With the merger, Hillebrand said customers would gain access to a broader branch presence across Louisville, Central, Eastern, and Northern Kentucky, as well as into the Cincinnati and Indianapolis metropolitan markets. He emphasized that “community banking isn’t about size, it’s about service,” adding that the focus is on “better, not bigger.”Hillebrand noted that Stock Yards’ recently announced addition of a Bowling Green market president underscores the company’s commitment to long-term growth across a c ...

Financial Data and Key Metrics Changes - The company reported a net loss of $2.5 million in Q4 2025, an improvement from a net loss of $18.9 million in Q3 2025, which included a restructuring charge of $7.3 million and additional provision expense of $8.1 million [7] - Loans held for investment decreased by $34.8 million, or 3.5%, in Q4 2025, ending at $963.9 million, with a total annual decrease of $102.7 million, or 9.6% [7] - Deposits increased by $12.5 million, or 1.1%, in Q4 2025, totaling $1.18 billion, with a year-over-year increase of $40.7 million, or 3.6% [8] - Shareholders' equity at quarter end was $87.6 million, down $23.4 million from the end of 2024, and tangible book value decreased to $17.22 per share from $17.90 per share in Q3 2025 [9] Business Line Data and Key Metrics Changes - The bank's net interest margin remained stable at 3.58%, down 3 basis points from Q3 2025, with net interest income of $11.2 million in Q4 2025, a decrease of about $100,000 from Q3 2025 but an increase of $500,000 from the same quarter last year [9] - Treasury management revenues grew by 69% compared to Q4 2024, indicating strong performance in this business line [3] Market Data and Key Metrics Changes - The company reported that 85% of its deposits were insured by the FDIC as of December 31, 2025, providing a strong safety net for depositors [8] - The liquidity ratio was over 18% at year-end, supporting efforts to reduce high-cost deposits and improve the bank's cost of funds [5] Company Strategy and Development Direction - The company has exited the SBA 7(a) lending business and is focusing on becoming the premier community bank in the Tampa Bay area, emphasizing organic growth in deposits and community engagement [2][3] - The strategic plan for 2026 includes fortifying the balance sheet and maintaining a culture of disciplined risk management to drive sustainable revenue growth [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the legacy SBA 7(a) business but expressed confidence in the bank's ability to manage future risks and improve asset quality [4][19] - The focus on credit risk management is a priority, with efforts to reduce non-performing and classified loans expected to improve in the coming quarters [19] Other Important Information - The provision for credit losses was $2 million in Q4 2025, significantly lower than $10.9 million in Q3 2025 and $4.5 million in Q4 2024 [12] - Non-interest income was negative $104,000 in Q4 2025, an improvement from the previous quarter but a decrease from $22.3 million in Q4 2024, primarily due to reduced gains from the sale of SBA loans [10] Q&A Session Summary Question: What is the specific allowance against the $171 million of unguaranteed government loans, and what's been the recent default experience? - The company indicated that approximately 13% of the $171.6 million in unguaranteed balances is covered by the allowance for credit losses, with a default rate lower than that [25] Question: What was the peak of the unguaranteed portion before the loan sale? - The unguaranteed portion was about $50.5 million higher at the end of Q3 2025 [28] Question: Can you discuss the growth in deposits and the reduction in deposit costs? - The growth in deposits is attributed to strong relationships with customers and effective management of deposit costs, with a reduction of nearly 13 basis points sequentially [35][36]

Core Insights - Freedom Financial Holdings, Inc. has appointed Pierre A. Abushacra to the Board of Directors of Freedom Bank of Virginia, effective immediately, bringing extensive operating experience and a commitment to innovation and community engagement [1][3] Company Overview - Freedom Bank of Virginia is a next-generation community bank focused on empowering clients through innovative business, commercial, personal, and mortgage banking solutions, with locations in Chantilly, Fairfax, Manassas, Reston, Tysons, and Vienna [4] Board Composition - Pierre A. Abushacra is the Founder of Kapa Capital, specializing in commercial real estate, and has a background in community banking from his previous board service at Bay Bank [2][3] - The addition of Mr. Abushacra is seen as a complement to the existing board members, enhancing the bank's ability to navigate the challenges and opportunities in the independent banking sector [3] Leadership and Vision - Mr. Abushacra expressed his honor in joining the board and highlighted his admiration for Freedom Bank's local leadership and commitment to client relationships, indicating a focus on collaboration for future success [4]

