Financial Data and Key Metrics Changes - Horizon Bancorp's net interest margin expanded for the eighth consecutive quarter, reaching 3.52% in Q3, with an exit run rate above 4% in September [5][17][20] - The company reported a net loan total for investment of $162 million, with a $210 million impact from the runoff and sale of indirect auto loans [10][12] - The allowance for credit losses decreased to $50.2 million, representing 1.04% of loans held for investment, with a net release of $3.6 million in provisions [12][25] Business Line Data and Key Metrics Changes - Commercial loans grew by $58 million in Q3, representing a 7% annualized increase, while residential mortgage lending volumes remained flat [10][11] - The combined relationship-based fee income categories, including service charges and card income, showed an increase from the previous quarter [5][24] Market Data and Key Metrics Changes - The company experienced predicted outflows in higher-cost non-core transactional accounts as part of its balance sheet restructuring plan [5][14] - Non-interest income was impacted by a $299 million loss in the sale of securities and a $7.7 million loss on the sale of the indirect auto loan portfolio [21][22] Company Strategy and Development Direction - Horizon Bancorp is focused on creating durable returns and sustainable long-term value for shareholders through disciplined capital management and profitable growth strategies [6][30] - The company plans to pursue M&A opportunities that are accretive to its community banking platform, with a focus on franchises that enhance profitability [35][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering superior community banking performance and capital generation metrics moving into 2026 [6][30] - The outlook for Q4 includes expectations for net interest margin expansion to 4.15% to 4.25%, with total reported expenses approximating $40 million [27][28] Other Important Information - The company has made significant improvements in its deposit portfolio, enhancing growth and stability in core client relationships [14][15] - The effective tax rate for Q4 is expected to be in the range of 18% to 20%, reflecting stronger pre-tax income [28] Q&A Session Summary Question: Update on the new narrative for Horizon Bancorp Inc. - Management indicated that the company is positioned to generate capital at a greater pace and will focus on measured deployment strategies for profitable growth [34][35] Question: Criteria for potential M&A opportunities - M&A will focus on franchises that add to the current profitable franchise, with potential targets in Michigan and Indiana [36][39] Question: Balance sheet's rate neutrality - Management acknowledged a modest asset sensitivity but emphasized that the balance sheet is designed to be rate neutral [42] Question: Trends in credit quality and areas of stress - Non-performing loans increased slightly, but management noted that the overall credit profile remains strong, with no significant areas of concern [58][61] Question: Loan growth outlook for 2026 - The company anticipates mid-single-digit loan growth driven primarily by commercial lending, with no immediate need for significant headcount increases [70][71]

Financial Performance - First Community Corporation reported net income of $5.192 million for Q3 2025, a 34.5% increase year-over-year and flat compared to Q2 2025 [2][5] - Diluted earnings per share (EPS) were $0.67 for Q3 2025, unchanged from Q2 2025 but up 34.0% year-over-year [2][5] - Year-to-date net income through September 30, 2025, was $14.375 million, a 47.8% increase compared to the same period in 2024 [3][5] Capital Management - The Board of Directors approved a cash dividend of $0.16 per share for Q3 2025, marking the 95th consecutive quarter of dividends [4][5] - A share repurchase plan of up to $7.5 million was approved, representing approximately 4.6% of total shareholders' equity as of September 30, 2025 [4] Asset Quality - The non-performing assets ratio was 0.04% of total assets, with a total past due ratio of 0.07% of total loans as of September 30, 2025 [4][5] - Net charge-offs during Q3 2025 were $13 thousand, indicating strong credit quality metrics [5][10] Loan and Deposit Growth - Total loans increased by $19.3 million in Q3 2025, reflecting a 6.1% annualized growth rate [4][5] - Total deposits rose by $17.1 million during Q3 2025, with customer deposits increasing by $27.6 million, a 6.3% annualized growth rate [4][5] Investment Portfolio - The investment portfolio was valued at $501.3 million as of September 30, 2025, with a yield of 3.41% [6] - Accumulated Other Comprehensive Loss improved to $20.2 million from $21.9 million in the previous quarter [6] Non-Interest Income - Total non-interest income for Q3 2025 was $4.469 million, a 6.3% increase from Q2 2025 and a 25.2% increase year-over-year [8][10] Regulatory Capital Ratios - As of September 30, 2025, the bank's regulatory capital ratios exceeded the well-capitalized minimum levels, with a Tier 1 Capital Ratio of 13.10% [4][15]

