Financial Data and Key Metrics Changes - The company's Fourth Quarter GAAP net income was $9.1 million, or $1.15 per share, which includes a $1.5 million one-time adjustment related to tax provisions [3][9] - Excluding the one-time adjustment, operating income for the quarter was $10.7 million, or $1.36 per share [3][13] - Pre-provision net revenue return on average assets was 180 basis points, an increase of 10 basis points from the prior quarter and 75 basis points from Q4 of 2024 [4][9] - Net interest margin expanded to 340 basis points, up 6 basis points from the prior quarter [9][10] - The efficiency ratio improved to 50.8% from 51.4% in the prior quarter [8] Business Line Data and Key Metrics Changes - The SBA division contributed significantly to non-interest income, with $2.2 million in gains on sale for the quarter, leading to a total of $5.1 million for the year [7][11] - Loan production remained strong, with $240 million of new loans funded in the Fourth Quarter, totaling $758 million for the year [6][9] - Net loan growth for the quarter was $122 million, with a total of $134 million for the year, representing 5% annual growth [7][9] Market Data and Key Metrics Changes - Floating-rate loans comprised 38% of the total loan portfolio at year-end 2025, up from 23% at the end of 2024 [5] - Average low-cost deposit balances increased by $22 million, or 5%, over the prior quarter and by $86 million, or 21%, compared to Q4 of 2024 [5][11] Company Strategy and Development Direction - The company aims to strengthen credit, improve the funding mix, build non-interest income, and generate high-quality growth while investing in people and technology [14][15] - The focus on diversified recurring revenue sources is yielding positive results, particularly with the growth of the SBA division [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a strong position and anticipates loan growth of 4%-5% and net interest income in the range of $111 million-$112 million [15] - The company expects non-interest income to increase to approximately $11 million-$12 million and total non-interest expense to be between $64 million-$65 million [15] Other Important Information - The allowance for credit losses stands at 108 basis points of total loans, with coverage of non-performing loans increasing to 188% [12] - The effective tax rate for the full year 2025 was 27.4%, influenced by a one-time tax expense, with an expected future rate of approximately 25% [13] Q&A Session Summary Question: Loan growth expectations for 2026 - Management indicated that loan growth is expected to pick up in 2026, driven by a balance of payoffs and new originations [18][19] Question: Composition of the loan pipeline - The loan pipeline is currently 60% C&I and 40% Investor CRE, with expectations to continue strong C&I real estate originations in 2026 [24] Question: Low-cost deposit growth expectations - While no specific guidance was provided, management expects steady improvement in low-cost deposits, which grew 5% from the previous quarter and 21% year-over-year [28][30] Question: SBA originations outlook for 2026 - The company anticipates achieving significant SBA originations in 2026, building on the first full year of the SBA division's operations [42] Question: Expense growth drivers for 2026 - Expense growth is expected to be driven by investments in people and processes, with a headcount increase of over 10% in the previous year [48][51]

Financial Data and Key Metrics Changes - Q4 GAAP net income was $9.1 million, or $1.15 per share, including a $1.5 million one-time tax adjustment; operating income was $10.7 million, or $1.36 per share [3][4] - Pre-provision net revenue return on average assets was 180 basis points, up 10 basis points from the prior quarter and 75 basis points from Q4 2024 [4][9] - Net interest margin expanded to 340 basis points, a 6 basis point increase from the prior quarter [9][10] - Efficiency ratio improved to 50.8%, compared to 51.4% in the prior quarter [8] Business Line Data and Key Metrics Changes - Net loan growth for Q4 was $122 million, with full-year growth of $134 million, representing 5% annual growth [7][9] - Non-interest income increased to $3.4 million, driven by $2.2 million of SBA gain on sale income, a 35% increase from the linked quarter [11] - SBA originations totaled $24 million in Q4, contributing to $68 million of total originations for the year [7][9] Market Data and Key Metrics Changes - Floating-rate loans comprised 38% of the total loan portfolio, up from 23% at the end of 2024 [5] - Average low-cost deposit balances increased by $22 million, or 5%, over the prior quarter and by $86 million, or 21%, versus Q4 2024 [5][9] Company Strategy and Development Direction - The company aims to strengthen credit, improve funding mix, build non-interest income, and invest in technology and people [15][16] - The focus on diversified recurring revenue sources is yielding positive results, particularly in the SBA division [15] - The company anticipates loan growth of 4%-5% and expects