BANCANALYSTS ASSOCIATION OF BOSTON'S ANNUAL BANK CONFERENCE - PNC FINANCIAL SERVICES GROUP INC

Fireside chat. Thank you everybody. We have PNC Financial Services Group. I was saying to Bill a moment ago that selfishly I was very happy to see this big news announcement during BAB so thank you for helping us out. We saved it just for you. Thank You. We aim to please. Yes and so everybody knows Bill and Rob obviously bill is the CEO chairman and CEO of PNC and he joined PN C back in 2002 if I recall as chief financial officer and then Rob Riley has been there his whole entire career I think back in 1987 correct when you were a a youngster yeah and uh we all work we all worked that's true and now now we're not so um but uh but really it's great to have both of you here and uh again they also had the news um about building out expanding your branch expansion as well so congratulations on that news as well but bill let's start with the announcement since it's such a big one um it came out last night rob was promoted to executive vice chair executive vice chairman that takes effect in march alex overstrom who's here is going to be the new cfo and um so maybe share a little bit what about these moves and why you feel this is the right time to make them yeah we just have so much going on in the company right now the growth opportunities you think about what's going on in and AI just the potential changes to the industry by the changes we see in economy, political landscape, technology, consolidation and banking, all these different things. And Rob and I and Mark kind of get together and say, look, we ought to put big people at big problems. We ought to rotate some talent, get new people in new seats and go after this opportunity. Because I've never seen a landscape like this where I think we have as big an opportunity as we do to break out here. You know, Rob's been solving problems with me for, what's our? A long time. 14, 15, whatever that period of time is. And, you know, it's getting him to be able to do that directly beyond the day job is kind of important. And, you know, Alex, who's just done, he's in the crowd here, just done a phenomenal job for our retail bank, broadening skill sets. One of the things, a little inside information sort of, we had our board meeting this week, and the board was talking to Alex. And Alex was talking about the success we have had in retail, and part of that was a function of moving talent around and hiring in new talent and finding people who knew what great was, which is an important statement, right? As you go into these things, just getting the very best people in the most important seats to cause the biggest change in an opportunity set that we've never seen before, and that's kind of what we're up to. Very good. 53 quarters at CFO, but I wasn't counting. But we go back even before that. He's going to tell you about his, how many, three quarters where you've missed your guys? We've beat more than we met. Yeah. As this crowd knows. There you go. So Alex has got big shoes to fill. Yeah. So that's for sure. Maybe since you still are a CFO. Yeah, sure. earnings obviously came out about three weeks ago and um you guys provided guidance for the fourth quarter um how are things trending so far this quarter rob yeah uh gerard uh you know right on track so uh as you know we uh we issued our cue uh earlier this week and affirmed the guidance so no change uh in guidance you know having a great year as you through uh the third quarter and we expect a uh a good fourth quarter and were tracking that got it on the call you were mentioned some of consensus numbers for an interest income for 27 have you guys coming in around a billion to 1.1 billion above the 26 level that is and um is that the right range and i'm not sure we should interpret it as guidance for 27. yeah yeah i mean it's way uh it's way too early i remember in my first uh bad presentation years ago i said i'm not going to be providing next year's guidance so here i am talking about next year that's how things change uh but um you know the issue was uh it was around you know the peer group obviously we're talking about uh 27 and this uh continuation of what we've seen which is uh this fixed rate asset repricing that we've seen in 26 that we expect to continue into 27 with a high degree of certainty and because of that magnitude we were able to talk about 27 nii loosely on a gap basis Brian wanted me to make sure I got that across, that a billion to a billion one above where we finish NII in 2026 is about the way we're thinking about it now, too. So that's not official guidance. We'll have that for you in January, as we always do on the earnings call, and we'll take it from there. Yep. Not to ask, obviously, for specific numbers, but when you look beyond 27, just what are the drivers for P&C's earnings? You mentioned the fixed asset repricing. Does that play out just next year and then it kind of expires in 28? No, it goes well into 28, and eventually will tail off. But as you know, we've had a lot of loan growth, and we'd expect that to continue. So that's on the NII part, but, and Bill, you can chime in on our businesses. The fee businesses are all, you know, on track, doing well. Obviously, that relies on a good economy that we see holding up. And the expansion markets that we've talked about for years here at BAT, now we're, you Know, multiple years into the compounding effect of that. And the growth rate is really… The client flows, you heard me