Core Insights - The company reported a strong fourth-quarter loan growth, marking the highest production pace in years, with total loans growing approximately 7% annualized, although underlying growth was noted to be even higher [3][7] - Management emphasized that deposit growth remains a key strategic priority, having reduced brokered deposits by about $1.4 billion [4][5][19] - The net interest margin (NIM) improved by 31 basis points to 3.81%, with expectations for stability in 2026 and potential increases due to deposit mix improvements [6][8][11] Loan Production and Growth - The fourth-quarter loan growth was the strongest in at least two years, significantly offsetting elevated paydowns, although some portfolio segments showed seasonal weakness [3][4] - The company anticipates low-to-mid single-digit loan growth for 2026, influenced by timing effects and a focus on credit discipline [2][7] Deposit Strategy - Deposit growth is framed as a central strategic focus, with efforts in consumer banking, private banking, and commercial initiatives aimed at attracting deposit-rich customers [19] - The company has a significant opportunity to increase non-interest-bearing deposits, which currently remain below peer levels [19] Net Interest Margin and Financial Outlook - The linked-quarter NIM increase was attributed to a balance sheet restructuring and core NIM expansion, with expectations for a stable margin in 2026 [6][8][9] - Management expects the cumulative deposit beta to moderate, with an estimated incremental beta for future rate cuts around 50% [10] Asset Quality and Credit Conditions - Management reported stable credit conditions, having resolved two problem credits with less impact than expected and completed a sale of the Equipment Finance business [13][15] - The company is focused on cleaning up legacy nonperformers and has adequate reserves for the actions taken [14] Efficiency Initiatives - The company is in the "middle innings" of its Better Bank initiative, with expenses below the fourth-quarter 2022 run-rate despite inflation and ongoing investments [16] - Management highlighted a continuous improvement mindset, with efforts to inspect and optimize processes across various functions [17] Capital Deployment and Investment - Priorities for capital deployment include organic growth and investment, with share repurchases remaining a potential tool based on market conditions [20] - The company plans to continue hiring and upgrading talent, particularly in revenue-generating areas and support functions related to automation [18]

Wintrust Financial Corporation Earnings Release Presentation Q4 2025 Forward Looking Statements This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as "intend," "plan," "project," "expect," "anticipate," "believe," "estimate," "contemplate," "possible," "will," "may," "should," "would" and "could." Forward-looking statements and information are not historical facts, are premised on many f ...

Financial Data and Key Metrics Changes - The company reported a net interest margin (NIM) of 4.1% in Q4 2025, an increase of 22 basis points from the previous quarter [10] - Net interest income for Q4 was $85.3 million, up more than 10% quarter-over-quarter and nearly 20% year-over-year [11] - The diluted EPS for the quarter was $2.77, with non-core credits impacting earnings by approximately $0.30 per share [12] Business Line Data and Key Metrics Changes - The loan portfolio expanded by approximately $775 million in 2025, representing a growth of nearly 13% [3] - Total loan originations for the year reached approximately $1.9 billion [3] - In Q4, total loan originations and draws were approximately $599 million, with a weighted average coupon of 7.28% [8] Market Data and Key Metrics Changes - Deposits increased by roughly $1.4 billion, or about 23%, for the year [4] - In Q4, deposits grew by $304 million, or approximately 4.3% [9] - The cost of interest-bearing deposits declined by 43 basis points quarter-over-quarter [9] Company Strategy and Development Direction - The company aims to capture additional market share through traditional channels while enhancing long-term shareholder value [5] - New branches are planned in Florida and New Jersey to strengthen market presence [4] - The strategy includes managing asset quality, optimizing profitability, and expanding in New York and complementary markets [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of asset quality, with no broad-based negative trends observed [4] - The company anticipates modest NIM expansion in 2026, with a forecasted annual NIM of about 4.10% [16] - The outlook for non-interest income suggests a growth assumption of 5%-10% [17] Other Important Information - The effective tax rate for the quarter was about 30% [15] - The