Financial Data and Key Metrics Changes - The company reported record revenue of $655 million for the full year 2025, with GAAP EPS for Q4 at $0.31 and adjusted EPS at $0.33, reflecting a quarter-over-quarter improvement from $0.29 and $0.04 respectively [3][11] - Net interest income grew by $6.2 million or 4.6% quarter-over-quarter, with net interest margin improving to 3.69% [11][15] - Non-interest income increased by $5.5 million or 17% quarter-over-quarter, contributing to a total revenue increase of $11.8 million or 7% [11][12] Business Line Data and Key Metrics Changes - Average loans grew by $414 million quarter-over-quarter, with end-of-period loans increasing by $66 million, totaling $13 billion [12][13] - Commercial loans increased by $162 million or 7.1% quarter-over-quarter and $509 million or 26% year-over-year [13] - The company introduced a new franchise finance vertical and significantly grew its SBA lending activity, ranking among the top 50 originators in the U.S. [6] Market Data and Key Metrics Changes - Average total deposits grew by $475 million quarter-over-quarter, with customer non-brokered average deposits increasing by $507 million [14] - The average balance of customer deposits is $19,000, with over 723,000 accounts and an average tenure of 12 years [14] - The cost of deposits decreased by 2 basis points to 1.53% [14] Company Strategy and Development Direction - The company aims for continued growth in 2026, focusing on optimizing operations, expanding its financial center network, and enhancing consumer and commercial lines of business [7][20] - The successful integration of the Penns Woods acquisition has positioned the company among the top 100 banks in the U.S. by assets [4] - The company is committed to maintaining a strong core performance while investing in talent, technology, and new financial centers [3][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for 2026, providing guidance for revenues between $710 million and $730 million and net interest margin in the low 3.70s [20] - The company anticipates loan growth in the low-to-mid single digits and deposit growth in the low single digits for 2026 [20] - Management noted a significant reduction in classified assets and a focus on organic growth [7][20] Other Important Information - The company returned more than half of its profits to shareholders through a quarterly dividend of $0.20 per share, marking the 125th consecutive quarter of cash dividends [7] - The adjusted efficiency ratio improved to 59.5% in Q4, reflecting tight expense management [12][17] Q&A Session Summary Question: Can you comment on the trend line with expenses? - Management acknowledged typical seasonal increases in expenses in Q1 but expects overall expenses to be lower than Q4 levels [25][26] Question: Is there a non-recurring performance in Q4 figures? - Management confirmed that there was a lift in Q4 due to year-end true-ups of incentive plans [27] Question: Does the NIM guidance include accretion? - Management confirmed that the NIM guidance includes normal contractual purchase accounting accretion and is not heavily dependent on anticipated rate cuts [28][29] Question: Can you provide details on the SBA business funding? - Management indicated a balanced approach to retaining SBA loans on the balance sheet while also generating fee income [41][45] Question: What is the appetite for M&A following the last deal? - Management stated a focus on executing the 2026 plan and organic growth, with openness to future M&A opportunities that fit culturally and geographically [80][81]

Core Viewpoint - Summit State Bank reported a significant turnaround in financial performance for the fourth quarter and the full year of 2025, returning to profitability after a net loss in 2024, driven by improved core banking operations and disciplined expense management [3][6][22]. Financial Performance - For Q4 2025, the Bank reported net income of $1,067,000, or $0.16 per diluted share, compared to a net loss of $7,142,000, or $1.06 loss per diluted share in Q4 2024 [1][6]. - For the year ended December 31, 2025, net income was $6,796,000, or $1.01 per diluted share, compared to a net loss of $4,193,000, or $0.62 loss per diluted share in 2024 [2][29]. Operating Results - The annualized return on average assets for Q4 2025 was 0.42%, and the annualized return on average equity was 4.16%, a significant improvement from the annualized losses of 2.59% and 28.05% in Q4 2024 [4][6]. - The net interest margin expanded by 74 basis points to 3.62% in Q4 2025, compared to 2.88% in Q4 2024 [5][6]. Balance Sheet Highlights - Total assets as of December 31, 2025, were $1,004,586,000, with total deposits decreasing by 7% to $891,111,000 compared to the previous year [12][31]. - Net loans decreased by 8% to $831,793,000 as of December 31, 2025, compared to $905,075,000 a year earlier [12][31]. Credit Quality - Non-performing assets were $27,346,000, or 2.72% of total assets, at December 31, 2025, down from $32,191,000 a year earlier [18][21]. - The allowance for credit losses to total loans increased to 1.71% as of December 31, 2025, compared to 1.49% a year earlier, reflecting a conservative approach to reserving [21][22]. Shareholder Equity - Shareholders' equity increased to $101,171,000 at December 31, 2025, compared to $91,723,000 a year earlier, primarily due to retained earnings from net income [15][22]. - Book value per share was $14.94, up from $13.53 a year ago [15][22]. Management Commentary - The CEO emphasized the focus on building a strong foundation for the future, highlighting the positive trajectory in core banking operations and commitment to serving local businesses and families [3][11].

