that. income, though, real

as to going many in think provided, outcomes you range the up heights keep So we you we going somewhat and on there's be first that pace the XXXX. a feel certainly revenue We're might But securities good as just the apply how in quarter. to second growth similar make really many modeling of there add sense. to in about a what swaps - have. We depending had

John Pancari

your given points fair Thanks get for you're can you that. thoughts also think way wanted I so of that if guess to to Okay. that basis your to to go asking think you that XXXX, can about growth leverage going points assume that? All low-single-digit XXX or XXX expense can to right. about you on leverage I is, operating another expectation, possibly of for achieve I help positive maybe basis achieve operating positive magnitude us guess, I the Thanks. and

Jim Herzog

I probably would but a substantially previous to hikes, go wide of the be again, outcomes Yes. it's a number. favorable answer, on back going to depending range

again, it, goes interest throughout and how So the just depends feel good the we environment really year. it about rate

John Pancari

it. to that. quick you And for the average. plan increased know mentioned very Okay. Got from I floor on $X.X portfolio one. I $X.X billion one you last Thank billion, think,

you expectation, see you Just from to continue your can do modest think here? increases

Peter Sefzik

John, it's Peter.

to pick in do to short very see mean We not feel up. is the you're I starting plan. a like think that huge expecting but car answer recovery we're probably assembly yes, modest. floor I

from cars rest just going sure, chain, the You're some because what moment progress, through on of this but continue, And see maybe I starting customers next at auto that and still that's the things pretty candidly, to probably floor for that's for much think think is hearing. of we're hear I truck. some the in so the translate off going is to I demand high, plan we rest the the to of year year, to balances sold supply quite don't the think, they're our they're rolled

bit. little we So think see a we'll

mostly be estate. balance We're side, winning our of to was If financing real M&A activity going you if a some saw, the of that on we at it you look the buying other because customers lot are dealerships. financing growth will,

that's And so where now. staying we're right really focused

Operator

Our comes from of question Bank next the line Poonawala America. of from Ebrahim

open. Your line is

Ebrahim Poonawala

your of just markets didn't We've the we in Good Mortgage sort a business during see your I a any pickup meaningful et cetera. you I elaborate first up, observed up? line by or well? line demand of capital around thoughts why - can outlook peers needs pickup if utilization. love was a CapEx, you around and see tighter, wondering as from who's from the what heard question utilization morning. think to being guess quarter the just driven picking pick on some an happen Banker Would then to

Peter Sefzik

Yes, Ebrahim, it's Peter.

a think bit of its I mix. portfolio little

about so line overall Our general communicated, was and a good our utilization, did general banking as and increase market of sort we quarter-over-quarter. see look forth, banking, U.S. we there, you corporate businesses, our when flat. business middle But at

we to little a did So I we're wouldn't it's but to back see bit utilization. some see levels, historic utilization. say of starting

in normal to tried portfolio right time, seen. adding I that to the period - And I've se that think I - it's over utilization a we be we're might on per to and see Mortgage if overall quarterly think customers we to there mix. in and and continue your quarter. our up the in do you to not a anything lines big on on difference And I at that We you'll saw to still look continue be of focused we'll There's seeing outlook communicate mostly the It's you think, there feel seasonality about unfolds, think to able new isn't chart is Mortgage mortgage. warehouse year the appendix, that really good you that increasing So positive. long drop that. a and we've segue have out, that the as still the is all good question business.

communicated we as be year-over-year, will think, So we've in though, we down Banker. do Mortgage

Ebrahim Poonawala

even also given backdrop, the Mortgage And book, going to you reprices? impact the Banker though spreads as do So coming how that a that's LIBOR-based see spreads you market down it's so well? narrow expect to

Peter Sefzik

pricing the to asking about Banker you're And general. me think Mortgage question of right in in in mortgage started. kind we competitive do answer it my it's I guess, pandemic was that more getting than I - it's Ebrahim, is think when

little used there, there's So to a our probably pricing nothing in bit pressure businesses. but of all we're that not of

