Andrew Leisner

Andrew Leisner requested information on any specific portfolio verticals or geographic regions that are currently experiencing more stress or causing increased concern regarding credit quality.

Answer

President and CEO Andy Harmening stated that currently, no specific areas are causing significant concern, with the bank actively monitoring the economy and managing existing real estate issues. CFO Derek Meyer added that the observed paydowns in CRE were a positive indicator of portfolio health, rather than a concern.

Andrew Leisner asked about the company's capital position, specifically with CET1 at 10.5% and faster capital creation, inquiring about the potential consideration of buybacks versus reserving capital for growth.

Answer

Andy Harmening, President and CEO, emphasized that the number one goal is to invest in the business and drive profitability, with organic growth being the primary priority, especially amidst an ongoing acquisition. He stated that successful execution would lead to profitability, ROTCE expansion, margin expansion, and capital accretion, providing options for capital deployment later. Andrew Leisner also asked about any stressed portfolio verticals or geographies despite strong credit metrics. Andy Harmening reported no specific areas of concern, noting ongoing monitoring of the economy and existing real estate issues. Derek Meyer, CFO, added that CRE paydowns were a positive sign of health, indicating projects moving to the permanent market.