Financial Data and Key Metrics Changes - The company reported a 19% increase in EPS for 2025, reaching $3.86, compared to the previous year [5][12] - Net interest income (NII) increased by 9% year-on-year, with a net interest margin (NIM) expansion of 20 basis points [5][12] - The company achieved a positive operating leverage of 1.3% sequentially and 5.2% year-on-year [4][5] - The return on tangible common equity (ROTC) for the fourth quarter was 12.2% [13] Business Line Data and Key Metrics Changes - The private bank contributed $0.10 to EPS in Q4, with deposits reaching $14.5 billion and loans totaling $7.2 billion [12][23] - Wealth management fees increased by 22% year-on-year, while capital markets fees rose by 9% [12][13] - The company reduced non-core assets from $6.9 billion to $2.5 billion over the year [5][12] Market Data and Key Metrics Changes - Total spot deposits increased by approximately 2% to $183 billion, with non-interest-bearing balances up 2% [18][19] - The company maintained a CET1 ratio of 10.6% and returned $1.4 billion to shareholders, representing 80% of earnings [21][22] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the "Reimagine the Bank" program aimed at enhancing customer experience and driving revenue benefits [7][24] - The outlook for 2026 includes expectations of strong revenue performance, controlled expenses, and significant positive operating leverage [9][26] - The company aims to grow private bank deposits to $18-$20 billion and loans to $11-$13 billion by 2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable macro environment for 2026, projecting GDP growth and stable unemployment [8][9] - The company anticipates two Fed rate cuts in 2026, with a stable regulatory environment [8][9] - Management highlighted the importance of organic growth over acquisitions in the near term [8] Other Important Information - The company achieved a cumulative interest-bearing deposit beta of about 48% by year-end [14] - The "Reimagine the Bank" initiative is expected to deliver approximately $450 million in pre-tax run rate benefits by the end of 2028 [25] Q&A Session Summary Question: Insights on the "Reimagine the Bank" initiative - Management indicated that the program has about 50 work streams and is expected to improve customer experience and reduce attrition [33][36] Question: Changes in deposit betas and NIM outlook - Management noted that the market has become less aggressive in pricing, leading to a beta drop to high 40s, while maintaining confidence in NIM due to strong non-interest-bearing balance growth [40][42] Question: Loan growth guidance and balance sheet optimization - Management highlighted strong growth drivers in the private bank and commercial banking, with a significant reduction in non-core assets contributing to positive sentiment on loan growth [47][50] Question: Fee growth assumptions - Management provided a conservative fee growth guidance of 6%-8% for 2026, citing strong performance in capital markets and wealth management [63][66] Question: Capital management and CET1 ratio - Management expressed optimism about potential changes in the stress test outcomes, which could allow for a reduction in the CET1 ratio towards medium-term targets [70][72]

Financial Data and Key Metrics Changes - The company reported a net interest margin expansion of 7 basis points, with net interest income (NII) up 9% year-on-year and earnings per share (EPS) of $3.86, reflecting a 19% increase compared to 2024 [4][6][12] - For Q4, EPS was $1.13, up 8% sequentially and 36% year-on-year, with a return on tangible common equity (ROTCE) of 12.2% [14][6] - The company achieved positive operating leverage of 1.3% sequentially and 5.2% year-on-year, with expenses up 4.6% against a guide of 4% [4][7] Business Line Data and Key Metrics Changes - The Private Bank contributed $0.10 to EPS in Q4, with deposits reaching $14.5 billion and loans at $7.2 billion, exceeding the original target of 5% contribution to pre-tax income [4][24] - Wealth management fees increased by 22% year-on-year, while capital markets fees were up 9% year-on-year, contributing to an overall fee increase of 11% [12][13] - The company reduced non-core assets from $6.9 billion to $2.5 billion, enhancing balance sheet strength [5][24] Market Data and Key Metrics Changes - Total spot deposits increased approximately 2% to $183 billion, with non-interest-bearing balances up 2% [19][20] - The company maintained a CET1 ratio of 10.6%, with expectations to manage it between 10.5% and 10.6% throughout 2026 [10][22] - Credit quality improved, with net charge-offs decreasing to 43 basis points from 46 basis points in the prior quarter [20][22] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the "Reimagine the Bank" program, which aims to enhance customer experience and drive revenue benefits [7][25] - The outlook for 2026 includes expectations for NII growth of 10%-12% and continued expansion of the net interest margin [9][27] - The company plans to maintain a disciplined approach to capital management, with share repurchases projected at $700 million-$850 million [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable macro environment for 2026, anticipating solid GDP growth and stable unemployment [8][9] - The