Core Insights - East West Bancorp reported a record-breaking year in 2025, achieving new highs in revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits, with expectations for continued growth in 2026 despite economic uncertainties [5][4][7] Lending and Deposit Growth - End-of-period loans grew by 6% year over year, with average loans increasing by 4%, primarily driven by commercial and industrial (C&I) growth, which is expected to continue leading lending growth into 2026 [1][7] - The bank's deposit growth was prioritized through a business checking campaign, resulting in a 6% year-over-year increase in end-of-period deposits, with non-interest-bearing deposits and time deposits showing traction [2][7] Dividend and Shareholder Metrics - The board approved a quarterly dividend increase of $0.20 to $0.80 per share, representing a 33% increase, payable on February 17 to stockholders of record on February 2 [3][4] Financial Performance and Projections - The bank's core deposit growth supported loan growth and improved liquidity, with management guiding for loan growth of 5-7% in 2026, led by C&I and residential mortgages, alongside net interest income growth of 5-7% [2][11][7] - Fourth-quarter net interest income was reported at $658 million, benefiting from balance sheet growth and favorable deposit mix shifts, with a reduction in deposit costs [9][10] Fee Income and Expense Management - Fee income grew by 12% in 2025, driven by strong performance in wealth management, derivatives, foreign exchange, and lending fees, with aspirations to grow fee income faster than balance sheet growth in 2026 [12][13] - Total operating non-interest expense rose by 7.5% in 2025, with expectations for a 7-9% increase in 2026 due to headcount additions and IT-related expenditures [13] Asset Quality and Capital Position - The bank maintained strong asset quality, with net charge-offs of 8 basis points in Q4 and a provision for credit losses of $30 million, while projecting net charge-offs of 20-30 basis points for 2026 [6][15] - Regulatory capital ratios remain robust, with a Common Equity Tier 1 ratio of 15.1%, supporting the bank's client service model and resilience amid potential volatility [16] Hedging and Securities Strategy - Cash hedge headwinds narrowed significantly, with expectations for hedges to become tailwinds in 2026 as rate cuts continue, and a shift towards fixed-rate purchases in securities based on relative value [17]

Core Insights - The company reported a net income of $34 million, equating to 89¢ per share, with a return on assets (ROA) of 1.37% and a net interest margin (NIM) of 3.99%, marking the best performance since 2023 [2][4] - Loan growth was just under 4.5% for the quarter, primarily driven by commercial banking, while customer deposit growth was at 2.9% [1][3] - The company announced a new $100 million share repurchase authorization, reflecting strong capital levels and the ability to pursue growth opportunities [1][5] Financial Performance - The company achieved a net income of $135 million for the year, with earnings per share of $3.49 and a net interest margin of 3.9% [4] - Noninterest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 to $14 million per quarter [12][13] - Expenses were controlled, with a year-over-year increase of approximately 3%, leading to a projected quarterly run rate of about $58 million [13][36] Loan and Deposit Growth - Loan growth was primarily driven by commercial and industrial (C&I) loans, with C&I balances increasing by $53 million and commercial real estate (CRE) balances by $34 million [6][7] - Customer deposit growth was strong, particularly in the consumer space, with a focus on driving core deposit growth to fund loan growth [27][28] - The company anticipates mid-single-digit loan growth for 2026, supported by improved activity in C&I and CRE [7][11] Asset Quality - Asset quality was mixed, with net charge-offs at 18 basis points for the year and a reduction in criticized and classified loans by 50% over three years [3][10] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting successful problem loan resolutions [8][9] - The company expects asset quality in 2026 to perform similarly to 2025, with a focus on reducing non-performing loans (NPLs) [11][35] Capital Management - The tangible common equity (TCE) ratio decreased by 29 basis points due to share repurchases, but regulatory ratios remain strong with significant excess capital [13][14] - The company repurchased over 948,000 shares at an average price of $33.82, totaling $36.2 million [14] - The share repurchase program does not impede the company's ability to pursue mergers and acquisitions (M&A) opportunities [5][23] Market and Competitive Landscape - The company is focused on adding talent in the C&I and CRE sectors to enhance customer acquisition and support growth [19][52] - Competitive pressures on deposit rates have moderated, allowing for a more rational market environment [54][55] - The company is optimistic about its ability to grow deposits at a rate that matches projected loan growth [56]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $16.3 million or $1.45 per