Group 1: Performance Strategy - Loan growth expectation: Management anticipates loan growth to reach a mid-single-digit percentage in 2026, with expenses expected to grow moderately at around 3% [1] - Net interest margin stabilization: The net interest margin is expected to stabilize around 5% by 2027 [1] - Capital return plan: The company hinted at a potential share buyback and is open to opportunistic acquisition opportunities, emphasizing that any actions must enhance the bank's fundamentals [1] Group 2: Corporate Governance and Supply Chain - Evergreen Bank integration: The integration of Evergreen Bank was completed in Q4 2025, leading to improved operational efficiency, but attention is needed on the realization of subsequent synergies [2] - Key area risks: The performance of the power sports portfolio (average credit score of 730) may face upward pressure from seasonal charge-off rates; the size of the syndicated loan book has shrunk by approximately 80% over the past five years, necessitating observation of its impact on asset structure [2] Group 3: Industry Policy and Environment - Interest rate policy sensitivity: Adjustments in the Federal Reserve's interest rate policy may affect the net interest margin (currently at 5.09%) and deposit costs (which have decreased to 115 basis points) [3] - Banking regulatory dynamics: In 2026, the Office of the Comptroller of the Currency (OCC) may strengthen scrutiny on capital adequacy and anti-money laundering for mid-sized banks, requiring attention to changes in compliance costs [3]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $7.4 million, compared to $9.3 million in Q3 2025 and $7.1 million in Q4 2024, while net income for the full year 2025 was $32.6 million, up from $24.1 million in 2024, representing a 35% increase year-over-year [4][14] - The company executed a securities loss trade, realizing a pre-tax net loss of $4 million from the sale of $64 million in securities available for sale, which is expected to improve the balance sheet flexibility [4][14] - Net interest margin increased by 11 basis points from Q3 and 49 basis points from Q4 last year, while the cost of deposits declined by 28 basis points from Q3 and 64 basis points from Q4 last year [15] Business Line Data and Key Metrics Changes - Loan outstandings were slightly down at just under $3 billion due to larger payoffs from asset sales and refinancing activity, with a focus on replacing those assets with quality new assets at better interest rates [8][9] - Core deposit balances, excluding brokered funds, increased approximately $212 million in Q4 and $223 million for the year, with growth seen across retail, commercial, and public fund deposits [15] Market Data and Key Metrics Changes - The watch list for loans increased but remains low at 1.7% of total loans, with 70% of the watch list related to the trucking industry, which is currently facing challenges [6] - The company is experiencing strong credit quality with no past dues over 30 days, no nonaccruals, and no substandard loans [6] Company Strategy and Development Direction - The company is focused on maintaining strong customer relationships and is actively pursuing new business opportunities, particularly in the wake of recent M&A activity in the market [12][13] - The strategy includes targeting high-quality retail deposits and business banking opportunities, leveraging community relationships to grow the business [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating loan growth to pick up with economic expansion and a strong position for growth [4] - The outlook for deposits is uncertain due to potential volatility from public funds, but the company aims for continued mid-single-digit growth in loans and deposits [26] Other Important Information - The company declared a $0.25 dividend payable on February 25, 2026, to shareholders of record as of February 11, 2026 [4] Q&A Session Summary Question: Can you walk us through some of the loan growth dynamics in the quarter? - The company experienced elevated payoffs, including a specific customer selling medical office buildings for over $50 million, with expectations for continued activity in the first quarter [20][21] Question: Can you update us on the amount of loans repricing over the balance of this year? - Approximately $400 million in fixed-rate loans are set to reprice in 2026, with an expected yield pickup of around 1.5%-2% [24] Question: Are you expecting continued mid-single-digit growth in loans and deposits this year? - The outlook for deposits is uncertain due to public funds volatility, but growth in retail and commercial deposits is anticipated [26] Question: What is the potential for additional securities portfolio repositionings in 2026? - The company will continue to evaluate its liquidity and cash needs for potential repositionings, with no set goals for 2026 [28] Question: What is the starting point for the margin given the recent repositioning? - The current margin is around 2.5%, with expectations for improvement throughout the year [30]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $7.4 million, compared to $9.3 million in Q3 2025 and $7.1 million in Q4 2024. For the full year 2025, net income was $32.6 million, up from $24.1 million