Financial Data and Key Metrics Changes - The company ended 2025 with $6.4 billion in assets, up from $5.3 billion at the beginning of the year, marking nearly 50% growth [3] - Net income for the quarter was reported at $22.1 million or $1.15 per diluted share, with adjusted earnings of $23.3 million or $1.21 per diluted share, compared to $22.4 million or $1.17 per diluted share in the previous quarter [7] - Net interest income for the quarter was $63.5 million, an increase of $1 million from the last quarter, with a margin improvement to 4.47% [7][12] - Non-interest expenses for the quarter were $46.6 million, with adjusted non-interest expenses increasing by 2.7% from the previous quarter [8] Business Line Data and Key Metrics Changes - Loan production for the quarter was $220 million, down from late quarter but up $100 million compared to the same period last year [17] - Total deposits increased by approximately $43.5 million during the quarter, with core deposit expansion of $123.5 million [18] - Non-interest bearing accounts constituted 22.4% of total deposits at the end of the quarter [18] Market Data and Key Metrics Changes - The company anticipates loans as a percentage of average earning assets to be approximately 80% in Q1 2026, with a loan-to-deposit ratio of 88% [14] - The addition of Frontier's portfolio is expected to be accretive to net interest income but diluted to margin, with anticipated margin for 2026 between 4.2% and 4.35% [14] Company Strategy and Development Direction - The company is focused on using technology to improve service and efficiency, with a strong emphasis on data utilization [4] - Management is committed to organic growth initiatives while also pursuing M&A opportunities, with a strategic approach to capital deployment [21] - The integration of Frontier and MBC is expected to enhance asset generation depth and provide funding opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the credit environment and expects stable credit quality trends despite broader economic uncertainties [11] - The company aims to achieve more than $5 per share in earnings in 2026, supported by a strong balance sheet and strategic growth initiatives [3][20] - Management highlighted the importance of maintaining pricing discipline in a competitive environment [25] Other Important Information - The company repurchased 172,338 shares at a weighted average cost of $41.69 during the quarter, with 872,662 shares remaining under the repurchase authorization [9] - The conversion of Frontier systems is scheduled for mid-February, with anticipated cost savings by the end of Q1 [15] Q&A Session Summary Question: Does the margin guide include expected accretion from Frontier? - Yes, the margin guide includes the accretion for Frontier into 2026 [24] Question: Are there any competitive pressures on pricing or underwriting standards? - There is competition affecting pricing, but the company has decided to maintain higher pricing standards [25][26] Question: What types of loans are available for pullback from Frontier? - The loans are a combination of various types, estimated at around $50 million [33] Question: What is the outlook for cost savings from the Frontier merger? - The targeted cost savings of 23% remain a good baseline, with potential for improvement as operations progress [34][35] Question: What is the company's approach to capital management post-merger? - The company is open to both buybacks and M&A opportunities, depending on market conditions and capital needs [37][49]