BANCANALYSTS ASSOCIATION OF BOSTON'S ANNUAL BANK CONFERENCE - TRUIST FINANCIAL CORP

All right. Welcome back. Hope everyone had a nice break. I am here with Truist and very happy to welcome you back. I think you've been here once or twice at least. At least, yes. We're glad to be back. Thank you. Okay. So I'll just set a little bit of introduction for Truist. Truist Truist is the 10th largest bank in the U.S., headquartered in Charlotte, with $544 billion in assets. Really strong in consumer banking and wealth, corporate and commercial banking, investment banking, and lots of things going on at Truist right now. No doubt. So we're very lucky to have Mike McGuire here, CFO. Mike has been at Truist for many years, more than two decades, I think. That's right. You've been CFO for four years, and you also spent some time in payments before that. I think that's the first time we met was when you were in that role. And then I think you were an investment banking for many ears. You got it right. Okay. And we also have Kristen Lesher. Kristen is the Chief Wholesale Banking Officer at Truist. You've been at Truest for a little over two years. A little over two years and spent quite a long time at Wells Fargo so very very nice to meet you and thank you for coming. I'm going to get things started because as I kind of mentioned I mean there's a lot going on at Truis right now. You have a new CEO that started just in September so very new. You've got a strategic review going on and I think some you know lots of changes in how you're going to be managing the company. So can you just maybe give us a little bit of update of how you kind of the decision framework of how your approaching this strategic review and we understand that it's early and you know we'll hear more probably beginning of 2027 but just how are you approaching it? Sure, no, great, and good morning, and Ruth, thanks especially for hosting our conversation this morning. Yeah, the work's ongoing, as you mentioned, so very much in flight in terms of the strategic review, and I can give you a sense for how we're approaching it. You know, a place to start is that, you know, and you heard Mike Lyons articulate this in our earnings call in October, is we've got a very clear and a more narrowed strategy, right? And so, you know, our vision statement is that we want to be the most important financial partner to our clients, and that's both in our consumer segment as well as in Kristen's business. And so we believe we have a right to win in both of those businesses, you know, a narrowed focus in consumer on really making sure that we're doing a great job driving core checking, DDA growth, and providing the right products and services around that to frankly accelerate that mission. So we're going to continue to invest in and provide strategic lending products, but it's going to be in service of driving that deposit growth engine. On the wholesale side of the business, we've got Kristen here live in the flesh, and she can take you through a lot of the areas where we're most excited. But at the end of the day, we have a right to win. We want to more deeply, fully serve these clients, have longstanding relationships so that we can help them achieve their financial goals and we can, again, be that most important financial partner. The work and the framework that you referenced, and we talked a little bit about this recently, is we're asking three questions. Is an activity, whether it be a line of business, whether It be a process, whether be a dollar of operating expense, is it aligned to our strategy, number one. Number two, do the profit characteristics or potential of the activity or the line of business or the product or whatever it might be, does it have the ability to meet our return objectives? And then third, if for one reason or another, it's either protecting our firm or serving clients, that's an important question to answer too. And so we're applying that framework really sort of in two containers. The first, and this has been a little bit more public has been around capital allocation and businesses in the balance sheet. And so you've seen us de-emphasize or even stop originating loans in certain businesses like marine and vehicle lending, subprime auto. You saw us announce and successfully divest Regional Acceptance Corp. And we've announced that we're selling Lightstream as well. Those are good examples of assets or businesses where capital has been allocated, where the answer to those questions has led us to say, hey, this is not something that's sensible for us to continue to invest in and operate. And so we've taken advantage of those events to also strengthen our balance sheet. You know, that's another thing that for us is a non-negotiable is to have a really strong balance sheet through all cycles. Andso in the course of divesting, you know, of these businesses where we've had making great progress on things like reducing wholesale borrowings, shortening the duration, improving the flexibility of our securities portfolio, even improving our overall credit profile. And we can talk a little bit more about that later in our discussion. So that's sort of container one. Container two, which we've probably been doing a little more privately, is rationalizing expense. So looking at every single dollar