Group 1 - The Financial Select Sector SPDR ETF (XLF) has recently experienced significant inflows, surpassing other popular ETFs like the Vanguard Total Stock Market ETF and the Vanguard Total Bond Market ETF [1][2] - The ETF tracks the financial sector, including banks, insurance companies, and financial institutions, with a focus on large-cap stocks [4][5] - The top 10 holdings in the ETF account for 55% of its assets, with Berkshire Hathaway being the largest holding, followed by JPMorgan Chase, Visa, Mastercard, and Bank of America [5] Group 2 - The ETF has a low expense ratio of 0.08%, meaning annual investment costs are minimal compared to potential returns [6] - Investors may view the financial sector as a bargain opportunity due to recent declines in bank stock prices and overall sector pressure [6][8] - Improving bank interest margins, driven by Federal Reserve interest rate cuts, could enhance bank profits in the coming years, particularly if rates are cut further in 2026 [7][8]

Core Viewpoint - Home Bancorp, Inc. reported a net income of $11.4 million for the fourth quarter of 2025, reflecting an 8% decrease from the previous quarter, primarily due to lower loan yields and increased nonperforming assets [1][2]. Financial Performance - The Company’s net income for Q4 2025 was $11.4 million, or $1.46 per diluted share, down from $12.4 million, or $1.59 per diluted share in Q3 2025 [1]. - Net interest income for Q4 2025 totaled $34.0 million, a slight decrease of $58,000 from the prior quarter [6]. - The net interest margin (NIM) decreased to 4.06% from 4.10% in Q3 2025, attributed to lower yields on interest-earning assets [6][20]. Loan and Deposit Growth - Total loans reached $2.7 billion at December 31, 2025, an increase of $38.1 million, or 1%, from September 30, 2025 [4][6]. - Core deposits increased by $24.5 million, or 1%, during Q4 2025, totaling $2.2 billion [6][15]. - Total deposits were $3.0 billion, down $2.7 million, or less than 1%, from the previous quarter [6][15]. Credit Quality - Nonperforming assets rose to $36.1 million, or 1.03% of total assets, up $5.2 million, or 17%, from the previous quarter [6][8]. - The Company recorded a provision for loan losses of $480,000 in Q4 2025, compared to a reversal of provision in Q3 2025 [9][25]. Investment Securities - The investment securities portfolio totaled $392.5 million at December 31, 2025, an increase of $8.1 million, or 2%, from September 30, 2025 [12]. - The Company had a net unrealized loss of $23.4 million on its investment securities, improved from a loss of $26.5 million in the prior quarter [12]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.31 per share, unchanged from the previous quarter [27]. - The Company repurchased 750 shares at an average price of $59.97 during Q4 2025, with 390,222 shares remaining eligible for purchase under the repurchase plan [28]. Capital and Liquidity - Shareholders' equity increased to $435.1 million, up $12.1 million, or 3%, compared to the previous quarter [26]. - The Tier 1 leverage capital ratio was 11.84% and the total risk-based capital ratio was 15.29% at December 31, 2025 [26].

