Financial Data and Key Metrics Changes - The company reported a 10% growth in tangible book value per share and a CET1 capital ratio of 14.89% for the year [4] - The net interest income margin for the fourth quarter was 3.97%, with a full-year net interest margin of 3.94% [6][10] - Fourth quarter net income was $22.7 million, or $0.60 per diluted share, while full-year adjusted net income totaled $117.6 million, or $3.06 per diluted share [7][8] Business Line Data and Key Metrics Changes - The company originated $591 million in total loans during the fourth quarter, with $429 million coming from commercial loan originations, marking a record for the company [22] - The loan portfolio at the end of the year was approximately $9.4 billion, with projected loan growth of about 10% for 2026 [9] - Non-interest income for the fourth quarter was $14.4 million, while full-year non-interest income is projected to be between $75 million and $80 million for 2026 [12] Market Data and Key Metrics Changes - The non-performing asset ratio improved by 11 basis points to 36 basis points of total loans by year-end [10] - The criticized loan ratio improved by 73 basis points during the year [10] - The company expects to maintain a loan-to-deposit ratio of approximately 90% [9] Company Strategy and Development Direction - The company aims to focus on profitable growth following the acquisition of Vista Bank, which is expected to enhance its service offerings and market presence [5][18] - The strategic sale of securities and addressing problem loans were part of the company's efforts to enter 2026 with a clean slate [5] - The company is committed to expanding its services, including wealth management and enhanced treasury management offerings [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with strong growth potential, driven by the Vista acquisition and a focus on client activation [25][26] - The company anticipates a strong economic environment in Texas and various resort markets, which are expected to provide growth opportunities [19] - Management expects to deliver earnings exceeding $1 per share in the fourth quarter of 2026 and full-year earnings exceeding $4 per share in 2027 [15] Other Important Information - The company completed the initial phase of its 2UniFi project, which aims to revolutionize small business banking [27][29] - The effective tax rate for 2025 was 18%, with an expected increase to approximately 20% for 2026 due to the integration of Vista [14] - The company plans to hold 15% of total assets in cash and investments [9] Q&A Session Summary Question: Confirmation of loan growth and margin expectations - Management confirmed a projected 10% loan growth in 2026, a margin near 4%, and earnings over $1 in the fourth quarter of 2026 [35] Question: 2UniFi revenue and expense guidance - Management projected $2 million to $4 million in 2UniFi revenue for 2026, with expenses held flat at $22 million [36] Question: Credit quality and charge-offs - Management addressed that the charge-offs were due to specific problem loans and expressed confidence in improving credit metrics in 2026 [41] Question: Growth drivers for 2026 - Management indicated that growth would be driven by strong production in Texas and resort markets, with a focus on commercial loans [44][46] Question: Margin performance and deposit costs - Management clarified that the December margin was 3.97%, with a lag in deposit pricing compared to asset repricing [50][62] Question: Partnership developments for 2UniFi - Management acknowledged delays in finalizing a partnership for 2UniFi but emphasized a strong focus on client activation and scaling the business [63] Question: Loan growth confidence and payoffs - Management expressed confidence in achieving 10% loan growth in 2026, with reduced scheduled maturities compared to the previous year [79]

Core Viewpoint - Orrstown Financial Services reported record annual net income for 2025, highlighting strong profitability and growth in fee income, while managing margin pressures from recent interest rate cuts [4][5][7]. Financial Performance - The company achieved a net income of $80.9 million for 2025, equating to $4.18 per diluted share, with a return on average equity of 14.76% and return on average assets of 1.49% [4][7]. - In the fourth quarter, net income was $21.5 million, or $1.11 per diluted share, with non-interest income representing 22% of operating revenue [3][4]. Interest Margin and Projections - The fourth-quarter net interest margin was reported at 4.00%, down from 4.11% in the previous quarter, attributed to lower purchase accounting accretion and reduced interest income from variable-rate loans [2][4]. - Management projects a net interest margin for 2026 in the range of 3.90% to 4.00%, with expectations for funding costs to begin declining in the first quarter of 2026 [1][6][8]. Fee Income and Growth Strategies - Fee income totaled $52.3 million, representing 21% of operating income, with a focus on expanding wealth management services [6][9]. - The company reported an increase in fourth-quarter fee income to $14.4 million from $13.4 million in the third quarter, driven by wealth management income and swap fees [9][11]. Loan and Deposit Trends - Orrstown experienced 4% loan growth in the fourth quarter, with management optimistic about achieving 5% or better growth in 2026 [13]. - Deposits were relatively flat, with a slight decline of $5 million, and the cost of deposits was reported at 1.98% for the quarter [14]. Credit Quality and Capital Position - Credit quality remained strong, with a provision expense of $0.1 million and net charge-offs of $0.5 million, while the allowance for credit losses ended at 1.19% of loans [15]. - The company announced a quarterly dividend increase to $0.30 per share, marking a 50% increase since the merger date [16]. Capital Management and Investments - The company repositioned its securities portfolio, purchasing $125 million of agency mortgage-backed securities, aimed at addressing asset sensitivity [17]. - Capital ratios increased quarter over quarter, and the bank remains well-capitalized, with ongoing monitoring of share repurchase opportunities [18].

