Ameriprise Financial (AMP) Q2 2026 earnings call transcript

I will now turn the call over to Stephanie Raby. Stephanie, you may begin. Welcome to AmeriPrice Financial's second quarter earnings call. On the call with me today are Jim Cretciolo, chairman and CEO and Walter Berman, chief financial officer. Following Mary Marks, we'd be happy to take your questions.

Turning to our earnings presentation materials that are available on our website, on slide two, you will see a discussion of forward-looking statements. Specifically during the call, you'll hear references to various non-GAP financial measures, which we believe provide insight into our company's operations. Reconciliation of non-GAP numbers to their respective GAP numbers can be found in today's materials and on our website at ir. meriprise. com.

Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties.

A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our second-quarter 26 earnings release, our 2025 annual report to shareholders, and our 2025 10K report. We make no obligation to publicly update or revise these forward-looking statements. On slide three, you see our GAP financial results at the top of the page for the second-quarter. Below that, you see our adjusted operating results, which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis.

Many of the comments that management makes on the call today will focus on adjusted operating results.

And with that, I'll turn it over to Jim. Good morning, and thanks for joining our earnings call. A merit prize to live at another great quarter, thanks to the strength of our team and the firm, our complementary businesses and the way we engage clients. We're performing well in a positive but dynamic market environment. That includes the impact of rates, inflation and geopolitical volatility more broadly.

And we're all seeing AI in the headlines a lot more these days. Markets move, rates change, and technology is always evolving. But the need for our trusted advice, strong solutions and service is only increasing in a world that is getting more complex. And that's why I feel so good about the business. As you saw, our financial performance continues to be excellent.

Revenues grew 13% to nearly $5 billion, driven by strong asset growth and client-advisor engagement. And with delivering that level of revenue in a nice mix of fee, transaction, and spread-based business. Adjusted operating earnings were up 14% to $1 billion. A continuation of our consistently strong performance as we maintain attractive margins and continue to invest in new product solutions, technology, and service.

And EPS was up strongly, increasing 22% to $11.07 as we consistently demonstrate strong operating earnings growth and exceptional return to shareholders that is consistently differentiated across financial services. A Meriprise ROE is another powerful advantage. Our return on equity remains best in class at 55%, up from 51.5% a year ago. We also hit a new milestone in assets on the management and administration and advisements was grew to $1.8 trillion, a 14% increase.

What you see in our results is the benefit of the way a Meriprise has built. We consistently deliver strong results, invest strategically while building a client-centric business that performs very well over time. Speaking of client-centric, the Meriprise client and visor value proposition continues to be a real differentiator. We consistently earn excellent client satisfaction of 4.9 out of 5 along with meaningful external recognition.

Investors want help making decisions with confidence. And that's what our advisors excel at every day. Our experience drives deeper client relationships and higher visor productivity over time. These fundamentals matter and they help drive our strong metrics in the quarter. Total client assets increase 15% to $1.2 trillion driven by market appreciation and cumulative net inflows. And organic flows continue to be good understanding that overall flows in the quarter will impact the by higher seasonal tax payments as well as advisor transitions in the quarter including Co-America.

Wrap assets reached a new record up 19% to $732 billion reflecting market appreciation, strong client engagement and the value of our advice experience. The launch of our signature wealth unified managed account has been a fastest growing platform launch and we continue to add capabilities including SMAs. Transactional activity also increased up 13% which is excellent.

We invest significantly in industry leading technology and support to help our advisors succeed. A Meriprize of visor productivity continues to increase nicely and reach the new record up 12% to $1.2 million supported by our excellent client experience and a visor partnership. And the bank represents another growth opportunity assets now exceed 25 billion up 6%. Lending growth was very strong up 61% year over year driven by pledge and mortgages.

With the introduction of HELOCs and checking accounts we're giving advisors more ways to serve client needs and bring assets to the firm. We've seen a good response to our recent bank and certificate promotions and we know from our early results that practices using our banking solutions managed nearly 10% more assets. In recruiting we're bringing in good experienced advisors with another 79 joining during the quarter.

We're attracting advisors who want to deliver a strong advice based experience to be part of our terrific culture and grow. Our excellent technology and JD Power award winning service is a big part of the draw. Many of the advisors who join us feel underserved elsewhere and were frustrated with their tech service and responsiveness. At a merit prize they see an integrated platform built around the way they want to work and serve clients.