say it on the call, surprised us so far this year. Just new client business. The other thing about the out years, I mean, just to, you You know, we give you some idea where NII is going to go, and you'll remember when we put the swoosh up because everybody thought banks were dead forever, and we could mechanically see through repricing that we were going to have NII growth kind of independent of what was going to go on with loans. So that's going to happen for the next couple of years. Part of the reason we have some degree of certainty on that is the securities book we hold, while we had lots of notional, we had short duration. So it reprices very quickly. We can visibly see, you know, this is going to mature on this state, and assuming some forward curve, you're going to reprice and get that income. So it's not rocket science for us to be able to tell you, you know, billion to billion, well, next year, and, you know, similar large size as we go out. Eventually, that burns off. But because our book was kind of large, notional, shorter, not a lot of mortgage-backed and fixed-rate loans on our balance sheet, we're just repricing quicker than what you might see from some other peers. We got to it faster, but that's been the case for a while. Maybe shifting over to deposits, what are you guys seeing in competition across your footprint? Is it becoming more aggressive? Is competition being more aggressive? For sure. It's interesting. You've seen a little bit of a bifurcation. Smaller banks um you know in the in the online banks are pushing uh uh funding to kind of fed funds flat right they're in the brokered cd market a lot they're putting offers out that are basically at market rates for marginal funding it's kind of funny you hear all this stuff a deposit price is going to get really efficient well they've pushed it right to the edge at the start um we of promo CDs that have been working for us that are kind of along the funds curve out to a year kind of thing. But no, there's pressure. Loan growth has been greater than people thought. You see consumers at the lower end of the income statement spending down their balances for the first time. And, you know, I'm sure you saw today we announced the extension of our branch build. We're pretty excited about getting in front of more people and continuing our ability to grow deposits at the same rate we grow loans. But it's getting tougher. Yeah, I would just add to that. I think it's tougher, but not beyond our expectations for the environment that we're in. More pressure on the time deposit side, for sure. The other dynamic bill mentioned is on the consumer spend down those recycle as commercial deposits so we do see increases in commercial interest deposits so pretty much as you'd expect yeah when you think about the cumulative deposit baiters and you think back to 22 and 23 when rates went from zero to over five and you guys had your cumulative deposit baiter if I recall in the mid-40s, if that's correct. Yeah, a little higher. A little higher, high 40s. What do you think about this time? We're starting at a higher level of rates. What do think you guys might run into? Yeah, well, the betas in the short term will bounce around a little bit as the world sort of settles into the rate environment, but we would expect it to settle in in our historical levels of low 50s, mid 50s. You got to go back, though. I mean, whether it's high 40's, mid-50s, what happened coming out of COVID was the shift from non-interest bearing to interest bearing, much more. So that was the pain in NII. It wasn't, for us in the industry, it wasn't that interest bearing rates were necessarily changing differently than they had in the past. Okay, got it. Yeah, just massive flows from these low rate, zero rate, because money market funds were paying a basis point. So once they paid something, all that lazy money moved. Oh, absolutely. And that was more than an anomaly. We'd expect this time to be more consistent with others. Bill, you've come out recently with some thoughts and insights on agentic AI shifting deposits around. Can you share with us those insights and your views on where that might be going? I think, look, it's easy to see that through time, the ability to move accounts and move money is going to get faster. You can't argue that point. We've been that way for a long time. You can move money in and out of money funds. There's $7 trillion in money funds you can move money once you connect through a direct bank account back and forth all you want. It'll get easier and competition will get higher and we've seen that through flows through money funds I think what people forget though is that the mindset of people and we see it in our balance profile. The money you keep in your checking account or in your, think about it, your spending profile versus your investing account, that spending profile money isn't really going to change, I don't think. I think the investment accounts are going to get more efficient through time, right? And to compete in that world, you know, you got to be a low cost, high consumer touch and service provider because at the margin over a longer period of time, it'll get more efficient and that's natural it's done that you know we've been doing that for 20 years yep now i'm going to the bill on the earnings call bill was asked um about you know a bot moving it all around and what do you say you got to be out of your mind well no that well no no that's a whole different issue right so