Financial Data and Key Metrics Changes - The company finished the year strong with robust loan and core deposit growth, net interest margin expansion, and higher fee income [4] - Net interest margin expanded by 12 basis points to 2.75%, with net interest income increasing by 5% during the quarter [6][11] - Core deposits grew by 9% in the fourth quarter and 8% for the full year, while loans grew at an 11% pace [7] - Tangible book value per share grew 16.5% annualized and was up 15.3% year-over-year [7] Business Line Data and Key Metrics Changes - The construction sector was the largest driver of loan growth, particularly in affordable housing, which saw a 27% annualized increase in the fourth quarter [22] - Non-interest income rebounded in the fourth quarter, driven by increases in swap fees and letter of credit fees [16] - The company reported a 9.5% annualized increase in expenses during the fourth quarter, aligning more closely with expected asset growth [17] Market Data and Key Metrics Changes - The company is now the second-largest locally led bank in the Twin Cities, positioning itself well amid M&A disruptions in the market [9] - Core deposit growth was strong, with an annualized growth of 8.8% in the fourth quarter [18] - Loan balances increased by 8.9% annualized in the fourth quarter and 11.4% for the year, indicating robust demand across the market [19] Company Strategy and Development Direction - The company aims to optimize profitable growth while aligning loan growth with core deposit growth and expanding net interest margin [30] - There is a focus on gaining market share in the Twin Cities and expanding expertise in targeted verticals such as nonprofits and SBA [31] - The company plans to enhance its affordable housing vertical and leverage technology investments to support growth and efficiency [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to continue driving net interest income growth and achieving a 3% net interest margin by the end of 2026 [12][29] - The company is monitoring the impact of recent events in the Twin Cities on team members and clients, emphasizing support for the community [9] - Management remains confident in the strength of the asset quality profile despite a modest uptick in non-performing assets and net charge-offs [24] Other Important Information - The company closed one of the two branches added through the First Minnetonka City Bank acquisition due to proximity to other branches, with minimal deposit attrition post-merger [8] - The CET1 ratio increased slightly from 9.08% to 9.17%, indicating a comfortable capital position [27] Q&A Session Summary Question: Can you unpack some of the deposit growth in the quarter? - Management noted that Q4 tends to be a seasonally high watermark for deposit growth, with expectations for modest growth in Q1 and Q2 [36][39] Question: What is the cadence of loan repricing? - Management indicated that loan repricing is well spread out, contributing to the target of achieving a 3% margin [40][41] Question: What are the expectations for expenses in 2026? - Management expects expenses to grow in line with asset growth, targeting high single-digit growth [42] Question: What is the company's appetite for potential acquisitions? - Management continues to engage with local bank owners for potential acquisitions but emphasizes organic growth as the primary focus [55] Question: How does the company view the affordable housing vertical's growth potential? - Management expressed confidence in the affordable housing space, indicating plans for continued growth without specific caps on size [59][60]

Financial Data and Key Metrics Changes - Orrstown achieved a record annual net income of $80.9 million, or $4.18 per diluted share, with a return on average equity of 14.76% and return on average assets of 1.49% [3] - For the fourth quarter, net income was $21.5 million, or $1.11 per diluted share, with a net interest margin of 4.00%, down from 4.11% in the previous quarter [10][11] - Fee income for the fourth quarter was $14.4 million, contributing to 22% of total revenues, marking the third consecutive quarter above 20% [5][12] Business Line Data and Key Metrics Changes - Loan growth was steady at 4% during the fourth quarter, with a balanced mix across commercial and real estate lending [7][16] - Non-interest income increased to $14.4 million in the fourth quarter from $13.4 million in the third quarter, driven by growth in wealth management and treasury management services [12][14] - The bank recorded minimal provision expense of $0.1 million and net charge-offs of $0.5 million, with classified loans decreasing by $5.7 million from the prior quarter [8][15] Market Data and Key Metrics Changes - Deposits were relatively flat, declining slightly by $5 million, with a loan-to-deposit ratio of 89% [17] - The cost of deposits was 1.98% for the fourth quarter, with expectations for reductions in funding costs starting in the first quarter of 2026 [11][17] Company Strategy and Development Direction - The company is focused on enhancing non-interest income and investing in talent to drive future growth, including the recent hiring of a Chief Wealth Officer [6][20] - There is a strong emphasis on building a middle-market commercial lending platform and expanding wealth management services in growth markets [40][43] - The company remains committed to organic growth rather than pursuing mergers and acquisitions, although capital build presents optionality for future opportunities [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong profitability and expects to continue building shareholder value through strong earnings and an attractive dividend [9][20] - The company anticipates a net interest margin in the range of 3.90%-4% for 2026, with a focus on managing funding costs and maintaining loan growth [11][32] - Management remains optimistic about the future, citing a robust loan pipeline and the ability to responsibly grow the loan portfolio [8][20] Other Important Information - The board approved a quarterly dividend increase from $0.27 to $0.30 per share, marking the fourth increase in 18 months [9] - The investment portfolio yield decreased to 4.58% due to declining rates, but the portfolio is positioned well for earnings growth [18] Q&A Session Summary Question: Increase in guidance for non-interest income and expenses - Management clarified that the increase reflects ongoing strategy to invest in talent to drive future earnings, not a change in strategy [24][25] Question: NIM trajectory for the year - Management indicated that core NIM is expected to increase in Q1, with a decline in purchase accounting accretion impacting future margins [28][31] Question: Wealth management AUM and customer retention - Total AUM was over $3 billion, with no significant decline in customer portfolios from Codorus Valley [37][38] Question: Focus areas for hiring - The company is focusing on building out the middle-market commercial lending platform and enhancing wealth management services [40] Question: Share buybacks and capital allocation - Management is monitoring share buyback opportunities but has not found the stock price favorable for repurchases [48] Question: Yields on recent securities purchases - The average yield on recent purchases was 4.92%, with expectations for continued benefits from the investment portfolio [50]

Financial Data and Key Metrics Changes - Orrstown achieved a record annual net income of $80.9 million, or $4.18 per diluted share, with a return on average equity of 14.76% and return on average assets of 1.49% [3] - For Q4 2025, net income was $21.5 million, or $1.11 per diluted share, with a net interest margin of 4.00%, down from 4.11% in Q3 [9][10] - Fee income for the quarter was $14.4 million, contributing to 22% of total revenues, marking the third consecutive quarter above 20% [5][11] Business Line Data and Key Metrics Changes - Loan growth was steady at 4% during Q4, with a balanced mix across commercial and real estate lending [6][15] - Non-interest income increased to $14.4 million in Q4 from $13.4 million in Q3, driven by growth in wealth management and treasury management services [11][12] - The bank recorded minimal provision expense of $0.1 million and net charge-offs of $0.5 million, with classified loans decreasing by $5.7 million from the prior quarter [7][14] Market Data and Key Metrics Changes - Deposits were relatively flat, declining slightly by $5 million, with a loan-to-deposit ratio of 89% [16] - The cost of deposits was 1.98% for Q4, with expectations for reductions in funding costs starting in Q1 2026 [16][10] Company