TFC - Earnings call transcript Q4 2019 | Truist Financial Corporation

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Operator

Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation Fourth Quarter 2019 Earnings Conference. Currently, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

As a reminder, this event is being recorded.

It is now my pleasure to introduce your host, Mr. Investor Truist of Corporation. Director Baytosh, Relations Financial for Rich

Rich Baytosh

have Thanks good of some year first today. Thank our Chairman Chief we review Daryl and provide who results Officer; everyone. Chief On King, to and Executive quarter XXXX. and call, Financial us you, Lauren, and Bible, joining the for morning, full the all thoughts and quarter our for for our today's will Officer, Kelly the listeners fourth

our Rogers, our Bill in have and and Chief and Henson, also We session. our participate Chris Officer; President Officer Head Insurance; Operating the Q&A to Banking of Chief Clarke Starnes, Risk

supplemental a presentation, available on financial We referencing slide will website. the during the Truist copy as Investor the be our call. Relations as of and information A well are presentation release earnings

Please not note predictions public or forecasts. earnings that does provide Truist

during may and statements. materially statements express contemplated or forward-looking intentions, be beliefs statements there by from inherent However, and course to made that call may these of differ management's actual results subject risks These this expectations. those the are Truist's uncertainties

to filings. refer that presentation also cautionary Please to refer presentation in forward-looking and measures. the appendix Page for our reconciliations financial certain Please Please includes non-GAAP note appropriate our and X notes our presentation our GAAP. information the the SEC regarding of to

Kelly. And I'll over it now to turn

Kelly King

should you for now. company What everybody And you you year support. fantastic joining liked if earnings for you year. in a morning Thank us our you is a one say thank I Good and Truist Rich. our to ago, going your progress to overall generally love Thanks, call. would you're see first

expect as go want the two through you we're be know, and transparent. over more But you you but go we’ll don't pledge along. that completely know next we would be going to is quarter we you that give to going information, more We messy. to our to as all this it's As or

Some did is probably deal already know these XX -- of we huge. X. service, you This the And the years interestingly financial in but companies combined the transaction closed years. is December which iconic transaction two successfully largest highlights, have XXX-plus which of on institution

commercial We are bank. U.S. largest sixth the

average XX number and weighted about share on our have assets. We deposit billion in the market two MSAs top $XXX

think very, I we before ago one, who's in than had place running. days about confusion day very and and all managers importantly structure organizational was which doing legal our is what. XX set No today less

of with that's other culture. in really feel work So really, a We've made we've our in moment, a areas. regard I'll good. talk to big about really, progress a lot that much I done deal. And really but

embedding There the want therefore is us. just And The we no performance. on think way a about all is minute it I spend is kind most thing and most the drives do the our purpose, But about way here and of a whole things is our our practices purpose, There to values. our there's around values. culture culture, to that. long-term is this is of, the, the certain important function consideration mission of a of our mission Culture think a number culture we our important process about question are our and into for because organization. priority. culture one

we stakeholders. our all what taking mission, exactly can of course a care good today. We environment lives at and optimizing and really and is our clients of which think for Truist is long-term our that do to major communities. on purpose upon execute for better focusing of through build teammates our through we really our to and better make the inspire are called corporations world purpose Our We is believe value

beliefs, deep efforts of all values. mission are which guided by long-standing importantly our we Most our call

being for positive about want team matters. accomplish We energy are it's Essentially we We It's have together. teammates working passion trustworthy. our coming It's about our one when changes all purpose. ultimately because about job anything know on every We Our and with be be that you're a you teammates know we when all to success. passionately and as win. values to win, lives accomplishing moment our being clients And together integrity. serve that have Truist happy, happiness. don't caring. about happy our team. want and It's focused We a of we can everyone about at you a everybody

got And got good on know over for in we their this that same. XX,XXX exactly each them We XX,XXX the all we describe really same words very almost between companies. how our couple it teammates. over the from A They picked companies asked on We we scientific We words. XX where the to from months are closely four exactly they responses the research gave later, aligned. described operate. XX,XXX research had side. process, -- again early divided teammates in Early very, of we company terms we we to example describe

XX. before series week and around and last, of before town Just answering XX last, we went halls started started to talking questions. a I Week a Rogers did XX our teammates we where Bill of and

you fantastic. And Next tell do well. week another will we the I would that are XX responses as

our our purpose. are love They They love our love our They They teammates colors. brand. love excited. Our culture. our They love logo.

is a off really, good So, really start. to it

that. from two out and struggling Everything better excitement coming two confident you this Truist as is companies just our we our as investors now, together we've I in that But of is This everybody level and year terms purpose, and renewed values. think affirms together. companies there's were feel seen mission to already our deeply world the aligned going to about a a that the And making as come trying over last place. of want not

some about the talk of Let's highlights.

these up to know fourth common available billion XX was impact SunTrust end numbers, BB&T numbers total the days income that's page towards the billion. you're obviously following If $X.XX all along added to going they're X, shareholders on and because $X.X revenue of quarter. you're the as like But the that of we was net taxable-equivalent inflated on Adjusted XX%.

So, over the but $X make we on dwell so billion. specific changes, won't we much did

In give some diluted share, out good really, adjusted X.X%, adjusted is strong. right on per of adjustment [ph] detail shoot terms common Return basis. on adjusted again And at. the tangible earnings square efficiency you XX.X%, average how is of that really equity in on assets terms dollar adjusted the was XX.X%. of arrived which Return was very ratio average

momentum. restructuring ex of very is a But at very give Daryl to we sense grew healthy out loans talk about. growth which good. will The And strong. a from momentum pipelines good Both companies very underlying you very, when pace you feel about are

And quality Asset to optimize credit some we've the from great. actions a portfolio perspective. is taken

that. Our detail capital and liquidity give will are about levels you excellent. Daryl

I across colors, momentum. the bankers our launching have People better. to serving all on We about could logo with gone footprint. excited you clients. Our Truist. are have businesses, want But good Truist The are primarily focused talked Pipelines we that as are know the strong. brand, not of said doing business to I

sure outstanding service making on distinctive, our relationship a have Truist. with quality laser-focused clients are We

want value quality, get slow perspective; detail and cost decision be conversion we're ensure we to out And some just available service about to client of talk is you going the long-term have that the that. will to timing going lot retention, we conversions months. But digital a you We're we roll to the from for and want client improve the that made saves improve to few to We about give have making. delayed to did strong the those proposition. a we really a down before our to of branch I Daryl know are made some. so that This investments actually

it Part savings. because of to that we billion of a confident of net again, wanted was we we place. on in have very, regulators. we to the digital agreement, Still make value reached $X.X in sure that because our very was proposition with are Part delay

just the to little a do sure We've should So, do not a be is It's longer bit This this as it a number. make right. viewed simply same positive. it taken and negative. we

