Core Insights - FS Bancorp, Inc. announced the appointment of Matthew Mullet, CEO of 1st Security Bank, to the Seattle Branch Board of Directors for the Federal Reserve Bank of San Francisco [1][3] Group 1: Company Overview - 1st Security Bank of Washington provides loan and deposit services through its twenty-seven branches located in Washington and Oregon, offering mortgage services, commercial lending, and treasury management services [6] Group 2: Leadership Appointment - Matthew Mullet expressed honor in being appointed to the SF Fed's Seattle Branch Board, emphasizing the importance of influencing monetary policy for community banks and their customers [5] - Mullet has been with 1st Security Bank since 2011, previously serving as Chief Financial Officer before becoming CEO in 2025 [5]

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Financial Data and Key Metrics Changes - The company reported a significant increase in its allowance for credit losses (ACL), which rose from $300 million to $632 million, reflecting prudent preparation for potential credit losses in a challenging environment [38] - The tangible common equity increased by 35 basis points during the quarter, despite the company buying back $100 million of common stock [56] Business Line Data and Key Metrics Changes - The Corporate and Institutional Banking (CIB) segment is expected to see growth in fee income, particularly from loan syndication and corporate services, which have been building over the past 18 months [17][19] - The mortgage lending business is gaining traction, with expectations for continued growth in fee income from originating loans for resale in the secondary market [19] Market Data and Key Metrics Changes - The company noted a positive trend in office leasing, with good activity in various markets during the fourth quarter, indicating a recovery in the office sector [30] - The life sciences market is experiencing mixed results, with some projects succeeding while others face challenges due to macroeconomic factors and reduced funding [28] Company Strategy and Development Direction - The company aims to diversify its earning assets and increase fee income as a larger part of its revenue over the long term [16] - There is a focus on enhancing treasury management services and expanding into private banking, which are expected to contribute to revenue growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, anticipating it to be near the end of the current credit cycle, with signs of improvement in leasing and property sales [12] - The company is cautiously optimistic about the support from sponsors in the life sciences sector, although some projects may still face challenges [34] Other Important Information - The company has been actively managing its non-performing assets, with a focus on working collaboratively with sponsors to resolve issues [48] - The company has seen a return of liquidity in the office space, with several projects refinancing successfully [32] Q&A Session Summary Question: Outlook on loan sales and credit charge-offs - Management confirmed that the recent loan sale was at par and does not indicate a change in strategy, emphasizing that it was a unique case [8] Question: Fee income growth potential - Management indicated that while fee income has not been a significant part of the story, there are long-term tailwinds expected from investments in CIB [16] Question: Credit uncertainties in office and life sciences - Management acknowledged challenges in the life sciences sector but noted that there is no new speculative supply being added, which could support recovery [28] Question: Timeline for resolution of non-performing assets - Management discussed various paths for resolving non-performing assets, indicating that some may take longer than others [48] Question: Margin outlook and buyback plans - Management stated that they will be opportunistic with buybacks and are pleased with the margin performance, which held well during the quarter [56]

