Financial Data and Key Metrics Changes - The company reported a quarterly revenue increase of 21% year-over-year, with net interest income growing by 30% year-over-year [5][21] - Adjusted total revenue for Q4 2025 was $42.1 million, reflecting a 21% increase over Q4 2024 [21] - Net interest margin improved to 2.22%, up 55 basis points year-over-year [22] - Net income for Q4 2025 was $5.3 million, or $0.60 per diluted share, with adjusted net income of $5.6 million, or $0.64 per diluted share [21] Business Line Data and Key Metrics Changes - The banking-as-a-service (BaaS) initiatives generated over $1.3 billion in new deposits for 2025, more than tripling from the previous year [6] - The SBA business maintained a strong position with nearly $580 million in funded originations during 2025, despite industry challenges [7] - The company processed over $165 billion in payments volume, an increase of over 225% from 2024 [6] Market Data and Key Metrics Changes - Total loans as of December 31, 2025, were $3.7 billion, a 4% increase from the linked quarter but a 10% decrease from the previous year [26] - Total deposits as of December 31, 2025, were $4.8 billion, representing a 2% decrease compared to both September 30, 2025, and December 31, 2024 [26] Company Strategy and Development Direction - The company is focused on a digital-first banking model, emphasizing operational efficiency and disciplined expense management [5] - Strategic sale of approximately $850 million in single-tenant lease financing loans to Blackstone improved capital position and reduced exposure to lower-yielding assets [6] - The company aims to enhance credit quality by prioritizing higher credit quality borrowers in its SBA production, projecting a more measured production of approximately $500 million for 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance while building long-term shareholder value [11] - The company anticipates continued loan growth of 15%-17% in 2026, driven by strong pipelines across commercial lending verticals [27] - Management expects credit conditions to stabilize as problem loans are resolved and enhanced underwriting standards take effect [10] Other Important Information - The company recognized a provision for credit losses of $12 million in Q4 2025, primarily due to net charge-offs [25] - Non-performing loans increased to $58.5 million, with a ratio of 1.56% of total loans, primarily related to SBA guaranteed balances [25] Q&A Session Summary Question: What is the expected yield on SBA loans retained on the balance sheet? - Management indicated that they expect to hold an additional $94 million of guaranteed SBA loans on the balance sheet, priced at prime plus 1.5 [42] Question: What are the expectations for deposit repricing in the first half of the year? - Management expects continued decreases in deposit costs, particularly in the first quarter, due to maturing CDs and lower market rates [39][40] Question: What is the outlook for net charge-offs relative to the provision guidance? - Management indicated that approximately half of the provision guidance would be for charge-offs, with expectations for elevated levels in the first half of the year [60][61]

Core Insights - Juniper Research announced the winners of the Future Digital Awards for Fintech & Payments 2025, celebrating innovation in digital payments, banking, and fraud prevention [1][7] - The awards highlight significant contributions from various companies and individuals in the fintech sector, showcasing advancements in technology and services [1][7] Fintech Leadership - DailyPay was awarded Fintech & Payments Startup of the Year (Platinum) [1] - Chrissy Wagner, Senior Vice President at FIS, received the title of Fintech Leader of the Year (Platinum) [1] Banking Innovation - Huawei Mobile Finance Solution won Banking Innovation of the Year (Platinum) [2] - Mitek Systems Digital Fraud Defender was recognized as Fraud & Security Innovation of the Year (Platinum) [2] - Other notable winners include Prometeo Borderless Banking (Platinum) and Amdocs Agentic AI Platform (Platinum) [2] Banking Fraud Prevention - Alipay Tap! was awarded Payment Innovation of the Year (Platinum) [3] - Worldpay received the Omnichannel Payments Platform of the Year (Platinum) [3] - G+D Netcetera BIN Attack Score won in the Soft POS Innovation category (Platinum) [3] Sustainability in Payment Cards - Thales PVC-Free Payment Card received a Platinum award for its sustainability efforts [4] - FV Bank secured a Platinum award for Digital Currency Innovation, emphasizing the integration of traditional banking with digital asset services [4] Company Statements - Mitek emphasized the importance of multi-layered defenses against sophisticated fraud, highlighting their commitment to protecting customers [5] - Thunes celebrated their dual Platinum Awards for B2B and Cross-border Payments, reflecting their global impact on payment solutions [6]