net interest income to be in the range of $111 million-$112 million for 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into 2026, highlighting improvements in credit quality and funding mix [15][16] - The company expects to continue benefiting from a favorable repricing of time deposits over the next 12 months [10][12] Other Important Information - The allowance for credit losses stands at 108 basis points of total loans, with coverage of non-performing loans increasing to 188% [11][12] - The effective tax rate for the full year 2025 was 27.4%, influenced by a one-time tax expense [14] Q&A Session Summary Question: Loan growth expectations for 2026 - Management indicated that loan growth is expected to pick up in 2026, driven by a balance of payoffs and new originations [19][21] Question: Composition of the loan pipeline - The loan pipeline is currently 60% commercial and industrial (C&I) loans, with a focus on maintaining strong C&I real estate originations [25] Question: Expectations for low-cost deposit growth - While no specific guidance was provided, management expects steady improvement in low-cost deposits, which grew 5% from the previous quarter [29][31] Question: SBA originations outlook for 2026 - Management anticipates significant growth in SBA originations, aiming for around $100 million to achieve non-interest income targets [39][43] Question: Drivers of expense growth in 2026 - Expense growth is expected to be driven by investments in people and processes, with a headcount increase of over 10% in the past year [49][52]

Financial Data and Key Metrics Changes - The company reported net earnings of $83 million or $0.64 per share for the fourth quarter, with an annualized return on average assets of 1.34% and an adjusted return on average tangible common equity of 17.6% [3][10] - Pre-provision net revenue reached a record $111 million, representing an ROA of 1.78% [3][10] - Revenue increased to a record $226 million, driven by record net interest income of $197 million and non-interest income of $28.3 million [10] Business Line Data and Key Metrics Changes - The commercial loan team generated total new loan production of $3.2 billion in 2025, with net commercial loan growth of 5.5% for the year [4] - Average non-interest-bearing deposits grew by 2% annualized, contributing to the overall growth in core deposits, which increased by $260 million or 6.6% annualized [5] - Non-interest income increased to $28.3 million, with significant contributions from the insurance agency and SBA loan sales [7][8][15] Market Data and Key Metrics Changes - The company experienced a favorable improvement in non-performing assets, which declined to 0.32% of total assets [6][14] - The average cost of total deposits decreased to 2.1%, while the total cost of funds decreased to 2.34% [13] Company Strategy and Development Direction - The company plans to continue investing in revenue-producing talent across various platforms, including middle market banking, treasury management, SBA, wealth management, and insurance [8][9] - A core system conversion is scheduled for the fall of 2026 to enhance scalability and digital capabilities [9][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum and improving profitability, with expectations for loans and deposits to grow in the 4%-6% range for 2026 [18] - The competitive landscape for deposits remains challenging, but the company is focused on maintaining its core model and capturing market share [36] Other Important Information - The company announced a new share repurchase authorization allowing for the buyback of an additional 2 million shares [8] - The tangible book value per share increased by 3.8% to $15.70, and the tangible common equity ratio rose to 8.48% [17] Q&A Session Summary Question: Inquiry about the effective tax rate and tax credit investments - Management clarified that the effective tax rate is projected to be approximately 29% for 2026, with benefits from tax credit investments realized throughout the year [23][25] Question: Discussion on capital deployment priorities - Management indicated that organic growth remains the primary focus, with potential considerations for dividends and investments in insurance and wealth platforms [26][27] Question: Insights on deposit competition and its impact - Management acknowledged heightened competition for deposits but emphasized their strong performance in core deposits and the ability to capture market share [36] Question: Trends in the commercial real estate (CRE) market - Management noted a healthier CRE market and expressed no interest in acquiring portfolios from competitors, focusing instead on organic growth [40] Question: Potential for loan yields to increase - Management indicated that there is potential for yields to improve as the pipeline yield increases and backflow repricing occurs [45] Question: Plans for geographic expansion - Management expressed interest in expanding into adjacent geographies, including Long Island and the Philadelphia suburbs, while already having teams in those areas [50]