Core Insights - Bank of Hawaii continues to prioritize community service and maintains strong credit performance with a loan portfolio predominantly in Hawaii, comprising 93% of total loans [1][4] - The bank reported a solid quarter with net interest income increasing by 4.6% to $125.8 million, marking the fourth consecutive quarter of improvement [4][11] - Deposit growth was measured, with total deposits growing 7.3% to $21 billion, while credit quality remained strong with net charge-offs at 13 basis points [4][20] Financial Performance - Net interest margin expanded to 2.32%, driven by asset cash flow repricing and lower deposit rates [11][20] - Noninterest income for the first quarter totaled $44.1 million, slightly down from the previous quarter due to market volatility [16][17] - Total expenses for the first quarter were reported at $110.5 million, with a projected increase of 2% to 3% for the year [19][46] Loan Portfolio - The loan portfolio is well-diversified, with consumer loans making up 56% and commercial loans 44% [5][6] - The commercial real estate segment is stable, with a weighted average loan-to-value (LTV) ratio of 55% and no sector exceeding 7% of total loans [6][7] - Credit metrics remain stable, with criticized loans at 2.08% of total loans, primarily secured by real estate [10][20] Market Conditions - Economic conditions in Hawaii remain stable, with unemployment below the national average and a stable visitor market, although some impacts from the Maui market are noted [2][4] - The bank's exposure to tariffs is minimal, with only 4% of the loan portfolio potentially affected, primarily in service-oriented sectors [54][55] - The outlook for loan growth remains cautious but stable, with a solid commercial pipeline and increased consumer applications [34][39]

Core Insights - The company reported a net income of $200 million for the full year of 2024, with earnings per share at $3.41, indicating a return to pre-Silicon Valley performance levels [1][4] - The tangible common equity ratio improved to 8.81%, and tangible book value per share increased by 25% over the last two years, reaching $26.78 [1][17] - The company achieved a 4% growth in pre-tax pre-provision earnings on a linked basis, supported by a net interest margin improvement of five basis points [1][22] Financial Performance - The fourth quarter earnings per share totaled $1.10, adjusted for a $20 million gain from the sale of branches and an $11.6 million bond loss [2] - Loan growth for the quarter was 6%, aligning with the company's expectations for 2025 [2][6] - Non-interest income increased by $17.9 million, reflecting strong core performance despite losses from bond sales [15][22] Operational Developments - The company completed several upgrades to its technology platforms, including account origination and online banking systems, enhancing client experience [3][5] - The sale of five non-core branches and restructuring of the securities portfolio were completed, contributing to a more focused operational strategy [3][16] - The company maintained a disciplined approach to managing deposit costs, with total deposits growing at a 4.4% annualized rate in the fourth quarter [12][21] Market Position and Strategy - The company is focusing on core markets in Indiana, Ohio, and Michigan, implementing innovative customer acquisition strategies [2][5] - The Commercial and Industrial (C&I) segment remains the largest part of the loan portfolio, comprising 50% of total loans, with strong growth expected in this area [10][25] - The company is optimistic about future growth opportunities in commercial real estate, particularly in multi-family and industrial segments [47][56] Asset Quality and Risk Management - The allowance for credit losses was $192.8 million, with a coverage ratio of 1.5%, indicating strong reserves compared to peers [20] - Non-accrual loans increased by $14.7 million, primarily due to a specific multi-family housing loan, but overall asset quality remains stable [30][32] - The company anticipates charge-offs to remain between 15 and 20 basis points, reflecting a stable credit environment [62]

