Overview
- Fourth-quarter results topped expectations with earnings of 5 cents per share and $557 million in revenue, with management citing adjusted net income of $30 million.
- Commercial real estate exposure fell by $2.3 billion in the quarter, including $1.5 billion of multifamily, bringing CRE down to $38.3 billion from $50.6 billion at the end of 2023.
- Executives forecast full-year profitability in 2026 with margin expansion and a pivot toward more C&I lending, though the bank trimmed its net interest income outlook by $100 million for both 2026 and 2027.
- Roughly $3 billion of troubled loans remain, and a $564 million Pinnacle-linked loan is expected to produce about a $113 million write-off following a bankruptcy auction, not yet reflected in Q4 delinquency figures.
- Lower noninterest expenses and a drop in the provision for loan losses to $3 million supported the turnaround, while headcount fell to 5,600 as the bank continues to monitor New York rent policy risks.