Financial Data and Key Metrics Changes - In Q4 2025, EPS was $2.59, up 33% year-over-year, with a return on average assets of 1.23% and a return on average tangible common equity of 16.9% [5] - For the full year, net interest income reached a record $2.9 billion, net revenue was $3.5 billion, and pre-provision net revenue was $1.4 billion, with net revenue and pre-provision net revenue increasing 12% and 26% respectively from the prior year [10][11] - Non-interest income rose 25%, primarily driven by stronger commercial banking and disbursement fees [10] Business Line Data and Key Metrics Changes - HFI loan growth was $5 billion, or 9%, across regional banking and specialized C&I verticals, with deposits increasing by $10.8 billion, or 16% [6][14] - Mortgage banking revenues were relatively stable, only down $5 million compared to the prior quarter, with expectations for stronger results in 2026 due to favorable regulatory changes and mortgage rate reductions [7] - Operating leverage was significant, with net revenue growth outpacing non-interest expense growth by four times [8] Market Data and Key Metrics Changes - Total deposits were essentially flat for Q4, but exceeded expectations for the full year, increasing by $10.8 billion, which was nearly $2.5 billion above revised guidance [13] - Regional Banking deposits grew by $1.4 billion in Q4, with notable contributions from Innovation Banking and Specialty Escrow Services [15] Company Strategy and Development Direction - The company is focused on organic growth, with expectations for loan growth of $6 billion and deposit growth of $8 billion in 2026, supported by a healthier macro backdrop and accommodative regulatory environment [24] - Continued investments in preparing for large financial institution status are expected to yield benefits without a notable increase in expenses [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong earnings momentum for 2026, citing macroeconomic tailwinds and a constructive sentiment among commercial clients [24] - The company anticipates net charge-offs to remain elevated in the first half of the year as it works through non-accrual loans, with a proactive approach to managing asset quality [8][26] Other Important Information - The company issued $400 million of subordinated debt to bolster its total capital ratio, which now stands at 14.5% [21] - Tangible book value per share increased by 17.3% year-over-year to $61.29, reflecting strong growth in organic retained earnings [21] Q&A Session Summary Question: Balance sheet growth guidance - Management indicated that the projected loan growth of $6 billion and deposit growth of $8 billion is leading the peer group and reflects organic growth, with adjustments possible if projections prove conservative [31] Question: Charge-off expectations - Charge-offs are expected to be slightly higher in the first half of the year as the company addresses non-accrual loans, with a target midpoint for modeling purposes set at 30 basis points [34] Question: Non-interest income sustainability - The strength in non-interest income is attributed to treasury management and digital disbursements, with expectations for continued growth in these areas [39] Question: ECR deposit expectations - ECR deposits currently make up about 37% of total deposits, with expectations for the mix to hold constant while aiming to push more towards non-ECR deposits [52] Question: Provisioning and allowance updates - The allowance for funded loans is expected to drift up into the low 80s basis points, driven by C&I loan growth and non-accrual loan management [65]

