Financial Data and Key Metrics Changes - Core EPS for Q4 2025 was $0.43 per share, exceeding consensus estimates, with a net interest margin (NIM) of 3.98%, core ROA of 1.45%, and core efficiency ratio of 52.8% [4] - Average deposits and total loans grew by 2.8% and 1.2% respectively, while net interest income increased by $47.2 million year-over-year to $427.5 million [4][7] - The provision for credit losses decreased by $4.3 million to $7 million, with non-performing loans (NPLs) rising four basis points to 94 basis points [5][6] Business Line Data and Key Metrics Changes - Fee income remained flat at 18% of total revenue, with gains in SBA offset by declines in wealth and mortgage [5] - Core non-interest income for Q4 was $24.3 million, down $200,000 from the previous quarter, with SBA gain on sale income increasing by $800,000 [14] - Core non-interest expense increased by $1.7 million to $74.3 million, primarily due to increased salaries and benefits [15] Market Data and Key Metrics Changes - Average deposit growth for the year was 6.1%, with significant contributions from money market accounts and CDs [9] - The company reported $98 million in non-performing loans, including $39.2 million in total SBA loans [6] Company Strategy and Development Direction - The company aims to grow fee income through its regional banking model and maintain a focus on low-cost deposit growth [5][10] - A portfolio of approximately $225 million in commercial loans was designated as held for sale to improve liquidity and capital ratios [12][13] - The company plans to limit operating cost increases to approximately 3% year-over-year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth despite seasonal headwinds and elevated payoffs, projecting continued growth in business banking and mortgage segments [28] - The guidance for NIM is expected to remain around 4% by the end of 2026, with a near-term dip anticipated due to rate cuts [12][40] - Management highlighted the importance of maintaining a balance between loan growth and capital generation, emphasizing disciplined capital deployment [31][32] Other Important Information - The company repurchased $23.1 million of its stock in Q4 2025, totaling 2.1 million shares for the year [6] - Jane Grebenc, Bank President and Chief Revenue Officer, will retire at the end of March 2026, marking a significant leadership transition [10] Q&A Session Summary Question: What are the expectations for net charge-offs and provisions in 2026? - Management expects charge-off guidance to be 25-30 basis points, with $1.5 million left to resolve on the dealer floor plan loan [19][20] Question: Can we expect additional loans to be moved off the balance sheet in 2026? - Management indicated that the loan sale is more of a one-off situation, focusing resources on other markets [23][24] Question: What are the expectations for loan growth in 2026? - The company anticipates loan growth to continue at a similar pace as 2025, despite elevated payoffs [28][30] Question: How should we think about the stock buyback strategy? - The buyback strategy is sensitive to stock price, with intentions to utilize the authority aggressively while maintaining capital ratios [31][57] Question: What is the outlook for NIM and deposit costs? - Management expects a dip in NIM in Q1 2026, with a gradual recovery to around 4% by year-end [60][61]

Financial Data and Key Metrics Changes - Core EPS for Q4 2025 was $0.79, representing an 88% increase year-over-year, driven by record total revenues of $124 million [3][14] - NIM increased by 10 basis points to 311 basis points, with average earning assets up over $650 million on a linked-quarter basis [4][14] - Core deposits rose by $1.2 billion year-over-year, with total deposits up approximately $800 million compared to the prior quarter [4][15] Business Line Data and Key Metrics Changes - Business loans grew over $175 million on a linked-quarter basis and over $500 million year-over-year, with significant contributions from new industry verticals [5][27] - Non-interest income for Q4 was $11.5 million, exceeding guidance [16] - The loan loss provision declined to $10.9 million, with the allowance to loans increasing to 91 basis points [16] Market Data and Key Metrics Changes - The company has a strong liquidity position, with a total capital ratio exceeding 16% and a common equity tier 1 ratio of 11.66% [6][17] - The company is focused on reducing its CRE concentration ratio to the mid-350% area [21] Company Strategy and Development Direction - The company is committed to organic growth, focusing on building out its commercial banking platform and industry verticals [6][10] - Plans for 2026 include modest NIM expansion in the first half and more substantial growth in the second half due to loan repricing opportunities [17][20] - The company aims to operate at a sub-50% efficiency ratio and continue attracting talented bankers to support growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted a strong environment for organic growth, with a target-rich marketplace [6] - The company expects to see significant growth in both revenues and loan portfolios in 2026, driven by loan repricing and core deposit growth [8][19] - Management expressed confidence in the company's ability to navigate market disruptions and capitalize on lending opportunities [6][9] Other Important Information - The company has added new capabilities in various sectors, including Fund Finance and Lender Finance, to enhance its commercial banking offerings [11][12] - The company is focused on geographic expansion, particularly in Manhattan and New Jersey [12] Q&A Session Summary Question: What industries accounted for the growth in business loan balances this quarter? - Approximately $400 million of the $500 million year-over-year growth in business loans came from new specialized industries, with healthcare being a significant contributor [27] Question: How much business do you have in New Jersey? - About 8% to 10% of the loan portfolio is in Northern New Jersey, with a deposit-to-loan ratio of 15%-20% [28] Question: How do you view the deposit growth pipeline and pricing? - The company is offering high twos to low threes on money market accounts to attract new customers, with an overall cost of deposits at $168 [33][34] Question: What is the current status of the rent-regulated loan book? - The 100% rent-regulated book is around $350 million, with maturities and repricings expected to be about $250 million for 2026 [36][38] Question: What is the strategy for deploying cash and securities? - The company is not rushing to buy securities and prefers to maintain flexibility on the balance sheet, with cash expected to be used for loans starting in the second half of the year [48][49]

