Financial Data and Key Metrics Changes - The company reported fourth quarter earnings of $0.43 per share, with revenue exceeding $2 billion, growing 12% year-over-year on an adjusted basis, while expenses grew by 2% [3][4] - Full-year record revenue increased by 16% compared to the prior year, with net interest income and fee revenue both exceeding projections [6][16] - The fourth quarter net interest margin (NIM) was 2.82%, an increase of 7 basis points sequentially, and above the previously indicated target of 2.75%-2.8% [21][25] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in commercial and industrial (C&I) loans, which grew by 9%, while consumer loans were intentionally reduced [6][18] - Fee income growth was 7.5%, with all priority fee-based businesses growing at a high single or low double-digit rate [6][10] - Investment banking fees increased by 10% year-over-year, driven by debt capital markets and commercial mortgage debt placement activity [22] Market Data and Key Metrics Changes - The company raised nearly $140 billion of capital on behalf of clients in 2025, retaining 20% on its balance sheet [9] - Assets under management in wealth management reached a record $70 billion, with significant growth in the mass affluent segment [9][10] - Commercial payments fee-equivalent revenue grew by 11% in 2025, reflecting successful investments in bankers and new geographies [10] Company Strategy and Development Direction - The company aims to achieve a 15%-plus return on tangible common equity by year-end 2027, focusing on organic growth in middle market, payments, investment banking, and wealth management [8][32] - Investments in technology, particularly in AI, are a priority, with spending increasing from $900 million to $1 billion [34] - The company plans to repurchase at least $300 million of stock in the first quarter and anticipates similar amounts in subsequent quarters throughout 2026 [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of outsized revenue and earnings growth, supported by favorable macro conditions and strong business momentum [11][28] - The company expects to continue growing priority fee-based businesses at a mid to high single-digit pace, capitalizing on strong pipelines [8][10] - Management noted that the current environment plays well to the company's strengths, with expectations for improved middle market M&A activity in 2026 [9][11] Other Important Information - The company announced changes to its board, nominating two new directors with extensive experience in financial services [12][13] - The lead independent director role transitioned to Todd Vassos, with other board members retiring [14] Q&A Session Summary Question: Strategic priorities for 2026 - Management emphasized organic growth in middle market, payments, investment banking, and wealth management, alongside a focus on return on capital and technology investments [30][32] Question: Investment banking fee guidance - Management acknowledged the competitive hiring environment and expressed caution regarding visibility for investment banking fees, despite recent positive trends [36][38] Question: Expectations for growth and banker productivity - Management highlighted the importance of recent hires and backlogs, expressing optimism for growth as new bankers ramp up productivity [41][43] Question: Deposit beta assumptions and margin expectations - Management indicated a stable deposit base with expectations for low-to-mid 50s beta throughout the year, with a focus on remixing brokered deposits into client deposits [55][56] Question: Capital priorities and acquisition appetite - Management reiterated a focus on supporting clients, investing in technology, and pursuing complementary acquisitions, while maintaining a cautious stance on bank acquisitions [66][68]

Financial Data and Key Metrics Changes - The company reported fourth quarter earnings of $0.43 per share, with revenue exceeding $2 billion, growing 12% year-over-year on an adjusted basis, while expenses grew by 2% [3][4] - Full-year record revenue increased by 16% compared to the prior year, with net interest income and fee revenue both exceeding projections [6] - The net interest margin (NIM) for the fourth quarter was 2.82%, an increase of 7 basis points sequentially, and above the target range of 2.75%-2.8% [21] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in commercial and industrial (C&I) loans, which grew by 9%, while consumer loans were intentionally reduced [6][18] - Fee income growth was 7.5%, with all priority fee-based businesses growing at a high single or low double-digit rate [6] - Investment banking fees increased by 10% year-over-year, driven by debt capital markets and commercial mortgage debt placement activity [22] Market Data and Key Metrics Changes - The company raised nearly $140 billion of capital on behalf of clients in 2025, retaining 20% on its balance sheet [9] - Assets under management in wealth management reached a record $70 billion, with significant growth in the mass affluent segment [9] - Commercial payments fee-equivalent revenue grew by 11% in 2025, reflecting successful investments in bankers and new geographies [10] Company Strategy and Development Direction - The company aims to achieve a 15% return on tangible common equity by year-end 2027, focusing on organic growth in middle market, payments, investment banking, and wealth management [8][30] - Investments in technology, particularly in AI, are prioritized to enhance operational efficiency and client experience [34] - The company plans to repurchase at least $300 million of stock in the first quarter of 2026 and anticipates similar amounts in subsequent quarters [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of outsized revenue and earnings growth, supported by favorable macro conditions and strong business momentum [11][28] - The company expects to grow priority fee-based businesses at a mid to high single-digit pace, capitalizing on strong pipelines [8][11] - Management noted that the current environment plays to the company's strengths, with expectations for continued growth in investment banking and M&A activity [9][11] Other Important Information - The company announced changes to its board, nominating two new directors with extensive experience in financial services [12][13] - The lead independent director role transitioned to Todd Vassos, with a focus on strong corporate governance [14] Q&A Session Summary Question: What are the strategic priorities for 2026? - The company is focused on organic growth in middle market, payments, investment banking, and wealth management, with significant investments in technology and AI [30][32] Question: Why is the investment banking fee guidance conservative? - The company is cautious due to limited visibility beyond the first quarter, despite recent improvements in middle market M&A activity [36][38] Question: What are the expectations for growth as new bankers start producing? - The company anticipates a positive impact from recent hires, with historically high backlogs and a hospitable market for deals [44][46] Question: What is the deposit beta assumption for margin expectations? - The company expects a low-to-mid 50s beta throughout the year, with a focus on remixing brokered deposits into client deposits [56] Question: What is the outlook for middle market M&A activity? - Management believes that recent market conditions will lead to increased activity, with visibility improving for the first quarter [70][72]

Financial Performance - Earnings per share were $1.06, compared to $1.01 in the same quarter last year[18] - Net income was $142 million in Q3, an increase of $4 million over the same quarter last year[18] - Net interest income was $279 million, up 7% over the same quarter last year[18] - Return on average assets (ROAA) was 1.78% and return on average equity (ROAE) was 15.26%[18] Balance Sheet - Period-end loans increased 4.1% over the same quarter last year[18] - Quarterly average deposit balances increased $427 million, or 2%, compared to the same quarter last year[18] - Non-interest bearing deposits were 30% of average deposits as of Q3[18] - Book value per share increased 4% compared to Q2 to $28.51[18,22] Asset Quality - Net loan charge-offs were 0.23% annualized; non-accrual loans were 0.09%[18] - Allowance for credit losses on loans was $175.7 million, representing 0.99% of outstanding loans[80] Acquisition - FineMark acquisition is expected to close on January 1, 2026, adding $3.1 billion in assets, $2.7 billion in loans, $3.9 billion in deposits and $8.3 billion in total trust assets under administration[20,21]