Hi, everyone. We're going to get started. My name is Michael Rose. I'm one of the research analysts here. I'm very pleased to have First Horizon with us, with roughly $82 billion in assets and a market cap of about $11.5 billion. The company is a top-25 commercial bank with operations across the Southeast and in several Southeast markets. It also operates several specialty banking businesses, as well as provides a broad range of banking services, both corporate to both corporate and retail customers. I'm very pleased to have Hope Dmuchowski, CFO, with us today to do a fireside chat. Also have head of internal consulting Todd Jones and director of IR Tyler Craft in the audience. So with that, Hope Dmuchowski, I'd love to kick it off to you for any opening comments you may have. And thanks for being here.
Thank you. First, I'll add to Todd Jones resume. I think we shortened that somehow. Todd Jones also the head of our wholesale businesses, runs our mortgage warehouse, our mortgage, and our franchise finance business. And as we talk a lot about mortgage warehouse being one of our counter-cyclicals, we have the head right here. But nobody wants to talk with him this afternoon.
Right. Well, I'll just start high level. You know, obviously, leading up to the election, there was a lot of optimism. There still is a lot of hope out there, but we've experienced some volatility here in the first couple of months. Can you just give us a broad overview of kind of where customer sentiment is and if you think you see that hope translating into customer activity as the year progresses?
Absolutely. Our customers really haven't moved off where they were in November, in all honesty, which is the wait and see. They have a lot of optimism. There's a lot of pent-up demand. They're ready to get back to growing their business, investing in their business, but they're just unsure as to when to start. We think we have some certainty as to which way interest rates are going, you know, probably less cuts this year and possibly some next year. Their biggest items that we hear consistently is tariffs. Tariffs are a huge impact for them, whether it's directly for their business or whether they want to do a construction project that requires them to import materials. The second one is immigration. What's the labor force going to look like? What's the impact going to be? And they're really looking for certainty on those two.
The third is the tax rollbacks. Everything points to the fact that the tax program will be extended, but they still want to see certainty on specifically those three things. I think once we see that we're going to see loan growth grow, our pipelines continue to grow. But a lot of times those pipelines can grow. You can be in the early stages of conversation, and when they close is when they get more certainty. For most of our customers, you know, we do run an asset-sensitive balance sheet, and it is a variable-rate loan. So if they lock in now and we see a rate cut later in the year or early next year, they still get the benefit of it.
So they're not as sensitive to rate cuts being the first thing to draw, but just certainty into what the economic environment is going to be. And they all kind of feel as if it's 30 days, 60 days, 90 days we'll have that. So it's not that far out, which is why our pipelines are growing.
Got it. Maybe just on the same topic, on the regulatory front, you know, the Trump 2.0 presidency is expected to bring pretty substantial deregulatory agenda, whether it be Basel III Endgame, TLAC scaling back. Maybe the CFPB could be gone at this point, SLR, and a host of other, you know, changes. In your eyes, Hope, what do you see as most and least likely from what we know today? And how does that direct, you know, your and Bryan Jordan and the whole company's decision-making as you operate on a day-to-day basis?
Yeah, the most likely is what we've already seen, which is the pace of new regulation has come to a halt. The last two to three years prior to the administration change, there was at any given time 20+ new regulations or rules coming out of the OCC, the DOJ, the CFPB that we were constantly having to react to, get ready to implement. Now there's no new rules being pended. In fact, there's a lot of discussion about the rules that are pending not going forward, the biggest one being Basel III and TLAC. TLAC is very punitive for banks of our size. Growing over that $100 billion and having to hold the additional debt has a huge cost for us, somewhere between $50 and $75 million.
Everything we're hearing is that it is not going to apply to $100 billion banks and might not be increased for larger banks. There's a lot of conversation for the first time in a long time about whether the $100 billion line should be raised as well. Is $100 billion still a Capital One bank? Or as we look at when that rule was created, you know, after the Great Financial Crisis, is $100 billion now $200 billion or $250 billion? So that's been a new add to the conversation. So instead of $100 billion being so punitive, like we were talking about six months ago, that line's getting a little less punitive under the current rules and possibly getting raised, which allows us to grow quicker without having to add in all those costs in the near term.
So maybe speaking of those costs, because you guys have been building, I know there's a technology program. You talked about being halfway through the $100 million of spend. If that were to be pushed back, how would that, you know, potentially change, you know, the way you guys are, you know, kind of operating? I assume it would free up some capital. You wouldn't have to continue to build as aggressively. Just any color you have would be great.
