Q2 2024 Truist Financial Corp Earnings Call

Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation second quarter 2024 earnings conference call. Currently, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

Operator: Corporation, Second Quarter 2024 Earnings Conference Call. Currently, all participants are in a listen-only mode.

Operator: A brief question and answer session will follow the formal presentation. As a reminder, this event is being recorded. It is now my pleasure to introduce your host, Mr. Brad Milsap. Thank you, Betsy.

As a reminder, this event is being recorded.

Speaker Change: It is now my pleasure to introduce your host, Mr. Brad Milsap.

Bradley Jason Milsaps: And good morning, everyone. Welcome to Truist's second quarter 2024 earnings call. With us today are our Chairman and CEO Bill Rogers, our CFO Mike Maguire, our Vice Chair and Chief Risk Officer Clarke Starnes, as well as other members of Truist's senior management team. During this morning's call, they will discuss Truist's second quarter results, share their perspectives on current business conditions, and provide an updated outlook for 2024. The accompanying presentation, as well as our earnings release and supplemental financial information, is available on the Truist Investor Relations website, ir.truist.com.

Bradley Jason Milsaps: Thank you, Betsy, and good morning, everyone. Welcome to Truist's second quarter 2024 earnings call. With us today are our chairman and CEO , Bill Rogers, our CFO , Mike Maguire, our vice chair and chief risk officer, Clarke Starnes, as well as other members of Truist's senior management team.

Speaker Change: During this morning's call, they will discuss Truist's second quarter results, share their perspectives on current business conditions, and provide an updated outlook for 2024. The accompanying presentation, as well as our earnings release and supplemental financial information are available on the Truist Investor Relations website, ir.truist.com.

Bradley Jason Milsaps: Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on Slides 2 and 3 of the presentation regarding these statements and measures, as well as the appendix for appropriate reconciliations to GAAP. With that, I will now turn it over to Bill.

Speaker Change: Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slides 2 and 3 of the presentation regarding these statements and measures, as well as the appendix for appropriate reconciliations to GAAP. With that, I will now turn it over to Bill.

William Henry Rogers: Thanks, Brad, and good morning, everyone, and thank you for joining our call today. So before we discuss our second quarter results, let's begin with purpose on slide four. As you all know, Truist is a purpose-driven company dedicated to inspiring and building better lives and communities.

Bill: Thanks, Brad, and good morning, everyone, and thank you for joining our call today. So before we discuss our second quarter results, let's begin with purpose on slide four.

Bill: As you all know, Truist is a purpose-driven company dedicated to inspiring and building better lives and communities.

William Henry Rogers: Purpose is the foundation for the things that we do. We believe purpose and performance are inextricably linked. I'd like to share some of the ways we brought our purpose to life last year. Every quarter, Truist Securities advised and served as an active joint bookrunner for Oglethorpe Power's inaugural $350 million green bond, which will be used to support their investment in PlantVogel, the largest producer of clean energy in the United States.

Bill: Purpose is the foundation for things that we do. We believe purpose and performance are inextricably linked. I'd like to share some of the ways we brought our purpose to life last quarter.

Bill: During the quarter, Truist Securities advised and served as an active

Bill: Joint book runner for Oglethorpe Power's inaugural $350 million green bond, which will be used to support their investment in PlantVogel, the largest producer of clean energy in the United States.

William Henry Rogers: The company is committed to reducing GHG emissions while delivering cost-effective and reliable clean energy with a diverse energy portfolio. This transaction represents only the second green-labeled bond in the U.S. where the use, We also launched a new financial education program tailored specifically for high school and college students called Truist Life, Money, and Choice. This initiative is aimed at empowering younger generations with financial lessons and essential skills to navigate their financial futures.

Bill: The company is committed to reducing GHG emissions while delivering cost-effective and reliable clean energy with a diverse energy portfolio. This transaction represents only the second green-labeled bond in the U.S. where the use of proceeds are allocated to nuclear energy.

Speaker Change: We also launched a new financial education program tailored specifically for high school and college students called Truist Life Money and Choices.

Speaker Change: This initiative is aimed at empowering younger generations with financial lessons and essential skills to navigate their financial futures.

William Henry Rogers: That's just a couple of examples of how we brought our purpose to life during the quarter. I'm very proud of the meaningful work we're doing across our businesses to have a positive impact on the lives of our clients, our teammates, our communities, and, of course, our shareholders as we work to realize our purpose. So let's turn to our key takeaways on slide six. On an adjusted basis, we reported net income available to common shareholders of $1.2 billion, or $0.91 per share, which excludes the gain on the sale of Truist Insurance Holdings, the loss on the sale of certain available for sale investment securities, a charitable donation to the Truist Foundation, and a few smaller items that Mike will discuss in further detail during the call. In addition, pre-tax restructuring charges of $96 million, which were primarily related to the sale of TIH and severance, also negatively impacted adjusted EPS by $0.05 per share.

Speaker Change: These are just a couple of examples of how we brought our purpose to life during the quarter. I'm very proud of the meaningful work we're doing across our businesses to have a positive impact on the lives of our clients, our teammates, our communities, and of course our shareholders as we work to realize our purpose.

Speaker Change: So let's turn to our key takeaways on slide six.

Speaker Change: On an adjusted basis, we reported net income available to common shareholders of $1.2 billion or $0.91 per share, which excludes the gain on the sale of Truist insurance holdings.

Speaker Change: The Loss on the Sale of Certain Available-for-Sale Investment Securities.

Speaker Change: A charitable donation to the Truist Foundation, and a few smaller items that Mike will discuss in further detail in the call. In addition, pre-tax restructuring charges of $96 million, which were primarily related to the sale of TIH and severance.

Mike: and also negatively impacted adjusted EPS by $0.05 per share. So looking through a few discrete items in the quarter, we're pleased with our underlying results. As you can see on the slide, our solid performance was defined by several key themes.

William Henry Rogers: So, looking through a few discrete items in the quarter, we're pleased with our underlying results. As you can see on the slide, our solid performance was defined by several key themes. First, we grew adjusted revenue 3% on a link quarter basis, which was driven by 4.5% growth in net interest income due primarily to the balance sheet repositioning completed during the quarter. Second, our results show our continued expense discipline and focus on managing costs.

Mike: First, we grew adjusted revenue 3% on a link quarter basis, which was driven by 4.5% growth in net interest income due primarily to the balance sheet reposition.

Mike: We completed during the quarter.

Mike: Second, our results show our continued expense discipline and focus on managing costs. As a result of these efforts, adjusted expenses increased by 2.6% link order and decreased by 3% on a year-over-year basis.

William Henry Rogers: As a result of these efforts, adjusted expenses increased by 2.6% in line order and decreased by 3% on a year-over-year basis. We are fully committed to delivering our objective of keeping expenses flat in 2024 versus last year.

Mike: We are fully committed to delivering our objective of keeping expenses flat in 2024 versus last year. We're also pleased that non-performing loans remained relatively stable for the fifth consecutive quarter and that net charge-offs were within our expectations.

William Henry Rogers: We are also pleased that non-performing loans remained relatively stable for the fifth consecutive quarter and that net charge-offs were within our expectations. During the quarter, we also completed the sale of our remaining stake in Truist Insurance Holdings, which significantly strengthened our relative capital position and created substantial capacity for growth in our core banking business. In recognition of the incredibly long-term positive impact of our insurance business, we will use a portion of the gain to make a $150 million charitable contribution to the Truist Foundation to further our purpose-driven work across our banking footprint for years to come.

Mike: During the quarter, we also completed the sale of our remaining stake in Truist Insurance Holdings, which significantly strengthened our relative capital position and creates substantial capacity for growth in our core banking businesses.

Mike: In recognition of the incredibly long-term, positive impact of our insurance business, we utilize a portion of the gain to make a $150 million charitable contribution to the Truist Foundation to further our purpose-driven work across our banking footprint for years to come.

William Henry Rogers: Simultaneously, with the closing of TIH, we repositioned a portion of our available-for-sale investment portfolio, which, along with the proceeds received from the sale of TIH, is expected to provide an offset to TIH earnings contribution. Mike will provide more details on these transactions later in the call. In late June, our board authorized the repurchase of up to $5 billion of our common stock through the end of 20

Mike: Simultaneously, with the closing of TIH, we repositioned a portion of our available-for-sale investment portfolio, which, along with the proceeds received from the sale of TIH, is expected to provide an offset to TIH earnings contribution. Mike will provide more details on these transactions later in the call.

Mike: In late June , our board authorized the repurchase of up to $5 billion of our common stock through the end of 2026.

William Henry Rogers: We plan to begin repurchasing our shares during the third quarter and will initially target share repurchases of approximately $500 million per quarter for the remainder of the year. Finally, we continue to actively pursue growth opportunities in our core consumer and wholesale banking businesses. Although overall loan demand remains slow during the quarter, I'm encouraged by the underlying momentum in terms of increased wallet share within certain businesses and the talent we're attracting to our company, which I'm going to discuss a little later in the call.

Mike: We plan to begin repurchasing our shares during the third quarter and will initially target share repurchases of approximately $500 million per quarter for the remainder of the year.

Mike: Finally, we continue to actively pursue growth opportunities in our core consumer and wholesale banking businesses.

Mike: Although overall loan demand remains slow during the quarter, I'm encouraged by the underlying momentum in terms of increased wallet share within certain businesses and the talent we're attracting to our company, which I'm going to discuss a little later in the call.

William Henry Rogers: So before I hand the call over to Mike to discuss the financial performance in more detail, let me provide a quick update on the progress we're making in improving experiences for our clients on slide seven. We continue to show strong and steady growth in our digital capabilities, as client mobile app users grew 7%, and digital transactions increased 13% compared to the second quarter of last year. Transactions continue to shift towards self-service capabilities, primarily driven by strong growth in Zelle transactions, which are up 39% year-over-year.

Mike: So before I hand the call over to Mike to discuss the financial performance in more detail, let me provide a quick update on the progress we're making in improving experiences for our clients on slide 7.

Mike: We continue to show strong and steady growth in our digital capabilities as client mobile app users grew 7% and the digital transactions increased 13% compared to the second quarter of last year.

Mike: Transactions continue to shift towards self-service capabilities, primarily driven by strong growth in Zelle transactions, which are up 39% year-over-year.

William Henry Rogers: In addition, we added over 180,000 new accounts during the quarter, including nearly 70,000 new-to-bank clients through our digital channels, which represents a 17% increase over the second quarter of 2023. Importantly, digital checking account production among Gen Z and millennial clients. University of Michigan Extension.

Mike: In addition, we added over 180,000 new accounts during the quarter, including nearly 70,000 new-to-bank clients through our digital channels, which represents a 17% increase over the second quarter of 2023.

Mike: Importantly, digital checking account production among Gen Z and millennial clients is higher by 42% on a year-over-year basis.

William Henry Rogers: Thank you. A new, more modernized, small business digital onboarding experience has also resulted in new high... Application Completion Rates, while we're also seeing increased digital engagement with our small business clients. We've also made enhancements to enterprise platforms that have empowered teammates to deliver knowledge and care through 1.8 million caring conversations, resulting in 1.4 million accepted recommendations for great Truist products and services. These enhanced offerings, coupled with strong growth in digital, have resulted in higher consumer digital client satisfaction scores as we continue to focus on accelerated adoption and efficiency using our T3 strategy.

Mike: A new, more modernized small business digital onboarding experience has also resulted in new high in application completion rates while we're also seeing increased digital engagement with our small business clients.

Mike: We've also made enhancements to enterprise platforms that have empowered teammates to deliver knowledge and care through 1.8 million caring conversations, resulting in 1.4 million accepted recommendations for great Truist products and services.

Mike: These enhanced offerings coupled with strong growth in digital have resulted in higher consumer digital client satisfaction scores as we continue to focus on accelerated adoption and efficiency using our T3 strategy.

William Henry Rogers: Overall, I'm really proud of the continued momentum Truist is making in digital engagement. So with that, let me turn over to Mike to discuss the financial results in more detail. Mike. Thank you, Bill, and good morning, everyone.

Mike: Overall, I'm really proud of the continued momentum Truist is making in digital engagement. So with that, let me turn it over to Mike to discuss the financial results in more detail.

Michael Baron Maguire: Before I begin discussing our second quarter results, I'd like to spend a few moments recapping the strategic actions that significantly impacted our second quarter results. First, on May 6th, we completed the divestiture of our remaining ownership stake in Truist Insurance Holdings for an implied value of $15.5 billion. At closing, we received after-tax cash proceeds of approximately $10.1 billion and recorded an after-tax gain of $4.8 billion.

Mike: Thank you, Bill, and good morning, everyone.

Mike: Before I begin discussing our second quarter results, I'd like to spend a few moments recapping the strategic actions that significantly impacted our second quarter results.

Mike: First, on May 6th, we completed the divestiture of our remaining ownership stake in Truist Insurance Holdings at an implied value of $15.5 billion.

Mike: At closing, we received after-tax cash proceeds of approximately $10.1 billion and recorded an after-tax gain of $4.8 billion.

Michael Baron Maguire: The sale of TIH created $9.5 billion of capital, which generated 230 basis points of CET-1 under current capital rules and 250 basis points of capital under proposed fully phased-in Basel III rules. Our tangible book value per share also increased by 33%. On the same day, we executed a strategic balance sheet repositioning of a portion of our available-for-sale investment securities portfolio. We sold approximately $27.7 billion of market-valued, lower-yielding investment securities, which resulted in an after-tax loss of $5.1 billion.

Mike: The sale of TIH created $9.5 billion of capital, which generated 230 basis points of CET1 under current capital rules and 254 basis points of capital under proposed fully phased in Basel III rules.

Mike: Our tangible book value per share also increased by 33%. On the same day, we executed a strategic balance sheet repositioning of a portion of our available for sale investment securities portfolio.

Mike: We sold approximately $27.7 billion of market value, lower-yielding investment securities, which resulted in an after-tax loss of $5.1 billion.

Michael Baron Maguire: The investment securities that we sold had a book value of $34.4 billion and a weighted average book yield of 2.80% for the remainder of 2024, including the impact of hedges and based on the federal funds curve at that time. Including the tax benefit, the sale of these securities generated $29.3 billion of proceeds available for reinvestment.

Mike: The investment securities that we sold had a book value of $34.4 billion and a weighted average book yield of 2.80% for the remainder of 2024, including the impact of hedges and based on the federal funds curve at that time.

Mike: Including the tax benefit, the sale of investment securities generated $29.3 billion of proceeds available for reinvestment.

Michael Baron Maguire: When coupled with the proceeds from the sale of TIH, there were $39.4 billion of proceeds available for reinvestment. Of that, we invested approximately $18.7 billion in investment securities yielding 5.27%, with the remaining $20.7 billion held in cash. At the time we invested the proceeds, the blended reinvestment rate on the new investment securities purchased and the cash was 5.22% for the remainder of 2024, including the impact of hedging. As Bill mentioned, the reinvestment of the proceeds from the sale of TIH and the balance sheet repositioning completed during the quarter are expected to replace TIH's earnings contribution.

Mike: When coupled with the proceeds from the sale of TIH, there were $39.4 billion of proceeds available for reinvestment. Of that, we invested approximately $18.7 billion in investment securities yielding 5.27%, with the remaining $20.7 billion held in cash.

Mike: At the time we invested the proceeds, the blended reinvestment rate on the new investment securities purchased and the cash was 5.22% for the remainder of 2024, including the impact of hedges.

Mike: As Bill mentioned, the reinvestment of the proceeds from the sale of TIH and the balance sheet repositioning completed during the quarter are expected to replace TIH's earnings contributions.

Michael Baron Maguire: These actions, completed during the second quarter, significantly accelerate our ability to meet increasing standards for capital and liquidity in the industry and, importantly, create capacity for Truist to grow its core banking franchise and to return capital to shareholders via our strong dividend and share repurchase. Now, turning to our second quarter key performance highlights on slide nine. We reported second quarter 2024 gap net income available to common shareholders of $826 million, or $0.62 per share.

Bill: These actions, completed during the second quarter, significantly accelerate our ability to meet increasing standards for capital and liquidity in the industry and, importantly, create capacity for Truist to grow its core banking franchise and to return capital to shareholders via our strong dividend and share repurchases.

Chances.

Michael Baron Maguire: This included a net loss of $4 billion from continuing operations, or $2.98 per share, and net income from discontinued operations of $4.8 billion, or $3.60 per share. The net loss available to common shareholders from continuing operations of $4 billion, or $2.98 per share, was impacted by the following items. A $6.7 billion pre-tax or $3.80 per share after-tax loss on the sale of certain available-for-sale investment securities. $150 million pre-tax or $0.09 per share charitable contribution to the Truist Foundation.

Unknown Executive: Now turning to our second quarter key performance highlights on slide 9. We reported second quarter 2024 GAAP net income available to common shareholders of $826 million or 62 cents per share. This included a net loss of $4 billion from continuing operations, or $298 per share, and net income from discontinued operations of $4.8 billion, or $3.60 per share. The net loss available to common shareholders from continuing operations of $4 billion or $2.98 per share was impacted by the following items: a $6.7 billion pre-tax or $3.80 per share after tax loss on the sale of certain available-for-sale investment securities.

Speaker Change: Now turning to our second quarter key performance highlights on slide 9.

Michael Baron Maguire: A $13 million pre-tax, or one penny per share, after-tax expense related to the FDIC special assessment adjustment. Net income available to common shareholders from discontinued operations of $4.8 billion, or $3.6 billion per share, was impacted by the following items. A $6.9 billion pre-tax, or $3.60 per share after-tax gain on the sale of Truist Insurance Holdings A $10 million pre-tax, or $0.01 per share after-tax expense due to the accelerated recognition of TIH equity-based compensation. Thus, on an adjusted basis, we reported net income available to common shareholders of $1.2 billion, or $0.91 per share.

Speaker Change: We reported second quarter 2024 gap net income available to common shareholders of $826 million or $0.62 per share.

Speaker Change: This included a net loss of $4 billion from continuing operations, or $2.98 per share, and net income from discontinued operations of $4.8 billion, or $3.60 per share.

Speaker Change: The net loss available to common shareholders from continuing operations of $4 billion or $2.98 per share was impacted by the following items. A $6.7 billion pre-tax or $3.80 per share after-tax loss on the sale of certain available-for-sale investment securities.

Unknown Executive: $150 million to a pre-tax or $0.09 cents per share charitable contribution to the Truist Foundation, a $13 million pre-tax or $0.01 penny per share after tax expense related to FDIC special assessment adjustment. Net income available to common shareholders from discontinued operations of $4.8 billion or $3.60 per share was impacted by the following items: a $6.9 billion pre-tax or $3.60 per share after tax gain on the sale of Truist Insurance Holdings; a $10 million pre-tax or $0.01 per share after tax expense due to the accelerated recognition of TIH equity-based compensation. So, on an adjusted basis, we reported net income available to common shareholders of $1.2 billion, or $9.1 cents per share.

Speaker Change: $150 million pre-tax, or $0.09 per share, charitable contribution to the Truist Foundation $13 million pre-tax, or $0.01 per share, after-tax expense related to FDIC Special Assessment Adjustment.

Speaker Change: Net income available to common shareholders from discontinued operations of $4.8 billion or $3.6 billion per share was impacted by the following items.

