Core Viewpoint - Coop Pank demonstrated strong growth in customer base and loan portfolio in 2025, benefiting from a declining interest rate environment that improved market confidence [1][10]. Customer Growth - The number of Coop Pank customers increased by 19,000 (+9%) to reach 227,000 by the end of 2025, with 108,000 being active customers [2][12]. - The increase included 16,000 private customers and 3,000 business customers [2]. Deposit Growth - By the end of 2025, Coop Pank's deposits reached €2.05 billion, an increase of €170 million (+9%) from the previous year [3]. - Term deposits rose by 8% and demand deposits by 11% [3]. - The bank's market share of deposits increased from 6.0% to 6.1% [3]. Loan Portfolio Growth - The loan portfolio grew to €2.11 billion, an increase of €340 million (+19%) over the year [4]. - Business loans increased by €207 million (+27%) and home loans by €125 million (+17%) [4][13]. - The market share of the bank's loans rose from 6.5% to 7.1% [4]. Loan Quality - The quality of the loan portfolio remained strong, with provisions for potential loan losses decreasing by 29% to €3.3 million [5]. - The cost ratio for credit risk improved from 0.3% to 0.2% [5]. Financial Performance - Net income for Coop Pank was €79.4 million, a decrease of €2.5 million (-3%) year-on-year [6]. - Net profit was €28.7 million, down 11% from the previous year, primarily due to a lower interest environment [7][14]. - The cost/income ratio increased from 50% to 52%, and return on equity decreased from 16.2% to 12.9% [7]. Q4 Results - In Q4 2025, customer numbers increased by 5,000 (+2%), with deposits rising by €134 million (+7%) [8]. - The net loan portfolio increased by €91 million (+4%) during the quarter [9]. Strategic Developments - Coop Pank issued covered bonds totaling €250 million on the Irish stock exchange, marking the first tranche of a €750 million program [15]. - The bank received capital relief from the European Investment Bank, allowing for the issuance of up to €249 million in new loans [16]. - Moody's affirmed Coop Pank's deposit rating at Baa2 with a positive outlook, indicating strong profitability and solid capitalization [17]. Product and Service Enhancements - The bank introduced several new products, including a small business loan and a Home Defender Home Loan, while enhancing existing services [20]. - Coop Pank also invested in improving customer interaction by opening new branches and enhancing e-services [19]. Future Goals - The bank aims to grow its loan portfolio market share to 10% by 2030 and double its net profit to at least €60 million by the same year [24].

Financial Data and Key Metrics Changes - The net interest margin (NIM) for Q4 2025 was 3.74%, an increase of 20 basis points from Q4 2024, while the full-year NIM was 3.69% compared to 3.57% in 2024 [4] - Return on average assets for Q4 2025 was 1.21%, up from 1.10% in Q4 2024, and return on tangible common equity improved to 12.58% from 11.82% [4] - Net income for Q4 2025 was $12.3 million, or 49 cents per diluted share, with total loans declining by $81 million from the end of Q3 2025 [11] Business Line Data and Key Metrics Changes - Small business loan performance was disappointing, with delinquency and charge-off levels exceeding acceptable limits, prompting changes in credit parameters [5] - Non-interest income increased by almost $2 million year-over-year, with gains from SBA loan sales higher in 2025, although residential mortgage sales remained muted [5][6] - The non-interest expense to average asset ratio improved to 1.97% for 2025 from 2.01% in 2024, reflecting effective expense management [6] Market Data and Key Metrics Changes - Deposit balances decreased by $21 million in Q4 2025, primarily due to a $27.1 million decline in broker deposits, but new customer acquisition was strong [11] - The bank's focus on relationship-based customers helped grow interest-bearing demand deposits by $47 million, or 33% annualized, compared to September 30 [19] - The lending pipeline at year-end stood at $284 million, with C&I loans making up 61% of the pipeline [27] Company Strategy and Development Direction - The company aims to close the gap with peers in cost of funds, increase non-interest income generation, and reduce non-interest expense to average asset ratio [10] - The strategy includes optimizing the deposit portfolio by lowering costs while deepening high-quality relationships [22] - The company is evolving into a middle-market commercial bank, focusing on profitability rather than growth for its own sake [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting to achieve a $200 million net loan growth goal, driven by growth in asset-based lending and community banking [9] - The company anticipates stabilization of credit costs in the small business portfolio due to implemented changes [7] - Management noted that while there were challenges, overall credit quality in core CRE and community banking divisions remained strong [7] Other Important Information - The efficiency ratio improved to 49.46%, remaining below 60% for the 26th consecutive quarter, and tangible book value per share grew more than 12% annualized to $15.81 [17] - The company announced a 50% increase in its quarterly cash dividend, reflecting strong capital ratios [17] - A new share repurchase plan was approved for up to 1.2 million shares, totaling $20 million, although no buybacks were executed in Q4 [48] Q&A Session Summary Question: Discussion on loan growth outlook - Management acknowledged the unpredictability of payoffs but noted that high payoff activity was not indicative of broader macro conditions, expecting a return to strong growth [34][35] Question: Details on downgraded C&I credit - The downgraded loan was from a multi-location consumer-based business facing performance declines, with management closely monitoring the situation [41] Question: Thoughts on expense run rate - Management indicated a focus on keeping expense growth limited while driving revenue growth to improve efficiency ratios [42][45] Question: Status of share buyback plan - A new share buyback plan was approved, but no activity occurred in Q4 due to timing issues with regulatory approvals [46][48]