Home BancShares Q4 2025 Home BancShares Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Home BancShares Inc Earnings Call
Focus of this call, is to discuss the information and data provided in the course of the earnings release issued after the market closed yesterday.
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In February 2025.
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It is now my pleasure to turn the call over to Donna tanzel director of investor relations.
Good afternoon, and Welcome to our fourth quarter conference call.
With me for today's discussion is our chairman John Allison, Stephen, Tipton, Chief Executive Officer of Centennial Bank. Kevin Hester president and chief lending officer, Brian Davis, our Chief Financial Officer, Chris poulton president of ccfg and Scott wolter of Shore Premiere Finance.
The fourth quarter, capped off a bell ringer of a year for home and our team is excited today to share some of those details with you. Our opening remarks today will be from our chairman John Allison.
Oh, thanks. Um, and thank you all for joining Home Bank shares, fourth quarter, earnings report, and our 2025 year in conference call,
I want to thank all of our team members for leading home to 1 of the most successful years in our 26th year history. The numbers really speak for themselves. The best number is we've ever produced.
Thank you for all you do and continue to make home 1 of the top performing, bikes in America. If we're not the best, we're certainly 1 of the most consistently profitable performers, you're in, and you're out. We're certainly a contender.
For the 4 year of 2025 the company earned a little over 475 million in net profit.
That's an 18.2% increase over 24.
And we ran a 2.05 r away and a 4129 efficiency ratio.
Have recorded revenue of 1 billion, 90 million dollars.
We had earnings of 2 dollars in 441 cents EPS. That's a 20% increase over 2024.
We purchased for the year 2890706 shares for 81.3 million and so far this year, we bought back about 96,000.
For the fourth quarter of 25, we reported 118 million in profit. That's 18%. Increase over the 2024, it was about 100,000 call. Ppnr was 167,723,000, good numbers, and a 2.06 Roa. And for the first time in a while, efficiency ratio of sub, 40 and 3953.
That interest margin of 4.61 and we built reserves to about 1.90.
Revenue was 282.1 million and our OTC of 16.65. We were purchased 540,706 shares for 14.7 million for the fourth quarter. As I said, the numbers speak for themselves. We're exciting about our announced Ally with mountain Commerce and our entry into the great state of Tennessee. Having been a Founder. I know what it takes to build a good financial institution with all the ups and downs and I look forward to working with mountain. Commerce is founder, Bill Evers, and is an outstanding team. I walked in the same shoes as Bill and billing our company our transaction is triple creative and both sets of shareholders will be a crew in the benefits of the merger on day 1. Not. So
BS, arm back. But from day 1,
I just want to talk a little bit about the path and what's happened. The bank values and Bank stocks in 1998, we sold our bank for 22 and a half times projected earnings in 4.11 times book. It was a really good bite, doing an hour away of 150 plus but not as strong as home runs today, but really a good buy.
What's happened to the volume Bank stocks? I understand that was a days of pooling. And now, we're on tangible book, but it trades at about 10 times earnings, where did the money go? Bank? Stocks have been about cut in half.
We have allowed people to self-inflict the damage to ourselves and our industry, not just once, but over and over and over again. By dilution dilution dilution
Don. And I were recently at a major Bank conference and a, young sharp female analysts from a well-known National company said, I can't get a single PM portfolio managers when she was referring to of my company. To even look at a body she said, including your butt. Johnny, as good as y'all are, they say no banks period. So what is created there, what is led to the fact that generalists want nothing to do with a bank space? I think it's an attitude, I think it's because
Banks have done bad deals that management and Boards of directors allowed both in the purchase of long-term low rate security that cause shareholders hundreds of millions and billions of dollars plus in at management teams paying too much on Acquisitions and deluding their shareholders into Oblivion.
We are forcing the good long-term investors completely out of the space. We were told that a 3 or 4 year, earn back to tangible book was acceptable to the investors. That could not be farther from the truth. It should never have been done and it should never be done again. When does the poor shareholder ever get back to at least even
Add that to poor operating performances of many of the companies coupled with a 3 to 4 year, diluted deals and hedge funds that will trade you over 2 bits.
We have inflected the pain into the entire industry. Look at what bank stocks have done over the past decade, some Dividends are the same and some are the same price that they were 10 years ago. That's pretty sad. Look at bank stocks. When you look at 1, if you think about selling, look at the bank stocks and see what their history is for the last 5 or 10 years. I know you don't want to hear the facts but it is what it is.
Going much better than a small cancer midcap box.
Banks wanting to grow through Acquisitions, whose Bank stock, multiple trades below. The multiple there are paying for the bank. They are, acquiring are almost always setting themselves up for dilution instead of buying they need to improve their performance and buy back their own stock. Why would you a bank trading at 1.3 a book? Pay 2 times book again, they would be better in most instances 2, buy back their own stock and improve their performance rather than diluting himself with a deal that obviously does not work from the start.
The math is not complicated. They either work or they don't work. And most don't home has never intentionally done a diluted deal or a happy Bank. Transaction did not perform as well early as we expected. But it was certainly not because the math in the deal did not work. It was circumstances beyond our control but it's much better today and the bad is mostly behind us. The industry is poor performance opened the door to invite hoco into our world. If you think that's a bad deal, we have no 1 to Blind except ourselves. It is a good wake up call for every 1 of us to recognize the insanity of what we are doing to our shareholders, our industry and our future. The shareholder is who we work for. They are owners. I've watched Banks dilute them into Infinity because it did not know what they were doing.
They will never give you an earned back report. When's the last time someone sent you an earned back report on the m&a deals over the years.
They don't because they can't simply because they don't work as intended. The CEO gets a bigger salary because he now runs a much bigger bank. So the sack. So his salary goes up and the shareholder gets screwed. 1 more time.
I've labeled this shareholder abuse, we have to clean up our act or we will continue to lose the investment community and they will leave the bank stays it. Took us a while to screw it up and it'll take a while to turn it back around but we need to start today and save our future and realize who our bosses are and who we work for no more dilution from this point.
I know I've made a lot of poor performers unhappy and a lot of cereal dilutes very unhappy by telling the truth, but remember, it's not your money or you would not dilute your shareholder because you'd be deluding yourself. That's why I like Founders and owner operators. They are the best Partners In The Bank space. The CEO of the bank, should only make more money when he's responsible for increasing the EPS of the bind and make the shareholders a higher solid EPS increase.
President Trump's Administration. I'm speaking out as a large shareholder today, an owner operator with the majority of my network tied up in this company. We care about performance and we know who we work for and my entire executive team is vested in the stock, the same as I am. This is not our job, it's our future. We try to distinguish ourselves from the pack by being 1 of the 10 or 12 best performing banks in the country. But at the end of the day, the investors sits as a bank.
The painters will the same brush during all 4 quarters of 2025. After removing the credit card companies, the auto finance company at home was first second or third of all banks, over 10 billion dollars in Roa sporting a 2.05 for the entire year.
In spite of all the craziness in the bank space home has had a record year because we did not make those ridiculous stupid mistakes because it's our money and our future, Donna. I think I have probably said enough and made enough people mad today, but it is what it is about you.
Well, thank you, Johnny, congratulations on a great year and thank you for the insightful industry update. Our next report now will come from Stephen Tipton
Thanks Donna.
Was Johnny mentioned the fourth quarter was another strong performance for home in Centennial Bank and by all accounts 2025 was a great success.
Continued, strong earnings asset quality metrics and capital Generation all capped off.
By our announcement of the mountain, Commerce Bank acquisition in December.
Highlighted by strong revenue and continued net interest margin expansion. We were able to produce an adjusted return on assets of 2.05% and adjusted diluted earnings per share of 60 cents.
The reported net interest margin improved to 4.61% up 5 basis points from Q3 and up to 22 basis points from the same period a year ago.
The core margin excluding event income was 4.56% versus 4.53% in Q3.
The loan yield decline by 13 basis points to 7.23%, but was offset by a 15 basis. Point decline in interest-bearing deposit costs to 247,
Total deposit costs were 1.91% in Q4 and exited the quarter at 1.86%.
Deposit balance is improved by a little over 150 million in Q4, and show growth of 334 million for the full year of 2025.
Non-interest bearing balances remain stable in Q4 and comprise 22% of total deposits.
A top tier efficiency ratio continues to be a focus and priority for us.
And while we had some Tailwinds in revenue for the quarter, I'm proud to report an adjusted efficiency ratio of 39.53% for Q4 and 41.29% for the full year. 2025
Loan Production was 1 of the highlights for the quarter at over 2.1 billion dollars highlighted by nearly 1.2 billion from the Community Bank footprint with half of that origination volume coming from Florida.
Capital levels continue to grow throughout the year with common Equity Tier 1 Capital ending at 16.3% and total, risc-based Capital at 19.1%.
As we mentioned, previously, we're thrilled to be partnering with Bill Edwards and Mountain Commerce Bank, and the vibrant middle and East Tennessee, markets.
Our conversations have gone extremely well so far.
While the regulatory applications that is for earlier this week in anticipate a quick process there.
We're excited to welcome, the MCB employees customers and shareholders to the home family soon.
With that said, I'd like to thank our regional and division presidents, and all of our Bankers on another quarter and a great 25, and I'll turn it back over to you Donna.
Thank you, Stephen.
Next is Linda update from Kevin Heder.
Thanks Donna.
Another year is in the books here at home Bank shares and from a lending perspective, it was 1 of the best ever. When you combine the fourth quarter loan growth of 400 million dollars with the loan growth that we've posted through the first, 3 quarters of the year,
Total loan growth through the year. Was 922 million or 6.24%?
both ccfg and the Community Bank footprint contributed to the fourth quarter loan growth and this marks 9 out of the last 10 quarters in which we've posted organic loan growth,
I do want to point out that the fourth quarter loan growth number was higher than we anticipated because of 150 million dollars in payoffs that did not occur as scheduled
the migration of these payoffs into 2026, May dampen early loan, growth expectations,
Asset quality remains strong with a sequential decline in criticized assets and no material change in the NPA and npl ratios.
We continue to work through the small group of problems that we've discussed previously and I have both good and bad news on the DFW, apartment loan that we discussed last quarter.
The loan sale agreement that we were trying to get clothes fell through, but we have applied to significant hard deposit to the balance and our carrying value is at a materially lower number
We continue to work with other parties to move this credit out of the bank.
The Texas cni credit continues to be a work in process. As I mentioned last quarter, it could end up going to non-accrual before we get it out of here and that looks like that could be the case. So stay tuned on that.
We enter the new year with a seasoned lending staff that is focused and understands our credit culture. I expect very good things from them. And while it will be tough to compete with 2025, we believe that 2026 will be equally as successful.
With that data, I'll send it back to you.
Thank you. Kevin. And now, Chris Bolton has an update on ccfg.
Thank you, Donna.
Fourth quarter was a busy 1 for ccfg, we originated over 800 million dollars in loan commitments, resulting in 236 million in net loan growth.
This pulled outstanding loans into positive territory for the year with just under 200 million, or 10% growth for the year.
you may recall that during the year, loan balances dipped to approximately 1.7 billion before rebounding and closing the year at over 2 billion dollars in total outstanding,
For the year, we originally just under 2 billion dollars in loans and received just over a billion dollars and pay Downs. Pay offs both of these figures are a bit higher than average.
Similar to Kevin's comments, I would say that. As we turn attention to 2026, I do expect pay Downs to moderate growth in the near to mid-term but much like this past year future funding and new volume. May largely offset expected. Pay Downs over the course of the year.
Donna, I'll now hand the call back to you.
Thank you, Chris Johnny before we go to Q&A, do you have any additional comments? That's a great quarter, and a great year. Overall, we hung in there pretty good. We didn't make the mistakes and hopefully our investment Community will appreciate our efforts. So,
Kevin Hester: Materially lower number. We continue to work with other parties to move this credit out of the bank. The Texas C&I credit continues to be a work in process. As I mentioned last quarter, it could end up going to non-accrual before we get it out of here, and that looks like that could be the case, so stay tuned on that. We enter the new year with a seasoned lending staff that is focused and understands our credit culture. I expect very good things from them, and while it will be tough to compete with 2025, we believe that 2026 will be equally as successful. With that, Donna, I'll send it back to you.
Kevin Hester: Materially lower number. We continue to work with other parties to move this credit out of the bank. The Texas C&I credit continues to be a work in process. As I mentioned last quarter, it could end up going to non-accrual before we get it out of here, and that looks like that could be the case, so stay tuned on that. We enter the new year with a seasoned lending staff that is focused and understands our credit culture. I expect very good things from them, and while it will be tough to compete with 2025, we believe that 2026 will be equally as successful. With that, Donna, I'll send it back to you.
Anybody else have? Anybody said, Brian you got any comments today? I was a really good year. We blew it out and uh, did quite a bit better than you even had budgeted
We continue to work with other parties to move this credit out of the bank.
Texas C&I credit continues to be a work in process as I mentioned last quarter. It could end up going to non accrual before we get it out of here and that looks like that could be the case, so stay tuned on that.
We entered the new year with a season lending staff that is focused and understands our credit culture.
Do you remember I didn't vote for your budget last year. I said it wasn't 427 or something like that. 425 4425 25. I was on 1 Vogt against it. But anyway, it turned out. Good, turned out much. I knew we could do better. I thought y'all were laying behind a lot of maybe you were. So anyway, I guess we're ready to go the Q&A Don, okay? Operator will turn it back over to you.
Expect very good things from them and while it will be tough to compete with 2025, we believe that 2026 will be equally as successful.
Thank you, if you would like to ask a question please press star. Followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star followed by 2.
With that Donna I'll send it back to you.
Donna Townsell: Thank you, Kevin. Now Chris Poulton has an update on CCFG.
Donna Townsell: Thank you, Kevin. Now Chris Poulton has an update on CCFG.
When proper friends ask you a question, please, enjoy your devices underneath it locally.
Thank you Kevin.
Now, Chris Poulton has an update on Tcf gene.
Christopher Poulton: Thank you, Donna. Fourth quarter was a busy one for CCFG. We originated over $800 million in loan commitments, resulting in $236 million in net loan growth. This pulled outstanding loans into positive territory for the year with just under $200 million, or 10% growth for the year. You may recall that during the year, loan balances dipped to approximately $1.7 billion before rebounding and closing the year at over $2 billion in total outstanding. For the year, we originated just under $2 billion in loans and received just over $1 billion in paydowns, payoffs. Both of these figures are a bit higher than average.
Christopher Poulton: Thank you, Donna. Fourth quarter was a busy one for CCFG. We originated over $800 million in loan commitments, resulting in $236 million in net loan growth. This pulled outstanding loans into positive territory for the year with just under $200 million, or 10% growth for the year. You may recall that during the year, loan balances dipped to approximately $1.7 billion before rebounding and closing the year at over $2 billion in total outstanding. For the year, we originated just under $2 billion in loans and received just over $1 billion in paydowns, payoffs. Both of these figures are a bit higher than average.
Thank you Donna.
First question comes from trolling off strong, with RBC, the line is open, please go ahead.
Fourth quarter was a busy one for CCF G. We originate over $100 million in loan commitments, resulting in $236 million and net loan growth.
Thanks. Good afternoon, everyone.
Hi John.
Hey there. Um,
Filled outstanding loans into positive territory for the year with just under 200 million or 10% growth for the year.
just um,
You may recall that during the year loan balances dipped to approximately $1 7 billion before rebounding in closing the year at over $2 billion in total outstanding.
Maybe it's a question for Kevin or for you John. But um, what what do you attribute the growth to
For the quarter, I know you flagged.
For the year, we originated just under $2 billion in loans and received just over $1 billion in pay downs pay offs. Both of these figures are a bit higher than average.
The payoff that didn't happen but you still had a a strong growth quarter relative to what you've had historically or the pipeline's changing or is there anything else that you feel?
Um, is driving this uh, the stronger growth.
Christopher Poulton: Similar to Kevin's comments, I would say that as we turn attention to 2026, I do expect paydowns to moderate growth in the near to midterm, but much like this past year, future funding and new volume may largely offset expected paydowns over the course of the year. Donna, I'll now hand the call back to you.
Similar to Kevin's comments, I would say that as we turn attention to 2026, I do expect paydowns to moderate growth in the near to midterm, but much like this past year, future funding and new volume may largely offset expected paydowns over the course of the year. Donna, I'll now hand the call back to you.
Similar to Kevin's comments, I would say that as we turn our attention to 2026 I do expect paydowns to moderate growth in the near to mid term, but much like this past year future funding of new volume may largely offset expected pay downs over the course of the year.
Hey John, this is Kevin. So I mean the size and the geography of of the loans is similar. It's the same. Um,
Donna I'll now hand, the call back to you.
Donna Townsell: Thank you, Chris. Johnny, before we go to Q&A, do you have any additional comments?
Donna Townsell: Thank you, Chris. Johnny, before we go to Q&A, do you have any additional comments?
Thank you Chris.
Johnny before we go to Q&A do you have any additional comments.
John Allison: That was a great quarter and a great year overall. We hung in there pretty good. We didn't make the mistakes, and hopefully our investment community will appreciate our efforts. So anybody else have anything to say? Brian had good comments today.
John Allison: That was a great quarter and a great year overall. We hung in there pretty good. We didn't make the mistakes, and hopefully our investment community will appreciate our efforts. So anybody else have anything to say? Brian had good comments today.
<unk>.
And a great year overall.
Pretty good we didn't make mistakes and hopefully our investment community will appreciate our efforts so.
Anybody else everything said, Brian any comments to that.
Brian Davis: It was a really good year. We blew it out and did quite a bit better than we even had budgeted.
Brian Davis: It was a really good year. We blew it out and did quite a bit better than we even had budgeted.
Really good year.
Blew it out.
<unk> did quite a bit better than we even had budgeted.
Most of our loans larger loans tend to be construction loans, you know, those funds over let's say, 18 months this quarter. We had a couple of larger loans that were fully funded because they weren't construction that helped. Um, and we see that from time to time, if they're, if they're big loans, they make a difference. Um, pipelines are strong, I think it was helpful, uh, the, the last quarter that there wasn't a lot of rate movement. I think that, you know, when rates start dropping and then you we we see people doing crazy stuff and that's
John Allison: Do you remember I didn't vote for your budget last year? I said it wasn't 427 or something like that.
