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]

Core Insights - Old Second Bancorp reported strong fourth-quarter performance with a tax-equivalent net interest margin of 5.09%, an increase of 41 basis points year-over-year and 4 basis points from the previous quarter [1] - The company achieved a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROCCE) of 16.15%, with earnings per share up approximately 30% compared to the previous year [2][4] - The net income for the fourth quarter was reported at $28.8 million, or $0.54 per diluted share, with adjustments leading to a net income of $30.8 million, or $0.58 per diluted share [3][6] Financial Performance - The company experienced a decline in deposit costs, with the total cost of deposits falling to 1.15% from 1.33% in the prior quarter, contributing to the strong net interest margin [7] - Non-interest income decreased slightly from the prior quarter but was higher than the year-ago quarter, driven by increases in wealth management fees and service charges [18] - Total non-interest expense declined by $10.2 million from the prior quarter, including a significant decrease in acquisition-related costs [21] Loan and Deposit Trends - Old Second's loan-to-deposit ratio increased to 93.9%, up from 91.4% in the prior quarter, although total loans decreased by $12.4 million [10] - Average loans increased by $60 million, or 1.2%, from the linked quarter, while average deposits declined by approximately $200 million [11] - The company is targeting mid-single-digit loan growth for 2026 despite expected continued runoff in certain commercial real estate participations [5][13] Credit Quality and Charge-offs - The company recorded $6 million in net loan charge-offs during the fourth quarter, with approximately 75% attributed to the power sports and owner-occupied commercial real estate portfolios [14][16] - Non-performing loans increased by $4.8 million, and classified assets rose by $10 million during the quarter [14] - Management expects elevated charge-offs in the power sports segment in the near term due to a higher interest-rate environment, but remains optimistic about the contribution margin in that portfolio [15][16] Capital and Future Outlook - Tangible book value per share increased to $14.12, and the tangible equity ratio rose to 11.02% at year-end [23] - The company anticipates expense growth of around 3% in 2026, moderated by realized cost savings, while also planning for potential share repurchases [22][24] - Management expressed confidence in the integration of Evergreen and aims to drive organic balance sheet growth [24]

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 - Independent Bank Corporation reported strong financial performance for the fourth quarter and full year of 2025, with net income growth and improved key financial metrics, indicating a solid operational foundation and positive outlook for 2026 [1][2]. Financial Performance - Fourth quarter 2025 net income was $18.6 million, or $0.89 per diluted share, compared to $18.5 million, or $0.87 per diluted share in the same period last year [1]. - For the year ended December 31, 2025, net income reached $68.5 million, or $3.27 per diluted share, up from $66.8 million, or $3.16 per diluted share in 2024 [1]. - The company achieved a 13.3% increase in tangible book value over the past year [2]. Operating Results - Net interest income for the fourth quarter of 2025 was $46.4 million, an increase of $3.5 million, or 8.2%, from the previous year [3]. - The net interest margin improved to 3.62% in the fourth quarter of 2025, up from 3.45% in the same quarter of the previous year [3][4]. - Average interest-earning assets were $5.16 billion in the fourth quarter of 2025, compared to $5.01 billion in the year-ago quarter [3]. Loan and Deposit Growth - The company reported net loan growth of $78.0 million, or 7.4% annualized, from September 30, 2025 [4]. - Total deposits increased by $57.1 million, or 4.8% annualized, from September 30, 2025 [4]. - Loans, excluding loans held for sale, totaled $4.28 billion at December 31, 2025, compared to $4.04 billion at December 31, 2024 [15]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter of 2025 was $12.0 million, down from $19.1 million in the same quarter of 2024, primarily due to variances in mortgage banking revenues [7]. - Non-interest expenses totaled $36.1 million in the fourth quarter of 2025, a decrease from $37.0 million in the year-ago period [10]. Asset Quality - Total non-performing loans were $23.1 million at December 31, 2025, with a ratio of non-performing loans to total portfolio loans at 0.54% [12]. - The provision for credit losses was $6.1 million for the full year ended December 31, 2025, compared to $4.5 million in 2024 [5][12]. Capital and Liquidity - Total assets were $5.51 billion at December 31, 2025, an increase of $167.6 million from December 31, 2024 [15]. - Total shareholders' equity was $503.0 million at December 31, 2025, representing 9.14% of total assets [17]. - The company remains significantly above "well capitalized" for regulatory purposes with strong capital ratios [18]. Share Repurchase Plan - The Board of Directors authorized a share repurchase plan for 2026, allowing the purchase of up to 1,100,000 shares, approximately 5% of outstanding common stock [20].