Ebrahim Poonawala

one. quick one just And it. Got

what where that this. back wide but I number you assume out in terms look expected as like going curve you have plays around backdrop? a understand just like if NII that in and land do for would NII [indiscernible], there're Sorry to of forward would option a

Jim Herzog

that offered think, that have XX of I we've this number plug Ebrahim, we're permeations, played let there But guidance point, at going scenarios. the for yes, people a in. many with are and we potential just so to model bps again, the hold offer that now, and to

Operator

line Siefers from comes Scott question next of the Our from Piper Sander.

line Your open. is

Scott Siefers

first Just vis-a-vis But of have wanted quarter. the will modest deposit know you through ask view? on sort been the - a question to in declines the of worst remainder the the first deposit your year I the Is balances. quarter expect your of contraction feeling

Jim Herzog

had Scott. Oh, we Yes, that the absolutely lot of worst, seasonality we occurred as it mentioned. be will a

yet, structural Fed will the our in our Some of us and dependence business commercial and has that model not pressure things with on related things, movements deposits. heavy really cyclical kicked probably to

other nearly saw impacted for We don't as runoff any will seasonal to as more expect in the the a probably little that be first banks. impactful that one quarter, bit we than impact be But we quarter.

Scott Siefers

And Perfect. - All right. Thank you. then

Curt Farmer

have record. the quarter In fourth been the

Scott Siefers

rate maybe And for securities rate just swaps regarding your a preference follow-up adding you understood. qualitatively Yes, versus moderating sensitivity. Yes. Can your to in sensitivity? speak

Jim Herzog

Yes.

always are relative looking factor. certainly two. a the at between That's We value

at We hold against that to you implications, securities have look them. some capital capital with come also

the and of factor, that factors the into of pricing them. value So then, overall and And levels. between liquidity that's comparison course, relative two a

coming cautious us Our securities probably cash going more levels a adding are down, forward. little that and make about will

in on, of basis, added lot you'll abundant the value the in an quarter. of been can the at stepped both than better have times. first one but on securities their the other they And last it as we couple we amount quarters. quarters and and up of adding certainly, have the over do fewer proportion, I So terms more go a and think, fewer more swaps relative both look advantages see a

but opposed sheet And see so continue a to think swaps bit going us more sheet we'll pivot towards I you'll on-balance to securities. utilize as little both off-balance forward,

Operator

question next from JPMorgan. Steven Alexopoulos comes the of line Our from

open. is line Your

Steven Alexopoulos

before know lot by I goal of to because economic Good leaving a what's all of go asset been here? swaps you're everyone. a clear, until morning, sensitivity like benefit so wanted it the I to rates Good just you've sensitivity. the you morning. up trimming start adding reduce not thought very doing on the Why But wait much on now. the table right on the feels asset have rate sensitivity.

Jim Herzog

again. morning, think Good we cycle, we're Steve. point to Yes, going interested where a bit peak. we last and do to something that are in in rates saw pick the We that's not of not little doing want our

mention I that started. think to getting important are it's we just really

a have of the on We lot sensitivity a of still lot swaps, interest table.

We advantage the of will next over these taking be rates several quarters.

go. a have We quite ways to

means That's of think first wouldn't about terms our in XXXX. quarter in I necessarily stake in no we case. the it So sand the by put of the

table, higher We we'll picking from where stay We're when we past, asset methodical, to we're way, think rates leave are go. rates. to try to and the have ways avoid still sensitivity going peak. in long we a going going the some to going benefit are we're as I've and by to on the done, to And even said

we're of do the year as of to next a swaps and If a rate eat we're significant to enough, in they terms but take position fortunate we So we up it certainly run amounts in we'd lot too and to over that. go up. have extent, be the of a like further adding now, will continuously income go rates our to to go have certain adding cake advantage

Curt Farmer

might our color of I little core and a - commentary just add here. thinking sort is this Jim, little

