Financial Data and Key Metrics Changes - Central Bancompany reported a net income of $107.6 million for the fourth quarter, translating to $0.47 per fully diluted share, with a return on average assets of 2.17% [3] - The net interest margin on a fully taxable equivalent (FTE) basis was 4.41%, and the efficiency ratio was 47% [3] - The company experienced a 1% quarter-over-quarter increase in ending loans and a 1.7% increase in non-public deposits [4] Business Line Data and Key Metrics Changes - The wealth management segment saw assets under advice grow to $16 billion, driven by strong investment performance and net new money inflows [36] - Treasury management initiatives experienced some seasonality, with a noted falloff in payments volume in the fourth quarter, but the company continues to invest in this area for future growth [37] Market Data and Key Metrics Changes - The company noted that its deposit growth was partly seasonal, with a 1.7% increase in non-public deposits for the quarter and a 6% year-over-year growth [24][25] - The commercial loan growth was broad-based, although the installment loan portfolio did not contribute to growth [12][14] Company Strategy and Development Direction - M&A remains a core part of the company's strategy, with a focus on acquiring high-quality targets with approximately $2 billion in assets [8][9] - The company is looking to expand into Texas while continuing to grow in existing markets, with a list of about 30 potential acquisition targets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resumption of balance sheet growth and the potential for continued loan growth, although they refrained from providing specific forward guidance [12][14] - The company is focused on deploying excess capital prudently, with approximately $1.8 billion in excess capital available [4][26] Other Important Information - The company achieved a net promoter score improvement of 2 points to 73 across its business lines, reflecting enhanced customer satisfaction [2] - The effective tax rate for the quarter included unusual items, with a portion expected to be out of period [56] Q&A Session Summary Question: Update on M&A opportunities - Management confirmed that M&A is a core competency, with ongoing discussions with potential targets and a focus on high-quality acquisitions [8][9] Question: Balance sheet growth expectations - Management indicated that loan growth was broad-based and that they would not provide forward-looking guidance but noted a positive trend in the fourth quarter [12][14] Question: Spreads on new loan production - Management reported no spread compression and indicated that spreads on new loans remain around 300 basis points over comparable treasuries [21][22] Question: Wealth and treasury management initiatives - The wealth management segment is performing well, while treasury management is experiencing seasonal fluctuations but remains a focus for growth [36][37] Question: Branch expansion plans - The company plans to open new branches in St. Louis and Denver, with specific timelines for openings in 2026 [40][41]

Financial Data and Key Metrics Changes - Central Bancompany reported a net income of $107.6 million for Q4 2025, translating to $0.47 per fully diluted share, with a return on average assets of 2.17% [3] - The net interest margin on a fully taxable equivalent (FTE) basis was 4.41%, and the efficiency ratio on an FTE basis was 47% [3] - The company experienced net charge-offs of 10 basis points, with an allowance covering 131 basis points of total loans [3] - Capital levels at the holding company were reported at approximately $1.8 billion in excess capital, equating to $7.50 per share [4] Business Line Data and Key Metrics Changes - The company noted a 1% quarter-over-quarter increase in ending loans and a 1.7% increase in non-public deposits [4] - The wealth management segment saw assets under advice grow to $16 billion, driven by strong investment performance and net new money inflows [37] Market Data and Key Metrics Changes - The company indicated that the deposit growth was partly seasonal, with a significant portion of deposits related to public funds, which typically see increases at year-end due to property tax collections [24] - Year-over-year, non-public deposits grew by approximately 6% [25] Company Strategy and Development Direction - M&A remains a core part of the company's strategy, with a focus on acquiring high-quality targets with compatible cultures, particularly in existing markets and potential expansion into Texas [9][10] - The company is looking to deploy its excess capital prudently, with M&A opportunities being a primary focus [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resumption of balance sheet growth and indicated that loan growth was broad-based, although they refrained from providing specific forward-looking guidance [13][14] - The operating environment in Q4 was characterized by a reduction in refinancing activity, which contributed to improved loan growth [15] Other Important Information - The company is planning branch expansions in St. Louis and Denver, with new branches expected to come online in 2026 [40] - Management emphasized the importance of maintaining consistent