Core Insights - Old National Bancorp (NASDAQ:ONB) reported GAAP earnings per share (EPS) of $0.55, missing the expected $0.59, and revenue of $698.6 million, below the estimated $706.17 million. However, on an adjusted basis, EPS was $0.62, beating analyst estimates [1][3]. Financial Performance - The company experienced a 40.9% increase in revenue in the fourth quarter of 2025 year-over-year, driven by acquisition activities, indicating positive momentum before the recent earnings report [2][3]. - The net interest margin remained solid at 3.65% (FTE), reflecting improved efficiency and sequential gains in return metrics [4]. - Nonaccrual loans were at 1.07%, higher than regional peers, suggesting a need for caution in asset quality management [4]. Valuation Metrics - Key financial ratios include a trailing P/E ratio of approximately 13.46 and an earnings yield of about 7.43%, reflecting investor valuation and return expectations [2][4][5]. - The price-to-sales ratio (ttm) is about 3.42, and the enterprise value to revenue ratio is around 6.74, showing the company's valuation relative to its revenue [5].

Group 1 - The company reported fourth-quarter earnings that matched analyst expectations with adjusted earnings per share of $1.39 and record revenue of $6.34 billion, reflecting a 19% increase year over year [1] - Total client assets rose 18% year over year to a record $11.90 trillion, with core net new assets totaling $163.9 billion for the quarter [2] - The net interest margin expanded to 2.90%, an increase of 57 basis points from the previous year, while asset management and administration fees increased by 15% to $1.7 billion [3] Group 2 - Trading revenue climbed 22% compared to the prior-year quarter, indicating strong performance in trading activities [3] - Full-year inflows reached $519.4 billion, reflecting organic growth of 5.1% [2]

Core Viewpoint - Metropolitan Bank demonstrated strong performance in the fourth quarter of 2025, with notable growth in net interest margin, net interest income, deposits, and loans, setting a solid foundation for future progress in 2026 and beyond [5] Financial Performance - Deposits increased by $304 million in the fourth quarter, approximately 4.3%, with a significant portion of indexed deposits expected to reprice following a rate change [1] - The bank reported a net interest margin of 4.1%, up 22 basis points from the previous quarter, attributed to balance sheet growth and easing rates [2] - Net interest income for the fourth quarter was $85.3 million, reflecting over a 10% increase from the linked quarter and nearly 20% year-over-year [7] Loan and Deposit Growth - The loan book remained flat in the fourth quarter due to elevated prepayments of about $317 million, exceeding the previous three-quarter run rate by approximately $150 million [3] - The bank expanded its loan portfolio by approximately $775 million in 2025, representing nearly 13% growth, with total loan originations around $1.9 billion [4] Strategic Initiatives - Management eliminated wholesale funding of $450 million during 2025, indicating a shift towards more stable deposit funding [6] - The bank plans to open two new branches in Florida in the first half of 2026, enhancing its presence in key markets [17] Future Outlook - For 2026, the bank anticipates loan growth of about $800 million, or roughly 12%, funded entirely through deposits, with a modest expansion in net interest margin expected [13] - The company aims for a return on tangible common equity (ROTCE) approaching 16% by the fourth quarter of 2026 [14] Expense Management - Non-interest expense totaled $44.4 million, down $1.4 million from the prior quarter, with specific reductions in compensation and professional fees [10][15] - Operating expense guidance for 2026 is set between $189 million and $191 million, accounting for various unique items [14] Asset Quality and Capital - Asset quality remains stable with no significant negative trends across loan segments, and the bank is cautiously optimistic about resolving specific workouts by the end of the current quarter [11][12]

Financial Data and Key Metrics Changes - For full year 2025, the company reported net income of $824 million, up 19% from $695 million in 2024. Earnings per diluted share increased to $11.40 from $10.31 in 2024, and tangible book value rose by over $13 to nearly $89 per share. Total assets at year-end were just over $71 billion [4][5]. - The fourth quarter net income was $223 million, a record, up 3% or $7 million from the prior quarter. Net interest income also reached a record level, driven by a $1.1 billion increase in average earning assets and a four basis points increase in net interest margin [4][8]. Business Line Data and Key Metrics Changes - Loan growth for the fourth quarter was approximately $1 billion, representing 8% growth on an annualized basis, while deposit growth was also $1 billion, reflecting a 7% increase over the prior quarter. For the full year, loans and deposits grew 11% and 10%, respectively [8][9]. - Non-interest income totaled $130.4 million in the fourth quarter, slightly down from $130.8 million in the prior quarter, impacted by lower security gains [10]. Market Data and Key Metrics Changes - The company moved into third position in deposit market share in the Chicago area, with strong gains in Wisconsin and West Michigan [5]. - The credit quality remained solid, with non-performing loans increasing slightly but remaining manageable at 35 basis points [14][15]. Company Strategy and Development Direction - The primary objective for 2026 is to continue delivering solid and consistent financial performance, with expectations of mid to high single-digit loan growth funded by a similar level of deposit growth [18][19]. - The company plans to invest in tools, technology, and people to support growth while maintaining a stable net interest margin around 3.5% [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding local economies, noting low employment levels and a solid quarter for loan growth. They anticipate that the first quarter may be softer but expect to meet targets in the first half of the year [23][24]. - The management team remains focused on organic growth and is open to acquisitions if opportunities arise, but the current plan is to grow the business organically [40][46]. Other Important Information - The company has a buyback plan authorized for over $200 million, which could be utilized if organic growth opportunities do not require it [46]. - The company continues to monitor its exposure to commercial real estate loans, which comprise roughly one quarter of its total portfolio, and sees signs of stabilization in this area [15][17]. Q&A Session Summary Question: Can you talk about loan growth and what drives it? - Management expressed cautious optimism about local economies and noted broad-based loan growth, with expectations for solid performance in the first half of the year despite typical seasonality [22][23]. Question: What are the expectations for operating leverage and expenses in 2026? - Management expects mid to high single-digit revenue growth with expenses growing in the 4%-5% range, aiming for positive operating leverage [26][28]. Question: Can you discuss deposit costs and growth drivers? - Management highlighted effective management of deposit costs and noted that growth mainly came from non-maturity deposits, with a minor benefit expected from CD repricing [32][34]. Question: What areas are not meeting expectations? - Management indicated that the mortgage business could be stronger and emphasized a disciplined approach to commercial activity [38]. Question: Is there any appetite for M&A outside of organic growth? - Management stated that while they are focused on organic growth, they remain opportunistic regarding acquisitions in other Midwest geographies [65]. Question: What are the strategic benefits of operating multiple banking charters? - Management believes that having 16 charters keeps them closer to the market and provides valuable benefits, including deposit insurance and market share advantages [70][71].