John Allison: Do you remember I didn't vote for your budget last year? I said it wasn't 427 or something like that.
Rather than bolster your budget last year.
27, <unk> hundred 25.
Brian Davis: 425.
Brian Davis: 425.
John Allison: I was the only one voting against it, but anyway, it turned out good. It turned out much better. I knew we could do better. I thought y'all were lagging behind a little or maybe you were. So anyway, I guess we're ready to go to Q&A, Donna.
we're seeing that that's happening but if if we're higher for longer than I think that slows down a little bit,
Good morning.
John Allison: I was the only one voting against it, but anyway, it turned out good. It turned out much better. I knew we could do better. I thought y'all were lagging behind a little or maybe you were. So anyway, I guess we're ready to go to Q&A, Donna.
I was the only one vote against it turned out that it turned out.
I know, we can do better.
And that that always helps us. So it's a mixture of 2 or 3 different things, it just happened to all come together.
Orlando I had a lot of it might be you were so anyway, I guess, we're ready to go to Q&A, Okay, operator, I'll turn it back already.
Donna Townsell: Okay. Operator, we'll turn it back over to you.
Donna Townsell: Okay. Operator, we'll turn it back over to you.
Okay. Okay, but pipelines are pretty consistent. They haven't really changed that much.
[laughter].
Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. First question comes from John Armstrong with RBC. Your line is open. Please go ahead.
Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. First question comes from John Armstrong with RBC. Your line is open. Please go ahead.
Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad. If you would like to withdraw your question. Please press star followed by check.
Not not really now.
When preparing to ask a question please press related devices underneath it.
We were I was a little surprised, I was pretty. I was pleased that John is John and I was pleased with with the long growth and uh,
The next question comes from John Armstrong with RBC.
We had I think Chris might comment. I think he had a large payoff. Uh that didn't happen Chris. You want to comment?
Line is open. Please go ahead.
John Armstrong: Thanks. Good afternoon, everyone.
[Analyst] (RBC): Thanks. Good afternoon, everyone.
Thanks, Good afternoon, everyone.
John Allison: Hi, John.
John Allison: Hi, John.
Okay.
John Armstrong: Hey there. Just maybe it's a question for Kevin or for you, John, but what do you attribute the growth to for the quarter? I know you flagged the payoff that didn't happen, but you still had a strong growth quarter relative to what you've had historically. Are the pipelines changing, or is there anything else that you feel is driving this stronger growth?
[Analyst] (RBC): Hey there. Just maybe it's a question for Kevin or for you, John, but what do you attribute the growth to for the quarter? I know you flagged the payoff that didn't happen, but you still had a strong growth quarter relative to what you've had historically. Are the pipelines changing, or is there anything else that you feel is driving this stronger growth?
Hey, there.
Just.
Maybe it's a question for Kevin or for you John but what.
What do you attribute the growth to.
For the quarter I know you flagged.
The payoffs that didn't happen, but you still had a strong growth quarter relative to.
What you've had historically or the pipeline is changing or is there anything else that you feel.
Yes, I I think that's fair. I think I think 2 things for us in the quarter, 1 was, we had a loan that closed at the beginning of the quarter that we had, originally scheduled to close in the third quarter. I think we talked about that before as well, that it slipped into the fourth quarter. And then we had a payoff that we expected in the fourth quarter of the slip to the first quarter. So, you know, if you look at things on like a rolling for quarters, rolling 3, quarters basis, it all kind of evens out, but sometimes you get, you get both those things happening in a quarter and and your number pops a little bit, but I just view it as a little bit of timing.
Is driving this the stronger growth.
Kevin Hester: Hey, John, this is Kevin. So I mean, the size and the geography of the loans is similar. It's the same. Most of our larger loans tend to be construction loans. Those fund over, let's say, 18 months. This quarter, we had a couple of larger loans that were fully funded because they weren't construction. That helped, and we see that from time to time. If they're big loans, they make a difference. Pipelines are strong. I think it was helpful the last quarter that there wasn't a lot of rate movement. I think that when rates start dropping, then we see people doing crazy stuff, and we're seeing that. That's happening. But if we're higher for longer, then I think that slows down a little bit, and that always helps us. So it's a mixture of two or three different things.
Kevin Hester: Hey, John, this is Kevin. So I mean, the size and the geography of the loans is similar. It's the same. Most of our larger loans tend to be construction loans. Those fund over, let's say, 18 months. This quarter, we had a couple of larger loans that were fully funded because they weren't construction. That helped, and we see that from time to time. If they're big loans, they make a difference. Pipelines are strong. I think it was helpful the last quarter that there wasn't a lot of rate movement. I think that when rates start dropping, then we see people doing crazy stuff, and we're seeing that. That's happening. But if we're higher for longer, then I think that slows down a little bit, and that always helps us. So it's a mixture of two or three different things.
Sure, I had a pretty good month too. The December Scott you want.
Hey, John This is Kevin So I mean, the size of the geography of the law.
<unk> is similar it's the same.
Most of our loans larger loans tend to be construction loans those fund over let's say 18 months. This quarter. We had a couple of larger loans that were fully funded because they werent construction that helped.
Have I Lost You? Scott, are you on mute?
And we see that from time to time, if they are if they are big loans that make a difference.
I'm the worst guy in a single, maybe we lost him, but he had a good December. He was telling we were getting earlier, he had 1 of the best months.
In December. So that gave us a little bit.
Pipelines are strong I think it was helpful.
The last quarter that there wasn't a lot of rate movement I think that.
Yep. Yeah, he probably gave us the most eloquent answer on mute but um but I I noticed that was good. Um,
When rates start dropping the need we see people doing crazy stuff and that's where we're seeing that that's happening, but if were higher for longer than I think that slows down a little bit.
Johnny just uh, 1 more.
What 1 more thing, just overall Reserve level goals. Uh you know you I know you've
That always helps us so it's a mixture of two or three different things. It just happened to all come together.
Kevin Hester: It just happened to all come together and make it a little bit higher than what we thought it was going to be.
It just happened to all come together and make it a little bit higher than what we thought it was going to be.
And make it a little bit higher than what we thought it was good.
um expressed the desire to keep the reserve levels high and maybe drill them a little bit. But is is is is 190 enough considering what you've seen with, you know, pretty stable and you know, good quality credit
John Armstrong: Okay. Okay. But pipelines are pretty consistent. They haven't really changed that much?
[Analyst] (RBC): Okay. Okay. But pipelines are pretty consistent. They haven't really changed that much?
Okay. Okay.
Yeah, you know, I've always run wanted a 2% reserve and I always run with the 2%.
Pipelines are pretty consistent they haven't really changed that much.
Not not really no.
Kevin Hester: Not really, no.
Kevin Hester: Not really, no.
Reserving, you know, we had, we had some we had a little settlement this time. Uh,
John Armstrong: Yeah. Okay.
[Analyst] (RBC): Yeah. Okay.
Yes, okay.
John Allison: I was a little surprised. I was pleased. John, I was pleased with the loan growth. And I think Chris might comment. I think you had a large payoff that didn't happen. Chris, you want to comment?
John Allison: I was a little surprised. I was pleased. John, I was pleased with the loan growth. And I think Chris might comment. I think you had a large payoff that didn't happen. Chris, you want to comment?
Yes.
Yes.
I was pleased John as John and I was pleased with with the loan growth.
We had I think Chris might comment on again, a large payoff.
That didn't happen of course, you won't comment.
Yes.
Christopher Poulton: Yes. I think that's fair. I think two things for us in the quarter. One was we had a loan that closed at the beginning of the quarter that we had originally scheduled to close in Q3. I think we had talked about that before as well, that it slipped into Q4, and then we had a payoff that we expected in Q4 that slipped to Q1. So if you look at things on a rolling four quarters or rolling three quarters basis, it all kind of evens out. But sometimes you get both those things happening in a quarter, and your number pops a little bit. But I just view it as a little bit of timing.
Christopher Poulton: Yes. I think that's fair. I think two things for us in the quarter. One was we had a loan that closed at the beginning of the quarter that we had originally scheduled to close in Q3. I think we had talked about that before as well, that it slipped into Q4, and then we had a payoff that we expected in Q4 that slipped to Q1. So if you look at things on a rolling four quarters or rolling three quarters basis, it all kind of evens out. But sometimes you get both those things happening in a quarter, and your number pops a little bit. But I just view it as a little bit of timing.
Yes, I think that's fair I think I think two things for us in the quarter. One was we had a loan that closed at the beginning of the quarter than we had originally scheduled to close in the third quarter. I think we had talked about that before as well that it slipped into the fourth quarter and then we had to pay off that we expected the fourth quarter that slipped to the first quarter.
You know, you don't normally run a run at a 3%, free tax free provision our away, like we did this quarter. So we had a little extra money and I thought it was a good time. I think I said, in the past, we get an opportunity, we'll be able reserves and and we'll, I just like a 2% Reserve. When we get some, we get an opportunity, we'll probably continue to take that up. So we don't get an opportunity. We won't take it up. Yeah, it's plenty of the reserve is plenty, but I I just
No.
If you look at things on a rolling four quarters Rolling three quarters' basis at all kind of evens out, but sometimes you get you get both those things happened in the quarter and your number of pop a little bit, but just beautiful little bit of timing.
Regard. We don't know what's going to happen next, right? We just, we just don't know what's going to happen. Something's going to happen. We don't know what's going to happen. However, it looks pretty good for us for, for the the future. I mean, it looks like
Countrywide, it looks like we may have a 26 maybe a good year for all of us in 27, maybe even a better year. So I'm pretty excited about what the future is.
John Allison: I think Shore had a pretty good month too, December. Scott, you want to comment? Kev, I lost you, Scott. Are you on mute? I don't know where Scott is. Maybe we lost him, but he had a good December. We were scheduling earlier. He had one of his best months in December, so that gave us a little kick in the butt.
John Allison: I think Shore had a pretty good month too, December. Scott, you want to comment? Kev, I lost you, Scott. Are you on mute? I don't know where Scott is. Maybe we lost him, but he had a good December. We were scheduling earlier. He had one of his best months in December, so that gave us a little kick in the butt.
Sure had a pretty good too.
Scott you will comment.
Yeah.
Yep. Okay. All right. Thank you for taking my questions. Nice job. Thanks for thanks for your support John. You've been a supporter since
Yeah.
Kevin I lost you Scott are you on mute.
2006, I think and I appreciate it.
Scotty and see where maybe we lost him, but he had a good December universal traveller.
We now time to Steen Scootin with Piper Sandler. Your line is open. Please go ahead.
Yes.
Best months.
In December kind of let you got it.
Hey, good afternoon everyone. Um, I guess maybe going back to loan growth for a second. Um,
Yeah.
John Armstrong: Yep. Yeah. He probably gave us the most eloquent answer on mute, but I noticed that was good. Johnny, just one more thing. Just overall reserve level goals. I know you've expressed the desire to keep the reserve levels high and maybe grow them a little bit, but is 190 enough considering what you've seen with pretty stable and good quality credit?
[Analyst] (RBC): Yep. Yeah. He probably gave us the most eloquent answer on mute, but I noticed that was good. Johnny, just one more thing. Just overall reserve level goals. I know you've expressed the desire to keep the reserve levels high and maybe grow them a little bit, but is 190 enough considering what you've seen with pretty stable and good quality credit?
Yeah, Yeah, he probably gave us the most eloquent answer on mute, but but I noticed that was good.
Johnny just one more [laughter].
One more thing just overall reserve level goals.
I know you've.
Expressed the desire to keep the reserve levels high and maybe grow them a little bit but it is 190 enough considering what you've seen with pretty stable and good quality credit.
I think Kevin you said like no no, major changes, nothing different. But I did see 1 larger loan kind of get flagged, the potential larger energy loan, get flagged in some Publications and just curious. Um, if that's a sector that you guys are lending to anymore, um, significantly now at this point in time and if there's any any kind of larger chunkier loans that were within the quarter's results,
John Allison: Yeah. You know I've always run one of the 2% reserve, and I always run with a 2% reserve. We had a little settlement this time. You don't normally run at a 3% Pre-Tax Pre-Provision ROA like we did this quarter. So we had a little extra money, and I thought it was a good time. I think I said in the past, if we get an opportunity, we'll build reserves. I just like a 2% reserve. When we get an opportunity, we'll probably continue to take that up. So if we don't get an opportunity, we won't take it up. Yeah, it's plenty. The reserve is plenty. But we don't know what's going to happen next, right? We just don't know what's going to happen. Something's going to happen. We don't know what's going to happen. However, it looks pretty good for us for the future.
John Allison: Yeah. You know I've always run one of the 2% reserve, and I always run with a 2% reserve. We had a little settlement this time. You don't normally run at a 3% Pre-Tax Pre-Provision ROA like we did this quarter. So we had a little extra money, and I thought it was a good time. I think I said in the past, if we get an opportunity, we'll build reserves. I just like a 2% reserve. When we get an opportunity, we'll probably continue to take that up. So if we don't get an opportunity, we won't take it up. Yeah, it's plenty. The reserve is plenty. But we don't know what's going to happen next, right? We just don't know what's going to happen. Something's going to happen. We don't know what's going to happen. However, it looks pretty good for us for the future.
Yeah, you know I'm always wrong and wanted a 10% reserve knowledge, along with a 2% reserve.
We had we had some.
We had a little settlement this time.
Hey Stephen. This is Kevin so that that particular loan is a loan we've had for some time. I think we upsized it a little bit. They may be why it got flagged but it's a customer we've had for a while. I I don't know that it's indicative that we're you know that we're really
You don't normally run right at a 3% pretax pre provision on a way like we did this quarter. So we had a little extra money and that's always a good time I think I've said in the past, we get an opportunity we will be able reserves.
I, just like a 2% reserve when we get some we get an opportunity we will probably continue to take that up.
We had an opportunity we won't take it up yeah. It's play the reserve plenty, but at other.
Diving into that market anymore. It's just a really good opportunity that we that we liked very well and felt like we could size up and and got very comfortable with. So, will we do that again? We might, if we, if we see things we like, but uh, that's 1. We've had for a while. It's not a brand new relationship, Stephen that that was part. Happy was in that credit. Syndicated credit for
Regarding we don't know what's going to happen next.
Just don't know what's going to happen something's going to happen, we don't know what's going to happen.
uh, I think it was 5 or 6 banks in it at 1 time and the, uh, the Lead Bank, if you remember got in trouble and
However, it looks pretty good for us for the future I mean, it looks like.
John Allison: I mean, it looks like countrywide, it looks like we may have a 2026 may be a good year for all of us, and 2027 may be even a better year. So I'm pretty excited about what the future yields.
I mean, it looks like countrywide, it looks like we may have a 2026 may be a good year for all of us, and 2027 may be even a better year. So I'm pretty excited about what the future yields.
Yeah.
Countrywide it looks like we may have a 20 <unk> might be a good year for all of us in 'twenty southern might be even a better year, so I'm pretty excited about what the future yields.
John Armstrong: Yep. Okay. All right. Thank you for taking my questions. Nice job.
[Analyst] (RBC): Yep. Okay. All right. Thank you for taking my questions. Nice job.
Okay.
Okay Alright, thank you for taking my questions nice job. Thanks for thanks for your support John you've been a supporter since two.
John Allison: Thanks for your support, John. You've been a supporter since 2006, I think. I appreciate it.
John Allison: Thanks for your support, John. You've been a supporter since 2006, I think. I appreciate it.
2006, 9%.
Yeah.
It's not that's not something. I mean we're a little nervous about some of those markets but we like this credit a lot. We like this, we like this operator a lot, he's done extremely well by the way, that's a 350 million credit and it's it's at about 280 now. So it hadn't even it's that's not the credit that that popped the the the loans up for the quarter.
Operator: We now turn to Stephen Scouten with Piper Sandler. Your line is open. Please go ahead.
Operator: We now turn to Stephen Scouten with Piper Sandler. Your line is open. Please go ahead.
We now turn to Stephen Scouten with Piper Sandler. Your line is open. Please go ahead.
Stephen Scouten: Hey, good afternoon, everyone. I guess maybe going back to loan growth for a second. I think, Kevin, you said no major changes, nothing different. But I did see one larger loan kind of get flagged, a potential larger energy loan get flagged in some publications. And just curious if that's a sector that you guys are lending to any more significantly now at this point in time, and if there's any kind of larger or chunkier loans that were within the quarter's results.
Stephen Scouten: Hey, good afternoon, everyone. I guess maybe going back to loan growth for a second. I think, Kevin, you said no major changes, nothing different. But I did see one larger loan kind of get flagged, a potential larger energy loan get flagged in some publications. And just curious if that's a sector that you guys are lending to any more significantly now at this point in time, and if there's any kind of larger or chunkier loans that were within the quarter's results.
Hey, good afternoon, everyone.
I guess, maybe going back to loan growth for a second.
I think Kevin you said like no no major changes nothing different but I did see one larger loan kind of get flagged a potential larger energy loan get flagged in some publications and just curious.
That's a sector that you guys are lending to anymore Cigna.
Got it, got it. Super helpful. Thank you there. Um, and then maybe thinking about deposit growth, um, for for a minute, I mean, do you feel like you, um, Can can drive enough to buy the growth to, to fund the, the opportunities you guys have on the loan side and kind of, how do you think about the loan to deposit ratio from here? I know you used to, you used to be willing to run it pretty hot, but I think lately, you've said maybe keeping it between 90 and 95% would be the goal. Just wondering how you're thinking about that.
Significantly now at this point in time, and if there's any kind of larger chunkier loans that were within the quarters results.
Kevin Hester: Hey, Stephen. This is Kevin. So that particular loan's a loan we've had for some time. I think we upsized it a little bit. That may be why it got flagged, but it's a customer we've had for a while. I don't know that it's indicative that we're really diving into that market anymore. It's just a really good opportunity that we liked very well and felt like we could size up and got very comfortable with. So will we do that again? We might if we see things we like, but that's one we've had for a while. It's not a brand new relationship.