X.XX%. indicated Our always capital were were one equity X.X%. very what common strong of nonperforming Tier the spot of at sweet a Net fantastic and we've charge-offs in X.XX% assets right

asset So, really, and about really we good capital. quality feel

three look at restructuring. terms you negative If are large. million on impact about these just $XXX on merger-related had selected EPS. was translates That into that impact X, balance The of pretax, restructuring in sheet page charges $XXX really diluted We items of million, security I'll $X.XX our just mention negative $X.XX losses because which EPS. is which

have merger are future of related, of are have And technically incremental our not expenses that but that operating run do some designated rate. then, not from view they're we they ongoing but as part an accounting benefits, point expenses

future think of rate. The about kind main the don't thing can them is impact same. run you So, they

together, you negative add when our get difference $X.XX, numbers. adjusted run net substantially So see that our why GAAP is impact on all you in which rate and ongoing of a the you

starting of really consists closer pretty just credit We we of the did loans really investment end-of-period out. look faster mix for to where of to with if you Over loans. X little balance good expect you have page held The grow If to we at might time, comments consumer, commercial, card than few a an commercial about about good XX% but XX% mix. balanced. are little about X% regard a consumer feel a billion you see get XX-XX, $XXX

you regard year-end for portfolios. have inflated the which and the We $X.X haven't would some billion of that did Daryl because actions, about take loans I but with into loans it. are color held moved closed But to loans moved out on will a the little just that sale point by portfolio more give

So we'll soon. close very very,

an confident the we of the would macro and the Presidents I in the think CEOs about But They're businesses. their war, Presidents; say coronavirus. to it's that, nervous. are talking Iran, to market overall pretty good. our say worried in trade issues, as Market is lot awful fair just about they are market Regional So overall

long XX-plus have We years into recovery.

in talk I would we into ourselves in one. not say So fairness expect a can while we certainly recession do near-term, the

So right little it's now. a period a nervous of bit

factors terms we need capital of to always think strong liquidity in But the existential of create I that that. these event an the business. Truist about interruption terms reasons that's remains in one and ongoing be in do honest of

to have predict people settle does this concerned But one but of not really all of around the to don't personally that. I will are and to that think are pray lot dying got we attention become pay we hurt a a about have out down. hand, being lot We world not really really will, really get issue. think -- There it hope we hope does now. we And systemic that of We certainly don't a be that and lot people a that. global close to coronavirus but this

the of If did you're to just at regard We $XXX comments with X deposits billion $XX about couple slides end and up deposits Page a total The billion. non-interest-bearing on about of looking of with deposits. declined, in if is I accounting of -- a exclude shift third purchase same into non-interest a bit we're quarter. just continued the out Everybody you seeing non-interest time little deposits seeing thing. and believe

else facing. than strong deposits It's did our anybody is X%. not increase a interest But indifferent

you what's on. can So see going

activity Our little a on. It's total is just shift very deposit good. going

one We that XX.X%, the strong the have industry. of deposits in best total non-interest

about good So we feel that.

total Our XX. deposits and XX average total and average basis points interest-bearing respectively cost decreased of deposits

curve. So the yield pretty flat there actually good given relatively

and our report to of in their don't can that experience thing to you the Having virtually change lots for involved in about main issue clients any happy big is of tell very that lots account clients we is I not change mergers our over been client that are my change. my number. career, account telegraphing will numbers. We're And change the all the

clients virtually our out in numbers. So I for we've changes any our way a worked not to people congratulate their have account and all of

extraordinarily we So is it certainly go predict our which that our for smoothly will clients, goal.

are very the is see very earnings moving So strong, Truist progress overall and sheet a through hard to excited our strong and little tremendous balance we're numbers, it's we confident. forward though even in

who a you detail give With it me a lot that to more color. Daryl and more will let turn lot

Daryl Bible

Thank Kelly, and good everyone. you, morning,

interest to basis contributed Turning net to margin interest Net slide XX, $X.XX Purchase points third up quarter. was versus X basis accounting net points income X.XX%, interest reported XX billion. margin. the was

September upward upward were final year, million portfolio, $X.X included a recent the the the $XX adjustment accounting long-term of million marks the billion SunTrust estimates our At upon CDs against to marks and close loan we end based to XX data. to purchase that debt. an adjustment provided These $XXX

first quarter X.XX% third-party the margin points true-up was net quarter. down marks the in We Core basis these third XX as come our final plan from to from in the interest valuation numbers provider.

for investment XX of a lower sheet benefit on basis yield purchase as and our was offset points balance yield risk achieved interest partially loans by a The X of basis short-term The points effect held X the decreased accounting. securities restructuring neutral point improved rate relatively rates from basis profile. our goal by

XX, slide and is liquidity, position. focused sheet and credit our run rate restructuring which towards summarizes the improving managed return interest LCR balance interest sensitivity, rate on quality, a built the sheet more margin liquidity on Through re-hedged on Continuing interest improved capital. the we rate restructuring, meet balance the requirements to this our investment neutral portfolio, net on

$X.X $XXX of About exiting negative to loans which XX% of premium reduced million sale manage year-end. traded at exposures by in sold was January. that amortization We enhanced quality credit high-risk of and funded convexity, billion credit

January, deposits our Through $XX of credit on institutional points about basis by of rates ratings. we the higher interest because XX lowered billion end of

will opportunistic We be funding to in take continue credit advantage ratings. Truist's of to higher other optimizing

We by securities levels total approximately that elevated the $X.X normalized $X.X year-end in approximately and This elevated were should sheet loans relative held slightly means for by billion. settle that also balance $XXX sale to assets. estimate under billion were the billion

$XXX [ph] X.X%. was was Non-interest the rest held million seasonality due heritage $XXX $XX in BB&T Turning in losses The minor XX. to fee to in mortgages of increase million a due increased note, insurance sale. in transfer the residential losses related excluding $XXX income growth Of for income had million the and income increase to of slide million changes merger. categories. million income $XX XXXX Approximately of due insurance to after year security and full organic to

million of $XX heritage and million was up and $XXX CDI million a $XXX expenses increase this Continuing was merger and to other higher million after amortization increase merger. merger. in Approximately due in to restructuring excluding million the $XXX related and the remaining was from The Non-interest charges incentives due expense to on incremental expenses $XX intangibles. slide to in XX. in $XX core BB&T increase million operating due

