Financial Performance - Record net income for Q4 2025 was $35.7 million, or $0.95 per share, reflecting a 1% increase from Q3 2025[3] - Annual net income for 2025 was $112.6 million, or $3.06 per share, representing an 8% year-over-year increase[3] - Adjusted net income for Q4 2025 was $35.9 million, or $0.96 per share, a 4.4% increase from Q3 2025[4] - Net income for the year ended December 31, 2025, totaled $112,635,000, or $3.06 per share, an increase of approximately 8% from $83,811,000, or $2.83 per share, for the year ended December 31, 2024[25] - Net income for the quarter ended December 31, 2025 was $35,683,000, or $0.95 per share, a 22% increase on a per share basis compared to the fourth quarter of 2024[51] - Reported net income for Q4 2025 was $35,683, compared to $35,074 in Q3 2025 and $23,211 in Q4 2024, reflecting a year-over-year increase of 54%[94] - Adjusted net income for Q4 2025 was $35,895, up from $34,444 in Q3 2025 and $23,419 in Q4 2024, indicating a 53% increase year-over-year[94] Asset and Loan Growth - Total assets as of December 31, 2025, were $8.389 billion, an increase of $2.093 billion compared to December 31, 2024, largely due to the Heartland acquisition[11] - Total loans increased by $96.8 million, or 7% on an annualized basis, during Q4 2025[12] - The Heartland acquisition added approximately $1.94 billion in total assets and $1.73 billion in total deposits[10] - Average total loans increased to $5,828,461,000 for the three months ended December 31, 2025, from $4,094,333,000 in the same period of 2024, a 42% increase[86] Income and Revenue - Net interest income for the year ended December 31, 2025, totaled $294,132,000, an increase of $103,541,000, or 54%, compared to $190,591,000 for the year ended December 31, 2024[30] - Non-interest income increased by $4,652,000, or 7%, during the year ended December 31, 2025, compared to the same period in 2024, largely due to the Heartland acquisition[35] - Total non-interest income for the year ended December 31, 2025, was $67,312,000, up from $62,660,000 in 2024, indicating an 8% growth[84] - Total adjusted revenue for the year ended 2025 was $366,189, up from $250,776 in 2024, reflecting a 46% increase[96] Expenses and Efficiency - Non-interest expense totaled $201,949,000 for the year ended December 31, 2025, an increase of $55,572,000, or 38%, compared to the same period in 2024[43] - Adjusted non-interest expense for the year ended December 31, 2025 was $194,953,000, an increase from $139,777,000 in 2024, representing a 39.5% increase[45] - The efficiency ratio improved to 48.55% for the three months ended December 31, 2025, compared to 53.38% in the same period of 2024, showing enhanced operational efficiency[86] Credit Quality - Non-performing assets totaled $29.5 million at December 31, 2025, representing 0.35% of total assets[18] - The allowance for credit losses was $77.7 million, representing 1.32% of period-end loans[15] - The provision for credit losses for the year ended December 31, 2025, was $19,425,000, significantly higher than $2,775,000 in 2024, reflecting increased risk management measures[84] - Non-performing loans to period end loans ratio was 0.50% as of December 31, 2025, compared to 0.27% in 2024, indicating a slight deterioration in asset quality[86] Dividends and Shareholder Value - The company declared a 7% increase in its quarterly cash dividend, marking the 14th consecutive year of dividend increases[8] - The tangible book value per share increased to $20.08 as of December 31, 2025, up from $18.89 in Q3 2025 and $17.93 in Q4 2024[82] - Basic earnings per share for the year ended December 31, 2025, was $3.06, an increase from $2.83 in 2024, representing an 8% growth[84] - Earnings per share (EPS) as reported for Q4 2025 was $0.95, compared to $0.94 in Q3 2025 and $0.78 in Q4 2024, representing a 22% increase year-over-year[94] - Adjusted EPS for Q4 2025 was $0.96, up from $0.92 in Q3 2025 and $0.79 in Q4 2024, marking a 22% increase year-over-year[94]