So XX-year of us we or was revenue side of near an to crisis, with beginning zero live financial the on the which interest house. close cycle the for really challenging X- rates, through

focused point And go, of a on hedging, little And dramatic COVID in crisis the zero bit terms going nearly higher rate enough. we we to a on some as were where might not so made when in began. and and increasing saw picking we decrease saw rates cycle rates progress the 'XX, XXXX we the more but probably in

and to our no be prudent. of So we There's going we're to cycles, change one model. to lived be trying through those just

is probably Ukrainian our as peer since organization an the want lot there's increases. weren't could war, scenario. are more you some we add bank. a if no We we portfolio that going your a COVID. hedges no cost be relative to averaging relationships, and primarily about matter we're also sensitive adding and We're throughout a assuming we highly group, we're we're real commercial But asset did stock rate cycle. and what appropriately all be asset loans what sure make customer here always dollar the that to it weren't the And but to matter think portfolio continued in assuming to We - assuming

going to just a not of And stream revenue trying solidifying prudent basis, sort in forward. short-term so on we're several cycle go-forward a be but just for our over years

Jim Herzog

risk be of want I there's to a add of is that, as thinking Steve, profit risk And, We want common pressures. control as were maximization components there and that were might we sure the good things agency when And analysts aspect. I thing zero was go back to sensitivity. profit we can out and many in rating confident protecting There are can that Yes. would. not from a asset that we a as maximization There's really credit you're that make think in which equity aspect we standpoint, do dividend, if stead. the sure two that south aspect aspect sure be leveling make credit rates control this a we're and having to to a always

customer have, think rating base we the our With we is important. credit extremely

customers that. Our value

profit things control dividend. can aspect that, the done to control to is direction. we the the feel taking as So the lot that maximization. chopped rates I to go make so care to that I risk We've the transitioning far start of from wood withstand if a rates risk continue other aspect go really we've that sure of were to a downturn those some extent, And like of we we've more think secured higher,

couple of we're a the box really on. to objectives that check trying So there

Steven Alexopoulos

helpful color, actually. very Okay. That's

the the more be So the for you modernization simply that prepared improve recognize level? could next to are spend point in greater or saying to indicated talked your that of be some when coming Curt, and sense to the company take efforts you modernization and about that you competitive message comments, a urgency, at you market there need experience, from client you to is the

Curt Farmer

And both. think bit I whole little about has a post-COVID you've the a corporate CEO sort world, over months, last as you're to really a a got thinking of think learned company, XX nonbank, America in of Steve, lot. be it's operating just world. the of model bank the the a or I whole a the whether

to savings more is collaborative and balancing - estate, and accommodate office, very sort work We've think Jim the we're we you future the through out But which I sort opportunities branch really branch And work in way last good done have in would looking those from realized you and there, heavy real accelerate model XX%. just of our we there. our to called a think on arrangements, that are those, journey. as operate But customer at thin detail being we've we And time, We of investment a the bleed the all plan, franchise A to home at these floor that retail we finding experience estate look yet they out also our the about continuation continue flexible our charges, to of, We all fairly fairly some quarters let I of side, around we continue this to locations. a of we've add them there's retail and branch we've some that additional think real today. we're selectively is steward of about as those we we're we think a continue in some haven't pointing sort to might so opportunities should our in over colleagues continued lot a real good and initiatives, some sure really out of some doing work there. going can in these to in digital real and the think to our of But job go to very opportunities reason got The modest. have been and And did on ways the to on path some et job quarter always XX% to in things, delivery with reduced delivery as but the estate terms accommodative invest experience, there since to we and were real digital the very make we're technology as focused cetera. it open all quarters on estate of be. anticipate, customer from sort with decided footprint have additional efficient been of an a we progress new there. footprint. into world of over employees some think also trimming estate side, sort possibly our may enabling it's of good that of I ongoing our can our but rationalize the of two space we've digital. that but attractive It delivery, color more the subsequent would network goal of time, that we create charges there. And it's about for is is this really XXXX

