Core Insights - The company aims for double-digit loan and deposit growth by 2026, with management highlighting ongoing momentum across various banking sectors [1][19] - Loan growth in Q4 was significantly driven by sponsor finance and corporate banking, with overall loans increasing by $190 million in Q4 and $283 million for the year, reflecting a 15% annualized growth rate [2][3][7] - The bank reported a net income of $6.9 million for Q4, with an expanded net interest margin (NIM) of 4.13%, up from 3.90% in the previous quarter [10][11] Loan and Deposit Growth - Management reiterated a goal of double-digit growth in loans and deposits by 2026, citing strong pipeline momentum [1][19] - Loans increased by $190 million in Q4 and $283 million for the year, with a 15% annualized growth rate [3][7] - Deposit growth was led by corporate banking and venture lending, contributing to an increase in core deposits [2][7] Profitability Metrics - The company reported a net income of $6.9 million for Q4, or $0.65 per diluted share, with adjusted net income for the full year at $24.9 million, or $2.80 per share [10] - The net interest margin expanded to 4.13%, attributed to strong loan and core deposit growth, as well as a decrease in the cost of interest-bearing deposits [11][12] - Pre-provision net revenue increased to $12.9 million in Q4 from $10.7 million in Q3 [10] Non-Performing Assets - Non-performing assets increased, primarily due to three specific loans, including two construction loans and one sponsor finance loan [6][8] - Management believes these loans are well collateralized and expects to resolve the situation within 4 to 6 months [8][9] - Broader credit migration remains stable, with criticized and classified loans holding steady at approximately $37 million and $38 million, respectively [9] Expense and Provisioning Overview - The provision for credit losses rose to $2.8 million in Q4, driven by loan growth and including a $1.2 million specific reserve [5][14] - Non-interest expenses increased to $13.9 million, influenced by higher credit-related legal fees and consulting costs, but the adjusted efficiency ratio improved to 51.72% [15] - Management expects ongoing expenses to be above recent levels, with a run rate of approximately $14 million per quarter [16] Funding and Tax Rate - The year-end spot rate on interest-bearing deposits was 2.91%, with discussions on deposit beta dynamics indicating that about 20% of interest-bearing deposits are indexed [17] - The effective tax rate increased to 31.1% in Q4, primarily due to changes in California tax law, with expectations to return to around 28.5% in 2026 [18]

Core Insights - Cullen/Frost Bankers, Inc. (CFR) reported strong fourth-quarter 2025 adjusted earnings per share of $2.57, exceeding the Zacks Consensus Estimate of $2.47, and up from $2.36 in the prior-year quarter [1][9] - The results were driven by increased net interest income and non-interest income, supported by growth in loan and deposit balances, although elevated non-interest expenses posed a challenge [1][14] Financial Performance - The company reported net income available to common shareholders of $164.6 million for Q4 2025, a 7.4% increase from $153.2 million in Q4 2024 [2] - For the full year 2025, adjusted earnings per share reached $9.92, surpassing the Zacks Consensus Estimate of $9.84, and increased from $8.88 in the previous year [2] - Total revenues for Q4 2025 were $603.4 million, exceeding the Zacks Consensus Estimate by 3% and improving from $556.44 million year-over-year [3] - Annual revenues for 2025 were $2.32 billion, beating the Zacks Consensus Estimate of $2.30 billion and up from $2.15 billion in 2024 [3] Income Breakdown - Net interest income (NII) rose 8.6% year-over-year to $471.2 million, with the net interest margin (NIM) expanding 13 basis points to 3.66% [4] - Non-interest income increased 7.6% year-over-year to $132.2 million, driven by higher trust and investment management fees, service charges, and increased income from derivatives trading [5] Expense Analysis - Non-interest expenses totaled $371.7 million, a 10.6% increase year-over-year, primarily due to higher salaries, employee benefits, and one-time expenses [6] - The increase in expenses was partially offset by a reversal related to a special FDIC insurance assessment [6] Loan and Deposit Growth - Total loans for Q4 2025 were $21.9 billion, reflecting a 2.1% increase from the prior quarter, while deposits were $43.3 billion, up nearly 1% sequentially [7] Credit Quality - Credit loss expenses for Q4 2025 were $11.2 million, down from $16.2 million in the prior-year quarter, with net charge-offs