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]