Kevin Hester: Hey, Stephen. This is Kevin. So that particular loan's a loan we've had for some time. I think we upsized it a little bit. That may be why it got flagged, but it's a customer we've had for a while. I don't know that it's indicative that we're really diving into that market anymore. It's just a really good opportunity that we liked very well and felt like we could size up and got very comfortable with. So will we do that again? We might if we see things we like, but that's one we've had for a while. It's not a brand new relationship.
Hey, Steven this is Kevin so that particular loans alone we've had for some time I think we upsize it a little bit maybe why it got flag, but it's a customer we've had for a while.
I don't know that it's indicative that were that were really.
Hey Stephen. This is Stephen. Um yeah I guess last part first. I mean I you know mid 90s is is probably you know where we would would Target where we ended the quarter at at 89, you know, Mountain Commerce. Will will increase that very slightly, they're, you know, running a little hotter than we are. But something in the mid 90s, I mean, I think our approach is, you know, we've long said we, we don't run.
Diving into that market. It anymore. It's just a really good opportunity that we that we liked very well and felt like we could size up and got very comfortable with so when we do that again, we might if we if we see things we like but.
That's one we've had for a while it's not a brand new relationship.
Uh, CD ads, we run, you know, we advertise the company strengths. Um, you know, there are certain opportunities to, to be a little more aggressive at times. Uh, from an interest rate perspective, if we have to and, you know, the markets that we're in are are are certainly. Um,
John Allison: Stephen, that was partly in that credit, syndicated credit for, I think it was five or six banks in it at one time. And the lead bank, if you remember, got in trouble, and we took everybody out. So from an all-credit perspective, it may be the best all-credit in the country. And that's not something we're a little nervous about some of those markets, but we like this credit a lot. We like this operator a lot. He's done extremely well. By the way, that's a $350 million credit, and it's at about $280 million now. So that's not the credit that popped the loans up for the quarter.
John Allison: Stephen, that was partly in that credit, syndicated credit for, I think it was five or six banks in it at one time. And the lead bank, if you remember, got in trouble, and we took everybody out. So from an all-credit perspective, it may be the best all-credit in the country. And that's not something we're a little nervous about some of those markets, but we like this credit a lot. We like this operator a lot. He's done extremely well. By the way, that's a $350 million credit, and it's at about $280 million now. So that's not the credit that popped the loans up for the quarter.
That was part happy was in that credit is syndicated credit for.
I think it was five or six banks in it at one time and.
The lead bank, if you remember got in trouble.
Uh huh.
And we took everybody out so it is a.
You know, potential deposit providers for us down the road, particularly in parts of Florida. So, um, we're we're optimistic and I think optimistic in in Tennessee as well, but, uh, you know, the company strengths and our size and, and branding that bill and his team will will be able to capitalize on that from a deposit growth standpoint too.
From an old credit perspective, it may be the best all credit in the country.
It's not that's not something.
We're a little nervous about some of those markets.
But we like as credit a lot. We like is we like this operator, what he has done extremely well by the way that's a $350 million credit.
It's at about two <unk> now so it had any it's that's not the credit at the top of that.
Yeah, that's great, appreciate that. Stephen. And then this may be lasting for me. I did notice. Um, obviously, I mean the Reserve at 190. I'm not particularly concerned about anything on the credit side with you guys. Kind of capital ton of reserves but I noticed the 90-day delinquencies. Um, on the Shore, Premiere book did increase a little bit and I know you said they had a good month in December, so maybe that's just
The loan is up for the quarter.
Christopher Poulton: Got it. Got it. Super helpful. Thank you there. And then maybe thinking about deposit growth for a minute. I mean, do you feel like you can drive enough deposit growth to fund the opportunities you guys have on the loan side? And kind of how do you think about the loan-to-deposit ratio from here? I know you used to be willing to run it pretty hot, but I think lately you've said maybe keeping it between 90% and 95% would be the goal. Just wondering how you're thinking about that.
Christopher Poulton: Got it. Got it. Super helpful. Thank you there. And then maybe thinking about deposit growth for a minute. I mean, do you feel like you can drive enough deposit growth to fund the opportunities you guys have on the loan side? And kind of how do you think about the loan-to-deposit ratio from here? I know you used to be willing to run it pretty hot, but I think lately you've said maybe keeping it between 90% and 95% would be the goal. Just wondering how you're thinking about that.
Got it got it Super helpful. Thank you there and then maybe thinking about deposit growth for a minute I mean do you feel like you.
Episodic. But just wondering if there's any kind of change in your view about that that line of business and and kind of How It's performing or how Trends are going there.
You can drive enough to buy that growth to fund the opportunities you guys have on the loan side and kind of how do you think about the loan to deposit ratio from here I know you used to used to be willing to run at pretty hot but I think lately, you've said, maybe keeping it between 90% to 95% would be the goal just wondering how youre thinking about that.
Hey Steve, this is Kevin. So we've got we've got 3 or 4 single loans that they're kind of 1 off in nature that it's just taking longer to get through the the the process to get them back and get them sold than than we would like. And it's, it's a function of just going through your
Your repossession process. Um,
Stephen Tipton: Hey, Stephen. This is Stephen. Yeah, I guess last part first. I mean, mid-90s is probably where we would target. We ended the quarter at 89. Mountain Commerce will increase that very slightly. They're running a little hotter than we are, but something in the mid-90s. I mean, I think our approach is we've long said we don't run CD ads. We advertise the company's strength. There's certainly opportunities to be a little more aggressive at times from an interest rate perspective if we have to. And the markets that we're in are certainly potential deposit providers for us down the road, particularly in parts of Florida. So we're optimistic, and I think optimistic in Tennessee as well that the company's strength, our size, and branding that Bill and his team will be able to capitalize on that from a deposit growth standpoint too.
Stephen Tipton: Hey, Stephen. This is Stephen. Yeah, I guess last part first. I mean, mid-90s is probably where we would target. We ended the quarter at 89. Mountain Commerce will increase that very slightly. They're running a little hotter than we are, but something in the mid-90s. I mean, I think our approach is we've long said we don't run CD ads. We advertise the company's strength. There's certainly opportunities to be a little more aggressive at times from an interest rate perspective if we have to. And the markets that we're in are certainly potential deposit providers for us down the road, particularly in parts of Florida. So we're optimistic, and I think optimistic in Tennessee as well that the company's strength, our size, and branding that Bill and his team will be able to capitalize on that from a deposit growth standpoint too.
He stayed in the state.
Nothing, nothing major. Thanks for that. 1 moment that we're talking we've talked about it for 6 months, now was arrested.
Yeah, I guess last part first I mean mid Ninety's as is probably where we would target where we ended the quarter at 89.
Mountain Commerce will increase.
Increased very slightly there.
Running a little hotter than we are but something in the mid nineties I mean I think our approach is we've long said, we don't run.
CD ads, we run we advertise the company's strength.
You know there's certainly.
The opportunities to be a little more aggressive at times from an interest rate perspective, if we have two in.
We're in a 50% on the dollar, the ten million dollar amount we got less than 5, or maybe probably got 5 million in it. Now, we can't get it out of the court system, but the guy just keeps the attorney had a cardiac problem. And I mean, every kind of excuse in the world. They keep doing, but we're in good shape on that boat it. It we've had the boat for 9 months, I mean. Yeah, we've had it for 9 months, we've got it. We got arrested for 9 months. We're paying the ticket on it, it's eaten by the way. So, you know, it's just getting it out of the court system is, is a hell of a problem and
The markets that we're in or are certainly.
Potential deposit providers for us down the road, particularly in parts of Florida. So.
We're optimistic and I think optimistic in Tennessee, as well that our company's strength and our size and branding that bill and his team will we'll be able to capitalize on that from a deposit growth standpoint too.
You'll see 5 million of that, get pop, go away pretty quick. When that happens and we just he says he's going to pay for it and he says he's going to refinance it. And he begs the court and the judge gives him another 30 days. I don't know what the frustrated motor would be 20 years old before he get it back I guess.
Or not. So they had a good deal. I've talked to him this morning about exactly what you said about.
Yeah.
Christopher Poulton: Yeah, that's great. Appreciate that, Stephen. And then just maybe last thing for me. I did notice, obviously, I mean, the reserve at 190. I'm not particularly concerned about anything on the credit side with you guys. Ton of capital, ton of reserves. But I noticed the 90-day delinquencies on the Shore Premier book did increase a little bit. And I know you said they had a good month in December, so maybe that's just episodic. But just wondering if there's any kind of change in your view about that line of business and kind of how it's performing or how trends are going there.
Christopher Poulton: Yeah, that's great. Appreciate that, Stephen. And then just maybe last thing for me. I did notice, obviously, I mean, the reserve at 190. I'm not particularly concerned about anything on the credit side with you guys. Ton of capital, ton of reserves. But I noticed the 90-day delinquencies on the Shore Premier book did increase a little bit. And I know you said they had a good month in December, so maybe that's just episodic. But just wondering if there's any kind of change in your view about that line of business and kind of how it's performing or how trends are going there.
Yeah, that's great I appreciate that Steven and then just maybe last thing for me I did notice obviously I mean, the reserve at 190, I'm, not particularly concerned about anything on the credit side. When do you guys kind of capital it's on reserves, but I noticed the 90 day delinquencies on.
On the shore Premier, but did increase a little bit and I know you said they had a good month in December so maybe that's just.
Episodic, but just wondering if theres any kind of change in your view about that that line of business and kind of how it's performing or how trends are going there.
We see anything. What? I'm with the guy shot himself, I mean, it's a lot of scattered stuff and probably 4. We got 4 or 5 others. That probably I said, think about the fact that what you loaned on it and what we're going to get out of it and how much losses in there. And, you know, maybe you need to improve our loan to loan to value a little bit on the origination as it turned out only half of these were, we had originated the other half we bought in pools, so
Feel better about that.
Kevin Hester: Hey, Stephen. This is Kevin. So we've got three or four single loans that are kind of one-off in nature, that it's just taken longer to get through the process to get them back and get them sold than we would like. And it's a function of just going through your repossession process. Nothing major.
Kevin Hester: Hey, Stephen. This is Kevin. So we've got three or four single loans that are kind of one-off in nature, that it's just taken longer to get through the process to get them back and get them sold than we would like. And it's a function of just going through your repossession process. Nothing major.
Hey, Steven this is Kevin So we've got we've got three or four single loans that are kind of one off in nature, it's just taking longer to get through that.
Got it. That's great color. Thank you guys. Congrats on the great 2025. Look forward to to watching another great year here in 26. Appreciate your time.
Hey, thank you and thanks for your support.
The process to get them back and get them sold then than we would like and it's a function of just going through your.
Have a great supporter and I I think we all. Thank you for that. We know, we know you you wrote the the best report on this this time. So, thanks.
Youre repossession process.
We know it's in my old name with Stevens. Your line is open, please go ahead.
Nothing nothing major.
John Allison: One boat that we've talked about for six months now was arrested. We're in at 50% on the dollar, the $10 million boat. We got less than 5 or maybe probably got 5 million in it now. We can't get it out of the court system, but the guy just keeps, the attorney had a cardiac problem. And I mean, every kind of excuse in the world they keep doing, but we're in good shape on that boat.
John Allison: One boat that we've talked about for six months now was arrested. We're in at 50% on the dollar, the $10 million boat. We got less than 5 or maybe probably got 5 million in it now. We can't get it out of the court system, but the guy just keeps, the attorney had a cardiac problem. And I mean, every kind of excuse in the world they keep doing, but we're in good shape on that boat.
One.
We've talked about for six months now was arrested.
Hey, thanks for taking the question guys. Um,
We're in it 50% on the dollar $10 million about we got less than five or maybe all.
We got $5 million now we can't get it out of court system.
It's already had a cardiac problem I mean ever count excuse in the world I keep doing but we're in good shape on that boat.
Kevin Hester: We've had the boat for nine months. I mean.
Kevin Hester: We've had the boat for nine months. I mean.
appreciate all the details on the loan pipelines. I was looking for more color on on loan pricing. Um, some of your peers are talking about incremental data points around loan pricing, getting a little bit tighter more recently. I'm curious what you're seeing and hearing with respect to competitive pressures in various markets from ccfg to the Community Bank.
We've had the boat for nine months I mean, we've had for nine months, we got it got arrested for nine months, we're paying that ticket.
John Allison: Yeah, we've had it for nine months. We got arrested for nine months. We're paying a ticket on it. It's eaten, by the way. So it's just getting it out of the court system is a hell of a problem. You'll see $5 million of that pop up and go away pretty quick when that happens. He says he's going to pay for it, and he says he's going to refinance it, and he begs the court, and the judge gives him another 30 days. I don't know. It's frustrating. The boat will be 20 years old before we get it back, I guess. I hope not. They had a good. I talked to them this morning about exactly what you said about we see anything. One of them was a guy shot himself. I mean, it's a lot of scattered stuff.
John Allison: Yeah, we've had it for nine months. We got arrested for nine months. We're paying a ticket on it. It's eaten, by the way. So it's just getting it out of the court system is a hell of a problem. You'll see $5 million of that pop up and go away pretty quick when that happens. He says he's going to pay for it, and he says he's going to refinance it, and he begs the court, and the judge gives him another 30 days. I don't know. It's frustrating. The boat will be 20 years old before we get it back, I guess. I hope not. They had a good. I talked to them this morning about exactly what you said about we see anything. One of them was a guy shot himself. I mean, it's a lot of scattered stuff.
Uh, well, I'll I'll cover this code, I'll cover the Community Bank. I mean, we're seeing some
Otherwise so.
It's just.
Get them, how the court system is a hell of a problem.
You'll see 5 million of that pop go away pretty quick when that happens and we have.
Really silly stuff. I mean it's what off here and there it's different. Different groups in different local so it's not it's not 1 group but I mean
He said he is going to pay for it and he says he's going to refinance it.
We saw a deal of floating.
At uh, Prime.
Thanks Court and the judge gives you another 30 days I don't know, it's frustrating and Barbara make 20 years old four get it back.
Minus 75.
with a
no floor.
I hope not.
They have a good day I've talked to him. This morning about exactly what you said about.
We see anything but one of them looks like as Chatham sale.
A ceiling of 6 and you can fix it at any point during the next 10 years.
A lot of scattered stuffed and probably we got four or five others that probably I said think about the fact that once you're along the on it and we're going to get out of it and how much losses in there.
John Allison: Probably we got four or five others that probably I said, "Think about the fact that what you loaned on it, what we're going to get out of it, and how much loss is in there. And maybe you need to improve our loan to value a little bit on the origination." As it turned out, only half of these were we had originated. The other half we had bought in pools. So I feel better about that.
I don't know how you could beat that.
Probably we got four or five others that probably I said, "Think about the fact that what you loaned on it, what we're going to get out of it, and how much loss is in there. And maybe you need to improve our loan to value a little bit on the origination." As it turned out, only half of these were we had originated. The other half we had bought in pools. So I feel better about that.
We need to improve our loan to loan to body a little bit.
So, I mean it it there is crazy stuff out there. Uh, it, I think it does slow down a little bit when you don't have rate drops.
On the origination as it turned out only half of these where we had originally idea that had happened with volte in pools.
If we stay here for a little while, maybe that that gets a little better but it's it's silly.
I feel better about that.
but yesterday I asked
Christopher Poulton: Got it. That's great, Keller. Thank you, guys. Congrats on a great 2025. Look forward to watching another great year here in 2026. Appreciate the time.
Christopher Poulton: Got it. That's great, Keller. Thank you, guys. Congrats on a great 2025. Look forward to watching another great year here in 2026. Appreciate the time.
Got it that's great color. Thank you guys. Congrats on a great 2025, and look forward to Washington, another great year here in 2006 I appreciate it.
1.
60, or 70 reduction in, right?
John Allison: Hey, thank you. Thanks for your support. You've been a great supporter, and we all thank you for that. We know you wrote the best report on us this time, so thanks.
John Allison: Hey, thank you. Thanks for your support. You've been a great supporter, and we all thank you for that. We know you wrote the best report on us this time, so thanks.
Thank you and thanks for your support you've been you've been a great supporter.
I told my never done that before. No 160. 170 is up to the right.
We all thank you for that.
Anyway, it's just
No you you wrote that the best report over assist times you'll blocks.
Okay.
Operator: We now turn to Matt Olney with Stephens. Your line is open. Please go ahead.
Operator: We now turn to Matt Olney with Stephens. Your line is open. Please go ahead.
Now turning to Matt Olney with Stephens. Your line is open. Please go ahead.
They're starting. I mean, it's starting it's the the the kids got the kids, got the money in the running with it. So it's it it it this is the toughest part. This is the toughest part.
Matt Olney: Hey, thanks for taking the question, guys. Appreciate all the details on the loan pipelines. I was looking for more color on loan pricing. Some of your peers are talking about incremental data points around loan pricing getting a little bit tighter more recently. I'm curious what you're seeing and hearing with respect to competitive pressures in various markets from CCFG to the community bank.
Matt Olney: Hey, thanks for taking the question, guys. Appreciate all the details on the loan pipelines. I was looking for more color on loan pricing. Some of your peers are talking about incremental data points around loan pricing getting a little bit tighter more recently. I'm curious what you're seeing and hearing with respect to competitive pressures in various markets from CCFG to the community bank.
Hi, Thanks for taking the question guys.
All the details on the loan pipelines I was looking for more color on loan pricing.
Some of your peers are talking about incremental data points around loan pricing getting a little bit tighter more recently I'm curious, what you're seeing and hearing with respect to competitive pressures in various markets from <unk> to the community Bank.
Sure.
Kevin Hester: Well, I'll cover this, Kevin. I'll cover the community bank. I mean, we're seeing some really silly stuff. I mean, it's one-off here and there. It's different groups in different locales, so it's not one group. But I mean, we saw a deal of floating at prime minus 75 with a no floor, a ceiling of six, and you can fix it at any point during the next 10 years. I don't know how you compete with that. So I mean, there is crazy stuff out there. I think it does slow down a little bit when you don't have rate drops. If we stay here for a little while, maybe that gets a little better, but it's silly.