Financial Data and Key Metrics Changes - The company generated net income of $3.3 million, or $0.34 per diluted share in Q4 2025, which was higher than the prior quarter [6] - Gross revenue increased by 1.5% from the prior quarter and 12.2% from Q4 2024 [10] - Net interest income rose by 5.6% from the prior quarter and 21.7% from Q4 2024, with net interest margin (NIM) increasing to 2.71% [10][11] - Tangible book value per share increased by 1.6% this quarter [6] Business Line Data and Key Metrics Changes - Loans held for investment increased by $59 million from the end of the prior quarter, with new loan production of $146 million in Q4 [7] - Total deposits increased by $102 million from the end of the prior quarter, with average deposits up 10% compared to Q4 2024 [8][9] - Assets under management in Trust and Investment Management decreased by $155 million, primarily due to net withdrawals [9] Market Data and Key Metrics Changes - The company experienced solid loan production diversified across markets, industries, and loan types, supported by healthy economic conditions [6] - The market remains competitive in terms of pricing on loans and deposits, but the company focuses on service quality rather than competing on rates [4] Company Strategy and Development Direction - The company aims to maintain a conservative approach to new loan production with disciplined underwriting and pricing criteria [4] - There is a focus on organic growth and leveraging market disruption to recruit talent and new clients [14][87] - The company is investing in technology infrastructure, product teams, and marketing to enhance efficiency and value [91] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects continued loan and deposit growth in 2026 [14] - Positive trends in net interest margin and fee income are anticipated, with a goal of achieving a 1% return on assets (ROA) [43][94] - The company does not foresee any meaningful deterioration in asset quality based on current portfolio trends [15] Other Important Information - A one-time $1.4 million write-down on an OREO property impacted non-interest expenses, but excluding this, expenses decreased by $100,000 [12] - The company has shifted its focus in Trust and Investment Management from investment management to fiduciary and planning-driven services [26] Q&A Session Summary Question: Margin outlook and loan repricing - Management expects further NIM expansion through 2026, with $250 million in fixed-rate loans maturing over the next year providing repricing opportunities [22][23] Question: Asset management and mortgage banking trends - AUM decline was due to net withdrawals in lower-yielding categories, but higher-yielding categories are improving [25] - Mortgage production is expected to be stronger in Q2 and Q3 of 2026, with a focus on building the MLO team [28] Question: Expense growth rate in 2026 - The company aims to keep expenses below $20 million per quarter while investing in growth opportunities [38] Question: Profitability improvement potential in 2026 - The company targets a 1% ROA, with expectations for continued NIM improvement and operating growth [43] Question: Deposit competition and loan pipeline - Both loan and deposit pipelines are strong, with a focus on optimizing the balance sheet [47] Question: Tax rate outlook - The effective tax rate is expected to stabilize around 23%-24% moving forward [76][77] Question: Mortgage market expectations for 2026 - The company is well-positioned for future mortgage opportunities as market conditions improve [82][83]

Core Insights - The company experienced significant growth in net interest margin and net interest income, driven by higher loan yields and lower funding costs [1][2] - 2025 was characterized as a transformative year due to two major acquisitions, record balance sheet growth, and improved profitability metrics [7] Financial Performance - Loan yield increased to 6.09%, up 12 basis points from the previous quarter, while total earning asset yield rose to 5.00%, up 14 basis points sequentially [1] - Tax-equivalent net interest margin reached 3.58%, a 19 basis point increase from the prior quarter and a 61 basis point increase year over year [2] - Net interest income for the quarter was $266 million, up $41 million or 18% sequentially, and $889 million for the full year, up $184 million or 26% year over year [2] - Diluted earnings per share were $0.49 for the quarter and $1.99 for the full year, representing an 18% increase year over year [4] Balance Sheet and Growth - Total assets exceeded $30 billion during the quarter, ending the year at $32 billion, with loans totaling $21 billion, an increase of $2 billion or 11% from the prior quarter [3] - Deposits reached $24.6 billion, increasing $2.7 billion or 12% sequentially [3] Acquisitions and Integration - The company completed two acquisitions in 2025, including Bank of Idaho and Guaranty Bank & Trust, expanding its footprint in Idaho and Texas [6][7] - The integration of Guaranty Bank & Trust is expected to yield cost savings post-conversion in February [18] Expense Management - Non-interest expense totaled $195 million for the quarter, up 16% from the prior quarter, primarily due to acquisition-related costs [9] - Core operating non-interest expense guidance for 2026 is set between $750 million and $766 million [12] Efficiency and Credit Quality - The efficiency ratio improved from 66.7% at the beginning of 2025 to 63% by year-end, with a target of reaching 54% to 55% efficiency [13] - Credit quality remains strong, with non-performing assets at 22 basis points of total assets and net charge-offs at 6 basis points of total loans for the year [16] Future Outlook - The company anticipates reaching a 4% net interest margin in the second half of 2026, supported by asset repricing [8] - Loan growth is targeted at low- to mid-single-digit percentages in 2026, with a strong early-year pipeline [14]