credit underwriting standards throughout economic cycles [14] Q&A Session Summary Question: Update on M&A opportunities - Management confirmed that M&A is a core competency and they are actively pursuing opportunities, with a focus on high-quality targets [8][9] Question: Loan production spreads and rates - Management indicated that they are not seeing spread compression and that loan spreads remain around 300 basis points over comparable treasuries [21][22] Question: Wealth and treasury management initiatives - Management reported growth in assets under advice and emphasized the competitive position of their wealth management business [37] Question: Capital deployment post-IPO - Management reiterated that M&A opportunities are the primary focus for deploying excess capital raised during the IPO [27][28] Question: Credit portfolio health - Management noted that there are no significant weaknesses in the credit portfolio, with net charge-off rates remaining low [51][52]

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw an 8% year-over-year improvement in EPS, a 6% growth in PP&R, and a 12% increase in tangible book value per share [6] - Fourth quarter earnings were $126 million, or $1.49 per share, compared to $127 million, or $1.49 per share in the third quarter [12] - The efficiency ratio improved to 54.9% for the quarter, down 58 basis points from 2024's 55.4% [12][13] Business Line Data and Key Metrics Changes - Loans grew by $362 million, or 6% annualized, with strong production offsetting prepayments [9] - Fee income totaled $107 million in the fourth quarter, with growth across all categories driven by higher specialty income [13] - The company expects fee income to increase by 4%-5% in 2026, supported by core deposit account growth [13] Market Data and Key Metrics Changes - Deposits increased by $620 million, or 9% annualized, primarily due to seasonal activity in public fund DBA and interest-bearing accounts [9] - Interest-bearing transaction balances rose by $223 million, while retail time deposits decreased by $90 million due to maturities [10] - The company anticipates low single-digit deposit growth from 2025 levels in 2026 [10] Company Strategy and Development Direction - The company plans to hire up to 50 additional revenue-generating associates in 2026 as part of its multi-year organic growth plan [6] - A bond portfolio restructuring is expected to benefit NEM by seven basis points and improve EPS by $0.23 per share [8][16] - The company aims to maintain a balanced growth strategy, focusing on both profitability and reliable balance sheet growth [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, highlighting solid capital levels, robust allowance for credit losses, and benign asset quality [11] - The company expects NII to grow by 5%-6% in 2026, with modest NEM expansion and an efficiency ratio between 54% and 55% [16] - Management noted that the current economic environment is rapidly evolving, impacting their ability to project results accurately [3][4] Other Important Information - The company fully exhausted its share buyback authority last quarter, impacting capital ratios, but has approved a new 5% buyback plan effective through the end of 2026 [10] - The company reported a decrease in criticized commercial loans and non-accrual loans, indicating improved credit quality [16][17] Q&A Session Summary Question: Loan production and paydowns expectations - Management noted that loan production increased for the third consecutive quarter, with expectations for sustained funding throughout 2026 despite anticipated paydowns in commercial real estate [20][24] Question: ROA target and TCE ratio - Management discussed the importance of consistent balance sheet growth and the assumptions underlying their targets, including Fed funds rate expectations [28][30] Question: NIM expansion and bond restructure impact - Management explained that the bond portfolio restructure would contribute to NIM improvement, alongside organic balance sheet growth and reduced cost of deposits [39][42] Question: Fee income guidance and growth expectations - Management expressed confidence in achieving a 4%-5% fee income growth target, supported by strong performance across various banking segments [56][59] Question: M&A appetite and strategy - Management reiterated their opportunistic stance on M&A, emphasizing a focus on organic growth while remaining aware of market conditions [62][64] Question: Credit quality and charge-offs - Management reported a resilient credit portfolio with decreasing non-accruals and criticized loans, indicating a stable outlook for charge-offs [98][100]