Financial Data and Key Metrics Changes - Orrstown achieved a record annual net income of $80.9 million, or $4.18 per diluted share, with a return on average equity of 14.76% and return on average assets of 1.49% [3] - For the fourth quarter, net income was $21.5 million, or $1.11 per diluted share, with a net interest margin of 4.00%, down from 4.11% in the previous quarter [10][11] - Fee income for the fourth quarter was $14.4 million, contributing to 22% of total revenues, marking the third consecutive quarter above 20% [5][12] Business Line Data and Key Metrics Changes - Loan growth was steady at 4% during the fourth quarter, with a balanced mix across commercial and real estate lending [7][16] - Non-interest income increased to $14.4 million in the fourth quarter from $13.4 million in the third quarter, driven by growth in wealth management and treasury management services [12][14] - The bank recorded minimal provision expense of $0.1 million and net charge-offs of $0.5 million, with classified loans decreasing by $5.7 million from the prior quarter [8][15] Market Data and Key Metrics Changes - Deposits were relatively flat, declining slightly by $5 million, with a loan-to-deposit ratio of 89% [17] - The cost of deposits was 1.98% for the fourth quarter, with expectations for reductions in funding costs starting in the first quarter of 2026 [11][17] Company Strategy and Development Direction - The company is focused on enhancing non-interest income and investing in talent to drive future growth, including the recent hiring of a Chief Wealth Officer [6][20] - There is a strong emphasis on building a middle-market commercial lending platform and expanding wealth management services in growth markets [40][43] - The company remains committed to organic growth rather than pursuing mergers and acquisitions, although capital build presents optionality for future opportunities [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong profitability and expects to continue building shareholder value through strong earnings and an attractive dividend [9][20] - The company anticipates a net interest margin in the range of 3.90%-4% for 2026, with a focus on managing funding costs and maintaining loan growth [11][32] - Management remains optimistic about the future, citing a robust loan pipeline and the ability to responsibly grow the loan portfolio [8][20] Other Important Information - The board approved a quarterly dividend increase from $0.27 to $0.30 per share, marking the fourth increase in 18 months [9] - The investment portfolio yield decreased to 4.58% due to declining rates, but the portfolio is positioned well for earnings growth [18] Q&A Session Summary Question: Increase in guidance for non-interest income and expenses - Management clarified that the increase reflects ongoing strategy to invest in talent to drive future earnings, not a change in strategy [24][25] Question: NIM trajectory for the year - Management indicated that core NIM is expected to increase in Q1, with a decline in purchase accounting accretion impacting future margins [28][31] Question: Wealth management AUM and customer retention - Total AUM was over $3 billion, with no significant decline in customer portfolios from Codorus Valley [37][38] Question: Focus areas for hiring - The company is focusing on building out the middle-market commercial lending platform and enhancing wealth management services [40] Question: Share buybacks and capital allocation - Management is monitoring share buyback opportunities but has not found the stock price favorable for repurchases [48] Question: Yields on recent securities purchases - The average yield on recent purchases was 4.92%, with expectations for continued benefits from the investment portfolio [50]

Financial Data and Key Metrics Changes - Orrstown achieved a record annual net income of $80.9 million, or $4.18 per diluted share, with a return on average equity of 14.76% and return on average assets of 1.49% [3] - For Q4 2025, net income was $21.5 million, or $1.11 per diluted share, with a net interest margin of 4.00%, down from 4.11% in Q3 [9][10] - Fee income for the quarter was $14.4 million, contributing to 22% of total revenues, marking the third consecutive quarter above 20% [5][11] Business Line Data and Key Metrics Changes - Loan growth was steady at 4% during Q4, with a balanced mix across commercial and real estate lending [6][15] - Non-interest income increased to $14.4 million in Q4 from $13.4 million in Q3, driven by growth in wealth management and treasury management services [11][12] - The bank recorded minimal provision expense of $0.1 million and net charge-offs of $0.5 million, with classified loans decreasing by $5.7 million from the prior quarter [7][14] Market Data and Key Metrics Changes - Deposits were relatively flat, declining slightly by $5 million, with a loan-to-deposit ratio of 89% [16] - The cost of deposits was 1.98% for Q4, with expectations for reductions in funding costs starting in Q1 2026 [16][10] Company Strategy