diluted common share, an increase from $14.9 million or $1.27 per diluted common share in Q4 2024 [3][10] - Full-year net income for 2025 totaled $71 million or $6.19 per diluted common share, up from $61.8 million or $5.26 per diluted common share in 2024 [10][18] - Net interest income for Q4 2025 was $49.2 million, a slight decrease of $371,000 or 0.7% compared to the prior year quarter [4][11] - The efficiency ratio improved to 63.89% in Q4 2025 from 65.43% in Q4 2024 [15] Business Line Data and Key Metrics Changes - Net loans receivable decreased to $4.336 billion at year-end, down $333.5 million or 7.1% from the previous year, with declines in multifamily residential, commercial construction, and commercial business loans [5][16] - Total deposits decreased by $122.8 million or 2.7% to $4.48 billion, primarily due to a decline in brokered deposits [16][17] - Non-interest income increased to $7.2 million in Q4 2025 from $6.9 million in Q4 2024, driven by higher late charges and fees [12][13] Market Data and Key Metrics Changes - Non-performing assets represented 0.15% of total assets at year-end, consistent with both the linked quarter and prior year quarter [7][17] - The company maintained strong liquidity with cash and cash equivalents totaling $189.6 million and access to approximately $1.63 billion of additional borrowing capacity [16] Company Strategy and Development Direction - The company remains focused on preserving net interest margins, protecting credit quality, controlling non-interest expenses, and opportunistically repurchasing stock [3][9] - Management emphasized a conservative underwriting posture and a focus on pricing, structure, and borrower stream to navigate economic pressures [5][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that loan growth may remain challenging due to elevated payoffs and competitive market conditions, but expressed confidence in the company's conservative approach and sound balance sheet management [9][30] - The company did not record a provision for credit losses on outstanding loans in 2025, reflecting stable borrower performance [18] Other Important Information - Stockholders' equity increased to $636.1 million at year-end 2025, representing 11.4% of total assets, with a book value per common share of $57.50 [18][19] - The board declared a regular quarterly cash dividend of $0.43 per common share, consistent with the previous quarter [20] Q&A Session Summary Question: Regarding the margin and its outlook for 2026 - Management noted that they performed better than expected in Q4 2025, managing funding costs proactively and seeing some loans redeployed at higher rates [25][26] Question: Expectations for loan growth and payoffs - Management indicated that loan growth would remain challenging, with good activity but elevated payoffs continuing to impact net growth [30][31] Question: Future expenses and potential increases - Management acknowledged that there would likely be an uptick in expenses due to annual increases in salaries and benefits [35]

Core Insights - The company reported strong performance in Q3, with significant growth in loans and deposits, alongside margin expansion and effective expense management [3][23]. Financial Performance - Total deposits increased by $193 million in the quarter, with $83 million in noninterest-bearing deposits. The percentage of CDs to total deposits rose slightly to 16.5% from 16% [1]. - Loan balances grew by $147 million, with yields on the loan portfolio at 5.60%, an increase of 8 basis points from Q2 [2][19]. - Net interest income rose by $1.8 million, a 3.6% increase, attributed to higher average earning assets and net interest margin, which improved to 3.33% from 3.29% [7]. - The cost of interest-bearing deposits was 2.02% for Q3, slightly down from 2.03% in September [5]. Credit Quality - Total charge-offs were just under $2.7 million, primarily linked to one owner-occupied CRE loan, with net charge-offs of just over $2.5 million [11][12]. - Nonaccrual loans totaled $4.3 million, representing 0.09% of total loans, a slight increase from 0.08% at the end of Q2 [12][15]. - Criticized loans decreased by $5 million or 2.9% during the quarter, indicating stable credit quality [15]. Loan Production and Pipeline - The commercial lending group closed $253 million in new loan commitments, a 16% increase from the previous quarter [18]. - The loan pipeline ended at $491 million, up from $480 million last quarter, indicating strong demand [19]. - The average interest rate for new commercial loans was 6.53%, down 35 basis points from the previous quarter [21]. Strategic Initiatives - The company announced the hiring of Nick Bley as the new Chief Operating Officer, aimed at enhancing operations and technology [22]. - The company is focused on maintaining a strong capital position, with a TCE ratio of 9.1%, up from 8.9% in the prior quarter [9][10]. Market Outlook - The company anticipates stable net interest margin in Q4, with potential for expansion in 2025 as loan repricing occurs [27][40]. - The company is strategically positioned to leverage growth opportunities while managing risks effectively [24][23].

