Financial Data and Key Metrics Changes - Earnings per share for Q2 2025 were reported at $0.35, with revenues increasing by 21% year-over-year and expenses rising by approximately 6% excluding charitable contributions [4][13]. - Pre-provision net revenue (PPNR) increased by $44 million sequentially, marking a 60% growth since Q1 2024 [4][5]. - Tax equivalent net interest income rose by 4% sequentially and 28% year-over-year, while noninterest income increased by 10% year-over-year [13][19]. Business Line Data and Key Metrics Changes - Commercial loan growth achieved the full-year target of $3 billion by June 30, 2025, with strong backlogs in institutional and middle market segments [5][8]. - Investment banking fees increased by 41% year-over-year, with Q2 2025 being the second-best first half in the company's history [21]. - Assets under management reached a record $64 billion, with commercial mortgage servicing balances also at record levels [7][22]. Market Data and Key Metrics Changes - Average loans increased by $1.4 billion sequentially, with commercial and industrial (C&I) loans growing by $1.7 billion [15]. - Average deposits declined by less than 1% from the previous quarter, but total deposits increased by 2% year-over-year [16][17]. - Noninterest-bearing deposits accounted for 19% of total deposits, remaining stable compared to the first quarter [17]. Company Strategy and Development Direction - The company is focused on maintaining low to mid-single-digit expense growth while investing significantly in frontline bankers and technology [10][12]. - There is a commitment to increasing the number of frontline bankers and client advisers by approximately 10% this year [10][73]. - The company is optimistic about meeting or exceeding full-year financial targets due to strong client engagement and healthy pipelines [8][12]. Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautiously optimistic, with many seeing the current environment as an opportunity for growth despite macroeconomic concerns [34][36]. - The company is maintaining a strong capital position and ample liquidity, allowing it to take advantage of market dislocations [12][63]. - Future guidance for net interest income growth has been revised to 20% to 22%, reflecting strong first-half performance and encouraging pipelines [26][29]. Other Important Information - The company added $36 million to its loan loss reserves this quarter, with net charge-offs of $102 million [4][14]. - The CET1 ratio was reported at 11.7%, indicating a strong capital position among peers [25]. - The company plans to resume modest share repurchases in Q3 2025, with a more significant increase expected in Q4 [65]. Q&A Session Summary Question: Client sentiment and financial outlook - Management indicated that clients are cautiously optimistic, with many feeling good about their business despite macro concerns. This sentiment is expected to translate into higher net interest income and loan growth [32][34]. Question: Deposit pricing strategy - The company is managing deposit costs effectively, with a slight decline in interest-bearing deposit costs. There is flexibility due to a low loan-to-deposit ratio [56][58]. Question: Capital and share repurchase plans - The company is at the high end of its CET1 target and plans to resume share repurchases modestly in Q3, increasing in Q4 based on market opportunities [62][65]. Question: Loan growth guidance - The company expects average loans to be down 1% to 3% for the full year, with commercial loans projected to grow about 5% [28][111]. Question: Credit quality and reserve ratio - Credit metrics are stable to improving, and there is potential for reserve reductions if the economic environment continues to improve [101][103].