Core Viewpoint - Heritage Financial Corporation has successfully completed the merger with Olympic Bancorp, Inc. and Kitsap Bank, enhancing its market presence and customer base in the Pacific Northwest [1][2]. Group 1: Merger Details - The merger was finalized on January 31, 2026, integrating Olympic Bancorp into Heritage and Kitsap Bank into Heritage Bank [1]. - Heritage will issue a total of 7,167,600 shares of its common stock as part of the merger agreement, with Olympic shareholders receiving 45.0 shares of Heritage's common stock for each share they hold [3]. Group 2: Company Overview - Heritage Financial Corporation is based in Olympia and operates Heritage Bank, a full-service commercial bank with branches in Washington, Oregon, and Idaho [4]. - The bank also operates under the names Whidbey Island Bank and Kitsap Bank for the branches acquired in the merger [4].

Core Viewpoint - Northfield Bancorp, Inc. reported a net loss of $27.4 million for Q4 2025, primarily due to a $41.0 million goodwill impairment charge, despite an increase in net interest income driven by lower funding costs and higher yields on loans and securities [2][6][12]. Financial Performance - For the year ended December 31, 2025, net income was $796,000, a significant decrease from $29.9 million in 2024, largely due to the goodwill impairment charge [4][12]. - Net interest income for 2025 increased by $22.9 million, or 20.0%, to $137.4 million, attributed to a decrease in interest expense and an increase in interest income [5][8]. - The net interest margin improved by 45 basis points to 2.55% for 2025, driven by higher yields on loans and mortgage-backed securities [8]. Operational Highlights - Non-interest income for 2025 increased marginally by $128,000 to $17.0 million, primarily due to higher income on bank-owned life insurance and service charges [10]. - Non-interest expense rose by $43.3 million, or 50.1%, to $129.9 million, mainly due to the goodwill impairment charge [11][12]. Asset Quality and Loan Portfolio - Non-performing loans to total loans stood at 0.42% as of December 31, 2025, indicating strong asset quality [6]. - Loans held for investment decreased by $165.5 million to $3.86 billion, with a notable decline in multifamily loans [28][29]. Deposit and Funding - Total deposits, excluding brokered deposits, increased by $100.2 million, or 2.6%, to $3.98 billion, driven by growth in transaction accounts [39]. - Borrowed funds increased to $961.9 million, reflecting a strategic shift away from brokered deposits [42]. Equity and Capital Management - Total stockholders' equity decreased by $14.6 million to $690.1 million, influenced by stock repurchases and dividend payments [44]. - The Company declared a cash dividend of $0.13 per share, payable on February 25, 2026 [3][6].

Core Insights - Seeking Alpha welcomes Domenico Oriana as a new contributing analyst, encouraging others to share investment ideas for publication and potential earnings [1] Analyst Background - The new analyst has a strong academic and practical background in economics and financial markets, holding a degree from Università Luigi Bocconi [2] - Professional experience includes working as a certified public accountant and later as a trader and investment manager, focusing on equity markets, fixed income, and derivatives [2] - The analyst has contributed articles to leading Italian finance websites, providing market commentary and research on individual stocks [2] - Investment philosophy emphasizes value investing principles, focusing on fundamental analysis and long-term value creation [2] - The goal is to share analytical insights and engage with a global audience of market participants [2]

Core Insights - Elmer Bancorp reported record net income of $3.302 million for the year ended December 31, 2025, driven by strong loan and deposit growth, with total assets exceeding $400 million [2][8]. Financial Performance - For Q4 2025, net income was $718,000, or $0.63 per share, compared to $715,000, or $0.63 per share in Q4 2024 [2]. - For the full year 2025, net income was $3.302 million, or $2.89 per share, up from $2.851 million, or $2.50 per share in 2024 [2]. - Net interest income for Q4 2025 was $4.036 million, an increase of $337,000 from $3.699 million in Q4 2024 [3]. - For the full year 2025, net interest income totaled $15.928 million, up $1.343 million from $14.585 million in 2024 [3]. Loan and Deposit Growth - Total loans increased to $327.3 million at December 31, 2025, a rise of $12.9 million or 4.1% from $314.4 million in 2024 [6][8]. - Total deposits reached $367.9 million, an increase of $24.4 million from $343.5 million in 2024, with core deposits growing by $17.9 million [7][8]. Non-Interest Income and Expenses - Non-interest income for Q4 2025 was $30,000 higher than the same period in 2024, and $627,000 higher for the full year [4]. - Non-interest expenses for Q4 2025 were $355,000 higher than Q4 2024, and $1.361 million higher for the full year [5]. Asset and Equity Position - Total assets at December 31, 2025, were $409.4 million, an increase of $28.7 million from $380.7 million in 2024 [6]. - Stockholders' equity increased to $39.1 million at December 31, 2025, compared to $35.4 million in 2024 [7].

