Gisela Young AC +1-212-816-8349 gisela.young@citi.com Vi e w p o i n t | 17 Feb 2026 16:14:10 ET │ 10 pages US Economics Bank balance sheet – Loan growth drives asset growth CITI'S TAKE Total assets on bank balance sheets increased by around $1.1 trln in year over year terms as of February 4th. Most of the growth in assets came from loans and leases which increased by $838 bln over the year. Looking within the loan categories, the largest increase was in loans to non-depository financial institutions which ...

Financial Data and Key Metrics Changes - As of December 31, 2025, the company surpassed $1.1 billion in total assets, achieving record quarterly and annual earnings, with full-year net income of approximately $16.65 million, reflecting a nearly 27% increase compared to 2024 [2][9][18] - The return on average equity reached nearly 15% on a GAAP basis and 21.6% on a core basis, indicating strong profitability metrics [9][10] - Net income for the fourth quarter was $4.85 million, an increase of about $500,000 from the third quarter and over $900,000 from the prior year's quarter [10][11] Business Line Data and Key Metrics Changes - Net interest income rose by more than $800,000 quarter-over-quarter to $11.87 million, supported by higher loan balances and improved funding costs [11][16] - Non-interest income totaled $1.73 million for the quarter, remaining well above year-ago levels despite lower loan prepayment activity [12][16] - Gross loans ended the year at $958.79 million, reflecting a year-over-year growth of 19.2% [19] Market Data and Key Metrics Changes - Total deposits reached $931.75 million, representing year-over-year growth of 20.7% [19] - Non-interest income for 2025 was $6.77 million, showing a 46.5% year-over-year growth [20] - The allowance for credit losses to loans ratio stood at 1.07%, with non-performing assets to total assets ratio at 0.32%, indicating strong credit quality [21][22] Company Strategy and Development Direction - The company aims to roll out a new subsidiary for HUD and FHA-insured financing solutions in early 2026, targeting multifamily and healthcare properties to diversify revenue [3][4] - The focus remains on disciplined growth, conservative risk management, and building long-term relationships with customers [26] - The company is positioned for the next phase of disciplined growth, with expectations to maintain profitability while expanding its asset base [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a quarterly earnings per share range of $0.18-$0.21, driven by loan growth and stable funding costs [40][41] - The company anticipates loan growth of 25% or higher, supported by strong relationships with loyal customers [43][56] - Management highlighted that the infrastructure is in place to support growth without significantly increasing costs, indicating a positive outlook for scaling operations [57][58] Other Important Information - The company celebrated its 25th anniversary in 2025, marking a milestone in its evolution into a high-performing institution [2][3] - The largest institutional investor, AllianceBernstein, increased its economic ownership in the company, reflecting confidence in its strategy and governance [4][5] Q&A Session Summary Question: Opportunities for bridge to HUD financing - Management discussed the potential for growth in the skilled nursing and senior housing sectors, expecting to reach $250 million in two to three years, with long-term goals of $1 billion to $2 billion [31][33] Question: EPS guidance assumptions - Management indicated that the EPS guidance of $0.18-$0.21 is based on current performance, with expectations for loan growth and stable margins [40][41] Question: Loan growth sustainability - Management expects sustainable loan growth of 25% or higher, supported by strong customer relationships [43] Question: AllianceBernstein's increased exposure - Management clarified that the preferred equity structure is designed to simplify ownership and that further conversions to common stock are anticipated [44][45] Question: Sectors driving loan growth - Management emphasized that strong relationships with customers mitigate stress in portfolios, driving consistent loan growth [54][56] Question: Regulatory thresholds impacting growth - Management reassured investors that the infrastructure is in place to support growth without significant cost increases, indicating readiness for scaling beyond $1 billion in assets [57][58]

