First Horizon Corporation (FHN) Earnings Call Transcript & Summary

All right. Well, welcome to our final presenter as a part of our U.S. Regional Bank Leaders Conference. We've saved the best for last. We have First Horizon, and we have their President and CEO, Bryan Jordan; as well as their Head of IR, Ellen Taylor. My name is Brady Gailey. I'm on the equity research side of KBW. And yes, we're excited to have First Horizon with us. First horizon is a $87 billion in asset company. It's a dominant Southeast franchise, headquartered out of Memphis, Tennessee. It's a name that we've liked for a while. We've had an Outperform rating on it, for years. Over the recent years, First Horizon has done two very transformational acquisitions. They did Capital Bank several years back. And then more recently, they acquired IBERIABANK, which they're still kind of in the middle of their -- Iberia is converting later on this year. So Bryan and Ellen, thank you so much for joining us today. For the investors on the line, if you would like to ask a question, please look in the upper right-hand corner, you'll see a link that says, Ask A Question. Please click that and submit your question. I'll see it and I'll read it to First Horizon on your behalf. So Bryan, why don't we start with just 3- to 5-minute overview and update on First Horizon and maybe, specifically, kind of how your markets are reopening post the pandemic?

Sure. Thank you Brady. Thank you for having us. I appreciate the opportunity to join you today, and thank you to the investors for joining us as well. We are excited about how the markets are reopening. I'll talk through to the franchise and then sort of what we expect as the economy reopens. We are, as Brady said, a very strong or dominant southern franchise. We are in 15 of the top 20 of the major MSAs in the south. We have some terrific growth markets in this footprint. We announced this merger of equals with IBERIABANK in November of 2019. The south, our footprint was expected to grow at about 2% or 200 basis points higher on household growth rate than the U.S. as a whole. And given the effects of the pandemic we're seeing, that probably accelerate as you've seen the migration of people, job into low-tax, right to work state, good climate and economies that opened up relatively early in a pandemic environment. The economic recovery is off to a very good start. I spent the last 1 hour to 1.5 hours on the phone with our bankers around the franchise. I do it about every 3 to 5 weeks, and we're seeing really good progress at the economies opening back up. The standard or mode of operation is people are hiring. They're looking for customers to come back in. They're seeing good progress there. As you mentioned, our integration is coming together very nicely. We have done a number of our systems conversion. The major big bang weekend will be on early October, Columbus Day weekend in October. At that point, we will have our systems of the 2 organizations fully combined, all the signs change. When that happens, we'll have about 450 or so locations around the south. We -- as I said, we'll be in 15 of the top 20 MSAs. So we think we're building a very strong franchise. We have very strong specialty finance businesses. We have very strong countercyclical businesses in our fixed income distribution and our mortgage warehouse lending, mortgage origination businesses. And we've got strong pipelines building in our banking business. So I'm optimistic about the franchise and the value it will create over the next couple of years.

All right. Great. So it seems like a lot of First Horizon's markets are recovering pretty quickly. How does this change your view on loan growth, both near-term and then, more importantly, the longer-term kind of loan growth profile of First Horizon?

Yes. At this point, a lot of the loan growth opportunities are moving from one structure to another institution and institution. There's not a lot of absolute growth in the market, at this point. Our loan pipelines today are up probably 60% to 70% from where they were at the beginning of this year, so loan pipelines have picked up. As I went around the franchise earlier this morning, we continue to see strengthening loan pipelines and we will -- we think that the back half of this year momentum will continue to build. There's the obvious frustrations that are driving the lack of loan growth in some ways right now, and I put them in broad categories: One is just sort of an absence of labor supply, the shortage that you hear about in the labor markets. And then secondarily, you've got the transportation woes of sort of a global supply chain opening back up and being able to get products from one place to another. And I heard just in the last few days, I guess, if you take China, for example, the delivery times may be roughly double what they were pre-pandemic. So things like that are impacting growth a little bit. And that injects a little bit of uncertainty. The other variable is, there's a huge amount of cash on borrowers' balance sheet, both consumer and commercial customers and I expect that some of that will get drawn down first. So our view is that loan growth will pick up over the course of this year. We'll have a very good participation in that. And that over the longer term, we'll be able to deliver something in the order of a couple hundred basis points higher than the GDP growth in our footprint, just given the strength of the markets that we're in.

And Bryan, are there any specific geographies or loan types that you see the greatest growth potential?

