Net Income increased $13.7 million, or 49.3%, to $41.6 million for the year ended December 31, 2025, from $27.9 million for the year ended December 31, 2024Net Interest Margin grew 35 basis points to 4.18% for the year ended December 31, 2025, from 3.83% for the year ended December 31, 2024Net Interest Margin also grew 66 basis points to 4.44% for the quarter ended December 31, 2025, from 3.78% for the quarter ended December 31, 2024Total Loans increased $134.5 million, or 7.4%, to $2.0 billion at December ...

Key Takeaways COLB now spans eight Western states and ~350 branches after the Pacific Premier deal closed in August 2025.COLB's NIM rose to 4.06% in Q4 2025, with management aiming to stay above 4% by mid-2026.COLB has $700M buyback authority through late 2026, with plans for $150-$200M repurchased per quarter.Columbia Banking (COLB) now spans eight Western states with roughly 350 branches and a relationship-first model linking commercial, small business, consumer and wealth teams. Shares have outperformed ...

Core Insights - Columbia Banking (COLB) has shown recovery with four consecutive quarterly earnings beats and a strengthened presence in the Western market following the acquisition of Pacific Premier in August 2025 [1][10] - The short-term outlook is rated Zacks Rank 3 (Hold), indicating steady estimate momentum rather than acceleration [1] - Core trends suggest improving margins and capital deployment strategies extending into 2026 [1] Valuation Metrics - COLB shares are currently trading at 9.65x forward 12-month earnings, compared to 10.46x for industry peers, 17.25x for the broader Finance sector, and 23.24x for the S&P 500 [2] - The five-year median P/E for COLB is 9.24x, indicating a modest discount relative to peers but consistent with its historical valuation [2] Dividend and Income - The dividend yield for COLB stands at approximately 5.0%, following a 2.8% increase to 37 cents per share announced in November 2025, enhancing total-return appeal [4] - Fee income has improved, with growth in treasury management and commercial card fees, supported by new platforms from Pacific Premier [7] Near-Term Financial Projections - Management projects a net interest margin (NIM) of 3.90-3.95% for Q1, with expected net interest income of $600 million [5][10] - Operating expenses (excluding amortization) are anticipated to be between $335-$345 million in the first two quarters, with a reduction expected in Q3 as synergies from the Pacific Premier acquisition are realized [5] Margin and Capital Management - NIM improved to 4.06% in Q4 2025 due to reduced deposit costs and wholesale funding, with projections for NIM to trend higher throughout 2026 [6] - Capital ratios have increased, allowing for enhanced buybacks and a higher dividend, with nearly $600 million remaining under the repurchase program and plans to buy back $150-$200 million per quarter in 2026 [8][10] Competitive Context - COLB's valuation is compared to peers such as East West Bancorp (EWBC) and Banner Corporation (BANR), both holding a Zacks Rank 3, with EWBC trading at a P/E of 11.12x and BANR at 10.59x [13] - The current valuation of COLB at 9.65x forward earnings and a yield of around 5% suggests a balanced near-term risk-reward profile [14]

With a market cap of $87.2 billion, U.S. Bancorp (USB) delivers a wide range of banking, lending, payment, investment, and trust services to individuals, businesses, institutions, and government entities. It operates across multiple segments, including consumer and business banking, wealth management, payment services, and corporate and institutional banking. Shares of the Minneapolis, Minnesota-based company have outpaced the broader market over the past 52 weeks. USB stock has increased 16.9% over this ...

