Financial Data and Key Metrics Changes - For Q4 2025, the company reported EPS of $1.07 and adjusted EPS of $1.16, with a full-year EPS of $2.45 and adjusted EPS of $3.99 [7][10] - The pre-tax pre-provision net revenue for the quarter was $71.1 million, or $77.1 million on an adjusted basis, driven by net interest income of $150.6 million and a net interest margin of 3.98% [9][10] - The company achieved a return on average assets of 1.4% and a return on average tangible common equity of 14.4% for the quarter [9] Business Line Data and Key Metrics Changes - Loans held for investment grew by 29% year-over-year, while deposits increased by 25% [10][25] - The net interest margin expanded by three basis points compared to Q3, despite Fed rate cuts and lower loan yields [19] - Non-interest income improved due to stronger swap fees and investment services revenue [20] Market Data and Key Metrics Changes - The company experienced a slight increase in non-performing assets, but overall credit outlook remains stable with annualized net charge-offs at only five basis points [22] - The company reported loan growth of $86 million and total deposit growth of $97 million for the quarter, both approximately 3% on an annualized basis [23] Company Strategy and Development Direction - The company aims to focus on customer relationships to enhance service and product offerings, which is seen as a winning formula for growth in 2026 [15][16] - The company is optimistic about growth opportunities in 2026, both organically and through potential acquisitions, following the successful integration of Southern States Bank [11][17] - The company plans to maintain a mid to high single-digit growth rate in loans and deposits for 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate earnings and financial returns that meet expectations, with a focus on enhancing customer experience [12][14] - The management acknowledged challenges in organic growth due to economic conditions and distractions from acquisitions but remains bullish about future growth prospects [14][18] Other Important Information - The company repurchased over 1.7 million shares, representing about 3% of the company, as part of a transaction with its largest shareholder [26][27] - The company expects net interest margin to land between 3.78% and 3.83% in Q1 2026, with a full-year margin consistent with current levels [28] Q&A Session Summary Question: Anticipation of additional share repurchases from the Ayers estate - Management does not anticipate any additional share repurchases from the Ayers estate based on current conversations [35] Question: Is mortgage banking on the right path? - Mortgage banking had a good year, with volume remaining stable and contributions turning positive, indicating the platform is on the right track [36][38] Question: Current M&A climate and optimism for additional deals - Management noted a lot of conversations in the industry regarding M&A, and while they will evaluate opportunities, customer focus remains a priority [40][42] Question: Loan growth and elevated paydowns - Elevated paydowns were noted in Q4, but management expects to achieve high single-digit growth without needing to hire additional staff [52][53] Question: Expense run rate and changes to compensation structure - Non-run rate expenses were identified, and management reiterated their expense guidance for 2026, indicating a disciplined approach to hiring and expenses [62][64] Question: Loan pipeline and client sentiment - The loan pipeline is strong, with clients showing positive sentiment and a willingness to invest in new projects [99][100]