Core Viewpoint - Endeavor Bancorp reported strong earnings for the fourth quarter of 2025, achieving a net income of $1.70 million, which reflects a solid performance despite challenges from recent Federal Reserve rate cuts. The company experienced growth in both loans and deposits, contributing to an overall record-breaking year [1][2]. Financial Performance - Net income for Q4 2025 was $1.70 million, or $0.45 per diluted share, compared to $1.73 million, or $0.46 per diluted share in Q3 2025, and $1.08 million, or $0.29 per diluted share in Q4 2024 [1]. - Core pre-tax earnings for Q4 2025 were $3.06 million, a 7.1% increase from $2.86 million in Q3 2025, and a 58.9% increase from $1.93 million in Q4 2024 [2]. - Total interest income remained stable at $12.2 million in Q4 2025, while total interest expenses decreased by $403,000, leading to a net interest income of $8.1 million, which is a 5.2% increase from the previous quarter and a 23.9% increase year-over-year [3]. Interest Margin and Asset Management - The net interest margin expanded by 13 basis points to 4.22% in Q4 2025 compared to 4.09% in Q3 2025, and increased by 25 basis points from 3.97% in Q4 2024 [4]. - The yield on total earning assets was 6.35% in Q4 2025, down from 6.48% in Q3 2025, primarily due to Federal Reserve rate cuts [4]. Non-Interest Income and Expenses - Non-interest income rose to $532,000 in Q4 2025, a 32.8% increase from Q3 2025 and a 232.7% increase from $160,000 in Q4 2024, largely driven by SBA loan sales income [5]. - Non-interest expenses increased to $5.6 million in Q4 2025, up $326,000 from Q3 2025 and $799,000 from Q4 2024, attributed to strategic investments in staff [6]. Asset Quality and Balance Sheet - Total loans outstanding increased by $10.8 million, or 1.7%, to $643.4 million in Q4 2025, and increased by $71.6 million, or 12.5%, year-over-year [11]. - Total deposits rose by $4.4 million, or 0.7%, to $682.7 million in Q4 2025, and increased by $81.5 million, or 13.6%, compared to the previous year [12]. - The loan-to-deposit ratio was 94.2% at the end of Q4 2025, compared to 93.3% in Q3 2025 and 95.1% in Q4 2024 [13]. Capital and Equity - Shareholders' equity increased to $53.1 million at the end of Q4 2025, compared to $51.0 million in Q3 2025 and $46.0 million in Q4 2024 [15]. - The Tier 1 leverage ratio was 10.24% as of December 31, 2025, remaining well above regulatory minimums [16].

4Q 2025 Investor Presentation January 29, 2026 Safe Harbor The information contained in this investor presentation may contain statements that are not historical in nature but rather are based on management's beliefs, assumptions, expectations, estimates and projections about the future. These statements can sometimes be identified by Arrow's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." These statements may be "forward- looking statements" within the m ...

Core Insights - ConnectOne Bancorp reported a net income of $38.0 million for Q4 2025, a decrease from $39.5 million in Q3 2025 but an increase from $18.9 million in Q4 2024. Diluted earnings per share were $0.75 for Q4 2025, down from $0.78 in Q3 2025 but up from $0.49 in Q4 2024 [2][4]. Financial Performance - The company's operating net income for Q4 2025 was $42.0 million, compared to $35.5 million in Q3 2025 and $20.2 million in Q4 2024. Operating diluted earnings per share were $0.83 for Q4 2025, up from $0.70 in Q3 2025 and $0.52 in Q4 2024 [3]. - The net interest margin widened by 16 basis points to 3.27% in Q4 2025, benefiting from a decrease in the cost of interest-bearing deposits and stable loan portfolio yields [5][7]. - Total assets increased to $14.0 billion as of December 31, 2025, from $9.9 billion a year earlier, primarily due to the merger with First of Long Island Corporation [16][17]. Income and Expenses - Noninterest income for Q4 2025 was $6.0 million, down from $19.4 million in Q3 2025, largely due to nonrecurring benefits from the employee retention tax credit and pension plan curtailment gains recognized in the previous quarter [10]. - Noninterest expenses decreased to $56.9 million in Q4 2025 from $58.7 million in Q3 2025, attributed to lower merger expenses and employee benefits [11]. Asset Quality - The provision for credit losses was $2.3 million in Q4 2025, down from $5.5 million in Q3 2025, reflecting improved asset quality and lower loss drivers [13]. - Nonperforming assets as a percentage of total assets were 0.33% as of December 31, 2025, compared to 0.58% a year earlier, indicating improved asset quality [14]. Dividends - The Board of Directors declared a cash dividend of $0.18 per share on common stock, payable on March 2, 2026, to shareholders of record on February 13, 2026 [6].

