Financial Data and Key Metrics Changes - In Q4 2025, the company reported net income of $16 million or $0.83 per share, an increase from $10.8 million or $0.56 per share in the previous quarter, with adjusted EPS up 41% year-over-year [8] - Net interest income was $40.7 million, up 5% from Q3 and 24% year-over-year, with a margin of 2.56, increasing by 16 basis points from Q3 and 61 basis points year-over-year [8] - Non-interest income rose 5% compared to Q3 and 15% year-over-year, with wealth management revenues up 5% [9] Business Line Data and Key Metrics Changes - Wealth management revenues increased by 5%, with average assets under administration (AUA) rising 4% quarter-over-quarter and 9% year-over-year [9] - Mortgage banking revenues totaled $3.3 million, down 7% seasonally but up 14% year-over-year, with full-year mortgage originations totaling $667 million, a 31% increase from 2024 [9] Market Data and Key Metrics Changes - In-market deposits increased by 1% from Q3 and 9% year-over-year, while total loans increased modestly by $12 million from September 30 [10] - Wholesale funding decreased by $165 million or 21% from the end of September [10] Company Strategy and Development Direction - The company is focusing on growth in wealth management and commercial banking, with strategic investments including the acquisition of Lighthouse Financial Management and the hiring of a new Chief Commercial Banking Officer [5][6] - A new institutional banking team has been established to serve education, healthcare, and nonprofit sectors in the Northeast, aimed at enhancing earnings and deposit opportunities [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the current margin levels, projecting a potential increase in the margin due to a swap termination in April [16] - The company anticipates a solid 5% year-over-year loan growth, with expectations for improved performance in the commercial and industrial (C&I) lending space [32][36] Other Important Information - The effective tax rate for the full year was 22.5%, with an expectation of approximately 22% for 2026 [10] - The company plans to open a new branch in Pawtucket, Rhode Island, later in the year, enhancing its presence in the northern part of the state [7] Q&A Session Summary Question: Margin sustainability outlook - Management believes the current margin level is sustainable, with expected increases due to a swap termination and organic expansion [16][17] Question: Credit reserve levels - Management is comfortable with the current reserve levels, which are on the lower side compared to peers, and plans to adjust as necessary based on portfolio performance [18][21] Question: Wealth management opportunities - The focus is on organic growth through the new institutional banking team rather than M&A, although the company remains opportunistic [22][66] Question: Expense outlook - A 6% increase in expenses is expected for Q1, driven by merit raises and new team investments, with a 5% year-over-year increase anticipated for other expenses [28][29] Question: Loan growth expectations - Management expects a 4%-5% growth in commercial real estate (CRE) and a solid 5% year-over-year growth overall, with a focus on improving the C&I lending team [32][36]