Core Viewpoint - Security Federal Corporation reported a significant increase in net income for the fourth quarter and full year of 2025, driven by higher net interest income and non-interest income, despite facing challenges from lower market interest rates [2][3][7]. Financial Performance - For Q4 2025, net income available to common shareholders was $3.9 million, or $1.24 per share, a 29% increase from $3 million, or 94 cents per share, in the same quarter of the previous year [2]. - For the full year 2025, net income rose about 35% to $12 million, or $3.80 per share, compared to $8.9 million, or $2.77 per share, in 2024 [3]. Income Breakdown - Net interest income in Q4 2025 increased by $1.3 million, or 11.5%, year over year to $12.6 million, despite a 2.2% decline in total interest income due to lower market interest rates [4]. - Non-interest income rose 35.4% in Q4 to $3.9 million, with full-year non-interest income increasing 12.5% to $11.5 million, largely due to higher grant and rental income [5]. Expense Analysis - Non-interest expenses increased by 16% in Q4 and 9.1% for the year, primarily driven by higher salaries, employee benefits, and occupancy costs [5]. - The company experienced a favorable swing in credit loss provisions, recording a reversal of $235,000 in 2025 compared to a provision of $1.4 million in 2024 [6]. Asset Quality - Non-performing assets decreased to $5.8 million at the end of 2025 from $7.6 million a year earlier, with the allowance for credit losses to gross loans remaining stable at 1.97% [6]. Management Insights - Management attributed the earnings increase to improved net interest income, higher non-interest income, and lower credit loss provisions, while noting the impact of lower market interest rates on interest income and expenses [7][9]. - The positive contribution from Community Development Financial Institution (CDFI) grants was highlighted as a support for community development financing initiatives [8][10]. Strategic Developments - In 2025, Security Federal completed the purchase of a multi-tenant property for a future bank branch, contributing to higher rental income [12]. - The company reduced borrowings significantly, repaying all outstanding Federal Reserve borrowings and redeeming junior subordinated debentures, while deposits grew 3.6% year over year to $1.37 billion [12][13].

Shares of C&F Financial Corporation (CFFI) have gained 5.1% since reporting results for the fourth quarter of 2025. This compares with the S&P 500 index’s 0.1% decline over the same time frame. Over the past month, the stock has gained 8.3% compared with the S&P 500’s 0.8% return.C&F Financial reported consolidated net income of $6.7 million for the fourth quarter of 2025, up 11% from $6 million in the year-ago quarter. For the year ended Dec. 31, 2025, net income rose 36% to $27 million from $19.9 million ...

Core Insights - Flagstar Financial, Inc. (FLG) reported fourth-quarter 2025 adjusted earnings per share of 6 cents, surpassing the Zacks Consensus Estimate of 3 cents, and improved from a loss of 34 cents in the same quarter last year [1][2] - The results were driven by an increase in net interest income (NII), a significant reduction in provision for credit losses, and lower expenses, although lower non-interest income posed a challenge [1][9] Financial Performance - The net income available to common shareholders (GAAP basis) was $21 million, a recovery from a net loss of $196 million in the prior-year quarter [2] - Quarterly revenues reached $557 million, exceeding the Zacks Consensus Estimate by 4.3%, but declined 10.9% year over year [3] - For the full year 2025, revenues totaled $1.9 billion, reflecting a 28.6% increase from the previous year [3] - NII was reported at $467 million, a 1% year-over-year increase, with a net interest margin (NIM) of 2.14%, expanding by 41 basis points [3][8] - Non-interest income fell to $90 million, down 45% from the prior-year quarter, primarily due to the absence of gains from mortgage servicing operations and lower fee income [4][8] - Non-interest expenses decreased by 29% year over year to $509 million, with adjusted operating expenses down 17% to $462 million [4] Loan and Deposit Trends - Total loans and leases held for investment decreased by 3% sequentially to $60.7 billion as of December 31, 2025 [5] - Total deposits also declined by 5% sequentially to $66 billion as of the same date [5] Credit Quality - Non-accrual loans totaled $3 