we spend, whether it be on the front line, in the functions, with vendors, tech projects that are solving yesterday's problems, whatever it might be, there's a list of 1,000 items long that we're inspecting with a whole new level of intensity and frankly purpose because we know how important it will be to fund the investments that we know that are going to be required to drive us forward. And so we internally talk about that as sort of sources or capacity. And then, of course, you know, we've got an investment agenda that's going to be focused on both consumer, as I mentioned, where we have a right to win on the DDA stuff. And then Kristen will go into a lot of detail on the wholesale side. Maybe just one last wrapper on that is because we've gotten a lot questions over the last day or two about like, well, hey, you know some of these actions, they feel like you're getting smaller and you're taking steps back. Is that sort of the direction of travel? And the answer is, sure, there's a quick shuffle back um you know we think for very good reasons right um i was just talking to uh one of the analysts out in the foyer here and you know these were low like bad calorie assets and we're reducing that side of the balance sheet to reduce you know bad calorie liabilities um so there's going to maybe be a quick shuffle backwards but the whole idea is to build the right foundation from which to grow and so i can tell you mike lyon's uh ambition is to grow into be a high performing company. And that's what this is all intended to set up. That's great. Thank you. So, Kristen, maybe the wholesale priorities that Mike was talking about, can you maybe expand a little bit of where you think the new strategic review, where that goes for the wholesale business, and maybe what's different or consistent even? Yeah, happy to. And thanks for having us. And it's great to be back at BAB. Last year this time, I was here talking about our wholesale business and giving everybody a good picture of it and where we needed to take it and where we needed to grow. So really appreciate the opportunity to bring that forward and talk about where we're going with Mike. So first and foremost, I would say that what Mike has found in this franchise is absolutely we share conviction around it's a uniquely advantaged franchise for Truist and in the industry. So for us, where we have like this incredible position in the best markets with 150 year history, 30,000 clients and a long tenure of serving them, paired with the full service institutional capabilities that we have within our investment bank, it's something that no one else has in the same way we do. So we're able to bring everything that the best regionals bring and compete with the capabilities of our Wall Street competitors. So we share that view first and foremost, that it's a fantastic franchise. Secondly, I think when you look at the strategy, what we talked about last year is really aligned really well with being the most important financial partner to our clients. So talking about bringing an integrated strategy to bear to our commercial and corporate clients where we are pursuing opportunities with them around payments and advisory services and wealth, that is 100% lined up with where we want to be. I also think what he's bringing to it is like a focus on accelerating the growth that we're seeing. And when I really think about that, the timing is perfect for it because we've spent the last 18 months really setting up the foundation and showing the momentum that we can deliver in many of these businesses. So we're primed to do what we're going to do next. I think that what you'll see from us is, aligned with what Mike McGuire just said, is we need to add more frontline resources to what we've already been doing in all the key areas of middle market, commercial, corporate banking, certain areas of investment banking, and certainly in wealth. And so we are going to be doing that, as well as putting a really high degree of focus and urgency around the places where we have what I'll call the most room to scale. So things like payments, things like the advisory business, those are places where мы've got tons and tons of opportunity ahead of us. And then we certainly have some places where We've got the opportunity to either tune up and or add some adjacent capabilities to serve these core clients. But for the most part, I would say the strategy is consistent, tuned and focused a little further, and we're going to put a lot more resource behind it to help it grow faster. So it sounds like there's an emphasis to really deepen client relationships as well. So is that hiring more people, putting more front line, or is it something else as well? Yeah, well, maybe in order to answer that, I'll go just slightly back to, like, what's been accomplished and the progress that's been made and then layer on to that how we think about deepening. So, you know, I think that what we really needed to do to establish the right foundation in wholesale is we needed to add a lot of talent in some key areas. And we also needed to invest in some of our product capabilities. And then we needed to make sure that we were refocusing a couple businesses and then feeding and caring for the growth that we wanted to have in some of the places where we've had tons of