We're selected about who we bring in and that discipline matters. It supports stronger long-term productivity and cultural alignment and a more attractive economic outcome over time. In regard to our AFIG institutional business we're on target to onboard Huntington Bank which will bring in good assets beginning in the latter part of the year. Their advisors are excited to join us and we're also adding other institutions along the way.

Advisor productivity is adding new record and we're focused on continuing our journey. A merit prize invests significantly every year to help drive our advisor's success with a clear focus on client engagement, advisor growth and operating efficiency. We have a very strong technology platform in place that is seamless, secure and has excellent availability and scalability essential during volatile markets and environments.

We know that rapid advances in AI are reshaping expectations for what a premium client and advisor experience should be. With regard to AI we continue to advance our efforts here building on years of investment and innovation to help advisors grow, operate more efficiently and deliver more personalized client advice. We anticipated these shifts and invested accordingly building an interconnected technology ecosystem that brings together data systems and automation.

That foundation allows us to innovate faster and bring new capabilities to advisors and ways that fit seamlessly into how they work. Our AI is providing many benefits to advisors that include accelerating practice growth using AI insights that identify growth opportunities and strengthen client relationships. The initial results show that advisors using the firm's insights capabilities are seeing a nice increase in client engagement and productivity.

We're also helping advisors operate more efficiently to simplify everyday tasks, streamline workflows and administrative tasks so if eyes have more time to serve clients, grow their businesses and deliver advice. For example, on average, e-meeting automation saves advisors 10 to 20 hours per week. Meeting summarization helps give back five to 10 hours per week and co-pala premium saves another two and a half hours per week.

So practices using these three solutions can go on in more than 30 hours per week in productivity saves. And we're betting AI across the advisor experience to help advisors reduce friction, scale their practices and deliver more personalized advice while keeping relationships at the center of everything we do. Our efforts are being recognized. The merit prize once again earned the bank insurance and the Securities Association Technology and Innovation Award for 2026.

Within wealth management, we're also seeing good momentum in the retirement and production solution business. Sales was strong again, up 20% in the quarter led by structured products, VUL and variable annuities without living benefit riders. We continue to see good demand for solutions that address our client's income and protection needs. The team is disciplined about having the right products to generate good client benefits and consistently earns good profitable returns for us. Our books are high quality and they generate good free cash flow.

Our margins and returns are also excellent. It's another example of the earnings diversity and free cash flow generation across our price. We take the same thoughtful approach in asset management where the team is executing well and focused on driving strong performance, profitable flows and enhanced efficiency. Assets on the management and advisement increase 10% year over year to $759 billion.

Investment performance remains a key strength. 69% of our funds are above the meeting for one year, 75% of our funds above the meeting for three and five year periods and across 10 year period, that increases to 87%. We also have 97 Columbia thread needle funds globally earning four or five star ratings from Morningstar. In terms of total flows, total net outflows improved to $6.5 billion driven by higher growth sales in both North America and EMEA. From North America retail, our equity flow rate is ahead of active peers, although it was still a bit behind our peers and flow rate and fixed income, recognizing we have good products given us strong performance including in taxable bond.

We're gaining traction in active ETFs as we continue to build out our product line. In fact, last week we launched two new active premium income ETF strategies and our SMAs and models continue to gain good traction and growth where we're a top 10 provider. Gross and net sales are up across a number of key partners and channels including a merit prize.

I also mentioned that a strong contributed to the increase of gross sales at Columbia thread needle is coming from our signature wealth program. And another real highlight is Selikman. We have strong asset growth and flows across their mutual fund strategies as well as technology and healthcare hedge funds. In addition, we'll also see a nice growth in our EMEA real estate portfolios as we further build out the real estate business.

EMEA is also showing improvement in net flows with an increase in gross sales, though the environment across Europe has been a bit more volatile based on impacts of geopolitical events. We've also recently launched three active ETFs in the EMEA region. And in institutional, we're in outflows in the quarter, but our one not funded pipeline is in solid shape including traction in Asia Pacific.

In terms of transformation and asset management, the completion of our back offices on track to be finalized at the end of the third quarter, which is a real positive that will bring further efficiency and savings. We continue to invest across the asset management business and new products, AI, and other technology enhancements as we continue to manage expense as well.