Financial Data and Key Metrics Changes - In Q4 2025, EPS was $2.59, up 33% year-over-year, with a return on average assets of 1.23% and return on average tangible common equity at 16.9% [5] - For the full year, net interest income reached a record $2.9 billion, net revenue was $3.5 billion, and pre-provision net revenue was $1.4 billion, with net revenue and pre-provision net revenue increasing 12% and 26% respectively from the prior year [10] - Non-interest income rose 25%, primarily driven by stronger commercial banking and disbursement fees [10] Business Line Data and Key Metrics Changes - HFI loan growth for the full year was $5 billion, or 9%, with deposits increasing by $10.8 billion, or 16% [6] - Mortgage banking revenues were relatively stable, only down $5 million compared to the prior quarter, with expectations for stronger results in 2026 due to favorable regulatory changes and mortgage rate reductions [7] - Regional Banking posted about $1 billion of loan growth, with significant contributions from Innovation Banking and hotel franchise finance [14] Market Data and Key Metrics Changes - Total deposits were essentially flat for the quarter, with notable growth in Regional Banking deposits, which increased by $1.4 billion [15] - The mix of ECR deposits is expected to hold constant, with around 37% of total deposits being ECR on an average basis [52] - The bank's total assets expanded to approximately $93 billion, with total equity ending the year at $8 billion [14] Company Strategy and Development Direction - The company aims to cross $100 billion in assets by year-end 2026 while maintaining steady expense growth [8] - The focus is on organic growth, with loan growth projected at $6 billion and deposit growth at $8 billion for 2026 [24] - The company is investing in new business lines and technology to support future growth, with a strong emphasis on operational efficiency [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong earnings momentum for 2026, supported by a healthier macro backdrop and accommodative regulatory environment [24] - The outlook includes expectations for net interest income growth of 11%-14% and non-interest income growth of 2%-4% [25] - Management anticipates net charge-offs to be between 25 and 35 basis points as they work through non-accrual balances [26] Other Important Information - The company issued $400 million of subordinated debt to bolster its total capital ratio [21] - Tangible book value per share increased by 17.3% year-over-year to $61.29, reflecting strong organic earnings [21] - The efficiency ratio improved, with a Q4 efficiency ratio of 55.7% [11] Q&A Session Summary Question: Balance sheet growth guidance - Management indicated that the projected loan growth of $6 billion and deposit growth of $8 billion leads the peer group and reflects organic growth [31] Question: Charge-off expectations - Charge-offs are expected to be slightly higher in the first half of the year as the company works to reduce non-accrual loans [34] Question: Non-interest income sustainability - The strength in non-interest income is driven by treasury management and digital disbursements, with expectations for continued growth [39] Question: ECR deposit expectations - ECR deposits are expected to hold constant in mix, with a beta of 65%-70% on ECR deposits [54] Question: Loan origination spreads - The company is experiencing competitive pressures but maintains a focus on quality and operational efficiency [57]

Financial Data and Key Metrics Changes - In Q4 2025, EPS was $2.59, up 33% year-over-year, with a return on average assets of 1.23% and return on average tangible common equity at 16.9% [4] - For the full year, net interest income reached a record $2.9 billion, net revenue was $3.5 billion, and pre-provision net revenue was $1.4 billion, with net revenue and pre-provision net revenue increasing 12% and 26% respectively from the prior year [8] - Non-interest income rose 25%, primarily driven by stronger commercial banking and disbursement fees, while non-interest expense growth slowed to 4% [8][9] Business Line Data and Key Metrics Changes - HFI loan growth for the full year was $5 billion, or 9%, with regional banking and specialized C&I verticals contributing significantly [4][10] - In Q4, mortgage banking revenues only declined by $5 million compared to the prior quarter, indicating stability despite seasonal trends [5] - The Juris Banking team completed over 17 million digital payments related to a major settlement, showcasing the effectiveness of the disbursement platform [5] Market Data and Key Metrics Changes - Total deposits increased by $10.8 billion, or 16%, driven by strong inflows in regional banking and a 40% growth in specialty escrow businesses [4][10] - Regional Banking deposits grew by $1.4 billion in Q4, with notable contributions from Innovation Banking and Specialty Escrow Services [12] - The mix of ECR deposits is expected to remain consistent, with around 37% of total deposits being ECR on an average basis [33] Company Strategy and Development Direction - The company aims to cross $100 billion in assets by year-end 2026 while maintaining a stable expense structure [6] - There is a focus on organic growth opportunities, with expectations of $6 billion in loan growth and $8 billion in deposit growth for 2026 [19][20] - The company is emphasizing the growth of lower-cost deposit channels and higher-yielding C&I loans to enhance net interest margin [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong earnings momentum for 2026, supported by a pro-growth regulatory environment and improving visibility on rate normalization [19] - The outlook for net interest income growth is projected at 11%-14%, assuming two rate cuts during the year [20] - Asset quality remains stable, with expectations for net charge-offs to be between 25 and 35 basis points as non-accrual balances are proactively reduced [21] Other Important Information - The company issued $400 million of subordinated debt to bolster its capital ratio, and tangible book value per share rose 17% year-over-year to $61.29 [11][17] - The efficiency ratio improved, with a Q4 efficiency ratio of 55.7% and an adjusted efficiency ratio of 46.5% [14] - The company has been a leader in creating shareholder value, with EPS growth and tangible book value accumulation ranking in the top quartile relative to peers over the last decade [18] Q&A Session Summary Question: Balance sheet growth guidance - Management indicated that the projected loan growth of $6 billion and deposit growth of $8 billion is leading the peer group and reflects organic growth [23] Question: Charge-off expectations - Charge-offs are expected to be higher in the first half of the year as the company works through non-accrual loans, with a normalization expected in the latter half [25] Question: Non-interest income sustainability - The strength in non-interest income is driven by treasury management and digital disbursements, with expectations for continued growth in these areas [27] Question: ECR deposit expectations - ECR deposits are expected to maintain a consistent mix, with a beta of 65%-70% on ECR deposits, and efforts are being made to shift towards lower-cost deposits [33][34]