Core Insights - Independent Bank Corporation reported a net income of $18.6 million or $0.89 per diluted share for Q4 2025, a slight increase from $18.5 million or $0.87 per diluted share in the same period last year [2] - The company achieved a net growth in loans of $78 million or 7.4% annualized and a net growth in total deposits of $57.5 million or 4.8% annualized [1][5] - The tangible common equity ratio increased to 8.65%, and a dividend of $0.26 per share was declared [1] Financial Performance - For the full year 2025, net income reached $68.5 million or $3.27 per diluted share, compared to $66.8 million or $3.16 per diluted share in 2024 [2] - Net interest income increased by $1 million or 2.2% over 2025, with a net interest margin of 3.62%, up eight basis points from the previous quarter [2][13] - The company reported a return on average assets of 1.35% and a return on average equity of 14.75% [2] Loan and Deposit Growth - Total loans grew by $237 million or 5.9% for the year, with the commercial portfolio leading at $276 million or 14.2% growth [8] - Deposits totaled $4.8 billion at year-end 2025, an increase of $107.6 million from December 31, 2024, driven by growth in savings and interest-bearing checking accounts [5][6] - The deposit base composition was 47% retail, 37% commercial, and 16% municipal, all showing year-over-year growth [6] Credit Quality - Total nonperforming loans were $23.1 million or 54 basis points of total loans, slightly up from 48 basis points at the end of the previous quarter [11] - Past due loans totaled $7.8 million or 18 basis points, also up from 12 basis points [11] - The company reported net charge-offs of $1.6 million or four basis points of average loans for the year, compared to $900,000 or two basis points in 2024 [11] Strategic Outlook - The company anticipates loan growth in the mid-single-digit range for 2026, targeting a full-year growth rate of 4.5% to 5.5% [21] - Net interest income is forecasted to grow by 7% to 8% over 2025, with net interest margin expansion expected in the first quarter of 2026 [21] - Noninterest income is estimated to increase by 3% to 4% compared to 2025, with mortgage loan origination volumes expected to decrease by 6% to 7% [22] Capital Management - The tangible common equity ratio has returned to the targeted range of 8.5% to 9.5%, and the company repurchased 407,113 shares of common stock for $12.4 million in 2025 [13] - The board authorized share repurchases of approximately 5% in 2026, although no repurchases are currently modeled for that year [23] - The company remains open to M&A opportunities, particularly in the Michigan market, while emphasizing organic growth strategies [36][37]

Financial Data and Key Metrics Changes - Core earnings were $0.99 per diluted share, indicating consistent earnings power and potential for growing returns on tangible common equity [4] - Net income was $26.6 million, or $0.88 per diluted share, with core net income at $30 million, or $0.99 per diluted share [11] - Net interest income grew by 1.8% to $77.9 million, exceeding guidance [12] - Tangible book value per share rose $0.87, or 3.4%, with a strong tier one leverage ratio of 9.36% [13] Business Line Data and Key Metrics Changes - On-balance sheet deposits grew by $179 million to $7.9 billion, while off-balance sheet deposits increased by $789 million to $1.1 billion [4] - Loans increased by $167 million, or 3.5%, to $4.9 billion, with growth in growth mode portfolios accelerating to 7% [5][6] - The PACE portfolio saw total assessments grow by $38 million, or 3%, to $1.3 billion [7] Market Data and Key Metrics Changes - Political deposits increased by $287 million to $1.7 billion, reflecting growth in fundraising ahead of elections [5] - Not-for-profit deposits grew by $388 million, social and philanthropy deposits by $122 million, and climate and sustainability deposits by $77 million [5] Company Strategy and Development Direction - The company aims to cross $10 billion in assets and is investing in people and technology for growth [7] - The business model is positioned for reliable growth, with a focus on profitability tied to mission purpose and a strong capital base [10] - The management team emphasizes disciplined balance sheet management and a values-aligned client franchise to attract mission-driven deposits [43] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenges faced in the banking sector, including rapid rate hikes and liquidity drains, but noted the bank's growth from $6 billion to nearly $9 billion in assets [8][9] - Expectations for growth and performance in 2026 are bold, with guidance indicating net interest income growth of 10%-11% and core pre-tax, pre-provision earnings growth of 9%-10% [16] Other Important Information - The company is implementing a new tax strategy that aims to improve the effective tax