Q4 2025 Truist Financial Corp Earnings Call

January 21, 2026

Speaker #1: Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation fourth quarter 2025 earnings conference call. Currently, all participants are in a listen-only mode.

Operator: Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation Q4 2025 earnings conference call. Currently, all participants are in a listen-only mode. 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 Milsaps.

Operator: Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation Q4 2025 Earnings Conference Call. Currently, all participants are in a listen-only mode. 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 Milsaps.

Speaker #1: 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.

Speaker #1: Milsaps: Thank you, Betsy, and good

Bradley Milsaps: Thank you, Betsy, and good morning, everyone. Welcome to Truist Q4 2025 earnings call. With us today are our Chairman and CEO, Bill Rogers, our CFO, Mike Maguire, our Chief Risk Officer, Brad Binder, as well as other members of Truist's senior management team. During this morning's call, they will discuss Truist's Q4 and 2025 results, share their perspectives on current business conditions, and provide an updated outlook for 2026. The accompanying presentation, as well as our earnings release and supplemental financial information, are available on the Truist Investor Relations website, ir.truist.com. Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slides two and three of the presentation regarding these statements and measures, as well as the appendix for appropriate reconciliations to GAAP. With that, I'll turn it over to Bill.

Q4 2025 Truist Financial Corp Earnings Call

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Q4 2025 Truist Financial Corp Earnings Call

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Wednesday, January 21st, 2026 at 1:00 PM

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William H. Rogers Jr.: Some of these significant investments include enhancing our tech and digital capabilities in areas like AI and improving the client experience, recruiting and developing talented teammates to advise and serve clients with more complex and industry-specific financial needs, announcing plans to open 100 new insight-driven branches in high-growth markets, as well as enhancements to more than 300 branch locations in all markets. These investments underscore our commitment to the communities we serve and position us to deliver more personalized advice and create opportunities for outsized growth. As we enter 2026, our purpose continues to guide our focus on growth, profitability, and deeper client relationships. We're expanding our presence and delivering more differentiated, advice-driven experiences. I look forward to sharing more of these priorities during today's call. Now, let's turn to slide five. We closed 2025 with strong results and clear momentum heading into 2026.

Some of these significant investments include enhancing our tech and digital capabilities in areas like AI and improving the client experience, recruiting and developing talented teammates to advise and serve clients with more complex and industry-specific financial needs, announcing plans to open 100 new insight-driven branches in high-growth markets, as well as enhancements to more than 300 branch locations in all markets. These investments underscore our commitment to the communities we serve and position us to deliver more personalized advice and create opportunities for outsized growth. As we enter 2026, our purpose continues to guide our focus on growth, profitability, and deeper client relationships. We're expanding our presence and delivering more differentiated, advice-driven experiences. I look forward to sharing more of these priorities during today's call. Now, let's turn to slide five. We closed 2025 with strong results and clear momentum heading into 2026.

William H. Rogers Jr.: First, we continue to generate strong, broad-based loan growth in both wholesale banking and consumer and small business banking, driven by new loan production and increased client acquisition. Second, strong loan growth, better second-half results in investment banking, trading, and wealth, along with continued expense discipline, drove 100 basis points of positive adjusted operating leverage in 2025. Third, we made significant investments across our business in talent and technology, laying the foundation for future growth, which we expect to accelerate in 2026. Fourth, we maintained strong asset quality metrics as net charge-offs declined versus 2024, and non-performing loans remained relatively stable. Finally, we returned $5.2 billion of capital to shareholders through our common stock dividend and the repurchase of $2.5 billion of our common stock. Our total capital return in 2025 reflects a 37% increase over 2024.

First, we continue to generate strong, broad-based loan growth in both wholesale banking and consumer and small business banking, driven by new loan production and increased client acquisition. Second, strong loan growth, better second-half results in investment banking, trading, and wealth, along with continued expense discipline, drove 100 basis points of positive adjusted operating leverage in 2025. Third, we made significant investments across our business in talent and technology, laying the foundation for future growth, which we expect to accelerate in 2026. Fourth, we maintained strong asset quality metrics as net charge-offs declined versus 2024, and non-performing loans remained relatively stable. Finally, we returned $5.2 billion of capital to shareholders through our common stock dividend and the repurchase of $2.5 billion of our common stock. Our total capital return in 2025 reflects a 37% increase over 2024.

William H. Rogers Jr.: Looking ahead, our strategic priorities remain unchanged and our focus clear: accelerate revenue growth, drive greater positive operating leverage, continue to invest while maintaining our expense and risk discipline, and return capital to shareholders at an accelerated rate. Executing on these strategic priorities is central to improving profitability and achieving our long-term goals, including our commitment to deliver a 15% return on tangible common equity in 2027. So, in summary, we closed 2025 on a strong note and entered 2026 with significant momentum and confidence in our ability to deliver revenue growth at least twice the pace of 2025, greater positive operating leverage, higher levels of capital return, and improved profitability. Before I hand the call over to Mike to discuss our quarterly results, I want to spend some time discussing the positive momentum we're seeing within our business segments and with our digital strategy on slides six and seven.

Looking ahead, our strategic priorities remain unchanged and our focus clear: accelerate revenue growth, drive greater positive operating leverage, continue to invest while maintaining our expense and risk discipline, and return capital to shareholders at an accelerated rate. Executing on these strategic priorities is central to improving profitability and achieving our long-term goals, including our commitment to deliver a 15% return on tangible common equity in 2027. So, in summary, we closed 2025 on a strong note and entered 2026 with significant momentum and confidence in our ability to deliver revenue growth at least twice the pace of 2025, greater positive operating leverage, higher levels of capital return, and improved profitability. Before I hand the call over to Mike to discuss our quarterly results, I want to spend some time discussing the positive momentum we're seeing within our business segments and with our digital strategy on slides six and seven.

William H. Rogers Jr.: First, let me start with consumer and small business banking. CSBB delivered consistent, strong performance throughout 2025. As shown on the slide, we generated 5% growth in average consumer and small business loans and 1% growth in average deposits. This momentum was fueled by our market-leading consumer lending businesses, another year of net new checking account growth, and deeper relationships with our premier banking clients. Loan growth was broad-based across the portfolio, with especially strong contributions from Indirect Auto and our specialty niche lending platforms, Sheffield, Service Finance, and LightStream. These businesses continue to produce market-leading growth with attractive risk-adjusted returns. As part of advancing our consumer lending strategy, we fully integrated our digital end-to-end lending platform, LightStream, into our Truist Mobile App experience and our branch banking account opening experience. This expanded scale is improving efficiency, broadening distribution, accelerating growth, and meaningfully enhancing the client lending experience.