company expects to achieve a medium-term ROTCE target of 16%-18% by the second half of 2027, supported by margin expansion and strong loan growth [30][31] - Management highlighted the importance of maintaining a strong balance sheet and credit quality as key components of their strategy [22][29] Other Important Information - The company returned $1.4 billion to shareholders in 2025, representing 80% of earnings, with a tangible book value per share increase of 18% year-over-year [22][23] - The "Reimagine the Bank" initiative is expected to deliver approximately $450 million in pre-tax run rate benefits by the end of 2028 [26] Q&A Session Summary Question: Insights on the "Reimagine the Bank" initiative - Management indicated that the program has about 50 work streams and is expected to improve customer experience and reduce attrition, with revenue benefits anticipated over time [34][36] Question: Changes in deposit betas and NIM outlook - Management noted that the market has become less aggressive in pricing actions, leading to a revised deposit beta in the high 40s, while confidence in NIM remains due to strong non-interest-bearing balance growth [40][42] Question: Loan growth guidance and balance sheet optimization - Management highlighted strong growth in the private bank and commercial banking sectors, with a focus on reducing non-core assets and optimizing the balance sheet [48][50] Question: Fee growth assumptions and capital markets outlook - Management provided a conservative fee growth guidance of 6%-8% for 2026, citing strong capital markets pipelines and record wealth management performance [64][66] Question: CET1 ratio and buyback strategy - Management expressed optimism about potential changes in the stress test outcomes, which could allow for a reduction in the CET1 ratio and increased buybacks in the latter half of the year [70][72]

Financial Data and Key Metrics Changes - The company reported a 19% year-over-year increase in EPS, reaching $3.86 for 2025, with Q4 EPS up 8% sequentially and 36% year-over-year at $1.13 [4][10] - Net interest income (NII) increased by 9% year-over-year, with a net interest margin (NIM) expansion of 20 basis points [4][10] - The company achieved positive operating leverage of 1.3% sequentially and 5.2% year-over-year [3][4] - Total deposits increased to approximately $183 billion, with non-interest-bearing balances up 2% [17][18] Business Line Data and Key Metrics Changes - The private bank contributed significantly, with $14.5 billion in deposits, $10 billion in client assets, and $7.2 billion in loans, exceeding the 5% income target with a 25% ROE [3][22] - Wealth management fees rose by 22% year-over-year, while capital markets fees increased by 9% [10][11] - The company reduced non-core assets from $6.9 billion to $2.5 billion during the year [4][10] Market Data and Key Metrics Changes - The company anticipates solid GDP growth and stable unemployment in 2026, with inflation expected to decline [6][7] - The regulatory environment is projected to remain positive, with expectations of two Fed rate cuts [6][7] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the "Reimagine the Bank" program aimed at enhancing customer experience and operational efficiency [5][6] - The private bank is expected to grow deposits to $18-$20 billion and loans to $11-$13 billion by 2026, with a target ROE of 20%-25% [23][24] - The company aims to achieve a medium-term ROTC target of 16%-18% by the second half of 2027 [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for 2026, expecting strong revenue performance and controlled expenses [7][29] - Credit costs are projected to improve, with net charge-offs expected to be in the mid to high 30s basis points [26][27] - The company plans to return a substantial amount of capital to shareholders, with share repurchases estimated at $700-$850 million [26][27] Other Important Information - The company achieved an 80% return of capital to shareholders in 2025, with $1.4 billion returned [20][26] - The tangible book value per share increased to $38.07, reflecting an 18% year-over-year growth [20] Q&A Session Summary Question: How much of the "Reimagine the Bank" benefits will hit the bottom line versus being reinvested? - Management indicated that the program has about 50 work streams and expects revenue benefits to increase over time, with implementation costs being one-time capital costs [30][32] Question: What is driving the change in deposit betas? - Management noted that the market has become less aggressive in pricing actions, leading to a decrease in deposit betas from low to mid-50s to high 40s [34][35] Question: Can you elaborate on the loan growth guide? - Management expressed confidence in loan growth driven by the private bank's scaling, commercial banking expansion, and strong demand in consumer banking [39][40] Question: What are the underlying assumptions for fee growth? - Management expects a 6%-8% growth in fees for 2026, driven by strong capital markets and wealth management performance, despite some caution due to market uncertainties [49][50]