In commercial deposits, Stewart said growth was driven primarily by public fund depository relationships, which carry a higher cost but are tied to local government relationships that also use treasury services. He also said higher line utilization typically reduces operating deposit account balances, reinforcing the company’s focus on improving deposit mix through “primary, core accounts” and deposit-cost discipline.On deposits, Stewart called the fourth quarter the company’s strongest quarter of deposit g ...

Shares of IndusInd Bank fell over 5% in early trade on Tuesday, reacting to the lender's weak third-quarter earnings.The private sector bank on January 23 reported an 89% year-on-year decline in standalone net profit for the December quarter to Rs 161 crore, compared with Rs 1,401 crore in the same period last year.However, on a sequential basis, the bank returned to profit, aided by a drop in provisions, after having posted a loss of Rs 445 crore in the second quarter of FY26.Net interest income (NII) — th ...

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, 63% higher year-over-year and 16% higher quarter-over-quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million compared to the linked quarter [11] Business Line Data and Key Metrics Changes - Loans and deposits grew modestly in the quarter, with non-interest-bearing demand deposits increasing by 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% being residential mortgage and home equity loans [7] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [7] Market Data and Key Metrics Changes - Bank of Hawaii's market share growth continued in 2025, advancing another 40 basis points [4] - Approximately 93% of loans are based in Hawaii, with 4% in the Western Pacific and 3% on the mainland [6] Company Strategy and Development Direction - The company aims to leverage its unique core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The focus remains on improving customer service and understanding market changes to maintain competitive advantages [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although growth may not continue at the same rate [24] - The outlook for loan growth in 2026 is expected to be mid-single digits, with a more positive pipeline for both consumer and commercial loans [29][54] Other Important Information - The company reported a provision for credit losses of $2.5 million, unchanged from the linked quarter [17] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [19] - The company resumed its stock repurchase program, purchasing approximately $5 million of common shares [19] Q&A Session Summary Question: Non-interest-bearing deposit growth - Management noted a 6% increase in non-interest-bearing deposits, attributing it to a balanced contribution from various business segments, but expects growth to moderate [24] Question: Loan pipeline outlook - Management indicated a generally positive outlook for loan pipelines, with expectations for mid-single-digit growth in 2026 [29][54] Question: Margin update - Management confirmed that the margin target of near 2.90% is based on year-end expectations, not fourth-quarter averages [33] Question: Special mention and classified balances - Special mention balances at the end of the fourth quarter were $63.4 million, down from the previous year, indicating strong credit quality [38] Question: Fee income opportunities - Management highlighted ongoing efforts in wealth management and a strong pipeline for fee income growth, aiming for a 10% increase [75]

Financial Performance - Western Alliance reported strong financial results in Q2, exceeding expectations with over $1 billion in sequential loan growth and nearly $2 billion in deposit growth [1] - Net interest income reached almost $700 million, growing 7.2% quarter-over-quarter and nearly 29% annualized, contributing to a 19% increase in PPNR to $331 million [8][10] - Return on average tangible common equity was 14.9%, and return on average assets was 1.1%, both significantly higher than Q1 [7] Asset Quality - Criticized loans decreased by $118 million from Q1, while total criticized assets remained around $1.7 billion, expected to decline in upcoming quarters [5][6][18] - Quarterly net loan charge-offs were approximately $30 million, or 22 basis points of average loans, with a provision expense of $40 million added to reserves [19][20] Deposit Growth - Total deposits grew by $1.8 billion in Q2, with significant contributions from noninterest-bearing and savings accounts, despite a $300 million decline in wholesale broker deposits [15][17] - The company anticipates achieving $8 billion in deposit growth for the year, supported by strong pipelines and strategic pricing adjustments [24][31] Strategic Initiatives - The company plans to unify six legacy division bank brands under the Weston Bank brand by year-end, enhancing its marketing presence [6] - A new leadership transition is underway, with Dale M. Gibbons moving to Chief Banking Officer and Vishal assuming CFO responsibilities, aimed at capitalizing on growth opportunities [2][3][4] Future Outlook - The company revised its net interest income growth outlook to 8% to 10% for the year, anticipating two 25 basis point rate cuts in September and December [24][25] - Asset quality is expected to continue performing well, with full-year net charge-offs projected at approximately 20 basis points and criticized assets anticipated to decline [26]