company plans to host an Investor Day on March 3rd, 2026, to discuss further developments [19] Q&A Session Summary Question: Loan mix and C&I growth - Management indicated that core C&I growth is not expected to be substantial, with a focus on healthcare-related C&I [21][23] Question: Asset quality and NPAs - Management reported that two loans in the multifamily sector are expected to have little or no loss upon sale, with ongoing workouts for specific reserves [29][30] Question: CET1 ratio targets - The CET1 ratio is currently about 10.7%, with expectations to trend towards low nines as the balance sheet grows [31][32] Question: Digital transformation completion - The digital transformation is anticipated to be completed by President's Day weekend, with expenses expected to finalize at that time [37][39] Question: Demand deposit growth contributors - The largest contributors to demand deposit growth were municipal deposits and property managers, with a broad distribution across various sectors [42] Question: M&A opportunities - Management does not see significant value in current M&A opportunities and will focus on organic growth instead [44] Question: Team lift-out strategy - Management indicated that team lift-outs are unlikely, preferring to acquire talent within existing markets [47]

Financial Data and Key Metrics Changes - The company reported a net interest margin (NIM) of 4.1% in Q4, an increase of 22 basis points from the previous quarter [11] - Net interest income for Q4 was $85.3 million, up more than 10% on a linked quarter basis and nearly 20% for the year [12] - The diluted EPS for Q4 was $2.77, with non-core credits estimated at about $4.6 million, or approximately $0.30 per share [13] Business Line Data and Key Metrics Changes - The loan portfolio expanded by approximately $775 million, representing a growth of nearly 13% for the year, with total loan originations reaching approximately $1.9 billion [3][4] - In Q4, total loan originations and draws were approximately $599 million, with a weighted average coupon of 7.28% [9] - Deposits increased by roughly $1.4 billion, or about 23% for the year, with a Q4 growth of $304 million, or approximately 4.3% [4][10] Market Data and Key Metrics Changes - The company opened a full-service branch in Lakewood, New Jersey, and plans to open two new branches in Florida in the first half of 2026 [4] - Asset quality remains solid, with no broad-based negative trends across loan segments, geographies, or sectors [4] Company Strategy and Development Direction - The company aims to capture additional market share through traditional channels while enhancing long-term shareholder value [5] - The strategy for 2026 includes focusing on managing asset quality, optimizing profitability, and expanding presence in New York and other complementary markets [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's disciplined underwriting and proactive portfolio management, indicating no areas of concern from client feedback [5] - The company expects to grow loans by about $800 million, or approximately 12% in 2026, with a forecasted NIM of about 4.10% for the year [15][16] Other Important Information - The effective tax rate for Q4 was about 30% [14] - The company is hosting an Investor Day at its headquarters in New York on March 3rd, with limited seats available for in-person attendance [19] Q&A Session Summary Question: Loan mix and C&I growth - Management does not expect substantial growth in core C&I but anticipates some growth in healthcare-related C&I [22] Question: CRE concentrations - Management expects CRE concentration increase to be stable going forward as owner-occupied CRE continues to grow [23] Question: Contribution of new branches to municipal deposit growth - New Jersey branches have contributed to municipal deposit growth, while Florida branches are expected to contribute significantly in the future [24] Question: Asset quality and NPAs - Management reported that NPAs increased by around $5 million but are stable, with expectations of little or no loss upon the sale of affected assets [28] Question: CET1 ratio targets - Management aims for TCE to trend from the current high 8s to low 9s as the balance sheet grows [30] Question: Digital transformation completion - The digital transformation is anticipated to be completed by President's Day weekend in Q1 [36] Question: Demand deposit growth drivers - The largest contributors to demand deposit growth were municipal deposits and property managers [41] Question: M&A possibilities - Management does not see significant value in current M&A opportunities and is focused on organic growth [43] Question: Team lift-out strategy - Management is not inclined towards team lift-outs but remains open to unique opportunities that fit the company culture [46]

Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $1.58 for the fourth quarter, representing a 32% increase from the third quarter of 2025 and a 33% increase from the fourth quarter of 2024 [9] - Full year earnings per share was $5.25 on an operating basis and $5.06 on a GAAP basis, with net income available to common shareholders at $86.4 million for the quarter and $276.5 million for the year [9] - The return on average assets was 1.62% for the year, and the return on common equity was nearly 17% [9] - The tangible book value grew 4% to $33.62 per share [9] Business Line Data and Key Metrics Changes - Loan growth for the quarter was annualized at 12%, with a significant increase in the loan pipeline, which rose by 11% quarter-over-quarter [3] - The C&I book experienced nearly 10% growth during the year, marking the highest growth rate in that segment in several years [7] - Non-interest revenue saw a 26% growth from the full year 2024 to 2025, driven by increased service charges [12] Market Data and Key Metrics Changes - The company has expanded its correspondent banking relationships to 388, including 145 that settle at the Federal Reserve Bank [5] - The new Texas banking team is expected to drive growth, with a focus on C&I lending rather than commercial real estate [49] Company Strategy and Development Direction - The company is focused on organic growth, particularly through the expansion in Texas, which is expected to contribute significantly to loan balances and deposits in 2026 [49] - The efficiency ratio is expected to remain in the low 30s as the Texas team builds its book of business [51] - The company is actively managing its loan portfolio and has a disciplined approach to loan pricing, which has contributed to margin expansion [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan demand, particularly in the C&I sector, indicating a positive trend compared to previous quarters [24] - The company is prepared for potential economic fluctuations and is focused on maintaining strong liquidity levels without reliance on brokered deposits [15] - Management noted that while there are challenges in hiring due to competition, they are committed to bringing in quality talent to support growth [60] Other Important Information - The company paid down $30 million of subordinated debt at a cost of 4.5% [14] - The company has no brokered deposits or FHLB debt, maintaining a strong liquidity position [15] Q&A Session Summary Question: Trends in loan payoffs and expectations for loan growth - Management noted that projected payoffs have decreased significantly this quarter, leading to a more optimistic outlook for loan growth [21] Question: Economic backdrop and commercial loan demand - Management rated current commercial loan demand as slightly better than before, indicating a positive trend in C&I growth [24] Question: Margin expectations and fee collection impact - Management indicated that the December margin is a good starting point for 2026, with expectations for continued margin expansion [30] Question: Charge-offs and non-performing loans - The charge-off was related to a healthcare asset, which was anticipated and reserved for, and management is actively working on multifamily assets [36] Question: Tax rate expectations for 2026 - Management plans to continue leveraging tax credits, particularly around solar credits, to manage the tax rate going forward [43] Question: Growth expectations for the Texas team - The Texas team's budgeted growth for 2026 is higher than any other region, with expectations for significant contributions to loan balances [49] Question: Overall expense growth for 2026 - Management anticipates high single-digit expense growth for 2026, primarily driven by new hires that will generate revenue [57]

Financial Data and Key Metrics Changes - The company reported earnings of $177.3 million for Q4 2025, with an EPS of $2.89, and full-year earnings reached $578 million, or $9.17 per diluted share, marking record highs for both the quarter and the year [3][4] - Loan balances increased by over $1.5 billion, or 6.4% for the year, with a sequential growth of $786 million, or 3.2% in Q4 [3][6] - Net interest income grew by $7.6 million, and the net interest margin expanded by seven basis points [14][4] Business Line Data and Key Metrics Changes - Fee income contributed $801 million to revenue, representing 38% of total revenue, with a sequential increase of 5.1% [4][11] - The Fiduciary and Asset Management and Transaction Card lines achieved record revenue for both the quarter and the full year, with AUMA surpassing $126 billion [7][12] - The core C&I loan portfolio grew by 5.5% sequentially, while healthcare loans increased by 3.3% [8][6] Market Data and