AGM 2016

Apr 26, 2016

Slides

Ladies and gentlemen, welcome to the Wells Fargo Annual Stockholders Meeting. Please welcome Wells Fargo CEO, John Stumpf. Thank you. Thank you. Thank you and good morning. I'm John Stumpf, the CEO and Chairman of Wells Fargo & Company. On behalf of our directors and management team of our company, we welcome all stockholders to our annual meeting. Also, I'd like to welcome those who are listening to the meeting today by audiocast over the internet or by telephone. Thank you all for joining us. We appreciate the opportunity to be with you here in Arizona, where we have significant operations represented in large part by our company's four main business groups. We have community banking here, consumer lending, wealth and investment management, and of course, wholesale banking. With over 250 banking locations and more than 15,000 team members, Wells Fargo is one of the largest employers in the beautiful Grand Canyon State. I am proud to say that Wells Fargo has been doing business in Arizona since 1858, when our stagecoaches provided regular mail service and transportation to the citizens of Arizona. The service was suspended during the Civil War, but Wells Fargo returned with five offices in 1877, and we never left. Today, our regional headquarters for Arizona is here, located in Phoenix. At Wells Fargo, our vision is to help our customers succeed financially. But in addition to that, corporate citizenship is also important as we participate in the communities in which we serve. We understand and embrace our responsibility to help create more resilient and sustainable communities and focus on developing deep relationships with community partners and other stakeholders to support economic growth. In 2015, Wells Fargo helped support and revitalize communities by donating $281.3 million to more than 16,300 nonprofits across the country. That would rank us as number two of all philanthropic gifts for any corporation of any industry in the country. During this same time, our team members supported more than 30,000 nonprofits by donating almost $100 million of their money, an increase for the 13th consecutive year. Locally in Arizona, Wells Fargo and our team members donated over $8 million to Arizona nonprofits and schools last year. Arizona team members volunteered more than 110,000 hours in 2015 alone. I am proud to welcome some of our Arizona community partners to our meeting in Scottsdale today. If you'd please stand as a group and be recognized, we would love to see who you are today. Thank you for being our partners. Our purpose today is to hold an annual meeting of our stockholders, the individuals and institutions that choose to invest in Wells Fargo. We want to make sure our shareholders have a chance to be heard today in an orderly and respectful environment. First, I'd like to outline the agenda and describe how we'll conduct today's meeting. Please refer to the agenda and the rules of conduct of the meeting, which were included in the materials handed to you as you entered the room. As a courtesy to all stockholders in attendance, please follow the rules of conduct so we may run an orderly and productive meeting. We'll begin with a few meeting details, followed by my report on the company's performance the last year. After my report, we'll have a formal presentation of the items of business to be voted on at this meeting. I will present the first three items. The other two items are stockholder proposals. Each stockholder proponent or the stockholder's authorized representative will have a maximum of four minutes to present his or her proposal. After all items are presented, we will have a brief question and answer period during which stockholders present in the room may ask questions about those five proposals. During this time, as stated in the rules of conduct, stockholders should wait to be recognized before addressing the meeting. During the question and answer period, please raise your hand, and after I call on you, a Wells Fargo representative will bring a microphone to you. This will help ensure that all stockholders present here, as well as those listening on the phone, were able to hear the recognized speaker. Again, please identify yourself, tell us whether you are a stockholder or a proxy for a stockholder, and the number of shares you represent. To maintain an orderly meeting, please restrict your question to a comment or two. A comment is two minutes during this period. After two minutes, you will hear this chime. There we go. That'll be your signal that your time's up. After questions on these items, we'll announce the preliminary results on the vote. We will then have a general question and answer period where stockholders or their proxies who are in the room may ask questions about the general business of the company. The notice of the annual meeting of stockholders and the affidavit of the mailing of the notice have been filed with the Corporate Secretary as part of the record of this meeting. We've appointed Rebecca Paulson of Wells Fargo Bank as Inspector of Elections. With me on stage is Anthony Aguilera, Corporate Secretary. Anthony, do we have a quorum