Core Insights - CIB Marine Bancshares, Inc. reported a decline in net income for 2025, with net income allocated to common shareholders at $1.6 million, down from $2.5 million in 2024, primarily due to increased provisions for credit losses in the fourth quarter [2][4]. Financial Performance - The net interest margin improved to 2.72% for the full year 2025, up from 2.42% in 2024, driven by a reduction in the cost of funds [4][12]. - Provisions for credit losses were $1.2 million in the fourth quarter of 2025, compared to reversals of $0.3 million in the same quarter of 2024 [4][10]. - The company experienced net charge-offs of 0.20% for the year, compared to 0.01% in the prior year [4][12]. Loan and Asset Quality - Non-performing assets represented 1.04% of total assets as of December 31, 2025, an increase from 0.68% a year earlier [4][12]. - The allowance for credit losses on loans was 1.27% as of December 31, 2025, compared to 1.26% a year earlier [4][12]. - Outstanding loan balances in the NAICS Transportation and Warehousing category declined from $15.9 million to $13.7 million since year-end 2024 [3][4]. Operational Highlights - The Banking Division reported an income increase of $0.9 million in 2025, excluding provisions and the prior year's sale-leaseback gain, driven by higher net interest income [4][12]. - The Mortgage Division achieved a modest profit in 2025, recovering from a loss of $0.2 million in 2024 [4][12]. Shareholder Actions - The company authorized a stock repurchase program of up to $2.5 million through December 31, 2026, repurchasing 36,383 shares for $1.3 million in 2025 [5][12].

Core Insights - Columbia Banking System (COLB) reported fourth-quarter 2025 operating earnings of 82 cents per share, exceeding the Zacks Consensus Estimate of 72 cents and up from 71 cents in the prior-year quarter [1][9] - The quarterly results included the first full-quarter contribution from the Pacific Premier deal, with higher net interest income (NII) and non-interest income, while lower provisions provided a positive impact despite higher non-interest expenses [2] Financial Performance - Total revenues for the quarter reached $717 million, a significant increase from $487 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $694.1 million [3] - For the full year 2025, total revenues rose 19% year over year to $2.32 billion, exceeding the consensus estimate of $2.28 billion [3] - NII was reported at $627 million, marking a 43% year-over-year increase, with a net interest margin of 4.06%, up 42 basis points [3] Non-Interest Income and Expenses - Non-interest income totaled $90 million, an 80% increase from $50 million a year ago, driven by higher service charges, financial services revenue, and bank-owned life insurance income [4] - Non-interest expenses rose to $412 million, a 54% increase year over year, attributed to higher costs across various categories and increased merger and restructuring charges [4] Efficiency and Credit Quality - The efficiency ratio was reported at 57.30%, up from 54.61% in the prior-year quarter, while the adjusted operating efficiency ratio improved to 51.39% from 52.51% [5] - The company recorded a provision for credit losses of $23 million, down from $28 million in the prior-year quarter, with net charge-offs at 0.25% of average loans and leases, a slight decrease from 0.27% [8] Loans and Deposits - As of December 31, 2025, loans and leases were $47.8 billion, reflecting a 1% sequential decline due to commercial development run-off and accelerated loan repayments [6] - Total deposits decreased by 3% sequentially to $54.2 billion, primarily due to intentional reductions in brokered deposits and seasonal declines in customer balances [7] Capital Ratios and Share Repurchases - As of December 31, 2025, the estimated total risk-based capital ratio improved to 13.6% from 12.8% in the corresponding period of 2024, with the common equity Tier 1 (CET1) ratio rising to 11.8% from 10.5% [10] - During the reported quarter, the company repurchased 3.7 million common shares at an average price of $27.07 [11] Strategic Outlook - The company's Western footprint, granular deposit base, and focus on relationship banking support NII and balanced fee income growth, while integration and amortization costs keep expenses elevated [12]