In fact, this applies across the firm. We remain focused on transformation for growth and identifying opportunities where we can invest, simplify, and improve efficiency. That helps us deliver strong margins in a very competitive industry. Stepping back, a merit prize is in an excellent position. What sets a merit prize apart is the combination of everything we offer backed by a highly talented and dedicated team. We have a business that generates one of the highest ROEs returns that you can see and expect on an ongoing basis.

And our firm wide margin is excellent. We're always investing in capabilities that make the firm more competitive over time and build long-term value. A merit prize is well positioned to navigate a changing environment and do well. We continue to earn important recognition in the marketplace. In 2026, we have been named one of America's most innovative companies from Fortune.

Newsweek's most trustworthy companies in America, the Forbes Global 2000 list, and the America's best companies by time. Why do I mention recognition? It's because of the type of business that we have and the way we work with clients. Reputation is everything in this business. And ours has stood the test of time.

With that, I'll ask Walton provide additional call on our financials, and then we'll take your questions. Walton? Thank you, Jim.

A merit prize continues to deliver strong financial results in the quarter with adjusted operating earnings per share up 22% to $11.07. These results reflect the strength of our diversified earnings profile and the operating leverage embedded in our business as well as the return from the significant investments we continue to make.

Our ability to generate attractive growth and margins across cycles underscores the durability of our platform and the discipline we bring to execution.

Total assets on the management, administration, and advisement increase 14% to $1.8 trillion, which coupled with strong client engagement drove a 13% increase in revenues to $4.9 billion.

General and administrative expenses increase 5% to $982 million driven by volume-related expenses, continued investment for growth, and higher compensation expense, and a settlement technology strategy team from asset growth and performance. Adjusted operating earnings increase 14%, and our pre-tax adjusted operating margin will remain strong at 27%. In the quarter, we return 91% of operating earnings to shareholders through share repurchases and dividends, including opportunistically repurchasing 1.7 million shares at an average price of $459.

Our balance rate remains exceptionally strong with 2.1 billion of excess capital and 2.8 billion of holding company available liquidity.

We are positioned well whether the environment remains risk on or we see a pivot to risk off. Our diversified model enables us to continue creating value for clients, advisors, and shareholders.

Let's turn to wealth management financials on slide six. Adjusted operating net revenues increase 16% to 3.2 billion driven by asset growth and transactional activity growth across a solution-driven model.

Adjusted operating expenses in the quarter increase 16% with distribution expenses up 18%. I will note that a bar is a compensation with been distribution expenses increased in line with revenues of Pfizer's genera.

Consistent with our expectations, G&A expenses increase 6% primarily driven by volume and growth-related expenses, including bank expansion, AI transformation, and automation initiatives. Moreover, these investments will further enhance the client and advisor experience, helping to ensure that a merit prize remains a preferred destination for both advisors and clients. For the full year, we expect general and administrative expenses to increase in the mid-single-digit range.

Pre-tax adjusted operating earnings increase 16% to $939 million with continued strong contribution from both core and cash earnings. In addition, our operating results highlight the strength of our underlying operating performance.

Our core earnings grew in a low 30% range benefiting from higher client assets and advisory fees, as well as strong transactional activity levels. The strong core earnings that we generate is unique relative to other wealth managers and demonstrates our focus on balancing growth and sustainable profitability across all aspects of our business model.

We have clearly demonstrated continued, excellent, and consistent financial results despite some of the slower quarters of flows, giving we are competing in a highly irrational environment and the impact of Comerico, as well as the elevated tax impacts. While our peers are more heavily reliant on cash earnings, we believe we are in a stronger position given our balanced earnings mix.

Bank earnings grew in the low single-digit percentage range in the quarter, consistent with our expectations, while certificate earnings declined given the shift in client preferences to other products on our platform. In total, cash earnings were essentially flat from a year ago.

We continued to take actions to build the bank portfolio in a way that supports a strong earnings contribution going forward.

The overall bank has a yield of 4.7% with a 4.2-year duration. The investment portfolio is now only 6% floating rate securities. In the quarter, new purchases at the bank were 1.1 billion at a yield of 5.2% with a 4.5-year duration. Last, our aggregate margins remain excellent at 29%, as we manage expenses well relative to our revenues with the significant contribution from our core business.