today? Yes, John, we have a quorum. The Inspector of Election has advised me that holders of shares of common stock representing at least 88% of the total number of common shares outstanding and entitled to vote are present in person or represented by proxy, which constitutes a quorum. Thank you, Anthony. I accordingly declare a quorum is present, and this meeting is duly convened for the purpose of acting on the items of business that are properly before this meeting. We are ready to proceed with the business portion of the meeting. I now declare the polls open at 8:07 Arizona time on April 26 for each of the following items of business for consideration at today's meeting, and move for stockholder vote on items 1 through 3, which are management proposals, if properly presented. Items 4 and 5, which are stockholder proposals, included in the proxy statement. Stockholder proponents will have an opportunity to present their proposals following my company report. If you would like a ballot to vote on items 1 through 5, please raise your hand at this time. An usher will give you a ballot. For the proposals listed in the proxy statement, most of you have already voted and submitted your proxy. You do not need to vote again unless you want to change your vote. If you are the record holder of your shares or have a legal proxy to vote your shares held in street name for you by your broker or bank, you may want to change your vote. Again, tell us that on your proxy ballot. Are there anybody in the audience who wants a ballot? I see one gentleman on my left in the yellow shirt, and I see a gentleman straight out in the red shirt. We give him. We will collect those ballots before the polls close. At this time, I would like to introduce the Wells Fargo executive officers who will vote the proxies on file. Please stand as I call your name. Hope Hardison, our Chief Administrative Officer. Michael J. Loughlin, our Chief Risk Officer. James M. Strother, our General Counsel. If you voted by proxy, Hope, Mike, and Jim as proxies will vote your shares as you have instructed. Before we get started with my report on the company, I would like to remind you that during the course of this annual meeting, we may make forward-looking statements about our future financial performance and business, and that those forward-looking statements are subject to risks and uncertainties. Please refer to our SEC filings for factors that may cause actual results to differ materially from our expectations. We also may discuss non-GAAP financial measures. Information about non-GAAP financial measures, including a reconciliation to GAAP, can be found on our SEC filings on our website, wellsfargo.com. I am going to take a few minutes and share our results of 2015 and a quick update about our first quarter results. The first slide is something all our 268,000 team members can say by memory. Really, the reason for our business is to satisfy our customers' financial needs and help them succeed financially. The result is we make money. As we say, we never try to confuse the reason for business and the result of business. Another way of saying that is we don't put the stagecoach in front of the horses. Our vision has been built around this, and this July 13th will be our 164th year in business. This has been our vision for the last 25 years in a formal setting. It has been really the way we have gone to market for all those 164 years. In 2015, we generated almost $23 billion of earnings. We actually had a $0.02 increase in earnings per share, and we generated $86 billion of revenue, which was up from 2014 by 2%. Wells Fargo is in the business of the real economy. You hear a lot about Wall Street banks, and of course, we do some sophisticated things with sophisticated customers. We are a real economy, Main Street bank, serving Americans, consumers, small business men and women, large corporates across the country. In 2015, our capital reached new record levels. We had record payouts to our shareholders, and we also had a significant event that happened last year and early this year, where we bought almost $50 billion worth of loans and relationships from General Electric. It was a big team activity. But one person on our team, Tim Sloan, our newly named President and Chief Operating Officer, played a leadership role in that. Thank you, Tim, for your leadership. The next slide refers to us being a real economy, Main Street bank. We have leadership positions in helping customers succeed. Today, at $946 billion of loans or so, we are America's largest lender. We have leadership roles in lots of businesses. Also, during the year, as I mentioned before, we returned more capital than any other bank back to its shareholders through dividends and stock repurchases. Today, even though we are not the largest bank in the world, we are not even the largest in the U.S., we are the largest market cap bank. In other words, the number of shares times the stock price is how the companies are valued. Last summer, we became the most valuable bank ever in the history of our industry, maybe excluding one or two banks that are owned by the government. Also, as I mentioned earlier, we