strength, like commercial real estate and investment banking. So if I just reflect on the progress with talent, like we've added close to 500 bankers in wholesale over the last couple of years. We've added them primarily in commercial and corporate banking and payments, although it's been a little bit of everywhere. And that has been a mix of upskilling the talent that we have. So it's really helped us to have like a fantastically focused offense against the client set that we're going after. But it hasn't, in fairness, increased the sheer number of bankers that we Have on the field by as much as we want to increase that. As it relates to the products, we've meaningfully enhanced some of our products, like in treasury management, which I know we'll spend more time on later. And we've refocused our wealth business about being the best wealth business we can be for our consumer and wholesale clients. So all of that we've kind of done at this point. Now what we need to do is we need add meaningfully more frontline resources in our core coverage areas. We need to add more origination resources in areas that really matter to our client base. Think of things like ABL or FX and rates. We just haven't scaled those as much as we need to. and then we've also got an opportunity to deepen with clients by providing a few more lending products that are things that they really care about so we certainly have more opportunity in abl we've got more opportunity and some of the asset-based lending areas where we'll add some capabilities but these are kind of uh they're i won't say easy but these Are really obvious sort of, like, adjacent to what we're already doing things that will continue to develop. Okay. Thank you. Sure. Maybe I'll just go to consumer for a minute. Sure, so, you know, kind of similar question that I just asked Kristen from the wholesale business, but for the consumer segment, I mean, what do you think is the opportunity, you Know, to strengthen that front, to straighten the, strengthen the consumer franchise? I mean we feel strongly that there's a lot of potential that we haven't realized in consumer. But if you think about the starting assets, they're actually pretty compelling, right? You think about the markets that we serve, the share, the density that we have in those markets, the loyal client base that Truist has built over a long period of time. And then I think also just a will in these markets, a desire to have a southeastern champion, which we've been, but we think we can, you know, even more sort of fully fit that profile. And so the potential's there, but the performance hasn't been there, right? I think whether it be deferred investment, execution, we haven't gotten it right. And, so, a lot of our focus now is changing both of those factors. So, obviously, a much more obsessive focus on execution, more accountability on execution, but also a significant amount of investment that needs to be made in these businesses. So it's broad-based. I mean, Kristen talked a lot about frontline teammates and capabilities. I'd say over on the consumer side, it's thinking about the physical network, expanding the physical net, improving the quality of the physical networks, thinking about all of our other channels, our ATM fleet, expanding it, improving it, our digital properties, how they interact across all the various channels simultaneously, marketing investment, where we believe there's some debt, thinking about some of the loan products that, again, are there to serve clients, to help us become and remain the most important financial partner that will drive the DDA account. So the mission for us in consumer, and I'll sound like a broken record, is that core checking growth and that funding engine. And we believe the opportunity is there. It's going to require investment and focus, but that really is a simpler, more narrowed focus strategy that everybody's bought into. And ultimately, this is really important. It's good that these questions were sequenced because the funding engine being in consumer is going to fit hand in glove with what Kristen's doing, generating great assets and then fully serving those clients to create sort of a portfolio of businesses that is in harmony and creates our, you know, financial return objectives. I'd also add to that that I'm super excited about the addition of both Shem and Jeff Warner. And as we think about the investments we're going to make in consumer, we're thinking about them across the sort of horizontal continuum. What do we need to invest in consumer? But how does that also partner with what we need to build in wealth? How do we drive the right continuum between our small business clients and our commercial and corporate clients? And so we're really thinking about that together. Holistically. Great. I'm going to change focus just a little bit. And I just I want to touch on the macro environment, because I think, you know, it's been a lot of Volatility, change in interest rate environment, a lot going on on macro. You know, what are you seeing from client demand? You know has higher rates, has that impacted client demand, have you you know seen anything about competition or is there more you know more irrational behavior, anything that you could comment on kind of the current environment? I can start. I