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].

Financial Data and Key Metrics Changes - In Q2 2026, the company originated $42.1 million in loans held for investment, a 42% increase from $29.6 million in the previous quarter [4] - Loan principal payments and payoffs were $46.7 million, a 35% increase from $34.5 million in the prior quarter [4] - Non-performing assets were $999,000, or 8 basis points of total assets, a decrease from $1.9 million at the end of the previous quarter [5] - The net interest margin increased by 3 basis points to 3.03% compared to 3% in the previous quarter [8] - Operating expenses rose to $7.9 million from $7.6 million in the previous quarter [13] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4.1 million, with declines in multifamily, commercial business, and commercial real estate loans, partially offset by increases in single-family and construction loans [5] - The weighted average rate of loans originated in Q2 2026 was 6.15%, compared to 5.22% for loans held for investment as of December 31, 2025 [10] Market Data and Key Metrics Changes - The company’s loan pipelines are moderately higher than the previous quarter, suggesting origination volume in Q3 2026 will be within the range of recent quarters [4] - Approximately $112.2 million of loans are set to reprice in Q3 2026 at an expected rate 14 basis points lower than current rates [10] Company Strategy and Development Direction - The company is focusing on disciplined balance sheet growth by expanding its loan portfolio, which is deemed suitable for the stable economic environment and ongoing normalization of the yield curve [14] - The company aims to maintain its cash dividend and recognizes stock buybacks as a responsible capital management tool, having repurchased approximately $96,000 of common stock in Q2 2026 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit quality, noting no loans in early stages of delinquency and a strong performance of commercial real estate loans [6] - The company believes that any government initiatives to make housing more affordable would be beneficial, especially in California where demand exceeds available inventory [24][25] Other Important Information - The allowance for credit losses to gross loans held for investment was 55 basis points, a slight decrease from 56 basis points in the previous quarter [8] - The company distributed $906,000 in cash dividends to shareholders and repurchased approximately $1.5 million worth of common stock in Q2 2026, representing a 170% distribution of the quarter's net income [15][16] Q&A Session Summary Question: What is the probability that the loan portfolio remains flat over the next four quarters? - Management indicated that it is difficult to predict loan payoffs, but they have been focusing on increasing origination volume each quarter, suggesting a potential for higher origination in Q3 2026 [20] Question: Do loans repricing in the June quarter pose a potential headwind to loan growth? - Management does not foresee significant headwinds from repricing, as the rates are not substantially higher than new loan production [21] Question: Would government plans to make housing more affordable be a net positive for the business? - Management believes that any initiatives to expand available housing would be beneficial, particularly in California where demand significantly outstrips supply [24][25]

Financial Data and Key Metrics Changes - In Q2 2026, the company originated $42.1 million in loans held for investment, a 42% increase from $29.6 million in the previous quarter [4] - Loan principal payments and payoffs were $46.7 million, a 35% increase from $34.5 million in the prior quarter [4] - Non-performing assets decreased to $999,000, or 8 basis points of total assets, down from $1.9 million at the end of the previous quarter [5] - The net interest margin increased by 3 basis points to 3.03% compared to 3% in the previous quarter [8] - Operating expenses rose to $7.9 million from $7.6 million in the previous quarter [13] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4.1 million, with declines in multifamily, commercial business, and commercial real estate loans, partially offset by increases in single-family and construction loans [5] - The weighted average rate of loans originated in Q2 2026 was 6.15%, compared to 5.22% for loans held for investment as of December 31, 2025 [10] Market Data and Key Metrics Changes - The company’s loan pipelines are moderately higher than last quarter, suggesting origination volume in Q3 2026 will be within the range of recent quarters [4] - The average cost of deposits decreased to 1.32%, down 2 basis points, while the cost of borrowing decreased by 20 basis points to 4.39% [9] Company Strategy and Development Direction - The company focuses on disciplined balance sheet growth by expanding its loan portfolio, which is deemed suitable for the stable economic environment and ongoing normalization of the yield curve [14] - The company aims to maintain its cash dividend and recognizes stock buybacks as a responsible capital management tool, having repurchased approximately $96,000 of common stock in the last quarter [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit quality, noting no loans in early stages of delinquency and a strong performance of commercial real estate loans [6] - The company anticipates opportunities for net interest margin expansion in the upcoming quarters due to expected repricing of maturing wholesale funding at lower rates [12] Other Important Information - The allowance for credit losses to gross loans held for investment was 55 basis points, a slight decrease from 56 basis points in the previous quarter [8] - The company distributed $906,000 in cash dividends and repurchased approximately $1.5 million worth of common stock, representing a 170% distribution of the net income for the quarter [15] Q&A Session Summary Question: What is the probability that the loan portfolio will be flat in the next four quarters? - Management indicated that it is difficult to predict loan payoffs, but they have been focusing on increasing origination volume each quarter, suggesting a potential for higher origination in Q3 2026 [19] Question: Do loans repricing in the June quarter pose a potential headwind to loan growth? - Management does not foresee significant headwinds from repricing, as the rates are not substantially higher than new loan production [20] Question: Would government plans to make housing more affordable be a net positive for the business? - Management believes that increasing housing availability would be beneficial, especially in California where demand exceeds supply [23][24]

