Summary of Conference Call Company and Industry - The conference call pertains to a financial institution, likely a bank, discussing its performance and outlook ahead of the interim report. Key Points and Arguments Volume Development - Swedish mortgages experienced a slight pickup, while corporate lending growth remained muted [2] - Gradual increases in lending volumes were noted in the U.K. and the Netherlands, while growth in Norway remained muted [2] Margin Development and NIM Sensitivity - The bank does not provide guidance on margin development due to various influencing factors such as funding and competition [3] - Lower policy rates have negatively impacted transaction account deposit margins, with a full effect expected to take 1-2 quarters to materialize [3] - Policy rates remained unchanged in Sweden, Norway, and the Netherlands during Q3 and Q1, while the Bank of England cut rates by 25 basis points in late December [3] Foreign Exchange (FX) Impact - The Swedish krona strengthened against the euro and sterling but weakened slightly against the Norwegian krona, which may negatively affect sequential NII development [4] Fees and Commissions - Savings-related fees account for approximately two-thirds of total commissions, influenced by daily average stock market indices [4] - Daily average stock market indices increased in Q1 compared to Q4, which may positively impact savings-related fees [5] - The NTF (Net Trading Fees) averaged around SEK 500-600 million per quarter, with fluctuations possible due to market volatility [6] Cost Lines - The strengthening of the Swedish krona may lead to slightly lower costs in foreign markets when converted to Swedish krona [6] Oktogonen Provisions - The bank does not provide guidance on Oktogonen provisions but notes that they typically align with the previous year's average [7] Regulatory Fees - A booking of interest-free deposits at the Central Bank in Q4 will not recur in Q1 [8] - The resolution fund fee is expected to increase slightly due to recalibrated formulas based on total liabilities [8] Capital Ratios - The reported CET1 ratio in Q4 was 17.6%, which is 285 basis points above the SREP, indicating the bank is within its target range [9] Market Rate Sensitivity - The bank refrained from providing explicit sensitivity analysis regarding market rates and their impact on various financial components [10][11] Wholesale Funding - The bank followed its internal funding plan, completing two senior trades in USD and euro, with no deviations from previous quarters [23] Single Resolution Fund Fee - There is uncertainty regarding the timeline for the Single Resolution Fund fee's elimination in Sweden, with no additional insights available [26] Potential Additional Banking Tax - The possibility of an additional banking tax in Sweden due to a change in government remains uncertain [28] Other Important Content - The call was primarily for housekeeping purposes, reminding analysts of publicly communicated matters ahead of the interim report [1] - The bank emphasized that the call would not include new information or guidance [1]

Core Viewpoint - The buy now, pay later lender is experiencing a significant decline in stock value due to concerns regarding potential credit losses [1] Company Summary - The lender's stock has plummeted, indicating investor anxiety about the company's financial health and future performance [1] Industry Summary - The buy now, pay later sector is facing scrutiny as credit loss fears grow, impacting investor confidence and market stability [1]

Core Insights - Hilltop Holdings Inc. reported a strong financial performance for the fourth quarter and full year 2025, with income attributable to common stockholders reaching $41.6 million, or $0.69 per diluted share, compared to $35.5 million, or $0.55 per diluted share, in the same quarter of 2024 [1] - For the full year 2025, income attributable to common stockholders was $165.6 million, or $2.64 per diluted share, up from $113.2 million, or $1.74 per diluted share, in 2024 [1] - The company declared a quarterly cash dividend of $0.20 per common share, marking an 11% increase from the previous quarter [1] Financial Performance - The provision for credit losses in Q4 2025 was $7.8 million, compared to a reversal of credit losses of $2.5 million in Q3 2025 and a reversal of $5.9 million in Q4 2024 [1] - Net gains from the sale of loans and other mortgage production income increased to $76.2 million in Q4 2025, a 3.4% rise from $73.7 million in Q4 2024 [1] - Mortgage loan origination production volume was $2.4 billion in Q4 2025, compared to $2.3 billion in Q4 2024 [1] Capital Management - Hilltop's Board of Directors authorized a new stock repurchase program allowing for the repurchase of up to $125 million of outstanding common stock through January 2027 [1] - In Q4 2025, the company repurchased 1,799,995 shares for $60.8 million at an average price of $33.77 per share [1] - Total stockholder equity at the end of 2025 was $2.2 billion, with a book value per common share of $36.42 [2] Segment Performance - PlainsCapital Bank showed healthy core loan and deposit growth, achieving a return on average assets of 1.17% [1] - PrimeLending reduced pre-tax losses by 48% despite a challenging home-buying market, indicating operational efficiency improvements [1] - HilltopSecurities generated $501 million in net revenue with a pre-tax margin of 13.5%, benefiting from strong performance in Structured Finance, Wealth Management, and Public Finance [1] Tax and Regulatory Insights - The effective tax rate for Q4 2025 was 19.2%, lower than the 14.2% in Q4 2024, primarily due to investments in tax-exempt instruments and state refund claims [1] - Total deposits at December 31, 2025, included approximately $5.9 billion in estimated uninsured deposits, representing about 54% of total deposits [1]