partner closely with our local communities, and we have now seven years running where our team members are the United Way's number one campaign. Again, for seven years. Quite an honor and really a great statement on behalf of our team members. I would also like to mention, there is lots of talk today about big companies being responsible not only to their customers and team members and shareholders, but communities and to the country. Wells Fargo is one of America's largest taxpayers. Our tax rate last year was over 30%. While there is not a listing of who pays the most taxes in the country, we were able to figure out we are in the top five. We are probably number two and pay the federal government $7, 8, 9, $10 billion, and we have done that for a number of years now. While we have earned a respectable return for our shareholders, we are also a key taxpayer in America. This next slide just gives you a couple of highlights on the year compared to 2014. Again, we had increases in our revenue, in our earnings per share, in our pre-tax, pre-provision income. Today, there is a lot of headwinds in our industry. Today, we are starting to see some credit losses coming up in the oil and gas business, although it is a small business in relative terms to the rest of our business. Also persistent low rates have made it particularly difficult. Even in that environment, we are watching our expenses closely, and we are providing, of the big banks, by far the best returns of that peer group. Moving on to the next slide. I would like to make just a couple of points here. For 14 consecutive quarters now, and this is true of first quarter 2016, there are only two companies in America who have made more than $5 billion a quarter since 2012. One of those is Apple, and the other one is your company, Wells Fargo. So very consistent earnings, very consistent performance, very strong capital, very strong liquidity, a terrific group of team members, and we are privileged to serve one in three Americans one way or another. In the first quarter of 2016, that performance continued. We were the only one of the large six institutions that had actually positive revenue growth year-over-year, in again, a quite a difficult environment. In summary, 2015 was a solid year. It was not a great year, but it was a solid year. What I call the core building blocks of long-term shareholder value creation, loans, deposits, relationships, team member advocacy and engagement, customer loyalty were all moving in the right direction. In fact, in the quantitative areas, loans and deposits, just a terrific year. Those are the things that build long-term relationships. We are looking forward to 2016. We are off to a good start with the first quarter, and we appreciate all of what our team members do to make that happen. Now we will resume the business part of the meeting. We will move to the formal presentation of the items of business to be considered. Again, the five proposals. Stockholders at this meeting will consider and act on these items, and they are in the agenda. I will take questions about these items and only these items at this time after they are presented. If you have questions related to other items, general business of the company, let us save that until after the business portion of the meeting. Now let us move on to item number one, election of directors. According to the bylaws, the board has set the number of directors to be elected at 15 and has designated 15 nominees. All the nominees are here today. Anthony, will you please read the names, and will each nominee for director please stand as his or her name is being called. Anthony? The nominees for director are John D. Baker II. Elaine L. Chao. John S. Chen. Lloyd H. Dean. Elizabeth A. Duke. Susan E. Engel. Enrique Hernandez Jr. Donald M. James. Cynthia H. Milligan. Federico F. Peña. James H. Quigley. Stephen W. Sanger. John G. Stumpf. Susan G. Swenson. Suzanne M. Dodrill. Thank you, Anthony. These individuals have been nominated according to our bylaws. Information about each of the nominees is presented beginning on page three of our 2016 proxy statement. Before we move on to number two, I would like to recognize Judy Runstad, who is not standing for reelection and is retiring from the board after 17 years of dedicated service. Judy has been an outstanding director and most recently chaired our Corporate Responsibility Committee for the past several years. I want to thank her for her many contributions to our board. Item number two on the agenda is an advisory resolution to approve executive compensation. This proposal is explained beginning on page 36 of the proxy statement. Item number three on the agenda is a proposal to ratify the appointment of KPMG LLP as the company's independent registered public accounting firm for 2016. The proposal is explained beginning on page 75 of the proxy statement. I would like to introduce Mike Pearson and Alecia Horsley of KPMG. Will you please stand? Where are they? Right here, off to my left. As stated in the proxy statement, the board has recommended that stockholders vote for items one, two, and three. Item number four is a proposal from Gerald