Financial Data and Key Metrics Changes - The company reported EPS growth of $0.13 sequentially, or 14% [4] - Net Interest Income (NII) grew by 3.5% sequentially, driven by a 5 basis point expansion in Net Interest Margin (NIM) [4][10] - Fee growth was 5% compared to Q2, with a record performance in capital markets [4][12] - The Common Equity Tier 1 (CET1) ratio increased by 10 basis points to 10.7% [4][18] - The company achieved a positive operating leverage of 3% with expense growth held to just 1% [4][9] Business Line Data and Key Metrics Changes - The private bank saw a significant increase in deposits, growing by $3.8 billion to $12.5 billion, surpassing the year-end target of $12 billion [5][19] - The private bank contributed $0.08 to EPS this quarter, up from $0.06 in the prior quarter [11] - Capital markets delivered a record third quarter, with strong performance across all categories [10][13] - The wealth business achieved record advisory fees due to strong inflows and market appreciation [14] Market Data and Key Metrics Changes - Average deposits increased by 1%, driven by growth in the private bank and commercial sectors [16] - Non-interest-bearing balances rose by about $1.5 billion or 4%, maintaining a steady mix at 22% of the total deposits [16] - Net charge-offs decreased to 46 basis points from 48 basis points in the prior quarter, indicating favorable credit trends [17] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, particularly in the private bank and private wealth sectors, aiming for superior organic EPS growth relative to peers [8][18] - The "Reimagine the Bank" initiative is underway, with expectations for net benefits to positively impact results starting in 2027 [6][22] - The company aims to build a top-performing bank by enhancing customer service and operational efficiency [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, despite macroeconomic uncertainties [8][25] - The outlook for Q4 includes continued attractive earnings growth, driven by positive operating leverage and favorable credit trends [8][24] - The company remains focused on executing its strategic agenda while navigating a dynamic environment [25] Other Important Information - The Board of Directors declared a quarterly dividend of $0.46, reflecting a 9.5% increase [9] - The company executed $75 million in stock buybacks during the quarter [10][18] - The private bank is expected to double its contribution to the bottom line within the next three years [51] Q&A Session Summary Question: Expected margin trajectory - Management forecasts a margin of $305 for Q4, with a medium-term target of $325-$350, influenced by various factors including asset sensitivity and pricing spreads [30][32] Question: Role of M&A in the company's future - The company is focused on organic growth through the private bank and does not foresee significant M&A activity unless high-value opportunities arise [34][35] Question: Private bank outlook and AUM targets - Management is confident in achieving deposit growth but acknowledges that AUM targets may depend on the timing of liftouts [42][44] Question: Sensitivity of Fed funds to margin - Management has layered in hedges to protect against aggressive Fed cuts, maintaining a balanced view on interest rate risks [54][62] Question: Cost-saving opportunities related to "Reimagine the Bank" - The company is exploring various cost-saving measures, including vendor simplification and optimizing branch networks, to fund investments [63][67]

Financial Data and Key Metrics Changes - The company reported EPS growth of $0.13 sequentially, or 14% [3] - Net interest income (NII) grew by 3.5% sequentially, driven by a net interest margin (NIM) expansion of 5 basis points [3][8] - The Common Equity Tier 1 (CET1) ratio increased by 10 basis points to 10.7% [3][16] - The company achieved a positive operating leverage of 3% with expense growth held to just 1% [3][8] Business Line Data and Key Metrics Changes - The private bank had significant deposit growth, with spot deposits increasing by $3.8 billion to $12.5 billion [4][17] - The private bank contributed $0.08 to EPS this quarter, up from $0.06 in the prior quarter [9] - Capital markets delivered a record third quarter, marking the second-best performance ever [8][68] - Fee income increased by 5% sequentially and 18% year-over-year, driven by strong capital markets activity [10] Market Data and Key Metrics Changes - Average loan volume was up 1%, contributing to the 3.5% NII growth [8] - Non-interest-bearing deposits increased by about $1.5 billion or 4%, maintaining a steady mix at 22% of the total deposits [14] - The company maintained a stable interest-bearing deposit cost, translating to a cumulative down beta of 53% [14] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the buildout of the private bank and private wealth platform [4][16] - The "Reimagine the Bank" initiative aims to improve customer service and operational efficiency, with expected net benefits starting in 2027 [5][19] - The company aims to build a premier bank-owned private bank and private wealth franchise, with a target of achieving a 16% to 18% return on tangible common equity (ROTCE) over time [21][22] Management's Comments on Operating Environment and Future Outlook - The macro environment remains positive despite uncertainties in fiscal and monetary policies [6] - Management expects continued attractive earnings growth in Q4, driven