Let's turn to slide seven, a vise of love management generated solid asset growth in the quarter. Total client assets grew 15% or 164 billion to 1.2 trillion and rap assets increased 19%, or 116 billion to 732 billion, driven by solid organic growth, strong advisor productivity, and equity market appreciation.

These results reflect our ongoing investment to enhance and automate advisor workflows, as well as develop insights to meet client needs.

This allows the buyers to spend less time on administrative tasks and more time cultivating client relationships. Client flows with 3.1 billion and rap flows with 6.9 billion, reflecting a substantial acceleration of co-merit determinations exacerbated by the elevated tax payments in the quarter.

On a normalized basis, our flows improve significantly sequentially, while our flows are below our normal historic range. They are within our expectations in light of the extremely aggressive recruiting environment, which is impacting inorganic activity.

Building off our stable organic growth trends, we have selectively adjusted our programs to grow in organically net new assets to generate profitability in both a risk on or risk off environment to improve our trajectory going forward. In the quarter, we added 79 experience of biases, a testament to the continued strength of our advisor value proposition, saying that many of the recruiting deals we are seeing today in this perceived risk on environment exceed what we believe is a balanced risk return approach, given the long cash paybacks and the marginal profitability benefits over the extended life of these arrangements.

We will continue to evaluate the facts and circumstances to assess the trade-offs between sustained profitability versus flows and associated risk. This approach will ensure decisions are driving sustained shareholder value creation.

As we look ahead, it should be noted that outflows relating to comerical will culminate with the completion of the contract and conversion in September.

The addition of hunting a bank is anticipated in the fourth quarter and will bring approximately 260 advisors and 28 billion of client assets onto our platform. This will more than offset the impact of comerical while the assets will move to our platform in the fourth quarter and in early 2027. We will benefit from the economics of the full book beginning in the fourth quarter.

We continue to actively engage additional financial institutions in partnership discussions and have the capacity to grow this platform. Separately, we are continuing to invest in our advisor's succession strategies for both internal and external advisors, including expanding and leveraging a merit prize personal wealth group, our centralized advisor group as a potential succession option.

Turning to cash, our total client cash of 84 billion was down 2% year over year. Bank assets increased 6% year over year to 25.5 billion with the bank representing an increasing source of earnings going forward. Cash rebalances was stable at 28.8 billion compared to 29.4 billion in the prior quarter, which is consistent with the seasonal tax pattern we would expect to see.

Certificate balances declined to 7.4 billion given the current rate environment and client preferences. We continue to have elevated cash balances in this third-party money market funds at 46.6 billion. This remains an important opportunity when rates decline to see these cash balances deployed into other products on the platform.

Let's turn to slide eight. A vise and wealth management generated solid productivity growth. Adjusted operating net revenues increased 16% to 3.2 billion. The core wealth business is performing well given the value of a planning model and the multiple touch points we have with clients to meet their needs holistically.

Our fee-based and transactional revenues remain quite strong, increasing 18%, benefiting from growth in client assets and higher activity levels. Specifically, transaction activity remains strong. Increasing 13% compared to the prior year. This is primarily from increased sales and annuity products and broker transactions.

I will note that a bank revenues increased in the mid-single-digit percentage range from business growth, including the expansion of a lending products while revenues from cash suite and certificates declined, particularly as clients repositioned from term products into other offerings on our platform.

Our visor productivity continues to grow reaching a new high of 1.2 million, of 12% year-over-year driven by strong growth and rap assets and related fees, as well as enhancements to a visor efficiency from the integrated tools, technology and support we provide.

We have demonstrated sustained visor productivity growth of 10% annually over the past five years. Turning to asset management on slide dying, financial results were strong in the quarter. Pre-tax adjusted operating earnings increased 23% to 274 million. Results reflected asset growth, excellent growth and performance in Selchman and the positive impact from transformation initiatives.

Total assets on the management advisement increased to 759 billion, up 10% year-over-year from higher-ending market levels. As Jim mentioned, net outflows improved in the quarter, most notably with strong and improved performance in our US intermediary challenge. Reviews increased 14% to 947 million and the underlying fee rate remained stable at approximately 47 basis points.

Expenses increased 11% in total. In the quarter, general and administrative expenses were up 9% driven by higher-compensation expense in our Selchman technology strategy team from AUM growth and performance, volume-related expenses and unfavorable foreign exchange impact. For the full year, we expect general and administrative expenses to be flat, excluding Selchman and other performance which is above last year of 39% and our target range of 35% to 39%.