R. Armstrong, a stockholder of the company, asking the board to adopt a policy requiring that the board's chairman be an independent director. This proposal is explained beginning on page 77 of the proxy statement. Laura Paulus is representing Gerald Armstrong and is here today to present the proposal. Laura, are you? There you are. Hi, Laura. Can we get her a microphone so she can be heard? It is coming on your right, Laura. Did I get that, Paulus, is that pronounced? Paulus. Paulus. I am sorry. Okay. Good morning. Good morning. The resolution before you, that the shareholders of Wells Fargo & Company request its board of directors to adopt a policy and amend the bylaws as necessary to require the Chairman of the board of directors to be an independent member of the board of directors. This policy should not be implemented to violate any contractual obligation and should specify, A, how to select a new independent Chairman if the current Chairman ceases to be independent during the time between annual meetings of shareholders, and B, that the compliance is excused if no independent director is available and willing to serve as Chairman. In support of the proposal, I have the following statement. This proposal's proponent is a long-term shareholder of Wells Fargo & Company and is responsible for its elimination of its poison pill and whose say on pay proposals were approved by shareholders on two occasions, despite strong opposition of the board of directors. In last year's annual meeting, he presented a similar proposal, which received votes from owners of 650,142,627 shares, worth $36,024,402,962 on the meeting date. He is familiar with Wells Fargo's problems, which were originated under an administration where one person served as Chairman and President and was accountable only to himself. Nine current directors began serving prior to the 2008 recession. The proponent believes an independent Chairman would seek qualified board members and prevent apparent entrenchment policies. Groupon's failures were placed upon its board chair and Chief Executive Officer, who was ousted by his board in the same manner that Target Corporation's board ousted its Chairman, Chief Executive Officer a year earlier. This is significant to Wells Fargo & Company shareholders because John Stumpf, our Chairman and Chief Executive Officer, is a member of the board of directors of Target Corporation, where one person has been serving as its Chairman, President, and Chief Executive Officer. The proponent asks, if Mr. Stumpf could not see the weaknesses at Target Corporation, is he blind to possible problems at Wells Fargo & Company? Studies have confirmed that underperforming companies that lack an independent Chairman, and companies worldwide are routinely separating the positions of Chairman and CEO. The proponent believes that overextension of duties weakens leadership and may have caused these failings. He notes, too, that many successful corporations and financial holding companies have independent board chairmen. It is apparent that change is needed, and it should start at the top. A Wall Street Journal reported that executive compensation is less when an independent chairman is present. Another report confirmed an 8.5% average reduction to the appearance. 10 days ago, it was announced that Wells Fargo & Company became the only bank flagged for its material errors in its submission of its living will by the Federal Reserve Bank and the Federal Deposit Insurance Corporation. Mr. Armstrong believes this is appalling. After all, the compensation shown on page 57 of the proxy statement confirms record high pay of $66,693,000 paid to the six highest paid officers. For this much money, he asks, why can't it be done correctly? Thank you for your time. Thank you, Ms. Paulus. There's a number of inaccuracies in that statement, but we'll address those later. Thank you for your comments. Item number five in the proposal from Trillium Asset Management LLC on behalf of Paula Sager, Victor Kovner, and Louis Glustine, the Oregon Environmental Council, Plymouth Congregational Church of Seattle, Persephone LLC, and Mayberry LLC, stockholders of the company, requesting a report on the company's lobbying practices and policies. The proposal is explained beginning on page 79 of the proxy statement. Jan Bryan, representing Trillium Asset Management LLC on behalf of Ms. Sager and the six other proponents, is here today to present the proposal. Ms. Bryan, are you. Hi, Ms. Bryan. It's coming to you. Okay. Thank you. Good morning, everyone. Good morning. Fellow shareholders and members of the board, my name is Jan Bryan, and I am here on behalf of Trillium Asset Management's clients to hereby move proposal number five, a shareholder proposal asking Wells Fargo to provide a report on its state and federal lobbying expenditures, including indirect funding of lobbying through trade associations and support for other tax-exempt organizations. I will read the following statement on Trillium's behalf. Transparency and accountability in corporate spending to influence public policy are in the best interests of Wells Fargo's shareholders. Oversight of lobbying is a