Speaker Change: A $6.9 billion pre-tax, or $3.60 per share, after-tax gain on the sale of Truist Insurance Holdings. A $10 million pre-tax, or $0.01 per share, after-tax expense due to the accelerated recognition of TIH equity-based compensation.

Speaker Change: So, on an adjusted basis, we reported net income available to common shareholders of $1.2 billion, or $0.91 per share.

Michael Baron Maguire: In addition to the items I just noted, we also had pre-tax restructuring charges totaling $96 million in the quarter, which negatively impacted adjusted EPS to common shareholders by 5 cents per share. Approximately $33 million of these pre-tax charges, or 2 cents per share after tax, negatively impacted net income from continuing operations and were primarily related to severance and real estate rationalization. The remaining restructuring charges were recorded in discontinued operations and were related to legal and other expenses associated with closing the divestiture of TIH.

Unknown Executive: In addition to the items I just noted, we also had pre-tax restructuring charges totaling $96 million in the quarter, which negatively impacted adjusted EPS to common shareholders by five cents per share. Approximately $33 million of these pre-tax charges, or two cents per share after tax, negatively impacted net income from continuing operations and were primarily related to severance and real estate rationalization. The remaining restructuring charges were recorded in discontinued operations and were related to legal and other expenses associated with closing the divestiture of TIH. So, revenue adjusted for the losses on the available-for-sale investment securities increased 3% linked quarter due to a 4.5% increase in net interest income and relatively stable non-interesting income.

Speaker Change: In addition to the items I just noted, we also had pre-tax restructuring charges totaling $96 million in the quarter, which negatively impacted adjusted EPS to common shareholders by 5 cents per share.

Speaker Change: Approximately $33 million of these pre-tax charges, or $0.02 per share after tax, negatively impacted net income from continuing operations and were primarily related to severance and real estate rationalization.

Speaker Change: The remaining restructuring charges were recorded in discontinued operations and were related to legal and other expenses associated with closing the divestiture of TIH.

Michael Baron Maguire: Total revenue adjusted for the losses on the available for sale investment securities increased 3% linked quarter due to a 4.5% increase in net interest income and relatively stable non-interest. Adjusted expenses increased 2.6% linked quarter, but we're down approximately 3% on a light quarter basis. Our CET1 ratio increased by 150 basis points linked quarter to 11.6%, primarily reflecting the sale of TIH and the balance sheet repositioning I discussed earlier. In addition, net charge-offs declined six basis points on a linked quarter basis, and our non-performing loans remained relatively stable both on a like and linked quarter basis.

Speaker Change: Total revenue adjusted for the losses on the available for sale investment securities increased 3% linked quarter due to a 4.5% increase in net interest income and relatively stable non-interest income.

Unknown Executive: Adjusted expenses increased 2.6% linked quarter, but were down approximately 3% on a like quarter basis. Our CTE1 ratio increased by 150 basis points linked quarter to 11.6%, primarily reflecting the sale of TIH and the balance you repositioning I discussed earlier. In addition, net charge-off declined six basis points on a linked quarter basis, and our non-performing loans remained relatively stable both on a like and linked quarter basis.

Speaker Change: Adjusted expenses increased 2.6% LQ but were down approximately 3% on a LQ basis.

Speaker Change: Our CET1 ratio increased by 150 basis points linked quarter to 11.6%, primarily reflecting the sale of TIH and the balance sheet repositioning I discussed earlier.

Speaker Change: In addition, net charge-offs declined six basis points on a linked quarter basis, and our non-performing loans remained relatively stable both on a like and linked quarter basis.

Unknown Executive: Moving to slide 10, average loans decreased 0.7% on a sequential basis, reflecting overall a weaker client demand. Average commercial loans decreased $1.3 billion or 0.7% primarily due to a 0.8% decline in CNI balances driven at least in part by capital market activity. In our consumer portfolio, average loans decreased a billion dollars, or 0.9%, due to run off in our residential mortgage portfolio and to decline an indirect auto. Other consumer balances, which include our specialty lending units, experienced modest growth and benefited from seasonal strength that chef yield and increased demand at service finance. Overall, we expect client loan demand to remain relatively muted in the third quarter.

Michael Baron Maguire: Moving to slide 10, average loans decreased 0.7% on a sequential basis, reflecting overall weaker client demand. Average commercial loans decreased $1.3 billion, or 0.7%, primarily due to a 0.8% decline in C&I balances, driven at least in part by capital markets activity.

Speaker Change: Moving to slide 10.

Speaker Change: Average loans decreased 0.7% on a sequential basis reflecting overall weaker client demand.

Speaker Change: Average commercial loans decreased $1.3 billion, or 0.7%, primarily due to a 0.8% decline in C&I balances, driven at least in part by capital markets activity.

Michael Baron Maguire: In our consumer portfolio, average loans decreased by $1 billion, or 0.9%, due to runoff in our residential mortgage portfolio and a decline in indirect auto. Other consumer balances, which include our specialty lending units, experienced modest growth and benefited from seasonal strength at Sheffield and increased demand at Service Financial. Overall, we expect client loan demand to remain relatively muted in the third quarter. Moving to deposit trends on slide 11. Average deposits decreased 0.3% sequentially as growth in money market and savings was offset by declines in non-interest-bearing time and broker balance.

Speaker Change: In our consumer portfolio, average loans decreased $1 billion or 0.9% due to runoff in our residential mortgage portfolio and a decline in indirect auto. Other consumer balances, which include our specialty lending units, experienced modest growth and benefited from seasonal strength at Sheffield and increased demand at Service Finance.

Speaker Change: Overall, we expect client loan demand to remain relatively muted in the third quarter. Moving to deposit trends on slide 11.

Unknown Executive: Major, moving to deposit trends on slide 11. Average deposits decreased 0.3% sequentially, as growth in money market and savings was offset by declines in non-interest bearing time and broker balances. Average non-interest bearing deposits decreased 1.2% and represented 28% of total deposits, which is unchanged compared to 28% during the first quarter of 2024. During the quarter, we experienced an increase in deposit costs, albeit at a slower pace than the first quarter. Specifically, total deposit costs increased 6 basis points sequentially, 2.09%, which resulted in a 1% increase in our cumulative total deposit beta to 39%. Interest bearing deposits costs increased 7 basis points sequentially to 2.89%, which also resulted in a 1% increase to our cumulative total interest bearing deposit beta costs, up to 84%.

Speaker Change: Average deposits decreased 0.3% sequentially as growth in money market and savings was offset by declines in non-interest bearing time and broker balances.

Michael Baron Maguire: Average non-interest-bearing deposits decreased 1.2% and represented 28% of total deposits, which is unchanged compared to 28% during the first quarter of 2024. During the quarter, we experienced an increase in deposit costs, albeit at a slower pace than the first quarter. Specifically, total deposit costs increased 6 basis points sequentially to 2.09%, which resulted in a 1% increase in our cumulative total deposit beta to 39%. Interest-bearing deposit costs increased 7 basis points sequentially to 2.89%, which also resulted in a 1% increase in our cumulative total interest-bearing deposit beta cost of 54%.

Speaker Change: Average non-interest bearing deposits decreased 1.2% and represented 28% of total deposits, which is unchanged compared to 28% during the first quarter of 2024.

Speaker Change: During the quarter, we experienced an increase in deposit costs, albeit at a slower pace than the first quarter. Specifically, total deposit costs increased six basis points sequentially, 2.09%, which resulted in a 1% increase in our cumulative total deposit beta to 39%.

Speaker Change: Interest-bearing deposit costs increased seven basis points sequentially to 2.89%, which also resulted in a 1% increase to our cumulative total interest-bearing deposit beta cost of 54%.

Unknown Executive: Moving to the industry income and then interest margin on slide 12. For the quarter, taxable equivalent net interest income increased 4.5% linked quarter, or $155 million, primarily due to the strategic balance sheet repositioning completed during the quarter. Excluding the impact of this repositioning, our net interest income would have been relatively stable on a linked-quarter basis. Due primarily to our focus on average client deposits, which declined less than we expected. Reported in that interest margin increased 14 basis points on a linked quarter basis to 3.03%. This was due primarily to the impact of the balance sheet repositioning.

Michael Baron Maguire: Moving to Net Interest Income and Net Interest Margin on slide 12, for the quarter, taxable equivalent net interest income increased 4.5% compared to the previous quarter, or $155 million, primarily due to the strategic balance sheet repositioning completed during the quarter. Excluding the impact of this repositioning, our net interest income would have been relatively stable on a linked quarter basis, due primarily to our focus on average client deposits, which declined less than we expected. Reported Net Interest Margin increased 14 basis points on a linked quarter basis to 3.03%.

Speaker Change: Moving to Net Interest Income and Net Interest Margin on slide 12.

Speaker Change: For the quarter, taxable equivalent net interest income increased 4.5% linked quarter, or $155 million, primarily due to the strategic balance sheet repositioning completed during the quarter.

Speaker Change: Excluding the impact of this repositioning, our net interest income would have been relatively stable on a linked quarter basis, due primarily to our focus on average client deposits, which declined less than we expected.

Speaker Change: Reported net interest margin increased 14 basis points on a linked quarter basis to 3.03 percent. This was due primarily to the impact of the balance sheet repositioning.

Michael Baron Maguire: This was due primarily to the impact of the balance sheet repositioning. The partial quarter impact of the balance sheet repositioning helped drive a 31 basis point improvement in the average yield on our investment securities portfolio to 2.77%. We estimate that our balance sheet remains positioned as relatively neutral from an interest rate perspective, comparable to Q1. Adjusted non-interest income, which excludes the losses associated with the balance sheet repositioning, decreased $8 million, or 0.6 percent, relative to the first quarter.

Unknown Executive: The partial quarter impact of the balance sheet repositioning helped to drive a 31 basis point improvement in the average yield on our investment securities portfolio to 2.77%. We estimate that our balance sheet remains positioned as relatively neutral from an interest rate perspective comparable to 2.1.

Speaker Change: The partial quarter impact of the balance sheet repositioning helped drive a 31 basis point improvement in the average yield on our investment securities portfolio to 2.77%. We estimate that our balance sheet remains positioned as relatively neutral from an interest rate perspective, comparable to Q1.

Unknown Executive: During the non-tracing income on slide 13, adjusted non-interacting income, which excludes the losses associated with the balance sheet repositioning, decreased $8 million or 0.6% relative to the first quarter. The linked quarter decrease was primarily attributable to lower investment banking trading income, which declined $37 million from our strong first quarter performance due to lower M&A fees, equity originations, and trading income, partially offset by higher loans indication fees. This decline was partially offset by higher mortgage banking and other income. Adjusted non-interacting income increased 4.2% on a like quarter basis, as higher investment banking trading and wealth management income were partially offset by lower service charge on the deposit and other income.

Speaker Change: Earned and non-fixed income on slide 13.

Speaker Change: Adjusted non-interest income, which excludes the losses associated with the balance sheet repositioning, decreased $8 million, or 0.6%, relative to the first quarter.

Michael Baron Maguire: The linked quarter decrease was primarily attributable to lower investment banking and trading income, which declined $37 million from our strong first quarter performance due to lower M&A fees, equity originations, and trading income, partially offset by higher loan syndication. This decline was partially offset by higher mortgage banking and other... Adjusted non-interest income increased 4.2% on a light quarter basis as higher investment banking and trading and wealth management income were partially offset by lower service charges on deposits and other income.

Speaker Change: The linked quarter decrease was primarily attributable to lower investment banking and trading income, which declined $37 million from our strong first quarter performance due to lower M&A fees, equity originations, and trading income, partially offset by higher loan syndication fees.

Speaker Change: This decline was partially offset by higher mortgage banking and other income.

Speaker Change: Adjusted non-interest income increased 4.2% on a light quarter basis as higher investment banking and trading and wealth management income were partially offset by lower service charge on deposit and other income.

Unknown Executive: On a year-to-date basis, investment banking and trading income is up nearly 30% over the same period in 2023.

Michael Baron Maguire: On a year-to-date basis, investment banking and trading income is up nearly 30% over the same period in 2020. Now I'll cover non-interest expense on slide 14. Gap expenses of $3.1 billion increased $141 million in the linked quarter primarily due to higher other expenses related to a $150 million charitable donation, higher personnel costs reflecting merit increases, and higher professional fees.

Speaker Change: On a year-to-date basis, investment banking and trading income is up nearly 30% over the same period in 2023.

Michael Baron Maguire: These increases were offset by lower restructuring charges and a reduction in FDIC expense due to a larger special assessment recorded in the first quarter. Excluding these items and the impact of intangible amortization, adjusted non-interest expense increased 2.6% sequentially due to higher personal expenses and professional fees. On a light quarter basis, adjusted expenses declined to $86 million, or 3%, reflecting lower headcount in our continued expenses. Moving to asset quality on slide 15.

Unknown Executive: Now we'll cover non-tracing expense on slide 14. Gap expenses of $3.1 billion increased $141 million linked quarter, primarily due to higher other expense related to $150 million charitable donation. Higher personnel costs reflecting merit increases and higher professional fees. These increases were offset by lower restructuring charges and a reduction in FDIC expense due to a larger special assessment recorded in the first quarter. Observer. Excluding these items and the impact of intangible amortization, adjusted non-ishish expense increased 2.6% sequentially due to higher personal expense and professional fees. On a light quarter basis, adjusted expenses declined $86 million or 3%, reflecting lower head count in our continued expense discipline.

Speaker Change: Now I'll cover non-interest expense on slide 14.

Speaker Change: Gap expenses of $3.1 billion increased $141 million linked quarter primarily due to higher other expense related to $150 million charitable donation, higher personnel costs reflecting merit increases, and higher professional fees.

Speaker Change: These increases were offset by lower restructuring charges and a reduction in FDIC expense due to a larger special assessment recorded in the first quarter.

Speaker Change: Excluding these items and the impact of intangible amortization, adjusted non-interest expense increased 2.6% sequentially due to higher personal expense and professional fees.

Speaker Change: On a light quarter basis, adjusted expenses declined to $86 million, or 3%, reflecting lower headcount in our continued expense discipline.

Unknown Executive: Moving to asset quality on Slide 15. Asset quality remained stable on both a light and linked quarter basis, reflecting our strong credit risk culture and proactive approach to quickly resolving problem loans. During the quarter, our net charge operation decreased 6 basis points to 58 basis points. The decrease in net charge loss for the quarter reflects lower consumer losses due to normal second quarter season of declines and certain derisking initiatives put in place in the second half of 2022. Our loan loss provision declined $49 million linked quarter, reflecting our stable credit performance, but is still exceeded net charge loss for the quarter, resulting in a slight build our overall loan loss allowance.

Speaker Change: Moving to asset quality on slide 15.

Michael Baron Maguire: Asset quality remained stable on both a like and linked quarter basis, reflecting our strong credit risk culture and proactive approach to quickly resolving problem loans. During the quarter, our net charge-off ratio decreased six basis points to 58 basis points. The decrease in net charge-offs for the quarter reflects lower consumer losses due to normal second-quarter seasonal declines and certain de-risking initiatives put in place in the second half of 2022. Our loan loss provision declined to $49 million linked quarter, reflecting our stable credit performance, but it still exceeded net charge-offs for the quarter, resulting in a slight build to our overall loan loss allowance.

Speaker Change: Asset quality remained stable on both a like and linked quarter basis, reflecting our strong credit risk culture and proactive approach to quickly resolving problem loans.

Speaker Change: During the quarter, our net charge-off ratio decreased 6 basis points to 58 basis points. The decrease in net charge-offs for the quarter reflects lower consumer losses due to normal second quarter seasonal declines and certain de-risking initiatives put in place in the second half of 2022.

Speaker Change: Our loan loss provision declined to $49 million linked quarter, reflecting our stable credit performance, but it still exceeded net charge-offs for the quarter, resulting in a slight build to our overall loan loss allowance.

Michael Baron Maguire: Our ALLL ratio increased to 1.57%, up one basis point sequentially and 14 basis points year over year, which reflects ongoing credit normalization and stress in the office. Despite the normalization, non-performing loans remained relatively stable for the fifth consecutive quarter, while total delinquencies increased just two basis points on a linked quarter basis. Wholesale criticized loans declined by a billion dollars a linked quarter to $10.8 billion. Included in our appendix is updated data on our office portfolio, which is virtually unchanged at 1.6% of total loans.

Unknown Executive: Our atriplell ratio increased to 1.57%, up one basis points sequentially and 14 basis points year over year, which reflects ongoing credit normalization and stress in the office sector. Despite the normalization, non-performing loans remained relatively stable for the fifth consecutive quarter, while total delinquencies increased just two basis points on a linked-quarter basis. Full sale criticized loans declined up $1 billion linked quarter to $10.8 billion. Included in our appendix is an updated data on our office portfolio, which is virtually unchanged at 1.6% of total loans. However, we did increase our reserve on this portfolio from 9.3% to 9.7% during the quarter to reflect continued stress in the sector.

Speaker Change: Our ALLL ratio increased to 1.57%, up 1 basis point sequentially, and 14 basis points year over year, which reflects ongoing credit normalization and stress in the office sector.

Speaker Change: Despite the normalization, non-performing loans remained relatively stable for the fifth consecutive quarter, while total delinquencies increased just two basis points on a linked quarter basis.

Speaker Change: Wholesale criticized loans declined a billion dollars linked quarter to 10.8 billion dollars.

Speaker Change: Included in our appendix is updated data on our office portfolio, which is virtually unchanged at 1.6% of total loans.

Michael Baron Maguire: However, we did increase our reserve on this portfolio from 9.3% to 9.7% during the quarter to reflect continued stress in the sector. Approximately 6.3% of our office portfolio is currently classified as non-performing, compared with 5.5% on March 31st. Approximately 90% of these loan balances are being paid in accordance with the original terms of the loan.

Speaker Change: However, we did increase our reserve on this portfolio from 9.3% to 9.7% during the quarter to reflect continued stress in the sector. Approximately 6.3% of our office portfolio is currently classified as non-performing compared with 5.5% on March 31st.

Unknown Executive: Approximately 6.3% of our office portfolio is currently classified as non-performing, compared with 5.5% at March 31st. Approximately 90% of these loan balances are paying in accordance with the original terms of the loan. Notably, approximately 20% of our office portfolio is housed within our community banking and wealth segments, where loan sizes tend to be more granular, guarantee support more prevalent, and overall losses lower. We expect stress to remain in the office sector and believe that the size of our portfolio is manageable and well-reserved, but our position is to be very proactive in identifying and resolving issues in this portfolio.

Speaker Change: Approximately 90% of these loan balances are paying in accordance with the original terms of the loan.

Michael Baron Maguire: Notably, approximately 22% of our office portfolio is housed within our community banking and wealth segments, where loan sizes tend to be more granular, guarantor support is more prevalent, and overall losses are lower. We expect stress to remain in the office sector and believe that the size of our portfolio is manageable and well-reserved, but our position is to be very proactive in identifying and resolving issues in this portfolio. Turning now to Capital on slide 16. Truist's CET1 ratio increased from 10.1% at March 31st to 11.6% at June 30.

Speaker Change: Notably, approximately 22% of our office portfolio is housed within our community banking and wealth segments, where loan sizes tend to be more granular, guarantor support more prevalent, and overall loss is lower.