Well, it's interesting. We're seeing a lot of pickup in equipment finance and asset-based lending are some recent examples. And geography-wise, we're seeing opportunities all across the franchise. Momentum is picking up everywhere, but I'd say Central Alabama has been very strong. Texas, East Texas has been strong. So we're seeing good opportunities, broadly speaking, and all product types look pretty good at this point.

Great. Well, let's move on and talk about, you did 2 notable acquisitions recently: Capital Bank and then IBERIA. Maybe just talk a little bit about your experience with those deals? How they panned out? And how you think those deals have gone for First Horizon?

Yes, I think those 2 transactions have gone very well. And because it was a significant event for us, I also want to mention the acquisition of the 30 branches from Truist/SunTrust. If you take the 3 transactions in general, I would describe in this way, Capital Bank really gave us the opportunity to strengthen our market in the Carolinas, in particular, and also gave us an opportunity to start building out a Florida, mostly South Florida franchise. We had the opportunity in the midst of 2019 to bid on and we're the successful bidder for the 30 SunTrust/Truist branches in the Carolinas, mostly a little bit Virginia, a little bit Georgia. But we really strengthened our position in the Carolinas there. We strengthened our position in Raleigh-Durham-Chapel Hill, the Research Triangle, we strengthened our position in the Triad. And so I think we've got a very strong presence in the Carolinas. Also in late '19, we announced a merger of equals with IBERIABANK. And that opportunity further strengthened South Carolina and gave us a lot of leverage in what we think will be very strong leadership talent over the near term. And it also strengthened our presence in South Florida, Middle and Central Florida. Gave us a great franchise in Florida, Texas, Mississippi, Little Rock. So we think we've got now a southern geographic layout of 11, 12 states that gives us very strong growth opportunities. And when you look at where we can invest capital, if you just run around the franchise, our presence in Dallas, our presence in Houston, our presence in Atlanta, our presence in all the great markets in Florida, Miami, Tampa, Orlando, up through I-85 [ Quarter ] Greenville, Spartanburg, Charlotte, Raleigh-Durham-Chapel Hill, Greensboro, Winston-Salem, Nashville. Not to mention very strong market presence in Tennessee, Louisiana. So we think we've got a foundation, which with -- following these mergers, which will give us the opportunity to deploy a tremendous amount of capital into growing the franchise organic.

Great. One thing for the investors to know when First Horizon announced CBF, they had a saved number, they ended up doing better than that. So the deal was more EPS-accretive. That's been same with IBERIA. Bryan, I think, when you all announced that transaction, you said, "Hey, we're targeting $170 million of cost saves." Now that's up to $200 million. So you continue to make good progress there. But maybe just an update on the conversion is happening, as you said, Columbus Day weekend, do you still feel good about the $200 million of net cost saves? Are there any possibilities to go above and beyond that? Or just maybe an update on how you're feeling about cost saves and if you hit on maybe the opportunity you could have on the revenue side as well?

Yes. Yes. So I feel very, very good about our ability to hit the $200 million in net cost savings. And there's always opportunity. We'll always look for upside. But I think upsizing from the $170 million to the $200 million is showing that we're looking for additional synergies in the merger on the cost savings side. And keep in mind, although those great growth opportunities that I just mentioned also are going to require us to invest capital into those markets. And when I say, invest capital, I'm really thinking about continuing to build out our core banking teams in those markets by hiring talent. And so I want to reallocate some of the excess savings that we're able to generate into these markets to enable us to show the growth in these high demographic growth markets. You've pointed out what I think is one of the real hidden gems in our merger of equals. It was true in our merger with Capital Bank as well. In neither presentation, do we claim any revenue synergies. In the Capital Bank merger, we earned about $30 million of revenue synergies before we stop counting. And I'm very confident that we're going to far exceed that in the merger with Iberia Bank. We're seeing opportunities across the product set that are just tremendous. I mentioned strengthened equipment finance and asset-based lending earlier. First Horizon had an asset-based lending business, IBERIABANK did not. Equipment finance was an IBERIA-based product set. We didn't have that at First Horizon. I was in Texas late last week meeting with some customers and our bankers there. And I met a customer that we had an opportunity where we had a meaningful relationship to do a significant transaction on the asset-based lending side that we wouldn't otherwise have had. It was a legacy IBERIA Bank customer. We've got a legacy customer in Middle Tennessee, where we did an equipment finance transaction. I don't mean to belabor, but the synergy of the product set and the sheer -- the way our teams are working together, I'm very, very confident that our revenue synergies are going to beat the $30 million number that we had in Capital Bank. And I think that's going to prove out to be one of the hidden gems over the next couple of years of this merger of equals.