think when you think about loan growth and client loan demand, it actually feels pretty steady. I mean, obviously, there have been changes in the interest rate environment. But when you look at it, the foundation that we have around pretty strong GDP growth, we've got strong consumer spending, there's still plenty of client demand out there. I'll piggyback on what some of Mike said about the strategic review. he talked a lot about some of the things we've been doing in consumer. I just want to share that we're doing many of the same things in the wholesale book. So looking at every single place that we're deploying our capital, and we're looking at places where we might be deploying that capital to a set of clients where we're not going to be the most important financial partner to them and or like they're not gonna have a lot of value that they're gonna take from the broad-based set services that we have. And you all heard in the third quarter some of where we're intentionally trying to reposition that capital into the places where we think we've got the best opportunities to grow. So just know that that's part of what we've been doing as well. In terms of like our ability to compete, I feel good about our ability to deliver the loan growth that we've guided towards in the four to six percent range. I would also say that I feel great about the places where we try to compete against others and we bring the industry expertise and we bring the broad suite of services. We win. And that's really good. We're doing that without any change in how we're thinking about our risk discipline or our risk standards, which has been a hallmark of our company. And in all of what we're thinking about, even as we think about repositioning some of the capital that we had in Regional Acceptance Corp or other businesses, we're going to, a lot of that wholesale will be the beneficiary of using that capital to grow, but we'll be able to do it with a very similar risk profile to what everybody's come to know and respect about Truist. Okay, great. Thank you. I would love to just do a double click on wealth because that's been an area of focus for Truist. And I think, you know, you have made progress, but there's a lot of growth opportunity there. So how should we think about what that opportunity really is and realizing that? Yeah, happy to. And maybe I was actually talking to one of the analysts out in the hall, and I know that you all don't get a ton of information on our wealth business. So let me just start by making sure we're grounded in what it is. So it's got more than $300 billion of client assets. We've got about 1,000 advisors out there. It is a business that has a super attractive return for us, and it is one that we very much want to continue to grow, especially as it relates to wrapping it around the clients that we have in both consumer and wholesale. And just as a sense of the opportunity, only about 3% of our existing client base utilizes Truist for investment services. So there's a lot of room to run within our own client base. I would say that the progress that we've made over the last couple of years has been focusing our efforts very intentionally on doing more with that client base, And what we've seen is that our new client acquisition into wealth is two times as high as it was before, with roughly 50% of that coming from clients that are feeding in from our own areas in consumer and wholesale. We've also seen a dramatic increase in the net flows. We think about the growth of wealth not just with respect to market appreciation, but very importantly, are we actually growing net flows from new clients onto our platform? And we're doing that. And Mike and Mike referenced in the third quarter that while we want the growth potential of that business to be even higher than it is, we're experiencing now sort of record levels of revenue growth. Here's the work that I think needs to be done and where we're going to focus our resources coming out of the strategic review. One, we definitively need to add more talent and wealth, and you'll see us go out and add more advisors. Two, we need to put some more technology investment around it. It's a place that honestly needs more investment in improving the client experience and improving how the advisors are able to utilize the platform to serve their clients. And then importantly, we're very early and have tons of opportunity in wrapping our bank around the wealth clients. And so think about things like generating deposits and loans with our investing clients. I'll just give you a feel. Only 30% of our wealth clients have a loan, any loan with Truist. Andso we want them to have, you know, securities baselines. We want them to do their mortgage with us. Wewant to be able to make sure that we've got capturing all their checking accounts. That's where you're going to see our focus in wealth. And it's a place that Mike and I are very aligned, needs to be a real beneficiary of much of the investment dollars that we're creating here. You've also talked about payments as being a very important part of the strategy. Have I? Yes, you have. Just kidding. Can you, again, kind of just give us a little bit more color on progress, what the investments are? Are you hiring more people? like how does how how does payments how should