rate, targeting 26.5% for the upcoming year [25] - Asset quality metrics remained solid, although there was some credit turbulence, particularly related to a borrower in the DC market [14][15] Q&A Session Summary Question: Outlook for provision in 2026 and effective tax rate - Management expects provision outlook to remain similar to 2025, with a conservative approach to provisioning due to credit activity [24][25] Question: Political deposits outlook - Management anticipates growth in political deposits leading up to the election, with a strong pipeline for fundraising [27][28] Question: Multifamily growth and geographic distribution - Multifamily growth was strong, with nearly half of the growth occurring outside New York City, indicating good geographic diversification [29][31] Question: NIM expansion and commercial loan yields - NIM expansion was noted despite a down rate quarter, with loan yields expected to rise, particularly from repricing older real estate loans [34][35] Question: Growth potential of the PACE portfolio - There is significant room for growth in the CPACE portfolio, with strong yield opportunities and a focus on commercial PACE [36][37]

Financial Data and Key Metrics Changes - Independent Bank Corporation reported fourth quarter 2025 net income of $18.6 million or $0.89 per diluted share, compared to $18.5 million or $0.87 per diluted share in the prior year period [3] - For the year ended December 31, 2025, net income was $68.5 million or $3.27 per diluted share, up from $66.8 million or $3.16 per diluted share in 2024 [3] - Net interest income increased by $1 million or 2.2% over the third quarter of 2025, with a net interest margin of 3.62%, up eight basis points from the previous quarter [4] - The return on average assets and return on average equity were 1.35% and 14.75% respectively [4] Business Line Data and Key Metrics Changes - Total loans grew by $78 million or 7.4% annualized in the fourth quarter, with a total loan portfolio increase of $237 million or 5.9% for the year [9] - The commercial loan portfolio saw significant growth of $276 million or 14.2%, with quarterly growth of $88 million or 16% annualized [9] - The residential mortgage portfolio grew by $7.2 million, while the installment loan portfolio decreased by $17 million for the quarter [9] Market Data and Key Metrics Changes - Deposits totaled $4.8 billion at December 31, 2025, an increase of $107.6 million from December 31, 2024, primarily due to growth in savings and interest-bearing checking accounts [6] - The deposit base composition was 47% retail, 37% commercial, and 16% municipal, with all three portfolios showing year-over-year growth [7] - The total cost of funds decreased by 15 basis points to 1.67% [7] Company Strategy and Development Direction - The company aims to continue investing in its team and technology while striving to be Michigan's most people-focused bank [23] - A robust commercial loan pipeline and strategic initiatives to attract talented bankers are key components of the company's growth strategy [6] - The company anticipates loan growth in the mid-single-digit range for 2026, with a focus on commercial loans while expecting mortgage loans to remain flat and installment loans to decline [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through various economic environments and deliver consistent results for shareholders [23] - The outlook for 2026 includes expectations for net interest income growth of 7%-8% and net interest margin expansion of 5-7 basis points in the first quarter [20] - Management noted that credit quality metrics remain positive, with non-performing loans at 54 basis points of total loans, slightly up from the previous quarter [11] Other Important Information - The company repurchased 407,113 shares of common stock for an aggregate purchase price of $12.4 million in 2025 [13] - A tax credit transfer agreement executed during the fourth quarter is expected to reduce tax obligations and enhance earnings per share [19] Q&A Session Summary Question: Market outlook in Michigan and banker additions for 2026 - Management expects to add a net of four to five bankers in 2026, with opportunities arising in Southeast Michigan due to M&A dislocation [27] Question: Loan growth outlook and factors affecting it - The company anticipates mid-single-digit loan growth due to strong commercial growth but lower levels in mortgage and consumer loans [30] Question: Margin guidance and drivers for optimism - Management forecasts margin expansion of five to seven basis points in Q1, with three to five basis points in subsequent quarters, driven by rate cuts and repricing of below-market assets [36] Question: Capital management and M&A landscape - The company is excited about its capital position, allowing flexibility for share repurchases and potential M&A opportunities, though M&A is not