Q4 2022 Comerica Inc Earnings Call
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Yeah.
Hello, and thank you for standing by welcome to the Comerica fourth quarter 2022 earnings Conference call. At this time all participants are in a listen only mode. After the Speakers' remarks, there will be a question and answer session to ask a question. During this session you will need to press. One then zero on your telephone to withdraw your question. Please press one.
Zero again, I would now like to turn the conference over to Kelly gauge director of Investor Relations. Please go ahead.
Thanks, Greg Good morning, and welcome to <unk> America's fourth quarter 2022 earnings conference call participating on this call will be our president Chairman and CEO , Curt Farmer, Chief Financial Officer, Jim Herzog, Chief Credit Officer Melinda choppy.
Is that good a director of our commercial banks Peter's ethic.
During this presentation, we will be referring to slides, which provide additional detail.
Presentation slides and our press release are available on the SEC's website as well as in the Investor Relations section of our website Comerica Dot com.
This conference call contains forward looking statements in that regard you should be mindful of the risks and uncertainties that can cause actual results to vary materially from expectation.
Forward looking statements speak only as of the date of this presentation and we undertake no obligation to update any forward looking statements.
Also this conference call will reference non-GAAP measures and in that regard I direct you to the reconciliation of these measures on our website Comerica Dot com.
Please refer to the Safe Harbor statement in today's earnings release on Slide two which is incorporated into this call as well as our SEC filings for factors that can cause actual results to differ now I will turn the call over to Curt who will begin on slide three.
Thank you Kelly and good morning, everyone and thank you for joining our call and 2022, we generated another year of record earnings.
In many ways. It has been an inflection point for our company.
Colleagues returned to the office reinvigorated ready to support our customers and re imagine the way we work and we delivered results.
Strong broad based loan growth and management of loan and deposit pricing in a rising rate environment drive revenue to an all time high of $3 5 billion.
Prudent expense discipline generated an efficiency ratio of 56% and earnings per share increased to $8 47.
Our strategic the strategic investments and balance sheet management helped produce superior returns and position us to maintain a high level of performance.
Our refreshed logo and core values reinforce our commitment to being a leading bank for business complemented by strong retail and wealth management solutions.
Investments and more collaborative workspace digital tool enhanced products and streamline processes better enable our colleagues to put our customers first and create a more elevated experience.
Striving to be a force for good in our communities. We have achieved approximately 85% of our three year goal to provide five big and small business loans and deployed unique solutions, such as our American business, HQ, which provides collaborative space and the southern sector of Dallas.
Publishing our inaugural Tcf. The report was an important milestone in our corporate responsibility journey and highlights our long term commitment to sustainable business.
The report outlines our climate strategy, including supporting our customers integrating climate issues into our business and reduction of our environmental footprint.
As of year end Greenwald over $2 7 billion, a 60% increase over 2021.
This is our renewable energy business, which has already exceeded expectations with all but $350 million involved.
Our commitment to corporate responsibility was once again recognized as we were included for a fourth consecutive year in Newsweek's 2023 list of America's most responsible companies and also included as one of the greatest workplaces for diversity.
Volunteerism remains a priority and I am incredibly proud of you ever 66000 hours, our colleagues committed to possibly impacting their communities.
Okay.
Slide four provides further detail on our full year results.
Relative to 2021 average loans increased $1 4 billion or 3% to over $50 billion.
Putting aside triple P activity loans were up $4 billion or 8%, our highest organic growth rate in well over a decade with contributions from both businesses.
Following growth of almost 13 billion in 2021, driven by government stimulus deposits decreased $2 2 billion in 2022 as customers utilize excess cash and we executed a strategic pricing actions.
Revenue increased 19% driven by higher interest rates and strong loan growth.
Noninterest expenses, reflecting strategic investments higher compensation in conjunction with favorable performance and modernization initiatives totaling $38 million.
Credit metrics were excellent as driven by net charge offs of only three basis points and problem assets remain well below our historical norms.
In summary, a strong performance with an ROE at 18, 6% and an ROA of 132%.
In the fourth quarter, we generated earnings of 350 million or $2 88.
For sure is that lot of Blackrock.
Our financial results were excellent with all time high revenues of over $1 billion up 4% over the third quarter.
Average loans grew almost $1 3 billion, which includes a $329 million decrease in mortgage banker, where volume had been impacted by higher rates.
