Financial Data and Key Metrics Changes - The company reported a return on average tangible equity of 15.8% for Q4 and 16.3% for the full year, with an effective tax rate of 24.8% in Q4, expected to normalize to 23.2% going forward [7][17] - Net interest income for Q4 was $170.3 million, a $1 million increase from the prior quarter, with a net interest margin (NIM) of 3.21%, up 2 basis points from the previous quarter [12][7] - Total loans grew by $183 million in the quarter, representing a 5.2% annualized growth rate [10] Business Line Data and Key Metrics Changes - 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 for Q4 [11] - Non-interest income was reported at $55.6 million, while non-interest expense for Q4 was $125.1 million [13] Market Data and Key Metrics Changes - The unemployment rate in the state was 2.2% in November, significantly lower than the national rate of 4.5% [6] - Year-to-date spending through November was $19.6 billion, up about 6% compared to the same period last year [6] Company Strategy and Development Direction - The company anticipates full-year loan growth in the range of 3%-4%, primarily driven by commercial real estate (CRE) and commercial and industrial (C&I) loans [17] - The company has a new stock repurchase authorization of $250 million, indicating a strong capital position and flexibility for future growth initiatives [9][60] Management's Comments on Operating Environment and Future Outlook - Management noted that credit risk remains low and stable, with no broad signs of weakness observed in consumer or commercial books [14] - The company expects non-interest income to remain stable at approximately $220 million for the year, with expenses projected to be around $520 million in 2026 [17][54] Other Important Information - The company repurchased about 1 million shares during the quarter, utilizing the remaining $26 million of its $100 million purchase authorization for 2025 [9] - The allowance for credit losses increased to $168.5 million, with coverage rising to 118 basis points of total loans and leases [16] 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 second half of the year [24][25] 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 [26][28] Question: Deposit trends and NIM expansion - Management confirmed that the margin guide reflects the ability to continue cutting deposit rates, with expectations of a lower deposit beta going forward [30][31] 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 reiterated their focus on organic growth but remains open to M&A opportunities, looking for well-managed firms with strong deposit franchises [72][73]

Core Insights - Primis Financial reported a fourth-quarter net interest income of approximately $31 million, an increase from $26 million year-over-year, with a net interest margin (NIM) of 3.28%, up from 2.90% a year earlier [2][4] - The company anticipates further margin improvements in 2026 due to an investment portfolio restructuring and the redemption of $27 million in subordinated debt, which could have increased NIM by about 11 basis points if fully implemented in Q4 [1][6] - Management projects run-rate earnings of roughly $8 million per quarter, equating to an 80-basis-point return on assets (ROA) on approximately $4 billion of average assets, with a target of achieving a 1% ROA in 2026 [3][19] Financial Performance - The fourth-quarter earnings per share (EPS) were reported at $1.20, driven by a substantial gain from a sale-leaseback transaction [4][6] - The company experienced a 10% annualized increase in gross loans held for investment from September 30 to December 31, with average earning assets rising 13% annualized in Q4 [6][8] - Non-interest-bearing deposits improved to 16% of total deposits by the end of 2025, up from 14% at the end of 2024, indicating a positive shift in deposit mix [7][9] Growth Drivers - Primis plans to scale its mortgage warehouse from approximately $175 million to around $500 million in 2026, with retail mortgage production targeted between $1.6 billion and $2 billion [5][11] - The mortgage warehouse business is expected to generate over 2% ROA, contributing positively to overall earnings as it scales [12][14] - Retail mortgage closed loans increased to approximately $1.2 billion in 2025, a 50% increase from 2024, with expectations for continued growth in 2026 [13][14] Expense Management - The company has controlled operating expenses, targeting a go-forward level of approximately $22 million, with expectations to maintain this as revenue grows [15][17] - Core expenses, excluding volatility from the mortgage and Panacea divisions, were approximately $28 million, with management aiming for a normalized level of $21 million [16][17] - The provision for credit losses was reported at $2.4 million, reflecting loan growth and specific reserving for impaired loans [18] Strategic Outlook - Management emphasized the importance of operational leverage and expects stronger performance in the second half of 2026, despite potential seasonality affecting the first quarter [19] - The company believes it has the capital and fundamentals necessary to pursue its goals, entering 2026 with positive momentum from recent restructuring efforts [19]