Group 1: Industry Overview - Large U.S. banks had a strong performance in 2025, benefiting from high interest rates, rising asset prices, and consumer spending, leading to increased profits and stock prices [1] - Political risks, such as President Trump's proposal to cap credit card interest rates, are creating uncertainty for 2026, but current shareholders are enjoying the benefits [2] Group 2: Wells Fargo - Wells Fargo reported a net income of $5.4 billion, or $1.62 per share, representing a 13% increase year-over-year, with revenue rising by 4% [4] - The removal of the Federal Reserve's asset cap and lifting of consent orders allows Wells Fargo to grow its balance sheet without regulatory constraints, indicating a positive outlook for future growth [4][5] - The bank returned $23 billion to shareholders in 2025 through dividends and buybacks, reflecting confidence in its recovery and growth strategy [4] Group 3: Bank of America - Bank of America reported a net income of $7.6 billion, an 18% increase from the previous year, with revenue climbing 7% to over $28 billion [5] - The bank's credit quality remained strong, with net charge-offs decreasing and credit card losses normalizing, while expenses increased slightly [6] - Bank of America experienced a significant 23% increase in equities trading, contributing to its overall strong performance [6]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $20.1 million, or $0.99 per diluted share for Q3 2025, reflecting strong financial results [4] - Return on average assets (ROAA) and return on average equity (ROAE) improved to 132 basis points and 13.31% respectively, both up notably from previous periods [5] - Full-year 2025 guidance for ROAA was revised to exceed 115 basis points, up from 110 basis points, and ROAE to greater than 12%, up from 11.25% [5] Business Line Data and Key Metrics Changes - Loan growth was reported at 1.2%, driven by commercial lending, while total deposits increased by 3.9% [4] - Total commercial loans reached approximately $3 billion, reflecting a 1.6% increase from the previous quarter and an 8.3% increase year-over-year [6] - Consumer indirect loan balances increased by 0.6% from the previous quarter but were down 4.1% year-over-year [8] Market Data and Key Metrics Changes - The company experienced strong commercial growth in upstate New York, particularly in the Syracuse region due to Micron Technologies' investment [8] - Residential lending showed modest growth, with mortgage and home equity applications up 12% and 11% year-over-year respectively [9] Company Strategy and Development Direction - The company aims for profitable organic growth and anticipates raising profitability targets for 2026 [21] - A focus on maintaining a strong balance sheet and managing funding costs is evident, with expectations for incremental margin improvement in 2026 [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities ahead, citing strong performance and a healthy pipeline for future growth [21] - The company is preparing for potential rate cuts and expects to manage margins effectively in 2026 [24] Other Important Information - Non-interest income was reported at $12.1 million, up 13.6% from the previous quarter, driven by various revenue streams [16] - The efficiency ratio for the year-to-date was about 58%, indicating strong revenue growth relative to expenses [19] Q&A Session Summary Question: Outlook on margin and potential rate cuts - Management indicated that while margins may see a modest decline in Q4, they expect a recovery in 2026 as new loan production and cost management take effect [24][25] Question: Thoughts on share buyback activity - Management expressed satisfaction with the board's approval of the buyback, viewing it as a means to support share value [26] Question: Loan growth expectations for 2026 - Management conveyed optimism about achieving mid-single-digit growth rates in loans as they build their financial plan for 2026 [27]

Financial Data and Key Metrics Changes - The company reported a third quarter linked quarter annualized growth rate of 14.5% for non-interest-bearing deposits, 10.6% for core deposits, 8.9% for loans, 31.5% for revenue, and 54% for adjusted EPS [9] - The net interest margin (NIM) increased by three basis points to 3.26% in the third quarter, with expectations for further increases in the fourth quarter due to anticipated rate cuts [21][22] - The estimated growth range for net interest income has been increased to approximately 13% to 14% over 2024 results [22] Business Line Data and Key Metrics Changes - End-of-period loans increased by 8.9% linked quarter annualized, with an adjusted outlook for loan growth set at 9% to 10% for the year [19] - Non-interest income guidance has been increased from 12% to 15% growth to now 20% to 22% growth for the year, driven by strong performance in banking fees and wealth management [26] Market Data and Key Metrics Changes - The company has successfully increased market share in key markets, with notable gains in Nashville, Chattanooga, Knoxville, and Memphis, where competitors have lost significant market share [10][11] - The company is targeting additional market share in southeastern markets, with significant share losses noted among competitors in cities like Greensboro and Atlanta [11] Company Strategy and Development Direction - The company aims to build a "Southeast Growth Champion" through strategic hiring and market share acquisition, leveraging the merger with Synovus Financial Corp. to enhance growth potential [29][30] - The focus remains on recruiting and retaining market-leading revenue producers to sustain balance sheet growth and shareholder returns [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain momentum post-merger, with hiring rates and financial performance remaining strong [15][28] - The