Speaker Change: We expect STRESS to remain in the office sector and believe that the size of our portfolio is manageable and well-reserved. But our position is to be very proactive in identifying and resolving issues in this portfolio.

Michael Baron Maguire: The increase was driven by the gain on the sale of Truist Insurance Holdings and organic capital generation, which was partially offset by the loss on the sale of certain available for sale investment securities during the quarter, which I addressed earlier. Importantly, the sale of TIH creates capacity for Truist to pursue growth opportunities in its consumer and wholesale banking businesses and to return significant capital to shareholders, as evidenced by our share buyback.

Unknown Executive: Turning out a capital on Slide 16. Tourist CET1 ratio increased from 10.1% at March 31st to 11.6% at June 30. The increase was driven by the gain on the sale of tourist insurance holdings and organic capital generation, which was partially offset by the loss on the sale of certain available-for-sale investment securities during the quarter, which I addressed earlier. Importantly, the sale of TIA creates capacity for tourists to pursue growth opportunities in our consumer and wholesale banking businesses and to return significant capital to shareholders, as evidenced by our share buy-back program. Tourists is well-positioned to whether a wide variety of economic scenarios, which was evident in our most recent CCAR stress test results released in late June.

Speaker Change: Turning now to Capital on slide 16.

Speaker Change: Truist's CET1 ratio increased from 10.1% at March 31st to 11.6% at June 30. The increase was driven by the gain on the sale of Truist Insurance Holdings and organic capital generation, which was partially offset by the loss on the sale of certain available for sale investment securities during the quarter, which I addressed earlier.

Speaker Change: Importantly, the sale of TIH creates capacity for Truist to pursue growth opportunities in our consumer and wholesale banking businesses and to return significant capital to shareholders as evidenced by our Share Buyback Program.

Michael Baron Maguire: Truist is well positioned to weather a wide variety of economic scenarios, which was evident in our most recent CCAR stress test results released in late June. Specifically, Truist had the second lowest C&I loan loss rate and the third lowest CET1 erosion rate versus our peers.

Speaker Change: Truist is well positioned to weather a wide variety of economic scenarios, which was evident in our most recent CCAR stress test results released in late June .

Unknown Executive: Specifically, tourists have the second lowest C&I loan loss rate and the third lowest CET1 erosion rate versus our peers. Our stress capital buffer will improve by 10 basis points to 2.8% effective October 1st. At June 30, our CT1 ratio was 430 basis points, higher than our new regulatory minimum of 7.3%, leaving its well position to both grow our balance sheet and return capital to shareholders. Our increased level of capital accelerates our ability to meet increasing standards for capital and liquidity in the industry, as our estimated CT1 capital ratio, under proposed Basel 3N game rules, improves 20 basis points to 9.1% at June 30, which is a 180 basis points above our new regulatory minimum.

Speaker Change: Specifically, Truist has the 2nd lowest C&I loan loss rate and the 3rd lowest CET1 erosion rate versus our peers. Our stress capital buffer will improve by 10 basis points to 2.8% effective October 1st.

Michael Baron Maguire: Our stress capital buffer will improve by 10 basis points to 2.8% effective October 1st. At June 30, our CT1 ratio was 430 basis points, higher than our new regulatory minimum of 7.3%, leaving us well-positioned to both grow our balance sheet and return capital to shareholders. Our increased level of capital accelerates our ability to meet increasing standards for capital and liquidity in the industry, as our estimated CT1 capital ratio under proposed Basel III endgame rules improved 20 basis points to 9.1% at June 30, which is 180 basis points above our new regulatory minimum.

Speaker Change: At June 30, our CT1 ratio was 430 basis points, higher than our new regulatory minimum of 7.3%, leaving us well-positioned to both grow our balance sheet and return capital to shareholders.

Speaker Change: Our increased level of capital accelerates our ability to meet increasing standards for capital and liquidity in the industry, as our estimated CT1 capital ratio under proposed Basel III endgame rules improved 20 basis points to 9.1% at June 30.

Speaker Change: which is 180 basis points above our new regulatory minimum.

Michael Baron Maguire: And now I'll review updated guidance on slide 17. Looking into the third quarter of 2024, we expect revenue to increase 1 to 2% from second quarter 2024 adjusted revenue of $5 billion. We expect net interest income to increase 2% to 3% in the third quarter, primarily driven by a full quarter impact of the balance sheet repositioning completed on May 6. We expect non-interest income to remain relatively stable on a linked quarter basis. Adjusted expenses of $2.8 billion in the second quarter are expected to increase by 3% in the third quarter due to higher professional fees, software costs, and higher marketing costs.

Unknown Executive: And now I'll review upgraded guidance for updated guidance on slide 17. Looking into the third quarter of 2024, we expect revenue to increase 1 to 2% from second quarter 2024 adjusted revenue of $5 billion. We expect that interest income to increase 2 to 3% in the third quarter, primarily driven by a full quarter impact of the balance sheet repositioning completed on May 6. We expect non-interest income to remain relatively stable on a linked-quarter basis. Adjusted expenses of $2.8 billion in the second quarter are expected to increase by 3% in the third quarter due to higher professional fees, software costs, and higher marketing costs.

Speaker Change: And now I'll review updated guidance on slide 17.

Speaker Change: Looking into the third quarter of 2024, we expect revenue to increase 1-2% from second quarter 2024 adjusted revenue of $5 billion.

Speaker Change: We expect net interest income to increase 2-3% in the 3rd quarter, primarily driven by a full quarter impact of the balance sheet repositioning completed on May 6th.

Speaker Change: We expect non-interest income to remain relatively stable on a linked quarter basis.

Speaker Change: Adjusted expenses of $2.8 billion in the second quarter are expected to increase by 3% in the third quarter due to higher professional fees, software costs, and higher marketing costs.

Unknown Executive: For the full year 2024, we previously expected revenues to be down 1.5% to 1.5%. We now expect total revenues to decline by approximately 1.5% to 1% in 2024. Our updated outlook is based on slightly better client deposit balance performance, partially offset by lower client loan demand and our updated view of interest rates, which now assumes just one reduction in the federal funds rate in November of this year. Insistent with our previous expense outlook, we expect full year 2024 adjusted expenses to remain approximately flat over 23 adjusted expenses of $11.4 billion. In terms of asset quality, we continue to expect net charge loss of about 65 basis points in 2024.

Michael Baron Maguire: For the full year 2024, we previously expected revenues to be down a half percent to one and a half percent. We now expect total revenues to decline by approximately 0.5% to 1% in 2024. Our updated outlook is based on slightly better client deposit balance performance, partially offset by lower client loan demand, and our updated view of interest rates, which now assumes just one reduction in the federal funds rate in November of this year.

Speaker Change: For the full year 2024, we previously expected revenues to be down 0.5% to 1.5%.

Speaker Change: We now expect total revenues to decline by approximately 0.5% to 1% in 2024.

Speaker Change: Our updated outlook is based on slightly better client deposit balance performance, partially offset by lower client loan demand, and our updated view of interest rates, which now assumes just one reduction in the federal funds rate in November of this year.

Michael Baron Maguire: Consistent with our previous expense outlook, we expect full-year 2024 adjusted expenses to remain approximately flat over 23 adjusted expenses of $11.4 billion. In terms of asset quality, we continue to expect NIC charge-offs of about 65 basis points in 2024. As Bill previously mentioned, we are targeting approximately $500 million of share repurchases per quarter for the remainder of the year as part of our share repurchase authorization announced in late June. Finally, we expect our effective tax rate to approximate 16% or 19% on a taxable equivalent basis in both the third and fourth quarters of 2024.

Speaker Change: Consistent with our previous expense outlook, we expect full-year 2024 adjusted expenses to remain approximately flat over 23 adjusted expenses of $11.4 billion.

Speaker Change: In terms of asset quality, we continue to expect next charge-offs of about 65 basis points in 2024.

Unknown Executive: As Bill previously mentioned, we are targeting approximately $500 million of share repurchases per quarter for the remainder of the year as part of our share repurchase authorization announced in late June. Finally, we expect our affected tax rate to approximate 16% for 19% on a taxable equivalent basis in both the third and fourth quarters of 2024.

Speaker Change: As Bill previously mentioned, we are targeting approximately $500 million of share repurchases per quarter for the remainder of the year as part of our share repurchase authorization announced in late June . Finally, we expect our effective tax rate to approximate 16%.

Speaker Change: or 19% on a taxable equivalent basis in both the third and fourth quarters of 2024. Now I'll hand it back to Bill for some final remarks. Great. Thanks, Mike. So our top priorities for 2024 are unchanged.

William Rogers: Now we'll hand it back to Bill for some final remarks. Great, thanks, Mike. So our top priorities for 2024 are unchanged. They include growing and deepening relationships with core clients, maintaining our expense discipline, returning capital to our shareholders via share buybacks and our common strong dividend. And enhancing our digital experience through T3, all while maintaining and strengthening strong risk controls and asset quality metrics. We made demonstrable progress on these priorities during the quarter, and I'm really proud of the results our teammates delivered, which included solid underlying earnings, improved momentum, and sound asset quality. All this was accomplished while also completing the divestiture of Curious Insurance holdings and repositioning our balance sheet during the quarter.

William Henry Rogers: Now I'll hand it back to Bill for some final remarks. Great. Thanks, Mike.

William Henry Rogers: So our top priorities for 2024 are unchanged. They include growing and deepening relationships with core clients, maintaining our expense discipline, returning capital to our shareholders via share buybacks and our common strong dividend, and enhancing our digital experience through T3, all while maintaining and strengthening strong risk controls and asset quality metrics. We made demonstrable progress on these priorities during the quarter, and I'm really proud of the results our teammates delivered, which included solid underlying earnings, improved momentum, and sound asset quality. All this was accomplished while also completing the divestiture of Truist Insurance Holdings and repositioning our balance sheet during the quarter.

Bill: They include growing and deepening relationships with core clients, maintaining our expense discipline, returning capital to our shareholders via share buybacks and our common strong dividend.

Bill: Enhancing our digital experience through T3, all while maintaining and strengthening strong risk controls and asset quality metrics.

Bill: We made demonstrable progress on these priorities during the quarter, and I'm really proud of the results our teammates delivered, which included solid underlying earnings, improved momentum, and sound asset quality.

Bill: All this was accomplished while also completing the divestiture of Truist Insurance holdings and repositioning our balance sheet during the quarter.

William Rogers: These actions created significant capital capacity to grow our consumer and wholesale businesses and return capital to shareholders via our strong common dividend and our recently announced repurchase authorization of up to $5 billion of our common stock. In addition, our significantly stronger balance sheet is well-positioned to weather and even water a range of economic and interest rate environments. Although the balance sheet repositioning completed during the quarter is expected to replace TAH's earnings in the near term, we recognize that our increased level of capital will result in near-term dilution to our return on average tangible common equity ratio.

William Henry Rogers: These actions created significant capital capacity to grow our consumer and wholesale businesses and return capital to shareholders via our strong common dividend and our recently announced repurchase authorization of up to $5 billion of our common stock. In addition, our significantly stronger balance sheet is well positioned to weather an even wider range of economic and interest rate environments. Although the balance sheet repositioning completed during the quarter is expected to replace TIH's earnings in the near term, we recognize that our increased level of capital will result in near-term dilution to our return on average tangible common equity ratio. As I've said previously, our starting point for ROATCE is exactly that.

Bill: These actions created significant capital capacity to grow our consumer and wholesale businesses and return capital to shareholders via our strong common dividend.

Bill: and our recently announced repurchase authorization of up to $5 billion of our common stock. In addition, our significantly stronger balance sheet is well-positioned to weather an even wider range of economic and interest rate environments.

Bill: Although the balance sheet repositioning completed during the quarter is expected to replace TIH's earnings in the near term.

Speaker Change: We recognize that our increased level of capital will result in near-term dilution to our return on average tangible common equity ratio. As I've said previously, our starting point for ROATC is exactly that. It's a starting point.

William Rogers: As I've said previously, our starting point for our OATC is exactly that. It's a starting point. We're going to move with pace to deploy our capital and prove our returns. We're not going to be in a rush to leverage capital to meet short-term expectations that do not have long-term positive impact on our company, clients, and shareholders. We have a clear understanding of not only where we want to win, but where we want to win profitably. We'll look to share more of our plan with you as we progress through the remainder of this year. I can say that I'm encouraged that much of the profitability improvement potential we are working towards is centered on further deepening of existing client relationships in verticals and product lines that already exist at Truest.

William Henry Rogers: It's a starting point. We're going to move with pace to deploy our capital and prove our return. We're not going to be in a rush to leverage capital to meet short-term expectations that do not have a long-term positive impact on our company, clients, and shareholders. We have a clear understanding of not only where we want to win, but where we want to win profitably.

Speaker Change: We're going to move with pace to deploy our capital, improve our returns, but we're not going to be in a rush to leverage capital to meet short-term expectations that do not have long-term positive impact on our company, clients, and shareholders.

Speaker Change: We have a clear understanding of not only where we want to win, but where we want to win profitably.

William Henry Rogers: I'll look to share more of our plan with you as we progress through the remainder of this year. However, I can say that I'm encouraged that much of the profitability improvement potential we are working towards is centered on further deepening existing client relationships and verticals and product lines that already exist at Truist. We have great confidence in our ability to further penetrate our existing client base, grow our core banking business, and help new and existing clients achieve financial success by delivering our commercial, consumer, payments, investment banking, and wealth platform, given the ongoing investment in our existing footprint and specialty areas. In wholesale, we've invested in our investment banking and trading platform over the last several years. We've also hired experienced bankers and key industry verticals, and products.

Speaker Change: We'll look to share more of our plan with you as we progress through the remainder of this year. I can say that I'm encouraged that much of the profitability improvement potential we are working towards is centered on further deepening of existing client relationships and verticals and product lines that already exist at Truist.

William Rogers: We have great confidence in our ability to further penetrate our existing client base, grow our core banking business, and help new and existing clients achieve financial success by delivering our commercial consumer payments, investment banking, and wealth platform, given the ongoing investments that are existing footprint and specialty areas. And wholesale, we've invested in our investment banking and training platform over the last several years. We've also hired experienced bankers and key industry verticals and products. These investments have resulted in greater mind share with our clients across many industry verticals and an increase in the number of lead roles across several product lines.

Speaker Change: We have great confidence in our ability to further penetrate our existing client base, grow our core banking business,

Speaker Change: and help new and existing clients achieve financial success.

Speaker Change: by delivering our commercial, consumer, payments, investment banking, and wealth platform given the ongoing investments through our existing footprint and specialty areas.

Speaker Change: In wholesale, we've invested in our investment banking and trading platform over the last several years. We've also hired experienced bankers and key industry verticals and products.

William Henry Rogers: These investments have resulted in greater mindshare with our clients across many industry verticals and an increase in the number of lead roles across several product lines. Most recently, we've invested heavily in our payments business and have made key leadership additions, as this is an area where we see significant opportunity for growth over time, not only with new clients but also within our existing client base. We have a clear focus, high expectations, and a compelling teammate value proposition.

Speaker Change: These investments have resulted in greater mindshare with our clients across many industry verticals and an increase in the number of lead roles across several product lines.

William Rogers: What's recently we've invested heavily in our payments business and have made key leadership additions as this is an area where we see significant opportunity for growth over time, not only with new clients, but also within our existing client base. We have a clear focus, high expectations, and a compelling teammate value proposition. Many of our teammates have risen to this new challenge, and we have very successfully hired additional strong talent and wholesale primarily from larger institutions who have experienced and are thriving in our purpose-driven high-performance culture. We plan to continue adding talent and wholesale with a specific focus on further building out our middle market commercial lending segment, which represents one of the largest growth opportunities within our regional business.

Speaker Change: Most recently, we've invested heavily in our payments business and have made key leadership additions as this is an area where we see significant opportunity for growth over time not only with new clients but also within our existing client base.

Speaker Change: We have a clear focus, high expectations, and a compelling teammate value proposition.

William Henry Rogers: Many of our teammates have risen to this new challenge, and we have very successfully hired additional strong talent in wholesale, primarily from larger institutions who have experience and are thriving in our purpose-driven, high-performance culture. We plan to continue adding talent and wholesale with a specific focus on further building out our middle market commercial lending segment, which represents one of the largest growth opportunities within our regional business. We will primarily focus on industries that support existing corporate investment banking coverage and expertise.

Speaker Change: Many of our teammates have risen to this new challenge, and we have very successfully hired additional strong talent in wholesale, primarily from larger institutions who have experience and are thriving in our purpose-driven, high-performance culture.

Speaker Change: We plan to continue adding talent in wholesale with a specific focus on further building out our middle market commercial lending segment, which represents one of the largest growth opportunities within our regional business.

William Rogers: We will primarily focus on industries that support existing corporate investment banking coverage and expertise. We're making these investments while also adhering to our expense discipline, which is helping fund investments and technology to improve the client experience and also to improve risk management.

Speaker Change: We will primarily focus on industries that support existing corporate investment banking coverage and expertise. We're making these investments while also adhering to our expense discipline, which is helping fund investments in technology to improve the client experience and also to improve risk management.

William Henry Rogers: We're making these investments while also adhering to our expense discipline, which is helping fund investments in technology to improve the client experience and also to improve risk management and consumer. I'm really encouraged by our momentum. Our internal client satisfaction scores continue to improve, as evidenced by increased net new checking account production, increased primacy, and lower attrition rates. Net new checking account production was once again positive in the second quarter as we added 38,000 new consumer and business accounts. Importantly, we're also seeing year-over-year improvement in account attrition rates and increased primacy and usage within new account openings. As I previously mentioned, we added 180,000 new accounts during the quarter, including nearly 70,000 new-to-bank clients through our digital channels, which represented a 17% increase.

William Henry Rogers: In consumer, I'm really encouraged with our momentum. Our internal client satisfaction scores continue to improve, as evidenced by increased net new checking account production, increased primacy, and lower attrition rates. Net new checking account production was once again positive in the second quarter as we added 38,000 new consumer and business. Accounts. Importantly, we're also seeing year-over-year improvement in account attrition rates and increased primacy and usage within new account openings. As I previously mentioned, we added 180,000 new accounts during the quarter, including nearly 70,000 new-to-bank clients through our digital channels, which represented a 17% increase. In addition to an increase in account openings, we're also seeing improvement in the funding of our digital account openings, with balances up 60% over the second quarter of last year.

Speaker Change: and Consumer, I'm really encouraged with our momentum. Our internal client satisfaction scores continue to improve as evidenced by increased net new checking account production, increased primacy, and lower attrition rates.

Speaker Change: Net new checking account production was once again positive in the second quarter as we added 38,000 new consumer and business accounts.

Speaker Change: Importantly, we're also seeing year-over-year improvement in account attrition rates and increased primacy and usage within new account openings.

Speaker Change: As I previously mentioned, we added 180,000 new accounts during the quarter, including nearly 70,000 new-to-bank clients through our digital channels, which represented a 17% increase.

William Henry Rogers: In addition to an increase in account openings, we're also seeing improvement in the funding of our digital account openings, with balances up 60% over the second quarter of last year. For Consumer and Small Business Lending, we've been consistently adding new small business lenders across our footprint. In the second quarter, small business applications increased 15 percent, link quarter, resulting in a 10 percent increase in our pipeline, giving us confidence that average consumer balance, excluding runoff and residential mortgages, will stabilize in the third quarter.

