The damage to the area just below the gutter was so extensive that the band joist was completely gone and we could see into the house.
Not only was the wood rotten, but there were signs of active termites.
After "pecking" little by little up the wall until the rotting stopped we found the damage went up a story and a half.
When the house was purchased, only a small amount of water damage was found in the basement. It did not indicate there was much of an issue.
Once the wall was painted, there were no signs the repairs were even made.
After the framing was replaced and the proper flashing was installed, the stucco was repaired.