a requirement for continued success [39][41] Question: Charge-off expectations - Management expects charge-offs to remain low, similar to recent history, with a provision for credit losses of 20-25 basis points of average portfolio loans [53]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net earnings of $55 million or $0.40 per share, an increase from $52.6 million or $0.38 per share in Q3 2025 and $50.9 million or $0.36 per share in Q4 2024 [3][4] - The return on average tangible common equity was 14.4% and return on average assets was 1.40% for Q4 2025 [3] - Pre-tax income increased by $5.4 million quarter-over-quarter and $6.3 million year-over-year [4] Business Line Data and Key Metrics Changes - Net interest income grew by $7 million, or 6%, from Q3 2025 and by $12.2 million, or 11%, from Q4 2024 [4] - Non-interest income was $11.2 million in Q4 2025, which was $1.8 million lower than Q3 2025 and $1.9 million lower than Q4 2024 [5] - Total loans increased to $8.7 billion, a $228 million, or 2.7%, increase from Q3 2025 and a $163 million, or 2%, increase from the end of 2024 [6][7] Market Data and Key Metrics Changes - Average total deposits were $12.6 billion in Q4 2025, compared to $12.5 billion in Q3 2025 [9] - Non-interest-bearing deposits declined by $122 million compared to Q3 2025, while interest-bearing non-maturity deposits grew by $234 million [9][10] - The cost of deposits decreased to 86 basis points in Q4 2025 from 90 basis points in Q3 2025 [10] Company Strategy and Development Direction - The company is focused on maintaining profitability and has a strong commitment to its mission of serving small to medium-sized businesses [96] - The pending merger with Heritage Bank of Commerce is expected to close in Q2 2026, with integration plans already underway [27][66] - The company aims to leverage the merger to enhance its product offerings and expand into new markets [87] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, citing strong loan pipelines and positive customer sentiment [26] - The economic forecast indicates modest growth, with real GDP expected to remain below 1.5% through 2027 [14] - The company is prepared for competitive pressures in the loan market but remains committed to maintaining credit quality [40] Other Important Information - The company incurred $1.6 million in one-time merger-related expenses during Q4 2025 [17] - The allowance for credit losses was $77 million, or 0.89% of gross loans, reflecting a decrease from the previous quarter [12] - The company repurchased 1.96 million shares at an average price of $18.80 during Q4 2025 [16] Q&A Session Summary Question: Non-interest-bearing deposits and customer behavior - Management indicated that the decline in non-interest-bearing deposits was due to normal seasonality and not a significant behavioral change among customers [22][23] Question: Non-dairy and livestock loan growth sustainability - Management noted that loan pipelines remain strong and expressed optimism about stable loan growth moving forward [24][26] Question: Update on the Heritage Bank deal - Management confirmed that the merger is progressing well and is on track for a Q2 2026 close [27] Question: Competitive landscape for deposits - Management stated that they are winning deposit business primarily from operating companies and are not focused on attracting customers with the highest rates [33][35] Question: Loan modifications and outlook for loan growth - Management explained that loan modifications can occur for various reasons, but the overall impact on the loan portfolio remains minimal [85]

Financial Data and Key Metrics Changes - Horizon Bancorp reported an annualized return on average assets above 1.6% and a return on average equity approaching 16% for Q4 2025, with a net interest margin of 4.29% [4][15] - The net interest margin increased by 77 basis points from the previous quarter, marking the ninth consecutive quarter of expansion [15][16] - Total loans reached $4.9 billion, an increase of $60.7 million from the previous quarter, with commercial loans growing by $76 million, representing 9% annualized growth [7][8] Business Line Data and Key Metrics Changes - Commercial relationship lending remains the primary strategy, with modest declines in consumer loans and residential mortgages, which are primarily sold into the secondary market [7][8] - The commercial loan portfolio is well-diversified, with 28% in commercial and industrial and 72% in commercial real estate [7] - Credit quality metrics remain strong, with substandard loans decreasing to 1.22% of total loans, down from 1.31% in the previous quarter [9][10] Market Data and Key Metrics Changes - The deposit portfolio shows strength, with non-interest-bearing balances up year over year, reflecting improved cost structure [12][13] - The company is well-positioned in attractive