Key Metrics Changes - Growth in Texas was particularly strong, contributing $561 million to total growth in Q4 [6] - The company outperformed the KBW Regional Banking Index in total shareholder return over one, three, five, and ten-year periods by 7%, 3%, 42%, and 51%, respectively [4] Company Strategy and Development Direction - The company aims to create long-term sustainable shareholder value while maintaining a disciplined approach to risk management [3] - Future loan growth is expected to be in the upper single digits, with net interest income projected to be between $1.44 billion and $1.48 billion for 2026 [16][17] - The company is focused on investing in growth areas while aligning its expense base with future needs [17][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the path ahead, highlighting the diverse growth across various lending types and geographies [5][21] - The outlook for credit quality remains strong, with expectations of net charge-offs remaining below historical norms [10][59] - Management noted that while credit normalization is expected in the long term, the current environment remains favorable [10][59] Other Important Information - The company repurchased over 2.6 million shares at an average price of $107.99 per share during the quarter [7] - Total expenses decreased by $8.7 million, with personnel expenses down by $3.6 million [15] Q&A Session Summary Question: Drivers of Upper Single-Digit Loan Growth - Management highlighted diverse growth across geography and lending types, with significant contributions from the mortgage finance business [20][21] Question: Future Share Buybacks and CET1 Ratio - Management indicated that share buybacks would be opportunistic and not tied to a specific CET1 ratio [23] Question: Deposit Growth and Competition - Management noted that while competition for deposits remains high, it is at a normal level without irrational behavior in the market [30][31] Question: Fee Income Expectations - Management expects mid-single-digit growth in fee income, with trading revenue potentially shifting to net interest income due to market conditions [37][39] Question: Outlook for Expenses and Efficiency - Management anticipates a strong efficiency outlook with a target efficiency ratio of 63%-64% for 2026 [40][41] Question: Mortgage Finance Business Contribution - Management expects the mortgage finance business to reach a billion in commitments by the end of 2026, with a significant portion funded [46] Question: Capital Deployment Opportunities - Management remains open to M&A opportunities but prioritizes loan growth and is cautious about deploying capital aggressively [93][94]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.89 for Q4 2025, a 7% increase compared to the linked quarter [4] - For the full year 2025, net interest income improved by 2% compared to 2024, while net interest margin declined by 7 basis points [13][14] - The efficiency ratio for Q4 was stable at 57.8%, with a full-year efficiency ratio of 58.7% compared to 58% in 2024 [16][18] - The allowance for credit losses increased to 1.12% of total loans from 1% at the prior year-end [7] Business Line Data and Key Metrics Changes - Loan growth for 2025 was 6% compared to 2024, with a 2% annualized loan growth in Q4 compared to the linked quarter [10] - Fee-based income improved by 5% in Q4 and by 6% for the full year compared to 2024, driven by higher lease income and trust and investment income [15] - Non-interest expense grew by 3% for the full year 2025 compared to 2024, primarily due to higher salaries and employee benefits [16] Market Data and Key Metrics Changes - The company experienced a decline in deposit balances of $22 million compared to the linked quarter, primarily due to reductions in governmental deposits [17] - Total deposits, excluding brokered CDs, increased nearly $160 million compared to the prior year, with non-interest-bearing deposits contributing $38 million of the growth [17] Company Strategy and Development Direction - The company is focusing on technological capabilities and has implemented state-of-the-art software to improve operational efficiency [20] - There is a strategic emphasis on maintaining a loan-to-deposit ratio around 89% and managing the size of the balance sheet to avoid crossing the $10 billion asset threshold organically [24] - The company plans to continue investing in talent and technology to enhance growth and operational efficiency [21][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in 2026, expecting a range of 3% to 5% compared to 2025, influenced by timing of paydowns [25] - The company anticipates a slight reduction in net charge-offs for 2026, which is expected to positively impact provisions for credit losses [26] - Management highlighted