the the the notion of agentic execution versus agentic suggestion i I think it's a very different thing. Oh, yes. So, you know, what I've been on record saying is we won't let an agent come in and click buttons, in effect, move money on your behalf without you in the loop authentication on us agreeing to the transaction, you knows, or table stakes. Oh, yeah. No, very much so. Shifting to the other side of the balance sheet, you guys touched upon the loan growth. Yeah. You've been impressed with it this year. I think you've been also saying that a good portion is coming from higher quality credits, which means lower spreads, but also you have attractive economics. Can you provide more color on why the higher quality is coming in this time around, maybe? Not that it was bad quality. No, not that it's bad quality, no, we saw that, and it continues, that the active borrowers in 26 were the large corporates, and the higher credit quality. In our case, we're a leader in asset-backed finances. So we're really talking about the best loans. Which is also large corporate clients. And they're the best, they're the best ones in the commercial book. Very, very low expected loss. I think, you know, we got into it a little bit because of the constraint that loans like that in isolation put on NIM was something that we've talked about. And I think we've clarified that in addition to those loans, when we do those loans more often than not, there's a fee component to it in our capital markets business, which is up 40% in the year, or treasury management, that in total, those transactions, those loans clear our return hurdles, but not simply on the NIIP. So you could actually have a very high returning transaction. One of the reasons our ROTCE has gone up with NIM being constrained. Got it. Yep. Has there been much loan growth around the AI data center build out for you folks? or maybe that second or third derivative around it? No, I think, you know, direct exposure to data center build, I think it's a billion-fourths, and it's only to the established hyperscalers, and it is with real solid contracts. When you look at the blast radius of if this thing really went wrong, you know you could you could find four or five billion of exposure but that's all the way down to local construction firms and you know as far as you can think that it might impact before it would slow down the whole economy right right which i don't think is going to happen but yeah yeah this may be more of a subjective answer but um are you guys seeing any um competition where your competitors are lowering underwriting standards or they're you're seeing crazy pricing deals as we've seen in past cycles yeah you know toward the end of the cycle has that materialized no what i what i would say is um spreads have been under pressure for a period of time this recent bounce kind of driven a little bit by private credit a little bit by data center action is stabilized to increase things i think um some of the easy volume that came in towards the tail end of the data center financing people will probably not like in the end is contracts got a little weaker and there's project risk embedded and but they didn't know that at the time yeah nothing deliberate that we've seen got it coming back to fees Rob you touch on it with your loan growth comment it's a meaningful contributor as you know to revenue growth, as you said, particularly capital markets, how durable is the performance and where's the greatest opportunity to grow the fee revenues across the franchise? Yeah, I think it looks pretty good. I mean, we're having a great year in terms of fee growth. If we just go through the categories, that's how we report them. Our asset management group is up double digits. A lot of that is because of the equity markets, but it's not entirely due to that. These expansion markets are contributing to all the fee lines, asset management in particular, with new flows. Capital markets is having a great year across the board. Harris Williams, of course, is our M&A advisory shop that is the largest component, but about 40% or so, and they're up 40% year over year. But beyond that, our advisory businesses are similarly up, and a lot of sort of the loan-related activity, that's what I was talking about, in terms of loan syndications, underwriting fees, that's that's where that shows up uh card and cash management doing great um you know treasury management is a wheelhouse product for us we're best in class it's so important in our expansion markets and really is the bedrock of commercial relationships uh our credit card uh we talked about that we've got that's part of what bill was talking about in terms of bringing on great people who know what's great we've done that we're tracking now to balances uh so we feel good about that lending and deposit services is consistent the only one that we're not doing a lot of growth in is mortgage which is as you know is pretty small for us yeah that's been pretty quiet but um but all in you know we're having a record fee here yeah but i think you know to your question if you looked at our fee lines and you said you know what are cyclical to capital markets activity or market levels yeah um across that you know We probably have half that are exposed. Some are counter-cyclical. Treasury management's really sticky in some of the other ones. But, you know, look, it's a great year in capital markets. We see it all in the G-SIBs. And were there to be a slowdown, we'd have some