Core Insights - The bank reported a 48% year-on-year increase in net profit to Rs 503 crore for Q3 FY26, compared to Rs 339 crore in the same period last year [8] - Net interest income (NII) grew by 12% year-on-year to Rs 5,492.4 crore, up from Rs 4,902 crore in the corresponding quarter a year ago [8] - The bank's asset quality showed improvement, with gross non-performing assets (NPAs) ratio decreasing to 1.69% from 1.86% in the previous quarter and 1.94% a year ago [8][7] Financial Performance - Gross NPAs declined to Rs 4,614 crore from Rs 4,841 crore in the previous quarter, while net NPAs rose slightly to Rs 1,427 crore from Rs 1,345.4 crore sequentially [2][8] - Provisions for the quarter decreased by 3.7% sequentially to Rs 1,398 crore from Rs 1,452 crore, indicating an improvement in overall asset quality [5][8] - The bank's net interest margin (NIM) fell to 5.76% from 6% in the same period last year [9] Loan Growth and Segments - Nearly 89% of the year-on-year growth in loans and advances was driven by expansion in mortgage loans, vehicle loans, consumer loans, business banking, and wholesale loans, reflecting broad-based momentum across key lending segments [4][8] - The credit card portfolio expanded, with cards in force reaching 4.3 million during Q3 FY26 [5][8] - The wealth management business experienced a 31% year-on-year growth, with assets under management increasing to Rs 58,957 crore [5][8] Management Commentary - The Managing Director and CEO, V Vaidyanathan, noted strong business momentum across core segments, including lending, deposits, wealth management, and transaction banking [6][8] - He highlighted the improvement in asset quality and anticipated a further decline in the cost of funds due to recent revisions in savings rates, which is expected to support the bank's lending expansion [7][8]

Looking ahead, management reiterated a goal of double-digit loan and deposit growth in 2026, with Mordell citing ongoing pipeline momentum “throughout the bank.” He noted the bank’s portfolio has “high velocity and churn,” requiring substantial origination volume to achieve net growth, and said construction payoffs in 2025 were unusually high, which constrained net loan growth in that vertical.Mordell said loan growth in the fourth quarter was led “significantly” by the sponsor finance and corporate banking ...

Core Insights - Cullen/Frost Bankers, Inc. (CFR) reported strong fourth-quarter 2025 adjusted earnings per share of $2.57, exceeding the Zacks Consensus Estimate of $2.47, and up from $2.36 in the prior-year quarter [1][9] - The results were driven by increased net interest income and non-interest income, supported by growth in loan and deposit balances, although elevated non-interest expenses posed a challenge [1][14] Financial Performance - The company reported net income available to common shareholders of $164.6 million for Q4 2025, a 7.4% increase from $153.2 million in Q4 2024 [2] - For the full year 2025, adjusted earnings per share reached $9.92, surpassing the Zacks Consensus Estimate of $9.84, and increased from $8.88 in the previous year [2] - Total revenues for Q4 2025 were $603.4 million, exceeding the Zacks Consensus Estimate by 3% and improving from $556.44 million year-over-year [3] - Annual revenues for 2025 were $2.32 billion, beating the Zacks Consensus Estimate of $2.30 billion and up from $2.15 billion in 2024 [3] Income Breakdown - Net interest income (NII) rose 8.6% year-over-year to $471.2 million, with the net interest margin (NIM) expanding 13 basis points to 3.66% [4] - Non-interest income increased 7.6% year-over-year to $132.2 million, driven by higher trust and investment management fees, service charges, and increased income from derivatives trading [5] Expense Analysis - Non-interest expenses totaled $371.7 million, a 10.6% increase year-over-year, primarily due to higher salaries, employee benefits, and one-time expenses [6] - The increase in expenses was partially offset by a reversal related to a special FDIC insurance assessment [6] Loan and Deposit Growth - Total loans for Q4 2025 were $21.9 billion, reflecting a 2.1% increase from the prior quarter, while deposits were $43.3 billion, up nearly 1% sequentially [7] Credit Quality - Credit loss expenses for Q4 2025 were $11.2 million, down from $16.2 million in the prior-year quarter, with net charge-offs decreasing to $5.8 million from $14.0 million [8] - The allowance for credit losses on loans was 1.29% of total loans, slightly down from 1.30% a year ago [8] Capital and Profitability Ratios - As of December 31, 2025, the common equity Tier 1 risk-based capital ratio was 14.06%, up from 13.62% year-over-year [11] - Return on average assets was 1.24%, compared to 1.16% in the prior-year quarter, while return on average common equity was 15.66%, down from 15.81% [12] Shareholder Returns - The company declared a first-quarter cash dividend of $1.00 per common share, payable on March 13, 2026 [13] - In Q4, CFR repurchased 653,913 shares for $80.7 million, completing its $150 million share repurchase authorization for 2025 [13]

