Financial Data and Key Metrics Changes - For the full year 2025, net income was $130.1 million, or $2.89 per diluted share, on revenue of $446 million, reflecting a 9.7% year-over-year increase [12] - The pre-tax pre-provision ROA was 219 basis points, ROA was 136 basis points, and ROTCE was 13.5% [12] - Tangible book value per share grew by approximately 17% [11] - In Q4 2025, net income was $34.5 million, or $0.76 per diluted share, on revenue of $117 million, with a 12% year-over-year revenue increase [12][13] Business Line Data and Key Metrics Changes - Total loans increased to $7.5 billion at year-end, with annual growth of $3.3 million and a 22% increase in origination activity compared to the prior quarter [17] - Deposits were $7.6 billion for the quarter, down 2.3% from the prior quarter, primarily due to balance sheet management [17] - Net interest income reached a record high of $101 million in Q4, up 1.4% from the prior quarter, driven by loan growth and lower deposit costs [18] Market Data and Key Metrics Changes - The company is positioned as the largest local community bank and the second largest local commercial bank in Chicago, with significant growth opportunities in the market [5][7] - The company expects to cross the $10 billion asset threshold in 2026, which will enhance its competitive position [22] Company Strategy and Development Direction - The company aims to become the preeminent local commercial bank, focusing on organic growth and maintaining a people-first banking approach [5][6] - A new commercial payments business was launched, with six customers onboarded and additional customers in the pipeline [22] - The company emphasizes credit discipline and monitoring its portfolio closely to address issues quickly [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has evolved with elevated interest rates and increased macroeconomic uncertainty, but the company remained focused on serving customers and executing its strategy [11] - The outlook for net interest income is based on a forward curve assuming a 50 basis point decline in the Fed funds rate for 2026 [18] - Management expressed confidence in the company's competitive position and ability to capitalize on opportunities [23] Other Important Information - The board approved a 20% increase in the quarterly dividend, reflecting strong financial performance and confidence in future results [5][16] - The company repurchased approximately 346,000 shares and authorized a new repurchase program for up to 5% of outstanding shares [15][16] Q&A Session Summary Question: Areas of excitement for scaling up and efficiency - Management highlighted excitement around the commercial payments team and the potential for growth in the commercial banking space in Chicago [30] Question: Capital returns to shareholders and M&A environment - Management indicated a focus on maintaining flexibility with capital, returning excess capital to shareholders, and pursuing organic growth [32][34] Question: Loan growth outlook and segments driving growth - Management expects mid-single-digit loan growth, primarily driven by commercial banking categories [43] Question: Net interest income outlook for Q1 - Management noted that Q1 is typically a seasonally low quarter, but stable to growing NII is expected throughout the year [45][46] Question: Credit quality and net charge-offs outlook - Management provided guidance for net charge-offs in the range of 30-40 basis points for the upcoming year [50] Question: Commercial payments team and client types - Management clarified that clients include payroll processing companies and fintechs, with a deliberate onboarding process [72] Question: Impact of government shutdown on SBA business - Management stated that the impact was immaterial [76]