First, it definitely frees up capital. You know, having to go over $100 billion and hold 6% of our risk-weighted assets just because we tripped over, you know, that one line was going to be very punitive to us. And also, how do you get that much debt? When do you start issuing it ahead of growing? All of those were things that we were looking at. As far as the technology spend, none of that changes. We announced a $100 million three-year plan at our investor day. We're a little bit more than halfway through that. The first half, as we've talked about, was really run the bank systems that were end-of-life, where we still had two systems coming out of the IBERIABANK merger. And now we're into change the bank. Now we're doing more client-facing work.
We're doing things that will impact, you know, our ability to bring products to market. The biggest one that we'll launch later this year is a new digital platform. We're building an in-house digital platform for the first time. We have a team working on that, and we're really excited to see what we can bring and the speed to market we'll be able to bring with our own platform versus having to work through a third party. The third part of your question, Michael Rose, is we are investing in LFI readiness. We've put together a roadmap. We're starting to invest around the edges where it makes sense. The two largest parts of LFI readiness really sit in the risk organization with the risk framework and in the treasury organization, the CFO organization as it relates to liquidity and capital.
The less we have to do there, that's money that we can invest somewhere else in helping the clients, you know, improving the profitability of our company versus implementing new regulations that will be required.
And of that $100 million, I assume some of it has been, you know, capitalized versus expensed. You know, what is that? And, you know, I think you mentioned some of the major pieces, but is there any longer-term, you know, projects that you think you're going to need to, you know, kind of contemplate, you know, as we maybe see some regional consolidation, but certainly some smaller consolidation just as the industry evolves and becomes more tech-centric?
You know, I've been always fascinated with technology, and I've been the CFO over technology at two other banks. The way technology projects work now are 100% different. It used to be so lumpy. You'd put in a new general ledger or a big digital system, and you'd have no cost, and then you'd have to depreciate over three to five years. Well, now it's software as a service. It's agile development. Those big ticket items are more consistent in your run rate. It's not something that eats up capacity in the future. You just move it from a depreciating asset on your balance sheet to a software provider, put it in the cloud. The interesting thing about technology now, we just replaced our general ledger. We were able to cut over this month. And, you know, that was a 41-year system, and we had not touched it in years.
Now, with our new service provider, we are required to upgrade a certain amount of time. So we can only be three versions behind. And so you're constantly on this treadmill now of being up to date. You're no longer having to make the trade-offs of, well, do we work on our general ledger or do we work on our deposit system this year? It really is a constant investment into your technology systems and banking now, which is a huge change from what we saw five years, 10 years ago as banks were announcing large transformational technology projects. They were going out on investor roadshows and decks like this saying, well, this is what it's going to be like. It'll take us three years to burn off. That's not the case anymore. When we finish a project, we have capacity to start building the next project.
Seems like the Apple iPhone, if you're three versions behind, they make you upgrade.
They seem to give me three versions like every month for some security fix.
You know, maybe one last question on technology, and we'll leave it there. But, you know, AI has been a big focus, I think, from a lot of larger financial institutions. And I think you guys are building a team there. It's in the early innings. But if you can just, you know, kind of talk about what the objectives are and, you know, how that can play out over the next couple of years.
Yeah, AI is one of those things that's moving so quick. You can hardly keep up. Tyler Craft, who's actually our investor relations director, was running that before I recruited him away from the technology team to come over and do investor relations with us this year. So he has great insight on that in our meetings later for anybody who wants to ask him. We had to set up a framework. The biggest thing about AI is knowing what you're implementing, where the data is going to sit, what are the guardrails for who can use it. And so we spent a lot of time setting that up, being thoughtful, making sure that the way we use AI is monitored. One of the big things for us is that a person still has to be involved. You can't just set up a chatbot.
You can't just set up an RPA and then just let it run. You've still got to validate it. You've still got to test it. You've still got to look at what's happening. The biggest place that we've seen AI early on for us have a big impact is in the fraud prevention and the fraud detection. Every time we fix one thing that our fraudsters figured out, they figured out another way to create it. We were having dinner last night, Michael Rose, and you heard check washing is a thing again. And so we've created additional technology to look at check washing. You know, what's the sequence of the number? Do we start to see different, you know, colorings on it?