XX. slide to Turning

$XXX and million $XX Asset real $XX investment sale of million. quality was $XXX remains strong. increased offset held NPAs included non-performing of of for $XX for non-performing to sale, to partially million increase $XXX million of the million held The and merger acquired million estate loans leases the mortgages. foreclosed due by and loans of

NPLs of at in XX. were XX accounting level adoption end from year, to in due XX the at basis September decrease acquired points of transition will of on points ratio investment mostly total the of and This The basis loans NPLs was pooled held CECL for basis PCI. effect down the the for a pooled ratio the of effect on PCI. the accounting reverse with the for

$XX XX unfunded were and provision and million for last increased net commitments. an points due increase provision from million $XX down point increased The charge-offs basis quarter. basis higher one the charge-offs in average of Net loans, to

XX the down at due loans the September for was allowance year-end, elimination allowance. to XX, from held SunTrust points of XXX at of Our investment basis

note that X.XX our charge-offs the a We mark combination times fair and would very coverage and unamortized strong X.XX% ratios allowance remained of net at of NPLs. value total also allowance X.XX loans. times robust The is

CECL, standard adopted to Effective on losses. January related credit XX. Truist the X Continuing slide new accounting

our not did a As results. result, impact this XXXX financial

at overall adoption credit allowance billion an in impact losses. the for However, $X.X the increase was

We related to purchase acquired year-end, the transaction The from required to was loans accounting allowance impacted marks. carry at to this increase not purchase the merger. the magnitude significantly due related accounting of were by the on

CECL This implementation approximate allowance the credit an in decrease increase the the commercial of accounting, related in resulted increases offset purchase of losses. portfolios, that impact are in mortgage portfolio. partially reflects loan and XX% the our to for consumer by Excluding our

Truist to has capital, annually the retained resulted by XXXX. In to due XXXX after-tax capital in reduction XX% earnings. through $X.X phase in regulatory to increase from terms of in the the allowance to billion CECL elected impact a

XX. slide to Turning

capital capital well-capitalized relative the to for but ratios merger, regulatory Our banks. decreased to levels strong remained due

X.X% basis a simplification will the the of of ratio down offset basis CETX XX.X% The partially first MSR be by Our was a point risk-weighted from impact assets impact in in third XX benefits accounting XX treatment point rule the purchase CECL the quarter. quarter from the under from and phase-in.

X.X% increase. At the December share close per confirming contributed the XX, share And equity. with September SunTrust XX, XX. tangible value X.X% to increased XXXX book of X.X% merger increased the tangible tangible from XX.X%. during contributed common was Compared December quarter book accretable to per Earnings the

We XX. analyze realized to challenging model. may to slide XXXX Continuing be and

are usual. than providing guidance we more So

largely historical is absence rates baselines guidance to applied. of dollar-based can due to Our be growth the which

from our assets highlights billion. or plus quarter Some $XXX be minus to first guidance includes average earning XXXX

X.XXs interest just be expect to to XX just range be fee should in basis margin the We reported from over net points high to Net and $X be billion. income margin mid and over should to XX charge-offs X%. core

$XXX in Our million guidance expense includes million expenses. $XXX to merger

For the expense in upon about will And based $XXX guidance. savings the no we economy. rate down Net charge-offs grow the run expect achieve each an relatively fourth remain of the we stable annual million trend deterioration should quarter significant balance until full to quarter. expenses in sheet year, our assuming

providing Turning target medium term about three to slide XX, also we are performance years. for

generate in XXs return the term. and are equity the adjusted on XXs, peer-leading, We medium in confident Truist ratio tangible low the low an can common efficiency over

XX% capital, CETX of ratio we targeting terms are In XXXX. for

year primarily to for due first systems the close confident through the achieve net to careful expense overlapping not timing our to least net at and we minimize regulators branches the cautious approach savings of to integration disruption. expected and -- the our updating savings. commitment is in billion also are $X.X will XXXX. are But client We expense to This we

equal by XXXX, the end cost and of we end target XXXX, run of XX% By our expect end XXXX, the of a achieve XX% the to net to rate full savings billion. $X.X a of by

will for three this operating leverage the years. of drive next All positive

one-time reference, expenses, a For approximately excluding contribution, non-interest XXXX charitable amortization combined merger expense and billion. was $X.X

to annual personnel, and by will We of directed rate achieve digital, of of the These XXXX. $XXX quarter run approximately be towards technology. expect branding, fourth investments investment an million

let back thoughts an Kelly to closing merger and on Now, for it the turn Q&A. me update and

Kelly King

Daryl. Thanks

summarize. look at to a if take So, Page XX just you'll

a Just accomplishments Workday We've reporting closed converted systems. far. number we've Once the financial lot integrated system. deal, really, and we of a really good integrated other so of a derivatives

We have successfully retained our talent and clients. our

So, any any on not warranted. mass about exits is that concern

We've restructured and in the mission purpose leadership to our say I'm of in particularly culture the logo. balance certain sheet. visual and And space. digital We've added colors our We've some values. areas launched imagery key introduced happy we've

allows in what's picture of, up hard a kind So, us to which product the mapping working into is perspective on coming then development. are we now big completing that go

next We town will complete be XX halls. continuing doing another to be We'll week. about XX

that So, on. continues

will relationship to with clients. our We deepening our continue on focus

branch complete in the will months. few We divestitures a

We purchase of headquarters our in here and Truist new will complete Charlotte. the our

that mentioned a just because market that's our I in and pretty people. big for deal this

and in systems. marketing conversion really and a XX-story in being the investments people Charlotte. excited And digital introducing be brand into continue we'll and of primary that in building shows phase Our our well the We'll we'll technology. about then Truist are iconic

was very strong it quarter. overall, So, a

ago, have coming we companies a said create great to year very special together a we've two company. As

have economics, culture. great have we markets, strong a great purpose. Everyone in our very excited are about is we We

the the We opportunity place. better make to world a have

love got Truist. to You

back Rich. turn over I'll it So, to

Rich Baytosh

the if Lauren in on you explain and at line Thank how would listeners you, time this session. come the Kelly. Q&A our participate can back

Operator

RBC. first question Thank We'll Gerard from Instructions] you. Cassidy with [Operator our take

Gerard Cassidy

Good Bill. morning, morning, Kelly. Good

Kelly King

Gerard. morning, good Hi,

Gerard Cassidy

with on really out and gates Bill good congratulations and some a Kelly monumental of dealing coming numbers. Congratulations. doing the

Bill Rogers

you. Thank

Kelly King

We Thank that. you. appreciate

Gerard Cassidy

provision side Daryl looking for on expected you time have that a maybe credit can Did would the mark-to-market CECL are share loans the to Because guidance with of seems you impact guys for? what I robust. us the an without pretty be for closing lower. considering have the maybe at on little the all those provision you XXXX CECL

