TriBancshares(TCBK) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $33.6 million, or $1.03 per diluted share, a decrease of 1.1% from the previous quarter but an increase of 15.8% from Q4 2024[6]. - The efficiency ratio improved to 54.68% in Q4 2025, down from 56.18% in the previous quarter[7]. - Return on average assets was 1.34% for Q4 2025, while return on average equity was 10.02%, both slightly down from the previous quarter[7]. - Net income for the quarter was $33,634,000, slightly down from $34,019,000 in the previous quarter, indicating a decrease of 1.1%[53]. - Net income for the three months ended December 31, 2025, was $33,634,000, an increase from $29,034,000 in the same period of 2024, representing a growth of 15%[57]. Interest Income and Margin - Net interest income (FTE) increased to $92.5 million, up 2.97% from the previous quarter, with a net interest margin (FTE) of 4.02%, an increase of 10 basis points[6]. - Net interest income (FTE) for Q4 2025 was $92,487 thousand, a 3.0% increase from $89,817 thousand in Q3 2025[20][24]. - Net interest margin (FTE) improved to 4.02%, up 10 basis points from the previous quarter[20][24]. - The yield on loans was 5.77%, a slight increase from 5.75% in the previous quarter[17][22]. - Average loan yields decreased from 5.78% to 5.77% year-over-year, with the cost of interest-bearing deposits down by 28 basis points[25]. Loan and Deposit Balances - Loan balances rose by $104.3 million or 6.0% annualized from the previous quarter, and increased by $342.6 million or 5.1% year-over-year[10]. - Total loans outstanding reached $7.1 billion as of December 31, 2025, marking a 5.1% increase from the same date in 2024[10]. - Total deposits reached $8,376,361 thousand, a marginal increase of 0.7% from the previous quarter[15]. - Deposit balances decreased by $70.6 million or 3.4% annualized from the previous quarter, but increased by $176.3 million or 2.2% year-over-year[6]. Credit Quality - The provision for credit losses was $3.0 million for Q4 2025, compared to $0.7 million in the previous quarter, reflecting a significant increase of 347.8%[7]. - The allowance for credit losses (ACL) was $125.8 million, representing 1.77% of total loans as of December 31, 2025[32]. - Non-performing loans decreased by $1.4 million to $64.2 million, with approximately $36.7 million current or less than 30 days past due[37]. - The ratio of classified loans to total loans was 1.78%, down 10 basis points from the previous quarter[35]. - Loans past due 30 days or more decreased by $7.8 million to $37.9 million[36]. Non-Interest Income and Expenses - Non-interest income decreased by $0.8 million or 4.7% to $17.2 million for the three months ended December 31, 2025, compared to $18.0 million for the previous quarter[42]. - Total non-interest income increased by $3.9 million or 6.1% to $68.3 million for the twelve months ended December 31, 2025, compared to $64.4 million for the same period in 2024[44]. - Total non-interest expense decreased by $0.6 million or 1.0% to $59.8 million for the quarter ended December 31, 2025, compared to $60.4 million for the previous quarter[45]. - Total salaries and benefits expense decreased by $0.8 million or 2.2% to $36.9 million, reflecting a reduction in full-time equivalent staff[45]. - The largest component of non-interest expense was salaries and benefits, which increased by $9.2 million or 6.5% to $149.8 million, attributed to merit increases and increased incentive compensation[48]. Shareholder Equity and Capital - The company authorized a new share repurchase program, reflecting confidence in its financial position and future growth prospects[1]. - The tangible book value per share increased to $31.52 at December 31, 2025, up from $30.61 at September 30, 2025[11]. - Total shareholders' equity increased to $1,328,001 as of December 31, 2025, from $1,304,305 in the prior quarter, reflecting a growth of 1.8%[54]. - Common shareholders' equity (book value) per share (GAAP) increased to $41.07 for the three months ended December 31, 2025, from $37.03 in the same period of 2024, a growth of 11%[57]. Future Outlook - Management anticipates total non-interest expenses will increase by approximately 5% for the year ending December 31, 2026[48].