Core Insights - Procter & Gamble (P&G) reported a net sales increase of 3% year-over-year for the first quarter of fiscal year 2026, reaching $22.4 billion, with organic sales growth of 2% [1][4] - Diluted earnings per share (EPS) rose by 21% to $1.95, while core EPS increased by 3% to $1.99 [1][6] - The company maintained its fiscal year guidance for sales and EPS growth, expecting organic sales growth to be in line with or up to 4% [11][12] Financial Performance - Operating cash flow for the quarter was $5.4 billion, with net earnings of $4.8 billion [2] - Adjusted free cash flow productivity was reported at 102%, indicating strong cash generation relative to net earnings [2] - P&G returned $3.8 billion to shareholders through dividends of $2.55 billion and share repurchases of $1.25 billion [2] Segment Performance - The Beauty segment saw organic sales growth of 6%, driven by innovation and pricing strategies [8] - Grooming segment organic sales increased by 3%, while Health Care segment organic sales rose by 1% [8] - Fabric & Home Care segment organic sales remained unchanged, and Baby, Feminine & Family Care segment organic sales also showed no growth [8] Cost and Margin Analysis - Reported gross margin decreased by 70 basis points year-over-year, with core gross margin down by 50 basis points [7][10] - Selling, general and administrative (SG&A) expenses as a percentage of sales declined by 20 basis points, reflecting improved productivity [9] - The operating margin decreased by 50 basis points, while core operating margin remained unchanged [10] Guidance and Outlook - P&G maintained its fiscal 2026 sales growth guidance in the range of 1% to 5%, with a net tailwind from foreign exchange expected to contribute approximately 1% [11] - The company anticipates diluted net EPS growth of 3% to 9% for fiscal 2026, with core EPS growth expected to be in line with or up to 4% [12] - P&G expects commodity cost headwinds of approximately $100 million and tariff-related costs of about $400 million for fiscal 2026 [13]

Financial Performance - The company's 3Q25 Core EPS was $083/share, a 9% increase compared to $076/share in 3Q24, driven by customer-focused formula-rate investments and new PA rates[16] - Year-to-date 2025 Core EPS reached $202/share, reflecting a 15% growth from $176/share in the same period of 2024, attributed to strong execution and financial discipline[16] - The company is raising its 2025 Core EPS guidance midpoint and narrowing the range to $250-$256/share, compared to the previous range of $240-$260/share and the 2024 result of $237/share[11, 16] - Year-to-date 2025 investments totaled $40 billion, approximately 30% higher than the same period in 2024, and the company is increasing its 2025 forecast to $55 billion from $50 billion, compared to $45 billion in 2024[11, 16] - A dividend of $0445/share was declared in September, consistent with guidance and representing approximately 5% growth compared to 2024[16] Strategic Initiatives and Growth Opportunities - The company's long-term pipeline demand from data centers has nearly doubled since February 2025, reaching 117 GW, while contracted demand has increased by over 30% to 38 GW[25] - The company filed its West Virginia Integrated Resource Plan (IRP) on October 1, 2025, which includes plans to build 1200 MW of CCGT and 70 MW of solar generation[12, 29] - The company expects to increase total transmission investments by 30% in its next 5-year plan, resulting in a total transmission rate base growth of up to 18% through 2030, with the rate base expected to more than double by 2030[31] Financial Outlook and Shareholder Value - The company is reaffirming its 6-8% Core EPS CAGR from 2025-2029, which, combined with the current dividend yield, represents a total shareholder return proposition of 10-12%[9, 40] - The company is reaffirming its 2025-2029 base investment plan of approximately $28 billion, with a significant increase in 2026-2030 expected to be announced on the 4Q25 earnings call[40]

Financial Performance - 2Q25 Core EPS was $052/share, compared to $051/share in 2Q24[15] - YTD25 Core EPS grew by 19% to $119/share, compared to $100/share in YTD24[15] - YTD25 Investments reached $25 billion, a 29% increase compared to $19 billion in YTD24[15] Investment and Growth - The company reaffirmed its 2025 Core EPS guidance and a 6-8% Core EPS CAGR from 2025-2029[9, 11] - The company reaffirmed its 2025-2029 Base Investment Plan of $28 billion, expecting a 9% Rate Base growth[11] - Transmission investments are expected to increase up to 20% in the next 5-year plan[28] Pennsylvania Investments - Pennsylvania accounts for approximately 35% of the company's Rate Base[18] - The company is investing $15 billion in Pennsylvania from 2025-2029, including nearly $10 billion in capital investments and ~$5 billion in operating expenses[22] Data Center Demand - Long-term pipeline demand for data centers (beyond 2029F) increased by over 80% since February 2025, reaching 11,130 MW[26] - Contracted demand for data centers in 2029F increased by approximately 25% since February 2025, reaching 2,695 MW[26]

Financial Performance - Organic sales grew by 2% in Q1-Q3 2025 [13] - The company estimates organic sales growth of 2% for FY 2025 [126] - Core EPS is expected to grow by 2-4% in FY 2025 [21, 129] - Adjusted free cash flow productivity was 105% in FY 2024 [21, 130] - The company has delivered 69 consecutive years of dividend increases [23] Business Segments Performance (Q1-Q3 2025) - Personal Health Care organic sales increased by 5% [14] - Family Care organic sales increased by 4% [14] - Grooming organic sales increased by 3% [14, 124] - Baby Care organic sales decreased by 2% [14] Strategic Initiatives - The company is implementing a 2-year non-core restructuring program [34, 36] - The company is targeting $1.8 billion per year in productivity results [33] - The company aims to improve media reach to 80% through brand superiority campaigns [90, 91] - The company is focusing on supply chain 3.0 to drive productivity [99, 101]