Daryl Bible

Gerard. Yes

adopted basically guidance how CECL operate. on we So, FASB's

PwC XXXX. both X/X the increase about Our we it's purchase you of accounting two a if allowance. combined. very with banks XXX essence, We comfortable feels on around booked were out to auditors XX% We're XXX what of In or XXX. up back the

that about that. is If to the and But us XXX. you well. basically though for I SunTrust mean is of we told we that's guidance add on in the reserve now loan booked have we billion definitely what And that's reserve as double a unfunded there. why accounting in have because $X.X do XXX there do positive it's agree book a loan the on marks portfolio. I purchase dip

Gerard Cassidy

you listening heaviest still you Very been and you've what listed us? next then ahead your the now already already Can Bill and are of challenged Kelly with XX accomplished the terms so in what us on need you good. when compare to And -- accomplished? Or do share of guys of difficulty? degree it the far slide steps. with is -- you accomplishments the you how has Can and contrast

Kelly King

– of the in Good that on Gerard. have a expense together take saves still we you don't any start any the all listening those can don't is me, terms we would today you excuse add because have felt that a business heaviest are then honesty you make interruption feel and year clashes that. strategies better ago. all to that feel of in -- say done companies than to pulling sure achieving in early confident cultural two Bill question, I'll I

I and echo have this. myself for I Bill say think to will

number one town before have have together last working teammates. in these XX for if that said would we when visited You you years. have been X,XXX know, we XX halls you'd people And touched been room about week

was extraordinarily thought of two, level just high. And number the you would excitement have

organization connectivity and predictable doing now really can well Bill? strong don't hard but work focused we But are work this just with we is do to on programming and that's be the how take settled in it. focusing is done big got to I that anything terms of the point that. away so work. There's that's at is And really, regard from

Bill Rogers

Yes.

terms I getting think, same through and that's the cultural sure important feel most And of same Kelly easy. part and hard would the fair. be and hard making the that well what's in has alignment what's that and and I exact hard. think really part road lens And the is looked And the at this way. if there some I I Kelly ahead that wasn't articulated make and that then the would concern

we've think diminish a really ahead. That's of a I to set So good foundation lot for the we not fact work. have road the

So hurdle do integration revenue we things. would of we've got to we is leaning great systems I the aligned and is align synergies a highest are and all think and lot feel to is about working on and and what it that. forward company achieve is, I But the culture those

Gerard Cassidy

and Again, thank you congratulations.

Bill Rogers

you. Thank

Operator

We'll next with our take question from UBS. Martinez Saul

Saul Martinez

A Hey. of questions. Good a as first entity. morning, quarter your combined everybody. Congratulations couple on

in accretion. marks purchase for accounting the your on outlook First

regards about filing. is it's too can billion that mark just has not rate in how calculation at through walk the last whether much with think all you from I Daryl, liquidity your of $X.X marks? credit to different and changed us

the accretion accounting well. as And trajectory purchase

glide numbers -- this does year. how PAA billion path and this talk XXXX? of beyond year? move because that $X.X about of I to How the does forward guidance -- accretion go beyond that your accounting I about that this How impacts implies also do we it can you think think If think how purchase

Daryl Bible

Saul. for the Thank question, you

is that really we're remarked with we for would I But I bit. from December you XXXs. it's $X.X mean the in aligned came that X.X%. that down it to showing was tell that the CECL So little was credit-related a low -- unfunded of our billion first, reserve closely XX% about XXXs, X booked It

a little bit very methodologies different from it's So that little bit for that just but more due impact. obviously, it's than consistent a

The risk. prepayments. three XX% contractual to slides We portfolio of I years and of of average other come mainly put consumer flow around through that commercial to attributable is life probably well say an has interest liquidity did X. other part the as rate would the as how in the it's going around ebb one payments and

and through. our downward cost trajectory our accretion cost see savings at You really to And coming you the because you're would efficiency what net revenue. going still see basis our will definitely of over that's is that kick how the consistent over improvement just works a number But same calculation with actually purchase of accounting on same operating time a expenses see savings period. the on time in on leverage

every worth save it's dollar lost. that's For we of revenue $X

still feel perspective. good that that we gained So we the from about projections very

Saul Martinez

follow-up Okay, guess a got there. And it. I

accretion. -- implies by entity billion income adjusting You're the net combined to look of $XX.X billion. accounting at guidance PAA. for I interest historically purchase The SunTrust -- calculation, about $XX my the rate's about out billion $XX.X ex-ing BB&T, If run been about

balance that right? it the driving know, to my walk this driving going that? there's I what's but does Is ex-ing sheet a imply restructuring Can -- just PAA. there's NII through some us core what's understanding like of on, that lot the there, out walk just you difference? through Can me you degradation seem

Daryl Bible

the sheet restructuring, balance shrink if didn't at look $X.X was billion. much. that mark I mean, you I Yes. the really we mean,

wrote is Mortgages, else $XX So the the much We pretty loans did down just billion. everything it is over But sell. if last didn't down quarters, consistent. loans. We sell couple basically the you at mortgages. look about

peers why had estimates if at and to we them all to big went peer environment We our the start is look rates a go at, compared seeing. ago and what our we did year you of models and lower of still back because back models estimates like, down XXXX. across are what were NII curve rising And actually looked And interest is projecting, homework. back The reason that you're the the little average And of and down just and at you a the -- basis XX if what we rate points. were the right then that's board, -- now. flatter XX

Saul Martinez

Okay.

has the really just it's backdrop degradated So NII? rate

Daryl Bible

Correct.

Saul Martinez

All right.

third the annualized. get like, I guess billion Daryl, look was $X.XX I billion $XX But at quarter, pro even forma or that. Okay. I combined about NII if

this degradation I big there's pretty it seems So but like some guess, off. there, a quarter, drop

Daryl Bible

of hit came They as margins you really drops. half occurred rate had in. the in You cuts the start had second XXXX to three July in and

in So The drop full last the you seeing aren't really was December. impact.

aren't get impact first to full until you to quarter. So see you getting the

So six that at that look over trajectory last you we've seen have the to months.

Saul Martinez

right. lot. Fair All a enough. Okay. Thanks

Operator

Matt We'll Deutsche our from O'Connor question take next with Bank.

