Core Insights - The company reported an increase in operating net income by $675,000 compared to the third quarter, attributed to improved net interest margins and strong non-interest income [1] - The company achieved a 1% operating return on assets (ROA) for the fiscal year 2025 and aims for a 1.20% ROA in 2026 [6][7] Financial Performance - Net interest income rose by approximately $3.2 million quarter-over-quarter, with net interest margin widening by 15 basis points to 3.32% [6][7] - Core loan growth for 2025 was strong at 10.5% excluding TC Federal, although competition is expected to push growth closer to the lower end of the target range of 8% to 12% [5][9] Acquisition and Integration - The legal close of the TC Federal acquisition occurred in December, with systems conversion expected in Q1 2026 and most cost savings anticipated to be realized starting in Q2 2026 [4][6] - The company now projects earnback from the acquisition in less than 2.5 years, with tangible book value dilution being less than initially expected [3][6] Credit Quality and Trends - Provision expense for the quarter was $1.65 million, up from $900,000 in the prior quarter, while net charge-offs were $1.6 million, slightly lower than the previous quarter [11] - Classified and criticized loans increased, primarily due to the TC Federal acquisition, with non-performing loans also rising [12] Non-Interest Income and Business Lines - Operating non-interest income was $11.1 million, reflecting strong performance in complementary business lines, particularly mortgage and SBSL [13] - The company expects to sell an additional $30 million of portfolio mortgage loans in Q1 2026, citing improving market conditions [13] Funding and Expenses - Deposits increased by approximately $24.3 million in Q4, with a focus on building a deposit-first relationship banking culture [16] - Operating non-interest expenses were $24.4 million, primarily due to the TC Federal acquisition, with expectations for expenses to decrease post-systems conversion [17] Capital Actions and M&A Outlook - The board declared a quarterly dividend of $0.12 per share, marking consecutive years of dividend growth, and share repurchases totaled $47,000 [18] - The company is actively pursuing additional M&A opportunities, focusing on Georgia and contiguous states, with a preference for negotiated transactions [19]