Second Quarter of Fiscal 2026 December 31, 2025 myprovident.com Safe Harbor Statement This presentation contains statements that the Company believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company's financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertain ...

Core Insights - Bank OZK reported a fourth-quarter 2025 earnings per share (EPS) of $1.53, a decrease of 1.9% year over year, and missed the Zacks Consensus Estimate of $1.56 [1][9] - The decline in EPS was attributed to higher provisions for credit losses and increased operating expenses, despite growth in net interest income (NII) and non-interest income [1][11] Financial Performance - Net income available to common shareholders was $171.9 million, down 3.5% from $178.1 million in the same quarter last year [2] - For the full year 2025, EPS was $6.18, slightly up from $6.14 in 2024, but below the Zacks Consensus Estimate of $6.20 [2] - Net revenues for the fourth quarter were $440.6 million, reflecting a 6.9% year-over-year increase and exceeding the Zacks Consensus Estimate of $432.6 million [3] - Total net revenues for 2025 reached $1.72 billion, up from $1.66 billion in 2024, meeting the Zacks Consensus Estimate [3] Income and Expenses - Fourth-quarter net interest income was $407 million, a 7.3% increase year over year, surpassing the estimate of $402 million [3] - Non-interest income totaled $33.6 million, up 2% from the previous year, but below the estimate of $34.5 million [4] - Non-interest expenses rose to $161.6 million, a 15.4% increase from the prior year, driven by higher salaries, employee benefits, and other operating costs [5] - The efficiency ratio increased to 36.36%, up from 33.71% a year ago, indicating reduced profitability [5] Asset Quality - As of December 31, 2025, net loans increased to $31.8 billion from $29.5 billion a year earlier, while total deposits rose to $33.4 billion, reflecting a 7.5% increase [6] - The net charge-offs to average total loans rose significantly to 1.18% from 0.16% in the previous year [7] - Provisions for credit losses increased by 36% year over year to $50.6 million, exceeding the projected $40.1 million [7] - The ratio of non-performing loans to total loans increased to 1.06% from 0.44% a year ago, indicating pressure on asset quality [7] Profitability Metrics - Return on average assets decreased to 1.67% from 1.87% in the prior year [10] - Return on average common equity also declined to 11.80% from 13.33% [10] Overall Assessment - Bank OZK continues to benefit from steady loan growth and solid net interest income generation, but faces challenges from elevated operating expenses, higher credit costs, and worsening asset quality metrics [11]