Financial Data and Key Metrics Changes - In Q2 2026, the company originated $42.1 million in loans held for investment, a 42% increase from $29.6 million in the prior quarter [5] - Loan principal payments and payoffs increased to $46.7 million, up 35% from $34.5 million in the previous quarter [5] - The net interest margin increased by 3 basis points to 3.03% compared to 3% in the previous quarter [9] - The average cost of deposits decreased to 1.32%, down 2 basis points, while the cost of borrowing decreased by 20 basis points to 4.39% [10] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4.1 million, with declines in multifamily, commercial business, and commercial real estate loans, partially offset by increases in single-family and construction loans [6] - Non-performing assets were $999,000, or 8 basis points of total assets, a decrease from $1.9 million at the end of the previous quarter [6][7] - The allowance for credit losses to gross loans held for investment was 55 basis points, slightly down from 56 basis points [8] Market Data and Key Metrics Changes - The loan pipelines are moderately higher than last quarter, suggesting origination volume in Q3 2026 will be within the range of recent quarters, between $28 million and $42 million [5] - The weighted average rate of loans originated in Q2 2026 was 6.15%, compared to 5.22% for loans held for investment as of December 31, 2025 [11] Company Strategy and Development Direction - The company focuses on disciplined balance sheet growth by expanding its loan portfolio, which is deemed suitable for the stable economic environment and ongoing normalization of the yield curve [15] - The company aims to maintain its cash dividend and recognizes stock buybacks as a responsible capital management tool, having repurchased approximately $96,000 of common stock in Q2 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit quality, noting no loans in early stages of delinquency and a strong performance of commercial real estate loans [7] - The company anticipates opportunities for net interest margin expansion in Q3 2026 due to expected repricing of maturing wholesale funding to lower costs [13] Other Important Information - Operating expenses increased to $7.9 million in Q2 2026 from $7.6 million in the previous quarter, including a $214,000 pre-litigation settlement expense [14] - The company distributed $906,000 in cash dividends and repurchased approximately $1.5 million worth of common stock, representing a 170% distribution of the quarter's net income [16] Q&A Session Summary Question: What is the probability that the loan portfolio is flat over the next four quarters? - Management indicated that it is difficult to predict loan payoffs, but they have been focusing on increasing origination volume each quarter, suggesting a potential for higher origination in Q3 2026 [20] Question: Do loans repricing in the June quarter pose a potential headwind to loan growth? - Management noted that while repricing could have implications, it is not expected to significantly hinder loan growth as the repricing is not substantially higher than current market conditions [21] Question: Would government plans to make housing more affordable be a net positive for the business? - Management believes that any initiatives to expand available housing would be beneficial, especially in California where demand exceeds supply [23][25]