While we're on the M&A topic, Bryan, IBERIA is close to conversion. You guys clearly have been acquisitive in the past. Maybe just give us an update on how you think about M&A longer term for First Horizon? You guys are -- it won't be that long from now, you'll be $100 billion in asset company. How do you think about which markets you'd like to acquire into? And now that you're a lot bigger, what size institution would be kind of the ideal size from an asset point of view?

Yes. M&A, I think, is a reality of the U.S. banking space, and we've seen a fair amount of it post the sort of wind down of the pandemic, and I think that momentum will continue to build. We don't believe that we have to do anything from an M&A perspective at this point. We think we have adequate size. But we also, as I've said, a number of different times, got a great footprint and a huge number of markets where we can deploy capital organically and continue to show very nice organic growth. To give you sort of an example of that, in the fall of last year, we put together our first 3-year strategic plan for the Board. And we went into it with full knowledge of, it didn't have anything in this 3-year strategic plan around doing M&A or the need to do M&A. And it was a really good discussion and the point that we were really trying to emphasize for ourselves and the Board is: one, you have to be able to deliver a differentiated product set and service. You have to focus on your customer base and you have to deploy capital organically or M&A really doesn't make much sense. And we think we've got great opportunities to do that. And we recognized that you can't win a scale game. There's nobody that's going to catch BofA or JPMorgan. And as such, we believe we have enough scale today to invest in our customer base and our product set in such a way that we can be successful. So we don't feel that we have to do it, and it's not part of our 3-year strategic plan. That said, if the right opportunity came up and it were to fit with us from a geographic perspective leaning towards more of these higher-growth markets that I've talked about a couple of times. And most importantly, you had the same kind of cultural fit that we've had with IBERIABANK, where you have a common strategy about the way you think about your associates, the way you think about your customers and empowering your associates to serve those customers' credit profile, go-to-market strategy, all of those things, then sure, we would look at it, but it's not something that we're sitting around running a game board right now thinking about what are the moving pieces on the chessboard and what we need to get active in. We're thinking about how we make this a highly performing and really valuable product set and delivery for our customers. And so we're thinking about the organic side of the business for today than anything.

Bryan, I'm often asked over the years about would First Horizon ever partner with a much larger in size company. You guys are clearly stayed independent. You've done the 2 acquisitions. But it feels like big bank M&A is picking up here. You guys are in some of the best markets in the nation. How do you think about when is the right time to consider partnering with a larger in size institution?

Yes. Look, we're 157-year-old organization. Abraham Lincoln was President when we were founded. So that question had been asked a bunch of times over the years. We don't have a strategy that says we will or we won't do anything. We generally believe, never say never. That said, we think that if we can continue to deliver and execute on our strategic plans, if we can deploy capital in the business and drive higher returns and create shareholder value, you earned a seat at the table. If you're not doing those things, you have to consider other alternatives. Right now, I think we're doing those things, and I feel good about our ability to continue to do that, particularly given the leverage points that I see in bringing together IBERIABANK and First Horizon.

Right. We do have our first question from the webcast. [Operator Instructions] The first question from the webcast says, with the new President and his new administration in the U.S., has the regulatory environment changed at all?

The regulatory environment tends to swing from time to time. It doesn't feel like the pendulum has fallen far at this point. You still got a tremendous amount of consistency at the major federal regulators. And my sense is that the financial regulators looked at the performance of the financial services industry coming out of the financial crisis. And so we got to make some changes. And on the other extreme, you've had the pandemic, and the financial industry -- financial services industry was a significant asset in terms of working through how we strengthen and rebuild economy. So I expect that we'll get some change over time, particularly, as President Biden has the opportunity to a point of a comptroller and whatever he and his administration is doing with respect to the Fed. Vice-Chair Quarles' term ends sometime this fall. So I expect that there will be some change, but I don't expect a wildly swing -- a wild swing in the pendulum because I think the industry is in a pretty good place. And I think it'll be more fine-tuning around the edges, will be my expectation.

Yes. Yes. So moving on to another topic. In ESG, ESG is a big focus, an increasing focus here in the U.S. It's been a bigger focus in Europe for a while. But maybe just give us an update on kind of what steps you've taken related to ESG and anything that you're planning to do going forward?