Financial Data and Key Metrics Changes - Operating earnings per share reached a record $2.16 for 2025, reflecting strong performance compared to 2024 [5] - Customer deposits increased by $449 million, with a 25% growth in consumer demand deposit account openings year over year [5] - Operating return on assets improved by 17 basis points to 1.28%, and net interest margin increased by 9 basis points to 3.51% [9][10] Business Line Data and Key Metrics Changes - Non-interest income, excluding certain gains and losses, was $277 million, up almost 7% year over year, with commercial fees growing by 8% [7][8] - The business banking team raised over $133 million in lower-cost operating deposits, contributing to overall deposit growth [5] - Loan growth was impacted by strategic actions that represented over $800 million in headwinds, yet organic loan growth was achieved [6][12] Market Data and Key Metrics Changes - Total deposits grew by $257 million, or 3.9%, with balanced growth across categories [14] - Municipal deposits decreased by $254 million, while commercial deposits remained stable [14] - The commercial pipeline increased by more than 10% year over year, indicating strong future growth potential [48] Company Strategy and Development Direction - The company aims to create long-term value by growing the business and enhancing customer service [5] - The acquisition of Blue Foundry Bancorp is expected to strengthen the company's footprint and community banking model [11] - The company plans to return to historical loan growth rates in the mid-single-digit range in 2026 [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit loan growth in 2026, supported by increased productivity and a strong pipeline [27][28] - The company anticipates stable credit conditions and a stable economic environment, which will influence the allowance for loan losses [30] - Management highlighted the importance of maintaining a diversified loan portfolio to support growth across various segments [38] Other Important Information - Operating expenses grew by 1.9% in 2025, with a normalized decrease of 2.7% when accounting for prior year expenses [9] - The company repurchased $59 million of common stock and increased its dividend, reflecting strong capital ratios [10][19] - The effective tax rate is projected to be between 18.5% and 19.5% for 2026 [20] Q&A Session Summary Question: Can you quantify the headwinds for loan growth in 2026? - Management noted over $800 million in headwinds from strategic actions in 2025, which are expected to moderate in 2026, allowing for a return to mid-single-digit growth [26] Question: What are the assumptions regarding pay downs in the loan portfolio? - Management indicated that they do not foresee significant changes in normal portfolio pay downs and prepayments year over year [28] Question: How will the loan mix change with new hires? - Management emphasized the strategy to grow all loan segments, including CRE and C&I, with a focus on maintaining a diversified loan book [38] Question: What are the expectations for deposit growth and cost of funds? - Management expressed confidence in deposit growth driven by consumer and small business segments, with the cost of deposits finishing December at 1.80% [45][46] Question: What is the outlook for commercial interest rate swap income? - Management stated that swap income correlates with originations and is expected to fluctuate based on larger deals [50] Question: What is the expected run rate for other fee income? - Management indicated that a normalized level for other fee income would be around $2.5 million [52]

Core Insights - Community banks are navigating a challenging environment characterized by changing interest rates, stricter regulations, and a focus on funding stability and credit discipline [1] - Blue Ridge Bankshares, Inc. (BRBS) and AmeriServ Financial, Inc. (ASRV) are highlighted as community-focused institutions with different operating models affecting their risk-return profiles [1][2] Company Overview - BRBS operates primarily through Blue Ridge Bank and is transitioning away from fintech activities to a more traditional community banking model [1] - ASRV is anchored by AmeriServ Financial Bank and has a long-standing wealth management and trust operation, enhancing its fee-based income alongside lending and deposits [1] Business Strategies - BRBS is simplifying its business model and strengthening governance through a bank-first strategy, while ASRV focuses on a relationship-driven approach supported by advisory and trust services [2] - Both companies are positioned to benefit from improved operating stability over time, but their risk-reward profiles differ [2] Stock Performance - Over the past three months, BRBS has underperformed with a 1.4% increase, while ASRV has risen by 9.3% [3] - In the past year, BRBS stock has increased by 28.5%, compared to ASRV's 20.2% gain [3] Valuation Metrics - BRBS has a trailing 12-month price-to-sales (P/S) ratio of 2.71X, above its three-year median of 1.14X, while ASRV's P/S ratio is 0.62X, above its median of 0.58X [4] - Both companies appear undervalued compared to the Zacks Finance sector average of 7.11X [4] Factors Supporting BRBS - BRBS's stock is bolstered by a strategic reset that reduces complexity and narrows its risk footprint, focusing on traditional community banking fundamentals [7] - The company is making progress on regulatory compliance and governance, which is expected to enhance market confidence over time [8] - Shareholder confidence is reinforced through capital deployment actions, including a special cash dividend and share repurchase program [9] Factors Supporting ASRV - ASRV benefits from a stable, relationship-driven deposit base that is largely independent of wholesale funding, allowing it to navigate rate volatility effectively [10] - The company's wealth and trust platform diversifies income and strengthens customer relationships, supported by a strategic alliance with Federated Hermes [11] - ASRV emphasizes disciplined execution and operational efficiency, which supports a consistent earnings profile [12] Investment Outlook - While both companies are positioned to benefit from improving rate dynamics, BRBS is seen as better positioned due to its strategic reset and positive momentum [13] - BRBS's valuation remains attractive compared to sector levels, suggesting potential for upside if execution continues to improve [14] - ASRV, while performing well, has seen its stock price rise above its long-term valuation norm, narrowing its margin of safety [14]

Core Insights - FS Bancorp, Inc. has appointed Omeed Salashoor as Senior Vice President and Director of Home Lending, bringing over 35 years of experience in mortgage banking [1][3]. Group 1: Appointment Details - Omeed Salashoor has a strong background in leading high-performing lending organizations across various markets, most recently serving as Producing Branch Sales Manager for CMG Home Loans in Bellevue, Washington [3]. - Donn Costa, Chief Home Lending Officer, expressed that Salashoor's community and customer focus makes him an ideal fit for 1st Security Bank [4]. Group 2: Personal Background and Values - Salashoor began his mortgage banking career by founding a company in Kirkland, Washington, and has a passion for helping individuals and families achieve homeownership and financial security [5]. - He values the commitment to community banking and responsible home lending that 1st Security Bank embodies, aligning with his professional ethos [5]. Group 3: Company Overview - 1st Security Bank of Washington operates twenty-seven branches across Washington and Oregon, providing loan and deposit services, including mortgage services at each branch [6].

