Financial Data and Key Metrics Changes - The company reported earnings per share of $0.88, or $0.90 excluding certain items, exceeding consensus estimates [5] - Adjusted revenues grew by 6% year over year, with net interest income (NII) increasing by 7% [6][19] - Adjusted pre-provision net revenue (PPNR) increased by 10%, with a positive operating leverage of 250 basis points [6][18] - Adjusted return on assets was 1.2%, and return on tangible common equity was 18% [7] - Tangible book value per share increased by 18% year over year and by 5% sequentially [9][18] Business Line Data and Key Metrics Changes - The company achieved average loan growth of 5% year over year across diversified loan origination platforms [9] - Commercial relationship manager headcount increased by 11% year over year, contributing to record production in the Provide platform [10] - Wealth Management in Southeast markets grew assets under management by 16% year over year [12] - Embedded Payments business, New Line, saw fees increase by 30% compared to last year [27] Market Data and Key Metrics Changes - The Southeast regions contributed significantly to middle market loan growth, with North Carolina, South Carolina, Georgia, and Alabama showing the strongest results [11] - The consumer bank grew net new households by 6% year over year in the Southeast [10] - Average cost of consumer and small business deposits in the Southeast was 191 basis points, a 250 basis points spread to Fed funds [11] Company Strategy and Development Direction - The company emphasizes organic growth as its primary capital allocation priority, with a focus on stability, profitability, and growth [14][15] - The company plans to continue expanding its branch network in the Southeast, with 50 branches expected to open this year [25][36] - The company is raising its full-year guidance on NII, expecting record NII in 2025 even without rate cuts [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertain economic conditions, highlighting strong profitability and credit trends [5][14] - The company anticipates continued improvement in unrealized losses in its securities portfolio [32] - Management expects full-year adjusted noninterest income to increase by 1% to 2% despite muted capital market trends [33] Other Important Information - The company plans to resume share repurchases in the third quarter [14] - The net charge-off ratio was 45 basis points, at the lower end of expectations, with commercial charge-offs at 38 basis points [29] - The CET1 ratio ended the quarter at 10.6%, consistent with near-term targets [31] Q&A Session Summary Question: Capital allocation and potential M&A - Management emphasized organic growth as the priority, with M&A being a means to achieve strategic outcomes rather than a standalone strategy [44][46] Question: Impact of tax bill on solar residential solar panel industry - Management noted that existing solar portfolios are unaffected, and expects net solar charge-offs to decrease in the coming quarters [51][53] Question: Margin improvement and competitive dynamics - Management highlighted strong DDA performance as a key driver of margin improvement and noted rational competition in both loan and deposit sides [62][65] Question: Expectations for loan growth - Management expressed confidence in consumer loan growth and noted that commercial clients are beginning to make larger investment decisions [71][75] Question: Thoughts on stablecoins and regulatory relief - Management is optimistic about stablecoins' potential use cases, particularly in cross-border payments, and expects regulatory relief to benefit regional banks [83][90]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.88, or $0.90 excluding certain items, exceeding consensus estimates [3][4] - Adjusted revenues grew by 6% year over year, with net interest income (NII) increasing by 7% [4][16] - Adjusted pre-provision net revenue (PPNR) increased by 10%, with a positive operating leverage of 250 basis points [4][14] - Tangible book value per share increased by 18% year over year and by 5% sequentially [5][15] - The adjusted return on assets was 1.2%, and the adjusted return on tangible common equity was 18% [4][5] Business Line Data and Key Metrics Changes - The company achieved average loan growth of 5% year over year across various segments, including commercial and industrial (C&I), commercial real estate (CRE), leasing, mortgage, home equity, and auto [6][7] - The Home Equity business ranked second in market share within its footprint, with production growth being the third best in the country [7] - The Southeast markets saw a 16% year-over-year growth in assets under management in Wealth Management, reaching nearly $16 billion [9] Market Data and Key Metrics Changes - The Southeast regions contributed significantly to total middle market loan growth, with North Carolina, South Carolina, Georgia, and Alabama showing the strongest results [8] - Average cost of consumer and small business deposits in the Southeast was 191 basis points, providing a 250 basis points spread to Fed funds [8] Company Strategy and Development Direction - The company emphasized organic growth as its primary capital allocation priority, followed by dividends and share repurchases [12][35] - The focus remains on building density in branch locations to drive organic growth, particularly in the Southeast [46][77] - The company plans to continue investing in technology and sales personnel to support growth initiatives [26][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record NII for 2025, even without rate cuts for the remainder of the year [12][30] - The company is positioned to perform well in various economic environments, with a resilient business mix and defensively positioned balance sheet [11][30] - Management noted that while economic uncertainty exists, there are positive indicators for loan growth, particularly in consumer lending [71][96] Other Important Information - The company plans to resume share repurchases in the third quarter [12] - The net charge-off ratio was at the lower end of expectations, with a decrease in nonperforming assets (NPAs) [27][28] - The CET1 ratio was reported at 10.6%, consistent with near-term targets [29] Q&A Session Summary Question: Capital allocation and potential M&A - Management emphasized organic growth as the priority, with M&A being a means to achieve strategic outcomes rather than a standalone strategy [40][42] Question: Impact of tax bill on solar industry exposure - Management indicated that existing solar portfolios are unaffected, and net solar charge-offs are expected to decrease in the coming quarters [49][50] Question: Margin improvement and competitive dynamics - Management noted strong performance in demand deposits and expects continued NIM improvement driven by fixed-rate asset repricing [60][65] Question: Expectations for loan growth - Management expressed confidence in balanced growth across consumer and commercial loans, supported by diverse origination platforms [71][96] Question: Thoughts on stablecoins and regulatory relief - Management is optimistic about stablecoins' potential in cross-border payments and anticipates benefits from expected regulatory relief for regional banks [82][90]