First, let me start with consumer and small business banking. CSBB delivered consistent, strong performance throughout 2025. As shown on the slide, we generated 5% growth in average consumer and small business loans and 1% growth in average deposits. This momentum was fueled by our market-leading consumer lending businesses, another year of net new checking account growth, and deeper relationships with our premier banking clients. Loan growth was broad-based across the portfolio, with especially strong contributions from Indirect Auto and our specialty niche lending platforms, Sheffield, Service Finance, and LightStream. These businesses continue to produce market-leading growth with attractive risk-adjusted returns. As part of advancing our consumer lending strategy, we fully integrated our digital end-to-end lending platform, LightStream, into our Truist Mobile App experience and our branch banking account opening experience. This expanded scale is improving efficiency, broadening distribution, accelerating growth, and meaningfully enhancing the client lending experience.

William H. Rogers Jr.: Beyond our national consumer lending platforms, premier banking also delivered strong results, with 2025 production of 22% in deposits, 32% in lending, and 12% in financial plans. This performance was driven by higher advisor productivity and strong branded mortgage and branch-led lending. We continue to see strong outcomes from our strategic investments in digital, delivering year-over-year growth across all core metrics. In the Q4 of 2025, we added 77,000 digital new-to-bank clients, up 10% from the prior year quarter, capping a solid full-year performance with digital production of 9%. We also took meaningful steps to deepen self-service adoption, expanding capabilities within our AI-powered Truist Assist mobile experience. The launch of Ask Truist Assist, our universal search capability, now delivers client quick, intuitive access from any screen.

Beyond our national consumer lending platforms, premier banking also delivered strong results, with 2025 production of 22% in deposits, 32% in lending, and 12% in financial plans. This performance was driven by higher advisor productivity and strong branded mortgage and branch-led lending. We continue to see strong outcomes from our strategic investments in digital, delivering year-over-year growth across all core metrics. In the Q4 of 2025, we added 77,000 digital new-to-bank clients, up 10% from the prior year quarter, capping a solid full-year performance with digital production of 9%. We also took meaningful steps to deepen self-service adoption, expanding capabilities within our AI-powered Truist Assist mobile experience. The launch of Ask Truist Assist, our universal search capability, now delivers client quick, intuitive access from any screen.

William H. Rogers Jr.: This drove a 97% increase in digital chat engagement in 2025 and is helping us improve efficiency and strengthen client connectivity as more activity naturally shifts to digital. Let's turn to wholesale on page seven. In wholesale, we delivered a strong finish to 2025, driven by meaningful improvement in the second half of the year in both loan and deposit growth, investment banking and trading revenue, and continued progress in strategic focus areas such as payment and wealth. We onboarded twice as many new corporate and commercial clients versus last year, spanning a diverse range of industries and markets. Building on these new client relationships and our focus on deepening existing ones, we saw our loan and deposit momentum strengthen as the year progressed. Average wholesale loans increased 3% in 2025, with momentum accelerating in the second half.

This drove a 97% increase in digital chat engagement in 2025 and is helping us improve efficiency and strengthen client connectivity as more activity naturally shifts to digital. Let's turn to wholesale on page seven. In wholesale, we delivered a strong finish to 2025, driven by meaningful improvement in the second half of the year in both loan and deposit growth, investment banking and trading revenue, and continued progress in strategic focus areas such as payment and wealth. We onboarded twice as many new corporate and commercial clients versus last year, spanning a diverse range of industries and markets. Building on these new client relationships and our focus on deepening existing ones, we saw our loan and deposit momentum strengthen as the year progressed. Average wholesale loans increased 3% in 2025, with momentum accelerating in the second half.

William H. Rogers Jr.: Q4 average loans were up 8% compared to the Q4 of 2024, fueled by new client acquisition, and supported by focused talent investments as our strategy continues to gain traction. End-of-period wholesale deposit balances rose 6% late quarter. While seasonal public funds contributed to this growth, we saw growth from all of our industry banking teams, and geographies. Full-year investment banking and trading income declined 6% versus 2024 due to first-half market volatility. However, activity rebounded strongly in the second half, with Q4 revenues up 28% versus Q4 of 2024, driven by increased M&A, trading, equity, and debt capital markets activity. In wealth, net asset flows remained positive, supported by an 8.5% increase in new clients last year, with almost 30% being generated by CSBB. Wholesale payment fees, which include merchant services, commercial card, and treasury management fees, rose 8% in 2025.

Q4 average loans were up 8% compared to the Q4 of 2024, fueled by new client acquisition, and supported by focused talent investments as our strategy continues to gain traction. End-of-period wholesale deposit balances rose 6% late quarter. While seasonal public funds contributed to this growth, we saw growth from all of our industry banking teams, and geographies. Full-year investment banking and trading income declined 6% versus 2024 due to first-half market volatility. However, activity rebounded strongly in the second half, with Q4 revenues up 28% versus Q4 of 2024, driven by increased M&A, trading, equity, and debt capital markets activity. In wealth, net asset flows remained positive, supported by an 8.5% increase in new clients last year, with almost 30% being generated by CSBB. Wholesale payment fees, which include merchant services, commercial card, and treasury management fees, rose 8% in 2025.

Michael Maguire: Thank you, Bill, and good morning, everyone. Before I start with our performance highlights on slide 8, I do want to briefly mention certain changes to the presentation of our earnings materials today and on a go-forward basis. On 12 January, we filed an 8-K detailing changes to the presentation of certain non-interest income and non-interest expense items. Effective 31 December 2025, we changed the reporting line labeled card and payment fees to a new reporting line called card and treasury management fees. This line includes debit card, retail card, and commercial card fees, merchant discount fees, and treasury management fees. Previously, treasury management fees were included in the service charges on deposits line, which we renamed other deposit revenue. Other deposit revenue includes NSF and overdraft fees and other service charges.

Mike Maguire: Thank you, Bill, and good morning, everyone. Before I start with our performance highlights on slide 8, I do want to briefly mention certain changes to the presentation of our earnings materials today and on a go-forward basis. On 12 January, we filed an 8-K detailing changes to the presentation of certain non-interest income and non-interest expense items. Effective 31 December 2025, we changed the reporting line labeled card and payment fees to a new reporting line called card and treasury management fees. This line includes debit card, retail card, and commercial card fees, merchant discount fees, and treasury management fees. Previously, treasury management fees were included in the service charges on deposits line, which we renamed other deposit revenue. Other deposit revenue includes NSF and overdraft fees and other service charges.