And so it allows us to really quickly do things that humans can't do as well, especially in the detection, the automation of some of the paperwork and spreading of things. It is a huge benefit, but we have to implement it very carefully to make sure that some of the early things we saw with it, learning bad habits or, you know, predatory lending, things like that don't happen, which is why we've spent really the first six to nine months setting up that framework of how we'll use it, how we'll monitor it, and how we'll implement it.
Right. Wanted to switch topics outside of technology. You know, we talked about this a couple of weeks ago, but I think one of the most underappreciated aspects of the First Horizon story is the credit culture that you've built, you know, coming out of the challenges of the GFC and the actions that had to be taken during that period. But it is one thing that I think is really underappreciated by investors. Can you just, you know, help us better understand the processes that you've gone through and the steps you've gone through over the years to kind of create what I think is a durable best-in-class credit culture?
Absolutely. We start with client selection. We know our clients. We run a regional bank model. We run a specialty vertical model, which means the credit decisions aren't made centrally sitting in a hub somewhere. We have credit team members embedded within our markets, embedded within our verticals. They know what they're lending to. They know their products. They know their regions. They know their markets. And they are partnering with the bankers to look at a deal. It's not a yes-no goes through, you know, an AI chatbot that says, yes, this loan works. It says, do we know the customer? We go out and we visit the customer. We look at their business plans. And starting with client selection, that is a big thing.
You know, we have been pushed quite a few times in the last few years of not having top-line growth, maybe the way some of our peers did. We focus on safety and soundness first, which are we going to be able to collect on this loan? In a stressed interest rate environment and a stressed economy, can our customers still meet the needs? Not just because we want to get repaid, but because we want to do the right thing for our customers. We want to make sure we're not lending to them and putting them in a situation where in a rising rate environment, we haven't talked about it. We haven't stressed it. One of the things that we did is our mortgage rate prior to interest rates rising, we've stressed all of our underwriting 300 basis points.
Back then, we heard a lot of feedback from our bankers that others weren't doing it. We were being way too aggressive. We'd never see 300 basis points, you know, raise in any short time, and we saw 550. As an asset-sensitive balance sheet, the majority of our customers had to absorb that increase every single rate increase. They didn't get to wait for renewal. Because we had stressed it before, because we underwrote it to a higher market rate, underwriting rate, our customers were able to maintain their payments, were able to maintain their business. That is a differentiator for us. It goes back to putting our customers first. We always talk about profitability coming after safety and soundness. That's not just for us as a bank. That's for our clients as well.
We want to make sure that they have safety and soundness through the cycle and that we can partner with them to help no matter what comes.
Maybe just for the benefit of the audience, is there any financial, you know, clawback provisions or anything, you know, basically holding your feet to the fire for credit just to make sure?
Credit is a part of everyone's incentive matrix from the CEO down to our bankers. So absolutely, we look at that as a long-term relationship and their incentive based off the long-term relationship, not just booking the loan in that first year.
Yep. Perfect. Maybe, you know, for the benefit of time, I think we're 15 minutes into this, but wanted to talk about deposits and the opportunity as we move forward. You know, I think obviously following the break with TD Bank, you know, there were some rate specials that were put on to keep clients, things like that. But I think you're in the process of trying to rebuild the core deposit base that will come in part with, as you get loan growth and your companies grow with you and, you know, you can attract some clients from other institutions. But can you just talk about what you guys are working on the deposit side and then what the opportunities for repricing are as we think about the next couple of quarters?
Absolutely. We did do a large campaign following the TD Bank termination. We also did a large campaign in the spring of last year. And so we've demonstrated now two years in a row the ability to go out with new-to-bank customer offers, go out to new clients, offer them rates to get them in the door, and then continue to retain and deepen those relationships. So the last two years, we've shown that as we've raised, you know, billions of dollars of deposits with new customers, we've retained 90 %+ of those customers and deposits in the first year. And that's how we think about it. We are using rate to introduce a new customer to First Horizon, not to wholesale fund, not as a rate special and assume that you're going to, you know, trade that out every six months.
We don't run a large CD book for that reason. We have CD products that are complementary for our clients. We don't go out with CD specials typically. We really see it as an introductory product to First Horizon and allows us to make that call, whether it's on the consumer side, the commercial side, the wealth side, and start building a long relationship with that. So I don't mind paying top of market for a rate for 90 days or six months when we see 90%, when we see 90 %+ of those customers come with us. We see great. What'll happen is we'll bring them in at a top-of-market rate. You know, they'll come in with a competitor offer and we'll try to match it. And then after 90 days, and even last year we shortened it to 45 days, we walk it back.