Strategy and Development Direction - The company continues to focus on enhancing fee income and investing in talent, with recent hiring of a Chief Wealth Officer to drive growth in wealth management [5][6] - Orrstown is strategically investing in the middle-market commercial lending platform and expanding its presence in growth markets [38] - The company remains committed to organic growth, with M&A being a lower priority unless suitable opportunities arise [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong profitability and anticipates continued growth in loan production and fee income [19] - The company expects net interest margin to stabilize around 4% despite anticipated rate cuts in 2026 [10][31] - Management remains optimistic about the future, citing a robust loan pipeline and strong credit quality [7][19] Other Important Information - The board approved a quarterly dividend increase from $0.27 to $0.30 per share, marking a 50% increase since the merger date [8] - The investment portfolio yield decreased to 4.58% from 4.67% due to declining rates, but the portfolio is positioned well for earnings growth [17] Q&A Session Summary Question: What drove the increase in guidance for non-interest income and expenses? - Management clarified that the increase reflects ongoing strategy to invest in talent to drive future earnings, not a change in strategy [24][25] Question: Can you clarify the NIM trajectory for the year? - Management indicated that core NIM is expected to increase in Q1, with a decline in purchase accounting accretion of about 2-3 basis points each quarter [28][30] Question: What is the current AUM or AUA and success in onboarding Codorus Valley customers? - Total AUM was over $3 billion, with no significant decline in the portfolio from Codorus Valley customers [36][37] Question: What areas is the company focusing on for hiring? - The company is focusing on building out the middle-market commercial lending platform and enhancing wealth management in growth markets [38] Question: What is the current thinking around share buybacks? - Management is monitoring share buyback opportunities but has not found the current stock price favorable for repurchases [46] Question: What yields were achieved on recent securities purchases? - The average yield on recent purchases was 4.92%, with expectations for continued benefits from the investment portfolio [47]

Core Insights - The S&P/ASX 200 index closed down 7.70 points at 8,933.90, influenced by inflation data raising interest rate hike expectations [1][8] - The trimmed mean consumer price index rose 0.9% in Q4, exceeding forecasts of 0.8%, indicating persistent underlying price pressures [1][8] - Financial stocks fell 0.3%, with Westpac and ANZ declining by 0.2% and 0.5% respectively, amid expectations of a potential interest rate hike [1][9] Stock Performance - Deep Yellow Limited (DYL) led gains, closing at $2.590, up 10.683% [6][9] - Silex Systems Limited (SLX) rose 7.412% to finish at $7.680 [6][9] - Life360 Inc. (360) was the biggest loser, down 7.613% to $28.520 [7][9] - Catapult Sports Ltd (CAT) fell 6.836% to close at $3.680 [7][9] Sector Performance - The energy sector was the best performer, gaining 2.33% and 6.13% over the past five days [8][9] - 9 of 11 sectors ended lower, contributing to the decline of the S&P/ASX 200 index [8][9] Market Expectations - Swaps indicate over a 70% chance of a cash rate hike next week, up from 60% prior to the inflation data [1][8] - Financial stocks may see early boosts from net interest margin expectations if the rate hike is perceived as measured, though gains could be limited due to credit demand and growth risks [4][9]