Financial Data and Key Metrics Changes - The company generated net income of $3.3 million, or $0.34 per diluted share in the fourth quarter, which was higher than the prior quarter [6] - Gross revenue increased by 1.5% from the prior quarter and 12.2% from the fourth quarter of 2024 [10] - Net interest income increased by 5.6% from the prior quarter and 21.7% from the fourth quarter of 2024, with a net interest margin (NIM) of 2.71%, up 17 basis points from the prior quarter [10][11] Business Line Data and Key Metrics Changes - Loans held for investment increased by $59 million from the end of the prior quarter, with new loan production of $146 million in the fourth quarter [7] - Total deposits increased by $102 million from the end of the prior quarter, with average deposits up 10% compared to the fourth quarter of 2024 [8][9] - Assets under management decreased by $155 million, primarily due to net withdrawals in low-fee product categories [9] Market Data and Key Metrics Changes - The company experienced a solid level of loan production diversified across markets, industries, and loan types, with a focus on maintaining conservative underwriting standards [6][8] - The market remains competitive in terms of pricing on loans and deposits, but the company continues to generate new loans and deposits through superior service [4] Company Strategy and Development Direction - The company is focused on organic growth and leveraging market disruption to recruit talent and new clients, particularly in the Colorado banking market [14][33] - A new market presence in Arizona is expected to provide growth opportunities, with strong loan and deposit pipelines anticipated for 2026 [14][33] - The company aims to maintain a disciplined approach to expense management while investing in business growth [38][39] Management's Comments on Operating Environment and Future Outlook - Management noted generally healthy economic conditions in their markets and expressed optimism about continued growth in loans and deposits in 2026 [14][33] - The company expects positive trends in net interest margin and fee income, with a goal of achieving a 1% return on assets (ROA) [14][43][94] - Management highlighted the importance of maintaining a stable local team of experts to attract clients amid ongoing market disruptions [14][33] Other Important Information - The company reported a one-time $1.4 million write-down on an OREO property, which impacted non-interest expenses [12] - The allowance coverage remained unchanged at 81 basis points of total loans, with stable trends in loan portfolio quality [13] Q&A Session Summary Question: Margin outlook and loan repricing - Management expects further NIM expansion through 2026, with about $250 million in fixed-rate loans maturing over the next year, providing opportunities for repricing [22][23] Question: Asset management and fee income growth - Management noted a decline in AUM due to net withdrawals in lower-yielding categories but sees positive trends in higher-yielding categories [25][26] Question: Expense growth rate in 2026 - The company aims to keep expenses below $20 million per quarter while remaining open to strategic investments that could enhance revenue growth [38][39] Question: Profitability improvement potential in 2026 - Management indicated a target of achieving a 1% ROA, with expectations for continued improvement in NIM and operating growth [43][94] Question: Deposit competition and loan pipeline - Management reported strong feedback on both loan and deposit pipelines, indicating confidence in their ability to attract deposits as needed [47][49] Question: Mortgage market expectations - The company is building its mortgage production capability and expects pent-up demand to create opportunities in the future [81][82]