Financial Data and Key Metrics Changes - The net interest margin (NIM) expanded to 3.21%, up 2 basis points from the prior quarter [10] - Net interest income increased to $170.3 million, $1 million higher than the previous quarter [10] - Return on average tangible equity was 15.8% for the fourth quarter and 16.3% for the full year [6] - The effective tax rate for the fourth quarter was 24.8%, expected to return to about 23.2% going forward [6] Business Line Data and Key Metrics Changes - Total loans grew by $183 million in the quarter, or 5.2% on an annualized basis, with significant growth in commercial and industrial (C&I) loans [8] - Retail and commercial deposits increased by $233 million, while public deposits declined by $447 million, resulting in a net increase of $214 million in deposits [10] - Non-interest income was reported at $55.6 million, while non-interest expense was $125.1 million for the fourth quarter [11] Market Data and Key Metrics Changes - The state unemployment rate was 2.2% in November, significantly lower than the national rate of 4.5% [5] - Total visitor arrivals were down 0.2% year-over-year, with spending up 6% to $19.6 billion [5] - The median single-family home price on Oahu was $1.1 million, up 4.3% from the previous year, while the median condo sales price was $512,000, down 5.2% [5][6] Company Strategy and Development Direction - The company expects full-year loan growth to be in the 3%-4% range, driven primarily by commercial real estate (CRE) and C&I loans [15] - Non-interest income is anticipated to remain stable at about $220 million for the year, with expenses expected to be around $520 million in 2026 [15] - The company has a new stock repurchase authorization of $250 million, providing flexibility for capital return [8][59] Management's Comments on Operating Environment and Future Outlook - Management noted that credit risk remains low and stable, with no broad signs of weakness in consumer or commercial books [12] - The company expects to see more normalized growth in the second half of the year, following a period of payoffs in the CRE portfolio [22][28] - Management expressed confidence in maintaining a strong capital position, with a CET1 target of 12% and current levels above 13% [59] Other Important Information - The company repurchased about 1 million shares, utilizing the remaining $26 million of its $100 million purchase authorization for 2025 [8] - The allowance for credit losses increased to $168.5 million, with coverage at 118 basis points of total loans and leases [13] Q&A Session Summary Question: Loan growth trends and pipeline - Management indicated that loan growth was broad-based, with some payoffs in the CRE portfolio affecting expectations, but they anticipate more normalized growth in the future [22][23] Question: Payoffs and paydowns in the industry - Management noted that payoffs have been occurring sooner than expected due to increased competition from permanent lenders, but they expect this trend to normalize [27][28] Question: Deposit trends and NIM expansion - Management confirmed that the interest-bearing deposit beta is expected to decrease to 30%-35% after two rate cuts, with continued focus on reducing deposit costs [29][48] Question: Full year loan growth guidance - Management suggested that loan growth may start lower in the first half of the year but expects a pickup in the second half [44] Question: M&A activity and ideal targets - Management remains open to M&A opportunities, focusing on strong management teams and disciplined lending cultures, particularly in the western U.S. [71][72]

Financial Data and Key Metrics Changes - The company reported earnings of $29.5 million, or $1.20 per share, with a return on assets (ROA) of almost 3% for the fourth quarter of 2025 [4] - The net interest income increased to approximately $31 million from $26 million in the previous year [18] - The net interest margin improved to 328 basis points from 290 basis points year-over-year [18] Business Line Data and Key Metrics Changes - The company grew checking accounts by over 23% during the year, with a total increase of about $116 million [6][9] - The loan portfolio saw significant growth, with gross loans held for investment increasing approximately 10% annualized from September 30 to December 31 [17] - Primis Mortgage closed loans increased to approximately $1.2 billion, a 50% increase over 2024 [14] Market Data and Key Metrics Changes - Non-interest-bearing deposits ended the year at $554 million, or 16% of total deposits, compared to 14% at the end of 2024 [18] - The company anticipates mortgage warehouse balances to average $500 million across 2026, with seasonal peaks expected [28] Company Strategy and Development Direction - The company aims for a sustainable ROA of 1% for the full year 2026, with expectations for margin expansion [39] - The focus remains on growing the core bank with good deposits and integrated lines of business, avoiding reliance on investor commercial real estate [15][54] - The company plans to continue hiring in the mortgage sector but with a more incremental approach to avoid large upfront expenses [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving goals for 2026, citing substantial momentum and opportunities for growth [5][24] - The company has controlled operating expenses and expects to maintain a core expense range of $23 million to $24 million in 2026 [24] - Management noted that the majority of noise from previous quarters is behind them, with expectations for improved margins and reduced expenses [43] Other Important Information - The company completed a sale-leaseback transaction that allowed for repositioning and entering 2026 with momentum [24] - The company has maintained 90% of digital deposit balances despite a decrease in rates, reflecting customer loyalty [11] Q&A Session Summary Question: What are the expectations for warehouse balances in 2026? - Management anticipates mortgage warehouse balances to average $500 million across the year, with seasonal peaks expected [28] Question: How should we think about overall loan growth in 2026? - The core bank is expected to grow loans by about $100 million, or 5% to 7%, with additional growth from Panacea and Warehouse [32] Question: What is the target sustainable ROA for 2026? - The target remains a 1% ROA for the full year, with expectations for improvement in the second half [39] Question: Is there still noise in the quarterly expenses? - Most of the noise is expected to be behind the company, with only minor impacts anticipated in the first quarter [43] Question: How will mortgage banking impact expenses? - Mortgage banking expenses are expected to scale with revenue, with a pre-tax contribution of 50 to 60 basis points anticipated [34]