Jim Herzog

Yes.

you'll And additional transitional the I million in think some of in this of quarter. exit charges, going quarters. charges aspects. I $X have and in of call to which couple some a We're what subsequent you saw first see

million, think as would $X investment in our can. think are asset larger. outlook some exit transitional To this will in those we our self-fund of is I applications, types since would not severance not and talked to and We charges. smaller call those formed things most the yet. will be I something that suite We of million. core in recent I they're Some would in we about those as the have product impairments our not than try But do Those as - we the even be much be $X extent actually out.

side ever-greening we just about technology in on facilities year normal investment centers. think terms each of normal those that any portfolio the I of do and our as as banking well

such. probably will transitional certainly side from self-fund it really manage And will we'll the these We that so of it forming. to we occur, more come, out to can. this But product investments as the report but call we'll many and course, aspects, exit are attempt still as pure in we costs on of the and two

Operator

Our Jefferies. next Ken question Usdin comes from the of from line

Your open. line is

Ken Usdin

as benefit. Thanks. deck the page projected all. and to of X/X/XX. go I in back It's Good XX the morning, want swap to

and sticky the goes us that LIBOR contribution at that you you a just you and will like, locked chart? Thanks. that just is that LIBOR are can knowing this up as on So through understand slide will that right carry - chart with certain lower period or change or then the marked and is rate that, you show in expected help

Jim Herzog

good benefits morning, based are as those on Yes, of LIBOR BSBY the rates of end Yes, rates March. Ken. and

in less And rates, rise will swaps. so bring the to those the extent on you get a or you income in less recognize income

you have course, already Of we times bottom on many are up the of side loan over the the that of that impact both page. left than of those make that more folded And modeling the on side. into

for. accounted all is it So

Ken Usdin

Right.

Okay, got it.

you month, the months that six that? then, moving whether walk cetera, through help then there's percentage of remind prime, that's you can general that one so a And months, us Thanks. you et - with just rates, various can us the to tied book way us the can three if to just LIBOR

Jim Herzog

XX-day course, because is book BSBY Yes. XX-day. the of XX-day majority Slide January start versus rates, you XX, we SOFR if The do Well, the still loans our didn't as making turn until as rates vast on well we plus split the to XX-day of LIBOR out and X.

year every SOFR momentum, a the is and as LIBOR. was so prorate to you do majority three kind two rate in ending our We get would this loans. XXXX. which book to we the to feel turn really over for the BSBY replace the years, still started at that of So But vast point, the LIBOR can right, at start

Ken Usdin

your second guidance? last do line the a the the Got low betas your beta do belief about beta, for Just the Thanks at that long you - on low? of was hikes. far you couple first that the - you just your guys. for could of how that how What's chart. then in it. you one is comments or the are sight look you Thank that? stay - on low? XX%-ish how of out How quarter in Yes, said sight reminder. that have so a that that on forgot - about And And staying line

Jim Herzog

a Yes, XX% first the beta stayed Ken, hikes we cycle, - that was for I in mentioned five, the those. each really few first of of last we it the below

somewhat And that stay takes guidance base in in point first account we five. And case a that XX% the still offered beta have below kind does the we this our that so into moderate for that at that's the will of that outlook it.

that accounted So for. is

Operator

from line of Our Jennifer Truist next question comes from the Demba Securities.

open. is line Your

Jennifer Demba

quality. Question morning. It Good excellent. asset remains on

it's in this environment where provisions uncertain up negative negative quarter. bit risk? we the and have a in so longer more obviously much we more going see are fast, You had as provision geopolitical another How can rates

Melinda Chausse

CECL possible, - stays levels environment provision. Jennifer. difficult CECL we modest feel very mentioned, really morning, and then quality I know of where don't provision it good Melinda. is Good But the relatively to have This was is suffice provision new, still say, it already assuming to with and as economic going the mean, positive what's of that the the bottom that really as could is negative portfolio. methodology we It's really happen stable, exactly given is that stabilizing. under about predict it possible the underlying to we

and end We Jim the to expect of charge-offs, normal our to range. as stabilize low of mentioned, Curt sort