Financial Performance - Net income for Q4 2025 was $2.9 million, or $0.08 per diluted share, down from $7.8 million, or $0.21 per diluted share in Q3 2025[1]. - Full year 2025 net income increased by 26.8% to $33.5 million, or $0.90 per diluted share, compared to $26.2 million, or $0.71 per diluted share in 2024[5]. - Adjusted pre-tax, pre-provision net income for Q4 2025 was $11.7 million, up from $11.0 million in Q3 2025[1]. - Net income for the three months ended December 31, 2025, was $2,942,000, a decrease from $7,584,000 for the same period in 2024[36]. - Adjusted net income for the three months ended December 31, 2025, was $3,839,000, with an adjusted return on average assets of 0.50%[62]. - Net Income (GAAP) for the twelve months ended December 31, 2025, was $33,511,000, compared to $26,209,000 for the previous year, representing a year-over-year increase of 27.7%[65]. - Adjusted Net Income (Non-GAAP) for the three months ended December 31, 2025, was $7,628,000, a slight decrease from $7,839,000 in the previous quarter[65]. Assets and Liabilities - Total assets as of December 31, 2025, amounted to $3,069.99 million, an increase from $2,878.78 million on December 31, 2024, representing a growth of approximately 6.63% year-over-year[34]. - Total liabilities increased to $2,762,817,000 from $2,563,566,000 year-over-year[46]. - Total assets as of December 31, 2025, were $3,071,482,000, an increase from $2,842,450,000 at the end of 2024[46]. Deposits and Loans - Total deposits as of December 31, 2025 were $2.55 billion, reflecting a 10.9% annual increase from $2.45 billion at the end of 2024[5]. - Total loans increased to $2.56 billion as of December 31, 2025, representing a 13.1% annualized growth from $2.35 billion at the end of 2024[5]. - Total deposits reached $2,554.75 million as of December 31, 2025, up from $2,360.58 million on December 31, 2024, indicating an increase of approximately 8.23%[34]. - Total loans receivable increased to $2,556,729, up from $2,347,556, representing a year-to-date change of $209,173 and an annualized growth rate of 13.08%[52]. Credit Losses and Allowances - The provision for credit losses in Q4 2025 was $6.6 million, with $5.0 million related to a specific reserve for a single commercial credit[17]. - The allowance for credit losses for loans was $31.7 million, or 1.24% of total loans held for investment, up from 1.03% at the end of Q3 2025[20]. - The allowance for credit losses on loans was $31.67 million as of December 31, 2025, compared to $26.44 million a year prior, showing a rise of about 19.8%[34]. Shareholders' Equity - Shareholders' equity totaled $306.43 million as of December 31, 2025, an increase from $280.22 million on December 31, 2024, representing a growth of approximately 9.34%[34]. - Total shareholders' equity as of December 31, 2025, was $306,432,000, up from $305,457,000 in the previous quarter[66]. Strategic Initiatives - The Company announced a strategic merger with Burke & Herbert valued at approximately $354.2 million, expected to create a combined organization with $11.0 billion in assets[6]. - The proposed merger with Burke & Herbert is subject to various risks, including regulatory approvals and potential impacts on market prices, which could affect the anticipated benefits of the transaction[26]. - The company anticipates that revenues following the proposed transaction may be lower than expected due to integration challenges and economic conditions[26]. Cost Management - Management emphasizes the importance of controlling costs and expenses amid increased competition and changing consumer demand for financial services[26]. - Total non-interest expense was $19,539,000 for the three months ended December 31, 2025, compared to $18,302,000 for the same period in 2024, indicating a rise of 6.8%[38]. - Adjusted non-interest expense (Non-GAAP) for the three months ended December 31, 2025, was $18,389,000, compared to $18,171,000 in the previous quarter[69]. Earnings Per Share - Basic earnings per share for the three months ended December 31, 2025, was $0.08, down from $0.20 for the same period in 2024[38]. - GAAP-based earnings per share (EPS) for the three months ended December 31, 2025, was $0.08, while adjusted EPS (non-GAAP) was $0.10[64]. Efficiency and Margins - The efficiency ratio for the three months ended December 31, 2025, was 65.03%, compared to 65.04% for the same period in 2024[38]. - The net interest margin for the quarter was 3.74%, slightly down from 3.85% in the previous year[46]. - The GAAP-based efficiency ratio for the three months ended December 31, 2025, was 65.03%, an increase from 62.25% in the previous quarter[68].