Kevin Hester: Well, I'll cover this, Kevin. I'll cover the community bank. I mean, we're seeing some really silly stuff. I mean, it's one-off here and there. It's different groups in different locales, so it's not one group. But I mean, we saw a deal of floating at prime minus 75 with a no floor, a ceiling of six, and you can fix it at any point during the next 10 years. I don't know how you compete with that. So I mean, there is crazy stuff out there. I think it does slow down a little bit when you don't have rate drops. If we stay here for a little while, maybe that gets a little better, but it's silly.
Well I'll cover this got it all covered the community Bank I mean, we're seeing some.
Of the cycle that we're going through, is rates come down. It is watching these people that what you want, yesterday, Kevin said it has no floor and you can set it any time within 5 or ten years, whatever it is that when you it's hilarious. But I mean, that's what you got to deal with, and, and you got to live with it. It's just part of biking. It's a silly silly part, I can, but that's what it is. You know, I'd say our, our group's navigated through all of this competitive environment, really? Well, I mean, I think the Community Bank,
Really silly stuff I mean, it's one off here and there it's different different groups in different locales. So it's not not one group, but I mean.
We saw a deal a floating.
At.
Prime minus 75.
Uh originations in Q4 were about 690 and I think in December, you know, reflective of the last 2 drops were were in the 675 range. You know, on a on a on a coupon plus fee. So I mean our folks are still doing a great job and and getting the the yield
With.
No floor.
A ceiling of six and you can fix.
Fix it at any point during the next 10 years.
Yeah, good. Well I appreciate that color and then just I guess take following up on the margin overall. I mean the core margin continues to move higher. I think we're at 350 or 453 this past quarter.
I don't know how you compete with that.
Curious kind of what you see the puts and takes on the margin. Um, as you move into 2026,
Oh.
Matt, we we
So there.
we said, for,
There is crazy stuff out there.
I think it does slow down a little bit when you don't have rate drops.
If we stay here for a little while maybe that gets a little better but it's it's silly.
Well say, we hope to keep it flat and maybe it'll go up a little bit. Um, you know, we a couple things there. I mean
But what about yesterday, they ask for them.
John Allison: When yesterday they asked for a 160 or 70 reduction in rate, I told them I'd never done that before. I've never done a 160 or 170 reduction in rate. So anyway, it's just they're starting. I mean, it's starting. The kids got the money, and they're running with it. So this is the toughest part. This is the toughest part of the cycle that we're going through as rates come down: is watching these people. One yesterday, Kevin said that it has no floor. And you can set it anytime within five or 10 years, whatever it is, when you it's hilarious. But I mean, that's what you got to deal with, and you got to live with it. It's just part of banking. It's a silly, silly part of banking, but that's what it is.
John Allison: When yesterday they asked for a 160 or 70 reduction in rate, I told them I'd never done that before. I've never done a 160 or 170 reduction in rate. So anyway, it's just they're starting. I mean, it's starting. The kids got the money, and they're running with it. So this is the toughest part. This is the toughest part of the cycle that we're going through as rates come down: is watching these people. One yesterday, Kevin said that it has no floor. And you can set it anytime within five or 10 years, whatever it is, when you it's hilarious. But I mean, that's what you got to deal with, and you got to live with it. It's just part of banking. It's a silly, silly part of banking, but that's what it is.
One.
Six years 70 reduction in right.
I thought I'd never done that before.
Safety of 170 or so.
Okay.
It just yet.
They're starting I mean, it's starting it's the the the kids you got like you have got the money and running with it so.
This is the toughest part this is the toughest part.
And I guess it ties into your your question on competition. But, you know, I sure we've got about a billion 2 uh, in fixed rate loans that mature over the course of this year that are in the aggregate about 5:40. So there should be some some room to bring those up if, you know of competition allows if everybody doesn't trade all this away. Um, so there's some room there, our CD portfolio is pretty sure. There may be a little bit of room there, as, as as
The cycle that we're going through as rates come down.
Watching these people.
One yesterday, Kevin said, there is no floor and you can set at anytime within five or 10 years whatever it is.
As those mature and, and are able to work rates down, but again kind of same thing. Competition, um,
It's hilarious.
I mean, that's what's got them with.
And you got to live with it it's just part of banking, it's a silly silly par banking, but that's.
That's what it is.
Stephen Tipton: Yeah. I'd say our group's navigated through all of this competitive environment really well. I mean, I think the community bank originations in Q4 were about 690, and I think in December, reflective of the last two drops, we're in the 675 range on a coupon plus fees. So I mean, our folks are still doing a great job and getting the yield they should.
Stephen Tipton: Yeah. I'd say our group's navigated through all of this competitive environment really well. I mean, I think the community bank originations in Q4 were about 690, and I think in December, reflective of the last two drops, we're in the 675 range on a coupon plus fees. So I mean, our folks are still doing a great job and getting the yield they should.
Say on our our group's navigated through all of this competitive environment really well I mean I think.
Yeah, I mean we you know if you exclude event income we were at 4:56 for the quarter. Um, we we actually ended December at 4:59, so we've kind of got a good jumping off spot for for, for q1 here. But, you know, I think overall, if we can keep it, if we can hold it in this range, we'd be we'd be pleased.
The community Bank.
Originations in Q4 were about $6 90, and I think in December.
Yep. Okay. Well, appreciate the color and uh, congrats on the year and and looking forward to see what you guys can do in 2026.
Thank you for.
<unk> over the last two drops were in the 675 range.
On a on it.
A coupon plus C. So our folks are still doing a great job in India.
Now it's on today for Rochester with cancer. Fitzgerald, your line is open, please go ahead.
Hey, good afternoon, guys.
The yield shift.
Yeah.
Matt Olney: Yeah. Good. Well, I appreciate that, Keller. And then just, I guess, following up on the margin overall, I mean, the core margin continues to move higher. I think we're at 350 or 453 this past quarter. Curious kind of what you see the puts and takes on the margin as you move into 2026?
Matt Olney: Yeah. Good. Well, I appreciate that, Keller. And then just, I guess, following up on the margin overall, I mean, the core margin continues to move higher. I think we're at 350 or 453 this past quarter. Curious kind of what you see the puts and takes on the margin as you move into 2026?
Yeah, good well I appreciate that color and then just I guess following up on the margin overall I mean, the core margin continues to move higher I think we were at $3 50.
<unk> hundred 53, this past quarter.
Curious kind of what you see the puts and takes on the margin.
A great loan growth. You guys had it looked like there was some pretty serious multi family growth in there with with some of that coming through. Ccfg was just curious. What got you guys to take a big swipe at at multifamily this quarter and what did you like about the loans? Were, they larger more granular and should we expect to see more of a focus on that in 26?
You move into 2026.
Stephen Tipton: Matt, we said for a year now we just hope to keep it flat, and it continued to go up a little bit. So I guess we'll say we hope to keep it flat. Maybe it'll go up a little bit. A couple of things there. I mean, and I guess it ties into your question on competition, but I show we've got about $1.2 billion in fixed-rate loans that mature over the course of this year that are in the aggregate about $540 million. So there should be some room to bring those up if competition allows, if everybody doesn't trade all this away. So there's some room there. Our CD portfolio is pretty short. There may be a little bit of room there as those mature and are able to work rates down. But again, kind of same thing, competition. Yeah.
Stephen Tipton: Matt, we said for a year now we just hope to keep it flat, and it continued to go up a little bit. So I guess we'll say we hope to keep it flat. Maybe it'll go up a little bit. A couple of things there. I mean, and I guess it ties into your question on competition, but I show we've got about $1.2 billion in fixed-rate loans that mature over the course of this year that are in the aggregate about $540 million. So there should be some room to bring those up if competition allows, if everybody doesn't trade all this away. So there's some room there. Our CD portfolio is pretty short. There may be a little bit of room there as those mature and are able to work rates down. But again, kind of same thing, competition. Yeah.
Matt We said for a year now we just hope to keep it flat.
hey Dave, I'm gonna let you mentioned Chris, I like Chris answer for him and then I can give a little bit of a color on
<unk> continued to go up a little bit so I guess, well say, we hope to keep it flat maybe it'll go up a little bit.
the Community Bank side.
Great.
Yes.
Okay. A couple of things there I mean, you know I guess it ties into your question on competition, but yeah I show, we've got about $1 billion to in fixed rate loans that mature over the course of this year that are in the aggregate about $5 40, so there should be some some room to bring those up.
Thanks. Yeah. Dave um yeah, we have a couple of we had a couple loans this quarter where we had some clients that uh that purchased a multi family, either purchase multi family loans or purchased a multi Family Assets and we were we were Levering those so I don't know that, I don't know that we necessarily
If you know if competition allows.
That's right all this away.
So there's some room there our CD portfolio is pretty sure there may be a little bit of room. There is.
Is.
As those mature and are able to work rates down, but again kind of same thing competition.
You know, step back a few months ago and said, let's do a lot of multi family. A lot of what we do is we have a kind of a roster of clients who we've done business with for a long time and they talked to us about the things they're doing. And then we decided we're going to do those that happen to be a lot of multi family. Right now, what we are seeing, you know, in multi family is. There's a, there's a particularly bad vintage of multi family from like 20201.
Stephen Tipton: I mean, if you exclude event income, we were at 456 for the quarter. We actually ended December at 459, so we've kind of got a good jumping-off spot for Q1 here. But yeah, I think overall, if we can keep it, if we can hold it in this range, we'd be pleased.
I mean, if you exclude event income, we were at 456 for the quarter. We actually ended December at 459, so we've kind of got a good jumping-off spot for Q1 here. But yeah, I think overall, if we can keep it, if we can hold it in this range, we'd be pleased.
Yeah, I mean, we you know if you exclude event income we were at $4 56 for the quarter.
We actually ended December at $4 59, So we've kind of got a good jumping off spot for.
Ish range plus or minus months um, where those uh, that vintage hasn't done that well. And so some of those are now trading hands and, uh, a lot of our
For Q1 here, but I think overall, if we can keep it if we can hold it in this range we'd be we'd be pleased.
Yeah.
A lot of my clients buy, you know, either distressed, or semi distressed or expiring loans, and things like that. So, uh, you know, I think that's really what what? Drove that this quarter.
Matt Olney: Yep. Okay. Well, appreciate the color, and congrats on the year, and looking forward to see what you guys can do in 2026.
Matt Olney: Yep. Okay. Well, appreciate the color, and congrats on the year, and looking forward to see what you guys can do in 2026.
Yep, Okay, well I appreciate the color and congrats on the year end and looking forward to see what you guys can do in 2026.
John Allison: You bet. Thanks for your support.
John Allison: You bet. Thanks for your support.
You bet. Thanks for your support.
Operator: We now turn to Dave Rochester with Cantor Fitzgerald. Your line is open. Please go ahead.
Operator: We now turn to Dave Rochester with Cantor Fitzgerald. Your line is open. Please go ahead.
We now turn to Dave Rochester with Cantor Fitzgerald. Your line is open. Please go ahead.
Gotcha. So, I mean, if that's a particular vintage, um, and I would imagine those came up on resets and whatnot. It's just something that maybe we could see over the next couple quarters. At least is it a nice driver for, for growth?
Christopher Poulton: Hey, good afternoon, guys. Wanted to start back on the great loan growth you guys had. It looked like there was some pretty serious multifamily growth in there with some of that coming through CCFG. Was just curious what got you guys to take a big swipe at multifamily this quarter. What did you like about the loans? Were they larger, more granular? And should we expect to see more of a focus on that in '26?
[Company Representative] (Cantor Fitzgerald): Hey, good afternoon, guys. Wanted to start back on the great loan growth you guys had. It looked like there was some pretty serious multifamily growth in there with some of that coming through CCFG. Was just curious what got you guys to take a big swipe at multifamily this quarter. What did you like about the loans? Were they larger, more granular? And should we expect to see more of a focus on that in '26?
Hey, good afternoon guys.
Wanted to start.
On the great loan growth you guys had it looked like there was some pretty serious multifamily growth in the year with with some of that coming through CCF. G was just curious what got you guys to take a big swipe at multifamily this quarter. What did you like about the loans with a larger and more granular and should we expect to see more of a focus on that in 'twenty six.
I like the trade. Um, we'll see how many more there are right. Um, these happen to come along, you know, right now. Um, you know, I think there's a few more, you know, potentially, uh, coming through, um,
Kevin Hester: Hey, Dave, you mentioned Chris. I'll let Chris answer for him, and then I can give a little bit of a color on the community bank side.
Kevin Hester: Hey, Dave, you mentioned Chris. I'll let Chris answer for him, and then I can give a little bit of a color on the community bank side.
Hey, Dave You mentioned, Chris I'll, let Chris answer for him and then I can give a little bit of a color on the community bank side right.
So again, I I think it it depends a little bit. I would say, but, uh, we like that trade. Um, we think there's probably more to go there but, uh, you know, how much of that will end up doing? You know, we'll just have to see it. It's a little bit about whether our clients are full up on that now or not as well. In earlier, you guys have talked about a lot of your production. Your Loan Production was in Florida was a lot of this in Florida.
Christopher Poulton: Great. Thanks. Yeah, Dave. Yeah, we had a couple of loans this quarter where we had some clients that purchased the multifamily, either purchased multifamily loans or purchased multifamily assets, and we were levering those. So I don't know that we necessarily stepped back a few months ago and said, "Let's do a lot of multifamily." A lot of what we do is we have a kind of a roster of clients who we've done business with for a long time, and they talk to us about the things they're doing, and then we decide if we're going to do those. There happen to be a lot of multifamily right now. What we are seeing in multifamily is there's a particularly bad vintage of multifamily from like 2021-ish range, plus or minus months, where that vintage hasn't done that well.
Christopher Poulton: Great. Thanks. Yeah, Dave. Yeah, we had a couple of loans this quarter where we had some clients that purchased the multifamily, either purchased multifamily loans or purchased multifamily assets, and we were levering those. So I don't know that we necessarily stepped back a few months ago and said, "Let's do a lot of multifamily." A lot of what we do is we have a kind of a roster of clients who we've done business with for a long time, and they talk to us about the things they're doing, and then we decide if we're going to do those. There happen to be a lot of multifamily right now. What we are seeing in multifamily is there's a particularly bad vintage of multifamily from like 2021-ish range, plus or minus months, where that vintage hasn't done that well.
Uh, for ccfg now.
Thanks, Yeah, Dave Yeah, we have a couple of we had a couple of them.
We had some clients that are that purchased the multifamily either purchased multifamily loans or purchased multifamily assets and we were we were levering. Those so I don't know that I don't know that we necessarily.
Um, a lot of Sun Belt and some New York, um, uh, but we generally don't do a lot of Florida because I think the bank has a great team down in Florida, that's, uh, that that got, you know, giving the bank pretty good exposure to Florida. I have a little bit in Florida, but we don't really concentrate on Florida.
Yep. Okay.
Step back a few months ago and said, let's do a lot of multifamily a lot of what we do is we have a kind of a roster of clients, who we've done business with for a long time and they talk to us about the things. They were doing and then we decide if we're going to do those that happened to be a lot of multifamily right now what we are seeing.
And multifamily is there's a it was a particularly bad vintage of multifamily from like 2021.
Ish range, plus or minus months, where those the that Vince it hasn't done that well and so some of those are now trading hands and a lot of our.
Christopher Poulton: Some of those are now trading hands, and a lot of my clients buy either distressed or semi-distressed, or expiring loans and things like that. So I think that's really what drove that this quarter. Gotcha. So I mean, it's such a particular vintage, and I would imagine those came up on resets and whatnot. Is this something that maybe we could see over the next couple of quarters at least as a nice driver for growth?
Some of those are now trading hands, and a lot of my clients buy either distressed or semi-distressed, or expiring loans and things like that. So I think that's really what drove that this quarter. Gotcha. So I mean, it's such a particular vintage, and I would imagine those came up on resets and whatnot. Is this something that maybe we could see over the next couple of quarters at least as a nice driver for growth?
There are a lot of my clients by you know either distressed or semi distressed or expiring loans and things like that so no I think that's really what what drove that this quarter.
Um, oh, I'm sorry. Go ahead. I was gonna say it's good segue to the community side. Um, you know, some of our growth will be, as we said before construction stuff that'll be things that we've already closed that are, you know, now funding. So that's part of the third quarter. We still got a really good. Uh, there there are some really good places in in Texas and Florida to put new projects. And so that's what the Community Bank is mostly focused on. And um, I think you'll continue to see that as long as there are good, good markets for it for us. Yeah.
Gotcha.
That particular vintage.
And I would imagine those came upon resets and whatnot, it's just something that maybe we could see over the next couple of quarters at least.
Great appreciate that. Call or maybe just 1 last 1 on expenses. Those are down a little bit. This quarter on a quarter basis and you guys have a really great job, keeping a lid on the Run rate all year. How are you thinking about that run rate heading into uh 26?
A nice driver for growth.
Kevin Hester: I like the trade. We'll see how many more there are, right? These happen to come along right now. I think there's a few more potentially coming through. So again, I think it depends a little bit, I would say, but we like that trade. We think there's probably more to go there, but how much of that we'll end up doing, we'll just have to see. It's a little bit about whether our clients are full up on it now or not as well.
Kevin Hester: I like the trade. We'll see how many more there are, right? These happen to come along right now. I think there's a few more potentially coming through. So again, I think it depends a little bit, I would say, but we like that trade. We think there's probably more to go there, but how much of that we'll end up doing, we'll just have to see. It's a little bit about whether our clients are full up on it now or not as well.
I like the trade, we will see how many more there are right now.
These happen to come along you know right now.
I'll take it um you know I yeah I mean if you look at where Q4 was we had about half a million in merger expense, you take that out we were just shy of of a 114 you know we're going through the budget process. Now it looks like
There's a few more potentially coming.
Coming through so again I think it depends a little bit I would say, but we like that trade. We think there's probably more to go there but.
you know, 1 percentage in terms of of growth on a standalone basis, obviously, you know, we're targeting the the MCB acquisition
How much of that will end up doing.