and Development Direction - The company continues to focus on enhancing fee income and investing in talent, with recent hiring of a Chief Wealth Officer to drive growth in wealth management [5][6] - Orrstown is strategically investing in the middle-market commercial lending platform and expanding its presence in growth markets [38] - The company remains committed to organic growth, with M&A being a lower priority unless suitable opportunities arise [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong profitability and anticipates continued growth in loan production and fee income [19] - The company expects net interest margin to stabilize around 4% despite anticipated rate cuts in 2026 [10][31] - Management remains optimistic about the future, citing a robust loan pipeline and strong credit quality [7][19] Other Important Information - The board approved a quarterly dividend increase from $0.27 to $0.30 per share, marking a 50% increase since the merger date [8] - The investment portfolio yield decreased to 4.58% from 4.67% due to declining rates, but the portfolio is positioned well for earnings growth [17] Q&A Session Summary Question: What drove the increase in guidance for non-interest income and expenses? - Management clarified that the increase reflects ongoing strategy to invest in talent to drive future earnings, not a change in strategy [24][25] Question: Can you clarify the NIM trajectory for the year? - Management indicated that core NIM is expected to increase in Q1, with a decline in purchase accounting accretion of about 2-3 basis points each quarter [28][30] Question: What is the current AUM or AUA and success in onboarding Codorus Valley customers? - Total AUM was over $3 billion, with no significant decline in the portfolio from Codorus Valley customers [36][37] Question: What areas is the company focusing on for hiring? - The company is focusing on building out the middle-market commercial lending platform and enhancing wealth management in growth markets [38] Question: What is the current thinking around share buybacks? - Management is monitoring share buyback opportunities but has not found the current stock price favorable for repurchases [46] Question: What yields were achieved on recent securities purchases? - The average yield on recent purchases was 4.92%, with expectations for continued benefits from the investment portfolio [47]

Core Viewpoint - Ponce Financial Group, Inc. reported significant growth in profitability for the fourth quarter and full year of 2025, driven by increased net interest income and controlled operating expenses, while maintaining strong capital ratios and commitment to community investment [4][6]. Financial Performance Highlights - For Q4 2025, net income available to common stockholders was $9.9 million, or $0.42 per diluted share, compared to $6.2 million, or $0.27 per diluted share in Q3 2025, and $2.7 million, or $0.12 per diluted share in Q4 2024 [6][9]. - Total net income for Q4 2025 was $10.1 million, an increase from $6.5 million in Q3 2025 and $2.9 million in Q4 2024 [9]. - For the full year 2025, net income available to common stockholders was $27.6 million, or $1.20 per diluted share, compared to $10.3 million, or $0.46 per diluted share in 2024 [6][12]. Net Interest Income and Margin - Net interest income for Q4 2025 was $27.9 million, an increase of $2.7 million, or 10.64%, from Q3 2025, and an increase of $7.2 million, or 34.75%, from Q4 2024 [6][13]. - The net interest margin for Q4 2025 was 3.57%, up from 3.30% in Q3 2025 and 2.80% in Q4 2024 [6][16]. Non-Interest Income - Non-interest income for Q4 2025 was $3.5 million, an increase of $2.0 million, or 133.18%, from Q3 2025, and an increase of $1.4 million, or 65.90%, from Q4 2024 [17][20]. - For the full year 2025, non-interest income was $9.4 million, an increase of $2.2 million, or 30.49%, compared to $7.2 million in 2024 [20]. Non-Interest Expense - Non-interest expense for Q4 2025 was $16.6 million, remaining flat compared to Q3 2025 and decreased by $0.8 million from Q4 2024 [21][23]. - For the full year 2025, non-interest expense was $67.0 million, a decrease of $0.4 million, or 0.66%, compared to $67.5 million in 2024 [23]. Asset Quality and Credit Losses - Total non-performing assets were $30.2 million as of December 31, 2025, down from $32.4 million at September 30, 2025, and $32.1 million at December 31, 2024 [25]. - A credit loss provision of $1.1 million was recorded for Q4 2025, compared to $1.4 million in Q3 2025 and $0.9 million in Q4 2024 [26][27]. Balance Sheet Summary - Total assets increased by $184.0 million, or 6.05%, to $3.22 billion as of December 31, 2025, primarily due to a $312.7 million increase in net loans receivable [28]. - Total liabilities increased by $148.0 million, or 5.84%, to $2.68 billion as of December 31, 2025, largely due to a $151.4 million increase in deposits [29]. - Total stockholders' equity increased by $36.0 million, or 7.13%, to $541.5 million as of December 31, 2025, driven by $28.7 million in net income [30].