Financial Performance - Consolidated net income for Q4 2025 was $4.3 million, a decrease of 22.4% from $5.6 million in Q3 2025 and a decrease of 29.9% from $6.2 million in Q4 2024[5]. - Net income for 4Q25 was $4,334,000, a decrease of 22.3% from $5,584,000 in 3Q25[34]. - Earnings per share (diluted) for 4Q25 was $0.81, down from $1.04 in 3Q25, reflecting a decline of 22.1%[34]. - GAAP net income for the three months ended December 31, 2025, was $4,334,000, a decrease from $5,584,000 in the previous quarter[49]. - Non-GAAP net income for the same period was $4,334,000, compared to $5,584,000 in the prior quarter, reflecting a consistent performance[49]. Income and Revenue - Non-interest income increased to $5.4 million in Q4 2025, up 3.8% from $5.2 million in Q3 2025, but down 36.5% from $8.5 million in Q4 2024[11]. - Wealth management fee income rose 25.8% to $2.3 million in Q4 2025 compared to Q3 2025, and increased by 66.7% compared to Q4 2024[3][11]. - Net interest income for Q4 2025 was $16.4 million, reflecting a decrease of 4.8% from $17.2 million in Q3 2025 but an increase of 21.3% from $13.5 million in Q4 2024[8]. - Total interest and dividend income for the three months ended June 30, 2025, was $24,755 million, an increase from $23,502 million in the previous quarter[45]. - Net interest income after provision for credit losses was $15,693 million for the three months ended June 30, 2025, compared to $12,103 million in the same period last year, reflecting a year-over-year increase of 29.5%[45]. Asset and Liability Management - Total consolidated assets decreased by $43.8 million or 2.27% to $1.89 billion as of December 31, 2025, compared to $1.93 billion at September 30, 2025[20]. - Total deposits decreased to $1.61 billion as of December 31, 2025, down from $1.66 billion at September 30, 2025, primarily due to $74.4 million of funds leaving the bank during the fourth quarter[22]. - Total liabilities decreased to $1,699,787 million from $1,746,892 million in the previous quarter, a decline of 2.69%[43]. - Total consolidated equity increased by $69.9 million to $188.9 million at December 31, 2025, compared to December 31, 2024[27]. Credit Quality - Nonperforming assets rose to $14.6 million, or 0.77% of total assets, in Q4 2025, up from $14.3 million, or 0.74%, in Q3 2025[13]. - The ratio of allowance for credit losses to total loans increased to 1.04% as of December 31, 2025, up from 1.01% at September 30, 2025, reflecting increased loss rates[19]. - The Company recorded $747 thousand in provision for credit losses on loans for the quarter ended December 31, 2025, compared to $1.1 million for the quarter ended September 30, 2025[19]. - The Company realized $237 thousand in net charge-offs for the quarter ended December 31, 2025, a significant decrease from $2.3 million in the previous quarter[18]. Operational Efficiency - The efficiency ratio increased to 70.39% in 4Q25 from 64.06% in 3Q25, indicating higher operational costs relative to income[34]. - Noninterest expenses increased by 8.3% to $15.5 million in Q4 2025 from $14.3 million in Q3 2025, and were up 14.6% from $13.6 million in Q4 2024[12]. - Total noninterest expenses were $15,539 million for the three months ended June 30, 2025, compared to $14,344 million in the previous quarter, representing an increase of 8.3%[45]. Market Response - The closing stock price rose to $39.80 in 4Q25 from $37.83 in 3Q25, reflecting a positive market response[39]. - The Company announced a quarterly common stock cash dividend of $0.31 per share, payable on February 13, 2026[26].