Core Insights - JPMorgan's loan book accelerated in Q4 2025, with significant growth in wholesale lending and credit cards, indicating a strategic focus on areas where the bank has scale advantages [1][2] Loan Growth and Composition - As of December 31, 2025, total loans reached $1.49 trillion, reflecting a 4% sequential increase and an 11% year-over-year growth, driven primarily by wholesale loans which rose 5% quarter-over-quarter and 17% year-over-year to $843.4 billion [2][9] - Within the consumer loan segment, credit card loans showed the strongest growth, increasing 5% sequentially and 6% year-over-year to $247.8 billion, while other consumer loans (excluding cards) grew modestly by 2% to $402.3 billion [3][9] Strategic Partnerships - In January 2026, JPMorgan signed an agreement to become the new issuer of Apple Card, which is expected to add approximately $20 billion in card balances to Chase, enhancing JPMorgan's presence in the U.S. card market [4] Interest Income and Projections - A lower interest rate environment is anticipated to boost borrowing and refinancing, supporting loan growth despite potential pressure on net interest income (NII). JPMorgan expects NII to reach approximately $103 billion in 2026, a 7.4% increase from $95.9 billion in 2025 [5] Peer Comparison - As of December 31, 2025, Bank of America reported total loans and leases of $1.17 trillion, up 8% year-over-year, with commercial loans growing 12% [6] - Citigroup's loans totaled $752 billion, with corporate loans growing 14% year-over-year, while consumer loans increased by 4% [7] Valuation and Earnings Estimates - JPMorgan shares have appreciated by 3.8% over the past six months, and the bank trades at a price-to-tangible book (P/TB) ratio of 2.98X, below the industry average [8][10] - The Zacks Consensus Estimate projects a 5.1% increase in JPMorgan's earnings for 2026, with a further growth rate of 7.6% expected for 2027 [11]

Beberman said January credit results were “good numbers” and came in around expectations. He also flagged a seasonal increase in February, though he expects it to improve year-over-year. He said the company expects metrics to move “near 8” (but “not all the way to 8%”) as seasonal factors play out.He said customers have adjusted household budgets to cope with what he described as 30% to 35% compounded inflation post-COVID, and Bread is seeing consumers remain “choiceful” about what and when they purchase. W ...

Core Insights - Wells Fargo & Company (WFC) anticipates loan growth to accelerate in 2026, primarily driven by credit cards and auto lending [1][5] - The bank's credit card portfolio has been a significant growth driver, with plans for new product launches targeting wealth-management clients [2] - Auto lending is gaining momentum through partnerships with major car manufacturers like Volkswagen and Audi, while the mortgage segment is expected to remain flat due to high interest rates [3][4] Loan Growth Outlook - Management expects mid-single digit loan growth in 2026, supported by solid consumer spending and credit quality [4][5] - The removal of the Federal Reserve's asset cap provides Wells Fargo with more flexibility for organic growth after years of regulatory constraints [4] Peer Comparison - Bank of America (BAC) reported net loans and leases of $1.17 trillion as of December 31, 2025, reflecting an 8.3% increase from the previous year [6] - PNC Financial has experienced a 5.5% CAGR in loans over the past six years and expects average loans to rise by 5% in 2026 [8][9] Price Performance and Valuation - Wells Fargo's shares have increased by 15.6% over the past six months, outperforming the industry growth of 6.9% [10] - The bank's current price-to-earnings (P/E) ratio is 13.14X, which is below the industry average of 14.64X [14] - Earnings estimates for 2026 and 2027 indicate year-over-year growth of 9.9% and 12.8%, respectively [17]