Yes. We're spending a lot of time on ESG. Ellen is involved in this as well because it intersects with our investor community as well. Sometimes we lose sight because one of the E, S or G gets accented more than the others at various times. It's 3 very big categories. Governance is largely not an area of focus today, social and environmental are. We -- so to break those down in brief. We're doing a lot of work on the social side. We've been -- we have been for many, many years. We continue to invest in our internal diversity, equity, and inclusion efforts. We hired a new Chief Diversity, Equity, and Inclusion Officer in the fall, November of last year. Dr. Anthony Hood is doing a fantastic job. In fact, he and I talked earlier this morning. We're making good progress there in our efforts to create an environment where: one, we reflect our communities; and two, every associate has an opportunity to excel. But it's also got another side, which is we're doing a lot of work to make sure that our product set, our services our investments are strengthening the entire economic fabric of the communities that we serve. So we're very focused on how minority businesses get funded? How we provide support and training and mentoring to make sure that they're successful for long term. And then on the consumer side, make sure that our product set using basically the tools of the bank-owned product set to make sure that we bring more customers into the banking system. The environmental side, is getting a tremendous amount of focus and if you -- it's a bit of a blinding glimpse of the obvious. If you look at the carbon footprint of the financial services industry, it's a fairly infinitesimal footprint. But if you look at the carbon footprint that we interact with, it's a fairly significant, almost all of the carbon footprint, we as an industry, and we're part of that. It's a complex journey, in our view, to go from the carbon-based economy that we have today and think about, okay, how do we transition over time. So we're trying to be thoughtful about how we work with our customers and our communities to work on these issues. We're evaluating very thoughtfully where we have exposures in our portfolios to whether it's rising sea levels or carbon producers. So broadly speaking -- so we're trying to intersect all of those things together recognizing that we're not going to flip a switch and go from where we are today to a zero-carbon emissions economy. But we have to work with our customers and our bankers to go through a process. So we're in the formative stages. We have put out a CSR report. I think the last version was the fall of 2019, around December or so of 2019. I expect that sometime in the next month or so, we'll put out an updated corporate responsibility report, which will further detail the work we're doing on really all of the ESG topics.

Okay. Great. Great. Let's move on next to First Horizon's kind of natural asset sensitivity. One of the unfortunate thing with the pandemic is, rates are back at 0, which has not been friendly to the First Horizon spread income or net interest margin. But maybe just talk about kind of the outlook for spread income and NIM, and just longer term, at some point, we're going to see higher rates come here in the U.S. and it's -- at least I expect First Horizon to be a pretty big beneficiary of that.

Yes. I'm a believer that we're going to see higher rates sooner than later, and that's an answer to a different question. So I'll get into that. I don't think it will be '23 before Fed funds start going up. And I think the yield curve will start to steepen before that. All of that said, you're absolutely right. Net interest margin has been depressed. And in some ways, it's difficult to even estimate just given the sheer amount of excess cash that is in the system, our balance sheet as well as the financial services industry. The amount of excess cash sitting at the Fed is huge. I checked it this morning. I check about every day. Our reserve requirement given day runs from $750 million to $1 billion. We had just under $12.5 billion sitting at the Fed last night. So at 10 basis points, that's going to bring your margin down some. We're not overly stressed or focused about the net interest margin. We're more focused on how we manage net interest income. And so as we look at our balance sheet and this performance, we think given that excess cash could fluctuate up and down, the core will largely bounce around where it is until rates start to pick up. We are positioned for longer rates. We have not taken a significant amount of excess cash and pushed it into our securities portfolio that perform well in the long term, particularly if the curve starts to steepen and rates do move up. We are using a little bit of fixed rate exposure to serve customers in our lending portfolio but that makes sense given the opportunities we have with those customers. I think given our positioning, we will see very strong movement in our net interest income. We'll have a little bit of offset in all likelihood in our mortgage and our mortgage warehouse finance business or what lending businesses slightly offset that. But I also think the other thing that will happen in this, given the significant amount of excess cash that's in the system and unlikely to come out until the Fed starts shrinking its balance sheet. I think you'll see greater than historical lag in deposit rates as the industry -- as rates start to move up. And you'll remember when the rates started moving, coming out of the great financial crisis cycle, there was a fair amount of lag in deposit rates. I think that will exist for a while, too, because there's just so much cash sitting in the system.

