stal Financial (CCB) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $12.6 million, or $0.82 per diluted share, down from $13.6 million, or $0.88 per diluted share in Q3 2025[1]. - Return on average assets (ROA) for the quarter ended December 31, 2025, was 1.09%, down from 1.19% in the previous quarter and 1.30% a year ago[10]. - Net interest income for the quarter ended December 31, 2025, was $79.4 million, reflecting a 1.9% increase from $77.9 million for the quarter ended September 30, 2025[36]. - Net interest income for the latest quarter was $12,643 million, a decrease of 6.98% from $13,592 million in the previous quarter[80]. - Basic earnings per common share decreased to $0.84 from $0.90, reflecting a decline of 6.67%[80]. - Total shareholders' equity increased by $15.7 million since September 30, 2025, primarily due to $12.6 million in net earnings[52]. - Total shareholders' equity increased to $490,959 thousand, up from $475,277 thousand in the previous quarter, a growth of 3.4%[78]. Asset and Liability Management - Total assets increased by $188.4 million, or 4.1%, to $4.74 billion at December 31, 2025, compared to $4.55 billion at September 30, 2025[49]. - Total liabilities reached $4,250,478 thousand, reflecting an increase of 4.2% from $4,077,799 thousand in the previous quarter[78]. - The allowance for credit losses was $169.5 million, representing 4.52% of loans receivable at December 31, 2025, compared to 4.69% at September 30, 2025[54]. - The company had a cash balance of $42.3 million as of December 31, 2025, with $737.0 million in cash on hand and borrowing capacity of $642.2 million from the Federal Reserve Bank[50]. Loan and Deposit Growth - Loans receivable increased by $45.7 million, a 1.2% rise, while deposits grew by $171.6 million, or 4.3%[2]. - Average loans receivable increased by $103.5 million as of December 31, 2025, despite selling $2.98 billion in CCBX loans during the same quarter[11][12]. - CCBX loans increased by $3.4 million, or 0.2%, to $1.81 billion, despite significant loan sales[23]. - CCBX deposits rose by $182.9 million, or 7.7%, to $2.56 billion, driven by deposit growth and the successful launch of Robinhood's deposit product[32]. - The community bank saw net loans increase by $42.3 million, or 2.2%, to $1.94 billion during the quarter ended December 31, 2025[33]. Nonperforming Assets and Credit Quality - Nonperforming assets to total assets ratio was 1.35% as of December 31, 2025, compared to 1.31% in Q3 2025[8]. - Nonperforming assets increased to $64.1 million, or 1.35% of total assets, as of December 31, 2025, up from $59.8 million (1.31%) at September 30, 2025[63]. - Community bank nonperforming loans rose to $6.5 million as of December 31, 2025, an increase of $2.3 million from the previous quarter, while CCBX nonperforming loans increased to $57.6 million[64]. - The ratio of nonperforming loans to loans receivable was 1.71% at December 31, 2025, compared to 1.61% at September 30, 2025, and 1.80% at December 31, 2024[64]. Noninterest Income and Expenses - Noninterest income was $58.7 million for the three months ended December 31, 2025, a decrease of $8.1 million from $66.8 million for the previous quarter[42]. - Total noninterest expense increased by $2.6 million to $72.8 million for the quarter ended December 31, 2025, compared to $70.2 million for the quarter ended September 30, 2025[44]. - The increase in noninterest expense for the quarter ended December 31, 2025, was primarily due to a $2.6 million increase in salaries and employee benefits and an $864,000 increase in data processing and software licenses[44]. BaaS Program Performance - Total BaaS program fee income reached $8.4 million for Q4 2025, an increase of $811,000, or 10.7% from Q3 2025[4]. - Net BaaS loan income was $37,590,000 for the three months ended December 31, 2025, with a net BaaS loan income margin of 8.13%[90]. - Total BaaS program income increased to $8,365 in Q4 2025 from $7,554 in Q3 2025, driven by increases in servicing fees and transaction fees[114]. - Total noninterest BaaS income was $56,780 in Q4 2025, down from $65,093 in Q3 2025[114]. Capital and Leverage Ratios - Tier 1 leverage capital ratio was 10.62% as of December 31, 2025, up from 10.54% in Q3 2025[9]. - The company remained well capitalized with Tier 1 leverage capital at 10.60% and total capital at 13.79% as of December 31, 2025[53].