Financial Performance - For the fourth quarter of 2025, Home Bancorp reported net income of $11.4 million, or $1.46 per diluted share, a decrease of 8% from the previous quarter's net income of $12.4 million, or $1.59 per diluted share [2]. - Reported net income for Q4 2025 was $11.4 million, compared to $12.4 million in Q3 2025 [31]. - Net income for the full year 2025 was $46,062,000, a significant increase from $36,427,000 in 2024, representing a growth of 26.5% [39]. - Earnings per share (EPS) for Q4 2025 was $1.48, down from $1.60 in Q3 2025 but up from $1.22 in Q4 2024, showing a year-over-year increase of 21.3% [39]. Loan and Deposit Growth - Total loans reached $2.7 billion at December 31, 2025, reflecting an increase of $38.1 million, or 1%, from the previous quarter, with an annualized growth rate of 6% [4]. - Core deposits increased by $24.5 million, or 1%, during the fourth quarter, totaling $2.2 billion, which represents a 5% annualized increase [4]. - Total deposits were $3.0 billion at December 31, 2025, down $2.7 million, or less than 1%, from the previous quarter [15]. - Total deposits increased to $2,977,273,000 as of December 31, 2025, compared to $2,918,938,000 at the end of Q3 2025 and $2,789,712,000 at the end of 2024 [39]. Asset Quality - Nonperforming assets rose to $36.1 million, or 1.03% of total assets, an increase of 17% from $30.9 million, or 0.88% of total assets, in the previous quarter [8]. - The allowance for loan losses at the end of the period was $33,142 thousand, reflecting a net charge-off of $165 thousand for the three months ended December 31, 2025 [48]. - Nonaccrual loans totaled $34,111 thousand as of December 31, 2025, up from $13,582 thousand a year earlier [48]. - The allowance for loan losses to nonperforming loans ratio decreased to 96.97% from 111.20% in the previous quarter [50]. Interest Income and Margin - Total interest income for Q4 2025 was $48,720,000, a slight decrease from $49,222,000 in Q3 2025, but an increase from $47,804,000 in Q4 2024 [37]. - Net interest income for Q4 2025 reached $34,048,000, compared to $34,106,000 in Q3 2025 and $31,586,000 in Q4 2024, reflecting a year-over-year increase of 7.8% [39]. - The net interest margin (NIM) decreased to 4.06% for the fourth quarter, down 4 basis points from 4.10% in the third quarter, primarily due to lower loan yields [4][19]. - The net interest margin (TE) for the twelve months ended December 31, 2025, was 4.03%, compared to 3.71% for the same period in 2024 [45]. Noninterest Income and Expense - Noninterest income for Q4 2025 totaled $4.0 million, up $260,000, or 7%, from Q3 2025, driven by increases in other income, gains on sale of loans, and service fees [23]. - Noninterest expense for Q4 2025 totaled $23.0 million, up $515,000, or 2%, compared to Q3 2025, primarily due to increases in other noninterest expense and compensation and benefits [24]. Shareholder Returns - The Company declared a quarterly cash dividend of $0.31 per share, unchanged from the previous quarter, payable on February 20, 2026 [26]. - The Company repurchased 750 shares of common stock at an average price of $59.97 during Q4 2025, with an additional 390,222 shares remaining eligible for purchase [27]. Equity and Valuation - Shareholders' equity at December 31, 2025, totaled $435.1 million, up $12.1 million, or 3%, compared to $423.0 million at September 30, 2025 [25]. - The book value per share increased to $55.56 at December 31, 2025, compared to $54.05 at September 30, 2025 [31]. - The common equity ratio at the end of Q4 2025 was 12.46%, up from 12.11% in Q3 2025 and 11.50% in Q4 2024 [39].

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].

Financial Performance - Total revenues decreased by 58.81% from $13,207,000 in Q3 2023 to $5,440,000 in Q3 2024[316]. - Total revenues for the nine months ended September 30, 2024, were US$18.0 million, a decrease of US$23.6 million, or 56.74%, compared to the same period in 2023[341]. - The Distribution Business contributed 84.43% of total revenue for the nine months ended September 30, 2024, with a significant revenue decrease of US$22.4 million, or 59.51%[342]. - Distribution Business revenue fell by 60.42%, from $11,876,000 in 2023 to $4,701,000 in 2024, contributing 86.42% of total revenue[318]. - Life insurance revenue dropped by 64.82%, from $11,147,000 in 2023 to $3,921,000 in 2024[319]. - For the nine months ended September 30, 2024, the company reported a net loss of approximately US$28.8 million, with total revenue declining to approximately US$18.1 million from US$41.7 million in the same period of 