billion, slightly higher than the previous year [6] - Net charge-offs were $46 million, a significant drop of 79% from the prior-year quarter [6] - The provision for credit losses was reduced to $3 million from $145 million in the year-ago quarter, indicating stabilization in credit trends [6] Capital Ratios - As of December 31, 2025, the common equity tier 1 ratio improved to 12.83% from 11.83% a year earlier [7] - The total risk-based capital ratio increased to 16.23% from 15.14% in the prior-year quarter [7] - The leverage capital ratio rose to 9.22% from 7.68% a year ago, reflecting enhanced capital strength [7]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $42 million for Q4 2025, equating to $0.69 per diluted share, with a return on average assets of 1.1% and return on average equity of 7.6% [7] - For the full year 2025, consolidated income attributable to common stockholders was $165.6 million, representing a 46% increase compared to the prior year [15] - Total revenues for 2025 increased by 8% to approximately $1.3 billion, while expenses grew by only 2%, resulting in positive operating leverage of 6% [15] Business Line Data and Key Metrics Changes - PlainsCapital Bank experienced an expansion in net interest margin, increasing by 12 basis points year-over-year, and generated $43.5 million in pre-tax income [4][7] - PrimeLending reported a pre-tax loss of $5 million in Q4 2025, with origination volume of $2.4 billion, indicating a seasonal rebound despite ongoing industry challenges [9][10] - Hilltop Securities achieved a pre-tax margin of 18% on net revenues of $138 million, with public finance services seeing a 20% year-over-year increase in net revenues [10][11] Market Data and Key Metrics Changes - The average total deposits for Q4 2025 were approximately $10.7 billion, a decline of $233 million compared to Q4 2024, driven by the return of sweep deposits [19] - The interest-bearing deposit cost decreased to 269 basis points, down 44 basis points from the prior year [20] - Mortgage-related income and fees increased by $2.5 million compared to Q4 2024, driven by improvements in lock and originated volumes [20] Company Strategy and Development Direction - Hilltop aims to be a full solution provider to clients, focusing on executing strategic initiatives while maintaining solid capital levels with a Common Equity Tier 1 capital ratio of 19.7% [12] - The company is actively evaluating acquisition opportunities while also focusing on organic growth amidst a competitive market environment [47][48] - Management emphasized the importance of operational cost reductions and efficiency improvements to navigate the challenging mortgage industry landscape [10][25] Management Comments on Operating Environment and Future Outlook - Management noted a positive interest rate environment supporting expanded net interest margins, despite increasing competition [8] - The outlook for 2026 anticipates average bank loan growth of 4%-6%, excluding the impact of loans retained from PrimeLending [26] - There is uncertainty regarding interest rates and inflation, but management remains optimistic about the company's positioning for long-term success [28] Other Important Information - Hilltop returned $229 million to stockholders through share repurchases and dividends in 2025 [6] - The allowance for credit losses decreased by $3.6 million to $91.5 million, with net charge-offs of $11.5 million recorded in Q4 2025 [15][17] Q&A Session Summary Question: Expectations for broker-dealer fees and pre-tax margin for 2026 - Management expressed confidence in the stability of broker-dealer fees and indicated that a pre-tax margin of 13.5% is a reasonable baseline for 2026 [33][38] Question: Sensitivity of NII to potential Fed rate cuts - Management noted that every 25 basis points reduction in rates could impact NII by approximately $4.5 million, with broker fee income being more variable [39][41] Question: Discussion on capital priorities and M&A opportunities - Management highlighted the increase in dividends and standard share repurchase authorization, while also evaluating acquisition opportunities amidst a competitive landscape [46][48] Question: Loan growth pipeline and pricing competition - The loan pipeline entering 2026 is approximately $2.6 billion, with management noting increased competition in loan pricing due to the current rate environment [58] Question: Expectations for gain on sale margins in the mortgage sector - Management expects stable revenue from gain on sale margins and mortgage origination fees, with a projected range of 350-360 basis points [59][60]

