Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, 63% higher year-over-year and 16% higher quarter-over-quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million compared to the linked quarter [11] Business Line Data and Key Metrics Changes - Loans and deposits grew modestly in the quarter, with non-interest-bearing demand deposits increasing by 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% being residential mortgage and home equity loans [7] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [7] Market Data and Key Metrics Changes - Bank of Hawaii's market share growth continued in 2025, advancing another 40 basis points [4] - Approximately 93% of loans are based in Hawaii, with 4% in the Western Pacific and 3% on the mainland [6] Company Strategy and Development Direction - The company aims to leverage its unique core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The focus remains on improving customer service and understanding market changes to maintain competitive advantages [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although growth may not continue at the same rate [24] - The outlook for loan growth in 2026 is expected to be mid-single digits, with a more positive pipeline for both consumer and commercial loans [29][54] Other Important Information - The company reported a provision for credit losses of $2.5 million, unchanged from the linked quarter [17] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [19] - The company resumed its stock repurchase program, purchasing approximately $5 million of common shares [19] Q&A Session Summary Question: Non-interest-bearing deposit growth - Management noted a 6% increase in non-interest-bearing deposits, attributing it to a balanced contribution from various business segments, but expects growth to moderate [24] Question: Loan pipeline outlook - Management indicated a generally positive outlook for loan pipelines, with expectations for mid-single-digit growth in 2026 [29][54] Question: Margin update - Management confirmed that the margin target of near 2.90% is based on year-end expectations, not fourth-quarter averages [33] Question: Special mention and classified balances - Special mention balances at the end of the fourth quarter were $63.4 million, down from the previous year, indicating strong credit quality [38] Question: Fee income opportunities - Management highlighted ongoing efforts in wealth management and a strong pipeline for fee income growth, aiming for a 10% increase [75]

Financial Performance - The company reported a pre-provision net revenue of $278 million, reflecting a 12% year-over-year increase driven by a $52 million growth in net interest income, which also grew by 9% year-over-year [1][7] - Net interest margin remained stable at 3.47%, with an adjusted net interest margin increasing by 17 basis points to 2.75% due to cost reduction efforts [5][11] - Total equity increased by $508 million, with tangible book value per share climbing 14% year-over-year [13][23] Loan and Deposit Growth - The balance sheet expanded by $2.1 billion to $83 billion in total assets, with held-for-investment loan growth of $1.1 billion and deposit growth of $3 billion [12][15] - Mortgage loan production volume increased by 25% annually, although quarterly mortgage banking revenue declined due to lower gains on sale [8][15] - The company experienced strong loan growth in commercial and industrial (C&I) loans, which now account for 44% of the held-for-investment loan portfolio [13][14] Asset Quality - Asset quality remained stable, with net charge-offs declining to 20 basis points of average loans and provisioning for the quarter at $31 million, significantly below prior quarter levels [5][9] - Non-accrual loans decreased by $25 million quarter-over-quarter, indicating improved asset quality [5][16] - The company maintains a conservative allowance for credit losses (ACL) ratio, which is weighted towards more pessimistic economic scenarios [18][21] Capital Management - The CET1 capital ratio decreased to 11.1% due to strong loan growth, while the tangible common equity to total assets ratio remained at 7.2% [22][23] - The company issued $293 million in preferred equity to enhance Tier 1 leverage, which increased from 8.1% to 8.6% [22][31] - The company aims to maintain a CET1 ratio above 11% while focusing on sound loan growth to support capital adequacy [24][44] Outlook and Guidance - The company expects loan growth of $5 billion and deposit growth of $8 billion for the full year, with net interest income projected to increase by 6% to 8% [24][25] - Noninterest income is also anticipated to grow in line with net interest income, supported by deeper client relationships [25][26] - The effective tax rate for 2025 is expected to be approximately 20% [26]

Core Viewpoint Preferred Bank reported its financial results for the fourth quarter of 2025, showing a net income of $34.8 million, a decrease from the previous quarter but an increase compared to the same quarter last year. The results reflect challenges in net interest income due to declining market interest rates, alongside growth in loans and deposits. Financial Performance - The net income for the fourth quarter of 2025 was $34.8 million or $2.79 per diluted share, down $1.1 million from the prior quarter but up $4.6 million year-over-year [1][2] - For the full year 2025, net income was $133.6 million or $10.41 per diluted share, compared to $130.7 million or $9.64 per diluted share in 2024 [12] - The net interest margin for the fourth quarter was 3.74%, down from 3.92% in the previous quarter, primarily due to Federal Reserve interest rate cuts [3][10] Loan and Deposit Growth - Loan growth for the quarter was $182.3 million, representing a 12.4% annualized increase, while deposit growth was $115.8 million, or 7.4% annualized [4] - Total loans at December 31, 2025, were $6.05 billion, an increase of $413.6 million from the previous year, and total deposits were $6.35 billion, up $428.6 million [13] Noninterest Income and Expenses - Noninterest income for the fourth quarter was $8.1 million, significantly higher than $3.6 million in the same quarter last year, driven by a $3.6 million gain on the sale of OREO properties [7] - Total noninterest expense was $24.4 million for the fourth quarter, up from $21.5 million in the previous quarter but down from $28.2 million year-over-year [8][10] Asset Quality - Non-accrual loans and loans 90 days or more past due totaled $51.3 million, an increase from $17.6 million in the prior quarter, primarily due to a large multi-family loan placed into nonaccrual status [14] - Total criticized assets increased to $248.5 million at year-end, up from $151.0 million at the end of the previous quarter [14] Capitalization and Ratios - As of December 31, 2025, the tangible capital ratio was 10.38%, and the total capital ratio was 14.47% [16] - The return on average assets was 1.82%, and the return on average equity was 17.59% for the fourth quarter [9][10]