We'll just have to see it a little bit about whether our clients are full up on them now or not as well.
Early in the SEC early this year uh that'll add some to the Run rate. Before we before we get to the end of the year and get the the integration uh
Christopher Poulton: Earlier, you guys had talked about a lot of your production. Your loan production was in Florida. Was a lot of this in Florida?
[Company Representative] (Cantor Fitzgerald): Earlier, you guys had talked about a lot of your production. Your loan production was in Florida. Was a lot of this in Florida?
And earlier you guys had talked about a lot of your production. Your loan production was in Florida was a lot of this in Florida.
Uh huh.
Kevin Hester: For CCFG, no. A lot of Sunbelt and some New York, but we generally don't do a lot of Florida because I think the bank has a great team down in Florida that's given the bank pretty good exposure to Florida. I have a little bit in Florida, but we don't really concentrate on Florida.
Kevin Hester: For CCFG, no. A lot of Sunbelt and some New York, but we generally don't do a lot of Florida because I think the bank has a great team down in Florida that's given the bank pretty good exposure to Florida. I have a little bit in Florida, but we don't really concentrate on Florida.
There. But, um, yeah, I think fairly well controlled and aside from, you know, Merit increases and things this, this time of the year, we should be in good shape.
Firstly, if you have to you know a lot of sunbelt and some New York.
Yeah, no, it sounds great. All right, thanks guys. Appreciate it.
But we generally don't do a lot of Florida, because I think the bank has a great team down in Florida.
Scott you know given the bank pretty good exposure to Florida, I have a little bit in Florida, but we don't really concentrate on Florida.
We now turn to Catherine Miller with KBW. Your line is open. Please go ahead.
Thanks, good afternoon.
all right, Joe
Christopher Poulton: Yep. Okay. Dave, that's what you'd expect us to do.
Christopher Poulton: Yep. Okay. Dave, that's what you'd expect us to do.
Okay.
Follow up on the margin.
That's what's in expenses with six Oh I'm sorry go ahead, sorry, if I'm going to say, it's good segue to the community side.
Kevin Hester: Oh, I'm sorry.
Kevin Hester: Oh, I'm sorry.
I'm great. How are you doing?
Christopher Poulton: Go ahead.
Christopher Poulton: Go ahead.
Kevin Hester: Sorry about that.
Kevin Hester: Sorry about that.
Christopher Poulton: I was going to say it's a good segue to the community side. Some of our growth will be, as we said before, construction stuff. That'll be things that we've already closed that are now funding. So that's part of Q3. We still got a really good. There are some really good places in Texas and Florida to put new projects. And so that's what the community bank is mostly focused on. And I think you'll continue to see that as long as there are good markets for us. Yep. Great. Appreciate that, Keller. Maybe just one last one on expenses. Those are down a little bit this quarter on a core basis. And you guys have done a really great job keeping a lid on the run rate all year. How are you thinking about that run rate heading into 2026?
Christopher Poulton: I was going to say it's a good segue to the community side. Some of our growth will be, as we said before, construction stuff. That'll be things that we've already closed that are now funding. So that's part of Q3. We still got a really good. There are some really good places in Texas and Florida to put new projects. And so that's what the community bank is mostly focused on. And I think you'll continue to see that as long as there are good markets for us.
Can you hear me?
You know some of our growth will be as we said before construction stuff that'll be things that we've already closed.
When you turn on those kind of numbers that, I'm, I'm pretty happy.
We're pretty happy camper.
Thank you.
Now funding so that's part of the third quarter, we still got a really good there. There are some really good places in Texas, and Florida to put new projects and so that's what the community bank is mostly focused on in.
I think you'll continue to see that as long as there are good good markets for us.
[Company Representative] (Cantor Fitzgerald): Yep. Great. Appreciate that, Keller. Maybe just one last one on expenses. Those are down a little bit this quarter on a core basis. And you guys have done a really great job keeping a lid on the run rate all year. How are you thinking about that run rate heading into 2026?
Yeah.
Great I appreciate that color and maybe just one last one on expenses those were down a little bit this quarter on a core basis and you guys have done a really great job keeping a lid on the run rate all year. How are you thinking about that run rate heading into 'twenty six.
Um, okay, I'm glad you. I'm glad you can hear me. Um, so my question is just circling back to Mountain Commerce and just thinking about when we when we fold that acquisition in on day 1, um, they've got a 250 margin. I know you're going to be able to mark that balance sheet and then probably lower their funding costs over time. But kind of curious how we should think about, um, any initial changes that you'll make to their balance sheet, either in wholesale, CDs or their borrowing, um, or if that'll be more of kind of a gradual thing to model in over time.
Hi.
Stephen Tipton: I'll take it. Yeah. I mean, if you look at where Q4 was, we had about $0.5 million in merger expense. You take that out, we were just shy of $114 million. We're going through the budget process now. It looks like 1%-ish in terms of growth. On a standalone basis, obviously, we're targeting the MCB acquisition early this year. That'll add some to the run rate before we get to the end of the year and get the integration happening there. But yeah, I think fairly well controlled. And aside from merit increases and things this time of the year, we should be in good shape.
Christopher Poulton: I'll take it. Yeah. I mean, if you look at where Q4 was, we had about $0.5 million in merger expense. You take that out, we were just shy of $114 million. We're going through the budget process now. It looks like 1%-ish in terms of growth. On a standalone basis, obviously, we're targeting the MCB acquisition early this year. That'll add some to the run rate before we get to the end of the year and get the integration happening there. But yeah, I think fairly well controlled. And aside from merit increases and things this time of the year, we should be in good shape.
I'll take it.
Yeah, I mean, if you look at where Q4 was we had that happen to aid in merger expense you take that out we were just shy of.
<unk> hundred 14, we're going through the budget process now it looks like you know.
1% ish in terms of of growth on a standalone basis, obviously, we're targeting the FCB acquisition.
Early in the SEC early this year that'll add some to the run rate before we get.
To get to the end of the year and get the integration happening there, but yeah.
Catherine. This is Stephen. I think, you know, from a funding standpoint. I think that's something we'll model over time. Like I said earlier, I mean that we're, we're optimistic, that that bill, and Kevin, and the team, um, you know, with the larger balance sheet and, and the strength of the company can can expand relationships and, and grow, uh, deposits in that market, that would, you know, enable us to maybe work out of of some of the the wholesale, uh, funding that they have. But I think that'll you know, that'll happen over time. Yeah, I think you when you, like you said, when you mark the balance sheet, our initial indications are are, are little to no impact on on where our net, interest margin has has run here over the last couple of quarters.
I think fairly well controlled and aside from you know merit increases and things. This time of the year, we should be in good shape.
wait, we've we've had some good opportunities already in Tennessee, with some
Christopher Poulton: Yeah. No, that sounds great. All right. Thanks, guys. Appreciate it.
[Company Representative] (Cantor Fitzgerald): Yeah. No, that sounds great. All right. Thanks, guys. Appreciate it.
Yeah, no that sounds great alright, thanks, guys appreciate it.
John Allison: Thanks, Dave.
John Allison: Thanks, Dave.
Hi, Syed.
Operator: We now turn to Katherine Miele with KBW. Your line is open. Please go ahead.
Operator: We now turn to Katherine Miele with KBW. Your line is open. Please go ahead.
We now turn to Catherine Mealor with <unk>.
Line is open. Please go ahead.
Donna Townsell: Thanks. Good afternoon.
[Analyst] (KBW): Thanks. Good afternoon.
Thanks, Good afternoon.
John Allison: Hey, Kevin.
John Allison: Hey, Katherine.
Hi.
I wanted to just follow up on the margin.
Donna Townsell: What's your follow-up on the margin? I'm great. How are you doing?
[Analyst] (KBW): What's your follow-up on the margin? I'm great. How are you doing?
I'm, great how are you doing.
John Allison: I'm good.
John Allison: I'm good.
1 of them was in Arkansas, customer, who's buying? Something to Tennessee and picked up the phone and called us and said, hey I see, you're going to Tennessee. And I said we are and they said, well, I just bought something over. I need 4 or 5 million dollars, whatever it was. And so I hooked them up with with Bill and his team and and they're moving on that loan. And, and then yesterday day before yesterday, David Carter a recent president out of junk for calling small world. Somebody even went to school with is 1 of the largest customers for
Good can you hear me.
Donna Townsell: Can you hear me?
[Analyst] (KBW): Can you hear me?
John Allison: When you turn those kind of numbers out, I'm a pretty happy, as I said one time before, pretty happy camper. Thank you.
John Allison: When you turn those kind of numbers out, I'm a pretty happy, as I said one time before, pretty happy camper. Thank you.
When you turn those kind of numbers that I'm pretty happy as I said, but one time for a pretty happy camper.
Right.
[laughter], Okay, I'm glad I'm glad you can hear me. So my question is just circling back to mountain Commerce, and just thinking about when we when we fold that acquisition in on day one.
Donna Townsell: Okay. I'm glad you can hear me. So my question is just circling back to Mountain Commerce. And just thinking about when we fold that acquisition in on day one, they've got a 250 margin. I know you're going to be able to mark that balance sheet and then probably lower their funding costs over time. But kind of curious how we should think about any initial changes that you'll make to their balance sheet, either in wholesale CDs or their borrowing, or if that'll be more of kind of a gradual thing to model in over time.
[Analyst] (KBW): Okay. I'm glad you can hear me. So my question is just circling back to Mountain Commerce. And just thinking about when we fold that acquisition in on day one, they've got a 250 margin. I know you're going to be able to mark that balance sheet and then probably lower their funding costs over time. But kind of curious how we should think about any initial changes that you'll make to their balance sheet, either in wholesale CDs or their borrowing, or if that'll be more of kind of a gradual thing to model in over time.
Mountain Commerce and the mountain Commerce had topped out with them and he said I'd sure like to do a lot more business with with you guys and it's as it turned out, he's a big customer of mountain Commerce and we can help him. We can help him and
With his growth in the future. So 2, good 2, good leads, that could be multi, multi-million dollars.
He's got the margin I know, you're going to be able to mark that balance sheet, and then probably lower their funding cost every time, but kind of curious how we should think about.
Credit there. So, uh, good stuff from us. Good stuff from the store, just from an announcement. So I will be able to they'll be able to do bigger deals and
with our balance sheet behind them.
Any initial changes that youll make to their balance sheet, either in wholesale Cds or their borrowing or if that'll be more of a kind of a gradual thing to model it over time.
Yeah.
Stephen Tipton: Katherine and Stephen, I think from a funding standpoint, I think that's something we'll model over time. Like I said earlier, I mean, we're optimistic that Bill, Kevin, and the team, with the larger balance sheet and the strength of the company, can expand relationships and grow deposits in that market that would enable us to maybe work out of some of the wholesale funding that they have. But I think that'll happen over time. Yeah. I think, like you said, when you mark the balance sheet, our initial indications are little to no impact on where our net interest margin has run here over the last couple of quarters.
Stephen Tipton: Katherine, I'm Stephen, I think from a funding standpoint, I think that's something we'll model over time. Like I said earlier, I mean, we're optimistic that Bill, Kevin, and the team, with the larger balance sheet and the strength of the company, can expand relationships and grow deposits in that market that would enable us to maybe work out of some of the wholesale funding that they have. But I think that'll happen over time. Yeah. I think, like you said, when you mark the balance sheet, our initial indications are little to no impact on where our net interest margin has run here over the last couple of quarters.
Catherine This is Steve and I think from a funding standpoint, I think that's something we'll model over time like I said earlier I mean, we're optimistic that the.
Bill and Kevin and the team.
With a larger balance sheet and the strength of the company can can expand relationships and grow deposits in that market that would you know.
Great, great. Glad to hear that. Um, and and maybe I'm not the same just with m&a. It feels like you're on track to close that still early. Um, you said, early the first half of the Year, we're kind of thinking beginning of second quarter but you let me know if if you if you have a different opinion of that. And, and so, if that's the case, um, how quickly do you think you'd be interested in looking at further m&a, As you move through the year?
Well, I think we're open. Uh, hopefully we close this April May.
Enable us to maybe work out of some of the wholesale.
The funding that they have but I think that'll that'll happen over time.
And and uh, we're certainly looking for opportunities from there.
Thank you when you like you said when you Mark the balance sheet. Our initial indications are our little to no impact on where our net interest margin has run here over the last couple of quarters.
To do another week. We we think we're going to do another 1 this year.
We're open. We're open for the right opportunity.
Is that what you were looking for? A great quarter and great year? Thanks guys, it is yeah. Thank you, thank you.
We've had some good opportunities already in Tennessee with some.
John Allison: We've had some good opportunities already in Tennessee. One of them was an Arkansas customer who's buying something in Tennessee and picked up the phone and called us and said, "Hey, I see you're going to Tennessee." And I said, "We are." And they said, "Well, I just bought something over. I need $4 or 5 million, whatever it was." And so I hooked them up with Bill and his team, and they're moving on that loan. And then yesterday, day before yesterday, David Carter, a regional president out of Jonesboro, Arkansas, said, "Small world." Somebody he went to school with is one of the largest customers for Mountain Commerce. And Mountain Commerce had topped out with them.
John Allison: We've had some good opportunities already in Tennessee. One of them was an Arkansas customer who's buying something in Tennessee and picked up the phone and called us and said, "Hey, I see you're going to Tennessee." And I said, "We are." And they said, "Well, I just bought something over. I need $4 or 5 million, whatever it was." And so I hooked them up with Bill and his team, and they're moving on that loan. And then yesterday, day before yesterday, David Carter, a regional president out of Jonesboro, Arkansas, said, "Small world." Somebody he went to school with is one of the largest customers for Mountain Commerce. And Mountain Commerce had topped out with them.
One of them was in Arkansas customer, who is buying something to Tennessee and picked up the phone and call. It that I see you are going to say.
Great. Now it's time to Brett Robertson with Earth group, your line is open. Please go ahead.
Hey, good afternoon, everyone.
So we are and thanks for a while I just bought some over four $5 million whatever it was and so I hope to work with Bill and his team and they're moving on that loan and then yesterday day before yesterday, David Carter, our regional President of <unk>.
We're calling small world somebody went to school with is one of the largest customer for them.
Um hey Brent wanted to to go on that on the on the m&a topic. Um you know I certainly hear all the stuff that you said Johnny about you know buyers and the past maybe not having done great deals. Um 1 here are things that you know investors complain about is you know hey do you should you own buyer stocks? And I think there's some pessimism that maybe you shouldn't own buyer stocks.
Mountain Commerce, and they about commerce, it topped out with them and he said I'd sure like to do a lot more business with them with you guys.
John Allison: He said, I'd sure like to do a lot more business with you guys. As it turned out, he's a big customer of Mountain Commerce, and we can help him. We can help him with his growth in the future. So two good leads. That could be multimillion-dollar credits there. So good stuff from a start, just from announcement. So they'll be able to do bigger deals with our balance sheet behind them.
He said, I'd sure like to do a lot more business with you guys. As it turned out, he's a big customer of Mountain Commerce, and we can help him. We can help him with his growth in the future. So two good leads. That could be multimillion-dollar credits there. So good stuff from a start, just from announcement. So they'll be able to do bigger deals with our balance sheet behind them.
What does that factor into your your thoughts on m&a? And just what that does to your stock price?
As it turned out he is a big customer mountain Commerce, we can help them, we can help them.
How does it factor in the fact of whether we our stock or don't buy our stock?
With this growth in the future. So Tuesday, Tuesday blades that can be multi multimillion dollar credits there.
Is that what the question was? I don't I don't get the question.
Good stuff.
From a start just from announcement, so we'll be able to that'll be able to do bigger deals.
With our balance sheet behind them.
Donna Townsell: Great. Great. Glad to hear that. And maybe on that theme, just with M&A, it feels like you're on track to close that still early. You said early the first half of the year. We're kind of thinking beginning of second quarter, but let me know if you have a different opinion of that. And so if that's the case, how quickly do you think you'd be interested in looking at further M&A as you move through the year?
[Analyst] (KBW): Great. Great. Glad to hear that. And maybe on that theme, just with M&A, it feels like you're on track to close that still early. You said early the first half of the year. We're kind of thinking beginning of second quarter, but let me know if you have a different opinion of that. And so if that's the case, how quickly do you think you'd be interested in looking at further M&A as you move through the year?
Great great glad to hear that.
Yeah, well just you know there's Market sentiment from investors that maybe you shouldn't own the buyer stocks because they don't perform very well. Um and you guys have been inquisitive. I just just I'm curious if if hearing that from investors, you know, makes you more or less apt to maybe do m&a versus, um, looking to do other stuff organically.
And maybe on that theme just with M&A. It feels like you're on track to close that still early.
No, we we we we, we will continue.
Is that early first half of the year.
Thank you.
Beginning of second quarter, but let me know if.
If you have a different opinion of that and so if that's the case how quickly do you think you'd be interested in looking at further M&A you missed this year.
John Allison: Well, I think we're open. Hopefully, we close this April, May, and we're certainly looking for opportunities from there to do another. We think we could do another one this year. We're open. We're open for the right opportunity. Is that what you were looking for, Kevin?
John Allison: Well, I think we're open. Hopefully, we close this April, May, and we're certainly looking for opportunities from there to do another. We think we could do another one this year. We're open. We're open for the right opportunity. Is that what you were looking for, Kevin?
Well I think we're okay.
Hopefully we close this April.
And.
Our first entree into Tennessee with bail and his team. We'll let them guide us in in Tennessee. And we're certainly open to something that market, but we're not closing the rest of the markets either. I mean, if we found something in Texas, so we found something in the Florida that that fits our bill, we'd certainly move on it and and wouldn't hesitate.
We're certainly looking for opportunities there.
To do another we think we can do another one this year.
And there's not a lot left in Florida to speak of it's quite a bit in Texas to do but
We're open we're open for the right opportunity.
Yeah.
So once you were looking for the same quarter in great. Yeah. Thanks, guys. It is.
Donna Townsell: Have a great quarter and great year. Thanks, guys.
[Analyst] (KBW): Have a great quarter and great year. Thanks, guys.