slowdown. Not nearly to the level they would. Just because of the different composition. Right. You guys always have had good expense discipline. And I'm curious, how do you manage the investments, you know, the branch expansions, the technology spending with the discipline and keeping that positive operating leverage going forward? Well, you serve that up for me. You've got to have a good CFO. And Alex is well-schooled in that. So that's going to continue. I mean, no, in all seriousness, as you know we've had a continuous improvement program that is part of our DNA in our company. Positive operating leverage is essential to our strategies. I think we probably have as good as, if not the best record of delivering it over whatever period you want to talk about. And that comes from a place in terms of within our DNA, understanding we need to fund with expense reduction. Just to recycle. The other thing, you know, Rob and I were talking about this a couple of weeks ago. I can't think of a time since we've run together where we have shorted investments. We've actually, you know, where we said, all right, well, let's slow this down because we need to print a number. I can'T think of A single instance that we did that. And I can remember early on, just go back in history, where, you Know, we used to say, we're not overspending, we're under-earning. And, you KNOW, everybody got mad at us. but we've been on an investment cycle for 15 years. And so this notion of harvest, first grow, right? You're investing, you're growing, you top line, you look at the growth in the company over a period of time. But importantly, to Rob's point, harvest stuff that is not as important as growth categories you have. And that's a strong muscle in our company. We'll open it up to this floor after this question. On your fourth quarter expense guidance, Rob, tell us or share with us how the growth in fees have been so strong and you have some probably incentive comp that has to come in. And is that a good jumping off point into 27, whatever the number turns out to be in the fourth quarter? Well, so like I said in my first bab, we're not giving 27 guidance other than the NII non-guidance on a gap basis. No, in all seriousness, yeah, so fees in the fourth quarter are tracking a little bit higher than what we would have expected at the beginning of the year, but it is being driven by the fee revenue. So capital markets, we expect to have a good quarter. In addition to that, and we mentioned this on the call, our private equity business, which is in other non-interest income out of the fees, is having a very good quarter, so that's driving the expenses up higher. We'll take that all day. the and the important point there is you know we're pointing for the full year of four plus points and positive operating limit right right which is great oh yeah very good maybe we Johnny if you can bring the microphone up over here to Mike yeah hey why are you here I feel like I'm at the Stone Pony and Bruce Springsteen doesn't walk in or something there you go jeez yeah yeah does that make me the I just missed you Mike I'll make it multiple choice answer number one is because you want to you know reinforce the management change The answer number two is the new branch initiative, reinforce that. Number three is the political change. Certainly it's going to be on your mind. Or number four, acquisitions and your appetite. So is it A, B, C, or D? What are you thinking? It is great having Rob, you know, it's super simple, right? Rob and I have been together forever, and we've announced this thing. And, you Know, I'm here to show you that we're still together and we got a lot to do. And, you know, take all the mystery out of whatever it is you conspiracy theories people might come up with. It's no more complicated than that. Yeah. And I'm just off a week of strategic planning board sessions, so it was kind of good to get out of town and do something different. Well, maybe on some of the specifics, as far as your acquisition appetite and the political landscape, given the changes from this week. Yeah, I honestly don't believe that the changes in political landscape have anything to do with our ability to acquire or not. I think we could have gotten a deal done. It would have been delayed longer in the prior administration. I think that there's a recognition that, over time, challenger banks are a good thing to the G-SIBs. Having said all of that, where we sit today, and I think I said this on the earnings call, The opportunity in front of us to reset our operating framework using AI is so massive, and it's going to happen so quickly, that if you took your eye off the ball from that opportunity set to do a larger integration, you could wake up in two or three years and be done, because you'd have to freeze everything. Small deals, so we did First Bank with a smaller team, and we did it without slowing anything else down. So they're still kind of out there. But I would tell you, you know, the prices are, you can't pay anywhere near the prices where people trade today. It just doesn't work. It just don't work, yeah. I mean, a lot of the smaller institutions are pretty stretched out on funding, heavy on CRE, need big investment. which we didn't need in first bank into branch networks to actually accomplish our objective of increasing our retail share. So it's tough to see that happening in the near future and then the opportunity cost of getting that wrong given what we see in AI makes it even