Financial Data and Key Metrics Changes - Hilltop reported a net income of approximately $42 million for Q4 2025, equating to $0.69 per diluted share, with a return on average assets of 1.1% and return on average equity of 7.6% [7] - For the full year 2025, consolidated income attributable to common stockholders was $165.6 million, representing a 46% increase compared to the prior year [15] - Total revenues for 2025 increased by 8% to approximately $1.3 billion, while expenses grew by only 2%, resulting in positive operating leverage of 6% [15] Business Line Data and Key Metrics Changes - PlainsCapital Bank experienced an expansion in net interest margin, increasing by 12 basis points year-over-year, and generated $43.5 million in pre-tax income [4][7] - PrimeLending reported a pre-tax loss of $5 million in Q4 2025, with origination volume of $2.4 billion, indicating a seasonal rebound despite ongoing profitability challenges [9] - Hilltop Securities achieved a pre-tax margin of 18% on net revenues of $138 million, with Public Finance Services seeing a 20% year-over-year increase in net revenues [10][11] Market Data and Key Metrics Changes - The average total deposits for Q4 2025 were approximately $10.7 billion, a decline of $233 million compared to Q4 2024, driven by the return of sweep deposits [19] - Mortgage-related income and fees increased by $2.5 million year-over-year, with purchase mortgage volumes stable at $1.9 billion and refinance volumes up by 49% [20][22] - The allowance for credit losses decreased by $3.6 million to $91.5 million, yielding an allowance to total loans ratio of 1.1% [15][27] Company Strategy and Development Direction - Hilltop aims to be a full solution provider to clients, focusing on strategic initiatives to enhance service offerings [12] - The company is actively evaluating acquisition opportunities while also prioritizing organic growth amidst a competitive market [46] - Management expressed optimism about the performance of key business lines, particularly Public Finance and Wealth Management, while acknowledging challenges in Fixed Income Services [34][35] Management's Comments on Operating Environment and Future Outlook - Management noted a positive interest rate environment supporting expanded net interest margins, despite increasing competition [8] - The outlook for 2026 anticipates average bank loan growth of 4%-6%, with expectations of continued challenges in the mortgage market [26] - Management highlighted the uncertainty in the market regarding interest rates and inflation but remains confident in the company's positioning for long-term success [28] Other Important Information - Hilltop returned $229 million to stockholders through share repurchases and dividends in 2025 [6] - The company maintains a Common Equity Tier One capital ratio of 19.7% and a Tangible Book Value per share of $31.83, reflecting solid capital levels [12] Q&A Session Summary Question: Insights on broker-dealer fees and expectations for 2026 - Management expressed confidence in the stability of broker-dealer fees and indicated that the pre-tax margin of 13.5% is a reasonable baseline for 2026 [33][38] Question: Discussion on capital priorities and M&A opportunities - Management confirmed an 11% increase in dividends and a share repurchase authorization of $125 million, while continuing to evaluate acquisition opportunities [46] Question: Expectations for loan growth and pricing competition - The loan pipeline entering 2026 is robust at $2.6 billion, with management optimistic about organic growth despite pricing competition [57] Question: Gain on sale margins outlook - Management expects total revenue from gain on sale margins and mortgage origination fees to remain stable, with a projected range of 350-360 basis points [59]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $42 million or $0.69 per diluted share for Q4 2025, with a return on average assets of 1.1% and return on average equity of 7.6% [6] - For the full year 2025, consolidated income attributable to common stockholders was $165.6 million, equating to $2.64 per diluted share, representing a growth of 46% [13] - Net interest income grew by 7% year-over-year, while non-interest income increased by 11%, contributing to a 26% improvement in diluted EPS [12] Business Line Data and Key Metrics Changes - PlainsCapital