Consolidated Total Revenue

–1.2% (from $1,959M to $1,935M)

The slight decline reflects a continuation of challenges in net interest income, as seen in previous periods, where lower yields and possibly reduced high-quality asset volumes contributed to lower revenue. " "

Net Income

+11% (from $334M to $373M)

Improved net income is driven by effective expense management and lower interest expenses, which more than offset the decline in interest income, echoing trends observed in past quarters that focused on cost control and capital optimization. " "

Total Interest Income

–10% (from $2,610M to $2,352M)

The decrease in interest income likely results from a mix shift and lower yields on interest-bearing assets compared to previous periods, continuing a downward trend in loan or deposit margins that has been observed earlier. " "

Total Interest Expense

–17.7% (from $1,168M to $961M)

The dramatic drop in interest expense is mainly due to lower costs associated with interest-bearing deposits and repricing benefits, reflecting strategic funding mix improvements implemented since prior periods. " "

Income Before Income Tax

+8.8% (from $430M to $468M)

Increased pre-tax income stems from reductions in interest expense and operational efficiencies that have helped mitigate revenue pressures, a trend that builds on previous cost-saving measures. " "

Total Noninterest Income

+5.2% (from $517M to $544M)

The growth in fee-based revenue, including improvements in wealth, mortgage, and service charges, contributed to higher noninterest income over prior periods, despite some headwinds in other fee areas. " "

CET1 Ratio

Q2 2025

10.5% to 10.75% "

10.5% to 10.75% "

no change

Credit Trends

Q2 2025

Anticipated to improve "

Expected to improve slightly from Q1 charge-off levels "

no change

Net Interest Income

Q2 2025

no prior guidance

Projected to increase by approximately 3% "

no prior guidance

Noninterest Income

Q2 2025

no prior guidance

Expected to grow mid- to high single digits "

no prior guidance

Expenses

Q2 2025

no prior guidance

Projected to remain broadly stable "

no prior guidance

Share Repurchases

Q2 2025

no prior guidance

Approximately $200 million planned "

no prior guidance

Noninterest Income

FY 2025

Projected to increase by 8% to 10% "

Capital markets activity expected to contribute to 8% to 10% growth in fee income "

no change

Expenses

FY 2025

Expected to increase by approximately 4% "

Expected to grow by approximately 4% "

no change

Net Interest Margin

FY 2025

no prior guidance

Projected to be in the range of 3.05% to 3.10% " " "

no prior guidance

Net Interest Income

FY 2025

no prior guidance

Expected to grow 3% to 5% " "

no prior guidance

Loan Growth

FY 2025

no prior guidance

Anticipated loan growth in the second half of the year "

no prior guidance

Net Interest Margin

Q2–Q4 2024: Robust expansion was a recurring theme with Q4 showing a 10 basis point sequential increase and projections for higher medium‐term NIM driven by noncore runoff, fixed asset repricing, and hedging strategies. " " " In Q3, modest improvements were expected after a Q3 decline due to higher hedge costs and deposit migration. " "

Q1 2025: Discussion focused on modest improvements with a 3 basis point increase and reaffirmed mid‐term guidance. Time‑based benefits played a key role and sentiment shifted from robust to modest growth. " " "

Consistent focus on NIM dynamics with a clear shift in sentiment from earlier robust expansion to more modest near‑term improvements; medium‑term targets remain intact.

Private Banking Growth and Deposit Expansion

Q2–Q4 2024: Emphasis on strong deposit and loan growth with strategic geographic expansion, hitting key milestones in deposits, loans, and AUM. Q4 highlighted profitability improvements and robust deposit additions while Q3 and Q2 detailed steady momentum and talent/presence expansion. " " "

Q1 2025: Achieved record deposits ($8.7B), loans ($3.7B) and AUM growth; new private wealth teams were added in key markets such as Florida, Southern California, and New Jersey with additional mortgage wins. " " "

Reinforced momentum: Consistently strong growth with an increased emphasis and record performance in Q1 2025, reflecting an accelerated strategic push.

Loan Growth Trends in Consumer and Commercial

Q2–Q4 2024: Discussions centered on modest consumer growth—mortgage, HELOC, and card loan stability—and gradual recovery in commercial loan utilization tied to subscription line activity and M&A trends; Q3 noted slight commercial declines but healthy private bank contributions. " " "

Q1 2025: Highlighted increased commercial line utilization and strong consumer demand—especially in residential, HELOC, and even mortgage originations—with an expectation of a pickup in deal activity in the latter half of the year. " "

Stable but evolving: Continuous modest growth with a more nuanced view in Q1 2025 where consumer strength and improving commercial demand are driving optimism amid differentiated performance.