in 2024, representing a 35% increase year-over-year [4][13] - The company executed a securities loss trade, selling $64 million of securities available for sale, resulting in a pre-tax net loss of $4 million. Without this loss, Q4 net income would have exceeded $10 million [4][13] - Net interest income improved, with the net interest margin increasing by 11 basis points from Q3 and 49 basis points from Q4 last year [14] Business Line Data and Key Metrics Changes - Loan outstandings were slightly down at just under $3 billion due to larger payoffs from asset sales and refinancing activities [8] - Deposit balances increased by over $162 million during the quarter, with growth in core, commercial, and retail deposits [9][14] - Core deposit balances, excluding brokered funds, increased approximately $212 million in Q4 and $223 million for the year [14] Market Data and Key Metrics Changes - The watch list for loans increased but remains low at 1.7% of total loans, with 70% of the watch list related to the trucking industry, which is currently facing challenges [6] - The company is experiencing a competitive market for loan opportunities, with a focus on maintaining strong customer relationships [9] Company Strategy and Development Direction - The company is focused on strong underwriting practices and maintaining a problem-free loan portfolio, which is seen as the foundation of its credit quality [6] - There is an emphasis on attracting new business through relationship-building and targeting high-value retail deposits from business owners and executives [10][12] - The company is evaluating opportunities for additional securities portfolio repositionings based on liquidity needs and cash deployment [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for growth in 2026, with expectations for loan growth to pick up as economic expansion begins [4] - The outlook for deposits is uncertain due to potential volatility from public funds, but there is an expectation of continued mid-single-digit growth in loans and deposits [25][26] Other Important Information - The company declared a $0.25 dividend payable on February 25 to shareholders of record as of February 11 [4] Q&A Session Summary Question: Can you walk us through some of the loan growth dynamics in the quarter? - The company experienced elevated payoffs, including a specific customer selling medical office buildings for over $50 million, and is actively working to replace those loans [20][21] Question: Can you update on the amount of loans repricing over the year and potential yield pickup? - Approximately $400 million in fixed-rate loans are set to reprice in 2026, with an expected yield pickup of around 1.5%-2% [24] Question: What is the outlook for deposit growth and any seasonality factors? - The outlook for deposits is uncertain due to public fund volatility, but growth in retail and commercial deposits is expected to continue [25][26] Question: What is the potential for additional securities portfolio repositionings in 2026? - The company regularly evaluates its securities portfolio and does not have set goals for 2026 but will continue to assess opportunities [28] Question: What is the starting point for the margin given the recent repositioning? - The current margin is around 2.5%, with expectations for improvement throughout the year [30]

Financial Data and Key Metrics Changes - For Q4 2025, net income was $22.9 million, or $0.85 per diluted share, compared to $18.6 million, or $0.69 per diluted share in the prior quarter [9] - Return on average assets was 1.25%, and return on average equity was 15.41%, indicating continued profitability improvement [9] - Core earnings per share increased by 24% from the prior year [4] - Net interest income rose by 1.3% from the prior quarter to $62.1 million, with net interest margin expanding 7 basis points to 3.56% [10] Business Line Data and Key Metrics Changes - Total core deposits grew by $78 million during Q4, with gains in interest-bearing demand, savings, and money market balances [6] - Total loan portfolio declined by $78 million from the prior quarter, with a full-year decline of $44 million driven by a decrease in residential mortgage, home equity, and consumer portfolios [6][7] - Commercial mortgage and construction portfolios showed strong growth, with a 10% year-over-year increase [32] Market Data and Key Metrics Changes - Hawaii's economy remains resilient despite macroeconomic uncertainty, with strong construction activity in both public and private sectors [4] - Non-interest-bearing demand deposits represented 29% of total deposits, indicating a healthy deposit base [6] Company Strategy and Development Direction - The company is focused on organic growth, diversification, and operational excellence, aiming for consistent earnings growth and enhanced shareholder returns [4] - A strategic partnership with Korea Investment & Securities was signed to expand international reach and create new deposit opportunities [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, guiding for low single-digit growth in net loans and deposits [8] - The company plans to continue investing in technology to drive returns and efficiency while managing expenses [35] Other Important Information - The board