Michael Maguire: We believe these changes more accurately reflect how we're managing our business and will give investors more insights into how we're progressing with important fee income-generating initiatives. In terms of expenses, we will no longer disclose adjusted expense in our earnings materials. Instead, we will provide context on material items impacting results. For today's discussion, I'll provide you with adjusted expense for comparison purposes, but going forward, our expense commentary and guidance will be based on GAAP expense. As a result of this change, we moved restructuring charges, which typically included expenses related to severance, and facility charges, back to their respective reporting lines, such as personnel, and occupancy expense. Okay, with that said, I'll now turn to the full year 2025 and Q4 results, which starts on slide eight.

We believe these changes more accurately reflect how we're managing our business and will give investors more insights into how we're progressing with important fee income-generating initiatives. In terms of expenses, we will no longer disclose adjusted expense in our earnings materials. Instead, we will provide context on material items impacting results. For today's discussion, I'll provide you with adjusted expense for comparison purposes, but going forward, our expense commentary and guidance will be based on GAAP expense. As a result of this change, we moved restructuring charges, which typically included expenses related to severance, and facility charges, back to their respective reporting lines, such as personnel, and occupancy expense. Okay, with that said, I'll now turn to the full year 2025 and Q4 results, which starts on slide eight.

Michael Maguire: We reported 2025 GAAP net income available to common shareholders of $5 billion, or $3.82, per diluted share, and Q4 2025 net income available to common shareholders of $1.3 billion, or $1 per diluted share. Our Q4 2025 results included a charge of $130 million, or $0.08 per share after tax, due to an incremental accrual related to Truist executing a settlement agreement on 20 January 2026, in the matter of Bickerstaff versus SunTrust Bank. In addition, our Q4 results included $0.04 per share of charges primarily related to severance. Revenue increased 1.1% linked quarter due to 1.9% growth in net interest income, partially offset by a modest decrease in non-interest income. GAAP non-interest expense increased 5.2% linked quarter, primarily due to the legal accrual and higher personnel expense. Excluding the legal accrual and severance, non-interest expense declined approximately 0.3% on a linked quarter basis.

We reported 2025 GAAP net income available to common shareholders of $5 billion, or $3.82, per diluted share, and Q4 2025 net income available to common shareholders of $1.3 billion, or $1 per diluted share. Our Q4 2025 results included a charge of $130 million, or $0.08 per share after tax, due to an incremental accrual related to Truist executing a settlement agreement on 20 January 2026, in the matter of Bickerstaff versus SunTrust Bank. In addition, our Q4 results included $0.04 per share of charges primarily related to severance. Revenue increased 1.1% linked quarter due to 1.9% growth in net interest income, partially offset by a modest decrease in non-interest income. GAAP non-interest expense increased 5.2% linked quarter, primarily due to the legal accrual and higher personnel expense. Excluding the legal accrual and severance, non-interest expense declined approximately 0.3% on a linked quarter basis.

Michael Maguire: Net charge-offs increased 9 basis points on a linked quarter basis, reflecting normal seasonality in our consumer portfolio. Non-performing loans remained relatively stable on a linked quarter basis. Our CET1 capital ratio declined 20 basis points to 10.8%, and our CET1 ratio, including AOCI, increased 10 basis points linked quarter to 9.5%. During the quarter, we repurchased $750 million of common stock and announced a new share repurchase authorization of up to $10 billion, with no expiration date. Next, I'll cover loans and leases on slide nine. Average loans held for investment increased $4.3 billion, or 1.3% on a linked quarter basis, to $325 billion due to growth in both commercial and consumer loans. For the full year, average loans held for investment increased 3.6% to $316 billion due to 5.4% growth in average consumer and card loans and 2.4% growth in average commercial loans.

Net charge-offs increased 9 basis points on a linked quarter basis, reflecting normal seasonality in our consumer portfolio. Non-performing loans remained relatively stable on a linked quarter basis. Our CET1 capital ratio declined 20 basis points to 10.8%, and our CET1 ratio, including AOCI, increased 10 basis points linked quarter to 9.5%. During the quarter, we repurchased $750 million of common stock and announced a new share repurchase authorization of up to $10 billion, with no expiration date. Next, I'll cover loans and leases on slide nine. Average loans held for investment increased $4.3 billion, or 1.3% on a linked quarter basis, to $325 billion due to growth in both commercial and consumer loans. For the full year, average loans held for investment increased 3.6% to $316 billion due to 5.4% growth in average consumer and card loans and 2.4% growth in average commercial loans.

Michael Maguire: Based on our current pipeline and economic outlook, we expect 3% to 4% average loan growth in 2026. However, average loan growth in 2026 will primarily be driven by growth in commercial loans, and other consumer loans will have relatively slower growth in residential mortgage and Indirect Auto compared with 2025. Other consumer loans, which include our specialty lending businesses, Sheffield, Service Finance, and LightStream, are expected to grow at a similar pace as these businesses continue to offer attractive risk-adjusted returns. Moving to deposit trends on slide 10. Driving client deposit growth is a key priority for Truist, and we are seeing improved momentum with clients in both consumer and wholesale. Average deposits were relatively stable on a linked quarter basis as a decline in higher-cost broker deposits was offset by growth in lower-cost client deposits.

Based on our current pipeline and economic outlook, we expect 3% to 4% average loan growth in 2026. However, average loan growth in 2026 will primarily be driven by growth in commercial loans, and other consumer loans will have relatively slower growth in residential mortgage and Indirect Auto compared with 2025. Other consumer loans, which include our specialty lending businesses, Sheffield, Service Finance, and LightStream, are expected to grow at a similar pace as these businesses continue to offer attractive risk-adjusted returns. Moving to deposit trends on slide 10. Driving client deposit growth is a key priority for Truist, and we are seeing improved momentum with clients in both consumer and wholesale. Average deposits were relatively stable on a linked quarter basis as a decline in higher-cost broker deposits was offset by growth in lower-cost client deposits.

Michael Maguire: This improving mix, along with recent reductions in the Federal Funds Rate, resulted in a 27 basis point decline in average interest-bearing deposit costs to 2.23% and a 20 basis point reduction in our total cost of deposits to 1.64%. As shown in the chart on the bottom right-hand of the slide, our cumulative interest-bearing deposit beta improved from 38% to 45%, and our total deposit beta improved from 24% to 30% on a linked quarter basis. These improvements reflect stronger client deposit growth and disciplined efforts to reduce rate paid. Moving out on net interest income and net interest margin on slide 11. Taxable equivalent net interest income increased 1.9% linked quarter, or $69 million, primarily due to loan and client deposit growth in fixed-rate asset repricing. Our net interest margin increased 6 basis points linked quarter to 3.07%.