Bank saw an expansion in net interest margin, with a pre-tax income of $43.5 million and a return on average assets of 1.05% [6] - PrimeLending reported a pre-tax loss of $5 million in Q4 2025, despite a seasonally healthy origination volume of $2.4 billion [8] - Hilltop Securities generated pre-tax income of $26 million on net revenues of $138 million, achieving a pre-tax margin of 18% [10] Market Data and Key Metrics Changes - The average total deposits for Q4 2025 were approximately $10.7 billion, declining by $233 million compared to Q4 2024 [18] - Mortgage-related income and fees increased by $2.5 million year-over-year, driven by improvements in lock and originated volumes [20] - Public Finance, Wealth Management, and Structured Finance business lines within Hilltop Securities all generated higher fee income compared to the prior year [21] Company Strategy and Development Direction - Hilltop aims to be a full solution provider to clients, focusing on executing strategic initiatives [11] - The company is actively evaluating acquisition opportunities while also focusing on organic growth [44] - Management expressed optimism about the performance of Public Finance and Wealth Management, expecting continued improvement in these areas [32] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the market regarding interest rates, inflation, and overall economic health, but remains optimistic about the company's positioning for long-term success [14][27] - The company expects full-year average bank loan growth of 4%-6% for 2026, excluding the impact of loans retained from PrimeLending [25] - Management anticipates that interest-bearing deposit costs will decrease somewhat over the coming quarters [19] Other Important Information - Hilltop returned $229 million to stockholders through share repurchases and common dividends in 2025 [5] - The allowance for credit losses decreased by $3.6 million to $91.5 million during the quarter [14] Q&A Session Summary Question: Expectations for broker-dealer fees and pre-tax margin for 2026 - Management expressed confidence in the stability of broker-dealer fees and indicated that a pre-tax margin of 13.5% is a reasonable baseline for 2026 [31][36] Question: Sensitivity of NII and broker-dealer fees to Fed cuts - Management noted that every 25 basis points reduction in rates could impact NII by about $4.5 million annually, with broker fee income being more variable [38] Question: Capital priorities and M&A opportunities - Management highlighted the increase in dividends and the standard share repurchase authorization, while also evaluating acquisition opportunities in a competitive market [44][45] Question: Loan growth and pricing competition - The loan pipeline entering 2026 is approximately $2.6 billion, with management feeling optimistic about organic loan growth despite pricing competition [55] Question: Gain on sale margins expectations - Management expects total revenue from gain on sale margins and mortgage origination fees to remain stable, with a projected range of 350-360 basis points [57]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $21 million, an increase of $16.1 million or 327.2% compared to the previous quarter [9] - Diluted earnings per share for Q4 were $0.70, an increase of $0.54 per share linked quarter [9] - For the full year 2025, net income was $69.2 million, a decrease of $19.3 million or 21.8% compared to 2024 [10] - The net interest margin expanded to 2.98%, up 4 basis points from the previous quarter [15] - Non-interest income, excluding the net loss on the sale of AFS securities, increased by $494,000 or 4% for the linked quarter [16] Business Line Data and Key Metrics Changes - New loan production in Q4 totaled approximately $327 million, down from $500 million in Q3 [5] - Loans as of December 31 were $4.18 billion, a linked-quarter increase of $52.7 million or 1.1% [10] - The average rate of loans funded during Q4 was approximately 6.6% [10] - Non-performing assets increased by $2.6 million but remained low at 0.45% of total assets [7][11] Market Data and Key Metrics Changes - The Texas economy is anticipated to grow at a faster pace than the overall projected U.S. growth rate [8] - The loan pipeline rebounded to just over $2 billion after dipping to $1.5 billion mid-quarter [6] Company Strategy and Development Direction - The company is focused on restructuring its available-for-sale securities to enhance future net interest income and provide