declared a first-quarter cash dividend of $0.29 per share, an increase of 3.6% from the prior quarter [13] - A new share repurchase authorization for up to $55 million in 2026 was approved, reflecting strong earnings and capital position [14] Q&A Session Summary Question: Delay in new loan fundings - Management confirmed that delayed closings are expected to be weighted more towards the second quarter of 2026 [23] Question: Spot rate on deposit costs - The deposit spot rate at year-end was 89 basis points [24] Question: Loan growth outlook - Management indicated that loan growth is expected to be slower in the first quarter but may accelerate later in the year [43] Question: Drivers behind payoffs and paydowns - Payoffs were attributed to a smaller construction portfolio, impacting loan growth [47] Question: Competitive landscape for deposits - Core deposit growth was driven by both new clients and deepening relationships with existing clients [50]

Group 1 - The total balance of RMB loans in financial institutions reached 271.91 trillion yuan by the end of Q4 2025, with a year-on-year growth of 6.4%, and an annual increase of 16.27 trillion yuan [1] - Loans to enterprises and institutions showed a rebound in growth, with the balance of RMB and foreign currency loans reaching 186.21 trillion yuan, a year-on-year increase of 8.9%, and an annual increase of 15.24 trillion yuan [1] - The balance of RMB inclusive micro and small loans reached 36.57 trillion yuan, growing by 11.1% year-on-year, which is 4.7 percentage points higher than the overall loan growth rate, with an annual increase of 3.63 trillion yuan [1] Group 2 - Real estate loans experienced a slowdown, with a balance of 51.95 trillion yuan by the end of Q4 2025, reflecting a year-on-year decrease of 1.6%, and an annual reduction of 96.36 billion yuan [2] - The number of technology-based small and medium-sized enterprises receiving loan support reached 275,000, with a loan acquisition rate of 50.2%, which is 2 percentage points higher than the previous year [2] - The balance of household loans in RMB and foreign currency reached 83.28 trillion yuan, showing a year-on-year growth of 0.5%, with an annual increase of 4.41 trillion yuan [2]

Financial Data and Key Metrics Changes - In 2025, Five Star Bancorp achieved a year-over-year growth in total loans held for investments of 15%, total deposit growth of 18%, net income growth of 35%, and an increase in earnings per share of 28% to $2.90 per share [5][6] - Financial highlights for the fourth quarter include $17.6 million in net income, earnings per share of $0.83, return on average assets of 1.50%, and return on average equity of 15.97% [5][6] - The net interest margin expanded 10 basis points to 3.66%, and the total cost of deposits declined by 21 basis points to 2.23% [5][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $187.7 million, or 19% on an annualized basis, in the fourth quarter, while total deposits increased by $97.6 million, or 10% on an annualized basis [6] - The commercial real estate portfolio saw significant growth, increasing by $161.4 million in the fourth quarter and $448.5 million for the year [7] Market Data and Key Metrics Changes - Non-wholesale deposits increased by $139.1 million during the fourth quarter and $738.1 million during the year, while wholesale deposits decreased by $41.4 million during the quarter and $95 million during the year [8][9] - Total non-interest-bearing deposits accounted for 26% of total deposits, with approximately 61% of deposit relationships totaling more than $5 million [9] Company Strategy and Development Direction - The company plans to further develop all business verticals while expanding into new markets, emphasizing a blend of technology and personalized service [16] - Five Star Bancorp aims to maintain a focus on innovation and service excellence, with a commitment to building deep, meaningful relationships with clients [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline for 2026, indicating that while growth may not match the previous year, a target of 10% growth on both sides of the balance sheet is achievable [24][25] - The competitive landscape for deposits is described as very competitive, with a focus on core deposit growth as a competitive advantage [23][24] Other Important Information - The company successfully reduced its balance of wholesale deposits by $95 million, or 17%, in 2025, while growing non-wholesale deposits by 25% [6][7] - A cash dividend of $0.25 per share was announced, marking the first increase since April 2023 [7] Q&A Session Summary Question: Drivers behind the acceleration in loan originations - Management noted strong performance across all verticals, particularly in food and agriculture, with seasonal factors contributing to growth [21] Question: Competitive landscape for deposits - Management acknowledged a highly competitive environment for core deposits but emphasized their business development team's effectiveness in attracting core relationships [22][23] Question: Expense growth outlook - Management indicated that expenses are expected to grow at a rate of 1.48%-1.55% of total assets in 2026, accommodating growth and regular maintenance [35][36] Question: Capital comfortability and outlook - Management expressed confidence in maintaining capital positions with a 10% growth rate, but noted that higher growth rates would necessitate a capital event in the future [44][45]