Speaker Change: In addition to an increase in account openings, we're also seeing improvement in the funding of our digital account openings, with balances up 60% over the second quarter of last year.

William Rogers: In consumer and small business lending, we've been consistently adding new small business lenders across our footprint. In the second quarter, small business applications increase 15% link quarter, resulting in 10% increase in our pipeline, given as confidence that average consumer balance says excluding runoff and residential mortgages will stabilize in the third quarter.

Speaker Change: In consumer and small business lending, we've been consistently adding new small business lenders across our footprint. In the second quarter, small business applications increased 15 percent, link quarter, resulting in a 10 percent increase in our pipeline, giving us confidence that average consumer balance

Speaker Change: Says excluding runoff and residential mortgages will stabilize in the third quarter.

William Henry Rogers: In conclusion, I'm pleased with the progress we've made as a company at the midpoint of this year, but we acknowledge there's more work to do as we strive to produce better results in the future. We have tremendous momentum within our company. We have momentum with our clients, and we've got great momentum with our teammates. We have an incredible franchise, energized, purposeful teammates, and specialized capabilities that our clients value. We think the ability to grow our core banking business, our profitability, and return significant amounts of capital to our shareholders in the form of dividends and share repurchases over the next several years is a unique differentiating factor for Truist.

William Rogers: In conclusion, I'm pleased with the progress we've made as a company at the midpoint of this year, but we acknowledge there's more work today, as we strive to produce better results in the future. We have tremendous momentum within our company; we have momentum with our clients, and we've got great momentum with our teammates. We have an incredible franchise, energized, purposeful teammates, and specialized capabilities that our clients value. We think the ability to grow our core banking business, our profitability, and return significant amounts of capital to our shareholders in the form of dividends and share repurchases over the next several years is a unique differentiating factor for tourists.

Speaker Change: In conclusion, I'm pleased with the progress we've made as a company at the midpoint of this year, but we acknowledge there's more work to do as we strive to produce better results in the future.

Speaker Change: We have tremendous momentum within our company. We have momentum with our clients, and we've got great momentum with our teammates.

Speaker Change: We have an incredible franchise, energized, purposeful teammates, and specialized capabilities that our clients value.

Speaker Change: We think the ability to grow our core banking business, our profitability, and return significant amounts of capital to our shareholders in the form of dividends and share repurchases over the next several years is a unique differentiating factor for Truist.

William Henry Rogers: I am optimistic about our future, and I look forward to operating our company from our increased position of financial strength. And finally, I'd be remiss if I didn't thank all of our incredible teammates and our great leaders for their incredible purposeful focus on productivity and moving our company forward. So Brad, with that, I'll hand it over to you for Q&A. Thank you, Bill. Betsy, at this time, will you please explain how our listeners can participate in the Q&A session?

William Rogers: I am optimistic about our future. I look forward to operating our company from our increased position of financial strength. And finally, I'd be remiss if I didn't thank all of our credible teammates and our great leaders for their incredible, purposeful focus on productivity and moving our company forward.

Speaker Change: I am optimistic about our future. I look forward to operating our company from our increased position of financial strength.

Speaker Change: And finally, I'd be remiss if I didn't thank all of our incredible teammates and our great leaders for their incredible purposeful focus on productivity and moving our company forward. So Brad, with that, let me hand it over back over to you for Q&A.

Unknown Executive: So, we're out of the family; hand it over back over to you for Q&A. Thank you, Bill.

Bradley Jason Milsaps: As you do that, I'd like to ask the participants to please limit themselves to one primary question and one follow-up so that we may accommodate as many of you as possible today. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone.

Unknown Executive: Betsy, at this time, we please explain how our listeners can participate in Q&A session. As you do that, I'd like to add that participants should please limit yourself to one primary question and one follow-up. In order that we may accommodate as many of you as possible today.

Bradley Jason Milsaps: Thank you, Bill. Betsy, at this time, will you please explain how our listeners can participate in a Q&A session? As you do that, I'd like to ask the participants to please limit yourself to one primary question and one follow-up. In order that, we may accommodate as many of you as possible today.

Unknown Executive: We will now begin the question and answer session. Do ask your question. You may press star, then the one on your touchstone zone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. Again, in the interest of time, please limit yourself to one question and one follow-up.

Betsy: We will now begin the question and answer session.

Betsy: To ask a question, you may press star then 1 on your touchtone phone.

Operator: If you are using a speakerphone, please pick up your handset before pressing the. If at any time your question has been answered and you would like to withdraw your question, please press star then. Again, in the interest of time, please limit yourself to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. The first question today comes from Ryan Nash of Goldman Sachs. Please go ahead. Hey, good morning, Bill. Good morning, Mike.

Betsy: If you are using a speakerphone, please pick up your handset before pressing the keys.

Betsy: If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Betsy: Again, in the interest of time, please limit yourself to one question and one follow-up.

Unknown Executive: At this time, we will pause momentarily to assemble our roster.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Ryan Nash: The first question today comes from Ryan Nash with Goldman Sachs. Please go ahead.

Speaker Change: The first question today comes from Ryan Nash with Goldman Sachs. Please go ahead.

Ryan Nash: Thank you, Martin Bill. Good morning, Mike.

Ryan Nash: Maybe to start off with NII, you know, fields post restructuring, you know, we've bought them now and you should get a step up next quarter, but can you maybe just talk about the drivers of sequential NII growth over the next few quarters? You know, do you expect margin improvement? And then, how do you think about where the margin could be headed over the medium term? Thanks, and I have a follow-up. Good morning, Ryan.

Ryan Nash: Hey, good morning, Bill. Good morning, Mike. Morning.

Ryan Nash: Maybe to start off with NII. It feels posterior structuring. We've bought them now, and you should get a step up next quarter. Maybe just talk about the drivers of sequential NII growth over the next few quarters. Do you expect margin improvement? How do you think about where the margin could be headed over the medium term? Thanks, and I have a follow-up.

Ryan Nash: Um, you know, maybe to start off with NII, you know, fields post restructuring, you know, we bought them now and you should get a step up next quarter, but

Speaker Change: Can you maybe just talk about the drivers of sequential NII growth over the next few quarters? You know, do you expect margin improvement? And then how do you think about where the margin could be headed over the medium term? Thanks.

Michael Maguire: Good morning Ryan.

Michael Baron Maguire: You know, we mentioned in our comments that we do expect the NII to improve next quarter by, you know, two to 3%. Really, the bulk of that is driven by just the full quarter impact of the repositioning that we completed back in May. We continue to expect there to be some pressure on client deposit balances as well as loan balances. So maybe a touch conservative there.

Michael Baron Maguire: We've mentioned in our comments that we do expect the NII to improve next quarter by two to three percent. Really, the bulk of that is driven by just the full quarter impact of the repositioning that we completed back in May. We continue to expect there to be some pressure on client deposit balances as well as loan balances. So maybe a touch conservative there; we did have some nice, just to say it, just some nice out performance in the second quarter on client deposit balances, which really helped stabilize that core NII at the bonds. But that's really sort of the story for Q2.

Speaker Change: Good morning, Ryan.

Speaker Change: You know, we mentioned in our comments that we do expect the NII to improve next quarter by

Speaker Change: You know, two to three percent, really the bulk of that is driven by just the full quarter impact of the repositioning that we completed back in May.

Speaker Change: We continue to expect there to be some pressure on client-deposit balances as well as loan balances, so maybe a touch conservative there. We did have some nice, just to say it,

Michael Baron Maguire: We did have some nice, just to say it, just some nice outperformance in the second quarter on client deposit balances, which really helped stabilize that core NIIX, the bonds. But that's really sort of the story for Q2. And I think Q4, just looking out a little further, if you think about kind of the rest of the year trajectory, kind of more of the same, right? I mean, we mentioned we've got a November cut in. We think that helps a touch, but that is the first cut, and it's pretty late.

Speaker Change: Just some nice outperformance in the second quarter on client deposit balances, which really helped stabilize that core NIIX, the bonds.

Michael Maguire: And I think Q forward, just looking at a little further, you think about kind of rest of your trajectory, kind of more of the same, right? I mean, we mentioned we've got a November cut in. We think that helps a touch, but that is the first cut, and it's the late. So we've got pretty modest expectations around the impact there. And I think for us, really, what will stimulate some improvement on the NII side? We'll just be some of the core balances. So getting client loan demand increased, getting, which hopefully will generate balances as well.

Speaker Change: But that's really sort of the story for Q2, and I think Q4, just looking out a little further, if you think about kind of rest-of-year trajectory,

Speaker Change: Kind of more of the same, right? I mean, we mentioned we've got a November cut in. We think that helps a touch, but that is the first cut and it's pretty late.

Michael Baron Maguire: So we've got pretty modest expectations around the impact there. And you know, I think for us, really, what will stimulate, you know, some improvement on the NII side will just be some of the core balances. So getting, you know, client loan demand increased, getting, you know, which hopefully will generate balances as well.

Speaker Change: So we've got pretty modest expectations around the impact there, and I think for us, really what will stimulate some improvement on the NII side will just be some of the core balances. So getting client loan demand increased.

Michael Baron Maguire: And all this mentioned this.

Speaker Change: which hopefully will generate balances as well. I'll just mention this. We're very focused around the company. Pick your segment or LOB. Everybody in the company is very focused on realizing that growth opportunity once it presents itself. You've heard this from I think others.

Michael Baron Maguire: I mean, we're very focused around the company, you know, pick your segment or LOB. Everybody in the company is very focused on realizing that growth opportunity once it presents itself. It's just, and you've heard this from others this week and last week, there just hasn't really been a lot of client activity. Got it. You know. Maybe this one for Mike or Bill as a follow-up to Mike's comments.

William Rogers: I mean, we're very focused around the company; you know, pick your segment or LOB. Everybody in the company is very focused on realizing that growth opportunity once it presents itself. It's just, and you've heard this from the others this week. And last week, there just has really not been a lot of client activity. Got it.

Speaker Change: This week and last week, there just has really not been a lot of client activity.

William Rogers: You know, maybe this one for a micro bill, as a fall up to my comments. So, you know, it looks like loan balances are getting closer to level off, but Mike, you highlighted three Q, you're expecting it to be muted. And my interpretation was that it doesn't sound like you're expecting a lot of growth in the fourth quarter.

Speaker Change: Got it, you know.

Ryan Nash: So, you know, it looks like loan balances are getting closer to leveling off, but Mike, you highlighted 3Q, you're expecting it to be muted. And my interpretation was that it doesn't sound like you're expecting a lot of growth in the fourth quarter. So maybe just lower those expectations a little further. Bill, you know, when do you expect it to turn positive? What do you think the drivers are?

Speaker Change: Maybe this one for Mike or Bill.

Speaker Change: As a follow-up to Mike's comments, so, you know, it looks like loan balances are getting closer to level off, but Mike, you highlighted 3Q, you're expecting it to be muted, and my interpretation was that it doesn't sound like you're expecting a lot of growth in the fourth quarter, so...

William Rogers: So maybe just flush those expectations a little further, Bill. You know, when do you expect it to turn positive? What do you think the drivers are? And I guess, given the strength of your footprint, do you actually expect you as to begin to outperform peers on growth at some point?

Speaker Change: Maybe just flush those expectations a little further, Bill, you know, when do you expect it to turn positive, what do you think the drivers are, and I guess, given the strength of your footprint, do you actually expect Truist to begin to outperform peers on growth at some point?

William Henry Rogers: And I guess given the strength of your footprint, do you actually expect Truist to begin to outperform peers in growth at some point? I'll start with the second part of that first, and the answer to that is yes. But it has to have growth.

William Henry Rogers: Thank you. Yeah, let me start with the second part of that first. I mean, actually, that's yes. But it has to have growth. We've got to sort of see that coming. You know, clients are on the sidelines. I mean, we can feel that in our conversations. Our conversations are increasingly a lot more strategic. So I feel like we actually even know more about what our clients are thinking. But they're a bit on the sidelines. Our production was up. So we saw production being up. It was really probably best in consumer, where it was up a little more significantly.

Bill: I'll start with the second part of that first, and the answer to that is yes.

Bill: But it has to have growth. We've got to sort of see that coming.

William Henry Rogers: We've got to sort of see that coming; clients are on the sidelines. I mean, we can feel that in our conversations; our conversations are increasingly a lot more strategic. So I feel like we actually even know more about what our clients are thinking, But they're they're a bit on the sidelines. Our production was up. So we saw production being up. It was really probably best in consumer, where it was up a little more significantly utilization is just absolutely flat. But paydowns were also up.

Speaker Change: Clients are on the sidelines. I mean we can feel that in our conversations. Our

Speaker Change: increasingly a lot more strategic. So I feel like we actually even know more about what our clients are thinking. But they're they're a bit on the sidelines.

Speaker Change: Our production was up. So we saw production being up. It was really...

William Rogers: Utilization is just absolutely flat, but pay downs were also up. So, you know, on our clients and art towards the, you know, the larger side, they were accessing the capital markets. And the good news is, I mean, you see that in our investment banking, particularly in our DCM results. I mean, we're, our capture rate on that is really, really high. So we sort of see the, see, see, see the other part of that.

Speaker Change: Probably best in consumer where it was up a little more significantly. Utilization is just absolutely flat.

William Henry Rogers: So, you know, and our clients that aren't towards the larger side, they were accessing the capital markets, and the good news is, I mean, in our investment banking, particularly in our DCM results, I mean, our capture rate on that is really, really high. So we sort of see the other part of that. You know, despite the pipelines being up, production being up, I just want to be careful, you know, Ryan, about sort of like putting a stake in the ground and saying, okay, it's going to return on X. I mean, you know, take this weekend.

Speaker Change: But paydowns were also up. So, you know, and our clients that aren't towards the...

Speaker Change: You know, the larger side, they were accessing the capital markets and the good news is, I mean, you see that in our investment banking, particularly in our DCM results. I mean, we're, our capture rate on that is really, really high. So we sort of see the, see the other part of that.

William Henry Rogers: You know, despite the pipelines being up, production being up, I just want to be careful, you know, Ryan, about sort of like putting a stake in the ground and okay, it's done a return on X. I mean, you know, take this weekend. I mean, there's a lot of uncertainty out there in, you know, in the world and in the market. So while clients have capacity, we're poised spring ready to go position better than anybody. I think we just want to be, you know, realistic about winning if that, well, not, yeah, but win that's going to come back and when it's come back, going to come back with some strength.

Speaker Change: You know, despite the pipelines being up, production being up, I just want to be careful, you know, Ryan, about sort of like putting a stake in the ground and saying, okay, it's going to return on X.

William Henry Rogers: I mean, there's a lot of uncertainty out there, you know, in the world and in the market. So while clients have capacity, we're hailed spring, ready to go, position better than anybody. I think we just want to be, you know, realistic about when and if that, well, not yet, but when that's going to come back. And when it's coming back, it will come back with some strength.

Speaker Change: I mean, you know, take this weekend, I mean, there's a lot of uncertainty out there in, you know, in the world and in the market. So while clients have capacity, we're

Ryan Nash: Coiled spring, ready to go, position better than anybody.

Speaker Change: I think we just want to be, you know, realistic about when and if that, well not if, but when that's going to come back.

William Henry Rogers: And when it does, I think to your latter part of your question, we're in the best markets. And I think we should disproportionately grow fast. here.

Speaker Change: and when it's gonna come back with some strength. And when it does, I think to your latter part of your question, we're in the best markets and I think we should disproportionately grow faster.

William Henry Rogers: And when it does, I think, in response to the latter part of your question, we're in the best markets. And I think we should disproportionately grow faster. Thanks for the call, Bill. The next question comes from Ken Ustin with Jeffrey. Please go ahead.

Speaker Change: Thanks for the call, Bill.

Speaker Change: The next question comes from Ken Ustin with Jeffrey. Please go ahead.

Kenneth Michael Usdin: Thanks. I guess as a follow-up to that line of thought, Bill, you mentioned that you'd be methodical and kind of, you know, not, not, you know, not getting ahead of yourself. Just use near terms. I'm just wondering if you can kind of just remind us again, now that we've got the buyback out there, now that the restructuring is done, give them more color on the long road. Talk about prioritization, you know, what would lead you to do kind of one thing more than the other, in terms of, you know, moving the ball of all things excess capital related. And then, you know, how that kind of leads into, you know, your pacing choices on the buyback specifically. Thanks.

Kenneth Michael Usdin: Thanks. I guess as a follow-up to that line of thought, Bill, you mentioned that you'd be methodical and kind of, you know, not get ahead of yourself to

Kenneth Michael Usdin: I'm just wondering if you can kind of just remind us again, now that we've got the buyback out there, now that the restructuring is done,

Speaker Change: You just gave them a more color on the loan growth. Talk about prioritization.

Speaker Change: You know, what would lead you to do kind of one more than the other in terms of, you know, moving the ball of all things excess capital related? And then, you know, how that how that kind of leads into, you know, your pacing choices on the buyback specifically.

William Henry Rogers: Yeah, Ken, great question. And obviously, something that's, you know, important, and we're going to be calibrating our priority, you know, one, two, and three is growing our business. I mean, we think we've got, you know, a great franchise, a great market, we're really well positioned, we've invested in talent, we've invested in capabilities. So I think we've got the capacity and the capability to grow in our core business. So that is absolutely going to be the primary focus. We raised capital in the most efficient way possible. You just couldn't have raised it more efficiently than we did.

Speaker Change: Yeah, Ken, great question. And obviously something that's, you know, important, and we're going to be calibrating.

Kenneth Michael Usdin: You know, priority, you know, one, two, and three is growing our business. I mean, we think we've got, you know, a great franchise, a great market. We're really well positioned, we've invested in talent, we've invested in capabilities.

Kenneth Michael Usdin: So I think we've got the capacity and the capability to grow in our core business. So that is absolutely going to be the primary focus.

Kenneth Michael Usdin: We raised capital in the most efficient way possible.

Kenneth Michael Usdin: You know, you just couldn't have raised it more efficiently than how we raise capital. And we want to make sure that we deploy that also in the most efficient way possible, long-term benefit for our shareholders.

William Henry Rogers: And we want to make sure that we deploy that also in the most efficient way possible, for the long term, for the long term benefit of our shareholders. So we, you know, I think we've put together a compelling return perspective with what Mike outlined. We're going to do about 500 million a quarter for the next couple of quarters. I would presume we'd enter next year and sort of the same kind of same kind of pace.

Speaker Change: So, you know, I think we've put together a, you know, compelling return perspective with what Mike outlined, you know, we're going to do about 500 million, you know, a quarter for the next couple of quarters.

William Henry Rogers: But remember, that's also on top of we've got a really strong dividend. So in terms of total dollars returned to shareholders over the next six months, I mean, we have a really compelling value proposition. So we're going to calibrate that as we go along. We don't want to over-index on one and lose this incredible capital advantage we have for growth.

Speaker Change: I would presume we'd enter next year at sort of the same kind of pace.

Speaker Change: But remember, that's also on top of we've got a really strong dividend. So in terms of total dollars returned to shareholders over the next six months, I mean, we have a really compelling value proposition. So we're going to calibrate that as we go along. We don't want to over-index on one and lose this incredible capital advantage we have for growth.