Although run. a we is mean I not a now, challenges. money, commercial sustainable the there's are And and lend right now economic we is asset right in excellent all lot inflationary have the just of given it pressure. long quality, bank, again, uncertainty customers

any portfolios we that watch particular continue of the of portfolio, to criticized terms the So to would us we nothing about just general just a saw that but sensitive migration more lead first are our concerned in in to bit be assets, those challenges. little economic quarter

have quarters, very to couple but negative a provision, very, negative provision possible a predict So of to small difficult for specifically.

Jennifer Demba

portfolios Comerica? most a feel at vulnerable Which are rising with environment do rate you

Melinda Chausse

increases. leverage interest our We our core obviously, of underwrite And part strategy. that that very portfolio have, the they portfolio portfolio. are of leverage market amount to leverage mean, when rate Certainly, initially. relationship I sensitize do is our middle again, they really given sensitive kind we of C&I

many challenged managed given they plus small compared we pressures. have and shortage, of that you have inflationary of through the underwrite supplier to a strong that. other for around the chip in and to be to management quality on book the have that experience all of that, and automotive is supplier tip one able of that the many, has lot we the to credit the teams But many total, concerns, continue through closely. and obviously watch add the been base, many, successfully. But it's manage confidence a cycles Automotive, So spear base they'll uncertainty we kind decades that and book companies relatively

pricing the of obviously, are the all are And then portfolios, that pass small So pressures, those two ability closely. less on. terms in say just have most inflationary they business, we I'd capability that less to watching

well. that into some It So liquidity, of less customers. have has has held up but visibility incredibly small our larger customer a versus good book we

watching well. we're that So one as

Operator

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

line Your open. is

Peter Winter

curious you Curt. for or to sale rising to since, rate And I securities anyway? for said maturity especially that portfolio hedging Thanks. think, the a it, if the are hold sale held maybe to moving available about into manage on just plans I thoughts morning, there you Good available any maturity environment? was in Jim, any

Jim Herzog

morning, Good Peter. Yes.

the discussion. But real true think so economics, single bit look absolutely rates of not value know franchise as no particular, a from marked know much are which uptick. about we item economic I being I move And in from deposits, and that value on I we the down concerned line a rising benefit have everyone we the think our mentioned, an are OCI does of economically a dressing economic that hold it think it put book. the book, think what have discount any window entire We share. that to at, to looked per be We needs in that it's to bit and look sheet tangible other of tangible I of we I just value to plans to you an you marked an of the parts book does at balance HTM. when really, impact not that's should, through to maturity.

So certainly no plans there.

Peter Winter

it's are competition? better this feel Okay. X% like spreads to then And I just loans growing the under, underwriting due are loan just on Is Just guess, of much an I portfolio? energy, there standards in stronger, less interest now.

Peter Sefzik

Peter, this is it's - Peter.

return percentage a to you five increase lot. as the six as that levels ago see little that - the our that a years but about saw did feel we or energy energy going we're have far really good We this don't the not are portfolio. of to an quarter, be we think the to today. portfolio on I We bank. focused know continuing I

in it, like ago. a to size plan for get we've it at business that. and think time. five We we're good stay don't a will six plan it's it years I So feel We real been said, or probably the to to that that I level maintain in was, long but the about long, that

Operator

Our line McGratty from the comes next Chris question of from KBW.

open. is line Your

Chris McGratty

Good morning.

made combining of wanted for and tempering growth, of cash securities balance deposit the a growth. process moment, the revisit on the the normalization to comments the you sheet Just size the

XX%, back, about earning we Just to of the this couple about think step quarters? the XX.X% quarter? next cadence that how relative think we the a taking near-term of in How do do assets

Jim Herzog

the some sheet. extent, we also down do temp into line is, going think But the to morning, see Good decrease, some will eat that, loans deposits Yes. to balance that and what are be We investments and of moves Chris. go bottom that. really will will probably

some But we assets both reduction definitely size sheet. see that balance in the will there of be will the So a to extent parts moving deposits go directions. the there, go very in earning down, overall shrinks modest

Chris McGratty

reiterate, earning saw quarter, this drop we in assets? we're talking much just manageable to declines that more But the Okay.

