Financial Data and Key Metrics Changes - The company reported earnings per share of $1.04, or $1.08 excluding certain items, with an adjusted return on equity of 14.5% and an adjusted return on assets of 1.41% [3][4] - Adjusted fourth quarter revenues rose 5% year over year, driven by a 6% increase in net interest income and a 13% increase in wealth and asset management fees [4][14] - The CET1 ratio increased to 10.8%, and tangible book value per share grew 21% year over year [4][25] Business Line Data and Key Metrics Changes - Average loans increased by 5% year over year, with consumer loans and middle market C&I loans both growing by 7% [4][14] - Wealth and asset management fees increased by 13%, with assets under management reaching $80 billion [9][21] - Commercial payments fees grew by 8% year over year, driven by core treasury management activity [21] Market Data and Key Metrics Changes - In the Southeast, the company opened 50 new branches, contributing to a 2.5% growth in net new consumer households year over year [6][20] - Consumer deposits in the Southeast increased by 4% sequentially, accounting for over 50% of total consumer deposit growth for the quarter [20][21] - The company achieved the number two origination market share in HELOC within its footprint, up from number four in the prior year [16] Company Strategy and Development Direction - The company is focused on stability, profitability, and growth, with a disciplined approach to operations and long-term investments [3] - The merger with Comerica is expected to close on February 1, 2026, with anticipated expense synergies of $850 million and revenue synergies of over $500 million over the next five years [10][11] - The company aims to enhance its middle market platform and deepen client relationships through the merger, while also expanding its retail banking business in Texas [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain environments and deliver strong shareholder returns [3][26] - The outlook for 2026 includes expectations for net interest income to range between $8.6 billion and $8.8 billion, with a focus on improving the combined balance sheet [27][28] - Management noted that while 2025 was eventful, the company is pleased with its disciplined operating performance and financial commitments [26] Other Important Information - The company shipped over 400 updates to its consumer mobile app in 2025, which was recognized as the top mobile banking app for user satisfaction among regional banks [6][7] - The net charge-off ratio was 40 basis points for the quarter, the lowest level in the past seven quarters, indicating improved asset quality [4][23] Q&A Session Summary Question: What are the biggest opportunities with Comerica? - Management highlighted immediate opportunities in leveraging Comerica's existing customer base and expanding in Texas, with long-term potential in innovation banking [36][38] Question: How is the integration of Comerica progressing? - The integration is ahead of schedule, with the conversion date moved up to Labor Day, allowing for earlier realization of synergies [50][53] Question: What is the outlook for C&I loan growth? - Management noted that while utilization dipped due to external factors, there has been a rebound in C&I loan balances since January 1, 2026, driven by strong production [56][75]

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.04, or $1.08 excluding certain items, with an adjusted return on equity of 14.5% and an adjusted return on assets of 1.41% [3][4] - Adjusted fourth quarter revenues rose 5% year over year, driven by a 6% increase in net interest income and an adjusted efficiency ratio of 54.3% [4][13] - The CET1 ratio increased to 10.8%, and tangible book value per share grew 21% year over year [4][25] Business Line Data and Key Metrics Changes - Average loans increased 5% year over year, with consumer loans and middle market C&I loans both growing by 7% [4][14] - Wealth and asset management fees increased by 13%, with assets under management reaching $80 billion [9][21] - Commercial payments fees grew by 8% year over year, driven by core treasury management activity [21] Market Data and Key Metrics Changes - In the Southeast, the company opened 50 new branches, contributing to a 2.5% growth in net new consumer households year over year [6][20] - Consumer deposits in the Southeast increased by 4% sequentially, accounting for over 50% of total consumer deposit growth for the quarter [20] - The company achieved the number two origination market share in HELOC within its footprint, up from number four in the prior year [16] Company Strategy and Development Direction - The company is focused on stability, profitability, and growth, with a disciplined approach to operations and long-term investments [3] - The merger with Comerica is expected to close on February 1, 2026, with anticipated expense synergies of $850 million and revenue synergies of over $500 million over the next five years [10][11] - The company aims to enhance its middle market platform and deepen client relationships through the merger, while also expanding its retail banking business [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain environments and deliver strong shareholder returns [3] - The outlook for 2026 includes expectations for net interest income to range between $8.6 and $8.8 billion, with a focus on improving the combined balance sheet [27][28] - Management noted that while 2025 was eventful, they are pleased with their disciplined operating performance and ability to meet financial commitments [26] Other Important Information - The company shipped over 400 updates to its consumer mobile app in 2025, recognized as the top mobile banking app for user satisfaction among regional banks [6][7] - The net charge-off ratio was 40 basis points for the quarter, the lowest level in the past seven quarters, indicating improved asset quality [4][23] Q&A Session Summary Question: What are the biggest opportunities with Comerica? - Management highlighted immediate opportunities in leveraging Comerica's existing customer base and expanding in Texas, with a long-term focus on innovation banking [36][39] Question: How is the integration of Comerica progressing? - The integration is ahead of schedule, with the conversion date moved up to Labor Day from mid-October, allowing for earlier realization of synergies [49][53] Question: What is the outlook for C&I loan growth? - Management noted that while utilization dipped during the government shutdown, there has been a rebound, and they expect C&I loan balances to increase in early 2026 [55][56] Question: What changes have been made to the assumptions regarding the Comerica transaction? - There have been no material changes to the assumptions, but the timing of the close and conversion has improved, leading to potentially better expense savings in 2026 [72][73]