harder. Yeah, I think we did talk about that on the earnings call. So stated in a different way, There's always the variables that you had around acquisitions in terms of returns and whether it works or whatever. That hasn't changed. But the new variable is what Bill is talking about, which is another consideration when you're looking at these things in terms of what the distraction costs might be. Julian? Credit quality has been very benign for a very long time. I'm curious, if short-term interest rates rise much faster or further than we expected, if the bond yields spike, where would you look for pain? And I'm particularly thinking about commercial real estate where you're kind of underweight, leverage loans, maybe some parts of NDFI. And then, you know, beyond yourself, where do you think rivals might come unstuck in a tail scenario? Well, look, in a tail scenario, consumer gets hit. Our delinquencies have actually been declining largely because we've been kind of morphing what we do inside the business, not necessarily because of overall credit quality inside of the consumer exposure. You've heard all the worries about private credit and in a higher rate environment and just the refinancing wall. That almost has to be true. ability to you know to refi at the same notional and higher rates and when they originated it you know inside our book I just I don't see anything that I worry about particularly we actually went through this exercise out of curiosity in the board meetings this week where if you just did a straight one-notch downgrade on our entire credit book overnight it's worth you know six seven eight hundred million bucks and in provision you know our s4 scenario is worth what rob two billion yeah so if you took our worst case economic yeah and just said all at once what does it do it's two billion bucks so i we're in good shape no matter what happens to the economy here by the way i don't i you know notwithstanding all the headlines and the noise and the market volatility the economy's really strong you saw that in the numbers today um yeah so you know there might be winners and losers but i'm not terribly worried about the economy over the next couple of years. I'm not at all worried about our credit book over the next couple of years. I think there will be cracks. I think some of the excesses we all know about are going to start showing up, if for no other reason, because the refinancing risk in a higher rate environment is going to be tougher. Yeah, look, the notion that everybody is going to get bailed out because they could refi at a lower rate, I think, is off the table. Um, as you know, when all of this stuff hit, we hit reserves really hard, um, on the, on the commercial real estate office purposefully, um. You know, because hoping for rates is a hope, not, not a, not a plan. Um, and you know you'll see through time and you have seen our charge offs kind of go up and down as we, you know move that through the, through the criticized and the watch list and a charge off and we're reserved against all that and and we've worked that book down considerably yeah up front here scott bill so you've been i guess among the more outspoken on like this agentic ai thing shocking yeah i'm curious um so when we think about like stable coins there's not a lot of demand for them, but the entire industry is preparing for the eventuality of maybe there being demand. Yeah. I would imagine, like right now, there's probably not a ton of demand or, you know, views or whatever to actually go into a system, but presumably the industry has to prepare for it. It's a little different with agentic AI. There are these huge liability questions. Yeah. And then you've also got, you Know, presumably the industries got to manage this much differently. So what's your best guess as to how this might evolve from sort of a demand standpoint and then how the industry prepares for it as well? So I almost want to ask you to give the mic to Alex because when Muse hit and even before it, I would tell you that retail banks across the country have kind of focused on nothing but that. How do you compete with a technology that exists and will get better? And I think our answer to that, and you're going to start seeing it when we start rolling out features inside of our mobile and online banking using agenda coding and agenda control, is in the first instance, give our customers the ability to do very easily anything they want to do with their bank information, with their Bank finances, with find this, find that, transact this, and replace the whole notion that you need to go somewhere else to make that easy. so you know build a decent defense against it we're far along the path to be able to do that I think the eventuality of you know are you gonna hand control to an agent over transactional outcomes either goods or services and money I think we're just you know years away from that because the liability framework is not set up for that you know and it's most basic for me think of the card networks and other ways you transact there's rules product is broken product doesn't show up who pays it there's fraud who pays it something broke who do you call to get it fixed and until that is set up in an agentic environment it just doesn't work it's the first time there is a problem if you read the muse disclosures it basically says we're not responsible for anything that this crazy thing does. So go ahead and use it, but don't call us when it breaks. And in the