decreasing to $5.8 million from $14.0 million [8] - The allowance for credit losses on loans was 1.29% of total loans, slightly down from 1.30% a year ago [8] Capital and Profitability Ratios - As of December 31, 2025, the common equity Tier 1 risk-based capital ratio was 14.06%, up from 13.62% year-over-year [11] - Return on average assets was 1.24%, compared to 1.16% in the prior-year quarter, while return on average common equity was 15.66%, down from 15.81% [12] Shareholder Returns - The company declared a first-quarter cash dividend of $1.00 per common share, payable on March 13, 2026 [13] - In Q4, CFR repurchased 653,913 shares for $80.7 million, completing its $150 million share repurchase authorization for 2025 [13]

Financial Data and Key Metrics Changes - The net interest margin (NIM) expanded to 3.21%, up 2 basis points from the prior quarter [10] - Net interest income increased to $170.3 million, $1 million higher than the previous quarter [10] - Return on average tangible equity was 15.8% for the fourth quarter and 16.3% for the full year [6] - The effective tax rate for the fourth quarter was 24.8%, expected to return to about 23.2% going forward [6] Business Line Data and Key Metrics Changes - Total loans grew by $183 million in the quarter, or 5.2% on an annualized basis, with significant growth in commercial and industrial (C&I) loans [8] - Retail and commercial deposits increased by $233 million, while public deposits declined by $447 million, resulting in a net increase of $214 million in deposits [10] - Non-interest income was reported at $55.6 million, while non-interest expense was $125.1 million for the fourth quarter [11] Market Data and Key Metrics Changes - The state unemployment rate was 2.2% in November, significantly lower than the national rate of 4.5% [5] - Total visitor arrivals were down 0.2% year-over-year, with spending up 6% to $19.6 billion [5] - The median single-family home price on Oahu was $1.1 million, up 4.3% from the previous year, while the median condo sales price was $512,000, down 5.2% [5][6] Company Strategy and Development Direction - The company expects full-year loan growth to be in the 3%-4% range, driven primarily by commercial real estate (CRE) and C&I loans [15] - Non-interest income is anticipated to remain stable at about $220 million for the year, with expenses expected to be around $520 million in 2026 [15] - The company has a new stock repurchase authorization of $250 million, providing flexibility for capital return [8][59] Management's Comments on Operating Environment and Future Outlook - Management noted that credit risk remains low and stable, with no broad signs of weakness in consumer or commercial books [12] - The company expects to see more normalized growth in the second half of the year, following a period of payoffs in the CRE portfolio [22][28] - Management expressed confidence in maintaining a strong capital position, with a CET1 target of 12% and current levels above 13% [59] Other Important Information - The company repurchased about 1 million shares, utilizing the remaining $26 million of its $100 million purchase authorization for 2025 [8] - The allowance for credit losses increased to $168.5 million, with coverage at 118 basis points of total loans and leases [13] Q&A Session Summary Question: Loan growth trends and pipeline - Management indicated that loan growth was broad-based, with some payoffs in the CRE portfolio affecting expectations, but they anticipate more normalized growth in the future [22][23] Question: Payoffs and paydowns in the industry - Management noted that payoffs have been occurring sooner than expected due to increased competition from permanent lenders, but they expect this trend to normalize [27][28] Question: Deposit trends and NIM expansion - Management confirmed that the interest-bearing deposit beta is expected to decrease to 30%-35% after two rate cuts, with continued focus on reducing deposit costs [29][48] Question: Full year loan growth guidance - Management suggested that loan growth may start lower in the first half of the year but expects a pickup in the second half [44] Question: M&A activity and ideal targets - Management remains open to M&A opportunities, focusing on strong management teams and disciplined lending cultures, particularly in the western U.S. [71][72]