Financial Data and Key Metrics Changes - The company reported net income of $22.8 million, or $1.40 per diluted share, for Q4 2025, compared to $19.6 million, or $1.22 per diluted share, for Q4 2024, reflecting a year-over-year EPS growth rate of 11% [10][9] - For the full year 2025, net income totaled $88.8 million, or $5.47 per diluted share, compared to $79.6 million, or $4.93 per diluted share, for 2024 [10] - The return on average assets was 1.4% and return on average equity was 14.1% for 2025 [9] Business Line Data and Key Metrics Changes - Interest income on loans decreased by 26 basis points in Q4 2025 compared to Q4 2024, while average loans increased by $62 million to $4.63 billion [11] - Service charges on accounts increased by 19% during 2025, driven by growth in commercial deposit relationships [8] - Mortgage banking income grew by 6% compared to 2024, indicating a strong performance in the mortgage segment [8] Market Data and Key Metrics Changes - The loan-to-deposit ratio improved to 91% as of December 31, 2025, down from 98% a year earlier, indicating better liquidity management [5] - Average deposits increased by $302 million to $4.83 billion in Q4 2025 compared to Q4 2024 [12] Company Strategy and Development Direction - The acquisition of Eastern Michigan Bank was completed on December 31, 2025, aimed at enhancing deposit and loan growth while maintaining margin stability [4] - The company plans to continue focusing on deposit growth, with a compounded annual growth rate of 9.2% over the last five years [7] - The company is targeting loan growth in the range of 5%-7% for 2026, supported by a strong commercial loan pipeline [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and uncertainties in the financial sector, emphasizing a strong capital position with a total risk-based capital ratio of 13.8% [23] - The company anticipates a stable net interest margin in 2026, despite potential fluctuations in the interest rate environment [25] - Management highlighted the importance of maintaining strong asset quality, with past due loans at low levels of 11 basis points of total loans [5] Other Important Information - Non-interest expenses increased by $2.9 million in Q4 2025 compared to the prior year, primarily due to higher salary and benefit costs [20] - The company did not repurchase shares during 2025 but has $6.8 million available in its current repurchase plan [24] Q&A Session Summary Question: Margin guidance and purchase accounting impact - Management confirmed that margin guidance includes the December rate cut and indicated a steady margin going into 2026, with purchase accounting contributing approximately $125,000 net per quarter [34] Question: Loan growth outlook - Management expects loan growth to remain in the 5%-7% range for 2026, supported by a strong backlog and anticipated stabilization of loan payoffs [64] Question: Capital management and buyback appetite - Management expressed a stronger appetite for buybacks moving forward, contingent on stock price and market conditions [66]

Financial Data and Key Metrics Changes - The company reported net income of $22.8 million, or $1.40 per diluted share, for Q4 2025, compared to $19.6 million, or $1.22 per diluted share, for Q4 2024, reflecting a year-over-year increase [10] - For the full year 2025, net income totaled $88.8 million, or $5.47 per diluted share, compared to $79.6 million, or $4.93 per diluted share, for 2024, indicating growth driven by increased net interest income and non-interest income [10] - The return on average assets was 1.4% and return on average equity was 14.1% for 2025, with an 11% year-over-year growth in EPS [9] Business Line Data and Key Metrics Changes - The loan-to-deposit ratio improved to 91% from 98% in 2024 and 110% in 2023, indicating better liquidity management [5] - The compounded annual growth rate for deposits over the last five years was 9.2%, while total loans grew at 8.6% [7] - Service charges on accounts increased by 19% in 2025, driven by growth in commercial deposit relationships [8] Market Data and Key Metrics Changes - The company maintained a strong asset quality with past due loans at 11 basis points of total loans and non-performing loans averaging 12 basis points over the last six years [5] - The allowance for credit losses stood at 1.21% of total loans as of December 31, 2025, providing strong coverage relative to past due and non-performing loans [5] Company Strategy and Development Direction - The acquisition of Eastern Michigan Bank was completed on December 31, 2025, aligning with the company's strategic objectives for deposit and loan growth [4] - The company aims to maintain a stable net interest margin through effective balance sheet management and match-funding practices [16] - Future loan growth is projected to be in the mid-single digits, with a strong commercial loan pipeline expected to support this growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and uncertainties in the financial sector, highlighting a strong capital position with a total risk-based capital ratio of 13.8% [23] - The company anticipates a stable net interest margin in 2026, despite potential fluctuations in the interest rate environment [24] - Management noted that the integration of Eastern Michigan Bank is progressing well, with positive cultural alignment observed [9] Other Important Information - Non-interest expenses increased by $2.9 million and $10.2 million in Q4 and all of 2025, primarily due to higher salary and benefit costs [20] - The company did not repurchase shares in 2025 but has $6.8 million available in its current repurchase plan [24] Q&A Session Summary Question: Margin guidance and purchase accounting impact - Management confirmed that the December rate cut is included in margin guidance, with purchase accounting contributing approximately $125,000 net per quarter [34] Question: Loan growth expectations - Management expects loan growth to remain in the 5%-7% range, with commercial loans projected to grow at 6%-7% [38] Question: Impact of Eastern Michigan Bank on liquidity and margin - Management indicated that not all excess liquidity from Eastern will be utilized immediately, but it will contribute positively to the loan-to-deposit ratio over time [44] Question: Capital management and buyback appetite - Management expressed a stronger appetite for buybacks moving forward, contingent on stock price and market conditions [66] Question: Cost savings from Eastern acquisition - Management stated that significant cost savings from the Eastern acquisition are expected to materialize in 2027, with current investments focused on growth [52]