board responsibility under Sarbanes-Oxley, and without a clear system ensuring accountability, corporate assets can be used to promote public policy objectives that may pose risks to Wells Fargo and its shareholders. Generally speaking, corporations can easily contribute corporate resources to trade associations or other organizations that lobby indirectly on their behalf without specific disclosure or accountability. Unfortunately, lobbying by trade associations and the corporate contributions that fund this activity are not itemized and publicly reported. While Wells Fargo does provide some information about its trade association membership, we must conclude that the disclosure process the company has adopted is inadequate because it does not disclose its membership in or the spending of 15 organizations, including the Financial Services Roundtable, the American Financial Services Association, or The Clearing House. In contrast, other financial service companies do provide more information than Wells Fargo. For example, Wells Fargo does not disclose all of its payments to trade associations. Fifth Third, Genworth, Prudential, and U.S. Bancorp do. Wells Fargo does not disclose its trade association payments that are used for lobbying, but Capital One, Fifth Third, Genworth, MetLife, Prudential, and U.S. Bancorp do. Support for lobbying disclosure is part of emerging governance best practice. The International Corporate Governance Network, representing institutional investors with more than $18 trillion in assets, supports lobbying disclosure as best practice and supports disclosure of any amounts over $10,000, including trade association payments. In closing, we firmly believe shareholders need complete disclosure to be able to evaluate the use of corporate assets for direct and indirect lobbying and the risks the spending poses to shareholders. Accordingly, we urge shareholders to vote for this proposal. Thank you. Thank you, Ms. Bryan. For the following reasons stated in the proxy statement, the board has recommended that stockholders vote against items 4 and 5. We will now accept questions or comments from stockholders or their proxies on these items of business. Please raise your hand and wait to be recognized before speaking. After you are recognized, an usher will bring a microphone to you. Again, if you state your name, whether you are a stockholder or a proxy for a stockholder, and the number of shares represented. As noted in the rules of conduct, please limit your remarks to 2 minutes, and a chime will sound to remind you when your time is expired. Because this meeting is being audiocast, I would like to remind you to speak slowly and clearly so everybody can hear you and you can be heard by those listening by phone. If you have personal financial matters to discuss, please speak with one of our representatives outside the room after the meeting. They can take your information to follow up with you. A general question and answer period will follow the formal business portion of the meeting. With that understanding, let's proceed with the questions on the items of business for consideration today. Let's take them in order. The first item was on our Directors. Anybody have a question about item number 1 regarding the Directors? Incidentally, they are a terrific group of people that bring diversity of experience and thought and industry to our board and to the leadership of the company. Any questions on that? All right. How about item number 2, the advisory say on pay. Any have a question on that item? Seeing none, how about our auditors, KPMG? You are a quiet crowd. Item number 4, any questions on the stockholder proposal requiring an independent Chairman? Okay, and how about item number 5, the disclosure on lobbying and policies and practices? Incidentally, we have been voted a top-tier company in disclosure by an independent CPA firm, and we have a corporate policy. Just so everybody knows, since 2004, we do not use Wells Fargo money, corporate funds for any campaign committee of any sort. After 2010, when Citizens United passed through the Supreme Court, we reaffirmed our policy that no corporate dollars and all trade association dollars that we give over $25,000 are noted on our website, and we inform all of our industry associations that none of that money can be used for any practices like political campaigns and committees and political parties and so forth. Hearing no question, this concludes the question and answer period for the items of business presented today. If you haven't already done so, please give your completed ballot or proxy cards to the nearest usher so we may count your vote in the final tabulation. I now declare the polls closed for the items of business for the annual meeting at 8:33 A.M. on April 26th. The preliminary voting results are available. Will the Inspector please give the Corporate Secretary the preliminary voting results on the items presented at this meeting? Anthony, do you want to give us the preliminary results? For item 1, the inspector's preliminary report indicates that each nominee for director received a majority of votes in favor of his or her election and