Financial Data and Key Metrics Changes - The company reported a 17.8% increase in diluted earnings per share for the full year of 2025, with diluted EPS at $0.90 for the fourth quarter compared to $0.96 in the linked quarter [5][21] - Net interest income was $43 million for the fourth quarter, consistent with the third quarter, while the net interest margin (NIM) was 4% for the fourth quarter, down from 4.05% in the linked quarter [21][22] - Deposits remained steady at $3.87 billion at the end of the fourth quarter, with a full-year increase of $253 million or 7% from year-end 2024 [22][23] - Tangible book value per share increased to $29.05 as of December 31, 2025, compared to $28.14 as of September 30, 2025 [25] Business Line Data and Key Metrics Changes - Loans held for investment increased by $91 million to $3.14 billion in the fourth quarter, primarily due to organic growth in multifamily property loans, direct energy loans, and other commercial loans [11] - The indirect auto loan portfolio totaled $241 million at the end of the fourth quarter, relatively unchanged from the linked quarter, with a focus on maintaining credit quality [16][19] - Non-interest income was $10.9 million in the fourth quarter, flat compared to $11.2 million in the linked quarter, with mortgage banking revenues declining due to seasonal factors [20] Market Data and Key Metrics Changes - The loan portfolio in major metropolitan markets of Dallas, Houston, and El Paso increased by $15 million or 5.8% annualized to $1.03 billion [14] - The Houston market is highlighted as a key growth area, with the Bank of Houston acquisition expected to enhance the company's presence in this fast-growing region [6][15] Company Strategy and Development Direction - The company is focused on expanding its lending team across high-growth Texas markets and pursuing accretive M&A opportunities, including the acquisition of Bank of Houston [5][6] - The merger with Bank of Houston is projected to be approximately 11% accretive to earnings in 2027, with a tangible book value earnback of less than three years [8] - The company aims to enhance its technology and systems to support efficient growth and is open to additional acquisitions that align with its strategic goals [98][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth accelerating to a mid to high single-digit growth rate in 2026, driven by new hires and the Bank of Houston acquisition [9][13] - The company remains well-capitalized and is focused on returning income to shareholders through dividends and share buybacks [10][25] - Management acknowledged potential headwinds in the first quarter of 2026 from expected payoffs in the multifamily property portfolio [14] Other Important Information - The company recorded a $1.8 million provision for credit losses in the fourth quarter, up from $500,000 in the linked quarter, primarily due to strong loan growth [24] - The cost of deposits decreased by 9 basis points to 2.01% compared to the linked quarter, with expectations for a modest decline in the cost of funds in the first quarter [23] Q&A Session Summary Question: NIM outlook and loan growth - Management indicated that while they aim to keep NIM stable, there may be some compression due to competitive pressures and loan growth dynamics [28][29][30] Question: Deposit growth expectations - Management believes they can reduce the deposit costs of Bank of Houston's deposits over time, which may help offset NIM pressures [31] Question: M&A strategy - The company is not pursuing aggressive acquisitions but is open to opportunities that align with their strategic goals, including potential deals beyond Houston [32][33] Question: Payoffs and loan growth - The fourth quarter saw fewer payoffs than previous quarters, aiding net growth, but management anticipates some payoffs in the first quarter of 2026 [40][41] Question: Indirect auto loan portfolio quality - Management noted that the portfolio remains in good condition, with a focus on maintaining high credit quality despite some shifts in borrower credit scores [44][48] Question: Mortgage banking and fee income - The company is actively hiring mortgage producers to prepare for a potential upturn in volumes and is focused on maintaining fee income growth [51][52]

Financial Data and Key Metrics Changes - The company reported a 17.8% increase in diluted earnings per share for the full year of 2025, with diluted EPS at $0.90 for Q4 2025 compared to $0.96 in the linked quarter [5][22] - Net interest income was $43 million for Q4 2025, consistent with the previous quarter, while the net interest margin (NIM) was 4% compared to 4.05% in the linked quarter [22][23] - Deposits held steady at $3.87 billion at the end of Q4 2025, with a year-over-year increase of $253 million or 7% [23][24] - The allowance for credit losses to total loans held for investment ratio was 1.44%, stable from the prior quarter, with a provision for credit losses of $1.8 million in Q4 compared to $500,000 in the linked quarter [24][25] Business Line Data and Key Metrics Changes - Loans