January 23rd, 2026

Overall the call conveyed a positive operational and financial performance profile: solid full-year profitability and capital generation, diversified loan growth, improving credit metrics, and strategic investments in growth verticals. Headwinds include elevated deposit competition, some near-term expense pressure from investments, GAAP adjustments in the quarter, and two remaining concentrated problem loan pools (office and health care) that are being actively managed. Management provided conservative but constructive guidance for 2026 with capital return optionality intact.

Company Guidance

The company guided to 2026 loan growth of 5%–7% and deposit growth of 4%–6%, with midpoint revenue of $3.0 billion and GAAP net interest income of $2.57–2.63 billion (assuming two 25 bp Fed cuts), fees of $390–410 million and expenses of $1.46–1.48 billion (a few percentage points above Q4 adjusted levels); management expects a roughly flat full‑year NIM in the mid‑3.30% range (exit/December NIM 3.35%) and modeled a ~30% deposit beta. They reaffirmed a strong capital posture (CET1 ~11.2% today, near‑term target ~11%, long‑term target 10.5%), continued share repurchases (10.9 million shares repurchased in 2025, 3.6 million in Q4), and projected HSA Bank could add $1.0–2.5 billion of deposits over five years (including $50–100 million in 2026); recent operating metrics cited included Q4 assets up $880 million (1%), loans up $1.5 billion (2.8%) and +7.8% year, deposits +0.9% Q/Q (+6% year), ROTCE 17%, ROA 1.2%, EPS +10% YoY, tangible book value +13% YoY ($37.20 vs. $36.42), charge‑offs ~35 bps, allowance down $9 million Q/Q, NPAs down 8% and commercial classified loans down 7%.