Let's turn to slide 10. Retire and protection solutions continue to deliver strong earnings and free cash flow generation, reflecting the high quality of the business that we built over a long period of time. Adjusted operating revenues increased 4% to $975 million.

Pre-tax adjusted operating earnings with $202 million, consistent or for a target range over time. Results are lower than last year driven by continued variable newbie net outflows as well as higher distribution expenses associated with higher sales. Profitability of this business remains excellent at a 21% margin.

Turning to the balance sheet on slide 11. Balance sheet fundamentals and free cash flow generation remain strong, which is core to our ability to invest for growth on a sustainable basis while also continuing to return capital to shareholders. Our return end equities are best in class at 55%. We have an excellent excess capital position of $2.1 billion.

We have $2.8 billion of available equity at the holding company. Our assets and liabilities are well matched and our investment portfolio is diversified in high quality. Our discipline capital return is a key element of our ability to consistently generate strong long-term shareholder value. In the quarter, we return 932 million of capital to shareholders, which was 91% of operating earnings.

We have increased capital return by 25% in the first half of 26 to $1.9 billion. This included re-personing 3.3 million shares at an average price of $467 compared to 2.3 million shares at an average price of $507 in the first half of 25, 43% more shares. These actions are a demonstration of the confidence we have in our continued free cash flow generation and commitment to return capital to shareholders. As we go through 26, a strong foundation coupled with our ERM capabilities and decision-y framework positioned us well to continue investing for growth in a targeted way and return capital to shareholders at a differentiated pace.

In summary, on slide 12, a merit prize delivered sole results in the second quarter consistent with our longer-term trend. Over the last 12 months, revenues grew 10%, adjusted EPS increased 15%, return on equity grew 260 basis points and we return 3.8 billion of capital to shareholders.

We had similar growth trends over the past five years with 9% compounded annual revenue growth, 17% compounded annual EPS growth, return on equity improving 10% points and we return $14 billion of capital to shareholders. These trends are consistent over the long term as well. So in closing, we have an excellent foundation and capacity moving forward that enables consistent and sustained profitable growth.

With that, we will take your questions.

Thanks. Well, as we indicated, at the end of the third quarter, it will be $19 billion approximately exiting. We really have not, for based on the client disclosed the element, but it did accelerate significantly in the second quarter versus the first quarter. And it inducted basically our re-organic activity, but we really don't get into the scores in the amounts based on the client situation, but you'll see $19 billion total be out by the end of the third quarter.

Of course. Yes, of course. Of course, it's happening as a visors are leaving, we're seeing we saw results in the first quarter, we saw that result significantly increase in the second quarter, and then the rest will go out in the third quarter.

Is it possible to get an update versus that, I think it was 18 and a half or? Well, that's the quarter, you know.

It's again, divulging what's happening at a third-party client that we have, by giving what's left is basically saying what's leaving, and we've chosen not to do that.

And what are the sort of mile markers that you're watching when we think about that? So I think what we see is still, you know, some of the deals that we're seeing, I mean, the paybacks are as eight years on cash basis, which is crazy, because some of them have gotten really aggressive.

Even advisors are looking at it, knowing that someone's gonna pull the wool out from what they get and how it's gonna materialize. I would say we find that we are attracting people because when they come to us, when they join, or even when they look at what we have, the service, the technology, the support, they actually say it's not very good for where they are.

And, you know, I know there's a lot of promises and a lot of statements out there, but the reality of the people joining us are very clear about what it is. I just spoke to the recruit and said, there technology is five years behind what ours is. Another one said, you know, the lack of responsiveness and service.

You know, so there's a whole bunch of reasons. I think, optically, people are looking at checks, but when you look and take into account the productivity growth, the support, the servicing, how they can operate, the economics in the end come out really in our favor. Having said that, it's a discussion you really have to have for people to kick the ties in the right way.

But the promise is out there with the, and what's up front is probably different than the reality. So what we see is hopefully over time, people will understand that better. And maybe as the market changes a bit, there might be more pressure there. In our case, we feel very good about what we do and how we do it. And that's why we continue to generate very good profit and earnings and growth across the whole course. So, you know, optically, I know people like to see NAA from this type of activity, but I think you got to look through what the benefits truly are and whether that changes in different market environments. So that's the way we're thinking of it.