Summary of Conference Call Company and Industry - The call pertains to Handelsbanken, a Swedish bank, and its operations within the banking industry in Sweden and Norway. Core Points and Arguments 1. **Interest-Free Deposits Requirement** The Swedish Riksbank will require Handelsbanken to maintain interest-free deposits amounting to SEK 8.4 billion starting October 31, 2025, as part of a new regulation aimed at restoring the Riksbank's equity and funding operations [2][3] 2. **Impact of Risk Weight Changes** The Norwegian Ministry of Finance's decision to raise the average risk weight floor for Norwegian mortgages from 20% to 25% will result in an additional SEK 7 billion in risk exposure for Handelsbanken by December 31, 2025 [2][3] 3. **Volume Development** There was a slight increase in Swedish mortgage volumes in October, while corporate lending growth remains subdued. Gradual volume increases are noted in the UK and the Netherlands, but remain muted in Norway [4] 4. **Net Interest Income (NII) Sensitivity** The bank does not provide specific guidance on NII due to various influencing factors such as funding and competition. Recent policy rate cuts in the UK, Sweden, and Norway may negatively impact transaction account deposit margins [4][5] 5. **Foreign Exchange (FX) Impact** The strengthening of the Swedish krona against other currencies is expected to create headwinds for sequential NII development [5][6] 6. **Fee and Commission Trends** Savings-related fees, which constitute about two-thirds of total commissions, are influenced by stock market performance. The daily average stock market indices have shown an increase in Q4 compared to Q3 [6] 7. **Cost Management** The strengthening of the Swedish krona is anticipated to result in slightly lower costs in foreign markets when converted to Swedish kronor [7] 8. **Capital Position** The CET1 ratio reported in Q3 was 18.2%, exceeding the SREP requirement by 350 basis points. The bank aims to return to the target range of 100 to 300 basis points above the SREP over time, but no specific timeline is provided [8][9] Other Important Content - The call was primarily a housekeeping exercise to remind analysts of previously communicated information and did not include new guidance or information [1] - The bank's management expressed a commitment to transparency regarding Oktogonen provisions, although no specific guidance was provided [8] - The call concluded with an invitation for further questions, indicating a willingness to engage with analysts post-call [12]

Financial Performance - Net income increased approximately 3%[19] - Pre-Provision, Pre-Tax Income decreased approximately 2%[19] - Net Interest Margin increased six basis points to 300%[19] - Net Interest Income decreased approximately 1%[19] - Non-Interest Income decreased approximately 8%[19] Balance Sheet & Loan Portfolio - Loans Held for Investment balance remained virtually unchanged while the yield increased four basis points at September 30, 2025[46] - Total Deposits balance decreased approximately 2% and the cost decreased two basis points at September 30, 2025[46] - Total Borrowings balance remained virtually unchanged while the cost decreased four basis points at September 30, 2025[46] - As of September 30, 2025, Single-Family loans accounted for 53%, Multi-Family loans 40%, and Commercial Real Estate loans 7% of the loan portfolio[49] Capital Management - Provident Bank purchased approximately 67000 shares of common stock in the first quarter of fiscal 2026[95]

Financial Data and Key Metrics Changes - Adjusted total revenues reached $43.5 million, an increase of 30% over the second quarter [5] - Net interest income increased over 8% compared to the linked quarter and was up 40% compared to the third quarter of 2023 [6] - Net interest margin on a fully tax-equivalent basis increased 8 basis points to 2.12% [6][14] - The company reported a net loss of $41.6 million, or $0.476 per diluted share, with an adjusted net loss of $12.5 million, or $1.43 per diluted share [13] Business Line Data and Key Metrics Changes - The gain on sale of SBA loans generated $10.6 million in revenue, rebounding strongly in the third quarter [10] - Commercial loan balances were up $115 million, or 3.2%, while total loan balances increased by $105 million, or 2.4% [8] - Total revenue from fintech initiatives was up 14% compared to the second quarter and up 130% from the third quarter of 2024 [12] Market Data and Key Metrics Changes - Total delinquencies were 35 basis points as of September 30, down from 62 basis points in the second quarter [7] - Non-performing loans totaled $53.3 million at the end of the third quarter, up $9.7 million from the linked quarter [19] - The allowance for credit losses increased to $59.9 million, up $13.4 million, or almost 30% from the second quarter [20] Company Strategy and Development Direction - The company executed strategic actions that had a near-term negative impact on earnings but strengthened its financial position for future growth [6] - The focus remains on enhancing net interest margin and achieving a 1% return on average assets [7] - The company is exploring fintech opportunities and leasing opportunities that yield higher returns compared to previous investments [75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the credit outlook, indicating that delinquencies are trending down and the worst may be behind them [30][33] - The company anticipates loan balances to increase at an unannualized rate of 4% to 6% in the fourth quarter [23] - The macro environment remains uncertain, but customer activity is stabilizing, and lending teams are performing well [80] Other Important Information - The company completed the sale of $837 million of single-tenant lease financing loans, which had a net loss of $37.8 million [22] - The company has proactively secured SBA authorizations for loans in its pipeline prior to the government shutdown [10] Q&A Session Summary Question: What is the credit outlook? - Management indicated that delinquencies are decreasing, with only four delinquent accounts in the franchise finance portfolio [30] Question: How are you managing the government shutdown's impact? - The company secured authorizations for loans before the shutdown and can continue to fund loans where authorization exists [41] Question: Can you provide insights on the franchise finance portfolio? - An external audit showed no downgrades and two upgrades in the franchise finance portfolio, boosting confidence [46]