Financial Data and Key Metrics Changes - Core EPS for Q4 2025 was $0.43 per share, exceeding consensus estimates, with a net interest margin (NIM) of 3.98%, core ROA of 1.45%, and core efficiency ratio of 52.8% [4] - Average deposits and total loans grew by 2.8% and 1.2% respectively, while net interest income increased by $47.2 million year-over-year to $427.5 million [4][7] - The provision for credit losses decreased by $4.3 million to $7 million, with non-performing loans (NPLs) rising four basis points to 94 basis points [5][6] Business Line Data and Key Metrics Changes - Fee income remained flat at 18% of total revenue, with gains in SBA offset by declines in wealth and mortgage [5] - Core non-interest income for Q4 was $24.3 million, down $200,000 from the previous quarter, with SBA gain on sale income increasing by $800,000 [14] - Core non-interest expense increased by $1.7 million to $74.3 million, primarily due to increased salaries and benefits [15] Market Data and Key Metrics Changes - Average deposit growth for the year was 6.1%, with significant contributions from money market accounts and CDs [9] - The company reported $98 million in non-performing loans, including $39.2 million in total SBA loans [6] Company Strategy and Development Direction - The company aims to grow fee income through its regional banking model and maintain a focus on low-cost deposit growth [5][10] - A portfolio of approximately $225 million in commercial loans was designated as held for sale to improve liquidity and capital ratios [12][13] - The company plans to limit operating cost increases to approximately 3% year-over-year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth despite seasonal headwinds and elevated payoffs, projecting continued growth in business banking and mortgage segments [28] - The guidance for NIM is expected to remain around 4% by the end of 2026, with a near-term dip anticipated due to rate cuts [12][40] - Management highlighted the importance of maintaining a balance between loan growth and capital generation, emphasizing disciplined capital deployment [31][32] Other Important Information - The company repurchased $23.1 million of its stock in Q4 2025, totaling 2.1 million shares for the year [6] - Jane Grebenc, Bank President and Chief Revenue Officer, will retire at the end of March 2026, marking a significant leadership transition [10] Q&A Session Summary Question: What are the expectations for net charge-offs and provisions in 2026? - Management expects charge-off guidance to be 25-30 basis points, with $1.5 million left to resolve on the dealer floor plan loan [19][20] Question: Can we expect additional loans to be moved off the balance sheet in 2026? - Management indicated that the loan sale is more of a one-off situation, focusing resources on other markets [23][24] Question: What are the expectations for loan growth in 2026? - The company anticipates loan growth to continue at a similar pace as 2025, despite elevated payoffs [28][30] Question: How should we think about the stock buyback strategy? - The buyback strategy is sensitive to stock price, with intentions to utilize the authority aggressively while maintaining capital ratios [31][57] Question: What is the outlook for NIM and deposit costs? - Management expects a dip in NIM in Q1 2026, with a gradual recovery to around 4% by year-end [60][61]

Core Viewpoint - South Plains Financial reported strong financial results for the fourth quarter and full year 2025, highlighting earnings growth, net interest margin (NIM) expansion, and strategic initiatives, while also discussing expectations for loan growth in 2026 and the pending acquisition of BOH Holdings and its banking subsidiary, Bank of Houston [4][6][16]. Financial Performance - Fourth-quarter diluted EPS was $0.90, down from $0.96 in the previous quarter, primarily due to a larger provision for credit losses and one-time interest income items [2]. - Full-year 2025 results included a 17.8% increase in diluted EPS, 33 basis points of NIM expansion, and tangible book value per share growth of over 14% to $29.05 [3][6]. - Net interest income for the fourth quarter was $43 million, essentially unchanged from the third quarter [2]. Loan Growth and Yields - Loans held for investment increased by $91 million to $3.14 billion in the fourth quarter, driven by organic growth in multifamily property loans and other commercial loans [7][9]. - Loan yields were 6.79% in the fourth quarter, down from 6.92% in the linked quarter, with expectations for moderation in yields as Federal Reserve rate cuts take effect [8][12]. Acquisition of BOH Holdings - The pending acquisition of BOH Holdings/Bank of Houston is expected to close in early Q2 2026, projected to be about 11% accretive to earnings in 2027 [5][16]. - The combined company is expected to have over $1 billion in loans in the Houston region, enhancing scale and customer relationships [15][17]. Deposit Dynamics - Deposits ended the quarter at $3.87 billion, steady from the linked quarter, with a 7% increase from year-end 2024 [13]. - The cost of deposits decreased by 9 basis points to 2.01%, attributed to deposit repricing following Federal Reserve rate reductions [14]. Credit Quality and Expenses - The allowance for credit losses was stable at 1.44% of total loans held for investment, with a provision for credit losses of $1.8 million in the fourth quarter [18]. - Non-interest income was $10.9 million in the fourth quarter, with a slight decline due to lower mortgage banking revenue [20]. - Non-interest expense remained unchanged at $33 million, with expectations for modest increases in the first quarter due to hiring and project work [21]. Capital and Returns - Tangible common equity to tangible assets increased to 10.61% at quarter-end, and the company authorized a $0.17 per share quarterly dividend, marking the 27th consecutive dividend [22].