that look over the yeah happy to so uh there there may not be almost anything as core to being the being the most important financial partner to a client than having their operating accounts and helping them move their money so it is is and will continue to be a huge area of focus for us um maybe if i just take a step back because i think everybody is probably thinking like okay so what's been done how do i think about the phases of this growth trajectory. Maybe I'll put it in some of those terms. What we needed to do and is really establish the right foundation there. And so that meant investing much more than we had been historically in developing the product capabilities and the digital capabilities, which we've been doing over the last few years. We also needed to, frankly, establish a sales force that was going to be the right sales force to go out and sell those payments products alongside our bankers. And so when I talked about the talent that we've added, I would think about more than 50% of the talent in that sales force is new to Truist and has come from other bigger banks where they're used to running this play. So with that done, where we are now is we're in the very early innings of commercialization, and I think commercialization the way I think about it is it's got to start with the core treasury management product, and with that we're seeing some pretty nice momentum. Like we're generating high single digit type P times V revenue with our core TM product,and the pipelines are building really, really nicely. It's hard for you all to see that in our card and treasury management line, but that progress I'm seeing. Where we need to go from here is we need to finish the swing on what we're trying to do in payments. And so what we are really focused on with the strategic review is saying, all right, let's put as much investment as we can against closing any and all gaps that we have in our product set, and especially making sure that it has got all the capabilities it needs to serve some of the larger corporate banking clients who we've got now these fantastic industry bankers out covering. We also need to advance our capabilities to do more of the embedded products. We need to be able to get ourselves onto all the right modernized rails, have the interoperability, for interacting with tokenized deposits, etc. So we're going to try to accelerate as much of that investment as possible, while also ensuring that we're adding even more treasury management salespeople to pair up with the additional set of bankers that we'll be adding to the platform and middle market. So you'll see a lot more frontline sales capacity, a kind of a completion and faster evolution of the remaining product development capacity, and hopefully with that, you'll see the commercialization continue. Thank you. So maybe just to round it out, I mean, investment banking is a core strength of Truist. Where do you think that, where's the opportunity there in investment banking business? Yeah. So investment banking is like a fantastic franchise for us. And if you go back to the beginning, when I talked about this uniquely advantaged franchise that we have, the fact that we Have this investment bank with all of the capital markets capabilities that it brings to clients is a really, really great part of our story and one that we want to continue to develop and grow. I think about our investment bank as being, you know, at its core, highly, highly capable debt capital markets capabilities across not just the places that you all think about all the time and investment grade and leverage finance, but also real strength across areas like asset securitization, project finance, etc. The opportunity that we have is, this has been kind of a high single digit, low double digit grower for us organically over a lot of years. This year, it'll be higher than that. And we want to keep fueling that type of growth with it. We also want to make sure that we're doing more investment banking business with all of our commercial and middle market clients. And, we're seeing a ton of success there. You'll see us put more resource against that. But, when I think about some of the biggest areas that we have to grow. One of the key ones is going to be in the advisory business. We're actually much smaller in the adversary business than what the opportunity set would tell us we should be. And so we're going to put a lot of emphasis there. It'll just continue to be a place that we feed and invest. But I would say, unlike some of the areas where we've got to make a lot of investment in order to continue to build out things, this is a place pretty fully built. And we just need to keep feeding it and growing it and then adding to the advisory platform. Okay. All right. I'm going to keep going just because there's a lot to talk about still. I'm gonna go to expenses, Mike. And, you know, we're talking a lot about the redirecting these businesses and the strategic review of lots of like puts and takes that are happening underneath, not more than puts and takes, but lots of big changes happening. Can you talk about, you know, how you're evaluating of like that, what you talked about the sources and uses and, you Know, what expense kind of how to think about expenses. Talked about it a little bit with, in response to