Financial Data and Key Metrics Changes - In Q4 2025, EPS was $2.59, up 33% year-over-year, with a return on average assets of 1.23% and return on average tangible common equity at 16.9% [5] - For the full year, net interest income reached a record $2.9 billion, net revenue was $3.5 billion, and pre-provision net revenue was $1.4 billion, with net revenue and pre-provision net revenue increasing 12% and 26% respectively from the prior year [10] - Non-interest income rose 25%, primarily driven by stronger commercial banking and disbursement fees [10] Business Line Data and Key Metrics Changes - HFI loan growth for the full year was $5 billion, or 9%, with deposits increasing by $10.8 billion, or 16% [6] - Mortgage banking revenues were relatively stable, only down $5 million compared to the prior quarter, with expectations for stronger results in 2026 due to favorable regulatory changes and mortgage rate reductions [7] - Regional Banking posted about $1 billion of loan growth, with significant contributions from Innovation Banking and hotel franchise finance [14] Market Data and Key Metrics Changes - Total deposits were essentially flat for the quarter, with notable growth in Regional Banking deposits, which increased by $1.4 billion [15] - The mix of ECR deposits is expected to hold constant, with around 37% of total deposits being ECR on an average basis [52] - The bank's total assets expanded to approximately $93 billion, with total equity ending the year at $8 billion [14] Company Strategy and Development Direction - The company aims to cross $100 billion in assets by year-end 2026 while maintaining steady expense growth [8] - The focus is on organic growth, with loan growth projected at $6 billion and deposit growth at $8 billion for 2026 [24] - The company is investing in new business lines and technology to support future growth, with a strong emphasis on operational efficiency [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong earnings momentum for 2026, supported by a healthier macro backdrop and accommodative regulatory environment [24] - The outlook includes expectations for net interest income growth of 11%-14% and non-interest income growth of 2%-4% [25] - Management anticipates net charge-offs to be between 25 and 35 basis points as they work through non-accrual balances [26] Other Important Information - The company issued $400 million of subordinated debt to bolster its total capital ratio [21] - Tangible book value per share increased by 17.3% year-over-year to $61.29, reflecting strong organic earnings [21] - The efficiency ratio improved, with a Q4 efficiency ratio of 55.7% [11] Q&A Session Summary Question: Balance sheet growth guidance - Management indicated that the projected loan growth of $6 billion and deposit growth of $8 billion leads the peer group and reflects organic growth [31] Question: Charge-off expectations - Charge-offs are expected to be slightly higher in the first half of the year as the company works to reduce non-accrual loans [34] Question: Non-interest income sustainability - The strength in non-interest income is driven by treasury management and digital disbursements, with expectations for continued growth [39] Question: ECR deposit expectations - ECR deposits are expected to hold constant in mix, with a beta of 65%-70% on ECR deposits [54] Question: Loan origination spreads - The company is experiencing competitive pressures but maintains a focus on quality and operational efficiency [57]

Financial Data and Key Metrics Changes - NBT Bancorp reported net income of $55.5 million or $1.06 per diluted common share for Q4 2025, with core operating earnings of $1.05 per share, consistent with the prior quarter [6][10] - Operating return on assets was 1.37% for the second consecutive quarter, with a return on tangible equity of 17.02%, reflecting continued improvement over the prior year [3][4] - Tangible book value per share increased to $26.54, an 11% rise year-over-year [4] - Net interest margin improved by 36 basis points year-over-year, although it decreased by 1 basis point to 3.65% compared to the prior quarter [4][9] Business Line Data and Key Metrics Changes - Total loans increased by $1.63 billion or 16.3% for the year, including acquired loans from Evans Bancorp [7] - Non-interest income grew by 25% from the fourth quarter of the prior year, with each non-banking business achieving record results [6][10] - Total deposits rose by $2 billion from December 2024, with a favorable shift in the mix towards lower-cost checking and savings accounts [8][9] Market Data and Key Metrics Changes - The company experienced strong demand across its franchise, with pipelines stronger than the previous year, particularly in Western New York [20] - Commercial production remained robust, although there was a higher level of commercial real estate payoffs [8][20] Company Strategy and Development Direction - The company is focused on organic growth strategies and evaluating M&A opportunities, supported by strong capital levels [5][4] - NBT Bancorp is expanding its presence in New England and Western New York, with plans for new branches and hiring initiatives [39][40] Management's Comments on Operating Environment and Future Outlook - Management noted that the current level of net interest income and fee-based revenues has produced solid results, with stable asset quality [13] - The company is optimistic about growth opportunities despite potential risks from commercial real estate payoffs [17][20] Other Important Information - The effective tax rate for Q4 was 20.3%, lower than the prior quarter due to the finalization of merger-related expense assessments [12] - The company repurchased 250,000 shares in Q4 as part of its capital planning strategy [5] Q&A Session Summary Question: Expectations on commercial real estate payoffs - Management indicated that $150 million-$175 million of unscheduled commercial real estate payoffs occurred in 2025, which could pose a risk for growth moving forward [15][17] Question: Loan pipeline and opportunities in specific regions - Demand is strong across various markets, with good opportunities in Rochester and Buffalo, and the company is optimistic about future growth in these areas [20] Question: Changes in reserve against the solar book - Management clarified that the increase in reserves was a recalibration rather than a response to negative trends [29] Question: Impact of U.S.