Financial Data and Key Metrics Changes - The company reported a 10% growth in tangible book value per share and a CET1 capital ratio of 14.89% for the end of 2025 [5][9] - The net interest margin for the fourth quarter was 3.97%, with a full-year net interest margin of 3.94% [7][8] - Fourth quarter net income, excluding one-time items, was $22.7 million or $0.60 per diluted share, while full-year adjusted net income was $117.6 million or $3.06 per diluted share [9][12] Business Line Data and Key Metrics Changes - The company originated $591 million in total loans during the fourth quarter, with $429 million coming from commercial loan originations, marking a record for the company [24] - The commercial loan portfolio grew nearly 8% annualized, while there was a decline in commercial real estate loan balances due to accelerated payoffs [24][25] - The company expects loan growth of approximately 10% in 2026, starting with a combined loan portfolio of about $9.4 billion [10][37] Market Data and Key Metrics Changes - The non-performing asset ratio improved by 11 basis points to 36 basis points of total loans by the end of 2025 [11] - The criticized loan ratio improved by 73 basis points during the year, indicating better asset quality [12] - The company is focusing on expanding its presence in Texas and resort markets, which are expected to drive growth [20][49] Company Strategy and Development Direction - The company aims to enter 2026 with a clean slate and a focus on profitable growth following the Vista Bank acquisition [6][10] - The strategy includes enhancing service offerings such as wealth management and trust services, and expanding mortgage products [19] - The company is committed to maintaining a loan-to-deposit ratio of approximately 90% and holding about 15% of total assets in cash and investments [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, projecting earnings exceeding $1 per share in Q4 2026 and over $4 per share in 2027 [17] - The management acknowledged challenges in 2025 but emphasized a strong focus on credit quality and prudent growth strategies for 2026 [43][80] - The integration of Vista Bank is expected to enhance the company's growth profile and market presence [19][21] Other Important Information - The company incurred $4.1 million in after-tax acquisition costs and a $2.6 million after-tax loss on the strategic sale of investment securities in Q4 2025 [8][12] - Non-interest income for the fourth quarter was $14.4 million, with projections for total non-interest income in 2026 to be between $75 million and $80 million [13] - The effective tax rate for 2025 was 18%, with an expected increase to approximately 20% for 2026 due to changes in income mix [16] Q&A Session Summary Question: Confirmation of loan growth and margin guidance - Management confirmed a projected 10% loan growth in 2026, a margin near 4%, and earnings over $1 in Q4 2026 and over $4 in 2027 [37] Question: 2UniFi revenue and expense guidance - The projected revenue for 2UniFi in 2026 is $2 million to $4 million, with expenses held flat at $22 million [39][55] Question: Credit quality and charge-offs - Management addressed that the charge-offs were due to a few problem loans and emphasized a clean slate for 2026 [43][80] Question: Growth drivers in Texas and resort markets - Management highlighted strong loan production and growth potential in Texas and resort markets, supported by the Vista acquisition [46][49] Question: Margin performance and interest reversals - Management clarified that there were no interest reversals in Q4 and that the margin was managed well despite rate cuts [52][53] Question: Partnership developments for 2UniFi - Management acknowledged delays in partnership discussions but emphasized a strong focus on client activation and scaling the business [66][67]

Core Insights - U.S. Bank has created a new role for small-business banking to support companies with annual sales between $500,000 and $2.5 million, aiming to capitalize on growth opportunities in this segment [3][7] - The decision to establish this role is partly a competitive response to rival banks also targeting small businesses [4][5] - The new head of small-business banking, Heather Kesner, will oversee a team of 650 specialists and work closely with other leaders within the bank to enhance service offerings [6][7] Company Strategy - The new role aims to provide focused support for small businesses that are often in the early stages of growth, such as those run from home [3] - U.S. Bank recognizes the complex banking and payment challenges faced by businesses in this revenue range and intends to offer expert guidance and innovative digital solutions [5] - The bank's strategy includes collaboration with various leaders within the organization to ensure comprehensive support for small businesses [6]

Core Insights - F&M Bank has appointed Mike Benson as Senior Vice President and Senior Small Business Banking Manager to enhance its support for small businesses in Ohio, Indiana, and Michigan [1][2] Company Overview - F&M Bank is an independent community bank established in 1897, providing commercial and retail banking services across various counties in Ohio, Northeast Indiana, and Michigan [5] Leadership and Expertise - Mike Benson brings 40 years of banking experience, focusing on credit management, retail banking, and business banking development, which will be instrumental in strengthening F&M's small business lending programs [2][3] - Benson has held significant leadership roles in various banks, including Chief Credit Officer at Andover Bank and Business Banking Segment Leader at FirstMerit Bank, showcasing his extensive background in the banking sector [3] Strategic Goals - The creation of Benson's position aligns with F&M's strategy to establish robust processes and reporting structures that will facilitate the bank's growth and success in small business lending [2][3]