Financial Data and Key Metrics Changes - The company reported a net loss of $2.5 million in Q4 2025, an improvement from a net loss of $18.9 million in Q3 2025, which included a restructuring charge of $7.3 million and additional provision expense of $8.1 million [7] - Loans held for investment decreased by $34.8 million, or 3.5%, in Q4 2025, ending at $963.9 million, with a total annual decrease of $102.7 million, or 9.6% [7] - Deposits increased by $12.5 million, or 1.1%, in Q4 2025, totaling $1.18 billion, with a year-over-year increase of $40.7 million, or 3.6% [8] - Shareholders' equity at quarter end was $87.6 million, down $23.4 million from the end of 2024, and tangible book value decreased to $17.22 per share from $17.90 per share [9] Business Line Data and Key Metrics Changes - The company exited the SBA 7(a) lending business, which has led to a significant reduction in risk and expenses, focusing instead on community banking [2][3] - Treasury management revenues grew by 69% compared to Q4 2024, indicating a positive trend in this business line [3] Market Data and Key Metrics Changes - The company reported that 85% of its deposits were insured by the FDIC as of December 31, 2025, providing a strong safety net for depositors [8] - The liquidity ratio was over 18% at year-end, which supports efforts to reduce high-cost deposits and improve the bank's cost of funds [5] Company Strategy and Development Direction - The company aims to be the premier community bank in Tampa Bay, focusing on organic growth in deposits and enhancing customer service [3] - The strategic plan for 2026 emphasizes fortifying the balance sheet and maintaining a culture of disciplined risk management to drive sustainable revenue growth [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the legacy SBA 7(a) business but expressed confidence in the community bank's metrics and future growth potential [5] - The company expects a gradual improvement in asset quality as it winds down the SBA loan portfolio and works through problem loans [18] Other Important Information - The provision for credit losses was $2 million in Q4 2025, significantly lower than $10.9 million in Q3 2025, indicating improved credit risk management [12] - Non-interest income was negative $104,000 in Q4 2025, but this was an improvement compared to the previous quarter [10] Q&A Session Summary Question: What is the specific allowance against the $171 million of unguaranteed government loans, and what has been the recent default experience? - The company indicated that about 13% of the $171.6 million in unguaranteed balances is within the allowance for credit losses, with a default rate lower than that [25] Question: What was the peak of the unguaranteed portion before the loan sale? - The unguaranteed portion was about $50.5 million higher at the end of Q3 2025 [28] Question: Can you discuss the growth in deposits and the reduction in deposit costs? - The growth in deposits is attributed to strong relationships with customers, and the overall cost of funds has decreased by approximately 13 basis points sequentially [35][36]