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 for Q4 2025 [3] - Net interest income grew by $5 million, or 5%, compared to the prior quarter, and increased by 14% year-over-year [4] - The net interest margin declined modestly to 2.87% compared to the previous quarter [4] - Total loans increased by $474 million, representing an 18% annualized growth rate, driven by $1 billion in originations [4] Business Line Data and Key Metrics Changes - The C&I business grew by 42% for the year, benefiting from talent recruitment and favorable borrower conditions [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 loan sale gains [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 company’s asset quality remained strong, with total loans classified as special mention and substandard decreasing by 10% to $112 million, or just 1% of total loans [5] - Non-performing loans to total loans stood at 0.2%, and non-performing assets to total assets were at 0.22% [14] 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 and improve profitability and operating scale [7] - The company aims to maintain a loan-to-deposit ratio under 100, with a focus on opportunistic earnings and robust deposit verticals [68] 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 [22] - The effective tax rate is expected to remain in the 23%-25% range quarterly, absent any changes in tax policy [16] - Management remains optimistic about continued organic growth efforts, as evidenced by the results of the current quarter [8] Other Important Information - The company did not repurchase any shares this quarter, as capital was utilized to support loan growth [7] - The quarterly cash dividend of $0.20 per common share marks the company's 116th consecutive quarterly cash dividend [7] Q&A Session Summary Question: Clarity on net interest income guidance - Management indicated that net interest income growth is expected to exceed loan balance growth due to the compounding effect of the larger balance sheet [21][22] Question: Commentary on loan sales post-merger - Management stated it is too early to provide precise figures on loan sales, but they expect to improve margins and reduce credit risk over time [23] Question: Expense line clarification - The recurring CRT premium expense is categorized under other expenses, similar to insurance premium expenses [24][25] Question: C&I growth expectations for 2026 - Management anticipates growth rates in the 7%-9% range for C&I, with a focus on talent recruitment and strong deposit growth [35] Question: Deposit growth outlook for Premier Banking - Management confirmed that the target for $2 billion-$3 billion in deposits by the end of 2027 remains intact, despite some seasonal fluctuations [38] Question: Deposit costs outlook for the year - Management expects deposit costs to continue decreasing, lagging behind rate cuts, and anticipates a steady improvement in margins [73][74]

Financial Data and Key Metrics Changes - Earnings per share reported at $0.30 on a fully diluted GAAP basis and $0.36 on a core basis [7] - Net interest income increased by $3 million compared to the prior quarter, driven by an increase in average net loans of $242 million [7] - Total loans increased by $373 million, representing a 14% annualized growth rate [8] - Net interest margin remained stable at 2.91% compared to the second quarter [7][8] - Operating expenses for the quarter were $76 million, including $4 million of restructuring charges [8] Business Line Data and Key Metrics Changes - Loan originations totaled $1 billion, resulting in loan growth of $373 million [11] - Commercial and industrial loans increased by 12% for the quarter [11] - Non-interest income increased by 5% to $12.3 million, primarily driven by strong swap demand linked to commercial growth [13] - The decision to outsource residential loan originations is expected to reduce fee and service income by approximately $2 million in the fourth quarter [14] Market Data and Key Metrics Changes - Total deposits increased by $203 million, with organic growth at $321 million before decreases in brokered CDs [12] - Premier Banking teams contributed $128 million of new deposits for the quarter [12] - Approximately 20% of new deposits are in non-interest bearing demand deposit accounts (DDA) [13] Company Strategy and Development Direction - The company is focusing on improving operating leverage and earnings through outsourcing residential loan originations and underwriting functions [8] - The strategic decision to outsource is expected to yield a pre-tax improvement of approximately $10 million in annual operating results [20] - The company aims for 7% to 9% annualized loan growth for 2026, predominantly driven by growth in commercial and industrial loans [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong asset quality, with non-performing loans at 0.39% of total loans [17] - The company anticipates modest short-term compression on margin in the fourth quarter due to seasonality and residual repricing of large legacy deposit relationships [17] - The outlook for 2026 includes expectations for steady net interest income growth in line with or exceeding high single-digit growth rates [22] Other Important Information - Capital levels remain robust with a common equity Tier 1 capital ratio of 10.6% and tangible book value per share of $19.52 [9] - The company did not repurchase any shares this quarter as capital was deployed for loan growth [9] Q&A Session Summary Question: Clarification on net interest income guidance - Management clarified that the 3% terminal rate refers to assumptions around Fed rate cuts, not net interest margin [27][28] Question: Update on Premier Bank's deposit growth - Management attributed deposit growth to newly hired teams and their acclimation to the bank [42] Question: Impact of restructuring on non-interest income - Management confirmed a $10 million pre-tax benefit from restructuring, with some headwinds expected in non-interest income [48][52] Question: Update on NDFI exposure and GovCon portfolio - Management stated that NDFI exposure is small and focused on commercial lending, with GovCon exposure being well-managed [58][64] Question: Expectations for ROA and deposit composition - Management expects to achieve a 1% ROA by early 2027, with current DDA composition at 20% [75][76]