Core Insights - Coop Pank reported a profit of €2.8 million in January 2026, a 4% increase compared to the same period last year, indicating a positive trend in profitability [1][6] - The bank's loan portfolio grew by €13 million to reach €2.13 billion, with a year-over-year increase of 19% [6] - The return on equity (ROE) was 14.2%, while the cost-to-income ratio stood at 50%, both figures nearing the bank's long-term targets [4][6] Financial Performance - The bank's net income increased by 5% year-over-year, while expenses rose by 7% during the same period [6] - Customer deposits grew by €28 million, totaling €2.08 billion, with an 8% increase year-over-year [6] - The number of clients reached 228,400, with a 9% growth over the year, although the number of active clients decreased by 500 [6] Strategic Objectives - The Supervisory Board approved strategic objectives for the next five years, focusing on maintaining growth, increasing profitability, and launching investment services [3] - Coop Pank plans to enhance cooperation with Coop retail and leverage synergies between retail and banking [4][3] - The Management Board will be expanded to include the Head of IT, Alvar Pihlapuu, starting February 1, 2026 [3]

Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $51.2 million, or $1.49 per diluted share, for Q4 2025, compared to $1.54 per share in Q3 2025 and $1.34 per share in Q4 2024 [5][6] - For the full year 2025, net income available to common shareholders was $195.4 million, or $5.64 per diluted share, up from $168.9 million, or $4.88 per share in 2024 [6] - Core earnings for the full year 2025 were $255 million, compared to $223.2 million in 2024, with core revenue increasing to $661 million from $615 million, an 8% increase [7] Business Line Data and Key Metrics Changes - Loan originations increased by 9% compared to the linked quarter and 8% year-over-year, but overall loan growth was negligible due to higher-than-expected paydowns [10] - The commercial real estate portfolio showed solid growth year-over-year, with investor CRE increasing by 5% and owner-occupied CRE by 11% [10] - The small business segment grew by 8% year-over-year, contributing positively to overall loan performance [13] Market Data and Key Metrics Changes - Core deposits represented 89% of total deposits, reflecting a strong and loyal deposit base [8] - The loan-to-deposit ratio ended the quarter at 86%, indicating ample capacity to support existing and new clients [18] - Total borrowings increased by $40 million during the quarter, with a low reliance on wholesale borrowings [19] Company Strategy and Development Direction - The company aims to maintain a moderate risk profile while investing to improve operating performance, positioning itself well for future challenges [6] - The strategy focuses on growing new client relationships, maintaining core funding, and promoting client loyalty through responsive service [8] - Banner continues to explore M&A opportunities, emphasizing its strong capital position and market reputation [49] Management's Comments on Operating Environment and Future Outlook - Management expects loan growth in the mid-single digits for 2026, contingent on economic stability [25][62] - The competitive landscape remains challenging, but the company believes it competes well in terms of product offerings and pricing [27] - The outlook for net interest margin is uncertain, influenced by potential Federal Reserve actions, with expectations of either expansion or flat performance depending on rate cuts [29][52] Other Important Information - The company announced a core dividend of $0.50 per common share, reflecting strong capital and liquidity positions [8][19] - Banner was recognized as one of America's 100 Best Banks and received various accolades for client satisfaction and trustworthiness [9] Q&A Session Summary Question: Outlook for loan growth in 2026 - Management expects mid-single digit growth in the loan book if the economy holds up, despite anticipated payoffs in commercial real estate [25] Question: Competitive landscape for loan originations - The competitive environment remains strong, with some banks offering aggressive terms, but management believes they can compete effectively [27] Question: Expectations for net interest margin - Future net interest margin will largely depend on Federal Reserve actions, with potential for expansion if no cuts occur [29] Question: Spot deposit costs and average margin - Spot deposit costs for December were 1.39%, with a margin of approximately 4.03% [36] Question: Core run rate for expenses - Expenses are expected to trend with normal inflationary increases, around 3% for 2026 compared to 2025 [40] Question: Drivers behind special mention and substandard loans - Increases were primarily due to downgrades in specific sectors, with no significant concerns in any particular industry [41]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net earnings of $51.1 million or $0.36 per share, marking the 192nd consecutive quarter of profitability [6] - The return on average tangible common equity was 14.51% and return on average assets was 1.37% for Q1 2025 [6] - Net interest margin expanded by 13 basis points to 3.31% compared to 3.18% in Q4 2024 and 3.10% in Q1 2024 [8] - Total deposits and customer repurchase agreements increased to $12.3 billion, a $56 million increase from Q4 2024 [9] - Non-interest income for Q1 2025 was $16.2 million, up from $13.1 million in Q4 2024 [32] Business Line Data and Key Metrics Changes - Total loans decreased to $8.36 billion, a $173 million decline from Q4 2024, primarily due to a $168 million decrease in dairy and livestock loans [12] - Loan originations in Q1 2025 were approximately 13% higher than in Q1 2024, with notable increases in C&I and commercial real estate loans [15] - Nonperforming and delinquent loans decreased to $26.8 million from $47.6 million at the end of Q4 2024 [16] Market Data and Key Metrics Changes - Noninterest-bearing deposits grew by $147 million or 2% compared to the end of 2024 [9] - The cost of deposits and repos was 87 basis points for Q1 2025, down from 97 basis points in Q4 2024 [10] - The economic forecast indicates real GDP growth slowing to 2% in the second half of 2026, with unemployment expected to remain above 5% until 2028 [22] Company Strategy and Development Direction - The company remains focused on banking small to medium-sized businesses and their owners through all economic cycles [131] - A new share repurchase program was authorized, with 2.05 million shares repurchased at an average price of $18.13 [7] - The company is actively looking for M&A opportunities while continuing to focus on internal growth [85][87] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of tariff policies on the agricultural portfolio is still uncertain, but customers feel relatively okay [43] - There is optimism regarding the commercial real estate market, with strong loan pipelines and increased activity expected [46][48] - Management expressed confidence in the ability to grow loans again by the end of the year, despite some unique challenges in Q1 [51] Other Important Information - The allowance for credit loss was $78.2 million at the end of Q1 2025, with a recapture of $2 million for the quarter [20] - The company’s capital position remains strong, with a tangible common equity ratio of 10% [27] Q&A Session Summary Question: Impact of tariff policies on agricultural portfolio - Management indicated it is too early to tell the overall impact, but customers feel relatively okay so far [43][44] Question: Pace of commercial real estate payoff activity - Elevated prepayment penalties were noted, but strong loan activity is expected moving forward [46] Question: Loan prepayment penalties impact on interest income - The impact was approximately $300,000 quarter over quarter [56] Question: Expectations around deposit cost reduction - Management believes there is still some room for deposit cost reduction, primarily through evaluating customer relationships [60][61] Question: Focus on credit management amid market uncertainty - Management stated that their disciplined approach to underwriting has not changed despite economic uncertainty [68][70] Question: Opportunities for core deposit growth - Most growth came from new relationships, with expectations for continued growth in non-interest-bearing deposits [77][78] Question: Appetite for M&A - Management expressed confidence in pursuing M&A opportunities while balancing share repurchases [85][87] Question: Demand in commercial real estate - Demand is broad-based across asset classes, with a focus on low loan-to-value loans [102] Question: Customer sentiment - Overall sentiment remains positive, with customers prepared for potential volatility [108][109] Question: Underwriting new construction loans - Input costs are a concern, but the company is open to construction lending opportunities [112] Question: Appetite for increasing multifamily portfolio - The appetite remains the same, with a focus on appropriate underwriting [115]