Financial Data and Key Metrics Changes - For the year ended December 31, 2025, net income was $543 million, an increase of $63 million or 13.2% compared to $480 million for the same period in 2024 [6] - Net income per diluted common share was $5.72 for the year ending December 31, 2025, compared to $5.05 for the same period in 2024, an increase of 13.3% [6] - The net income for the three months ending December 31, 2025, was $139.9 million, compared to $130 million for the same period in 2024, an increase of $9.8 million or 7.6% [7] - The annualized return on average assets was 1.49% and on average tangible common equity was 13.61% for the three months ending December 31, 2025 [7] - The efficiency ratio was 43.6% for the three months ending December 31, 2025 [7] Business Line Data and Key Metrics Changes - Net interest income before provision for credit losses for the three months ended December 31, 2025, was $275 million, an increase of $7.2 million compared to $267.8 million for the same period in 2024 [15] - The net interest margin on a tax-equivalent basis was 3.30% for the three months ended December 31, 2025, an increase of 25 basis points compared to 3.05% for the same period in 2024 [16] - Non-interest income was $42.8 million for the three months ended December 31, 2025, compared to $39.8 million for the same period in 2024 [17] - Non-interest expense was $138.7 million for the three months ended December 31, 2025, compared to $141.5 million for the same period in 2024 [18] Market Data and Key Metrics Changes - Deposits were $28.4 billion at December 31, 2025, an increase of $700 million from $27.7 billion at September 30, 2025 [9] - Nonperforming assets totaled $150 million, or 46 basis points of quarterly average interest-earning assets at December 31, 2025, compared to $119 million, or 36 basis points at September 30, 2025 [10] Company Strategy and Development Direction - The company completed a merger with American Bank on January 1, 2026, and expects to finalize the merger with Southwest Bancshares on February 1, 2026 [11][12] - The acquisition of Stellar Bancorp is seen as a significant milestone, enhancing the company's Texas footprint and deposit rank [14] - The company aims to deliver shareholder value through low-cost core deposits, operational efficiency, sound credit quality, and growth via opportunistic M&A [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum from the second half of 2025 into 2026, with expectations for improved net interest margins and earnings [32][34] - The company anticipates a minimum net interest margin of 3.5% for 2026, with potential upside from the acquisition of Stellar Bank [79][80] - Management highlighted a strong capital position and plans for capital deployment, including potential stock buybacks and dividend increases [48][49] Other Important Information - The company repurchased approximately $157 million, or 2.34 million shares of its common stock at an average weighted price of $67.04 under its 2025 stock repurchase program [8] - The allowance for credit losses on loans was $333 million, with a strong coverage ratio of 2.21 times non-performing assets [10] Q&A Session Summary Question: Can you discuss the Stellar acquisition and the difference in earnings estimates? - Management noted that the earnings estimates are influenced by Stellar's recent performance and expressed confidence in the projected earnings from the acquisition [28][32] Question: Why is this acquisition different from past ones? - Management emphasized the familiarity and alignment between the two banks, which reduces risk and enhances growth potential [35][37] Question: Can you elaborate on the capital deployment strategy post-acquisition? - Management indicated a focus on integration of the three banks and potential for opportunistic buybacks, with a strong capital position allowing for flexibility [48][50] Question: How will you manage multiple bank integrations simultaneously? - Management assured that designated teams are in place for integration, allowing core operations to continue without distraction [53][56] Question: What is the outlook for nonperforming assets and credit quality? - Management acknowledged an increase in nonperforming assets but expressed confidence in the overall credit quality of the portfolio [108][109]

Financial Data and Key Metrics Changes - Full year pre-tax, pre-provision earnings growth of 105% year-over-year, with earnings per share increasing 45% to $3.40 when excluding merger-related charges [3][4] - Fourth quarter net income, excluding merger and restructuring expenses, was $81 million, with diluted earnings per share of $0.84, an 18% increase year-over-year [4][10] - Total assets increased 48% year-over-year to $27.7 billion, with total portfolio loans rising 52% to $19.2 billion [11] Business Line Data and Key Metrics Changes - Loan growth was fully funded by deposit growth, with total loans increasing 6% annualized from the third quarter and 5% year-over-year [8][12] - Non-interest income for the fourth quarter was $43.3 million, a 19% increase year-over-year, driven by the acquisition of Premier [14] - Treasury management revenue reached a record of $6 million, with total wealth management assets under management at $10.4 billion [6][14] Market Data and Key Metrics Changes - Deposits increased 53% year-over-year to $21.7 billion, including $6.9 billion from acquired PFC deposits and $662 million from organic growth [12] - Commercial real estate payoffs totaled $415 million in the fourth quarter and over $900 million for the year, exceeding previous expectations [7][11] Company Strategy and Development Direction - The company successfully integrated Premier Financial, transforming into a $28 billion asset regional financial services partner, ranking among the top 50 publicly traded U.S. financial institutions [5][6] - Continued investment in organic growth through new loan production offices and a new healthcare vertical, optimizing financial center networks and digital banking capabilities [6][9] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit year-over-year loan growth during 2026, despite expected elevated commercial real estate payoffs [8][30] - The company expects net interest margin to remain consistent with the fourth quarter margin of 3.61% in the first quarter, with potential increases in subsequent quarters [19][44] Other Important Information - The efficiency ratio for the fourth quarter was just below 52%, reflecting a focus on operational efficiencies and cost control [10][16] - The CET1 ratio improved to 10.34%, with expectations to build 15-20 basis points per quarter moving forward [18][61] Q&A Session Summary Question: Loan growth expectations and payoffs - Management expects a step down in payoffs from the elevated fourth quarter number, estimating $600 million-$800 million in 2026, weighted towards the first half [28][30] Question: Details on the healthcare vertical - The healthcare vertical generated around $500 million in new loans last year and is expected to be a significant growth driver [32][33] Question: Expense guidance and branch evaluations - Management confirmed that branch closures are not reflected in current numbers, and evaluations of the branch network will continue throughout the year [42][43] Question: Margin outlook and factors influencing it - The margin is expected to remain flat in the first quarter, with a step up in the second quarter due to deposit growth and repricing of CDs [44][49] Question: Capital deployment priorities - The company prioritizes dividends, loan growth, and buybacks, with M&A being a distant fourth [59][60]