Average deposits declined $2 6 billion.
However balances stabilize at quarter end, we began to see some positive trends.
Credit quality was exceptional with net recoveries and our percentage of criticized loans remained well below our historical average we built reserves in conjunction with growth and a slightly more negative economic outlook.
Expenses reflected investments in our business and support our revenue generating activities.
It was a record quarter and a record year. We are excited about the investments, we're making to support our colleagues and customers, but also to sustain our strong performance as we move forward.
And now I'll turn the call over to Jim.
During the quarter in more detail.
Thanks, Curt and good morning, everyone.
Turning to slide six broad based on growth continued and exceeded expectations with average balances increasing $1 $3 billion or two 5%.
Commitments, which can be a good indicator of future loan growth increased 5% with contributions from both businesses.
Utilization remains stable at 45% and remained below historical averages as commitment growth outperformed the increase in borrowings.
Loans in our commercial real estate business increased nearly $880 million is the pace of payoff slowed and we fund the construction projects already in the pipeline.
Consistent with our selective strategy nearly all of the growth was in class a multifamily or industrial projects built by large developers that we know well providing significant equity contributions typically averaging between 35 and 40% of costs.
Credit quality in this portfolio continues to be excellent criticized criticized loans remained extremely low and we see no meaningful signs of negative migration.
With our bankers that averaged 20 years of experience our proven operational process stringent underwriting and consistent credit monitoring we believe our approach results in a conservative portfolio appropriately positioned to navigate the current environment.
National dealer services loans grew over $300 million as a result of new relationships and continued M&A activity by our customers.
We continued to see a slow rebound in inventory levels and with consumer auto demand dampening in supply chain, improving the industry anticipate inventory levels to continue increasing throughout 2023.
Corporate banking wealth management and entertainment also contributed significantly to our strong loan growth.
Elevated interest rates lack of housing inventory and normal seasonality, we continued to pressure mortgage banker as average loans declined $329 million for the quarter.
MBA forecasts show volumes remaining at depressed levels through the first quarter before potentially increasing.
Loan yields increased 81 basis points to 545%, primarily reflecting the benefit from higher rates.
On slide seven average deposits declined as customers continued to utilize funds in their business and seek higher yield how.
However balances ended the quarter better than we expected as we adjusted pricing in conjunction with aggressive fed rate hikes.
The strategy work as period end interest bearing deposits increased to $31 $5 billion.
While we did see a modest uptick in noninterest bearing deposits late in the year, we attributed largely to traditional seasonality with elevated business activities, such as customers preparing to make tax payments and distributions in the first quarter.
We continue to believe future epilepsy monetary actions are key to the timing of deposit stabilization.
Our overall mix remained favorable with 56% of average noninterest bearing deposits largely an operational accounts, reflecting our commercial orientation.
Our liquidity position was strong with a loan to deposit ratio of 75% below our historical average.
Beyond deposits, we have significant capacity to support loan growth, including repayments in our securities portfolio and efficient borrowing channels, such as broker deposits and federal home loan bank lines.
Interest bearing deposit cost averaged 97 basis points that reflected the pricing actions taken in the fourth quarter.
Our dynamic pricing strategy will continue to balance our funding needs with customers objectives and the rate environment.
Average balances in our securities portfolio on slide eight declined $1 $4 billion, primarily reflecting the full quarter effect in the third quarter's mark to market adjustments and.
In addition, we are not reinvesting paydowns in our instead repurposing those funds for loan growth.
Relatively stable long term rates resulted in a positive mark to market adjustment of $73 million at period end.
Our total net unrealized pre tax loss of $3 $8 billion affects our book value, but not our regulatory capital ratios.
While we maintain the portfolio as available for sale, mostly for liquidity purposes. We typically hold these securities to maturity in which case the unrealized losses should not impact income.
Despite a reduction in the overall portfolio size securities income remained relatively stable due to higher yielding MBS purchases in the third quarter, replacing the paydown of lower yielding securities.
Turning to slide nine net interest income increased $35 million to a record $742 million and the net interest margin increased 24 basis points.
The benefit from higher rates lifted loan income of $102 million and added 52 basis points to the margin.
Loan growth added $19 billion and three basis points.
Other portfolio dynamics added $1 billion or one basis point and while the market remains competitive we have successfully maintained our pricing discipline.
As I mentioned securities income was relatively stable.
