Financial Performance - Net income for Q4 2025 was $9.9 million, or $0.72 per diluted share, up from $5.6 million, or $0.46 per diluted share in Q4 2024, representing a 77.7% increase [2]. - For the three months ended December 31, 2025, net income was $9,913,000, an increase of 4.7% from $9,467,000 for the same period in 2024 [25]. - Core net income for the quarter was $9,913 thousand, compared to $9,467 thousand in the previous quarter, marking a 4.7% increase [38]. - Pre-tax income for Q4 2025 was $12,705,000, an increase of 3.3% from $12,296,000 in Q3 2025 [35]. - Total operating revenue for the twelve months ended December 31, 2025, was $90.4 million, compared to $88.5 million for the previous year [12]. Asset and Loan Growth - Gross loans increased by $106.3 million during Q4 2025, or 24% annualized, compared to the previous quarter [6]. - Total net loans reached $1.9 billion as of December 31, 2025, an increase of $66.9 million, or 3.7%, from December 31, 2024 [9]. - Total loans outstanding as of December 31, 2025, reached $1,873,533,000, an increase from $1,767,193,000 as of September 30, 2025 [28]. - The average balance of gross loans, net of unearned income, was $1,807,127,000 with an interest income of $27,866,000, resulting in a yield of 6.2% for the three months ended December 31, 2025 [26]. - Total gross loans increased to $1,880,011 thousand as of December 31, 2025, up from $1,773,574 thousand as of September 30, 2025, representing a growth of 6.0% [30]. Deposits and Liabilities - Total deposits were $1.8 billion as of December 31, 2025, a decrease of $122.9 million, or 6.3%, from December 31, 2024 [11]. - Total deposits reached $1,815,734,000 as of December 31, 2025, up from $1,938,597,000 as of December 31, 2024, indicating a decrease of about 6.3% [21]. - Total liabilities increased to $2,006,022 thousand, up from $1,969,255 thousand in the previous quarter, reflecting a growth of 1.9% [23]. - Core deposits, excluding time deposits over $250,000, totaled $1,665,470 thousand, an increase from $1,631,921 thousand in the prior quarter, reflecting a growth of 2.1% [37]. Efficiency and Ratios - Efficiency ratio improved to 45.24% in Q4 2025, down from 48.9% for the twelve months ended December 31, 2024 [6][12]. - The efficiency ratio was reported at 45.24% for the three months ended December 31, 2025, an improvement from 47.01% for the same period in 2024 [21]. - The return on average assets (ROAA) improved to 1.76% for the three months ended December 31, 2025, compared to 1.40% for the same period in 2024 [21]. - Core return on average assets improved to 1.76% from 1.74% in the previous quarter, showing a slight increase [38]. - The company reported a net interest spread of 3.20% for the twelve months ended December 31, 2025, compared to 3.05% for the previous year [27]. Credit Quality - Nonperforming loans to gross loans ratio was 0.33% as of December 31, 2025, consistent with the same ratio from December 31, 2024 [22]. - The total allowance for credit losses to total loans ratio was 0.95% as of December 31, 2025, down from 1.01% as of December 31, 2024 [22]. - Nonaccrual loans increased to $6,245,000 as of December 31, 2025, compared to $5,390,000 as of September 30, 2025, reflecting a rise in nonperforming loans [28]. - The company reported a net charge-off of $262,000 for the three months ended December 31, 2025 [29]. - Provision for loan and lease losses was $150,000 in Q4 2025, compared to $5,000 in Q4 2024, indicating a significant increase in expected losses [35]. Equity and Book Value - Book value per share increased to $20.81, a rise of $0.78, or 16% annualized, from the previous quarter [6]. - Tangible common equity reached $273,415,000 in Q4 2025, up from $233,194,000 in Q3 2025, reflecting a growth of 17.3% [36]. - Average tangible equity increased to $248,017,000 in Q4 2025, compared to $227,493,000 in Q3 2025, indicating a growth of 9.1% [36]. - Tangible book value per share reported at $19.96 in Q4 2025, up from $19.05 in Q3 2025, reflecting a 4.8% increase [36]. Strategic Focus and Risks - The company anticipates potential risks related to interest rates and inflation affecting earnings and financial condition [41]. - The concentration of the loan portfolio in real estate loans poses risks due to changes in property values and sales volumes [41]. - Future growth strategies may include acquisitions and expansion activities, with associated risks in identifying and integrating new operations [41]. - The company is focused on maintaining important deposit customer relationships to avoid liquidity risks [41]. - The company faces competition from various financial service providers, including those not subject to the same regulations [41].
Commercial Bancgroup(CBK) - 2025 Q4 - Annual Results