the importance of strategic patience in evaluating M&A opportunities, focusing on existing markets and potential acquisitions [43][44] Other Important Information - The company plans to continue its share buyback program and maintain its dividend rate [74] - The planned retirement of the Chief Commercial Banking Officer was announced, with a successor already appointed [22] Q&A Session Summary Question: Margin guidance and accretion benefit - Management indicated that the accretion benefit for the full year is expected to be around five basis points [31] Question: Tax rate expectations - The tax rate for 2025 was approximately 21%, with expectations to rise to around 22% for 2026 [32] Question: Loan demand and production expectations - Management expressed optimism about loan growth, particularly in commercial lending, despite potential payoffs in a declining rate environment [33][34] Question: M&A environment and criteria - The company is open to M&A opportunities, particularly within its existing footprint, with a preference for larger deals in the $3-$5 billion range [43][44] Question: Northstar Leasing performance - Management acknowledged a slight increase in charge-offs but remains optimistic about the long-term outlook for the Northstar Leasing business [48] Question: Capital actions and share buybacks - No new capital actions beyond the subordinated debt paydown were planned, with a focus on organic growth [74] Question: Competitive factors in lending - Management noted that while there is high demand for quality borrowers, they are not seeing excessive competitive pressure impacting their lending metrics [105]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.89 for Q4 2025, a 7% increase compared to the linked quarter [4] - For the full year 2025, the company achieved loan growth of 6% compared to 2024, and fee-based income improved by 6% [5] - The efficiency ratio was stable at 57.8% for Q4 2025, with a reported efficiency ratio of 58.7% for the full year, compared to 58% in 2024 [16][18] Business Line Data and Key Metrics Changes - Fee-based income improved by 5% in Q4 compared to the linked quarter, driven by higher lease income and deposit account service charges [14] - The net interest margin declined by four basis points in Q4, impacted by lower loan yields [12] - The company experienced a near-record quarter of commercial loan production, with commercial real estate loans comprising 35% of total loans [11] Market Data and Key Metrics Changes - The allowance for credit losses increased to 1.12% of total loans at year-end, up from 1% at the prior year-end [6] - Non-performing loans grew nearly $4 million compared to the linked quarter, primarily due to an increase in non-accrual loans [9] - The company’s criticized loan balances as a percentage of total loans improved to 3.5% compared to 3.99% at September 30 [9] Company Strategy and Development Direction - The company is focusing on technological capabilities and has implemented state-of-the-art software programs to enhance operational efficiency [20] - There is a strategic emphasis on solidifying strategies around the small-ticket leasing business, with expectations of reduced charge-off levels in the second half of 2026 [23] - The company plans to manage its balance sheet size and does not intend to cross the $10 billion asset threshold organically [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive operating leverage in 2026, despite potential rate cuts [25] - The company anticipates loan growth between 3% and 5% compared to 2025, depending on the timing of paydowns [25] - Management expects a slight reduction in net charge-offs for 2026 compared to 2025, positively impacting the provision for credit losses [26] Other Important Information - The company’s book value per share grew to $33.78, while tangible book value per share improved to $22.77 [18] - The company continues to invest in talent and has made key hires to support growth and expertise in its existing groups [21] - The company received recognition from American Banker's Best Banks to Work For for five consecutive years [20] Q&A Session Summary Question: Margin guidance and accretion benefit - Management indicated that the accretion benefit for the full year is expected to be closer to five basis points [30] Question: Tax rate expectations - The tax rate for 2025 was around 21%, with expectations of approximately 22% for 2026 [32] Question: Loan demand expectations - Management expressed encouragement regarding loan growth, particularly in the commercial sector, despite potential payoffs in a declining rate environment [33][34] Question: M&A environment and criteria - The company is focused on strategic patience and evaluating opportunities primarily within its existing footprint, with a size preference for larger deals in the $3-$5 billion range [44][45] Question: Northstar Leasing performance - Management acknowledged a slight increase in charge-offs but remains optimistic about the long-term outlook for the Northstar Leasing business [48][50] Question: Capital actions and share buybacks - Management confirmed ongoing share buyback programs and a continuation of the dividend rate [74] Question: Competitive factors in lending - Management noted that there is high demand for high-quality borrowers, and they do not see significant competitive pressure impacting their metrics [104]