As far as deposits at the fed higher rates, partly offset by lower balances added $5 million at 11 basis points to the margin.
Adjustments to deposit pricing reduce income by $63 million, while lower balances added one basis point.
Higher rates on our floating rate wholesale debt. In addition to our August subordinated debt offering had a 29 billion dollar impact.
Altogether the rise in rates provided a net benefit of $53 million to net interest income.
Credit quality remained excellent as outlined on slide 10, with $4 million of net recoveries along with every a reduction in our already low criticized and nonaccrual loans.
In fact inflows to non accrual loans were only $16 million one of the lowest levels in recent history.
Loan growth and the weakening economic forecast drove the provision expense up to $33 million and the allowance for credit losses increased modestly to $1 two 4%.
With our consistent disciplined approach as well as our relationship model and diverse customer base. We believe we are well positioned to manage through a recessionary environment.
Noninterest income on slide 11 was robust at $278 million and was impacted by volatility in the rate environment and equity markets.
Deferred comp, which is offset in expenses increased $9 million generating a $6 million return for the quarter.
Higher rates earned on funds associated with settling our internal derivative portfolio drove risk management income up $8 million.
The quarterly variance in the visa class B total return swap along with the increase in card and brokerage all contributed positively to the quarter.
As expected customer derivative volumes slowed from recent strong activity and there was a $1 million favorable CVA adjustment, which is a $4 million reduction from the third quarter.
Deposit service charges reflected positive momentum in Treasury management, but they were more than offset by higher earnings credit and lower fees associated with deposit balances.
Fiduciary income was negatively impacted by fees related to equity returns and <unk> had a seasonal decline of $2 million.
Despite this quarter's fluctuations we have a solid core product set delivering a strong level of non capital consuming fee income with promising growth potential.
Turning to expenses on slide 12, we made significant progress towards our modernization objectives consolidating banking centers enhancing corporate facilities and achieving an important milestone in migrating our technology.
And all we incurred $18 million of expenses for the quarter, which slowed the estimate we previously provided due to better than expected severance and asset write downs.
Excluding modernization in deferred compensation, which is fully offset noninterest expenses increased $19 billion.
In support of our growth initiatives, we successfully attracted talent and continuing to invest in products further elevating our customer experience.
Increases in <unk> legal and marketing were correlated with strong business activity in the fourth quarter and driving future revenue with initiatives such as retail re imagined.
Foundational investments in our infrastructure enhanced controls and compliance in this evolving landscape as well as making us more nimble with regards to technology development.
We have some inflationary pressures, including salaries for new staff and recent merit increases and saw seasonal increases in occupancy marketing and other related expenses.
Overall, we successfully balanced investments and other pressures with accelerated revenue growth, resulting in a solid efficiency ratio of 53%.
Slide 13 provides details on capital management.
With record earnings our strong capital generation outpaced capital needed for loan growth, increasing our CET one ratio to an estimated 10.12%.
As always our priority is to use our capital to support our customers and drive growth, while providing an attractive return to our shareholders.
We closely monitor loan growth profitability and credit trends as we balance maintaining our CET, one target of approximately 10% with our dividend and share repurchase strategy.
Our common equity increased 2% benefiting from strong profitability and the impact from OCI losses was minor.
Excluding the OCI losses, our common equity per share increased over 3%.
Also note that our tangible common equity ratio was $4 eight 9%, however, excluding <unk> increased to $9 300%.
Our outlook for 2023 years on slide 14, and assumes no significant change in economic environment.
We expect loan momentum to continue and produce another year of strong growth across all of our business lines, resulting in average loans, increasing 7% to 8%.
The pace of growth should be relatively consistent at 1% to 2% each quarter.
We expect average deposits declined 7% to 8% as customers continue deploying operational deposits or seek higher yielding options.
We anticipate a seasonal decline in the first quarter, followed by a partial rebound and then stabilization as we move through the year.
Comparing fourth quarter year over year deposits are projected to be down only 1% to 2%.
As previously mentioned, we continue to believe the timing and scale of deposit activity will be influenced by a policy monetary policy and economic activity.
With this uncertainty forecasting deposit levels as very challenging.
As we look at mix, we project interest bearing growth driven by strategic pricing actions.
By year end, we expect to be closer to our historical 50, 50 deposit mix still very favorable.
