Financial Data and Key Metrics Changes - The company reported strong loan growth, solid organic deposit growth, and significant loan fee income, indicating a robust performance in 2025 [3][4] - The net interest margin (NIM) experienced slight compression but remains within historical ranges, with a current NIM of approximately 4.45% [14][16] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in Oklahoma and Texas, with expectations of $35-$45 million in new fundings needed monthly to sustain growth [10] - The company achieved better results on the deposit side compared to the loan side, reflecting effective team performance [10] Market Data and Key Metrics Changes - The company noted that the local economies in Oklahoma and Texas are thriving, contributing to the strong loan growth [10] - Deposit competition has intensified, with depositors becoming more aware of interest rates, impacting the company's ability to lower deposit costs [23][24] Company Strategy and Development Direction - The company is focused on maintaining discipline in loan pricing and underwriting standards while pursuing market share in key regions [11][32] - There is a strategic emphasis on accumulating capital for potential M&A opportunities, while avoiding share buybacks to maintain financial flexibility [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform at a high level despite economic uncertainties and competitive pressures [4][26] - The company anticipates challenges in maintaining margins due to potential interest rate cuts and deposit competition, but remains optimistic about future growth [16][21] Other Important Information - The company highlighted that oil and gas revenues are expected to have a minimal impact on overall financial performance, with a gradual decline anticipated [39][40] - The current cost of funds has decreased to 2.40%, influenced by balance sheet growth and new deposits [21] Q&A Session Summary Question: Loan growth expectations and payoff activity - Management noted that while there was accelerated payoff activity, the fourth quarter saw lighter payoffs than earlier in the year, with expectations of continued strong growth [9][10] Question: Net interest margin trends - Management indicated that slight NIM compression was expected due to rate cuts, but they remain confident in maintaining a healthy margin [12][14] Question: Deposit cost direction and competition - Management acknowledged that recent rate cuts did not significantly impact deposit betas, indicating a challenging environment for deposit pricing [23][24] Question: Capital management and stock performance - Management emphasized a focus on producing strong results rather than share buybacks, with confidence that the market will recognize the company's performance over time [26][27] Question: M&A opportunities and market conditions - Management stated that while AOCI pressures have eased, high valuations for quality deposit franchises remain a challenge for M&A activity [31][32] Question: Non-interest-bearing deposits and seasonality - Management explained that the decline in non-interest-bearing accounts is a response to increased customer awareness of interest rates, with minimal seasonality expected [34][35]

Financial Data and Key Metrics Changes - The company reported strong loan growth, solid organic deposit growth, and significant loan fee income, indicating robust performance in 2025 [3][4] - The provision for loan losses was not increased significantly despite the growth, reflecting improved asset quality [4] Business Line Data and Key Metrics Changes - The company experienced accelerated loan growth primarily in Oklahoma and Texas, with a focus on capturing market share in these regions [8][9] - Deposit growth outpaced loan growth, showcasing the effectiveness of the company's strategies [9] Market Data and Key Metrics Changes - The current cost of funds decreased to 2.40%, driven by balance sheet growth and new deposits [20] - The company noted that deposit competition has intensified, with depositors becoming more aware of interest rates [21][22] Company Strategy and Development Direction - The company aims to maintain discipline in pricing and underwriting while pursuing growth opportunities in dynamic markets [10][29] - There is a focus on accumulating capital for potential mergers and acquisitions, while remaining cautious about share buybacks [24][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform at a high level despite market fluctuations [4] - The company anticipates challenges in maintaining net interest margins due to potential rate cuts and competitive pressures [12][15] Other Important Information - The company highlighted that oil and gas revenues are expected to have a minimal impact on overall financial performance moving forward [36][37] - Management emphasized the importance of controlling expenses and maintaining operational efficiency [35] Q&A Session Summary Question: Loan growth expectations