Financial Data and Key Metrics Changes - Adjusted net income for Q4 2025 increased 18% year-over-year to $47.7 million, with pre-tax, pre-provision earnings rising to $93.2 million, a 39% increase from Q3 and a 65% increase from the prior year quarter [6][7] - Return on assets (ROA) for Q4 was 1.22%, and return on tangible equity (ROTE) was 15.72%, with expectations to exceed 1.30% ROA and approximately 16% ROTE in Q4 2026 [4][5] - Net interest income reached $174.6 million, a 31% increase from the prior quarter, with net interest margin expanding 12 basis points to 3.44% [8][9] Business Line Data and Key Metrics Changes - Loan outstandings grew at an annualized rate of 15%, driven by strong commercial banking performance and the Villages acquisition [2][12] - Non-interest income increased to $28.6 million, a 20% rise from the prior quarter, with wealth management income growing 21% from the prior quarter [10][11] - Non-interest expense for Q4 was $130.5 million, including $18.1 million in merger costs and $23.4 million in provisions related to the Villages acquisition [11][12] Market Data and Key Metrics Changes - Deposits increased to $16.3 billion, up 29% from the prior quarter, largely due to the acquisition of VBI [15] - Customer transaction accounts represented 48% of total deposits, reflecting a strong relationship-focused approach [16] - The allowance for credit losses totaled $178.8 million, with coverage to total loans increasing to 1.42% [14] Company Strategy and Development Direction - The company plans to achieve adjusted revenue growth of 29%-31% for the full year 2026, with a focus on organic growth momentum and high single-digit loan growth [21][23] - A 15% increase in banker count is planned for 2026, with benefits expected to be fully realized in 2027 and 2028 [22][23] - The company aims to maintain a low- to mid-50s efficiency ratio over the cycle, balancing growth investments with profitability [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook and the ability to deliver strong returns in 2026, emphasizing a strong balance sheet and operational strength [24] - The company remains vigilant in maintaining a disciplined credit culture, with a focus on high-quality loans and conservative risk management [13] - Management noted that while there are pockets of weakness in the Florida housing market, overall demand remains strong in key areas [86] Other Important Information - The Villages acquisition closed with higher tangible equity than initially projected, shortening the earn-back period [4] - The securities portfolio grew to $5.75 billion, with a focus on reducing risk and improving liquidity [17][18] - The company expects to manage capital effectively, considering options for dividends and buybacks in the future [46] Q&A Session Summary Question: Clarification on adjusted efficiency ratio - Management confirmed that the adjusted efficiency ratio includes amortization of intangible assets, which was previously excluded [34] Question: Loan growth attribution - Approximately 10% of the 15% loan growth was attributed to legacy Seacoast, with 2%-3% from the Villages acquisition, and the remainder from slower paydowns [38][40] Question: Capital return strategy - Management indicated that they will monitor capital levels and consider options for dividends and buybacks, focusing on the Villages deal first [46] Question: Fee income expectations - Management noted that mortgage banking income is expected to be higher due to the acquisition of a sizable servicing portfolio, impacting overall fee income [105]