Matt O'Connor

be want for the milestones kind be guess, the But, big update I should planned we conversions that ones about thinking Thanks the of of that to some are I morning. systems drive we focus focusing the saves. on should on just cost Good that on, will what the page XX. and on

And and good job systems deals, a it have of risk. done various pretty like but be sort it banks recent can seems always converting a

So just what's be for the go looking of conversions? sure system should guess, for to I some make time well? they frame And, bigger the what we

Kelly King

say So, a the them. the dealt what we I Matt, the ones. deposits. the loans interaction so -- conversion, about with obviously. the and Loan two programs drives lot larger XXX have overall a primary of have any ecosystem, There is conversion clients. would the deposit those is biggest with deal, are clearly because big that's that X,XXX it's like -- other But bank; are to there's is the be

Matt O'Connor

Okay. timing those of And the conversions?

Kelly King

Sorry?

Daryl Bible

Timing of conversions. the

Matt O'Connor

Timing.

Kelly King

Timing.

already we're be work selection it Much doing time, primarily So in may done. ecosystem of like but seem about underway August that's all XXXX. That a to will is virtually terms long we committed of right. shooting for

The months. programming programming moving are takes We into several now.

of little done time key you do a plenty have is the we it take Then then testing testing, amount have bit. of and you it. that and and you've through put But could don't right. if to only And want a huge beat it to sooner you it go because there But to out back know tests. of you can change for time

So if had now, like I a give XXXX. specific of give you date to you I'd August

Matt O'Connor

presumably that for there's will it look separately, full the assets sale mean, run then year. sounds earning off, in the some year-end slide for guess, first the And quick. quarter relatively stable securities would the XX, I I and outlook I assets think, Daryl, you here Okay. of year And book throughout implies the like at, if inflated at held and kind on relatively

what So in of inflated growth for is you're that year? those run wrong about think quarter? the the the getting of Or I'm first I'm assets maybe with rest to trying assuming off at the kind loan I'm

Daryl Bible

Yes.

what we've Matt, the bottomed I loans the would settled mean, quarter. mainly of down. is, I fourth say out. books, And of trajectory So, mortgages, was coming trades third, have down the off Most

on you go-forward Just our go basis, than presented Board a quarter. But a look little operating week, when plan in this we're at to our left better be looking growth when bit to to this little earlier a bit we GDP. point-to-point,

move that feel fourth we we're have and momentum would I a revenue I the finished we think But point-to-point with and in and So to together positive quarter. teams bit forward XXXX. say little year over retail. heavier And to well that range X% as in working the year in next very we favored the as said commercial are really the generate Kelly loans going X% grow in versus

Matt O'Connor

Okay. Thank you.

Operator

next Our John Evercore comes with from Pancari ISI. question

John Pancari

morning. Good

Kelly King

Good morning.

Daryl Bible

Good morning.

John Pancari

that you have the have drivers assumed I that's factors a you quality, the focusing like would slowing said already cost of that saves on been doing. the service biggest of digital was what assume timing On the driver? the said retention, the stuff customer you lot you the Because that the of that of just would

was change? the that What what So surprised you to change? Thanks. make

Kelly King

picking a best to the We a So, John, the it it systems. really were surprise, was difference. committed of but not is very

And of went really as best. number And surviving to are at so which the picked really, look system Truist systems. SunTrust good a we system we systems, by

of So little you can faster. systems, But you BB&T this convert a the much took all technical. it's if

time -- the over BB&T You programming really a SunTrust data you have equipment But just equipment, longer to That's BB&T pick have the programs. all over SunTrust to and systems bit from systems. system move what's we of and than the on program you thought. BB&T changes put move to driving the it you that the SunTrust when you the

do also then testing. anticipate committed we regard did of because when estimate an a awful about with it's talked And lot the our not to We savings. a to process. But of are we about to it. alluded remember we the of delay, that, branch thing conservative year but testing approval timing, conjunction right feel It is that the with in delayed was you do good to first which

during closings doing non-overlapping be the will of markets. course the in year We

We our will of saves. closings. preparing the work of material timing change for terms pretty a through the of lot be in doing of a channel retail But that's in cost terms the

John Pancari

count slide a outlook And Kelly. on like helpful, Thanks. back then it XX, isn't That's the separately your showing share change. looks to outlook XXXX Okay.

that? And could So in the is buybacks XXXX? you're that not so, give you us for rationale that implying assuming if

Daryl Bible

we We table. risk some some until the got XX% of run announced going to at merger, when we're a CETX of and the the off ratio basically took integrations said the we through

targeting to to XX%. in ask that now, change we months, we build have So capacity But do less CCAR we'll When have decide be sticking success of we our and we're off we the will something couple than coming some -- to to target CCAR starting ask decide our up do will we such if in XX%. that are that right ability that. that after the next

John Pancari

it. you. All Got Okay. Thank right.

Operator

next We'll Mike Wells take Securities. our question Mayo Fargo from with

Mike Mayo

the branch that you I the numbers, Well updated the is said just ago. because six you guess closing in months new. delay almost really not Hi.

better the I'm for just So to trying expenses. outlook understand

like three So of ratio you to lot leverage. implies positive efficiency That look the years. over take from operating XX.X% to down what or XX% XX% a

such XXXX, else? some term that expense that, aren't delaying the are until expect do anything or is, August XXXX? question as of And loan savings branch if in back-office the near you you and I real the leverage guess what the of operating part and I closures the as can more So conversions Thanks. mean get positive in deposit you're

Kelly King

So we years. next positive are for operating the three really leverage will we -- expecting

that's closings be to in So in lot that we closed savings going overlapping of are a again, are number There deferred. the not are the branches are a really, will get. overlapping closings There really that of Remember areas branch story. are good a that near term.

just don't doesn't don't in we In because addition areas. expenses to those mean and branches close we certain overlapping, that reduce

we in Some are branches by can branches. even of are staffing integrate are there they though separate side. that literally these of terms And side two commonalities

saves be are And cost in before even the branches the actually will closed. so there branches

be honest backroom there's all are branches are a there that We the a not to of lot areas So deal one. that with that of related of lot still we -- day areas to have overlapping didn't staffing.