held for investment increased by $91 million to $3.14 billion in Q4, driven by organic growth in multifamily property loans, direct energy loans, and other commercial loans [12] - The indirect auto loan portfolio remained relatively unchanged at $241 million, with a focus on maintaining credit quality [17][20] - Non-interest income was $10.9 million in Q4, flat compared to $11.2 million in the linked quarter, with a decline attributed to seasonal factors in mortgage banking revenues [20][21] Market Data and Key Metrics Changes - Loan growth in major metropolitan markets of Dallas, Houston, and El Paso increased by $15 million or 5.8% annualized to $1.03 billion [15] - The Houston market is highlighted as a key growth area, with the Bank of Houston acquisition expected to enhance the company's presence in this fast-growing region [6][16] Company Strategy and Development Direction - The company is focused on expanding its lending team in high-growth Texas markets and pursuing accretive M&A opportunities, including the acquisition of Bank of Houston [5][6] - The merger with Bank of Houston is projected to be approximately 11% accretive to earnings in 2027, with a tangible book value earned back in less than three years [9] - The company aims to enhance its earnings through organic growth and strategic acquisitions while maintaining a strong capital position [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth accelerating to a mid to high single-digit growth rate in 2026, driven by new hires and the Bank of Houston acquisition [10][14] - The company anticipates some headwinds in Q1 2026 from expected payoffs in the multifamily property portfolio but remains confident in its growth strategy [15][41] - Management emphasized the importance of maintaining credit quality and managing expenses while pursuing growth opportunities [20][81] Other Important Information - The company declared a quarterly dividend of $0.17 per share, marking its 27th consecutive dividend [11] - Tangible book value per share increased to $29.05 as of December 31, 2025, compared to $28.14 at the end of Q3 2025 [26] Q&A Session Summary Question: NIM outlook and loan growth impact - Management acknowledged the potential for NIM compression due to competitive pressures but aims to keep it stable [29][30] Question: Deposit growth expectations - Management believes they can reduce the deposit costs of Bank of Houston's deposits over time, which may offset NIM pressures [33] Question: M&A strategy and future acquisitions - The company is not pursuing aggressive acquisitions but is open to opportunities that align with their strategy [34] Question: Loan growth expectations and payoffs - Management noted that Q4 had fewer payoffs than previous quarters, which aided net growth, but expects some payoffs in Q1 2026 [41][42] Question: Indirect auto loan portfolio quality - Management provided insights into the credit quality of the indirect auto portfolio, emphasizing its stability despite some minor credit score fluctuations [44][48] Question: Mortgage banking and fee income drivers - The company is focused on hiring mortgage producers to enhance volume and is exploring other fee income opportunities [51][52]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.23 on a fully diluted GAAP basis and $0.41 on a core basis [3] - Net interest income grew by $5 million, or 5%, compared to the prior quarter, and increased by 14% compared to the prior year quarter [4] - The net interest margin declined modestly to 2.87% compared to the third quarter [4] - Total loans increased by $474 million, representing an 18% annualized growth rate, driven by $1 billion in originations [4][10] - Asset quality remained strong, with non-performing loans to total loans at 0.2% and non-performing assets to total assets at 0.22% [13] Business Line Data and Key Metrics Changes - The C&I business grew by 42% for the year, benefiting from talent recruitment and favorable conditions for borrowers [9] - Non-interest income decreased by $3.3 million to $9 million during the quarter, primarily due to lower title fees and a reduction in the gain on sale of loans [11] - Total deposits increased by $528 million, with $323 million driven by organic growth across various business lines [10] Market Data and Key Metrics Changes - The Premier Bank team grew deposits by $90 million, or 37%, from the linked quarter, with a weighted average cost of their deposit portfolio declining by 36 basis points to 2.28% [10] - Approximately 21% of the new deposits are in non-interest-bearing DDA accounts [10] Company Strategy and Development Direction - The company announced a merger agreement with Flushing Financial Corporation, which is expected to enhance organic growth initiatives in New York [6][7] - The merger is anticipated to improve profitability and increase operating scale, providing meaningful upside to shareholders [7] - The company remains focused on continued organic growth efforts, which have shown success in the current quarter [8] Management's Comments on Operating Environment and Future Outlook - Management expects high single-digit growth in net interest income for the year, despite the typical seasonal slowdown in Q1 [21] - The effective tax rate is expected to remain