Core Insights - Blue Ridge Bankshares, Inc. (BRBS) has seen a stock price increase of 33.7% over the past six months, outperforming the industry average of 19.7% and the S&P 500's gains of 9.6% and 15.7% respectively [1][2][8] Recent Developments - The company received notification from its primary regulator, the Office of the Comptroller of the Currency, terminating a Consent Order from January 2024, which is expected to enhance growth flexibility [2][11] - BRBS reported a solid increase in net interest income and noninterest income in its third-quarter 2025 results, supported by a one-time boost from recovering troubled credits and improved fee-based revenue [2][11] Strategic Initiatives - Management is focused on de-risking the balance sheet by exiting fintech/BaaS-related deposits and reducing non-core loan exposure, positioning the company for growth in traditional banking [3][12] - The removal of the Consent Order is seen as a significant catalyst for the stock, allowing investors to focus on the company's strategic direction [11][12] Financial Position - BRBS has a strong capital position, which supports shareholder returns through a special cash dividend and a share repurchase program, reflecting financial strength and regulatory affirmation [13] - The company's trailing 12-month price-to-sales (P/S) ratio is 2.8X, higher than the industry average of 2.3X and its three-year median of 1.1X, indicating a premium valuation [15][20] Challenges - Despite de-risking efforts, asset quality remains a concern as nonperforming loans increased sequentially in the recent quarter [14] - The bank faces challenges in rebuilding deposits organically after exiting fintech/BaaS, alongside managing interest-rate sensitivity and competitive funding conditions [14]

Core Insights - F&M Bank has promoted Mike Schnitkey to Agri-Finance and Northwest Ohio Market President, reflecting the bank's commitment to local leadership and community banking principles [1][5]. Company Overview - F&M Bank, established in 1897, is an independent community bank providing commercial and retail banking services across various counties in Ohio, Northeast Indiana, and Michigan [7]. Leadership and Experience - Mike Schnitkey has been with F&M Bank since September 1995 and has extensive experience in agricultural finance, overseeing agricultural lending operations and managing a diverse customer portfolio [2][3]. - He combines his agricultural expertise with commercial banking experience, providing tailored financing solutions to support business growth [3]. Community Involvement - Schnitkey has demonstrated a strong commitment to community service, holding leadership roles in local organizations such as the Henry County Soil & Water and the Ridgeville Telephone Company [4]. Strategic Growth - The promotion of Schnitkey aligns with F&M's strategy to empower local decision-makers and enhance service delivery, supporting the bank's broader growth objectives [5].

Core Viewpoint - Alpine Banks of Colorado has appointed Glen Jammaron as the new CEO and chairman, succeeding the late founder J. Robert "Bob" Young, who served for 53 years [1][2]. Company Overview - Alpine Banks of Colorado, through its subsidiary Alpine Bank, is an independent, employee-owned organization with assets of $6.8 billion, founded in 1973 and headquartered in Glenwood Springs, Colorado [3]. - The bank employs 890 people and serves approximately 170,000 customers, offering personal, business, wealth management, mortgage, and electronic banking services across Colorado [3]. - Alpine Bank has received a five-star rating from BauerFinancial, indicating superior performance among financial institutions in the U.S. [3]. Leadership Transition - Glen Jammaron has been with Alpine Bank for 40 years, previously serving as president and vice chairman, and aims to continue the legacy of community banking established by Bob Young [2]. - Jammaron expressed commitment to maintaining the bank's focus on serving Colorado communities as an independent, employee-owned institution [2].

Core Insights - Greene County Bancorp, Inc. has been recognized as one of Piper Sandler's Class of 2025 Sm-All Stars, ranking 9th out of 24 banks and thrifts, marking its ninth inclusion since 2004, the highest among its peers in this class [1][2]. Company Overview - Greene County Bancorp, Inc. serves as the holding company for the Bank of Greene County and its subsidiary Greene County Commercial Bank, providing community-based banking services in the Hudson Valley and Capital Region of New York State [3]. - The company caters to a diverse clientele, including individuals, businesses, municipalities, and other institutions, and is publicly traded on the Nasdaq Capital Market [3]. Performance Recognition - To achieve the All Star Bank status, companies must have a market capitalization below $2.5 billion and meet various criteria related to growth, profitability, credit quality, and capital strength, while outperforming industry metrics [2]. - The recognition underscores the resilience and sustainability of the company's business model, emphasizing its focus on community banking, credit quality, and relationship-based growth [2].