Core Viewpoint - Hancock Whitney Corp. (HWC) reported a fourth-quarter 2025 earnings per share of $1.49, exceeding the Zacks Consensus Estimate by a penny, with a year-over-year increase of 6.4% in the bottom line, driven by higher non-interest income and net interest income (NII) despite rising expenses and provisions [1][8]. Financial Performance - Net income for the fourth quarter was $125.6 million, reflecting a 2.9% increase from the prior-year quarter, surpassing the estimate of $121.4 million [2]. - Total revenues for the quarter reached $389.3 million, consistent with the Zacks Consensus Estimate, and grew 6.7% year over year. For the full year 2025, revenues increased by 4.8% to $1.52 billion, also in line with estimates [3]. - NII on a tax-equivalent basis rose 3% year over year to $284.7 million, with a net interest margin (NIM) of 3.48%, expanding by 7 basis points [3]. Non-Interest Income and Expenses - Non-interest income totaled $107.1 million, up 17.5% year over year, driven by increases across all components, exceeding the projected $99.7 million [4]. - Total non-interest expenses increased by 7.7% to $217.9 million, slightly above the estimate of $215.6 million, leading to an efficiency ratio increase to 54.93% from 54.46% in the previous year [4]. Loans and Deposits - As of December 31, 2025, total loans amounted to $24 billion, a 1.5% increase from the prior quarter, while total deposits rose by 2.2% to $29.3 billion [5]. Credit Quality - The provision for credit losses was $13.1 million, up 10.4% from the prior-year quarter, with net charge-offs (annualized) at 0.22% of average total loans, an increase of 2 basis points [6]. Capital and Profitability Ratios - The Tier 1 leverage ratio decreased to 11.17% from 11.29% year-over-year, and the common equity Tier 1 ratio fell to 13.66% from 14.14% [9]. - Return on average assets improved to 1.41% from 1.40% in the previous year, while return on average common equity declined to 11.28% from 11.74% [9]. Share Repurchase - In the reported quarter, HWC repurchased 2.5 million shares at an average price of $57.62 per share [10]. Strategic Outlook - The company's strategic expansion initiatives and strong loan balance are expected to support ongoing top-line growth, while challenges include weakening asset quality, elevated expenses, and subdued mortgage income [11].

Core Insights - KeyCorp's fourth-quarter 2025 adjusted earnings per share from continuing operations were 41 cents, exceeding the Zacks Consensus Estimate of 38 cents, reflecting a 7.9% increase from the prior-year quarter [1][9] - Despite better-than-expected results, KeyCorp's shares fell over 2% in early trading due to bearish market trends and a significant rise in provisions [1] Financial Performance - The quarterly results were bolstered by higher net interest income (NII) and non-interest income, alongside an increase in average loans and deposits [2] - Total revenues for the fourth quarter reached $2 billion, a 12.5% year-over-year increase, surpassing the Zacks Consensus Estimate of $1.94 billion [4] - For the full year 2025, total revenues were $7.51 billion, up 16.4% from the previous year, also exceeding the consensus estimate of $7.43 billion [4] Income and Expenses - NII on a taxable-equivalent basis rose 15.3% year over year to $1.22 billion, with the net interest margin expanding 41 basis points to 2.82% [5] - Adjusted non-interest income increased by 8.3% to $782 million, driven by higher investment banking and corporate services income [6] - Non-interest expenses rose nearly 1% to $1.24 billion, with adjusted expenses increasing 2.4% to $1.26 billion [6] Loan and Deposit Growth - Average total loans were $106.32 billion, showing a slight increase from the previous quarter, while average total deposits were $150.71 billion, also up marginally [7] Credit Quality - Provisions for credit losses surged to $108 million from $39 million in the prior-year quarter, impacting investor sentiment despite solid earnings [8][9] - Net loan charge-offs as a percentage of average total loans decreased by 4 basis points year over year to 0.39%, and non-performing assets as a percentage of the portfolio declined by 15 basis points to 0.59% [10] Capital Ratios - KeyCorp's tangible common equity to tangible assets ratio improved to 8.4% as of December 31, 2025, up from 7% in the same period of 2024 [11] - The Tier 1 risk-based capital ratio was 13.4%, down from 13.7%, while the Common Equity Tier 1 ratio decreased to 11.7% from 11.9% [11] Share Repurchases - During the reported quarter, KeyCorp repurchased shares worth $200 million [12] Strategic Outlook - The company is expected to benefit from decent loan balances, balance sheet repositioning efforts, and stabilizing funding costs, although weak asset quality remains a concern [13]