Kenneth Michael Usdin: And then secondly, you know, as you enjoy this incremental NII benefit, it does seem like in the second half, certainly in the third quarter, expenses look to be increasing. Can you give us also a little bit of context in terms of how you're calibrating the new better revenue outlook to make those investments and the pacing just, you know, flattish. Flat is a tough, like, overall guide to see through, but kind of flat, it implies that third quarter and fourth quarter expenses are still going higher. Just wondering if you could provide a little context underneath that about your pacing of your investment spending on the areas you mentioned earlier. Thanks. Hey, Ken, it's Mike. Maybe you should take a swing at that one.

Speaker Change: Got it.

Speaker Change: And then secondly, you know, as you enjoy this incremental NII benefit, it does seem like in the second half...

Speaker Change: Certainly, in the third quarter, expenses look to be increasing. Can you give us also a little bit of context in terms of how you're calibrating the new better revenue outlook to making those investments and the pacing just, you know, flattish, you know, flat is a tough like.

Speaker Change: Overall guide to see through, but kind of at flat, it implies that third quarter and fourth quarter expenses are still are going higher. Just wondering if you could provide a little context underneath that about your pacing of your investment spending and to the areas you mentioned earlier. Thanks.

Michael Baron Maguire: No, you're right. I mean, look, we think we do see growth in the third quarter on the expense side. I think that's still, on a like basis, close to flat, maybe even a touch better. And I think that implies, if you think about flat, maybe a touch of growth in the fourth as well. Look, I mean, in the first half of the year, we were very focused on cost discipline and, frankly, following through on our commitment around flat.

Speaker Change: Hey Ken, it's Mike. Maybe take a swing at that one.

Mike: You're right. I mean, look, we think we do see growth in the third quarter on the expense side. I think that's still on a like basis, you know, close to flat, maybe even a touch.

Speaker Change: I think that implies, if you think about flat, you know, maybe a touch of growth in the fourth as well. Look, I mean, the first half of the year, we were very focused on cost discipline and, frankly, following through on our commitment around flat. That's still important to us. But as we've sort of gotten to the midway mark,

Michael Baron Maguire: That's still important to us. But as we've sort of gotten to the midway mark, you know, there have been certain projects, you know, whether it be, you know, some marketing spend, you know, sort of, you name it, nits and nats that, you know, perhaps were delayed, and that drove some of the beat, maybe even this quarter and even last quarter. And so some of that stuff just makes a ton of sense.

Speaker Change: You know, it's, it's, you know, there have been certain projects, you know, whether it be, you know, some marketing spend, you know, sort of, you name it, knits and knats that, you know, perhaps were delayed and that drove some of the beat, maybe even this quarter and even in last quarter. And so some of that stuff just makes a ton of sense. And, and as we really, you know, shift our mindset, and you heard Bill talk a little bit about it in his prepared remarks around some of the hiring we're doing and, you know, middle market lending as an example around our payments business.

Speaker Change: Some calibrating of marketing spend, et cetera. These are all factors that are driving our outlook for the second half. And so, look, we feel, and we've said this, you know, really since, you know, last

Michael Baron Maguire: And, and as we really, you know, shift our mindset, and you heard Bill talk a little bit about in his prepared remarks around some of the hiring we're doing, and, you know, middle market lending, as an example, around our payments business, some, some, some calibrating of marketing spend, etc. These are all factors that are driving our outlook for the second half. And so, so look, we feel, and we've said this, you know, since, you know, last fall, we are, you know, very, very confident and committed to being sort of 0.0 or better on expenses this year.

Speaker Change: are You know very very confident and committed to being sort of 0.0 We're better on expenses this year and can't just add that I mean when we you know

Michael Baron Maguire: Yeah, and I can just add to that. When we undertook this, you know, approach in the fall of last year, we were always really clear that this was going to include investments, you know, and the timing of those sort of, you know, as Mike pointed out, come quarter to quarter. And we're seeing the benefit of that. I mean, investments were made in payments, and investments were made in talent. So the expense guidance was always coincident with that.

Speaker Change: undertook this...

Speaker Change: Michael Maguire, William Rogers, Michael Maguire, William Rogers, Michael Maguire, William Rogers,

Speaker Change: Coincident with that, I'll just say, because I think it's really important, the discipline that we have in the company around both of those is significantly increased.

Speaker Change: So we sort of know the...

Speaker Change: You know, the next dollar invest with a lot of confidence. And we also have just incredibly strong, you know, discipline around the expense side of where the opportunities are. So I think

Mike: We've got the right balance here, and as Mike said, wholly committed to a flat or better expense proposition for the remainder of this year.

Unknown Executive: Great.

Robert Scott Siefers: Thank you, guys. The next question comes from Scott Siefers with Piper Sandler.

Speaker Change: Great. Thank you, guys.

William Henry Rogers: Great, thank you guys. The next question comes from Scott Siefers with Piper Sandler. Please go ahead. Morning, everyone.

Speaker Change: The next question comes from Scott Siefers with Piper Sandler. Please go ahead.

Scott Siefers: Please go ahead.

Scott Siefers: Good morning, everyone. Thanks for taking the question. Mike, I know you suggested you all are relatively neutral to rate moves. I think still kind of for better or worse, a lot of investors consider Truist among the, you know, kind of closer to the liability sensitive side of the equation. In that vein, you anticipate just one rate cut in the remainder of the year. How would another one or two affect that, that NIH item? So I'm absolutely timing would be a factor, but just curious on your overall thoughts. Yeah, good morning, Scott. Yeah, so we do have the one cut in November. You know, if we got one earlier call, it's, I think the curve today has a September cut, maybe December, maybe even a touch more than that.

Robert Scott Siefers: Thanks for taking the question. Mike, I know you suggested you all are relatively neutral when it comes to rating moves. I think, still, kind of for better or worse, a lot of investors consider Truist among the, kind of closer to the liability-sensitive side of the equation. In that vein, you anticipate just one rate cut in the remainder of the year. How would another one or two affect the NII guidance? Obviously, timing would be a factor, but just curious about your overall thoughts. Yeah, good morning, Scott.

Robert Scott Siefers: Morning everyone. Thanks for taking the question. Mike, I know you suggested you all are relatively neutral to rate moves. You know, I think still kind of for better or worse, a lot of investors consider Truist among the, you know,

Speaker Change: Closer to the liability sensitive side of the equation, in that vein, you anticipate just one rate cut in the remainder of the year. How would another one or two affect that NII guidance? Obviously timing would be a factor, but just curious on your overall thoughts.

Michael Baron Maguire: Yeah, so we do have the one cut in November. You know, if we got one earlier call, it's I think the curve today has a September cut, maybe December, and maybe even a touch more than that. That would be a that would be a help for us. You know, we look at our baseline path, which does show benefit from from down rates. I think the question, and I brought it up in sort of my earlier question that Ryan asked, you know, that first cut given how high we are and how late we expected, you know, we're just trying to be, you know, reasonable and thinking about the benefit will get there.

Mike: Yeah, good morning, Scott. Yeah, so we do have the one cut in November . You know, if we got one earlier call, it's I think the curve today has a September cut and maybe December .

Michael Maguire: That would be a; that would be a help for us. You know, we look, we are baseline path, you know, does show benefit from, from down rates. I think the question, and I brought it up in sort of my earlier question, I think that Ryan asked, you know, that, that first cut given, you know, how high we are and how late we expected. You know, we're just trying to be, you know, reasonable and thinking about the benefit we'll get there, but I think you're right. I think if we got one earlier, and then maybe perhaps a second, that would be a, that would be a good guy.

Speaker Change: and maybe even a touch more than that, that would be a...

Speaker Change: That would be a help for us. You know, we look we our baseline path, you know, does show benefit from from down rates. I think the question and I brought it up in sort of

Speaker Change: My earlier question I think that Ryan asked.

Speaker Change: You know that that first cut given you know how high we are and how late we expected you know we're just trying to be

Michael Baron Maguire: But I think you're right. I think if we got one earlier, and maybe perhaps a second, that would be a good guy. I will say this, I think just given where we are in terms of, you know, how high we are, and how long we've been here and, and some of the client behavior that we're able to observe, I think the more impactful, you know, catalyst will be again getting some of that some of that, you know, loan demand, and balance growth, and, and client deposit growth as well. So, I would would take it all.

Speaker Change: I think if we got one earlier and maybe perhaps a second, that would be a good guy. I will say this, just given where we are in terms of how high we are and how long we've been here.

Michael Baron Maguire: I will say this: I think just given where we are in terms of, you know, how high we are and how long we've been here, and some of the client, the client behavior that we're able to observe, I think the more impactful, you know, catalyst will be, again, getting some of that, you know, loan demand and balance growth, and client deposit growth as well. So, would, would, would take it all.

Speaker Change: and some of the client behavior that we're able to observe. I think the more impactful, you know, catalyst will be, again, getting some of that, you know, loan demand and balance growth and client deposit growth as well, so would take it all.

Robert Scott Siefers: Perfect. Okay, good. Thank you.

Scott Siefers: Perfect. Okay. Good. Thank you.

William Henry Rogers: And then maybe switching gears just a second, something you might be able to address the investment banking line, you know, down, down a little in the corporate, I'd say you're, at least I see you're still well above your recent run rate. So it's still a very strong number. Maybe if you could touch on or speak to, you know, sort of overall thoughts on the outlook and then maybe a thought on what you might consider sort of a sustainable base of revenues for you all.

Scott Siefers: And then maybe switching gears just a second. Something you might be able to address the investment banking line, you know, down, down a little in the corner, but I'd say you're still well above a recent run rate, so it's still a very strong number. You know, maybe if you could touch to or speak to, you know, sort of overall thoughts on the outlook, and then maybe a thought on what you might consider a sort of sustainable base of revenues for you all. Yeah. I mean, we're, you know, the investment banking business is, you know, always going to be a little quarter-to-quarter variation.

Speaker Change: Perfect. Okay, good. Thank you. And then maybe switching gears just a second, something you might be able to address the investment banking line, you know, down, down a little in the quarter, but I'd say you're, at least I see you're still well above a recent run rate. So it's still a very strong number. You know, maybe if you could touch to, or speak to, you know, sort of overall thoughts on the outlook, and then maybe a thought on what you might consider sort of a sustainable base of revenues for you all.

William Henry Rogers: Yeah, I mean, the investment banking business is always going to have a little quarter to quarter variation. In the first quarter, we had one of the highest M&A fees in our company's history.

Speaker Change: Yeah, I mean we're

Speaker Change: You know, the investment banking business is, you know, always going to be a little quarter to quarter variation. In the first quarter, we had one of the highest M&A fees in our company's history. So that sort of, you know, changed, you know, impacted that a bit. But most importantly, I feel really good about the momentum. So if you look at sort of our relevance, I mean, we're,

Michael Maguire: In the first quarter, we had one of the highest M&A fees in our company's history, so that sort of, you know, changed, you know, impact impact of that a bit. But most of all, they feel really good about the momentum. So, if you look at sort of our relevance, I mean, we're gaining share in virtually every category. The things that we're doing in terms of, you know, active book runner and left lead transactions, you know, an ECM, half of our fees were being, you know, from active book runner, you know, dramatic change where we've been in the past.

William Henry Rogers: So that sort of, you know, change the impact of that a bit, but most importantly, feel really good about the momentum. So if you look at sort of our relevance, I mean, we're gaining share in virtually every category. The things that we're doing in terms of, you know, active book runner and left lead transactions, you know, and ECM, half of our fees were being, you know, from active book runner, a dramatic change from where we've been in the past, lots of left lead transactions in there, and again, increased market share. And, most importantly, just really good relevance.

Speaker Change: gaining share in virtually every category. The things that we're doing in terms of

Speaker Change: You know, active book runner and left lead transactions, you know, and ECM half of our fees were being, you know, from active book runner, you know, dramatic change where we've been in the past.

Michael Maguire: You know, lots of left leads transactions in there, and again increase market share. And most importantly, just really good relevance. So back to sort of the comment about talent and comment about adding talent and upgrading our toolkits. Our commercial bankers' focus and understanding, and, you know, of our capabilities is just increasing exponentially. So our dialogue, as I mentioned with our clients, is really strong. It's all strategic dialogue versus product dialogue, which is really good. And I think for the balance of the year, I mean, I think this is the kind of momentum we ought to be able to continue the investment banking.

Speaker Change: You know, lots of left leads, transactions in there and again, increased market share. And most importantly, just really good relevance. So back to sort of the comment about talent and

William Henry Rogers: So back to sort of the comment about talent and the comment about adding talent and upgrading our toolkits. Our commercial bankers' focus and understanding of our capabilities is just increasing exponentially. So our dialogue, as I mentioned, with our clients is really strong. It's all strategic dialogue versus product dialogue, which is really good.

Speaker Change: Comment about adding talent and upgrading our toolkits.

Speaker Change: Our commercial bankers' focus and understanding of our capabilities is just increasing exponentially. So our dialogue, as I mentioned, with our clients is really strong.

William Henry Rogers: And I think for the balance of the year, I mean, I think this is the kind of momentum we ought to be able to continue in investment banking. So I think we would feel good about that.

Speaker Change: It's all strategic dialogue versus product dialogue, which is really good. And I think for the balance of the year, I mean, I think this is the kind of momentum we ought to be able to continue in investment banking. So I think we feel good about that.

Scott Siefers: So I think we feel good about that. Good.

Unknown Executive: Perfect. All right.

William Henry Rogers: All right, so Mike, thank you guys very much. The next question comes from Erika Najarian with UBS; please go ahead. Hi, good morning.

Unknown Executive: Thank you guys very much.

Speaker Change: Perfect. All right, thank you guys very much.

Erika Najarian: The next question comes from Erika Najarian with UBS.

Speaker Change: The next question comes from Erika Najarian with UBS. Please go ahead.

Erika Najarian: Please go ahead. Hi, good morning.

Erika Najarian: Just putting everything that you said together, Mike, maybe I'll address this one to you. You know, your net interest income was better than consensus, both mostly on the net interest margin. You mentioned that the impact of the margin from balance sheet restructuring is a partial one. If I look at the line items on non-interest income, you also beat consensus there for the quarter in terms of the core items. And consensus is at down one, which is at the low end of your revenue range. I guess, like, what are we missing?

Erika Najarian: Just putting everything that you said together, Mike, maybe I'll all address this one to you. You know, your net interest income was better than consensus, both mostly on the net interest margin. You mentioned that the impact of the margin from balance sheet restructuring is a partial one. If I look at the line items on non-interest income, we also be consensus there for the quarter in terms of the core items. And consensus is at down one, which is at the low end of your revenue range.

Erika Najarian: Hi. Good morning. Just putting everything that you've said together, Mike, maybe I'll address this one to you. You know, your net interest income was better than consensus, mostly on the net interest margin.

Erika Najarian: You mentioned that the impact of the margin from balance sheet restructuring is a partial one. If I look at the line items on non-interest income, there would also be consensus there for the quarter in terms of the core items. And consensus is at down one, which is at the low end of your revenue range.

Michael Baron Maguire: And I heard your response to, you know, Ryan's question about, you know, you expect balances to continue to come down on both the loan and deposit sides. But if your starting point on net interest margin is higher than consensus, and then you have a little bit more pull through, a month pull through in the third quarter, and you're neutral to rates in September, it will help. I guess you are being very conservative on what you can accomplish in the second half of the year?

Erika Najarian: I guess, question about, you know, you expect balances to continue to come down and both alone on deposit side. But if your starting point on net interest margin is higher than consensus. And then you have a little bit more pull through a month, pull through in the third quarter. And your neutral to rate in September will help.

Speaker Change: I guess, like, what are we missing? And I heard your response to, you know, Ryan's question about, you know, you expect balances to continue to come down on both the loan on deposit side.

Speaker Change: But if your starting point on net interest margin is higher than consensus, and then you have a little bit more pull through, a month pull through in the third quarter,

Michael Baron Maguire: Because I get the conservatism from a business standpoint, but from a rate standpoint, it feels like you guys are in good shape to maybe do a little bit better. Yeah, Erika, appreciate the question. I mean, I look, I think there was a beat on balances in the second quarter, especially if you look at it on an average basis.

Speaker Change: and you're neutral to race and September will help. I guess, are you being very conservative on what you could accomplish in the second half of the year? Because I get the conservatism from a business standpoint, but from a rate standpoint, it feels like you guys are in good shape to maybe do a little bit better.

Michael Maguire: I guess are you being very conservative on what you could accomplish in the second half of the year because I get the conservatism from a business standpoint. But from a rate standpoint, it feels like you guys are in good shape to maybe do a little bit better. Yeah, Erika, I appreciate the question. I mean, I think there was a beat on balances in the second quarter, especially if you look at it on an average basis. And so our rate paid was a touch better than we thought. And so you're right; starting position better than where we sort of would have expected to be in April.

Michael Baron Maguire: And so our rate paid was a touch better than we thought, and so you're in a better starting position than where we sort of would have expected to be in April. I think the pressures that we expected in the second quarter will still persist in the third, especially in terms of balances and rate paid. Another piece of this is that while we did get some benefit on our net interest margin from the bond, so like recouponing, some of the benefit as well as just on a smaller balance sheet.

Speaker Change: Yeah, Erika, I appreciate the question. I mean, I think there was a beat on balances in the second quarter, especially if you look at it on an average basis.

Eric: And so our rate paid was a touch better than we thought, and so you're right, starting position better than where we sort of would have expected to be in April . I think the pressures that we expected in the second quarter we still believe will persist.

Michael Maguire: I think the pressures that we expected in the second quarter, we still believe will persist in the third, especially in terms of balances and rate paid. Another piece of this is that while we did get some benefit on our net interest margin from the bond, like recouponing, some of the benefit as well is just on a smaller balance sheet. So we did, you know, for example, we paid down some wholesale liabilities late in the second that will come through in the third on an average basis. So you'll see more net interest margin improvement, but it'll be on a more efficient, smaller balance sheet.

Eric: In the third, especially in terms of balances and rate paid.

Eric: Another piece of this is that while we did get some benefit on our net interest margin from the bonds, like recouponing, some of the benefit as well is just on a smaller balance sheet.

Michael Baron Maguire: So we did, you know, for example, we paid down some wholesale liabilities late in the second that will come through in the third on an average basis. So you'll see more net interest margin improvement, but it'll be on a more efficient, smaller balance sheet. On rates, you know, I don't I don't want to call the ball on conservative, non-conservative.

Eric: You know, for example, we paid down some wholesale liabilities late in the second that will come through in the third.

Eric: On an average basis, so you'll see more net interest margin improvement, but it'll be on a more efficient, smaller balance sheet.

Michael Maguire: You know, on rates, you know, I don't want to call the ball on conservative, non-concerning. We, I think we're cautious on what benefit will get on the first cut or two. You know, we've, you know, thought about it a lot, done a lot of work and analysis. You look at sort of historically, you know, over the last call it 30 years, the down cycles and, you know, the betas have been slow, right? So I think that's in our thinking too for the rest of the year. And look, I've said this a couple of times.