end, I think the fact that the technology exists is very different than having the market framework to allow it to succeed. So I think there's a bit of a delay to it, but in the meantime, we have to get on our horse and make sure that we're serving our clients and giving them technology that is as good as what we're seeing from potential interrupters. Johnny, over here on your right. Hi, I'm Stanley. As you think about more banks focusing their branch expansion strategies in similar markets in the Southeast and Texas, I guess it's a bar for how many branches you need to open in these regions? Has that gone up in terms of like the deposit rates you need offer in these markets to game share? Has the bar just basically moved higher now? Can you pass the mic forward? Dig back. Yeah, put Alex on the spot. Let's test him out. It's a good question. Look, I would start by saying, it gets a lot of attention, but of the 8,500 banks and credit unions in the United States, it's just a handful that are really actually opening up new branches ourselves. And I think we've been really clear, and frankly, some of our peers have been, around the level of investment needed, the degree of density you've got to get inside of each of those local markets. So we're seeing, as we progress towards that 7% branch share, the benefit we're seeing in DDA production and deposit balance growth, not just inside of those branches, but also across the market in digital production as well, and the market not going to impact I'll mention credit card, you know, PNC Wolf management and the asset management business both in our private bank and in insider retail. So I think we feel really good about the density. We obviously look at it every day. We underwrite every single one of those branches individually. We track their performance every day at an individual branch level. But so far, it's exceeded our expectations and gave us the comfort and encouragement to keep our support. So we're very excited around what we announced today in Georgia and South Carolina. And remember the goal here, which, you know, when you look at stats on market share growth across the market, you have literally just a handful of banks, mostly the big banks that are consolidating retail in this country at the expense of everybody else. We're actually growing our our growth rate is higher than our share rate. So we're participating in that. but what we're in here is a ground for the retail market share in the U.S. and so I don't really care how we get that share we can build branches everywhere we'll do digital we'll do whatever we want but but when the music stops you have to have critical share if you want to be a real retail player in the in the country if 10 years from now branches are completely irrelevant which I don'T think they will be but if they were and we end up with material share i don't you know happy to write them off it was a great investment um so so you know we've got to do this today because the game is going to end i think there's only four or five players that even realize the game ist going on um and we've gotta be a winner that comes out of the back end of that i i'd add to that um where we're a little bit different than some of the others is we're We're going into markets that we entered years ago through our purchase of the BBVA USA. So we're not going in de novo. We're really going in with the second level of investment that's on top of the first level of investment, that has exceeded our expectations. And as Alex and Bill mentioned, it's about getting to a more critical mass on the branch market share to where you actually get exponential lift of growth once you achieve that. So we are not going into new places and introducing ourselves. a different game. By the way, we tried that once. It didn't work. Well, that's a harder thing for obvious reasons, and I just think that's really important when you think about all that. Maybe shifting over to capital for a minute, with the Basel III endgame coming, hopefully be finalized by the end of the year, what are the implications for P&C's capital requirements in establishing maybe a more definitive CET1 ratio? Yeah, and i can answer that. So, you know, As you know, under the current calculations, our target is 10%. We're a little bit below that just because the loan growth has exceeded our expectations. And we continue to share repurchases, which is important. But we're in the right place. With the Basel III, when it first shows up, we'll lift, and I've said this on the earnings call, approximately a point or so. And there's the negative impact of AOCI phase-in, but that happens over five years. So we expect our negative AOC, I had to Bill's point with the short duration, to diminish over the next five years. But even if you fully load it in, you know, we're at our target levels. So we're in a good place from a capital perspective. We generate a lot of capital. The rules are working in our favor because they sort of reward what is our wheelhouse of these private loans that are using B&M. We use the higher credit quality ratings and getting less capital against those. That's what we're like the poster child for that. So we feel good. Yep. How about with rates rising and obviously AOCI would increase, is there any interest to increase the HTM portfolio? And then with the new FASB comments about maybe giving you guys the ability to hedge that, does that give you some optionality? You could always hedge it. There was degrees of