Financial Data and Key Metrics Changes - The company reported earnings of $29.5 million, or $1.20 per share, with a return on assets (ROA) of almost 3% for the fourth quarter of 2025 [4] - The net interest income increased to approximately $31 million from $26 million in the previous year [18] - The net interest margin improved to 328 basis points from 290 basis points year-over-year [18] Business Line Data and Key Metrics Changes - The company grew checking accounts by over 23% during the year, with a total increase of about $116 million [6][9] - The loan portfolio saw significant growth, with gross loans held for investment increasing approximately 10% annualized from September 30 to December 31 [17] - Primis Mortgage closed loans increased to approximately $1.2 billion, a 50% increase over 2024 [14] Market Data and Key Metrics Changes - Non-interest-bearing deposits ended the year at $554 million, or 16% of total deposits, compared to 14% at the end of 2024 [18] - The company anticipates mortgage warehouse balances to average $500 million across 2026, with seasonal peaks expected [28] Company Strategy and Development Direction - The company aims for a sustainable ROA of 1% for the full year 2026, with expectations for margin expansion [39] - The focus remains on growing the core bank with good deposits and integrated lines of business, avoiding reliance on investor commercial real estate [15][54] - The company plans to continue hiring in the mortgage sector but with a more incremental approach to avoid large upfront expenses [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving goals for 2026, citing substantial momentum and opportunities for growth [5][24] - The company has controlled operating expenses and expects to maintain a core expense range of $23 million to $24 million in 2026 [24] - Management noted that the majority of noise from previous quarters is behind them, with expectations for improved margins and reduced expenses [43] Other Important Information - The company completed a sale-leaseback transaction that allowed for repositioning and entering 2026 with momentum [24] - The company has maintained 90% of digital deposit balances despite a decrease in rates, reflecting customer loyalty [11] Q&A Session Summary Question: What are the expectations for warehouse balances in 2026? - Management anticipates mortgage warehouse balances to average $500 million across the year, with seasonal peaks expected [28] Question: How should we think about overall loan growth in 2026? - The core bank is expected to grow loans by about $100 million, or 5% to 7%, with additional growth from Panacea and Warehouse [32] Question: What is the target sustainable ROA for 2026? - The target remains a 1% ROA for the full year, with expectations for improvement in the second half [39] Question: Is there still noise in the quarterly expenses? - Most of the noise is expected to be behind the company, with only minor impacts anticipated in the first quarter [43] Question: How will mortgage banking impact expenses? - Mortgage banking expenses are expected to scale with revenue, with a pre-tax contribution of 50 to 60 basis points anticipated [34]

Financial Data and Key Metrics Changes - Adjusted net income for Q4 2025 increased 18% year-over-year to $47.7 million, with pre-tax, pre-provision earnings rising to $93.2 million, a 39% increase from Q3 and a 65% increase from the prior year quarter [6][7] - Return on assets (ROA) for Q4 was 1.22%, and return on tangible equity (ROTE) was 15.72%, with expectations to exceed 1.30% ROA and approximately 16% ROTE in Q4 2026 [4][5] - Net interest income reached $174.6 million, a 31% increase from the prior quarter, with net interest margin expanding 12 basis points to 3.44% [8][9] Business Line Data and Key Metrics Changes - Loan outstandings grew at an annualized rate of 15%, driven by strong commercial banking performance and the Villages acquisition [2][12] - Non-interest income increased to $28.6 million, a 20% rise from the prior quarter, with wealth management income growing 21% from the prior quarter [10][11] - Non-interest expense for Q4 was $130.5 million, including $18.1 million in merger costs and $23.4 million in provisions related to the Villages acquisition [11][12] Market Data and Key Metrics Changes - Deposits increased to $16.3 billion, up 29% from the prior quarter, largely due to the acquisition of VBI [15] - Customer transaction accounts represented 48% of total deposits, reflecting a strong relationship-focused approach [16] - The allowance for credit losses totaled $178.8 million, with coverage to total loans increasing to 1.42% [14] Company Strategy and Development Direction - The company plans to achieve adjusted revenue growth of 29%-31% for the full year 2026, with a focus on organic growth momentum and high single-digit loan growth [21][23] - A 15% increase in banker count is planned for 2026, with benefits expected to be fully realized in 2027 and 2028 [22][23] - The company aims to maintain a low- to mid-50s efficiency ratio over the cycle, balancing growth investments with profitability [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook and the ability to deliver strong returns in 2026, emphasizing a strong balance sheet and operational strength [24] - The company remains vigilant in maintaining a disciplined credit culture, with a focus on high-quality loans and conservative risk management [13] - Management noted that while there are pockets of weakness in the Florida housing market, overall demand remains strong in key areas [86] Other Important Information - The Villages acquisition closed with higher tangible equity than initially projected, shortening the earn-back period [4] - The securities portfolio grew to $5.75 billion, with a focus on reducing risk and improving liquidity [17][18] - The company expects to manage capital effectively, considering options for dividends and buybacks in the future [46] Q&A Session Summary Question: Clarification on adjusted efficiency ratio - Management confirmed that the adjusted efficiency ratio includes amortization of intangible assets, which was previously excluded [34] Question: Loan growth attribution - Approximately 10% of the 15% loan growth was attributed to legacy Seacoast, with 2%-3% from the Villages acquisition, and the remainder from slower paydowns [38][40] Question: Capital return strategy - Management indicated that they will monitor capital levels and consider options for dividends and buybacks, focusing on the Villages deal first [46] Question: Fee income expectations - Management noted that mortgage banking income is expected to be higher due to the acquisition of a sizable servicing portfolio, impacting overall fee income [105]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $19.6 million or $0.96 per diluted share for Q4 2025, and $73.4 million or $3.61 per diluted share for the full year [4] - Return on average assets was 120 basis points for the year, while return on average equity was 12.38%, both exceeding annual guidance [4] - The efficiency ratio for the year was 58% [4] Business Line Data and Key Metrics Changes - Total loans increased by 1.5% in Q4 and 4% year-over-year to $4.66 billion, driven by strong demand in commercial lending [6] - Commercial business loans were down modestly on a linked-quarter basis but up 11% year-over-year, while commercial mortgage loans increased by 4% from the previous quarter and 6.5% year-over-year [6] - Residential lending grew modestly, up 1% during both the 3 and 12 months ended December 31, 2025 [7] - Consumer indirect loans decreased by 3.7% in Q4 and 4.5% for the year to $807 million [8] Market Data and Key Metrics Changes - Year-end total deposits were $5.21 billion, down 2.8% from September 30, driven by seasonal public deposit outflows [9] - Deposits were up 2% year-over-year despite the ongoing wind down of the banking-as-a-service line of business [9] Company Strategy and Development Direction - The company is focused on organic credit discipline growth, prudent expense management, and building a strong capital position to deliver long-term value to shareholders [22] - The company aims to drive sustainable growth through its community bank and wealth management firm, leveraging its size and market position as competitive advantages [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of Upstate New York markets, particularly with the recent $100 billion investment by Micron Technology [7] - The company anticipates higher performance for full year 2026, targeting a return on average assets of at least 122 basis points and an efficiency ratio below 58% [12] - Management expects to maintain a focus on profitable spreads and favorable credit mix, with a targeted annual loan growth of about 5% driven by commercial lending [14] Other Important Information - The company completed an $80 million subordinated debt offering with a fixed rate of 6.5%, which is favorable compared to previous issuances [5] - The company reported a BBB- rating from Kroll with a stable outlook, reflecting improved profitability and capital position [6] Q&A Session Summary Question: Margin outlook and expected cadence - Management indicated that margins were impacted by the sub debt raise and expect margins to expand incrementally throughout the year [26] Question: Loan growth and indirect auto portfolio management - Management confirmed intentional management of the indirect auto portfolio and expressed confidence in commercial lending growth opportunities [30] Question: Share buyback strategy - Management noted that share buybacks remain an attractive