Financial Data and Key Metrics Changes - The company reported an 11% year-over-year revenue growth in Q4 2025, with operating earnings per share increasing by 13% to $0.71 [4] - The return on assets for Q4 was 1.22%, and the return on tangible common equity was 13.3% [4] - For the full year, operating earnings per share grew by 18%, from $2.30 to $2.71, with total revenue exceeding $1 billion [4][5] - The efficiency ratio improved by 264 basis points, and credit losses declined, contributing to overall performance improvements [4] Business Line Data and Key Metrics Changes - Retail and small business lending efforts surpassed $1 billion in annual production for the first time, alongside Novitas equipment finance [5] - The loan portfolio grew at an annualized pace of 4.4%, primarily driven by C&I and HELOC categories [10] - Non-interest income was reported at $40.5 million, down from the previous quarter, with growth in wealth management and treasury management offset by a seasonal decline in mortgage [12] Market Data and Key Metrics Changes - The company experienced a positive seasonality in public funds, with an increase of $293 million in deposits [9] - The cost of deposits improved by 21 basis points to 1.76%, while the loan-to-deposit ratio increased to 82% [9][10] - Deposits grew by 1% for the year, with a focus on customer and account growth [10] Company Strategy and Development Direction - The company aims to improve earnings durability by reducing securities duration and investing in talent and systems for interest rate risk management [7] - Expansion efforts included the successful conversion of American National Bank and Fort Lauderdale to the company's systems, along with new office openings in North Carolina [8] - The company plans to be more assertive in share buybacks due to strong capital build and favorable credit quality [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2026, citing a strong economy in their markets [15] - The competitive landscape remains challenging, but the company focuses on client service and employee culture to attract talent [39][40] - Management does not foresee significant impacts from tariffs on credit quality, indicating stability in asset quality [70] Other Important Information - The company was recognized for retail client satisfaction and as one of the top banks to work for, reflecting its commitment to culture and community engagement [6][7] - The company redeemed preferred stock during the year, enhancing returns to common shareholders [5] Q&A Session Summary Question: Balance sheet growth expectations for 2026 - Management expects balance sheet growth to depend on deposit growth, modeling a couple hundred basis points below loan growth [19] Question: Anticipated asset class and geographic loan leaders - C&I and owner-occupied CRE are expected to lead, with strong production in Florida and Novitas contributing positively [21] Question: Future share repurchase strategy - Management intends to be more assertive with buybacks in 2026 due to strong capital build and favorable credit quality [24] Question: Expense growth outlook - Management targets a 3%-3.5% growth rate in expenses, despite recent increases due to incentives and health insurance costs [41] Question: M&A opportunities - Management is focused on organic growth and sees limited M&A opportunities, preferring quality organizations over fixers [43][81] Question: Credit quality concerns related to tariffs - Management reports no significant impact from tariffs on credit quality, with customers managing the effects [70]