balance sheet flexibility [4] - There is an ongoing initiative to move core systems to OutLink and build a data platform to improve operational efficiency [22][23] - The company remains open to strategic acquisitions, particularly in targeted areas like Dallas and Houston [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, anticipating a good year for loan growth despite some headwinds from payoffs [43] - The company is actively monitoring market conditions for potential opportunities arising from M&A activity in Texas [51] Other Important Information - The company plans to redeem $93 million of subordinated notes on February 15, 2026, which is expected to positively impact net interest margin [14] - The efficiency ratio improved to 52.28% as of December 31, down from 52.99% [18] Q&A Session Summary Question: Details on 2026 expense growth and software projects - Management indicated a 7% increase in expenses for 2026, with a portion related to software initiatives aimed at improving efficiency [21][22] Question: Expectations for first quarter margin - Management expects a positive margin in Q1, though muted, with improvements anticipated as the year progresses [35][40] Question: Loan growth expectations - Management is optimistic about exceeding loan production targets, despite potential payoffs impacting growth [41][43] Question: Buyback strategy - The company will continue to be opportunistic with stock buybacks, balancing this with potential acquisitions [45] Question: Fee income outlook - An increase of approximately $1.5 million in fee income is budgeted for 2026, driven by trust income and brokerage services [48][49] Question: M&A activity and target asset size - The company is looking for opportunities in the lower asset size range, with a focus on strategic acquisitions that could help cross the $10 billion threshold [56]

Financial Performance - The company reported a net income of $10.8 million for Q4 2025, an increase from $10.2 million in Q4 2024, translating to $0.81 per basic share compared to $0.78 per basic share in the previous year [1] - For the year ended December 31, 2025, net income was $44.4 million, down from $47.1 million in 2024, with earnings per share of $3.35 compared to $3.58 [1] Loan Portfolio and Demand - The company experienced strong performance in its loan portfolio, with outstanding unfunded commitments exceeding $680 million as of December 31, 2025 [2] - Loans, net of the allowance for credit losses, increased by $47.8 million, or 2.6%, to $1.9 billion, driven by a $99.9 million increase in multi-family loans [8] - The company originated loans totaling $860.7 million in 2025, primarily in construction and multi-family loans [9] Balance Sheet Highlights - Total assets increased by $53.9 million, or 2.7%, to $2.1 billion as of December 31, 2025, primarily due to increases in net loans and equity securities [3] - Total stockholders' equity rose by $33.4 million, or 10.5%, to $351.7 million, representing 17.04% of total assets [6][23] Interest Income and Expense - Net interest income for Q4 2025 was $25.5 million, a slight increase from $25.3 million in Q4 2024, attributed to a decrease in interest expense [24] - Total interest and dividend income decreased by $1.9 million, or 4.6%, to $38.6 million for Q4 2025, primarily due to a decrease in yield on interest-earning assets [25] Asset Quality - The company maintained strong asset quality with no non-performing loans as of December 31, 2025, compared to $5.1 million in non-performing assets in 2024 [6][53] - The allowance for credit losses related to loans decreased to $4.7 million, or 0.25% of total loans, from $4.8 million, or 0.27% of total loans, in the previous year [10][55] Non-Interest Income and Expenses - Non-interest income for Q4 2025 was $987,000, a significant increase from $149,000 in Q4 2024, driven by unrealized gains on equity securities [33] - Non-interest expenses increased by $1.3 million, or 12.8%, to $11.2 million for Q4 2025, primarily due to higher salaries and employee benefits [36] Capital and Regulatory Compliance - The company's capital position remains strong, with a tier 1 leverage capital ratio of 16.39% and a total risk-based capital ratio of 15.62% as of December 31, 2025 [58] - The company has the ability to borrow $768.8 million from the Federal Reserve Bank of New York, indicating a robust liquidity position [57]