and payoff activity - Management noted that while loan growth was strong, payoff activity was lighter than expected, with a forecast of $25 million in monthly payoffs [6][9] Question: Net interest margin trends - Management indicated slight compression in net interest margin but remains optimistic about maintaining it within historical ranges [11][12] Question: Deposit costs and competition - Management discussed the current cost of funds and the competitive landscape for deposits, noting that recent rate cuts did not significantly affect deposit betas [20][21] Question: Capital management and stock performance - Management stated that while capital is accumulating, they are focused on producing strong results rather than engaging in share buybacks [24][31] Question: M&A opportunities and market conditions - Management acknowledged challenges in acquiring quality deposit franchises due to high valuations but remains disciplined in their approach [28][29]

Core Insights - First Horizon National (FHN) reported a revenue of $888 million for the quarter ended December 2025, reflecting a year-over-year increase of 21.8% and surpassing the Zacks Consensus Estimate by 2.99% [1] - The earnings per share (EPS) for the quarter was $0.52, an increase from $0.43 in the same quarter last year, although it did not meet the consensus EPS estimate of $0.47 [1] Financial Performance Metrics - Net Interest Margin (FTE) was reported at 3.5%, exceeding the average estimate of 3.4% from four analysts [4] - The Efficiency Ratio stood at 61.3%, higher than the average estimate of 59.7% based on four analysts [4] - The Net Charge-Off Ratio was 0.2%, matching the average estimate from three analysts [4] - Average Balance of Total Interest Earning Assets was $77.03 billion, above the estimated $76.16 billion from two analysts [4] - Total Nonperforming Loans and Leases were reported at $604 million, lower than the estimated $622.63 million from two analysts [4] - Total Non-Interest Income was $212 million, slightly above the average estimate of $209.29 million from four analysts [4] - Net Interest Income (FTE) was $679 million, exceeding the estimate of $659.03 million from three analysts [4] - Net Interest Income was reported at $676 million, compared to the average estimate of $654.83 million from three analysts [4] Stock Performance - Shares of First Horizon have returned +0.8% over the past month, while the Zacks S&P 500 composite increased by +1.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.52 for Q4 2025, with a net interest margin of 3.51% and 2% loan growth [6][8] - Pre-provision net revenue and return on tangible common equity reached 15% in the second half of 2025, with net interest income growth of approximately $2 million [4][6] - The average interest-bearing cost of deposits decreased by 25 basis points to 2.53% [6][7] Business Line Data and Key Metrics Changes - Loans to mortgage companies increased by $776 million quarter over quarter, contributing significantly to loan growth [8][9] - The commercial and industrial (C&I) portfolio saw a period-end balance increase of $727 million, indicating strong origination volume [9] - Fee income increased by $3 million from the prior quarter, driven by elevated activity in equipment finance lease businesses [9] Market Data and Key Metrics Changes - The average rate paid on interest-bearing deposits decreased from 2.78% in Q3 to 2.53% in Q4 [7] - The company maintained a cumulative deposit beta of 64% since rates began to fall in September 2024 [7] - The interest-bearing spot rate at the end of the quarter was 2.34% [7] Company Strategy and Development Direction - The company aims to continue returning capital to shareholders while investing in growth opportunities, with a focus on improving profitability and earnings growth in 2026 [5][12] - The strategic plan emphasizes differentiating in the marketplace and building long-lasting client relationships [15][16] - The company is focused on expense discipline and efficiency while investing in technology and tools to enhance associate effectiveness [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth and profitability, citing positive signs in current pipelines, especially in commercial lending [15][16] - The company expects year-over-year PPNR growth with mid-single-digit balance sheet growth and positive operating leverage [12][15] - Management highlighted the importance of managing capital and credit to maximize returns for shareholders [13][17] Other Important Information - The company returned just under $900 million in capital through stock repurchases and over $300 million in dividends in 2025 [4] - A new repurchase program of $1.2 billion was announced at the end of October, with nearly $1 billion of authorization remaining [11] Q&A Session Summary Question: Revenue outlook and key drivers - Management indicated that the revenue outlook of 3% to 7% growth is based on the current forward curve, with