U.S. Bancorp

To withdraw your question, please press star then one again. This call will be recorded and available for replay beginning today at approximately 10 a.m. Central Time. I will now turn the conference call over to George Anderson, Senior Vice President and Director of Investor Relations for U.S. Bancorp.

Thank you, Krista, and good morning, everyone. Today, I'm joined by our Chairman and CEO, Andy Cesari, Vice Chair and CAO, Terry Dolan, and Senior Executive Vice President and CFO John Stern. Together with their prepared remarks, Andy and John will be referencing a slide presentation. A copy of the presentation, our earnings release, and supplemental analyst schedules can be found on our website at usbank.com. Please note that any forward-looking statements made during today's call are subject to risk and uncertainty. Factors that can materially change our current forward-looking assumptions are described on page two of today's presentation, our press release, and in reports on file with the SEC. Following our prepared remarks, Andy, Terry, and John will take any questions that you have. I will now turn the call over to Andy.

Thanks, George. Good morning, everyone, and thank you for joining our call. I'll begin on slide three. In the second quarter, we reported diluted earnings per share of 97 cents, which included one cent per share of notable item related to the FDIC special assessment. Excluding this one-time charge, we delivered earnings per share of 98 cents. This quarter was highlighted by an increase in net interest income, continued fee income growth, prudent expense management, credit quality stabilization, and strong capital accretion. Notably, our return on tangible common equity increased to 18.6% on an adjusted basis. Turning to slide four, revenue growth for the quarter was supported by improved spread income as well as continued growth across many of our fee-based businesses. On both a linked quarter and year-over-year basis, Non-interest expense, as adjusted, was down, benefiting from cost synergies with Union Bank, prudent expense management, and multi-year investments across the business that have resulted in greater efficiencies and enhanced operating effectiveness. As I mentioned earlier, credit quality results were in line with our expectations as we saw stabilization in delinquency rates and a modest increase in MPAs. Average total deposits increased 2.2%, and we continue to see growth in consumer deposits despite industry and liquidity headwinds. As of June 30th, our tangible book value per share increased $23.15 to $23.15, or 2.8% better than last quarter and 10.1% higher than last year. Our CET1 capital ratio increased 30 basis points from the prior quarter and 120 basis points from last year, to end the quarter at 10.3%. John will discuss some key takeaways from this year's stress test in his opening remarks. Slide five provides key performance metrics. Excluding notable items, our return on average assets increased to 0.98% and return on average common equity improved to 12.6%. Our efficiency ratio also improved from the first quarter to 16.7% on an adjusted basis. Turning to slide six, Fee income represents just over 40% of total net revenue and benefited this quarter from high seasonal revenues across each of our payment businesses. Strong co-growth and trust in investment management fees as well as improved treasury management revenue. Overall, diversified fee income businesses continue to operate at scale and provide earnings consistency through the cycle. And most importantly, we are encouraged by the progress we're making to deepen our most profitable client relationships expand our product set, and enhance our distribution channels. These efforts are positioned as well for continued growth and strategic differentiation. Let me now turn the call over to John, who will provide more detail on the quarter, as well as forward-looking guidance.