We have a very intentional process where the first one might be 50 basis points and the second one until we get you back to base rate. We look at those rates every single month and say, what's the right thing to do for the customer? We don't go from a promo rate all the way down to base rate and, you know, 90 days later they go down 300 basis points, right? We're really thoughtful in how we walk those customers back to what the right rate is over a period of time. We always have conversations with our clients that they call and say, hey, you know, we're not happy that you walked this back. You know, what can you do? As we start with, we have a deepening rate. If you can bring us more money, we can offer you a different rate again.
It's amazing how often customers are willing to bring you that next dollar to increase the rate. We've seen great success with that program. We'll go out again in the spring this year with a new-to-bank campaign and feel really good that two years in a row we've shown that we can walk those deposits back. You know, I say I think deposit costs this time are going to look less like a hockey stick and maybe more like a zigzag, which is as we see loan growth pick up, people get more competitive. As we see the rate, the next rate cut get further out, people are willing to add duration to the rate guarantee and then we'll walk them back again.
Yeah, and we did talk about this at dinner last night that deposit competition seems fairly rational right now, but the expectation would be as loan growth, hopefully for the industry picks up, and I know we're all rooting for that, that the deposit competition would become more intense. What strategies do you have in place? And do you think you can retain that retention rate, that 90%+ as things get more competitive?
Absolutely. We will continue to target that 90%+. That is how our campaigns are driven. The clients we call, the outreach we do from a marketing perspective, we look at clients that value what First Horizon has to offer that aren't just chasing a rate looking for, you know, what we call in our industry hot money, which is we'll move it as soon as the rate expires. So absolutely, our intention with every one of them is to go out and have that introductory offer to bring you to the First Horizon family.
Great. Wanted to dig into some of your hiring efforts. I think you have seven regional presidents and 42 market presidents. Can you discuss the areas of focus and where you're looking to hire both by geography and lines of business?
Yeah, we're always in the market for good talent, but unfortunately so are all of our competitors. So just like trying to find a good commercial client, we say on average it takes three years to convince a commercial client to leave their current bank and come to us. It's the same thing with bankers. Good bankers have good options. So we're always out there building relationships with good bankers in the market. We recently completed a pretty large Texas build-out over the last three years. You know, we have seven branches now in Dallas and Houston. We've hired, I think, approximately 30 bankers in about the last four+ years with a new regional president that we hired from outside the bank a few years back, and so Texas is one of those big growth areas for us that we feel we're built out.
We might have a couple more to hire there. We're also continuing to pick up bankers in the Carolinas and Florida. But I always say, you know, I tell all of our regional presidents, if you find a good banker, you find a good team. We are not going to worry about whether it's in budget. We're not going to worry about it's the right time. If it's the right time for them, it's the right time for us, and we'll make it work.
Yep. Maybe just sticking on Texas, you know, that I've covered the market for a long time. You know, there's a lot of insulation there. You got to be from Texas to bank, Texas bankers. I know part of the pickup was from the Iberia side. Can you just talk about, you know, what you'd expect that market to be over the intermediate to longer term for First Horizon?
Yeah. Texas is one of the fastest growing economies in the U.S. right now. I feel like I can't open the Wall Street Journal in any given month without seeing a Fortune 1000 moving a headquarters or a satellite office there, so the population growth there is really significant, especially from the Midwest and the West Coast, so we are all, you know, competitive in Texas and chasing a growing money pool there, a growing client pool. I think the opportunity is infinite, but it's slow going. To your point, Texas is a very unique market where there are a lot of Texas-based banks that have long relationships, and as I mentioned earlier, you know, on average, we say it takes about three years of having meetings with a good commercial client or a large small business client to really convince them to move their business.
We've just built out that team in the last two or three years. We're starting to come to the point where hopefully a lot of that will pay fruition and we'll see growth there.
And maybe just to wrap up on markets, you know, Florida is a pretty big piece for First Horizon now. Some of that has to do again with the Iberia deal and some of the deals that they did like Sabadell and things like that. But there have been some challenges here recently with the storms, insurance rates, you know, price of housing, things like that. Property taxes are pretty high. Can you just, you know, kind of outline the opportunity here in Florida? There's clearly a lot of big banks, not many small ones anymore, but how do you think that, you know, plays out from a growth vertical over the next couple of years?
