Financial Data and Key Metrics Changes - The company reported strong quarterly earnings of $534 million, resulting in earnings per share of $0.59, with adjusted earnings of $538 million or $0.60 per share [3] - Pretax pre-provision income increased by 14% year over year to $832 million, with a return on tangible common equity of 19% [3] - Average deposits grew organically by over 30% over the last five years, among the highest in its peer set [4] Business Line Data and Key Metrics Changes - Ending loans grew by 1%, while average loans remained stable; growth in ending business loans was driven by commercial and industrial (C&I) and real estate sectors [12] - Wealth management revenue has grown at more than an 8% compounded annual growth rate since 2018, contributing to record fee income [6] - Treasury management revenue increased by 8% year to date, with a 10% increase in total clients served [6] Market Data and Key Metrics Changes - Consumer deposits in priority markets grew by 20% more than in core markets during the quarter [14] - Average deposit balances in the Corporate Banking Group grew over 1% sequentially, while ending balances remained stable [15] - Net interest income rebounded, increasing by 5% linked quarter, with expectations for full year 2025 net interest income to grow between 3% to 5% [18] Company Strategy and Development Direction - The company is focused on modernizing its core technology platforms, including a new cloud-based commercial loan system and deposit system [8] - The company is not interested in depository M&A, preferring to execute its existing strategic plan and focus on organic growth [37] - The company aims to continue delivering top quartile results and has increased its dividend at a compounded annual growth rate of over 10% over the last six years [9] Management's Comments on Operating Environment and Future Outlook - Management noted that both business and consumer customers are in good shape, maintaining liquidity and managing debt levels well [31] - There is some uncertainty regarding interest rates and inflation, but overall sentiment among business customers has improved [30] - The company expects to maintain positive operating leverage over time, despite the need for ongoing investments [120] Other Important Information - The company executed $144 million in share repurchases and paid $224 million in common dividends during the quarter [23] - The estimated common equity Tier one ratio increased from 9.1% to 9.2% due to strong capital generation [23] Q&A Session Summary Question: Implications of the tax bill on loan growth and consumer spending - Management indicated that the tax package creates certainty for businesses and consumers, which is expected to lead to positive momentum in 2025 and 2026 [30][34] Question: Perspective on bank M&A activity - Management stated they are not interested in depository M&A, focusing instead on executing their current plan and exploring non-bank opportunities [37][39] Question: Details on net interest margin and deposit cost leverage - Management discussed the recent improvements in net interest margin and the expectation for stable to modest growth in the third quarter [18][52] Question: Loan growth dynamics and competitive backdrop - Management highlighted a 17% year-over-year increase in pipelines and emphasized their disciplined approach to portfolio management [59][61] Question: Credit quality and specific portfolios under scrutiny - Management noted that overall credit quality remains strong, with some challenges in specific portfolios, but they are manageable [106][108] Question: Approach to stablecoin solutions - Management expressed intent to participate in a consortium of banks for stablecoin solutions, similar to their involvement with Zelle [111][112]

Legislative Action & Timeline - Senate passed Trump's multi-trillion dollar tax package, sending it to the House for a potential vote as early as tomorrow [1] - House leaders aim to finalize the vote by July 4th, but this timeline is contingent on avoiding amendments that would require Senate re-approval [6] Key Points of Contention - The $3.3 trillion package includes clean energy tax credits, specifically scrapping a proposed tax on wind and solar projects sourcing parts from China and allowing tax credit access for projects starting construction within a year of enactment [2][3] - Fiscal conservatives in the House, like Congressman Chip Roy and Ralph Norman, oppose the bill due to increased spending and deficit concerns, particularly regarding green energy tax credits [4][5] Potential Obstacles & Negotiation - House opposition necessitates negotiation and potential compromises, with Speaker Mike Johnson aiming to avoid changes that would send the bill back to the Senate [2][6] - Moderate Republicans in the House, similar to Senators Tom Tillis and Susan Collins, may raise concerns, potentially focusing on spending provisions [5]

Policy & Legislation - A $4 trillion tax package is likely to pass the Senate [1] - The bill received support from all but three Republican senators, with JD Vance playing a key role [2] - The final vote is expected soon, possibly within the next hour [3] - The President aims to finalize the bill by July 4th, but acknowledges it will be challenging [3]