As overlapping goes be will we on, time have redundancy reducing. we that staffing will in additional

we've to We of clear pretty see a it's out. saves, with think But able kind to with feel timeframe very modification be in regard what to honest. it's that. we accomplish the this hodgepodge very, we'll laid of So be terms expected confident to

Daryl Bible

expense have you look you down on all there if non-interest we XX the way that expense, that Mike, categories the to the five I space have expense page on would equipment personnel first three the We the next RIF transaction. will items first when decrease through more in year those to over we years. expect management This drop. did level, went the personnel our closed

group is with third-party sourcing Our vendor our supplier. aggressively working

all and and this in in of focus of to-date Mid-Atlantic close Southeast come year to middle got a all will very we metropolitan really online that we the we're in won't savings our while and buildings major lot end branches should markets And areas get So consolidate working in the aggressively those the XXXX. to areas.

we're So and that the the get cost three we years. going in feel savings very XXXX in to next good

Mike Mayo

not answer And you're so just question giving that the guidance. maybe don't want to

or three? shared at all revenue growth the just look we really back-ended when to and XXXX years expense So year just exceed two growth

Daryl Bible

leverage operating XXXX it promise believe to year, to year, generate have quarter positive XXXX of because – from leverage XXXX. going seasonality. XXXX We every the will we every XXXX operating can't operating But and positive to to XXXX, we're every

Mike Mayo

planning have are follow-up It a sounds company. a then Okay. strong question. And separate just like long-term to you really

maybe measured a you maybe I old from as not that are as side. you're that, approach. on going said you Then you seeing can bit just more a do too. Kind better? in you what guess of Bill You very expected Kelly could the little taking that's well SunTrust chime

Kelly King

expected. areas integration honest, people everything and are any going well that group, well the of To be I'd integrating Honestly, say a have it's our are don't better. area is are I that is going of all well. lot much or institutional going those not our our really There bank extraordinarily teams and as corporate and of whether community as

is teams room days to having into I've together. had of walk working how not again, seen in of last a momentum you some lot to our chance particularly to Bill had So two I've revenue the terms detect the this visit be together. companies real the personally, would just has you able chance that our come with And visit in because well of upside the XX teams especially. are

all been they've for long working time. a think You together

Bill Rogers

Yeah, There good it BB&T Mike, and SunTrust outlined I'd say legacy momentum in entered just momentum good with that. we some some in loan Kelly coming loan was momentum. good well. into as

over that's the the into weeks carrying So year. early of

good to about But that's in relationship it's on want feel that. really with off teamwork things terms we and that see mean, just side really commercial I of the the the charts. and good feel in. On one all pipelines that and community And banking the going month you course the and about. the bank teamwork we're investment of I

the and – into just momentum is the I merger. So strong generally think heading the business

Mike Mayo

you. Thank

Bill Rogers

Thanks.

Operator

Our next question comes Jefferies. with from Ken Usdin

Ken Usdin

math room much the SunTrust Thanks. better that of book to that's that just – provision the about because I through Can I in again. to the XX marked? Good when your where on there move We're just to And than ask with and how going path ends the up of redo number? in wanted of going see legacy the a charge-offs morning. assume the are non-PCD you're mechanics Daryl, XX charge-off within of you mentioned marks help to charge-offs side. Hi. understand, CECL. to us the basis looking bit of guidance. works we the credit any guidance we And how recognition is points PCD you going the

Daryl Bible

Yeah.

would we So, say within our right and XX be uncertainty a of between can we in bit believe guidance – I Ken is the there's marketplace what now. that XX little range. Until that,

performing little out range well. the SunTrust is very widened portfolio we So bit. a

part few credits. of but strong did credit wanted well. their a did we We sell that dispose Nothing sell good of. for the really on it. substance, But as just we some to is We profile have most marks

out we I But of it. to So allocated know the Clarke how market $XXX of that go to When say impact. any million purchase there of just do and to plays into from do there about will PCD, basically don't PCI allowance that's $XXX accounting you add out. want out have a the anything? convert be the but will I little accounting be bit wouldn't million would the CECL nuance, we That's a that come

Clarke Starnes

our things We've our right now. on Yeah. how companies. opportunities also I fast and don't now of economy the consumer between segments a depends stable look consumer very got see And lot margin higher range attractive, the changes around guidance the some and big any grow. two of

and it's dependent it asset the good. mix stability as looks quality right But far the outlook So of upon our economy. as now really and

Ken Usdin

on this point. Okay. And my provision just charge-offs versus follow-up on

Just that provision provision you. versus charge moving between that would at and guide is implies for charge-off be it Thank wider parts the matches say the you year guidance the have range the but what pretty helpful? guess You much offs to of charge-offs, I look your full fair just losses? if

Daryl Bible

CECL So, I'll are can assumptions models more then and within as all our in of our estimate complex provision heard now. our essence, peers, Clarke from But is assuming all in. jump start the you And charge-offs. of

stays but look that is not There's to that's going you assuming assumption that that, And environment, into variables all is client static same. assumption. be our assuming lot a have at to portfolio. built the grow we're We're the market the that So, going that the you behavior. more is mix static. We're like what's is, to here. have Obviously all

Clarke Starnes

provide to way the think incrementally assumption. at assuming I going no about in our reserve rate Yes. is, generally we're Ken, change the big charge-offs it CECL

than larger charge-offs. So, the you'd assume provisions

Ken Usdin

guys. you, Thank Okay.

Operator

question Bank with Najarian Erika from take Instructions] [Operator our America. next of We'll

Erika Najarian

My Hi, again. first good morning. synergies is on question once

impact. statement on given only any revenue I'm synergies operating particularly is Clearly in impressive, organic that have days. think about years. includes company So, The leverage any didn't And wondering, we going forward? the how three if for synergies. XX next growth strong very should positive that over revenue the combined insurance was

what the and wanted the that, company the I in other the during realization 'XX Daryl. Could revenue on pacing savings opportunities combined question cost And side us about 'XX year for the please? understand you on to the the So, of also, tell are? cost

Kelly King

corporate strategies, feel good from complementary leveraged all -- synergies. client a we to is. fantastic side broader Bank to over opportunity Bill fantastic insurance had finance BB&T the a the institutional you has got SunTrust BB&T reach are be combination which very we alluded to group BB&T revenue of a can than this has. reach consumer base. Community Erika, yourself SunTrust alluded national the synergistic and business, Likewise, management Community about wealth the you So and mean how this, I program really feel very, remind of of fantastic Bank

programs that So the be some of into to Bank. BB&T will expand Community Bank SunTrust the able they had

of meaningfully our on really you because, huge synergistic, from positive very is the that you of it's in course opportunity. have very intuitively can't that that, early numbers. hard of know to all all terms outstanding. response from executing give But not net is give people into accretive. today people, those our numbers accurate and numbers factored to We which talking businesses are our And we that of on So

talk of kind and is Now about to very insurance you talked real easy about.