As far as pricing, we expect the first quarter to reflect the full quarter impact from rate actions. We took in the fourth quarter and after that any adjustments should be more modest as we continue to focus on customer relationships the competitive dynamics in our funding needs.
We project strong net interest income up 17% to 20% over our record 2022 level, which reflects the full year benefit from higher rates and we are assuming rates follow up at 12 31 forward curve.
First quarter will be impacted by two fewer days seasonal deposit outflows and continued deposit pricing actions.
We expect net interest income to increase through the year as we continue to benefit from rising rates and loan growth in conjunction with expanding relationships and acquiring new customers.
Yes.
Credit quality has been excellent and we expect it to remain strong. Therefore, we forecast net charge offs at the lower end of our normal range of 20 to 40 basis points.
Assuming the economy performs in line with our expectations, we expect a gradual normalization in credit metrics and our reserve level.
We expect noninterest income to grow 5%.
Customer related income is projected to increase particularly in card due to our payment strategy and fiduciary income, which benefits from investments in our wealth management platform.
Also we forecast an increasing risk management income related to our internal hedging position.
No. This income will vary over time as rates move.
Deferred comp was an $18 million drag in 2022, which we assume will not repeat.
On the other hand elevated volumes of customer derivatives that we saw in 2022 are not expected to continue. However, we believe they have stabilized at a strong level and are poised to grow over time.
A reduction in our deposit service charges as expected due to an increase in commercial account ECA rates and adjustments to our retail NSF fees.
We also assumed boley returns to historical run rate of approximately $9 million to $10 million, a quarter and a $7 million CVA benefit does that repeat.
First quarter is expected to be impacted by seasonality and syndication fees and we assumed deferred comp of $6 million in the fourth quarter will not repeat.
The second half of the year is expected to be stronger than the first as loan syndication activity card fees derivatives and other products trend up.
Our 2023 expenses are expected to grow 7% or 4% on an adjusted basis, excluding the $64 million increase in pension a $19 billion reduction in modernization charges and assuming the $18 million in deferred comp benefit is not repeat.
Drivers of the 4% include the annual Merit increase and other inflationary pressures as well as additional growth and cost tied to revenue generating activity, such as higher staff levels and outside processing related to card.
Further we estimate a $15 million increase in FDIC expenses and higher software costs.
We expect these headwinds to be partly offset by resetting performance comp to normal levels.
First quarter expenses are expected to be lower with a decline in performance comp seasonal declines in advertising and staff insurance as well as other items that are expected to decline from an elevated fourth quarter level, such as modernization expenses deferred comp and legal costs.
Annual stock compensation is expected to partly offset these reductions.
Remaining modernization expenses are expected to be weighted more towards the second half of 'twenty three.
We remain committed to prudent expense management, including investments, we are making to increase revenue and enhanced efficiency evidenced by an efficiency ratio of forecasted below 55% for 2023.
In summary, we drove robust loan growth and fee generation in 2022 and.
In addition, we benefited from higher rates, while executing our hedging strategy and manage deposits credit and expenses.
We generated record revenue and EPS reduced our efficiency ratio and delivered strong returns are.
Our fourth quarter has positioned us well for a strong 2023.
Now I'll turn the call back to Kurt.
Thank you Jim.
By leveraging our more predictable earnings stream, we are better able to strategically invest in our business on slide 15 illustrates our roadmap.
Aligned with our long term strategy these initiatives enhanced our ability to continue to exceed our customers' expectations.
Modernizing our operations and further securing our foundation increase are stable, but agile platform, enabling us to better address evolving needs.
Enhancing our capabilities based on the voice of our customers allows us to invest efficiently driving fee income retention and new acquisition.
Selectively explore exporting our business model to high growth markets capitalizing on our expertise and relationships to broaden our reach as we strive to grow at a faster pace in the economy.
<unk> of our products markets and delivery is critical to sustaining our legacy while achieving our vision of the future.
Slide 16 highlights our compelling story of our business demonstrated ability to deliver broad based revenue growth and our pipeline commitments and product innovation to create momentum as a leading bank for business complemented by strong retail and wealth management capabilities, we've built our.
Business mix and market strategy to create a unique relationship banking model.
Tenure of our colleagues and customer relationships evidenced the success of that strategy.
Credit expertise allows us to not only minimize risk, but also serves the customer acquisition tool demonstrating our understanding of their business and needs.