in the 23%-25% range quarterly, absent any changes in tax policy [16] - The company anticipates continued strong asset quality, with low levels of criticized and classified loans [13] Other Important Information - The company did not repurchase any shares this quarter, as capital was utilized to support loan growth [6] - The quarterly cash dividend of $0.20 per common share was approved, marking the 116th consecutive quarterly cash dividend [6] Q&A Session Summary Question: Clarity on net interest income guidance - Management indicated that net interest income growth will likely exceed loan balance growth due to the compounding effect of the larger balance sheet [21] Question: Commentary on loan sales post-merger - Management stated it is too early to provide precise figures on loan sales, as they are currently reviewing portfolios [22] Question: Expense line clarification - The recurring CRT premium expense is categorized under other expenses, similar to insurance premium expenses [23] Question: C&I growth expectations for 2026 - Management expects C&I growth rates to remain in the 7%-9% range, with strong deposit growth anticipated [35] Question: Deposit growth outlook for Premier Banking - Management confirmed the target of $2 billion-$3 billion in deposits by the end of 2027 remains intact [39] Question: Deposit costs outlook for the year - Management expects deposit costs to decrease, lagging behind rate cuts, and anticipates steady improvement in margins [76]

Financial Data and Key Metrics Changes - Webster Financial Corporation reported a 17% ROTCE and a 1.2% ROA for the full year 2025, with EPS increasing by 10% compared to the previous year [8] - Loans grew by 8% and deposits by 6% year-over-year, while tangible book value per share increased by 13% [8] - The company repurchased 10.9 million shares, enhancing capital distributions to shareholders [8] Business Line Data and Key Metrics Changes - In the fourth quarter, loans increased by $1.5 billion or 2.8%, with a full-year growth of 7.8%, primarily driven by commercial loan categories [14] - Classified commercial loans decreased by 7% and nonperforming loans were down 8%, indicating progress in credit remediation [10][18] - HSA Bank is expected to drive $1 billion-$2.5 billion in incremental deposit growth over the next five years, with $50 million-$100 million growth anticipated in 2026 [12] Market Data and Key Metrics Changes - The overall asset quality remains solid, with non-performing assets down 8% and commercial classified loans down 7% [18] - The company operates from a strong capital position, with capital ratios above well-capitalized levels [18] Company Strategy and Development Direction - The company aims to enhance its strategic advantages by investing in non-traditional banking verticals, including HSA Bank and Ametros [8] - Webster Financial is focused on maintaining profitability while growing its loan portfolio, with a loan growth forecast of 5%-7% for 2026 [19][62] - The company is adapting to a supportive macroeconomic environment and regulatory changes, which are expected to benefit its growth trajectory [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with robust capital levels and a strong funding and liquidity profile [9] - The outlook for 2026 anticipates continued growth in loans and deposits, with expected revenue of $3 billion [19] - Management highlighted the importance of maintaining a balance between growth and risk management in the current competitive landscape [21][62] Other Important Information - The company has made significant investments in technology and marketing to enhance client experience and drive account openings in HSA [11][33] - The acquisition of SecureSave is expected to complement the company's offerings in emergency savings accounts, although it is characterized as a relatively small deal [131][134] Q&A Session Summary Question: Update on loan growth and partnership with Marathon - Management indicated that while the partnership is operational, it has not yet materially impacted loan growth, expecting a positive income of $2 million from the joint venture [29][30] Question: Expense trends related to investments - Most investments are focused on marketing and client outreach to identify potential HSA account holders, with technology investments already in place [31][33] Question: Impact of potential changes in Category IV threshold - Management noted that while it could reduce expenses, it does not significantly alter the strategic growth outlook for the bank [38][40] Question: NIM trajectory for early 2026 - The company expects to maintain a NIM of around 3.35% throughout 2026, with some seasonal variability [42] Question: Loan growth guidance and deposit mix - Management provided a conservative loan growth forecast of 5%-7% for 2026, emphasizing a focus on profitability and capital allocation [62] Question: HSA account openings during open enrollment - The company reported a positive trend in HSA account openings, slightly ahead of the previous year, with expectations for continued growth [85] Question: Capital management and buyback activity - Management indicated a potential for continued share repurchases in 2026, with a focus on maintaining a CET1 ratio above 11% [88][89]