This improving mix, along with recent reductions in the Federal Funds Rate, resulted in a 27 basis point decline in average interest-bearing deposit costs to 2.23% and a 20 basis point reduction in our total cost of deposits to 1.64%. As shown in the chart on the bottom right-hand of the slide, our cumulative interest-bearing deposit beta improved from 38% to 45%, and our total deposit beta improved from 24% to 30% on a linked quarter basis. These improvements reflect stronger client deposit growth and disciplined efforts to reduce rate paid. Moving out on net interest income and net interest margin on slide 11. Taxable equivalent net interest income increased 1.9% linked quarter, or $69 million, primarily due to loan and client deposit growth in fixed-rate asset repricing. Our net interest margin increased 6 basis points linked quarter to 3.07%.

Michael Maguire: For full year 2026, we expect net interest income to increase by 3% to 4%. This outlook is based on 3% to 4% average loan growth, which implies low single-digit end-of-period loan growth. We also expect low single-digit end-of-period deposit growth. Average earning assets will grow at a slower rate in 2026 than average loans, as average investment securities and other earning assets are expected to decline by 4% to 5% on an annual basis. Lastly, we expect two 25 basis point reductions in the Fed funds rate, one in April and one in July, and we will continue to benefit from fixed-rate asset repricing. Although we expect modest net interest margin compression in the first quarter, we anticipate full year 2026 average net interest margin will exceed the 2025 average of 3.03% due to the benefits of fixed-rate asset repricing, improved earning asset mix, and lower deposit costs.

For full year 2026, we expect net interest income to increase by 3% to 4%. This outlook is based on 3% to 4% average loan growth, which implies low single-digit end-of-period loan growth. We also expect low single-digit end-of-period deposit growth. Average earning assets will grow at a slower rate in 2026 than average loans, as average investment securities and other earning assets are expected to decline by 4% to 5% on an annual basis. Lastly, we expect two 25 basis point reductions in the Fed funds rate, one in April and one in July, and we will continue to benefit from fixed-rate asset repricing. Although we expect modest net interest margin compression in the first quarter, we anticipate full year 2026 average net interest margin will exceed the 2025 average of 3.03% due to the benefits of fixed-rate asset repricing, improved earning asset mix, and lower deposit costs.

Michael Maguire: As you can see on the right-hand side of the slide, we've also updated our fixed-rate asset repricing outlook and our swap disclosure. Turning now to non-interest income on slide 12. Non-interest income decreased $12 million, or 0.8%, versus the Q3 of 2025, reflecting modest declines across several fee income categories, partially offset by higher investment banking and trading income. Investment banking and trading increased $12 million, or 3.7%, linked quarter and $335 million, reflecting stronger M&A-related fees, partially offset by lower trading activity. Our new reporting line for card and treasury management fees was down slightly linked quarter due to seasonality but grew 3.7% year-over-year as double-digit growth in treasury management fees was partially offset by lower merchant and corporate credit card fees. Next, I'll cover non-interest expense on slide 13.

As you can see on the right-hand side of the slide, we've also updated our fixed-rate asset repricing outlook and our swap disclosure. Turning now to non-interest income on slide 12. Non-interest income decreased $12 million, or 0.8%, versus the Q3 of 2025, reflecting modest declines across several fee income categories, partially offset by higher investment banking and trading income. Investment banking and trading increased $12 million, or 3.7%, linked quarter and $335 million, reflecting stronger M&A-related fees, partially offset by lower trading activity. Our new reporting line for card and treasury management fees was down slightly linked quarter due to seasonality but grew 3.7% year-over-year as double-digit growth in treasury management fees was partially offset by lower merchant and corporate credit card fees. Next, I'll cover non-interest expense on slide 13.

Michael Maguire: On a linked quarter basis, non-interest expense increased 5.2%, driven by higher other expense related to the legal accrual previously mentioned, higher personnel expenses due to increased incentives and severance. These increases were partially offset by lower regulatory costs due to an FDIC special assessment credit. Excluding the impact of the legal accrual and severance costs, non-interest expense declined by 0.3% linked quarter. Adjusted non-interest expense increased 1% in 2025, reflecting our commitment to expense discipline and to driving positive operating leverage during the year. Moving to asset quality on slide 14. Our asset quality metrics remained strong on both a linked and linked quarter basis, reflecting our strong credit risk culture and proactive approach to quickly resolving problem loans. Non-performing loans held for investment remained stable at 48 basis points of total loans, while the ALLL declined 1 basis point to 1.53% of total loans.

On a linked quarter basis, non-interest expense increased 5.2%, driven by higher other expense related to the legal accrual previously mentioned, higher personnel expenses due to increased incentives and severance. These increases were partially offset by lower regulatory costs due to an FDIC special assessment credit. Excluding the impact of the legal accrual and severance costs, non-interest expense declined by 0.3% linked quarter. Adjusted non-interest expense increased 1% in 2025, reflecting our commitment to expense discipline and to driving positive operating leverage during the year. Moving to asset quality on slide 14. Our asset quality metrics remained strong on both a linked and linked quarter basis, reflecting our strong credit risk culture and proactive approach to quickly resolving problem loans. Non-performing loans held for investment remained stable at 48 basis points of total loans, while the ALLL declined 1 basis point to 1.53% of total loans.

Michael Maguire: Net charge-offs increased 9 basis points linked quarter to 57 basis points and were down 2 basis points versus the Q4 of 2024. The linked quarter increase in net charge-offs reflects higher C&I and seasonally higher consumer losses, partially offset by lower CRE losses. For the full year 2025, net charge-offs declined 5 basis points to 54 basis points. And now I'll turn to guidance for 2026 on slide 15. For full year 2026, we expect revenue to increase 4% to 5% relative to 2025 revenue of $20.5 billion, driven by 3% to 4% growth in net interest income and mid to high single-digit growth in non-interest income. We expect full year 2026 GAAP non-interest expense to increase by 1.25% to 2.25% in 2026 versus GAAP 2025 non-interest expense of $12.1 billion. Our 2026 GAAP revenue and expense outlook implies positive operating leverage of 275 basis points in 2026.