And we feel very good about it. But I clearly would say that our service, our support, our technology, our capabilities, the leadership we provide, the training, is what differentiates us.

Okay, so on the statutory earnings, well, I don't have the exact number on that, but I will tell you, statutory earnings will support what are expected dividends coming from the RPS. So there'll be no denigration of that cash flow.

And we'll get you to that number. And from the standpoint of supporting, yes, as we said, we certainly have the excess capital and the free cash flow generation. And we will stay in that 85-90 range. And as we were in this quarter, it would be optimistic as we see opportunities to balance that shareholder value. And, but yes, certainly is doable from that standpoint.

Okay.

Obviously, there's a component of interest in there, but looking at the bank with net interest income generation, we feel very good about that. And it's positive nature as we go through 2026. And certainly, as we're seeing in core, we are certainly generating with a good revenue growth and a very focused expense management with investing in the business. So yes, that is certainly sustainable from that standpoint.

Again, markets play a role in that. And then you mentioned, I think asset management, and that is obviously we're above our range, but that range is driven by transformation and the market. And certainly, as this continues, we believe that will be sustainable also. Again, market is a factor.

If I understand your question, I think you're saying the contribution AI is making towards our market, is that, because you broke up there for a minute. Yeah, we didn't understand what you... Is that the essence of your question?

More so on how it's impacting advisor productivity, and if advisor productivity can continue kind of accelerating? Yes, so as we introduce these various tools and capabilities, as an example, our eating capability and putting together for clients, how they can operate with their engagement with clients and their meetings, et cetera, advises uptake that. So we have about 6,000 advisors utilizing that already, and they're seeing really good improvements in their time and their activities and the engagement and the conversations they could have. So as we introduce these tools and they embed them in their practice, we are seeing those types of things of freeing up time and activity and improving. We introduced even more informed insights.

And so when the advisors use those insights, we see in better engagement and better productivity increase. Now, of course, advisors have to embed this in the way they operate. And so it's always sort of an introduction and a learning curve, but as they take them on and change how they process, we are definitely seeing those nice improvements. And I think that it's gonna really continue because it's really an adoption curve that occurs, and we continue to introduce more and more. Some of that's already embedded in the tools, but at the same time, advisors have to more utilize the capability more fully.

And that's what they're up taking. So there's always that learning curve, of course, 10,000 advisors, but more and more are doing like e-meeting summarizations. They're actually up taking that nice and they're seeing nice benefits from it. So yes, I think that will be something that will add to the productivity of freeing up their time and energy and hopefully engaging clients even more deeply.

And you're talking about the client flows? Yes, as I indicated, certainly we are seeing acceleration in Comerica. It really did accelerate versus the first quarter and that is impacting that. Plus, as we indicated, the tax situation did also. But as I indicated, it's we feel very good about organic, basically flows.

And then what are the merit prizes opportunities to promote Columbia through a needle within the A&WN book? Are there ways to incentivize clients to choose Columbia funds such as lower fees or other ways to incentivize those flows into the products here? Thanks. No, we don't. Every product we put from all investment firms is on a consistent level of compensation and relationship to that.

Different products have different fee levels based on their asset expense fees and other things. So ETFs are low at an act of funds and various things like that. And some are a little different just like you see. And I share versus another provider. But what I would say is that Columbia has a good opportunity and we see a nice increase in the sales activity in Columbia as they introduce their SMAs, their ETFs. We also see a nice take up in the Signature Wealth platform where they have the ability to actually work through the advisory part of that program very well as other providers have. So we have seen a nice pickup and we think that will continue.

If I look at the 6.9 billion or Brat flows in the quarter, does that include, that does include the Comerica related outflows or is that excluding the Comerica related outflows? Tom, that was impacted by also the outflows on Columbia up from low Comerica, excuse me.

So Walter, to get to a core number that we can expect after this outboarding is done, we should be adding something back because you're seeing it like, and you said it was accelerated. So, you know, I'll just pick a number out of the air. If it's four or five billion, that's the number that you would expect to be more trendable when we think about how this looks after 3Q. Is that a reasonable way to think about it? Well, not to give a note, because I said, yes, it is accelerated.

I'm not using your number, but it did accelerate significantly. And as we look at it, yes, in this environment, as we indicated, what we historically have seen is really just not in the best inches of Sheryl's to pursue a number like that, to try and get growth that is not profitable. So, the number will be less than this of army, but clearly it makes sense from a shareholder standpoint, and we are attracting good flows.