2023[384][385]. Operating Expenses - Total operating expenses decreased by 36.36% from $24,550,000 in Q3 2023 to $15,623,000 in Q3 2024[316]. - Total operating expenses decreased by US$34.2 million, or 43.82%, for the nine months ended September 30, 2024, compared to the same period in 2023[340]. - Commission expense decreased by 78.31%, from $8,916,000 in 2023 to $1,934,000 in 2024[323]. - Personnel and benefit expenses decreased by 45.44%, from $6,446,000 in 2023 to $3,517,000 in 2024[328]. - Sales and marketing expense decreased by US$2.5 million, or 80.61%, from US$3.1 million in 2023 to US$0.6 million in 2024[347]. - Legal and professional fees decreased by US$7.0 million, or 56.35%, for the nine months ended September 30, 2024, primarily due to a reduction in consulting fees[352]. - Total other general and administrative expenses increased by US$1.2 million, or 53.48%, for the nine months ended September 30, 2024, mainly due to increased depreciation on right-of-use assets and interest expense on lease liabilities[355]. Cash Flow and Capital - As of September 30, 2024, the cash balance was US$5.1 million, with a working capital deficit of US$40.5 million, an increase of US$18.3 million or 82.21% from December 31, 2023[375]. - Net cash used in operating activities was US$20.7 million for the nine months ended September 30, 2024, compared to US$33.4 million for the same period in 2023[376]. - Net cash used in operating activities for the nine months ended September 30, 2024, was primarily due to the net loss and various decreases in liabilities, totaling US$28.8 million[377]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was US$2.6 million, primarily from proceeds of US$2.2 million from the sale of long-term investments[379]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was US$18.3 million, mainly due to advances from the holding company of US$15.6 million and proceeds from convertible promissory notes of US$23.4 million[381]. - The company intends to raise additional capital through various debt and equity offerings, but there is no assurance that these funds will be available on acceptable terms[387]. Strategic Initiatives - The Company plans to transform JFA into the best medical care institution in Asia by 2025, focusing on technology and data analytics to improve patient care[314]. - The Company aims to expand its distribution footprint in Mainland China and expects sales volumes to return to pre-pandemic levels with the reopening of the border[299]. - The Company is committed to leveraging its strategic assets in life insurance, wealth management, and healthcare to capitalize on emerging opportunities[297]. - The company is committed to purchasing 100% equity interest in Sony Life Financial Advisers Pte. Ltd. for a cash consideration of approximately US$1.88 million, with multiple extensions on the closing date[388]. Compliance and Regulatory - The company has received an exception period from Nasdaq to comply with listing requirements, with deadlines set for December 2025 and February 2026[288]. - Nasdaq granted the company an additional 180 days to regain compliance, which was achieved on May 3, 2024, confirming compliance with Rule 5550(a)(2)[389]. - The company has no off-balance sheet arrangements or guarantees beyond normal business operations[390]. Investments and Business Segments - The Company holds a 4% equity stake in HCMPS, which operates a network of over 800 doctors and provides healthcare schemes for more than 500 corporate clients[310][311]. - The Fintech Business includes investments in Tandem Money Limited ($17.75 million), CurrencyFair Limited ($5.89 million), and Goxip Inc. ($0.31 million) as of September 30, 2024[307]. - The Platform Business offers over 1,800 financial products, including 1,183 insurance products from 80 providers and 1,141 asset management products from 53 fund houses[304]. Losses and Financial Health - Net loss improved by 27.10%, from $12,921,000 in Q3 2023 to $9,419,000 in Q3 2024[316]. - Net loss decreased by US$3.5 million, or 27.10%, for the three months ended September 30, 2024, mainly due to a decrease in operating expenses[339]. - Net foreign exchange gain increased by US$2.0 million, or 227.89%, for the three months ended September 30, 2024, compared to a net foreign exchange loss in the same period of 2023[336]. - Net foreign exchange gain increased by US$0.8 million, or 1,914.63%, for the nine months ended September 30, 2024, due to a strong Sterling exchange rate[358]. - The company has an accumulated deficit of approximately US$94.4 million as of September 30, 2024[384].

