Financial Data and Key Metrics Changes - In 2025, the company reported a net income of $231.9 million and core net income of $237.5 million, resulting in a core net income per share growth of 17.4% year on year to $5.60 per share [4][6] - The net interest margin increased by 5 basis points to 2.69% from 2.64% in 2024, while the average cost of deposits fell to 150 basis points from 183 basis points in 2024 [7] - The tangible book value per common share grew by 21.7% in 2025, ending the year at $26.41 [7] Business Line Data and Key Metrics Changes - In the fourth quarter, net interest income before provision for credit losses was reported at $92.6 million, consistent with the prior quarter [10] - Non-interest income totaled $66.3 million in the fourth quarter, an increase of $5.1 million over the last quarter, driven by higher banking fees and foreign exchange revenues [12] - The fee income ratio increased to 41.7% compared to the prior quarter, reflecting strong performance in various fee-generating activities [12] Market Data and Key Metrics Changes - The banking jurisdictions in Bermuda, Cayman, and the Channel Islands continue to perform well, providing stable non-interest income with solid core deposits [16] - The company experienced a seasonal influx of non-interest deposits in the Cayman Islands, attributed to reinsurance payments [34] Company Strategy and Development Direction - The company maintains an active M&A growth strategy, focusing on trust and bank acquisitions to enhance the quality of earnings [4][17] - The integration of the Credit Suisse asset acquisition has positioned the company for growth, particularly in the Singapore market [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting strong financial results and disciplined execution [4] - The company anticipates continued improvement in other comprehensive income (OCI) with a projected burndown of 28% over the next 12 months [15] Other Important Information - The board approved a quarterly cash dividend of $0.50 per share, maintaining a total combined payout ratio of 97% in 2025 [4][15] - The company repurchased 3.5 million shares for a total value of $146.7 million in 2025, with a new share repurchase authorization for 2026 of up to 3 million common shares [7][10] Q&A Session Summary Question: Clarification on expense guidance - Management clarified that quarterly core expenses are expected to settle between $90 million and $92 million, with some seasonal costs not expected to repeat in future quarters [20][21] Question: Trends in fee businesses - Management noted that strong trends in fee businesses were driven by improved asset valuations and increased transaction volumes, particularly in foreign exchange and trust services [25][27] Question: Non-performing assets (NPAs) outlook - Management indicated that NPAs have moved lower, with no systemic shifts in migration, primarily related to a few commercial accounts [28][29] Question: Non-interest deposit growth in the Cayman Islands - Management confirmed that the increase in non-interest deposits was seasonal, linked to reinsurance payments [34] Question: Opportunities in the trust business post Credit Suisse integration - Management highlighted growth opportunities in Singapore and emphasized that growth in trust will primarily come through acquisitions [35][36]

Financial Data and Key Metrics Changes - In 2025, the company reported a net income of $231.9 million and core net income of $237.5 million, resulting in a core net income per share growth of 17.4% year on year to $5.60 per share [4][6] - The net interest margin increased by 5 basis points to 2.69% from 2.64% in 2024, while the average cost of deposits fell to 150 basis points from 183 basis points in 2024 [7] - The tangible book value per common share grew by 21.7% in 2025, ending the year at $26.41 [7] Business Line Data and Key Metrics Changes - In the fourth quarter, net interest income before provision for credit losses was reported at $92.6 million, consistent with the prior quarter [10] - Non-interest income totaled $66.3 million in the fourth quarter, an increase of $5.1 million over the last quarter, driven by higher banking fees and foreign exchange revenues [12] - The fee income ratio increased to 41.7% compared to the prior quarter, reflecting strong performance in various fee-generating activities [12] Market Data and Key Metrics Changes - The banking jurisdictions in Bermuda, Cayman, and the Channel Islands continue to perform well, providing stable non-interest income and solid core deposits [16] - The company experienced a seasonal influx of non-interest deposits in the Cayman Islands, attributed to reinsurance payments [34] Company Strategy and Development Direction - The company is focused on maintaining disciplined capital management, which is reflected in a quarterly dividend increase and share repurchases, resulting in a total combined payout ratio of 97% in 2025 [4] - The M&A growth strategy remains on track, with active discussions regarding potential targets to enhance the quality of earnings [4][17] - The company aims to grow its trust business primarily through acquisitions, focusing on existing jurisdictions such as Guernsey, Bermuda, Cayman, Switzerland, and Singapore [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial performance and the stability of its banking jurisdictions, while also noting the importance of maintaining a conservative underwriting approach [14][16] - The outlook for credit migration remains stable, with no systemic shifts observed in non-performing assets [29] Other Important Information - The board approved a new share repurchase authorization for 2026 of up to 3 million common shares, or $140 million [10] - The company welcomed Meroë Park back to the board, bringing extensive experience in governance and operations [8] Q&A Session Summary Question: Clarification on expense guidance - Management confirmed that quarterly core expenses are expected to settle between $90 million and $92 million, with some seasonal costs not expected to repeat in future quarters [20][21] Question: Trends in fee businesses - Management highlighted that strong performance in fee businesses was driven by improved asset valuations and increased transaction volumes, particularly in foreign exchange and trust services [25][27] Question: Non-performing assets (NPAs) outlook - Management noted that NPAs have decreased, primarily due to specific commercial accounts and improvements related to the liquidation of the Elbow Beach Hotel [29] Question: Non-interest deposit growth in the Cayman Islands - Management confirmed that the increase was seasonal, linked to reinsurance payments [34] Question: Opportunities in the trust business post Credit Suisse integration - Management indicated that the Singapore office is in growth mode and emphasized the focus on trust acquisitions for growth [35][36]

Core Insights - Canter Power Systems has acquired Optimize Generator People, enhancing its position as a leading provider of residential backup power solutions in the U.S. [1][3] - This acquisition marks Canter's sixth add-on acquisition since partnering with Rotunda Capital Partners in 2021, indicating a strategic growth trajectory [1][4]. Company Overview - Canter Power Systems is recognized as one of the largest independent installers of home standby generators in the U.S. and has been a Generac Power Premier Pro dealer since 2016 [5]. - The company has achieved significant accolades, including being Home Depot's largest national residential generator installer since 2007 and receiving the Generac Industry Excellence Award in 2021 and 2022 [5]. Optimize Generator People - Optimize, based in Baton Rouge, Louisiana, specializes in generator installation, inspection, and repair services across four locations in Louisiana [2]. - The company is known for its technical expertise and reliability, making it a trusted partner for homeowners seeking backup power solutions [2]. Strategic Partnership - The partnership between Canter and Optimize aims to expand their reach across the Gulf Coast and Southeast U.S., enhancing installation, service, and maintenance capabilities [3]. - Homeowners will benefit from a wider range of solutions, including comprehensive repair and preventative maintenance services [3]. Management Perspectives - Canter's CEO, Brian Lopatka, emphasized the importance of the acquisition in serving more homeowners and delivering value across combined markets [4]. - Matthew Newman, Managing Partner of Optimize, highlighted the access to additional resources that will help both companies create new opportunities for employees and customers [4]. - Ryan Aprill from Rotunda noted that this acquisition strengthens Canter's ability to serve customers in the Gulf state region, following previous successful acquisitions [4].