Financial Data and Key Metrics Changes - Total assets decreased to $9.8 billion from $10.4 billion, primarily due to reduced wholesale funding and higher cost deposits [11] - Total gross loans decreased by $244.6 million to $6.7 billion, attributed to higher prepayments and repayments [11] - Total deposits decreased by $514 million to $7.8 billion, driven by efforts to reduce higher cost deposits [12] - Diluted income per share for Q4 was $0.07, down from $0.35 in Q3 [13] - Net interest income decreased to $90.2 million from $94.2 million, with net interest margin dropping to 3.78% from 3.92% [13] - Non-interest income increased to $22 million from $17.3 million, driven by gains from the sale and leaseback of banking centers [13] Business Line Data and Key Metrics Changes - Cash and cash equivalents decreased by $160.7 million to $470.2 million [11] - Total investments decreased to $2.1 billion from $2.3 billion [11] - Broker deposits decreased from $550.2 million to $435.7 million [12] - Non-performing assets increased to $187 million, or 1.9% of total assets, from $140 million, or 1.3% [19] Market Data and Key Metrics Changes - Assets under management increased by $87.2 million to $3.3 billion, driven by higher market valuations [11] - The company sees growth opportunities in Venezuela, with nearly $2 billion in deposits and significant AUM [8] Company Strategy and Development Direction - The company has a three-year strategic plan focused on stabilizing, optimizing, and growing the organization [4] - Key initiatives include credit transformation, balance sheet optimization, and operational efficiency [5] - The company is investing in human capital and technology to enhance productivity and client experience [6] - A share repurchase program has been approved to recognize the intrinsic value of shares [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future and ability to enhance shareholder value [4] - The company is focused on improving credit quality and asset management, particularly in light of recent events in Venezuela [8][27] - Management anticipates loan growth of 7%-9% for the year, with a focus on improving the ratio of non-interest bearing deposits [26] Other Important Information - The company plans to continue executing on prudent capital management, balancing growth with buybacks and dividends [26] - The efficiency ratio is targeted to improve towards 60% by year-end [34] Q&A Session Summary Question: What metrics can be used to measure the progress of the three-year program? - Management highlighted credit quality improvements and disciplined loan origination as critical success metrics [30][31] Question: Are there any financial targets outlined for the next couple of years? - Management aims for a return on assets close to 1% and an efficiency ratio around 60% by year-end [34] Question: What specific drivers will help reduce expenses in 2026? - Management mentioned reducing higher cost deposits and optimizing marketing expenses as key drivers for expense reduction [37] Question: How does the company view the current asset quality and provisioning needs? - Management expects improvements in criticized loans and anticipates a provision impact of 40-45 basis points throughout the year [42] Question: How are recent events in Venezuela expected to impact deposit gathering efforts? - Management sees potential growth in international deposits due to favorable conditions in Venezuela, although it is still early to quantify the impact [44][45]