Jim Herzog

Much more manageable, yes.

Chris McGratty

growth Okay, they've reverse as okay. there year, from you this the of resets kind trend in look year, to then as next expect And with deposit there is later - would everything doing you got? to Fed's the

Jim Herzog

expect is Fed increases couple for a to until The going of course, their go to through years. part probably of of on return the of react probably 'XX. a balance lag. active We will at target about stay of a to customers level don't And sometimes least sheet bit XXXX. the to Fed's Rate likely

of kind But Fed to deposit moving many with over of very money deposits the over So of where next exact years will from the over say. and But growth, in just next continue hard best no There for economy probably cast guess. the couple is couple I think this. equation shadow years, supply you'll at that slightly languish a parts the are so now, see our down those actions there's certainly, they're will - it's likely. most

Chris McGratty

Is could is capital And you've there more seemingly speak The one M&A? inorganic your buyback squeeze achieved I great. to if as in anything the of capital use terms target. end reaching in. of then just Okay,

Curt Farmer

information No Yes. Chris. new there,

up growth our the good success, eventually wealth envision North retail lot a organic to franchise, in bank Carolina the there Denver road. like on expansion added as capabilities. set commercial in our staff we market the as some focused on have also there We've down Southeast in are having into and loan examples a and our offices legacy very office but side. be and both middle of to added adding now continue well management We We well as

Texas of been markets, our some the and Michigan in metro as And markets major other markets United still in in is doing franchise, that also. well. so got able best in And really especially then but expansion into California, we've opportunities existing in of States terms the parlay well we've good into to

Operator

Tenner the of Our line Davidson. D.A. next Gary question comes from from

open. Your line is

Gary Tenner

any growth, And wondering, to had model, weightings ACL as a I just first probability risks, you follow-up detail work et Thanks, on morning. and any of just could you CECL changes recession cetera? through in question. your of terms good provide made the I'm kind your quarter on active that? you GDP the have

Melinda Chausse

stress is Gary, selected relatively higher in The uncertainty look then to Melinda. economic we way the certain forecast approach scenario, that that this recessionary the And in and the consistent is the we quarter them Yes. quarter. economic first to which was with a forecast portfolios at did. economic we fourth

more kind forecast we portfolio quarter. to number that add qualitative release to to had used a this come for that reserves so recessionary of And we a again, the of up severe portion with, the small

Gary Tenner

more Okay, just asked. thank Peter just AOCI for one that the that. you question had on follow-up And

a in we've being still month they're issue of of give color from the But terms first terms higher point seen timing and higher move belly rates taken the the sensitivity - well of over the AOCI than quarter. second year-end was up temporary. it terms Can of is is of of XXXX. the base in Your obviously of it in you to here curve the that Obviously, for moving from moves any additional kind peer?

Jim Herzog

the it's in Gary, different lot we've And the our not about move last over AOCI. It's part bps our a medium what quarters. took we to modeling, were from of sensitivity. XXX to that close couple of securities billion saw that Yes. where the same seen. $X kind about curve hit of We

of of $X bps XXX so about in or and XX million somewhat every bps So $XXX would hit that kind it's for linear generate billion ballpark.

Operator

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

Your line is open.