Financial Data and Key Metrics Changes - Full year pre-tax, pre-provision earnings growth of 105% year-over-year, with earnings per share increasing 45% to $3.40 when excluding merger-related charges [3][4] - Fourth quarter net income available to common shareholders of $81 million, with diluted earnings per share of $0.84, an 18% increase year-over-year [4][11] - Return on tangible common equity for the fourth quarter was 16%, with non-performing assets to total assets at 0.33% [6][15] Business Line Data and Key Metrics Changes - Total portfolio loans increased 52% year-over-year to $19.2 billion, driven by both acquired loans and organic growth [13] - Treasury management revenue reached a record of $6 million, with total wealth management assets under management at $10.4 billion [7][10] - Non-interest income for the fourth quarter was $43.3 million, a 19% increase year-over-year, primarily due to the acquisition of Premier [16] Market Data and Key Metrics Changes - Total deposits increased 53% year-over-year to $21.7 billion, with organic growth of $662 million fully funding loan growth [14] - Commercial real estate project payoffs totaled $415 million in the fourth quarter and over $900 million for the year, exceeding previous expectations [8][13] - The commercial loan pipeline stood at over $1.2 billion, with more than 40% tied to new markets and loan production offices [9] Company Strategy and Development Direction - The company successfully integrated Premier Financial, transforming into a $28 billion asset regional financial services partner, ranking among the top 50 publicly traded U.S. financial institutions [6] - Continued investment in organic growth through new loan production offices and a new healthcare vertical, optimizing financial center networks and digital banking capabilities [7][10] - Focus on relationship banking as a differentiator, with plans to expand into new markets such as Richmond and Atlanta [10][37] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit year-over-year loan growth during 2026, despite expected elevated commercial real estate payoffs [9][34] - The company expects net interest margin to remain consistent with the fourth quarter margin of 3.61% in the first quarter, with gradual increases anticipated throughout the year [21][49] - Management remains committed to disciplined expense management to drive positive operating leverage and shareholder value [22][60] Other Important Information - The efficiency ratio for the fourth quarter was just below 52%, reflecting updated calculation methodologies [18] - The company redeemed $150 million of Series A Preferred Stock and $50 million of subdebt acquired for Premier during the fourth quarter [19] - Anticipated effective tax rate for the full year is between 20.5% and 21.5%, slightly higher than 2025 [25] Q&A Session Summary Question: Loan growth expectations and payoffs - Management expects a step down in payoffs from the elevated fourth quarter number, estimating $600 million to $800 million in 2026, weighted towards the first half [31][32] Question: Details on the healthcare vertical - The healthcare vertical generated around $500 million in new loans last year and is expected to be a significant growth engine moving forward [35][36] Question: Expense guidance and branch evaluations - Management confirmed that branch closures are not reflected in current expense guidance, and evaluations of the branch network will continue [44][45] Question: Margin outlook and factors influencing it - Management discussed the extraordinary deposit growth in the fourth quarter and its impact on margin, with expectations for continued improvement in the second quarter [46][49] Question: Fee initiatives and treasury management growth - Treasury management fees have seen significant growth, with expectations for continued double-digit growth this year [98][100]