Florida has continually, especially South Florida, been the most competitive banking market for all 20 years of my career. It's amazing to me how many new banks pop up in Miami. We were having dinner with a client last night, our investor last night that talked about a new bank opening in Miami, and you think, can Miami have any more banks, and it seems like they always can, and there's always clients there. South Florida for us is a great growth market. We have a great presence there. IBERIABANK, prior to the MOE, acquired some great banks that had a great network and great connections. It continues to be a growing market for us, and we've seen great success there and expect to see great success there.
As we put out in our quarterly earnings, we have the loans and deposits by state in our North Carolina and Florida regions keep competing for who has the largest deposit share because it seems to flip back and forth right now. They're kind of tied, and so every month the report comes out and we're seeing who's on the top of the leaderboard. It's very marginal, but it's kind of an internal debate right now between North Carolina and Florida, but it has continued to be a great market for us, and we have a great regional president down there.
I bet you the competition is fun back and forth. All right. Now that we've talked about, you know, some of the longer-term stuff, you know, for those, especially on the webcast, wanted to get in some of the near-term outlook and what's kind of shaped up, you know, this quarter. You know, I think first on mortgage warehouse, and we talked a little bit about this last night, you know, kind of the strength that you saw there in the Q4 and then on the fixed income lines of business. You know, how do you see these kind of playing out?
You know, if, you know, if we do get a couple of rate cuts or if we actually get no rate cuts, and I think there's a big debate right now, but just wanted to understand, you know, I know you've talked for a long time about the countercyclicality of the businesses. Maybe you can just describe, you know, how we should kind of think about those businesses in both environments?
Mortgage Warehouse is a seasonal business. We are seeing significant declines in Q1, which is typical. It's not the home buying season. Additionally, January with the 10-year being where it was and the uncertainty in the economy saw a very low mortgage origination number, which impacts that business. So Mortgage Warehouse is down in Q1, which is typical and consistent with past quarters. We're hopeful that we'll see some stabilization in the economy. We'll see that pick back up in the next couple of quarters. Regardless of interest rate scenarios, people still move. People still sell houses and buy houses. You know, the refi market isn't really there, but people can't wait if they're relocating or buying their first house or have a child and don't have a room for that child. So we do expect that we'll see the seasonal home buying season pick up in Mortgage Warehouse.
FHN Financial has had a pretty consistent Q1. It looks a lot like Q4 right now with ADRs. We're not seeing the lumpiness that we saw in Q1 and Q2 of last year where, you know, we'd have weeks where almost nothing was happening. It's more consistent. As we see interest rates drop, I think we will see that business start to slow, start to pick up some. It is definitely a business that benefits from falling rates. It also benefits from a steepened curve. So right now we're generally flat to steepened for the first time in two+ years, and hopefully we're going to stay there. So I feel really good that within, you know, a 12-month period, we'll see those, we'll see them offset.
It's hard to say, will they do it in a single quarter, depending on when a rate cut comes, but right now we feel really good about where our year is. We're only two months in, but feel strong about our guidance, even with lower loan growth in the first- half of the year that we're seeing as a result of the economic scenario.
Yeah, I know we talked a little bit about this last night, but you know, we did talk about kind of the, if the loan growth doesn't come through, that should still, even in a kind of higher for longer environment, should still be an opportunity for, you know, FHN Financial and ADRs as we think, you know, about through the course of the year. So there's that push-pull dynamic.
Absolutely. We definitely see the ADRs offsetting. We're also in a share buyback phase.
Yeah, I was going to get to that.
We have, you know, 11.2 capital. We ended in Q4. Our short-term target's 11. And for us, as we're not having loan growth, we're trading that for share buybacks. I would rather use it for loan growth all day long. It's more profitable long-term. You can only buy a share back once, but we do have a $1 billion authorization. And this quarter we've bought back about $325 million this quarter and still moving forward with share buybacks through the quarter.
Okay, that's helpful. Maybe from a loan growth perspective, I know you guys have talked about kind of a low- single-digit growth rate that could hopefully creep into the mid-single-digit range. Just based on what you've seen so far, you know, what are the push-pull factors that would get you kind of the lower- end versus the upper- end? And you know, I think we've heard a lot of banks talk about the back half of the year ramp, which I always feel like is somewhat slippery slope from the outside looking in. So I know you guys put a lot of time into your forecasts and have a lot of confidence around that, especially the ability to scale revenue and expenses. Can you just talk about, you know, the loan growth dynamics?