has been elected a director of Wells Fargo. More than a majority of the shares present in person or by proxy and entitled to vote on the proposal were voted in favor of the advisory resolution to approve executive compensation and the ratification of the appointment of KPMG as the company's auditors for 2016. Therefore, items 2 and 3 have been approved. The inspector's preliminary report also indicates that the stockholder proposals, items 4 and 5, did not receive the required majority support and were not adopted. Approximately 17% of shares present in person or by proxy entitled to vote on the proposal voted in favor of the proposal to require an independent Chairman, and approximately 9% of such shares voted in favor of the proposal requesting a report on the company's lobbying policies and practices. Thank you. The company will report the final voting results on a Form 8-K to be filed with the SEC. This concludes the business portion of the annual meeting, and the business portion of the meeting is now adjourned. We will now have a brief period for general questions regarding the business of the company. Our management team and I will do our best to respond in the time we have remaining. As noted in the rules of conduct, please raise your hand. When you're recognized, an usher will bring a microphone to you. As a courtesy to other stockholders, we ask that you limit your question to the business of the company so everybody can be heard. Please remember to speak clearly so those on the phone can hear. Any questions or comments or thoughts about the business? Yes, sir. Right here. Yeah. We can bring a microphone to this gentleman. My name is Will Freund. I'm a shareholder. I represent about 4,000 shares. Just like to say, first of all, thank you, Mr. Stumpf, and all the team members for all the work you do on behalf of the shareholders. Thank you, Will. I do hope you're going to be staying past 2018. You guys- I hope the directors will keep you in your job past 2018. I have got a question about capital allocation. I think in an interview last year, you talked about how you believe that shares should be repurchased when they are selling in the market below intrinsic value. As a shareholder, I would like to applaud what I think is a very enlightened view on capital allocation. I guess my question is, how do you think about the intrinsic value of the company? I am sure you do not want to give a number, but can you maybe walk shareholders how you think about it? If the shares in the market were selling above the intrinsic value, how would that change your capital allocation policies? Sure. Thank you. Thank you. First of all, thank you for being a shareholder, and thank you for coming here today and asking an interesting question. Let us just back up a second and talk about returning capital to shareholders. We do it in two ways. We pay a dividend, and as you know, we have been increasing the dividend, and the dividend yield today is something in the 3% range. We also buy back shares. The combination of those two activities is the way we return capital to shareholders. Last year, that was $12.6 billion. No one even comes close to that. We returned something in the range between 55 and, what is it, John, 75%? I cannot recall exactly, but I think in the first quarter, we returned 60% of our earnings back to shareholders. We have these two ways of doing that, these two levers. Those also are not totally independent of ourselves. We do an annual CCAR process, which is a process that we participate with our regulator, principally the Federal Reserve, and we actually plan ahead for nine future quarters, and then we have the agreed We find agreement on what we will do on capital distribution. The two things, even though they are both returns, they do different things. The dividend speaks, I think, partly to confidence about the ongoing strength and management's view of existing period and future periods of earnings and earnings growth. You saw when we were so consistent for a long time, especially 14 quarters. Stock buyback is another tool, but that speaks partly to excess liquidity and another way of getting compensation back. Intrinsic value is, I think, a long-term view. Our stock goes up and our stock goes down. But when I look at the building blocks of the company, the growth in loans and deposits, relationships, and our distribution, I'm confident about our long-term future. Today we have headwinds, and with interest rates and so forth. So it can affect intermediate or shorter-term results. But long-term, I've always shown this company, and for that reason, I'm confident in our buybacks and I'm confident in our dividend distribution. It's a great question. Thank you. Another question. Yes, sir. Over here. Thank you, Mr. Chairman. My name is Julian Martinez, and I represent SER Jobs for Progress National. SER is a national nonprofit community-based organization serving more than 1 million people a year by assisting them with their employment and educational needs. SER National and many in the Hispanic community would like to thank you for the many community programs sponsored by Wells Fargo that help people all across