Yes. And Bryan, I mean, you mentioned my next question. First Horizon has over $10 billion in excess liquidity earning basically zero. I mean that's a huge lever to pull when you guys feel it's appropriate to put those funds into a higher earning asset. Is that -- it doesn't sound like right now is the right time because rates are so low, but how do you think about when is the right time to begin deploying those funds into something earning higher than zero?

Yes. Our thought process is, if we can use any of these excess funds to put it into customer relationships, we're willing to do that today. And we're looking at even where we can use duration and fixed rates to put it into customer relationships. I mentioned the mortgage product as an example. So we'll always look to deploy capital against the customer base, and that's why we're excited about seeing the pipelines picking up as much as we have so far this year and likely continuing to build. The securities portfolio is one that we try to manage to really provide liquidity, balance our interest rate sensitivity and then provide a collateral for borrowings. And so we might move it up a little bit or a little bit down. But I don't think, Brady, we're going to see any significant change in the size of our security portfolio. In our view, betting on interest rates and the direction of interest rates is something that we have to do, but placing bets in the securities portfolio doesn't create a lot of value for our shareholders in our view. If our investors want exposure to fixed rate, they can do it with a bond fund, they don't need to take equity risk in a bank to do it. And so we'll manage that portfolio to do those 3 things: liquidity, collateral and interest rate sensitivity. And it will ebb and flow a little bit. But at the end of the day, we want to deploy cash and this excess funds in the customers.

So First Horizon has 2 unique businesses. You've hit on the mortgage warehouse business, which has been great. You guys have -- you have been growing market share there. And obviously, with the low mortgage rates that's been a great thing for that business. You also have the fixed income business, which has also been a great business recently. Both of those businesses are countercyclical businesses. So they help First Horizon when rates are low. But maybe longer term, do you expect to continue to grow out the mortgage warehouse longer-term and continue to take share? And then, also just your feelings on the fixed income business longer-term and what that could look like as rates drift higher?

Yes. Both of those businesses as you've described have been really good for us, and they've been countercyclical. They've offset a lot of the decline that we would have otherwise seen in net interest income, like many of our peers. Also, what they do is they give us more stable base and through all cycles, we should continue to provide higher relative ROTCEs than many of our peers and they provide that stability. As rates start to rise, clearly, the mortgage business will continue to slow down. Our volumes have been lower this quarter. Part of that is the seasonality coming out of the first quarter. But there's a fairly significant decline in refinance activity. Our purchase money mortgages are up. They're offsetting that a little bit. But that's not to be unexpected given the sheer level of refinance activity that comes with a 10-year rate that was under 1% for a fair amount of 2020. So that business will continue to ebb and flow, and I think, normalized. We think there are opportunities, however, for us to pick up share in that. And our bankers, led by Bob Garrett are doing a really nice job thinking about how they partner with customers to pick up bigger portions of their outstanding. Many of them will have 2 or 3 warehouse lines. So we're working very hard to pick up additional share. Our fixed income business is a distribution business. It's a business that we've been in for a long time and has been very, very strong business for us over the years. Even in the worst parts of the cycle, we produced low double-digit returns in periods like we've seen over the last year, 1.5 years. We've seen very strong ROTCEs in that business. We think that it will stabilize as fairly slowly over the course of the next several quarters. We expect our average daily revenue to be down a little bit this quarter from a very high first quarter. Part of that is just sort of the normalizing in the market. So I'd expect somewhere around $1.5 million area on average daily revenue this quarter given what we're seeing so far. I think it will be strong business over the course of the remainder of the year. Part of it is what you have talked about a little bit. There's just so much liquidity in the system. And debt continues to get refinanced and mortgages repaid and banks have a lot of cash. That money gets reinvested back into portfolios, that drives a lot of the activity force in the fixed income business. And there's a still a fair amount of issuance. We've seen very good opportunities in the -- easy for me to say, municipal finance business. We're picking up great opportunities there. We've built out a really good team in a targeted way that's given us great opportunities. Our Coastal Securities business, which we acquired about 3, 4 years ago, it all kind of runs together now. And the SBA securitization business is doing very nicely. So we think that business will continue to be good for the remainder of this year and probably into next year.

Okay. Great. Well, let's move on and talk about credit quality. It's -- everybody flipped out early on in the pandemic, and it feels a little bit like a head fake because we just haven't seen any losses materialize. But how are you thinking about credit quality? Do you think that we're going to see some noise coming out of the cycle? And then First Horizon's reserve is over 2% ex PPP, that's a fairly elevated level there.