Summary of East West Bancorp Conference Call Company Overview - **Company**: East West Bancorp (NasdaqGS:EWBC) - **Industry**: Banking - **Date of Conference**: February 10, 2026 Key Points 1. Growth Outlook for 2026 - 2026 is expected to be a constructive year for growth, with both loans and deposits meeting expectations and showing positive trends [6][7] - Loan growth guidance for 2026 is set at 5%-7%, an increase from the previous year's guidance of 4%-6% [7] 2. Commercial Real Estate (CRE) Insights - Credit quality concerns in the CRE sector have abated, with refinancing options available and a thawing market for transactions [13][14] - The bank is cautious about pursuing new CRE opportunities, focusing instead on reliable customers and maintaining a balanced portfolio [15][17] 3. Commercial and Industrial (C&I) Growth Drivers - The bank is expanding its expertise in various sectors, including charter schools, aerospace, and ESOPs, to drive C&I growth [19][20] - Growth is expected to be broad-based, complementing positive momentum from previous quarters [21] 4. Tax Incentives and Investment Trends - Clients are actively considering bonus depreciation incentives, which are accelerating their investment timelines [24] - There is a trend of reshoring and investment in U.S. supply chains, driven by tax benefits and operational flexibility [25][27] 5. Market Expansion and Acquisition Strategy - East West Bancorp is exploring growth opportunities in underpenetrated markets like New York and Boston, focusing on organic growth and potential acquisitions [28][29] - The bank is cautious about increasing CRE exposure and aims for a diversified customer deposit base [29][30] 6. Deposit Growth and Competitive Landscape - The bank expects to fund loan growth primarily through deposit growth, with a tightening competitive landscape for deposits [40][41] - The bank has launched a six-month CD at a rate of 3.73%, setting a competitive floor for deposit pricing [40] 7. Net Interest Income (NII) and Risks - NII growth is projected to align with loan growth, with expectations of 5%-7% growth in both areas [44] - Risks include potential interest rate cuts that could impact margins and backbook repricing [45] 8. Capital and Liquidity Position - The bank maintains a strong capital and liquidity position, with a focus on fixed-rate securities to manage interest rate risk [46][47] - The bank is well-positioned to meet customer needs and navigate potential challenges in 2026 [47] 9. Expense Management and Investment Focus - The bank plans to invest in people and technology, particularly in front-line sales and cybersecurity [54][55] - Despite a projected 7%-9% growth in expenses, revenue growth is expected to outpace this, maintaining positive operating leverage [61] 10. Fee Income Growth - Fee income, particularly from wealth management and foreign exchange, is expected to continue being a significant growth driver [72][73] - Disruptive market conditions tend to increase transaction activity, benefiting fee income [74] 11. Greater China Strategy - The bank plays a crucial role in facilitating transactions for U.S. consumers purchasing goods from overseas, particularly from smaller and mid-sized enterprises [66][67] - Continued investment in the U.S. is expected from clients engaged in cross-border trade, providing lending opportunities for East West [69][70] Conclusion East West Bancorp is optimistic about its growth prospects in 2026, with a focus on maintaining credit quality, expanding into new markets, and leveraging tax incentives to drive investment. The bank's strategic emphasis on expertise in various sectors and a strong capital position positions it well for future opportunities.

SBI posted a 24% year-on-year (YoY) jump in standalone net profit at Rs 21,028 crore for Q3FY26, marking the highest-ever quarterly profit for the bank. The strong earnings were supported by sustained loan growth and stable margins.Net interest income (NII), a key indicator of core lending performance, rose 9% YoY to Rs 45,190 crore, while operating profit (before provisions and contingencies) surged 40% YoY to Rs 32,862 crore, reflecting improved operating leverage.The bank’s Asset quality continued to sh ...

Country’s largest lender State Bank of India (SBI) on Saturday reported 24 per cent year-on-year (y-o-y) rise in Q3FY26 net profit at ₹21,028 crore, led by strong loan growth and stable asset quality. SBI’s net interest income (NII) grew 9 per cent on year to ₹45,190 crore, while net interest margin stood at 2.99 per cent, up 2 basis points (bps) on quarter, and is expected to rise above 3 per cent in next quarter, said Chairman CS Setty. The bank received a special dividend of ₹2,200 crore from its subsidi ...