talk to a So, I'll minute. just about ask that Chris

Chris Henson

of Bank Yes. on Community both Kelly's the working Erika, comments the might play and CIB Bill off to and together. also I just mention

the model, about a designed Just in actually the Bank embedded we -- that Cummins designed Bank Community and folks actually tangible are sat Community XXX in couple Beau down the I thoughts, when individuals. industry BB&T corporate capital life to the to Their the with markets purpose of XX regional those of specialists, is client finance integrate sole those the share in base presence, specialists. with

enough sizable December we those. of have seven in we for have your that involved have get just the we three example we and been since be commitments attention that deals on And with X, client that would

in I just I future, good. nature, days -- in that. natural are tell don't teams, deals deals leave having exceptionally that but it XX I'll seven excited. the meetings it's of It's and seven Both about Now, make very, can said you a presidents a effective. at think And pretty from I'll regional gravitation is very been

on executed the set could business those really on. kind transform want initiatives. said, the of target a We side. On two We the on develop guys improve starting of to what we this be transform I in Kelly's on We're -- to to with -- proud consultant point brought insurance up sheet plan to we the white to and our paper. to not EBITDA. or ago more years -- of really a XX have

place is our we've I for tell margins coming industry-leading Just which another not things and in way years in third. X.X% seen new got I production, growth have got career quarter will And business, two it's place. my on we've in up versus this year-to-date. in We've X%, organic pricings We've industry-leading three are the The you And example, And our actually up got want retention. our And increased feet business XX%. Street generating is X%. XX%. you,

things all in So, insurance business. go brokerage the

Erika Najarian

And question -- yes. just a follow-up

Daryl Bible

month's right of tell hard target year. books next full we what We'll just you. it basis. into We'll just each to estimates on quarter-by-quarter clarity. weeks That's now. I of have you trying We're the eight more with would first It's the merger. to a the I at would stay close yes, give be call end We're probably would what only Erika week.

or we'll I road. you the to more and feel and good another very confident estimates us quarter give cost have get saves. enough we down But gave going So think certainty the two we're

Erika Najarian

just purchase the accounting And should just I it. over how we the sure I wanted Got treat as make years. a to follow-up, three understood

NII. make NII? the accrete about back And So I $X.X credit the accrete difference, the just sure I XX% understood way I you just I not mentioned is XX% right guess $X.X thinking way part on to the of billion and liquidity. is that non-accretable would And which of it all is wanted or over mark was credit the of billion the the does to

Daryl Bible

Yeah.

I'm out. this glad called earlier. this mentioned I nuance, the you So

the million into of we've billion go It's adopted of is to of $X.X going about it now out part So in that the CECL $XXX so CECL, now. reserve. it's there

So have and that will as accrete cash from assets those then $X.X it's in liabilities essence you flows the billion in terms. over principal come in having and

Erika Najarian

you Thank great and it. Got logo.

Kelly King

Thank you.

Daryl Bible

you. Thank

Operator

Klock Our next question & with comes from Keefe Brian Wood. Bruyette

Brian Paul

gentlemen. morning, Good

Kelly King

morning. Good

Brian Paul

the Daryl understand buybacks. I a target had comment and to XX% want I the sure just that just CETX I quick then follow-up. make on

a lower accretable So even which at was end versus fast. X.X%, though that's the is coming you bit guys came CETX thought, little in what in pretty coming initially yield through the

you your like enable probably half on still buy of that timing back got in of guys sound a second CCAR the be you target? that's would So does submission stock -- that Would year? the it the feel with like

Daryl Bible

I to sticking really After on pretty power you, the probably ratio X.X% now change part the give to So MSR Brian, start we'll agree next yeah, range. in earnings the buyback. with the start first in and have did a that of adoption, board XX%. RWA this now we relatively we're flat and generate what Right because CECL we ending part Kelly that on our when guidance Bill's build the with then It's quarter we we right quarter CETX the as accrete there. be quickly call and through just and will

Kelly King

Yeah.

that over it's very during clearly the that the down I view. moving we new right out regard Truist very capital a that that down. so that point lot about said mean -- And to also parts of our medical a breaking what's We but of world, remember the Truist. conservative. really be factors to phase things assuming settle first settle a know we existential smart now have term in to remember from there's lot with a so had opportunity of We've with of said life, clearly need we've

of in lot So terms just conservative. a there's reason being of sound

quarters Now of that terms settle uncertainties we that next in will that could capital to be down surprised at wouldn't if there I predictably capital of some be capital have, -- happen. to your the accretion the point occur were several over of all those buybacks. opportunity certainly level the in terms as

Brian Paul

operating the Daryl $XXX full helpful. footnote guidance real That's quick it incremental says some million expenses? million, the means you merger. expenses related the Appreciate follow-up. $XXX merger and is of year guess light the charges? operating $XXX how and to what I merger get that the of for And to the When us remind the it. expenses, that one then the slide to for just million you. XX to in between related incremental to Thank restructuring million $XXX other just differentiation on much incremental I operating includes the can And in

Daryl Bible

doing benefit. that Yeah, Brian, of main transaction. normal a of transaction future putting incremental we due remember at a the the no difference some have are are so charges lot of just Because this primary It's the magnitude detail to if went that things restructuring you between will things benefit. has there the operating. what basically versus of I that at in and and size together merger The through definition and this difference our merger is restructuring

around Scott's together on putting in has it integration we're of -- where putting of calling lots like systems working future So the of the hundreds we're area benefit that ecosystems that those out. an millions while of the on already and those a working architecture in The ecosystems. putting those we're dollars design people doing together

most that those in have to personnel tables are and going schedules where part, out. the our most We're out. in pull most numbers charges those the we it's -- for part, For exist. professional break of But

to of The breakdown As back far fluid. and move level probably But it forth. MOE you would if one-third goes operating. It's about related and going on be the at ballpark merchs it's to high say as it. would a I might could be be the rest estimate going to the

Brian Paul

Thanks Perfect. for Appreciate time. your it.

Operator

comes with Autonomous Our question from next Research. John McDonald

John McDonald

by this to on back follow-ups. guess guided couple the you count you modeling get you with your the CETX. get don't to, that roughly add the you've and in A guys. you end Daryl, year to XX% to take up XXXX year share do if that into quick XX%? Hi, the XX% back does just buybacks I to the that of

Daryl Bible

grows plus Our now minus depends accretion fast are and towards on comes in. year. the of estimates how end right the It the balance sheet XX% all we the how or

of we're So there's in there. the XX%. a lot of neighborhood variables But

John McDonald

like so NII to addition suggest Saul's non-core And seems accounting boost purchase a billion The purchase core the $X.X is this accounting question. margins and of just year. on Okay. or nice to difference year. between follow-up something for this the like It

Does know offset that XX%? of drop that scales merger in a fall the what's that? is will next of any of idea off but saves kick the down? pace quickly the pace year? the it you it idea any Is – Or kind – that that I by got to on it just

Daryl Bible

it mean I in. gave of you does fade the terms process. trying to It year Yes. away we you over amortize the how would several

I of So think the having you're mindset right it. how to model

positive still factor you the cost leverage. Just know that you that operating in as see you and you will model drive saves

John McDonald

Right. right.

of that? annualized Page you're The us of calling XQ and including on investment you that? Like question that you out Last characterizing? just to XXXX $XXX how color some XX. guys investment What is to are – why the Okay. investments on what in And kind are give million.