loan growth being a significant factor [19][20] Question: Expense growth normalization - Management expects expenses to grow in line with inflation, with a base case of 2.5%-3% growth, excluding past heavy tech investments [21][22] Question: Loan growth expectations across products - Management anticipates mid-single-digit loan growth, with positive momentum in C&I and mortgage warehouse lending [25][26] Question: Capital return strategy - Management confirmed a commitment to returning capital while focusing on organic growth opportunities, with a long-term target CET1 ratio of 10%-10.5% [52][53] Question: Commercial real estate expectations - Management expects an inflection in the CRE business due to increased construction starts and a healthy build in the CRE pipeline [70][71]

Core Insights - FB Financial (FBK) is projected to announce quarterly earnings of $1.14 per share, reflecting a year-over-year increase of 34.1% [1] - Revenues are expected to reach $174.93 million, marking a 34.2% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Earnings Estimates - The 'Core Efficiency Ratio' is estimated to be 52.6%, down from 56.1% a year ago [4] - 'Net Interest Margin' is forecasted at 3.9%, an increase from 3.5% reported in the same quarter last year [4] - 'Average Earning Assets' are expected to reach $15.19 billion, up from $12.37 billion a year ago [4] Income Projections - 'Mortgage banking income' is projected to be $11.66 million, compared to $10.59 million in the previous year [5] - 'Total Noninterest income' is expected to be $26.42 million, up from $22.00 million reported last year [5] - 'Net interest income (tax-equivalent basis)' is estimated at $150.43 million, compared to $109.00 million in the same quarter last year [6] Additional Metrics - 'Service charges on deposit accounts' are expected to reach $4.05 million, up from $3.55 million last year [7] - 'Net Interest Income' is projected at $147.77 million, compared to $108.38 million reported in the same quarter last year [7] - 'Investment services and trust income' is forecasted to be $4.24 million, an increase from $3.85 million in the previous year [8] Market Performance - FB Financial shares have returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +1.6% change [8] - The company holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [8]

Core Viewpoint - Wells Fargo & Company (WFC) reported fourth-quarter 2025 adjusted earnings per share of $1.76, exceeding the Zacks Consensus Estimate of $1.66, and up from $1.42 in the prior-year quarter [1][10]. Financial Performance - The results were bolstered by an increase in net interest income (NII), higher non-interest income, and lower provisions, although a rise in non-performing assets negatively impacted the results [2][10]. - The net income (GAAP basis) for the quarter was $5.36 billion, a 6% increase from the prior-year quarter, while total revenues were $21.29 billion, missing the Zacks Consensus Estimate of $21.6 billion but increasing 4.5% year over year [3][4]. - For the full year 2025, total revenues reached $83.69 billion, which also fell short of the consensus estimate of $84.03 billion, but represented a 2% year-over-year increase [4]. Income and Expenses - NII was reported at $12.33 billion, a 4% year-over-year increase, driven by higher loan and investment securities balances, although the net interest margin contracted by 10 basis points to 2.60% [5][10]. - Non-interest income grew 5% year over year to $8.96 billion, benefiting from the absence of prior-year losses and higher fees in various segments [6]. - Non-interest expenses decreased by 1% year over year to $13.72 billion, attributed to lower assessment expenses and efficiency initiatives, resulting in an improved efficiency ratio of 64% compared to 68% in the previous year [7]. Loan and Deposit Growth - As of December 31, 2025, total average loans increased by 3% sequentially to $955.8 billion, while total average deposits also rose by 3% to $1.37 trillion [8]. Credit Quality - The provision for credit losses was $1.04 billion, down 5% from the prior-year quarter, with net loan charge-offs at 0.43% of average loans, a decrease from 0.53% in the previous year [11]. - Non-performing assets increased by 7.1% year over year to $8.5 billion, indicating mixed credit quality [10][11]. Capital Ratios and Profitability - The Tier 1 common equity ratio as of December 31, 2025, was 10.6%, down from 11.1% in the fourth quarter of 2024 [12]. - Return on assets was 1.02%, slightly down from 1.05% in the prior-year quarter, while return on equity improved to 12.3% from 11.7% a year ago [13]. Share Repurchase and Future Outlook - In the reported quarter, Wells Fargo repurchased 58.2 million shares, amounting to $5 billion of common stock [14]. - The company has achieved a 15% return on tangible common equity (ROTCE) target and set a new medium-term target of 17-18%, positioning itself for continued healthy returns [15][16].