Yes. We have very strong reserves and I empathize with all the modelers and the accountants that had to go through all the twisting and turning to comply with CECL and figure out that it didn't have any more value than anybody thought it was going to have. It's just sort of a procyclical accounting model. We've got very strong reserves. I expect that, as you said, north of 2%, it will continue to come down as the economy continues to strengthen. Our credit performance even in a relatively benign environment, given the Fed, the Congress and the administration, either their fiscal or monetary policy mitigating a lot of the downside in the pandemic. Our credit performance in that cycle on a relative basis was better than most. And we're not terribly surprised at that. People went into the pandemic trying to project the great financial crisis performance on our balance sheet. And we knew for a lot of reasons, Capital Bank and IBERIABANK would be a big part of it. And then, there was a tremendous amount of work that was done by our credit teams and our bankers over the intervening, call it, 12 or 13 years, from the great financial crisis to today, to really reorient our portfolios. We expected to have very strong credit performance. And I think if I remember the number right off top of my head, it was something like 6 basis points of credit losses last quarter. And I expect that our credit performance, credit strength will continue given the way we approach it and likely to see those reserves continue to come on down.

Great. And Bryan, we did have another question from our webcast. It says, bigger picture, where is First Horizon looking to invest across its franchise, whether it's people, products, et cetera?

Yes. Right now, the big investment we're making is in people. I've seen great activity across our bank. I was in Houston, Thursday and Friday of last week. A number of very strong people that we're recruiting into the franchise there. We've had very good progress in Atlanta. I mentioned these high-growth markets. Middle Tennessee, we're seeing very strong recruiting efforts there. So we're looking to recruit people into these higher growth markets. We will look at the product set later. In the midst of an integration is not the time to change your product mix a whole lot. We'll get beyond integration. And with that, we'll continue to invest in the product set, particularly around enhancing the ability to do business with us in alternative ways, particularly for our commercial small business, business banking customers and our consumers. So the big effort that may be product, that maybe technology. But at the end of the day, we're looking at making sure that the customers can bank with us as many ways as they choose. But in simplest fashion, clearly, the pandemic accelerated the long-term trend and doing more things electronically. And then the final product area that I would mention is clearly a product area, but it's heavily embedded with technology, is the whole treasury management product suite. That's an integral part of our commercial relationships, the ability to provide information and make it easier for our customers on the commercial side to do businesses in area where we think we will continue to make significant investments in the product set and the technology around it.

And Bryan, I saw one of your investor slides recently talking about what you guys have going on in the fintech space. I think you've maybe partnered with a fintech company, and that I think you guys have your own fintech [indiscernible] maybe just give us an update on kind of how -- what role fintech is playing for First Horizon right now?

Yes. We have invested very heavily in the partnership with Canopy. I think we're the second largest bank investor in that. Canopy is a bank-oriented fund to invest in bank-oriented technology. We have a group we've put together that reports to Anthony Restel and our technology and operations organization. Anthony is our Chief Operating Officer. To look at technology and fintech in terms of how we think about changing the business. We invested in the Canopy Fund, and we continue to make these investments because we believe that the technology around financial services will continue to evolve. That by participating in these funds, we have seen a tremendous amount of value and the sheer number of learnings we get just from talking to the potential companies that Canopy is evaluating. So we learn about how they're approaching the market, how they're seeing things. So it's been a very strong educational process. And what we've done is, we've come back with a number of these partner companies and incorporated them into the work that we're doing. They've become part of our foundation in terms of our technology infrastructure. At the end of the day, we believe that fintech partnerships are likely to be the way you provide the best and most flexible product set for your customer base and then trying to build it internally is wholly unproductive and very costly. So we're looking at these partnerships and these investments as a way to strengthen our technology and create the push and the pull between what customers are asking for. And at the other end, what technology is able to bring. So let that meet in the middle.

Yes. Great. Well, with that, we're actually a couple of minutes past our allocated time. So for the investors who joined in, thanks so much for joining us. First Horizon, like I said, we have an Outperform rating on it. We like the stock. It was actually our best idea headed into 2021, and the stock's up 50% year-to-date, and it's still cheap. It trades at $185, the tangible, 11.2x 2022 and 11.7x 2023, with over a 3% dividend yield. So I'll recommend investors own First horizon. Bryan, Ellen, thank you so much for your time today, and we hope to see you in person sometime soon.

Sounds good. Thanks, Brady. Thanks, everybody.