Core Viewpoint - C&F Financial Corporation (CFFI) has demonstrated strong financial performance in the fourth quarter of 2025, with significant increases in net income, earnings per share, and overall asset growth, outperforming the S&P 500 index during the same period [1][2][3]. Financial Performance - Consolidated net income for Q4 2025 was $6.7 million, an 11% increase from $6 million in Q4 2024, while full-year net income rose 36% to $27 million from $19.9 million in 2024 [2]. - Earnings per share (EPS) for Q4 increased to $2.07 from $1.87 a year earlier, and full-year EPS climbed to $8.29 from $6.01 [3]. - Return on average assets improved to 1.01% from 0.80%, and return on average equity increased to 11.11% from 9.02% [3]. Key Business Metrics - Total assets grew to $2.77 billion as of December 31, 2025, compared to $2.56 billion a year earlier [4]. - Deposits increased by 8.1% year over year to $2.35 billion, driven by higher balances across various account types [4]. - Loan growth was led by the community banking segment, with loans increasing by $136.7 million, or 9.4%, from December 31, 2024 [4]. Net Interest Income and Margins - Net interest income on a fully taxable equivalent basis rose to $107.4 million for the year, up from $97.9 million in 2024, supported by higher yields on loans and securities [5]. - The consolidated net interest margin expanded to 4.21% for the year from 4.12% in the prior year [5]. Management Commentary - Management highlighted the benefits of a diversified business model, emphasizing growth in loans and deposits, increased wealth advisory revenues, and enhanced operational efficiencies as key contributors to earnings growth [6][7]. - Strong liquidity and capital positions, along with solid asset quality, were noted as indicators of the company's overall financial strength [7]. Factors Influencing Earnings - Higher interest income was a primary driver of the year-over-year earnings increase, supported by growth in average loan balances and higher yields on securities [8]. - Increased salaries and employee benefits were attributed to incentive accruals and the addition of a seasoned lending team [9]. Mortgage Banking and Credit Losses - Mortgage banking results benefited from higher loan originations and increased gains on sales of loans despite elevated mortgage rates [11]. - The community banking segment recorded a net reversal of provision for credit losses for the year, contrasting with a provision in 2024 [10]. Strategic Guidance - Management reiterated its commitment to a strategic plan focused on leveraging core strengths, expanding in targeted markets, and maintaining disciplined balance sheet and risk management practices [12]. Capital Management - The company authorized a share repurchase program allowing for the repurchase of up to $5 million of common stock in 2026, and declared total cash dividends of $1.84 per share for 2025, reflecting a payout ratio of 22.2% of earnings [13].

Core Viewpoint - Ohio Valley Banc Corp. (OVBC) reported strong earnings growth for the quarter and full year ended December 31, 2025, with significant increases in net income and earnings per share, outperforming the S&P 500 Index during the same period [1][2]. Financial Performance - For Q4 2025, OVBC's net income reached $3.9 million, a 57.3% increase from $2.5 million in Q4 2024, with EPS rising 58.5% to $0.84 from $0.53 [2]. - Full-year net income for 2025 was $15.6 million, up 41.8% from $10.9 million in 2024, while EPS climbed 42.7% to $3.31 from $2.32 [2]. - Total interest income for Q4 increased 14.1% to $22.9 million from $20 million a year earlier, driven by growth in loan and securities portfolios [3]. Key Business Metrics - The quarterly net interest margin expanded to 4.18% from 3.70% year over year, and the full-year margin improved to 4.07% from 3.71% [4]. - Average earning assets increased to $1.48 billion in Q4 2025 from $1.41 billion, supported by $75 million growth in average loans and $53 million growth in average securities [4]. - Return on average assets rose to 1.00% for Q4 from 0.66% year over year, and return on average equity improved to 9.49% from 6.62% [5]. Asset Quality - The ratio of non-performing loans to total loans increased to 1.40% as of December 31, 2025, from 0.46% a year earlier, attributed to two commercial loans placed on nonaccrual status [6]. - The allowance for credit losses remained stable at 0.96% of total loans compared to 0.95% at year-end 2024 [6]. Management Commentary - Management highlighted record earnings in OVBC's 153rd year, attributing success to disciplined execution, employee commitment, and a focus on community-oriented banking [7]. - The emphasis was placed on balance sheet growth, improved margins, and cost controls as key contributors to performance [7]. Factors Influencing Earnings - Margin expansion was a key driver of earnings growth, supported by higher yields on earning assets and a decline in funding costs [8]. - Noninterest income declined sharply by 81.4% year over year in Q4, primarily due to losses on securities sales [9]. - Noninterest expense decreased 18.4% year over year, aided by lower salary and benefit costs following a voluntary early retirement program [10]. Future Outlook - OVBC did not provide explicit forward-looking financial guidance, focusing instead on current-period results and balance sheet strategy [11]. Other Developments - No acquisitions or major business restructurings were announced during the quarter, but OVBC continued participation in the Ohio Homebuyer Plus program, influencing deposit and securities balances [12].