Commercial Real Estate Exposure

Q2–Q4 2024: Consistently mentioned challenges in the general office portfolio with significant reductions in exposure and robust reserve coverage (e.g. 11–12% reserves) and gradual improvements in nonaccrual loans; focus remained on CRE credit risks and portfolio workout. " " " "

Q1 2025: Emphasized conservative recession assumptions with severe scenarios but noted improvements such as a 5% drop in nonaccrual loans and strong reserve coverage; management remains proactive in credit risk mitigation. " "

Cautiously improving: While CRE exposure risks persist due to recession assumptions, credit risk management and reserve coverage are being enhanced consistently.

Fee Revenue Diversification

Q2–Q4 2024: Capital markets and wealth management initiatives were driving fee growth. Q4 highlighted record fee growth (9% YoY) with strong loan syndication, M&A, and Private Bank achievements; Q3 and Q2 also emphasized robust pipelines and diversification across fee categories. " " " "

Q1 2025: Emphasis on a record M&A pipeline, improved debt/equity underwriting, and robust Private Bank wealth fee contributions with diversified fee revenue streams continuing to serve as an offset during uncertainty. " " " "

Sustained and bolstering: The diversification strategy remains a key strength with even stronger records in key areas, reinforcing resilience amid market uncertainty.

Operating Leverage and Cost Management

Q2–Q4 2024: Focus on disciplined expense management via TOP programs was evident. Q4 reported 50 basis points of positive operating leverage; Q3 highlighted initiatives such as TOP 9 and plans for TOP 10 and the fixed cost base benefits in the Private Bank; Q2 discussed expectations for a Q4 rebound in NIM supporting leverage. " " " "

Q1 2025: Reaffirmed target of approximately 150 basis points operating leverage for 2025 driven by NIM expansion. Expenses were guided to grow around 4% due to strategic investments yet the structure—especially in the Private Bank—remains favorable. " " "

Consistent focus with upward adjustments: Continued emphasis on maintaining positive operating leverage through strategic investments; expense growth is managed with built‑in flexibility while still aiming for margin expansion.

Accelerated Noncore Asset Runoff and Capital

Q2–Q4 2024: There was ongoing discussion of reducing the noncore portfolio gradually; Q2 highlighted reductions in the CRE portfolio while Q3 mentioned roughly $1B runoff from noncore assets and modest share repurchases; Q4 noted noncore runoff as a means to optimize the balance sheet slowly. " "

Q1 2025: New emphasis with accelerated runoff – specifically, noncore education loans are being sold in a structured, ratable manner with a clear timeline, and capital is being reallocated to pay down high‑cost funding, invest in low‑risk securities, and support the Private Bank. " " " "

Accelerating focus: Transition from gradual reductions to a more aggressive, structured runoff program in Q1 2025 accompanied by strategic capital reallocation, marking a notable shift in execution emphasis.

Macroeconomic Uncertainty and Its Impact

Q2–Q4 2024: Macroeconomic uncertainty was noted in all periods—with Q2 discussing election-related volatility and slower middle market activity, Q3 referencing improved credit performance despite uncertainty and expected rate cuts, and Q4 emphasizing reserve flexibility and sensitivity in deposit/loan yields. " " "

Q1 2025: Continued acknowledgment of higher uncertainty from policy and economic factors (tariffs and government downsizing) with expectations for increased loan demand and deal activity in the second half, albeit with some headwinds; risks include slower loan growth and potential for higher provisions. " "

Persistent yet cautiously optimistic: Uncertainty remains a theme, but Q1 2025 reflects expectations for recovery in the latter half, demonstrating a balanced view of risks and potential offsets.

Increased Expenses and Investment Risks

Q2–Q4 2024: Several quarters highlighted rising expenses due to investments in the Private Bank, private wealth, and technology initiatives. Q4 noted a 3.5% quarterly increase and set expectations for further expense growth, while Q3 detailed TOP 9 and upcoming TOP 10 programs to offset costs. " " " "

Q1 2025: Guided expense growth of approximately 4% linked to strategic investments in areas like AI, data analytics, and continued private bank expansion; while risks exist, the company’s flexible cost management and structural advantages (such as fixed compensation in the short-term) help mitigate these concerns. " " "

Consistently rising with managed risk: Expense increases remain integral to strategic investments across periods, with Q1 2025 maintaining that these investments are aimed at driving long-term operating leverage despite near-term cost pressures.

Emerging Auto Loan Delinquency Trends

Q3 2024: This topic was specifically discussed; auto delinquencies were seen to spike year-over-year due to a lack of new originations affecting the vintage curve, with temporary distortions in delinquency rates and charge-offs normalizing. " "

Q1 2025: There was no explicit mention of emerging auto loan delinquency trends impacting credit quality, suggesting that the earlier concerns might have been resolved or were de‑emphasized in the current reporting period.

De‑emphasized: Previously addressed in Q3 2024 with technical explanations for temporary trends, but not mentioned in Q1 2025—indicating either resolution of issues or a reduced emphasis in current discussions.