The only thing I would say, and maybe I was a little confused with what you said, rap business is only a sub, it's one component of the client flow in Comerica. So, there is other flow activity, Comerica, annuities, brokerage, other activities. So, it's not a one-for-one dollar between rap and client flows.

Gotcha, so that would be impacting the total client flows, probably more so. Yeah, so the total of the 19 billion that will come out by the end of September, completely.

That's total client flows. Rap flows is a component of that within the 19, but not, I don't know the exact percentage per se, but it's less than, it's definitely less than the 19.

And the only reason we're not mentioning what it is because it's a client, so we don't, but at the end, that's all I would say is the complete amount will be out by the end of the third quarter. Now, upsetting that, as we said, is Huntington will be coming in in a big way, and that will be in the fourth quarter, in the beginning of the first quarter.

And we also are winning other A-fig type of deals as well. So, we feel like a pipeline and what will offset that will be very good. And it's unfortunate because advises that Comerica really would like to stay with us because they love what we provided and their clients do. So, I think, so it's not because we lost it, it's because the decision made through an acquisition that people made.

We feel good about it. Remember, with generating this on a consistent basis across our entire business, I would probably ask you to look over the years about the continuation of that in the solid. You're always gonna get some impacts based on environment and things such as that and market and behavior that's occurring out there. But what I've failed to understand is how people don't look the totality of it rather than just an NAA.

NAA might be good if it truly translates into real profitability on a consistent basis with strong margins. If it doesn't, then what are you paying for? It's like the eyeballs become the internet back in 2000, what really survives? I mean, you have some of that occurring today with AI, what will happen in the end. But right now we're so enamored with pay people paying up because they get some patelli growth that may translate into profitability truly in the end, I don't know whether it will or not fully.

But what we look at is we make those decisions in a form basis. We definitely want people to join. We definitely give good appropriate compensation packages. We also know the value that we truly provide and what that generates for an advisor over time. If you have an increase in advisor productivity year in and year out and even in the end when they're looking for succession, that equity has built up even more strongly and more higher value. And then you can sell that because of the system we have at a premium to what you would be selling outside in one of the other networks.

Those things add tremendous value that an advisor understands or needs to understand. Right now people are taking some checks but it doesn't mean it's gonna translate to even that being gonna benefit really better in the end. And so those are the things that we know are important. And when we're truly able to speak to people that way, they understand it and that's why we attract them and that's why we have a good network with our advisors here. But again, people can always think about what the short term is and there's a lot of short termism today.

Can you expand on what you were referring to there and any impact that you expect going forward? Yes, because as I indicated, we have a group of programs that deal with various advisor needs and both as it relates to secession and growth and those programs. We also have an established program dealing on a remote basis with our PWG activity where we've been growing that. So there's additional activities.

From that standpoint, our organic capabilities is certainly more profitable and certainly for retention purposes and for meeting their objective needs. So we offer a full spectrum of capabilities that the advisor in their cycles to allow them to achieve their objectives and those are set programs with them and those have been rolled out and certainly we're expanding, like I said, our remote advisor capability and that is paying good dividends for us.

Last quarter, I think, despite that, you were talking about an improvement in the pipeline as the quarter progressed. It's how has that trended since then? I guess over the last few months.

Do you think that's a reflection of some of these changes that you're making or is that just the timing of when practices move?

I'm not going to question.

No, I think it's a combination of both. From that standpoint, certainly we have as the value proposition and people evaluate as Jim said. But certainly as we indicated, we for the right of ours is in the right situation, we'll make adjustments and that's what you're seeing.

Well, certainly you're in the right ballpark, I would say there is more on the core. Yeah, it's definitely more than half in the core. It's more like 70%. It's, as I say, it's more than a core. It's somewhere in between what you just said. How's that?

That's better. Any additional disclosures that you guys could give us on that would be helpful. I think it is a real differentiation. Yes, it is. And it's not only that, it's also the stability where the bank is to maintain that generation of earnings. It's obviously we have a bank, so we don't have to swap and we keep the premium. And certainly the bank is be growing and it's not an interest income.

And so yes, I think we will look at doing that cause there's certainly a big differential between the concentration we have and the concentration that exists in in pairs. I'll leave it at that.