Daryl Bible

give a I'll couple.

So they're our experience. are to for all different executive teams working team digital and our enhancements assigned than leadership more units our make that improvements and approved work client to our about doubling now the out business

would that So be one.

we branding get going marketing in some to into and hires some the Dante's forth. that sets world, that we're to more some marketplace teams of and have we're putting that skill see more starting there are personnel that In out don't trying be back key have

to... else if know wants So I don't anybody

Kelly King

lot the and focus has got is a our That et those a in. pretty cetera. of of lot and of one a big immediate The technology investment of development excitement innovation

So will during commercial that big there be on a development year. onboarding. this I'll add

that think good calling got I – really point the dozens them. mean seeing quarter client-friendly just of incredibly opportunistic. deferring meeting a And of They're list we're because things we're And some client-focused. now really They're doesn't them it the long-term these making for we've it's a to that sense. are of are capacity out that to are an strategic do investments payback. of we have going lot make not

out. there and in them call put to reason the them that's So

John McDonald

Okay. That's helpful. All right.

So you're that of when kind the – against you guys kind talk about saves? merger of the merger saves netting that the $X.X net billion investments the that's

Kelly King

That's right.

Daryl Bible

stop I wouldn't And of the at expect $X.X north gross mean investment to well $XXX billion. our I million. saves is

John McDonald

Thank Okay. you.

Operator

Lana with Our Markets. next question comes BMO Chan from Capital

Lana Chan

Hi, good morning.

Daryl Bible

morning. Good

Lana Chan

unusual So Was the a dividend quarter. one can for something us the fourth XXXX? there the in And quick run rate quarters on question you give preferred there? in

Daryl Bible

factor have the a we Yes. schedule. are in That's at preferreds have you payout rather look you now to the than that Lana couple nuance semi-annual when that quarterly. dividend Truist

Lana Chan

only But I which $XX think run lower much the previous than is rate? even it was million,

Daryl Bible

preferred we and the BB&T we You one remember reissued another world, though preferred. in then retired

you I of the can basically myself fourth handle Rich sure schedule. should if to question want offline, XXXX this had talk It you. as timing a from in for all a impact I'm or Aaron quarter. that level into or think But that the about favorable out we get

Lana Chan

I just that Daryl Thank you. you said wanted confirm, before. great. And to Okay, then

the to the On time run through the cost that rate year? see fourth in through rate savings the core decline expenses quarterly the a run by quarter should with the for we we the XXXX get

Daryl Bible

Yes.

billion. baseline So make the we XXXX all for you gave is $XX.X you adjustments – if

$XXX XXXX for of down be is $XXX that and million rate which fourth net which on build number, to are million, run annualized our We XX% saying then that. year-after-year savings would cost continue the quarter is we'll

Lana Chan

Okay. Thank you.

Daryl Bible

welcome. You’re

Operator

Our next Scouten from Sandler. Stephen with question Piper comes

Stephen Scouten

a otherwise you've if revenue and offsets wondering to of thinking like XXXX that, guys. wondering dead sort realizations here in $X.XX I'm that calculate in of into the about horse but morning, expense upside terms good just is any I'm Hi, about I XXXX. there's it as seen surprises year from any so seems if a far? the of beat or you've deal delayed Not timing savings. the kind gotten

Kelly King

in opportunities expense revenue in no the you factor intentionally now as with worst we of know, Yeah. Stephen, the our in, down of any factored you're work opportunities. in is case this. didn't revenue delay seeing terms What in the

said, just very, across in opportunities board Chris and Banking really the But Commercial heard banking are you Bill insurance, private as revenue and substantial. the and very

And like underway. talking years as it's to we It's we're speak. that get not two something underway,

very without view the conservative enhancements. the in it's delay So, a expense revenue factoring to factor in

nature. to so But, that's beat we'd be miss. We our rather conservative, try than

we've way that's And together. the of tried factor to kind it so,

Stephen Scouten

mind great. what's that business loan in of your has then, is runoff remaining Okay, already And like of here for are question or for just, process nature, another been sale? in everything and units in terms me things held in restructuring the completed

the might to decisions business loans take or made you additional that are exits line potentially still other balance Or other be look about sheet? to off there

Daryl Bible

Yeah. say move that will to perspective. most from would perspective. part with pretty And forward off a that from quarter. we much we're balance over move Stephen, settle this I sheet wanted restructuring for the Everything

We have the still divestiture our that's later planned in second quarter. probably year

the But part, out for pretty So think we everything rate I done. most of occurs. when that will come have run much that

Stephen Scouten

so much. thanks Great,

Operator

Janney Montgomery And Christopher we'll Scott. take with Marinac our final question from

Christopher Marinac

Hi.

in doing keep keep ask focused? just I you intend team to So combined to you competitors the there of Is employees companies unique to for just do, or that that are terms your want about retaining you compensation anything have. the away and that

Kelly King

in very that whether compensation Yeah. all program we've for ongoing And a arrangements special our for sales been players. one, of working jobs developing revenue day or Chris, jobs. on in from people, key compensation in of terms aggressive

I mean bonus paid XX,XXX did months. teammates few last a that of in the for example, just we we $X,XXX like for our out

thank for hard a their as you Just work.

focus we've And so, yes of a particular lot try on that. to activities to done

our in one we low that's fact low we're is seeing confident of attrition. so very, terms of in feel And And very attrition. what reasons the

things. all good. everybody feels right the So We've done

and aggressive again, very low. remain say, very or not taking very, will our very feel very, attrition work excited, well good, today based of I'll teammates. in is our of terms teammates on confident again, all very, we And the is And very teammates, because the care of again mergers ultimately

So we feel very good.

Christopher Marinac

Thank all Kelly. this morning. Daryl it. I for Bill, Great, information appreciate the you,

Kelly King

thank Okay, you.

Operator

concludes session…. question-and-answer That today's

Rich Baytosh

everyone Okay, a thank has for Hope you, Lauren. us. everyone And great thank day. joining you

Operator

does And thank you. that conclude your for conference. We Thank you today's participation.

may disconnect. now You

Truist Financial (TFC) 30 Jan 202019 Q4 Earnings call transcript