Looking into 2023, we expect another year of exceptional results. While we continue to make critical investments rich project positive operating leverage maintaining strong profitability metrics reflect our unique position in growth markets with a proven reputation for credit expense and interest rate management combined to create a powerful investor.
Thesis for our shareholders.
Thank you for your time and now we'd be happy to take your questions.
Ladies and gentlemen, if you'd like to ask a question over the phone. Please press. One then zero you may withdraw your question at any time by repeating the one zero command.
Your first question comes from the line of Mylan Ghazaliyah from Morgan Stanley . Please go ahead.
Good morning.
Hey, good morning, guys. Thanks for taking my questions.
I was just wondering.
For 2023 can you help us with how you expect your funding mix to evolve through the E. R.
As you mentioned I mean, it's difficult to forecast deposit growth given the fed actions and the overall environment. So if you can help us with any updated thoughts on you know where you might be okay with you alluded to baas ratio going and how much flexibility you have there. Thanks.
Good morning, Matt and its Jeff ill answer that question.
Turning to the funding mix, it's really important to us to stay diversified so we're using a variety of efficient funding mechanisms, while keeping some dry powder for future loan growth and so when we look at what we plan to do in 2023 first and foremost we are funding much of the loan growth and to the extent we have deposit run off were funding that.
<unk> Securities that we are allowing to mature so that includes both Mds and <unk>.
Securities that mature it is somewhat predictable rate as well as lumpy treasury maturities that we have.
Beyond that we are getting a little bit more competitive with our deposit pricing both in terms of retaining deposits in attracting deposits that might not be currently on our balance sheet.
And then beyond that we do have efficient lines of the FHA will be which we plan on using to some extent, we do plan on adding some broker deposits not a lot, but we will add a modest amount likely at some point during the year.
We will use a variety of sources, we will keep a lot of dry powder on the sidelines to make sure that we can fund ourselves very efficiently going forward.
In terms of loan to deposit ratio.
It is currently well below historical levels at 75%.
We expect it to continue to be below historical levels as we look out in the future certainly for 2023, so no concerns from that standpoint, and we feel really solid in terms of our ability to fund this loan growth and fund any deposits that might run off.
That's really helpful.
For the Securities pay down I know you mentioned it was about a 1 billion a little bit over $1 billion for next quarter can you help us with how that evolves as that's where they are are there any other bullet maturities coming through in <unk>.
In the second half.
Yes.
Would expect the MBS securities to continue to mature at a rate of about $450 million a quarter.
We do have a $700 million of treasuries that mature in the first quarter and then we have another 300 million in the second quarter of this year and then we have a very small tranche I believe in December that won't be a big factor for 2023.
But we should get somewhat of a boost from those maturing securities as they occur through the year.
Great. Thanks very much.
<unk>.
As a reminder, if you do have a question. Please press <unk> zero next we'll go to the line of Steven Alexopoulos from Jpmorgan. Please go ahead.
Good morning, Steve Good morning.
At the start so the guidance implies NIM expansion on tap again for the first quarter.
We know, it's a very fluid situation, but from a big picture view as we sit here today.
I see the NIM trending beyond the first quarter.
Good morning, Steve It's Jim as you know.
We typically don't like to focus on them, just because of our business model and it does tend to be a little bit more lumpy than other banks, if you'd like to focus on net interest income.
But to answer your question, we do expect NIM to be relatively stable in the range that it was in the fourth quarter. It may tick up by a few bps as we see securities run off with those lower yielding securities.
Where we're at right now in the fourth quarter is kind of the area that we will likely hover.
Okay.
What's the deposit beta youre, assuming in this guidance by year end 'twenty three.
The deposit beta is moving as well as of course, the overall rate environment.
We.
We were at about 26% beta in the fourth quarter rates did continue to move through the fourth quarter. So I would say we were approaching 30% data by the time you got to the month of December .
We do think in the first quarter, we will start moving and eventually reach.
Out of 35% data.
For the full quarter average in the first quarter I do think it'll be in that low to mid thirties, pushing up to 35% and then as we move through the second quarter I do have is moving into the upper Thirty's that does include going after some higher price deposits to make sure that we can fund our loan growth in an efficient way.
And then once we get through the second quarter as we hover in that upper thirties. If we had some broker deposits that could push towards about 40, I would then expect it to kind of hold there and that's about the time that rates peak also so thats kind of the trajectory, we're assuming that I see for deposit betas.