markets in Michigan and Indiana, with a focus on organic deposit funding to support loan growth [12][14] Company Strategy and Development Direction - Horizon aims to create sustainable long-term value for shareholders through a disciplined operating model and consistent profitable growth [6][24] - The company plans to leverage its community banking model and expand its branch network selectively in key markets [60][61] - The focus remains on organic growth rather than acquisitions, although the company is open to opportunistic talent additions [41][44] Management's Comments on Operating Environment and Future Outlook - Management views the outlook for 2026 as slightly more favorable than previously estimated, with expectations for mid-single-digit growth in loans and deposits [28][21] - The company anticipates stable net interest margins and continued strong performance metrics, with a focus on maintaining a conservative credit culture [15][23] - Economic conditions and credit quality trends will influence future provision expenses [11] Other Important Information - Non-interest income for Q4 was reported at $11.5 million, with a year-over-year increase in total fee income driven by wealth management and mortgage fees [18] - Expenses for the quarter were in line with expectations at $40.6 million, reflecting seasonal increases and legal fees related to legacy items [19] Q&A Session Summary Question: Outlook for 2026 and potential risks - Management sees a more optimistic outlook for net interest income, with organic core deposit growth being a key lever for upside [28][30] Question: Loan growth and consumer loan performance - The company does not plan to push for accelerated growth in consumer loans, focusing instead on commercial lending [31][32] Question: Asset quality and substandard loans - Management indicates that increases in substandard loans are modest and not reflective of sector-wide stress, with overall metrics remaining strong [33][34] Question: Margin drivers and loan pricing - New loan originations are yielding above 6.5%, while cash flows from the portfolio are below 6%, providing a favorable margin environment [37][39] Question: Capital deployment priorities - The company will focus on organic growth opportunities while remaining disciplined in capital deployment decisions [41][42] Question: Fee income drivers for 2026 - Fee income growth is expected to be balanced across various segments, with no single area driving significant changes [50][52] Question: Commercial pipeline and seasonality - The commercial loan pipeline is strong, though seasonality may affect quarterly fluctuations in originations [72]

Core Viewpoint Preferred Bank reported its financial results for the fourth quarter of 2025, showing a net income of $34.8 million, a decrease from the previous quarter but an increase compared to the same quarter last year. The results reflect challenges in net interest income due to declining market interest rates, alongside growth in loans and deposits. Financial Performance - The net income for the fourth quarter of 2025 was $34.8 million or $2.79 per diluted share, down $1.1 million from the prior quarter but up $4.6 million year-over-year [1][2] - For the full year 2025, net income was $133.6 million or $10.41 per diluted share, compared to $130.7 million or $9.64 per diluted share in 2024 [12] - The net interest margin for the fourth quarter was 3.74%, down from 3.92% in the previous quarter, primarily due to Federal Reserve interest rate cuts [3][10] Loan and Deposit Growth - Loan growth for the quarter was $182.3 million, representing a 12.4% annualized increase, while deposit growth was $115.8 million, or 7.4% annualized [4] - Total loans at December 31, 2025, were $6.05 billion, an increase of $413.6 million from the previous year, and total deposits were $6.35 billion, up $428.6 million [13] Noninterest Income and Expenses - Noninterest income for the fourth quarter was $8.1 million, significantly higher than $3.6 million in the same quarter last year, driven by a $3.6 million gain on the sale of OREO properties [7] - Total noninterest expense was $24.4 million for the fourth quarter, up from $21.5 million in the previous quarter but down from $28.2 million year-over-year [8][10] Asset Quality - Non-accrual loans and loans 90 days or more past due totaled $51.3 million, an increase from $17.6 million in the prior quarter, primarily due to a large multi-family loan placed into nonaccrual status [14] - Total criticized assets increased to $248.5 million at year-end, up from $151.0 million at the end of the previous quarter [14] Capitalization and Ratios - As of December 31, 2025, the tangible capital ratio was 10.38%, and the total capital ratio was 14.47% [16] - The return on average assets was 1.82%, and the return on average equity was 17.59% for the fourth quarter [9][10]