outlook for 2025 is optimistic, with expectations for continued growth in revenue and earnings, despite potential economic uncertainties [28] Other Important Information - The company reported a decrease in net charge-offs to 18 basis points in the third quarter, with an unchanged outlook for net charge-offs for the full year [24] - BHG's exceptional performance contributed over $40 million in fee revenues, with expectations for continued strong growth in 2025 [25] Q&A Session Summary Question: Are there 300 RMs that fit the Pinnacle model in the market? - Management indicated that while there may not be 300 RMs available immediately, the hiring strategy has historically proven successful in attracting talent over time [34] Question: How does the pro forma balance sheet affect BHG's use case? - Management stated that BHG's growth is expected to remain consistent, with no significant changes anticipated in the approach post-merger [38] Question: Will the hiring strategy change post-deal close? - Management expressed confidence that the existing hiring strategy will continue to be effective, emphasizing a unique recruitment model that differs from competitors [49] Question: What are the risks associated with the merger? - Management noted that there are no significant risks identified at this time, with a focus on hard work to integrate the companies and maintain high associate retention rates [64] Question: What is the outlook for credit quality? - Management indicated that credit quality remains strong, with a focus on monitoring specific credits, particularly in healthcare [82]

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by 15.1% compared to the same quarter last year, adjusted EPS rose by 22.7%, and tangible book value per share grew by 10.9% year-over-year [8][9][11] - The company has achieved double-digit compound annual growth rates (CAGRs) over the last decade in revenue, EPS, and tangible book value per share, significantly outperforming peers [9][10] Business Line Data and Key Metrics Changes - End-of-period loans increased by 10.7% on a linked quarter annualized basis, driven by new markets and relationship managers [19] - Deposit growth was recorded at 4.7% linked quarter annualized, with an estimated total deposit growth rate maintained at 7% to 10% for 2025 [21][22] - Net interest margin (NIM) finished up two basis points at 3.23%, with expectations for a flat to slightly up NIM in the upcoming quarters [23] Market Data and Key Metrics Changes - Core deposit growth was reported at 13%, significantly higher than the peer median, indicating strong market performance despite a challenging economic environment [11] - The company is focusing on deepening its presence in existing markets rather than expanding into new geographies, with potential opportunities identified in Florida and Texas [43][44] Company Strategy and Development Direction - The company employs a market share takeaway strategy, targeting the largest market share leaders in its footprint to capitalize on their vulnerabilities [12] - The hiring strategy focuses on experienced revenue producers, with an average of 18 years of experience, which is expected to yield approximately $19 billion in organic asset growth through 2029 [14][15] - The company aims to maintain organic growth as its primary strategy, with limited appetite for mergers and acquisitions due to the successful hiring model [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that while clients are currently cautious, there is underlying optimism for future growth [51][52] - The company anticipates a strong year in 2025, supported by investments in new markets and successful hiring practices [30][28] Other Important Information - The company has adjusted its net interest income growth outlook to a range of 12% to 13% for 2025, reflecting a positive outlook despite potential rate cuts [24] - The company is increasing its guidance for fee growth from 8%-10% to 12%-15% for the year, driven by strong performance in banking fees and wealth management [28] Q&A Session Summary Question: Clarification on the expected asset growth from new hires - Management confirmed that the cohort of hires from 2020 to 2024 is expected to yield approximately $19 billion in organic asset growth, focusing on relationship managers [35][36] Question: Appetite for M&A given the organic growth model - Management reiterated a strong preference for organic growth over M&A, citing the ability to produce outsized growth through hiring rather than taking on integration risks [39][40] Question: Customer sentiment and appetite for growth - Management indicated that existing customers are currently cautious but optimistic about future opportunities, with a focus on maintaining credit quality [50][52] Question: Update on the BHG business and its contribution to earnings - Management noted that BHG's earnings contribution has increased, with expectations for continued strong performance driven by better credit quality and origination growth [62][63] Question: Future deposit costs and beta expectations - Management expects to maintain current deposit costs and beta levels, with a focus on optimizing margins in response to potential rate cuts [107][108]