Net charge-offs increased 9 basis points linked quarter to 57 basis points and were down 2 basis points versus the Q4 of 2024. The linked quarter increase in net charge-offs reflects higher C&I and seasonally higher consumer losses, partially offset by lower CRE losses. For the full year 2025, net charge-offs declined 5 basis points to 54 basis points. And now I'll turn to guidance for 2026 on slide 15. For full year 2026, we expect revenue to increase 4% to 5% relative to 2025 revenue of $20.5 billion, driven by 3% to 4% growth in net interest income and mid to high single-digit growth in non-interest income. We expect full year 2026 GAAP non-interest expense to increase by 1.25% to 2.25% in 2026 versus GAAP 2025 non-interest expense of $12.1 billion. Our 2026 GAAP revenue and expense outlook implies positive operating leverage of 275 basis points in 2026.

Michael Maguire: As I mentioned earlier, our non-interest expense guide will be based on GAAP non-interest expense, as we will no longer provide guidance on adjusted non-interest expense going forward. For comparison purposes, 2026 non-interest expense growth would be approximately 2.35% to 3.35%, and operating leverage would be approximately 165 basis points if you were to exclude the impact of the Q4 2025 legal accrual that I discussed earlier in the call. In terms of asset quality, we expect net charge-offs of about 55 basis points in 2026, which is relatively stable compared with net charge-offs of 54 basis points in 2025. Finally, we expect our effective tax rate to approximate 16.5% or 18.5% on a taxable equivalent basis in 2026 versus 16.4% and 18.9% in 2025. As it relates to buybacks, we're targeting approximately $4 billion of share repurchases during the year.

As I mentioned earlier, our non-interest expense guide will be based on GAAP non-interest expense, as we will no longer provide guidance on adjusted non-interest expense going forward. For comparison purposes, 2026 non-interest expense growth would be approximately 2.35% to 3.35%, and operating leverage would be approximately 165 basis points if you were to exclude the impact of the Q4 2025 legal accrual that I discussed earlier in the call. In terms of asset quality, we expect net charge-offs of about 55 basis points in 2026, which is relatively stable compared with net charge-offs of 54 basis points in 2025. Finally, we expect our effective tax rate to approximate 16.5% or 18.5% on a taxable equivalent basis in 2026 versus 16.4% and 18.9% in 2025. As it relates to buybacks, we're targeting approximately $4 billion of share repurchases during the year.

Michael Maguire: Looking into Q1 2026, we expect revenue to decrease approximately 2% to 3% relative to Q4 revenue of $5.3 billion. We expect net interest income to decrease approximately 2% to 3% in the first quarter, primarily driven by two fewer days in the first quarter relative to the fourth quarter, and a seasonal decline in public funds deposits. We expect non-interest income to decline 2% to 3% linked quarter due to lower other income. GAAP non-interest expense of $3.2 billion in the fourth quarter is expected to decrease by 4% to 5% linked quarter due to lower other expense and personnel costs, partially offset by higher regulatory costs. If you were to exclude the impact of the Q4 2025 legal accrual, non-interest expense would be flat to down 1% linked quarter. Finally, we're targeting $1 billion of share repurchases in Q1 2026.

Looking into Q1 2026, we expect revenue to decrease approximately 2% to 3% relative to Q4 revenue of $5.3 billion. We expect net interest income to decrease approximately 2% to 3% in the first quarter, primarily driven by two fewer days in the first quarter relative to the fourth quarter, and a seasonal decline in public funds deposits. We expect non-interest income to decline 2% to 3% linked quarter due to lower other income. GAAP non-interest expense of $3.2 billion in the fourth quarter is expected to decrease by 4% to 5% linked quarter due to lower other expense and personnel costs, partially offset by higher regulatory costs. If you were to exclude the impact of the Q4 2025 legal accrual, non-interest expense would be flat to down 1% linked quarter. Finally, we're targeting $1 billion of share repurchases in Q1 2026.

Michael Maguire: So with that, I'll hand it back to Bill for some final remarks. Great. Thanks, Mike. As we close, I want to emphasize the confidence I have in Truist Direction. We're seeing tangible results across key businesses with strong momentum and client engagement and revenue growth. As shown on slide 16, our goal of achieving a 15% ROTCE in 2027 is locked in and reflects our confidence in Truist's long-term earnings power and strategic direction. We see and have invested in multiple paths to stronger revenue and profitability, and with disciplined execution, we expect meaningful improvement over the next two years. Much of this progress will come from deepening client relationships in consumer and wholesale, especially in wealth, payments, premier banking, investment banking and trading, small business, and corporate and commercial banking, where momentum is already strong. This is highly accretive to our ROTCE commitment.

Bill Rogers: Great. Thanks, Mike. As we close, I want to emphasize the confidence I have in Truist Direction. We're seeing tangible results across key businesses with strong momentum and client engagement and revenue growth. As shown on slide 16, our goal of achieving a 15% ROTCE in 2027 is locked in and reflects our confidence in Truist's long-term earnings power and strategic direction. We see and have invested in multiple paths to stronger revenue and profitability, and with disciplined execution, we expect meaningful improvement over the next two years. Much of this progress will come from deepening client relationships in consumer and wholesale, especially in wealth, payments, premier banking, investment banking and trading, small business, and corporate and commercial banking, where momentum is already strong. This is highly accretive to our ROTCE commitment.

Michael Maguire: Our expectation is that our revenue growth will double in 2026, and when combined with our expense discipline, should lead to even greater operating leverage and profitability improvement this year. Like 2025, we enter 2026 in a strong capital position, enabling us to support client growth and accelerate capital return through increased share repurchases. As Mike mentioned, we're targeting $4 billion of share repurchase this year, which represents a 60% increase versus last year. In summary, I am confident in our future. I'm encouraged by the results and momentum we're seeing across our company and remain focused on executing with discipline, delivering for our clients, and creating value for our shareholders. Thank you to our teammates for their incredible focus, productivity, and purpose-driven commitment to moving Truist forward.

Our expectation is that our revenue growth will double in 2026, and when combined with our expense discipline, should lead to even greater operating leverage and profitability improvement this year. Like 2025, we enter 2026 in a strong capital position, enabling us to support client growth and accelerate capital return through increased share repurchases. As Mike mentioned, we're targeting $4 billion of share repurchase this year, which represents a 60% increase versus last year. In summary, I am confident in our future. I'm encouraged by the results and momentum we're seeing across our company and remain focused on executing with discipline, delivering for our clients, and creating value for our shareholders. Thank you to our teammates for their incredible focus, productivity, and purpose-driven commitment to moving Truist forward.