John Allison: Yep.
John Allison: Yep.
Donna Townsell: It is. Yeah.
Donna Townsell: It is. Yeah.
John Allison: Thank you.
John Allison: Thank you.
Donna Townsell: Thank you.
Donna Townsell: Thank you.
Thank you.
Yeah.
Operator: We now turn to Brett Robertson with Hovde Group. Your line is open. Please go ahead.
Operator: We now turn to Brett Robertson with Hovde Group. Your line is open. Please go ahead.
You May now Sanjay Brett Robinson with Hovde Group. Your line is open. Please go ahead.
Kevin Hester: Hey, good afternoon, everyone.
[Analyst] (Hovde Group): Hey, good afternoon, everyone.
Hey, good afternoon, everyone.
Stephen Tipton: Hey, Brett.
Stephen Tipton: Hey, Brett.
Yeah, Brian wanted to check up on it on the on the M&A topic.
Kevin Hester: Wanted to go on the M&A topic. I certainly hear all the stuff that you said, Johnny, about buyers in the past, maybe not having done great deals. One of the other things that investors complain about is, "Hey, should you own buyer stocks?" I think there's some pessimism that maybe you shouldn't own buyer stocks. How does that factor into your thoughts on M&A and just what that does to your stock price?
[Analyst] (Hovde Group): Wanted to go on the M&A topic. I certainly hear all the stuff that you said, Johnny, about buyers in the past, maybe not having done great deals. One of the other things that investors complain about is, "Hey, should you own buyer stocks?" I think there's some pessimism that maybe you shouldn't own buyer stocks. How does that factor into your thoughts on M&A and just what that does to your stock price?
I hear all the stuff you said.
Johnny about you know buyers in the past, maybe not having done great deals.
One year of things that you know investors complain about is hey, do you could you owned by our stocks and I think theres. Some pessimism, maybe you shouldn't umpires docs, how does that factor into your thoughts on M&A and just what that does to your stock price.
We'll certainly open to him and I, and we'll, and so far as us continue by stock, my that's just 1 of the things we do. When you run a to, if you've heard me say that, when you run a 210 Roi, you can buy back stock and you can increase your dividend. And you can grow tangible, common Equity all the same way. I think we grew 10 times from coming Equity 16%, or something. Last year, almost 2 bucks, a share in the growth in tangible, common equity, and a couple hundred million shares. So that kind of puts it in perspective. If you don't make that kind of money, you can't do that. When you, when you make those kind of returns, it gives you. You can pull as I say, ever Capital handle, that's out there and take care of your shareholders with a reward and and and grow the bank too.
John Allison: How does it factor in the fact of whether we buy a stock or don't buy a stock? Is that what the question was? I don't get the question.
John Allison: How does it factor in the fact of whether we buy a stock or don't buy a stock? Is that what the question was? I don't get the question.
How does that factor in the fact that whether we are stock or don't buy our stock.
What the question was.
Yeah.
Kevin Hester: Yeah. Well, just, there's market sentiment from investors that maybe you shouldn't own the buyer stocks because they don't perform very well. You guys have been inquisitive. I just am curious if hearing that from investors makes you more or less apt to maybe do M&A versus looking to do other stuff organically.
[Analyst] (Hovde Group): Yeah. Well, just, there's market sentiment from investors that maybe you shouldn't own the buyer stocks because they don't perform very well. You guys have been inquisitive. I just am curious if hearing that from investors makes you more or less apt to maybe do M&A versus looking to do other stuff organically.
Yes, well just you know theres market sentiment from investors that maybe you shouldn't down the buyer stock because they don't perform very well and you guys have been acquisitive I just just I'm curious if.
Hearing that from investors you know it makes you more or less apt to maybe do M&A versus.
Okay, I appreciate that caller, Johnny. And then the other thing was, there's, there's been a lot of comments about Florida. You just mentioned, there was still stuff to do possibly in Texas. Where, where is the Texas franchise at this point relative to you, you obviously had to gain in 4q, um, you know, is all all of the noise around all that stuff died down, and you're in a, net growth perspective for Texas from here or, you know, any thoughts on how the Texas thesis performing and what you might expect from that from that, uh, part
I'm looking to do other stuff organically.
No we will continue.
John Allison: No. We'll continue to do M&A. And our first entree into Tennessee with Bill and his team, we'll let them guide us in Tennessee. And we're certainly open to something in that market, but we're not closing the rest of the markets either. I mean, if we found something in Texas or we found something in Florida that fits our bill, we'd certainly move on it and wouldn't hesitate. And there's not a lot left in Florida to speak of. There's quite a bit in Texas to do, but we're certainly open to M&A. And so far as us continuing to buy stock back, that's just one of the things we do. When you run a, if you heard me say this, when you run a 210 ROI, you can buy back stock, and you can increase your dividend, and you can grow tangible common equity all the same way.
John Allison: No. We'll continue to do M&A. And our first entree into Tennessee with Bill and his team, we'll let them guide us in Tennessee. And we're certainly open to something in that market, but we're not closing the rest of the markets either. I mean, if we found something in Texas or we found something in Florida that fits our bill, we'd certainly move on it and wouldn't hesitate. And there's not a lot left in Florida to speak of. There's quite a bit in Texas to do, but we're certainly open to M&A. And so far as us continuing to buy stock back, that's just one of the things we do. When you run a, if you heard me say this, when you run a 210 ROI, you can buy back stock, and you can increase your dividend, and you can grow tangible common equity all the same way.
We will continue to do them and I don't know.
Our first entre into Tennessee, with Bill and his team.
Let them guide us in Tennessee, and we're certainly open to something that market, but we're not closing the rest of the markets are either I mean, if we found something in Texas or we found something in Florida.
It's our bell, we'd certainly move on it.
Wouldn't hesitate.
There's not a lot left in Florida, who speak up quite a bit in Texas to do but.
We're certainly open to Gemini and <unk>.
As far as us continue to buy stock back. So that's just one of the things we do when you run it to if you've heard me say that when you run. The 210 Roy you can buy back stock and you can increase your dividend and you can grow tangible common equity all of the same way I think what your tangible common equity of 16% or something last year almost.
It's performing the day the where the way it was supposed to performed 3 years ago. So we had a little bit early on we had a little bit of good performance and then we kind of fell off and um as you know the trouble we had out there and then now it's back. So it is uh the the Texas operations growing that you end to make lots of changes and lots of cleanups, lots of work to do in that market but we're getting there. Our Dallas Fort Worth area is really cleaning up well or west Texas. There is really cleaning up well, so we're pleased with that. They're bringing good loans and uh, to to the to the table. And we're we're happy with what we see. So it's probably now where we expected it to be 3 years ago. That's probably where it is.
I haven't looked at that. Exactly. But that's my fear.
John Allison: I think we grew tangible common equity 16% or something last year, almost $2 a share in growth in tangible common equity on a couple of hundred million shares. So it kind of puts it in perspective. If you don't make that kind of money, you can't do that. When you make those kind of returns, it gives you, you can pull, as I say, every capital handle that's out there and take care of your shareholders with a reward and grow the bank too.
I think we grew tangible common equity 16% or something last year, almost $2 a share in growth in tangible common equity on a couple of hundred million shares. So it kind of puts it in perspective. If you don't make that kind of money, you can't do that. When you make those kind of returns, it gives you, you can pull, as I say, every capital handle that's out there and take care of your shareholders with a reward and grow the bank too.
Two bucks a share and growth in tangible common equity in a couple of hundred million shares. So it kind of puts it in perspective, if you don't make that kind of money you can't do that when you. When you make those kind of returns. It gives you you can pull as I say ever capital hand on whats out there and take care of your shareholders little reward.
I, I look back at the p&l at, at the end of the quarter, and looked at where our Dallas Fort Worth, and our West Texas operations were performing, and it, it's they're, they're they're getting, they're getting the numbers now. They're, they're part of our system and they're operating like the rest of us operate at its back. Jen. And the way it should be
And grow the bank too.
Okay, good to hear and then just just lastly on that repurchase comment. Um, are you are you implying that maybe the pace of the buyback continues at the levels in 42, or any thoughts on how aggressive you might be with using the repurchase plan.
Kevin Hester: Okay. I appreciate that, caller, Johnny. The other thing was there's been a lot of comments about Florida. You just mentioned there was still stuff to do possibly in Texas. Where is the Texas franchise at this point relative to you obviously had the gain in Q4. Has all of the noise around all that stuff died down? You're in a net growth perspective for Texas from here? Any thoughts on how the Texas piece is performing and what you might expect from that part of the geography?
[Analyst] (Hovde Group): Okay. I appreciate that, caller, Johnny. The other thing was there's been a lot of comments about Florida. You just mentioned there was still stuff to do possibly in Texas. Where is the Texas franchise at this point relative to you obviously had the gain in Q4. Has all of the noise around all that stuff died down? You're in a net growth perspective for Texas from here? Any thoughts on how the Texas piece is performing and what you might expect from that part of the geography?
Okay I appreciate that color, Johnny and then yeah.
uh, probably, uh
Other thing was theres been a lot of comments about Florida, you just mentioned and there was little softer they possibly in Texas.
that's something speeding and I talked about,
Whereas the Texas franchise at this point relative to you obviously have the gain in <unk>.
All the the quarter and when we see an opportunity and when we're having a great quarter, then we we kind of move on it.
As all of the noise around all of that stuff down.
Down and you're in a net growth perspective, where Texas from here.
Any thoughts on how the Texas piece is performing and what you might expect from that from that partner.
and if if if things slow down a little bit for us, we, we just kind of it's kind of a weekly conversation between he and I
John Allison: It is performing the way it was supposed to have performed three years ago. So we had a little bit early on, we had a little bit of good performance, and then we kind of fell off. And, as you know, the trouble we had out there. And then now it's back. So the Texas operation is growing. We had to make lots of changes and lots of cleanups, lots of work to do in that market, but we're getting there. Our Dallas-Fort Worth area is really cleaning up well, or West Texas area is really cleaning up well. So we're pleased with that. They're bringing good loans to the table, and we're happy with what we see. So it's probably now where we expected it to be three years ago. That's probably where it is. I haven't looked at that exactly, but that's my feel.
John Allison: It is performing the way it was supposed to have performed three years ago. So we had a little bit early on, we had a little bit of good performance, and then we kind of fell off. And, as you know, the trouble we had out there. And then now it's back. So the Texas operation is growing. We had to make lots of changes and lots of cleanups, lots of work to do in that market, but we're getting there. Our Dallas-Fort Worth area is really cleaning up well, or West Texas area is really cleaning up well. So we're pleased with that. They're bringing good loans to the table, and we're happy with what we see. So it's probably now where we expected it to be three years ago. That's probably where it is. I haven't looked at that exactly, but that's my feel.
Yes.
So the answer is probably going to continue on, we like to, we like to buy our stock.
It's performing the day's work the way it was supposed to have performed three years ago. So we have a little bit early on when we had a little bit of good performance and then we kind of fell off and.
Uh, I'd like to buy back.
Uh, Mount Commerce is 6 Plus million shares that would probably be my goal to buy all of that back over the next period of time.
Okay.
No problem, we had out there and and now it's back so it is.
Um, great. Um, congrats on the quarter. Thanks guys.
Texas operations growing.
Hey thanks. Appreciate your support.
To make lots of changes and lots of cleanups lots of work to do in that market, but we're getting there our Dallas Fort worth area is really cleaning up while our west Texas area is really cleaning up well. So we're pleased with that Bryan good loans.
We now send to Michael rose with Raymond James. Your line is open. Please go ahead.
To the to the table and we're happy with what we say so it's probably now where we expected it to be three years ago.
Probably worthy.
I haven't looked at exactly but that's my view.
John Allison: I looked back at the P&L at the end of the quarter and looked at where our Dallas-Fort Worth and our West Texas operations were performing. They're getting the numbers now. They're part of our system, and they're operating like the rest of us operate. It's back again in the way it should be.
I looked back at the P&L at the end of the quarter and looked at where our Dallas-Fort Worth and our West Texas operations were performing. They're getting the numbers now. They're part of our system, and they're operating like the rest of us operate. It's back again in the way it should be.
I look back at the P&L at the end of the quarter and looked at where our Dallas Fort worth on our.
West, Texas operations were performing and it's.
They're there they're getting they're getting the numbers now they're part of our system and their operating like the rest of us operate at its back Gen and the way it should be.
Kevin Hester: Okay. Good to hear. And then just lastly on that repurchase comment, are you implying that maybe the pace of the buyback continues at the levels in Q4? Or any thoughts on how aggressive you might be with using the repurchase plan?
[Analyst] (Hovde Group): Okay. Good to hear. And then just lastly on that repurchase comment, are you implying that maybe the pace of the buyback continues at the levels in Q4? Or any thoughts on how aggressive you might be with using the repurchase plan?
Okay. Good to hear and then just just lastly on that repurchase comment.
Is it, you know, just how would you describe the the opportunity set as we think about kind of, the intermediate, to longer term for what home could be in uh, in the state of Tennessee? Thanks.
Are you are you applying that maybe the pace of the buyback continues at the levels and for Q or any thoughts on how aggressive you might be with using the repurchase plan.
Probably.
John Allison: Probably. That's something Stephen and I talk about all during the quarter. When we see an opportunity and when we're having a great quarter, then we kind of move on it. If things slow down a little bit for us, we just kind of, it's kind of a weekly conversation between he and I. So the answer is probably continue. We like to buy our stock. I'd like to buy back. Mountain Commerce is six-plus million shares. It would probably be my goal to buy all of that back over the next period of time.
John Allison: Probably. That's something Stephen and I talk about all during the quarter. When we see an opportunity and when we're having a great quarter, then we kind of move on it. If things slow down a little bit for us, we just kind of, it's kind of a weekly conversation between he and I. So the answer is probably continue. We like to buy our stock. I'd like to buy back. Mountain Commerce is six-plus million shares. It would probably be my goal to buy all of that back over the next period of time.
Sure.
That's something Steven and I talk about.
Uh, I think we'll just continue to grow in that market. Uh, you know, that's not a market that we've never been in that market before we've been in Texas before we've never been in Tennessee before. So we found a guy that's a founder and who who built his own bank and is an owner operator.
Alder in the corner and when we see an opportunity and we're having a great quarter than we we kind of move on it.
And if it.
Similar to our operation here and we like that, we like what we see, he stumbled a little bit on this security and low rate loans but we we'll mark that day 1.
If things slow down a little bit for us, we just kind of it's kind of a weekly conversation between Hannah.
So the answer is probably right.
Sorry marked and we'll we'll let that he'll come out Gang Busters. Pretty quick, we get the expenses out of it over the next 12 months outside of that we'll let him lead us.
We like to.
To buy our stock.
I'd like to buy back.
About commerce is six plus million shares.
Probably be my go to buy all of that back over the next period of time.
Kevin Hester: Okay. Great. Turn around to end the quarter. Thanks, guys.
Okay. Great. Turn around to end the quarter. Thanks, guys.
Okay.
Great.
Congrats on the quarter thanks, guys.
John Allison: Hey, thanks. Appreciate the support.
John Allison: Hey, thanks. Appreciate the support.
I bought some appreciate the sport.
Operator: We now turn to Michael Rose with Raymond James. Your line is open. Please go ahead.
Operator: We now turn to Michael Rose with Raymond James. Your line is open. Please go ahead.
We now sensitive Michael Rose with Raymond James Your line is open. Please go ahead.
Uh into that market. I mean we know people that operate in that market through all the bank conferences. As you know, Michael we we meet all those people, they know us, we know them, so they're who knows what the opportunities are in that market. But we're certainly hoping to, to m&a in the in the Tennessee Market. If we see something there or Bill find something that he wants to do, we'll, we'll, we'll be on it. The next day we won't hesitate. We, we, we have the capital, you know, we have the ability to Mark, somebody's balance sheet and fix them overnight.
Christopher Poulton: Hey, good afternoon, guys. Thanks for taking my questions. Maybe just tangential to Brett's question. Just as we think about Tennessee and the opportunities that there, clearly you've had a big deal in that market. I think on a pro forma basis, you guys are like 20th in deposit market share in the state from day one once this deal closes. What are the aspirations there? Clearly, as I look at Florida as a case study for you guys, I mean, you guys have made tremendous strides over the years, done a lot of deals. Is the goal to have a similar trajectory? Is it a more targeted strategy? Is it just how would you describe the opportunities there as we think about kind of the intermediate to longer term for what home could be in the state of Tennessee? Thanks.
Michael Rose: Hey, good afternoon, guys. Thanks for taking my questions. Maybe just tangential to Brett's question. Just as we think about Tennessee and the opportunities that there, clearly you've had a big deal in that market. I think on a pro forma basis, you guys are like 20th in deposit market share in the state from day one once this deal closes. What are the aspirations there? Clearly, as I look at Florida as a case study for you guys, I mean, you guys have made tremendous strides over the years, done a lot of deals. Is the goal to have a similar trajectory? Is it a more targeted strategy? Is it just how would you describe the opportunities there as we think about kind of the intermediate to longer term for what home could be in the state of Tennessee? Thanks.
Hey, good afternoon, guys. Thanks for taking my questions, maybe just tangential to Brents question, just as we think about Tennessee and the opportunity set there clearly you've had a big deal.
And and and we'll, we'll use that Capital. Everybody's always said, what are you going to do with that capital? And I said, well, we'll use it someday. Well, this is this is something that give us an opportunity to use some of it.
In that market I think on a pro forma basis, you guys are like 20th in deposit market share in the state.
From from day, one once this deal closes.
What are the aspirations are clearly as I look at Florida as a case study for you guys. I mean, you guys have made tremendous strides over the years done a lot of deals is the goal to have a similar trajectory is it a more targeted strategy is it.
I don't know if that answered your question, but that's kind of how I'm looking at. Stephen, you got any different observation on that? No, I agree. 100%, but we like, what we see in the market so far. And I think bill. And his team can provide some opportunities. Uh, we've already talked to some names here and there and we'll see what happens over the course of this year.