Financial Data and Key Metrics Changes - Commercial loan commitments increased to $808 million from $659 million year-over-year, but loan outstandings contracted by $41.1 million compared to a growth of $163.5 million in the prior year [2] - Deposits rose significantly by $635.5 million during the quarter, primarily due to a seasonal increase in public funds deposits of $473.2 million [2] - Reported net interest margin (NIM) for the quarter was 3.17%, slightly down from 3.20% in the previous quarter, while core NIM expanded by nine basis points to 3.33% [4] - Non-interest income increased by $1.8 million or 8.8% compared to the third quarter of 2024 [4] - Non-interest expense rose by $2.1 million or 4.4% compared to the third quarter of 2024, driven by compensation costs and other expenses [5] Business Line Data and Key Metrics Changes - The provision for credit losses recorded was $517,000, with an average ratio of 1.28% at September 30, consistent with June 30 [4] - Net charge-offs for the core NIM were $480,000, annualized at three basis points [4] Market Data and Key Metrics Changes - The company expects $75 million to $100 million of outflows of public funds per month in the fourth quarter, continuing into the first quarter [10] - Competition for deposits remains fierce, particularly in the certificate of deposit (CD) market, with a couple hundred million dollars of CDs maturing each quarter [22][24] Company Strategy and Development Direction - The company plans to maintain a flat loan growth compared to December 31, 2024, while expecting net interest income growth of 12 to 14% compared to 2024 [5] - The company is focused on internal initiatives for efficiency and digital improvements, with no immediate plans for significant M&A activity [32] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the provision for credit losses will be event-driven, influenced by loan changes and economic-related assumptions [6] - The outlook for core NIM is expected to remain relatively flat, with strong new loan yields around 7% [12] - The company is cautious about the impact of potential Fed rate cuts, expecting minimal immediate effects on net interest income and NIM [25] Other Important Information - The company reported a non-interest expense of $100 million for 2024, with an expected growth of approximately 2 to 3% for 2025 [6] - The guidance for income taxes remains unchanged at 20 to 20.5% based on current statutory rates [6] Q&A Session Summary Question: What is the outlook for public funds commercial deposit inflows? - The company expects normal seasonal outflows of $75 million to $100 million per month in the fourth quarter, continuing into the first quarter [10] Question: Can you provide more details on the NIM outlook? - Core NIM is expected to be relatively flat, with new loan yields around 7% [12] Question: What is the status of the loan pipeline? - The loan pipeline is healthy, with expectations for some growth in the fourth quarter, contingent on prepayment activity [14] Question: How much of the loan book is floating rate? - Approximately one-third of the loan book remains floating rate [26] Question: What is the company's approach to capital deployment and buybacks? - The company plans to maintain buyback activity around $6 to $7 million per quarter, with flexibility based on earnings growth [29] Question: What is the company's appetite for M&A? - The appetite for M&A remains unchanged, with a focus on internal initiatives rather than pursuing acquisitions at this time [32]

Financial Performance - Net income decreased approximately 12%[17] - Pre-Provision, Pre-Tax Income decreased approximately 5%[17] - Net Interest Income decreased approximately 4%[17] - Non-Interest Income decreased approximately 3%[17] - Operating Expenses decreased approximately 3%[17] - Net Interest Margin decreased eight basis points to 2.94%[17] Balance Sheet & Asset Quality - Loans Held for Investment balance decreased approximately 1%[41] - Total Deposits balance decreased approximately 1%[41] - Total Borrowings balance decreased approximately 1%[41] - Non-Performing Assets to Total Assets Ratio was unchanged at 0.11%[60] Capital Management - The company purchased approximately 76,000 shares of common stock in the fourth quarter of fiscal 2025[90]