Michael Maguire: As always, we appreciate your continued interest and support, and we look forward to updating you on our progress and the quarters ahead. With that, Brad, let me turn it back over to you. Thank you, Bill. Betsy, at this time, will you please explain how our listeners can participate in the Q&A session? As you do that, I'd like to ask the participants to please limit yourselves to one primary question and one follow-up in order to 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 touch-tone phone. If you are using a speakerphone, 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.

Michael Maguire: We ask that you 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 with Goldman Sachs. Please go ahead. Good morning, Bill. Good morning, Mike. Good morning. Good morning. Bill, can you maybe talk a little bit more about loan growth, where you ended the year at up 8% year-over-year and you're guiding to 3% to 4%? And it seems like if you think about the exit run rate, you're already running at about 3% average growth. So that implies, as you said, low single-digit growth. So maybe just unpack the loan growth a little bit further between commercial and consumer, and how are you thinking about growth across each of those areas? Thank you. Yeah. Thanks, Ryan. Great to hear from you. As you Yeah.

Michael Maguire: Our expectation coming into the year is we'll grind a touch higher on the betas in the first quarter, but we would expect to be in the kind of low 50s neighborhood by year-end. So you've got the lower cost of deposits. You've also got the fixed asset, the fixed-rate asset repricing engine happening in the background as well. And I think those are factors that are going to really help us make, really, I think, significant progress on the margin relative. I know previously we've talked about sort of a three-teens level in 2027. We're going to make significant progress towards that level in 2026 and, frankly, see ourselves exiting 2026 in kind of that three-teens area, which is, I think, a really nice setup for 2027. Thank you. Appreciate all the color. The next question comes from John Pancari with Evercore. Please go ahead. Good morning. Good morning.

Michael Maguire: Good morning. On your 2027 ROTCE target of 15%, I appreciate you reiterated your confidence in the attainability there. And could you possibly help kind of unpack the components that give you that confidence? You mentioned the three-teens NIM, and you might be able to hit that by the end of 2026. Just curious on maybe your efficiency expectations underneath that balance sheet growth, how we could think about the pace there as you approach that in 2027, and then also, I think, Common Equity Tier 1. You've alluded to the 10%, but how are you thinking about capital underneath that 15% ROTCE? Thanks. Yeah. Sure, John. So think about it maybe in its simplest term as the concept of holding the denominator of capital and dollars steady and then improving momentum and return from the numerator.

Michael Maguire: So that's really accretive to not only deposits, but also to NIM, and sort of the overall ROA. Our middle market expansion, we've 2x'd the number of clients we're seeing in that business. So we see that as really, really positive to that growth. Premier and our wealth production, net asset flows and wealth, really positive. Premier. I talked about the deposit production and loan production, sort of those 20-plus% kind of activity. And then think about all the things that are deepening client relationships and all of those categories. Those are the things that are really most accretive because if you think about it, we've already committed talent. We've already committed capital to those businesses. And what we're doing is increasing the return against that. Mike mentioned fixed asset repricing is a component of it.

So that's really accretive to not only deposits, but also to NIM, and sort of the overall ROA. Our middle market expansion, we've 2x'd the number of clients we're seeing in that business. So we see that as really, really positive to that growth. Premier and our wealth production, net asset flows and wealth, really positive. Premier. I talked about the deposit production and loan production, sort of those 20-plus% kind of activity. And then think about all the things that are deepening client relationships and all of those categories. Those are the things that are really most accretive because if you think about it, we've already committed talent. We've already committed capital to those businesses. And what we're doing is increasing the return against that. Mike mentioned fixed asset repricing is a component of it.

Michael Maguire: There's all sorts of RWA maximization efforts to ensure that we're running our RWA engine really, really effectively. We talked about the improving operating leverage. So that's also a component of that as we'll run this revenue increase off a more efficient platform. And then your point on CET1, we're building this model on a 10% CET1. I think that's probably sort of the right zip code. And then looking this year to $4 billion in buybacks to accelerate all that. So again, my high degree of confidence is everything I mentioned in there has got momentum against it, initiatives against it. We're starting nothing flat-footed, everything on our toes, which is why I sort of say locked in for 15%. Got it. All that's helpful, Bill. And then staying along the same lines, I mean, no good deed goes unpunished. So you set out that 14.

Michael Maguire: Let's see. I think you've touched or at least alluded to this briefly a couple of times, but just on the capital markets, I think there's just plenty of optimism about the industry's potential this year. That's, of course, an area where you all have invested really, really heavily. Maybe if you could just sort of expand on your thoughts about momentum and potential there for the coming year. Yeah. Scott, I think, as you pointed out, I mean, this is a business we've been investing in for decades. I think we're in a really good position. We have really good momentum coming out of the second half of the year, and quite frankly, on a lot of cylinders. So debt capital markets, leverage finance, M&A, all of our FRM derivatives, FX, all of those things are hitting on really good cylinders.

Michael Maguire: We come into it with a good pipeline. So we come into it with a good pipeline, and not only the pipeline from the investment banking, but really the pipeline that's generated from our middle market and commercial client base. I mean, probably what I'm most excited about is this organic activity that we're building. We've put talent on the field that really understands how to leverage all of our industry specialties, understands how to leverage our product and capabilities, and position those and great advice for our clients with the appropriate teamwork that goes on and the technology that we built to support all that. So part of the double revenue story for us is we think we continue with a low double figure kind of compound growth in this business. I mean, I have every reason to be confident. It's organically built.

We come into it with a good pipeline. So we come into it with a good pipeline, and not only the pipeline from the investment banking, but really the pipeline that's generated from our middle market and commercial client base. I mean, probably what I'm most excited about is this organic activity that we're building. We've put talent on the field that really understands how to leverage all of our industry specialties, understands how to leverage our product and capabilities, and position those and great advice for our clients with the appropriate teamwork that goes on and the technology that we built to support all that. So part of the double revenue story for us is we think we continue with a low double figure kind of compound growth in this business. I mean, I have every reason to be confident. It's organically built.

Michael Maguire: So if you look at the math, that gets you to about $1 billion a quarter this year, frankly, perhaps maybe a touch higher. And so that's really how we're thinking about is just kind of retrending to 10 during that period. Gotcha. Okay. Perfect. Thank you guys very much. Yep. The next question comes from Ebrahim Poonawala with Bank of America. Please go ahead. Hey, good morning. Good morning. Good morning. Two questions. One, I think just on deposits. Talk about, do you expect both as you move towards this wholesale mix on the lending side, what does that mean for deposits and deposit growth as we look forward, both in terms of the mix? So when we think about DDA, non-interest-bearing balances, and just the pace of overall deposit growth, do you think that kind of shifts for growth, and how strong could it be? Thanks. Yeah.