How would you describe the opportunity set as we think about kind of the intermediate to longer term for what home can be and in the state of Tennessee.
I think we'll just continue to grow in that market.
John Allison: I think we'll just continue to grow in that market. That's not a market that we've never been in before. We've been in Texas before. We've never been in Tennessee before. So we found a guy that's a founder and who built his own bank and is an owner-operator similar to our operation here. We like that. We like what we see. He stumbled a little bit on his securities and low-rate loans, but we'll mark that day one. It's already marked, and we'll let that—he'll come out gangbusters pretty quick. We get the expenses out of it over the next 12 months. Outside of that, we'll let him lead us into that market. I mean, we know people that operate in that market through all the bank conferences. As you know, Michael, we meet all those people. They know us, and we know them.
John Allison: I think we'll just continue to grow in that market. That's not a market that we've never been in before. We've been in Texas before. We've never been in Tennessee before. So we found a guy that's a founder and who built his own bank and is an owner-operator similar to our operation here. We like that. We like what we see. He stumbled a little bit on his securities and low-rate loans, but we'll mark that day one. It's already marked, and we'll let that—he'll come out gangbusters pretty quick. We get the expenses out of it over the next 12 months. Outside of that, we'll let him lead us into that market. I mean, we know people that operate in that market through all the bank conferences. As you know, Michael, we meet all those people. They know us, and we know them.
That's not a market that.
We've never been in that market before we'd been in Texas before and we've never been in Tennessee before.
So we found the gav its a founder who built its own bike and as an owner operator.
Similar to our operation here and we like that we like what we see you stumbled a little bit on what it is.
Securities and low rate loans, but we will mark that they want.
Already marked it we'll let that youll come out gangbusters, So pretty quick we get the expenses out of it over the next 12 months outside of that let him lead us.
Now for sure it's a, it's a great market and uh, and obviously a good deal. So I appreciate it. Maybe just 1 follow up for uh maybe maybe for Chris poulton. Um, you know, I think it's a a talk to, you know, Banks over the past couple months, you know, 1 of the big, uh, topics has been, you know, just paid out and in commercial real estate and construction, just a little, maybe a little bit of a hangover effect from, you know, all the activity that we saw coming out of the, uh, out Co, um, are you seeing that at all? And, and are there opportunities to maybe capitalize as as maybe some of those paid ones? Play out to maybe take some market share, just just try to get a sense for for the business. You know, obviously 1 of your competitors is just talking about pretty big pay Downs this year. So just wanted to get a sense for you. Have a pay down uh level that we should be thinking about is it is it greater than the past couple of years and then maybe what's the opportunity? So as we go forward thanks
And of that market.
Sure, sure. Um, I think pay Downs are elevated. I mean, I I said in my, you know, my comments, we had we had higher than average pay Downs, this past year, I think that will continue. Um, there are
Now people that operate in that market through the whole of bankruptcies as you know Michael we made all those people they know us and we know them. So.
Uh, lots of opportunities for customers to get financing. Um,
John Allison: So who knows what the opportunities are in that market? But we're certainly open to M&A in the Tennessee market. If we see something there or Bill finds something that he wants to do, we'll be on it the next day. We won't hesitate. We have the capital. We have the ability to mark somebody's balance sheet and fix them overnight, and we'll use that capital. Everybody's always said, "What are you going to do with that capital?" And I said, "Well, we'll use it someday." Well, this is someday giving us an opportunity to use some of it. I don't know if that answered your question, but that's kind of how I'm looking at it. Steven, you got any different observation on that?
So who knows what the opportunities are in that market? But we're certainly open to M&A in the Tennessee market. If we see something there or Bill finds something that he wants to do, we'll be on it the next day. We won't hesitate. We have the capital. We have the ability to mark somebody's balance sheet and fix them overnight, and we'll use that capital. Everybody's always said, "What are you going to do with that capital?" And I said, "Well, we'll use it someday." Well, this is someday giving us an opportunity to use some of it. I don't know if that answered your question, but that's kind of how I'm looking at it. Steven, you got any different observation on that?
Who knows what the opportunities are in that market, but we're certainly open to M&A.
Tennessee market, if we see something there or bail found something that he wants to do well.
We will be only for the next day, we won't hesitate.
We have the capital.
You have the ability to mark somebody's balance sheet effects them overnight.
And we will use that capital everybody's always said, what do you want to have that capital, that's where we'll use it someday well. This is this is something that you can give us an opportunity to use some of it.
I don't know if that answered your question, but that's kind of how I'm looking at Steve and you've got a different observation on that no I agree 100%, but we like what we see in the market so far and like Bill and his team can provide some opportunity we've already talked to some names here and there and let's see what happens over the course of this year.
Christopher Poulton: No, I agree 100%. We like what we see in the market so far. I think Bill and his team can provide some opportunities. We've already talked to some names here and there, and we'll see what happens over the course of this year.
Stephen Tipton: No, I agree 100%. We like what we see in the market so far. I think Bill and his team can provide some opportunities. We've already talked to some names here and there, and we'll see what happens over the course of this year.
Kevin Hester: No, for sure. It's a great market and obviously a good deal. So appreciate it. Maybe just one follow-up, maybe for Chris Poulton. I think as I've talked to banks over the past couple of months, one of the big topics has been just paydowns in commercial real estate and construction, just maybe a little bit of a hangover effect from all the activity that we saw come out of COVID. Are you seeing that at all? And are there opportunities to maybe capitalize as maybe some of those paydowns play out to maybe take some market share? Just trying to get a sense for the business. Obviously, one of your competitors is talking about pretty big paydowns this year. So just wanted to get a sense for the paydown level that we should be thinking about. Is it greater than the past couple of years?
Michael Rose: No, for sure. It's a great market and obviously a good deal. So appreciate it. Maybe just one follow-up, maybe for Chris Poulton. I think as I've talked to banks over the past couple of months, one of the big topics has been just paydowns in commercial real estate and construction, just maybe a little bit of a hangover effect from all the activity that we saw come out of COVID. Are you seeing that at all? And are there opportunities to maybe capitalize as maybe some of those paydowns play out to maybe take some market share? Just trying to get a sense for the business. Obviously, one of your competitors is talking about pretty big paydowns this year. So just wanted to get a sense for the paydown level that we should be thinking about. Is it greater than the past couple of years?
Now for sure it's a it's a great market.
Obviously, a good deal so.
uh I would say what we've seen more than anything is non-bank entrance into uh commercial real estate. There's sort of refugees from the corporate lending side uh pricing is collapsing corporately. And so some of those funds and private lenders have turned their sights to uh, to commercial real estate. Because from the outside it looks pretty easy, I think, um, and higher yield. So we are seeing that I think we'll continue this to see that. Um, I think this is really where the test for us is we've been doing this for, you know, going on 10-15 years. And we've got a, a good stable of of customers who understand who we are and how we can help them make money. And so I think that's the other side of that which is, um, you know, I think those people will continue to put money out and uh and and we continue to be, you know, an interesting, interesting choice for them, if if, if our business was tied to doing a significant amount of
Appreciate it maybe just one follow up for maybe for Chris Bolton.
I think I've talked to banks over the past couple of months you know one of the big <unk>.
Volume every year and then we need to take share or or take a certain amount of share, Etc. I'd be concerned today because I do think it's getting harder.
Topics has been pay downs in commercial real estate and construction, just maybe a little bit of a hangover effects from all the activity that we saw come out of the Covid.
Covid are you seeing that at all and are there opportunities to maybe capitalize as maybe some of those pay downs play out to maybe take some market share is just trying to get a sense for the business.
One of your competitors is talking about pretty big pay downs. This year. So just wanted to get a sense for the paydown.
Um, our business has always been tied to finding those small opportunities out there that are a little off the Run Etc that we that we can be helpful to people on those continue to exist. And I think those will probably continue to probably strengthened. Um, not sure if that answers your question, but I think we are seeing both those things so you can pay Downs on that. Then I think we'll also see uh, some pressure in the in the main thing if I was trying to do 5 10 billion dollars a year right now, I'd be concerned.
Level that we should be thinking about is it greater than the past couple of years and then maybe what's the opportunity set as we go forward.
No, very helpful. Chris. Um, thanks everyone for uh, taking my questions.
Kevin Hester: And then maybe what's the opportunity set as we go forward? Thanks. Sure. Sure. I think paydowns are elevated. I mean, as I said in my comments, we had higher than average paydowns this past year. I think that will continue. There are lots of opportunities for customers to get financing. I would say what we've seen more than anything is non-bank entrance into commercial real estate. They're sort of refugees from the corporate lending side. Pricing has collapsed in corporate lending. And so some of those funds and private lenders have turned their sights to commercial real estate because from the outside, it looks pretty easy, I think, and higher yield. So we are seeing that. I think we'll continue to see that. I think this is really where the test for us is.
And then maybe what's the opportunity set as we go forward? Thanks.
Thanks, thank you.
Kevin Hester: Sure. Sure. I think paydowns are elevated. I mean, as I said in my comments, we had higher than average paydowns this past year. I think that will continue. There are lots of opportunities for customers to get financing. I would say what we've seen more than anything is non-bank entrance into commercial real estate. They're sort of refugees from the corporate lending side. Pricing has collapsed in corporate lending. And so some of those funds and private lenders have turned their sights to commercial real estate because from the outside, it looks pretty easy, I think, and higher yield. So we are seeing that. I think we'll continue to see that. I think this is really where the test for us is.
Sure sure.
I think paydowns are elevated I mean, as I said in my in my comments, we had we had higher than average pay down this past year I think that will continue.
We now send you Brian Martin with Johnny, your line is open. Please go ahead.
There are.
Lots of opportunities for customers to get financing.
I would say what we've seen more than anything is non bank entrants into.
Commercial real estate, they're sort of refugees from the corporate lending side.
Pricing has collapsed in corporate lending and so some of those funds and private lenders have turned their sites too.
The questions and I just had a couple follow-ups to things already answered or things already asked on the call so just maybe Stephen just on the or maybe just back to Chris for a minute, Chris your thought on kind of just giving the puts and takes on in the in the year 26 just kind of how you're thinking about net growth for for the year. I guess. Is it kind of a mid single digit type of growth, is how you'd be thinking about it with the, you know, the origination activity versus kind of the payoffs you're anticipating.
Our two commercial real estate because from the outside it looks pretty easy I think and higher yield. So we are seeing that I think will continue to see that I think this is really where the test for US is we've been doing this for you now going on 10 15 years.
Kevin Hester: We've been doing this for going on 10, 15 years, and we've got a good stable of customers who understand who we are and how we can help them make money. And so I think that's the other side of that, which is, I think, those people will continue to put money out, and we continue to be an interesting choice for them. If our business was tied to doing a significant amount of volume every year, as in we need to take share or take a certain amount of share, etc., I'd be concerned today because I do think it's getting harder. Our business has always been tied to finding those small opportunities out there that are a little off the run, etc., that we can be helpful to people on. Those continue to exist, and I think those will probably continue to probably strengthen.
We've been doing this for going on 10, 15 years, and we've got a good stable of customers who understand who we are and how we can help them make money. And so I think that's the other side of that, which is, I think, those people will continue to put money out, and we continue to be an interesting choice for them. If our business was tied to doing a significant amount of volume every year, as in we need to take share or take a certain amount of share, etc., I'd be concerned today because I do think it's getting harder. Our business has always been tied to finding those small opportunities out there that are a little off the run, etc., that we can be helpful to people on. Those continue to exist, and I think those will probably continue to probably strengthen.
And we've got a good stable of customers, who understand who we are and how we can help them make money and so I think that's the other side of that which is.
I think those people will continue to put money out and and we continue to be.
Interesting interesting choice for them, if if if our business was tied to doing a significant amount of volume every year and then we need to take share or take a certain amount of share et cetera, I'd be concerned today, because I do think it's getting harder.
That's what I'm currently estimating, right? So, it's assuming the payoffs that we think. And the funding that we think and where we generally come out on on lending, I would I'd be happy with that. Um, okay, you know, and then you have to throw into it, you know, would you get a payoff? You weren't expecting or things like that, you might. But again, I think over a long enough period of time whether that's quarter to quarter or month-to-month or, you know, over an 18-month period of time, Etc, I can't tell you within the calendar year, what that looks like. But I would expect, we, you know, we'll continue to grow. I believe that to be true. We usually find those opportunities 1 of the things we talk about here is, you know, the universe expands and we grow. I think that'll still continue to be true, and that's what we're we're projecting.
Our business has always been tied to finding those small opportunities out there that are a little off the Iran et cetera that we that we can be helpful that people want those continue to exist and I think those will probably continue to probably strengthen.
Gotcha. Okay, thanks for that and then maybe just 1 or 2 for Stephen, Stephen just down on the excuse me, on the margin and expense. I think expense expenses you were talking about about 150 115 million a quarter. If, if you use your 114 number, that's kind of the the Standalone run rate in expenses and then
Kevin Hester: Not sure if that answers the question, but I think we are seeing both those things. If we can pay downs on that, then I think we'll also see some pressure in the main thing. If I was trying to do $5 to 10 billion a year right now, I'd be concerned.
Not sure if that answers the question, but I think we are seeing both those things. If we can pay downs on that, then I think we'll also see some pressure in the main thing. If I was trying to do $5 to 10 billion a year right now, I'd be concerned.
I'm not sure if that answers your question, but I think we are seeing both of those things that you can pay downs on that then I think we'll also see some.
Some pressure in the main thing if I was trying to do $5 billion to $10 billion a year right now I'd be concerned.
This factor in the acquisition is that fair? And then uh this second 1 on the margin, just the the biggest pressure point in the margin today. If you do see some potential compression you know what you're anticipate, that could come from.
Yeah.
Christopher Poulton: No, very helpful, Chris. Thanks, everyone, for taking my questions.
Michael Rose: No, very helpful, Chris. Thanks, everyone, for taking my questions.
That's very helpful. Chris Thanks, everyone for taking my questions.
Kevin Hester: Thanks.
Kevin Hester: Thanks.
John Allison: Thank you.
John Allison: Thank you.
Thank you.
Operator: We now turn to Brian Martin with Johnny. Your line is open. Please go ahead.
Operator: We now turn to Brian Martin with Johnny. Your line is open. Please go ahead.
We now turn to Brian Martin with Janney. Your line is open. Please go ahead.
Yeah, that's I mean, that's fair on the expenses. That's what we're we're showing from a budget standpoint. Um, you know, we'll certainly strive to to do better there and we're talking with our presidents every day on on where we can do, um,
Stephen Scouten: Hey, good afternoon, guys. Thanks for taking the questions. I just had a couple of follow-ups to things already answered or things already asked on the call. So just maybe, Stephen, just on the or maybe just back to Chris for a minute. Chris, your thought on kind of just given the puts and takes in the year '26, just kind of how you're thinking about net growth for the year, I guess, is it kind of a mid-single-digit type of growth is how you'd be thinking about it with the origination activity versus kind of the payoffs you're anticipating?
[Analyst]: Hey, good afternoon, guys. Thanks for taking the questions. I just had a couple of follow-ups to things already answered or things already asked on the call. So just maybe, Stephen, just on the or maybe just back to Chris for a minute. Chris, your thought on kind of just given the puts and takes in the year '26, just kind of how you're thinking about net growth for the year, I guess, is it kind of a mid-single-digit type of growth is how you'd be thinking about it with the origination activity versus kind of the payoffs you're anticipating?
Hey, good afternoon, guys. Thanks for taking the questions and I just had a couple of follow ups two things already answered things already asked on the call. So just maybe Stephen just on the maybe just back to credit for a minute. Chris you. Your thought on kind of just given the puts and takes are and in the year 26, just kind of how youre thinking about net growth or.
On the margin.
you know, our folks have done a fantastic job this year, navigating the the the rate decreases and and being able to
For the year I guess is it kind of a mid single digit type of growth is how you'd be thinking about it with the <unk>.
Asian activity versus kind of the payoffs you're anticipating.
Kevin Hester: That's what I'm currently estimating, right? So assuming the payoffs that we think and the fundings that we think and where we generally come out on lending, I'd be happy with that. And then you have to throw into it, would you get a payoff you weren't expecting or things like that? You might. But again, I think over a long enough period of time, whether that's quarter to quarter, month to month, or over an 18-month period of time, etc., I can't tell you within the calendar year what that looks like. But I would expect we'll continue to grow. I'd leave that to be true. We usually find those opportunities. One of the things we talk about here is the universe expands and we grow. I think that'll still continue to be true, and that's what we're projecting.
Christopher Poulton: That's what I'm currently estimating, right? So assuming the payoffs that we think and the fundings that we think and where we generally come out on lending, I'd be happy with that. And then you have to throw into it, would you get a payoff you weren't expecting or things like that? You might. But again, I think over a long enough period of time, whether that's quarter to quarter, month to month, or over an 18-month period of time, etc., I can't tell you within the calendar year what that looks like. But I would expect we'll continue to grow. I'd leave that to be true. We usually find those opportunities. One of the things we talk about here is the universe expands and we grow. I think that'll still continue to be true, and that's what we're projecting.
That's what I'm currently estimating right. So assuming the payoffs that we think in the fundings that we think and where we generally come out on on lending I would I'd be happy with that.
you know, certainly hold on to customers and grow relationships while getting, um, rates down, you know, it feels a little bit today that, you know, if that outside pressure from a from the loan side is is kind of the wild card and you heard Johnny say earlier about a customer that was looking for, you know, 150 basis points, break decrease, you know, Kevin's comments about
And then you have to throw into it.
Would you get a pay up you weren't expecting or things like that you might but again I think over a long enough period of time, whether that's quarter to quarter or month to month or you know over an 18 month period of time et cetera, I can't tell you within the calendar year, what that looks like but I would expect we will continue to grow I believe that to be true, we usually find those opportunities one of the things we talked about here as you know.
Some stuff we're seeing from from competition. So, you know whether that stands to, um, you know, to tighten things up a little bit, we'll see. But I mean, I still think we we get our fair share and protect our franchise and what we have and try to keep it in this, you know, for 4 and a half percent range would be pleased with
The universe expands and we grow I think that will still continue to be true and that's what we're projecting.