Core Insights - Preferred Bank reported a net income of $30.0 million or $2.23 per diluted share for Q1 2025, reflecting a slight decrease from the previous quarter and a larger decrease compared to the same quarter last year, primarily due to reduced net interest income [1][3][7] Financial Performance - Net interest income was $62.7 million, down $6.5 million from the previous quarter and $5.8 million from the same quarter last year, largely due to a $2.8 million reversal of interest income from nonaccrual loans [2][7] - Noninterest income increased to $4.0 million, up $361,000 from the prior quarter and $933,000 from the same quarter last year, driven by higher letter of credit fee income and gains on sales of SBA loans [2][8] - Noninterest expense totaled $23.4 million, a decrease of $4.9 million from the previous quarter but an increase of $3.3 million compared to the same quarter last year, influenced by higher personnel and OREO expenses [2][9] Asset Quality - Non-accrual loans amounted to $78.9 million, primarily consisting of two well-secured loans totaling $65.6 million, with no anticipated losses [4][13] - Total criticized loans decreased to $129.2 million from $158.2 million at year-end, indicating improved asset quality [4][14] - The provision for credit losses was $700,000, significantly lower than the $2.0 million in the previous quarter and $4.4 million in the same quarter last year [15] Capitalization and Ratios - As of March 31, 2025, the Bank's tangible capital ratio was 10.96%, leverage ratio was 11.52%, and total capital ratio stood at 15.15%, showing stable capitalization [16][28] - Return on average assets was 1.76% and return on beginning equity was 15.96%, reflecting solid profitability metrics [9][27] Balance Sheet Summary - Total gross loans were $5.63 billion, a slight decrease from the previous quarter, while total deposits increased by $155.9 million to $6.07 billion [12][28] - Total assets rose to $7.1 billion, an increase of $176.7 million from the previous quarter, indicating growth in the Bank's overall financial position [12][28]

Core Insights - Southern States Bancshares, Inc. reported a net income of $10.4 million, or $1.03 diluted earnings per share, for Q1 2025, a decrease from $11.2 million in Q4 2024 but an increase from $8.1 million in Q1 2024 [2][6][28] - The company is in the process of merging with FB Financial Corporation, which is expected to enhance its capabilities and customer experience [3][4] Financial Performance - Core net income for Q1 2025 was $10.3 million, or $1.03 diluted core earnings per share, compared to $10.5 million in Q4 2024 and $8.1 million in Q1 2024 [2][6] - Net interest income was $24.9 million, a decrease of 0.7% from $25.1 million in Q4 2024 but an increase of 19.4% from $20.8 million in Q1 2024 [6][7][8] - The net interest margin improved to 3.75%, up 9 basis points from Q4 2024 and 16 basis points from Q1 2024 [5][9][28] Noninterest Income and Expenses - Noninterest income for Q1 2025 was $1.7 million, a decrease of 44.7% from $3.0 million in Q4 2024 but an increase of 30.4% from $1.3 million in Q1 2024 [10][11] - Noninterest expenses decreased by 5.9% to $12.3 million from $13.1 million in Q4 2024, but increased by 18.6% from $10.4 million in Q1 2024 [12][13][14] Loans and Credit Quality - Gross loans increased to $2.3 billion, up 1.5% from Q4 2024 and 15.0% from Q1 2024, driven by new business growth and the acquisition of Century Bank [15][16] - Nonperforming loans totaled $7.2 million, or 0.32% of gross loans, an increase from $6.5 million (0.29%) in Q4 2024 and $3.4 million (0.17%) in Q1 2024 [16][19] - The provision for credit losses was $775,000 for Q1 2025, significantly higher than $72,000 in Q4 2024, reflecting loan growth and economic factors [17][18] Deposits and Capital - Total deposits were $2.4 billion, stable compared to $2.4 billion in Q4 2024 and up from $2.1 billion in Q1 2024, with a notable increase in interest-bearing deposits [20][21] - The Tier 1 capital ratio was 9.14% as of March 31, 2025, compared to 8.67% at the end of 2024, indicating improved capital strength [21][28]