Core Insights - Navient Corporation (NAVI) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, exceeding the Zacks Consensus Estimate of 31 cents, compared to 25 cents in the prior-year quarter [1][9] Financial Performance - The results were supported by lower expenses and a slight decline in provisions for loan losses, but faced challenges from a decrease in net interest income (NII) and other income, leading to a nearly 10.8% drop in shares during early trading [2][9] - The adjusted loss per share for 2025 was 35 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents per share, contrasting with the adjusted EPS of $2 reported in the previous year [4] - The company reported a GAAP net loss of $80 million for 2025, compared to a net income of $131 million in the prior year [4] Income and Expenses - NII declined 3.7% year over year to $129 million in the fourth quarter, missing the Zacks Consensus Estimate by 3.3% [5] - Total other income decreased 48.3% year over year to $15 million [5] - Total expenses decreased 34.2% year over year to $100 million [6] Segment Performance - Federal Education Loans segment generated a net income of $27 million, significantly up from $10 million in the year-ago quarter [7] - Consumer Lending segment reported a net income of $25 million, down 32.4% from the year-ago quarter [7] - The private education loan delinquency rate greater than 30 days was 6.3%, slightly up from 6.1% in the prior-year quarter [8] Liquidity and Capital Distribution - As of Dec. 31, 2025, the company had $637 million in total unrestricted cash and liquid investments [11] - In the fourth quarter, NAVI paid $15 million in common stock dividends and repurchased shares of common stock for $26 million [12] Strategic Outlook - The company is expected to utilize various sources to meet liquidity needs, including cash and investment portfolio, predictable operating cash flows, and potential issuance of asset-backed securities [10] - Strategic actions to control expenses are anticipated to support financials in the upcoming period, despite concerns over weaker NII [13]

Core Viewpoint - Affinity Bancshares, Inc. (AFBI) has shown strong earnings growth in Q4 2025, driven by increased net interest income and reduced noninterest expenses, despite some challenges in stock performance compared to the S&P 500 Index [1][2][8]. Financial Performance - For Q4 2025, net income was $2.1 million, a 58.5% increase from $1.3 million in Q4 2024, with diluted EPS rising 70% to $0.34 from $0.20 [2]. - Full-year net income reached $8.3 million in 2025, up 53.1% from $5.4 million in 2024, while diluted EPS increased 55.4% to $1.29 from $0.83 [4]. Revenue and Income Sources - Net interest income for Q4 2025 grew 11% to $8.3 million from $7.4 million a year earlier, primarily due to higher interest income on loans and deposits [3]. - Noninterest income saw a modest increase in Q4, but full-year noninterest income declined due to lower service charges and the absence of real estate sale gains [10]. Balance Sheet and Profitability Metrics - Net interest margin (NIM) expanded to 3.77% in Q4 from 3.56% a year earlier, reflecting improved expense control [5]. - Total assets increased to $881.7 million as of Dec. 31, 2025, from $866.8 million a year earlier, supported by loan growth and higher interest-earning deposits [5]. Loan and Deposit Growth - Total gross loans rose to $742.7 million as of Dec. 31, 2025, from $714.1 million a year earlier, with growth in construction, consumer, and commercial real estate loans [6]. - Deposits increased to $695 million as of Dec. 31, 2025, from $673.5 million, primarily driven by demand deposits [6]. Asset Quality - Non-performing loans decreased to $3.6 million as of Dec. 31, 2025, from $4.8 million at the end of 2024, indicating improved asset quality [7]. - The allowance for credit losses increased to 1.21% of total loans as of Dec. 31, 2025, from 1.19% a year earlier, with coverage of non-performing loans rising to 251.9% from 177.9% [7]. Management Insights - Management attributed improved earnings to higher net interest income and reduced noninterest expenses, with a focus on disciplined balance sheet management [8]. - The reduction in noninterest expenses by 5.6% year-over-year to $5.4 million was a key driver of earnings growth [11]. Shareholder Returns and Corporate Actions - The company paid a dividend of $1.50 per share and repurchased $6 million of common stock during the year [13]. - No acquisitions or divestitures beyond balance sheet actions were reported for the quarter [13].