Core Insights - United Community Banks reported a solid end to 2025 with significant revenue growth, margin expansion, and improving profitability metrics [5][4][3] Financial Performance - Operating earnings per share increased 18% to $2.71 from $2.30 year-over-year, with annual revenue surpassing $1 billion, reflecting a 12% year-over-year growth [3] - Fourth quarter revenue rose 11% year-over-year, driven by net interest margin expansion and a 4.4% annualized loan growth [4] - Operating earnings per share for the fourth quarter was $0.71, up 13% year-over-year, with a return on assets of 1.22% and return on tangible common equity of 13.3% [4] Loan and Deposit Growth - Loan growth continued at a 4.4% annualized pace, primarily in the commercial and industrial (C&I) and home equity line of credit (HELOC) categories [2] - Novitas equipment finance achieved over $1 billion in originations for the first time, with loans representing 9.5% of total loans [1] - Deposits grew 1% for the year, with a notable increase of $293 million in public funds during the fourth quarter [6][7] Net Interest Margin and Balance Sheet - Net interest margin increased four basis points to 3.62%, with a loan-to-deposit ratio rising to 82% [8][11] - The cost of deposits improved by 21 basis points to 1.76%, and cumulative total deposit beta increased to 40% [6] Credit Quality and Expenses - Net charge-offs were reported at 34 basis points, with expectations for the loss rate to fall in the 20 to 25 basis point range for 2026 [14] - Operating expenses rose to $151.4 million, attributed mainly to higher health insurance costs, with management targeting 3% to 3.5% expense growth in 2026 [13] Capital Actions and M&A Strategy - The bank increased its dividend to an annualized rate of $1 per share and repurchased 1 million shares in the fourth quarter [15] - Management expressed a preference for its current footprint and is not actively seeking geographic expansion, identifying fewer than 10 potential M&A targets [16] Outlook for 2026 - Management is optimistic about continued growth and improvement, citing strong market economies and ongoing investments in talent and systems [17]

Financial Data and Key Metrics Changes - The company reported an 11% year-over-year revenue growth in Q4 2025, with operating earnings per share increasing by 13% to $0.71 [4] - For the full year, operating earnings per share grew by 18%, from $2.30 to $2.71, and revenue topped $1 billion with a 12% year-over-year growth [4][5] - Return on assets improved to 1.22%, and return on tangible common equity reached 13.3% for the year [4] Business Line Data and Key Metrics Changes - Retail and small business lending efforts surpassed $1 billion in annual production for the first time, alongside Novitas equipment finance team achieving the same milestone [5] - The loan portfolio grew at an annualized pace of 4.4%, primarily driven by C&I and HELOC categories [10] - Non-interest income was reported at $40.5 million, down from the previous quarter, with growth in wealth management and treasury management offset by a seasonal decline in mortgage [12] Market Data and Key Metrics Changes - The company experienced a positive seasonality in public funds, with an increase of $293 million in deposits [9] - The cost of deposits improved by 21 basis points to 1.76%, while cumulative total deposit beta increased from 37% to 40% [9] - The loan-to-deposit ratio increased to 82%, reflecting a trend towards higher loan growth relative to deposits [10] Company Strategy and Development Direction - The company is focused on improving the durability of earnings through reduced securities duration and investments in talent and systems for interest rate risk management [7] - Expansion efforts included the successful conversion of American National Bank and Fort Lauderdale to the company's systems, along with new office openings in North Carolina and Florida [8] - The company plans to be more assertive in share buybacks, given strong capital build and credit quality [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2026, citing a strong economy in their markets [15] - The competitive landscape remains robust, with a focus on client service and employee culture to attract talent [36] - Management does not foresee significant impacts from tariffs on credit quality, indicating stability in asset quality [68] Other Important Information - The company was recognized for retail client satisfaction and as one of the top banks to work for, highlighting its commitment to culture and community engagement [6] - The efficiency ratio improved by 264 basis points, with expectations