Yeah, Q1 has been very anemic. As I mentioned in my opening comments, the uncertainty around the economic environment and just the short-term uncertainty. We're not talking years out. Everyone thinks and believes that at some point the tariffs will come to a conclusion. We'll know what environment we're in. The taxes will, you know, it has to be renewed by June 30th or July 1st, whatever the date is. So we'll either know one way or another if it's not. So right now we're building the pipeline. We're continuing to talk to customers so that when they have that certainty, we can start originating those loans. We can start closing on them.
I don't know if that will be in Q2 or Q3, but to your point, it does look like a second- half of the year, much differently than we were thinking in November and December after the change in the administration.
Got it. Okay. Maybe one last one, and I kind of touched on this, but you know, you guys have talked about, you know, positive PPNR growth, you know, this year and the ability to lever, you know, both revenues and expenses. You know, can you just describe what some of those levers are?
Absolutely. Positive PPNR growth is where we start every single year. That's our basic assumptions. We've got to be more profitable this year than last year. We start with how do we do it on the revenue side. We do have quite a few countercyclical opportunities, and we also have the ability with our specialty businesses, if we don't see the loan growth coming out of the regional bank or we don't see it in one of our verticals, to push into one of our other verticals. They're each given a budget. We do have, you know, some constraints on how we want to lend and where, but we have the ability to shift where we might push a little bit harder into one of those verticals. We saw great success last year, for example, with our equipment finance business. It was one of the best year-over-year growth businesses.
We don't talk about them a lot, but it was a great year for them, and Todd Jones, who was running it at the time, who's here, kept saying, "Hey, Hope Dmuchowski, we're going to run over a little bit of budget. Can I have another $100 million? Here's a great deal." We said, "Yes," and so we do have the ability because we have a very diversified book to push in, whether it's geographic, you know, the ability to maybe lend more in Florida than, you know, Tennessee or Texas or more in Texas than in North Carolina. We have the ability to kind of redistribute that loan growth, so I feel good about on the loan side that we have enough, we have enough levers to pull, and also mortgage warehouse.
We saw a large growth in the second half of the year on not a lot more origination than the prior year. We have a larger market share now. We have a great relationship with our clients. What we're hearing from our clients is that we didn't take down lines two years ago, even in the middle of TD Bank, even in the middle of other banks being on RWA diets. A lot of them are calling their mortgage warehouse clients and saying, "Hey, we know you're not going to need all this line. So we're going to pull half of it back, but when you want it, call us and we'll give it back to you." It doesn't feel good if you're the CEO or CFO of a business and not sure when, you know, a big mortgage refinance might happen. We didn't do that to any of our clients.
We haven't done that in the last 15 years. And so as we're talking to them, they are using our lines maybe more than they were in the past. Every good client that called us and asked for an additional line when somebody else brought their line down or got out of the business, we said yes to. We've talked about how many lines we increased last year, how many new customers. I do think even with a similar origination business in mortgage, we will have a larger share of that this year. And then our fee income, not just FHN Financial, but we put in a new treasury management system last year and our customers love it. And there comes with a fee that increases as you get more functionality. We're rolling out more products on our treasury management platform. That wouldn't this be great.
We talked about positive pay last night. You know, some of the things that we can do to help our customers prevent fraud that they might not have wanted to pay for a couple of years ago, but now they're interested in paying for. The other thing on the fee side is I think the CFPB, you know, they did a, they put in a lot of rules that were not necessarily customer-friendly in the belief that they were helping the end client. And so a lot of fees came out of the traditional banking system. There was a lot of proposed fees that we thought were going to come out, whether it was late fees for credit cards or overdraft fees. Hopefully that's all behind us with, as you said in your opening comments, we're not sure if the CFPB is even going to be here soon.
So hopefully the downward pressure we've seen on the traditional banking fees will go away. We won't constantly have that headwind we've been fighting for the last three years with offering customers a service at a much discounted rate. Tyler Craft just pointed out to me, I said the wrong number earlier. We have $225 million in buybacks, not $325 million. Thanks, Tyler Craft.
Appreciate the correction. Thanks.
Real-time correction there for a number.
It's $225 million for those listening at home.
Sorry, that's what I thought I said, but.
We got one minute left. I can take one question from the audience if anybody has one. All right. I guess we got a shy group. I'll just leave it there.
You had a big dinner last night. Everyone asked all the questions at dinner. We even went late last night.
That's true. We did. Well, thank you, everyone. Really appreciate it. Join me in thanking First Horizon for being here.