Financial Data and Key Metrics Changes - The company reported full-year earnings of $2.1 billion, with earnings per share of $2.30 or $2.33 on an adjusted basis, and a return on tangible common equity of just over 18% [6][9] - Fourth-quarter earnings were $514 million, resulting in earnings per share of $0.58 and $0.57 on an adjusted basis, with a negative impact of $0.04 from certain items [7][11] - Adjusted non-interest income grew by 5% in 2025, while net interest income increased by 2% linked quarter [9][18] Business Line Data and Key Metrics Changes - Wealth management and corporate bank businesses achieved record fee income, with treasury management products also reaching a second consecutive record [9][18] - Loan growth was challenged in 2025, with large corporate customers refinancing into capital markets, leading to a strategic runoff of over $2 billion [8][12] - Adjusted non-interest expense increased by 2% in 2025, with salaries and benefits rising by 3% due to higher health insurance costs and hiring [19][20] Market Data and Key Metrics Changes - Ending deposit balances increased by approximately $800 million, supported by strong customer acquisition and retention [13] - Average deposits were roughly flat, outperforming typical year-end seasonality, particularly in consumer banking [14] - The non-interest-bearing mix remained in the low 30% range, consistent with the company's target [15] Company Strategy and Development Direction - The company is focused on modernizing its core systems, which is expected to strengthen its competitive position [7][8] - The hiring of approximately 120 bankers over two years is aimed at supporting growth initiatives, particularly in priority markets [29][30] - The company is committed to maintaining a disciplined approach to capital allocation and risk-adjusted returns while pursuing growth opportunities [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to normal loan growth levels in 2026, supported by improving client sentiment and strengthening loan pipelines [12][22] - The company anticipates net interest income growth between 2.5% and 4% for 2026, with a net interest margin expected to stabilize around 3.7% [17][18] - Management noted that many headwinds from 2025 are behind them, with positive trends in loan pipelines, deposit strength, and fee income growth [22] Other Important Information - The company ended the quarter with a common equity tier 1 ratio of 10.8%, executing $430 million in share repurchases and paying $231 million in dividends [21][22] - The allowance for credit losses decreased by $27 million, with the allowance for credit loss ratio declining to 1.76% [20][21] Q&A Session Summary Question: Loan growth guidance and pipeline activity - Management indicated positive customer sentiment and increased pipeline activity, expecting primarily commercial banking to drive loan growth, with a guidance of low single-digit growth for 2026 [27][29] Question: Trade-off between growth and returns - Management emphasized a focus on capital allocation and risk-adjusted returns, stating that there is no trade-off between growth and returns, and they aim to deliver consistent, sustainable performance [34][36] Question: Capital markets performance and outlook - Management acknowledged a slower start in capital markets for 2026 but expressed confidence in a rebound, with expectations for improved activity in M&A and loan syndications [40][42] Question: Deposit beta performance and pricing trends - Management noted a significant improvement in deposit beta performance and indicated a proactive approach to remain competitive in pricing, especially with upcoming CD maturities [44][46] Question: Credit quality trends in higher-risk portfolios - Management reported improvements in credit quality metrics, with expectations for continued improvement in 2026, particularly in trucking and transportation sectors [58][60]