U.S. Bancorp

Ladies and gentlemen, thank you for standing by. Welcome to the U.S. Bancorp Third Quarter 2022 Earnings Conference Call. Following a review of the results by Andy Cesare, Chairman, President, and Chief Executive Officer, and Terry Dolan, Vice Chair and Chief Financial Officer, there will be a formal question and answer session. If you would like to ask a question, please press 1, then 0 on your touch-tone phone. You may remove yourself from the queue by repeating the 1, then 0 command. This call will be recorded and available for replay beginning today at approximately 11 a.m. Central Time. I will now turn the conference over to George Anderson, Director of Investor Relations for U.S. Bancorp.

Thank you, Alan, and good morning, everyone. With me today are Andy Cesari, our Chairman, President, and CEO, and Terry Dolan, our Vice Chair and Chief Financial Officer. During their prepared remarks, Andy and Terry will be referencing a slide presentation. A copy of the slide presentation as well as our earnings release and supplemental analyst schedules are available on our website at usbank.com. I would like to remind you that any forward-looking statements made during today's call are subject to risk and uncertainty. Factors that could materially change our current forward-looking assumptions are described on page two of today's presentation, in our press release, and in our Form 10-K and subsequent reports on file with the SEC. I'll now turn the call over to Andy.

Thanks, George. Good morning, everyone, and thank you for joining our call. Following our prepared remarks, Terry and I will take any questions you have. And I'll begin on slide three. In the third quarter, we reported earnings per share of $1.16, which include two cents per share of merger and integration charges related to the planned acquisition of MUFG Union Bank. Excluding these notable items, we reported earnings per share of $1.18 for the quarter. During the third quarter, we achieved record net revenue totaling $6.3 billion. Third quarter results were highlighted by strong revenue growth, well-controlled expenses, and stable credit quality. This quarter, we added $200 million to our loan loss reserve, reflecting loan growth, and are consistent through the cycle underwriting approach to risk management. At September 30th, our CET1 capital ratio was 9.7%. Our tangible book value per share totaled $20.73 at September 30th, or 3.2% lower than the prior quarter. driven by the impact of rising interest rates on our available for sale securities. Slide four provides key performance metrics. Excluding notable items, we delivered a return on average assets of 1.24% and a return on average common equity of 6%. Our return on tangible common equity was 21.4% on a core basis. Slide five highlights continued positive trends in digital engagement as consumer and business customers gain a deeper understanding of our digital capabilities and benefit from our digital plus human approach. Slide six shows progress across our digital and payments initiatives that are both deepening our core competencies and expanding our competitive advantage, which we believe will drive meaningful profit and return differentiation to our company. One example of our digital initiatives is our launch of TALIC Register, a next generation all-in-one payments and business analytics platform that is helping to bring greater simplicity, convenience, and efficiencies to the point of sale for our business banking customers. On the right side of the slide, you can see the continuing momentum we are gaining in real-time payments transactions. Year-to-date through September 30th, the total number of transactions are 17 times higher than the full year of 2020. Recently, we introduced an innovative real-time payment solution to auto dealers, where we provide loan funds instantly after a loan contract is finalized. This gives our participating dealer clients greater control over cash flow, and helps to improve their day-to-day operational efficiency. Turning to slide seven, our business banking initiative continues to gain traction with steady progress both in growing accounts and expanding wallet share. Growth in relationships with both banking and payments products has continued to meaningfully outpace growth in total relationships over the past 12 months. Looking ahead, we expect recently launched and innovative offerings in development to help further deepen our existing relationships between business banking and payments customers. Now let me turn the call over to Terry who will provide more detail on the quarter.