Eric: You know, on rates, you know, I don't want to call the ball on conservative, non-conservative. I think we're cautious on what benefit we'll get on the first cut or two. You know, we've

Michael Baron Maguire: We, I think we're cautious about what benefit we'll get on the first cut or two. You know, we've thought about it a lot, done a lot of work and analysis. You look at sort of historically, you know, over the last, call it 30 years, the down cycles and, you know, the betas have been slow. So I think that's in our thinking, too, for the rest of the year. And look, I've said this a couple of times.

Eric: We've, you know, thought about it a lot, done a lot of work and analysis. You look at sort of historically, you know, over the last, call it 30 years, the down cycles and, you know, the betas have been slow, right? So I think that's in our thinking, too, for the rest of the year. And look, I've said this a couple of times, I think for us, the thing we're like,

Michael Maguire: I think for us, the thing where, like, feel fine about the guidance we gave, I think what would really be upside for us would be a little bit of pull through on, you know, more client activity and the ability to generate more, you know, loan volume, and with that will come deposits. You get that and maybe, you know, you get Scots, you know, extra cut and early and, you know, that, that feels good. I mean, the hurts are obviously, you know, the cut. We've got no cuts, perhaps. Maybe that's not such a bad guy, and then just the pressure that we've been seeing on balances, both deposits and loans.

Michael Baron Maguire: I think for us, the thing we feel fine about the guidance we gave, I think what would really be an upside for us would be a little bit of pull through on, you know, more client activity and the ability to generate more, you know, loan volume. And with that will come deposits. You get that, and maybe, you know, you get Scott's, you know, extra cut and early. And, you know, that feels good. I mean, the hurt is obviously, you know, the cut we've got no cuts, perhaps maybe that's not such a bad guy.

Eric: Feel fine about the the guidance we gave I think what would really be upside for us would be a little bit of pull through on You know more client activity and the ability to generate more, you know loan volume and with that will come deposits

Eric: You get that and maybe, you know, you get Scott's, you know, extra cut and early and, you know, that feels good. I mean, the hurts are obviously, you know, the cut we've got, no cuts, perhaps, maybe that's not such a bad guy. And then just the pressure that we've been seeing on balances, both deposits and loans.

Michael Baron Maguire: And then just the pressure that we've been seeing on balances, both deposits and loans. Got it. And my second question is for Bill on capital and returns. And maybe I'm just, you know, reading too much into the tea leaves because investors are very curious. You know, the authorization for the $5 billion is through 2026. You said during your prepared remarks, and, you know, tell me if I'm being too ticky tacky, but you said initially target $5 billion for the remainder of the year. And I guess investors are wondering about timing. And I know, you know, someone had already asked, Ken had already asked, about capital priorities.

Erika Najarian: Thank you.

William Rogers: And my second question is for Bill on capital and returns. And maybe I'm just, you know, reading too much into tea leaves because investors are very curious. You know, the authorizations for the 5 billion are through 2026. You said during your prepared remarks, and, you know, tell me if I'm being too ticky tacky, but you said initially target 5 billion for the remainder of the year. And I guess investors are wondering about timing. And I know, you know, someone I'd already asked, Ken and very asked about capital priorities, but, you know, what's the timing in terms of that, you know, fulfilling that 5 billion authority.

Eric: Got it. And my second question is for Bill on capital and returns.

Speaker Change: And maybe I'm just, you know, reading too much into tea leaves because investors are very curious.

Speaker Change: You know, the authorization for the $5 billion is through 2026. You said during your prepared remarks, and, you know, tell me if I'm being too ticky-tacky, but you said initially target $5 billion for the remainder of the year.

Speaker Change: And I guess investors are wondering about timing, and I know, you know, someone had already asked, Ken had already asked about capital priorities.

Erika Najarian: But, you know, is this, you know, what's the timing in terms of that, you know, fulfilling that $5 billion authority. And as I think about returns, I know you'll probably tell us more during fall conference season. But initially, this franchise, together with TIH, had an ROTC potential in the low 20s. With TIH out, could you still achieve a high teens ROTC?

Speaker Change: What's the timing in terms of that, you know, fulfilling that five billion authority?

William Rogers: And as I think about Returns, I know you'll probably tell us more during fall conference season, but initially the franchise together with P.I.H. had an ROTC potential in the low 20s with P.I.H. out. Could you still achieve with the high teens, Roxy. And I'm sure you will get more details during Fall conference season. Yeah, Eric, and just to correct one thing, we said some of the billion through the remainder of this year, and we'll sort of start the next year. You know, the reason to put the authorization of up to and make it through 26 is just to give us that kind of flexibility in terms of how we think about that.

Speaker Change: As I think about returns, I know you'll probably tell us more during fall conference season, but initially this franchise together with PIH had an ROTC potential in the low 20s.

Speaker Change: With TIH out, could you still achieve like a high-teens, rotsy, and I'm sure you will get more details during fall conference season.

William Henry Rogers: And I'm sure you will get more details during fall conference season. Yeah, Erika, just to correct one thing. We said somewhere between a billion through the remainder of this year, and we'll sort of start the next year. You know, the reason to put the authorization up to and make it through 26 is just to give us that kind of flexibility in terms of how we think about that. So we're going to calibrate that against our growth opportunities and where we see an ability to invest in our franchise, and we're going to be disciplined about it.

William Henry Rogers: So, you know, and then, as I mentioned earlier, remember, this is with a really strong dividend as well. So I think you can't talk about one without talking about the other in terms of total return to shareholders.

Speaker Change: Yeah, Erika, just to correct one thing, we said sort of a billion through the remainder of this year and we'll sort of start the next year.

Speaker Change: You know, the reason to put the authorization of up to and make it through 26 is just to give us that kind of flexibility in terms of how we think about that. So we're going to calibrate that.

William Rogers: So we're going to calibrate that against our growth opportunities and where we see an ability to invest in our franchise. And we're going to be disciplined about it. So, you know, and then, as I mentioned earlier, remember this is with a really strong dividend as well. So I think you can't talk about one without talking about the other in terms of total return to shareholders. So I think our, you know, unique capability to have a really good return to shareholders over the, you know, certainly near term and medium term from the dividend buybacks, actually quite significant.

Speaker Change: against our growth opportunities and where we see an ability to invest in our franchise, and we're going to be disciplined about it. So, you know, and then as I mentioned earlier, remember, this is with a really strong dividend as well. So I think you can't talk about one without talking about the other in terms of total return to shareholders. So I think our

Erika Najarian: So I think our, you know, unique capability to have a really good return to shareholders over the, you know, certainly near term and medium term from the dividend buyback is actually quite significant. And then you add on top of that our ability to earn and earn profitably and grow our business. So I think that's, you know, we're trying to look at all of this in the big picture, in the big mix.

Speaker Change: You know, a unique capability to have a really good return to shareholders over the, you know, certainly near term and medium term.

William Rogers: And then you put on top of that ability to earn and earn profitably and grow our business. So I think that's, you know, we're trying to look at all of this in the in the big in the big mix. As it relates to ROTCE specifically, yeah, I mean, you know, the past numbers are the past numbers. We sort of have to start from the business model that we have now. Again, we're going to give a little more guidance on that with a little more specificity as we get towards the end of the year. As you mentioned, I think we'll have a little more knowledge.

Speaker Change: from the dividend buybacks at quite significant. Then, you put on top of that our ability to earn and earn profitably grove our business. I think, we're trying to look at all of this and the big mix.

William Henry Rogers: As it relates to ROTC specifically, yeah, I mean, the past numbers are the past numbers; we sort of have to start from the business model that we have now. Again, we're going to give a little more guidance on that with a little more specificity as we get towards the end of the year. As you mentioned, I think we'll have a little more knowledge as to, you know, sort of overall capital requirements.

Speaker Change: As it relates to ROTC specifically, yeah, I mean, you know, the past numbers are the past numbers. We sort of have to start from the business model that we have now. Again, we're going to give a little more guidance on that with a little more specificity as we get towards the end of the year, as you mentioned.

William Rogers: Just, you know, sort of overall capital requirements. And while Basel may not be complete, I think we might have a better picture of where we might be and what the, you know, sort of CT one base might be that we'd operate from and think about how to put all those, all those mixes together as it relates to growth as well. So, irrespective of the target itself, the growth to the target, I think, is a really compelling proposition for true us.

Speaker Change: I think we'll have a little more knowledge as to, you know, sort of overall capital requirements. And while Basel may not be complete, I think we might have a better picture of where we might be and what the...

William Henry Rogers: And while Basel may not be complete, I think we might have a better picture of where we might be and what the, you know, sort of CT1 base might be that we'd operate from and think about how to put all those all those mixes together as it relates to growth as well. So irrespective of the target itself, the growth to the target, I think is a really compelling proposition for Truett. Okay, thank you. The next question comes from Betsy Graseck with the Morgan Family. Please go ahead. Hi, good morning.

Speaker Change: You know, sort of CET1 base might be that we'd operate from and think about how to put all those all those mixes together as it relates to as it relates to growth as well.

Speaker Change: So, irrespective of the target itself, the growth to the target, I think, is a really compelling proposition for Truist.

Unknown Executive: Okay, thank you.

Speaker Change: Okay, thank you.

Betsy Lynn Graseck: The next question comes from Betsy Grabick with Morning Family.

Betsy Lynn Graseck: The next question comes from Betsy Graseck with Morgan Stanley . Please go ahead.

Betsy Grabick: Please go ahead.

Betsy Grabick: Hi, good morning. A bit of a follow-up on the last question with Erica regarding Capital One, you know, I put together this 500 million that you're looking for in the buybacks and the dividend. And it looks like you're, you know, for the most part. Returning earnings, quarterly earnings, two investors, at least through the rest of this year. And, you know, RWA doesn't change; that means you've got a CT1 stable where it is today. I know you probably not. You didn't put a target CT1 out. I'm going to guess you're going to highlight that we need the capital rules to put that out there, but is that a fair, you know, conclusion that 116 is, you know, essentially what we should anticipate as we roll through the rest of this year?

Betsy Lynn Graseck: A bit of a follow-up on the last question with Erika regarding Capital One, you know, I put together the 500... [inaudible] returning earnings, quarterly earnings to investors, at least for the rest of this year. And you know, RWA doesn't change. That means you've got a CT1 stable, where it is today. I know you're probably not, you didn't put a target CT1 out.

Betsy Lynn Graseck: Hi, good morning.

Betsy: Bye, Betsy.

Speaker Change: A bit of a follow-up on the last question with Erika regarding Capital One, you know, I put together the 500...

Speaker Change: Millions that you're looking for in the buybacks and the dividend. It looks like you're, you know, for the most part

Speaker Change: Returning Earnings, Quarterly Earnings to Investors.

Speaker Change: At least for the rest of this year. And you know, RWA doesn't change. That means you've got a CET-1 stable where it is today. I know you're probably not, you didn't put a target CET-1 out. I'm going to guess you're going to highlight that we need the capital rules to put that out there, but

Michael Baron Maguire: I'm going to guess you're going to highlight that we need the capital rules to put that out there. But, is that a fair conclusion, you know, conclusion that 11-6? is, You know, essentially what we should anticipate as we roll through the rest of this year. Yeah, Betsy, I think that's, you know, roughed out. You could see it sort of sliding sideways for a while for the reasons you mentioned. You're right. I mean, you take the 500 buyback and call it a 700 or so dividend, you're approximately at, you know, this is rough, rough earnings,

Speaker Change: Is that a fair, you know, conclusion that 11-6 is, you know, essentially what we should anticipate as we roll through the rest of this year?

Michael Baron Maguire: Yeah, Betsy, I think that's, you know, rough dial. You know, you could see a sort of sliding sideways for a while for the reasons you mentioned. You're right. I mean, you take the 500 by back and call it 700 or so dividend. You're, you're approximately at, you know, this is rough, rough earnings, right? And, and you're right, we don't expect significant RWA improvement or decline, you know, over the period. I'll just say this. I mean, you know, and you mentioned you know, sort of CT1 target bill referred to it as well. I think a couple of things just to think about there.

Speaker Change: Yeah, Betsy, I think that's, you know, roughed out, you know, you could see us sort of sliding sideways for a while for the reasons you mentioned, you're right, I mean.

Betsy Lynn Graseck: You take the 500 buyback and

Speaker Change: Call it $700 or so dividend you're approximately at.

Michael Baron Maguire: And you're right, we don't expect significant ROA improvement or decline, you know, over the period. I'll just say this, I mean, you know, and you mentioned, you know, sort of the CET-1 target bill referred to it as well. I think a couple of things just to think about there. One, you know, we like operating with a higher level of capital in today's world. One, it affords us the right, we think, strength and resiliency and ability to sort of react to the world.

Speaker Change: This is rough earnings, and you're right, we don't expect significant ROA improvement or decline over the period.

Speaker Change: I'll just say this, I mean, you know, and you mentioned, you know, sort of CET-1 target, Bill referred to it as well. I think a couple of things just to think about there. One, you know, we like operating with a higher level of capital in today's world. One, affords us the right, we think, you know, strength and resiliency and...

Michael Maguire: One, you know, we like operating with a higher level of capital in today's world. One, affords us the right. We think, you know, strength and resiliency and ability to sort of react to the world. Importantly, we've got a growth agenda. We're focused on prosecuting. That's, you know, company-wide. You feel that, you know, with any, you know, especially front line, but really across the whole company. And then Bill mentions sort of the capability to return capital. And that can come in various, various forms. But yeah, I think, you know, modeling us, you know, somewhat flat short term.

Betsy Lynn Graseck: Importantly, we've got a growth agenda, we're focused on prosecuting, that's, you know, company-wide, you feel that with any, you know, especially frontline, but really across the whole company. And then Bill mentioned sort of the capability to return capital, and that can come in various forms. But yeah, I think modeling us, you know, somewhat flat short term, but again, our expectation is that we'll begin to grow our ROAs next year, and so that's how we're thinking about it.

Speaker Change: Ability to sort of react to the world. Importantly, we've got a growth agenda. We're focused on prosecuting. That's company-wide. You feel that with any, especially frontline, but really across the whole company. And then Bill mentioned sort of the capability to return capital, and that can come in various…

Michael Maguire: But again, we are expectations that will begin to grow RWA's next year.

Bill: and various forms. But yeah, I think, you know, modeling us, you know, somewhat flat short term. But again, we, our expectation is that we'll begin to grow RWAs next year.

Michael Maguire: And, and, and, and so that's how we're thinking about it. Right.

Speaker Change: And so that's how we're thinking about it. Right. And then on the paydowns that you experienced in the C&I book,

Michael Maguire: And then on the paydowns that you experienced in, you know, the CNI book, how much of that did you capture in the capital? Capital markets business. In other words, if folks are, you know, turning out and paying down CNI, is that are we, are we seeing, you know, majority recaptured in the feline.

William Henry Rogers: And then on the paydowns that you experienced in, you know, the C&I book, how much of that did you capture in the capital markets business? In other words, if folks are, you know, terming out and paying down C&I, is that, are we seeing, you know, the majority recaptured in the fee line? Thanks. Yeah, you know; it's hard to do that calculation sort of perfectly.

Speaker Change: How much of that did you capture in the capital markets business? In other words, if folks are terming out and paying down C&I, are we seeing a majority recaptured in the fee line? Thanks.

Clarke Starnes: Thanks. Yeah, you know, it's hard to do that calculation sort of perfectly. And we spend a lot of time, a lot of time thinking about it. But, but if you sort of look at the overall, you know, line, this was one of our, you know, best DCM quarters, you know, in a really long time. So our capture rates really high. It's hard to put an exact percentage on that because the, you know, there are puts and takes and would you've gotten it otherwise and wasn't related to this out of the other. But it's, but it's really high, and it's reflected in our overall DCM growth.

Betsy Lynn Graseck: And we spend a lot of time, a lot of time thinking about it. But if you sort of look at the overall line, this was one of our best DCM quarters in a really long time. So our capture rates are really high. It's hard to put an exact percentage on that because, you know, there are puts and takes. And would you have gotten it otherwise? And was it related to this, that, or the other?

Speaker Change: Yeah, you know, it's hard to do that calculation sort of perfectly and we spend a lot of time a lot of time thinking about it, but if you sort of look at the overall

Speaker Change: This was one of our best DCM quarters in a really long time. So our capture rate's really high. It's hard to put an exact percentage on that because the...

Speaker Change: You know, there are puts and takes, and would you have gotten it otherwise, and was it related to this, that, or the other? But it's really high, and it's reflected in our overall DCM growth. Got it. Thanks so much. Appreciate it.

William Henry Rogers: But it's, but it's really high. And it's reflected in our overall DCM growth. Got it. Thanks so much.

Clarke Starnes: God, thanks so much. Appreciate it.

Unknown Executive: Yep.

John Pancari: The next question comes from John Pankeri with Evercore.

Betsy Lynn Graseck: I appreciate it. The next question comes from John Pancari with Evercore. Please go ahead. Good morning.

Speaker Change: The next question comes from John Pancari with Evercore. Please go ahead.

John Pancari: Please go ahead. Good morning. What it seems like it just touched on credit a little bit.

John G. Pancari: I want to see if I could just touch on credit a little bit. I know you modestly added to the loan loss reserve, and it looks like much of that was on the office side. Let me get your thoughts there in terms of what you're seeing right now in terms of credit progression. You know, what are the areas where you're seeing some weakening? You have some pressure on delinquencies and non-accruals, and could that justify incremental modest additions to the reserve from here, or could you see it stable or even some releases from this point? Thanks. Thank you, John. This is Clarke.

John G. Pancari: Morning. What if I could just touch on credit a little bit. I know you added modestly to the loan loss reserve and looks like much of that was was on the office side. Let me get your thoughts there in terms of the

Clarke Starnes: I know you added modestly to the loan loss reserve, and looks like much of that was, was on the office side. When to get your thoughts there in terms of the what you're seeing right now in terms of credit progression. You know, what are the areas that you're seeing some weakening? You had some pressure on delinquency of the non accruals, and could that justify incremental modest additions to the reserve from here? Could you see it's stable or, or, or even some releases from this point? Thanks.

Speaker Change: What you're seeing right now in terms of credit progression, you know, where are the areas that you're seeing some weakening? You had some pressure on delinquencies and non-accruals. And could that justify incremental modest additions to the reserve from here? Or could you see it stable or even some releases from this point? Thanks.

Clarke Starnes: John, this is Clarke. As Mike and Bill said, we were very pleased with the overall asset quality for the quarter. And we generally had stable delinquencies. We had flat NPLs, and our losses were a touch lower, particularly in this consumer area. So, you know, we still see in the consumer side, the normalization that's occurring due to higher rates, inflation, and the stimulus burn down, particularly for the lower end consumer. So we've been a little careful there; even in this quarter reserve, we added a little bit for those lower income consumer finance areas. And then you're right on the CRE side and the office exposure.

Clarke R. Starnes: As Mike and Bill said, we were very pleased with the overall asset quality for the quarter, and we generally had stable delinquencies. We had flat NPLs, and our losses were a touch lower, particularly in this consumer area. So, you know, we're still seeing the consumer side, the normalization that's occurring due to higher rates. Inflation and the stimulus burned down, particularly for the lowering consumer.

Clark: Hey John , this is Clarke.