-Canada tensions on the economy - Management noted that Canadian customers are frustrated, which could affect future investments and commerce [31] Question: M&A hurdle rates and acquisition strategy - The company is looking for M&A opportunities that can generate at least $0.05 of accretion, focusing on modest geographic extensions or productive fill-in opportunities [34][35] Question: Competitive factors in lending - Competition remains rational, with some pressure as banks seek growth, but no irrational behavior has been observed [54] Question: Credit quality and areas of caution - Management is monitoring concentrations in hospitality and office space but does not see any emerging trends that warrant significant caution [60] Question: Charge-off expectations - Charge-off rates are expected to normalize lower as the consumer balances wind down, with a target range of 15-20 basis points [65][66] Question: Share repurchase catalysts - The company will continue to evaluate share repurchases based on value and capacity, with the potential for similar activity in early 2026 [73]

Core Insights - First Western Financial reported improved profitability in Q4 2025, driven by loan and deposit growth, net interest margin expansion, and disciplined expense management [5][8] Loan and Deposit Growth - Loans held for investment increased by $59 million from the previous quarter, with new loan production totaling $146 million at an average rate of 6.36% [1][7] - Total deposits rose by $102 million, attributed to new deposit relationships, despite seasonal outflows [9] Financial Performance - The company posted a net income of $3.3 million, or $0.34 per diluted share, which was higher than the prior quarter [4][8] - Gross revenue increased by 1.5% from the prior quarter and 12.2% year-over-year, primarily due to higher net interest income [10] Net Interest Margin - Net interest margin expanded to 2.71%, driven by lower deposit costs and the opportunity to reprice approximately $250 million of fixed-rate loans maturing next year [7][11] - Net interest income rose by 5.6% sequentially and 21.7% year-over-year, attributed to a higher net interest margin [11] Asset Quality and Expenses - Asset quality trends remained stable, with decreases in non-accrual loans and non-performing assets [17] - Non-interest expense increased by $1.2 million due to a $1.4 million write-down on an OREO property, but excluding this, expenses decreased [16] Future Outlook - Management expects continued balance sheet growth in 2026 to be similar to 2025 levels, with positive trends in net interest margin and fee income [18] - The company aims to keep quarterly expenses below $20 million while remaining open to investment opportunities [19]

Core Insights - Sallie Mae (SLM) reported a strong fourth-quarter performance with earnings per share (EPS) of $1.12, up from 50 cents in the prior-year quarter, exceeding the Zacks Consensus Estimate by 18.2% [1][2][9] - The company's GAAP net income attributable to common stock was $229 million, compared to $107 million in the same quarter last year, with full-year 2025 net income reaching $729 million, up from $590 million in 2024 [2][9] Financial Performance - Fourth-quarter net interest income (NII) was $377 million, an increase from $362 million in the prior-year quarter, beating the Zacks Consensus Estimate by 0.4%, with a net interest margin of 5.21%, expanding 29 basis points year over year [3][9] - Full-year 2025 NII totaled $1.5 billion, slightly up from $1.48 billion in 2024, matching the Zacks Consensus Estimate [3] - Non-interest income for the fourth quarter was $77 million, significantly higher than $28 million in the year-ago quarter [3] Expense and Credit Quality - Non-interest expenses rose 4.7% year over year to $157 million [4] - The company reported provision benefits of $19 million in the fourth quarter, contrasting with provisions for credit losses of $108 million in the prior-year quarter, primarily due to the release of reserves associated with loan sales [5] - Net charge-offs for private education loans were $98 million, slightly up from $95 million in the year-ago quarter, with charge-offs as a percentage of average loans in repayment at 2.42%, marginally higher than 2.38% in the prior-year quarter [5][6] Balance Sheet and Share Repurchase - As of December 31, 2025, deposits totaled $21.1 billion, relatively flat compared to the year-ago quarter, while private education loans held for investment were $20.3 billion, down from $20.9 billion [7] - Private education loan originations increased 4% year over year to approximately $1.0 billion [7] - In the fourth quarter, SLM repurchased 3.8 million shares for $106 million, with a total of 12.8 million shares repurchased for $373 million in 2025 under its share buyback program [8][10] Overall Assessment - The strong fourth-quarter performance was driven by solid growth in net interest income, higher non-interest income, and favorable provisions for credit losses, with stable loan originations and continued capital return being positive factors [11]