for further improvements in 2026 [11][70] Q&A Session Summary Question: Balance sheet growth expectations for 2026 - Management expects balance sheet growth to depend on deposit growth, modeling it a couple hundred basis points below loan growth [19] Question: Anticipated loan growth and asset class focus - Management highlighted C&I and HELOC as focus areas, with Florida leading production due to recent acquisitions [20] Question: Future share repurchase strategy - Management intends to be more assertive with buybacks in 2026, given strong capital and credit quality [24] Question: Outlook on efficiency ratio and expense growth - Management is budgeting for operating leverage improvement in 2026, targeting a 3% to 3.5% growth rate in expenses [39] Question: Competitive landscape and hiring opportunities - Management noted increased competition but emphasized a focus on culture and client service to attract talent [36] Question: M&A opportunities and strategy - Management is focused on organic growth and sees limited M&A opportunities, preferring quality targets [41][77]

Core Insights - The Bank of New York Mellon Corporation reported $5.18 billion in revenue for Q4 2025, a 6.9% year-over-year increase, with an EPS of $2.08 compared to $1.72 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $5.12 billion by 1.21%, while the EPS fell short of the consensus estimate of $1.97 [1] Financial Performance Metrics - Tier 1 Leverage Ratio was reported at 6%, matching analyst estimates [4] - Net Interest Margin (FTE Basis) was 1.4%, slightly above the estimated 1.3% [4] - Book value per common share was $57.36, exceeding the estimate of $56.50 [4] - Average balance of total interest-earning assets was $387.29 billion, surpassing the estimate of $380.23 billion [4] Revenue Breakdown - Market and Wealth Services total revenue was $1.81 billion, above the $1.77 billion estimate, reflecting an 8.3% year-over-year increase [4] - Securities Services total fee and other revenue was $1.76 billion, matching the estimate, with a 7.2% year-over-year increase [4] - Securities Services net interest income was $735 million, exceeding the estimate of $693.25 million, representing a 7.9% year-over-year increase [4] - Total revenue for Securities Services was $2.5 billion, above the estimate of $2.46 billion, with a year-over-year increase of 7.4% [4] - Market and Wealth Services net interest income was $569 million, exceeding the estimate of $525.13 million, showing a 20% year-over-year increase [4] - Other Segment total revenue was $15 million, slightly above the estimate of $14.83 million, but reflecting a significant year-over-year decline of 179% [4] - Investment and Wealth Management net interest income was $51 million, surpassing the estimate of $44.37 million, with an 8.5% year-over-year increase [4] - Investment and Wealth Management total fee and other revenue was $803 million, slightly above the estimate of $801.07 million, but showing a year-over-year decline of 2.8% [4] Stock Performance - Shares of The Bank of New York Mellon have returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +2.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Banking profitability is expected to remain stable in the third quarter due to falling deposit rates offsetting recent policy rate cuts and supporting net interest margins (NIMs) [10] - The Reserve Bank of India's (RBI) 100 basis points cash reserve ratio (CRR) cut is anticipated to ease liquidity and support bank margins, releasing ₹1.87 lakh crore of interest-free funds for the banking sector [10][3] - Credit growth for large lenders has exceeded the banking system's growth of 10% to 12%, indicating strong demand for loans [10] Banking Sector Performance - Analysts predict that profitability will improve due to sustained advances growth, higher fee income, and lower credit costs, despite a decline in the yield on advances (YOA) [10] - The loan-to-deposit ratios (LDRs) across the banking system reached an all-time high of 81%, highlighting a divergence between credit growth and deposit mobilization, which poses systemic risks [6][10] - Demand for loans is expected to be driven by fast-growing sectors such as MSMEs and mid-corporates, along with retail sectors like gold loans and vehicle finance [7][10] NIM Expectations - NIM outcomes are expected to vary among banks, with some like Axis Bank and Indian Bank likely to report declines, while others such as HDFC and Kotak Mahindra may see expansions [10][6] - The high LDR may force banks to either slow down loan growth or increase deposit rates, both of which could negatively impact banking profits [6][10]