Speaker Change: As Mike and Bill said, we were very pleased with the overall asset quality for the quarter. We generally had stable delinquencies. We had flat NPLs and our losses were a touch lower, particularly in the consumer area. We're still seeing the consumer side, the normalization that's occurring due to higher rates.

Speaker Change: Inflation, and the stimulus burned down, particularly for the lowering consumer. So we've been a little careful there, even in this quarter's.

Clarke R. Starnes: So we've been a little careful there; even in this quarter's reserve, we added a little bit for those lower income consumer finance areas. And then you're right, on the CRE side and the office exposure, we still just want to make sure we're addressing the uncertainty there. On the wholesale C&I side, we actually had, as Bill said, a lower watch list.

Speaker Change: Reserve, we added a little bit for those lower-income consumer finance areas and then you're right

Clarke Starnes: We still just want to make sure we're addressing your uncertainty there. On the whole, cell C and I side, we actually had, as Bill said, lower watch list. And even though we're monitoring areas like the Leverds Book, consumer discretionary, senior care, and transportation. Some of those more. Rate sensitive areas; we've not had any big sector issues today to spend more episodics. So when we think about our reserves, we feel really good about the adequacy where we are today. And it reflects what we know today. So unless there's a substantial change in the economic outlook or that level of uncertainty and areas of stress like CRE office would emerge higher, we wouldn't expect our reserve levels for the remainder of 24 to be relatively safe.

Speaker Change: On the CRE side and the office exposure, we still just want to make sure we're addressing the uncertainty there. On the wholesale C&I side, we actually had...

Clarke R. Starnes: And even though we're monitoring areas like the leverage book, consumer discretionary, senior care, transportation, some of those more rate-sensitive areas, we've not had any big sector issues to date; it's been more episodic. So when we think about our reserves, We feel really good about the adequacy of where we are today, and it reflects what we know today. So, unless there's a substantial change in the economic outlook or that level of uncertainty in areas of stress like CRE office would emerge higher, we would expect our reserve levels for the remainder of 2024 to be relatively stable. Okay, great. Thanks for that, Clarke.

Speaker Change: As Bill said, lower watch list.

Speaker Change: And even though we're monitoring areas like the leverage book, consumer discretionary, senior care, transportation, some of those more rate-sensitive areas, we've not had any big sector issues to date. It's been more episodic. So when we think about our reserves...

Speaker Change: We feel really good about the adequacy of where we are today, and it reflects what we know today. So unless there's a...

Speaker Change: Substantial Change in the Economic Outlook, or

Speaker Change: That level of uncertainty in areas of stress, like CRE Office, would emerge higher. We would expect our reserve levels for the remainder of 2024 to be relatively stable.

Clarke Starnes: Okay, great.

John G. Pancari: And then separately on the fee side, you know, just I know you mentioned relatively stable in terms of the non-interest income outlook for the third quarter. Maybe you could talk about the fourth quarter a little bit, how we should think about the progression into the fourth quarter and into 25. And then separately, as part of that, on the investment banking side, you made some, you know, pretty solid talent acquisitions, and you cited the intent that you're investing in there and the progress you've made.

William Henry Rogers: Thanks for that, Clark. And then separately on the C side, you know, just I know you mentioned relatively stable in terms of the non-interesting economic reserve quarter. Maybe can you talk about fourth quarter a little bit how we should think about the progression into fourth quarter and into 25 and then separately as part of that on the investment banking side, you may come, you know, pretty solid talent acquisition. You've cited the intent that you're investing there and the progress you've made. Can you maybe, you know, just talk to us about is the buildout ongoing? Is there a focused effort to upscale the investment banking business even more in terms of the reach and breadth of the business and maybe what a long-term revenue contribution from that business that you anticipate?

Speaker Change: Okay, great. Thanks, Senator Clarke. And then separately on the fee side, you know, just I know you mentioned relatively stable in terms of the non-interest income outlook for the third quarter. Maybe can you talk about fourth quarter a little bit, how we should think about the progression into fourth quarter and into 25. And then separately as part of that,

Speaker Change: On the investment banking side, you made some, you know, pretty solid talent acquisition and you cited the intent.

John G. Pancari: Can you maybe, you know, just talk to us about is the build out ongoing? Is there a focused effort to upscale the investment banking business even more in terms of the reach and breadth of the business, and maybe what is the long-term revenue contribution from that business that you anticipate? Maybe I'll start with the latter, Mike, and then I'll turn it over to you for the forms. That's okay.

Speaker Change: that you're investing there and the progress you've made. Can you maybe, you know, just talk to us about...

Speaker Change: Is the build-out ongoing? Is there a focused effort to upscale the investment banking business even more in terms of the reach and breadth of the business and maybe what a long-term revenue contribution from that business that you anticipate?

William Rogers: Yeah, maybe I'll start with the latter mic, and then I'll turn over to you for the forms. That's okay. So that, you know, the buildout of the investment banking business has been, you know, decades plus; you know, so this isn't sort of a new thing and so that it has been consistent. I think the way you described it, you know, is exactly right. We'll continue to build where we have relevance and where we have opportunity. And so we can be, you know, competitive and win in our markets. I think the part that gets missed, those investment we're making around the investment banking business.

Speaker Change: Maybe I'll start with the latter, Mike, and then I'll turn it over to you for the forms. That's okay. So, you know, the build out of the investment banking business has been, you know, decades plus. You know, so this isn't sort of a new thing, and so it has been consistent, I think, the way you described it.

William Henry Rogers: You know, the build-up of the investment banking business has been, you know, decades plus, you know, so this isn't sort of a new thing. And so it has been consistent, I think the way you described it is exactly right.

William Henry Rogers: We'll continue to build where we have relevance where we have opportunity And so we can be you know competitive And win in our markets. I think the part that gets missed though is investment We're making around the investment banking business. So this is the investment that we're making with our you know commercial teams and our middle market teams and expanding their knowledge and capability to talk to clients about the things that are available to them and so think about the amount of clients in our commercial business that are now private equity owned and our capability to be Relevant in those discussions and help them along that along that flight path So the investments not just in the business itself, but it's in everything that surrounds the business and in and in and in support of You know, we like the pace that we're growing and we think we've had a really good cagor If you sort of go back over time and look at the cagor of that business You'd sort of say that's a really good growth pattern Importantly, we're doing it profitably which is also important So we have a really good efficiency of that business certainly on a on a relative basis And we want to keep all of those in check.

Mike: You know it's exactly right, we'll continue to build where we have relevance, where we have opportunity, and so we can be competitive and win in our markets.

Speaker Change: I think the part that gets missed, though, is the investment we're making around the investment banking business.

William Rogers: So this is the investment that we're making with our, you know, commercial teams and our middle market teams and expanding their knowledge and capability to talk to clients about the things that are available to them. And so think about the, you know, the amount of clients and our commercial business that are now private equity owned and our capability to be relevant in those discussions and help them along that flight path. So investments, not just in the business itself, but it's in everything that surrounds the business and in support of, you know, we like the pace that we're growing.

Speaker Change: You know commercial teams and our middle market teams and expanding their knowledge and capability to talk to clients about the things that are available to them and so think about

Speaker Change: The amount of clients in our commercial business that are now private equity owned and our capability to be Relevant in those discussions and help them along that along that flight path so the investments not just in the business itself but it's in everything that surrounds the business and in and in and in support of

William Rogers: I think we've had a really good keger. If you sort of go back over time and look at the keger of that business, you sort of say that's a really good growth pattern. Importantly, we're doing it profitably, which is also important. So we have a really good efficiency of that business, certainly on a, on a relative basis. And we want to keep all of those in check. I mean, we don't want to grow faster than the market, you know; we want to grow coincident with the opportunity that we have within our markets. We want to do it profitably, and we want to do it sustainably.

Speaker Change: We like the pace that we're growing, and I think we've had a really good CAGR. If you go back over time and look at the CAGR of that business, you'd say that's a really good growth pattern.

Speaker Change: Importantly, we're doing it profitably, which is also important, so we have a really good efficiency of that business, certainly on a relative basis, and we want to keep all of those in check. I mean, we don't want to...

William Henry Rogers: I mean, we don't want to grow faster than the market. Oh, you know, you know, we want to grow coincident with the opportunity that we have within our markets. We want to do it profitably, and we want to do it sustainably. So we want to have a little less variability Relative to that business.

Speaker Change: We want to grow faster than the market, you know, we want to grow coincident with the opportunity that we have within our markets. We want to do it profitably and we want to do it sustainably.

William Rogers: So when I have a little less variability relative to that business, so it's tied to more of our core client capability, then, you know, the vagaries of a particular mark.

Michael Baron Maguire: So it's tied to more of our core client capability than you know, the vagaries of a particular market. I think you asked just about trajectory for the second half for fees. You know, I think some, you know, you don't know, put some puts in to take our outlook is relatively stable, really, for the second half. So call it stable, stable. And the upside to that is, yeah, I mean, the upside is if business is better. We're trying to take an approach with what we know right now. Great, thank you. The next question comes from Mike Mayo with Wells Fargo. Please go ahead.

Speaker Change: We want to have a little less variability relative to that business, so it's tied to more of our core client capability than the vagaries of a particular market.

Michael Maguire: Yeah, John, you asked just about trajectory for the second half for fees. You know, I think some, you know, you don't know, so you know, put some puts to take our outlook is relatively stable, really for the second half, so call it stable, stable. And the upside to that is the big read. Yeah, maybe upside as if business has been, you know, we're trying to take an approach with what we know right now. Great. Thank you.

Speaker Change: John , I think you asked just about trajectory for the second half for fees. You know, I think some, you know, you don't have to, you know, put some puts to take. Our outlook is relatively stable, really, for the second half. So call it stable, stable.

Speaker Change: And the upside to that is if business is better, you know, we're trying to take an approach with what we know right now.

John G. Pancari: Great, thank you.

Mike Mayo: Next question comes from Mike Mayo with Wells Fargo; please go ahead. Hey, not a new question, but it goes back to your efficiency ratio and your expense guide, and you mentioned higher in the third quarter, and maybe any preview for next year or how you're thinking about that. And that's partly in the context. There's a Bloomberg story out saying that 11 of the 20,000,000 22 large banks fall short on operational risk according to the OCC. Now that's not confirmed by the OCC. There's no specific companies given. I know you're not allowed to say what your regulatory ratings are.

Speaker Change: The next question comes from Mike Mayo with Wells Fargo. Please go ahead.

Michael Lawrence Mayo: Hey, not a new question, but it goes back to your efficiency ratio and your expense guide. And you mentioned higher in the third quarter and maybe any preview for next year or how you're thinking about that. And that's partly in the context. There's a Bloomberg story out saying that 11 of the 22 large banks fall short on operational risk, according to the OCC. Now, that's not confirmed by the OCC.

Michael Lawrence Mayo: Hey. Um.

Michael Lawrence Mayo: Not not a new question, but it goes back to your efficiency ratio and your expense guide and you mentioned higher in the third quarter and maybe any preview for next year or how you're thinking about that and That's partly in the context. There's a Bloomberg story out saying that 11 of the 22 large banks

William Henry Rogers: You or any other bank did have a deficient operational risk rating. What would that mean? Would it mean?

Speaker Change #100: fall short on operational risk according to the OCC. Now that's not confirmed by the OCC. There's no specific companies given. I know you're not allowed to say what your regulatory ratings are, but if

Mike Mayo: But if you or any other bank did have a deficient operational risk rating, what would that mean? What would that mean? Are you able to say if you had ever been in that position in the past five years? I know you had some operational issues that you worked through. And also know, Bill, that you know, your purpose is being open every day for your clients and employees and your community. So I know you put that as a very high priority. So what degree has that hurt the efficiency in the past few years? And to what degree could that still be a drag on efficiency going ahead?

Speaker Change: You or any other bank did have a deficient operational risk rating. What would that mean? Would it mean...

Michael Lawrence Mayo: I don't know. What would that mean? Are you able to say if you have ever been in that position in the past five years? I know you had some operational issues that you worked through. And I also know, Bill, that your purpose is being open every day for your clients and employees and your community. So I know you put that as a very high priority. So to what degree has that hurt efficiency in the past few years? And to what degree could that still be a drag on efficiency going forward? Thanks.

Speaker Change: I don't know, what would that mean? Are you able to say if you had ever been in that position in the past five years? I know you had some operational issues that you worked through. And I also know, Bill, that your purpose is being open every day for your clients and employees and your community. So I know you put that as a very high priority. So what degree has...

Speaker Change: That hurt the efficiency in the past few years, and to what degree could that still be a drag on efficiency going ahead? Thanks.

Michael Maguire: Thanks. Yeah, Mike. You answer answered answered part of your question as it relates to what we're coming on and not coming on. But look, I've said very consistently, actually, since the, you know, since the day Truest was formed, is, you know, the size and complexity of our organization. We're going to invest in our risk framework. We're going to invest in a durable risk framework so we can stay competitive. We can stay appropriate with our, with our regulators. And that's always been part of this expense profile. So I think, I think even in today's prepared remarks.

William Henry Rogers: Yeah, Mike, you asked and answered part of your question as it relates to what we'll comment on and not comment on. But look, I've said very consistently, actually, since the day Truist was formed, we are going to invest in our risk framework, we are going to invest in a durable risk framework, so we can stay competitive, and we can stay compliant with our regulators. And that's always been part of this expense profile. So I think, I think even in today's prepared remarks, I mean, I'm always consistent with that.

Speaker Change #104: Yeah, Mike, you asked and answered part of your question as it relates to what we'll comment on and not comment on. But look, I've said very consistently actually since the day Truist was formed is,

Speaker Change: You know, the size and complexity of our organization, we're going to invest in our risk framework. We're going to invest in a durable risk framework.

Speaker Change: So we can stay competitive, we can stay appropriate with our regulators, and that's always been part of this expense profile. So I think even in today's prepared remarks, I mean, I'm always consistent with that, and I think everybody's got to stay in that mode.

Michael Maguire: I mean, I'm always consistent with that. And I think everybody's got to stay in that mode, you know, post, you know, post of March of last year. You know, irrespective of anybody's ratings, there was just an increased focus on creating a durable, you know, risk profile. So we're going to continue to be in that mode. I can't see that changing short term, medium term, or long term. Are there peaks and valleys in that as you go, as you go up? Yes. Does it increase proportionally? Absolutely. I mean, I just think that's the, you know, that's the price of being in our business.

William Henry Rogers: And I think everybody's got to stay in that mode, you know, post, you know, post-March of last year, irrespective of anybody's ratings, there was just an increased focus on creating a durable, you know, risk profile. So we're going to continue to be in that mode. I can't see that changing short term, medium term, or long term. Are there peaks and valleys in that as you go?

Speaker Change: in a post-

Speaker Change: Post of March of last year, irrespective of anybody's ratings, there was just an increased focus on creating a durable risk profile. So we're going to continue to be in that mode.

Speaker Change: I can't see that changing short-term, medium-term, or long-term. Are there peaks and valleys in that as you go up? Yes.

William Henry Rogers: Yes. But is that going to increase proportionately? Absolutely. I just think that's the price of being in our business and also the importance of creating a durable, sustainable risk framework for a company of our size and a company of our opportunity. Well, the $20 billion market cap question relates to the last part of your answer, which is for a company of our size. So I'm just wondering, and it's an ongoing question, to what degree does that invest in the risk framework? Truist disproportionately versus banks larger than your size, and how has that changed?

Speaker Change: Does it increase proportionally? Absolutely. I mean, I just think that's the, you know, that's the price of being in our business and also the importance of creating a durable, sustainable risk framework for a company of our size and a company of our opportunity.

Michael Maguire: And also the importance of creating a durable, sustainable. Risk framework for a company of our size and a company of our opportunity. Well, the 20 billion dollar market cap question relates to the last part of your answer is for a company of our size. So I'm just wondering, and it's an ongoing wonder to what degree does that invest in the risk framework. Truist disproportionately versus banks larger than your size. And how has that changed? Yeah, I mean, there are efficient frontiers as the way Mike that I like to talk about it. There are efficient frontiers and where you are on the efficient frontier relative to that.

Speaker Change #102: Well the 20 billion dollar market cap question relates to the last part of your answer is for a company of our size. So I'm just wondering, and it's an ongoing wonder, to what degree does that investment in the risk framework

Speaker Change #101: Truist disproportionately versus banks larger than your size, and how has that changed?

Michael Lawrence Mayo: Yeah, I mean, there are efficient frontiers is the way, Mike, that I like to talk about it. There are efficient frontiers and where you are on the efficient frontier relative to that. Today, I feel like we're in a good place. So, we're in a good place in terms of the investments that we need and should make relative to our company, our size, and our ability to return and have an efficient company relative to that.

Speaker Change #101: Yeah, I mean, there are efficient frontiers is the way, Mike, that I like to talk about it. There are efficient frontiers and where you are on the efficient frontier relative to that.

Michael Maguire: Today, I feel like we're in a good place. So we're in a good place in terms of the investments that we need and should make relative to our company, our size and our ability to return and have an efficient company relative to that. So I think we're at a good place, but that efficient frontier moves, you know, so you always have to be flexible and think about that in the context of where it moves, and we're conscious of that. So, you know, today, I feel like we're in a good place. By the way, we merged our companies because we thought we were in a different place and that that was going to be more complex and we needed to have a company of the size and scale sort of seen.

Speaker Change #103: Today, I feel like we're at a good place, so we're at a good place in terms of the

Speaker Change #103: Investments that we need and should make relative to our company, our size, and our ability to return and have an efficient company relative to that. So I think we're at a good place. But that efficient frontier moves.

Michael Lawrence Mayo: So, I think we're in a good place. But that efficient frontier moves, you know, so you always have to be flexible and think about that in the context of where it is moving, and we're conscious of that.

Speaker Change #103: You know, so you always have to be flexible and think about that in the context of where it moves. And we're conscious of that. So, you know, today, I feel like we're in a good place. By the way, we merged our companies because we thought we were in a different place.

William Henry Rogers: So, you know, today, I feel like we're in a good place. By the way, we merged our companies because we thought we were in a different place and that that was going to be more complex, and we needed to have a company of the size and scale we had seen. I mean, we didn't project March of last year, in fairness, but understanding that the complexity and the durability and the... Investments needed to create that kind of risk platform were going to be needed. So that efficient frontier, I think we're at a good place on it, but it does move. And lastly, a short follow up, the definition of a good place as relates to 2025.

Speaker Change #103: that was going to be more complex and we needed to have a company of the size and scale sort of seen. I mean, we didn't project March of last year, in fairness, but, but understanding that the complexity and the durability and the

Michael Maguire: I mean, we didn't project March of last year, in fairness, but understanding that the complexity and the durability and the investments needed to create that kind of risk platform was going to be needed. So that efficient frontier, I think we're at a good place on it, but it does move.

Speaker Change #103: investments needed to create that kind of risk platform was going to be needed. So that efficient frontier, I think we're at a good place on it, but it does move.

William Henry Rogers: And my short follow-up, the definition of good place as relates to 2025. I know usually don't give guidance for a few quarters from now, but other banks have mentioned record NII, positive offer leverage, lower expenses next year. Can you give us a sneak peek of good place as relates to 2025 financials? Yeah, I mean, our sneak peek is the momentum we're creating right now. You know, so that's the sneak peak, and we want to continue to do that. You know, Mike, you know, I've talked about this. I mean, we have a strong focus on positive operating leverage.