That's very helpful. And then maybe my final question just.
Diving a bit deeper into the decline in noninterest bearing you guys are citing customers investing in their business, but I'm curious how much is your customers chasing higher rate alternatives.
Along those lines up until this quarter, but we had heard from any of the regional banks is that treasuries were the key competitor, but what's coming up this quarter is that the regional banks themselves are really stepping up competition for deposits. So.
About your customers chasing it can you talk about the competitive environment right now.
For peer regionals.
Yes, I mean, if I.
Understood the question.
<unk> been a little bit out in terms of volume there, but our customers when they do look at the higher yielding options. They are looking at off balance sheet money market funds and we are increasingly becoming competitive to make sure. We can compete from that standpoint, and we think that's an efficient way to go it's certainly better than wholesale borrowings for us.
In terms of.
Where the leakage is occurring we do some surge deposits still in the DDA and as we talk to customers and look at what's happening in the flows it does seem like.
Probably 40% of them to the extent, 40% of the deposits that have gone off gone off the balance sheet are due to rate and then the remainder is due.
Due to funding Capex operations, maybe a variety of other things. So certainly a mixture. We do think to the extent customers are using deposits to fund their operations, we view that as a very positive sign it is consistent with the loan story. When you look at the strong loan growth that we've seen and we forecasted.
But we are increasingly becoming competitive with money market funds, where we feel we need to.
Okay, great. Thanks for all the color.
Thanks, Steve Thanks, Steve.
Your next.
<unk> comes from the line of Jon <unk> from RBC capital markets. Please go ahead.
Good morning, everyone, Hey, good morning.
Just kind of a follow up there Jim are you seeing any cresting.
Pricing pressures is it decelerating at all.
I wouldn't say it's decelerating.
I Wouldnt say its accelerating either it kind of feels like it is at a certain pace in November and December .
The more price sensitive customers have already asked to be repriced. So from that standpoint, you could see the pressure start to step back a little bit.
And some of these some of these are discussions that go on for several weeks. So it's really hard to pinpoint exactly what it is cresting, but it's certainly not accelerating.
But I do see that momentum continuing probably through the first quarter in terms of exception pricing.
What we need to do with standard pricing. It does feel like that maybe is abating, a little bit but there are always those exception customers that are out there and I don't expect those to take a big step back over the next quarter.
Okay, and will likely get more competitive intentionally so in terms of just going after customer.
Customers that perhaps have moved their balances off balance sheet over the course of the last nine months.
Okay.
And I know you just said you don't like to talk about the numbers.
Ask you about it anyway, you are up 170 basis points year over year.
Youre talking about stability, what kind of threats do you see to that NIM level I know you've done a lot of hedging but.
Do you feel like that's a sustainable NIM level and kind of varying up and down rate environments.
I think the key to that is going to be DDA.
That is really the wildcard and it really has the ability to move net interest income a lot you think about just $1 billion of DDA movement could create a $55 million drag and this forward curve environment.
So that is going to be the wildcard. So we think we can hover kind of in the upper three's call below the upper three's or I'm, sorry, mid to upper threes, but more weighted towards the upper threes.
But I do think the DDA is going to be the key to that assumption in that outcome.
Okay. Good and then just one quick one Melinda expected reserve build how would you like us to think about that it seems like credit is very clean and obviously you're talking about the lower end of charge offs. So how do you want us to think about the reserve build.
Yeah, John Good morning.
I would say that consistent with what we said last time that if the economic forecast as relatively stable youre going to see continued loan.
<unk> Bill that's really consistent with our loan growth. So the reserve right now we feel is conservatively.
And we feel really good about it.
Assuming no material deterioration in the economic forecast I think that reserve build will approximate what we have going on from a balance sheet growth perspective, and then the current assumptions on the reserve build is for our baseline is mild recession. So I think we've adequately factored in what their current economic forecast as it looks like.
Okay. Okay. That's helpful. Thank you very much.
And at this time there are no further questions I would now like to turn the conference back to.
Curt Farmer, President Chairman and Chief Executive Officer.
Well, let me again say that I'm very very proud of our record quarter. Thank you to all my colleagues for all they do everyday to take care of our customers and help our company grow and thank you always for your interest in Comerica I Hope you have a good day. Thank you.
Ladies and gentlemen, this concludes today's conference call. Thank you all for participating you may now disconnect.
Yeah.
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