capital allocation option, with a focus on maintaining Common Equity Tier 1 above 11% [34] Question: ROA improvement potential - Management highlighted that accelerated asset originations could positively impact ROA, but profitability remains a priority over growth [40] Question: Deposit targets and initiatives - Management emphasized a focus on core deposit acquisition and successful treasury management offerings to drive deposit growth [43]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $30 million or $0.06 per diluted share in Q4 2025, compared to a net loss of $0.07 per diluted share in the previous quarter [5][6] - The unadjusted pre-provision, pre-tax net revenue improved by $51 million quarter-over-quarter, while adjusted pre-provision, pre-tax net revenue improved by $45 million versus Q3 [14] - The net interest margin (NIM) expanded by 14 basis points quarter-over-quarter, reaching 2.14%, including a one-time hedge gain of approximately $20 million [17][19] Business Line Data and Key Metrics Changes - The company experienced a 2% growth in net commercial and industrial (C&I) loans on a linked quarter basis, with a total commitment increase of 28% to $3 billion and originations rising by 22% to $2.1 billion [7][10] - The overall commercial real estate (CRE) exposure was reduced by $2.3 billion, with a concentration ratio now below 400% [7][22] - The multifamily portfolio declined by 13% or $4.3 billion year-over-year, with a reserve coverage of 1.83% [22][24] Market Data and Key Metrics Changes - Total CRE balances decreased by $12.1 billion or 25% since year-end 2023, aiding the strategy to diversify the loan portfolio [22] - The company reported a significant reduction in criticized and classified loans, down $330 million quarter-over-quarter, and a decrease in non-accrual loans by $267 million [26] Company Strategy and Development Direction - The company aims to solidify its balance sheet and reposition for growth, focusing on diversifying the loan portfolio and reducing reliance on wholesale funding [9][10] - The strategic initiatives over the past couple of years are expected to drive sustainable growth and profitability going forward [10][30] - The company plans to generate deposit growth across various business lines while maintaining discipline on pricing [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's earning power continuing to strengthen in 2026, driven by growth in net interest income and margin expansion [8][30] - The management team highlighted the importance of proactive management of CRE exposure and improving the bank's credit profile [8][30] - The company anticipates a full year of profitability in 2026, with adjusted EPS forecasted to be in the range of $0.65-$0.70 [16] Other Important Information - The company reduced brokered deposits by almost $8 billion during the year, enhancing its liquidity position [10][19] - The CET1 capital ratio increased by almost 400 basis points, now ranking among the highest capitalized regional banks [9][18] Q&A Session Summary Question: Can you talk about the drivers behind the lowered net interest income guidance? - Management indicated that higher payoff activity, particularly related to multifamily and CRE loans, was the primary driver for the reduction [34][35] Question: How comfortable are you with funding loan growth through core deposit growth? - Management expressed confidence in core deposit growth, leveraging bank branches and new C&I relationships to drive deposits [46][50] Question: What are the prospects for capital return and stock buybacks? - Management noted that the board will consider how to deploy excess capital based on balance sheet growth and non-performing loans [52][53] Question: Can you provide updates on the rent-regulated portfolio and potential impacts from rent freezes? - Management stated that there is ongoing dialogue regarding rent regulations and emphasized that they have not seen a decline in liquidity in the multifamily portfolio [71][76] Question: What is the expected roll-on yield for new C&I and CRE loans? - New C&I loans are coming on at a spread to SOFR of 175 to 300 basis points, while new CRE loans are at 200-225 basis points [89]