Michael Lawrence Mayo: I know you usually don't give guidance for a few quarters from now, but other banks have mentioned record NII, positive operating leverage, and lower expenses next year. Can you give us a sneak peek of what a good place as relates to 2025 financial? Yeah, I mean, our sneak peek of the momentum we're creating right now, you know, so that's the secret. And we want to continue to do that. You know, Mike, you know, I've talked about this.

Speaker Change #105: And last short follow-up, the definition of good place as it relates to 2025, I know you usually don't give guidance for a few quarters from now, but other banks have mentioned.

Speaker Change #106: Record NII, Positive Operating Leverage, Lower Expenses next year. Can you give us a sneak peek of GoodPlace as it relates to 2025 financials?

Speaker Change #107: Yeah, I mean, our sneak peek is the momentum we're creating right now, you know, so that's the sneak peek, and we want to continue to do that.

William Henry Rogers: I mean, we have a strong focus on positive operating leverage. So all of our businesses have plans that are focused on positive operating leverage. That's what they try to build over time.

Speaker Change #107: You know, Mike, you know, I've talked about this, I mean, we have a strong focus on positive operating leverage. So all of our businesses have plans that are focused on positive operating leverage. That's what they try to build over time.

William Rogers: So all of our businesses have plans that are focused on positive operating leverage. That's what they try to build over time. You know, the controllable more controllable factor over that is on the expense side right now. And I'm really pleased with the progress for making and expect to continue to have that kind of discipline going forward. Those expenses will better reflect the revenue opportunity that we see in next year. So, you know, be sure that we've got a focus on creating that. But also be confident that we're building momentum. And I think this order is good evidence of that.

Michael Lawrence Mayo: You know, the controllable, more controllable factor in that is on the expense side right now. And I'm really pleased with the progress we're making and expect to continue to have that kind of discipline going forward. Those expenses will better reflect the revenue opportunity that we see next year. So, you know, be assured that we've got to focus on creating that, but also be confident that we're building momentum. And I think this order is good evidence of that. And our guidance for the rest of the year is good evidence of that. Okay, thank you. The next question comes from Ebrahim Poonawala with Bank of America. Please go ahead. Hey, good morning.

Michael Lawrence Mayo: You know, the controllable, more controllable factor over that is on the expense side right now, and I'm really pleased with the progress we're making.

Michael Lawrence Mayo: I expect to continue to have that kind of discipline going forward.

Michael Lawrence Mayo: Those expenses will better reflect the revenue opportunity that we see in next year.

Michael Lawrence Mayo: You know, be assured that we've got to focus on creating that, but also be confident that we're building momentum. And I think this order is good evidence of that, and our guidance for the rest of the year is good evidence of that.

William Rogers: And I've got it for the rest of the year. Is good evidence of that.

Ibrahim Kunawala: Okay, thank you.

Speaker Change #108: Okay, thank you.

Ibrahim Kunawala: The next question comes from Ibrahim Kunawala with Bank of America.

Speaker Change #108: The next question comes from Ebrahim Poonawala with Bank of America. Please go ahead.

Ibrahim Kunawala: Please go ahead.

Ibrahim Kunawala: Hey, good morning. Just a quick follow-up bill on your response to Mike's question. As we think about, I just want to make sure we understand this correctly. As we think about next year. X any sort of revenue momentum taking sort of the top line higher should we expect expenses like the streets expecting about 2.9 to 3 billion per quarter and expense on rate continuing in 25. Is that fair to assume all the sequel absent for a revenue growth?

Ebrahim Huseini Poonawala: Just a quick follow-up, Bill, on your response to Mike's question. As we think about this, I just want to make sure we understand this correctly. As we think about next year, X, any sort of revenue momentum taking the sort of top line higher, should we expect expenses like the streets are expecting about 2.9 to 3 billion per quarter in expenses on a rate continuing in 25? Is that fair to assume all is an equal absence of revenue growth? Yeah, thanks. I'm not going to give you expense guidance for next year.

Ebrahim Huseini Poonawala: Hey, good morning. Just a quick follow-up, Bill, on your response to Mike's question.

Ebrahim Huseini Poonawala: As we think about, I just want to make sure we understand this correctly.

Ebrahim Huseini Poonawala: As we think about next year, X, any sort of revenue momentum taking sort of the top line higher.

Speaker Change #110: Should we expect expenses like the streets expecting about 2.9 to 3 billion per quarter in expense on rate continuing in 2025? Is that fair to assume all else equal absence out of revenue growth?

William Rogers: Yeah, I'm not going to give expense guidance for next year. Just to say, you know, confidence that will be focused on positive operating leverage; confidence that we've got great expense discipline. And expenses will more parallel the revenue opportunity. You know, so if we see. You know, the investments that we're making. Better growth opportunities in our markets, we're going to take advantage of that, and if that requires, you know, a requisite expense increase, then we'll do that. That will all be in the appropriate context, a focus on positive operating leverage and efficient company that has high returns.

Speaker Change #111: I'm not going to give expense guidance for next year, just to say, you know, confidence that we'll be focused on positive operating leverage, confidence that we've got great expense discipline, and expenses will more parallel the revenue opportunity, you know, so if we see.

William Henry Rogers: Just to say, you know, confidence that we'll be focused on positive operating leverage, confidence that we've got great expense discipline, and expenses will more closely parallel revenue opportunities. You know, so if we see, you know, the investments that we're making, better growth opportunities in our markets, we're going to take advantage of that. And if that requires a, you know, requisite expense increase, then we'll do that.

Speaker Change #111: You know, the investments that we're making.

Speaker Change #111: Expense Increase, then we'll do that, but that'll all be in the appropriate context, a focus on positive operating leverage, an efficient company that has high returns.

William Henry Rogers: But that'll all be in the appropriate context of focus on positive operating leverage and an efficient company that has a high return. Noted. And just one quick follow-up, maybe if you could remind us, post-sort of the acquisition integration, where we stand in terms of any big tech upgrades coming on the deposit lending platform that we think about for the next year or two. Thanks.

William Rogers: Though, did I just one quick follow-up, maybe if you could remind us, post sort of the acquisition integration, where we stand in terms of any big tech upgrades coming on the deposit lending platforms that we think about the next year or two. Thanks. Yeah, I mean, the old that's been factored into the discussions that we have. I mean, our ability, you know, this year, particularly to invest a lot on the payment side is all predicated on the existing platforms that we have. The advent of the use of APIs have been really, really great opportunities to continue invest.

Speaker Change #112: Noted and just one quick follow-up maybe if you could remind us post sort of the acquisition integration where we stand in terms of any big tech upgrades coming on the deposit lending platform that we think about the next year or two. Thanks.

William Henry Rogers: Yeah, I mean, all that's been factored into the discussions that we have. I mean, our ability, you know, this year, particularly to invest a lot in the payment side, is all predicated on the existing platforms that we have. The advent of the use of APIs has been really, really great opportunities to continue to invest. We had huge investments in our lending portfolios as part of the merger. You know, so there's no like one big stow step, you know, a sequenced investment.

Speaker Change #113: Yeah, I mean, all that's been factored into the discussions that we have. I mean, our ability, you know, this year particularly to invest a lot in the payment side.

Speaker Change #113: is all predicated on the existing platforms that we have, the advent of.

Speaker Change #113: The use of APIs have been really, really great opportunities to continue to invest. We had huge investments in our lending portfolios as part of the merger, you know, so there's no like one big stair step.

William Rogers: We had huge investments in our lending portfolios as part of the merger. You know, so there's no like one big stuff, you know, sequenced investment. These are continuous investments in our platform and capabilities over time. And as it's safe to assume that, from a tech platform standpoint, the course is not at a disadvantage relative to peers who probably have not done deals and just been working on. There's an impression out there that you have a lot more sort of heavy lifting to do there. Let's put you back. Sounds like that's not the case, but just want to confirm.

Speaker Change #113: You know, sequenced investment, these are continuous investments in our platform and capabilities over time.

William Henry Rogers: These are continuous investments in our platform and capabilities over time. And is it safe to assume that, from a tech platform standpoint, Truist is not at a disadvantage relative to peers who probably have not done deals and just been working on... There's an impression out there that you have a lot more sort of heavy lifting to do there that's set you back. Sounds like that's not the case, but just wanted to confirm.

Speaker Change #114: And is it safe to assume that from a tech platform standpoint, Truist is not at a disadvantage relative to peers who probably have not done deals and just been working on, there's an impression out there that you have a lot more sort of heavy lifting to do there that's put you back. Sounds like that's not the case, but just wanted to confirm.

Ebrahim Huseini Poonawala: Well, the momentum we've seen in the last several quarters, the impression from our clients is that we have a really good platform. So, you know, our acquisition of clients, our performance metrics, client satisfaction scores, all the things that we look at in terms of, you know, how our clients think about us are really positive and continuing. Excellent. Thank you. Thank you, Bill. We will take our last question today from Matt O'Connor with Deutsche Bank. Please go ahead. Good morning.

William Rogers: Well, the momentum we've seen in the last several quarters, the impression from our clients is that we're, we have a really good platform. So, you know, our acquisition of clients, our performance metrics, clients, satisfaction scores, all the things that we look in terms of, you know, how do clients think about us is real positive and continuing.

Speaker Change #115: Well, the momentum we've seen in the last several quarters, the impression from our clients is that we have a really good platform.

Speaker Change #116: So, you know, our acquisition of clients, our performance metrics, client satisfaction scores, all the things that we look in terms of, you know, how do clients think about us is real positive and continuing.

Unknown Executive: Excellent. Thank you.

Speaker Change #116: Excellent. Thank you.

Matt O'connor: We will pick our last question today from Matt O'Connor with Deutsche Bank. Please go ahead.

Speaker Change #117: We will take our last question today from Matt O'Connor with Deutsche Bank. Please go ahead.

Matt O'connor: Good morning. I'm just leaving the end. You know, you kind of implied the loans and the positive bounces might be down a little bit again in three two. If I heard that correctly, and they were down a little bit in two, two.

Matt O'connor: Thanks for squeezing in. You kind of implied the loans and deposit balances might be down a little bit again in 3Q, if I heard that correctly. And they were down a little bit in 2Q here. Just thoughts on where they are going.

Matt O'connor: Good morning. Thanks for squeezing in. You kind of implied the loans and deposit balances might be down a little bit again in 3Q.

Matt O'connor: If I heard that correctly, and they were down a little bit in 2Q here, just thoughts on where they bought them.

Matt O'connor: Here are just thoughts on where they bottom. And I understand like when we're looking at industry data, where there's less than one percent long growth, like we're talking about really small numbers. But it seems like there's still kind of lagging the HAT data a little bit. And it's understandable, given how much has been going on in the company. You talked about, you know, spending more than marketing and hiring people. But just thoughts on kind of with those level out and you start tracking the HAT data a little bit more.

Speaker Change #119: And I understand like when we're looking at industry data where there's less than 1% loan growth, like we're talking about really small numbers.

Michael Baron Maguire: And I understand that when we're looking at industry data where there's less than 1% loan growth, like we're talking about really small numbers, but it seems like you're still kind of lagging the H8 data a little bit. And it's understandable given how much has been going on in the company. And you talked about spending more on marketing and hiring people, but just thoughts on kind of where those level out and you start tracking the H8 data a little bit more, some relief.

Speaker Change #120: It seems like you're still kind of lagging the H8 data a little bit, and it's understandable given how much has been going on in the company, and you talked about spending more in marketing and hiring people, but just thoughts on kind of where those level out, and you start tracking the H8 data a little bit more.

Michael Maguire: Thank you. And Matt, thanks for the question. Maybe just taking loans first, you know, we were hopeful we'll see some relief. We were down, you know, a little less than a percent of this quarter average. And the third quarter, I think, you know, again, base case, probably expected to be down. Maybe not quite as much. We'd love to see that be different. But that's what we're thinking about. And then hopefully kind of stable, you know, from there; same on deposits. Actually, deposits a little lower perhaps in the third. We mentioned that we felt like we had some out performance in the second quarter.

Speaker Change #120: Hey Matt, thanks for the question.

Speaker Change #121: Maybe just taking loans first, you know, we're hopeful we'll see some relief. We were down, you know, a little less than a percent this quarter average in the third quarter. I think, you know, again, base case probably expected to be down, maybe not quite as much. We'd love to see that be different.

Michael Baron Maguire: We were down, you know, a little less than a percent this quarter average. In the third quarter, I think, you know, again, the base case is probably expected to be down, maybe not quite as much. We'd love to see that be different.

Michael Baron Maguire: But that's sort of what we're thinking about. And then hopefully, kind of stable, you know, from there. Same on deposits.

Speaker Change #121: But that's sort of what we're thinking about. And then hopefully kind of stable, you know, from there, same on deposits, or actually deposits a little lower, perhaps in the third, we mentioned that we felt like we had some outperformance.

Michael Baron Maguire: Actually, deposits a little lower, perhaps in the third. We mentioned that we felt like we had some outperformance in the second quarter. We did, you know, late in the quarter, just like a lot of others, some of the just sort of seasonality and tax payments. We saw, you know, balances a little lower at the end of the quarter. That's not unusual.

Michael Baron Maguire: We did, you know, late in the quarter, just like a lot of others. Some of the just sort of seasonality and tax payments. We saw, you know, balances a little lower at the end of the quarter. That's not unusual. So we probably expect a little bit of pressure in the third quarter as well. But again, even that stabilizing in the fourth. So think down a touch in the third for both and then hopefully stable in the fourth.

Speaker Change #121: In the second quarter, we did, you know, late in the quarter, just like a lot of others, some of the just sort of seasonality and tax payments we saw.

Speaker Change #121: [inaudible]

Matt O'connor: So we'll probably expect a little bit of pressure in the third quarter as well, but again, even that stabilizing in the fourth. So think down a touch in the third for both, and then hopefully, stable in the fourth.

Unknown Executive: Elyse Greenspan. Okay, that's helpful.

William Henry Rogers: Okay, that's helpful. And then, you know, just as you think about it, [inaudible] Yeah, sure. Rest assured that our teammates are highly focused. And, you know, there are places that we can dial more specifically, and you've seen it. Our consumer production was up 37% over a linked quarter, premier banking, lending numbers sort of similar per branch production, those type things. So the places that we can, you know, we can dial in a little bit.

William Rogers: And then, you know, just as you think about restarting kind of the loan deposit engine internally, you know, you did allude to the marketing and hiring people, but what's like the process of just getting a message out to kind of existing employees: like you got all this capital, you got all this liquidity; like you could be front footed. And I know it takes time to kind of flip the switch. Again, especially in the environment where there's still little kind of blows out there. But you know, just touch on a couple of things. What things you're doing to drive?

Speaker Change #122: Okay, that's helpful. And then, you know, just as you think about...

Speaker Change #123: Restarting the Loan Deposit Engine.

Speaker Change #125: Internally, you know, you did allude to the marketing and hiring people, but what's like the process of just getting the message out to kind of existing employees, like you got all this capital, you got all this liquidity, like you could be front footed.

Speaker Change #124: And I know it takes time to kind of flip the switch, again, especially in an environment where there's still little kind of growth out there, but, you know, just touch on a couple of things you're doing to drive that.

William Rogers: Yeah, sure. Reps to sure that our teammates are highly focused. And, you know, the places that we can, that we can dial more specifically, and you sort of seen it, our consumer production was up 37% over a linked quarter; premier banking lending numbers, sort of similar per branch production, those type of things. So the places that we can, you know, we can dial in a little bit. And then on the, you know, on the wholesale side, it's just a lot about training. It's a lot about hiring. It's a lot about, you know, market opportunities; a lot about dialogue with clients.

Speaker Change #130: Yeah, sure. Rest assured that our teammates are highly focused and, you know, there are places that we can dial more specifically and you sort of seen it. Our consumer production was up 37% over a linked quarter.

Speaker Change #126: Premier Banking, Lending Numbers, sort of similar per branch production, those those type things. So the places that we can, you know, we can dial in a little bit.

William Henry Rogers: And then on the wholesale side, it's just a lot about training, it's a lot about hiring, it's a lot about, you know, market opportunities, it's a lot about dialogue with clients. So we look at all the, you know, pitches, you know, kind of, approach, and we're seeing, you know, really good activity. But our teammates are on offense, may make look, there'd be no confusion. I mean, our teammates are on offense; they're not in a defensive position.

Speaker Change #126: And then on the wholesale side, it's just a lot about training.

William Rogers: So we look at all the, you know, pitches, you know, kind of approach. And we're seeing, you know, really good activity. But our teammates are on offense; may make let there be no confusion. I mean, our teammates are on offense. They are not in a defensive position. Trust me, the shift for them happened quite quickly. You know, there was a, you know, you could hear it and feel it in terms of momentum. People are attracted to come work for our franchise for some of the same reasons as we have the capital and capability to invest in the future.

Speaker Change #126: market opportunities, a lot about dialogue with clients. So we look at all the...

Speaker Change #126: Pitches, you know, kind of approach, and we're seeing, you know, really good activity.

Speaker Change #128: But our teammates are on offense. Let there be no confusion. I mean, our teammates are on offense. They are not in a defensive position.

William Henry Rogers: Trust me, the shift for them happened quite quickly. You know, there was a, you could hear it and feel it. In terms of momentum, people are attracted to come work for our franchise for some of the same reasons as we have the capital and capability to invest in the future. So, you know, rest assured that your points are right. I mean, the battleship, it's hard to turn, you know, but that, in terms of its direction, clear direction, clear communication, and clear focus from our team. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Brad Milsaps for any closing remarks. Okay, thank you.

Speaker Change #129: Trust me, the shift for them happened quite quickly. You know, you could hear it and feel it in terms of momentum. People are attracted to come work for our franchise for some of the same reasons, as we have the capital and capability to invest in the future.

William Rogers: So, you know, rest assured that your points write them in the battleship. It's hard to turn, you know, but that, but in terms of its direction, clear direction, clear communication, and clear focus from our teams. Thank you.

Speaker Change #126: You know, rest assured that your point's right. I mean, the battleship, it's hard to turn, you know, but in terms of its direction, clear direction, clear communication, and clear focus from our teams.

Unknown Executive: Thanks, Matt. This concludes our question and answer session.

Matt: Thank you. Thanks, Matt.

Bradley Jason Milsaps: I would like to turn the conference back over to Brad Mills. That's for any closing remarks. Okay. Thank you. That completes our orange call. If you have any additional questions, please feel free to reach out to the Investor Relations team. Thank you for your interest and trust. And we hope you have a great day.

Matt: This concludes our question and answer session. I would like to turn the conference back over to Brad Milsaps for any closing remarks.

Bradley Jason Milsaps: That concludes our earnings call. If you have any additional questions, please feel free to reach out to the investor relations team. Thank you for your interest in Truist, and we hope you have a great day. Betsy, you may now disconnect the call. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Bradley Jason Milsaps: Okay, thank you. That completes our earnings call. If you have any additional questions, please feel free to reach out to the investor relations team. Thank you for your interest in Truist, and we hope you have a great day. Betsy, you may now disconnect the call.

Unknown Executive: Betsy, you now make; you may, you may now disconnect the call.

Unknown Executive: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change #131: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.