Financial Data and Key Metrics Changes - The company reported net income of $22.8 million, or $1.40 per diluted share, for Q4 2025, compared to $19.6 million, or $1.22 per diluted share, for Q4 2024, reflecting a year-over-year increase [9] - For the full year 2025, net income totaled $88.8 million, or $5.47 per diluted share, compared to $79.6 million, or $4.93 per diluted share, for 2024, indicating growth driven by increased net interest income and non-interest income [9] - The return on average assets was 1.4% and return on average equity was 14.1% for 2025, with an 11% increase in tangible book value per share over the last four quarters [8] Business Line Data and Key Metrics Changes - The loan-to-deposit ratio improved to 91% from 98% in Q4 2024 and 110% in Q4 2023, supported by a deposit mix that includes 25% non-interest-bearing deposits [5] - Service charges on accounts increased by 19% in 2025, driven by growth in commercial deposit relationships [7] - Mortgage banking income grew by 6% compared to 2024, reflecting market share gains and a high portion of saleable loans [7] Market Data and Key Metrics Changes - Average loans totaled $4.63 billion in Q4 2025, an increase of $62 million from Q4 2024, while average deposits grew by $302 million to $4.83 billion during the same period [10][11] - The company expects loan growth in 2026 to fall within the range of mid-single digits, with a strong commercial loan pipeline [22] Company Strategy and Development Direction - The acquisition of Eastern Michigan Bank was completed on December 31, 2025, aligning with the company's strategic objectives for deposit and loan growth [4] - The company aims to maintain a stable net interest margin through effective balance sheet management and match-funding practices [15] - There is a focus on expanding operations in Southeast Michigan, with plans to add more lending teams to capitalize on market opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and uncertainties in the financial sector, highlighting a strong capital position with a total risk-based capital ratio of 13.8% [21] - The company anticipates a stable net interest margin in 2026, projecting loan growth of 5%-7% annually, supported by a robust commercial loan pipeline [22][23] - Management noted that the integration of Eastern Michigan Bank is progressing well, with positive cultural alignment observed [8] Other Important Information - The company recorded a negative provision expense of $0.7 million in Q4 2025, reflecting an improved economic forecast and changes in loan mix [17] - Federal income tax expense was reduced by $0.4 million in Q4 2025, largely due to the acquisition of transferable energy tax credits [20] Q&A Session Summary Question: Margin guidance clarification - Management confirmed that the December rate cut is included in the margin guidance, with expectations for a stable margin going into 2026 [25][26] Question: Loan growth outlook - Management expressed optimism for 5%-7% loan growth in 2026, citing a historically high backlog and expectations for payoffs to stabilize [40] Question: Capital management and buyback appetite - Management indicated a stronger appetite for buybacks moving forward, contingent on stock price and market conditions [42] Question: Impact of Eastern Michigan Bank on liquidity and margin - Management noted that not all excess liquidity from Eastern will be utilized immediately, with a gradual increase in the loan-to-deposit ratio expected [30] Question: Cost savings from Eastern acquisition - Management stated that significant cost savings from the Eastern acquisition are anticipated to materialize in 2027, with current investments focused on personnel and market expansion [33][46]

Core Viewpoint - First Internet Bancorp has declared a quarterly cash dividend of $0.06 per common share, payable on January 15, 2026, to shareholders of record as of December 31, 2025 [1]. Group 1: Dividend Declaration - The Board of Directors has declared a quarterly cash dividend of $0.06 per common share [1]. - Future cash dividends will be at the discretion of the Board and will depend on various factors including the Company's financial condition and operational results [2]. Group 2: Company Overview - First Internet Bancorp is a bank holding company with assets totaling $5.6 billion as of September 30, 2025 [3]. - The Company's subsidiary, First Internet Bank, was established in 1999 and specializes in branchless banking services [3]. - First Internet Bank offers a range of services including consumer and small business deposits, SBA financing, and various types of loans [3]. - The common stock of First Internet Bancorp trades on the Nasdaq Global Select Market under the symbol "INBK" and is part of the Russell 2000® Index [3].