Core Viewpoint - Ponce Financial Group, Inc. reported significant growth in profitability for the fourth quarter and full year of 2025, driven by increased net interest income and controlled operating expenses, while maintaining strong capital ratios and commitment to community investment [4][6]. Financial Performance Highlights - For Q4 2025, net income available to common stockholders was $9.9 million, or $0.42 per diluted share, compared to $6.2 million, or $0.27 per diluted share in Q3 2025, and $2.7 million, or $0.12 per diluted share in Q4 2024 [6][9]. - Total net income for Q4 2025 was $10.1 million, an increase from $6.5 million in Q3 2025 and $2.9 million in Q4 2024 [9]. - For the full year 2025, net income available to common stockholders was $27.6 million, or $1.20 per diluted share, compared to $10.3 million, or $0.46 per diluted share in 2024 [6][12]. Net Interest Income and Margin - Net interest income for Q4 2025 was $27.9 million, an increase of $2.7 million, or 10.64%, from Q3 2025, and an increase of $7.2 million, or 34.75%, from Q4 2024 [6][13]. - The net interest margin for Q4 2025 was 3.57%, up from 3.30% in Q3 2025 and 2.80% in Q4 2024 [6][16]. Non-Interest Income - Non-interest income for Q4 2025 was $3.5 million, an increase of $2.0 million, or 133.18%, from Q3 2025, and an increase of $1.4 million, or 65.90%, from Q4 2024 [17][20]. - For the full year 2025, non-interest income was $9.4 million, an increase of $2.2 million, or 30.49%, compared to $7.2 million in 2024 [20]. Non-Interest Expense - Non-interest expense for Q4 2025 was $16.6 million, remaining flat compared to Q3 2025 and decreased by $0.8 million from Q4 2024 [21][23]. - For the full year 2025, non-interest expense was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million in 2024 [23]. Asset Quality and Credit Losses - Total non-performing assets were $30.2 million as of December 31, 2025, down from $32.4 million at September 30, 2025, and $32.1 million at December 31, 2024 [25]. - A credit loss provision of $1.1 million was recorded for Q4 2025, compared to $1.4 million in Q3 2025 and $0.9 million in Q4 2024 [26][27]. Balance Sheet Summary - Total assets increased by $184.0 million, or 6.05%, to $3.22 billion as of December 31, 2025, primarily due to a $312.7 million increase in net loans receivable [28]. - Total liabilities increased by $148.0 million, or 5.84%, to $2.68 billion as of December 31, 2025, largely due to a $151.4 million increase in deposits [29]. - Total stockholders' equity increased by $36.0 million, or 7.13%, to $541.5 million as of December 31, 2025, driven by $28.7 million in net income [30].

Core Insights - Stock Yards Bancorp, Inc. reported record earnings of $140.2 million for the year ended December 31, 2025, representing a 22% increase from the previous year, with earnings per diluted share at $4.75 [1][11] - The company achieved a tangible book value per share of $29.50, a 19% increase year over year [1][21] - The fourth quarter of 2025 saw net income of $36.6 million, or $1.24 per diluted share, compared to $31.7 million, or $1.07 per diluted share, in the same quarter of 2024 [1][2] Financial Performance - Net interest income for the fourth quarter of 2025 increased by $9.3 million, or 13%, to $79.3 million compared to the fourth quarter of 2024 [8][11] - Non-interest income rose by $1.6 million, or 7%, to $25.1 million in the fourth quarter of 2025 compared to the same period in 2024 [10][25] - Total loans increased by $521 million, or 8%, year over year, with a total of $7.04 billion in loans as of December 31, 2025 [6][16] Growth and Expansion - The company grew its deposit base by $625 million, or 9%, over the past year, primarily due to a successful time deposit campaign [4][18] - Stock Yards Bancorp opened new branches in Bardstown, Kentucky, and Liberty Township, Ohio, expanding its geographic footprint [5][30] - The Wealth Management & Trust division achieved record results, with revenue and assets under management reaching all-time highs [3][10] Credit Quality and Risk Management - Non-performing loans decreased to $13.0 million, or 0.19% of total loans, down from $22.2 million, or 0.34%, a year earlier [19][36] - The allowance for credit losses to loans ratio was 1.30% as of December 31, 2025, compared to 1.33% the previous year [19][36] - The provision for credit losses on loans for the fourth quarter of 2025 was $850,000, significantly lower than the $2.2 million recorded in the same quarter of 2024 [9][24] Capital and Efficiency - The company maintained a "well-capitalized" status with total equity to assets at 11.28% and a tangible common equity ratio of 9.32% as of December 31, 2025 [21][30] - The efficiency ratio improved to 52.46% in the fourth quarter of 2025, down from 55.21% in the same quarter of 2024 [23][30] - The annualized return on average assets was 1.54%, while the return on average equity was 13.78% for the fourth quarter of 2025 [21][30]