Core Points - Hilltop Holdings Inc. will host a live webcast and conference call on October 24, 2025, to review its third quarter 2025 financial results [1][2] - The company is a Dallas-based financial holding company providing business and consumer banking services through PlainsCapital Bank and residential mortgage lending via PrimeLending [3] - Hilltop Holdings has approximately 3,600 employees and operates 312 locations across 47 states as of September 30, 2025 [3] Company Overview - Hilltop Holdings is listed on the New York Stock Exchange under the symbol "HTH" [3] - The company has broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., offering a range of securities brokerage and investment banking services [3] - The company recently announced a dual listing of its common stock on NYSE Texas, emphasizing its strong operational roots in Texas [6]

Core Viewpoint - First Community Corporation has announced a definitive merger agreement to acquire Signature Bank of Georgia in an all-stock transaction valued at approximately $41.6 million, based on First Community's stock price as of July 11, 2025 [1][2]. Group 1: Transaction Details - The merger will result in a combined company with approximately $2.3 billion in total assets, $2.0 billion in total deposits, and $1.5 billion in total loans at closing [2]. - The merger will create a banking company with 23 offices across various regions, including South Carolina and Georgia [2]. - The transaction is expected to close in early Q1 2026, pending regulatory and shareholder approvals [2]. Group 2: Strategic Benefits - The merger is seen as a strategic move to expand into the Sandy Springs/Atlanta area, enhancing First Community's market presence [3]. - Signature Bank's expertise in SBA lending is expected to complement First Community's focus on supporting local businesses and entrepreneurs [3]. - The merger is projected to enhance First Community's tangible common equity to tangible assets ratio by approximately 35 basis points, resulting in a pro forma ratio of 7.45% [3]. Group 3: Financial Projections - The merger is anticipated to be accretive to First Community's earnings per share by approximately 4.4% in 2026 [3]. - The transaction structure includes a tangible book value dilution of approximately 2.6%, with an earnback period of 2.2 years [3]. - The internal rate of return on the deal is estimated at approximately 27.6%, indicating strong financial merits [3]. Group 4: Leadership and Governance - Signature's Chairman and CEO, Freddie J. Deutsch, will take on the role of Regional Market President and Director of Specialty Business Lending at First Community Bank [4]. - Key members of Signature's leadership team will continue with First Community Bank, and two current Signature directors will join First Community's Board of Directors [4]. Group 5: Advisory and Legal Support - First Community was advised by Hovde Group, LLC as financial advisor and Nelson Mullins Riley & Scarborough, LLP as legal counsel [5]. - Signature was advised by Olsen Palmer LLC as financial advisor and Fenimore Kay Harrison LLP as legal counsel [5].

Core Insights - First Community Corporation reported a net income of $3.997 million for Q1 2025, with diluted earnings per share of $0.51, reflecting a year-over-year increase from $2.597 million and $0.34 per share, but a decrease from $4.232 million and $0.55 from the previous quarter [3][10]. Financial Performance - The company declared a cash dividend of $0.15 per common share, marking the 93rd consecutive quarter of dividends [4]. - Total deposits rose by $49.8 million to $1.726 billion, representing a 12.1% annualized growth rate [9][10]. - Total loans increased by $31.4 million to $1.252 billion, with an annualized growth rate of 10.4% [8][10]. - Net interest income was $14.4 million, up from $13.9 million in the previous quarter and $12.1 million in Q1 2024 [12][23]. - The net interest margin expanded to 3.13%, compared to 3.00% in the previous quarter and 2.79% in Q1 2024 [12][23]. Asset Quality - Non-performing assets (NPAs) were 0.03% of total assets, with $658 thousand in NPAs, an improvement from 0.04% and $810 thousand at the end of Q4 2024 [6][10]. - The past due ratio for all loans was 0.14%, up from 0.05% in the previous quarter [6]. Capital Ratios - Regulatory capital ratios exceeded the minimum required levels, with a Leverage ratio of 8.45%, Tier I Risk Based ratio of 12.90%, and Total Risk Based ratio of 13.99% as of March 31, 2025 [4][21]. Investment Advisory and Mortgage Business - Investment advisory revenue was $1.806 million, with assets under management (AUM) at $892.8 million, down from $926.0 million at the end of Q4 2024 [16][10]. - The mortgage line of business produced $43.86 million in loans, with fee revenue of $759 thousand, including a gain-on-sale margin of 2.93% [15][10]. Non-Interest Income and Expenses - Non-interest income for Q1 2025 was $3.982 million, an increase from $3.608 million in the previous quarter [14][10]. - Non-interest expenses rose to $12.754 million, up from $11.826 million in Q4 2024, primarily due to increased salaries and marketing expenses [17][10].