Michael Maguire: Then you go to the consumer side, and we look at sort of the leading indicators there. The first is net new. So we're adding net new clients. The quality of those clients has increased year over year. So the amount of deposits that they're bringing to us increases year over year. The focus on Premier, I talked about the deposit production being up significantly in Premier. The amount of off-us deposits from our Premier client base is actually quite significant. So their capacity to use great tools to approach those clients has been really significant. Technology, digital account opening in our branches, branch expansion, more marketing related to deposit generation, deposit generation in expansion markets for us like Texas and Pennsylvania, so just my net summary is we have really good momentum in the deposit side.

Then you go to the consumer side, and we look at sort of the leading indicators there. The first is net new. So we're adding net new clients. The quality of those clients has increased year over year. So the amount of deposits that they're bringing to us increases year over year. The focus on Premier, I talked about the deposit production being up significantly in Premier. The amount of off-us deposits from our Premier client base is actually quite significant. So their capacity to use great tools to approach those clients has been really significant. Technology, digital account opening in our branches, branch expansion, more marketing related to deposit generation, deposit generation in expansion markets for us like Texas and Pennsylvania, so just my net summary is we have really good momentum in the deposit side.

Michael Maguire: It might sort of outline the deposit and loan correlation for this year. So we feel good about deposit growth. We feel good about that opportunity headed into this year. That's good color, Bill. Thank you. I guess maybe just a separate question around the wholesale strategy. On paper, half a trillion dollar balance sheet, you've been in investment banking for a long time. Truist should be winning in terms of when we think about fee revenue growth, financing. Just give us a sense. One, do some of the changes by the OCC around leverage lending, does that create a slightly better opportunity to compete in terms of risk-adjusted returns? And remind us where you think the sweet spot for Truist is on the wholesale/capital market side. Is it against the Wall Street banks? Is it against middle market investment banks? Would love some color there. Thank you. Yeah.

Michael Maguire: And then really focused on places where we have specialization and a really strong right to win. Think about those combinations. So core middle market, leveraging our franchise. I mentioned earlier, I've been really excited about the teamwork, the team that we have on the field, the training we put in place, the partnerships we have, and the new talent we have that really know how to leverage the tools and capabilities for our sort of core commercial and middle market clients. And then anywhere on a specialty business, we have the right to win against anybody along that spectrum. I hope that clarifies it. Yep. That's good color. Thanks, Bill. The next question comes from Ken Austin with Autonomous Research. Please go ahead. Hey, thanks. Good morning. Mike, just coming back to a prior comment you made. Bill had mentioned getting to the three teens NIM by year-end 2026.

Michael Maguire: So I'm just wondering, and you're talking about the momentum you have in a lot of businesses for that growth, but do you need to increase your investments even more than you're already doing just to keep up with the bigger banks that are increasing their investments? And the 100 new de novo branches, why now? Where are they going to be? It's just a contrast versus the prior five years of the merger when you're closing a lot of branches. Thank you. Yeah, Mike, I think your basic question is, are we investing enough? And are we investing in the right places for growth? Let's sort of start with the concept of, as you pointed out, we're doubling revenue. So we are building momentum, building capacity to move forward. So the investments that we've made are reflected in that doubling of revenue.

Michael Maguire: We're creating efficiencies that not only came out of the merger, but really came out of the work that we did in the end of 2023 when we, as you duly noted, by the way, when we needed to really bend the expense curve; we bent that significantly, but we're still harvesting some of those savings. And then we look at the risk infrastructure that we've built at our company. That's been a really significant part of the expense growth base over the last several years. While that will continue to be high and appropriately so, the rate of increase will lower. So again, creating efficiencies to redeploy and things that matter. And then you've seen the things that we're investing in. I mean, go down the list. Investment banking, talent, corporate banking, and all the investments we're making in wholesale payments.

We're creating efficiencies that not only came out of the merger, but really came out of the work that we did in the end of 2023 when we, as you duly noted, by the way, when we needed to really bend the expense curve; we bent that significantly, but we're still harvesting some of those savings. And then we look at the risk infrastructure that we've built at our company. That's been a really significant part of the expense growth base over the last several years. While that will continue to be high and appropriately so, the rate of increase will lower. So again, creating efficiencies to redeploy and things that matter. And then you've seen the things that we're investing in. I mean, go down the list. Investment banking, talent, corporate banking, and all the investments we're making in wholesale payments.

Michael Maguire: I mean, we're rolling out literally new products and capabilities every month. You've seen the investments we're making in digital, the growth we've seen in digital, marketing, premier banking, deposit growth, and tech investments to create efficiency and effectiveness. And then on the branch side, this is a long-term game. So this isn't a quarter-by-quarter game. So for the past six years, we've effectively not invested or added net new branches into our branch network. So as the population shifts in our markets, as our focus gets really clear on things like premier, we're going to open these branches in places that have the highest return for our franchise long-term. So think about expansion markets. Think about Texas in terms of examples. Think about market demographics that have changed in markets like South Florida and markets like Atlanta where we'll continue to invest.

I mean, we're rolling out literally new products and capabilities every month. You've seen the investments we're making in digital, the growth we've seen in digital, marketing, premier banking, deposit growth, and tech investments to create efficiency and effectiveness. And then on the branch side, this is a long-term game. So this isn't a quarter-by-quarter game. So for the past six years, we've effectively not invested or added net new branches into our branch network. So as the population shifts in our markets, as our focus gets really clear on things like premier, we're going to open these branches in places that have the highest return for our franchise long-term. So think about expansion markets. Think about Texas in terms of examples. Think about market demographics that have changed in markets like South Florida and markets like Atlanta where we'll continue to invest.

Michael Maguire: And then overall, in all of our markets, refurbishing. So I'm very confident that we're investing in the things that are delivering results. And I think you see that in the momentum we're building. And then we're putting a stake in the ground for continued momentum, doubling that revenue and creating this 15% return, which obviously has those characteristics attached to it. So I'm satisfied and excited about the opportunities. And then put on top of that, AI, other efficiencies, and other opportunities, we're going to open up the aperture to continue to invest even more and with lots of clarity. We know the next place to invest, the next dollar to save, the next dollar to invest with a lot of clarity. Thanks, Mike. And then, yeah, sure. And just, you keep mentioning the 15%. It seems like you're really hyper-focused on the 15% return.