Core Viewpoint - IF Bancorp, Inc. reported an increase in net income for the quarter and six months ended December 31, 2025, driven by higher net interest income and a pending merger with ServBanc Holdco, Inc. [1][3][5] Financial Performance - For the three months ended December 31, 2025, net income was $1.3 million, or $0.41 per share, compared to $1.2 million, or $0.38 per share, for the same period in 2024 [1] - For the six months ended December 31, 2025, net income was $2.7 million, or $0.84 per share, compared to $1.9 million, or $0.57 per share, for the same period in 2024 [3] - Net interest income increased to $6.0 million for the three months ended December 31, 2025, from $5.0 million in 2024, and to $12.2 million for the six months ended December 31, 2025, from $9.8 million in 2024 [2][3] - Interest income decreased to $10.5 million for the three months ended December 31, 2025, from $11.0 million in 2024, and to $21.6 million for the six months ended December 31, 2025, from $21.9 million in 2024 [2][3] - Noninterest income increased to $1.4 million for the three months ended December 31, 2025, from $1.3 million in 2024, but decreased to $2.5 million for the six months ended December 31, 2025, from $2.7 million in 2024 [2][3] Balance Sheet Highlights - Total assets decreased to $830.4 million at December 31, 2025, from $887.7 million at June 30, 2025 [4] - Cash and cash equivalents decreased to $8.8 million at December 31, 2025, from $20.1 million at June 30, 2025 [4] - Net loans receivable decreased to $592.3 million at December 31, 2025, from $633.6 million at June 30, 2025 [4] - Deposits decreased significantly to $649.6 million at December 31, 2025, from $721.3 million at June 30, 2025, primarily due to a withdrawal of $59.3 million from a public entity [4] - Stockholders' equity increased to $87.4 million at December 31, 2025, from $81.8 million at June 30, 2025, attributed to net income and other comprehensive income [4] Merger Activity - The company announced a merger agreement with ServBanc Holdco, Inc., valued at approximately $89.8 million, expected to close in the first quarter of 2026, pending shareholder approval [5][6]

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Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes, helping investors capitalize on upward or downward price movements [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.83% since 1988 [7][10] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing returns [9] Stock Highlight: Fifth Third Bancorp (FITB) - Fifth Third Bancorp, with assets of $212.9 billion as of September 30, 2025, operates 1,102 banking centers across 11 states [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [11][12] - It features a Value Style Score of A, supported by a forward P/E ratio of 12.35, and has seen positive earnings estimate revisions, with the consensus estimate rising to $4.03 per share [12]

Core Insights - The company achieved a record pre-tax and pre-provision income of $9.0 million in Q4 2025, indicating strong financial performance [1] - The net income for the same quarter was reported at $5.9 million, translating to earnings of $1.37 per share, showcasing profitability [1] Financial Performance - Q4 2025 pre-tax and pre-provision income reached $9.0 million, marking a new record for the company [1] - The net income for Q4 2025 was $5.9 million, equivalent to $1.37 per share, reflecting a solid earnings performance [1]

Core Viewpoint - First Commerce Bancorp, Inc. reported significant growth in net income for both the three months and the year ending December 31, 2025, compared to the same periods in 2024, indicating a positive financial trajectory for the company [1] Financial Performance - The company achieved a net income of $3.2 million for the three months ending December 31, 2025, up from $1.1 million for the same period in 2024 [1] - For the year ending December 31, 2025, net income was reported at $8.3 million, an increase from $4.5 million in 2024 [1] - Basic earnings per common share for the three months ending December 31, 2025, were $0.16, compared to $0.06 for the same period in 2024 [1] - For the year ending December 31, 2025, basic earnings per common share were $0.41, up from $0.21 in 2024 [1]

Financial Data and Key Metrics Changes - The Bancorp reported an EPS of $1.28 for Q4, reflecting an 11% year-over-year growth [4] - GDV increased by 16% in Q4 compared to the prior year, with a total annual growth of 17% in 2025 [4][5] - Revenue growth for the quarter was 3% year-over-year, excluding credit enhancement income [4] Business Line Data and Key Metrics Changes - Credit sponsorship balances reached $1.1 billion, up 40% from Q3 and 142% year-over-year [5] - The total loan portfolio increased by $919 million to $7.26 billion, with consumer fintech loans constituting 15% of the portfolio [8] - Non-interest income, excluding credit enhancement, accounted for over 30% of revenue in the quarter, with approximately 90% of fees coming from the fintech business [9] Market Data and Key Metrics Changes - Average deposits in Q4 were $7.6 billion, with an average cost of 177 basis points [9] - 95% of deposits were sourced from fintech, and 92% of total deposits were insured [9] Company Strategy and Development Direction - The Bancorp is focused on three main fintech initiatives aimed at creating shareholder value, including credit sponsorship, embedded finance platform development, and new program implementations [5][6] - The company is targeting a 2026 EPS guidance of $5.90, with a preliminary guidance of $8.25 for 2027 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $1.75 EPS target for Q4 2026, citing strong tax remittances and expected growth in credit sponsorship [21][17] - The company anticipates continued improvements in credit metrics, including reduced criticized assets and delinquency rates [7][9] Other Important Information - The Bancorp repurchased $150 million of its stock in Q4, totaling $375 million for the year, representing 12% of outstanding shares [11] - The company is actively engaged in optimizing its funding costs by managing on-balance and off-balance sheet deposits [22][23] Q&A Session Summary Question: Can you provide more building blocks to help bridge the EPS gap? - Management indicated that large revenue opportunities are on track, with upcoming announcements on credit sponsorship and the launch of the embedded finance platform [16] Question: What were the drivers that weighed on results in Q4? - Key drivers included legal fees, the unexpected duration of the government shutdown affecting payments and deposits, and the timing of credit sponsorship growth [18][19] Question: Can you discuss the economics of off-balance sheet deposits? - The company expects to continue generating deposit growth that outpaces demand, optimizing earnings through lower-cost deposits off-balance sheet [22][23] Question: What is the plan for The Audrey property? - The property is nearing cash flow break-even, with plans to exit prudently to maximize shareholder value [32][34] Question: How does the company view the potential threat from fintechs obtaining their own bank charters? - Management believes many partners will not seek licenses and that the company provides scalable, low-cost solutions that remain beneficial to partners [36][39] Question: What is the expectation for net interest margin (NIM) going forward? - NIM is expected to compress near 4% as the company shifts towards fintech, but fee revenue is anticipated to grow, offsetting the margin compression [61]