Gotcha. Okay, that's helpful. And maybe just 1 for Johnny on on the you talked a bit about the m&a just kind of the pipeline today and on m&a, you know, and I guess any commentary just on, you know, smaller versus larger deals. Um how you're thinking about, you know, the next, you know, 18 months or so where you'd be looking more?
Stephen Scouten: Gotcha. Okay. Thanks for that. And then maybe just one or two for Stephen. Stephen, just on the, excuse me, on the margin and expenses. I think expenses you were talking about $115 million a quarter. If you use your $114 number, that's kind of the standalone run rate and expenses. And then just factor in the acquisition. Is that fair? And then the second one on the margin, just the biggest pressure point in the margin today. If you do see some potential compression, where you anticipate that could come from?
[Analyst]: Gotcha. Okay. Thanks for that. And then maybe just one or two for Stephen. Stephen, just on the, excuse me, on the margin and expenses. I think expenses you were talking about $115 million a quarter. If you use your $114 number, that's kind of the standalone run rate and expenses. And then just factor in the acquisition. Is that fair? And then the second one on the margin, just the biggest pressure point in the margin today. If you do see some potential compression, where you anticipate that could come from?
Gotcha, Okay. Thanks for that and then maybe just one or two for Stephen Stephen just.
Excuse me on the margin and expenses.
Expenses you were talking about.
About 150, <unk> hundred 50.
$15 million a quarter.
Well, you know some of the geography, you know, we've got an up in Texas right now that we could get some, some savings there. We certainly have enough in Florida to get some sizes, not particularly in Tennessee yet but
If you use your 114 number that's kind of the Standalone run rate on expenses and then just factor in the acquisition is that fair and then just.
Second one on the margin just the biggest pressure point on the margin today, if you do see some potential compression.
Anticipate that could come from.
John Allison: Yeah. I mean, that's fair on the expenses. That's what we're showing from a budget standpoint. We'll certainly strive to do better there. We're talking with our presidents every day on where we can do. On the margin, our folks have done a fantastic job this year navigating the rate decreases and being able to certainly hold on to customers and grow relationships while getting rates down. It feels a little bit today that outside pressure from the loan side is kind of the wild card. I mean, you heard Johnny say earlier about a customer that was looking for a 150 basis point rate decrease, Kevin's comments about some stuff we're seeing from competition. So whether that stands to tighten things up a little bit, we'll see.
Stephen Tipton: Yeah. I mean, that's fair on the expenses. That's what we're showing from a budget standpoint. We'll certainly strive to do better there. We're talking with our presidents every day on where we can do. On the margin, our folks have done a fantastic job this year navigating the rate decreases and being able to certainly hold on to customers and grow relationships while getting rates down. It feels a little bit today that outside pressure from the loan side is kind of the wild card. I mean, you heard Johnny say earlier about a customer that was looking for a 150 basis point rate decrease, Kevin's comments about some stuff we're seeing from competition. So whether that stands to tighten things up a little bit, we'll see.
Yeah. That's I mean, that's fair on expenses, that's what where we're showing from a budget standpoint.
We will certainly strive to do better there and we're talking with her.
President's everyday on where we can do.
Yeah.
On the margin yes.
Our folks have done a fantastic job this year navigating to the rate decreases and being able to you know.
1 of those markets of Florida deal would probably be make us. I mean that would probably make more sense for us right now. However unless unless Bill brings the Tennessee deal from some some opportunity, he thinks would be good for us. So I'm open. I'm just open. I I think there's opportunities, and matter of fact, I know there's opportunities and all 3 states right now. So we'll just have to, to see which 1 makes the most sense. We're not going to dilute our shareholders. If you heard, we've never done that and we're not going to do that. Well, we may have to deliver them a little bit early on and happy for a couple of years, but we that wasn't an intentional dilution. We, we that happened to us, but
Certainly hold onto customers and grow relationships, we're getting rates down yeah, it feels a little bit today that outside pressure.
Since then, you know, we never did it before and we won't do it again. So, uh,
From the loan side is kind of the wildcard I mean, you heard Johnny say earlier about.
A customer that was looking for 150 basis point break decrease kevins comments about.
And stuff, we're seeing from the competition, so whether that stance to.
we've found the right trade to do that. As long as our currency, we continue to perform the way we are, and our currency holds up the way it is. It gives us the ability to do those transactions. So, I guess my word to those that that that that are running 1 3 is get themselves to a 2% before they go out and do something. It just makes all the sense in the world.
Okay.
You have to tighten things up a little bit, we'll see but I mean, I still think we will get our fair share and protect our franchise and what we have and try to keep it in this.
John Allison: But I mean, I still think we get our fair share, protect our franchise and what we have, and try to keep it in this 4.5% range would be pleased with.
But I mean, I still think we get our fair share, protect our franchise and what we have, and try to keep it in this 4.5% range would be pleased with.
Yeah, you're welcome. And uh maybe just the last the last 1 for me was just, um,
I don't know, maybe for Brian Davis, just
445% range would be pleased with.
Stephen Scouten: Gotcha. Okay. That's helpful. And maybe just one for Johnny on the—you talked a bit about the M&A, just kind of the pipeline today on M&A. And I guess any commentary just on smaller versus larger deals, how you're thinking about the next 18 months or so, where you'd be looking more?
[Analyst]: Gotcha. Okay. That's helpful. And maybe just one for Johnny on the—you talked a bit about the M&A, just kind of the pipeline today on M&A. And I guess any commentary just on smaller versus larger deals, how you're thinking about the next 18 months or so, where you'd be looking more?
Got you Okay. That's helpful and maybe just one for Johnny on on the you talked a bit about the M&A just kind of a pipeline today in an M&A, Ed and I guess any commentary just on smaller versus larger deals.
Are you thinking about you know.
I mean, it's, it's fee income. Kind of a core number around 45, uh, 40. Yeah. Call 45 million is that kind of a clean type of quarter as you look at, you know, some of the noise that was in there, this quarter for on the, on the fee income side.
The next 18 months or so where you'd be looking more.
Yeah.
John Allison: Well, in terms of the geography, we've got enough in Texas right now that we could get some savings there. We certainly have enough in Florida to get some savings. Not particularly in Tennessee yet, but one of those markets, a Florida deal would probably make us—I mean, that would probably make more sense for us right now. However, unless Bill brings a Tennessee deal from some opportunity he thinks would be good for us. So I'm open. I'm just open. I think there's opportunities. And, matter of fact, I know there's opportunities in all three states right now. So we'll just have to see which one makes the most sense. We're not going to dilute our shareholders, as you heard. We've never done that, and we're not going to do that.
John Allison: Well, in terms of the geography, we've got enough in Texas right now that we could get some savings there. We certainly have enough in Florida to get some savings. Not particularly in Tennessee yet, but one of those markets, a Florida deal would probably make us—I mean, that would probably make more sense for us right now. However, unless Bill brings a Tennessee deal from some opportunity he thinks would be good for us. So I'm open. I'm just open. I think there's opportunities. And, matter of fact, I know there's opportunities in all three states right now. So we'll just have to see which one makes the most sense. We're not going to dilute our shareholders, as you heard. We've never done that, and we're not going to do that.
Well you know what.
Yeah. The 4.9 million was really, the only noisy thing that we had in uh, on income. So
It depends on the geography, we've got enough in Texas right now that we could get some savings there. We certainly have enough in Florida to give some sizes, particularly in Tennessee, yet but.
One of those markets, Florida deal would probably be make us I mean that would probably make more sense for us right. Now however, unless unless bill brings a tennessee deal from some some opportunity he thinks would be good for us. So I'm, hoping I'm just opened I think there's opportunities in a matter of fact I know there.
That's a good level, okay, just want to make sure that. And then the last 1 was, for just for Kevin. Maybe Kevin, you went through, the, the commentary about non-performing. Can you just give a little thought or maybe? Just, um, maybe I missed what you said in terms of, you know what, the puts and takes were on credit, like, what, what could be resolved, you know, in the next quarter or 2 or kind of, what's uh, what's the status of that those those those couple credits?
so the, the DFW apartment credit, um,
There's opportunities in all three states right now so.
To see which one makes the most sense, we're not going to dilute our shareholders. As you heard we've never done that and we're not going to do that where we may have to alert them a little bit early on and happy for a couple of years, but that wasn't an intentional dilution, we that happened to us but.
John Allison: Well, we may have diluted them a little bit early on and happy for a couple of years, but that wasn't an intentional dilution. That happened to us. But since then, we never did it before, and we won't do it again. So we'll find the right trade to do that as long as our currency, we continue to perform the way we are, and our currency holds up the way it is. It gives us the ability to do those transactions. So I guess my word to those that are running one through is get themselves to a 2% before they go out and do something. It just makes all the sense in the world.
Well, we may have diluted them a little bit early on and happy for a couple of years, but that wasn't an intentional dilution. That happened to us. But since then, we never did it before, and we won't do it again. So we'll find the right trade to do that as long as our currency, we continue to perform the way we are, and our currency holds up the way it is. It gives us the ability to do those transactions. So I guess my word to those that are running one through is get themselves to a 2% before they go out and do something. It just makes all the sense in the world.
Since then.
Never done it before and we won't do it again so.
We have found the right trade to do that as long as our currency. We continue to perform the way we are and our currency holds up the way. It is it gives us the ability to do those transactions. So I guess my word to those.
the the sale that we were working on the notes that we were working on fourth quarter fell through, but we had a pretty good good size deposit that was hard that we applied. So we're we're still working with others and, uh, you know, we hope that that will we hope we'll get that moved soon. It may take a little longer than than I'd like, but we're still working, uh, Texas C and I credit is, you know, we're we're working it through. I think it it may get to non-accrual before, um, before it gets resolved, but again, we don't think we're going to have any additional loss there. We took a charge off.
A year ago, fourth quarter. And we think that our
<unk> been running at one three years get themselves to a 2% before they go out and do something it just makes all sense in the world.
That that we're okay there. So we're just continuing to work through. It's the same problems we've been talking about for a couple of quarters and
You just take sometimes it takes a little while to get rid of a problem.
Yeah.
Stephen Scouten: Thank you. Okay. Yeah. No, you're welcome. And maybe just the last one for me was just, I don't know, maybe for Brian Davis. Just, Brian, is kind of the noise or the extra income in the quarter relative to the Texas resolution. I mean, is fee income kind of a core number around $45? Yeah, call it $45 million. Is that kind of a clean type of quarter as you look at some of the noise that was in there this quarter on the fee income side?
[Analyst]: Thank you. Okay. Yeah. No, you're welcome. And maybe just the last one for me was just, I don't know, maybe for Brian Davis. Just, Brian, is kind of the noise or the extra income in the quarter relative to the Texas resolution. I mean, is fee income kind of a core number around $45? Yeah, call it $45 million. Is that kind of a clean type of quarter as you look at some of the noise that was in there this quarter on the fee income side?
Okay.
Yeah, I know Youre welcome and maybe just the last the last one for me was just.
Yeah. And and how big are those credits Kevin ballpark in terms of the the department in the cni?
Maybe for Bryan Davis just.
Brian is the kind of the noise of the extra income in the quarter relative to the Texas resolution.
Department's 10, the apartments, 10 C, and I credits about 90.
1090 90 to 100, perfect.
Yes, its fee income.
Of a core number around 45 40 call. It $45 million is that kind of a clean type of quarter. As you look at some of the noise that was in there this quarter for on the on the fee income side.
Okay, perfect. Thank you guys for taking the questions and look forward to a great 26.
You bet, thank you for your support. We appreciate it.
This concludes our Q&A on our hand, back to John Allison for any final remarks.
Stephen Tipton: Yeah. The $4.9 million was really the only noisy thing that we had in non-interest income, so.
Brian Davis: Yeah. The $4.9 million was really the only noisy thing that we had in non-interest income, so.
Yes, the $4 9 million was really the only noisy thing that we had and Oh yeah. Okay.
thank you everyone for joining the
Stephen Scouten: Yeah. Okay. That's a good bump. Okay. Just wanted to make sure of that. And then the last one was just for Kevin. Maybe Kevin, you went through the commentary about non-performing. Can you just give a little thought or maybe just, maybe I missed what you said in terms of what the puts and takes were on credit, what could be resolved in the next quarter or two, or kind of what's the status of those couple of credits?
[Analyst]: Yeah. Okay. That's a good bump. Okay. Just wanted to make sure of that. And then the last one was just for Kevin. Maybe Kevin, you went through the commentary about non-performing. Can you just give a little thought or maybe just, maybe I missed what you said in terms of what the puts and takes were on credit, what could be resolved in the next quarter or two, or kind of what's the status of those couple of credits?
That's a good luck, okay, just want to make sure of that and then the last one was just for Kevin maybe Kevin you went through the commentary about nonperforming can you just give a little thought or maybe just.
is a great quarter, a great year for Home Bank shares, and we appreciate all your support and we'll continue to be
Maybe I missed what you said in terms of what the puts and takes were on credit like what what could be resolved in the next quarter or two or kind of what's up what's the status of that.
will represent your investment properly and do the right thing and hopefully make the right Investments and uh,
For.
All our shareholders. We are a shareholder pro pro shareholder company as you know and we'll continue to do the right thing for the shareholders. So
Credit.
Yeah.
Matt Olney: So the DFW apartment credit, the sale that we were working on, the notes that we were working on, Q4 fell through, but we had a pretty good size deposit that was held that we applied. So we're still working with others, and we hope that that will—we hope we'll get that moved soon. It may take a little longer than I'd like, but we're still working. Texas C&I credit, we're working it through. I think it may get to non-accrual before it gets resolved. But again, we don't think we're going to have any additional loss there. We took a charge off a year ago, Q4, and we think that we're okay there. So we're just continuing to work through. It's the same problems we've been talking about for a couple of quarters. And sometimes it takes a little while to get rid of a problem.
Kevin Hester: So the DFW apartment credit, the sale that we were working on, the notes that we were working on, Q4 fell through, but we had a pretty good size deposit that was held that we applied. So we're still working with others, and we hope that that will—we hope we'll get that moved soon. It may take a little longer than I'd like, but we're still working. Texas C&I credit, we're working it through. I think it may get to non-accrual before it gets resolved. But again, we don't think we're going to have any additional loss there. We took a charge off a year ago, Q4, and we think that we're okay there. So we're just continuing to work through. It's the same problems we've been talking about for a couple of quarters. And sometimes it takes a little while to get rid of a problem.
So the DFW apartment credit the sale that we were working on the notes that were working on fourth quarter fell through but we had a pretty good good sized deposit was hard that we applied so where we.
That's about anybody else. Got a comment before we close out today. Thank you very much for your support.
Have a good day and we'll talk to you next quarter.
We're still working with others in.
Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
We hope that that will we hope we'll get that moved soon it may take a little longer than that I like but we're still working.
Texas C&I credit as we're working it through I think it it may get to nonaccrual before.
Before it gets resolved, but again, we don't think we're going to have any additional loss. There. We took a charge off a year ago fourth quarter, and we think that are there.
We're okay. There. So we're just continuing to work through its the same problems we've been talking about for a couple of quarters in.
Can you just take sometimes it takes a little while to get rid of a problem.
Stephen Scouten: Yeah. And how big are those credits, Kevin, ballpark in terms of the apartment and the C&I?
[Analyst]: Yeah. And how big are those credits, Kevin, ballpark in terms of the apartment and the C&I?
Yeah, and how big are those credits Kevin ballpark in terms of that.
Apartment rent in the CNI.
Matt Olney: The apartment's 10. The apartment's 10. C&I credit's about 90.
Kevin Hester: The apartment's 10. The apartment's 10. C&I credit's about 90.
Well departments 10 apartments tend to C&I credits about 90.
Stephen Scouten: 10 to 90.
[Analyst]: 10 to 90.
$10 90 to 100 perfect.
Matt Olney: 90 to 100.
Kevin Hester: 90 to 100.
Stephen Scouten: Perfect. Okay. Perfect. Thank you, guys, for taking the questions, and look forward to a great 2026.
[Analyst]: Perfect. Okay. Perfect. Thank you, guys, for taking the questions, and look forward to a great 2026.
Okay. Okay perfect. Thank you guys for taking the questions and look forward to a great 26.
John Allison: You bet. Thank you for your support. We appreciate it.
John Allison: You bet. Thank you for your support. We appreciate it.
You bet. Thank you for your support we appreciate it.
Uh huh.
Operator: This concludes our Q&A. I'll now hand back to John Allison for any final remarks.
Operator: This concludes our Q&A. I'll now hand back to John Allison for any final remarks.
This concludes our Q&A I'll now hand back to John Allison for any final remarks.
John Allison: Thank you, everyone, for joining the call today. It was a great quarter, a great year for Home BancShares, and we appreciate all your support. And we'll continue to be, we'll represent your investment properly and do the right thing and hopefully make the right investments. And for all our shareholders, we are a shareholder pro shareholder company, as you know, and we'll continue to do the right thing for the shareholders. So that's about it. Anybody else got a comment before we close out today? Thank you very much for your support. Have a good day, and we'll talk to you next quarter.
John Allison: Thank you, everyone, for joining the call today. It was a great quarter, a great year for Home BancShares, and we appreciate all your support. And we'll continue to be, we'll represent your investment properly and do the right thing and hopefully make the right investments. And for all our shareholders, we are a shareholder pro shareholder company, as you know, and we'll continue to do the right thing for the shareholders. So that's about it. Anybody else got a comment before we close out today? Thank you very much for your support. Have a good day, and we'll talk to you next quarter.
Thank you everyone for joining the call today.
Great quarter, great year for home Bancshares, and we appreciate all your support and we will continue to be well.
<unk> investment properly and do the right thing and hopefully make the right investments.
For all our shareholders, we are a shareholder or shareholder company as you know and we will continue to do the right thing for the shareholders. So.
That's about anybody else got a comment before we close out Tonight. Thank you very much for your support.
Have a good day and we'll talk to you next quarter.
Operator: Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
Operator: Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
Ladies and gentlemen, today's call is now concluded. Thank you for your participation you may now disconnect your lines.