your first question, which is it's the same three questions, the criteria around, is it aligned to our strategy? You know, does it help us achieve our financial objectives? And is it protecting the firm or serving clients in a way that's meaningful? And those are the three questions that we're asking about every single dollar of expense in the company right now. And I think we've had a good track record of managing costs, but there's a whole new sort of pulse of energy and investigation and interest in making sure that all of these dollars are in fact aligned to being the most important financial partner to our clients. And so one of the things I think that's been great that Mike Lyons has brought into the company is sort of recognized sort of assertive focus on making sure that we do create the capacity to direct the dollars to places that will create the most business value over the time. And that's has been motivational from a bottoms up level as well, right? So there are a lot of teammates who are very energized by the idea of stopping things that they don't believe are valuable. Maybe it was a process. Maybe there's, you know, again, a solution that's been in the works for a long time for a problem that if you think hard about it, maybe has changed or no longer exists. That's true in technology. It's true. In terms of how we think about our real estate, real estate strategy. It is true in terms of, you, know, how people in core finance are interacting with people out in the businesses that maybe are performing similar tasks. So There's a whole new focus around the company to try to fund the journey, so to speak. That's been the focus. We had a lot of investor engagement yesterday thinking about this. There's lots of exciting things that we're doing that we were really confident are going to really change the trajectory of our performance. This is a really critical component of getting this piece right. We're mindful of the continued profitability over the medium and long term. You know, so that's a factor as well. We've talked about in October that we don't expect there to be a, you know, a quote unquote seismic shift in sort of how we're thinking about cost management. But this is an important moment for us. It's a reset in many respects. And we want to get it right. And so I truly believe that we're spending the dollars where they matter to drive long term business value. Okay. I'm going to pause and see if there's any questions. And we can go. Manon, do you want to start here? Yeah. Just wait for the microphone just for a second. We're going to do Manon first. So I would say it's a little bit of both. And so one thing I would be clear on is we've been making these investments over the last couple of years, and even over the course of the last six months, eight months, we've been funding putting more frontline salespeople out there. The other thing I should have said at the outset was the momentum that you're seeing in our financial results is coming on the back of these 50% of the Salesforce being new to Seat and especially commercial corporate and treasury, that's like their first year to 18 months of building momentum. And so we're not, we don't have everybody at full productivity yet. So we'll see some continued acceleration just on the back of that. Separately, I'd say that I'd put the investments into a couple of categories. A lot of it is funding more of what we're already doing and just going faster and making the teams bigger. But there are areas, importantly, where we are saying, okay, we hadn't yet gotten to putting enough originators out there for FX and rates. We hadn't gotten enough originator out there for ABL. So we've got to make those investments now. And then there are are areas where we don't offer the capabilities that are really relevant to those clients. And those can be anything from a great workplace banking solution that will develop in partnership with Shem to a couple areas in asset-based finance where we just haven't had some of the products that would be relevant. So you'll see a little bit of everything, but most of it, I would say, is against putting more behind what we've already done. And importantly, one of the reasons that I have even more confidence today than I had last year at this time in our ability to produce the outcomes you all want is because of the momentum we're seeing in the financial results with what we've been doing. All right. I'm going to take one more. Yeah, Mike. Yeah. Christian, you presented here last year, and I think it's a similar message, except now you have a CEO who says go bigger, better, a lot more resources. what is your biggest constraint is it hiring the people that you need because hiring is about as intense as it's ever been is it the internal controls is it you know mike there who says hey let's make sure we allocate capital mike loves me that we allocate cap correctly because you can't just snap your fingers and get where you want to be so you know when you put on the brakes and when can you say hey just let it all out thank you yeah um so i'd say a couple things One, as it relates to attracting talent, we've had a fantastic run in attracting talent to Truist already. I would say the interest in coming to Truist is as high as I've ever seen it right now. So attracting talent