Financial Data and Key Metrics Changes - The company reported a significant increase in its allowance for credit losses (ACL), which rose from $300 million to $632 million, reflecting prudent preparation for potential credit losses in a challenging environment [38] - The tangible common equity increased by 35 basis points during the quarter, despite the company buying back $100 million of common stock [56] Business Line Data and Key Metrics Changes - The Corporate and Institutional Banking (CIB) segment is expected to see growth in fee income, particularly from loan syndication and corporate services, which have been building over the past 18 months [17][19] - The mortgage lending business is gaining traction, with expectations for continued growth in fee income from originating loans for resale in the secondary market [19] Market Data and Key Metrics Changes - The company noted a positive trend in office leasing, with good activity in various markets during the fourth quarter, indicating a recovery in the office sector [30] - The life sciences market is experiencing mixed results, with some projects succeeding while others face challenges due to macroeconomic factors and reduced funding [28] Company Strategy and Development Direction - The company aims to diversify its earning assets and increase fee income as a larger part of its revenue over the long term [16] - There is a focus on enhancing treasury management services and expanding into private banking, which are expected to contribute to revenue growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, anticipating it to be near the end of the current credit cycle, with signs of improvement in leasing and property sales [12] - The company is cautiously optimistic about the support from sponsors in the life sciences sector, although some projects may still face challenges [34] Other Important Information - The company has been actively managing its non-performing assets, with a focus on working collaboratively with sponsors to resolve issues [48] - The company has seen a return of liquidity in the office space, with several projects refinancing successfully [32] Q&A Session Summary Question: Outlook on loan sales and credit charge-offs - Management confirmed that the recent loan sale was at par and does not indicate a change in strategy, emphasizing that it was a unique case [8] Question: Fee income growth potential - Management indicated that while fee income has not been a significant part of the story, there are long-term tailwinds expected from investments in CIB [16] Question: Credit uncertainties in office and life sciences - Management acknowledged challenges in the life sciences sector but noted that there is no new speculative supply being added, which could support recovery [28] Question: Timeline for resolution of non-performing assets - Management discussed various paths for resolving non-performing assets, indicating that some may take longer than others [48] Question: Margin outlook and buyback plans - Management stated that they will be opportunistic with buybacks and are pleased with the margin performance, which held well during the quarter [56]