Core Viewpoint - Peoples Bancorp of North Carolina, Inc. (PEBK) has shown strong short-term stock performance, gaining 25.6% over the past six months, significantly outperforming the industry and major indices [1][7]. Financial Performance - In the third quarter of 2025, PEBK reported steady year-over-year earnings, driven by higher net interest income from loan growth and improved interest spreads [2]. - The company demonstrated disciplined expense management, although this was partially offset by a higher provision for credit losses [2]. Asset Quality and Liquidity - Management emphasized stable asset quality and continued deposit growth, which has strengthened liquidity [3]. - PEBK's capital levels remain solid, supporting balance-sheet expansion in a gradually moderating interest-rate environment [3]. Competitive Position - Over the past six months, PEBK has outperformed peers such as Affinity Bancshares, Inc. (AFBI) and C&F Financial Corporation (CFFI), which gained 7.9% and 6.6%, respectively [7]. - The company benefits from a relationship-driven community banking model, enhancing liquidity and reducing reliance on higher-cost funding [9]. Revenue Streams - Beyond traditional banking, PEBK generates fee-based revenue through its appraisal management subsidiary, Community Bank Real Estate Solutions, LLC (CBRES), which provides a non-interest income stream less sensitive to rate cycles [10]. - This contribution helps offset margin pressure during periods of rate volatility and improves overall revenue consistency [10]. Risk Management - PEBK's conservative underwriting practices and active credit monitoring have supported stable asset quality across economic cycles [11]. - Management's focus on maintaining strong capital and liquidity levels allows the company to absorb credit costs and support balance-sheet growth [11]. Challenges - The company faces challenges in a difficult interest-rate environment, where faster repricing of deposits relative to earning assets can pressure net interest margins and profitability [12]. - Elevated unrealized losses within the investment securities portfolio due to higher interest rates constrain accumulated other comprehensive income and reduce balance-sheet flexibility [12]. Valuation - PEBK's trailing 12-month price-to-sales (P/S) ratio of 1.8X is lower than the industry's average of 3.5X but higher than its five-year median of 1.7X [13]. - Affinity Bancshares and C&F Financial's trailing 12-month P/S ratios stand at 2.5X and 1.3X, respectively [14]. Investment Outlook - PEBK is well-positioned with a stable community banking franchise, disciplined risk management, and diversified revenue streams, providing earnings durability across rate cycles [15]. - While near-term margin pressure and balance-sheet sensitivity to interest-rate movements are key considerations, the company's solid capital position and liquidity offer meaningful downside protection [15]. - The stock appears better suited for existing investors to hold, while prospective investors may prefer to await a more attractive entry point [16].

Financial Data and Key Metrics Changes - The company generated net income of $3.3 million, or $0.34 per diluted share in Q4 2025, which was higher than the prior quarter [5] - Tangible book value per share increased by 1.6% this quarter [5] - Gross revenue increased by 1.5% from the prior quarter and 12.2% from Q4 2024 [10] - Net interest income increased by 5.6% from the prior quarter and 21.7% from Q4 2024 [10] - Non-interest income decreased by approximately $800,000 from the prior quarter [11] Business Line Data and Key Metrics Changes - Loans held for investment increased by $59 million from the end of the prior quarter, with new loan production of $146 million in Q4 [6][7] - Total deposits increased by $102 million from the end of the prior quarter, with average deposits up 10% compared to Q4 2024 [8][9] - Assets under management decreased by $155 million in Q4, primarily due to net withdrawals in low-fee and fixed-fee product categories [9] Market Data and Key Metrics Changes - The market remains competitive in terms of pricing on loans and deposits, but the company continues to generate new loans and deposits through superior service [4] - The company has seen good opportunities to add new clients and talent due to ongoing disruption from M&A activity in the Colorado banking market [13] Company Strategy and Development Direction - The company maintains a conservative approach to new loan production with disciplined underwriting and pricing criteria [4] - The focus is on organic growth, leveraging market disruption to recruit talent and acquire new clients [82] - The company is investing in technology infrastructure, product teams, and internal processes for efficiency [86] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects loan and deposit growth in 2026 to be similar to 2025 [13] - Positive trends in net interest margin and fee income are anticipated, with a focus on disciplined expense control [14] - Management does not foresee any meaningful deterioration in asset quality [15] Other Important Information - The company had a one-time $1.4 million write-down on an OREO property, which impacted non-interest expenses [11] - The allowance coverage remained unchanged at 81 basis points of total loans [12] Q&A Session Summary Question: Margin outlook and loan repricing - Management expects further net interest margin expansion through 2026, with about $250 million in fixed-rate loans maturing over the next year [21][22] Question: Asset management and wealth management business trends - The decline in assets under management was due to net withdrawals in lower-yielding categories, but higher-yielding categories are showing improvements [24][25] Question: Expense outlook for 2026 - The company aims to keep expenses below $20 million per quarter while investing in growth opportunities [36] Question: Profitability improvement potential in 2026 - The near-term objective is to achieve a 1% return on assets, with a current operating run rate of about $2 per share [41] Question: Matching loan pipeline with core deposits - Both loan and deposit pipelines are reported as strong, with a focus on bringing in deposits as needed [42][45] Question: Tax rate outlook - The effective tax rate is expected to stabilize around 23%-24% going forward [72] Question: Mortgage market expectations for 2026 - The company is building production capability in the mortgage sector and expects pent-up demand to create opportunities [77][78]