Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [11] - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4 [9] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [8] - The average loan-to-value of CRE loans remained steady at 49% [7] - Net charge-offs for Q4 were $5.4 million, down from $15.6 million in the prior quarter [8] Market Data and Key Metrics Changes - Total uninsured deposits were $9.3 billion, net of $0.9 billion in collateralized deposits, representing 44.6% of total deposits [9] - The company has $7.5 billion of unused borrowing capacity from the Federal Home Loan Bank, $1.3 billion from the Federal Reserve Bank, and $1.6 billion in unpledged securities [9] Company Strategy and Development Direction - The company plans to announce a new stock buyback program after approvals are received, with $12 million remaining under the current buyback program [4] - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5] - The effective tax rate for 2026 is expected to be between 20.5% and 21.5% [13] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [11] - The company expects deposit growth to range between 4% and 5% for 2026 [9] - Management noted that the local LA and New York landscape remains competitive, particularly with nearly $4 billion of maturing CDs in the first quarter [18] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [9] - The Tier 1 risk-based capital ratio increased to 13.27% from 13.15% in Q3 [13] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - Management assumes deposit betas in the 60% range, with market competition remaining rational in Q4 [17] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - Management noted some migrations into special mention but does not see any particular trends [20] Question: Have you seen an elevated level of competition for incremental loan growth? - Management observed strong competition in the C&I segment, with a decline in rates, while residential mortgage growth was strong [30][31]