Core Insights - Hanmi Financial Corporation reported a net income of $21.2 million for Q4 2025, a decrease from $22.1 million in Q3 2025, with earnings per diluted share at $0.70 compared to $0.73 in the previous quarter [2][7] - For the full year 2025, net income increased to $76.1 million, or $2.51 per diluted share, up from $62.2 million, or $2.05 per diluted share, in 2024, reflecting a robust growth of 22% [3][4] Financial Performance - The return on average assets for Q4 2025 was 1.07%, down from 1.12% in Q3 2025, while the return on average equity decreased to 10.14% from 10.69% [2][7] - Net interest income for Q4 2025 rose by 2.9% to $62.9 million, driven by lower interest expenses on deposits [10][12] - The net interest margin for Q4 2025 was 3.28%, an increase of six basis points from the previous quarter [12][20] Loan and Deposit Growth - Loans receivable increased to $6.56 billion, a 0.5% rise from the previous quarter, with loan production for Q4 2025 at $374.8 million [7][32] - Total deposits were $6.68 billion, down 1.3% from Q3 2025, with noninterest-bearing demand deposits representing 30.2% of total deposits [7][29] Asset Quality - Nonperforming loans represented 0.28% of total loans, showing an improvement from the previous quarter [7][22] - Credit loss expense for Q4 2025 was $1.9 million, down from $2.1 million in Q3 2025, indicating strong credit quality management [22][23] Noninterest Income - Noninterest income for Q4 2025 was $8.3 million, a decrease of 16.0% from Q3 2025, primarily due to lower income from bank-owned life insurance [24][25] - For the full year 2025, noninterest income increased to $34.0 million, up 7.6% from 2024, driven by higher gains on the sale of SBA loans [25][26] Expense Management - Noninterest expense for Q4 2025 increased by 3.5% to $39.1 million, attributed to higher salaries and professional fees [26][27] - The efficiency ratio for Q4 2025 was 54.95%, compared to 52.65% in Q3 2025, reflecting increased operational costs [26][27]

Core Insights - Ohio Valley Banc Corp. reported a consolidated net income of $3,955,000 for Q4 2025, marking a 57.3% increase from the same period last year, with earnings per share rising to $0.84 from $0.53 [1][11] - For the full year 2025, net income reached $15,601,000, a 41.8% increase year-over-year, with earnings per share increasing to $3.31 from $2.32 [1][11] - The company achieved record earnings in its 153rd year, reflecting strong employee dedication and community commitment [2] Financial Performance - Net interest income for Q4 2025 increased by $2,403,000, and for the full year, it rose by $8,941,000 compared to the previous year [2] - The net interest margin improved to 4.18% for Q4 2025, up from 3.70% in Q4 2024, and 4.07% for the full year, compared to 3.71% the previous year [3][11] - Average earning assets increased by $103 million year-over-year, driven by a $75 million growth in average loans and a $53 million growth in average securities [2] Loan and Deposit Growth - Total loans increased by $134 million, or 12.6%, primarily in commercial real estate, commercial and industrial, and residential real estate segments [8] - The company emphasized higher profitability segments, leading to a decrease in consumer loans [2][8] - Total deposits rose by $54 million, with significant contributions from time deposits [8] Credit Quality - The provision for credit loss expense for Q4 2025 was $378,000, down from the previous year, while the full year provision increased to $3,054,000 [4][5] - The ratio of nonperforming loans to total loans was 1.40% at year-end 2025, up from 0.46% a year earlier, primarily due to two commercial loans placed on nonaccrual status [5] Noninterest Income and Expenses - Noninterest income decreased by $3,192,000 for Q4 2025 and $4,201,000 for the full year, largely due to losses on the sale of securities [6] - Noninterest expenses for Q4 2025 totaled $10,853,000, a decrease of $2,453,000 from the previous year, with significant reductions in salaries and employee benefits [7] Asset and Equity Position - Total assets at December 31, 2025, were $1.583 billion, an increase of $79 million from the previous year [8] - Shareholders' equity increased by $19.9 million, driven by net income and an increase in accumulated other comprehensive income [8]