Truist Financial Corporation

Ladies and gentlemen, and welcome to the Truist Financial Corporation second quarter 2026 earnings conference call. Currently, all participants are in 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.

Thank you, Rocco, and good morning, everyone. Welcome to Truist's second quarter 2026 earnings call. With us today are Chairman and CEO Bill Rogers, our CFO Mike Maguire, our Chief Risk Officer Brad Bender, as well as other members of the Truist Senior Management Team. During this morning's call, they will discuss Truist's second quarter 2026 results, share their perspectives on current business conditions, and provide an update on our 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 required reconciliations to GAAP. With that, I will turn it over to Bill.

Great. Thanks, Brad, and good morning, everyone, and thank you for joining our call today. Before we discuss our second quarter of 2026 results, let's begin as we always do with purpose on slide four. At Truist, our purpose is to inspire and build better lives and communities. And that purpose continues to guide how we serve our clients, support our teammates, and create value for our stakeholders. We also want to recognize that purpose is fueled by performance and committed leadership. During the second quarter, we announced that Mike Lyons will become Truist's next president and chief executive officer on September 1st. At that time, I'll transition to an executive chair role until my planned retirement in April of next year. As a founder of Truist, I am really excited about this important next chapter in our success journey. Mike's an accomplished and respected financial services leader with a proven ability to drive growth, improve performance, and create long-term shareholder value. Throughout the selection process, it was clear to our board that he's the right leader for Truist's future. He'll be leading a strong and experienced senior team that's helped build our momentum and position the company for continued success. Mike recognizes the strength of our franchise and the significant opportunities ahead. He shares our commitment to building a high-performing company by serving our clients and teammates, improving profitability and returns, and delivering superior outcomes for our shareholders. I look forward to supporting Mike and our leadership team over the coming months to ensure a smooth transition and build on our momentum. So now let's turn to the results on slide five. First, I want to step back and highlight what these results say about the progress we're making across Truist. Over the last several quarters, we've been clear about the actions we're taking to drive stronger returns, improve efficiency, and allocate capital to the highest value opportunities across the company. We continue to make deliberate choices about where we grow, where we invest, and how we optimize our balance sheet. While some of these choices may create near-term trade-offs in individual growth metrics, They're producing the outcomes we intended and are driving stronger profitability and improved financial performance. Importantly, these results demonstrate that we're making meaningful progress in building a more earnings efficient and more capital efficient growth company. As you can see on slide five, our results show significant improvement in our profitability and returns. For the second quarter, we delivered net income available to common shareholders of $1.5 billion are $1.23 per diluted share, representing a 37% increase over the second quarter of 2025. During the quarter, we added new clients, deepened existing relationships, and grew profitably in the businesses and products where we'd chosen to focus. Along with our expense discipline, this contributed to more than 300 basis points of year-over-year positive operating leverage. In addition, combined with disciplined capital deployment,