Brian Foran

$X.X and market plug-and-play definitely the be making don't first I central rate? that's run year, quarter, you different mean to more play I billion close X.XX%. a then in a if the to trying seems of to comment, funds X.X% the X.XX% gets guidance to $X.X than no X% everyone's work has point appreciate million, year? Fed the your throw Fed is to on back what implies that I $XXX billion that in And me estimates. go little bit like it coming like Fed goes that if if to guys on the want of so that this on this the or I throwing to and I'm billion case comments plug or really benefit creating to maybe $X mean, simple maybe just rate back as your as the assumptions But There's NII rates more and

I'm the central at So income of it's of market least, of rate the case that X.X% like funds like NII market, fixed to a Fed using hard billion X% maybe a back like working at $X.X the the Fed, if that, you is sure but your wrong? I it's I to can for plug-and-play make guess, non-objection reading you bless issue correctly? least to Or guess, to

Jim Herzog

an it's linear, pretty to lot modeling the as the change the I going mentioned as of a move you, not floating is standpoint, most rate continue in script from hike. month higher Yes. end rates just to exact rate reset following at The our that the loans model and remind I'd of

So you in shows. the describing pretty that is impact of along to assumptions. right get graph the and what terms it of But what you're lines want your quarterly linear

Brian Foran

I added be maybe the supposed XXXX. challenges, the then to cuts believe And in fixed again, market, income if I'm some modeling

So you in low-single-digit sensitivity by range. be I said you'd this done, the like the asset to think is process time

Fed NII, have would numbers just when million that logical like like cuts to adjustment around $XXX implication a talking the if So not next much the and we we're historically? time bigger the is seen

Jim Herzog

the exactly goal. is That

Brian Foran

one, to or a - earnings always EPS they're of I are But do what costs, you is do big because estimate the it's could normalized like charge-offs, about range mean to just Okay. the translate know peak. if for that be books what long all want point factor. cycle and And briefly Can kind reasonable remind a think us But they're trough they're you charge-offs at power, you're as to then rarely is squeeze maybe I give this great. through me swing if last charge-offs - then just just I of at in? range? either time you a - either commercial would credit a normalized credit plug think tricky a or you the trying normalized you other

Melinda Chausse

Yes. This Melinda. is

would as we of levels what normalize. I XX range towards low of extremely to Jim to Curt low continue the mean, points normal would basis to expect. points end guide XX we our these be mentioned, charge-offs think of or basis would of I we And already expect do kind

Operator

Moss of from next B. question Securities. Steve line Our comes Riley from the

is Your line open.

Steve Moss

down further with to I a mark little higher securities positioning ask book. on on Obviously, sheet want just balance here a big pretty the rates.

mark part cause curious, securities that is stop guys could then ratio to of kind you AOCI about maybe that the just a to going here, want as it kind Just other what hold forward? is cash of of an you thinking percentage of think there And assets to purchases? the

Jim Herzog

question. for the good not Yes, Thanks we the question, first impact. right, are your Steve. about concerned to All AOCI morning,

everybody be. sorry, that level no different. what something us focused We're economics the buy as we was cause is not there to do or I'm So very think would on just securities the else second question? should

Steve Moss

you're thinking - securities said focus you swaps to of on going less forward. more more probably going Just

hold? of what curious cash seek the percent Just do kind you of to

Jim Herzog

worth benchmark. relative like little can larger own billion We position, a we and outs $X it's bit banks. always typically out our targeted ins to cash be see we commercial $X do We've perhaps some to of cash, billion have hold lumpy, a and because some to pure base, to Yes. our of used

cycle tapped very into in were in the options next at as the we a we'll course, into and environment look the changes Of expedient basis. funding come the

up depending $X number that move of is the our $X we'll Sometimes, to maybe to of billion, kind that just on like or access But level cash $X of hold. kind to we down funding. billion in range billion

Operator

the from from of comes question line next Our Michael Rose James. Raymond

Your is line open.