by positive operating leverage and favorable credit trends [6][21] - The company is well-positioned to sustain momentum into 2026, with a focus on executing its strategic agenda [6][22] Other Important Information - The Board of Directors declared a quarterly dividend of $0.46, reflecting a 9.5% increase [7] - The company executed $75 million in stock buybacks during the quarter [8][16] - The private bank achieved cumulative breakeven, covering investments made since its launch in 2023 [9] Q&A Session Summary Question: Expected margin trajectory and outlook - Management forecasts a margin of $305 for Q4, with expectations to reach the medium-term target of $325 to $350 [25][26] - Factors affecting the margin include time-based benefits and commercial loan pricing spreads [28][29] Question: Role of M&A in the company's strategy - The company is focused on organic growth through the private bank and is open to M&A opportunities if they meet high criteria [30][32] Question: Private bank outlook and AUM targets - Management is confident in achieving deposit growth but acknowledges that AUM targets may depend on the timing of liftouts [38][41] Question: Capital markets outlook - The company sees strong pipelines in capital markets, with diverse flows across M&A, bond, and equity pipelines [68][70] Question: Credit exposure and risks - The company maintains high credit quality in its private credit pools, with no losses reported related to recent bankruptcies [72][74] Question: Use of capital and dividend policy - The company plans to facilitate loan growth, continue dividend increases, and may repurchase shares with excess capital [82]

Financial Data and Key Metrics Changes - The company reported EPS growth of $0.13 sequentially, representing a 14% increase [5] - Net Interest Income (NII) grew by 3.5% sequentially, driven by a 5 basis points expansion in Net Interest Margin (NIM) [6] - The Common Equity Tier 1 (CET1) ratio increased by 10 basis points to 10.7% [6][14] - The company achieved a positive operating leverage of 3% with expense growth limited to just 1% [6][14] Business Line Data and Key Metrics Changes - The Private Bank saw a significant deposit growth of $3.8 billion, reaching $12.5 billion, exceeding the year-end target of $12 billion [7][25] - The Private Bank contributed $0.08 to EPS this quarter, up from $0.06 in the prior quarter [14] - Capital markets delivered a record performance, marking the second-best quarterly results ever [13][17] Market Data and Key Metrics Changes - Average loan volume increased by 1%, contributing to the 3.5% NII growth [13] - Non-interest bearing deposits increased by $1.5 billion or 4%, maintaining a steady mix at 22% of total deposits [21] - The company maintained a stable retail deposit base, which constitutes 66% of total deposits, compared to a peer average of about 56% [21] Company Strategy and Development Direction - The company is focused on executing its strategic initiatives, particularly in the Private Bank and Private Wealth sectors, aiming for superior organic EPS growth relative to peers [11][24] - The "Reimagine the Bank" initiative is underway, aimed at improving customer service and operational efficiency, with expected net benefits starting in 2027 [8][28] - The company plans to maintain a high level of profitability with a Return on Equity (ROE) target of 20% to 25% in 2025 and beyond [26][57] Management's Comments on Operating Environment and Future Outlook - The macro environment remains positive despite uncertainties in fiscal and monetary policies, with a strong focus on execution [12] - Management expressed confidence in sustaining momentum into 2026, with expectations of continued attractive earnings growth [11][30] - Credit trends are favorable, with net charge-offs decreasing and a robust credit reserve maintained [22][85] Other Important Information - The company returned a total of $259 million to shareholders in Q3, including $184 million in common dividends and $75 million in share repurchases [24] - The company is planning to refresh its leadership team, with a new CFO set to join soon [9][10] Q&A Session Summary Question: Margin trajectory and expectations - Management expects NIM to reach around 3.05% in Q4, influenced by various factors including asset sensitivity and market conditions [34][35] Question: M&A role in the company's future - The company remains focused on organic growth through its Private Bank and is open to M&A opportunities but maintains a high bar for such actions [40][42] Question: Private Bank outlook and AUM targets - Management is confident in achieving deposit growth but acknowledges that AUM targets may depend on the timing of lift-outs [46][50] Question: Capital markets outlook - The company sees strong pipelines across various capital market segments, including M&A and syndicated lending, with a positive outlook for Q4 and beyond [79][81] Question: Credit exposure and risks - The company maintains a high-quality credit portfolio with strong protections in place, expressing confidence in its private credit exposure [83][85] Question: Expense growth and operating leverage - Management anticipates continued positive operating leverage, driven by NIM expansion and disciplined expense management [100][102]