Financial Performance - Total revenues decreased by 58.81% from $13,207,000 in Q3 2023 to $5,440,000 in Q3 2024[316]. - Total revenues for the nine months ended September 30, 2024, were US$18.0 million, a decrease of US$23.6 million, or 56.74%, compared to the same period in 2023[341]. - The Distribution Business contributed 84.43% of total revenue for the nine months ended September 30, 2024, with a significant revenue decrease of US$22.4 million, or 59.51%[342]. - Net loss for Q3 2024 was $9,419,000, a decrease of 27.10% compared to a net loss of $12,921,000 in Q3 2023[316]. - For the nine months ended September 30, 2024, the company reported a net loss of approximately US$28.8 million, with total revenue declining to approximately US$18.1 million from US$41.7 million in the same period of 2023[384][385]. Revenue Breakdown - Distribution Business revenue fell by 60.42%, from $11,876,000 in 2023 to $4,701,000 in 2024, contributing 86.42% of total revenue[318]. - Life insurance revenue decreased by 64.82%, from $11,147,000 in 2023 to $3,921,000 in 2024[319]. - The Company generated $15.21 million in commission from the Distribution Business for the nine months ended September 30, 2024[298]. Operating Expenses - Total operating expenses decreased by 36.36% from $24,550,000 in Q3 2023 to $15,623,000 in Q3 2024[316]. - Commission expense dropped by 78.31%, from $8,916,000 in 2023 to $1,934,000 in 2024[323]. - Personnel and benefit expenses decreased by 45.44%, from $6,446,000 in 2023 to $3,517,000 in 2024[328]. - Sales and marketing expense decreased by US$2.5 million, or 80.61%, from US$3.1 million in 2023 to US$0.6 million in 2024[347]. - Legal and professional fees decreased by US$7.0 million, or 56.35%, for the nine months ended September 30, 2024, primarily due to a reduction in consulting fees[352]. Cash Flow and Capital - As of September 30, 2024, the cash balance was US$5.1 million, with a working capital deficit of US$40.5 million, an increase of US$18.3 million or 82.21% from December 31, 2023[365][375]. - Net cash used in operating activities was US$20.7 million for the nine months ended September 30, 2024, compared to US$33.4 million for the same period in 2023[376]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was US$2.6 million, primarily from the sale of long-term investments[379]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was US$18.3 million, mainly due to advances from the holding company and proceeds from convertible promissory notes[381]. - The company intends to raise additional capital through various debt and equity offerings to support its operations and growth strategy[387]. Strategic Initiatives - The Company aims to transform JFA into the best medical care institution in Asia by 2025, focusing on technology and data analytics to enhance customer care[314]. - The Company plans to expand its distribution footprint in Mainland China and expects sales volumes to return to pre-pandemic levels with the reopening of the Mainland border[299]. - The Company is committed to leveraging its strategic assets in life insurance, wealth management, and healthcare to capitalize on emerging opportunities[297]. - The company is committed to purchasing 100% equity interest in Sony Life Financial Advisers Pte. Ltd. for a cash consideration of approximately US$1.88 million, with multiple extensions on the closing date[388]. Compliance and Governance - Nasdaq granted the company an additional 180 days to regain compliance, which was achieved on May 3, 2024, confirming compliance with Rule 5550(a)(2)[389]. - The company has no off-balance sheet transactions or guarantees beyond normal business operations[390].

Financial Performance - Net income for Q4 2025 was $24.8 million, or $0.88 per diluted share, compared to $16.4 million, or $0.58 per diluted share in Q4 2024[1][21] - Adjusted net income for Q4 2025 was $26.9 million, or $0.95 per diluted share, compared to $24.3 million, or $0.86 per diluted share in Q4 2024[1][3] - Net income for the year ended December 31, 2025, was $97,936,000, compared to $75,628,000 for the year ended December 31, 2024, reflecting a growth of 29.4%[57] - Diluted earnings per share for Q4 2025 was $0.88, compared to $0.58 in Q4 2024, indicating a significant increase of 51.7%[58] - Adjusted net income (non-GAAP) for the year ended December 31, 2025, was $100,505 thousand, compared to $87,744 thousand for the previous year, reflecting a year-over-year increase of 14.4%[72] - Adjusted diluted earnings per share (non-GAAP) rose to $3.56 for the year ended December 31, 2025, compared to $3.13 in 2024, marking an increase of 13.7%[73] Revenue and Income Sources - Total revenue for 2025 was $419.3 million, with net interest income of $317.4 million and noninterest income of $101.9 million[29][30] - Noninterest income for Q4 2025 totaled $26.7 million, representing 24.3% of total revenue[12][13] - Net interest income for Q4 2025 was $83,461,000, an increase from $77,047,000 in Q4 2024, representing a growth of 8.5% year-over-year[55] - Noninterest income for Q4 2025 reached $26,744,000, up from $21,635,000 in Q4 2024, marking a 23.5% increase[58] Asset and Loan Growth - Average loan growth was 8.5% annualized in Q4 2025, with total loans at $6.7 billion[5][17] - Total loans increased to $6.7 billion at December 31, 2025, up by $0.3 billion