Group 1 - First Internet Bancorp has declared a quarterly cash dividend of $0.06 per common share, payable on January 15, 2026, to shareholders of record as of December 31, 2025 [1] - The declaration and future cash dividends will be at the discretion of the Board of Directors, influenced by various factors including the Company's operational results, financial condition, and regulatory restrictions [2] Group 2 - First Internet Bancorp is a bank holding company with assets totaling $5.6 billion as of September 30, 2025 [3] - The Company's subsidiary, First Internet Bank, was established in 1999 and specializes in branchless banking services, offering a range of financial products including consumer and small business deposits, SBA financing, and commercial loans [3] - First Internet Bancorp's common stock is traded on the Nasdaq Global Select Market under the symbol "INBK" and is included in the Russell 2000® Index [3]

Core Viewpoint - BayFirst Financial Corp. has successfully closed the sale of $94.6 million in loans to Banesco USA as part of a strategic review to derisk its SBA 7(a) balances and enhance long-term growth and shareholder value [2] Group 1: Loan Sale and Financial Impact - The loan sale to Banesco USA is part of a broader strategy to improve the company's financial ratios, with the total capital ratio increasing to 10.1% and the tier 1 leverage ratio improving to 6.8% on a proforma basis [2] - An additional $4.5 million in loan balances is expected to be sold to Banesco USA before the end of the year [2] Group 2: Community Banking Focus - The company emphasizes its commitment to community banking, aiming to serve individuals, families, and small businesses with stable financial products [3] - This relationship-driven approach is intended to strengthen the company's presence in the Tampa Bay region and create opportunities for deposit growth and fee income from services like treasury management [3] Group 3: Company Overview - BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida, with total assets of $1.35 billion as of September 30, 2025 [4] - The company operates twelve full-service banking offices in the Tampa Bay-Sarasota region, offering a wide range of commercial and consumer banking services [4]

First Horizon Corporation Conference Call Summary Company Overview - **Company**: First Horizon Corporation (NYSE:FHN) - **Assets**: $83 billion - **Branches**: Over 400 across the Southeast - **Headquarters**: Memphis, Tennessee - **Segments**: Regional banking, specialty banking, and corporate [1][3] Core Insights and Arguments Customer Sentiment and Loan Growth - Customers in the Southeast are optimistic and resilient despite past challenges like COVID and rising rates [4][5] - Loan growth is slower than previously anticipated, with expectations of high single-digit growth not materializing [5][6] - The mortgage warehouse business has been a bright spot for loan growth [5][8] Loan and Deposit Strategy - Focus on building long-term customer relationships rather than just selling products [7][8] - Emphasis on decentralized decision-making in local markets for deposit pricing [8][9] M&A Activity - Increased M&A activity in the Southeast with several competitors involved in mergers [10][11] - First Horizon has recently completed significant mergers and is now focused on organic growth [12][14] - The company is positioned to capitalize on opportunities arising from competitors' M&A disruptions [12][14] Interest Rate Environment and Asset Sensitivity - The company is optimistic about its countercyclical businesses, particularly FHN Financial, in a falling interest rate environment [17][18] - Mortgage warehouse business is expected to benefit from potential refinancing waves as rates decrease [20][26] Expense Management and Technology Investments - Commitment to keeping expenses flat while investing in technology and efficiency improvements [27][29] - Significant technology investments have been made to clear tech debt and enhance operational efficiency [31][32] - AI is being utilized to reduce costs and improve speed in developing new digital platforms [33][36] Credit Quality and Risk Management - Strong credit culture with a focus on client relationships and decentralized credit analysis [39][40] - Best-in-class charge-off rates, with a proactive approach to monitoring credit quality [41][45] - Increased vigilance regarding fraud and operational controls in response to industry challenges [49][50] ROTCE Target and Capital Management - Achieved a 15% ROTCE in Q4, with a goal to sustain and exceed this level [52][53] - Plans to return capital to shareholders primarily through loan growth, with share buybacks as a secondary option [59][60] - Maintaining a capital ratio of 11% with a long-term target of 10% [57][58] M&A Strategy - M&A is not a near-term priority; focus remains on organic growth and achieving top-tier returns [61][62] - The company is open to opportunities but prioritizes shareholder value and operational efficiency [64] Additional Important Points - The competitive deposit environment has quieted down, with clients aware of rate changes [66][68] - Technology expenses are being managed effectively, with a focus on client-facing projects [70][74] This summary encapsulates the key points discussed during the First Horizon Corporation conference call, highlighting the company's strategic focus, market conditions, and operational insights.