Core Insights - The company reported an increase in operating net income by $675,000 compared to the third quarter, attributed to improved net interest margins and strong non-interest income [1] - The company achieved a 1% operating return on assets (ROA) for the fiscal year 2025 and aims for a 1.20% ROA in 2026 [6][7] Financial Performance - Net interest income rose by approximately $3.2 million quarter-over-quarter, with net interest margin widening by 15 basis points to 3.32% [6][7] - Core loan growth for 2025 was strong at 10.5% excluding TC Federal, although competition is expected to push growth closer to the lower end of the target range of 8% to 12% [5][9] Acquisition and Integration - The legal close of the TC Federal acquisition occurred in December, with systems conversion expected in Q1 2026 and most cost savings anticipated to be realized starting in Q2 2026 [4][6] - The company now projects earnback from the acquisition in less than 2.5 years, with tangible book value dilution being less than initially expected [3][6] Credit Quality and Trends - Provision expense for the quarter was $1.65 million, up from $900,000 in the prior quarter, while net charge-offs were $1.6 million, slightly lower than the previous quarter [11] - Classified and criticized loans increased, primarily due to the TC Federal acquisition, with non-performing loans also rising [12] Non-Interest Income and Business Lines - Operating non-interest income was $11.1 million, reflecting strong performance in complementary business lines, particularly mortgage and SBSL [13] - The company expects to sell an additional $30 million of portfolio mortgage loans in Q1 2026, citing improving market conditions [13] Funding and Expenses - Deposits increased by approximately $24.3 million in Q4, with a focus on building a deposit-first relationship banking culture [16] - Operating non-interest expenses were $24.4 million, primarily due to the TC Federal acquisition, with expectations for expenses to decrease post-systems conversion [17] Capital Actions and M&A Outlook - The board declared a quarterly dividend of $0.12 per share, marking consecutive years of dividend growth, and share repurchases totaled $47,000 [18] - The company is actively pursuing additional M&A opportunities, focusing on Georgia and contiguous states, with a preference for negotiated transactions [19]

Core Insights - The company reported a strong financial performance for 2025, with a 30% year-over-year growth in net interest income and a consistent expansion of net interest margin throughout the year [1] - The strategic sale of approximately $850 million in single tenant lease financing loans to Blackstone improved the company's capital position and reduced exposure to lower-yielding fixed-rate loans [1] - The banking as a service (BaaS) initiatives generated over $1.3 billion in new deposits for 2025, more than tripling the amount from the previous year [1] Financial Performance - The fourth quarter results showed a 21% increase in quarterly revenue compared to the prior year, with net income of $5.3 million or $0.60 per diluted share [20][21] - Adjusted total revenue for the quarter was $42.1 million, reflecting a 21% increase over 2024, while adjusted pre-provision net revenue totaled $17.9 million, up 66% year over year [20] - Net interest income for the fourth quarter was $30.3 million, up about 27% year over year, with net interest margin improving to 2.22% [21][22] Credit and Risk Management - The company faced credit challenges primarily in two portfolios: SBA and franchise finance, but overall credit quality remained solid across other lending verticals [7][9] - A provision for credit losses of $12 million was recognized in the fourth quarter, with nonperforming loans increasing to $58.5 million, primarily due to SBA guaranteed balances [24][25] - Enhanced risk management processes and prudent underwriting standards are yielding positive results, with expectations for gradual credit improvement in the second half of 2026 [7][9] Strategic Initiatives - The company is focusing on attracting higher credit quality borrowers, anticipating production of approximately $500 million for the year, reflecting a commitment to prudent risk management [12][13] - Investments in technology, including AI-driven solutions for document collection and predictive analytics for risk management, are expected to enhance operational efficiency and credit quality [18][19] - The BaaS platform continues to grow, supporting various fintech partners and demonstrating strong demand for sponsorship and program oversight capabilities [14][15] 2026 Outlook - The company expects loan growth in the range of 15% to 17% for 2026, with net interest margin projected to reach 2.75% to 2.8% [28] - Noninterest income is projected at $33 million to $35 million, reflecting lower SBA originations but offset by continued BaaS growth [29] - The provision for credit losses is estimated at $50 million to $53 million for the full year, with expectations for moderation as problem loans are resolved [30]

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]