or 4.7% from $6.4 billion in 2024, driven by growth in C&I loans[34] - Total assets as of December 31, 2025, were $8,485,162,000, an increase from $8,097,387,000 as of December 31, 2024, representing a growth of 4.8%[57] Capital and Equity - Common equity tier 1 risk-based capital ratio was 14.12% as of December 31, 2025, indicating strong capital ratios[19] - Common equity tier 1 risk-based capital ratio stood at 14.12% as of December 31, 2025, with total risk-based capital ratio at 15.73% and tier 1 leverage ratio at 12.75%[36] - Book value per share increased to $41.36 at December 31, 2025, up by $3.78 from the previous year, while tangible book value per share rose to $37.83, an increase of $3.89[36] - Total stockholders' equity (GAAP) increased to $1,153,356 thousand as of December 31, 2025, compared to $1,041,366 thousand a year earlier, reflecting a growth of 10.74%[71] Efficiency and Management - The efficiency ratio for Q4 2025 was 65.37%, compared to 64.22% for the prior quarter[15] - The efficiency ratio for 2025 improved to 64.82% from 68.28% in 2024, while the adjusted efficiency ratio was 64.17% compared to 64.13% in 2024[32] - The efficiency ratio improved to 65.37% in Q4 2025 from 74.66% in Q4 2024, indicating better cost management[55] - Adjusted efficiency ratio (non-GAAP) improved to 63.36% in Q4 2025 from 64.00% in Q3 2025[74] Credit Quality - The provision for credit losses in 2025 was $24.6 million, a decrease of $3.0 million compared to 2024[26] - The company reported a provision for credit losses of $6,200,000 in Q4 2025, down from $10,100,000 in Q3 2025[59] - Nonperforming loans amounted to $60,771 as of December 31, 2025, down from $69,641 on September 30, 2025[70] - The ratio of nonperforming loans to total loans was 0.91% as of December 31, 2025, compared to 1.04% on September 30, 2025[70] Merger and Future Plans - The company is pursuing a merger with First Foundation Inc., with regulatory and stockholder approvals pending[46] - The anticipated benefits of the merger include cost savings and synergies, although there are risks associated with the integration process[46] - A conference call to discuss the fourth quarter and full year 2025 financial results is scheduled for January 27, 2026[41]

Financial Performance - Net sales for the three months ended December 27, 2025, were $3,189,693, a 59.0% increase from $2,006,348 for the same period in 2024[139] - Gross profit for the three months ended December 27, 2025, was $242,362, compared to $167,915 for the same period in 2024[139] - Selling, general and administrative expenses increased to $115 million for the three months ended December 27, 2025, from $71 million in the same period in 2024[143] - Research and development expenses were $9 million for the three months ended December 27, 2025, compared to $7 million for the same period in 2024[144] - Interest expense rose to $25 million for the three months ended December 27, 2025, from $5 million in the same period in 2024, primarily due to new term loans totaling $2.2 billion[146] - The effective tax rate for the three months ended December 27, 2025, was 16%, down from 18% in the same period in 2024, due to favorable discrete tax events[147] - Gross margin decreased to 7.6% for the three months ended December 27, 2025, from 8.4% for the same period in 2024[141] Cash Flow and Liquidity - Net cash provided by operating activities was $179 million for the three months ended December 27, 2025, compared to $63,938 for the same period in 2024, reflecting a significant increase[149] - Cash and cash equivalents increased to $1.4 billion as of December 27, 2025, up from $926 million as of September 27, 2025[152] - Working capital rose to $3.2 billion as of December 27, 2025, compared to $2.0 billion as of September 27, 2025[153] - Net cash used in investing activities was $1.4 billion, primarily for the ZT Acquisition, which accounted for the majority of the cash outflow[156] - Net cash provided by financing activities was $1.8 billion, including $2.2 billion borrowed for the ZT Acquisition[157] - The company believes existing cash resources and other sources of liquidity will be sufficient to meet working capital requirements for at least the next twelve months[169] Customer Concentration - Sales to the ten largest customers accounted for approximately 65% of net sales, with one customer representing 10% or more of net sales for the three months ended December 27, 2025[128] Strategic Initiatives - The company aims to diversify into mission-critical markets and develop higher technology products with longer life cycles[133] Shareholder Actions - The company repurchased 0.5 million shares of common stock for $79 million during the three months ended December 27, 2025[160] Accounts Receivable and Cash Cycle - Days in accounts receivable increased to 75 days as of December 27, 2025, compared to 60 days as of September 27, 2025[151] - The cash cycle days increased to 83 days as of December 27, 2025, compared to 57 days as of September 27, 2025[151] Tax Liabilities - As of December 27, 2025, the company had a liability of $50 million for uncertain tax positions[166]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to _________ Commission File Number: 001-43009 STARFIGHTERS SPACE, INC. (Exact name of registrant as specified in its charter) Delaware 92-1012 ...