Core Viewpoint - Fineco reported a higher-than-expected profit for Q3, with net income reaching 163 million euros, exceeding analyst expectations of 154 million euros [1]. Group 1: Financial Performance - Fineco's Q3 revenue was 325 million euros, matching the previous year's Q3 and surpassing the analyst consensus forecast of 314 million euros, driven by a stronger net interest margin [3]. - The net income for the period of July-September was 163 million euros ($190 million), which was above the Visible Alpha analyst consensus of 154 million euros [1]. Group 2: Client Growth and Future Outlook - Fineco added approximately 19,300 clients in October, representing a 30% increase compared to October 2024 [2]. - The company anticipates that 2025 will be a record year for new clients, surpassing the historical high of 2024 [2]. - Net inflows of new money for the last month are expected to have increased by over 30% year-on-year, amounting to around 1.3 billion euros [2]. Group 3: Revenue Growth Expectations - For 2026, Fineco expects positive contributions to revenue growth from all business areas, with further details to be provided during the Capital Market Day on March 4, 2026 [4]. - Jefferies indicated that the outlook suggests a confirmation of growth in net interest margin (NIM) from 2025 onwards, following a decline in that year [4].

Core Insights - Westpac Banking Corporation (WBC) reported a full-year 2025 net income of A$6.92 billion, slightly below the estimated A$6.93 billion, with a strong second-half performance of A$3.60 billion, surpassing analyst projections of A$3.58 billion [2][9] - The bank's Common Equity Tier 1 (CET1) ratio was reported at 12.5%, exceeding expectations of 12.4%, and is expected to improve by approximately 20 basis points following the sale of its RAMS mortgage portfolio [3][9] - Westpac confirmed the sale of its A$21.4 billion RAMS mortgage portfolio to a consortium including Pepper Money (PPM), KKR, and PIMCO, with completion anticipated in the second half of 2026, marking a strategic exit from a non-core lending brand [4][6][9] - The core net interest margin (NIM) excluding significant items was reported at 1.81%, while the group NIM excluding items stood at 1.94%, indicating stable profitability metrics [5][9] - A final dividend per share of A$0.77 was declared for shareholders [5][9]

Core Viewpoint - Westpac Banking Corp (WBC) is the second-largest bank in Australia, primarily focused on financing homeowners, investors, and businesses, with a current share price of approximately $39.33 [1] Group 1: Company Overview - Westpac is headquartered in Sydney and plays a significant role in the Australian financial system by providing various financial services [1] - The bank's workplace culture rating is 3.4 out of 5, which is above the ASX banking sector average of 3.1 [3] Group 2: Profitability Metrics - The net interest margin (NIM) is a crucial measure of profitability for banks, with Westpac's NIM at 1.93%, higher than the ASX major bank average of 1.78% [5] - Westpac earned 87% of its total income from lending activities last year, highlighting the importance of lending in its revenue generation [6] Group 3: Financial Ratios - Return on equity (ROE) for Westpac was 9.7%, surpassing the sector average of 9.35%, indicating effective use of shareholder equity [7] - The common equity tier one (CET1) ratio for Westpac was 12.5%, which is above the sector average, providing a strong capital buffer [8] Group 4: Dividend Valuation - The total dividend for Westpac last year was $1.66, with projections suggesting a growth rate between 2% and 4% [10] - Using a dividend discount model (DDM), the estimated average valuation of WBC shares is $35.10, while an adjusted valuation based on expected future dividends is $34.05 [11] - Considering franking credits, the 'fair value' forecast for WBC shares rises to $48.64, indicating potential value for investors [11]

Core Viewpoint - China's banks are approaching a "Japanification moment," characterized by prolonged low growth and weak profitability, similar to Japan's economic state post-1990s asset bubble burst [1] Group 1: Profitability and Economic Conditions - Years of yielding margins to support the economy have left China's banking system thin on profitability and more exposed to credit shocks [1] - The central bank prioritizes safeguarding growth and social stability over bank profits, leading to historic lows in prime loan rates, further squeezing bank profitability [3] Group 2: Lending Practices and Market Conditions - Chinese banks are directed to lend to weak borrowers and offer concessions, including fee reductions for small businesses and lower charges on consumer products [4] - Geopolitical tensions have discouraged banks from expanding into some foreign markets, complicating their growth strategies [4] Group 3: Net Interest Margin (NIM) Projections - S&P projects China's NIM to settle at 1.27% by 2027, down from 1.52% in 2024, assuming GDP growth stabilizes by then [6] - International expansion could slow the decline in NIM but may lead to higher credit losses in the future [5] Group 4: Market Reactions and Bond Yields - Chinese bank stocks have rallied since 2023, driven by declining government bond yields, prompting investors to seek better returns in bank stocks, which are viewed as stable with generous dividends [6] - Ten-year Chinese government bond yields fell to a record low of 1.64% in June 2023, before climbing back to 1.9% [7]