Financial Data and Key Metrics Changes - The company reported strong quarterly earnings of $548 million, resulting in earnings per share of $0.61, with adjusted earnings of $561 million or $0.63 per share [4] - Adjusted pre-tax, pre-provision income increased by 4% year over year to $830 million, with a return on tangible common equity of 19% [4][6] - Net interest income was relatively stable, with a modest growth expected between 3% and 4% for the full year 2025 [11][13] Business Line Data and Key Metrics Changes - Average loans grew by 1%, while ending loans declined by 1%, with growth in financial services, government, and public sectors [9] - Wealth management generated record fee income, and capital markets income, excluding CBA, also reached a record high [6][15] - Non-interest income increased by 6% quarter over quarter, driven by higher service charges and capital markets activity [14][15] Market Data and Key Metrics Changes - The company achieved top quartile deposit growth and above peer median change in market share, maintaining the lowest deposit cost among peers [4] - Consumer deposits remained flat quarter over quarter, slightly ahead of typical seasonal trends, while commercial deposits showed strength [10] - The overall share of non-interest-bearing deposits to total deposits remained within the expected low 30% range [10] Company Strategy and Development Direction - The company is focused on modernizing core technology platforms, with plans to upgrade its commercial loan system to a new cloud platform in 2026 [7][8] - The strategic plan emphasizes organic growth through existing customer relationships and new client acquisitions, rather than pursuing M&A [37][38] - Investments in technology and talent are expected to enhance customer service and capitalize on growth opportunities [8][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating stronger loan growth moving into 2026, supported by improving macro conditions and increased line utilization [6][30] - The company anticipates continued positive trends in asset quality, with expectations for net charge-offs to be approximately 50 basis points for the full year [17][66] - Management remains vigilant regarding portfolios of interest, particularly in office and transportation sectors, while expressing optimism about overall credit quality [22][25] Other Important Information - The company executed $250 million in share repurchases and paid $235 million in common dividends during the quarter, with a common equity tier one ratio of 10.8% [18] - Adjusted non-interest expense increased by 4% compared to the prior quarter, with expectations for full-year adjusted non-interest expense to be up approximately 2% [15][16] Q&A Session Summary Question: Update on portfolios of interest and charge-offs - Management identified office and transportation as portfolios of interest, with expectations for continued elevated charge-offs but long-term guidance of 40 to 50 basis points [22][30] Question: Clarification on portfolio shaping and charge-offs - Portfolio shaping actions are a combination of addressing weaknesses in certain portfolios and proactive management of credit risk [34][54] Question: Strategic focus on M&A - The company remains focused on executing its strategic plan and does not currently see M&A as part of its strategy, despite market changes [37][38] Question: Loan growth expectations - The company expects to grow its loan portfolio consistent with GDP in its markets, with optimism for acceleration in 2026 [62] Question: Impact of CD rolls on NIM - The upcoming CD rolls are expected to significantly impact NIM, with a focus on managing deposit pricing effectively [100] Question: Salary and compensation outlook - The company does not anticipate significant changes in headcount or salary increases, maintaining a focus on efficiency through technology [104]