Michael Rose

for Thanks questions. my morning. taking Good

Just average Life loans Technology wanted looks and an business. this inflection Sciences the point It quarter. in the like on sit hit to

there. the So pretty then outlook just equity for I and obviously outlook, good is still think, growth And robust. fund Capital the the services, Association to wanted I Venture the get on Q-on-Q

Thanks. of outlook great. So would be just color on sort any there

Peter Sefzik

business invest seeing resources continue an and are Both it of Peter. one feel there right, did in, continue and like an good is it's got really you're grow point TLS that that that we're that. feel to this we Michael, Yes, The to we've wanting quarter, businesses those to to add to. want volume like we're maybe opportunity inflection to

wanting good. to the the is activity say people across people. Both in feels finding is extremely We've capture like long time, think, it. EFS would I in into business, And to thing. I in number get TLS we're long, those And opportunities side, of banks, a would the the tell you. what a I add I position really the competitive the or pipeline feels outlook businesses, it It a and business. of same pick A are country, really think up On been we're great good. for growth to

real for We good thanks So each. about of asking about both feel those. outlook the on

Operator

Nash Sachs. Our of Goldman from next Ryan question from comes from the line

is line open. Your

Ryan Nash

morning, Good of on and Good of just Curt. Jim. couple Brian's morning, a back Jim, the sensitivity the Ken follow-ups question. maybe on asset

you do our given be math rate need reduce notional to I another on mechanically the add you're about think, to your $XX just the you talk looking to to this that added? of we a maybe received amount trigger think of maybe So about you that based sensitivity? there should billion basis environment? what to that you Jim, about $XX trying adding swaps. quarterly the I'm Is on the to minimum And set level just on going Is rate philosophy, you're a the can swaps? additions how just view billion fixed on more on receive looking can swaps XX, Slide at talk at there you're to maybe what you a was expect just to

So rate about and I'm next how you just think the on curious over receive the couple of adding quarters?

Jim Herzog

paid a Good quarter, receive course, to in this added The was close the rate is which very BSBY, LIBOR tad morning, just over the ones And first Ryan. actually X%. of X%, we point. gross we at running below

the So rates. a for perspective that would be - give you

will to are securities the the in go more terms off sheet? options the of of holistically start what swap towards my balance balance as likely mentioned, pivoting terms at global the we the more volume, In comments are I options that back this swaps. would we're I on And looking what sheet, the

of you we'll was first quite with a billion we was you every that of next see next will for on more know what the on If And it that swaps and a close pivot pretty be basis. over and run at will certainly couple I But towards securities look $X.X I a quarters. market the to depend pace conditions. stepped quarters, running swaps, suspect, pace. if up that net at quarter, quarter. the we'll of couple don't did in It

Ryan Nash

it. follow-up deposits. And just then on decline for Got in your the modest

of mid-XXs couple we the last rate how the about of a so, or you of pace expecting they we're the little next over that the currently rate deposits? see You're hikes given as are basis in on thinking to look I deposits more for think got non-interest-bearing? started cycle points mix what receiving. Just XXX we on to quarters, were bit

quarters? shift I'm what of couple course for assuming next you are So over the the of just curious, mix

Jim Herzog

Yes.

the lose disproportionately think I extent non-interest-bearing. it to deposits, to be we will

We were I rate other it non-interest-bearing saw the will shift, we direction likely that, modest That's think from sensitive. to just down. interest-bearing. hike as rate going less see just even a Customers natural. go beyond became rates each

that will we gradual towards a of remix So over portfolio time. interest-bearing see

Ryan Nash

Got it. Appreciate the call.

Curt Farmer

mix. that in is on that banking the our our just commercial Having heavy said - said just so having portfolio side deposit just

to see have our that We're high with. shift And companies we is so we occurring. much component of though mix always businesses funds to operating non-interest-bearing some a for group probably and even work that relative going peer

Jim Herzog

piece there's business certainly in Yes, services heaving of here value the Yes. treasury part that's a terms operational the of and foundational of Comerica, management model at actually deposits.

Operator

Farmer, the Please call and turn now go over Curt Chairman ahead. will President, back to I CEO.

Curt Farmer

thank Well, you. interest good a Comerica, your and day. you in hope as for have Thank you always,

Operator

conference you, today's Thank This concludes everyone, call. for participating.

You may now disconnect.

Comerica (CMA) 20 Apr 222022 Q1 Earnings call transcript