Core Insights - Ally Financial reported a strong performance in 2025, with adjusted earnings per share of $3.81, a 62% increase year over year, and core return on tangible common equity (ROTCE) of 10.4%, up more than 300 basis points compared to 2024 [2][5] - The company executed strategic actions including exiting non-core businesses and repositioning its investment securities portfolio, which contributed to improved profitability and credit performance [3][5] Financial Performance - Adjusted net revenue for 2025 was $8.5 billion, reflecting a 3% year-over-year increase, or 6% when excluding the impact of the credit card business sale [2][5] - Retail auto originations reached $43.7 billion, an 11% increase, with 43% of the volume in the highest credit tier [5][6] - The digital bank ended the year with $144 billion in retail deposits, maintaining a customer base of 3.5 million, marking 17 consecutive years of growth [9] Credit and Risk Management - Retail auto net charge-offs (NCOs) for the fourth quarter were reported at 2.14%, down 20 basis points year over year, with full-year retail auto NCOs at 1.97%, below prior guidance [14] - The company processed a record 15.5 million applications, allowing for selective originations and maintaining underwriting discipline [6][8] 2026 Guidance - For 2026, Ally expects a net interest margin (NIM) of 3.6% to 3.7%, retail auto NCOs of 1.8% to 2.0%, and low single-digit growth in other revenue [4][18] - Expense growth is anticipated to be around 1%, with continued investments in AI, cyber, and customer experience [18] Capital Management - Ally ended 2025 with a Common Equity Tier 1 (CET1) ratio of 10.2% and announced a $2 billion share repurchase authorization [20][21] - The adjusted tangible book value per share increased nearly 20% over the past year, ending at $40 [21]

Core Insights - The company successfully completed the systems conversion and integration related to its Bremer Bank partnership, marking it as one of its smoothest integrations ever [1] - Fourth-quarter GAAP earnings per share (EPS) were reported at $0.55, with adjusted EPS at $0.62, reflecting a 5% increase from the prior quarter and a 27% increase year over year [2] - The company achieved record profitability metrics in 2025, including adjusted EPS, net income, and efficiency ratio, driven by core deposit growth and disciplined credit management [3][4] Financial Performance - Adjusted EPS for Q4 was $0.62, up 27% year over year, with an adjusted return on average tangible common equity (ROTCE) of nearly 20% and an adjusted return on assets (ROA) of 1.37% [3][7] - The company reported total loan growth of 6.4% annualized from the prior quarter, with loan production up 25% [8] - Deposits increased by 0.6% annualized in the quarter, with non-interest-bearing deposits growing to 26% of core deposits [9] Outlook for 2026 - The company anticipates full-year loan growth of 4%–6% and a stable-to-improving net interest margin supported by repricing and securities cash flows [5][17] - Management plans to be more active in share buybacks while maintaining strong capital levels, with a CET1 ratio above 11% [6][16] - The company expects net interest income to increase, supported by fixed-asset repricing and continued growth [17] Cost Management and Efficiency - Adjusted non-interest expenses were reported at $365 million in Q4, with a record-low adjusted efficiency ratio of 46% [13] - The company realized about 28% of anticipated cost savings from the Bremer integration in Q4, with full realization expected in Q1 2026 [13] Credit Quality - Credit metrics improved, with net charge-offs at 27 basis points and criticized and classified loans declining by $278 million [15] - The allowance for credit losses was reported at 124 basis points of total loans, down two basis points from the prior quarter [15]