Core Insights - Fifth Third Bancorp (FITB) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.08, exceeding the Zacks Consensus Estimate of $1.01, and up from 90 cents in the prior-year quarter [1][2][8] - The company's net income available to common shareholders (GAAP basis) was $699 million, reflecting a 20% year-over-year increase [2] - Total quarterly revenues (FTE) reached $2.34 billion, an 8% increase year over year, surpassing the Zacks Consensus Estimate of $2.32 billion [3] Financial Performance - For 2025, total revenues (FTE) were $9.04 billion, a 6% increase year over year, also exceeding the Zacks Consensus Estimate of $9.01 billion [3] - Net interest income (NII) for the fourth quarter was $1.53 billion, up 6% year over year, driven by proactive deposit and wholesale funding management [4] - Non-interest income rose 11% year over year to $811 million, primarily due to increases in wealth and asset management, commercial payment, and consumer banking revenues [5] Expenses and Efficiency - Non-interest expenses increased 7% year over year to $1.31 billion, attributed to rising costs across all components [5] - The efficiency ratio improved to 55.8%, down from 56.4% in the year-ago quarter, indicating enhanced profitability [5] Loan and Deposit Trends - As of December 31, 2025, portfolio loans and leases slightly declined to $122.6 billion, while total deposits increased by 3% to $171.8 billion [6] - The provision for credit losses was reported at $119 million, down 34% from the previous year [7] Credit Quality - The total non-performing portfolio loans and leases decreased to $797 million, a 6.6% decline year over year [9] - Net charge-offs in the fourth quarter fell to $125 million, or 0.40% of average loans and leases, down from 0.46% in the prior-year quarter [9] Capital Position - The Tier 1 risk-based capital ratio was 11.82%, slightly down from 11.86% in the prior-year quarter, while the CET1 capital ratio increased to 10.77% from 10.57% [10] Strategic Outlook - The company anticipates closing its merger with Comerica on February 1, 2026, which is expected to enhance scale, profitability, and geographic reach [11]

Core Viewpoint - First Horizon reported a strong finish to 2025, highlighting improved profitability metrics, solid loan and deposit trends, and substantial capital returns, while providing an optimistic outlook for 2026 with expected revenue growth and expense discipline [4]. Financial Performance - The company ended Q4 with earnings per share of $0.52, a net interest margin (NIM) of 3.51%, and 2% loan growth, benefiting from deposit pricing and loan growth in certain categories [3][6]. - Net interest income increased by approximately $2 million compared to the prior quarter, although NIM compressed by four basis points [2]. - The average interest-bearing deposit cost declined by 25 basis points to 2.53% [1]. Loan and Deposit Trends - Period-end loans increased by $1.1 billion, or 2%, from the prior quarter, with significant growth in loans to mortgage companies, which rose by $776 million [7]. - The company also reported broad-based strength in commercial and industrial lending, with a $727 million increase in the C&I portfolio [8]. Fee Income and Expenses - Fee income rose by $3 million from the prior quarter, primarily driven by service charges and elevated activity in the equipment finance lease business [9]. - Adjusted expenses increased by $4 million, with personnel expenses rising by $12 million due to annual bonus adjustments [10][11]. Credit Trends and Capital Return - Credit results remained stable, with net charge-offs increasing by $4 million to $30 million, and the net charge-off ratio at 19 basis points [14]. - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, having repurchased nearly $335 million of common shares in Q4 and a total of $894 million for 2025 [16][17]. 2026 Outlook - For 2026, management expects PPNR-driven revenue growth of 3%–7%, with NIM around the mid-340s and net charge-offs projected at 15–25 basis points [5][20]. - The company aims to deepen client relationships and invest in technology while maintaining efficiency and discipline [13][19].