difficulty and mismatch if you had prepayable assets in that book, so straight mortgages. So that doesn't really change a whole lot. What I would tell you about our AFS book versus our held to maturity book, we have set a stress limit in terms of how much capital in a stress interest rate scenario we could draw down through AOCI. And we manage it to that, and it's not a material amount. That's right. And we'll, you know, so the mix on where we'll notion will be, will be driven by outcomes knowing that we don't want to lose more than i don't want to guess the number but it's less than a point of capital or something and a stress is a function of aoci drawing down which i think is a good way to run it yep so we're not actively looking to change our mix got it um you mentioned on the call your third quarter call about uh repurchasing continuing to repurchase stock in the fourth quarter how are you thinking about these you know the repurchases and i know you don't want to talk about 27 yeah any thoughts about 27 on uh yeah so yeah so let me go back to that we're not providing 27 guidance uh the um yeah we've uh we've done a lot of repurchasing uh as you know um through uh through 26 and we'll continue that uh uh and that's part of this capital generation and our ability in terms of where we are you know i don't have official guidance for 27 but what i can tell you is you know our business model is we generate a lot capital and typically and uh you know typical times we generate more capital than we can deploy intelligently right so we'll have to take a look in terms of our loan growth all the things you would look at but i would expect right now that our shared purchase would continue i can't give you an amount but in a meaningful way and and we like our share price yeah got it um maybe we're running out of time so to summarize here at the end um there's a lot of big regional banks and bill reference four or five of you really know what's going on uh in terms of retail banking but uh how should investors be thinking about your positioning in this environment and you know the reasons for you know coming in you know with their capital and then with the changes that you guys announced how that's going to benefit you guys going forward yeah i i um i'm always amazed by the willingness to put the same multiple on in every institution, independent of what you really believe their long-term viability is. The short-term nature of how people are looking at things. I think we're set up to be a winner. We have a growth path in front of us that is all about execution, which is partly related to why we did some of these moves. Never had the energy, literally since I've been in the building, that we have in the energy today around the opportunity set. Now, why is that? It's all the new markets we've entered, it's the branch builds, it the power. We've laid this technology foundation for the better part of 15 years in terms of our data centers, our data construction. We've spent more in data construction, getting one source of truth all in the same place, readable quickly, than we spent on AI. or data centers themselves with GPU chips. We're set up to take advantage of this. We've got this massive new client onboarding through all these new markets. We've capital, we've got a clean loan book, we've a great management team. Yet we sit there and we match up against somebody else who- Doesn't have those things. It doesn't have things. I literally look if somebody put me in the seat of that other company, what would I do? I'd probably sell it. Which maybe is why it has the same multiple, yeah. But that's a hell of a way to invest, guessing who's gonna get sold next. Coming back to this, and I know we're out of time, but a real quick one. On the 15-year, and you're right about your investing in data centers, the money that was spent 15 years ago, is that already obsolete? And I mean, obviously you guys are. Yes, because we've, and you'll see it in our tech numbers, the depreciation numbers that are right now coming online from our complete refresh, you know, or further investment, and that's all in our forecast, and it's nothing new. But, yeah, we've redone it. But importantly, through that whole process, right, we didn't jump into the cloud. We didn't jumping into the Cloud because you can't – it's hard to get out. And if you're storing data up in the Cloud and now you're in an AI environment, the ability to move the data back out of the cloud to use on AI is crazy expensive. So it's just this mindset that we're going to own our own, we're gonna build our own. We're going control our own data. We're gonna know what it is. We are not going to shortcut. We are going to make the investments in compute, in switches, in resiliency and data center, synchronous transmission between our east-west pairs. and it you know and then you get to an opportunity like we see right now um with the gentic and you're ready for it you don't have to hire somebody else to come in and build your agents you don's have to make stuff up it's like right in front of us and we're executing yeah i think i think that's an important point the uh the equipment itself in terms of what needed to be refreshed uh but we do that every three years yeah but to bill's point the the dynamic the energy, the investment in our technology capabilities has been something that's been in place for the better part of the last 10 years. Please join me in a round of applause. Thank you, Bill and Rob. Thank you.