Financial Data and Key Metrics Changes - The company reported net income of $20.7 million or $2.47 per diluted share for the quarter, with year-to-date net income of $43.3 million or $5.14 per diluted share [13] - Return on average assets was 1.87% for the quarter and 2% year to date, while return on average equity was 15.6% for the quarter and 16.6% year to date [13] - Net interest margin (NIM) for the quarter was 4.49%, down from 4.59% in the linked quarter, resulting in net interest income of $48.8 million for the quarter [14][15] Business Line Data and Key Metrics Changes - The company originated $252 million of loans in the national lending division, with a record quarter for originated loans [8][19] - The company purchased 152 loans in five transactions with a total balance of $576 million at a purchase price of $533 million, achieving a weighted average yield to maturity of 10.8% [19] - SBA loan originations were $39.8 million, with $25 million sold for a gain of $2.1 million [9][15] Market Data and Key Metrics Changes - The company experienced significant loan volume, with total loans on the balance sheet reaching $4.4 billion, up from $3.7 billion as of September 30th [13] - The allowance for credit losses increased from $46.7 million to $63.8 million, reflecting a coverage ratio increase from 1.24% to 1.47% [16] - The company noted that the current pipeline for loans is as full as it has ever been, with expectations of increased loan activity driven by M&A [19] Company Strategy and Development Direction - The company aims to grow its deposit base in Maine, which is seen as a less expensive and stickier source of funding compared to brokered deposits [31] - The company is focusing on expanding its small balance insured business loan program, which has seen significant demand [45] - The management is strategically investing in people and technology to set the bank up for long-term success while maintaining disciplined expense management [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the SBA program was impacted by a government shutdown, but they expect a rebound in loan originations and sales moving forward [10][12] - The company anticipates a lift in net interest margin due to the downward liability repricing expected over the next two quarters [29] - Management expressed optimism about the loan growth trajectory, with expectations of significant net interest income in subsequent quarters due to a higher loan book [11][12] Other Important Information - The company reported a decrease in non-interest expense from $21.9 million to $20.8 million, attributed to lower professional fees and reduced loan acquisition costs [17] - The company has a strong capital position with a Tier 1 leverage ratio of 12.2% and a tangible book value of $62.65 per share [17] Q&A Session Summary Question: Did the company buy back stock in the fourth quarter? - The CFO clarified that the decrease in share count was due to stock compensation activity and cancellation of shares to cover taxes, with no stock buybacks [27] Question: What is the expectation for net interest margin going forward? - The CFO indicated that a lift in net interest margin is anticipated due to downward liability repricing [29] Question: How does the company view the funding mix as it grows? - Management stated that brokered deposits will likely continue to be a main source of growth, while also focusing on growing deposits in Maine [31] Question: What percentage of purchase loans does the company typically retain at maturity? - Management did not have the exact number but indicated that they try to retain many loans, especially when rates are higher [33] Question: Will there be a catch-up in SBA gain on sale income next quarter? - The CFO clarified that they expect an increase in SBA loan volume and gain on sale income next quarter, estimating around $20 million a month [40]

Financial Data and Key Metrics Changes - The company reported net income of $20.7 million for the quarter, with diluted earnings per share of $2.47, down from previous quarters [9][13] - Return on average assets was 1.87% for the quarter and 2% year to date, while return on average equity was 15.6% for the quarter and 16.6% year to date [13] - Net interest margin (NIM) was 4.49%, down from 4.59% in the linked quarter, resulting in net interest income of $48.8 million for the quarter [14][15] Business Line Data and Key Metrics Changes - The company originated $252 million in loans during the quarter, with a record volume of $576 million in purchased loans at a purchase price of $533 million [8][19] - SBA loan originations totaled $39.8 million, with $25 million sold for a gain of $2.1 million [9][15] - The small business insured loan product saw originations of $70 million during the quarter [16][21] Market Data and Key Metrics Changes - The total assets ended the quarter at $4.95 billion, with loans at $4.4 billion, up from $3.7 billion as of September 30 [13] - The company experienced a 40.3% deposit growth over a three-year period in its seven branches in Maine [5] Company Strategy and Development Direction - The company aims to grow its deposit base in Maine, which is generally less expensive and stickier than brokered deposits [30] - There is a focus on expanding the small balance insured loan program, which is expected to sustain its growth trajectory [21] - The company is also exploring niche opportunities for deposit growth while relying on brokered deposits to fund loan growth [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating results for the quarter were lower than previous quarters, primarily due to the impact of the government shutdown on SBA loan activity [7][10] - There is an expectation of increased net interest income in subsequent quarters due to a higher loan book [11][12] - The company anticipates a favorable trajectory for SBA loan originations and sales moving forward [15][40] Other Important Information - The allowance for credit losses increased from $46.7 million to $63.8 million during the quarter, reflecting the purchase loan activity [16] - Non-interest expense decreased to $20.8 million, attributed to lower professional fees and reduced loan acquisition costs [17] Q&A Session Summary Question: Did the company buy back stock in the fourth quarter? - The company did not buy back any stock; the decrease in share count was due to stock compensation activity [26] Question: Will net interest margin see a lift going forward? - Management indicated that a lift in net interest margin is expected due to downward liability repricing [28] Question: How does the company view the funding mix as it grows? - The company plans to continue using brokered deposits while also growing its deposit base in Maine [30] Question: What percentage of purchase loans does the company typically retain at maturity? - Management did not have the exact number but indicated that they try to retain many loans, especially when rates are higher [32] Question: Will there be a catch-up in SBA gain on sale income next quarter? - The company expects an increase in SBA loan volume and anticipates that gain on sale percentages will remain around 8%-9% [39][43] Question: How does the company see the growth of the insured small business product? - The company believes the growth rate is sustainable and is focused on selling the originated loans [44][46]

Financial Data and Key Metrics Changes - The company reported net income of $20.7 million for the quarter, with diluted earnings per share of $2.47, down from previous quarters [9][13] - Return on average assets was 1.87% for the quarter and 2% year to date, while return on average equity was 15.6% for the quarter and 16.6% year to date [13] - Net interest margin (NIM) was 4.49%, down from 4.59% in the linked quarter, resulting in net interest income of $48.8 million for the quarter [14][15] Business Line Data and Key Metrics Changes - The company originated $252 million in loans during the quarter, marking a record for the bank, with a weighted average rate of origination of 7.6% [8][20] - SBA loan originations totaled $39.8 million, with $25 million sold for a gain of $2.1 million [9][16] - The small business insured loan product saw originations of $70.6 million during the quarter [9][22] Market Data and Key Metrics Changes - Total assets ended the quarter at $4.95 billion, with loans at $4.4 billion, up from $3.7 billion as of September 30 [13][14] - The company experienced a 40.3% deposit growth over a three-year period in its seven branches in Maine [5] Company Strategy and Development Direction - The company aims to grow its deposit base in Maine, which is generally less expensive and stickier than brokered deposits [31] - The current pipeline for loan origination is robust, with expectations of significant opportunities in the coming quarters, particularly in commercial real estate and small business lending [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the SBA activity was impacted by a government shutdown, but noted a positive trajectory in December and expectations for increased loan originations moving forward [16][22] - The company anticipates a higher loan book in subsequent quarters, which should lead to increased net interest income [11][12] Other Important Information - The allowance for credit losses increased from $46.7 million to $63.8 million during the quarter, reflecting the purchase loan activity [17] - Non-interest expense decreased to $20.8 million, attributed to lower professional fees and reduced loan acquisition costs [18] Q&A Session Summary Question: Did the company buy back stock in the fourth quarter? - The company did not buy back any stock; the decrease in share count was due to stock compensation activity [28] Question: Will net interest margin see a lift going forward? - Management indicated that a lift in net interest margin is expected due to downward liability repricing [30] Question: How does the company view its funding mix as it grows? - The company plans to continue using brokered deposits while also focusing on growing deposits in Maine [31] Question: What percentage of purchase loans does the company typically retain at maturity? - The company did not have the exact number but aims to retain many loans, especially when rates are higher [34] Question: Will there be a catch-up in SBA gain on sale income next quarter? - The company expects an increase in SBA loan volume and anticipates that gain on sale percentages will remain around 8%-9% [42][47] Question: How does the company see the growth of the insured small business product? - The company believes the run rate for the insured small business product is sustainable, with significant demand [48]