our great country. Thank you. The diversity of your board, staff, and procurement program is outstanding. You are truly a great example of corporate responsibility. The American dream is alive and well. Hispanics in this country are more highly educated and earn higher incomes than their immigrant parents. Hispanics outpace all other Americans in forming their own businesses. They represent fully one-third of the U.S. population in just 45 years and be an economic force of great consequence. Latino-owned businesses increased 46.9% from 2007 to 2012. In 2012, 3.3 million Latino businesses had receipts totaling over $517 billion, making up 12% of the total business. Female Latino business owners were 44.4% of Latino firms as compared to 35.3% for non-Latino firms. Hispanics are the youngest racial or ethnic group in the United States. About one-third or 17.9 million of the Latino population is younger than 18. About a quarter or 14.6 million are millennials. Wells Fargo has positioned itself well to capture Latino business. Again, we would like to commend you for all your positive efforts relating to our community. Thank you. How wonderful. Thank you so much for that recognition. I agree with everything you say. It's a big focus for the company, and we are thrilled that so many Latinos in America allow us to be their financial partner. Thank you so very much. Is there another question or comment before we adjourn the meeting? Oh, right here. Hi again. Well, you get a second helping. My second question is related to net interest margins. In the U.S., I think in the large banks, and even in the regional banks, we've seen net interest margins come to about 3%. Maybe some of them are seeing pressure even below then. In Japan, we've obviously seen net interest margins come down to about 1%. I know you've said in the past that interest rates won't affect the company, you don't think, but you do think that we could see lower for longer. I know you and John in your interviews have said that. I guess my question is not really a forecast, but do you see the potential that the U.S., if we stay low for long, the net interest margins could continue to step down? How do you see that impacting the overall U.S. banking sector? Okay. All right. Probably a lot of you don't spend every day thinking about the net interest margin. Maybe I should try to just quickly describe what that is. We make about half of our revenue from what we call non-interest income. We help customers with mortgages, we help customers with debit cards, and those are fees for services. The other half, about a little more than half, is what the questioner is talking about, the net interest margin. We lend money at a certain rate. Let's call it 3% or 4%. We take money in at 1%, as an example, and we make a 3% margin. If you look back at our company historically, that margin was 4%, 5%. I remember the days when it was 6%. As the questioner accurately suggested, that is coming down. Why is that coming down? Well, as interest rates have dropped, at one time we lent money at 10% and we took it in at 5%. As rates came down, we kept going down. We hit the floor on deposit rates. Next to nothing. You know what you're earning on your deposits. Loan rates that you also have seen what you've been refinancing your homes at. It got squeezed. We couldn't bring rates down any further, and the loan rates came down, so it squeezed that margin down to something less than 3% for our company. But I would also say there's some other things going on in the balance sheet that have also impacted that. Because of what happened after 2008, the Dodd-Frank rules, Basel Accords, we now keep a lot more liquidity on the balance sheet. So we ballooned up the balance sheet. About 25 kind of earning assets, give or take, it's probably a little less than that, is sitting on deposit with the Fed earning us almost nothing when you compare the cost of getting those deposits. It's about $300 billion. So there's been some things that have happened, real time stuff, and there's been some things that have happened in the balance sheet that would cause that to be where it is. But when John and I share our earnings calls or before that, Tim and I, we try to encourage our investors not to focus so much on the margin. Because we're still growing net interest income even though the margin's coming down because we're growing with our customers. We're actually producing more net interest income, which is the result of loans and deposits or investments. We are able to grow our revenues in the first quarter year-over-year. We outgrew them last year. So there's things going on. What's not happened in the U.S. that's happened in Japan and some of the European countries, they're actually in the negative interest rate category. Now that's more on the corporate side. I don't think consumers are getting negative rates. We stress our plans for that, but I don't really expect that in the U.S. But I do expect on this low rate environment, margins will stay under pressure. All right. Going once, going twice. Thank you so very much, and thank you to Phoenix for having us here and Scottsdale. We really enjoyed it. Thank you.