is something that I'm not really concerned that we're going to have the ability to do. People are really excited about where we're Going and what we're doing. I think that there is a natural sequencing to like, you know, you can only put so much through the pipe at the same time. And we'll be really, as we lay out the investment agenda, we're spending a lot of time thinking about, let's make sure we're phasing and ramping in all the right ways. To me, one of the bigger constraints, and please weigh in, Mike, is, you know, we got to make sure that we've got our funding engine going at the right rate also, and that we're delivering the right amount of low-cost funding to Truist. We've had a lot of progress around delivering wholesale deposits. And that has started with the liquidity conversations and the payment conversations that we're having. But we've got to make sure that across the company and consumer and small business and in wholesale, that we'RE funding that growth in all the right ways. Thanks. All right. I'm just going to go back. I have a couple other things I'd love to talk about. And maybe just to conclude the strategic review, I mean, in the conference call, you guys talked about is 16 to 18 percent ROTC over time. You know, is there any context of how we can kind of put that, you know, what does the path look like? What does, you know, are you going to talk about that? Yeah, happy to. So, look, we still feel confident in our ability to drive a 15% ROTC next year and over a more medium-term horizon, 16% to 18%. And to be fair, that's a characteristic of high-performing companies in our space. That's what's at stake. That's we're focused on achieving. There's a long list of factors that are going to contribute to that improvement over time. Many of we've touched on today, I mean, maybe starting with a lot of what Kristen was talking about, she is very focused on driving growth in really capital-efficient revenue streams. So you think about the footings are in place, the relationships are in space. To the extent that we can deepen those relationships, add on to that capital commitment with things like rates, things like FX, wealth, capital markets, treasury, that is a huge component of our ability. So just better execution, delivering the right products with the right focus is going to be important. Kristen just touched on deposits are lifeblood. Improving our overall funding mix over time is going to be a contributor to improving our returns. Capital allocation and discipline, you've seen some of that sort of top-of-house action around businesses that don't meet our return objectives. That same discipline applies micro as we're thinking about entering new credit relationships, being disciplined on exiting relationships that aren't working for us where we can't be the most important financial partner. There's some structural under-earning that still is happening on our balance sheet. We've got a securities portfolio that still has a yield profile that's going to improve over time, so that will contribute too. So there are a lot of bricks that build the house, but we feel very confident that we're going to be able to improve profitability to that level over time. Okay. And capital return, you know, you've been buying back stock, you've guided to continuing buying backstock in the fourth quarter. And is that part of the plan as well? It is. You know, we are still in an elevated, at least relative to most peers, capital return position. You know, our capital planning contemplates the full direction of travel right now that's happening out there between sort of the current rule environment and a Basel III world. So if you think about, you know, so first I should say, and I've said this a couple times today, but we are committed to having a very, very strong balance sheet through all cycles. So that's first and foremost, you know, the requirement. But as we think about where we, you know exited the third quarter, you Know, our CT one ratio was 10.7%. Even in a world where you sort of fully burden that capital stack with AOCI. For us that takes us down into the kind of low 9% area. But then with Basel, also some of the some of benefits the day one benefits not not not phased in over time, takes us back up to the, you know, low mid tens. And so we feel good about the capital position that we're in today. That's not the only measure that we focus on. You know, we think about TCE, we think about, it's more of a sort of a constellation of measures. But that gives us a lot of confidence that we, that we are on an appropriate path. We've said that a 10% CET1 operating target plus minus is a reasonable place to be. We still believe that. And that we believe you know over over this horizon supports a continued elevated uh elevated payout so so that's that's the plan for now and um all right and you're sticking to it i'd say uh let's leave everybody with the comment that you've got a company that's completely galvanized around our growth opportunity and the speed at which we're going to go get it with our new ceo all the opportunity in front of us where we're under penetrated in areas that we can absolutely go get and we're thrilled to continue to show you the progress that we're gonna make. Thank you Mike, thank you Kristen, appreciate you coming to BAB.