Michael Maguire: I think as we get closer to that 15%, as we understand, as I mentioned before, economic environment, business model, where we see momentum, where we see a chance to put our foot on the accelerator, what we're seeing the return on the branch investment, just talking about that as an example, then we'll start to hone in a little bit better about where that next stage of the destination is. I think I'm careful in saying final destination. I mean, I don't think there's a finish line. I mean, I think we sort of constantly want to be improving and moving forward. The 15% was just to declare from here to there, and the slope is, I think, actually quite positive from a shareholder perspective. All right. Thank you. Yep. Thanks. The next question comes from Betsy Grasek with Morgan Stanley. Please go ahead. Hi. Good morning. Morning.

Michael Maguire: Bill sort of talked about the numerator and sort of more throughput, more sort of. I'll call it capital-efficient revenue that's going to drive our ROA higher with sort of a similar level of capital over time. So it gets you to that kind of off that 1% ROA higher and more in line with what it's going to take to get to that 15 level. In terms of severance, the charges we took in the fourth quarter would have been related to actions in the fourth quarter. FTEs, there's a little bit of noise in that, Betsy, because we've got contractor conversions happening. We've got headcount coming in, coming out. So in fact, you might actually see headcount higher throughout the course of a year as we move from contractor to full-time employees. Now, cost per FTE would go down, assuming we do a good job executing that strategy.

Bill sort of talked about the numerator and sort of more throughput, more sort of. I'll call it capital-efficient revenue that's going to drive our ROA higher with sort of a similar level of capital over time. So it gets you to that kind of off that 1% ROA higher and more in line with what it's going to take to get to that 15 level. In terms of severance, the charges we took in the fourth quarter would have been related to actions in the fourth quarter. FTEs, there's a little bit of noise in that, Betsy, because we've got contractor conversions happening. We've got headcount coming in, coming out. So in fact, you might actually see headcount higher throughout the course of a year as we move from contractor to full-time employees. Now, cost per FTE would go down, assuming we do a good job executing that strategy.

Michael Maguire: And we can maybe throughout the course of this year, maybe give you a little bit more detail around how that's playing out. Okay. Thank you. Ladies and gentlemen, in the interest of time, we ask that you limit yourself to one question. The next question comes from Matt O'Connor with Deutsche Bank. Please go ahead. Good morning. A little bit of a follow-up on the last question here. Just as you think about the restructuring and severance costs for 2026, do you think there'll be anything meaningful? I think there was about 150 this year. And I appreciate the guidance on a reported basis, just trying to adjust for some of these items and see what the underlying operating leverage is. Thanks. Yeah. Got it, Matt. Look, I mean, first of all, appreciate the comment on sort of going to GAAP.

Michael Maguire: This is something that we've gotten some good feedback on from investors and think it's going to be a more simple way to present our results. At the end of the day, the restructuring charges and sort of thinking about the original, you recall sort of the MRCs, they've just become sort of less significant relative to our overall story. That doesn't mean they'll go away. Obviously, we'll continue to have severance expense. We'll continue to have facilities-related charges and the like. But I do think that there is an opportunity and an expectation that they'll be lower over time. Difficult to necessarily forecast just given their nature. We do have an expectation that they'll be lower in 2026, modestly. And again, it'll be sort of up to us to do a great job trying to create more opportunity there and beyond. So hopefully that helps. That's all right.

This is something that we've gotten some good feedback on from investors and think it's going to be a more simple way to present our results. At the end of the day, the restructuring charges and sort of thinking about the original, you recall sort of the MRCs, they've just become sort of less significant relative to our overall story. That doesn't mean they'll go away. Obviously, we'll continue to have severance expense. We'll continue to have facilities-related charges and the like. But I do think that there is an opportunity and an expectation that they'll be lower over time. Difficult to necessarily forecast just given their nature. We do have an expectation that they'll be lower in 2026, modestly. And again, it'll be sort of up to us to do a great job trying to create more opportunity there and beyond. So hopefully that helps.

Michael Maguire: Thank you. Yep. The next question comes from Gerard Cassidy with RBC. Please go ahead. Good morning, Bill. Good morning, Mike. Morning. Can you share with us, Bill and Mike as well, I guess? Obviously, the outlook for yourselves and your peers this year looks really strong based upon the outlook for the economy, the yield curve, loan demand's picking up across the board. And if you have to look around corners, aside from the big geopolitical risks we all see, what do you guys keep an eye on that could kind of surprise us later in the year? Because again, the outlooks across the board look pretty darn good. Yeah, Mike, we can each talk about what keeps us up at night. So in terms of looking around corners, I mean, Gerard, I think this is what we get paid for. We look around a lot of corners.

Michael Maguire: We stress for a lot of things within the business environment. I think to your point of your question, if you sort of said number one would be a more macro concerns and issues, does the economy hold up? Are we able to deploy all our strategies and our initiatives against the backdrop of an expanding and growing economy? So I sort of start with that. Because on the micro side, I feel really confident about the things that we're doing. So in terms of looking around our own corners, again, we'll stress for everything. We'll stress for credit. We'll stress for idiosyncratic things. We'll stress for geography, specialties, all that kind of stuff. So we're always going to be looking at it. But given the diversity of our franchise, those aren't my number one concerns. They really are on the macro.

Michael Maguire: That does have some level of restructuring expenses embedded in it that are maybe slightly lower than this year. Is that right? Because obviously, if it doesn't, it would imply something like 3.5% to 4.5% growth versus the adjusted number based on how you have been doing it. So just wanted to clarify that. Yeah. No, that's right. The outlook, so the 1.25% to 2.25% off the GAAP base includes what previously would have been outlined as restructuring charges or severance. In ex-legal, that would be closer to 2.3% and 3.3% year over year. Okay. All right. So it does include a similar number than this year. Okay. All right. I just wanted to make sure. Thank you. Yeah. Lower. Lower. Sorry. Just to clarify on your way out. Yeah. No, understood. Understood. A little bit lower. Understood.

Michael Maguire: But the capabilities that we have now in our branches, I think, some of the models that we used to use, I think, we can sort of bend some of those curves because our ability to open accounts digitally in branches, do more in a branch than we could do before, I think, allows us to have a little more confidence in the return characteristics of those investments. But that's too early to tell right now. So we're building the models. We're getting started. Great site selection, great markets. And we'll keep you updated on where we go there. But overall, net new continues to be strong, and the quality is improving. Great. Thanks, Bill. Yep. This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks. Okay. Thank you, Betsy. That completes our earnings call.

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